Cities Index.
Minutes

Desert Hot Springs City Council
March 21, 2023

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Minutes
Meeting
March 21, 2023
Body
Desert Hot Springs City Council
Pages
854
Original file
27.7 MB
Text extracted from the city's file for reading and search. Open the original on cityofdhs.civicweb.net. That file is the official record.

CITY OF DESERT HOT SPRINGS
_____________________________
Doria Wilms, City Manager
ATTEST:
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Jennifer Mizrahi, City Attorney
_____________________________
________
_____________________________
Albert Brady

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February 23, 2022
Luke Rainey
City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Subject: Proposal to Provide Code Enforcement Services
Dear Mr. Rainey
Willdan Engineering is pleased to present this proposal to the City of Desert Hot Springs to provide interim code enforcement services specifically in the commercial areas of the City.

Willdan Engineering has provided municipal consulting services including code compliance for over 57 years to cities and counties throughout the State of California. We have provided interim, part-time, and full-time code enforcement personnel to various jurisdictions.

The proposed Project Manager, Mr. Al Brady, will provide general oversight and will monitor service delivery on behalf of Willdan and the City of Desert Hot Springs. Mr. Brady has extensive experience in developing and managing various code programs for numerous clients in California, Arizona, and Nevada.

We look forward to discussing our qualifications and our ideas for project implementation with you.

In closing, I have attached a brief scope and a rate for services. Please let me know if you have any questions or require additional information. Thank you in advance for your consideration of Willdan for this project,
Respectfully submitted,

WILLDAN ENGINEERING
Albert Brady, CBO
Deputy Director of Building and Safety
[email protected]

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Table of Contents
Firm Profile .................................................................................................................................. 1 Scope of Work ............................................................................................................................. 3 Project Manager .......................................................................................................................... 3 Fee Schedule ................................................................................................................................ 3 Related Experience ...................................................................................................................... 4 References.................................................................................................................................... 6

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Page | 1
Firm Profile
Founded in 1964, Willdan Group, Inc. (WGI) is a leading nationwide provider of value-added professional technical and consulting services. The primary markets WGI serves are municipal engineering, planning, and staff augmentation; infrastructure and transportation; energy; and economic and financial analysis. The company serves these three complementary markets through its three service segments — 1) engineering (Willdan Engineering), 2) energy efficiency (Willdan Energy Solutions), and 3) public finance (Willdan Financial Services).

WGI has a reputation for delivering high-quality projects on time and within budget. Rooted in Willdan’s corporate culture is its focus on quality customer service. The company has more than 1600 employees, including licensed engineers, program and construction managers, financial analysts, planners, and other skilled professionals.

WGI benefits from well-established relationships with local and state government agencies, investorowned and municipal utilities, and private sector commercial and industrial firms throughout the United States. The company served more than 800 distinct clients in 2015. Headquartered in Anaheim, the company operates from offices in more than a dozen states across the US.

Willdan Engineering
Willdan Engineering (Willdan), a California Corporation and subsidiary of WGI, specializes in solutions tailored to the unique needs of municipalities and other local government agencies. Services range from full-time, in-house staffing to interim or part-time assistance on a project-by-project basis.

Willdan’s understanding of public agency needs and issues is unique in the industry. A significant portion of our staff have served in public agency management positions prior to joining Willdan. With our depth of experience, expertise, knowledge, and resources, Willdan can offer practical solutions that are timely, cost effective, and that meet the needs of individual communities. The diversity of our staff experience is an added value of our professional services.

Building and Safety/Engineering Services
Willdan’s experience and strength in plan review and inspection services encompasses the complete range of technical disciplines, including permit issuance, building inspection, grading inspection, accessibility inspection, Code Enforcement, CASp services, OSHPD III plan check and inspection, flood zone experience, building plan review, and fire-life safety. Willdan maintains an excellent working knowledge of all applicable codes and standards including Caltrans Standard Plans and Specifications, APWA Standards and Specifications, AWWA Standards and Specifications, California Building Codes, CEQA, and Americans with Disabilities Act requirements and California Title 24 requirements on accessibility. The inspection and plan review staff maintain current certifications and attends training on a regular basis, to stay current with industry technologies and standards.

Willdan’s business model is
centered on the public sector.

We can function as part of the
City of Desert Hot Springs’
team without a conflict of
interest.

Willdan has been in business
for over 57 years

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Page | 2
Code Enforcement Services
Code enforcement services are among the most complex and challenging services that government agencies provide. According to nationwide studies, property values, crime rates, insurance rates, business development, and the sense of community pride can be directly impacted by the successes of a jurisdiction’s code enforcement program.

In an effort to aid jurisdictions with the difficult task of maintaining the quality of life for its citizens through such programs, Willdan has assembled a quality staff with extensive public agency experience in the areas of neighborhood preservation, housing inspection and code enforcement. Our expertise includes the development and implementation of inspection programs designed to ensure public safety, promote community involvement, and protect quality of life issues through community education and enforcement of municipal and related codes including preparation for, and participation in, prosecution by city and district attorneys.

Willdan provides the following Code Enforcement Services:
• Inspection services for HUD section 8 programs.
• Review, study, and analysis of existing programs.
• Development of ordinances and writing of grant proposals. • Neighborhood cleanup and improvement programs.
• Community education programs.
• Development of educational materials.
• Provide project managers and/or supervisors as onsite “employees”. • Provide fulltime, part-time, interim and/or weekend staff as onsite “employees.” • Vehicle abatement and parking enforcement.
• Assist in enforcement, including preparation and participation in prosecution by city and district attorneys.
• The registration and enforcement of vacation rentals. • The regulation of group and/or sober living homes.

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Page | 3
Scope of Work
Contract Code Services
The project shall consist of Willdan staff coordinating with the City of Desert Hot Springs Community and Planning Department to provide Code Compliance staff to the City. Willdan staff shall conduct all inspections and re-inspections of commercial properties and will identify and enforce all violations of City’s municipal code, ordinances, laws, and all applicable statutes. Personnel shall issue notifications, letters, citations and warrants when necessary to achieve compliance. Staff will be required to document all complaints received, inspections conducted through photos, notes, and correspondences. In addition to the services mentioned above, Willdan employees would provide the following to the City (this is not intended to be a comprehensive list):
▪ Investigate complaints from the public and staff regarding violations of the municipal codes, ordinances, standards and health and safety regulations. ▪ Initiate contact with residents, business representatives, and other parties to explain the nature of the violations and encourage compliance with municipal codes, zoning and land use ordinances, and community standards.
▪ Prepare notices of violation for non-compliance according to applicable codes and regulations. ▪ Prepare reports for cases requiring legal action or civil abatement. ▪ When required, meet with legal counsel, and provide testimony on criminal cases. ▪ Maintain records of complaints, inspections, violation notices, and other field enforcement activities.
▪ Coordinate with City departments on cases as they relate to code enforcement.

Project Manager
Al Brady shall be the Project Manager and is fully responsible for seeing that the project is completed in compliance with the provisions of the agreement. Mr. Brady has over 30 years’ experience in the code profession has provided contract code services to approximately 80 municipalities in California, Arizona, and Nevada. He specializes in developing new code programs, improving existing divisions, revenue enhancement, ordinance revisions, maximizing staff efficiency and enhancing customer relations.

Fee Schedule
The Willdan code enforcement rate for the services of an experienced code enforcement officer is $65.00 dollars an hour . It is understood that the number of hours to be worked will be determined by the City. Hence, the total overall cost of the project will depend on the hours worked weekly and duration of the assignment.

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Page | 4
Related Experience
City of Goleta – Project Manager. Provided interim code enforcement staff.

County of Orange – Project Manager. Provided the staff of three full time code enforcement officers on a contract basis to address the county’s backlog of code enforcement cases.

City of Soledad – Project Manager. Developed and implemented a new proactive code enforcement program. Willdan provided a contract code enforcement officer to staff this program for over one year.

City of Fountain Hills, AZ – Project Manager. Developed and implemented a town code enforcement department. The scope of work included hiring staff, training, and supervision for an eight-month period.

City of Irwindale – Project Manager. Provided municipal code enforcement services including monitoring of a local racetrack for compliance with the City Sound Ordinance on an interim basis.

City of Walnut – Project Manager. Provided interim code enforcement staff who were responsible for enforcing the City’s Municipal Code.

City of South Pasadena – Project Manager. Provided interim code enforcement staff.

City of Irvine – Project Manager. Providing interim code enforcement staff.

City of Laguna Hills – Project Manager. Assisted the city in the development of a public education program concerning the city’s code program.

City of Los Alamitos - Directed and participated in review of the city’s code enforcement policy and procedures and made recommendations for changes as necessary. Additionally, provided interim code enforcement staff and a Community Development Director.

City of Hawaiian Gardens – Project Manager. Assisted the City of Hawaiian Gardens in developing and implementing an Administrative Citation program.

City of Rosemead - Project Manager. Provided interim code enforcement staff to inspect a targeted areas of the city to facilitate neighborhood improvements.

City of San Clemente – Project Manager. Provided interim Code Enforcement staff to assist with their Code Enforcement Program.

City of Superior, AZ - Direct and participate in the review of the city’s code enforcement policy and procedures and make recommendations for changes as necessary. Development and Implementation of a Nuisance and an Administrative Citation Ordinance.

City of La Canada Flintridge - Direct and participate in the review of the city’s code enforcement policy and procedures and make recommendations for changes as necessary. Development and Implementation of a Nuisance, Cost Recovery, and an Administrative Citation Ordinances. Provided interim code enforcement staff to conduct inspections and facilitate neighborhood improvements.

City of Adelanto – Project Manager. Provided interim Code Enforcement staff to assist with their Code Enforcement Program.

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Page | 5
City of Del Mar - Provided interim code enforcement staff to the City and managed their entire Code program.

It should be noted that the projects listed above are not a comprehensive list of all our past code clientele but represents a small portion of the Municipalities we have served. We have also successfully provided service to the following jurisdictions:
• Bradbury
• Costa Mesa
• Desert Hot Springs
• El Monte
• Folsom
• Fountain Valley
• Laguna Woods
• Pasadena
• Perris
• Rancho Cordova
• Sacramento
• San Diego County
• San Jose
• San Juan Capistrano
• San Luis Obispo

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City of Desert Hot Springs
City of Desert Hot Springs Code Enforcement Services
Page | 6
References
City of Moreno Valley
James Verdugo
Building Manager
14177 Frederick Street
Moreno Valley, CA 92552
(951) 413-3354
Project: Provided interim code management.

City of Laguna Niguel
Erich List
Planning Manager
30111 Crown Valley Parkway
Laguna Niguel, CA 92677
(949) 362-4300
Project: Provided interim management and program development.

City of La Puente
John DiMario
Community Development Director
15900 East Main Street
La Puente, CA 91744
(626) 855-1500
Project: Provided interim management and program development.

In closing, Willdan has provided code compliance services to numerous different California Cities and Counties. We are confident our team can provide the code compliance management the City is seeking. We hope this proposal meets with your approval.

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SR-23-065
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: March 7, 2023 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - March 7, 2023

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City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, March 7, 2023
Council Chambers
CLOSED SESSION - 4:30 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 4:30 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

PUBLIC COMMENTS
None.

Jennifer Mizrahi, City Attorney, announced the Closed Session Items.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: City of Desert Hot Springs v. Cay, LLC (Riverside Superior Court Case No. CVPS2300272)

2. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code section 54957.6)
Unrepresented employee: Interim City Manager

3. CONFERENCE WITH LABOR NEGOTIATORS
(Government Code section 54957.6)
Unrepresented employee: City Manager

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City Council
March 7, 2023
PRESENTATIONS - 5:30 P.M.

Certificate Presented to John Hampson in Recognition of his Contributions to Desert Hot Springs AYSO
The presentation was continued to a future meeting.

REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Mayor Matas called the Regular Session to order at 6:00 P.M.

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Jan Pye
Mayor Pro Tem: Roger Nuñez
Mayor: Scott Matas

INVOCATION
Councilmember Pye gave the Invocation.

PLEDGE OF ALLEGIANCE
Mayor Pro Tem Nuñez led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Jennifer Mizrahi, City Attorney, advised that the City Council: 1) voted 5-0 to approve a Waiver and Release Agreement between the City and Luke Rainey; and 2) voted 5- 0 to approve an Employment Agreement between the City and Doria Wilms to serve as Interim City Manager.

APPROVAL OF AGENDA
ACTION: Approve the March 7, 2023 Regular Meeting Agenda and approve the Consent Calendar in its entirety.

Moved by Council Member Nuñez
Seconded by Mayor Pro Tem Gardner
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

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City Council
March 7, 2023

PUBLIC COMMENTS
Robert Fuentes spoke regarding Little League and commended the City for its youth sports programs.

Tom Moen spoke regarding Highway 62 and Pierson Boulevard.

CITY MANAGER REPORT
Doria Wilms, Interim City Manager, introduced Travis Clark, Interim Community Development Director.

Daniel Porras, Interim Deputy City Manager, provided an update regarding Pierson Boulevard and Highway 62.

Geoffrey Buchheim, Administrative Services Director, provided a financial update.

Nicholas Haecker, Public Works Director, provided an update regarding various Public Works projects.

Roberta Crncic, Recreation and Community Services Director, provided Recreation Center updates and announcements.

MAYOR AND COUNCIL MEMBER REPORTS
Councilmember Betts reported on the various meetings and events he attended.

Councilmember Gardner reported on the various meetings and events he attended.

Mayor Pro Tem Nuñez reported on the various meetings and events he attended.

Councilmember Pye reported on the various meetings and events she attended.

Mayor Matas reported on the various meetings and events he attended.

PUBLIC HEARINGS:

4. An Ordinance Amending Operating Hours for Specific Cannabis Facilities (Exempt from CEQA Pursuant to CEQA Guidelines Section 15061 (b)(3)) Recommendation:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;

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City Council
March 7, 2023
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) That the Planning Commission recommends to the City Council that the City Council introduce for First Reading and read by title only, “An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Section

5.50.080 “General Operating Requirements” of Chapter 5.50 “Cannabis Businesses”; and Amending Sections 17.180.040 (“Marijuana Storefront Retail Facilities”), 17.180.045 (“Marijuana Non-storefront Retail Facilities”),

17.180.050 (“Marijuana Cultivation Facilities”), 17.180.060 (“Marijuana Manufacturing Facilities”), 17.180.070 (“Marijuana Testing Facilities”), and

17.180.080 (“Marijuana Distribution Facilities”) of the Desert Hot Springs Municipal Code to Update Regulations Regarding Hours of Operation." Staff Report - SR-23-039 - Pdf
Christina Newsom, Compliance Director, presented the staff report.

Mayor Matas opened the Public Hearing.

There was no testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation.

Moved by Council Member Betts
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

5. An Ordinance Amending the Desert Hot Springs Municipal Code to Update Regulations for Transfers of Ownership for Cannabis Businesses (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3)) Recommendation:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing; and
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: “An Ordinance of the City Council of the City of Desert Hot Springs, California Amending Section 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code in Order to Update Regulations for

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City Council
March 7, 2023
Transfers of Ownership."
Staff Report - SR-23-040 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation.

Moved by Mayor Pro Tem Gardner
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

6. An Ordinance Amending Regulations to Mobile Food Vending Vehicles (Food Trucks) (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
Recommendation:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, Amending Chapter 5.52 “Mobile Food Vending Vehicles” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code."
Staff Report - SR-23-041 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no testimony.

Mayor Matas closed the Public Hearing.

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City Council
March 7, 2023
ACTION: Approve Staff recommendation.

Moved by Mayor Pro Tem Gardner
Seconded by Council Member Pye
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas
ADMINISTRATIVE CALENDAR:

7. Funding Request for a Public Art Installation at 11940 Palm Drive Recommendation:
1) Authorize the City Manager to negotiate, finalize, and execute agreements with the Parties (The Seventh Letter and Property Owner of 11940 Palm Drive, etc.) for the mural installation and exterior improvements in an amount not to exceed $84,000.
2) Authorize the City Manager to utilize an amount of up to $50,000 for mural site preparation and spectator improvements of 11940 Palm Dr. and surrounding area.

Staff Report - SR-23-045 - Pdf
Erick Becerril, Housing & Community Program Manager, presented the staff report.

Casey Zoltan, curator, and TRAV, artist, addressed the City Council and responded to questions.

Sam Shtockmaster, building owner, addressed the City Council and responded to questions.

A discussion ensued.

ACTION: Approve Staff recommendation.

Moved by Mayor Pro Tem Gardner
Seconded by Council Member Nuñez
Carried 4-0 by the following votes:

AYES: Gardner, Pye, Nuñez, and Matas

8. Resolution Authorizing the Extension of the Service Fee Collected on Behalf of the Riverside County Abandoned Vehicle Abatement Service Authority Until May 31, 2034
Recommendation:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, authorizing the extension of the service fee collected on behalf of the Riverside County Abandoned Vehicle Abatement Service Authority until May 31, 2034.

Staff Report - SR-23-042 - Pdf

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City Council
March 7, 2023
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-005.

