Desert Hot Springs City Council
November 7, 2023

_ Michael J. Francis, MAI
21 Title Report: I have been provided with a preliminary title report for the subject property which is given in the addenda. No
responsibility is assumed for matters which are legal in nature. No opinion of title is rendered, and the property is appraised as though free of all encumbrances and the title is assumed to be marketable. I assume that there are no items in the subject’s title report which would negatively affect my value estimate presented within this report. It is assumed that the only easements are normal utility and access
easements which do not adversely affect the value of the subject property. In my valuation analysis of the subject property, I have assumed that the subject has clear and marketable title. Property taxes on the subject, if applicable, are assumed to be current.

Environmental Report: I have not been provided with environmental reports for the subject property. Your appraiser did not detect the existence of any hazardous and/or toxic materials on the subject site which posed a hazardous threat to the subject property.

Your appraiser has no knowledge of the existence of such harmful materials on or in the property. Your appraiser, however, is not qualified to detect such substances. The presence of substances such as asbestos, or other
potentially hazardous materials may affect the value of the property. The value estimate is predicated on the
assumption that there are no such hazardous and/or toxic materials on or in the property that would cause a loss in value. No responsibility is assumed for any such condition, or for any expertise or engineering knowledge required to discover them. The client is urged to retain an expert in this field, if desired.

Item Number: 14.

_ Michael J. Francis, MAI
22 Soils Report: I have not received a soils report for the subject property. I explicitly assume that the subject’s soils do not contain any unusual conditions and that there are no adverse soil
conditions at the subject site. I also assume that the
subject's soils conditions will not negatively affect the value of the subject property.

Coastal / Wetlands /
Biological Species
Habitat Issues: The subject property is not located within 1,000 yards of the ocean or in a designated wetland area. It is, therefore, assumed that the subject either satisfies, or is not affected by, the State or Federal wetlands acts/regulations. I
furthermore assume that the subject property is not located in any special and/or endangered biological species habitat.

Assessed Valuation
and Property Taxes: The subject property is currently owned by the County of Riverside, a governmental organization. Consequently,
there currently is no assessed value or no property taxes paid on the subject property.

Item Number: 14.

_ Michael J. Francis, MAI
23 IMPROVEMENT DESCRIPTION
General Description:

The subject property represents an approximate 3,528 square foot vacant one story single tenant commercial building which was previously utilized as a public library.

Basic Construction
Year Built
The subject building was reportedly built in 1973.

Approximate Effective Economic Age
30 years
Total Approximate Economic Life
40 years
Total Approximate Effective Remaining Economic Life
10 years
Type of Construction / Exterior Walls
Concrete block with stucco exterior
Number of Floors
One
Foundation/Floor Structure
Steel reinforced concrete slab
Roof Cover
The subject building reportedly composition built-up roof.

Item Number: 14.

_ Michael J. Francis, MAI
24 Rest Rooms
The subject building has 1 men’s restroom and 1 women’s restroom.

Windows
The subject building has tinted windows in metal frames. The windows, however, are placed near the ceiling areas. Consequently, while they provide light, they do not enable people inside the building to look outside (other than mostly to the sky). For this reason, the subject building is considered to suffer from some functional obsolescene for this fact (i.e. – it is considered to be less desirable from a market standpoint than more typical office buildings with a more normal window configuration).

Heating/Cooling
The building features an HVAC system.

Ceiling/Lighting/Sprinklers
The building has primarily drop acoustical ceilings with fluorescent lighting fixtures and ceiling mounted fire sprinklers.

Flooring
Flooring consists primarily of wood vinyl flooring with ceramic tile flooring in the two restrooms.

Interior Walls
The interior walls of the subject building consist primarily of painted chalkboard.

Electrical
The building appears to have a sufficient number of power outlets and for purposes of this report, electrical service is assumed to be adequate.

Item Number: 14.

_ Michael J. Francis, MAI
25 Parking
The subject property lies adjacent to other buildings (which, like the subject, are currently all government owned). The subject property reportedly has a shared parking agreement with these other buildings as well as bilateral cross ingress – egress easements over these properties. Overall, the subject’s current parking is considered to be average to above average and is assumed to legally meet or exceed required the subject’s on-site parking requirements. It should, however, be noted that other than a few spaces that are relatively close to the subject, the balance of the reportedly common area parking which could be available to the subject property is located a bit further away from the subject building.

Landscaping / Fencing / Security System
The subject property has minimal perimeter landscaping and no fencing. The subject parking lot area has exterior lighting. The subject building has a security alarm system with external cameras.

Quality and Condition
The subject improvements are of overall average quality and in average condition.

Deferred Maintenance/Depreciation - Repairs and Maintenance The subject building reportedly does not reportedly suffer from any major forms of deferred maintenance and I found this to be the case from my visual building inspection.

Should this later found not to be the case, I reserve the right to adjust my value estimate for the subject property as stated herein accordingly.

Item Number: 14.

_ Michael J. Francis, MAI
26 HIGHEST AND BEST USE
Highest and Best Use is an appraisal concept which has been defined as follows:

That reasonable and probable use that will support the highest present value, as defined, as of the effective date of the appraisal.

Alternatively, that use, from among reasonably probable and legal alternative uses, found to be physically possible, appropriately supported, financially feasible, and which results in highest land value.

The highest and best use of a property is an economic concept that measures the interaction of the following four criteria – legally permissible, physically possible, financially feasible and maximally productive. The determination of a property's highest and best use is a critical appraisal component that provides the valuation framework upon which comparable market information is derived. Such comparable data includes cost, sales, and income and expense data pertaining to the property's concluded best use.

To render a reliable use and value estimate, the highest and best use of the property as if vacant must be considered separately from the highest and best use of the property as improved. This is because the site must be valued as though vacant and available for development to its highest and best use even if the property's existing improvements do not represent the highest and best use of the site. The following discussion relates to the highest and best use considerations of the subject as though “as if” vacant and as improved followed by supporting analyses and conclusions.

Item Number: 14.

_ Michael J. Francis, MAI
27 HIGHEST AND BEST USE - “AS IF” VACANT
Highest and best use of land or a site as though vacant7 is defined as:

Among all reasonable, alternative uses, the use that yields the highest present land value, after payments are made for labor, capital, and coordination. The use of a property based on the assumption that the parcel of land is vacant or can be made vacant by demolishing any improvements.

Legally Permissible. The current zoning for subject property allows for a variety of commercial uses.

Physically Possible. The physical characteristics of a site that may affect its possible use(s) include, but are not limited to, location, street frontage, size, shape, street access, availability of utilities, easements, soils and sub-soils, and topography. From the physical inspection of the subject property, it appears that the subject property can physically support a number of use types assuming that the soils conditions are made adequate for property development.

Financially Feasible. It appears as though a variety of commercial related developments may be financially feasible. Among the physically and legally permissible land uses which may be considered a financially feasible improvement is any use that provides a positive net return to the land. Given the current real estate market, a variety of commercial developments may be financially feasible.

Maximally Productive. The determination of financial feasibility is dependent primarily upon demand. Given the subject’s physical characteristics and considering the subject’s zoning and the subject’s location, it is my opinion that an office development represents the Highest and Best Use of the subject site. 7Per The Dictionary of Real Estate Appraisal, Third Edition, (Chicago: Appraisal Institute,1993) p. 171 )
Item Number: 14.

_ Michael J. Francis, MAI
28 Conclusion: Highest and Best Use - "As If" Vacant
Given the current developed properties found in the immediate and surrounding areas and the subject’s current real estate market, the most appropriate use of the subject site, “as if” currently vacant, appears to be for office development. It, therefore, appears that the highest and best use of the subject site “as if” vacant appears to be for office development of the subject site.

Item Number: 14.

_ Michael J. Francis, MAI
29 HIGHEST AND BEST USE - AS IMPROVED
Highest and Best Use of property as improved8 is defined as:

The use that should be made of a property as it exists. An existing property should be renovated or retained as long as it continues to contribute to the total market value of the property, or until the return from a new improvement would more than offset the cost of demolishing the existing building and constructing a new one.

Legally Permissible. Within the scope of this legal analysis, the existing improvements of the subject property are assumed to a legal, conforming use of the site with respect to the zoning requirements.

Physically Possible. There appears to be no reason the subject site cannot continue to support the existing improvements. Based on the subject's land area, its configuration, the positioning and design of the improvements on the site and so forth, the existing improvements are appear functional for the site.

