Cities Index.
Agenda

Desert Hot Springs City Council
October 17, 2023

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Agenda
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October 17, 2023
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Desert Hot Springs City Council
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987
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One concern that may be raised is how opening up new opportunities for residential development in the downtown could affect parking availability. This is a valid concern, and one which underscores the importance of implementing the other recommendations of this report, as they are designed to complement and strengthen one another. For example, development standards can help discourage residents from owning more vehicles than necessary.

Residential uses are also complementary in that they typically experience peak parking demand overnight, when the parking demands of other uses are at their lowest. If the City supports walking, biking, and shared mobility— including e-bikes and car share programs—downtown households with lower car ownership will still have attractive transportation options available. Finally, if the City is prepared to implement longer-term strategies, including managing public parking based on demand, making use of new technologies, and creating a parking benefit district, increasing residential density in the downtown is nothing to fear and will only increase the vibrancy of the area.

This recommendation aligns with the Desert Hot Springs Downtown Concept Plan—which was recently prepared by California Polytechnic State University students, in collaboration with City staff and based on feedback from community members. The Downtown Concept Plan also recommended rezoning all Residential-Low and Residential-Medium areas of downtown to Mixed-Use Neighborhood, which would allow higher densities. Some of the parcels which would be re-zoned are within the Downtown Study Area, on the north side of First Street and the south side of Acoma Avenue. The Downtown Concept Plan also recommends re-zoning General-Commercial parcels to Downtown-Commercial.

Residential uses should also be allowed by right in Downtown-Commercial zones, but the City may limit them to upper floors. For example, as shown in Figure 36, the City of Santa Monica’s zoning code includes L(1) as a category in addition to more standard categories such as P (Permitted) or CUP (Conditional Use Permit).

The L(1) category in Santa Monica’s zoning code references the following limitation:
• “Limited to upper floors, and on the ground floor where the entire tenant space shall be located at least 25 feet from the front property line, except for residential units shall be limited to upper floors only.” This zoning has supported the City in creating a dense, walkable downtown, with apartments built above retail establishments.

Item Number: 6.

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Figure 36: Example of Santa Monica’s L(1) Zoning Category Permitting Residential Units on Upper Floors Source: City of Santa Monica Municipal Code, 2023.

Impact on the Industrial Cannabis Study Area
Opening new opportunities for residential units to be constructed above light industrial development is a more innovative strategy, but it is supported by similar rationale to the downtown area; the housing could increase the pool of potential workers in the area and decrease average vehicle miles traveled, as many other jobs and locations (including schools, supermarkets, and many local businesses) would be only a short distance away. Light-Industrial zoning in Desert Hot Springs already allows a maximum structure height of five stories, so upper levels could potentially be developed as residential units. Allowing housing on upper levels creates potential light industrial land to be used even more efficiently and can increase property values without compromising the City’s goals for Item Number: 6.

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industrial development. Allowing housing to be built on upper levels does not mean it would make sense for every development, but some developers might see on-site housing as an appropriate and compatible use to include in their projects, which could provide financial security for the project and a valuable benefit for the community.

Traditional zoning codes separate industrial uses from residential uses, but advances in technology have made many industries cleaner, safer, and quieter—and potentially compatible with housing. Both residents and cannabis businesses might mutually benefit from an increased sense of security, as businesses often employ on-site security personnel, which could make residents feel safer, and residents provide more “eyes on the street” who would be likely to notice and report any suspicious activities.

With thoughtful plans and policies in place to manage parking demand, residential components of new light industrial developments would not necessarily create parking difficulties in the area. Indeed, employment centers such as in Silicon Valley have begun exploring providing housing in place of the parking at large employment sites.

Policies that discourage private parking and support sustainable transportation will help ensure new developments attract residents who want to work nearby or who can live comfortably with fewer vehicles. There may also be shared parking opportunities, as residential and industrial developments generate peak parking demand at different times of day. Another benefit is that mixed-use developments could significantly contribute to street safety improvements—such as creating sidewalks, developing dedicated bike/scooter lanes, and installing speed bumps—which would benefit residents and employees alike.

Financial Implications and Staffing Requirements
Allowing residential development as an upper-floor use in Downtown-Commercial and light-industrial zones could increase the economic viability of projects, increase property values, and expand the City’s tax base. Increasing residential densities in the downtown and industrial cannabis study areas would also result in more efficient use of financial resources that promote sustainable transportation in these key areas.

Like the other policies recommended thus far, expanding the areas where mixed-use and infill development is allowed would primarily require drafting a new ordinance (establishing a new category of permitted uses such as L(1)), and occasionally performing more detailed site plan reviews, with minimal additional staff time required. New upper level residences will also result in increased demand for public services, but this would occur regardless of where new housing units are located.

5. Support Walking, Biking, and Shared Mobility
Explanation and Rationale
Desert Hot Springs has the opportunity to transform its transportation and land use system so that equitable, healthy, and sustainable modes of transportation are not only the most affordable, but also the most convenient and enjoyable. While the midday heat that occurs for several months a year is certainly a consideration, as are the windy conditions, the mild climate for most of the year provides opportunities for transportation choice. Ultimately, Desert Hot Springs will get what it builds for. A transportation strategy that takes “alternative” modes of travel— including walking, biking, e-bikes, electric scooters, neighborhood electric vehicles, transit services, carpooling, and car sharing—seriously today will eventually result in the following long-term benefits:

Item Number: 6.

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• Access and mobility for those too young, too elderly, too financially constrained, or otherwise unable to drive
• Financial freedom from the expenses of vehicle ownership (the Economic Policy Institute estimated average annual transportation spending for an adult in Desert Hot Springs at $10,624—nearly half of the City’s median income for an individual, and over a quarter of the median household income) • More efficient land use and reduced sprawl, resulting in more affordable housing, opportunities for community amenities, and the preservation of open space • Health and wellness benefits of fresh air and exercise • Greater sense of community
• Reduced automobile accidents and fatalities
• Improved air quality
• Reduced greenhouse gas emissions
• Economic vitality and support for local businesses
• Reduced traffic congestion
• Fiscal sustainability and savings on infrastructure spending By planning for and investing in sustainable transportation and shared mobility, the City can eventually create a system in which individual incentives align with collective goals for health, fiscal responsibility, environmental sustainability, economic vitality, and community.

The City’s strategy should recognize its unique local context—including the warm climate, the grade of the terrain, the low residential density, and the need for connection with the surrounding region. Given these features, the strategy should especially consider opportunities to promote (1) electric bicycles and scooters, which can allow riders to travel uphill with minimal physical exertion and quickly cover longer trip distances within the City, and (2) car sharing opportunities, a convenient transportation option that can allow households who need a car or additional car only occasionally to reduce their vehicle ownership.

The shared mobility strategy should also recognize public transit availability in the area. Fixed route bus services can be expected to improve with time, as demand grows—as population density increases and vehicle ownership rates decrease. SunLine Transit Agency’s on-demand rideshare service, SunRide, can also play an important role in providing transportation access. In the cannabis district in particular, the City should also consider opportunities for commuter transportation, explore regional partnerships, and promote regional commute planning and incentive programs, including Sun Commute, IE Commuter, and SolVan Vanpool Program.

Implementation Actions
While implementation for the previous five strategies is more straightforward, often requiring little more than a zoning ordinance update, the strategy of supporting walking, biking, and shared mobility requires a more thorough outlining of recommended implementation steps. In addition to continuing to implement the recommendations set forth in the 2016 Bicycle and Pedestrian Master Plan, the following actions are advised:

1. Develop an Active Transportation Safety and Connectivity Plan The City of Desert Hot Springs has applied for grant funding to develop an Active Transportation Safety and Connectivity Plan, which will incorporate and update the 2016 Bicycle and Pedestrian Master Plan. Plan objectives Item Number: 6.

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include (1) safer street design, (2) access to greater mobility choices, (3) a more sustainable, resilient, and equitable community, (4) improvements to mobility and connectivity, (5) reductions in greenhouse gas emissions, and (6) improvements to air quality and public health and safety. Having a plan in place for multimodal infrastructure improvements is essential, and other actions listed for this strategy may help with the implementation of projects listed in the Active Transportation Safety and Connectivity Plan.

2. Adopt Mode Share Goals and Align Budget Expenditures Adopting specific targets can help the City monitor its progress toward making sustainable mobility options safer, more convenient, and more appealing to travelers. These targets should also govern general fund transportation expenditures. For example, San Luis Obispo County has a 20 percent mode share goal for bicycling, so their policy requires that 20 percent of spending on transportation supports bicycle infrastructure. Mode share targets could be updated every ten years as the City makes progress toward its goals. Planning efforts are valuable only to the extent that they are implemented, and implementation requires aligning public spending with community goals.

The City should further support mode share goals by establishing corresponding “road share goals.” For example, if the City sets a ten-year goal for bicycle and scooter mode share at 20 percent, the City should plan to allocate a corresponding share of roadway space to dedicated bike lanes. Similarly, the City could plan to allocate 20 percent of the land currently used for automobile parking to bicycle and scooter parking, lockers, and charging.

3. Establish a Sustainable Mobility Impact Fee
The City has ample on- and off-street space dedicated to parking. Further, developers, their lenders, and other financial partners are already inclined to consider parking needs. In order to more quickly level the playing field for sustainable modes, Desert Hot Springs can establish a Sustainable Mobility Impact Fee.

For example, Pasadena has a Traffic Reduction and Transportation Fee. Rates are set per square foot for retail, office, and industrial developments, and by the number of units for residential developments. These funds are used for already-planned pedestrian and bicycle infrastructure projects throughout the City. Similarly, Santa Monica has a “Transportation Impact Fee”, and San Francisco has a “Transportation Sustainability Fee.” Establishing these fees requires a nexus study demonstrating the relationship between the expected transportation impacts of new developments and the cost of addressing those impacts through transportation improvements and trip reduction strategies.

4. Create a Parking and Transportation Demand Management (TDM) Plan The value of creating a Parking and TDM plan was introduced in Section 4, as a way to discourage excessive provision of private and reserved parking. However, this strategy also has significant potential to improve conditions for walking, biking, and shared mobility. Many developers consider private parking necessary for project viability and will therefore need to include equal site level benefits for sustainable travel modes.

TDM measures may include secure bicycle parking, electric bicycle and scooter charging stations, showers and lockers, a fleet of bicycles, car-share parking and membership, shuttle bus services, vanpool programs, transit passes, transportation route displays, multimodal wayfinding signage, tailored transportation marketing services, parking cash-out, or localized infrastructure improvements—such as sidewalks, bike lanes, and lighting, which were identified in the Bicycle and Pedestrian Master Plan as the top barriers to walking and biking in the City.

Item Number: 6.

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5. Promote Regional Commuter Programs
To reduce parking demand and promote sustainable travel choices, the City should explore regional partnerships promoting commuter services already offered by SunLine Transit Agency and the Riverside County Transportation Authority, including:
• SunCommute: SunLine Transit Agency provides materials, meetings, and workshops to employee transportation coordinators and provides staff for presentations to commuters. The agency also offers free trial bus passes and has an employer bus pass program with discounted monthly passes. • IE Commuter is a program of the Riverside County Transportation Commission and the San Bernardino County Transportation Authority. The program helps employers of all sizes set up customized rideshare programs at no cost to the employer. The program also provides commuters with incentives, information, and services that encourage commuters to consider alternatives to driving alone. o Rideshare Incentives and Guaranteed Ride Home Program: IE Commuter offers monthly drawings, as well as a $5 gift card per day rideshare incentive for employees who carpool or vanpool at least five days a month for three or more consecutive months. IE Commuter also offers a Guaranteed Ride Home program, which provides Lyft/Uber or other travel reimbursement for commuters who use rideshare to get to work but may have to leave early due to an emergency or stay late to work unexpected overtime.
• SolVan Vanpool Program: Other services include carpool or vanpool matching and personalized bus or train routing assistance. IE Commuter partners with SunLine Transit to offer the SolVan program, a vanpool incentive program for groups of 5 to 15 people, which provides a $400-500 per month subsidy to offset the cost of the van lease. Vanpool is marketed as a way to save money by splitting the cost of gas, tolls, and parking, enjoy more free time and legroom, reduce wear and mileage on personal vehicles, travel in a more environmentally friendly way, and save time in traffic by accessing HOV lanes.

The City should also explore whether there may be an opportunity to partner with regional agencies and local employers to collaboratively develop a more tailored employee transportation program, such as a commuter shuttle, serving the cannabis district. Especially when tens or even hundreds of employees work similar shifts, as is the case in the cannabis district, shared mobility can deliver many benefits—reducing individual transportation spending, reducing traffic congestion and emissions, reducing parking demand and allowing land to be used more efficiently, and expanding access to employment opportunities.

6. Establish Development Standards and a Plan for Bicycle and Scooter Parking.

Development standards: Requiring secure bicycle parking is one step cities can take to promote sustainable transportation. The California Green Building Standards Code already establishes bicycle parking requirements, but Desert Hot Springs can go further by updating the development code so that new developments must provide secure parking and charging that can accommodate short- and long-term storage of electric bicycles, electric scooters, and larger e-cargo bikes. Any indoor storage and charging rooms should require safety measures such as cinder blocks, upgraded electrical outlets, and sprinkler heads to protect buildings and inhabitants from fire damage and injuries, which can occasionally result from the charging of faulty e-bike and e-scooter batteries.

Planning for public infrastructure: The City should also conduct an inventory of publicly available bicycle and scooter parking, identify locations in need of public bicycle and scooter parking and charging infrastructure, and identify funding sources and a project timeline for implementing the necessary infrastructure.

Item Number: 6.

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7. Explore Potential Connector Routes between Downtown and Key Areas As downtown Desert Hot Springs develops and becomes a more popular destination, the City should explore options that would encourage visitors from key areas to visit using sustainable transportation. Routes could draw new visitors downtown and make non-driving options more accessible for those already planning to visit.

Spa District: Plans for connecting the spa district with downtown could involve creating an aesthetically appealing pedestrian, bicycle, scooter, or even neighborhood electric vehicle route along Miracle Hill Road that connects downtown with the spa district. The City could collaborate with hotels, who could offer their guests access to a fleet of personal electric vehicles, and the City could provide signage and wayfinding along the route and secure parking on Pierson Boulevard and at other tourism destinations, such as Cabot’s Pueblo Museum, or local hiking trails.

During special events, the City may also wish to explore a potential partnership and offer shuttle service from spa district and any nearby high-density residential neighborhoods to the downtown.

Cannabis Area: Cannabis area employees could also be encouraged to explore downtown Desert Hot Springs if there were a dedicated travel route for bicycles and electric vehicles. The Bicycle and Pedestrian Master Plan includes proposed bike lanes for Two Bunch Palms Trail and Cactus Drive; this could connect the cannabis area with downtown, and the City could use signage and wayfinding to specifically promote downtown access. Signage and wayfinding should also indicate transit stop locations and routes. As in the Spa District, the City should explore partnerships with employers to provide their employees access to a fleet of electric bicycles, scooters, or neighborhood electric vehicles, potentially as a TDM option or condition of development. Once a safe and attractive bike and scooter route is created, not only will multimodal commuting be more accessible, but employees may also take advantage of the opportunity to explore downtown during lunch breaks or after work.

8. Explore Opportunity to Create a Downtown Specific Plan that Includes Planning for a Mobility Hub Parking planning touches a broad spectrum of plans and issues related to land use, transportation, and economic development. The broader transportation and land use recommendations contained in this report to improve parking in the downtown therefore, of necessity, go beyond parking. Combined with previous work done by and for the City, it is likely that the next phase of implementation for meaningful implementation of the parking recommendations and other City priorities would be the creation of a comprehensive Downtown Specific Plan.

As part of this plan, the role, location, and programming of a multimodal center, or “mobility hub” in the downtown district should be determined. The mobility hub should be served by SunLine Transit and connected to active transportation infrastructure. Bikes, e-bikes, scooters, and/or shuttles may be made available for first- and last-mile travel to key employment centers, including the Industrial Cannabis district. Micromobility transportation vehicles that utilize improving battery technologies are becoming an increasingly viable, equitable, and sustainable transportation solution, particularly for short trips and first- and last-mile links to transit. Micromobility options could be a key feature of a mobility hub. Some smaller cities in the region are already forming pilot agreements with scooter companies to provide service to the public. For example, we were told that in 29 Palms, Bird scooters available through a pilot program were used not only by tourists, but also in many cases by residents, for daily work trips and errands.

Establishing a central physical presence for active transportation and shared mobility can also help increase awareness of these mode options and create more culture and community around sustainable transportation. If Item Number: 6.

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the City is able to partner with a local nonprofit organization, a mobility hub could also include community programming, such as a bike kitchen, classes, group rides, or a lending library.

Supportive General Plan Policies
Land Use and Community Design Element Policies
• LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• LU-1.7: Infrastructure. Ensure that infrastructure is integrated into the community concurrently with new development projects.
• LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-2.6: Rights-of-Ways. Use available public rights-of-ways to provide wider sidewalks, bicycle lanes, trail facilities, and transit amenities.
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-3.3: Adaptive Street Strategies. Repurpose underused roadway space for safety, mobility, and public space improvements using low-cost, temporary solutions. • Policy MI-3.4: Test Street Improvement. Install temporary, low-cost materials to test street improvement ideas prior to incorporating permanent designs for successful projects. • Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent.

Item Number: 6.

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• Policy MI-10.3: Impact Fees. Ensure that impact fees provide adequate funding for necessary transportation improvements that will benefit all travel modes, while also incentivizing development that is less dependent on expensive, new transportation.
• Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Economic Development Element Policies
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements. • Policy ED-2.3: Streamline Permit Process. Maintain a development permitting process that provides clarity, consistency, and assistance opportunities for new businesses and existing businesses looking to expand.

Open Space and Natural Resources Element Policy
• Policy OS-2.4: Air Quality Goals. Ensure that land use and transportation plans support regional air quality goals, with new development projects reducing vehicle miles traveled and vehicle trips.

Health and Wellness Element Policy
• Policy HW-1.10: Amenities that Promote Healthy Living. Encourage developments to provide access, facilities, and amenities that connect to trails, encourage walking, and/or provide for other facilities that promote healthy living.

Impact on the Downtown Study Area
Adopting mode share goals, establishing sustainable mobility impact fees, linking parking and TDM standards, adding bicycle and scooter parking, and exploring potential connector routes are all important steps to bring about a future where sustainable mobility options are convenient ways for people to access downtown. These actions align with the community’s desire for safe walking and biking infrastructure, support community health and economic vitality, and complement the parking strategies set forth in the previous sections.

In addition to the implementation action items detailed above, Desert Hot Springs should implement the following programs to support active transportation, as recommended in the Downtown Concept Plan:
• M-3.3.1 Build a bicycle kitchen.
• M-4.1.1 Incorporate speed management measures.
• M-4.3.1 Implement a pedestrian signal policy that prioritizes pedestrian safety. • M-4.5.1 Maintain the quality and cleanliness of streets. • M-5.1.2 Ensure maintenance of painted street markings. • M-5.4.1 Create unique pedestrian crossings with paintings that showcase local community artists. • CC-4.1.1 Install water fountains and hydration stations. • C-4.1.3 Develop a Downtown Shade Plan to increase tree canopy and pedestrian shade amenities.

Item Number: 6.

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Impact on the Industrial Cannabis Study Area
Supporting walking, biking, and shared mobility will also benefit the industrial cannabis study area. Safe multimodal infrastructure and regional commuter incentive programs can encourage employees to try sustainable transportation options. When more employees share rides or commute by bikes, e-bikes, and electric scooters, fewer parking spaces will be necessary, and land can be used more efficiently.

Financial Implications and Staffing Requirements
Of the five parking management strategies proposed, supporting walking, biking, and shared mobility is the only one that will require substantial ongoing investment. Fortunately, expanding and maintaining the City’s active transportation infrastructure—including secure parking and safe travel lanes for bikes and scooters—is inexpensive relative to expanding and maintaining automobile infrastructure. Spending decisions should be consistent with the community’s goals, and the City can also pursue additional funding through regional, state, and federal active transportation grants.

A significant investment of City staff time will be necessary to successfully support walking, biking, and shared mobility in Desert Hot Springs. As explained in the implementation section above, this involves developing new goals, plans, partnerships, and policies and identifying, obtaining, and allocating sources of revenue. Planning and policy efforts will require more time in the short-term, while implementation will be ongoing as the City continually seeks to become a place where residents and visitors have a variety of attractive transportation options available and can rely less on private vehicles.

Potential Longer-Term Strategies
This section introduces successful parking strategies that may become relevant for Desert Hot Springs many years into the future, if the City prioritizes livability, health, economic vitality, and sustainability through efficient land use patterns and ensures that new growth and development aligns with the community goals established in the General Plan. Over the next few decades, implementing the above strategies may gradually result in a landscape where surface parking is no longer such a dominant land use, and residents and visitors have a variety of attractive transportation options to choose from for traveling around the City.

1. Manage Public Parking Based on Demand
Explanation and Rationale
While existing conditions in the City do not demonstrate a need for demand-based parking management, the Southern California Association of Governments and the City of Desert Hot Springs share many goals that are supported by having a plan and vision in place for what to do if demand patterns and utilization rates change in the future.

In December 2022, parking utilization downtown ranged from 12 percent to 18 percent; there is an abundance of parking. The ideal occupancy rate is 85 percent, which means parking spaces are well-used but still available and convenient for visitors. This usually translates to one or two empty spaces per block. Many successful business Item Number: 6.

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districts and densely developed areas eventually find that parking occupancies naturally come to exceed this 85 percent threshold in prime locations, and strategies must be developed to maintain availability. Keeping a few spaces are available on each block keeps visitors from having to circle to find a space—saving time, preventing superfluous emissions, allowing people to arrive on-time for appointments and meetings, and ensuring potential visitors do not decide to shop or dine elsewhere due to a lack of convenient parking.

Desert Hot Springs is advised to monitor street parking occupancy, and, if ever warranted by utilization rates that regularly exceed 85 percent, develop and implement a demand-based parking management strategy. • Time limits: One approach to keeping a few spaces available involves creating parking time limits for prime street parking spaces. This can encourage employees and other longer-term parkers find a space off-street or several blocks away, ensuring the most convenient spaces are available for short-term visitors. However, this approach is somewhat limited, as it requires enforcement to be successful. Time limits are cumbersome to enforce, and the City may not wish to issue citations, which can leave visitors with a negative impression of their visit.
• Demand-based pricing: An alternative involves establishing demand-based prices—not set with the purpose of generating revenue, but simply with the purpose of ensuring continued availability. Prices set with this purpose should be kept at the lowest rate that successfully keeps a few spaces available, which supports local businesses downtown. Targeting 85 percent occupancy ensures many people are still visiting the area, and those who want to save on the cost of parking may choose to carpool or park in areas of less demand and walk to their destination.
• Demand-based parking permits: Charging per transaction makes sense where many different people park in an area and most visits occur irregularly. If public parking becomes scarce on streets in residential or industrial areas, it can be more convenient to allow those who park regularly to purchase a permit guaranteeing their access to a street parking space in the area. As with hourly rates in commercial areas, the cost of a permit can be set at the lowest price necessary to successfully manage demand. Many permit areas offer slightly fewer permits than the number of spaces available to keep a few spaces available so that infrequent visitors or guests have an option to purchase a daily parking pass.

It is not anticipated that parking demand would exceed the 85 percent threshold anytime in the near future, and would likely only result from large scale development, but it is important that the City recognize management options are available; otherwise, concerns about availability could derail the sustainability, visual character, affordability, and efficiency of future growth and development. Providing parking involves land costs, construction costs, operation and maintenance costs, and environmental costs.5Free parking subsidizes the true cost of driving and makes solo driving more attractive. The City may wish to continue to subsidize driving through free parking where it has already been developed, to promote access and activity in places where parking occupancy rates are not high enough to justify charging; however, future public investments and subsidies should focus on creating equal access for more sustainable modes of travel.
5 Litman, 2023. Comprehensive Parking Supply, Cost and Pricing Analysis. https://www.vtpi.org/pscp.pdf Item Number: 6.

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Supportive General Plan Policies
Land Use and Community Design Element Policies
• Policy LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• Policy LU-1.6: Infill Revitalization. Encourage revitalization of underutilized and vacant infill properties within the City closest to available infrastructure and community services. • Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Item Number: 6.

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Economic Development Element Policies
• Policy ED-1.9: Cannabis Cultivation. Develop a comprehensive strategy to position the City as the premier center for cannabis cultivation and production businesses and enterprises that support/complement the developing cannabis industry in the Coachella Valley.
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements.

Open Space and Natural Resources Element Policy
• Policy OS-2.4: Air Quality Goals. Ensure that land use and transportation plans support regional air quality goals, with new development projects reducing vehicle miles traveled and vehicle trips.

Health and Wellness Element Policy
• Policy HW-1.10: Amenities that Promote Healthy Living. Encourage developments to provide access, facilities, and amenities that connect to trails, encourage walking, and/or provide for other facilities that promote healthy living.

Impact on the Downtown Study Area
Having a plan to manage public parking should there ever be high demand in the future allows Desert Hot Springs to take meaningful actions today that will welcome sustainable growth and development patterns that are not dominated by parking. This plan helps reveal the true value of parking and supports the efficient use of space, including through incentivizing shared parking. Demand-based parking management strategies align with goals for economic development, infill development, sustainable development, rent affordability, and development density, while also helping local businesses. Other cities have seen an increase in economic activity and sales tax revenue after implementing demand-based pricing. In the long-term, management also has the potential to generate revenue, which can be used to bring local business owners and residents together to develop and fund downtown beautification projects and transportation initiatives that further attract visitors to the area. This idea is further discussed in the Parking Benefit District section.

Impact on the Industrial Cannabis Study Area
Having a plan for demand-based parking management allows the City to make efficient use of the large supply of potential and existing street parking in the industrial cannabis study area. Both offering initial free public parking to incentivize development and offering paid parking permits if parking ever becomes scarce support the goal of increasing revenue from the utilization of City-owned land and resources. When vehicles are allowed to park on the street, developers have more flexible options, which may result in a greater share of off-street land being used for economically productive uses. If so many people take advantage of street parking that it becomes difficult to find a space and causes traffic issues, the City can offer permits. Permit revenue can support program administration and enforcement or alternative transportation programs supporting cannabis area employees.

Financial Implications and Staffing Requirements
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depends on the technology chosen. Ongoing investment depends on the level of enforcement necessary to obtain compliance. Operational costs for paid parking are typically covered by revenues, and a program may even generate revenue, which can fund streetscape beautification projects, cleaning, security, sustainable transportation programs, or whatever projects are prioritized by the local community. Reinvesting revenue in the district where it was generated can create a virtuous cycle, making the area more attractive and drawing in more visitors. When Old Pasadena implemented paid parking, economic activity improved and sales tax revenue in the area increased relative to other commercial centers in the City.

If this strategy ever becomes relevant for Desert Hot Springs, staff time will be required to conduct an initial parking occupancy study and develop a plan. Occupancy rates should be monitored periodically, and adjustments to time limits or pricing should be made as necessary to achieve the goals of the program. Enforcement should occur only as often as necessary to ensure parking availability is maintained.