Moved by Council Member Betts
Seconded by Council Member Nuñez
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas

9. City Branded Apparel for City Commissioners
Recommendation:

Discuss and provide direction to Staff.

Staff Report - SR-23-047 - Pdf
Jerryl Soriano, City Clerk, presented the staff report.

A discussion ensued.

There was no majority support to issue City branded apparel at this time. The matter was referred to the City Council Policy Committee for further review and will return to the City Council at a future meeting.

ACTION: continue
Moved by Council Member Betts
Seconded by Mayor Matas
Carried 4-1 by the following votes:

AYES: Betts, Gardner, Pye, and Matas
NOES: Nuñez
CONSENT CALENDAR:

10. City Council Special Meeting (Closed Session) Minutes: February 16, 2023; City Council Regular Meeting Minutes: February 21, 2023 Staff Report - SR-23-044 - Pdf
ACTION: Approved the Minutes as presented.

11. Contracts Management Report as of February 15, 2023 Staff Report - SR-23-038 - Pdf
ACTION: Received and filed.

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City Council
March 7, 2023

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:43
Jerryl Soriano, CMC, City Clerk

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Page 750 of 854 ends

SR-23-060
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Attorney
Prepared by: Jennifer Mizrahi, City Attorney
Subject: Termination of Local Emergency Related to COVID-19 RECOMMENDATION:

Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, rescinding Resolution No. 2020-007 declaring a local emergency, and promulgating orders and regulations necessary for the protection of life and property related to COVID-19.

BACKGROUND:

The City Council adopted Resolution No. 2020-007, and declared a local emergency related to COVID19. COVID-19 has been declared by the United States, the State of California, and the County of Riverside (“County”) as a pandemic and an emergency situation. On January 31, 2020, the United States Secretary of Health and Human Services declared a Public Health Emergency. On March 4, 2020, Governor Gavin Newsom declared a state of emergency in the State of California due to the outbreak of COVID-19 within the State. On March 8, 2020, the Riverside County Public Health Officer Dr. Cameron Kaiser declared a public health emergency due to the spread of COVID-19.

Pursuant to Section 2.48.090(a)(1) of the Desert Hot Springs Municipal Code, the City Manager has the power to declare this local emergency, because the City Council is not in session and cannot be immediately called into session, and on March 17, 2020, and did so in fact declare. The City Council ratified such action in adopting Resolution No. 2020-007.

DISCUSSION:

Appearing that based upon California’s metrics, on February 28, 2023, Governor Gavin Newsom issued a proclamation terminating the state’s COVID -19 State of Emergency. Accordingly, Staff recommends that the City Council adopt this Resolution to rescind the prior Resolution declaring the emergency.

ATTACHMENTS:

Exhibit 1 - Resolution
Exhibit 2 - Governor Proclamation Terminating State of Emergency COVID-19

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1 RESOLUTION NO. 2023-____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA RESCINDING RESOLUTION 2020-007

DECLARING A LOCAL EMERGENCY, AND PROMULGATING

ORDERS AND REGULATIONS NECESSARY FOR THE PROTECTION
OF LIFE AND PROPERTY RELATED TO COVID -19
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city in the State of California; and
WHEREAS, the California Emergency Services Act, Government Code sections 8558(c) and 8630 authorize the proclamation of a local emergency when conditions of disaster or extreme peril to the safety of persons and property within the territorial limits of a city exist; and
WHEREAS, pursuant to Government Code section 8630 such an emergency may be proclaimed by the governing body or by an official designated by ordinance adopted by the governing body; and
WHEREAS, the COVID-19 virus (“COVID-19”) has been declared by the United States, the State of California, and the County of Riverside (“County”) as a pandemic and an emergency situation; and
WHEREAS, on January 31, 2020, the United States Secretary of Health and Human Services declared a Public Health Emergency; and
WHEREAS, on March 4, 2020, Governor Gavin Newsom declared a state of emergency in the State of California due to the outbreak of COVID-19 within the State; and
WHEREAS, on March 8, 2020, the Riverside County Public Health Officer Dr.

Cameron Kaiser declared a public health emergency due to the spread of COVID-19; and
WHEREAS, pursuant to Section 2.48.090(a)(1) of the DHSMC, the City Manager has the power to declare this local emergency, because the City Council is not in session and cannot be immediately called into session, and on March 17, 2020, and did so in fact declare; and
WHEREAS, the City Council ratified such action in adopting Resolution No. 2020-007; and
WHEREAS, appearing that based upon California’s metrics, on February 28, 2023, Governor Gavin Newsom issued a proclamation terminating the state’s COVID - 19 State of Emergency (See “Exhibit A” attached an incorporated hereto); and

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2 WHEREAS, the City Council hereby deems this Resolution to be in the best interest of the public’s health, safety and welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES RESOLVE, AS FOLLOWS:

Section 1. RECITALS.

That the recitals set forth above are true and correct and are incorporated herein by this reference.

Section 2. RESCISSION OF RESOLUTION 2020-007.

1. That City Council Resolution 2020-007 is hereby rescinded.

Section 3. SEVERABILITY.

That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS.

That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

Section 5. EFFECTIVE DATE.

That this Resolution shall take effect immediately.

Section 6. CERTIFICATION.

That the City Clerk shall certify to the passage of this Resolution and enter it into the book of original resolutions.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs, California, at a regular meeting held on the 21st day of March, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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3 ATTEST: APPROVED:
______________________________ _____________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
______________________________
Jennifer Mizrahi, City Attorney

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4 EXHIBIT A

PROCLAMATION OF GOVERNOR NEWSOM

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EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA

A PROCLAMATION

BY THE GOVERNOR OF THE STATE OF CALIFORNIA

TERMINATING STATE OF EMERGENCY
I, GAVIN NEWSOM, Governor of the State of California, having found pursuant to Government Code section 8629 that the conditions of extreme peril to the safety of persons and property declared in the State of Emergency proclamation listed below no longer exist, therefore proclaim that the State of Emergency proclaimed on the following date and in the following jurisdiction no longer exists, effective at 11 :59 p.m. on February 28, 2023. Accordingly, any Executive Orders related to the terminated State of Emergency will also no longer be in effect as of 11 :59 p.m. on February 28, 2023.

PROCLAMATION
Emergency Date Jurisdiction
Proclaimed
COVID-19 March 4, 2020 Statewide
I FURTHER DIRECT that as soon as hereafter possible, this Proclamation be filed in the Office of the Secretary of State and that widespread publicity and notice be given of this Proclamation.

IN WITNESS WHEREOF I have
hereunto set my hand and caused
the Great Seal of the State of
California to be affixed this 28th day
of February 2023.

Governor of California
ATTEST:

SHIRLEY WEBER, PH.D.

Secretary of State

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SR-23-056
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Amending Operating Hours for Specific Cannabis Facilities (Exempt from CEQA Pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: “An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Section 5.50.080 “General Operating Requirements” of Chapter 5.50 “Cannabis Businesses”; and Amending Sections 17.180.040 (“Marijuana Storefront Retail Facilities”), 17.180.045 (“Marijuana Non-storefront Retail Facilities”), 17.180.050 (“Marijuana Cultivation Facilities”), 17.180.060 (“Marijuana Manufacturing Facilities”), 17.180.070 (“Marijuana Testing Facilities”), and 17.180.080 (“Marijuana Distribution Facilities”) of the Desert Hot Springs Municipal Code to Update Regulations Regarding Hours of Operation." BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on March 7, 2023.

The Ordinance shall take effect thirty (30) days after its second reading.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1 - Staff Report from March 7, 2023
Exhibit 2 - Ordinance - Cannabis Hours of Operation

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SR-23-039
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance Amending Operating Hours for Specific Cannabis Facilities (Exempt from CEQA Pursuant to CEQA Guidelines Section 15061 (b)(3)) RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from City Council;
3) Open the Public Hearing;
4) Take public testimony from those in favor;
5) Take public testimony from those opposed;
6) Take public testimony of those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) That the Planning Commission recommends to the City Council that the City Council introduce for First Reading and read by title only, “An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Section 5.50.080 “General Operating Requirements” of Chapter 5.50 “Cannabis Businesses”; and Amending Sections 17.180.040 (“Marijuana Storefront Retail Facilities”), 17.180.045 (“Marijuana Non-storefront Retail Facilities”), 17.180.050 (“Marijuana Cultivation Facilities”),

17.180.060 (“Marijuana Manufacturing Facilities”), 17.180.070 (“Marijuana Testing Facilities”), and

17.180.080 (“Marijuana Distribution Facilities”) of the Desert Hot Springs Municipal Code to Update Regulations Regarding Hours of Operation."
BACKGROUND:

Chapter 5.50 of the Desert Hot Springs Municipal Code (“DHSMC”) provides the regulatory framework for the operation of cannabis facilities, including the hours of operation.

Section 5.50.080(L) of the DHSMC currently limits the hours of operation of all cannabis facilities to the hours of 8:00 a.m. and 10:00 p.m.

Sections 17.180.040 through 17.180.080, inclusive of the Zoning Code, provide the regulatory framework for the operation of Cannabis Storefront Retail, Cannabis Non-Storefront Retail, Cannabis Cultivation, Cannabis Manufacturing, Cannabis Testing, and Cannabis Distribution facilities (collectively Cannabis Facilities”). Chapter 17.180 regulations currently do not address the hours of operation for the Cannabis Facilities.

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SR-23-039
DISCUSSION:

The proposed ordinance seeks to amend Chapter 5.50 to update operating hours for specific Cannabis Facilities. Cannabis Facility owners and operators have approached the City seeking review of the operating hours for Cannabis Facilities located in a Light Industrial (I-L) District. In particular the following are the logistical issues facing the Cannabis Facilities:

1. Cultivation Facilities:

A) Cultivation facilities require twenty-four-hour operation due to the volatility of the cannabis plants at the cultivation stage.

B) Certain adverse conditions, such as an infestation of pests or faulty electricity may wipe out an entire crop of cannabis plants if they are not corrected immediately.

C) Common indoor cultivation techniques including the hydroponic and aeroponic techniques, which replace the use of soil and instead, provide nutrients to the plants through a water or mist solution, require meticulous and precise attention to ensure the plant is receiving the necessary nutrients to blossom.

2. Testing Facilities:

A) Testing facilities test the raw products for any chemical contaminants or microbiological impurities.

B) Twenty-four-hour operations are necessary to immediately dispose of contaminated products and prevent the spread to other products at the facility.

3. Cannabis Distribution Facilities:

A) Cannabis distributors deliver the product at each stage in the production process.

B) Distributors receive the product from the cultivation facilities and deliver it to the testing facilities and then deliver the tested product to the manufacturer.

C) Each and every reason that makes it necessary for manufacturing, testing, and cultivation facilities to operate twenty-four hours per day will consequently apply to the distribution facilities as well; and

4. Cannabis Manufacturing Facilities:

A) An increase in production at the cultivation, testing and distribution facilities would potentially cause a larger amount of raw product to reach manufacturing facilities, where the cannabinoids are extracted from the plants and packaged into the final product.

B) This would necessitate manufacturing facilities to operate twenty-four hours per day to minimize the time that raw products are exposed to the environment, thus risking reduced quality, or allowing the plant to dry out; and

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SR-23-039
These realities reflect a need for cultivation, manufacturing, testing and distribution facilities to operate up to twenty-four hours per day. In order to balance these realties with the needs of the public, the proposed Ordinance would amend current regulations to allow only cannabis cultivation, testing, distribution, and manufacturing facilities located within light industrial districts to operate up to twentyfour hours per day while minimizing overnight noise.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1: Ordinance - Cannabis Hours of Operation

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ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS AMENDING SECTION 5.50.080 “GENERAL OPERATING REQUIREMENTS” OF CHAPTER 5.50 “CANNABIS BUSINESSES” OF
TITLE 5 “BUSINESS LICENSES AND REGULATIONS” OF THE
DESERT HOT SPRINGS MUNICIPAL CODE; AND AMENDING
SECTIONS 17.180.040 (“MARIJUANA STOREFRONT RETAIL
FACILITIES”), 17.180.045 (“MARIJUANA NON-STOREFRONT RETAIL FACILITIES”), 17.180.050 (“MARIJUANA CULTIVATION FACILITIES”),

17.180.060 (“MARIJUANA MANUFACTURING FACILITIES”),

17.180.070 (“MARIJUANA TESTING FACILITIES”), AND 17.180.080 (“MARIJUANA DISTRIBUTION FACILITIES”) OF TITLE 17 “ZONING”

OF THE DESERT HOT SPRINGS MUNICIPAL CODE TO UPDATE

REGULATIONS REGARDING HOURS OF OPERATION
WHEREAS, Chapter 5.50 “Cannabis Businesses,” of the Desert Hot Springs Municipal Code (“DHSMC”) among other things, sets forth the General Operating Requirements for all cannabis facilities located within the City of Desert Hot Springs; and WHEREAS, section 5.50.080(L) of the DHSMC currently limits the hours of operation of all cannabis facilities to the hours of 8:00 a.m. and 10:00 p.m.; and WHEREAS, Chapter 17.180 of the DHSMC sets forth zoning regulations and operating requirements of cannabis facilities, including section 17.180.040 for storefront retail facilities, section 17.180.045 for non-storefront retail facilities; section 17.180.050 for cultivation facilities, section 17.180.060 for manufacturing facilities, section

17.180.070 for testing facilities, and section 17.180.080 for distribution facilities (collectively, the “Chapter 17.180 Regulations”); and
WHEREAS, the Chapter 17.180 Regulations currently do not address the hours of operation for the storefront retail, non-storefront retail, cultivation, manufacturing, testing, or distribution facilities; and
WHEREAS, for cultivation facilities:
a) Cultivation facilities require twenty-four-hour operation due to the volatility of the cannabis plants at the cultivation stage.

b) Certain adverse conditions, such as an infestation of pests or faulty electricity may wipe out an entire crop of cannabis plants if they are not corrected immediately.
c) Further, common indoor cultivation techniques including the hydroponic and aeroponic techniques, which replace the use of soil and instead, provide nutrients to the plants through a water or mist solution, require meticulous and precise attention to ensure the plant is receiving the necessary nutrients to blossom; and

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WHEREAS, for testing facilities:
a) Testing facilities test the raw products for any chemical contaminants or microbiological impurities.
b) Twenty-four-hour operations are necessary to immediately dispose of contaminated products and prevent the spread to other products at the facility; and
WHEREAS, for cannabis distribution:
a) Cannabis distributors deliver the product at each stage in the production process.
b) Distributors receive the product from the cultivation facilities and deliver them to the testing facilities and then deliver the tested product to the manufacturer.
c) Each and every reason that makes it necessary for manufacturing, testing, and cultivation facilities to operate twenty-four hours per day will consequently apply to the distribution facilities as well; and WHEREAS, for manufacturing facilities:
a) an increase in production at the cultivation, testing and distribution facilities would potentially cause a larger amount of raw product to reach manufacturing facilities, where the cannabinoids are extracted from the plants and packaged into the final product.
b) This would necessitate manufacturing facilities to operate twenty-four hours per day to minimize the time that raw products are exposed to the environment, thus risking reduced quality or allowing the plant to dry out; and
WHEREAS, these realities reflect a need for cultivation, manufacturing, testing and distribution facilities to operate up to twenty-four hours per day; and WHEREAS, in order to balance these realties with the needs of the public, the City Council desires to amend current regulations to allow only cannabis cultivation, testing, distribution, and manufacturing facilities located within light industrial districts to operate up to twenty-four hours per day while minimizing overnight noise; and WHEREAS, the City Council finds that this Ordinance promotes the efficient operations of cannabis facilities while at the same time minimizing any undue disruptions to residential areas; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be

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seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this Ordinance is consistent with the General Plan; and
WHEREAS, the City Council finds that the passage of this Ordinance is in the best interest of the public interest, health, safety, convenience, and welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDING SECTION 5.50.080 (“GENERAL OPERATING REQUIREMENTS”) OF CHAPTER 5.50 (“CANNABIS
BUSINESSES”) OF TITLE 5 (“BUSINESS LICENSES AND
REGULATIONS”) OF THE DESERT HOT SPRINGS MUNICIPAL
CODE
Section 5.50.050 (“General Operating Requirements”) of Chapter 5.50 (“Cannabis Businesses”) of Title 5 (“Business Licenses and Regulations”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

5.50.080 General Operating Requirements
All cannabis facilities must comply with the requirements set forth in this section.

A. Every cannabis facility shall operate in compliance with all applicable state and local laws and regulations governing cannabis facilities.

B. Every cannabis facility shall maintain and regularly update a roster of responsible persons, employees, independent contractors, and any other person engaged in the operation of the cannabis facility. The roster must include a copy of the individuals’ City-issued cannabis identification card, date of hire, and contact information.

The roster shall be made available for inspection or copying by the City Manager or designee upon written or oral request. Notwithstanding anything to the contrary in this section, the cannabis facility shall immediately notify the City of any new or different responsible persons, employees, independent contractors, and any other person engaged in the operation of the cannabis facility in order to conduct a background check under Section 5.50.050.