Financially Feasible. Estimated income and expenses for the subject are given in the Income Approach section of this report. The resulting estimate of the subject's net operating income suggests the property can generate income in excess of its operating expenses. This net operating income was then capitalized into a value indication which is supported by the value indication reached via the sales comparison approach. A review of the comparable land values for comparably zoned properties indicates that the subject’s corresponding land value would be significantly less than the value reflected by my estimate of the current market value of the subject property as presently improved, indicating that demolition of the improvements is not prudent. 8Per The Dictionary of Real Estate Appraisal, Third Edition, (Chicago: Appraisal Institute,1993) p. 171 )
Item Number: 14.

_ Michael J. Francis, MAI
30 Maximally Productive. No other probable or profitable alternative use for the site is believed to exist that would economically justify removal or modification of the existing improvements to allow for an alternate use. Therefore, until such time as the existing improvements outlive their economic life, the currently maximally productive and, therefore, the Highest and Best Use of the property as improved is the existing subject building.

Conclusion: Highest and Best Use - As Improved
The subject improvements are designed in a cosmetic quality exterior fashion such that, in my opinion, they generally conform to the immediate area. Furthermore, a comparison of the value conclusions reached in the valuation analysis which follows, indicates that the improvements have a contributory value to the land. Therefore, after having applied the tests of availability, adaptability, and demand, I have concluded that until such time as the existing improvements outlive their economic life, the present Highest and Best Use "as improved" of the subject site is the current existing subject building improvements.

Item Number: 14.

_ Michael J. Francis, MAI
31 VALUATION METHODOLOGY
Basis of Valuation
The valuation performed herein is based on general and specific background experience, opinions of qualified informed persons, consideration of all data gathered during the investigative phase of the appraisal, and on analysis of all market data available to the appraisers.

Valuation Approaches / Appraisal Methodology
The three primary approaches to value that are available to the appraiser are: the Cost Approach, the Income Approach, and the Sales Comparison Approach. Due to the difficulties in estimating depreciation and entrepreneurial profit, the Cost Approach was not utilized in this valuation analysis. The Sales Comparison Approach and the Income Approach were utilized in this valuation analysis.

Sales Comparison Approach
The Principle of Substitution states that the value of a property tends to be set by the price at which comparable properties have recently sold or for which they can be bought. This approach requires a detailed comparison of sales of comparable properties with the subject property. One of the main requisites is that sufficient transactions of comparable properties be available to provide an accurate indication of value and that accurate information regarding price, terms, property description and use of these sale properties is obtained through interview and inspection.

Income Approach
This approach is based on the theory that the value of a property reflects the benefits anticipated by the owner during the period of ownership. It is in effect the present value of a future income stream. This approach requires an estimate of gross income, an analysis of all expense items, the selection of a capitalization rate, and the processing of the estimated net income into the value estimate.

Item Number: 14.

_ Michael J. Francis, MAI
32 SALES COMPARISON APPROACH
The Principle of Substitution states that the value of a property tends to be set by the price at which comparable properties have recently sold or for which they can be bought. The Sales Comparison Approach requires a detailed comparison of sales of comparable properties with the subject property. I have analyzed recent comparable property sales within the subject’s general area utilizing a price per square foot analysis, the primary indicator of value utilized by buyers in the market. By analyzing these comparable sales for their similarities and differences and then adjusting them for such differences, an indication of the subject's value can be derived.

Building Sales Analysis
On the following pages is a brief summary of the office building sale comparables analyzed followed by an adjustment grid and a brief discussion of the building sale comparables that were analyzed. A map and photos of the building sales are given in the addenda of this report.

Item Number: 14.

Office Building Sales Summary
Data Sales Building Parking Year Sales Price
No. Property Address Date Size (SF) Ratio Built Price / SF 1 2100 E. Tahquitz Canyon Way 3/16/22 7,970 4.6:1,000 1980 $1,870,000 Palm Springs $234.63
Comments: One story class C medical office building.
2 11940 Palm Dr. 3/18/21 4,400 5.2:1,000 1985 $546,000
Desert Hot Springs $124.09
Comments: Two story class C office building.
3 56483 Antelope Trail 4/12/21 2,085 6.8:1,000 1969 $192,000 Yucca Valley $92.09
Comments: One story class C office building.
4 950 N. Farrell Dr. 9/20/22 6,297 13.2:1,000 1986 $580,000 Palm Springs $92.11
Comments: One story class C office building.
5 2145 Tahquitz Canyon Way 6/1/22 7,287 4.9:1,000 1974 $1,589,171 Palm Springs $218.08
Comments: One story class B medical office building. The above price represents an allocated sales amount.

Item Number: 14.

OFFICE PROPERTY SALES ADJUSTMENT GRID
Bldg. Bldg. FAR /
Property Condition Market Condition / T.I. / Quality / Parking Data Rights Sub- Financing Sub- of Sale Sub- Conditions Sub Location Bldg. Size Bldg. Age Design / Appeal Ratio Adjusted No. Price / SF Adj. Total Adj. Total Adj. Total Adj. Total Adj. Adj. Adj. Adj. Adj. Total $/SF 1 $234.63 0% $234.63 0% $234.63 0% $234.63 2% $239.32 -15% 4% -8% -30% 0% -49% $122.05 2 $124.09 0% $124.09 0% $124.09 0% $124.09 6% $131.54 -5% 1% -9% -10% 0% -23% $101.28 3 $92.09 0% $92.09 0% $92.09 0% $92.09 6% $97.62 7% -2% -3% -6% 0% -4% $93.71 4 $92.11 0% $92.11 0% $92.11 20% $110.53 1% $111.64 -10% 3% -5% -6% -5% -23% $85.96 5 $218.08 0% $218.08 0% $218.08 0% $218.08 2% $222.44 -15% 4% -10% -30% 0% -51% $109.00 Unadjusted Range: $92.09 to $234.63
Adjusted Range: $85.96 to $122.05

Item Number: 14.
_ Michael J. Francis, MAI
35 Building Sales Analysis
The office building sales analyzed were located within the subject’s greater area and ranged in size from 2,085 square feet to 7,970 square feet and reflected a value range of between $92.09/sf to $234.63/sf. As far as your appraiser could determine, all of the comparables sold on an all cash basis, or if seller financing was involved, the seller financing generally reflected a market interest rate and terms and, therefore, no cash equivalency adjustments were found to be required. Furthermore, all the sale comparables represented arms-length transactions and, therefore, no adjustments for these reasons nor for property rights conveyed were found to be required.

According to brokers interviewed and sales data in my files, over the past three years prices have risen in the range of say 3% to 5% per year (say approximately 4% per year on average). Consequently, I have based my time adjustments for market conditions for building sale comparables analyzed within this report, accordingly.

Numerous adjustments relating to property location, building size, building age and condition, building quality, design and appeal, economic characteristics and parking ratio adjustments relating to the sale comparables was considered and adjusted for as shown in the previous adjustment grid.

Conclusion of Market Value Via the Sales Comparison Approach Given this data and analysis and discussions with brokers knowledgeable with the subject's area, I have estimated the market value of the subject’s building to be approximately $100/sf.

I have, therefore, estimated the market value of the subject’s building as shown below. 3,520 sq. ft. x $100/sq. ft. = $352,000 (say: $350,000) Item Number: 14.

_ Michael J. Francis, MAI
36 Based upon this analysis, I have estimated the current “as is” market value of the subject property via the Sales Comparison Approach to be as follows:
$350,000
Item Number: 14.

_ Michael J. Francis, MAI
37 INCOME APPROACH
The Income Approach to value is predicated on the assumption that a relationship exists between income that a property can produce and the value of the property.

Therefore, from an estimate of the income stream that a property is likely to generate during the period of ownership, an estimate of the property value can be made. In this approach, the subject is compared to the competition in its market to establish an estimate of its income producing capability and, hence, its value. There are seven basic steps taken in the Income Approach analysis utilized herein. Those steps are:

1. Estimate current market rent for the property being appraised, giving consideration to current leases;

2. Estimate vacancy and collection loss stabilized allowance;

3. Estimate operation expenses in light of normal lease terms;

4. Estimate annual net operating income after deducting expenses and allowances;

5. Select the appropriate capitalization method and rate(s) from the marketplace;

6. Process the anticipated net income to a value estimate; and

7. Adjust for existing leases, if necessary.

Market Rental Survey
On the following page is a summary of comparable property rentals that were analyzed followed by a brief discussion of the adjustments made to the rental comparables. A map and photos of the rental comparables are given in the addenda of this report.

Item Number: 14.

Rental Comparable Summary
Approx.