2. Invest in New Parking Technologies
Explanation and Rationale
The Southern California Association of Governments supports regional cities in pursuing innovative approaches to planning and policy issues. If the City’s parking management becomes more complex in the future, it is well-worth exploring the technology solutions available to create a user-friendly experience and save staff time on administration and enforcement. For example, smart sensors can monitor parking utilization, which can highlight to the public where spaces are available and can provide data that helps staff update rates based on demand. In areas with paid parking, pay-by-plate technologies can facilitate automated license plate reader (ALPR) enforcement and allow staff time to be used more efficiently. The City can also encourage shared parking by partnering with and promoting one of the many mobile apps that allows private property owners to rent out their parking spaces when not in use.

Supportive General Plan Policies
Land Use and Community Design Element Policies
• Policy LU-1.8: Lot Consolidation. Encourage lot consolidation and utilize land assembly strategies and incentives to promote compatible infill developments.
• Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles. • Policy LU-2.7: Higher Residential Density Corridor. Allow higher-density and mixed uses along Palm Drive and Pierson Boulevard to encourage shopping, services, and entertainment amenities in closer proximity to established infrastructure and transit services.
• Policy LU-3.6: Commercial Intensification. Encourage the intensification of commercial uses on underutilized and vacant commercial properties within Downtown and along the Pierson Boulevard and Palm Drive corridors.
• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.

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• Policy LU-7.6: Innovative Parking Solutions. Allow mixed-use developments to utilize shared parking plans, park once and walk districts, and other innovative and flexible parking strategies. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land.
• Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-11.2: Cluster Development. Encourage proposed projects within designated conservation areas to cluster development to provide for the greatest amount of conservation while respecting surrounding established and planned uses.

Mobility and Infrastructure Element Policies
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Economic Development Element Policy
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements.

Impact on the Downtown Study Area
Parking technologies can benefit the downtown in the following ways:
• Facilitating demand-based management.
• Helping drivers see available parking locations and decide where to park. • Removing friction from the payment process.
• Providing occupancy data to inform rate adjustments.
• Increasing the ease and efficiency of enforcement.
• Creating potential for downtown business parking validation programs. • Promoting sustainable land use and helping local owners benefit economically through sharing parking.

Impact on the Industrial Cannabis Study Area
Parking technologies can benefit the industrial cannabis study area in the following ways:
• Facilitating demand-based management through plate-based permits. • Allowing occasional visitors to park on an hourly or daily basis. • Providing occupancy data to inform management decisions. • Increasing the ease and efficiency of enforcement, ensuring spaces are available and parking does not create traffic issues.
• Promoting sustainable land use and helping local owners benefit economically through sharing parking.

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Financial Implications and Staffing Requirements
The costs and benefits of each technology should be considered at the time additional parking management becomes necessary, based on community needs and input. Technologies are continually developing, and while it is worthwhile to know what options may be available, it may be many years before it makes sense for Desert Hot Springs consider investing in new parking management solutions.

Staff time will be required to explore options and conduct outreach with local business owners, community members, and City staff members to determine which technologies best meet their needs.

3. Create a Parking Benefit District
Explanation and Rationale
A parking benefit district is a public-private partnership which facilitates the comprehensive management of parking resources (on- and off-street and, ideally publicly and privately owned), giving the business community and resident stakeholders an active role in identifying parking issues, needs, and opportunities, making decisions, and allocating parking revenue for local programs or projects. This helps ensure that public spaces are managed in a way that most benefits the community, and it also helps generate buy-in and support for the parking management program, as stakeholders see how it will benefit them. When the parking program results in revenue, stakeholders may choose how the revenue is used—for initiatives like downtown street beautification projects, active transportation infrastructure, shuttles, or employee cash outs or e-bike rebates.

Parking Benefit District Example: Old Pasadena
Pasadena is a mid-sized city in Los Angeles County with a thriving business district, Old Pasadena, that now attracts many visitors for shopping and dining. Old Pasadena was one of the earliest adopters of what has come to be widely accepted as a best practice in parking management, the “parking benefit district” model. Pasadena also uses pricing to ensure convenient street parking is available for short-term visitors, limits parking supply in transit-oriented development areas, and uses transportation impact fees to fund sustainable mobility projects.

Initially, Old Pasadena had no parking management other than two-hour time limits. City staff suggested installing meters, but some business owners were concerned that charging for parking would discourage potential customers from visiting. Then, the City proposed using all parking revenue to fund public improvements within the parking meter zone and allowing advisory board members to control the use of revenue. Merchants and property owners accepted this idea. The parking meters resulted in greater availability of convenient curb parking for customers, and customers willing to pay for parking seemed to be more willing to spend more money in Old Pasadena. Retail sales and tax revenue in Old Pasadena increased significantly following the installation of parking meters in 1993, including when compared to other commercial districts in Pasadena, as shown in Figure 37.

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Figure 37: Retail sales-tax revenue in Old Pasadena before and after installing parking meters in 1993 Source: Access Magazine, Turning Small Change Into Big Changes, Kolozsvari and Shoup, 2003.

Meter revenues were used to fund street furniture, trees, tree grates, lighting fixtures, cleaning services, marketing, and security services and patrols for the area. These public improvements attracted more visitors, which resulted in higher meter revenues and created a “virtuous cycle” of continual improvements credited with revitalizing the downtown. A marketing campaign assured visitors that their parking fees would be used to benefit Old Pasadena.

Thirty years after initial implementation, the Parking Benefit District is still delivering benefits to the area. In October 2022, Pasadena’s Director of Transportation provided the Old Pasadena Parking Meter Zone Advisory Commission with a report on the parking meter fund’s revenues, expenses, and projections through the end of the year. The fund was estimated to end with a balance of approximately $1.6 million, with $900,000 designated to cover operations and meter replacement expenses, and approximately $682,000 available for appropriations. The Advisory Commission is composed of seven members—three property owners in the area, three business owners who rent property, and one “at large” member who may be either. The commissioners guide the expenditure of meter revenue and recommend meter rate adjustments.

Supportive General Plan Policies
Land Use and Community Design Element Policies
• Policy LU-1.5: Reduce Vehicular Trips and Miles Traveled. Coordinate land use patterns with the Mobility and Infrastructure Element to improve and protect air quality, reduce vehicular trips, and promote active transportation modes and transit use.
• Policy LU-1.9: Community Health through Land Use Planning. Maintain and promote the pattern and linkage of land uses citywide to promote mobility choices and healthy lifestyles.

Source: Parking Matters in Old Pasadena,
Kolozsvari and Shoup, 2018.

Old Pasadena Parking Meter
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• Policy LU-3.10: City-owned Land and Resources. Maximize revenue from the utilization of City-owned land and resources.
• Policy LU-4.2: Pedestrian-friendly Environments. Accommodate outdoor cafes and neighborhood-serving uses as a means of promoting pedestrian activity and commercial center vitality. • Policy LU-7.6: Innovative Parking Solutions. Allow mixed-use developments to utilize shared parking plans, park once and walk districts, and other innovative and flexible parking strategies. • Policy LU-8.5: Prioritize Industrial Development. Prioritize business attraction and retention of employment and revenue-generating uses on industrial land.
• Policy LU-11.1: Efficient Land Use Patterns. Encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl. • Policy LU-12.10: Visual Character. Encourage residential development that enhances the visual character, quality, and uniqueness of neighborhoods and districts.

Mobility and Infrastructure Element Policies
• Policy MI-1.3: Multi-Modal. Aim to develop a multimodal and/or multipurpose approach when implementing infrastructure outlined in the Mobility Plan. • Policy MI-2.6: Rights-of-Ways. Use available public rights-of-ways to provide wider sidewalks, bicycle lanes, trail facilities, and transit amenities.
• Policy MI-3.1: Safety Prioritization. Design, plan, and operate streets to prioritize the safety of the most vulnerable roadway user.
• Policy MI-3.3: Adaptive Street Strategies. Repurpose underused roadway space for safety, mobility, and public space improvements using low-cost, temporary solutions. • Policy MI-3.4: Test Street Improvement. Install temporary, low-cost materials to test street improvement ideas prior to incorporating permanent designs for successful projects. • Policy MI-5.1: Reduce Vehicle Miles Traveled. Implement development and transportation improvements that help reduce greenhouse gas emissions by reducing per capita Vehicle Miles Traveled (VMT), reducing impacts on the City’s transportation network, and maintaining the desired service levels for all modes of transportation.
• Policy MI-5.2: Sustainable Transportation and Land Use Strategies. Implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled. Consider using vehicle daily trips as the benchmark demand for determining potential levels of parking and vehicular congestion. • Policy MI-9.4: Special Assessments. Support special assessment districts for street and traffic improvements.
• Policy MI-10.2: Expand Funding. Prioritize funding to improve the built environment for people who walk, bike, take transit, and for other vulnerable roadway users, where fiscally prudent. • Policy MI-11.7: Rights-of-Way. Seek opportunities to integrate mobility and infrastructure planning, particularly to efficiently use rights-of-way.

Economic Development Element Policy
• Policy ED-2.2: Economic Development. Promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements.

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Open Space and Natural Resources Element Policy
• Policy OS-2.4: Air Quality Goals. Ensure that land use and transportation plans support regional air quality goals, with new development projects reducing vehicle miles traveled and vehicle trips.

Health and Wellness Element Policy
• Policy HW-1.10: Amenities that Promote Healthy Living. Encourage developments to provide access, facilities, and amenities that connect to trails, encourage walking, and/or provide for other facilities that promote healthy living.

Impact on the Downtown Study Area
If parking demand downtown ever justifies and leads to considering paid parking as a parking management tool, a parking benefit district should be implemented at the same time. This can allow downtown business and property owners to participate in a shared vision for the future of downtown Desert Hot Springs by informing decision making and allocating any parking revenues generated in the area for local improvements. Other parking benefit districts have chosen to use their paid parking programs to fund “clean and safe” programs, downtown ambassadors, free downtown Wi-Fi, landscaping and street beautification, public parking structures, cleaning and security services, and employee transportation wallet programs. Parking benefit districts help generate political buy-in for paid parking programs and result in more informed management of public and shared parking. Business owners often have important insights about the transportation needs of their employees and visitors and can offer valuable suggestions for localized parking management solutions.

Impact on the Industrial Cannabis Study Area
If parking demand in the industrial cannabis study area increases enough to justify permitted parking, a parking benefit district could be implemented at the same time to help manage the parking supply efficiently and allocate revenue. In collaboration with business owners and employees, the City can determine the optimal monthly permit cost that would sufficiently reduce street parking demand while still ensuring spaces are well-utilized. Stakeholders would include anyone who lives or works in the area, including those who drive alone, carpool, or use alternative transportation. Based on their input, revenue could be used to fund employee transportation programs (such as carpool incentives, park and ride shuttles, or e-bike or scooter rebates), active transportation infrastructure, or street safety improvements.

Financial Implications and Staffing Requirements
If Desert Hot Springs experiences high parking demand in the future, parking benefit districts can help the City obtain the stakeholder buy-in necessary to implement paid parking programs. These programs can manage parking demand efficiently while also generating revenue to fund local projects and programs. Well-managed public parking and alternative transportation initiatives can also increase property values and make an area more desirable to developers or potential business owners.

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Staff time would be required for the initial establishment of any parking benefit districts. After the initial process, staffing requirements from the City would be minimal and would mainly consist of holding monthly or quarterly meetings with parking benefit district stakeholders.

4. Prepare to Manage Parking with Dedicated City or Contract Staff As Desert Hot Springs grows, and both the Downtown and Industrial Cannabis District grow larger, parking planning and enforcement capabilities for on- and potentially off-street parking will be needed. Ultimately, Walker recommends that additional staff who are dedicated to ensuring parking functionality and regulation compliance monitor parking conditions in the City, enforce parking restrictions, and interface with private parking owners to work on a collaborative approach to providing parking.

Appendices
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Appendix A: Exploratory Calculations and
Discussion of Future Conditions
Introduction
The future of parking and access needs in Desert Hot Springs depends on the ability of existing parking infrastructure to be used efficiently to absorb demand, and also on the community’s desire and ability to leverage interventions, transportation demand management initiatives, and infrastructure investments to support travel by modes other than driving alone.

This chapter's intent is to assess how future development and population growth trends in the City of Desert Hot Springs will likely impact street parking demand in (1) the downtown area and (2) the industrial cannabis district, and to provide insights into the potential benefits of public parking management in the long-term.

Commercial and industrial development, new housing, population shifts, transportation service and infrastructure decisions, and many other factors will impact parking demands both in quantity and in how they are distributed throughout the city. Parking in the study areas may be affected by population growth within the City boundaries and by economic growth and development that brings additional employees or visitors from other regions to the area. To project future public parking supply and demand for the City, the analysis in this chapter considers a planning horizon that extends to 2045, the same horizon used in population growth projections developed by the Southern California Association of Governments (SCAG). The analysis includes the following scenarios:
• Downtown study area; base growth
• Downtown study area; aggressive growth
• Industrial cannabis study area; base growth
• Industrial cannabis study area; aggressive growth
The base growth scenario for the downtown study area considers population growth projections, zoning and development potential, and the City’s strategic goals for future commercial build out. The base scenario is then adjusted to explore the potential impact of more aggressive growth and economic development. For the industrial cannabis study area, both scenarios combine observations of parking demand made at existing facilities with industrial build out possibilities based on projections provided by the City.

The chapter concludes by interpreting the findings of the future conditions analyses and previewing the potential impact of developing more proactive policies and practices. The projections provide insight into what could happen if future travel and development patterns reflect the status quo, but it is also possible for the City to help shape travel behavior and parking provision to better support efficient land use and multimodal transportation.

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Future Downtown Parking Demand
An understanding of the factors of existing downtown parking supply and demand is necessary to be able to model how a variety of different assumptions for future conditions—inputs related to economic development, population growth, and parking management practices—might affect the demand for parking in the downtown study area.

This section uses data, develops assumptions, and relies on the Shared Parking model to construct base growth and aggressive growth scenario projections of parking demand.

The major factors that contribute to downtown parking demand are types of land uses, square footage or similar metrics for those land uses, and how people access downtown (mode split). The number of residential units in the area, visitors, frequency of trips and peak demand, resident vehicle ownership also play a role. These factors are explored in more depth in the subsections below.

To gather relevant information for the downtown study area, Walker consulted Replica data, a proprietary data set that provides data related to mobility, land use, people, and economic activity from location-based mobile apps, connected vehicles, and demographic data from public and private sources. Replica tracks origin and destination behaviors by land use and travel mode.

Residential Land Use - Existing
A sizeable amount of the downtown study area contains residential buildings. Residential land uses can sometimes contribute to street parking demand, but single family homes and multi-family developments often include ample off-street parking. In Desert Hot Springs, approximately 197,000 square feet, or 36 percent of the land in the downtown study area is currently used for single-family residences, according to Replica data. Approximately 95,000 square feet, or 18 percent, is used for multi-family residences. There are approximately 84 single-family homes and 161 multi-family dwelling units in the study area.

Within the study area, approximately 5 percent of households have no vehicles available, 33 percent have one vehicle, 30 percent have two vehicles, and 32 percent have three or more vehicles. Table 1 below uses this information and an assumption of an average of 3.5 vehicles per 3+ vehicle household to calculate the approximate number of resident-owned vehicles in the study area, for a total of 502 vehicles.

Table 1: Resident-owned vehicles in the Downtown Study Area Number of
Dwelling Units
0 Vehicle
Households
1 Vehicle
Households
2 Vehicle
Households
3+ Vehicle
Households
Total
Vehicles
Single-Family 84 4 28 25 27 172
Multi-Family 161 8 53 48 52 330
Source: Data – Replica, 2023. Table and calculations - Walker Consultants, 2023.

The minimum parking requirements for multi-family dwelling units are 1.5 covered spaces for studio and 1- bedroom apartments, 2 covered spaces for 2-bedroom apartments, and 2.5 covered spaces for apartments with three or more bedrooms. Buildings are also required to provide one uncovered guest space for every five units.

Assuming an average of 2 spaces per multi-family unit would result in 322 covered spaces and 32 uncovered guest spaces, or a total of 354 spaces associated with multi-family housing in the downtown area. Single-family homes Item Number: 6.

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are required to have 2 spaces in an enclosed garage, which usually results in at least two additional spaces on the driveway. Assuming four spaces per home would result in approximately 336 off-street spaces associated with single-family homes. Based on these assumptions, the total estimated supply of residential off-street parking is approximately 690 spaces, which significantly exceeds the estimate of resident-owned vehicles and suggests residential demand is not currently a significant factor contributing to demand for street parking downtown.

Residential Land Use - Future
According to SCAG’s Connect SoCal Demographics and Growth Forecast, the population of Desert Hot Springs is projected to increase from 29,000 in 2016 to 61,000 in 2045, or by approximately 1,100 residents per year. The number of households is projected to increase from 9,300 to 24,700, or by approximately 530 per year.

The 2021-2029 Housing Element included a Regional Housing Needs Allocation of 3,693 new housing units by 2029.

The site analysis did not indicate or plan for any significant housing developments in the downtown study area, although the zoning code does permit residential development in the Mixed-Use Neighborhood zones on the south side of 1st Street and the north side of Acoma Avenue (see the purple areas in Figure 1). Because many of these parcels currently contain single family homes, some parcels may be redeveloped now that zoning allows for increased density—up to 15 dwelling units per acre and building heights of up to three stories.

Figure 1: Downtown Study Area Zoning Map
Source: City of Desert Hot Springs, 2023.

There are not currently plans or identified sites for new housing within the downtown study area, but it is possible some residential development will occur due to the increase in allowable density. However, most new housing developments tend to provide ample off-street parking regardless of parking requirements. Given this fact, and the estimated surplus of residential parking that currently exists, this analysis assumes that any new residential buildings that may be constructed downtown are unlikely to significantly affect parking demand in the study area. 1 2 3 4
5 6 7 8 9 10
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Commercial Land Use - Existing
The land along Pierson Boulevard and Palm Drive is zoned either General Commercial or Downtown Commercial (see the red areas of Figure 1). Currently, there are a variety of establishments in this area, including restaurants, retail, professional services, funeral parlors, offices, religious institutions, and City Hall. There are also several vacant parcels. Parking lots comprise a sizeable share of land in the downtown. There are approximately 800 on-street spaces and 999 spaces in parking lots, not including driveway and garage spaces associated with single family homes or parking lots with fewer than five spaces.

Table 2 below displays Replica summary data with estimates of existing building uses and square footage within the downtown study area:

Table 2: Current Building Square Footage by Use in the Downtown Study Area Building Use Area (square feet) % of Total
Single-Family Residential 197,000 36%
Retail 103,000 19%
Multi-Family Residential 95,000 18%
Office 84,000 15%
Non-Retail Attraction 42,700 8%
Other Categories 20,900 4%
Total 542,600 100%
Source: Data – Replica, 2023. Table and calculations - Walker Consultants, 2023.

There are currently 250,600 square feet, or slightly less than half of the downtown building area, occupied by nonresidential buildings. However, some of these buildings may be vacant. With the current build-out, the “typical day” peak parking demand was observed at 9:00 am on a Thursday. There were 325 parked vehicles observed in the study area at this time, a parking utilization rate of 18 percent.

Commercial Land Use – Future
The map in Figure 1 shows that slightly more than half of the land in the downtown study area is zoned commercial.

The Mixed-Use Neighborhood zoning also allows commercial development, and it is assumed that commercial uses will represent a greater share of downtown study area in the future.

There are approximately 1,557,000 square feet in the study area zoned as either General Commercial or Downtown Commercial (see Table 3). Both commercial zoning districts have a maximum floor area ratio (FAR) of 0.30, which means the combined eventual build out in these zones could potentially include approximately 467,000 square feet of commercial development. In addition, there are approximately 1,117,000 square feet zoned as Mixed-Use Neighborhood, which allows a maximum floor area ratio of 1.00 for nonresidential uses, so these areas could potentially accommodate an additional 1,117,000 square feet of commercial development in the downtown study area, for a total maximum potential build out of approximately 1,584,000 square feet.

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Table 3: Approximate Square Footage by Zoning in the Downtown Study Area Block Zoning Square Feet Zoning Square Feet
1 C-G 194000 MU-N 206000
2 C-D 231000 MU-N 150000
3 C-D 186000 MU-N 0
4 C-D 100000 MU-N 91000
5 C-G 91000 MU-N 87000
6 C-G 102000 MU-N 95000
7 C-G 210000 MU-N 179000
8 C-D 223000 MU-N 154000
9 C-D 121,000 MU-N 67000
10 C-D 99,000 MU-N 88000
Total C-G and C-D: 1,557,000 MU-N: 1,117,000
FAR-Adjusted
Total
FAR of

0.30 467,000 FAR of

1.00 1,117,000
Source: Data – Replica, 2023. Table and calculations - Walker Consultants, 2023.

Future Commercial Development Assumptions
The potential build-out of 1,584,000 square feet would represent a commercial density increase of over 600 percent compared with the current non-residential building footprint of just over 250,000 square feet. However, this is unrealistic, as it would involve the redevelopment of almost all parcels, including all residential parcels, and would also mean each redevelopment included the maximum commercial development footprint allowed by code.

Furthermore, although the existing commercial building footprint is 250,000 square feet, not all buildings are currently occupied or used in ways aligned with the City’s long-term strategy for the area. Some growth may involve construction that increases the total commercial development footprint, while other growth may simply entail the occupancy of vacant buildings or adaptive reuse that supports the City’s vision for downtown.

Based on these considerations, this analysis makes the following assumptions for the future footprint of commercial development:
• Base Scenario: 312,500 square feet by 2045 (25% growth from existing non-residential footprint) • Aggressive Scenario: 375,000 square feet by 2045 (50% growth from existing non-residential footprint) In the future, the City envisions an economic growth development strategy for the downtown area that prioritizes food and beverage establishments, retail, offices, and health and wellness businesses. The City imagines the following mix of commercial land uses downtown:
• 50% Food and Beverage
o 25% Bar - Restaurant
o 25% Family Restaurant
• 25% Retail, including retail with a health and wellness focus • 25% Office, including offices related to health and wellness Item Number: 6.

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As new commercial developments arise, and existing land uses change and intensify, parking utilization and demand patterns are likely to shift as well.

Shared Parking Model
To estimate the parking demand if the City’s economic development strategy comes to fruition, Walker consulted Shared Parking, a model created in partnership by Walker, the Urban Land Institute (ULI) and the International Council of Shopping Centers (ICSC). The model is designed to project the parking generation of various types of development from 6:00 a.m. to 12:00 midnight on a typical weekday and a weekend for every month of the year.

The methodology was originally developed in the 1980s and has been a widely accepted industry standard for rightsizing parking facilities over the past 30+ years. However, it is noted that the model assumes suburban contexts with a driving ratio, or share of people driving to the site, at or near 100 percent. By default, it does not account for potential interventions to encourage people to arrive to a downtown via non-driving modes. The model includes the following:

1. Base Ratios: Shared Parking starts with inputs for the type and quantity of land use to be analyzed. Each land use has a specific metric considered by the parking industry to be a reliable measure of parking demand for that use. For example, for retail, food and beverage, and office uses, that metric is square footage (gross leasable area or GLA). The model provides a base parking demand ratio for each land use.

2. Non-Captive Adjustments: A shared parking analysis recognizes that people often visit two or more establishments within an area, without increasing the overall parking demand. The noncaptive ratio is an estimate of the percentage of parkers at a land use who are not already counted as being parked at another of the land uses. The term "captive" has been borrowed from market researchers to describe people who are already present in the immediate vicinity and are likely patrons of a second use. For example, it assumes that 2 percent of professional employees dine within the area where they work.

3. Presence Factors: Adjustments are made to the shared parking model to account for parking demand variability by hour of day and month of year. These time-based adjustments are referred to as a “presence” adjustment. Presence is expressed as a percentage of the peak hour demand on a typical day for both time of day and month of the year. The Third Edition of Shared Parking provides these presence factors for all land uses. Walker used the presence factors recommended in Shared Parking Third Edition.

4. Shared Parking Reductions: The model uses the adjusted hourly and monthly parking demand estimates for each use to determine the total parking supply needed to serve the area during peak hours if parking is shared across uses. Some land uses generate more parking demand during the mornings or afternoons, while others may be busier during the evenings. Similarly, some land uses typically generate more parking demand during weekdays, while others are busier on weekends. Planning for shared parking can help cities and businesses use existing parking infrastructure efficiently and avoid unnecessary public or private investments, freeing up financial resources and improving the walkability and aesthetics of a downtown.

For a large study area, shared parking works best if complementary uses that generate parking demand at different times of day or days of the week are located in proximity to one another.

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Base and Aggressive Growth Scenario Projections
Inputs and Base Parking Demand Ratios
The base growth scenario assumes that by 2045, the City will have 312,500 square feet of active commercial development aligned with its intended mix of land uses. The aggressive growth scenario uses the same split of land uses but assumes 375,000 square feet of development. Table 4 shows the weekday and weekend parking demand ratios for each land use and calculates the total number of parking spaces that represent the maximum parking demand for the scenario, if all developments are successful and no actions are taken to support alternatives to solo driving. The base ratios are not yet adjusted for non-captive adjustments, presence factors, or shared parking reductions. As the table shows, bars and restaurants are typically associated with especially high parking demand per thousand square feet of development.

Table 4: Shared Parking Model Inputs and Base Parking Demand Ratios Land Use
Share of
Development
Base Scenario
Square Footage
Aggressive Scenario
Square Footage
Weekday Base
Demand Ratio
Weekend Base
Demand Ratio
Bar – Restaurant
25% 78,125 93,750 15.25 spaces
per 1000 sf

17.50 spaces
per 1000 sf
Family
Restaurant
25% 78,125 93,750 15.25 spaces
per 1000 sf

15.00 spaces
per 1000 sf
Retail
25% 78,125 93,750 2.90 spaces
per 1000 sf

3.20 spaces
per 1000 sf
Office
25% 78,125 93,750 3.50 spaces
per 1000 sf

0.35 spaces
per 1000 sf
Total 100% 312,500 375,000
Source: Parking Ratios – Shared Parking Model. Table - Walker Consultants, 2023.

Adjusted Parking Demand Estimates
The Shared Parking model calculations included adjustments for non-captive ratios, presence factors, and shared parking reductions to provide the weekday and weekend peak parking demand estimates shown in Table 5. Given the mix of land uses, the model suggested peak demand would occur in the month of December, around 8:00 pm on weekday evenings. The model projected a peak demand of 2,308 spaces for the base scenario, which includes a 29 percent reduction due to shared parking. The parking demand for the aggressive growth scenario corresponded with the assumed increase in the commercial development footprint, for an estimated peak parking demand of 2,766 spaces on a weekday in December at 8:00 pm.

Table 5: Base Growth Scenario – Adjusted Downtown Parking Demand Estimates Weekday Peak Weekend Peak
Shared Parking Reduction 29% 31%
Base Scenario Parking Demand 2,308 spaces 2,193 spaces
Aggressive Scenario Parking Demand 2,766 spaces 2,630 spaces Source: Calculations - Shared Parking Model. Table - Walker Consultants, 2023.