C. No person who is less than 21 years of age may be employed or otherwise engaged in the operation of a cannabis facility.

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D. Cannabis and cannabis goods possessed by a cannabis facility shall be kept and stored in a secured manner at all times.

E. On-site smoking, ingestion, or consumption of cannabis shall be prohibited on the premises of all cannabis facilities. “Premises,” for purposes of this section, includes the actual building as well as any accessory structures, common areas and parking areas.

F. Cannabis facilities shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the premises.

G. Cannabis facilities shall not advertise in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis goods.

H. Each cannabis facility shall display a copy of its cannabis facilities regulatory permit issued pursuant to this chapter in a conspicuous place at or near the entrance to the premises.

I. Cannabis facilities shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its premises. Cannabis facilities shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.

J. Waste Disposal. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

K. Each cannabis facility must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

L. Cannabis facilities are not authorized to sublet any portion of their premises for any purpose, unless all necessary applications to modify the existing premises to accomplish any subletting have been approved by the City.

M. Hours. All cannabis facilities may only be open between the hours of 8:00 a.m. and 10:00 p.m. and may operate as often as seven days per week. Hours of Operation. Except as otherwise provided in Chapter 17.180 of this code, cannabis facilities may operate only between the hours of 8:00 a.m. and 10:00 p.m. and up to seven days per week.

N. If consumable cannabis goods (including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on-site or offered for distribution, then the cannabis facility shall secure any approval from the County of Riverside Department of Health Services required for handling food products.

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O. Cannabis facilities shall have an electronic point of sale system that produces historical transactional data for review by the City Manager or designee for auditing purposes.

P. Odor Control. Cannabis facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis facility that is distinctive to its operation is not detected outside the cannabis facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis facility. As such, cannabis facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the cannabis facility’s interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.

A violation of this subsection by any cannabis facility located within an Industrial District shall be excused so long as the odor is not detectable more than 150 feet beyond the cannabis facility’s property line.

Q. Each cannabis facility shall provide the City Manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the City can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to its business neighbors located within 100 feet of the cannabis facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

R. Create and maintain an active account within the state’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity. In the event of system failure, the cannabis facility shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available.

S. Cannabis facilities must pay all applicable taxes pursuant to Federal, State, and local law, including, but not limited to, the cannabis tax required by Title 3, State and local sales and use taxes, and State excise taxes.

T. Cannabis facilities shall fully comply with all applicable provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211), Compassionate Use Act of 1996, the Medical Marijuana Program Act, the 2008 Attorney General Guidelines, all applicable

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provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.

U. Cannabis facilities shall create and maintain records of daily sign-in logs for all responsible person, employee, independent contractor, or any other person who will be engaged in the operation of the cannabis facility. A minimum of 30 days of daily signin logs shall be provided to the City Manager or designee upon a verbal or written request.

V. The City Manager or designee may impose reasonable terms and conditions on the proposed operations of the cannabis facility in addition to those specified in this chapter.

Section 3. AMENDING SECTION 17.180.040 (“MARIJUANA STOREFRONT RETAIL FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA
FACILITIES OPERATION AND LOCATION”) OF TITLE 17
“ZONING” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.040 (“Marijuana Storefront Retail Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation And Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.040 Marijuana storefront retail facilities.

A. Permitted Locations. Marijuana storefront retail facilities shall only be located in any Commercial District in the City.

B. Number of Plants. Storefront retail facilities shall not cultivate more than 99 mature flowering marijuana plants on site at any one time.

C. Conditional Use Permit/Regulatory Permit Required. Storefront retail facilities shall obtain both a City-issued Conditional Use Permit and Regulatory Permit.

D. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light manufacturing use and also become a light manufacturing facility to their current storefront retail facility.

E. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light distribution use to their current storefront retail facility.

Any and all light distribution uses must comply with all of the following:

1. Facility must have separate employee only loading door towards the rear of the building. Loading door shall not be located on the same building frontage as the public access door.

2. A maximum number of 1 unmarked vehicle shall be used to distribute products.

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3. The vehicle mentioned above must have a designated and marked parking space, which space must be in close proximity to the required loading door.

4. All State and local laws and regulations must be complied with at all times.

F. Hours of Operation. All marijuana storefront retail facilities operating in any district may only operate between the hours of 8:00 a.m. and 10:00 p.m. and may operate up to seven days per week.

F.G. Notwithstanding subsection C above, any and all light manufacturing facilities must comply with applicable State law and regulations, including the California Environmental Quality Act (“CEQA”).

G.H. Storefront retail facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are currently set forth in Title 16 Code of Regulations, Sections 5400 through 5413, as may be amended.

Section 4. AMENDING SECTION 17.180.045 (“MARIJUANA NONSTOREFRONT RETAIL FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA FACILITIES OPERATION AND LOCATION”) OF
TITLE 17 “ZONING” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE
Section 17.180.045 (“Marijuana Non-Storefront Retail Facilities”) of Chapter

17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.045 Marijuana non-storefront retail facilities.

A. Permitted Locations. Marijuana non-storefront retail facilities shall only be located in any Industrial District in the City.

B. Number of Plants. Non-storefront retail facilities shall not cultivate more than 99 mature flowering marijuana plants on site at any one time.

C. Conditional Use Permit/Regulatory Permit Required. Non-storefront retail facilities shall obtain both a City-issued Conditional Use Permit and Regulatory Permit, except as otherwise herein allowed in subsection D.

D. Administrative Approval. A duly approved manufacturing facility and/or distribution facility, with a duly approved Conditional Use Permit and Regulatory Permit, and in good standing with the City, may request modification of the already approved Conditional Use Permit to operate a non-storefront retail facility provided the Director of Community Development, or designee, finds all of the following:

1. There is a 10% or less than deviation to each of the following:

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a. On-site circulation and parking, loading and landscaping; b. Placement and/or height of walls and fences;
c. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme;
d. The density or intensity of a development project;
e. Paving; and
f. Hours of operation.

2. The marijuana manufacturing and/or distribution facility and its nonstorefront retail facility use is consistent with the goals, objectives, policies and programs of the general plan.

3. The marijuana manufacturing and/or distribution facility and its nonstorefront retail facility use complies with all applicable zoning and other regulations.

4. The marijuana manufacturing and/or distribution facility and its nonstorefront retail facility use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity.

5. The location, design and operation of the marijuana manufacturing and/or distribution facility and its non-storefront retail facility use will be compatible with existing and planned land uses in the vicinity.

6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law.

Applications for a modification of a Conditional Use Permit under this section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or his or her designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in Section 17.180.060(B)(2). Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana manufacturing and/or distribution facility applications under this section may be referred to the planning commission at the discretion of the Director.

E. Non-storefront retail facilities shall not deliver to customers within the City limits.

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F. Non-storefront retail facilities may also manufacture and/or distribute marijuana, as so allowed with a Conditional Use Permit.

G. Hours of Operation. All marijuana non-storefront retail facilities operating in any permissible district may only operate between the hours of 8:00 a.m. and 10:00 p.m. and may operate up to seven days per week.

G.H. Non-storefront retail facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are currently set forth in Title 16 Code of Regulations, Sections 5414 through 5427, as may be amended.

Section 5. AMENDING SECTION 17.180.050 (“MARIJUANA CULTIVATION FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA FACILITIES
OPERATION AND LOCATION”) OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.050 (“Marijuana Cultivation Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.050 Marijuana cultivation facilities.

A. Permitted Locations. Marijuana cultivation facilities involving the cultivation of more than 99 mature flowering marijuana plants shall only be located in any Industrial District in the City.

B. Interior Only. Marijuana cultivation shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No marijuana cultivation operations, including harvesting and growing plants at any stage, shall be visible from any public right-of-way.

C. Permits. Marijuana cultivation facilities shall obtain a City-issued Conditional Use Permit and Regulatory Permit.

D. Hours of Operation. All marijuana cultivation facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

E. Noise. Any marijuana cultivation facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

Section 6. AMENDING SECTION 17.180.060 (“MARIJUANA
MANUFACTURING FACILITIES”) OF CHAPTER 17.180
(“MARIJUANA FACILITIES OPERATION AND LOCATION”) OF
TITLE 17 “ZONING” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE

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Section 17.180.060 (“Marijuana Manufacturing Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.060 Marijuana manufacturing facilities.

A. Permitted Locations. Marijuana manufacturing facilities shall only be located in any Industrial District in the City, subject to the regulations set forth in this chapter and any additional regulations as may be promulgated hereunder by an ordinance or resolution of the City Council or otherwise pursuant to this chapter.

B. Permits.

1. Marijuana Manufacturing—Administrative Approval. A duly approved marijuana cultivation facility, with a duly approved Conditional Use Permit and Regulatory Permit, may request modification of the already approved Conditional Use Permit to operate a marijuana manufacturing facility provided the Director of Community Development, or designee, finds all of the following:
a. There is a 10% or less than deviation to each of the following:
i. On-site circulation and parking, loading and landscaping, ii. Placement and/or height of walls and fences,
iii. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme,
iv. The density or intensity of a development project,
v. Paving, and
vi. Hours of operation;
b. The marijuana cultivation facility and its manufacturing use is consistent with the goals, objectives, policies and programs of the General Plan;
c. The marijuana cultivation facility and its manufacturing use complies with all applicable zoning and other regulations;
d. The marijuana cultivation facility and its manufacturing use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity;
e. The location, design and operation of the marijuana cultivation facility and its manufacturing use will be compatible with existing and planned land uses in the vicinity;
f. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all

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applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law.

Applications for a modification of a Conditional Use Permit under this section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in subsection (B)(2). Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana manufacturing facility applications under this section may be referred to the planning commission at the discretion of the Director.

2. Marijuana Manufacturing Facilities Not Operating Within a Duly Existing Marijuana Cultivation Facility. Marijuana manufacturing facilities which are not operated within an existing and duly approved marijuana cultivation facility or which results in any additional impact or expansion of use or structure(s) shall obtain a City-issued Conditional Use Permit and Regulatory Permit.

C. Interior Only. Marijuana manufacturing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No marijuana manufacturing shall be visible from any public right-of-way.

D. Operational Requirements.

1. Manufacturers are limited to certain equipment, methods, solvents, gases and mediums when creating marijuana extracts.

2. Manufacturing facilities with a State license of a Type-6 (non-volatile) or a Type 7 (volatile) classification may be allowed to operate under this chapter.

3. All other methods of extraction shall be conducted in an environment appropriate to the solvent being used, with consideration to proper ventilation and ignition source controls.

4. All equipment, systems and manufacturing processes must meet or exceed all applicable State and Federal requirements and regulations regarding air, water, health and safety, and handling, processing and storage of hazardous materials, solvents, gases and waste. No manufacturing facility shall commence operations or be issued any form of certificate of occupancy without first obtaining all required fire, environmental, health and safety, planning, and building certificates, permits and approvals required under City’s Municipal Code and all other applicable County, State and Federal regulations.

E. Hours of Operation. All marijuana manufacturing facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

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F. Noise. Any marijuana manufacturing facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

E.G. Chemical Engineer. As a condition of obtaining a City-issued marijuana Regulatory Permit and Conditional Use Permit, a licensee of a manufacturing facility desiring to operate under this chapter shall first verify that the licensee employs or contracts with a person who has a B.S. in chemical engineering from an accredited school who shall supervise the design, installation and operation of the facility’s systems and manufacturing processes. Such person shall inspect the premises on a quarterly basis and provide such inspection report to the City. The licensee shall submit to the City a written statement that he or she certifies under penalty of perjury that the name of the employee/contractor is true and correct. The employee/contractor shall also submit a written statement that he or she certifies under penalty of perjury his or her educational qualifications and verifying that he or she is employed or contracted to supervise the design, installation and operation of the facility’s systems and manufacturing processes.

F.H. State Regulations. In the event the State of California implements health and safety regulations applicable to marijuana manufacturing facilities, upon implementation of such State regulations, all marijuana manufacturing facilities operators shall immediately implement the State regulations. Should the City’s regulations be stricter than the State regulations, the marijuana manufacturing facility shall use the City’s regulation. The City reserves all rights it has with implanting its own local regulations.

Section 7. AMENDING SECTION 17.180.070 (“MARIJUANA TESTING FACILITIES” OF CHAPTER 17.180”) (“MARIJUANA FACILITIES
OPERATION AND LOCATION”) OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.070 (“Marijuana Testing Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.070 Marijuana testing facilities.

A. Permitted Locations. Marijuana testing facilities shall only be located in any Industrial or any Commercial District in the City.

B. Interior Only. Marijuana testing shall be conducted only in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter. No marijuana testing operations shall be visible from any public right-of-way.

C. Permits. Marijuana testing facilities shall obtain a City-issued Regulatory Permit. A Conditional Use Permit is not required.

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D. Administrative Approval. A duly approved marijuana facility, with duly approved entitlements, such as a Conditional Use Permit and Regulatory Permit which is in good standing with the City, may request a Minor Modification to the already approved Conditional Use Permit to operate a marijuana testing facility provided the Director of Community Development, or his or her designee, finds all of the following:

1. There is a 10% or less than deviation to each of the following:
a. On-site circulation and parking, loading and landscaping, b. Placement and/or height of walls and fences,
c. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme;
d. The density or intensity of a development project,
e. Paving, and
f. Hours of operation;

2. The marijuana testing facility and its use is consistent with the goals, objectives, policies and programs of the general plan;

3. The marijuana testing facility and its use complies with all applicable zoning and other regulations;

4. The marijuana testing facility and its use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity;

5. The location, design and operation of the marijuana testing facility and its use will be compatible with existing and planned land uses in the vicinity;

6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law;

7. Applications for a modification of a Conditional Use Permit under this Administrative Approval section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in Section 17.180.060(B)(2).

Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana testing facility applications under this section may be referred to the Planning Commission at the discretion of the Director.

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E. Hours of Operation. All marijuana testing facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

F. Noise. Any marijuana testing facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

Section 8. AMENDING SECTION 17.180.080 “MARIJUANA DISTRIBUTION FACILITIES” OF CHAPTER 17.180 (“MARIJUANA FACILITIES
OPERATION AND LOCATION”) OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.080 (“Marijuana Distribution Facilities”) of Chapter 17.180 (“Marijuana Distribution Facilities”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended as follows:

17.180.080 Marijuana distribution facilities.

A. Permitted Locations. Marijuana distribution facilities shall only be located in Industrial Districts in the City, upon issuance of a Conditional Use Permit and a marijuana Regulatory Permit issued pursuant to the City’s Municipal Code.

B. Permits. Marijuana distribution facilities shall obtain a City-issued Conditional Use Permit and Regulatory Permit.

C. Administrative Approval. A duly approved marijuana facility, with duly approved entitlements, such as a Conditional Use Permit and Regulatory Permit in good standing with the City, may request modification of the already approved Conditional Use Permit to operate a marijuana distribution facility provided the Director of Community Development, or his or her designee, finds all of the following:

1. There is a 10% or less than deviation to each of the following:
a. On-site circulation and parking, loading and landscaping, b. Placement and/or height of walls and fences,
c. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme,
d. The density or intensity of a development project,
e. Paving, and
f. Hours of operation;

2. The marijuana distribution facility and its use is consistent with the goals, objectives, policies and programs of the General Plan;

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3. The marijuana distribution facility and its use complies with all applicable zoning and other regulations;

4. The marijuana distribution facility and its use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity;

5. The location, design and operation of the marijuana distribution facility and its use will be compatible with existing and planned land uses in the vicinity;

6. Any project contemplating this Administrative Approval must comply with the California Environmental Quality Act (“CEQA”), and any and all applicable State and local laws and regulations. If CEQA is in fact implicated, as so determined by the Director of Community Development, CEQA must be adhered to, as so required by law;

7. Applications for a modification of a Conditional Use Permit under this Administrative Approval section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section. Any modification request which exceeds the prescribed limitations outlined in this section shall comply with requirements set forth in Section 17.180.060(B)(2).

Minor modifications shall not apply when a nonconforming use, structure or site is involved. Marijuana distribution facility applications under this section may be referred to the Planning Commission at the discretion of the Director.

D. Interior Only. Other than loading, unloading and transportation, all distribution of marijuana and marijuana products shall be conducted only in the interior of enclosed structures, facilities, or buildings.

E. Hours of Operation. All marijuana distribution facilities located in any Light Industrial (I-L) District may operate up to twenty-four hours per day and up to seven days per week.

F. Noise. Any marijuana distribution facility located in a Light Industrial (I-L) District must, at all times, comply with all applicable noise regulations, including, but limited to, Chapter 8.12 of this code.

E.G. Labor Peace Agreements. All applicants for a Conditional Use Permit pursuant to this chapter shall demonstrate that it has already entered into, and will abide by the terms of a labor peace agreement, as defined in California Business and Professions Code Section 26000 prior to issuance of Certificate of Occupancy.