Approx. Actual Equivalent
Data Total Bldg. Year Parking Unit Rent / NNN Rent / Quarter No. Property Address Size (SF) Built Ratio Size (SF) SF/Mo. SF/Mo. Leased 1 65861 Pierson Blvd. 3,200 1970 3.8 / 1,000 800 $1.18 $0.93 3rd / 2021 Desert Hot Springs MG NNN
800 $1.19 $0.94 1st / 2021
MG NNN
2 13550-13570 Palm Dr. 6,844 1983 7.1 / 1,000 3,600 $1.25 $1.00 3rd / 2020 Desert Hot Springs MG NNN
3 12155 Palm Dr. 11,800 1992 3.1 / 1,000 1,100 $1.04 $0.79 3rd / 2019 Desert Hot Springs MG NNN
4 5000 E. Calle San Raphael 16,250 1976 1.8 / 1,000 1,525 $1.15 $0.90 3rd / 2021 Palm Springs MG NNN
5 1281 N. Gene Autry Trail 33,000 1985 1.7 / 1,000 1,800 $1.11 $0.86 2nd / 2021 Palm Springs NNN NNN
Item Number: 14.

_ Michael J. Francis, MAI
39 Rental Data Analysis
The preceding summarized rental comparables analyzed all represented office properties located within the subject’s greater general area and reflected a rental range of between $0.79/sf/month to $1.00/sf/month on an effective NNN lease basis. Lease terms for the rental comparables mostly ranged from approximately 3 to 5 years and provided for periodic rental increases. Given the strength of the subject’s greater office market, free rent typically ranged from 0 to 3 months depending on the lease term and landlords provided for little to no tenant improvement allowances.

According to brokers interviewed, effective rental rates for office space in the subject’s market over the past 3 years have increased on average by approximately 2% to 4% per year (say approximately 3% per year). I have, therefore, applied my time adjustments for market conditions to the rental comparables I have analyzed in this report accordingly.

Subject Rental Rate and Annual Market Rent Conclusion
Numerous adjustments relating to property location, building size, building age and condition, building quality, design and appeal, economic characteristics and parking ratio adjustments relating to the comparable rentals were considered and adjusted for as needed. All of the rental comparables needed some downward adjustment for their overall superior building design with respect to more windows (as discussed earlier), their generally closer immediate parking proximity relative to the building and their generally overall superior condition and appeal. Data # 1 requires some partially offsetting upward adjustment for its smaller unit size. Data # 2, 3, 4 and 5 also require some additional downward adjustment for their superior locations. Data # 2 and 3 require some offsetting upward adjustment for their older lease dates.

Given this rental comparable data and discussions with brokers knowledgeable with the subject's area, I estimate the market rent for the subject property to be approximately $0.70/sf/month on a NNN basis.

Item Number: 14.

_ Michael J. Francis, MAI
40 Vacancy & Collection Loss
Vacancy rates among stabilized comparable product, per brokers interviewed, in the subject’s greater area generally range between 3% to 10%, depending primarily on the location, age and quality of product. Based on this analysis and considering the location and physical characteristics of the subject property, I have estimated an overall stabilized vacancy and collection loss at a rate of 6% for the subject building as appropriate.

Expenses
I have reviewed some limited historical utility expense data for the subject property which was found to be somewhat higher than operating expense parameters for typical office properties. The subject is assumed to be leased on an effective triple net basis in which the tenant is to pay for the property operating expenses. I have, therefore, estimated the ownership to only incur property operating expenses relating to property management and reserves for replacement. Property management expenses on single tenant properties comparable to the subject generally range from 3% to 5% of the effective gross income. Based on this information and given the size, physical characteristics and tenancy of the subject property, I have estimated management expenses for the subject property to be 4% of the effective gross income.

Reserves for replacement on properties comparable to the subject generally range between $0.30/sf/year to $0.40/sf/year. Given this information and the subject’s building age and physical condition, I have estimated reserves for replacement be $0.35/sf/year.

Capitalization Analysis
The most widely used method of capitalization in this particular market is Direct Capitalization. Direct Capitalization is a method of converting a property's net income (exclusive of debt service and depreciation) into an indication of value. There is definitive market evidence indicating a direct relationship between a property's present income and its sale price. Overall capitalization rates are derived from comparable rental properties that have sold recently. This rate is extracted by dividing a sale Item Number: 14.

_ Michael J. Francis, MAI
41 property's net income by its sales price. Stabilized capitalization rates are derived from comparable properties using market rents, vacancy factors, and expenses.

Given in the addenda of this report is a summary of 48 office property sales in the Inland Empire over the past two years, 45 of which contained OAR information. These office property sales reflected an OAR range of between 3.35% to 7.76%. According to real estate brokers I have interviewed, OARs for comparable product in the subject’s type of location with similar physical characteristics generally fall toward the upper end of this range. Considering OAR information from these sales and other comparable commercial property sales in the subject’s greater area and considering the subject’s location and other physical characteristics and my discussions with knowledgeable real estate brokers and property managers familiar with the local real estate market I have concluded that an overall rate of 7.25% is a reasonable rate for the subject property.

Conclusion of Market Value Via the Income Approach
Based upon this analysis and as shown on the following page, I have performed a direct capitalization analysis for the subject property. Based upon this analysis, I have estimated the current “as is” market value of the Fee Simple Estate of the subject property via the Income Approach to be as follows:
$350,000
Item Number: 14.

Direct Capitalization Analysis
Annual Potential Gross Rental Income: $29,568
Less: Vacancy & Collection Loss: $1,774
Effective Gross Income: $27,794
Less: Operating Expenses:

Management: $1,112
Reserves for Replacement: $1,232
Total Expenses: $2,344
NET OPERATING INCOME: $25,450
(before debt service, income taxes or depreciation)
CAPITALIZATION RATE - Divided by: 7.25% $351,037
Indicated Value: Rounded: $350,000
INDICATED "AS IS" MARKET VALUE VIA THE INCOME APPROACH: $350,000 Item Number: 14.

_ Michael J. Francis, MAI
43 RECONCILIATION AND FINAL VALUE
The value indications for the subject property according to the two value approaches employed are as follows:

SALES COMPARISON APPROACH: $350,000
INCOME APPROACH: $350,000
The Sales Comparison Approach was utilized in which comparable properties were analyzed on a price per square foot basis. Smaller properties such as the subject property are often owner occupied and the value for such properties is often established via the Sales Comparison Approach. Consequently, significant weight was placed on the Sales Comparison Approach indication of value.

The Income Approach was utilized in which potential rental income and expenses for the subject were projected in order to estimate net operating income which was then capitalized into a value estimate. Properties such as the subject property are also often purchased by investors and the value for such properties is often established via the Income Approach. Consequently, I have also placed a significant amount of weight on the value indication reached via the Income Approach.

The following value estimate reflects current market conditions. Current market conditions are improving and the long term market outlook for properties such as the subject is believed to be relatively good. The current marketability of properties such as the subject is improving and this trend is reportedly projected to continue within the near term. Based upon my investigations and analysis conducted, current market conditions and my experience as a real estate analyst and appraiser, I have formed the opinion that as of November 3, 2022, and subject to the Assumptions and Limiting Conditions set forth in the report which follows, the current “as is” market value of the subject property is as follows:
$350,000
Item Number: 14.

_ Michael J. Francis, MAI
44 Estimate of Exposure Time
Market sales activity has been generally slow over the past year. The final value estimate reflects an exposure period of approximately 3 to 24 months, with an approximate average exposure time of 15 months. This estimate is based on the market data evidence presented and interviews with those active and knowledgeable in this real estate market.

Item Number: 14.

_ Michael J. Francis, MAI
45 ADDENDA
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_ Michael J. Francis, MAI
46 Aerial Photo of the Subject Property
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_ Michael J. Francis, MAI
47 Location and Neighborhood Map
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_ Michael J. Francis, MAI
48 Subject Photos
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49 Subject’s MLS Property Detail Reports
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_ Michael J. Francis, MAI
50 Subject’s Building Sketch
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_ Michael J. Francis, MAI
51 Map and Photos of Comparable Building Sales
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_ Michael J. Francis, MAI
52 Map and Photos of Comparable Rentals
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_ Michael J. Francis, MAI
53 Property Sales Summary Containing OAR Information
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_ Michael J. Francis, MAI
54 Preliminary Title Report
Item Number: 14.

Lawyers Title Company
3480 Vine Street Suite 300
Riverside, CA 92507
Phone: (951) 774-0825
Fax: ( )
CLTA Preliminary Report Form – Modified (11-17-06)

County of Riverside Facilities Management Real
Estate Division
Title Officer: Barbara Northrup--So
3450 14th Street, 2nd Floor email: [email protected]
Riverside, CA 92501 Phone No.: (951) 248-0669
Fax No.:

Attn: CRAIG OLSEN File No.: 622650360
Your Reference No: DHS Library
Property Address: 11691 West Drive, City of Desert Hot Springs, California

PRELIMINARY REPORT
Dated as of October 18, 2022 at 7:30 a.m.