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Considerations and Interpretation
These downtown parking demand projections are merely exploratory calculations, and it is important to consider the following when planning for the future of parking in downtown Desert Hot Springs:
• Parking demand ratios are not set in stone. The City also has opportunities to proactively shape and manage parking demand through policy and planning initiatives. If the City prioritizes walkability and sustainable transportation, actual parking demand could be significantly less than what was indicated in the projection, even if development were to occur according to the projection’s assumptions. • The time horizon for achieving the City’s desired mix of land uses for the downtown area may take longer than this analysis assumes, given that new land use regulations do not apply retroactively. • If the City is successful in achieving its vision for downtown, the footprint of commercial buildings will expand, and the mix of commercial land uses will approach the City’s goals for the area, but this growth will still happen gradually.
o In December 2022, the peak demand observed downtown was 324 vehicles, or 18 percent of the current supply of 1,799 spaces.
o The base scenario’s estimated demand for December 2045 is 2,308 parking spaces. o If growth and development over the coming years were to occur linearly, it would take over sixteen years before parking demand in the downtown began to exceed capacity, even if new commercial developments provided no additional parking.

It is also worth considering the future parking demand estimates in the context of existing parking requirements.

Under the current development code Section 17.48.040, both projected growth scenarios would result in a large supply of unnecessary parking. Table 6 shows how, if minimum parking requirements were maintained, the base growth scenario would involve a parking supply increase to 2,786 spaces, and the aggressive growth scenario would involve an increase to 3,344 spaces. Excess surface parking supply degrades walkability and the natural environment, and parking garages cost tens of thousands of dollars per space to construct and maintain, so these projections serve as a warning that underscores the importance of developing policy to support shared parking.

Table 6: Existing Parking Requirements Applied to Future Downtown Development Scenarios Land Use
Base Scenario
Square Footage
Aggressive
Scenario
Square Footage
Existing Parking
Requirement
Base Scenario
Supply
Aggressive
Scenario Supply
Bar –
Restaurant
78,125 93,750 1 per 75 sf 1,042 1,250
Family
Restaurant
78,125 93,750 1 per 75 sf 1,042 1,250
Retail 78,125 93,750 1 per 250 sf 313 375
Office 78,125 93,750 1 per 200 sf 390 469
Total 312,500 375,000 2,786 3,344
Source: Walker Consultants, 2023.

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One final consideration is the relationship between parking policy and new development. Minimum parking requirements often constrain new development, and they could potentially prevent the growth scenarios from occurring at all. On the other hand, policy that supports more efficient use of parking resources and minimizes the parking footprint can help make the downtown a walkable destination that attracts visitors and new businesses.

Ultimately, the growth scenarios reveal the potential for parking demand to increase gradually but significantly as new commercial developments locate downtown, and land uses come to align with the City’s strategic vision for the area. Proactively developing parking management strategies can help Desert Hot Springs ensure that policies and plans support the City’s overarching vision and goals for the future.

Future Industrial Cannabis Area Parking Demand
Methodology
Industrial cannabis is a relatively new land use, and the parking demand associated with this kind of development has not been studied as closely as the parking demand for other uses, such as offices, retail, and food and beverage establishments. Applying the broader “light industrial” category to industrial cannabis may result in inaccurate demand projections. Even if there were well-established parking ratios for industrial cannabis, this broad classification can include a variety of specific activities, each of which may have very different trip generation rates.

For example, this category could include growing, trimming, testing, processing, packaging, and distribution. A facility where cannabis is grown as well as processed may occupy a greater footprint than one where it was only processed, but the increased square footage would not necessarily correspond with a proportionate increase in vehicle travel.

Given the uncertainties related to the parking demand for industrial cannabis land uses, this analysis considers actual parking demand observations from a sample of nine facilities and the nearby street parking within the industrial cannabis study area. Demand counts were conducted at these facilities during peak demand hours (between 10am-2pm, capturing the overlap of multiple shifts) on Thursday, December 1st. In addition to counting the vehicles in parking lots, Walker observed 68 vehicles parked on nearby streets, including 56 cars along Two Bunch Palms Trail and 12 cars on San Jacinto Lane. To ensure these vehicles are included in the calculations, the 56 vehicles on Two Bunch Palms Trail are added to the off-street parking demand for the facility at 65000 Little Morongo Road, and the 12 vehicles on San Jacinto Lane are added to the off-street parking demand facilities at 65242 San Jacinto Lane and 65282 San Jacinto Lane, which have a reciprocal parking agreement. These totals are displayed in the Parking Occupancy Observation column in Table 7 below.

The City provided the square footage for each of the nine facilities, and Walker calculated a parking demand ratio for each individual facility, as well as a combined average. Table 7 displays the parking demand ratio for each facility, the total square footage, the total number of vehicles observed, and the composite parking demand ratio from all nine facilities. The composite ratio was .59 vehicles per thousand square feet of development; however, this also includes the Industrial Park, which includes cannabis-related businesses but could include other businesses as well.

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Table 7: Observed Parking Demand Ratios
Facility Address Associated Business Square Footage Parking Occupancy Observation
Vehicles per 1000
Square Feet
13300 Little
Morongo Road
Desert Hot Springs
Green Horizons,
Inc. (Med Men)
45,000 10 0.22
13310 Little
Morongo Road
NUMACO, LLC 180,900 116 0.64
15850 Little
Morongo Road
Industrial Park 309,425 144 0.47
65000 Two Bunch
Palms Trail
Med for America,
Inc. 381,053 236 0.62
65283 Two Bunch
Palms Trail
TBP Indoor
Facilities - T2 30,550 8 0.26
65321 Two Bunch
Palms Trail
Canndescent, MBC 9,600 18 1.88
65441 Two Bunch
Palms Trail
Med for America,
Inc.
5,038 25 4.96
65242 San Jacinto
Lane and 65282
San Jacinto Lane
San Jac Facilities
LLC and A CUT

ABOVE, LLC
40,000 34 0.85
Total: 1,001,566 591 .59
Source: Walker Consultants, 2023.

Development Potential
Zoning in the industrial cannabis study area is primarily Light-Industrial, with an Industrial Cannabis Overlay (see Figure 2). A large portion of the land zoned as Light-Industrial falls within the study area boundaries. According to the City’s municipal code subsection 17.16.030, Light-Industrial zoning allows a maximum of 75 percent lot coverage, and a maximum structure height of five stories. In section 17.180, the municipal code specifically allows for marijuana cultivation, manufacturing, testing, distribution, and non-storefront retail facilities within the Industrial Cannabis Overlay.

The study area includes a large amount of undeveloped land and offers significant potential for cannabis-related growth and development. There are currently approximately 575,000 square feet of industrial cannabis developments throughout the Industrial Cannabis Overlay area, and the City anticipates this will grow by approximately 1,425,000 square feet, to a total of approximately 2,000,000 square feet, as the area is built out over the next 10 years. There is enough land within the study area boundaries to accommodate this amount of new development, but it is more likely new industrial cannabis developments will be more evenly spread out throughout the overlay area. This analysis explores base and aggressive scenarios with the following assumptions:
• Base growth scenario: 500,000 square feet of new development within the study area boundaries • Aggressive growth scenario: 750,000 square feet of new development within the study area boundaries

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Figure 2: Industrial Cannabis Study Area Zoning Map
Source: Walker Consultants, 2023.

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If the cannabis-related activities of new developments parallel those at existing developments, it could be assumed that the average parking demand ratio calculated in Table 7 would also be a relevant baseline for the new developments. Applying this ratio to the projected development assumptions and adding existing demand observed results in the following peak parking demand projections:
• Base growth scenario: 886 vehicles (295 new demand + 591 existing demand) • Aggressive growth scenario: 1,034 vehicles (443 new demand + 591 existing demand) Considerations and Interpretation
The base and aggressive growth scenario parking demands projected for the industrial cannabis area are only exploratory calculations—a glimpse at what could happen if growth patterns continue according to the status quo and the City takes no action to improve parking efficiency and reduce the footprint of surface parking lots. However, status quo development patterns with large areas devoted to private parking facilities may be inconsistent with many of the City’s goals for the future, including:
• To encourage a land use pattern that preserves the City’s desert environment, limits impact to natural habitat areas, and minimizes sprawl.
• To promote economic development through focused land use planning, flexible development standards, and targeted circulation and infrastructure improvements. • To implement sustainable transportation and land use strategies that can effectively reduce vehicle miles traveled.

The vacant land in the Industrial Cannabis Overlay is highly important for the City’s economic development strategy.

As a still-developing City, Desert Hot Springs has the unique opportunity to avoid some of the misguided policies which have led other cities to economically inefficient and sprawling land use. The next chapter will present an analysis of strategies that could help shape parking demand and travel behavior to better align with the City’s numerous goals for economic vitality, environmental sustainability, and community health and wellness.

Conclusion
This analysis has shown the potential increase in parking demand—both in the downtown and in the industrial cannabis study area—that may occur as Desert Hot Springs grows and develops. Growth will result in more trips and economic activity for the City, as residents and visitors travel to and from home and work, shopping, and dining opportunities throughout the City. The assumptions used in this analysis show that peak parking demand could potentially increase to between 2,308 and 2,766 vehicles in the downtown, and between 886 and 1,034 vehicles in the Industrial Cannabis study area.

Achieving or even exceeding growth projections will involve ensuring that these places are attractive to visitors, business owners, and developers. If new development proceeds without proactive parking strategies in place, the City risks losing an unnecessary portion of its most valuable real estate to surface parking spaces that sit empty much of the time. With thoughtful planning, however, Desert Hot Springs will be able to accommodate vehicle travel while also advancing toward a future that supports walkability, promotes economic vitality, and where active transportation and shared mobility are widely seen as attractive and viable travel options.

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Appendix B: Complete Business Licensee
Survey Results
Question 1: Please describe your role in Desert Hot Springs (check all that apply) The respondent who selected “Other” noted that they own a consulting business that operates out of their home. 0 1
1 3
3 9
0 1 2 3 4 5 6 7 8 9 10
I own property in the Cannabis
Corridor
I own or manage a business in the
Cannabis Corridor
Other
I own property in the Downtown
District
I own/manage a business elsewhere
in Desert Hot Springs
I own or manage a business in the
Downtown District
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Question 2: What type of business do you work for/own?
Question 3: Approximately how many employees do you have?

1 1
3 5
5 0 1 2 3 4 5 6
Hospitality (hotel, spa, tourism)
Medical
Cannabis retail
Construction/contracting
Public agency
Cannabis cultivation/manufacturing
Logistics/shipping
Commercial retail
Services (salon/barber, fitness, day
care, other professional service
Food/beverage
7 2
1 0 1 2 3 4 5 6 7 8
0-50
50-100
100-150
150-200
200-250
250-300
300-350
350-400
400-450
450-500
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Question 4: Where do most of your employees live?
Question 5: How would you describe the parking demand at your business or property? 2 2
9 0 1 2 3 4 5 6 7 8 9 10
Most commute from outside the city.

It's about a 50/50 split.

Most live in Desert Hot Springs
1 5
6 0 1 2 3 4 5 6 7
We do not have enough parking to
accommodate our growth plans.

There is enough parking nearby, but
employees/staff may have issues
accessing it.

We have more than enough; at least
some parking is empty much of the time.

We do not currently have enough
parking on site.

It is adequate for our current and future
needs.

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Question 6: Do you have any of the following situations that impact parking demand at your business? Policy Adjustments
In addition to the general questions about existing conditions at businesses, the survey also contained several questions about potential policy or infrastructure changes that could help address parking and transportation needs for employees. Business-owning respondents were asked to rank each initiative from “not helpful” to “very helpful.” The options and the responses to them are illustrated in the charts that follow.

Option 1
1 1
2 4
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
High numbers of employees coming and
going throughout the day
Other cannabis-related activity
Food pickup/delivery
Employees operating on shift schedules
5 4
2 0 1 2 3 4 5 6
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
More flexible parking standards that allow
businesses to share parking or provide less
parking.

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Option 2
Option 3
Option 4
3 1
6 1
0 1 2 3 4 5 6 7
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Rideshare matching initiatives or incentives
that encourage employee carpooling or
vanpooling
1 1
6 3
0 1 2 3 4 5 6 7
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Upgraded transit service (more frequent
service, expanded service hours or days)
1 2
4 3
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Adjustments to SunRide, SunTransit’s ondemand microtransit service such as expanding its service area
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Option 5
Option 6
Option 7
3 4
3 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Shuttles between my business and other areas
of the city
3 3
4 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Improved bike lanes that help local residents
commute to work on bicycles/scooters
1 2
2 5
0 1 2 3 4 5 6
Not helpful
Unsure/neutral
Somewhat helpful
Very helpful
Incentives to promote sustainable
transportation choices (such as rebates for ebike purchases) Item Number: 6.

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The survey also included an open-ended question to invite additional input. The responses are listed in the bullet points below.
“Do you have any ideas for parking or transportation policies or programs that would help your business or attract new businesses to the area?”
• “The problem I see with this concept is. You are relying on groups of entry level cannabis employees to feed your downtown business and shops. Being a business owner I have seen these groups of people smoking weed, causing trouble in groups and questioning having them around. Please take in to consideration I don’t see how entry level cannabis employees would be the main focus to helping the downtown business. In the past I have personally seen groups of entry level cannabis employees come together and create more harm than good. The entry level employee is a male under 30, that doesn’t have a lot of money and smokes a lot of weed. Not sure that is clientele businesses downtown are wanting to be as the main focus.”
• “Center median parking”
• “Sidewalks and adequate street lighting. Slow down the traffic through the Palm/Pierson corridor to accommodate street parking. Customers don’t feel safe parking their cars on Palm due to high rates of speed and narrow street. There are no visible No Left/u-turn signs on Palm at Acoma going south and First going North causing traffic accidents and congestion.” Item Number: 6.

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Appendix C: Complete Community Survey
Results
Multiple Choice Questions
Question 1: Please describe your relationship to Desert Hot Springs. (Check all that apply)

Respondents who selected “other” provided the following details:
• “I play in Desert Hot Springs”
• “I own a business in the corner of Palm Dr and Acoma Ave” • “I am a bookkeeper for a business in Desert Hot Springs.” • “I work, live and own property in desert hot springs”

Question 2: What form of transportation do you use for most trips?

3 3
20 38
0 5 10 15 20 25 30 35 40
Other (please specify)
I attend school in Desert Hot Springs
I work in Desert Hot Springs
I live in Desert Hot Springs
1 4
38 0 5 10 15 20 25 30 35 40
Ride share (Lyft/Uber)
Bicycle / scooter
Walking
Public transit
Someone else drives me
Drive myself
Item Number: 6.

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Question 3: When you are not using your primary form of transportation, how do you travel? (Check all that apply)

Question 4: E-bikes and e-scooters (bicycles/scooters that are partially powered by a battery) are a popular new option to get around. How would you rate your familiarity with e-bikes? (Check all that apply)

1 4
5 10
21 24
0 5 10 15 20 25 30
Bicycle / scooter
Ride share (Lyft/Uber)
Public transit
Walking
Drive myself
Someone else drives me
2 5
7 10
19 0 2 4 6 8 10 12 14 16 18 20
I own an e-bike/scooter and have used it to
replace care trips
I own an e-bike/scooter and ride it for fun
I am unfamiliar with e-bikes/scooters
I am interested in learning more about ebikes/scooters, potentially through a test ride I have ridden a friend/family members' ebike/scooter
I have heard of e-bike/scooters but don't know
much about them
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Question 5: E-bikes/scooters have potential to help people replace car trips with a more sustainable option. If Desert Hot Springs had safer bike infrastructure and secure parking, how likely would you be to switch to an ebike/scooter for some of your trips?

Question 6: Finding parking in Desert Hot Springs is generally easy.

3 5
1 8
15 Highly likely
Somewhat likely
Neutral
Somewhat unlikely
Highly unlikely
Number of Responses
Rating
4 5
8 8
7 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Question 7: I generally feel safe walking to/from my parked car.

Question 8: I would be willing to park in a central location (such as a shared parking lot) if it meant I could walk to/from multiple destinations.

10 7
5 5
3 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
7 4
6 6
8 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Question 9: Where there is excess parking, I would support re-purposing it for some other use such as parks, event spaces, outdoor dining, or bike and pedestrian infrastructure.

Question 10: It makes sense for parking facilities to shared among multiple uses if they can be.

0 1
4 4
23 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
0 1
10 10
17 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
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Question 11: The City's parking management plan should support environmental goals (such as habitat protection and reducing pollution).

Geospatial Questions
The survey contained several questions designed to gather feedback that has a geospatial element. Respondents were asked to “pin” locations on the map where they identified issues and where they would like to see specific improvements to address those issues. Screenshots of each layer of feedback are provided below.

The blue and green shaded areas in each screenshot illustrate the study areas of the downtown study area and industrial cannabis study area, respectively, but respondents could provide input throughout the City. The extent of each map shown was selected to enhance visibility of the data; areas of the city that did not receive input in a selected category are not shown. The underlying data gathered was also captured in a format that can be used by future planning efforts to map and evaluate the information received. 1 0
5 5
15 Agree
Somewhat agree
Neutral
Somewhat disagree
Disagree
Number of Responses
Rating
Item Number: 6.

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Respondent Approximate Home Locations Page 835 of 987 Item Number: 6.

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Respondent Home Locations (Wide View)
Three respondents also live outside of Desert Hot Springs in Morongo Valley, Palm Desert, and Redlands.

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Respondent “Other Important Locations”
Other locations that were important to survey respondents included the commercial districts of Palm Springs and locations along State Route 62 west of Desert Hot Springs.

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Issues Identified
Issue Identified: Lack of Parking – Downtown
Respondents found that there was a lack of parking in the downtown area primarily near some commercial businesses, with several pins placed near the intersection of Palm Drive and Pierson Boulevard.

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Issue Identified: Lack of Parking – Industrial Cannabis Study Area Respondents identified three locations in the Industrial Cannabis Study Area where there is a lack of parking, located at the DreamFields and Canndescent facilities.

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Issue Identified: Unclear Where to Park
Respondents found that it was unclear where to park at business located near Palm Drive and Pierson Boulevard (where businesses have small parking lots that may be accessible from behind the business) and on the western end of the study area.

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Issue Identified: Unsafe Driving (Speeding/Swerving) – Downtown The majority of responses about unsafe driving were clustered north-south along Palm Drive. Some instances of unsafe driving were also observed in neighborhood streets along 5th Street and Hacienda Avenue.

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Issue Identified: Unsafe Driving (Speeding/Swerving) – Industrial Cannabis Study Area Survey respondents noted unsafe driving consistently along Two Bunch Palms Trail in the Industrial Cannabis Study Area.

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Issue Identified: Vacant/Underused Property – Downtown
Survey respondents noted vacant or underused properties throughout the Downtown study area and areas farther north.

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Issue Identified: Vacant/Underused Property – Industrial Cannabis Study Area Survey respondents noted several vacant or underused properties along Two Bunch Palms Trail.

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Issue Identified: Unsafe Crossings – All Areas
Survey respondents noted many areas that felt unsafe to cross the street, clustered north-south along Palm Drive, east-west along Two Bunch Palms Trail, and at some other intersections (Indian Canyon Drive and Mission Lakes Boulevard, Indian Canyon Drive and Pierson Boulevard, Little Morongo Road and Pierson Boulevard, and Hacienda Avenue and Mesquite Avenue).

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Issue Identified: Lack of Sidewalks – Downtown
Survey respondents noted a lack of sidewalks in residential neighborhoods along Acoma Avenue in the Downtown Business District, as well as in some residential neighborhoods elsewhere in the city.

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Issue Identified: Lack of Sidewalks – Industrial Cannabis Study Area Survey respondents noted a lack of sidewalks throughout the Industrial Cannabis Study Area, primarily in front of undeveloped properties.

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Issues Identified: Other Needs
Survey respondents were able to place a pin on other points throughout the city and add a note if they would like to identify a specific issue. The responses to these points included:
• “Homeless encampment”
• “razed property”
• “fenced up hotel”
• “This company creates traffic on the street. Lines of cars East and west waiting to enter the facility.” • “Owner locks parking lot without notice and impedes traffic from Pierson with a constant locked gate.” • “Stop lights must be "smarter": During peak hours, there is A LOT OF TRAFFIC, since the stop lights only favor the drivers from the main streets (Palm Drive). If you drive from Ironwood Dr or Two Bunch Palms, for instance; you have to get up up to 30 minutes earlier to make it to work....” [This comment was added to four locations in the city.] • “In here, DHS Gov. should open the yellow isle in the morning (6am to 9am at least) to the drivers who go to work/school and also in the afternoon/evening (5pm to 7pm, at least) to the ones who return from work. I have lived in big cities/suburban areas, and that is what they do to effectively address the traffic in peak hours.”

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Improvements Suggested
Improvement Suggested: Reduce Traffic Speed – Downtown
Survey respondents suggested reducing traffic speeds through the Downtown area, in particular north-south along Palm Drive.

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Improvement Suggested: Reduce Traffic Speed – Industrial Cannabis Study Area One survey respondent suggested reducing traffic speeds in the Industrial Cannabis Study area around the intersection of Little Morongo Road and Two Bunch Palms Trail.

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Improvement Suggested: Add Crosswalk – Downtown
Survey respondents suggested adding a crosswalk where 1st Street and Acoma Avenue intersect Palm Drive.

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Improvement Suggested: Add Crosswalk – Industrial Cannabis Study Area Survey respondents suggested adding crosswalks adjacent to the major employers in the Cannabis Industrial Study Area.

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Improvement Suggested: Add Protected Bike Lanes – Downtown Survey respondents suggested adding protected bike lanes in proximity to the major downtown intersection at Palm Drive and Pierson Boulevard.

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Improvement Suggested: Add Protected Bike Lanes – Industrial Cannabis Study Area Survey respondents suggested adding protected bike lanes throughout the Industrial Cannabis Study area along Two Bunch Palms Drive and on Little Morongo Road.

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Improvement Suggested: Add Bike Parking – Downtown
Survey respondents suggested adding bicycle parking locations adjacent to the major downtown intersection at Palm Drive and Pierson Boulevard.

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Improvement Suggested: Add Lighting – All Areas
Survey respondents suggested adding lighting near major employers and intersections in the Industrial Cannabis Study Area, in the residential neighborhoods of the Downtown Business District, at Mission Springs Park, and in some residential areas in the southeastern portion of the city.

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Improvement Suggested: Add Sidewalk – Downtown
Survey respondents suggested adding sidewalks in the residential area along Acoma Avenue downtown, as well as in a few other residential areas to the southeast.

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Improvement Suggested: Add Sidewalk – Industrial Cannabis Study Area Survey respondents suggested adding sidewalks throughout the Industrial Cannabis Study area along Two Bunch Palms Drive and on Little Morongo Road.

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Improvement Suggested: Add Signage/Wayfinding – All Areas Survey respondents suggested adding signage or wayfinding on either side of the main intersection downtown at Palm Drive and Pierson Boulevard.

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Improvement Suggested: Other – All Areas
Survey respondents were able to place a pin on other points throughout the city and add a note if they would like to suggest a specific improvement.

The responses to these points included:
• “Parking lot?” [pin placed in Industrial Cannabis Study area] • “The park should be fully open, safe and available for the community to exercise from 4am to at least 9pm everyday.” [pin placed on Mission Springs Park]

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Appendix D: Financial Considerations
Introduction
This appendix includes an inventory and evaluation of parking fee structures and revenues, cost considerations for the strategy recommendations included in this report, and a review of potential funding sources for consideration.

At its most basic parking funding consideration, the City currently has no parking fees or revenues. Based on our analysis of parking supply and demand, we do not see the implementation of paid parking as feasible, either as a revenue generator or policy strategy (parking management or transportation demand management), for the foreseeable future. A system of charging fees for parking would become applicable only if the demand for public parking were to increase significantly. This appendix briefly reviews various types of parking-related fees, and the circumstances under which they may or may not be appropriate for Desert Hot Springs. Although parking fees are not currently recommended and could not be expected to generate revenue, some of the parking and access strategies recommended—including acquiring an off-street lot for public parking, making street improvements, and improving access to alternatives to driving alone—would require funding sources for implementation. Potential funding sources for these strategies and financial considerations are also discussed.

We note that Walker is not a financial advisor and does not act in that capacity. To provide complete financial advice, an advisor in this role should have a complete picture of the City of Desert Hot Springs’ finances, which is beyond the scope of services for this engagement. The financial guidance provided here is policy driven and based on the findings of this study and the recommendations provided in the report.

Current Fee Structure and Revenues
As outlined in the existing conditions chapter, the City of Desert Hot Springs currently has approximately 800 public on-street parking spaces in the downtown study area and approximately 1,873 existing and potential on-street parking spaces in the industrial cannabis area. Some of the potential parking spaces in the industrial cannabis area are on roads that are still undeveloped and unpaved or are on unpaved curb areas of existing roads. The two streets in the industrial cannabis study area where on-street parking was observed—Two Bunch Palms Trail and San Jacinto Lane—we project could reasonably accommodate a combined total of approximately 414 spaces. All public parking is on-street; the City does not have any public parking lots, with the possible exception of the City Hall parking facility, although it is assumed that the parking spaces serving public facilities are dedicated only to that purpose.

To the extent the City shares these spaces, it effectively increases the public parking supply.

All public on-street parking in the City is currently free to motorists. There is no current parking fee structure or otherwise paid public parking, and no parking revenues. Current parking demand does not justify charging for parking. The cost to implement paid parking would likely exceed any revenues from paid parking that might be generated. Public spaces are a public asset. To the extent they are underutilized, and that charging for parking would tend to exacerbate that Item Number: 6.

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underutilization, we do not recommend charging for parking. Further, no current demand would not generate parking revenue.

It is appropriate for existing on-street parking to remain free to motorists as long as the demand for this free parking is lower than the supply, which may be the case for many years. Although free parking is effectively a subsidy for driving, and although the City’s General Plan prioritizes reducing vehicular trips and promoting multimodal transportation, the City may wish to continue providing free parking where public on-street parking has already been created, to promote access and activity in places where parking occupancy rates are not high enough to justify charging, either from a revenue generation or asset utilization perspective.

Given the low demand for parking observed in both downtown and the industrial cannabis study areas, there is not currently any material revenue potential in charging for on-street parking. 6 General Plan Policy LU-3.10 states that
the City should maximize revenue from the utilization of City-owned land and resources. Under the current circumstances, continuing to offer existing on-street parking free of charge to motorists may be the best use of this resource. When ample public parking is available, this reduces potential parking provision constraints on new development and can facilitate economic activity and property improvements, as property owners may choose to dedicate less of their land to private surface parking lots. Ultimately, a demand-based fee structure is recommended, which, based on current demand, means maintaining free on-street parking in both the downtown commercial district and industrial cannabis district.

Additionally, we note that even when paid parking is implemented, a paid parking program has associated costs, which may include paid parking and enforcement hardware, software, fees, administrative time, and operating costs of enforcement. Even in cases where parking revenue is generated, it may not generate revenue surplus.