F.H. Public Safety. All applicants for Conditional Use Permit to operate a marijuana distribution facility under this chapter shall: (1) demonstrate that such facility will be equipped with adequate security installations and systems to prevent trespassing, theft and diversion of marijuana for unlawful purposes, including exterior lighting, an alarm system, and 24-hour, on-site security personnel, tag and trace protocols and video surveillance; and (2) shall maintain such security installations and systems while in operation.

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Section 9. SEVERABILITY

That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 10. EXECUTION AND CERTIFICATION

That the City Clerk is directed to do all things necessary to cause the execution of this ordinance immediately upon its adoption and shall thereafter certify the passage of this ordinance and cause the same to be published according to law.

Section 11. EFFECTIVE DATE

That this ordinance shall take effect thirty (30) days after its second reading by the Desert Hot Springs City Council.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2021 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
_________________________________ ______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer Mizrahi, City Attorney

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SR-23-058
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Amending Regulations to Mobile Food Vending Vehicles (Food Trucks) (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, Amending Chapter 5.52 “Mobile Food Vending Vehicles” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code." BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on March 7, 2023.

The Ordinance shall take effect thirty (30) days after its second reading.

FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1 - Staff Report from March 7, 2023
Exhibit 2 - Ordinance - Food Trucks

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SR-23-041
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance Amending Regulations to Mobile Food Vending Vehicles (Food Trucks) (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, Amending Chapter 5.52 “Mobile Food Vending Vehicles” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code." BACKGROUND:

Desert Hot Springs Municipal Code (“DHSMC”) Chapter 5.52 regulates Mobile Food Vending Vehicles also known as “food trucks”.

The City is currently working on a downtown revitalization, investing grant money into small businesses, encouraging tourism and commercial activity, and promoting greater diversity of dining options within the City.

While the City’s current regulations permit food trucks, the regulations are so rigorous that they limit their operations. Additionally, the City’s future proposed events and projects would be hindered by the current regulations limiting the time and place where food trucks can operate. The current regulations interfere with the economic development strides the City has made in the general commercial zone, with developers, and our small business communities.

Moreover, to protect the health and safety of residents and patrons’ food trucks must comply with State, County, and local regulations. The proposed amendments will align regulations with those of the State of California and the County of Riverside to ensure that safe food handling, sanitation, and hand

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SR-23-041
washing practices are adhered to. Furthermore, it safeguards patrons by ensuring that permitted food trucks are easily identifiable.

DISCUSSION:

The proposed ordinance seeks to amend the City’s food truck regulations to align with its vision for a thriving commercial community, and protect the safety and welfare of the public as follows:

Hours of Operation:
• A mobile food vending vehicle may only stand or park in the public right-of-way within a commercial zone between the hours of 7:00 a.m. and 2:00 a.m. In all other zones, mobile food vending vehicles may only stand or park in the public right-of-way between the hours of 9:00 a.m. and 9:00 p.m.

County of Riverside Regulations:
• Any mobile food vending vehicle licensed by the County of Riverside as a Category 4 (NonPrepackaged Food Vehicle) or Category 5 (Mobile Food Preparation Unit) mobile food facility shall provide a minimum of one conspicuous trash receptacle within twenty (20) feet of the vehicle. The trash receptacle will serve both employees and customers. • Each vendor shall affix to the lower right side of the windshield of his or her mobile food vending vehicle a current grade card/decal issued by a County of Riverside health inspector.

Additionally, a current Mobile Food Vending Vehicle Permit must be prominently displayed on the vending side of their mobile food vending vehicle. • Each person who drives, operates, or vends from a mobile food vending vehicle shall maintain a current, valid California driver’s license and a current Food Handler Certificate issued by the County of Riverside. The driver’s license and Food Handler Certificate shall be presented for inspection upon request by law enforcement officials or code compliance officers upon request.

CA Health & Safety Code Regulations:
• Pursuant to Health and Safety Code § 114315, mobile food vending vehicles shall be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility, or as otherwise approved by the City Manager, to ensure that restroom facilities are available to vendor employees whenever the mobile food vending vehicle is stopped to conduct business for more than a one-hour period.

Temporary Use Permits:
• A TUP issued under this subsection shall be valid for a maximum of 30ninety (90) calendar days. • If a vendor is approved for multiple temporary use permits, the aggregate time allowed for vending through the permits shall not exceed 270 calendar days in the commercial downtown zone or 120 days in all other zones in a single calendar year.

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SR-23-041
FISCAL IMPACT:

None.

ATTACHMENTS:

Exhibit 1: Ordinance - Food Trucks

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ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, AMENDING CHAPTER 5.52 “MOBILE FOOD VENDING VEHICLES” OF TITLE 5 “BUSINESS LICENSES AND REGULATIONS” OF THE DESERT HOT SPRINGS MUNICIPAL CODE.

WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, California Vehicle Code Section 22455 states that local jurisdictions may, by ordinance or resolution, regulate the “type of vending and the time, place, and manner of vending from vehicles upon any street”; and
WHEREAS, Chapter 5.52 “Food Trucks,” of the Desert Hot Springs Municipal Code (“DHSMC”) currently regulates mobile food vending vehicles; and WHEREAS, the City Council seeks to create more opportunities for mobile food vending vehicles to operate within the City; and
WHEREAS, mobile food vendors provide a greater diversity of dining options within the City and encourages tourism and commercial activity; and WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS DOES ORDAIN AS FOLLOWS:

Section 1. RECITALS.

The Recitals are hereby incorporated by this reference.

Section 2. AMENDMENT OF CHAPTER 5.52 (MOBILE FOOD VENDING VEHICLES) OF TITLE 5 (BUSINESS LICENSES AND

REGULATIONS) OF THE DESERT HOT SPRINGS MUNICIPAL
CODE
Chapter 5.52 (Mobile Food Vending Vehicles) of Title 5 (Business Licenses and Regulations) of the Desert Hot Springs Municipal Code shall be amended to read as follows:

5.52.005 Purpose.

The City Council expressly finds that vehicles in which produce confections and food products are prepared, cooked, and/or carried for purposes of retail sale on the

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public streets are an important aspect of the community. That said, those vehicles can pose special dangers to the public health, safety, and welfare of children and residents in the City of Desert Hot Springs. It is the purpose and intent of the City Council, in enacting this, to provide responsible companies and individuals who engage in the operation of mobile food vending vehicles, as defined in this chapter, with clear and concise regulations to prevent safety, traffic, and health hazards, as well as to preserve the peace.

5.52.010 Definitions.

For the purposes of this chapter, the definitions in this section are adopted and made a part thereof:

A. “Food” or “food products” means any type of edible victuals or beverage.

B. “Vend” or “vending” means to sell, offer for sale, display, barter, exchange, or otherwise give food, food products, merchandise, or prepackaged food from a mobile food vending vehicle. Cannabis products may not be vended.

C. “Vendor” means a person or entity who vends, including an employee or agent of a vendor.

D. “Merchandise” means goods and wares containing a trademark associated with a person or entity operating a mobile food vending vehicle.

E. “Mobile food vending vehicle” means any self-propelled or motorized device or vehicle by which any person or property may be propelled or moved upon a highway, or which may be drawn or towed by a self-propelled or motorized vehicle, from which food, food products, merchandise or prepackaged food are prepared, cooked, sold, offered for sale, displayed, bartered, exchanged or otherwise given by a vendor.

F. “Special event” means an event or activity that is held or conducted pursuant to a special event permit approved by the City per the City’s Special Event Application Review Process as adopted by resolution of the City Council or a temporary use permit approved pursuant to Chapter 17.136 Temporary Use Permits.

G. “Prepackaged food” means any properly labeled and processed food, prepackaged to prevent any direct human contact with the food product upon distribution from the manufacturer, and prepared at an approved source.

5.52.020 Mobile food vending vehicle permit.

A. No mobile food vending vehicle or vendor may vend in the City without first obtaining and having in his or her possession an annual mobile food vending vehicle permit issued by the City in accordance with this chapter.

B. To obtain a mobile food vending vehicle permit, a vendor must complete a permit application on the form approved by the City and file it with the City. The application form shall require the following information:

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1. Applicant’s full name and address.

2. Proof of applicant’s identity.

3. Proof of insurance coverage satisfactory to City.

4. A brief description of the type of food products and any merchandise to be sold. This shall include the nature, character and quality of the product.

5. The location and/or streets where the applicant plans to vend.

6. If applicant is employed by another to vend, the name and business address of the employer.

7. A description of the vending vehicle, including logo and color scheme, its registration number, and its license number.

8. A copy of a Riverside County Department of Health permit.

9. A copy of the applicant’s City business license.

10. A certification that the vendor will comply with all local, State and Federal laws regarding food product vending, including all applicable sales tax requirements and this chapter.

11. Any other information deemed appropriate by the City.

C. No application for a new or renewed mobile food vending vehicle permit shall be accepted unless the application is accompanied by a fee in an amount set by a City Council resolution.

D. Upon receipt of a written application for a mobile food vending vehicle permit, the Community Development Director shall conduct an investigation as he or she deems appropriate to determine whether a mobile food vending vehicle permit should be approved. A permit shall be approved, conditionally approved, or denied within 30 calendar days of the filing of an application. The mobile food vending vehicle permit shall be denied if one or more of the following findings is made:

1. The applicant has made a false, misleading or fraudulent statement of fact, or made a material omission of fact, to the City in the application process.

2. The application does not contain the information required by this chapter.

3. The applicant has not satisfied the requirements of this chapter.

4. The applicant has violated any provisions of this code within the past year.

This finding may be excused at the discretion of the Community Development Director if, after an investigation into the facts and circumstances of the prior violations, the

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Community Development Director determines that issuance of a mobile food vending vehicle permit would not compromise public safety.

E. The City may condition the approval of any mobile food vending vehicle permit to ensure compliance with this chapter and other applicable laws.

F. Any mobile food vending vehicle permit shall be valid for the term of one year. Upon the expiration of the mobile food vending vehicle permit, an application for renewal shall be filed in a like manner as an application for an original mobile food vending vehicle permit, and such renewal permit shall be approved or conditionally approved only when the requirements for the issuance are met.

G. Any mobile food vending vehicle permit may be suspended or revoked by the Community Development Director or designee for failure to comply with the terms and conditions of this chapter, or permit conditions. Such suspension or revocation shall be made with written notice to the permit holder, stating the grounds for the revocation and the procedures for appealing the same. The permit holder may appeal this decision by filing a written request for appeal with the City Clerk within 15 days of the date of the notice. Any revocation or suspension shall be stayed during the pendency of the appeal unless the immediate public health or safety requires otherwise. Failure to timely file a written request for an appeal hearing constitutes a waiver of the right to an appeal hearing. Selection of a hearing officer and the hearing shall be conducted pursuant to Sections 4.36.060 through 4.36.230 of the Desert Hot Springs Municipal Code, or successor sections. The decision of the hearing officer shall be final.

H. A mobile food vending vehicle permit shall not be assignable or transferable.

5.52.030 General regulations.

A. General Regulations Pertaining to All Mobile Food Vending Vehicles. All Mobile food vendor vehicles must comply with all of the following:

1. The vendor has a valid mobile food vending vehicle permit and business license from the City, including insurance as defined in subsection (A)(9).

2. All food, food products, merchandise, and prepackaged foods that are prepared, stored, cooked, or displayed must be fully enclosed and contained within the mobile food vending vehicle. No open air preparation of food or food products is permitted.

3. The mobile food vending vehicle is in full compliance with all parking and Vehicle Code provisions which apply to the location at which it is parked.

4. The mobile food vending vehicle shall remain parked and immobile while vending.

5. The vendor shall not encroach onto a public sidewalk with any part of its mobile food vending vehicle or any other equipment or furniture related to the operation of its business.

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6. The mobile food vending vehicle has a valid permit, certificate or other required approval from the Riverside County Department of Health.

7. All food products sold or provided from the mobile food vending vehicle shall comply with all applicable food labeling requirements established by the State of California and the vendor must obtain all required permits, including, without limitation, health permits, to sell or provide such items.

8. No alcohol beverage, general merchandise or commercial sales other than food are permitted, other than company merchandise.

9. The vendor shall maintain insurance, as deemed acceptable in the reasonable discretion of the City, and provide to the City written certification thereof, against liability for death or injury to any person and damage to property as a result of ownership, operation, or use of its mobile food facilities. In addition, the vendor shall indemnify, defend and hold the City harmless from any claims arising out of or related to the vendor’s ownership, operation, or use of its mobile food facilities, except as otherwise permitted by applicable law.

10. The vendor shall not discharge any liquid (e.g., water, grease, oil, etc.) onto or into any streets, storm drains, catch basins, or sewer facilities. All discharges shall be contained and properly disposed of by the vendor.

11. The vendor shall comply with sound amplification regulations in chapter

8.12 of this code.

12. Vending of cannabis products of any kind is prohibited.

13. Vendors and mobile food vending vehicles shall comply with all applicable Federal, State and local laws.

14. A vendor may locate its mobile food vending vehicle on a street as long as the vendor adheres to the following standards and conditions: The mobile food vending vehicle does not obstruct pedestrian or vehicular traffic.

15. Vending is prohibited on the exposed street and/or vehicular traffic side of the mobile food vending vehicle. The vendor shall not distribute any item from the mobile food vending vehicle in a manner that causes any person to stand in that portion of the street that is between the vehicle and the center of the street. A mobile food vending vehicle is limited to two signs excluding exterior graphics. The exterior sign shall be secured at all times that the mobile food vending vehicle is moving. No sandwich board or other signs are permitted on the ground in the area or on the mobile food vending vehicle.

16. A mobile food vending vehicle may only stand or park in the public right-ofway within a commercial zone between the hours of 7:00 a.m. and 2:00 a.m. dusk. In all other zones, mobile food vending vehicles may only stand or park in the public right-of-way between the hours of 9:00 a.m. and 9:00 p.m.

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17. No vendor shall engage in vending unless he or she maintains a clearly designated litter receptacle in the immediate vicinity of the mobile food vending vehicle, marked with a sign requesting use by patrons. Prior to leaving the location, the vendor shall pick up, remove and dispose of all trash generated by the vendor’s operation located within a 25-foot radius of the mobile food vending vehicle’s location. This provision does not include require picking up trash in the street in an unsafe manner. a. The exterior storage of refuse, equipment, or materials associated with the mobile food vending vehicle is prohibited.
b. Any mobile food vending vehicle licensed by the County of Riverside as a Category 4 (Non-Prepackaged Food Vehicle) or Category 5 (Mobile Food Preparation Unit) mobile food facility shall provide a minimum of one conspicuous trash receptacle within twenty (20) feet of the vehicle. The trash receptacle will serve both employees and customers.

18. Each vendor shall affix to the lower right side of the windshield of his or her mobile food vending vehicle a current grade card/decal issued by a County of Riverside health inspector. Additionally, a current Mobile Food Vending Vehicle Permit must be prominently displayed on the vending side of their mobile food vending vehicle.

19. Each person who drives, operates, or vends from a mobile food vending vehicle shall maintain a current, valid California driver’s license and a current Food Handler Certificate issued by the County of Riverside. The driver’s license and Food Handler Certificate shall be presented for inspection upon request by law enforcement officials or code compliance officers upon request.

20. Pursuant to Health and Safety Code § 114315, mobile food vending vehicles shall be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility, or as otherwise approved by the City Manager, to ensure that restroom facilities are available to vendor employees whenever the mobile food vending vehicle is stopped to conduct business for more than a one-hour period.

21. Exceptions. This section shall not apply to:
a. Vending at construction sites.
b. Vending on school property with consent of school authorities. c. Vending on private property with consent of the property owner, lessee, or legal occupant, and with a valid Temporary Use Permit.

B. No vendor may engage in vending or otherwise operate a mobile food vending vehicle:

1. On any street within a residential zone.

2. On any street designated as part of a Safety Enhancement Zone pursuant to Chapter 12.28 of this code.

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3. Within 50 feet from the outer edge of any entrance of any business which serves food on private property during the hours such business is open to the public. This prohibition may be waived with the written consent of such business.

4. Within 30 feet of any street intersection controlled by a traffic light, crosswalk, or stop sign.

5. Within 30 feet of a bus stop.

6. Notwithstanding any other provision in this chapter, Nno mobile food vending vehicle may be located within 300 feet of the nearest property line of any property on which a public or private school building is located, between the hours of 7:00 a.m. and 5:00 p.m. of any school day.

7. Within 500 feet of the nearest property line of any school serving students 18 years of age or younger unless that school is a college, university, or vocational school that primarily serves students older than 18 years of age, unless the mobile food vending vehicle is associated with a certified farmers’ market that is open at the time that the food vending truck is conducting business.

8. When the posted speed limit on the public street, alley or highway is greater than 35 miles per hour.

5.52.040 Mobile food vending vehicle on public or private property (temporary uses).

A. No mobile food vending vehicle may vend or locate on any private property or City-owned property except as permitted in this section. All permitted operations on private property or City-owned property shall otherwise comply with applicable operational standards set forth in this chapter.

B. Mobile food vending vehicles may vend or park locate on a nonresidential private property, including in the adjacent right-of-way, with written permission from the property owner pursuant to a Temporary Use Permit (TUP) or a special event permit.