In response to the application for a policy of title insurance referenced herein, Lawyers Title Company hereby reports that it is prepared to issue, or cause to be issued, as of the date hereof, a policy or policies of title insurance describing the land and the estate or interest therein hereinafter set forth, insuring against loss which may be sustained by reason of any defect, lien or encumbrance not shown or referred to as an exception herein or not excluded from coverage pursuant to the printed Schedules, Conditions and Stipulations or Conditions of said policy forms.

The printed Exceptions and Exclusions from the coverage and Limitations on Covered Risks of said policy or policies are set forth in Attachment One. The policy to be issued may contain an arbitration clause. When the Amount of Insurance is less than that set forth in the arbitration clause, all arbitrable matters shall be arbitrated at the option of either the Company or the Insured as the exclusive remedy of the parties. Limitation on Covered Risks applicable to the CLTA and ALTA Homeowner's Policies of Title Insurance which establish a Deductible Amount and a Maximum Dollar Limit of Liability for certain coverages are also set forth in Attachment One. Copies of the policy forms should be read. They are available from the office which issued this report.

The policy(s) of title insurance to be issued hereunder will be policy(s) of Commonwealth Land Title Insurance Company.

Please read the exceptions shown or referred to below and the exceptions and exclusions set forth in Attachment One of this report carefully. The exceptions and exclusions are meant to provide you with notice of matters which are not covered under the terms of the title insurance policy and should be carefully considered. It is important to note that this preliminary report is not a written representation as to the condition of title and may not list all liens, defects, and encumbrances affecting title to the land.

This report (and any supplements or amendments hereto) is issued solely for the purpose of facilitating the issuance of a policy of title insurance and no liability is assumed hereby. If it is desired that liability be assumed prior to the issuance of a policy of title insurance, a Binder or Commitment should be requested.

Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

SCHEDULE A
The form of policy of title insurance contemplated by this report is:

CLTA Standard Owners
ALTA Loan 2021
The estate or interest in the land hereinafter described or referred to covered by this report is:

A FEE
Title to said estate or interest at the date hereof is vested in:

County of Riverside
The land referred to herein is situated in the County of Riverside, State of California, and is described as follows:

SEE EXHIBIT “A” ATTACHED HERETO AND MADE A PART HEREOF
Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

EXHIBIT “A”
All that certain real property situated in the County of Riverside, State of California, described as follows:

That portion of the Southeast one-quarter of the Southeast one-quarter of Section 25, Township 2 South, Range 4 East, San Bernardino Base and Meridian in the City of Desert Hot Springs, County of Riverside, State of California, described as follows:

Beginning at the Southeast corner of said Section 25;
Thence North 00°14’00” West along the East line of said Southeast 25, a distance of 635.31 feet to the point of beginning;
Thence continuing North 00°14’00” West along said East line, a distance of 15.00 feet; Thence North 89°52’58” West, a distance of 208.00 feet; Thence South 00°07’02” East, a distance of 48.00 feet;
Thence South 89°52’58” East, a distance of 97.00 feet;
Thence North 00°14’00” West, a distance of 33.00 feet;
Thence South 89°52’58” East, a distance of 111.00 feet to the true point of beginning.

Excepting therefrom the Easterly 40 feet in West Drive.

Assessor’s Parcel No: 664-190-027
Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

SCHEDULE B
At the date hereof Exceptions to coverage in addition to the printed exceptions and exclusions in said policy form would be as follows:

A. There were no taxes levied for the fiscal year 2022-2023 as the property was vested in a public entity.

B. Any liens or other assessments, bonds, or special district liens including without limitation, Community Facility Districts, that arise by reason of any local, City, Municipal or County Project or Special District.

C. The lien of supplemental or escaped assessments of property taxes, if any, made pursuant to the provisions of Chapter 3.5 (commencing with Section 75) or Part 2, Chapter 3, Articles 3 and 4, respectively, of the Revenue and Taxation Code of the State of California as a result of the transfer of title to the vestee named in Schedule A; or as a result of changes in ownership or new construction occurring prior to date of policy.

D. Notice of Assessment Desert Hot Springs County Water District Assessment District No. 3 Recording Date: June 20, 1975
Recording No.: as Instrument No. 73100 of Official Records

1. Water rights, claims or title to water, whether or not disclosed by the public records.

2. Easement(s) in favor of the public over any existing roads lying within said Land.

3. Matters contained in that certain document
Entitled: Lease and Leases
Dated: December 28, 1971
Executed by: Herbert Goldhammer and The City of Desert Hot Springs, a municipal corporation
Recording Date: May 3, 1972
Recording No: as Instrument No. 57506 of Official Records Reference is hereby made to said document for full particulars.

Affects: The herein described Land and other land.

4. Easement(s) for the purpose(s) shown below and rights incidental thereto, as granted in a document:

Granted to: Southern California Edison Company
Purpose: underground electrical supply systems and communication systems Recording Date: July 9, 1979
Recording No: as Instrument No. 142587 of Official Records Affects: said land more particularly described therein
The exact location and extent of said easement is not disclosed of record.

Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

5. The Land described herein is included within a project area of the Redevelopment Agency shown below, and that proceedings for the redevelopment of said project have been instituted under the Redevelopment Law (such redevelopment to proceed only after the adoption of the Redevelopment Plan) as disclosed by a document.

Redevelopment Agency: Desert Hot Springs Redevelopment Project No. 1 Recording Date: July 2, 1982
Recording No: as Instrument No. 125975 of Official Records Statement of Redevelopment Plan Amendment
Recording Date: July 13, 2011
Recording No.: as Instrument No. 2011-0306455 of Official Records

6. Matters contained in that certain document
Entitled: Parking, Easement and Purchase Options Agreement Dated: October 25, 1983
Executed by: City of Desert Hot Springs, a municipal corporation and County of Riverside, a public agency
Recording Date: November 2, 1983
Recording No: as Instrument No. 228974 of Official Records Reference is hereby made to said document for full particulars.

7. Matters which may be disclosed by an inspection and/or by a correct ALTA/ACSM Land Title Survey of said Land that is satisfactory to the Company, and/or by inquiry of the parties in possession thereof.

8. Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.

The Company will require, for review, a full and complete copy of any unrecorded agreement, contract, license and/or lease, together with all supplements, assignments and amendments thereto, before issuing any policy of title insurance without excepting this item from coverage.

The Company reserves the right to except additional items and/or make additional requirements after reviewing said documents.

9. Any easements not disclosed by the public records as to matters affecting title to real property, whether or not said easements are visible and apparent.

10. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other matters which a correct survey would disclose and which are not shown by the public records.

END OF SCHEDULE B EXCEPTIONS
PLEASE REFER TO THE “NOTES AND REQUIREMENTS SECTION” WHICH FOLLOWS FOR

INFORMATION NECESSARY TO COMPLETE THIS TRANSACTION
Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

REQUIREMENTS SECTION:

NONE
Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

INFORMATIONAL NOTES SECTION
The information on the attached plat is provided for your convenience as a guide to the general location of the subject property. The accuracy of this plat is not guaranteed, nor is it a part of any policy, report or guarantee to which it may be attached.

California insurance code section 12413.1 regulates the disbursement of escrow and sub-escrow funds by title companies. The law requires that funds be deposited in the title company escrow account and available for withdrawal prior to disbursement. Funds deposited with the company by wire transfer may be disbursed upon receipt. Funds deposited with the company via cashier’s check or teller's check drawn on a California based bank may be disbursed on the next business day after the day of deposit.

If funds are deposited with the company by other methods, recording and/or disbursement may be delayed. All escrow and sub-escrow funds received by the company will be deposited with other escrow funds in one or more non-interest bearing escrow accounts of the company in a financial institution selected by the company. The company may receive certain direct or indirect benefits from the financial institution by reason of the deposit of such funds or the maintenance of such accounts with such financial institution, and the company shall have no obligation to account to the depositing party in any manner for the value of, or to pay to such party, any benefit received by the company.

Those benefits may include, without limitation, credits allowed by such financial institution on loans to the company or its parent company and earnings on investments made with the proceeds of such loans, accounting, reporting and other services and products of such financial institution. Such benefits shall be deemed additional compensation of the company for its services in connection with the escrow or sub-escrow.

For wiring Instructions please contact your Title Officer or Title Company Escrow officer.