Citation revenue from parking infractions may also generate revenue. However, we do not include these fees as a material source of revenue and do not recommend relying on them. The purpose of parking enforcement is to enhance the convenience, safety and quality of life of the community. A well-run parking enforcement operation is a system with full compliance and no citation revenue. It is not a best practice in parking management to rely on citation revenue for purposes other than to support the ongoing parking enforcement, to maintain compliance and thereby support the quality of life in the community.

Cost Considerations for Recommended Measures
Per the Scope of Services, in the following section, we provide a discussion of cost considerations associated with the recommendations contained in this report. These recommendations generally fall into three categories:

1. Recommendations that may require some city staff time to implement, but overall little additional cost to the city (no ongoing FTE costs); and

2. Recommendations that may require ongoing operational costs; and 6 If the city were to promote the use of on-street spaces by employees in the Industrial Cannabis District, in lieu of using onsite private parking spaces, it is possible that a small amount of revenue could be generated, although unlikely to exceed the cost of administering and enforcing an on-street parking program. It is unlikely that employees would be willing to pay for onstreet parking in lieu of free on-site parking. The City would likely prefer to generate revenue from the revenue from cannabis production using on-site square footage rather than revenue from on-street parking, which would most certainly be less.

Item Number: 6.

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3. Recommendations that may require capital costs.

Below we discuss examples of each of these costs:

Providing shared or public parking. In the recommendations chapter, we noted that there is an excess of parking in Downtown Desert Hot Springs, however there could be an opportunity to consolidate parking into shared parking lots, thereby allowing for the development of more parcels into businesses or civic spaces. As has been talked about in the city, this type of civic space could host food trucks or the recently established Container Park in the City’s downtown.

Construction and Acquisition of Surface Parking
Cities typically envision that providing public parking facilities will require the acquisition of land and construction of parking-related improvements. We noted that the construction costs to improve a parcel with surface parking is typically $7,500± per space. We noted that the price for improved parcels along Pierson Boulevard as of the date of this report (July 31, 2023) appeared to be approximately $500,000 for 0.15 acres.

Therefore, not including demolition of existing structures, the cost of providing thirty four spaces on 0.30 acres is projected at approximately one million in land costs plus $255,000 in construction. A system of pedestrian pathways to connect surface lots to destinations in the area, separate from the existing sidewalk network, would represent an additional cost. Based on the number and location of the specific surface lots recommended (five lots) we project the total costs for the district of acquiring land and constructing surface parking ranging from approximately $100,000 for lots of 0.15 acres and 13 spaces, to $255,000 for 0.30 acres and 34 spaces per lot. Costs may vary considerably based on the conditions encountered.

Leasing Existing Parking or Parcels
As discussed in the recommendations, leasing existing parking or parcels can provide a more cost effective and flexible alternative to purchasing land and constructing parking in an area with abundant, available parking spaces.

In the recommendations chapter, we suggest that the City lease existing parking spaces to make them available to the driving public or a subset of that population (for example, to employees) so as to make the most convenient parking spaces available for customers and other visitors. The terms of these agreements vary, but should likely include the following:
• A per-space monthly or annual fee to the property owner: In Desert Hot Springs, we would expect a monthly fee from $40 to $75 per month per space.
• Parking Enforcement: All public parking, both on- and off-street, needs proper enforcement to ensure the availability of parking and provide clean and safe parking to the public. While the provision of off-street public parking on a small scale could be enforced by the police department, the full-scale implementation of the five off-street surface lot locations suggested in the recommendations chapter, as well as increased parking restrictions at the curb, could justify the addition of a 0.5 FTE staff member. When possible, Walker typically recommends that enforcement be performed with a customer service, ambassadorial style approach, and not necessarily by a law enforcement officer, which can also reduce costs. • Parking Lot Lease Program/Lot Purchase:
o Cost to restore and maintain a surface lot: Many of the surface lots we observed in Downtown Desert Hot Springs were in need of restoration, which we assume would take place prior to making Item Number: 6.

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them available to the public. We project these costs to range from $1,000 to $2,000. While just a fraction of the cost of maintaining parking structures, maintenance and cleaning costs for parking lots should be taken into account. Maintenance costs will vary based on the size of the lot, with more efficiency for a fewer number of total lots, which are larger. Smaller lots will increase costs on a per stall basis. Per stall costs could range substantially as a result, from $15-65 per year. An annual janitorial service for a the 34-space lot that we assume could be accommodated on two downtown 0.15 acre parcels is likely around $2,000, if not higher with labor scarcity. Maintaining landscaping could nearly double this cost. We would expect the parking lots discussed for downtown Desert Hot Springs to incur maintenance costs on the higher end of this range, given their small size and exposure to extreme heat. Maintenance costs for the surface lots serving city hall should provide a representative cost comparison.
o Signage: Signage is needed to communicate that a parking lot is available for public parking as well as any restrictions or limitations on the parking. We assume two to four signs at a cost of $200 to $250 each.
o Insurance: Liability issues and insurance are often cited as an obstacle to private owners allowing public parking in their surface lots. While the issue can be overcome through a city assuming liability or covering the costs to insure a parking facility, we note that typically parking lots are insured for full usage in any case. We suggest that the city assume a cost of $10 to $14 per space per year to insure surface parking lots, either owned or leased. • Shade Structures: In the recommendations chapter, shade structures were recommended as a way to facilitate the productive use of some of the underutilized right way for long term parking, so that private property owners could maximize the developable, productive area of their land, particularly in the industrial cannabis district. Improved on-street parking was also seen as a way to provide parking for cars waiting to enter cannabis production facilities during shift changes, to avoid waiting in the right of way. The shade structures were seen as a way potentially to minimize the exposure of cars parked at the curb to sun exposure, and to cover sidewalks, to facilitate the use of on-street parking longer walks from the curb to businesses.

Based on our experience with shade structures, we estimate the cost at $200 per square foot to $300 per square foot. This cost includes the shade structure, fabric, and installation, and we note that based on the experts we talk to, the shade structures can be expected to hold up in Desert Hot Springs’ windy environment. Therefore, for approximately 800 linear feet along Two Bunch Palms, a distance that could encompass potentially 300 to 400 parking spaces, we project costs of approximately $1.3 million to 2.0 million dollars, assuming a shade width of 8.2 feet. A significantly narrower shade structure may be acceptable. The cost per improved curb space is several thousand dollars, less than our projected surface lot cost of $7,500 per space although still costly. However, the opportunity cost of the private land, and its ability to contribute to the city tax base, should be considered, as should the facilitation of cars that currently queue in the right of way during shift changes. Regarding the cost to build sidewalks, we note that some sidewalk infrastructure currently exists on Two Bunch Palms and additional infrastructure may be built out based on the city’s bicycle and pedestrian plan and as new development occurs in the industrial cannabis district.

Item Number: 6.

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Shared Mobility Solutions: While they can be viewed as costly on a per ride basis, when compared to the significant cost of auto infrastructure and the cost to the driver for the vehicle, taxes, insurance, and fueling, transportation demand management (TDM) in general and short distance shared mobility specifically, can be an effective way to fulfill short trips for some members of the public in a cost effective and environmentally friendly way. Some points to note regarding shared mobility for Desert Hot Springs include the following:
o Scooter and bike share stations need some form of density to work. People will not walk far to stations or to find dockless bikes. However, we believe that destinations such as the cannabis industrial district, the Spa Zone, and the downtown, particularly at Pierson Boulevard and Two Bunch Palms, could be reasonable places to locate shared scooters, bicycles, or e-bikes. o Most trips are short trips, and we find that the shared mobility companies are raising rates, so to ride for significant distances would become costly.
o In terms of costs, shared mobility companies may need a subsidy from the city. In addition to an RFP bid effort from $20,000 to $30,000, the city would need to expect on going costs and hold shared mobility providers to a contract to ensure significant service. o Shared mobility is possible, even in suburban locations. We highlight a recent program in the San Gabriel Valley: https://betterbikeshare.org/2022/11/04/reimagining-bike-share-for-the-suburbs/ Review of Fees and Other Funding Sources
This section reviews various types of parking and transportation fees and funding sources and evaluates their appropriateness for Desert Hot Springs.
• Paid Parking: Paid parking involves charging an hourly or flat fee, from daily to monthly to annual rate for parking. Paid parking is most appropriate on streets with parking utilization above 85 percent, to allocate parking demand. Implementing paid parking in prime locations can ensure the most efficient use of a finite parking resource; discretionary or longer-term parkers park farther away, on streets or in off-street lots where there is no charge for parking, and walk to their destinations—ensuring convenient parking is available for customers and short-term visitors. Some may choose not to store their vehicles in the high demand areas or use an alternative to driving and parking. Free parking is a powerful incentive for driving, but the destination is the draw. With paid parking, some people will still travel to the destination but use other modes of transportation. To the extent paid parking deters someone from visiting a destination, the greater assurance of finding a space attracts others who otherwise would avoid coming to a district altogether.

When demand is sufficiently high, although revenue generation is not the primary goal, paid parking can be a valuable source of revenue for cities; maximizing the value of public assets, as previously noted, is called for in the City’s General Plan. Revenue can be allocated to help local business and property owners by funding improvements in the areas where the parking revenue was generated (such as cleaning, security, free public wi-fi, active transportation infrastructure, street trees, landscaping, and the management or added capacity of the parking supply). Over the course of our study, no streets in Desert Hot Springs were observed to experience parking utilization near or above 85 percent, but if parking demand increases in Item Number: 6.

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the future, paid parking, which can take various forms—including pay-by-phone (pay by text, app, or browser), parking meter multispacer meter kiosks (limiting the cost and aesthetic impact of parking hardware) or single space meters—can be considered for implementation. An online pay by plate system could allow residents to either pay in advance through a billing or declinating system or offer residents discounts or free parking while non-city residents are charged. A paid parking system can take the form of a combination of all these systems of charging for parking. We note that any kind of preferential parking tends to encourage driving and the associated traffic and lack of parking availability and constrains the revenue generation capability of a paid parking system.

Paid parking is not currently recommended for Desert Hot Springs, due to low parking utilization, representing underutilization of public assets and a lack of revenue generation opportunities. • Parking Assessment Districts: A parking assessment district allows property owners within designated boundaries the ability to assess themselves through increased property taxes to collectively fund desired parking improvements. For example, if local business owners believe they would benefit from the construction of paid parking infrastructure or a parking facility, forming an assessment district could ensure every owner contributed, preventing “free riders” from benefiting from the improvements without contributing their fair share. In some cases assessments vary based on distance (and therefore opportunity to benefit from) from the funded parking infrastructure. In California, establishing a parking assessment district typically requires an approval vote from two-thirds of all property owners within the proposed district. Parking assessment districts can be appropriate for locations in which property owners can reach consensus on the need – and willingness to pay - for certain parking improvements to support their businesses.

Establishing a parking assessment district is not recommended for Desert Hot Springs. First, the benefits of building a shared parking facility typically accrue where parking can be shared, providing efficiencies to a variety of land uses in the district. In the Cannabis District, land uses were observed to generally experience the same peaks in parking demand, limiting the ability to share spaces. In the downtown, nearly every parcel currently was observed to have excess, onsite parking. Likely because of this, neither the downtown nor the industrial cannabis study area property owners have expressed any interest in parking infrastructure improvements. A parking assessment is an additional cost to doing business. Given the nascency of the downtown commercial district, a parking assessment on properties or businesses is likely premature and counterproductive to developing the area.
• Parking In-lieu Fees: Parking in-lieu fees rely on the existence of minimum parking requirements for new development projects and use changes; they allow a developer or business owner to opt out of providing any required parking on-site and instead contribute a set fee per stall not provided to a citywide fund.

Parking in-lieu fees can help prevent scattered and unattractive private parking lots from being created and instead help downtowns become “park once and walk” areas. Some cities have used in-lieu fees to create public parking garages in central locations, facilitating the redevelopment of scattered surface parking lots and creating a more pedestrian-friendly environment. Cities have also used parking in-lieu fees to support access to transportation alternatives, including bike and pedestrian infrastructure. Collecting in-lieu fees to fund additional parking infrastructure could be appropriate if the lack of available and affordable parking was found to be preventing people from visiting an area. Allowing parking in-lieu fees and using the funds Item Number: 6.

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to increase access to transportation alternatives may be more appropriate than having inflexible parking requirements, but cities interested in increasing access to sustainable transportation can also do so more directly through impact fees.

The paradox of parking in lieu fees is that fees set high enough to contribute meaningfully to funding transportation infrastructure or programs are likely too high for businesses’ willingness to pay (after all, in lieu fees are optional, by definition). In lieu fees set sufficiently low to inspire businesses to pay the fees in lieu of providing their own private parking provide little meaningful funding. In lieu fees can, however, incentivize shared public parking in lieu of parcel after parcel of private parking, making parking more efficient, less impactful, and sustainable. However, as a revenue source, their impact tends to be minimal.

Parking in-lieu fees are not recommended for Desert Hot Springs because they rely on minimum parking requirements, which the City is advised to remove citywide, in order to facilitate economic growth and development and progress toward numerous other policy goals established in the General Plan. Further, their benefit as a funding source tends to be minimal. Only if the City were not to eliminate minimum parking requirements should parking in lieu fees be considered.

• Impact Fees: Developer impact fees generally involve establishing a per-unit fee for new residential developments and a square footage-based fee for retail, office, and industrial developments. Funds can be used for transportation facilities, including already-planned pedestrian and bicycle infrastructure projects throughout the City and transit service improvements. Establishing these fees requires a nexus study demonstrating the relationship between the expected transportation impacts of new developments and the cost of addressing those impacts through transportation improvements. As a result, typically a reasonable projection of the amount of new development that will be constructed within the defined district is needed to allocate the cost of new transportation infrastructure equitably, based on the amount of development impact.

As a member of the Coachella Valley of Association of Governments (CVAG), the City of Desert Hot Springs is currently a potential recipient of transportation impacts fees through Transportation Uniform Mitigations Fees (TUMF). However, a cursory review of the TUMF demonstrated a relatively small portion of the fee is dedicated to active transportation projects in Desert Hot Springs, and likely one that does not align with aspirational goals for a multimodal transportation system that offers robust alternatives to driving alone.

The TUMF appears focused on adding new arterial capacity for automobile traffic.

The City of Santa Monica has a transportation impact fee of the type we envision would be beneficial for Desert Hot Springs. Santa Monica’s Transportation Impact Fee program requires developers to pay a fee based on the number of residential units planned or on the amount of square footage for non-residential developments. The transportation impact fee revenues may fund sidewalk improvements, bike parking, transit improvements, and new striping (e.g., for bicycle and transit lanes). Programmatic measures may include partnerships with sustainable mobility service providers. While other cities may have transportation improvement fees that fund vehicle infrastructure, Santa Monica directs these funds toward projects that reduce vehicle traffic, which also helps manage parking demand.

Item Number: 6.

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Santa Monica requires Transportation Demand Management (TDM) plans for new developments with 16 or more residential units or at least 7500 commercial square feet. Strategies to reduce vehicle travel may include both programmatic measures, such as providing employees or residents with transportation allowances for transit passes, and site improvements, such as providing secure bicycle parking with electric charging for e-bikes.

To the extent that CVAG’s TUMF is not sufficient to fund the driving alternatives necessary to achieve the City’s goals, a transportation impact fee is recommended for Desert Hot Springs for the purpose of funding adequate infrastructure to support sustainable or active modes of travel, and new development increases the need for transportation improvements. The fees should be established at relatively low levels to avoid creating an excessive constraint on development. Transportation impact fees can be seen as an alternative to or replacement for minimum parking requirements, as the fees are less restrictive in their use and more aligned with the General Plan goals.

Creating and maintaining parking is both more costly and less necessary in Desert Hot Springs than increasing access and safety for people walking, biking, or using shared mobility. • Parking Revenue Bonds: Parking revenue bonds allow cities to go into debt to fund new parking infrastructure and use only parking revenues to pay the debt service. Cities cannot be required to use general funds or levy taxes to pay revenue bond interest and principal. Typically, the debt incurred by funding parking using these revenue bonds does not impact a city’s credit. Because they are not paid off with taxpayer funds, these revenue bonds may not require voter approval to be issued. However, because they are not backed by the general fund, they are also seen as riskier for investors and in nearly all cases will have higher interest rates than general obligation bonds. Further, a city planning to follow the best practice of returning at least half of any parking revenue generated to the community would result in a smaller revenue stream and increase the difficulty of securing bond financing.

Parking revenue bonds are not currently recommended for Desert Hot Springs because parking infrastructure could not be expected to pay for itself through parking revenues. As noted, we do not see a viable source of public parking revenue in the city.
• General Obligation Bonds: General obligation bonds allow cities to go into debt to fund public-serving capital projects. This could include parking infrastructure, but also infrastructure that supports active transportation and shared mobility. Clean Transportation projects are one of the project categories eligible for the issuance of a Green Bond according to the Green Bond Principles, created by an international group of finance institutions. The Green Bond label that may be seen as a bonus feature, especially for investors who prescribe to environmental, social and governance (ESG) goals for investing. Unlike revenue bonds, under general obligation bonds, including green general obligation bonds, cities can be required to use general funds or levy taxes to pay revenue bond interest and principal, typically relying on taxpayer funds, and therefore requiring two-thirds voter approval.

General obligation bonds are not currently recommended for Desert Hot Springs for the purpose of funding parking infrastructure because the benefits of additional parking infrastructure, would not outweigh the costs, which tend to be substantial. Structured parking results in costs of hundreds of dollars per space per month. Meanwhile, the City currently has ample parking availability.

Item Number: 6.

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Green general obligation bonds may be worth further exploring for the purpose of funding sustainable transportation infrastructure. The community has expressed a desire for improvements that would increase the ease and safety of walking, biking, and shared mobility, but it is unknown whether community members would support the City taking on additional public debt for sustainable transportation projects.

• Grants: In our experience, grant funding specifically to support parking infrastructure is extremely rare.

Federal, state, and regionally administered grants are unlikely to fund parking infrastructure. However, many grants support active transportation and shared mobility project implementation and new planning efforts, which reduce parking demand by making sustainable transportation more accessible and attractive.

City staff should periodically monitor grant opportunities for which the City may be eligible to apply. Grant programs worth exploring include, but are not limited to:
o Climate Pollution Reduction Grants, administered by the EPA o Safe Roads and Streets for All Grants, administered by the U.S. DOT o Congestion Mitigation and Air Quality Improvement Program, administered by the FHWA o Sustainable Communities Grants, administered by CalTrans o Affordable Housing and Sustainable Communities Program Grants, administered by California’s Strategic Growth Council and Department of Housing and Community Development o Urban Greening, administered by the California Natural Resources Agency o Transformative Climate Communities Grants, administered by the Strategic Growth Council and Department of Conservation
o Office of Traffic Safety Grant Programs, administered by the California Office of Traffic Safety o Clean Mobility Options Program, administered by the California Air Resources Board o Sustainable Transportation Equity Project, administered by the California Air Resources Board o Local Partnership Program, administered by the California Transportation Commission o Local Streets and Roads Program, administered by the California Transportation Commission o Highway Safety Improvement Program, administered by Caltrans Local Assistance/FHWA Seeking grant funding to implement sustainable transportation projects and fund future planning efforts is recommended. Many competitive grant programs prioritize disadvantaged communities and consider factors such as the average share of household income spent on transportation when allocating awards.

The average share of household income spent on transportation within the three Census Tracts covered by the study areas ranges from approximately 27 to 29 percent. Obtaining grant funding can help the City more quickly support the implementation of already-planned bicycle and pedestrian infrastructure capital improvement projects that may help community members reduce their transportation spending. Grant funding may also be available for planning efforts, including conducting a study to implement a Sustainable Mobility Impact Fee, to create a TDM plan and ordinance with updated development standards, and to create a plan for secure bicycle and scooter parking and charging. All of these planning efforts complement parking management by reducing demand for vehicle parking. • Enhanced Industrial Finance Districts (EIFDs) and Community Revitalization and Investment Authorities (CRIAs): The EIFD financing mechanism was established in 2014 to provide a funding mechanism for potential infrastructure financing in light of the 2011 dissolution of California redevelopment agencies.

CRIAs were established a year later as another type of tax increment financing district that increases Item Number: 6.

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funding for and production of affordable housing in disadvantaged communities. It may fund other types of infrastructure projects as well.

The City of West Sacramento was the first in California to establish an EIFD and has since used this mechanism to plan the funding of several public parking facilities in districts throughout the city.

EIFDs and CRIAs tend to be feasible only for a small number of cities that have a larger share of property tax revenues and significant new development in the proposed districts, such as West Sacramento.

Unfortunately, many cities have lost their internal capacity to pursue an EIFD or CRIA due to limited personnel and budget constraints. The process to form an EIFD or CRIA may be challenging if a full CEQA review or if voter approval to form the district or issue bonds is required. EIFDs can finance public infrastructure projects, as well as private childcare centers, affordable housing, and parking facilities.

Specific Funding Sources for Consideration
Due to current policy priorities in California and the nation, funding availability for the policies recommended in the report is tied most closely to two strategic goals, (1) housing production and (2) incentivization of multimodal transportation, particularly active transportation. The following funding sources—the Affordable Housing and Sustainable Communities Program and the Infill Infrastructure Grant Program—appear to be potentially relevant and promising.

California’s Affordable Housing and Sustainable Communities (AHSC) Program is funded by the Greenhouse Gas Reduction Fund, which receives cap-and-trade auction proceeds. The AHSC Program is intended to help lower GHG emissions by funding projects that reduce automobile trips or vehicle miles traveled. When a City applies for an AHSC grant, an affordable housing development corporation should generally be a co-applicant. Depending on the request, there may be other co-applicants as well, such as SunLine Transit, the Riverside County Transportation Commission, the local school district, or a program operator. At least 50 percent of the requested funds should be dedicated to affordable housing development or housing related infrastructure, and the remaining award amount may be used for sustainable transportation infrastructure, transportation related amenities, or program costs.

Three project area types are eligible:

1. Transit Oriented Development (TOD) Project Areas. This project area type requires proximity to “High Quality Transit” with service frequency of 15 minutes or less, so it is not applicable to DHS projects.

2. Integrated Connectivity Project (ICP) Project Areas. This project area type requires an affordable housing development near qualifying transit. This includes flexible transit service, so DHS projects within the SunRide service area may be eligible.

3. Rural Innovation Project Areas (RIPA). This project area type applies to Census tracts designated as being within a Rural Area (generally meaning a tract with population below 5,000, in a city with a population below 40,000). Two study area tracts in Desert Hot Springs may be eligible: Tract 445.09 in the downtown study area (north of Pierson Boulevard and west of Palm Drive) and Tract 445.07 in the industrial cannabis study area (south of Two Bunch Palms Trail and east of Little Morongo).

Item Number: 6.

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Examples of Sustainable Transportation Infrastructure, Transportation Related Amenities, or Program Costs funding uses include:
o Infrastructure:
▪ Walkways, protected bikeways, pedestrian crossings, streetscape lighting/signage, traffic calming, parklets
▪ Bike parking or bike repair kiosks
o Bike and car share:
▪ Bike share infrastructure and fleet, program operations ▪ ZEV car share vehicles with reduced costs for low-income participants, program operations o Transit:
▪ Transit vehicles, charging infrastructure, equipment, passenger amenities, real-time information displays, bus shelters
▪ Vanpool vans and electric shuttles in rural areas
o Programs:
▪ Education, transit subsidy programs and marketing, TDM programs, workforce development partnerships
All these examples could be applied to varying degrees to facilitate connections from parking to destinations in the downtown and cannabis districts. They could also be used to facilitate travel to and from the districts.

The Infill Infrastructure Grant (IIG) Program is administered by the California Department of Housing and Community Development. The IIG Program is meant to promote infill housing development by providing gap funding for infrastructure improvements that facilitate affordable or mixed-use housing development projects.

Funding may be used for ancillary development costs associated with a housing development, including:
• The creation, development, or rehabilitation of Parks or Open Space • Streets, roads, or transit linkages or facilities
• Facilities that support pedestrian or bicycle transit • Traffic mitigation
• Sidewalk or streetscape improvements
A city or other entity with jurisdiction over a “Catalytic Qualifying Infill Area” is eligible to apply. Applicants must have affordable housing development experience and demonstrate the capacity to acquire, develop, own, and maintain affordable housing. In the most recent round of funding, all small jurisdiction applicants were housing development corporations. To be eligible, projects must:
• Be located on previously developed or vacant site where at least 50 percent of the perimeter adjoins developed parcels
• Contain sites included in the housing element
• Be located in a mixed-use or residential area
• Be located within an Urbanized Area
• Show at least 100 housing units will be developed
• Include at least 15 percent Affordable units
Item Number: 6.

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The total grant amount is influenced by the number of proposed housing units, the depth of affordability, housing densities, access to transit, access to amenities, the presence of an adaptive reuse ordinance, and other scoring factors.

A grant application for the Desert Hot Springs Active Transportation Safety and Connectivity Plan was submitted by the City in March 2023 to the California Department of Transportation’s Sustainable Transportation Planning Grant Program. The Plan focuses on the City’s Focused Active Transportation Study Corridors, including three corridors within our study areas, (1) Two Bunch Trail through the industrial cannabis district, (2) Pierson Boulevard, and (3) Palm Drive in the City’s downtown. If awarded, the grant therefore offers an opportunity to improve access and mitigate parking demand in a way that is consistent with SCAG’s Smart Cities and Mobility Innovations projects and this report’s recommendations.

Item Number: 6.

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SR-23-247
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: Amendment to Vacation Rental Regulations
RECOMMENDATION:

Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs amending Chapter 5.44 of the Desert Hot Springs Municipal Code regarding Vacation Rentals."
BACKGROUND:

On July 5, 2023, the City Council approved City Staff's recommendations to bring forward an ordinance to amend the following Vacation Rental Regulations:
1) Institute a citywide cap on STVR Licenses at 4% of total housing parcels with developed housing units.
2) Restrict New Applications (not renewal of existing licenses) for an STVR License from being within 500 ft., measured front door to front door from existing vacation rentals in the City. 3) Realign regulations for vacation rentals for Noise, Trash Cans, and Parking to the same regulations used for Residential Properties in the City. 4) Modify the Occupancy Regulations for vacation rentals. 5) Require Vacation Rental Platforms to remit TOT directly to the City; Remove Vacation Rental advertisements from their platforms for illegal or non-compliant operators when requested to do so by the City.

DISCUSSION:

The City Council subcommittee and staff met with vacation rental property owners to discuss challenges that they face with current impracticable vacation rental regulations. Based on those discussions and City staff's challenges with enforcement, the proposed ordinance will loosen overburdensome regulations as follows:

Desert Hot Springs Municipal Code
Title 5 Business License and Regulations
Item Number: 7.

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SR-23-247
Chapter 5.44 Vacation Rentals

5.44.030 Vacation rental Permit —Required.

A. No owner or agent of a vacation rental unit shall rent, advertise, list for booking, book, or otherwise publish information for a vacation rental, any unit for a period of 30 consecutive days or less without a valid Vacation Rental Permit for each vacation rental unit pursuant to this chapter. No owner or agent of a vacation rental unit shall be permitted to obtain a Vacation Rental Permit without first obtaining a business license pursuant to Chapter 5.04.