In addition, any mobile food vending vehicle participating in a City-sponsored event shall not be required to obtain a TUP and may vend as part of the City-sponsored event.

C. Vendors wishing to obtain a TUP pursuant to this section shall file a written application request to do so at least 10 business days prior to the requested date of vending. Such request may be made on a form prescribed by the Community Development Director or designee and shall include, at a minimum, the location, date, and time of the requested vending.

1. The TUP shall limit vending and locating on an applicable private or Cityowned property for three consecutive days at a time, and thereafter restrict the vendor from vending at the same location for three consecutive days. Vendors may alternate between vending on and off an applicable property for the duration of a TUP.

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2. The maximum days for all TUP approvals for mobile food vending vehicles shall be limited to 30 calendar days per year for all commercial zones and shall be limited to 90 calendar days per year for all industrial zones. No application for a TUP shall be accepted unless the application is accompanied by a fee in an amount set by City Council resolution.

3. Notwithstanding any other provisions of this chapter, vendors may seek a TUP to vend at construction sites that are operating with all required permits under this code, and located within industrial zones. A TUP issued for construction sites shall be valid for a maximum duration of six months.

4. The vendor may use up to four tall stand-up cocktail-type tables, but, no chairs, fences or other on-site furniture (permanent or otherwise) shall be permitted.

D. Vending from Public Parks. A TUP may be granted to vendors to vend in public parks. Notwithstanding obtaining a TUP, a vendor shall not operate at a public park if a separate organization is currently renting such park, unless the organization grants written permission to the vendor.

1. A TUP issued under this subsection shall be valid for a maximum of 30 ninety (90) calendar days.

2. If a vendor is approved for multiple temporary use permits, the aggregate time allowed for vending through the permits shall not exceed 270 calendar days in the commercial downtown zone or 120 days in all other zones in a single calendar year.

E. Mobile food vending vehicles wishing to vend on City-owned property outside of the public right-of-way must apply for a special event permit or as an approved accessory use as part of a facility use permit from the Public Works Department.

F. Violation of any permit issued under this section shall be grounds for suspension or revocation of a mobile food vending vehicle permit. All permits issued under this chapter may be suspended or revoked in accordance to the procedures of Section 5.52.020.

G. The Community Development Director shall evaluate and consider any request for a TUP. The Community Development Director may approve, conditionally approve or deny the request consistent with the requirements of this chapter and the public health, safety, and welfare. The Community Development Director’s decision may be appealed in the same manner as a mobile food vending vehicle permit.

5.52.050 Regulations for prepackaged foods.

A. The regulations of this section shall apply only to a vendor exclusively selling prepackaged foods. A vendor exclusively selling prepackaged foods shall otherwise comply with the provisions of this chapter.

B. Vendors exclusively selling prepackaged foods may operate as follows.

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1. Vend in a residential zone. However, the vendor may not stop on a residential street for longer than necessary to complete a transaction.

5.52.060 Violations.

Violations of this chapter are infractions and a public nuisance subject to all remedies available to the City, including, without limitation, all remedies provided pursuant to Title 4 of this code.

Section 3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 5. AMENDING OF BAIL SCHEDULE

That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 6. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Section 7. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ____ day of _______, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

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ATTEST:
_________________________________
Jerryl Soriano, City Clerk
APPROVED:
_______________________________
Scott Matas, Mayor
APPROVED AS TO FORM:
_________________________________
Jennifer A. Mizrahi, City Attorney

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SR-23-057
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance to Update Regulations for Transfers of Ownership for Cannabis Businesses (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: “An Ordinance of the City Council of the City of Desert Hot Springs, California Amending Section 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code in Order to Update Regulations for Transfers of Ownership."
BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on March 7, 2023.

The Ordinance shall take effect thirty (30) days after its second reading.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1 - Staff Report from March 7, 2023
Exhibit 2 - Ordinance - Transfer of Ownership

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SR-23-040
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 7, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Update Regulations for Transfers of Ownership for Cannabis Businesses (Exempt from CEQA pursuant to CEQA Guidelines Section 15061 (b)(3))
RECOMMENDATION:
1) Staff Report
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony from those opposed;
6) Take public testimony from those in a neutral position; 7) Close the Public Hearing; and
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: “An Ordinance of the City Council of the City of Desert Hot Springs, California Amending Section 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” of the Desert Hot Springs Municipal Code in Order to Update Regulations for Transfers of Ownership."
BACKGROUND:

Chapter 5.50 of the Desert Hot Springs Municipal Code (“DHSMC”) provides the regulatory framework for the operation of cannabis facilities, including the process for transferring ownership of a Cannabis Facility from an owner/owner group to another owner/owner group.

Currently the City's Municipal Code does not clearly and adequately define ownership of a Cannabis Facility, while State regulations specifically define which change(s) in ownership constitutes a transfer of ownership. The intent is to provide specificity to what constitutes ownership, a transfer of ownership, and the required process to address transfers of ownership.

DISCUSSION:

The proposed ordinance seeks to amend Chapter 5.50 to define ownership, transfer of ownership, and define the process for transferring ownership of a Cannabis Facility. Cannabis and Code Compliance has processed numerous transfers of ownership, which is onerous to the new owners and difficult to process, causing confusion and long delays in processing.

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SR-23-040
Staff conducted research and met with other Cities to discuss various transfer of ownership processes.

The following proposed amendments would allow for a defined and efficient process for staff to regulate cannabis facility transfers of ownership:

Cannabis Facility Ownership Terminology:
1) Removes term "responsible persons" and includes "owners" from applicable ordinances.

Ownership is Defined as Follows:
1) A person with an aggregate ownership interest of 20% or more in a cannabis facility, or in the person applying for a Cannabis Facilities Regulatory Permit. 2) The manager of a nonprofit or other entity.
3) A member of the board of directors of a non-profit or for-profit entity. 4) All persons with an aggregate ownership interest of twenty percent (20%) or more in a cannabis facility, including but not limited to:
a) A general partner of a cannabis facility that is organized as a partnership. b) A non-member manager or managing member of a cannabis facility that is organized as a limited liability company.
c) Any person holding a voting interest in a partnership, association, or limited liability company.
d) All officers or directors of a cannabis facility that is organized as a corporation and all shareholders who individually own more than twenty percent (20%) of the issued and outstanding stock of the corporation.
5) A person who will be participating in the direction, control, or management of a cannabis facility.

Change in ownership:
1) Any of the following changes in ownership affecting a permittee shall require the issuance of a new Cannabis Facilities Regulatory Permit pursuant to this Chapter:
a) Any change affecting any ownership interest of a cannabis facility or person that results in a person holding an aggregate ownership interest of 20% or more of a cannabis facility, when that person did not previously hold an aggregate ownership interest of 20% or more in the cannabis facility.
b) Any change in the direction, control, or management of a cannabis facility.

Changes to a Cannabis Facility:

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SR-23-040
1) Any of the following changes to the structure or operation of a cannabis facility shall require only a permit modification. A permittee seeking a permit modification as required under this subsection shall pay the required filing fee for a permit modification, as determined by resolution of the City Council, and provide such information, including the information required by section 5.50.040, as may be required by the City Manager or designee. The City Manager or designee shall apply the criteria in section 5.50.060 to decide whether to approve the modification. The decision of the City Manager or designee shall be final.
2) Any change affecting any ownership interest of a cannabis facility, including, but not limited to, any change in ownership that affects an ownership interest of less than 20% of the cannabis facility. 3) A change in the form or structure of a permittee. Notwithstanding any other provision of this section, a permittee may undertake any change in its form or structure, as long as the change in form or structure does not cause any change affecting an ownership interest. The permittee must promptly apply for and obtain a permit modification.

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

The following ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.

ATTACHMENTS:

Exhibit 1: Ordinance - Transfer of Ownership

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ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA AMENDING CHAPTER 5.50 “CANNABIS BUSINESSES” OF TITLE 5 “BUSINESS LICENSES AND
REGULATIONS” OF THE DESERT HOT SPRINGS MUNICIPAL CODE

IN ORDER TO UPDATE REGULATIONS FOR TRANSFERS OF

OWNERSHIP
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 5.50 of the Desert Hot Springs Municipal Code imposes operating conditions on cannabis facilities, such as security plans, background checks, and odor control; and
WHEREAS, the City Council desires to amend Chapter 5.50 of the Desert Hot Springs Municipal Code to update regulations related to transfers of ownership for cannabis facilities and obtaining information on owners and personnel; and WHEREAS, the City Council finds that regulating transfers of ownership is in the best interest of the public health, safety and welfare of the residents of the City.

NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:

Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.

Section 2. AMENDMENT OF CHAPTER 5.50 “CANNABIS
BUSINESSES” OF TITLE 5 “BUSINESS LICENSES AND
REGULATIONS” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE
Chapter 5.50 (“Cannabis Businesses”) of Title 5 (“Business Licenses and Regulations”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:

5.50.010 Purpose and intent.

Cannabis facilities shall be permitted, upon application and approval of a regulatory permit in accordance with the criteria and procedures set forth in this chapter, which include the need to obtain and maintain a conditional use permit validly issued by the City per the code. Cannabis facilities shall operate under the regulations and conditions as set forth in this chapter. Nothing in this chapter is intended to repeal or conflict with Chapter 17.180 of this code, and both chapters shall be read together to effectuate the purposes and intent of this code.

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5.50.020 Definitions.

Words and phrases not specifically defined in this code shall have the meaning ascribed to them as defined in the following sources:

A. The Compassionate Use Act of 1996 (California Health and Safety Code Section 11362.5).

B. The Medical Marijuana Program Act (California Health and Safety Code Sections 11362.7 through 11362.83).

C. Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211).

D. When used in this chapter, the defined terms in Chapter 17.180 of the municipal code shall have the same meanings for this chapter. “Cannabis” and “marijuana” have the same meaning and are used interchangeably.

E. When used in this chapter, references to State law include the laws as may be amended.
“Applicant” means any business entity person applying for a permit or a renewal of a permit pursuant to this chapter.
“Cannabis” or “marijuana” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define marijuana).

The terms cannabis and marijuana shall be used interchangeably in this chapter. “Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis goods into the human body.
“Cannabis business park” means a property owned by a private party or entity located in a commercial or industrial district that leases or sells or otherwise uses structures, parcels, or lots therein to two or more cannabis facilities engaged in commercial cannabis activity and which provides for the park security, amenities, improvements, and landscaping for the cannabis facilities therein. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency.

Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.

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“Cannabis cultivation facility” means a facility wherein cannabis is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of cannabis and/or cannabis goods between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Cannabis facility” means collectively any facility that is defined in Chapter

17.180 any business or operation that engages in commercial cannabis activity or medicinal cannabis, and includes every cannabis facility type defined in this chapter and in Chapter 17.180 of this code.
“Cannabis goods” means cannabis, including dried flower, and products containing cannabis.
“Cannabis manufacturing facility” means a facility where the production of cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of cannabis or cannabis goods, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid cannabis manufacturing facility license, a cannabis regulatory permit, and a conditional use permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to cannabis manufacturers.
“Cannabis testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis goods and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations. “City” means the City of Desert Hot Springs.
“Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensing, or sale of cannabis and cannabis goods, or any other cannabis activity allowed in this code.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” shall mean cannabis facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq.

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“Delivery” means the commercial transfer of cannabis or cannabis goods from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of cannabis or cannabis products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis goods either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which one legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.
“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container.
“Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container.
“Limited-access area” means an area within a cannabis facility in which cannabis goods are stored or held and is only accessible to a responsible person, permitholder permittee, owner, or employees and or authorized individuals. “Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis goods either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Medicinal cannabis” or “medicinal cannabis good” means cannabis or a cannabis good, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. “Non-storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., in the California Code of Regulations, as may be amended.

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Currently, this is a delivery only retail facility which sells cannabis to a customer solely and exclusively by delivery.
“Off-site sales” means the sale of cannabis for consumption off the premises. “On-site sales” means the sale of cannabis for consumption on the premises. “Owner” or “Owners” means any of the following:

1. A person with an aggregate ownership interest of 20% or more in a cannabis facility, or in the person applying for a Cannabis Facilities Regulatory Permit.

2. The manager of a nonprofit or other entity.

3. A member of the board of directors of a non-profit or for-profit entity.

4. All persons with an aggregate ownership interest of twenty percent (20%) or more in a cannabis facility, including but not limited to:
a. A general partner of a cannabis facility that is organized as a partnership.
b. A non-member manager or managing member of a cannabis facility that is organized as a limited liability company.
c. Any person holding a voting interest in a partnership, association, or limited liability company.
d. All officers or directors of a cannabis facility that is organized as a corporation and all shareholders who individually own more than twenty percent (20%) of the issued and outstanding stock of the corporation.

5. A person who will be participating in the direction, control, or management of a cannabis facility.
“Permittee” means any business entity possessing a cannabis facilities regulatory permit pursuant to this chapter.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Responsible person” means any officer, board member, person who will participate in the direction, control or management of, or any person with an ownership stake in, an applicant or permittee.

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“Retail area” means a building, room, or other area that is open to the public, upon the licensed retailer or licensed microbusiness premises authorized to engage in retail sales in which cannabis goods are sold or displayed.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., in the California Code of Regulations, as may be amended.

Currently, this is a retail facility which sells and/or delivers cannabis or cannabis goods to customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.

5.50.030 Cannabis facilities regulatory permit required.

A. It is unlawful for any person, cannabis facility, a cannabis business park, association, partnership, corporation, or any other entity to engage in, conduct or carry on, in or upon any premises within the City, any commercial cannabis activity without a cannabis facilities regulatory permit.

B. Cannabis facilities and cannabis business parks shall register and obtain a cannabis facilities regulatory permit from the City prior to commencing or continuing operation.

C. A valid State license pursuant to Business and Professions Code Section 26000 et seq., shall be required to operate any cannabis facility.

5.50.040 Cannabis facilities regulatory permit application process.

A. Every applicant owner must complete each of the following steps prior to submitting an application for a cannabis facilities regulatory permit:

1. Secure all necessary land use entitlements as required by the City of Desert Hot Springs Zoning Code for the premises of the cannabis facility.

2. Obtain a valid State license pursuant to California Business and Professions Code Section 26000 et seq.

3. Secure building permits.

B. Upon the completion of all tasks under subsection A, the applicant owner shall file an application to the City Manager or designee upon a form provided by the City and shall pay a nonrefundable application fee as established by resolution of the City Council as amended from time to time.

C. The application for a cannabis facilities regulatory permit shall include, but not be limited to, the following:

1. An operating plan that complies with the requirements of this chapter. The operating plan includes a general description of the proposed types of products and activities at the cannabis facility.

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2. The address of the location of the cannabis facility and the names, dates of birth, phone numbers, email addresses, and mailing addresses of owners responsible persons.

3. Information regarding the applicant cannabis facility, including, without limitation, the name and address of the applicant cannabis facility, and evidence that the applicant cannabis facility is duly organized under the applicable laws of the State of California.

4. A floor plan designating all interior dimensions of the premises and the layout of the cannabis facility, including all limited-access areas, areas of ingress and egress, and all security cameras. Such floor plan shall also show the principal uses of the floor area depicted therein. For cultivation sites, such floor plan shall distinguish all dimensions of areas in which plants are located.

5. A list of each current and prospective owner responsible person, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility. Such persons must be 21 years of age or older.

6. For each current and prospective owner responsible person, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility, a list of their criminal convictions in the State of California and in states other than California, if any, and any civil, administrative or legal judgment or other activities of a fraudulent nature.

7. All owners responsible persons, employees, and independent contractors, and any other persons engaged in the operation of the cannabis facility must submit fingerprints and other information for a background check, including a criminal history records check, as required by this chapter.

8. The name and address of the owner and lessor of the real property upon which the cannabis facility is to be operated. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that a cannabis facility will be operated on his or her property.

9. A security plan that addresses the measures required by this chapter.

10. An odor control plan that complies with the requirements of this chapter.

11. The name and address of the applicant’s cannabis facility’s current agent for service of process or other authorized agent.

12. The names and addresses of any other cannabis facility currently being operated by the applicant or owner responsible person, or that had previously been operated by the applicant or owner responsible person, and a statement of whether the authorization for any such operation had been revoked or suspended and, if so, the reason therefor.

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13. Authorization for the City Manager or designee to seek verification of the information contained within the application.

14. A statement in writing by the applicant that it certifies under penalty of perjury that all the information contained in the application is true and correct.

15. Payment of a nonrefundable application fee. The fee shall be established by resolution of the City Council from time to time.

16. Any such additional information as deemed necessary by the City Manager or designee to administer this chapter.

D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within thirty days written notice by the City Manager or designee.

E. An applicant may withdraw its application any time prior to the issuance or denial of a permit by submitting a form for withdrawal provided by the City. Submission of a withdrawal form does not deprive the City of its authority to institute or continue any proceeding against the applicant for the denial of an application for a permit upon any ground provided by law or to enter an order denying an application for a permit upon any such ground.