Lawyers Title is a division of Commonwealth Land Title Insurance Company. The insurer in policies of title insurance, when issued in this transaction, will be Commonwealth Land Title Insurance Company.

Notice: Please be aware that due to the conflict between federal and state laws concerning the cultivation distribution, manufacture or sale of marijuana, the Company is not able to close or insure any transaction involving Land that is associated with these activities.

Pursuant to Government Code Section 27388.1, as amended and effective as of 1-1-2018, a Documentary Transfer Tax (DTT) Affidavit may be required to be completed and submitted with each document when DTT is being paid or when an exemption is being claimed from paying the tax. If a governmental agency is a party to the document, the form will not be required. DDT Affidavits may be available at a Tax Assessor-County Clerk-Recorder.

Due to the special requirements of SB 50 (California Public Resources Code Section 8560 et seq.), any transaction that includes the conveyance of title by an agency of the United States must be approved in advance by the Company’s State Counsel, Regional Counsel, or one of their designees.

The following Exclusion(s) are added to preliminary reports, commitments and will be included as an endorsement in the following policies:

A. 2006 ALTA Owner’s Policy (06-17-06).

6. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

B. 2006 ALTA Loan Policy (06-17-06).

8. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

9. Any claim of invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage based on the application of a Tribe’s law resulting from the failure of the Insured Mortgage to specify State law as the governing law with respect to the lien of the Insured Mortgage.

C. ALTA Homeowner’s Policy of Title Insurance (12-02-13) and CLTA Homeowner's Policy of Title Insurance (12-02-13).

10. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

D. ALTA Expanded Coverage Residential Loan Policy - Assessments Priority (04-02-15).

12. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the Public Records but that would be disclosed by an examination of any records maintained by or on behalf of a Tribe or on behalf of its members.

13. Any claim of invalidity, unenforceability, or lack of priority of the lien of the Insured Mortgage based on the application of a Tribe’s law resulting from the failure of the Insured Mortgage to specify State law as the governing law with respect to the lien of the Insured Mortgage.

E. CLTA Standard Coverage Policy 1990 (11-09-18).

7. Defects, liens, encumbrances, adverse claims, notices, or other matters not appearing in the public records but that would be disclosed by an examination of any records maintained by or on behalf of a tribe or on behalf of its members.

8. Any claim of invalidity, unenforceability, or lack of priority of the lien of the insured mortgage based on the application of a tribe’s law resulting from the failure of the insured mortgage to specify state law as the governing law with respect to the lien of the insured mortgage.

None of the items shown in this report will cause the Company to decline to attach CLTA Endorsement Form 100 to an ALTA Loan Policy, when issued.

The following information will be included in the CLTA Form 116 or ALTA Form 22-06 Endorsement to be issued pursuant to this order:

There is located on said Land: commercial/industrial property Known as: 11691 West Drive, City of Desert Hot Springs, California There are no conveyances affecting said Land recorded within 24 months of the date of this report.

The Company requires current beneficiary demands prior to closing. If the demand is expired and a current demand cannot be obtained, our requirements will be as follows:
a) If the Company accepts a verbal update on the demand, we may hold an amount equal to one monthly mortgage payment. This hold will be in addition to the verbal hold the lender may have stipulated. b) If the Company cannot obtain a verbal update on the demand, we will either pay off the expired demand or wait for the amended demand, at our discretion. c) All payoff figures are verified at closing. If the customer's last payment was made within 15 days of closing, our Payoff Department may hold one month's payment to insure the check has cleared the bank (unless a copy of the cancelled check is provided, in which case there will be no hold).

Processor: drv
Date Typed: October 25, 2022
Item Number: 14.

File No: 622650360
Attachment One (Revised 05-06-16)

CALIFORNIA LAND TITLE ASSOCIATION
STANDARD COVERAGE POLICY – 1990

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys' fees or expenses which arise by reason of:

1. (a) Any law, ordinance or governmental regulation (including but not limited to building or zoning laws, ordinances, or regulations) restricting, regulating, prohibiting or relating (i) the occupancy, use, or enjoyment of the land; (ii) the character, dimensions or location of any improvement now or hereafter erected on the land; (iii) a separation in ownership or a change in the dimensions or area of the land or any parcel of which the land is or was a part; or (iv) environmental protection, or the effect of any violation of these laws, ordinances or governmental regulations, except to the extent that a notice of the enforcement thereof or a notice of a defect, lien, or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy. (b) Any governmental police power not excluded by (a) above, except to the extent that a notice of the exercise thereof or notice of a defect, lien or encumbrance resulting from a violation or alleged violation affecting the land has been recorded in the public records at Date of Policy.

2. Rights of eminent domain unless notice of the exercise thereof has been recorded in the public records at Date of Policy, but not excluding from coverage any taking which has occurred prior to Date of Policy which would be binding on the rights of a purchaser for value without knowledge.

3. Defects, liens, encumbrances, adverse claims or other matters:
(a) whether or not recorded in the public records at Date of Policy, but created, suffered, assumed or agreed to by the insured claimant;
(b) not known to the Company, not recorded in the public records at Date of Policy, but known to the insured claimant and not disclosed in writing to the Company by the insured claimant prior to the date the insured claimant became an insured under this policy;
(c) resulting in no loss or damage to the insured claimant; (d) attaching or created subsequent to Date of Policy; or (e) resulting in loss or damage which would not have been sustained if the insured claimant had paid value for the insured mortgage or for the estate or interest insured by this policy.

4. Unenforceability of the lien of the insured mortgage because of the inability or failure of the insured at Date of Policy, or the inability or failure of any subsequent owner of the indebtedness, to comply with the applicable doing business laws of the state in which the land is situated.

5. Invalidity or unenforceability of the lien of the insured mortgage, or claim thereof, which arises out of the transaction evidenced by the insured mortgage and is based upon usury or any consumer credit protection or truth in lending law.

6. Any claim, which arises out of the transaction vesting in the insured the estate of interest insured by this policy or the transaction creating the interest of the insured lender, by reason of the operation of federal bankruptcy, state insolvency or similar creditors' rights laws.

Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

EXCEPTIONS FROM COVERAGE - SCHEDULE B, PART I
This policy does not insure against loss or damage (and the Company will not pay costs, attorneys' fees or expenses) which arise by reason of:

1. Taxes or assessments which are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the public records.

Proceedings by a public agency which may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the public records.

2. Any facts, rights, interests, or claims which are not shown by the public records but which could be ascertained by an inspection of the land or which may be asserted by persons in possession thereof.

3. Easements, liens or encumbrances, or claims thereof, not shown by the public records.

4. Discrepancies, conflicts in boundary lines, shortage in area, encroachments, or any other facts which a correct survey would disclose, and which are not shown by the public records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b) or (c) are shown by the public records.

6. Any lien or right to a lien for services, labor or material not shown by the public records.

CLTA HOMEOWNER'S POLICY OF TITLE INSURANCE (12-02-13)

ALTA HOMEOWNER'S POLICY OF TITLE INSURANCE

EXCLUSIONS
In addition to the Exceptions in Schedule B, You are not insured against loss, costs, attorneys' fees, and expenses resulting from:

1. Governmental police power, and the existence or violation of those portions of any law or government regulation concerning:
a. building;
b. zoning;
c. land use;
d. improvements on the Land;
e. land division; and
f. environmental protection.

This Exclusion does not limit the coverage described in Covered Risk 8.a., 14, 15, 16, 18, 19, 20, 23 or 27.

2. The failure of Your existing structures, or any part of them, to be constructed in accordance with applicable building codes.

This Exclusion does not limit the coverage described in Covered Risk 14 or 15.

3. The right to take the Land by condemning it. This Exclusion does not limit the coverage described in Covered Risk 17.

4. Risks:
a. that are created, allowed, or agreed to by You, whether or not they are recorded in the Public Records; b. that are Known to You at the Policy Date, but not to Us, unless they are recorded in the Public Records at the Policy Date;
c. that result in no loss to You; or
d. that first occur after the Policy Date - this does not limit the coverage described in Covered Risk 7, 8.e., 25, 26, 27 or

28. 5. Failure to pay value for Your Title.

6. Lack of a right:

Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

a. to any land outside the area specifically described and referred to in paragraph 3 of Schedule A; and b. in streets, alleys, or waterways that touch the Land.

This Exclusion does not limit the coverage described in Covered Risk 11 or 21.

7. The transfer of the Title to You is invalid as a preferential transfer or as a fraudulent transfer or conveyance under federal bankruptcy, state insolvency, or similar creditors’ rights laws.

8. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

9. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

LIMITATIONS ON COVERED RISKS
Your insurance for the following Covered Risks is limited on the Owner’s Coverage Statement as follows:
• For Covered Risk 16, 18, 19, and 21 Your Deductible Amount and Our Maximum Dollar Limit of Liability shown in Schedule A.

The deductible amounts and maximum dollar limits shown on Schedule A are as follows:

Your Deductible Amount
Our Maximum Dollar
Limit of Liability
Covered Risk 16: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 $ 10,000.00 (whichever is less)
Covered Risk 18: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less)
Covered Risk 19: 1.00% of Policy Amount Shown in Schedule A or $5,000.00 $ 25,000.00 (whichever is less)
Covered Risk 21: 1.00% of Policy Amount Shown in Schedule A or $2,500.00 $ 5,000.00 (whichever is less)
2006 ALTA LOAN POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

(b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 13 or 14); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction evidenced by the Insured Mortgage and is based upon usury or any consumer credit protection or truth-in-lending law.

6. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 13(b) of this policy.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the Insured Mortgage in the Public Records. This Exclusion does not modify or limit the coverage provided under Covered Risk 11(b).

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
Except as provided in Schedule B - Part II, This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of:

PART I
In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown by the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material not shown by the Public Records.

PART II
Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

In addition to the matters set forth in Part I of this Schedule, the Title is subject to the following matters, and the Company insures against loss or damage sustained in the event that they are not subordinate to the lien of the Insured Mortgage:
2006 ALTA OWNER’S POLICY (06-17-06)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy, and the Company will not pay loss or damage, costs, attorneys' fees, or expenses that arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 6.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 9 and 10); or
(e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Title.

4. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction vesting the Title as shown in Schedule A, is (a) a fraudulent conveyance or fraudulent transfer; or
(b) a preferential transfer for any reason not stated in Covered Risk 9 of this policy.

5. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching between Date of Policy and the date of recording of the deed or other instrument of transfer in the Public Records that vests Title as shown in Schedule A.

The above policy form may be issued to afford either Standard Coverage or Extended Coverage. In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

EXCEPTIONS FROM COVERAGE
This policy does not insure against loss or damage, and the Company will not pay costs, attorneys’ fees or expenses, that arise by reason of:

In addition to the above Exclusions from Coverage, the Exceptions from Coverage in a Standard Coverage policy will also include the following Exceptions from Coverage:

Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

1. (a) Taxes or assessments that are not shown as existing liens by the records of any taxing authority that levies taxes or assessments on real property or by the Public Records; (b) proceedings by a public agency that may result in taxes or assessments, or notices of such proceedings, whether or not shown by the records of such agency or by the Public Records.

2. Any facts, rights, interests, or claims that are not shown in the Public Records but that could be ascertained by an inspection of the Land or that may be asserted by persons in possession of the Land.

3. Easements, liens or encumbrances, or claims thereof, not shown by the Public Records.

4. Any encroachment, encumbrance, violation, variation, or adverse circumstance affecting the Title that would be disclosed by an accurate and complete land survey of the Land and that are not shown by the Public Records.

5. (a) Unpatented mining claims; (b) reservations or exceptions in patents or in Acts authorizing the issuance thereof; (c) water rights, claims or title to water, whether or not the matters excepted under (a), (b), or (c) are shown by the Public Records.

6. Any lien or right to a lien for services, labor or material not shown by the Public Records.

7. Variable exceptions such as taxes, easements, CC&R’s, etc. shown here.

ALTA EXPANDED COVERAGE RESIDENTIAL LOAN POLICY – ASSESSMENTS PRIORITY (04-02-15)

EXCLUSIONS FROM COVERAGE
The following matters are expressly excluded from the coverage of this policy and the Company will not pay loss or damage, costs, attorneys’ fees or expenses which arise by reason of:

1. (a) Any law, ordinance, permit, or governmental regulation (including those relating to building and zoning) restricting, regulating, prohibiting, or relating to
(i) the occupancy, use, or enjoyment of the Land;
(ii) the character, dimensions, or location of any improvement erected on the Land; (iii) the subdivision of land; or
(iv) environmental protection;
or the effect of any violation of these laws, ordinances, or governmental regulations. This Exclusion 1(a) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16. (b) Any governmental police power. This Exclusion 1(b) does not modify or limit the coverage provided under Covered Risk 5, 6, 13(c), 13(d), 14 or 16.

2. Rights of eminent domain. This Exclusion does not modify or limit the coverage provided under Covered Risk 7 or 8.

3. Defects, liens, encumbrances, adverse claims, or other matters (a) created, suffered, assumed, or agreed to by the Insured Claimant; (b) not Known to the Company, not recorded in the Public Records at Date of Policy, but Known to the Insured Claimant and not disclosed in writing to the Company by the Insured Claimant prior to the date the Insured Claimant became an Insured under this policy;
(c) resulting in no loss or damage to the Insured Claimant; (d) attaching or created subsequent to Date of Policy (however, this does not modify or limit the coverage provided under Covered Risk 11, 16, 17, 18, 19, 20, 21, 22, 23, 24, 27 or 28); or (e) resulting in loss or damage that would not have been sustained if the Insured Claimant had paid value for the Insured Mortgage.

4. Unenforceability of the lien of the Insured Mortgage because of the inability or failure of an Insured to comply with applicable doing-business laws of the state where the Land is situated.

5. Invalidity or unenforceability in whole or in part of the lien of the Insured Mortgage that arises out of the transaction Item Number: 14.

File No: 622650360
CLTA Preliminary Report Form – Modified (11-17-06)

evidenced by the Insured Mortgage and is based upon usury, or any consumer credit protection or truth-in-lending law. This Exclusion does not modify or limit the coverage provided in Covered Risk 26.

6. Any claim of invalidity, unenforceability or lack of priority of the lien of the Insured Mortgage as to Advances or modifications made after the Insured has Knowledge that the vestee shown in Schedule A is no longer the owner of the estate or interest covered by this policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11.

7. Any lien on the Title for real estate taxes or assessments imposed by governmental authority and created or attaching subsequent to Date of Policy. This Exclusion does not modify or limit the coverage provided in Covered Risk 11(b) or 25.

8. The failure of the residential structure, or any portion of it, to have been constructed before, on or after Date of Policy in accordance with applicable building codes. This Exclusion does not modify or limit the coverage provided in Covered Risk 5 or 6.

9. Any claim, by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws, that the transaction creating the lien of the Insured Mortgage, is (a) a fraudulent conveyance or fraudulent transfer, or
(b) a preferential transfer for any reason not stated in Covered Risk 27(b) of this policy.

10. Contamination, explosion, fire, flooding, vibration, fracturing, earthquake, or subsidence.

11. Negligence by a person or an Entity exercising a right to extract or develop minerals, water, or any other substances.

Item Number: 14.

File No: 622650360
Notice of Available Discounts
Pursuant to Section 2355.3 in Title 10 of the California Code of Regulations Fidelity National Financial, Inc. and its subsidiaries ("FNF") must deliver a notice of each discount available under our current rate filing along with the delivery of escrow instructions, a preliminary report or commitment. Please be aware that the provision of this notice does not constitute a waiver of the consumer's right to be charged the filed rate. As such, your transaction may not qualify for the below discounts.

You are encouraged to discuss the applicability of one or more of the below discounts with a Company representative. These discounts are generally described below; consult the rate manual for a full description of the terms, conditions and requirements for such discount. These discounts only apply to transactions involving services rendered by the FNF Family of Companies. This notice only applies to transactions involving property improved with a one-to-four family residential dwelling.

Not all discounts are offered by every FNF Company. The discount will only be applicable to the FNF Company as indicated by the named discount.

FNF Underwritten Title Company Underwritten by FNF Underwriters CTC – Chicago Title Company CTIC – Chicago Title Insurance Company CLTC - Commonwealth Land Title Company CLTIC – Commonwealth Land Title Insurance Company FNTC – Fidelity National Title Company of California FNTIC – Fidelity National Title Insurance Company FNTCCA – Fidelity National Title Company of
California
FNTIC – Fidelity National Title Insurance Company
TICOR – Ticor Title Company of California CTIC – Chicago Title Insurance Company LTC – Lawyer’s Title Company CLTIC - Commonwealth Land Title Insurance Company SLTC – ServiceLink Title Company CTIC – Chicago Title Insurance Company Available Discounts

DISASTER LOANS (CTIC, CLTIC, FNTIC)
The charge for a Lender's Policy (Standard or Extended coverage) covering the financing or refinancing by an owner of record, within twenty-four (24) months of the date of a declaration of a disaster area by the government of the United States or the State of California on any land located in said area, which was partially or totally destroyed in the disaster, will be fifty percent (50%) of the appropriate title insurance rate.