5.44.080 Operational requirements and standard conditions D. No outdoor music, radios, musical instruments or other devices that produce or reproduce sound are allowed to be used outdoor at any time. Vacation rentals must comply with the noise regulations as set forth in Chapter 8.12 of this Code.

E. No outdoor amenities and/or outdoor games or any outdoor activities that create noise between the hours of 10 p.m. and 8 a.m.

H. Owner shall comply with all applicable sections of Chapter 8.04 pertaining to trash removal.Such bins shall be set out no earlier than 7:00pm on the day prior to trash collection day, and shall be retrieved and hid from public view no later than 7:00pm of trash collection day.

The owner or agent must be available to take out the trash.

M. Complaints. Notwithstanding the regulations in Chapter 8.12, in the event the City receives a complaint related to noise, trash, or other violation of this chapter, owner, agent or emergency contact person shall contact the responsible person immediately and provide the individual with a warning, or take action to terminate the occupancy. In addition, the Owner or agents must contact the occupant respond physically to the property within thirty (30) minutes of notice of the complaint. Failure of the owner, agent or responsible person to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the vacation rental unit in accordance with the provisions set forth in this chapter, shall be grounds for imposition of penalties as set forth in this chapter.

To protect public health, safety, and welfare and to address complaints involving vacation rental safety concerns, complaints, and impacts on communities and neighborhoods the proposed amendments would strengthen weak vacation rental regulations as follows.

Desert Hot Springs Municipal Code
Title 5 Business License and Regulations
Chapter 5.44 Vacation Rentals

5.44.45 Hosting Platform Requirements
A. All hosting platforms that display short-term rental listings for properties in the City shall comply with the following:

Item Number: 7.

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SR-23-247

1. Hosting Platforms shall remove any listings for vacation rentals from the platform within 24 hours of City notification that the vacation-rental permit associated with a short-term rental listing is invalid, expired, or has been revoked. The notification must identify the listing(s) to be removed by the listing URL and permit number and state the reason for removal.

2. Hosting Platform that facilitates booking transactions in the City shall collect in lieu of vacation rental Owners and remit to the City the applicable Transient Occupancy Tax and Transient Business Improvement District (TBID), as calculated on the amount of consideration the short-term rental guest pays to the short-term rental owner.

B. Hosting platforms shall not complete any booking transaction for any residential dwelling or other property purporting to be a vacation rental unit in the city unless the dwelling or property has a current and valid vacation rental permit issued pursuant to this chapter, which is not under suspension, for the dates and times proposed as part of the booking transaction.

5.44.055 Limitation on Number of Vacation Rentals.

A. The number of vacation rentals shall not exceed four percent (4%) of the total housing parcels containing completed developed housing units. This number shall not include licensed, permitted and/or entitled hotels and motels, in good standing with the City. This number shall be calculated yearly. Such vacation rental permits exceeding this number shall be rejected and not issued.

B. Vacation rental parcels shall not be located within five hundred (500) feet from another vacation rental, measured front door to door via a walking path within the public right of way.

Such vacation rental permits shall be rejected and not issued. Notwithstanding, vacation rentals existing and in good standing with the City as of the effective date of this ordinance shall not be denied a Vacation Rental Permit renewal solely on this factor.

C. If the vacation rental exists within an Home Owners Association that prohibits same, such vacation rental permit shall be rejected and not issued.

5.44.080 Operational requirements and standard conditions.

B. For new Vacation Rental Permits owner and/or agent shall allow the City to conduct an inspection of the entire structure and the exterior premises prior to issuance of Vacation Rental Permit of the property to ensure compliance with this chapter.

C. For renewed permits, the owner and/or agent shall allow the City to conduct an inspection of the entire structure and the exterior premises prior to issuance of the renewal of a Vacation Rental Permit of the property to ensure compliance with this chapter, no early than 60 days prior to the expiration of the Vacation Rental Permit.

For B and C above, the inspection shall be conducted to ensure that the vacation rental will not create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties in the vicinity. Evaluation and inspection shall include, but not be limited to: noise monitoring system, landscape, fire hazards, vehicle parking, maintenance of improved surfaces, visual blight, structural hazards, Item Number: 7.

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SR-23-247
fire/smoke/carbon monoxide alarms, and occupancy. Specifically with respect to pools or spas, such pools and spas must comply with all regulations in the California Swimming Pool Safety Act and state and federal applicable law. In addition, the pool or spa must comply with or be equipped with:

1. Legible sign posted at least 9”x 6”, “SWIM AT YOUR OWN RISK” visible from all doors leading to the pool area. Sign lettering size must be no less than 1 inch.

2. Telescoping rescue pole (can be a skimmer pole).

3. All side gates leading into the pool area must have a working, self‐closing spring and a latching device at the height of 54 inches or more

4. Two of the following seven drowning prevention safety features:
a. An enclosure that meets the requirements of Government Code Section 115923 and isolates the swimming pool or spa from the private single-family home. b. Removable mesh pool fencing that meets (ASTM) Specifications F2286 standards in conjunction with a gate that is self-closing and self-latching and can accommodate a key lockable device.
c. An approved safety pool cover that meets all requirements of (ASTM) standard F134691.
d. Exit alarms on the private single-family home's doors that provide direct access to the pool.[JM1]
e. A self-closing, self-latching device with a release mechanism placed no lower than 54" above the floor or each door providing direct access to the swimming pool or spa. f. An alarm that, when placed in a swimming pool, will sound upon detection of accidental or unauthorized entrance into the water. The alarm shall meet and be independently certified to the ASTM Standard F2208 "Standard Specification for Residential Pool Alarms" which includes surface motion, pressure, sonar, laser, and infrared type alarms. A swimming protection alarm feature designed for individual use, including an alarm attached to a child that sounds when the child exceeds a certain distance or becomes submerged in water, is not a qualifying drowning prevention safety device.
g. Other means of protection, if the degree of protection afforded is equal to or greater than that afforded by of the devices set forth above and has been independently verified by an approved testing laboratory as meeting standards for those devices established by the ASTM or the American Society of Mechanical Engineers (ASME).

G. The owner and agent shall limit the number of vehicles of overnight occupants at an amount not to exceed the number of designated on-site parking spaces. All persons shall comply with all applicable City parking regulations, including but not limited to Titles 4 and 10.

Item Number: 7.

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SR-23-247

5.44.110 Violations and penalties.

G. 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.

The Vacation Rental Enforcement Program relies on the Desert Hot Springs Municipal Code to provide explicit and robust regulations for permit applications, application requirements, inspections, fees, and grounds for denial. The following proposed amendments would ensure that those regulations provide the ability to enforce vacation rental permitting and inspection regulations.

Desert Hot Springs Municipal Code
Title 5 Business License and Regulations
Chapter 5.44 Vacation Rentals

5.44.050 Vacation Rental Permit requirements.

H. A Vacation Rental Permit and accompanying business license shall be valid for one (1) year and renewed on an annual basis in order to remain valid.

G. A Vacation Rental Permit and accompanying business license renewal application shall be submitted to the City no earlier than sixty (60) calendar days but no later than thirty (30) calendar days prior to the permit's expiration date. Failure to renew a vacation rental permit as prescribed in this section may result in the vacation rental permit being terminated.

5.44.060 Denial of a Vacation Rental Permit, Appeal and Fee A. An owner or agent shall be denied a Vacation rental Permit if:

1. Certificate for any unit that was issued to the same owner or agent has been revoked pursuant to Section 5.44.050, within 12 months of submitting the new application;

2. The vacation rental would cause the total housing parcels containing completed developed housing units to exceed four percent (4%).

3. The vacation rental is within five hundred (500) feet from another vacation rental, measured front door to door via a walking path within the public right of way.

Notwithstanding, vacation rentals existing and in good standing as of the effective date of this ordinance shall not be denied a Vacation Rental Permit renewal solely on this factor.

4. A property owner for a single property has been found in violation of a. Two (2) noise complaints resulting in an administrative citation for the same property shall. b. Two (2) violations of occupancy limits resulting in an administrative citation for the same property; or.

Item Number: 7.

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SR-23-247
c. Three (3) complaints, including but not limited to noise complaints, occupancy complaints, trash complaints, etc. resulting in an administrative citation for the same property. Any federal, state, or local regulations.

5. The owner has failed to pay the appropriate amount of the Transient Occupancy Tax for any property at any time during its ownership;

6. The owner has an active code compliance matter.

7. An applicant has had a prior Vacation Rental Permit for the same or any other unit revoked within the previous 12 calendar months.

8. Non-payment of applicable vacation rental fees.

9. The Owner has not taken steps to activate or move forward with the application for a period of 30 days.

10. In addition to any other grounds provided in this chapter, an application (including renewal application) for a vacation rental permit may be denied if use of the vacation rental unit has been, will be, or is apt to become any one (1) or more of the following. a. Prohibited by any local ordinance or by any state or federal law, statute, rule or regulation;
b. A public nuisance;
c. In any way detrimental to the public interest;
d. Prohibited by zoning laws and ordinances.

11. An application (including renewal application) for a vacation rental permit may also be denied on the grounds that the applicant has knowingly made a false statement in a material matter either in his/her/their application or in his/her/their testimony before the city manager or other body hearing such testimony.

12. Failure of a City inspection.

ATTACHMENTS:
1) Ordinance Amending Short Term Rentals
Item Number: 7.

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ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS AMENDING CHAPTER 5.44 OF THE DESERT HOT SPRINGS MUNICIPAL CODE REGARDING SHORT TERM VACATION RENTALS.

WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, the City currently regulations Short Term Vacation Rentals in Chapter 5.44 of the City’s Municipal Code; and
WHEREAS, the City deems it necessary to both clarify and add regulations to same to mitigate any negative secondary effects of Short Term Vacation Rentals; and WHEREAS, this proposed Ordinance is best for the public health, safety and welfare to ensure compliance with the General Plan Amendment.

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 5.44

5.44.010 Purpose.

The City Council of the City of Desert Hot Springs finds and declares as follows:

A. The use of privately owned residential dwelling units for the purpose of vacation rentals provides a community benefit by expanding the number and type of lodging facilities available in the City, and assists owners of dwelling units used as vacation rentals by providing revenue, which may be used for maintenance upgrades and deferred costs.

B. The purpose of this chapter is to establish regulations for the use of residential property as vacation rentals thereby enabling the City to preserve and protect the public health, safety, and welfare, by minimizing complaints involving excessive noise, disorderly conduct, vandalism, overcrowding, traffic, congestion, illegal vehicle parking and accumulation of refuse.

Item Number: 7.

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C. The transitory nature of occupants of vacation rental units makes continued enforcement against the occupants difficult. The provisions of this chapter are therefore necessary to prevent the continued burden on city services and impacts on residential neighborhoods posed by vacation home rentals.

D. The establishment of a regulatory program for vacation rentals will provide an administrative procedure to preserve existing visitor-serving opportunities and increase and enhance public access to areas of the City and other visitor destinations.

E. This chapter is not intended to regulate hotels, motels, inns, time-share units, or non-vacation type rental arrangements including, but not limited to, lodging houses, rooming houses, convalescent homes, rest homes, halfway homes, or rehabilitative homes.

F. This chapter is intended to ensure all vacation rental units are safe for occupancy and comply with applicable safety standards under federal, state and local law.

5.44.020 Definitions.

For purposes of this chapter, the following words and phrases shall have the meaning respectively ascribed to them by this section, unless the context clearly indicates or requires a different meaning:
“Applicant” means the owner of the vacation rental unit, or the agent of the owner. “City Manager” means the City Manager of the City of Desert Hot Springs or designee.
“Emergency contact person” means the person designated by the owner or agent or representative of the owner, who is available 24 hours per day, seven days per week for the purpose of responding to complaints regarding the condition, repair, operation or conduct of occupants of the vacation rental unit, and who has access and authority to assume management of the unit and take remedial measures. “General vacation rental permit” is a type of vacation rental permit that is neither a homeshare vacation rental permit nor a primary residence vacation rental permit.
“Good neighbor brochure” means a document prepared by the City that summarizes the general rules of conduct, consideration, and respect, including without limitation provisions of the Desert Hot Springs Municipal Code and other applicable laws, rules or regulations pertaining to the use and occupancy of vacation rental units. "Homeshare vacation rental permit" is a type of vacation rental permit whereby the owner hosts visitors in the owner's vacation rental unit, for compensation, for periods of thirty (30) consecutive calendar days or less, while the owner lives on-site and in the unit, throughout the visiting occupant's stay. “Hosting Platform” means a person or entity that provides a means through which an operator may offer a dwelling unit, or portion thereof, for short term rental use, and from which the person or entity financially benefits. “Owner” means the owner of record as shown on the last equalized assessment roll of the County of Riverside or as otherwise may be known to the City. If there is more than one owner, the term includes all of the owners. For purposes of providing notice to an owner as required under this chapter, “owner” includes the actual owner of record, or Item Number: 7.

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such owner’s agent, employee or other legal representative if such agent, employee or representative is authorized by the owner to receive such notice. "Primary residence" means a dwelling where an owner spends the majority of the calendar year on the property used as a vacation rental unit, and the property is identified in the Riverside County assessor's record as the owner's primary residence.
"Primary residence vacation rental permit" is a type of vacation rental permit whereby the vacation rental unit is the owner's primary residence, as defined herein in this section.
“Property” means a parcel on which a vacation rental unit is located. “Responsible person” means an occupant of a vacation rental unit who is at least 18 years of age and who shall be legally responsible for the compliance by all occupants of the unit and their guests with all provisions of this chapter and this code.

The responsible person shall be the transient, for purposes of imposing and enforcing the provisions of the City’s transient occupancy tax under Chapter 3.20 of this code. “Transient” shall have the same meaning as set forth in Chapter 3.20 of this code. “Vacation Rental Permit” means an annual permit, be it for a general vacation rental permit, homeshare vacation rental permit, and/or primary residence vacation rental permit, which is awarded by the City to the owner or agent pursuant to this chapter.
“Vacation rental unit” or “unit” means a privately owned residential dwelling, including either a single-family detached or multiple-family attached unit, apartment house, condominium, cooperative apartment, duplex, or any portion of such dwellings, rented for occupancy for dwelling, lodging, or sleeping purposes for a period of thirty consecutive days or less, other than ongoing month-to-month tenancy granted to the same renter for the same unit, or occupancy on a time-share basis. A vacation rental unit does not include a unit that is rented only occasionally (infrequently) and incidentally to the normal occupancy by the owner or the owner’s family. The terms occasionally and infrequently shall mean ten nights or less (either cumulatively or for a continuous period) in a single calendar year.

5.44.030 Vacation rental Permit —Required.

A. No owner or agent of a vacation rental unit shall rent, advertise, list for booking, book, or otherwise publish information for a vacation rental, any unit for a period of 30 consecutive days or less without a valid Vacation Rental Permit for each vacation rental unit pursuant to this chapter. No owner or agent of a vacation rental unit shall be permitted to obtain a Vacation Rental Permit without first obtaining a business license pursuant to Chapter 5.04.

B. A Vacation Rental Permit shall contain the following information: (1) the address of the vacation rental unit; (2) the name of the owner, agent, and emergency contact person, and a telephone number at which the emergency contact person may be reached on a 24-hour basis; (3) the expiration date of the Vacation Rental Permit; and (4) such other information as may be necessary to carry out the provisions of this chapter.

Item Number: 7.

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5.44.040 Agency.

An owner shall may retain an agent or a representative to comply with the requirements of this chapter, including, without limitation, the filing of a complete vacation rental registration application, the management of the vacation rental unit or units, and compliance with the requirements of this chapter if the owner resides or has his/her principal place of business thirty-five (35) driving miles or more distance of the subject property. Notwithstanding any agency relationship between an owner and an agent, the owner of the vacation rental unit shall remain responsible for compliance with all provisions of this chapter and the City’s municipal code. Failure of an agent to comply with this chapter and/or the municipal code shall be deemed noncompliance by the owner. Any agent of the owner shall be listed on the Vacation Rental Permit. The owner’s agent or representative also must also have a separate business license.

5.44.45 Hosting Platform Requirements
A. All hosting platforms that display short term rental listings for properties in the City shall comply with the following:

1. Hosting Platforms shall remove any listings for vacation rentals from the platform within 24 hours of City notification that the vacation-rental permit associated with a short term rental listing is invalid, expired, or has been revoked. The notification must identify the listing(s) to be removed by the listing URL and permit number and state the reason for removal.

2. A Hosting Platform that facilitates booking transactions in the City shall collect in lieu of vacation rental Owners and remit to the City the applicable Transient Occupancy Tax and Tourism Business Improvement District (TBID), as calculated on the amount of consideration the short term rental guest pays to the short term rental owner.

B. Hosting platforms shall not complete any booking transaction for any residential dwelling or other property purporting to be a vacation rental unit in the city unless the dwelling or property has a current and valid vacation rental permit issued pursuant to this chapter, which is not under suspension, for the dates and times proposed as part of the booking transaction.

The provisions of this subsection shall be interpreted in accordance with otherwise applicable state and federal law(s) and will not apply if determined by the city to be in violation of, or preempted by, any such law(s).

5.44.050 Vacation Rental Permit requirements.

A. Prior to use of a property as a vacation rental unit, the applicant shall submit an application for a Vacation Rental Permit to use the property as a vacation rental unit.

The application shall be available at the City Clerk’s office and shall be renewed on an annual basis. Each application shall contain the following information:

Item Number: 7.

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1. The name, address, email address and telephone number of the owner of the vacation rental unit for which the Vacation rental Permit is to be issued.

2. The name, address, email address and telephone number of the agent of the owner of the unit.

3. The name, address, email address and 24-hour telephone number of the emergency contact person.

4. The address of the residential property proposed to be used as a vacation rental unit.

5. The number of bedrooms and the overnight and daytime occupancy limit of the unit, as set forth in Table 5.44.081.

6. The proposed rental rates for the unit, and when applicable, the owner’s prior year revenue for the unit.

7. Evidence of a valid business license issued by the City for the separate business of operating a vacation rental unit, or submission of a certificate that owner is exempt or otherwise not covered by the provisions in Section 5.04.020 of the City’s municipal code.

8. Evidence of a valid transient occupancy registration certificate issued by the City for the vacation rental unit, pursuant to the provisions of Chapter 3.20 of the City’s municipal code.

9. Acknowledgement of receipt and inspection of a copy of all regulations pertaining to the operation of a vacation rental unit, including the Good Neighbor Brochure.

10. Acknowledgement/attestation that the unit meets all applicable building and safety code requirements.

11. Such other information as the City Manager or designee deems reasonably necessary to administer this chapter.

B. An application for a Vacation rental Permit annual renewal, and amendment shall each be accompanied by a fee established by resolution of the City Council, provided, however, that no fee shall be greater than necessary to defer the cost incurred by the City in administering the provisions of this chapter.

C. Within thirty (30) ten business days of submittal of an application that contains all of the requirements of subsections A and B, the City’s Business License Clerk shall issue the Vacation Rental Permit to the applicant.

D. Within 90 days of the effective date of the ordinance codified in this chapter, an application for a Vacation Rental Permit shall be filed with the City’s Business License Clerk for property used as a vacation rental unit at the time of the effective date of the ordinance codified in this chapter or during the year immediately preceding the effective date of the ordinance codified in this chapter.

E. The City’s Business License Clerk shall provide a copy of the Vacation Rental Permit to the City’s Police and Code Enforcement Departments within seven days of issuance.

F. The application for a Vacation rental Permit shall be accompanied by proof of general liability insurance in the amount of $1,000,000.00 combined single limit and an executed agreement to indemnify, defend and hold the City harmless from any and all Item Number: 7.

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claims and liability of any kind whatsoever resulting from or arising from the operation of a City permitted vacation rental. (Ord. 533 5-1-12)
G. The Vacation Rental Permit shall be non-transferable.

H. A Vacation Rental Permit and accompanying business license shall be valid for one (1) year and renewed on an annual basis in order to remain valid.

G. A Vacation Rental Permit and accompanying business license renewal application shall be submitted to the City no earlier than sixty (60) calendar days but no later than thirty (30) calendar days prior to the permit's expiration date. Failure to renew a vacation rental permit as prescribed in this section may result in the vacation rental permit being terminated.

5.44.055 Limitation on Number of Vacation Rentals.

A. The number of vacation rentals shall not exceed four percent (4%) of the total housing parcels containing completed developed housing units. This number shall not include licensed, permitted and/or entitled hotels and motels, in good standing with the City. This number shall be calculated yearly. Such vacation rental permits exceeding this number shall be rejected and not issued.

B. Vacation rental parcels shall not be located within five hundred (500) feet from another vacation rental, measured front door to door via a walking path within the public right of way. Such vacation rental permits shall be rejected and not issued. Notwithstanding, vacation rentals existing and in good standing with the City as of the effective date of this ordinance shall not be denied a Vacation Rental Permit renewal solely on this factor.

C. If the vacation rental exists within an Home Owners Association that prohibits same, such vacation rental permit shall be rejected and not issued.

5.44.060 Denial of a Vacation Rental Permit, appeal and fee.

A. An owner or agent shall be denied a Vacation rental Permit if:

1. Certificate for any unit that was issued to the same owner or agent has been revoked pursuant to Section 5.44.050, within 12 months of submitting the new application;

2. The vacation rental would cause the total housing parcels containing completed developed housing units to exceed four percent (4%).

3. The vacation rental is within five hundred (500) feet from another vacation rental, measured front door to door via a walking path within the public right of way. Notwithstanding, vacation rentals existing and in good standing as of the effective date of this ordinance shall not be denied a Vacation Rental Permit renewal solely on this factor.

4. A property owner for a single property has been found in violation of Item Number: 7.

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a. Two (2) noise complaints resulting in an administrative citation for the same property shall.
b. Two (2) violations of occupancy limits resulting in an administrative citation for the same property; or.
c. Three (3) complaints, including but not limited to noise complaints, occupancy complaints, trash complaints, etc. resulting in an administrative citation for the same property. Any violation of federal, state, or local law or regulations.

5. The owner has failed to pay the appropriate amount of the Transient Occupancy Tax for any property at any time during its ownership;

6. The owner has an active code compliance matter.

7. An applicant has had a prior Vacation Rental Permit for the same or any other unit revoked within the previous 12 calendar months.

8. Non-payment of applicable vacation rental fees.

9. The Owner has not taken steps to activate or move forward with the application for a period of 30 days.

10. In addition to any other grounds provided in this chapter, an application (including renewal application) for a vacation rental permit may be denied if use of the vacation rental unit has been, will be, or is apt to become any one (1) or more of the following. a. Prohibited by any local ordinance or by any state or federal law, statute, rule or regulation;
b. A public nuisance;
c. In any way detrimental to the public interest;
d. Prohibited by zoning laws and ordinances.

11. An application (including renewal application) for a vacation rental permit may also be denied on the grounds that the applicant has knowingly made a false statement in a material matter either in his/her/their application or in his/her/their testimony before the city manager or other body hearing such testimony.

12. Failure of a City inspection.

B. A filing fee as established by City Council resolution or any amendments thereto for an appeal of a denial of a Vacation Rental Permit shall be paid to the City at or prior to the time of the filing of such appeal. Provided, however, that no fee shall be greater than necessary to defer the cost incurred by the City in administering the provisions of this chapter. Any appeal of the denial of a Vacation Rental Permit filed without payment of the filing fee shall be deemed incomplete. If the owner appeals the decision, the appeal must be filed within 15 calendar days the City’s decision.

The hearing procedures shall be in accordance with Chapter 4.36.

5.44.070 Amendments to the Vacation Rental Permit.

A. Within 14 days of a change in property ownership or agency, or other material fact set forth in the annual registration, the owner or agent shall submit to the City an Item Number: 7.

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application for a new Vacation Rental Permit. The owner or agent shall also submit the required registration fee and comply with the City’s business license requirements.

B. Any change in the emergency contact person, or the individual’s telephone number or address shall be furnished to the City within seven days, and the Vacation Rental Permit and all certificates and permits required by this chapter shall be updated within 14 days.

5.44.080 Operational requirements and standard conditions.

A. The owner and agent shall ensure that the vacation rental unit complies with all applicable Federal, State and local laws, rules and regulations regarding fire, building and safety, health and safety, and all other relevant laws.

B. For new Vacation Rental Permits owner and/or agent shall allow the City to conduct an inspection of the entire structure and the exterior premises prior to issuance of Vacation Rental Permit of the property to ensure compliance with this chapter.

C. For renewed permits, the owner and/or agent shall allow the City to conduct an inspection of the entire structure and the exterior premises prior to issuance of the renewal of a Vacation Rental Permit of the property to ensure compliance with this chapter, no early than 60 days prior to the expiration of the Vacation Rental Permit.

D. For B and C above, the inspection shall be conducted to ensure that the vacation rental will not create conditions materially detrimental to the public health, safety and general welfare or injurious to or incompatible with other properties in the vicinity. Evaluation and inspection shall include, but not be limited to: noise monitoring system, landscape, fire hazards, vehicle parking, maintenance of improved surfaces, visual blight, structural hazards, fire/smoke/carbon monoxide alarms, and occupancy. Specifically with respect to pools or spas, such pools and spas must comply with all regulations in the California Swimming Pool Safety Act and state and federal applicable law. In addition, the pool or spa must comply with or be equipped with:

1. Legible sign posted at least 9”x 6”, “SWIM AT YOUR OWN RISK” visible from all doors leading to the pool area. Sign lettering size must be no less than 1 inch.

2. Telescoping rescue pole (can be a skimmer pole).

3. All doors leading to the pool areas must have an Exit Alarm with audible sound whenever opened and heard throughout the home. An Exit alarm device may not be installed lower than 60 inches from the floor. Exit Alarm means:
“devices that make audible, alarm sounds when any door or window, that permits access from the residence to the pool area that is without any intervening enclosure, is opened or is left ajar. Exit alarms may be battery operated or may be connected to the electrical wiring of the building.” The exit alarm may cause either an alarm noise or a verbal warning, such as a repeating notification that “the door to the pool is open”
*Paragraph 3 not applicable if fencing between the pool / spa and house that meets the provisions of an enclosure, or install a removable mesh fence that complies with the American Society for Testing and Materials (“ASTM”) F2286 Item Number: 7.

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4. All side gates leading into the pool area must have a working, self‐closing spring and a latching device at the height of 54 inches or more

5. Two of the following seven drowning prevention safety features:
a. An enclosure that meets the requirements of Government Code Section 115923 and isolates the swimming pool or spa from the private single-family home.
b. Removable mesh pool fencing that meets (ASTM) Specifications F2286 standards in conjunction with a gate that is self-closing and self-latching and can accommodate a key lockable device. c. An approved safety pool cover that meets all requirements of (ASTM) standard F134691.
d. A self-closing, self-latching device with a release mechanism placed no lower than 54" above the floor or each door providing direct access to the swimming pool or spa.
e. An alarm that, when placed in a swimming pool, will sound upon detection of accidental or unauthorized entrance into the water. The alarm shall meet and be independently certified to the ASTM Standard F2208 "Standard Specification for Residential Pool Alarms" which includes surface motion, pressure, sonar, laser, and infrared type alarms. A swimming protection alarm feature designed for individual use, including an alarm attached to a child that sounds when the child exceeds a certain distance or becomes submerged in water, is not a qualifying drowning prevention safety device. f. Other means of protection, if the degree of protection afforded is equal to or greater than that afforded by of the devices set forth above and has been independently verified by an approved testing laboratory as meeting standards for those devices established by the ASTM or the American Society of Mechanical Engineers (ASME).