F. Following the issuance of a cannabis facilities regulatory permit, the applicant cannabis facility may not commence or resume operations until it has secured a business license.

5.50.050 Background checks.

A. Prior to commencing work at a cannabis facility or a cannabis business park, all current and prospective owners responsible persons, employees, independent contractors, applicants, permittees, temporary employees, and any other persons who will be engaged in the operation of the cannabis facility or a cannabis business park must submit to and pass a background check. The background check shall include fingerprinting and other necessary information for a criminal history records check conducted by the Desert Hot Springs Police Department. Employees hired through employment agencies are subject to this section.

B. Prior to commencing work at a cannabis facility or a cannabis business park, any owners responsible persons, employees, independent contractors, permittees, temporary employees, and any other persons who will be engaged in the operation of the cannabis facility or a cannabis business park hired or retained after a cannabis facilities regulatory permit has been obtained by a cannabis facility must submit to and pass a background check. The background check shall include fingerprinting and other necessary information for a criminal history records check conducted by the Desert Hot Springs Police Department. Employees hired through employment agencies are subject to this section. The City must be immediately notified by the cannabis facility or a cannabis business park upon the hiring or retention of new employees hired through employment agencies.

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C. The City shall request from the State Department of Justice subsequent notification service, pursuant to Section 11105.2 of the Penal Code, for persons subject to a criminal history records check.

D. The standards contained in subsections E through I of Section 5.50.060 of this chapter shall govern whether a person passes a background check.

E. For purposes of this section, no person subject to a background check is deemed to have passed unless notified in writing by the Desert Hot Springs Police Department.

F. Upon passing the background check, each owner responsible person, employee, independent contractor, applicant, temporary employees, and any other person engaged in the operation of the cannabis facility or a cannabis business park shall be assigned a City-issued cannabis identification card that must be visibly worn at all times. No person required to carry a City-issued cannabis identification card may work at a cannabis facility or a cannabis business park without carrying a City-issued cannabis identification card. Conviction for any controlled substance felony subsequent to commencing work or employment shall be grounds for revocation of a cannabis identification card or denial of the renewal of a cannabis identification card.

G. All applicants, owners responsible persons, permittees, employees, temporary employees, independent contractors, and any other persons engaged in the operation of the cannabis facility or cannabis business park who were previously not subject to this section and who have already commenced work shall comply with this section upon the effective date of the ordinance codified in this section.

5.50.060 Grounds for denial of a cannabis facilities regulatory permit.

The City Manager or designee shall deny a regulatory permit for a cannabis facility or a cannabis business park upon making any of the following findings:

A. The applicant or owner(s) responsible persons made one or more oral or written misrepresentations or omissions.

B. The cannabis facility does not possess an active license issued pursuant to California Business and Professions Code Section 26000 et seq.

C. The cannabis facility or a cannabis business park does not comply with the provisions of this chapter or State law.

D. The cannabis facility or a cannabis business park has not obtained all land use entitlements required by the Desert Hot Springs Zoning Code.

E. The suitability of current or prospective owners responsible persons, applicants, permittees, employees, temporary employees, independent contractors, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park per the terms of this chapter is insufficient based on any such

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person’s previous civil, administrative or legal judgment or other activities of a fraudulent nature.

F. A current or prospective owner responsible person, applicant, employee, temporary employees, independent contractor, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park has been convicted for an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made. A conviction means a plea of guilty, entry of judgment upon a finding of guilty, or a plea of nolo contendere. An offense is substantially related to the qualifications, functions, or duties of the business for which the application is made includes, but is not limited to, the following:

1. A violent felony conviction as defined under Section 667.5(c) of the Penal Code.

2. A serious felony conviction as defined under Section 1192.7 of the Penal Code.

3. A felony conviction involving fraud, deceit, or embezzlement.

4. A felony conviction for the hiring, employing, or using a minor in transporting, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor.

5. A felony conviction for the selling, offering to sell, furnishing, offering to furnish, administering, or giving away any controlled substance to a minor.

6. A felony conviction for drug trafficking with enhancements pursuant to Health and Safety Code Section 11370.4 or 11379.8.

7. A prior sanction by the State, a city, a county, or a city and county for unauthorized commercial cannabis activity or had their state license suspended or revoked within the previous three years.

G. Notwithstanding subsection F, the City Manager or designee may conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the responsible persons, current or prospective employees, independent contractors, or any other persons who will be engaged in the operation of the cannabis facility or a cannabis business park to determine whether such the person(s) is are otherwise suitable to work at a cannabis facility or a cannabis business park and whether issuing a permit to the applicant cannabis facility would not compromise public safety.

H. Any person required to undergo a background check under this section responsible person, current or prospective employee, independent contractor, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park shall not be denied a permit if denial is solely based on either of the following:

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1. A conviction or act that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made for which a certificate of rehabilitation pursuant to Penal Code Section 4852.01 et seq., has been acquired.

2. A conviction that was subsequently dismissed pursuant to Section 1203.4, 1203.4a, or 1203.41a of the Penal Code or any other provision allowing for dismissal of a conviction.

I. Except as to subsections (F)(5) and (6), and notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, where the sentence, including any term of probation, incarceration, or supervised release, is completed for a conviction of possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis, such conviction is not considered substantially related, and shall not be the sole ground for denial of a permit. For all other controlled substances, the City Manager or designee shall have sole discretion to determine whether such conviction is considered substantially related and grounds for denial of a permit.

J. One or more owner responsible person, current or prospective employee, temporary employees, independent contractor, or any other person who will be engaged in the operation of the cannabis facility or a cannabis business park who is not 21 years of age or older is listed in the application.

K. Failure to pay the application fee.

L. The application is inactive for a period of six months from the date of submission. Inactive includes, but is not limited to, the failure to obtain a certificate of occupancy, failure to commence construction work, failure to comply with the conditions of approval, and failure to submit all required documentation.

M. Any violation of this municipal code.

N. Any other condition specified by law.

O. If the City Manager or designee denies an application, a written notice specifying the reasons for denial shall be issued to the applicant. The City Manager or designee’s decision shall be final unless the applicant appeals pursuant to Section

5.50.220 within 14 calendar days of the date of service of the City Manager’s or designee’s decision.

5.50.070 General security requirements.

A. Each cannabis facility shall develop and implement, to the City Manager or designee’s satisfaction, a security plan to prevent unauthorized entry to the cannabis facility and to prevent theft or unlawful trafficking of cannabis and cannabis goods.

Security plans shall contain the following measures:

1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least 90 days of digitally recorded documentation in

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a format approved by the City Manager or designee. The cameras shall be in use 24 hours per day, seven days per week. The areas to be covered by the security cameras shall include, but are not limited to, public areas, limited-access areas, storage areas, transportation areas, employee areas, all doors and windows, and any other areas as determined to be necessary by the City Manager or designee. a. The security cameras shall have sufficient battery backup to support a minimum of 15 minutes of recording in the event of a power outage. b. The City Manager and designee shall have access to the security cameras of each cannabis facility at any time, including remote access. The City Manager or designee may duplicate and/or take possession of recordings made by the security cameras. No search warrant or subpoena shall be required. c. Cannabis facilities shall provide the City Manager or designee the computer monitoring application used, IP address and access usernames and passwords used to login into the security camera system and view live footage, playback footage and to extract recordings.

2. The cannabis facility shall be alarmed with an audible interior and exterior alarm system, unless waived for extenuating circumstances by the City Manager or designee, that is operated and monitored by a recognized security company, deemed acceptable by the City Manager or designee. Any change in the security company shall be subject to the approval of the City Manager or designee. All current contact information regarding the cannabis facility’s security company shall be provided to the City Manager or designee.

3. Entrance to the dispensing, cultivation, manufacturing, testing, or distribution areas and any storage areas shall be locked at all times, and under the control of cannabis facility staff.

4. All cannabis and cannabis goods shall be securely stored, and a reliable, commercial alarm system shall be installed and maintained where the cannabis and cannabis goods are secured.

5. A security guard, licensed by, and compliant with all regulations of the California Department of Consumer Affairs, Bureau of Security and Investigative Services shall be present only during business hours for storefront retailers and 24 hours a day for all other types of cannabis facilities. The security guard(s) must possess a valid Security Guard Card and if armed a Firearms Permit issued by the California Department of Consumer Affairs, Bureau of Security and Investigative Services. A cannabis facility may contract through a properly regulated private security company which private company complies with all State law requirements, including those of the Bureau of Cannabis Compliance. All security personnel hired or contracted for by the licensee shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. The City must be notified of any change of a private security company, if providing its own security guards.

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6. Each cannabis facility shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis and cannabis goods and any currency.

B. The City Manager or designee and law enforcement shall have the right to enter any cannabis facility at any time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and all applicable laws.

1. The cannabis facility shall cooperate with the City Manager or designee who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter.

C. Every cannabis facility shall notify the City Manager or designee within 24 hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the City.

2. Diversion, theft, loss, or any criminal activity pertaining to the operation of the retailer.

3. Diversion, theft, loss, or any criminal activity by any agent or employee of a cannabis facility pertaining to the operation of the cannabis facility.

4. The loss or unauthorized alteration of records related to cannabis or cannabis products, registered qualifying patients, primary caregivers, or cannabis facility employees or agents.

5. Any breach of security.

5.50.080 General Operating Requirements.

All cannabis facilities must comply with the requirements set forth in this section.

A. Every cannabis facility shall operate in compliance with all applicable state and local laws and regulations governing cannabis facilities.

B. Every cannabis facility shall maintain and regularly update on a monthly basis a roster of responsible persons, current owners, employees, temporary employees, independent contractors, and any other person engaged in the operation of the cannabis facility. The roster must include names, each individual cannabis identification number (CID) and a copy of the individuals’ City-issued cannabis identification card, date of hire, and contact information. The roster shall be made available for inspection or copying by the City Manager or designee upon written or oral request. Notwithstanding anything to the contrary in this section, the cannabis facility shall immediately notify the City of any new or different responsible persons, employees, independent contractors, and any other person engaged in the operation of the cannabis facility in order to conduct a background check under Section 5.50.050.

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C. No person who is less than 21 years of age may be employed or otherwise engaged in the operation of a cannabis facility.

D. Cannabis and cannabis goods possessed by a cannabis facility shall be kept and stored in a secured manner at all times.

E. On-site smoking, ingestion, or consumption of cannabis shall be prohibited on the premises of all cannabis facilities. “Premises,” for purposes of this section, includes the actual building as well as any accessory structures, common areas and parking areas.

F. Cannabis facilities shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the premises.

G. Cannabis facilities shall not advertise in a manner intended to encourage persons under 21 years of age to consume cannabis or cannabis goods.

H. Each cannabis facility shall display a copy of its cannabis facilities regulatory permit issued pursuant to this chapter in a conspicuous place at or near the entrance to the premises.

I. Cannabis facilities shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its premises. Cannabis facilities shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.

J. Waste Disposal. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

K. Each cannabis facility must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

L. Cannabis facilities are not authorized to sublet any portion of their premises for any purpose, unless all necessary applications to modify the existing premises to accomplish any subletting have been approved by the City.

M. Hours. All cannabis facilities may only be open between the hours of 8:00 a.m. and 10:00 p.m. and may operate as often as seven days per week.

N. If consumable cannabis goods (including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on-site or offered for distribution, then the cannabis facility shall secure any approval from the County of Riverside Department of Health Services required for handling food products.

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O. Cannabis facilities shall have an electronic point of sale system that produces historical transactional data for review by the City Manager or designee for auditing purposes.

P. Odor Control. Cannabis facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis facility that is distinctive to its operation is not detected outside the cannabis facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis facility. As such, cannabis facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or

2. An air system that creates negative air pressure between the cannabis facility’s interior and exterior so that the odors generated inside the cannabis facility are not detectable outside the cannabis facility.

A violation of this subsection by any cannabis facility located within an Industrial District shall be excused so long as the odor is not detectable more than 150 feet beyond the cannabis facility’s property line.

Q. Each cannabis facility shall provide the City Manager or designee with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom the City can provide notice if there are operating problems associated with the cannabis facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis facility. Each cannabis facility shall also provide the above information to its business neighbors located within 100 feet of the cannabis facility as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

R. Create and maintain an active account within the state’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity. In the event of system failure, the cannabis facility shall keep a hard copy record and transfer the information to the track and trace system within 24 hours of the system being available.

S. Cannabis facilities must pay all applicable taxes pursuant to Federal, State, and local law, including, but not limited to, the cannabis tax required by Title 3, State and local sales and use taxes, and State excise taxes.

T. Cannabis facilities shall fully comply with all applicable provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211), Compassionate Use Act of 1996, the Medical Marijuana Program Act, the 2008 Attorney General Guidelines, all applicable

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provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.

U. Cannabis facilities shall create and maintain records of daily sign-in logs for all responsible person, owners, employees, independent contractors, or any other person who will be engaged in the operation of the cannabis facility. A minimum of 30 days of daily sign-in logs shall be provided to the City Manager or designee upon a verbal or written request.

V. The City Manager or designee may impose reasonable terms and conditions on the proposed operations of the cannabis facility in addition to those specified in this chapter.

5.50.090 Retailer operating requirements.

In addition to the operation requirements of Section 5.50.080, storefront retail facilities shall comply with the requirements of this section.

A. Storefront retail facilities shall comply with Section 17.180.040 of this code.

B. The display of cannabis and cannabis goods for sale shall be limited to retail areas and not be visible from outside the premises. Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection.

The containers shall not be readily accessible to customers without assistance of retailer personnel. A container must be provided to the customer by the licensed retailer or its employees, who shall remain with the customer at all times that the container is being inspected by the customer. Cannabis goods removed from their packaging for display shall not be sold or consumed and shall be destroyed when no longer used for display.

C. Storefront retail facilities may sell or otherwise provide equipment, supplies, and cannabis accessories used to consume cannabis and cannabis goods.

D. A storefront retail facility that possesses edible cannabis goods shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

E. A storefront retail facility may not sell any expired products, cannabis or cannabis goods. A storefront retail facility shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

F. No storefront retail facility shall cause or permit the access, sale, or exchange of cannabis goods or products to any person who is not at least 21 years of age or at least 18 years of age with a valid physician’s recommendation for medical cannabis.

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5.50.100 Nonstorefront retailer operating requirements.

In addition to the operation requirements of Section 5.50.080, nonstorefront retail facilities shall comply with the requirements of this section.

A. Nonstorefront retail facilities shall comply with Section 17.180.045 of this code.

B. A nonstorefront retail facility that possesses edible cannabis goods shall comply with the provisions of all relevant State and local laws regarding the storage, handling, and sale of food.

C. A nonstorefront retail facility may not sell any expired products, cannabis or cannabis goods. A nonstorefront retail facility shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

D. No nonstorefront retail facility shall cause or permit the access, sale, or exchange of cannabis goods or products to any person who is not at least 21 years of age or at least 18 years of age with a valid physician’s recommendation for medical cannabis.

5.50.110 Cultivator operating requirements.

In addition to the operation requirements of Section 5.50.080,cannabis cultivation facilities shall comply with the requirements of this section.

A. Cannabis cultivation facilities shall comply with Section 17.180.050 of this code.

B. Cannabis cultivation facilities shall submit a full set of plans for approval of any and all CO2 enrichment systems and obtain an operational permit from the office of the Fire Marshal prior to installation and usage.

5.50.120 Manufacture operating requirements.

In addition to the operation requirements of Section 5.50.080, cannabis manufacturing facilities shall comply with the requirements of this section.

A. Cannabis manufacturing facilities shall comply with Section 17.180.060 of this code.

B. Edible cannabis goods shall be manufactured, packaged and labeled in compliance with State law and any implementing regulations adopted by the State.

C. All cannabis manufacturing facilities shall ensure that cannabis is obtained from permitted and licensed cultivation sources and shall implement best practices to ensure that all manufactured cannabis is properly stored, labeled, transported, and inspected prior to distribution at a legally permitted and licensed retailer.

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D. Cannabis manufacturing facilities shall submit plans for approval of any and all extraction systems and usage of hazardous materials and obtain an operational permit from the office of the Fire Marshal prior to installation and usage.

5.50.130 (Reserved).

5.50.140 (Reserved).

5.50.150 Cannabis business parks.

In addition to the applicable requirements of this chapter, cannabis business parks shall comply with the requirements of this section.

A. Prior to commencing or continuing operations, the owner(s) of cannabis business parks shall obtain a cannabis facilities regulatory permit pursuant to the provisions of Section 5.50.040, except that a license pursuant to Business and Professions Code Section 26000 et seq., shall not be required. In addition, the owner(s) of cannabis business parks shall submit, as part of their application, the following materials:

1. Interior/Exterior Site Plan. Drawn to scale and fully dimensioned, showing the proposed layout of the cannabis park denoting all the use of areas of the cannabis business park, including cultivation, processing, storing, packaging, labeling, distribution, light manufacturing, manufacturing, cannabis non-storefront retail, and laboratory testing, all access gates, all security cameras, guard houses/stations/offices, public areas, employee areas, doors, windows, storage, cultivation, dispensing, plus location of odor absorbing air ventilation and exhaust systems, and waste management areas, including hazardous waste.