CHURCHES OR CHARITABLE NON-PROFIT ORGANIZATIONS (CTIC, FNTIC) On properties used as a church or for charitable purposes within the scope of the normal activities of such entities, provided said charge is normally the church's obligation the charge for an owner's policy shall be fifty percent (50%) to seventy percent (70%) of the appropriate title insurance rate, depending on the type of coverage selected. The charge for a lender's policy shall be forty (40%) to fifty percent (50%) of the appropriate title insurance rate, depending on the type of coverage selected.

Item Number: 14.

Wire Fraud Alert
This Notice is not intended to provide legal or professional advice. If you have any questions, please consult with a lawyer.

All parties to a real estate transaction are targets for wire fraud and many have lost hundreds of thousands of dollars because they simply relied on the wire instructions received via email, without further verification. If funds are to be wired in conjunction with this real estate transaction, we strongly recommend verbal verification of wire instructions through a known, trusted phone number prior to sending funds.

In addition, the following non‐exclusive self‐protection strategies are recommended to minimize exposure to possible wire fraud.
• NEVER RELY on emails purporting to change wire instructions. Parties to a transaction rarely change wire instructions in the course of a transaction. • ALWAYS VERIFY wire instructions, specifically the ABA routing number and account number, by calling the party who sent the instructions to you. DO NOT use the phone number provided in the email containing the instructions, use phone numbers you have called before or can otherwise verify. Obtain the phone number of relevant parties to the transaction as soon as an escrow account is opened. DO NOT send an email to verify as the email address may be incorrect or the email may be intercepted by the fraudster. • USE COMPLEX EMAIL PASSWORDS that employ a combination of mixed case, numbers, and symbols. Make your passwords greater than eight (8) characters. Also, change your password often and do NOT reuse the same password for other online accounts. • USE MULTI-FACTOR AUTHENTICATION for email accounts. Your email provider or IT staff may have specific instructions on how to implement this feature.

For more information on wire‐fraud scams or to report an incident, please refer to the following links:

Federal Bureau of Investigation: Internet Crime Complaint Center:
http://www.fbi.gov http://www.ic3.gov
Item Number: 14.

Copyright © 2021 Fidelity National Financial, Inc. All Rights Reserved.

FIDELITY NATIONAL FINANCIAL

PRIVACY NOTICE
Effective August 1, 2021
Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, “FNF,” “our,” or “we”) respect and are committed to protecting your privacy. This Privacy Notice explains how we collect, use, and protect personal information, when and to whom we disclose such information, and the choices you have about the use and disclosure of that information.

A limited number of FNF subsidiaries have their own privacy notices. If a subsidiary has its own privacy notice, the privacy notice will be available on the subsidiary’s website and this Privacy Notice does not apply.

Collection of Personal Information
FNF may collect the following categories of Personal Information:
• contact information (e.g., name, address, phone number, email address); • demographic information (e.g., date of birth, gender, marital status); • identity information (e.g. Social Security Number, driver’s license, passport, or other government ID number); • financial account information (e.g. loan or bank account information); and • other personal information necessary to provide products or services to you.

We may collect Personal Information about you from:
• information we receive from you or your agent;
• information about your transactions with FNF, our affiliates, or others; and • information we receive from consumer reporting agencies and/or governmental entities, either directly from these entities or through others.

Collection of Browsing Information
FNF automatically collects the following types of Browsing Information when you access an FNF website, online service, or application (each an “FNF Website”) from your Internet browser, computer, and/or device:
• Internet Protocol (IP) address and operating system;
• browser version, language, and type;
• domain name system requests; and
• browsing history on the FNF Website, such as date and time of your visit to the FNF Website and visits to the pages within the FNF Website.

Like most websites, our servers automatically log each visitor to the FNF Website and may collect the Browsing Information described above. We use Browsing Information for system administration, troubleshooting, fraud investigation, and to improve our websites. Browsing Information generally does not reveal anything personal about you, though if you have created a user account for an FNF Website and are logged into that account, the FNF Website may be able to link certain browsing activity to your user account.

Other Online Specifics
Cookies. When you visit an FNF Website, a “cookie” may be sent to your computer. A cookie is a small piece of data that is sent to your Internet browser from a web server and stored on your computer’s hard drive. Information gathered using cookies helps us improve your user experience. For example, a cookie can help the website load properly or can customize the display page based on your browser type and user preferences. You can choose whether or not to accept cookies by changing your Internet browser settings. Be aware that doing so may impair or limit some functionality of the FNF Website.

Web Beacons. We use web beacons to determine when and how many times a page has been viewed. This information is used to improve our websites.

Do Not Track. Currently our FNF Websites do not respond to “Do Not Track” features enabled through your browser.

Links to Other Sites. FNF Websites may contain links to unaffiliated third-party websites. FNF is not responsible for the privacy practices or content of those websites. We recommend that you read the privacy policy of every website you visit.

Use of Personal Information
FNF uses Personal Information for three main purposes:
• To provide products and services to you or in connection with a transaction involving you. • To improve our products and services.
• To communicate with you about our, our affiliates’, and others’ products and services, jointly or independently.

Item Number: 14.

Copyright © 2021 Fidelity National Financial, Inc. All Rights Reserved.

When Information Is Disclosed
We may disclose your Personal Information and Browsing Information in the following circumstances:
• to enable us to detect or prevent criminal activity, fraud, material misrepresentation, or nondisclosure; • to nonaffiliated service providers who provide or perform services or functions on our behalf and who agree to use the information only to provide such services or functions; • to nonaffiliated third party service providers with whom we perform joint marketing, pursuant to an agreement with them to jointly market financial products or services to you; • to law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order; or
• in the good-faith belief that such disclosure is necessary to comply with legal process or applicable laws, or to protect the rights, property, or safety of FNF, its customers, or the public.

The law does not require your prior authorization and does not allow you to restrict the disclosures described above.

Additionally, we may disclose your information to third parties for whom you have given us authorization or consent to make such disclosure. We do not otherwise share your Personal Information or Browsing Information with nonaffiliated third parties, except as required or permitted by law. We may share your Personal Information with affiliates (other companies owned by FNF) to directly market to you. Please see “Choices with Your Information” to learn how to restrict that sharing.

We reserve the right to transfer your Personal Information, Browsing Information, and any other information, in connection with the sale or other disposition of all or part of the FNF business and/or assets, or in the event of bankruptcy, reorganization, insolvency, receivership, or an assignment for the benefit of creditors. By submitting Personal Information and/or Browsing Information to FNF, you expressly agree and consent to the use and/or transfer of the foregoing information in connection with any of the above described proceedings.

Security of Your Information
We maintain physical, electronic, and procedural safeguards to protect your Personal Information.

Choices With Your Information
If you do not want FNF to share your information among our affiliates to directly market to you, you may send an “opt out” request as directed at the end of this Privacy Notice. We do not share your Personal Information with nonaffiliates for their use to direct market to you without your consent.

Whether you submit Personal Information or Browsing Information to FNF is entirely up to you. If you decide not to submit Personal Information or Browsing Information, FNF may not be able to provide certain services or products to you.

For California Residents: We will not share your Personal Information or Browsing Information with nonaffiliated third parties, except as permitted by California law. For additional information about your California privacy rights, please visit the “California Privacy” link on our website (https://fnf.com/pages/californiaprivacy.aspx) or call (888) 413-1748.

For Nevada Residents: You may be placed on our internal Do Not Call List by calling (888) 714-2710 or by contacting us via the information set forth at the end of this Privacy Notice. Nevada law requires that we also provide you with the following contact information: Bureau of Consumer Protection, Office of the Nevada Attorney General, 555 E.

Washington St., Suite 3900, Las Vegas, NV 89101; Phone number: (702) 486-3132; email: [email protected].

For Oregon Residents: We will not share your Personal Information or Browsing Information with nonaffiliated third parties for marketing purposes, except after you have been informed by us of such sharing and had an opportunity to indicate that you do not want a disclosure made for marketing purposes.

For Vermont Residents: We will not disclose information about your creditworthiness to our affiliates and will not disclose your personal information, financial information, credit report, or health information to nonaffiliated third parties to market to you, other than as permitted by Vermont law, unless you authorize us to make those disclosures.

Information From Children
The FNF Websites are not intended or designed to attract persons under the age of eighteen (18).We do not collect Personal Information from any person that we know to be under the age of thirteen (13) without permission from a parent or guardian.