E. D. No outdoor music, radios, musical instruments or other devices that produce or reproduce sound are allowed to be used outdoor at any time. Vacation rentals must comply with the noise regulations as set forth in Chapter 8.12 of this Code.

E. No. use of outdoor amenities and/or outdoor games or any outdoor activities that create noise between the hours of 10 p.m. and 8 a.m.

F. The owner and agent shall limit occupancy of the vacation rental unit to a specific number of occupants, as set forth in Table 5.44.081, unless a special event license has been issued by the City in accordance with the provisions of Section

5.44.080(M).

Table 5.44.081
Number of
Bedrooms
Total of Overnight
Occupants
Additional Daytime
Occupants
Total Daytime
Occupants
0-Studio 2 2 4
1 42 2 6
2 64 34 98
3 86 4 1210
Item Number: 7.

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4 108 54 1512
5 or more 1210 64 1814
* Overnight (10:01 p.m. – 6:59 a.m.)
**Daytime (7:00 a.m. – 10:00 p.m.)
G. The owner and agent shall limit the number of vehicles of overnight occupants at an amount not to exceed the number of designated on-site parking spaces. All persons shall comply with all applicable City parking regulations, including but not limited to Titles 4 and 10.

H. The owner shall cause to be installed proper trash bins for the proper removal of trash. Owner shall comply with all applicable sections of Chapter 8.04 pertaining to trash removal. Such bins shall be set out no earlier than 7:00pm on the day prior to trash collection day, and shall be retrieved and hid from public view no later than 7:00pm of trash collection day. The owner or agent must be available to take out the trash.

I. During the term that each vacation rental unit is rented, the emergency contact person and responsible person shall be available 24 hours per day, seven days per week for the purpose of responding to complaints made to the City regarding the condition, operation, or conduct of occupants of the vacation rental unit.

J. The owner and agent shall ensure that the occupants and guests of the vacation rental unit do not create unreasonable noise or disturbances, engage in disorderly conduct, or violate provisions of the municipal code, or State or Federal law, rule or regulation.

K. Prior to every use of the unit as a vacation rental unit, the owner or the owner’s agent shall: (1) obtain from the responsible person, the individual’s name, address, telephone number, and a copy of a valid government identification of the responsible person, license plate number, the state in which the vehicle is registered, and year, make and model of all vehicles used by all occupants of the unit, and any other information requested by the City manager; (2) provide a copy of the Good Neighbor Brochure to the responsible person; and (3) require such responsible person to execute a formal acknowledgement that he or she is legally responsible for compliance of all occupants and guests with all provisions of this chapter and the City’s municipal code. This signed acknowledgment shall be readily available upon request of any officer of the City responsible for the enforcement of this chapter.

L. Noise Monitoring System. Notwithstanding the regulations in Chapter 8.12, Owners must cause to be installed a noise monitoring system, which shall alert the owner/manager of any loud noises which are more than 70 decibels. Upon notification that any occupant or guest of the vacation rental unit has created unreasonable noise or disturbances, engaged in disorderly conduct, or committed violations of the municipal code or any State law, the owner, agent or emergency contact person shall contact the responsible person immediately and provide the individual with a warning, or take action to terminate the occupancy.

Item Number: 7.

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M. Complaints. Notwithstanding the regulations in Chapter 8.12, in the event the City receives a complaint related to noise, trash, or other violation of this chapter, owner, agent or emergency contact person shall contact the responsible person immediately and provide the individual with a warning, or take action to terminate the occupancy. In addition, the Owner or agents must contact the occupant respond physically to the property within thirty (30) minutes of notice of the complaint. Failure of the owner, agent or responsible person to respond to calls or complaints regarding the condition, operation, or conduct of occupants of the vacation rental unit in accordance with the provisions set forth in this chapter, shall be grounds for imposition of penalties as set forth in this chapter.

N. Prior to rental of a vacation rental unit, the owner of the vacation rental unit, or agent, shall post a framed copy of the Vacation Rental Permit and the following, in a conspicuous place within the unit:

1. The maximum number of overnight occupants and the maximum number of daytime occupants permitted to stay in the unit;

2. The trash pick-up day and applicable rules and regulations pertaining to leaving or storing trash or refuse on the exterior of the property;

3. Notification that the amplification of music outside of the dwelling unit is a violation of this chapter;

4. Notification that the occupant shall comply with the City’s parking, driveway and loading standards, and the number of vehicles that are permitted for the unit;

5. Notification that the occupant may be cited or fined by the City and that the owner, or owner’s agent, may immediately terminate the occupancy for creating a disturbance or for violating other provisions of the City’s municipal code;

6. Notification that failure to conform to the occupancy requirements of the vacation rental unit is a violation of this chapter.

O. The use of a vacation rental unit shall not violate any applicable conditions, covenants, or other restrictions on real property.

P. The owner and agent shall comply with all provisions of Chapter 3.20 of the municipal code concerning transient occupancy taxes. The monthly return required by Chapter 3.20 shall be filed each month regardless of whether the unit was rented during that month.

Q. A copy of the Vacation Rental Permit shall be mailed or delivered to all property owners shown on the last equalized county assessment roll and all occupants of each dwelling unit within 300 feet of the vacation rental unit. Such information shall be provided at least annually or within 14 days of any change of information as required pursuant to this chapter.

R. The owner or agent shall comply with all of the following in any and all advertisement in any and all advertising media of the vacation rental unit:

1. Maximum occupancy

2. Requirements for compliance with the City’s noise ordinance and outdoor activity standards and regulations

3. Maximum number of cars allowed
Item Number: 7.

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4. A statement that the vacation rental occupants shall respect the neighbor’s privacy and peaceful enjoyment of their land

5. The applicable rate of the City’s transient occupancy tax

6. A photo of the front of the vacation rental

7. The Business License number must be clearly and prominently displayed in the first line of the property description and in the following format “City of Desert Hot Springs Vacation Rental Permit Number”
S. The owner must include in the rental or use agreement that two (2) noise complaints shall result in an immediate eviction of the occupants.

T. The City Manager shall have the authority to impose additional standard conditions, applicable to all vacation rental units, as necessary, to achieve the objectives of this chapter. A list of all such additional standard conditions shall be maintained and on file in the office of the City Clerk.

5.44.090 Complaints.

Any person may report unreasonable noise, disturbances, disorderly conduct or violations of the municipal code at a rental unit, to the City’s Code Compliance Department or Police Department.

5.44.100 Audit.

Each owner, agent and/or emergency contact person shall provide access to each vacation rental unit and any records related to its use and occupancy to the City Manager at any time during normal business hours, for the purpose of inspection and/or audit to determine that the objectives and conditions of this chapter are being fulfilled.

5.44.110 Violations and penalties.

A. Any person who uses, or allows the use of, residential property in violation of the provisions in this chapter may be issued an administrative citation provisions of Chapter 4.24 of the municipal code.

B. Notwithstanding the fines in Chapter 4.24, the following fines shall apply for violations of this Chapter:

1.General violations (Occupancy/Noise/Parking).
a. First violation: one thousand dollars ($1,000.00);
b. Second violation: two thousand dollars ($2,000.00);
c. Third violation: three thousand dollars ($3,000.00).

2.Operating a vacation rental Without a Valid Vacation rental Permit. a. Five thousand dollars ($5,000.00);
Item Number: 7.

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b. The City shall collect past Transient Occupancy Tax for a period in accordance with state law.

C. Immediate Summary Suspension of Vacation Rental Permit.

1. Two (2) noise complaints resulting in an administrative citation for the same property shall result in an immediate summary suspension of the Vacation Rental Permit for a period of six (6) months, subject to any hearing requested pursuant to this subsection.

2. Immediate hazardous conditions, including man-made and naturally causing hazardous conditions.

3. Any criminal activity.

2. Two (2) violations of occupancy limits resulting in an administrative citation for the same property shall result in an immediate summary suspension of the Vacation Rental Permit for a period of six (6) months, subject to any hearing requested pursuant to this subsection.

3. Three (3) complaints, including but not limited to noise complaints, occupancy complaints, trash complaints, etc. resulting in an administrative citation for the same shall result in an immediate summary suspension of the Vacation Rental Permit for a period of six (6) months, subject to any hearing requested pursuant to this subsection.

4. For summary suspension of Vacation Rental Permit, the City shall a. Prepare and serve the Notice of Suspension. The notice shall substantially include all of the following information:
i. The name of the Vacation Rental Permit holder;
ii. The street address or definite location where the violation(s) occurred;
iii. The code section(s) violated;
iv. A description of the conditions or actions which warrant suspension, modification or revocation of the Vacation Rental Permit; v. The action proposed (i.e., summary suspension)
vi. Instructions to request a hearing, which must be made within ten (10) days of the date of issuance of the summary suspension.

5. Notice to Request a Hearing. Within 10 days of the date of issuance of the summary suspension, the Owner or Agent may request a hearing before the City Manager or his/her designee as Hearing Officer on same. The request must be in writing and must be address to:

City Manager
11999 Palm Drive
Desert Hot Springs, CA 92440

6. If the Owner or Agent does not request a hearing on the summary suspension, the suspension shall be for a period of six (6) months, and the owner or agent shall be deemed to have waived his/her rights to a hearing.

7. If the Owner or Agent does request a hearing, the procedural requirements, as well as the substantive requirements in Subsection D below shall be followed and/or applied.

Item Number: 7.

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D. Revocation of Vacation Rental Permit
The City may revoke a vacation rental permit on any of the following grounds:

1. The vacation rental would cause the total housing parcels containing completed developed housing units to exceed four percent (4%).

2. The vacation rental is within five hundred (500) feet from another vacation rental, measured front door to door via a walking path within the public right of way.

3. A property owner of a vacation rental unit has been found in violation of any federal, state or local law.

4. The vacation rental unit has been found in violation of any federal, state or local law.

5. The vacation rental owner has failed to pay the appropriate amount of application taxes, including Transient Occupancy Tax or TBID for any property at any time during its ownership;

6. In addition to any other grounds provided in this chapter, the City may revoke a vacation rental permit if use of the vacation rental unit has been, will be, or is apt to become any one (1) or more of the following. a. A public nuisance;
b. Prohibited by zoning laws and ordinances.

The City shall use the following procedures to
revoke a vacation rental permit.

1. Duty to prepare and serve notice of action recommendation.

Upon reaching the determination that a specific violation of this Chapter warrants modification or revocation of the Vacation Rental Permit, the City shall prepare and serve a written notice of action recommendation upon the subject permit or license holder.

2. Contents of notice of action recommendation.

The notice of action recommendation should substantially include all of the following information:
a. The name of the Vacation Rental Permit holder;
b. The street address or definite location where the violation(s) occurred; c. The code section(s) violated;
d. A description of the conditions or actions which warrant modification or revocation of the Vacation Rental Permit;
e. The action proposed (i.e., modification or revocation of the Vacation Rental Permit);
f. If applicable, a description of any prior action taken by the City to gain compliance with the code with regards to the subject violation(s); Item Number: 7.

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g. A description of the procedures involved in taking the proposed action, including the license or permit holder’s right to attend the hearing on the proposed action; and
h. The name, title and telephone number of the official making the recommendation.

3. Service of notice of action recommendation.

The Code Compliance Officer shall cause a copy of the notice of action recommendation to be provided to the Vacation Rental Permit holder by causing a copy of the notice of action recommendation to be delivered to the Vacation Rental Permit holder personally or by causing a copy to be delivered to the Vacation Rental Permit holder by certified mail, postage prepaid, return receipt requested, and addressed to Vacation Rental Permit holder at the address shown on the permit or license.

4. Proof of service of notice of action recommendation.

Proof of service of the notice of action recommendation shall be certified at the time of service by a written declaration under penalty of perjury executed by the persons effecting service, declaring the date and manner in which service was made. The declaration shall be affixed to a copy of the notice.

5. City Manager as Administrative Hearing Officer.

The City Manager or his/her designee shall act as the Hearing Officer and conduct all hearings pursuant to the procedures set forth in this chapter, unless otherwise provided under any other applicable provision of the municipal code and/or any applicable statute, rule, code or regulation.

6. Duties of the City Manager, or his/her designee, as Hearing Officer.

The City Manager, or his/her designee, as Hearing Officer shall review all evidence, documents, and written testimony and hear all oral testimony submitted by all interested parties at or before the scheduled administrative hearing and render all decisions and findings in writing to the Vacation Rental Permit holder with a duplicate copy to the issuing official. The City Manager, or his/her designee, as Hearing Officer may accept, modify or reject the findings and determinations supporting the recommendation.

7. Limitations on authority of City Manager, or his/her designee, as Hearing Officer.

The City Manager, or his/her designee, as Hearing Officer’s authority to hear and consider the notice of action recommendation shall be limited to only those matters within his or her subject matter jurisdiction. The City Manager, or his/her designee, as Hearing Officer shall consider at the administrative hearing only those issues which are relevant to the issues of the hearing. The City Manager, or his/her designee, as Hearing Officer shall not have the authority to waive any requirements of the municipal code and/or any applicable statutes, rules, codes or regulations.

Item Number: 7.

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8. Scheduling of administrative hearing—Notice of administrative hearing.

As soon as practicable, but allowing sufficient time for providing notice of the hearing, the City Manager, or his/her designee, as Hearing Officer shall fix a date, time and place for the hearing of the appeal and shall instruct the issuing official of the same.

The Code Compliance Officer shall prepare a notice of administrative hearing (hearing notice), which shall be in substantially the same form as follows:

You are hereby notified that a hearing will be held before the City Manager, or his/her designee, as Hearing Officer at ____________ on the ____ day of ________, ____ at the hour of ____ upon the Notice of Action Recommendation served upon you. 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.

9. Service of hearing notice.

The Code Compliance Officer shall cause a copy of the hearing notice to be provided to the Vacation Rental Permit holder either by causing a copy of the notice to be delivered to such person(s) personally or by causing a copy of the notice to be delivered by certified mail, postage prepaid, return receipt requested, and addressed to the Vacation Rental Permit holder at the address shown on the Vacation Rental Permit.

10. Proof of service of hearing notice.

Proof of service of the hearing notice shall be certified at the time of service by a written declaration under penalty of perjury executed by the persons effecting service, declaring the date and manner in which service was made. The declaration shall be affixed to a copy of the hearing notice and retained by the Code Compliance Officer.

11. Code Compliance Officer’s report.

A. The Code Compliance Officer shall prepare an administrative hearing packet for the City Manager, or his/her designee, as Hearing Officer to review prior to the hearing. The packet shall include a copy of the notice of action recommendation, if applicable, and briefing, which should include a description of the violations and any actions taken by the Vacation Rental Permit holder subsequent to the service of the notice..

12. Admissibility of evidence at hearing.

The City Manager, or his/her designee, as Hearing Officer shall hear any evidence offered in support of or in protest of the proposed action provided such evidence is relevant to the issues of the hearing. The City Manager, or his/her designee, as Hearing Officer has the authority to determine the relevance of any evidence to the hearing and the authority to exclude unduly repetitious and cumulative evidence, regardless of its relevancy. The City Manager, or his/her designee, as Hearing Officer shall not be limited by the technical rules of evidence.

Item Number: 7.

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13. Rights of parties at hearing.

Any party with a legal interest in the subject permit who appears at the hearing shall have the following rights:

A. To call and examine witnesses;
B. To introduce documentary and physical evidence;
C. To cross-examine opposing witnesses;
D. To impeach any witness regardless of which party first called the witness to testify;
E. To rebut evidence; and
F. To be represented by anyone who is lawfully permitted to do so.

14. Failure to attend hearing.

If the Vacation Rental Permit holder fails to attend the scheduled hearing, the hearing will proceed without the Vacation Rental Permit holder and he or she will be deemed to have waived his or her rights to be orally heard at the hearing.

15. Duty to prepare and serve notice of decision—Final decision.

The City Manager, or his/her designee, as Hearing Officer shall cause to be prepared and served a written notice of decision upon the Vacation Rental Permit holder following the hearing. The decision of the City Manager, or his/her designee, as Hearing Officer shall be final.

16. Form of notice of decision.

The notice of decision shall contain a brief summary of the evidence considered, findings of fact, a determination of the issues presented, and the effective date of the decision.

17. Time for and method of service of notice of decision.

The notice of decision shall be served upon the Vacation Rental Permit holder within 30 days from the date the hearing is deemed closed. The notice of decision shall be served either by causing a copy of the notice to be delivered to the Vacation Rental Permit holder personally or by causing a copy of the notice to be delivered to Vacation Rental Permit holder via certified mail, postage prepaid, return receipt requested, and addressed to Vacation Rental Permit holder at the address shown on the Vacation Rental Permit.

18. Proof of service.

Proof of service of the notice of decision shall be certified at the time of service by a written declaration under penalty of perjury executed by the persons effecting service, declaring the date and manner in which service was made. The declaration shall be affixed to a copy of the notice of decision and shall be retained by the Code Compliance Officer.

Item Number: 7.

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19. Effective date.

The effective date of the decision and order of the City Manager, or his/her designee, as Hearing Officer shall be as stated therein.

20. Expedited judicial review.

Any appeal of an administrative determination by the City Manager, or his/her designee, as Hearing Officer involving the modification or revocation of a permit, license or other entitlement pertaining to expressive conduct protected by the State or Federal Constitution is eligible for expedited judicial review pursuant to the applicable Code(s) of Civil Procedure.

21. Attorney’s fees.

The prevailing party in any 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 any such proceeding. In no 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 proceeding.

E. The remedies provided for in this section are in addition to, and not in lieu of, all other legal remedies, criminal or civil, which may be pursued by the City to address any violation of this code or other public nuisance.

F. Public Nuisance. In addition to any and all rights and remedies available to the city, it shall be a public nuisance for any person or entity to commit, cause or maintain a violation of this chapter, which shall be subject to the applicable provisions of this Municipal Code.

G. 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.

5.44.120 Immediate health and safety threats.

Nothing in this chapter shall limit the City’s ability to inspect properties and issue citations for property-related conditions that may constitute an immediate health or safety threat, including, but not limited to, Sections 4.16.010, 4.40.040 and 15.48.010 of the City’s code.

5.44.130 Requirements not exclusive.

The requirements of this chapter shall be in addition to any license, permit, or fee required under any other provision of the City’s municipal code. The issuance of any Vacation Rental Permit shall not relieve any person or entity of any obligation to comply with any and all other provisions of the City’s municipal code.

Item Number: 7.

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Section 3. ENVIRONMENTAL FINDINGS.

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; and
Section 4. 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, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 5. GENERAL PLAN CONSISTENCY FINDINGS
The City Council finds this amendment is consistent and compatible with the General Plan.

Section 6. GENERAL FINDINGS
The City Council finds this Ordinance is not detrimental to the public interest, health, safety, convenience, or welfare of the City.

Section 7. 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 8. 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 9. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Item Number: 7.

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Section 10. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]
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:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
____________________________________
Jennifer A. Mizrahi, City Attorney
Item Number: 7.

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SR-23-222
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: City Manager
Prepared by: Roberta Crncic, Recreation and Community Services Director Subject: Purchase New Cardiovascular Fitness Equipment for the Desert Hot Springs Health and Wellness Center
RECOMMENDATION:

Authorize the City Manager to purchase new fitness equipment from Growth Fitness Design for the Desert Hot Springs Health and Wellness Center Located at 11-750 Cholla Drive in the amount not to exceed $100,000.00.

BACKGROUND:

As part of our commitment to providing our residents with a high-quality fitness center and enhancing their overall experience, we have identified a need to upgrade our current cardiovascular fitness equipment.

The current cardiovascular fitness equipment has been in use since 2012 and several machines are showing signs of wear, have limited functionality, or no longer work. The average lifespan of cardio equipment is 7 to 10 years. Upgrading our cardio equipment will contribute to member satisfaction by offering a modern range of exercise equipment. Newer equipment also comes with advanced safety features and technology, reducing the risk of injuries and accidents during workouts.

Based on the current status of the equipment, Staff identified the need to purchase and replace the following list of equipment:

Cardiovascular Equipment:
 (4) Treadmills
 (2) Recumbent Bikes
 (1) Stationary Bike
 (2) Ellipticals
 (2) Stride Trainers
 (1) Stair Climber or Arm Cycle
While there is an upfront cost to purchasing new equipment, we will save on ongoing maintenance costs associated with older, less reliable machines. Many parts are no longer available or in production due to the current age of the existing equipment. A modern well-equipped fitness center Item Number: 8.

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SR-23-222
will likely attract new members and encourage existing members to continue their memberships. The proposed purchase of new cardio fitness equipment aligns with our mission to provide outstanding health and wellness services to our community. This investment will yield substantial benefits in terms of member satisfaction and overall facility safety.

DISCUSSION:

Staff requested proposals from qualified vendors and received two responsive proposals for the replacement of equipment. Based upon pricing, availability, quality, and warranty, staff selected Growth Fitness Design as the preferred vendor for the replacement equipment. Growth Fitness Design demonstrated competitive pricing, ensured reliable and expedited availability of the equipment, showcased a commitment to high-quality standards, and provided an extensive warranty.

The total cost for the replacement equipment is not to exceed $100,000.

The new equipment will come with a robust warranty as outlined below:
 Frame - 7 years
 Drive Motor (Treadmill) – Lifetime
 Parts – 3 years
 Wear Items – 90 days
The existing cardio equipment that is in working order, will be donated to the Desert Hot Springs Senior Center. The cardio equipment will be a valuable addition to the facility and promote health and fitness among seniors.

FISCAL IMPACT:

Funding for this purchase in the amount of $100,000 has been appropriated in the Health & Wellness Center Fund (Account No. 211-5030-41-56-0000) in the FY 2023-24 Adopted Budget.

ATTACHMENTS:
1) Growth Fitness Design Proposal
2) Out-Fit Proposal
Item Number: 8.

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Fitness Center
Update/Upgrade Proposal V3
July 20th, 2023
City of Desert Hot Springs
.
.Roberta Crncic

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Item Number: 8.

MAIN CARDIO .

Option A

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Item Number: 8.

Matrix Cardio with“ Touch” Display Consoles
2 Endurance Recumbent Cycles
1 Endurance Upright Cycles
4 Endurance Treadmills w/ Touch “XL” Consoles
2 Endurance Ellipticals
2 Performance Ascent Trainers
Includes 3 Year Warranty

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Item Number: 8.
“Touch” & “Touch XL” Display Consoles

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Item Number: 8.

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Item Number: 8.

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Item Number: 8.

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Item Number: 8.

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Item Number: 8.

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Item Number: 8.

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Item Number: 8.

Option A Cost
MSRP $174,250.00 (Plus, shipping, Installation & Tax)
Discount (-35%) $-60,987.50
Sub Total $113,262.50
Sales Tax (7.75%) $8,777.84
Freight $5,185.00
Installation / Removal Old Equip. $1,500.00
Total $128,725.34

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Item Number: 8.

MAIN CARDIO .

Option B

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Item Number: 8.

Matrix Cardio with “Premium LED” Display Consoles
2 Endurance Recumbent Cycles
1 Endurance Upright Cycle
4 Endurance Treadmills
2 Endurance Ellipticals
2 Performance Ascent Trainers

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Item Number: 8.

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Item Number: 8.

Option B Cost
MSRP $122,340.00 (Plus, shipping, Installation & Tax)
Discount (-35%) $-42,819.00
Sub Total $79,521.00
Sales Tax (7.75%) $6,162.87
Freight $5,185.00
Installation / Removal Old Equip. $1,500.00
Total $92,368.87

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Item Number: 8.

ADDITIONAL CARDIO .

Upper Body Ergometers

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Item Number: 8.

Upper Body Ergometer (Option A)
1 SportsArt UB521M Bi-Lateral Upper Body Ergometer

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Item Number: 8.

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Item Number: 8.

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Item Number: 8.

Option A UBE Cost
MSRP $5,795.00 (Plus, shipping, Installation & Tax)
Discount $1,200.00
Sub Total $4,595.00
Sales Tax (7.75%) $356.11
Freight $400.00
Assembly and Installation $150.00
Total $5,501.11

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Item Number: 8.

Upper Body Ergometer (Option B)
1 PhysioMax Total Body Exerciser Upper Body
Ergometer and Recumbent Bike

Page 926 of 987 ends

Item Number: 8.

Upper Body Ergometer (Option B)

Page 927 of 987 ends

Item Number: 8.

Option B UBE Cost
MSRP $5,495.00 (Plus, shipping, Installation & Tax)
Discount $1,000.00
Sub Total $4,495.00
Sales Tax (7.75%) $348.36
Freight $400.00
Assembly and Installation $150.00
Total $5,393.36

Page 928 of 987 ends

Item Number: 8.

Upper Body Ergometer (Option C)
1 Fluid Exercise Upper Body Ergometer

Page 929 of 987 ends

Item Number: 8.

Upper Body Ergometer (Option C)

Page 930 of 987 ends

Item Number: 8.

Upper Body Ergometer (Option C)

Page 931 of 987 ends

Item Number: 8.

Option C UBE Cost
MSRP $3,995.00 (Plus, shipping, Installation & Tax)
Discount $500.00
Sub Total $3,495.00
Sales Tax (7.75%) $270.86
Freight $250.00
Assembly and Installation $150.00
Total $4,165.86

Page 932 of 987 ends

Item Number: 8.

David Shaw
Mobile 949-812-8631
[email protected]

Page 933 of 987 ends

Item Number: 8.
« Quote 0 UT- F I1: Create Date Number
FitnessEquipmentfora HealthyLifestyle 3,30,2023 50593
Out-Fit Prepared By:
791Chambers Lane Christopher Eyre S”'te 130 ceyre@out-?t.net Simi Valley, CA 93065 t. 310.410.1200
emTb‘ Ship To
City of DsertHot Springs — Community Center Roberta Crncic 11999 Palm Dr City of Desert Hot Springs - Community Center Desert Hot Springs CA 92240 11750 Cholla Dr
Desert Hot Springs CA 92240
Phone Phone
(760) 329-6411
Desired Delivery Date Est. Lead Time Sales Consultant
7/28/2023 4-6 Weeks
Vendor Item Description
PaymentTerms
Christopher Eyre
Ext.Price
Payment upon Order
UnitPrice
Precor (Better)
2 Precor USA RBK635-P31-BP Recumbent Cycle - P31 console with advanced LED 2,201.33 4,402.66 display (Black Pearl Frame)
1 Precor USA UBK635-P31-BP Upright Cycle - P31 console with advanced LEDdisplay 2,056.00 2,056.00 (Black Pearl Frame)
4 Precor USA TRM631-P31-BF’ Treadmill- P31 console with advanced LEDdisplay 4,261.33 17,045.32 (Black Pearl Frame)
2 Precor USA EFX635-P31-BP Elliptical635 Crossramp, MovingArms - P31 console 4,564.00 9,128.00 with advanced LEDdisplay (Black Pearl Frame)
2 Precor USA AMT835OS-P31- Precor Adaptive MotionTrainer- Open Stride - P31 6,829.33 13,658.66 BP console (Black Pearl Frame)
1 Core Health & 94660-MINTPO HIITUBE Upper Body Ergometer 2,213.33 2,213.33 1 Core Health & 718-5637-26 HIITUBERamp Kit 205.33 205.33 Est. Delivery for Precor $2574.66
StarTrac (Good)
1 Core Health & 9-4660-MINTPO HIITUBEUpper Body Ergometer 2,213.33 2,213.33 1 Core Health 8. 718-5637-26 HlITUBE Ramp Kit 205.33 205.33 4 Core Health 8. 9-36130~4TR-110- 4 Series TreadmillWith 10”Touch Display 2,870.67 11,482.68 Out-Fit Proudly Represents Precor, FPD, Reaxlng and morel page 1 of 2 Item Number: 8.