B. For each current and prospective owner, applicant, responsible person, employee, temporary employee, independent contractor, and any other persons engaged in the operation of the cannabis business park, a list of their criminal convictions in the State of California and in states other than California, if any, and any civil, administrative or legal judgment or other activities of a fraudulent nature.

C. Cannabis business parks shall develop and implement a security plan only for the common areas and areas within their exclusive control. Nothing in this chapter shall be construed to authorize cannabis business parks to create, manage, or implement security plans for the individual cannabis facilities located within such parks.

The security plan for cannabis business parks must comply with Section 5.50.070 of this chapter. The cannabis business park shall be subject to reasonable inspections by the City Manager or designee in the same manner as cannabis facilities. In addition, the security plan shall include the following elements:

1. General Security Policies.
a. Security company.
b. Name, address, contact number.

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c. Current private patrol operator or properly authorized and regulated private security license number issued by California Department of Consumer Affairs. d. Provision for providing name(s) of all security guards and all required Guard Cards issued by California Department of Consumer Affairs information for each security guard employed.
e. At a minimum, security guards shall be posted at every operational access gate, at the security room to monitor security cameras, and at least one security guard assign to patrolling the premises.

2. Exterior Perimeter.
a. Fencing.
b. Gates.

3. Exterior lighting locations.

4. Video security system.

5. Name of cannabis business park or cannabis tenant list.

6. Video surveillance equipment.

7. Camera coverage/camera placement (interior and exterior).

8. Location of monitoring equipment and staffing.

9. Method for maintaining operation during power outage.

10. Video monitoring computer application, IP address, and access usernames and passwords used to login into the security camera system to view live footage, playback footage and to extract recordings.

11. Provision of Audible Interior/Exterior Alarm.
a. Cannabis business park.
b. Location of interior and exterior alarms.
c. Maintenance company for alarm system.
i. Name.
ii. Contact information.

12. Waste Management Storage and Disposal.

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a. Regular green and other waste.
b. Hazardous waste.
c. Proof of utilization of waste company either contracted with the City or approved by the City.

13. Staffing plan to include:
a. General patrol staffing plan within and outside the cannabis business park.
b. Staffing of ingress and egress of the cannabis business park.

14. Access Control Plan.
a. Cannabis business park access.
b. Employees staffing of ingress and egress of the cannabis business park. c. Vendors, visitors, contractor.
d. Provision for immediate access by City, State, or other officials. e. Cannabis industry tenants.
f. Cannabis business park or cannabis tenant provided.
g. Method which each cannabis tenant facility is secured, and access is under control of staff at all times.

15. Names and contact information of individuals associated with the cannabis business park.

16. Provide regularly updated maps depicting the occupied buildings and structures and tenant location and identities.

D. Nothing in this section shall be construed to prohibit any individual cannabis facility located within any cannabis business park from establishing an independent security plan, including security cameras, consistent with Section 5.50.070 of this chapter.

5.50.160 Recordkeeping.

A. Cannabis facilities and cannabis business parks shall maintain complete and accurate records specified in Business and Professions Code Section 26000 et seq., this chapter, and all other applicable recordkeeping regulations and shall make the same available for inspection and examination by the City Manager or designee upon

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request. All records specified in this subsection must be maintained for a minimum of seven years.

B. All cannabis facilities shall perform an inventory on the first business day of each month and shall record the total quantity of each form of cannabis on the premises. These records shall be maintained for two years from the date created and shall be made available to the City Manager or designee upon request.

5.50.170 Limitations on City’s liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any permit pursuant to this chapter or the operation of any cannabis facility or cannabis business parks pursuant to this chapter.

As a condition of approval, a regulatory permit as provided in this chapter, the owner applicant, at the owner’s applicant’s sole cost, shall:

A. Execute an agreement indemnifying the City and its officers, officials, employees, representatives, and agents from any and all claims, losses, damages, injuries, liabilities or losses which arise out of, or which are in any way related to, the City’s issuance of a permit under this chapter, the City’s approval of the operation of the cannabis facility or activity, or the alleged violation of any Federal, State, or local laws by the cannabis facility or any its officers, employees, or agents; B. Maintain insurance in the amounts and of the types that are acceptable to the City Manager or designee;
C. Name the City as an additionally insured on all City required insurance policies;
D. Agree to defend, at its sole expense, any action against the City, its agents, officers, and employees related to the approval of a regulatory permit; and E. Agree to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to the City’s approval of a regulatory permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder.

5.50.180 (Reserved).

5.50.190 Transference and renewal of permits.

A. Permits issued pursuant to this chapter are not transferrable. Any unlawful transfer of a permit renders such permit void.

B. A permit issued pursuant to this chapter is valid only as to the permittee identified on the permit with respect to the premises identified on the permit. The permit shall not run with the land.

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C. Change in Ownership. Any of the following changes in ownership affecting a permittee shall require the issuance of a new Cannabis Facilities Regulatory Permit pursuant to this Chapter. A permittee may transfer, convey, or sell its ownership interest only to an entity that has applied for and obtained a permit pursuant to this chapter. If there is an ownership group, an individual member transferring his or her interest to another individual will not be considered a change in ownership until the last original ownership member transfers his or her interest.

1. Any change affecting any ownership interest of a cannabis facility or person that results in a person holding an aggregate ownership interest of 20% or more of a cannabis facility, when that person did not previously hold an aggregate ownership interest of 20% or more in the cannabis facility.

2. Any change in the direction, control, or management of a cannabis facility.

D. Changes to a Cannabis Facility. Any of the following changes to the structure or operation of a cannabis facility shall require only a permit modification.

A permittee seeking a permit modification as required under this subsection shall pay the required filing fee for a permit modification, as determined by resolution of the City Council, and provide such information, including the information required by section 5.50.040, as may be required by the City Manager or designee. The City Manager or designee shall apply the criteria in section 5.50.060 to decide whether to approve the modification. The decision of the City Manager or designee shall be final.

1. Any change affecting any ownership interest of a cannabis facility, including, but not limited to, any change in ownership that affects an ownership interest of less than 20% of the cannabis facility.

2. A change in the form or structure of a permittee.

Notwithstanding any other provision of this section, a permittee may undertake any change in its form or structure, as long as the change in form or structure does not cause any change affecting an ownership interest. The permittee must promptly apply for and obtain a permit modification.

E D. Applications for renewal of permits must be submitted on forms provided by the City no less than 30 days prior to the permit’s expiration date. Any permittee allowing their permit to lapse, or which permit expired during a suspension shall be required to submit a new application, pay the corresponding original application fees, and be subject to all aspects of the application process in this chapter.

F E. Any application for renewal shall be denied if:

1. The permittee fails to conform to any of the provisions of this code;

2. The permittee is delinquent in payment of any City taxes related to commercial cannabis activity; or

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3. The permit is suspended or revoked at the time of the application.

G F. Relocation. Permittees who will relocate their cannabis facilities from a temporary structure to a permanent structure, or from one location within a cannabis business park to another location within the same cannabis business park, must obtain the approval of the City Manager or designee and acquire the applicable State cannabis license for the new location prior to relocation.

5.50.200 Visitor requirements.

A. Visitors are persons who have not taken a background check and who are not applicants, owners, responsible persons, employees, temporary employees, independent contractors, or other persons engaged in the operation of the cannabis facility or cannabis business park, but who require entry to limited-access areas.

State and City officials shall not be considered visitors. Visitors include contractors hired for maintenance or repairs of the cannabis facility, such as services for HVAC, electrical, plumbing, or similar work.

B. Visitors shall be required to sign a the cannabis facility’s visitor log, which must include the individual’s name, date of entry, and purpose for entry into limited-access areas. Cannabis facilities and cannabis business parks shall confirm the visitor’s name and information by reviewing their government-issued identification.

Only visitors 21 years of age or older may enter limited-access areas.

C. Visitors shall not be allowed to engage in the operation of the cannabis facility or cannabis business park.

D. Visitors shall be accompanied by an employee of the cannabis facility cannabis business park who has cleared the background check, and possesses a city issued cannabis identification card.

5.50.210 Suspensions, revocations, and modifications.

A. Any permit issued pursuant to this chapter is subject to suspension, modification, or revocation as set forth in subsection B. Unless otherwise stated, the procedures to suspend, modify, or revoke a permit shall be governed by the applicable provisions set forth in Chapter 4.36 of this code. Minor modifications are exempt from this section.

B. The City Manager or designee may suspend, modify, or revoke a permit issued pursuant to this chapter if any of the following, singularly or in combination, occur:

1. Any act or omission in violation of any provision of this code, any condition of approval, any additional terms or conditions imposed pursuant to this chapter, or any other applicable Federal, State, or local law.

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2. Operations cease for more than 90 calendar days, including during change of ownership proceedings.

3. Ownership is changed without securing a new permit.

4. Failure to maintain 90 days of security recordings.

5. Failure to allow reasonable inspection of security recordings, records, or the premises by authorized City officials.

6. The denial, revocation, or suspension of Failure to keep or renew a license issued pursuant to Business and Professions Code Section 26000 et seq.

7. A conviction of an owner a responsible person after issuance of the permit which would have disqualified such person pursuant to Section 5.50.050 of this chapter.

8. Failure to comply with any terms and conditions related to the permit.

9. Material misrepresentations or omissions.

10. Failure to pay local taxes as required by this code.

C. Summary Suspension. The City Manager or designee may summarily suspend a permit if a cannabis facility or cannabis business park is conducted in a manner that poses an imminent threat to the public health and safety. The City Manager or designee shall serve written notice to the cannabis facility or cannabis business park explaining the basis for summary suspension.

D. Within 10 days of any summary suspension under subsection C, the City shall initiate a hearing to review the suspension pursuant to the applicable procedures contained in Chapter 4.36 of this code.

5.50.220 Appeals.

A. Within 14 calendar days after the date of a decision of the City Manager or designee to deny a permit, an aggrieved applicant may appeal such action to a hearing officer by filing a written appeal, along with a fee as established by resolution of the City Council, with the City Clerk setting forth the reasons why the decision was not proper.

B. The City Manager or designee shall select the Hearing Officer. Hearing Officers shall be impartial third parties and shall not have any pecuniary interest in the proceeding over which he or she is presiding, nor any pecuniary interest in the outcome thereof.

C. As soon as practicable, but allowing sufficient time for providing notice of the hearing, the hearing officer shall fix a date, time and place for the hearing of the

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appeal and shall instruct the citing officer of the same. The City shall prepare and serve a notice of hearing, which shall be in substantially the same form as follows:

You are hereby notified that a hearing will be held before the Administrative Hearing Officer at __________ on the ____ day of _________, ____ at the hour of ____ concerning your appeal filed pursuant to Section 5.50.220 of the Desert Hot Springs Municipal Code. You may be present at the hearing. You may be, but need not be, represented by an attorney. You may present any relevant evidence at the hearing and you will be given a full opportunity to cross-examine all witnesses testifying against you.

D. The City shall cause a copy of the notice of hearing to be provided to each appellant either by causing a copy of the notice to be delivered to each appellant personally or by causing a copy of the notice to be delivered by certified mail, postage prepaid, return receipt requested, and addressed to each appellant at the address shown on the appeal.

E. At the hearing, the hearing officer shall hear any evidence offered either in support of, or against, appellant’s claim, provided such evidence is relevant to the issues of the hearing. The hearing officer has the authority to determine the relevance of any evidence to the hearing and shall not be limited by the technical rules of evidence. The Hearing Officer also has the authority to exclude unduly repetitious and cumulative evidence, regardless of its relevancy.

F. Each party appearing at the hearing shall have the following rights:

1. To call and examine witnesses;

2. To introduce documentary and physical evidence;

3. To cross-examine opposing witnesses;

4. To impeach any witness regardless of which party first called the witness to testify;

5. To rebut evidence; and

6. To be represented by anyone who is lawfully permitted to do so.

G. The Hearing Officer shall issue a written decision within 30 days following the conclusion of the hearing. The Hearing Officer shall cause a copy of the decision and compliance order to be served to each appellant either by causing a copy of the decision to be delivered to each appellant personally or by causing a copy to be delivered by first class mail, postage prepaid, and addressed to each appellant at the address shown on the appeal. The decision of the Hearing Officer shall be final.

H. Any appeal of the Hearing Officer’s decision shall be conducted pursuant to the California Code of Civil Procedure.

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5.50.230 Additional regulations.

The City Manager or designee may promulgate such administrative regulations as deemed necessary and appropriate that are consistent with this chapter and applicable State laws and regulations.

5.50.240 Violations.

A. It is unlawful and a public nuisance for any person or entity to violate, or fail to comply with, any provisions or requirements of this chapter, or any condition or regulation adopted pursuant to it.

B. Any violation of any of the provisions of this chapter shall constitute a misdemeanor violation and upon conviction thereof any violation shall be punishable by a fine not to exceed $1,000, or by imprisonment in the County Jail for a period of not more than six months, or by both such fine and imprisonment.

C. In lieu of issuing a misdemeanor citation, the City may issue an administrative citation, and/or assess an administrative fine of up to $1,000 for each violation of this chapter pursuant to the procedures set forth in Title 4.

D. A separate offense occurs for each day any violation of, or failure to comply with, any provision of this chapter is committed, continued, maintained, or allowed to be continued.

E. The prevailing party in any action, administrative proceeding, or special proceeding conducted pursuant to this chapter and associated with the abatement of a public nuisance shall be entitled to recovery of attorney’s fees incurred in such action or proceeding. In no such action, administrative proceeding, or special proceeding shall an award of attorney’s fees to a prevailing party exceed the amount of reasonable attorney’s fees incurred by the City in the action or proceeding.

F. The costs incurred by the City in the abatement of a violation or nuisance may be placed against any privately owned and affected property as either a special assessment pursuant to Section 4.24.410 of this code and California Government Code Section 38771 et seq., as amended from time to time, or a lien pursuant to Section

4.24.420 of this code and California Government Code Section 54988, as amended from time to time.

G. Cumulative Remedies. The remedies provided herein are not exclusive, and in the event of any violation of this chapter, the City may pursue any and all administrative, civil, and criminal remedies, as provided by law or equity, including all remedies under Title 4 of this code.

Section 5. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections,

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paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 6. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 7. AMENDING OF BAIL SCHEDULE
That the City Attorney’s Office is hereby directed to determine whether this ordinance necessitates amendment of the City’s Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 8. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Section 9. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2023 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

ATTEST: APPROVED:
______________________________ _______________________________ Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:
________________________________
Jennifer A. Mizrahi, City Attorney

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SR-23-062
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: March 21, 2023
Department: Community Development
Prepared by: Patricia Villagomez, Principal Planner
Subject: Amendment to Professional Services Agreement with Chambers Group, Inc. for On-Call Environmental Services on an As-Needed Basis RECOMMENDATION:

Authorize the City Manager to execute a Amendment to the Professional Services Agreement for OnCall Environmental Services with Chambers Group Inc. in the amount of $200,000 for one year with the option of month-to-month extensions; and to authorize the City Manager to execute all necessary agreements, as approved to form by the City Attorney.

BACKGROUND:

On February 7th, 2023, City Council approved the agreement with Chambers Group Inc. After the approval, staff found the fees presented were not the updated/correct billing rates. As a result, the item is being brought forward in order for City Council to approve the updated billing rates (EXHIBIT 2).

The City of Desert Hot Springs has an agreement with Chambers Group Inc. (EXHIBIT 3) to provide "On-Call Environmental Services” on behalf of the City’s Planning Department. Chambers Group Inc. is responsible for the preparation and/or peer review of Environmental Impact Reports (EIR), Environmental Impact Statements (EIS), Negative Declarations, Mitigated Negative Declarations, technical studies and other California Environmental Quality Act (“CEQA”) and National Environmental Protection Act (“NEPA”) documentation for proposed projects.

The purpose of the Professional Services Agreement with Chambers Group Inc. is to allow them to continue to provide consulting services to augment City staff as it relates to CEQA and NEPA, as necessary, including review of submitted documents for private developments and assisting with the AB 52 consultation process. Under the direction of the City’s Community Development Director, the Consultant (Chambers Group Inc) will serve as a coordinator and will provide the range of expertise necessary to carry out the normal functions of CEQA and NEPA. In accordance with the California Environmental Quality Act (CEQA), the City of Desert Hot Springs (“City”) follows CEQA Guidelines (California Code of Regulations – Title 14, Chapter 3) as its procedures for the review of development projects and other activities to ensure that the environment of the State is protected and enhanced.