Page 934 of 987 ends

Q t O UT- FI1: Create Date Num
b
e
FitnessEquipment fora HealthyLifestyle
Out-Fit
791 Chambers Lane
Suite 130
SimiValley, CA 93065
t. 310.410.1200
BillTo
City of Desert Hot Springs - Community Center
11999 Palm Dr
Desert Hot Springs CA 92240
Roberta Crncic
City of Desert Hot Springs - Community Center
11750 Cholla Dr
Desert Hot Springs CA 92240
Description UnitPrice Ext.Price
15A-10-TS-SOBLK
1 Core Health & 9-3140-KINTPO 3 SERIES UPRIGHT BIKEW/LCD - BLACK 1,893.33 1,893.33 2 Core Health & 9-4080-4CT-10-TS- 4 Series Cross Trainer wI10" Touch Display — Black 2,556.00 5,112.00 GOBLK
2 Core Health & 9-3150-KINTPO S SERIES RECUMBENTBIKE,W/LCD - BLACK 2,248.00 4,496.00 2 Core Health & 9-6160-8vs-LCD—6 9-6160—8vs-LCD-60BLK| 8 Series Versastider w/LCD — 6,496.00 12,992.00

OBLK BLK
Est. Delivery for Star Trac $1182
1 IDA Installation, Delivery and Assembly 4,400.40 4,400.40 (IDApricing based on ground ?oor/elevator access and
~ during normal business hours only, subject to change
based on site survey)
‘Out-Fit does not hang or attach any wallmounted items
Subtotal 91,504.37
Freight (From Factory) 0.00
Tax (7.75%) 6,750.56
Total $98.254.93
Quote expires 30 days from the Quote date. Customer's signature and payment per terms above required to process order unless otherwise speci?ed.

Buyer agrees to prices, speci?cations, standard terms 8. conditions of sale. Out-Fit‘s standard terms and conditions can be viewed at http://bit.Iy/outfitTOS. Allorders are to be treated as custom and made to order. Allorders are FOB from Out-Fit's facility. Freight, Delivery and Installation quotes are estimates and are subject to change as a result of a site survey. Additional fees may apply.

Signature Date
Print Name Title
Out-Flt Proudly Represents Precor, FPD.Reaxing and moral page2 of 2 Item Number: 8.

Page 935 of 987 ends

4 I
t S SERIES
speci?callyfor those looking for solid, commercial—quality operation at an exceptional value, our 8 Series doesn’t cut corn rs.Featuring all of Star Trac’s popular user-focused features like adjustable personal fans, easy-up and wrap-around seat adj sts and dual~p|atform pedals, the S Series gives you many of the features you’d never expect to find for the price. And then itgoesbeyond with components like our large LED display with oversized buttons and text, providing the easiest and most Design
intuitive operation available.
l

MANAGEMENT

SOLUTIONS
ECOFITE’asset management solutions
let you see beyond the basics of
which machines are most used — you'll
get insights that show you if you
should rotate machine placements
to improve maintenance scheduling,
identify and plan preventative
maintenance to ensure equipment is
available to members and much more.
corehealt ndfitness.com

PERSONAL VIEWING

SCREEN (PVS)
Allof our S-Series cardio products are
pre-wired to accept an add-on 15.6"
HD Personal Viewing Screen. The PVS
mounts seamlessly to the product,
and an integrated control keypad
inserts into the front of the cardio
display for easy control.

Item Number: 8.

Page 936 of 987 ends

STAR TRACE

S-RBX RECUMBENT BIKE

BASE FEATURES
HEARTRATE MEASUREMENT SYSTEM Telemetry and contact HR
CONTROLS Console
BOTTOM BRACKET Morse Taper
PEDALS One-sided, self-leveling platform with removable ratcheting strap and morse taper mounting SEAT ADJUSTMENT Wrap around adjuslment bar for ease of use DISPLAY Fixed LED
ACCESSORIES Multiple home and accessory holders. pre-wired Ior PVS entertainment MAXUSER WEIGHT JSOIIJ(159kg)
DRIVE SYSTEM Allemator
ELECTRICAL REQUIREMENTS LED is self-generating: PVS option requires 12V/5Amp power supply START UP WATTS 20
ADDITIONAL FEATURES Walk-thm design: foldoown armrests alleviate shoulder tension and allow for a more relaxed poslure MATERIAL Powder Coaied Steel Frame
CUSTOMIZABLE Paint color options approval required
STANDARD COLOR OPTIONS Matte Black (-60)
LENGTH
“
66in [‘l68cm)
7” ‘V
WIDTH 26in (66r:m)
HEIGHT 53in (135cm)
PRODUCT WEIGHT ‘IB5|bs (84kg)
SHIPPING DIMENSIONS 75in X 22in X 33in (191cm X 57cm X 54cm) SHIPPINGWEIGHT 208|bs (95kg)
Q-3140-KINTPD
Item Number: 8.

Page 937 of 987 ends

:s'rAn 'rnAc:»

S-UBX UPRIGHT BIKE
l ] EASE FEATURES
HEART RATE MEASUREMENT SYSTEM Telemetry and Contact HR
CONTROLS Console
BOTTOM BRACKET Morse Taper
PEDAL5 One»sidel'.1. self-leveling platform with removable ratcheting strap and morse taper mounting SEAT ADJUSTMENT Easy up ratcheting seat for ease of use DISPLAY’ ‘H 7 Fixed LED
ACCESSORIES Multiple bottle and accessory holders.pre-wired for PVS entertainment MAXUSERWEIGHT 350|b (159kg)
DRIVE SYSTEM Alternator
ELECTRICAL REQUIREMENTS LED is self-generating: PVS option requires 12V/5 Amp power supply START UP WATTS 20
ADDITIONALFEATURES Elbow pads support multiple riding positions in comlorl MATERIAI. Powder Coated Steel Frame
CUSTOMIZABLE Paint color options approval required
STANDART3 COLOR OPTIONS Matte Black (-60)
LENGTH
'
46ln (117crn)
WIDTH 23in (586m)
HEIGHT 57in (145cm)
PRODUCT WEIGHT 141|bs (64kg)
SHIPPING DIMENSIONS 48in x 22In x 34in (122cm x 57cm x 86cm) SHIPPING-WEIGHT 157|bs (71kg)
9-3140-KINTPD
Item Number: 8.

Page 938 of 987 ends

CORE
HEALTH 8: FITNESS
5taIrMaster'
SCI-IIII/"VA!

NAUTILUS

STAR TR/ID

THRIIIWDEIWN
Item Number: 8.

Page 939 of 987 ends

D STAR 'rnAc~
4 SERIES
The 4 Series cardio line from Star Trac is the perfect
solution for the hospitality and muIti~housing markets.

With premium display options, quick select adjustment
keys and optional personal viewing screen, the 4 Series provides smallerfacilities with the look and performance of a full commercial product.
4-CT CROSS TRAINER

BASE FEATURES
STEP UP HEIGHT 11in (2Bcm)
STRIDE TYPE Fixed
STRIDE LENGTH 20in (510711)
HEART RATE MEASUREMENTSVSTEM Telemetry and Contact HR
MOVEMENT ARMS Standard upright design
CONTROLS On Display
DISPLAY Choose from Full Color 10“ LCD.10" Capacitive Touchscreen or 15" OpenHutJ Touchscreen ACCESSORIES Bottle holder, pre-wired for PVS entertainment, USB port MAXUSER WEIGHT 450|b (204kg)
DRIVE Front drive
RESISTANCE SYSTEM Alternator
ELECTRICALREQUIREMENTS LCD is self-generating; touch screen and PVS options require 12V/5 Amp power supply START UP WATTS 20
ADDITIONAL FEATURES Step up assist —MATERIAL Powder Coated Steel Frame CUSTOMIZAELE Paint color options approval required
STANDARD COLOR OPTIONS 60 Black
LENGTH
-
76in (193 cm)
WIDTH
‘
30in (76 cm)
HEIGHT
A
72in (132 cm)
PRODUCT WEIGHT 273lbs(124 kg)
SHIPPING DIMENSIONS 79in X 25in X 38in (201cm X 63cm X 97cm) SHIPPING WEIGHT (BOXED) 309Ib5 (140kg)
l I sKus PVS sKus
7000489-20 BLACK PVS, PAL TUNERw/ 4—TRMOUNT
700-D489-74 PVS.PALTUNER w/ 4-TR MOUNT
9-4080-4CT-10|N-BOBLK 700-0490-20 BLACK PVS.ATSC/NTSC TUNER w/ 4-TR MOUNT 9-4050-4CT-10-TS-GOEILK 700-0490-74 PVS. ATSC/NTSC TUNER w/ 4~TRMOUNT 9-4080-4CT-15-ATSC»6OBLK 700-0491-20 BLACK PVS, PAL TUNER w/ 4-CT/UB/RB MOUNT 9-40&o.4(_‘,T.15.PAL-GOBLK 700-0491-74 PVS, PAL TUNERw/ 4-CT/UB/RB MOUNT 70043492-20 BLACK PVS.ATSC/NTSC TUNER w/ 4-CT/UB/RB MOUNT 700~O492-74 PVS, ATSC/NTSC TUNER w/ 4-CTIUB/RBMOUNT
Item Number: 8.

Page 940 of 987 ends

SEAR TRAGCONSOLES
DISPLAY 4 Series 15" Touchscreen 4 Series 10” Touchscreen 4 Series 10“ DISPLAY TVPE Capacitive Touchscreen Capacitive Touchscreen Full Color LCD Display, non-touch

MULTI-LANGUAGE OPTIONS
English. German. Spanish, Dutch.

Portuguese. French, Italian.Swedish.

Russian, Finnish, Danish, Chinese,
Japanese, Turkish.Polish, Russian.

Hebrew. Czech, Slovak
English. German. Spanish. Dutch.

Portuguese. French, Italian, Swedish.

Russian, Chinese, Japanese, Polish
English, German, Spanish, Dutch.

Portuguese. French.Italian.Swedish.

Russian. Chinese, Japanese, Polish
PFIE-PROGRAMMABLE WORK OUTS Yes. 20+ Yes. 20+ Yes. 20+
QUICK START OPTIONS Yes. single button start options Yes.single button stan options Yes, single button start options TVTUNER ENABLED Yes (Global TV tuner options) No No
ETHERNET AND WIFI ENABLED Yes No No
TRACKING/APP Yes N0 N0
ELUETOOTH HEADPHONES Yes No No
ELUETOOTH HEART RATE Yes N0 N0
APPLE GYMKIT/SAMSUNG GALAXV Yes No NO WATCH CONNECTIVITY RUNTV INTEGRATED WORKOUT VIDEOS Yes No No
INTEGRATEDWEB-BASED APPS Yes No No
CUSTOMIZAELE HOME SCFIEEN Yes No No
HDMI STREAMING Yes: cables not included No No
USB port for software updates and USB port lor software updates and USB port tor software updates and USB device charging; cables not included device charging: cables not included device charging; cables not included RFID Optional No No
IPTVISET TOP BOX COMPATIBLE Yes, add-on accessories required No No ANT+ FOR GROUP DISPLAY Yes No No
PERSONAL FAN Yes. programmable auto start Yes. programmable auto start Yes. programmable auto start ASSET MANAGEMENT Eco?t Optional Eco?t Optional Ecofit Optional TABLET HOLDER Integrated front integrated front Integrated lront PVS No No Optional
800/900 MHZ RECEIVER No No No

PVS FEATURES
PVS 4 Series
DISPLAY TYPE 15.6" HD LED
RESOLUTION 1366 X 758
CoreHealth&Fitnessismorethangymequipment.weoilerinnovativesolutionsforallyourlacility needs.Thisiswhywe've brought togetherfiveoi the most recognizable?tness brandsto ensureourcustomers can offertheirmembersauthentic Iitnessexperiences.Whetherworkingwith us directlyor throughour partners and distributorsworldwide. we providethe highestqualityequipment backedbya serviceand supportteamthatwillalways go theextramileto get youwhatyouneed, when you needit.Partner withus and see howourCoreValuesmotivateoureverydecision.

TUNER OPTIONS 1) ATSC/NTSC/QAM
2) PAL/DVB—T/DVB-C
DIGITAL AND ANALOG SUPPORT Yes
SIGNAL INPUTS Coax, HDMI
INPUT RF SIGNAL RANGE -70 dBm[Min) ~ » 10 dBm[Max)
CLOSE CAPTION Yes

HEADFHONE JACK CORE

HEA TH & FITNESS

3.5mm on Display
StalrMastEr
S<l-IVVINN
NAU ruus
sum TRAC

TI-IHDWDIIIWN
Item Number: 8.

Page 941 of 987 ends

(Ill!) SEAR TRACT-»
4 SERIES
The 4 Series cardio line from Star Trac is the perfect
solution for the hospitality and mu|ti—housing markets.

With premium display options, quick select adjustment
keys and optional personal viewing screen, the 4 Series provides smallerfacilities with the look and performance of a full commercial product.
4-TR TREADMILL

BASE FEATURES
DECK SYSTEM Reversible MDF deck with phenolic coating
RUNNING BELT SYSTEM 22in (55cm) wide belt
SIZE OF RUNNING SURFACE 60in X 22in (152cm x 55cm)
ABSORPTION SYSTEM Triple cell cushioning system provides maximum shock absorption making the entire deck a sweet spot STEP UP HEIGHT 7in (17cm)
INCLINE RANGE D-15% max incline
SPEED RANGE 0.5-12.5mph (0.5-20I<mh)
HEART RATE MEASUREMENTSYSTEM Telemetry and contact HR
CENTER CONTROLS BAR Warm bar with Contact HR and Emergency Stop DISPLAY Choose from Full Color 10' LCD.10" Capacitive Touchscreen or 15' 0penHub Touchscreen USER DETECT SYSTEM Yes. programmable on/off
ACCESSORIES Bottleholder, pre-wired for PVS entertainment. USB port MAXUSER WEIGHT 450lb [205kg)
DRIVE SYSTEM 3 HP DC motor
ELECTRICAL REQUIREMENTS 110V/15 Amp with standard outlet; or 220V/15 Amp ADDITIONAL FEATURES 3.5ln rollers :

MATERIAL Powder Coated Steel Frame
CUSTOMIZABLE Paint color options approval required
STANDARD COLOR OPTIONS 60 Black
LENGTH 81in (205cm)
WIDTH 32in (81cm)
HEIGHT 50in (152cr‘n)
PRODUCT WEIGHT 3991175(181kg)
SHIPPING DIMENSIONS 89in X 36in X 23in (226cm X 92cm X 59cm) SHIPPING WEIGHT 442lbs (201kg)
93613-4TFi-110-15A-10|N-60BLK 700-0489-20 BLACKPVS, PAL TUNER w/ 4-TR MOUNT 9-3614-ATR-220CE-UL-1OIN-GOBLK 700-0489-74 PVS, PAL TUNER w/ 4~TR MOUNT 9-3613-ATR-110-15A~10~TS-SOBLK 700-0490-20 BLACK PVS, ATSC/NTSC TUNEFIw/ 4~TR MOUNT 9-3614-ATFI-220CE-UL-10-TS~60BLK 700-0490-74 PVS.ATSC/NTSCTUNERw/ 4-TR MOUNT 9-3613-4TR-110-15A-15-ATSC~BOBLK 700-0491-20 BLACK PVS, PAL TUNER w/ 4-CT/UB/RB MOUNT 943614~4TR-220CE-UL-15-ATSC-BDBLK 700-D491-74 PVS, PAL TUNER w/ 4-CT/UB/RB MOUNT 9-3613-4TR~110~15A-15-PAL-BOBLK 700-0492-20 BLACK Pvs, ATSC/NTSCTUNERw/ 4-CT/UB/RB MOUNT

9.3514.4TR.g2Q(;E.U[_.15.pA|_.5oB|_K 700-0492-74 PVS, ATSC/NTSC TUNER w/ 4-CT/UB/RB MOUNT Item Number: 8.

Page 942 of 987 ends

SEE TRAKI-"

CONSOLES
DISPLAY 4 Series 15" Touchscreen 4 Series 10" Touchscreen 4 Series 10" DISPLAY TYPE Capacitive Touchscreen Capacitive Touchscreen Full Color LCDDisplay, non-touch

MULTI-LANGUAGEOPTIONS
English, German. Spanish, Dutch.

Portuguese, French, Italian, Swedish,
Russian, Finnish.Danish, Chinese,
Japanese, Turkish, Polish, Russian.

Hebrew, Czech, Slovak
English, German, Spanish, Dutch,
Portuguese. French.Italian, Swedish.

Russian, Chinese, Japanese, Polish
English, German, Spanish, Dutch,
Portuguese, French, Italian, Swedish,
Russian.Chinese, Japanese, Polish
PREPROGRAMMABLE WORK OUTS Yes, 20+ Yes, 20+ Yes, 20+
QUICK START OPTIONS Yes, single button start options Yes, single button start options Yes, single button start options TV TUNER ENABLED Yes (Global TVtuner options) No No
ETHERNET AND WIFI ENABLED Yes No No
TRACKINGIAPP Yes No No
BLUETOOTH HEADPHONES Yes No No
BLUETOOTHHEART RATE Yes No No
we ~o
RUNTV INTEGRATED WORKOUTVIDEOS Yes No No
INTEGRATEDWEB-BASED APPS Yes No No
CUSTOMIZAELE HOMESCREEN Yes No No
HDMI STREAMING Yes; cables not included No No
USE port Ior software updates and USE port for software updates and USB port for software updates and USB device charging; cables not included device charging; cables not included device charging; cables not included RFID Optional No No
IPTV/SETTOP BOX COMPATIBLE Yes, add-on accessories required No No ANT+ FOR GROUP DISPLAY Yes No No
PERSONAL FAN Yes, programmable auto start Yes, programmable auto start Yes, programmable auto start ASSET MANAGEMENT Eco?t Optional Ecoht Optional Eooht Optional TABLETHOLDER Integrated front Integrated Irant Integrated front PVS No No Optional
800/900 MHZ RECEIVER No No No

PVS FEATURES
PVS 4 Series
DISPLAY TYPE 15.6” HD LED
RESOLUTION 1366 X 768
CoreHealth&Fitnessismorethangymequipment,weollerinnovativesolutionstorall yourfacilityneeds.Ti1isiswhywe've brought togetherfiveoi the mostrecognizablefitnessbrandsto ensureourcustomerscan offertheirmembers authentic fitness experiences. Whetherworkingwithus directlyorthroughour partners and distributorsworldwide‘we providethe highest qualityequipment backedbyitserviceandsupportteamthatwillalways gotheextramileto get youwhatyou need, whenyou needit.Partnerwithus and see how ourCoreValuesmotivateoureverydecision.

TUNER OPTIONS 1) ATSC/NTSC/QAM
2) PAL/DVB-T/DVEI-C
DIGITAL AND ANALOG SUPPORT Yes
SIGNAL INPUTS Coax, HDMI
INPUT RF SIGNAL RANGE -70 dBrn(Min) ~ - ‘IOdBm(Max)
CLOSE CAPTION Yes
HEADFHDNE JACK 3.5mm on Display
CORE

HEALTH & FITNESS
5taIrMa5fer
scuvvruu

NAUTIIUS
sun TRAC

TIIRDWDEIWII
Item Number: 8.

Page 943 of 987 ends

up smn TRAG»
8 SERIES
The Star'I‘rac 8 Series linewas built to give you the quality andperformanceyouexpectfromhigh—endmachineswith
user-focused features like dual personal fans, a
hot bar with heart rate monitoring and Soft Trac®
technology. For a premium experience pair any 8 Series
machine with the OpenHub console which provides
entertainment, fitness tracking and asset management
solutions that will offer a complete fitness experience to facility owners and their members.
8-VS VEFISASTRIDER
i‘ I

STEP UP HEIGHT

BASE FEATURES
11in (28cm)
STFIIDETYPE Dynamic Variable
STRIDE LENGTH 10-32"
HEART RATE MEASUREMENT SYSTEM Telemetry and contact HR (Bluetooth with embedded display) MOVEMENT ARMS Converging movement anns with multiple hand grip options CONTROLS Integrated into movement arms
DISPLAY Choose from LCD.10" or 15' OpenHub display options ACCESSORIES Multiple bottle and accessory holders, LCDand 10" displays pre-wired for 5 Series PVS entertainment.800/900MHz receivers, and tablet holder
MAXUSER VIEIGHT 400i!) [181 kg)
DRIVE Front Drive
RESISTANCE SYSTEM Alternator
ELECTRICAL REQUIREMENTS LCDis self-generating: touch screen and PVS options require 12V/5 Amp power supply START UP WATTS 20
ADDITIONAL FEATURES Rear courtesy step
MATERIAL Powder Coated Steel Frame
CUSTOMIZAELE Paint color options approval required
STANDARDCOLOR OPTIONS Black
LENGTH 89in (226cm)
WIDTH
A 35in (89cm)
HEIGHT 69in (175cm)
PRODUCT WEIGHT 5&6|bs (256kg)
SHIPPING DINIENSIONS 89in X 35in X 49in (226cm X 90cm x 125cm) SHIPPING WEIGHT 594IbS (315kg)
9-B160-BVS»LCD
9-6160-BVS-2019-15~lSDB-PAL
9-6160-8VS~2D19-15-ATSC
9-5160-8VS-10
Item Number: 8.

Page 944 of 987 ends

PVS FEATURES
DISPLAY 15" Star Trac 8 Series 10“ LCD PVS 10/E/4 Series DISPLAY TYPE Capacitive Touchscreen Resistive Touchscreen Static LCD DISPLAY TYPE 15.6‘ HD LED English. German. Spanish. RESOLUTION 1366 X 768
Dutch.Portuguese, French, En . .
. . . . . glish, German. Spanish, 1) ATSC/NTSC/QAM
MULTI-LANGUAGE 013- :,‘.a''’'‘,’‘' s“’°".'5“'F‘”.5"“‘"'E"9"5"-Ge"“a"' 5'“"'5“' Dutch, Portuguese, French, TUNE“ °P"°"5 2) PAIJDVB-T/DVB-C Innish.Danish.Chinese. Dutch.Portuguese, French. . . TIONS . . . Italian.Swedish. Katakana, Japanese, Turkish. Polish. Swedish R . F, . h DIG”-AL AND
Russian, Hebrew, Czech, uSS'a"' "W5 ANALOG SUPPORT ‘'95 Slovak ESIGNALINPUTS C ,HDM| PRE-PROGRAMMABLE Yes 20 Yes 11+ Yes 14+ T oax
WORK OUTS ' T ' ' INPUT RF SIGNAL -70 dBmlMiri) — RANGE 10 dB M QUICK START OPTIONS Yes, single button start Yes, single button start Yes. single button start e m( ax) options 0 tions 0 tions CLOSE CAPTION Yes I3 P
TVTUNER ENABLED Yes (Global TVtuner options) No No HEADPHONEJACK 3.5mm on Display ETHERNET AND WIFI Yes No NO SKUS MYE PVS SCREEN. 2016. ATSCI ENABLED NTSCTUNER TR MOUNT:

BLUETOOTH DATA
TFIAOKINGI Yes Yes Yes 7m_D3B8v20 APF CONNECTIVITY
MYE PVS scneen.2016, PAL
3'-UETOOTH yes No No ruuen TR MOUNT: HEADPHONES m_m7_,3 7oo~oaa7~1e ggggggggg as No No
APPLE GYMK” I MYE PVS SCREEN, 2o15.-ATsc/
SAMSUNG GALAXY Yes No Yes ygigagg?i“ T“ “"°“'“' WATCH CONNECTIVITY m_Um_‘6 RUNTV INTEGRATED 700033340 Yes No No WORKOUT VIDEOS MYE PVS SCREEN, 2015. PAL TUNER TH MCUNTZ BASED APPS Y“ "‘° N° 700~D3a9—i3
700-0389-16 CUSTOMIZABLEHOME YES No No m.o359.2o SCREEN HDMI STREAMING Yes; cables not included
Yes. HDMIstreaming available with PVS option; cables
not included
Yes, HDMIstreaming available with FVS option; cables
not included
USB port Ior software up- USB port for software up- USB port Ior software up- USB dates and device charging; dates and device charging; dates and device charging:
cables not included cables not included cables not included RFID Optional No No
IPTV/SETTOP BOX Yes. add-on accessories . Yes, with PVS.add-on acces- COMPATIBLE required “Si ‘"'”‘ PVS series required ANT+ FOR GROUP yes Yes yes DISPLAY
PERSONAL FAN Yes, programmable auto start Yes. programmable auto start Yes. programmable auto start ASSET MANAGEMENT Eco?t Optional Eco?t Optional Ecoiit Optional Integrated Iront.optional Iop Integrated front, optional top TABLET HOLDER Integrated front add_on add_on PVS No Optional Optional
800/900 MHZ RECEIVER No Optional Optional
CoreHealth8.Fitnessismorethangymequipment.weo?er innovativesolutionslorallyouriacility nceds.Thisiswhywe‘ve brought togetherfiveofthe most recognizableIllnessbrandsto ensureour customerscan offertheirmembersauthentic fitness experiences. Whether workingwith us directlyor through our partners and distributorsworldwide. we providethe highestqualityequipment backedbya serviceandsupportteamthat willalways gotheextramileto get youwhat youneed, when you needit.Partnerwith us and seehowourCoreValuesmotivateoureverydecision. ..2o2o E4:iEW.1ltii.'.?
kn?ivnarts cl ll?uliltr. In
and Ilauhlus arr lrgzlrlml CORE
HEALTH 8: FITNESS
MYE PVS SCREEN, 2016.ATsc/ NTSC TUNEFIBCG MOUNT:
700-0390-‘l 3
70003904 6
700-0390-2o
MYE PVS SCREEN, 2OI6, PAL TUNERECG MOUNT:
700-0591-13
700-03521-16
700-0381-20
MYE PVS SCREEN, 2016, ATSC/ NTSCTUNER FC MOUNT:
700-D392-13
700-039246
700-0392-2n
MYE PVS SCREEN, 2016. PAL TUNERFc MOUNT:
700-0393-I3
7DCI~O39.’3~I6
7DO—O393—20
5faIrMaster
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THIIIIWDIJWN
Item Number: 8.

Page 945 of 987 ends
Page 946 of 987 ends

SR-23-243
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: Public Works
Prepared by: Jilleen Ferris, City Engineer
Subject: Clean California Local Grant Program - Award of Grants RECOMMENDATION:

Adopt a Resolution of the City Council Authorizing the City Manager to Negotiate and Execute Agreements, and their Amendments, if any, with the California Department of Transportation for the Participation in the Clean California Local Grant Program.

BACKGROUND:

On April 26, 2023, the City of Desert Hot Springs applied for two grants for the Clean California Local Grant Program. The grants included funding for construction of the Corporate Yard Park and the Hacienda Avenue Street improvements.

DISCUSSION:

On October 9, 2023, the City was awarded both the grants that the City had applied for.

The first grant is for a total of $5,000,000 for the construction of the Corporate Yard Park located at Hacienda Avenue and Cholla Drive, the park will feature the following amenities:
 Installation of a football field
 Installation of a baseball field
 Common area which includes shade structures and seating  Meandering sidewalks within the park
 Motion sensor park lights to deter criminal activity and vandalism  Installation of sidewalks along Hacienda Avenue and Cholla Drive The City received a second grant for a total of $2,999,000 for the construction of Hacienda Avenue Street Improvement Project, which extends from West Drive to Tamar Drive. This innovative and transformational project will reconstruct a 1.5-mile corridor. The project will rehabilitate the Hacienda Ave corridor by installing new bike lanes and safety markings along the road, and a new parkway adjacent to the road. The new parkway will feature a meandering sidewalk, walking areas for outdoor activities, shaded areas for seating, new landscaping, and safety lighting throughout the entire project.

Item Number: 9.

Page 947 of 987 ends

SR-23-243
Both projects will provide a benefit to the community and beautify the surrounding area. As a requirement of the Clean Grant, the City must provide a local resolution that specifies the individual who is authorized to execute the Restricted Grant Agreement (RGA).

FISCAL IMPACT:

There is no fiscal impact as a result of this action.

ATTACHMENTS:
1) Resolution Clean Grant
Item Number: 9.

Page 948 of 987 ends

Resolution No. 2023-______
Date Adopted: [October 17, 2023]

Page 1 of 2 ends

RESOLUTION NO. 2023-______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DESERT HOT

SPRINGS, CALIFORNIA, AUTHORIZING THE CITY MANAGER TO

NEGOTIATE AND EXECUTE AGREEMENTS WITH THE CALIFORNIA

DEPARTMENT OF TRANSPORTATION FOR PARTICIPATION IN THE

CLEAN CALIFORNIA LOCAL GRANT PROGRAM
WHEREAS, the City of Desert Hot Springs is eligible to receive State funding for certain transportation related work through the California Department of Transportation; and WHEREAS, certain agreements are needed to be negotiated and executed with the California Department of Transportation before such funds can be claimed through the Clean California Local Grant Program; and
WHEREAS, the City of Desert Hot Springs wishes to delegate authorization to negotiate and execute these agreements and any amendments thereto; and

NOW, THEREFORE, BE IT RESOLVED, DETERMINED AND ORDERED BY THE CITY COUNCIL FOR THE CITY OF DESERT HOT SPRINGS, AS FOLLOWS:

Section 1. Authorization for Grant Program
That the City Council authorizes the City Manager, or designee, to negotiate and execute any and all restricted agreements related to the grants for participation in the clean California Local Grant Program and any amendments thereto with the California Department of Transportation.

Section 2. 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 3. 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 4. Effective Date.

That this Resolution shall take effect immediately.

Section 5. Certification.

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

Item Number: 9.

Page 949 of 987 ends

Resolution No. 2023-______
Date Adopted: [October 17, 2023]

Page 2 of 2 ends

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on October 17, 2023, by the following vote:

AYES:

NAYS:

ABSENT:

ABSTAIN:

ATTEST: APPROVED:
________________________________ ____________________________ Jerryl Soriano, CMC, City Clerk Scott Matas, Mayor

APPROVED AS TO FORM:
________________________________
Jennifer Mizrahi, City Attorney
Item Number: 9.

Page 950 of 987 ends

SR-23-250
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: October 3, 2023 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - October 3, 2023 Item Number: 10.

Page 951 of 987 ends

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, October 3, 2023
Council Chambers
CLOSED SESSION - 4:30 P.M.

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

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. Public Employee Complaints
(Government Code Section 54957)

2. Public Employee Appointment (Government Code § 54957) Title: City Manager
PRESENTATIONS - 5:30 P.M.

Downtown Public Art Presentation
Dave Amos, California Polytechnic State University
Dave Amos, California Polytechnic State University, presented an overview of the "Downtown Desert Hot Springs Vision Plan," and responded to questions.

Introduction and Swearing-In of New Police Officer
Item Number: 10.

Page 952 of 987 ends

City Council
October 3, 2023
Jim Henson, Police Chief, introduced new Police Officer, Sang Bui.

Daniel McVey, Deputy City Clerk, administered the Oath.

REGULAR SESSION - 6:00 P.M.

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

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 there was no reportable action.

APPROVAL OF AGENDA
ACTION: Approve the October 3, 2023 Regular Meeting agenda and approve the Consent Calendar, except for Item 13.

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

AYES: Betts, Gardner, Pye, Nuñez, and Matas
Item 3 "Appointment of City Manager" was considered at this time.

PUBLIC COMMENTS
1) RJ Giboney expressed concerns regarding the Cal Poly presentation. 2) Matthew Young addressed the City Council.

Item Number: 10.

Page 953 of 987 ends

City Council
October 3, 2023
3) Tom Moen spoke regarding the history of Desert Hot Springs. 4) Brian Browdowski spoke regarding the Rotary Club.

CITY MANAGER REPORT
Geoffrey Buchheim, Administrative Services Director, provided a financial update.

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

Daniel Porras, Interim Deputy City Manager, provided an update regarding the status of road closures as a result of Tropical Storm Hilary.

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.

ADMINISTRATIVE CALENDAR:

3. Appointment of City Manager
Recommendation:

Appoint Frank J. Luckino as City Manager for the City of Desert Hot Springs and approve the Employment Contract with a start date of November 6, 2023.

Staff Report
Item 3 was considered following "Approval of the Agenda." Mayor Matas and the City Council presented the report. A brief discussion ensued.

ACTION: Appoint Frank J. Luckino as City Manager for the City of Desert Hot Springs and approve the Employment Contract with a start date of November 6, 2023.

Item Number: 10.

Page 954 of 987 ends

City Council
October 3, 2023
Moved by Council Member Gardner
Seconded by Council Member Betts
Carried 5-0 by the following votes:

AYES: Betts, Gardner, Pye, Nuñez, and Matas
Frank Luckino addressed the City Council.

The City Council recessed at 6:13 PM.

The City Council reconvened at 6:20 PM.

4. Ordinance Amending Several Chapters of the Desert Hot Springs Municipal Code Dealing With Cannabis Regulations
Recommendation:

Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, 1) Amending Chapters

3.33 (Titled “Marijuana Cultivation Tax” and 3.35 (Titled “Medical Marijuana Cultivation Tax”) To Amend Various Sections in Both Chapters to Lower Recreational and Medical Cultivation Taxes, and 2) Section 5.50.070 Relating to General Security Requirements of the Desert Hot Springs Municipal Code (“DHSMC”).

Staff Report - SR-23-229 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Scot Rsuczyk, Coachella Valley Cannabis Alliance Network, spoke in favor.

RJ Giboney spoke against.

A discussion ensued.

There was consensus to table action regarding the cannabis cultivation tax rate; and direct Staff to bring the matter back at a future meeting.

ACTION: Approve Staff recommendation (except for the cannabis cultivation tax rate) with a modification to the definition of "space." 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. Resolution of Intention to Annex APN 666-360-017 to the City of Desert Hot Springs Community Facilities District No. 2010-1
Item Number: 10.

Page 955 of 987 ends

City Council
October 3, 2023
Recommendation:

Adopt a Resolution of the City Council of the City of Desert Hot Springs declaring its intention to annex territory to Community Facilities District No. 2010-1 (Services) of the City of Desert Hot Springs, adopting a map of the area proposed to be annexed (Annexation No. 48), and to authorize the levy of special taxes therein.

Staff Report - SR-23-228 - Pdf
Geoffrey Buchheim, Administrative Services Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-043.

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

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

6. Resolution of Intention to Create a Special Tax Area Zone for Property APN 666-360-017 to the Desert Hot Springs Special Public Safety Tax Area
Recommendation:

Adopt a Resolution of Intention which establishes the time and place of the Public Hearing to establish Zone 54 within the Special Public Safety Tax Area for Police and Fire Protection Services and authorizing an election.

Staff Report - SR-23-227 - Pdf
Geoffrey Buchheim, Administrative Services Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-044.

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

AYES: Betts, Gardner, Pye, Nuñez, and Matas
The City Council recessed at 7:47 PM.

The City Council reconvened at 7:51 PM.

7. Stagnant Water Abatement
Recommendation:

Authorize the City Manager to execute an agreement entitled, "Stagnant Water Inspection and Abatement Warrant Release, Waiver, and Indemnity Agreement by and Between the City of Desert Hot Springs and Coachella Valley Mosquito Item Number: 10.

Page 956 of 987 ends

City Council
October 3, 2023
and Vector Control District," and allow for any substantive changes to be made by the City Manager, if any.

Staff Report - SR-23-224 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Mary Kate Stoever spoke against.

RJ Giboney spoke against.

A discussion ensued.

ACTION: Call the question and end debate.

Moved by Mayor Matas
Seconded by Council Member Pye
Carried 4-1 by the following votes:

AYES: Gardner, Pye, Nuñez, and Matas
NOES: Betts
ACTION: Approve Staff recommendation.

Moved by Mayor Pro Tem Nuñez
Seconded by Council Member Gardner
Carried 4-1 by the following votes:

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

8. Transportation Uniform Mitigation Fee (TUMF) Inflation Adjustment for Calendar Year 2024
Recommendation:

Adopt a Resolution of the City Council adjusting the Transportation Uniform Mitigation Fee (TUMF) pursuant to Coachella Valley Association of Government's request for Calendar Year 2024.

Staff Report - SR-23-223 - Pdf
Travis Clark, Community Development Director, presented the staff report.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-045.

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

AYES: Betts, Gardner, Pye, Nuñez, and Matas
Item Number: 10.

Page 957 of 987 ends

City Council
October 3, 2023

9. Annual Utility Users Tax Report
Recommendation:

Receive and file.

Staff Report - SR-23-231 - Pdf
Geoffrey Buchheim, Administrative Services Director, presented the staff report and responded to questions.

The report was received and filed.

CONSENT CALENDAR:

10. City Council Special Meeting (Closed Session) Minutes: September 23, 2023
Staff Report - SR-23-233 - Pdf
ACTION: Approved the Minutes as presented.

11. Acceptance of Subdivision Improvement Agreement and Related Security for Rancho Descanso
Staff Report - SR-23-232 - Pdf
ACTION: Approved Staff recommendation to:
1) Accept the Subdivision Improvement Agreement, Performance Bond and Labor and Materials Bond, any substantive changes shall be approved by the City Manager and the City Attorney; and
2) Authorize staff to process and file the Subdivision Improvement Agreement with the County Recorder’s Office.

12. Second Reading and Adoption of An Ordinance Amending a Chapter of Title 17, Zoning Ordinance: "Chapter 17.08 (Residential Districts)" (CEQA Exemption 15061(b)(3))
Staff Report - SR-23-225 - Pdf
ACTION: Approve Second Reading, read by title only and adopt Ordinance 787: "An Ordinance of the City Council of Desert Hot Springs amending a chapter of Title 17, Zoning Ordinance "Chapter 17.08 (Residential Districts)."

13. Second Reading and Adoption of An Ordinance Amending Chapter 1.10 "City Seal and Insignias" of the Desert Hot Springs Municipal Code Recommendation:

Approve Second Reading, read by title only and adopt: "An Ordinance of the City of Desert Hot Springs amending Chapter 1.10 "City Seal and Insignias" of the Desert Hot Springs Municipal Code.

Staff Report - SR-23-226 - Pdf
Item Number: 10.

Page 958 of 987 ends

City Council
October 3, 2023
Councilmember Gardner pulled the Item from the Consent Calendar to propose an amendment to the ordinance to include past seals/logos.

Jennifer Mizrahi, City Attorney, advised that the ordinance would have to return again for second reading due to the amendment.

ACTION: Approve Staff recommendation with an amendment to the ordinance to include past seals/logos.

Moved by Council Member Gardner
Seconded by Council Member Pye
Carried 4-1 by the following votes:

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

14. Second Reading and Adoption of An Ordinance Amending Chapter 2.24 "Departments, Boards and Commissions," Section 2.24.050 "Removal" as It Pertains to Absences in the Desert Hot Springs Municipal Code Staff Report - SR-23-230 - Pdf
ACTION: Approve Second Reading, read by title only and adopt Ordinance 788: "An Ordinance of the City Council of the City of Desert Hot Springs, California, Amending Chapter 2.24 "Departments, Boards and Commissions," Section 2.24.050 "Removal" as It Pertains to Absences in the Desert Hot Springs Municipal Code."

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 8:19 PM.

Jerryl Soriano, CMC, City Clerk
Item Number: 10.

Page 959 of 987 ends
Page 960 of 987 ends

SR-23-246
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Amending Several Chapters of the Desert Hot Springs Municipal Code Dealing With Cannabis Regulations
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, California, 1) Amending Chapters 3.33 (Titled “Marijuana Cultivation Tax” and

3.35 (Titled “Medical Marijuana Cultivation Tax”) To Amend Various Sections in Both Chapters to Lower Recreational and Medical Cultivation Taxes, and 2) Section 5.50.070 Relating to General Security Requirements of the Desert Hot Springs Municipal Code (“DHSMC”).

BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on October 3, 2023 with the following amendments:
 The cannabis cultivation tax rate was tabled to allow for further review; and  The definition for "space" was modified to read as follows:
“Space utilized in connection with the cultivation of medical marijuana” shall mean any horizontal canopy space used space ground, floor or other surface area (whether horizontal or vertical) which is usedwhich is used during the marijuana germination, seedling, vegetative, pre-flowering, flowering and harvesting phases related to the growth cycle of the marijuana plant, to include areas where live plants are present., including without limitation any space used for activities such as growing, planting, seeding, germinating, “Space” shall exclude the area used for lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana or any such space used for storing any products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located, including temporary storage of marijuana plants.

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

ENVIRONMENTAL ANALYSIS:

Item Number: 11.

Page 961 of 987 ends

SR-23-246
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.

ATTACHMENTS:
1) Staff Report from October 3, 2023
2) Ordinance
Item Number: 11.

Page 962 of 987 ends

SR-23-229
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 3, 2023
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: Ordinance Amending Several Chapters of the Desert Hot Springs Municipal Code Dealing With Cannabis Regulations
RECOMMENDATION:

Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California, 1) Amending Chapters 3.33 (Titled “Marijuana Cultivation Tax” and 3.35 (Titled “Medical Marijuana Cultivation Tax”) To Amend Various Sections in Both Chapters to Lower Recreational and Medical Cultivation Taxes, and 2) Section 5.50.070 Relating to General Security Requirements of the Desert Hot Springs Municipal Code (“DHSMC”).

BACKGROUND:

On July 5, 2023, the City Council approved staff’s recommendation for the following amendments to the Desert Hot Springs Municipal Code:
1) Modify the definition of cultivation space, for the purposes of tax collection 2) Bring forth an Ordinance to reduce the cannabis cultivation tax rate from $10.20 per sq. ft. of “space utilized” in connection with the cultivation process to $7.50 per sq. ft. 3) Bring forth an Ordinance to align the city’s security requirements to mirror state law for cultivation, manufacturing, and distribution facilities 4) Bring forth an Ordinance to allow for a 6-month ramp-up period for new businesses to phase in space, for the purpose of calculating tax liability, as new rooms are brought online within a facility.

DISCUSSION:

This proposed Ordinance incorporates the City Council direction as per the above.

Chapters 3.33 and 3.35 of the Desert Hot Springs Municipal Code (“DHSMC”) regulate cultivation taxes.

Chapter 3.33 regulates recreational cultivation, and Chapter 3.35 regulates medical cultivation. Both chapters were amended to:
1) Lower the cultivation tax from $10.20 to $7.50 a square foot; Item Number: 11.

Page 963 of 987 ends

SR-23-229
2) Amend the definition of “space” to mean the horizontal canopy related to the grow cycle; and to exclude any areas used for storage, cropping, drying, etc. The change in definition effectively also lowers the cultivation tax as it limits the taxable square footage; 3) Provide general penalties for non-payment of taxes; and 4) Allow a 6-month ramp-up period for new cultivation facilities.

Chapter 5.50 of the DHSMC provides the regulatory framework for the operation of cannabis facilities, including the security requirements of such facilities operating within the City. Section 5.50.070 of the DHSMC currently requires security standards that are more stringent than required by the State of California Department of Cannabis Control (“DCC”) as they relate to security guards. Section 5.5070 is proposed to be amended to mirror state law.

FISCAL IMPACT:

Reduction of the Cannabis Cultivation Tax to $7.50 per square foot of canopy space will result in a loss of revenue to the City estimated to be $1,762,872 annually.

ENVIRONMENTAL ANALYSIS:

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.

ATTACHMENTS:
1) Ordinance - Lowering Cultivation Taxes and Security Measures Item Number: 11.

Page 964 of 987 ends

ORDINANCE NO. _______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA, 1) AMENDING CHAPTERS 3.33 (TITLED “MARIJUANA CULTIVATION TAX” AND 3.35 (TITLED “MEDICAL
MARIJUANA CULTIVATION TAX”) TO AMENEND VARIOUS

SECTIONS IN BOTH CHAPTERS TO LOWER RECREATIONAL AND
MEDICAL CULTIVATION TAXES, AND 2) SECTION 5.50.070

RELATING TO GENERAL SECURITY REQUIREMENTS OF THE
DESERT HOT SPRINGS MUNICIPAL CODE (“DHSMC”)
WHEREAS, the City of Desert Hot Springs (“City”) is a municipal corporation and a charter city; and
WHEREAS, it has come to the City’s attend that various marijuana cultivators have inquired into having the City lower cultivation taxes for Marijuana Cultivation Facilities, as defined by Desert Hot Springs Municipal Code Section (“DHSMC”) section

17.180.030, and regulated pursuant to DHSMC Section 17.180.050; and WHEREAS, DHSMC Section 3.33.005 as it relates to recreational marijuana cultivation currently imposes taxes as follows, “In the event the cultivation of marijuana for casual/recreational use is legalized or decriminalized in California, any person or entity cultivating marijuana for casual/recreational use in the City shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for casual/recreational use.;” and
WHEREAS, DHSMC Section 3.35.005 as it relates to medical marijuana cultivation currently imposes taxes as follows, “Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally cultivating medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.), shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for medical use.;” and
WHEREAS, DHSMC Section 3.33.060 provides in part that the City Council can amend the recreational cultivation marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Section 3.35.070 provides in part that the City Council can amend the medical cultivation marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Sections 3.33.070 (recreational) and 3.35.080 (medical) provide, among other things that the City Manager, or designee, and/or the City Council by ordinance may promulgate regulations to implement Chapter 3.33 and 3.35; and Item Number: 11.

Page 965 of 987 ends

WHEREAS, during several public meetings the City Council met to discuss marijuana cultivation taxation in general, and provided Staff direction to lower Marijuana Cultivation Taxes, among other things; and
WHEREAS, the City Council deems now that Marijuana Cultivation Facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section

17.180.050, as applicable to both recreational and medical marijuana cultivation should be lowered to encourage the City’s competitive advantage; and WHEREAS, at this time, the City Council desires to amend Chapter 3.33 and

3.35 to explicitly lower the marijuana cultivation tax for Marijuana Cultivation Facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section

17.180.050; and
WHEREAS, such proposed amount, as well as re-refining “space” does in fact lower the current recreational cultivation tax, and medical cultivation tax; and WHEREAS, the equal dignity rule requires Chapters 3.33 and 3.35 as proposed by this Ordinance be adopted by ordinance; and
WHEREAS, Section 5.50.070 regulates general security requirements; and WHEREAS, this Ordinance would eliminate the need for 24-hour security, as it has been shown to not be needed, as well as cost prohibitive; 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 activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this ordinance is good for the public health, safety and welfare.

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 3.33 TITLED “MARIJUANA
CULTIVATION TAX” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE (FOR RECREATIONAL MARIJUANA

CULTIVATION)
The following sections of Chapter 3.33 of the Municipal Code shall be amended to read as follows, and all other sections in Chapter 3.33 shall remain in full force and effect and untouched:

Item Number: 11.

Page 966 of 987 ends

3.33.005 Imposition of tax.

In the event the cultivation of marijuana for casual/recreational use is legalized or decriminalized in California, any person or entity cultivating marijuana for casual/recreational use in the City shall pay an annual tax of $10 per square foot for space utilized in connection with the cultivation of marijuana for casual/recreational use. (Ord. 733 3-2-21; Ord. 559 11-4-14)

3.33.010 Purpose of tax.

The purpose of this tax is to raise revenue to fund general municipal services. (Ord. 559 11-4-14)

3.33.020 Customers.

This tax shall not be specifically charged or assessed to any customer or consumer. Payment and remittance of the tax to the City shall solely be the responsibility of the person or entity authorized to legally cultivate marijuana within the City. (Ord. 559 11-4-14)

3.33.030 Space.
“Space utilized in connection with the cultivation of marijuana” shall mean any horizontal canopy space used space ground, floor or other surface area (whether horizontal or vertical) which is used during the marijuana germination, seedling, vegetative, pre-flowering, flowering and harvesting phases related to the growth cycle of the marijuana plant, to include areas where live plants are present. including without limitation any space used for activities such as growing, planting, seeding, germinating, “Space” shall exclude the area used for lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana or any such space used for storing any products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located, including temporary storage of marijuana plants. (Ord. 559 11-4-14)

3.33.040 Annual adjustment.

The taxes imposed by this chapter shall be adjusted annually beginning on July 1, 2015, and July 1 of each succeeding year based on the Consumer Price Index (CPI) for all urban consumers in the Los Angeles-Riverside-Orange County areas as published by the United States Government Bureau of Labor Statistics; however, no adjustment shall decrease any tax imposed by this chapter, unless approved by the City Council. (Ord. 559 11-4-14)

3.33.050 Remittance.

Item Number: 11.

Page 967 of 987 ends

The taxes imposed by this chapter shall be remitted to the City biennially, on or before December 31st and June 30th every year. (Ord. 559 11-4-14)

3.33.060 Modification, repeal, or amendment.

The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein. (Ord. 559 11-4-14)

3.33.070 Administration.

The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter. (Ord. 559 11-4-14)

3.33.080 Penalties.

Any entity that fails to pay the taxes required by this chapter within 30 days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to 25 percent of the total amount due. Additional penalties will be assessed in the following manner: 10 percent shall be added on the first day of each calendar month following the month of the imposition of the 25 percent penalty if the tax remains unpaid—up to a maximum of 100 percent of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment. (Ord. 559 11-4-14)

3.33.090 Additional penalties.

A. Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters 4.16 and 4.28 of this municipal code. (Ord. 559 11-4-14)
B. The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city.

C. The remedies in this Chapter are cumulative, and in addition to any and all other remedies, civil, equitable, or criminal, afforded to the City.

D. Any person owing any tax and related interest and penalty under the provisions of this Chapter shall be liable in an action brought in the name of the City in any court of competent jurisdiction for recovery of any such amount.

E. Except as otherwise provided, the amendment or repeal of any portion of this Chapter or other portions of this code affecting this Chapter shall not be Item Number: 11.

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construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City from any person under the provisions of said code as they existed prior to such amendment or repeal.

3.33.100 Records inspection.

Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records must be maintained for at least seven years. (Ord. 559 11-4-14)

3.33.110 Application of provisions.

No payment of any tax required under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter implies or authorizes that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California and permitted by the City. (Ord. 559 11-4-14)

3.33.120 Operative date.

This tax shall become operative commencing upon the effective date of an ordinance permitting persons and entities to cultivate and sell, distribute, exchange, deliver or provide marijuana within the jurisdictional boundaries of the City of Desert Hot Springs. The City shall provide a six-month cultivation tax ramp-up period for any new cultivation facility. (Ord. 559 11-4-14)
Section 3. AMENDMENT OF SECTION 3.35.005 TITLED
“IMPOSITION OF TAX” OF CHAPTER 3.35 “MEDICAL
MARIJUANA CULTIVATION TAX” OF THE DESERT HOT

SPRINGS MUNICIPAL CODE (FOR MEDICAL

MARIJUANA CULTIVATION)
The following sections of Chapter 3.35 of the Municipal Code shall be amended to read as follows, and all other sections in the Chapter 3.35 shall remain in full force and effect and untouched:

3.35.005 Imposition of tax.

Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally cultivating medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.), shall pay an annual tax of $10 per Item Number: 11.

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square foot for space utilized in connection with the cultivation of marijuana for medical use. (Ord. 733 3-2-21; Ord. 559 11-4-14)

3.35.010 Purpose of tax.

The purpose of this tax is to raise revenue to fund general municipal services. (Ord. 559 11-4-14)

3.35.020 Qualified patients and caregivers.

This tax shall not be specifically charged or assessed to any qualified patient or primary caregiver. Payment and remittance of the tax to the City shall solely be the responsibility of the medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity, that is authorized to legally cultivate medical marijuana, within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.). (Ord. 559 11-4-14)

3.35.030 Medical Marijuana Program Act.

Unless otherwise specifically provided in this chapter, the words, terms and phrases used in this chapter shall have the same meanings set forth in the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.). (Ord. 559 11-4-14)

3.35.040 Space.
“Space utilized in connection with the cultivation of medical marijuana” shall mean any horizontal canopy space used space ground, floor or other surface area (whether horizontal or vertical) which is used which is used during the marijuana germination, seedling, vegetative, pre-flowering, flowering and harvesting phases related to the growth cycle of the marijuana plant, to include areas where live plants are present. , including without limitation any space used for activities such as growing, planting, seeding, germinating, “Space” shall exclude the area used for lighting, warming, cooling, aerating, fertilizing, watering, irrigating, topping, pinching, cropping, curing or drying marijuana or any such space used for storing any products, supplies or equipment related to any such activities, no matter where such storage may take place or such storage space may be located, including temporary storage of marijuana plants. (Ord. 559 11-4-14)

3.35.050 Annual adjustment.

The taxes imposed by this chapter shall be adjusted annually beginning on July 1, 2015, and July 1st of each succeeding year based on the Consumer Price Index (CPI) for all urban consumers in the Los Angeles-Riverside-Orange County areas as published by the United States Government Bureau of Labor Statistics; however, no Item Number: 11.

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