The Chambers Group Inc. may be asked to provide a variety of professional services and prepare and/or peer review environmental documents (such as Environmental Impact Reports, Mitigated Negative Declarations, Negative Declarations, Initial Studies, and/or technical studies) in compliance

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SR-23-062
with the requirements of CEQA and NEPA. Typical environmental impacts which will need to be assessed include but are not limited to:

Aesthetics Agricultural Resources
Air Quality Biological Resources
Climate Change/Global Warming Cultural Resources
Geology and Soils Hazards and Hazardous Materials
Hydrology and Water Quality Land Use and Planning
Mineral Resources Noise Population
Housing Public Services
Recreation Transportation/Traffic
Tribal Cultural Resources Utilities and Service Systems DISCUSSION:

On July 2nd, 2019, the City of Desert Hot Springs entered into a Professional Services Agreement with Chambers Group, Inc to utilize their consultant services, as an independent contractor, to provide OnCall Environmental Services on an as needed basis. This contract was set forth with a term of 3 years for a total compensation of $150,000.

The proposed Professional Services Agreement would amend the previously approved contract, extend the term for 1 year until March 21st, 2024, and increase the total compensation to $200,000 Dollars.

The increased amount is proposed due to the various projects that are projected to be reviewed by our on-call consultant. The City of Desert Hot Springs will be posting a Request for Qualifications (RFQ) to establish a new list of Environmental Consultants which will be posted in April 2023. The contract extension with Chambers Group Inc. will allow staff to continue to utilize the services of Chambers Group Inc. while the new RFQ submittals are reviewed by staff.

FISCAL IMPACT:

The cost of professional services for the term of the agreement of one year is up to the amount of The cost of professional services for the term of the agreement of one-year is up to the amount of $200,000 dollars.

This fee is considered a "pass-through" fee and consists of the City's costs plus an additional 20% administrative fee. The fee is covered and paid for by the applicant and or developer.

ATTACHMENTS:

EXHIBIT 1 - Amendment to Chmabers Group Inc PSA
EXHIBIT 2 - Fee Schedule
EXHIBIT 3 - Original Chambers Group Inc Agreement

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PROFESSIONALSERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
CHAMBERS GROUP,INC.

THIS FIRST AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT BY AND

BETWEEN THE CITY OF DESERT HOT SPRINGS AND CHAMBERS GROUP, INC (hereinafter the “Agreement”) is made and entered into this 21st day of March, 2023, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the "City," and Chambers Group, Inc, a California corporation, hereinafter referred to as "Consultant," with the City and Consultant sometimes together referred to herein as the “Parties.”

RECITALS
WHEREAS, the Parties previously entered into that certain Professional Services Agreement by and Between the City of Desert Hot Springs and Chambers Group, Inc. dated July 2, 2019 (hereinafter, the “Agreement”), for Consultant to provide to the City with On-Call Environmental Services as directed by the City on an as needed basis; and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration the receipt and adequacy of which is hereby acknowledged, the Parties hereby agree as follows:

AGREEMENT
Section 1. RECITALS
The Recitals set forth above are hereby incorporated into this Amendment by this reference, as though fully set forth herein.

Section 2. DEFINITIONS AND TERMS
All words, terms and phrases used or referenced in this Amendment, not expressly defined in this Amendment, shall have the same meaning ascribed to them in the Agreement.

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3. SECTIONS 3 AND 4
Sections 3 and 4 of the Agreement shall be amended to read as follows:

SECTION 3. TERM
This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect until March 21st, 2024.

SECTION 4. COMPENSATION
Commencing on the date of this Amendment, the City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, an amount not to exceed a total compensation of Two Hundred Thousand Dollars (200,000) per annum, in accordance with the fee schedule attached hereto and incorporated herein by this reference as Exhibit "2."
Section 4. COUNTERPARTS
This Amendment may be executed in several counterparts, each of which shall be deemed to be an original and shall constitute one and the same instrument and shall become binding upon the Parties when at least a copy hereof shall have been signed by the Parties hereto.

Section 5. CONFLICTS
In the event there exists any conflicts between the terms of this Amendment and the Agreement, the terms of this Amendment shall be superseding.

Section 6. REMAINING PROVISIONS
All other remaining terms and conditions of the Agreement shall remain unchanged.
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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first written above.

CITY OF DESERT HOT SPRINGS CHAMBERS GROUP, INC
__________________________ ____________________________ Doria Wilms, City Manager Mike McEntee, Chief Operating Officer
ATTEST:
____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________
Jennifer Mizrahi, City Attorney

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EXHIBIT "2" FEE SCHEDULE

SEE ATTACHED

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2022
Billing Rates Effective January 2023
STAFF. Charges for all professional, technical, and administrative personnel directly charging time to the project will be calculated and billed on the basis of the following staff category hourly “Billing Rates.” Billing Rates include fringe benefits, burden, and fee.

Staff Title Rate Staff Title Rate
Senior Director $248.00 Director $220.00
Project Manager 4 $210.00 GIS Technician 4 $166.00
Project Manager 3 $190.00 GIS Technician 3 $138.00
Project Manager 2 $160.00 GIS Technician 2 $122.00
Project Manager 1 $145.00 GIS Technician 1 $111.00
Environmental Planner 7 $207.00 Cultural Resources Specialist 7 $185.00 Environmental Planner 6 $185.00 Cultural Resources Specialist 6 $163.00 Environmental Planner 5 $175.00 Cultural Resources Specialist 5 $153.00 Environmental Planner 4 $153.00 Cultural Resources Specialist 4 $134.00 Environmental Planner 3 $130.00 Cultural Resources Specialist 3 $117.00 Environmental Planner 2 $118.00 Cultural Resources Specialist 2 $105.00 Environmental Planner 1 $107.00 Cultural Resources Specialist 1 $83.00 Biologist/Botanist 7 $207.00 Technical Editor $110.00
Biologist/Botanist 6 $185.00 Project Controls Specialist $100.00 Biologist/Botanist 5 $175.00 Word Processor $80.00
Biologist/Botanist 4 $153.00 Clerical/Technician $70.00 Biologist/Botanist 3 $130.00
Biologist/Botanist 2 $118.00
Biologist/Botanist 1 $107.00
Restoration Construction
Superintendent $105.00 Restoration Specialist 3 $80.00
Foreman / QAL $90.00 Restoration Specialist 2 $60.00
Crew Lead $70.00 Restoration Specialist 1 $50.00

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PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND
CHAMBERS GROUP, INC.

This Professional Services Agreement ("Agreemenr) is made and entered into this 2 nd day of July, 2019, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the "City," and Chambers Group, Inc, a California corporation, hereinafter referred to as "Consultant."
RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with On-Call Environmental Services as directed by the City on an as needed basis (sometimes hereinafter, the "Services"), as described in more particularity in Exhibit 11A," attached hereto and incorporated herein by this reference as the "Scope of Services"; and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS, CONDITIONS

AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER GOOD AND

VALUABLE CONSIDERATION, THE RECEIPT OF WHICH IS HEREBY
ACKNOWLEDGED, THE PARTIES HERETO AGREE AS FOLLOWS:

Section 1. RECITALS
The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by this reference, as though set forth in full herein.

Section 2. SCOPE OF SERVICES
Consultant shall provide to the City the Services on an as-needed and as-directed basis in a manner satisfactory to the City and consistent with that level of care and skill ordinarily exercised by members of the profession currently practicing in the same locality under similar conditions, as described in more detail in the Scope of Services. In the

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event a conflict exists between this Agreement and the Scope of Services, the former shall supersede.

Section 3. TERM
This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect for a period of three (3) years thereafter, subject to allocation of funds pursuant to duly adopted City budget(s).

Section 4. COMPENSATION
The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, an amount not to exceed a total compensation of One Hundred and Fifty Thousand Dollars ($150,000.00) per annum, in accordance with the fee schedule attached hereto and incorporated herein by this reference as Exhibit "B." Section 5. METHOD OF PAYMENT
a. Consultant shall submit invoices to the City, not more often than once a month, describing the work performed. Consultant's bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. The City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, that the number of hours of service set forth in the invoice reflect the amount of time ordinarily expended for such service by members of the profession currently practicing in the same locality under similar conditions, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice via email.
b. The Consultant shall submit invoices under this Agreement to:

Section 6.

Rebecca Deming, Community Development Director
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760} 288-3129
Email: [email protected]

EXTRA WORK

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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 Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.

Consultant shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, provided that Consultant shall have satisfied all its obligations under this Agreement through and including the effective date of termination, and is not otherwise in breach of this Agreement. For purposes of this Section, the City Manager shall have the authority to take action on behalf of City.

Section 8. OWNERSHIP OF DOCUMENTS
All plans, studies, documents and other writings, including drafts, prepared by and for Consultant, its officers, employees and agents and subcontractors in the course of implementing this Agreement, except working notes and internal documents, shall become the property of the City upon payment to Consultant for such work, and the City shall have the sole right to use such materials in its discretion without further compensation to Consultant or to any other party. Consultant shall, at its expense, provide such reports, plans, studies, documents and other writings in pdf format to the City upon written request, or such other electronic format as reasonably requested by the C�.

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, 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 prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. 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.
b. Consultant shall not use the City's insignia or photographs relating to Consultant's Services, or any publicity pertaining to the Consultant's Services under this

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Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 10. CONSULTANT'S BOOKS AND RECORDS
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, .from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Othe1Wise, unless an alternative is mutually agreed upon, the records shall be available at Consultant's address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant's business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant's representatives, or Consultant's successorin-interest.

Section 11. INDEPENDENT CONTRACTOR'S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors.

Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant's employees, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express

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or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 12. REPRESENTATIONS AND ACKNOWLEDGMENTS

REGARDING INDEPENDENT CONTRACTOR'S STATUS

OF CONSUL TANT
a. Consultant represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities. (4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.
(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Consultant to perform the services described in this Agreement. (6) Consultant shall not at any time orin any manner represent that it or any of its officers, employees, or agents are employees of the City. b. The City represents and acknowledges the following:
(1) Consultant is r-,ot required to comply with daily instructions from City staff with respect to when, where or how Consultant must perform the services set forth in this Agreement.
(2) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Consultant pursuant to this Agreement.

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(4) Nothing in this Agreement shall be interpreted to imply that the Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. (6) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (7) Consultant is not required to perform the services set forth in the Agreement in any particular order or sequence.
(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.
property.
(9) Consultant is not required to perform the Services at City-owned Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:
"A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that if known by him or her, would have materially affected his or her settlement with the debtor or released party."
This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees' Retirement System ("Cal PERS") that are only afforded to employees and not independent contractors. Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
_J{l_
MM
Initials

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Section 14. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant's services hereunder.

Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract; (iv) granting the City approval to a contract that requires City approval · and to ·which the City is a party, or to the specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City's Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the

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City Clerk's Office pursuant to the written instructions provided by the Office of the City Clerk.

Section 15. PROFESSIONAL ABILITY OF CONSULTANT;
WARRANTY; FAMILIARITY WITH WORK; PERMITS AND

LICENSES
a. Consultant warrants that all services will be performed in a competent, professional and satisfactory manner in accordance with the standards prevalent in the industry for such services.
b. By executing this Agreement, Consultant warrants that:
(1) it has thoroughly investigated and considered the work to be performed;
(2) it has investigated the issues, regarding the scope of services to be provided;
(3) it has carefully considered how the work should be performed; and (4) it fully understands the facilities, difficulties and restrictions attending performance of the work under this Agreement.
c. Should Consultant discover any latent or unknown conditions materially differing from those inherent in the work or as represented by the City, it shall immediately inform the City of such fact and shall not proceed except at Consultant's risk until written instructions are received from the City Manager or appropriate City representative. d. Consultant represents that it and all of its subcontractors, if any, have obtained and will maintain at all times during the term of this Agreement all professional and/or business licenses, certifications and/or permits necessary for performing the services described in this Agreement, including a City business license.

Section 16. COMPLIANCE WITH LAWS
Consultant shall comply with all local, state and federal laws and regulations applicable to the services required hereunder.

Section 17. INDEMNIFICATION
a. Consultant shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect {including any and all costs, expenses and attorneys' fees in connection therewith), arising out of the

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performance of this Agreement,. except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any 1nsurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. As set forth in and without limiting the generality of Section 18.i., any applicable insurance policy limits do not act as a limitation upon the amount of indemnification to be provided by Consultant.
c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant's work promptly, or by reason of delay. or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Consultant's control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or Cal PERS to be eligible for enrollment in Cal PERS as· an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.
e. The indemnity provisions contained in this Section shall survive expiration or sooner termination of this Agreement.

Section 18. INSURANCE REQUIREMENTS
a. Policies. Consultant, at Consultant's sole cost and expense, shall procure and maintain, for the duration of this Agreement, the following insurance policies:
(1) Worker's Compensation Coverage. Consultant shall maintain Worker's Compensation Insurance and Employer's Liability Insurance for its employees in accordance with the laws of :the State of California, of an amount not less than one million dollars ($1,000,000) per occurrence. In addition, Consultant shall require each subcontractor to similarly maintain Worker's Compensation Insurance and Employer's Liability Insurance in accordance with the laws of the State of California for all of the

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subcontractor's employees. If any class of employees employed by Consultant pursuant to this Agreement is not protected by the California State Worker's Compensation Law, Consultant shall provide adequate insurance for the protection of such employees to the satisfaction of the City. This provision shall not apply if Consultant has no employees performing work under this Agreement. Consultant agrees to waive its statutory immunity under any worker's compensation or similar statute, as respecting the City, and to require any and all subcontractors and any other person or entity involved in the Services to do the same.
(2) General Liability Coverage. Consultant shall maintain commercial general liability insurance in an amount not less than two million dollars ($2,000,000} per occurrence, combined single limit coverage for bodily injury and property damage, not less than one million dollars ($1,000,000} per occurrence for personal and advertising injury, two million dollars ($2,000,000) aggregate for products and completed operations and four million ($4,000,000) general aggrgate. Consultant shall provide insurance on an occurrence, not claims-made basis. Consultant acknowledges and agrees that, for purposes of clarification with the intention of avoiding gaps in coverage with any umbrella or excess coverage, personal and advertising injury coverage shall be triggered by an "offense" while bodily injury and property damage coverage shall be triggered by an "occurrence" during the policy period. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CG 00 01 12 07 or any updated form thereof.
(3) Automobile Liability Coverage. Consultant shall maintain commercial automobile liability insurance covering bodily injury, personal injury and property damage for all activities of the Consultant arising out or of in connection with the work to be performed under this Agreement, including coverage for owned, hired and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence, and two million dollars ($2,000,000} in the aggregate. If applicable, Consultant shall be permitted to obtain a non-owned automobile endorsement to its comprehensive general liability insurance providing the same protection and coverage as .though Consultant were to provide separate commercial vehicle liability insurance as set forth in this paragraph. The coverage required in this paragraph shall provide at least as much coverage as that provided by ISO form CA 00 01 or any updated form thereof.
(4) Professional Liability Coverage. Consultant shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Consultant's Services, whether such Services are performed by Consultant or by its employees, subcontractors, or subconsultants, to the extent such persons other than Consultant are permitted to perform any of the Services under this Agreement. The amount of this insurance shall not be less than one million dollars ($2,000,000) per claim, and two million dollars ($2,000,000} in the aggregate.

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Jennifer Mizrahi (Jul 3, 2019)
Jennifer Mizrahi
C L Maynard (Jul 3, 2019)
C L Maynard
Jerryl Soriano (Jul 3, 2019)
Jerryl Soriano

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Chambers Professional Services Agreement
Final Audit Report 2019-07-03
Created: 2019-07-03
By: CD Admin ([email protected])
Status: Signed
Transaction ID: CBJCHBCAABAA78MYfAcBEwvBxgkijDqPmEcGV2Gp1WJ_ "Chambers Professional Services Agreement" History
Document created by CD Admin ([email protected])
2019-07-03 - 3:13:09 PM GMT- IP address: 47.176.23.114
Document emailed to Jennifer Mizrahi ([email protected]) for signature 2019-07-03 - 3:15:29 PM GMT
Email viewed by Jennifer Mizrahi ([email protected]) 2019-07-03 - 7:04:14 PM GMT- IP address: 70.34.169.68
Document e-signed by Jennifer Mizrahi ([email protected]) Signature Date: 2019-07-03 - 7:04:37 PM GMT - Time Source: server- IP address: 70.34.169.68 Document emailed to C L Maynard ([email protected]) for signature 2019-07-03 - 7:04:39 PM GMT
Email viewed by C L Maynard ([email protected])
2019-07-03 - 7:32:47 PM GMT- IP address: 174.212.22.129 Document e-signed by C L Maynard ([email protected]) Signature Date: 2019-07-03 - 7:34:18 PM GMT - Time Source: server- IP address: 174.212.22.129 Document emailed to Jerryl Soriano ([email protected]) for signature 2019-07-03 - 7:34:19 PM GMT
Email viewed by Jerryl Soriano ([email protected]) 2019-07-03 - 8:40:18 PM GMT- IP address: 76.80.105.166
Document e-signed by Jerryl Soriano ([email protected]) Signature Date: 2019-07-03 - 8:40:52 PM GMT - Time Source: server- IP address: 76.80.105.166 Signed document emailed to Jennifer Mizrahi ([email protected]), C L Maynard ([email protected]), Jerryl Soriano ([email protected]), and CD Admin ([email protected]) 2019-07-03 - 8:40:52 PM GMT

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