International Users
FNF’s headquarters is located within the United States. If you reside outside the United States and choose to provide Personal Information or Browsing Information to us, please note that we may transfer that information outside of your country of residence. By providing FNF with your Personal Information and/or Browsing Information, you consent to our collection, transfer, and use of such information in accordance with this Privacy Notice.

Item Number: 14.

Copyright © 2021 Fidelity National Financial, Inc. All Rights Reserved.

FNF Website Services for Mortgage Loans
Certain FNF companies provide services to mortgage loan servicers, including hosting websites that collect customer information on behalf of mortgage loan servicers (the “Service Websites”). The Service Websites may contain links to both this Privacy Notice and the mortgage loan servicer or lender’s privacy notice. The sections of this Privacy Notice titled When Information is Disclosed, Choices with Your Information, and Accessing and Correcting Information do not apply to the Service Websites. The mortgage loan servicer or lender’s privacy notice governs use, disclosure, and access to your Personal Information. FNF does not share Personal Information collected through the Service Websites, except as required or authorized by contract with the mortgage loan servicer or lender, or as required by law or in the good-faith belief that such disclosure is necessary: to comply with a legal process or applicable law, to enforce this Privacy Notice, or to protect the rights, property, or safety of FNF or the public.

Your Consent To This Privacy Notice; Notice Changes; Use of Comments or Feedback By submitting Personal Information and/or Browsing Information to FNF, you consent to the collection and use of the information in accordance with this Privacy Notice. We may change this Privacy Notice at any time. The Privacy Notice’s effective date will show the last date changes were made. If you provide information to us following any change of the Privacy Notice, that signifies your assent to and acceptance of the changes to the Privacy Notice.

Accessing and Correcting Information; Contact Us
If you have questions, would like to correct your Personal Information, or want to opt-out of information sharing for affiliate marketing, visit FNF’s Opt Out Page or contact us by phone at (888) 714-2710 or by mail to:

Fidelity National Financial, Inc.
601 Riverside Avenue,
Jacksonville, Florida 32204
Attn: Chief Privacy Officer
Item Number: 14.

FIDELITY NATIONAL FINANCIAL

CALIFORNIA PRIVACY NOTICE
Fidelity National Financial, Inc. and its majority-owned subsidiary companies (collectively, “FNF,” “our,” or “we”) respect and are committed to protecting your privacy. This California Privacy Notice explains how we collect, use, and disclose Personal Information, when and to whom we disclose such information, and the rights you, as a California resident (“Consumer”), have regarding your Personal Information (“California Privacy Rights”). Some subsidiaries maintain separate California Privacy Notices or privacy statements. If a subsidiary has a separate California Privacy Notice, it will be available on the subsidiary’s website, and this California Privacy Notice does not apply.

Collection of categories of Personal Information:

In the preceding 12 months FNF has collected, and will continue to collect, the following categories of Personal
Information from you:

Identifiers such as name, address, telephone number, IP address, email address, account name, social security
number, driver’s license number, state identification card, financial information, date of birth, or other similar
identifiers;
• Characteristics of protected classifications under California or Federal law; • Commercial information, including records of personal property, products or services purchased, or other
purchasing or consuming histories;
• Internet or other electronic network activity information including, but not limited to browsing history, search
• history, and information regarding a Consumer’s interaction with an Internet website; • Geolocation data;
• Professional or employment information;
• Education Information.

This Personal Information is collected from the following sources:
• Information we receive from you on applications or other forms; • Information about your transactions with FNF, our affiliates, or others; • Information we receive from consumer reporting agencies and/or governmental entities, either directly from these
entities or through others;
• Information from the use of our websites and mobile applications.

This Personal Information is collected for the following business purposes:
• To provide products and services to you or in connection with a transaction involving you; • To perform a contract between FNF and the Consumer;
• To improve our products and services;
• To comply with legal obligations;
• To protect against fraudulent or illegal activity;
• To communicate with you about FNF or our affiliates;
• To maintain an account with FNF or our affiliates;
• To provide, support, personalize, and develop our websites, products, and services; • As described to you when collecting your personal information or as otherwise set forth in the California
Consumer Privacy Act.

Disclosures of Personal Information for a business purpose:

In the preceding 12 months FNF has disclosed, and will continue to disclose, the categories of Personal Information listed above for a business purpose. We may disclose Personal Information for a business purpose to the following categories of third parties:
• FNF affiliates and subsidiaries;
• Non-affiliated third parties, as directed by you;
• Businesses in connection with the sale or other disposition of all or part of the FNF business and/or assets;
• Service Providers;
Law enforcement or authorities in connection with an investigation, or in response to a subpoena or court order.

Sale of Personal Information:

Item Number: 14.

In the preceding 12 months, FNF has not sold Personal Information. FNF does not sell Personal Information.

Personal Information of minors:

FNF does not knowingly collect the Personal Information of minors.

Right to know:

Consumers have a right to know about Personal Information collected, used, disclosed, or sold.

Consumers have the right to request FNF disclose what personal information it collected, used, and disclosed in the past 12 months.

Right to request deletion:

Consumers have a right to request the deletion of their personal information.

Right to non-discrimination:

Consumers have a right not to be discriminated against by exercising their consumer privacy rights. We will not
discriminate against Consumers for exercising any of their California Privacy Rights.

Right to use an Authorized Agent:

A Consumer may use an Authorized Agent to submit a request to know or a request to delete his or her information. Should a Consumer utilize an Authorized Agent, FNF will require the Consumer provide the agent written permission to make the request and verify his or her identity with FNF.

To exercise any of your California Privacy Rights, please follow the link “California Privacy Request” or call Toll Free 888-413-1748.

Upon making a California Privacy Request, FNF will verify the consumer’s identity by requiring an account, loan, escrow number, or other identifying information from the consumer.

The above-rights are subject to any applicable rights and obligations including both Federal and California exemptions
rendering FNF, or Personal Information collected by FNF, exempt from certain CCPA requirements.

FNF website services for mortgage loans:

Certain FNF companies provide services to mortgage loan servicers, including hosting websites that collect customer information on behalf of mortgage loan servicers (the “Service Websites”).

The Service Websites may contain links to both this Privacy Notice and the mortgage loan servicer or lender’s privacy notice. The sections of this Privacy Notice describing the categories, sources, and uses of your Personal Information do not apply to the Service Websites. The mortgage loan servicer or lender’s privacy notice governs use, disclosure, and access to your Information. FNF does not share Information collected through the Service Websites, except (1) as required or authorized by contract with the mortgage loan servicer or lender, or (2) as required by law or in the good-faith belief that such disclosure is necessary to comply with a legal process or applicable law, to enforce this Privacy Notice, or to protect the rights, property, or safety of FNF or the public.

California Privacy Notice – Effective Date:

This California Privacy Notice was last updated on August 1, 2021.

Contact for more information:

For questions or concerns about FNF’s California Privacy Notice and privacy practices, or to exercise any of your
California Privacy Rights, please follow the link “California Privacy,” call Toll Free 888-413-1748, or by mail to the
below address. We may use your Personal Information for our affiliates (companies owned by FNF) to directly market to you. If you do not want FNF affiliates to directly market to you, visit FNF’s "Opt Out Page" or contact us by phone at
(888) 714-2710, or by mail to:

Fidelity National Financial, Inc.
601 Riverside Avenue
Jacksonville, Florida 32204
Attn: Chief Privacy Officer
Item Number: 14.

Item Number: 14.

_ Michael J. Francis, MAI
55 Demographic Information
Item Number: 14.

Item Number: 14.

Item Number: 14.

Item Number: 14.

_ Michael J. Francis, MAI
56 Qualifications of the Appraiser
Item Number: 14.

QUALIFICATIONS
OF
MICHAEL J. FRANCIS, MAI
Real Estate Appraiser and Consultant

PROFESSIONAL EXPERIENCE
Michael J. Francis, MAI, has been actively engaged in the real estate profession since 1984, providing full service real estate appraisal and consulting services on undeveloped acreage and a wide variety of commercial, industrial and residential properties located in southern California.

Before operating independently, Michael J. Francis, MAI, was employed as an Associate Appraiser with Joseph J. Blake and Associates, in San Francisco, California. Prior to that Michael J. Francis was a salesperson in Commercial Real Estate with Grubb & Ellis.

PROFESSIONAL ASSOCIATIONS
Member of the Appraisal Institute, with MAI designation

LICENSES
State of California - "Certified General Real Estate Appraiser" California State Certification No. AG002243
Expiration Date: January 22, 2024
State of California - “Real Estate Broker License”
California Department of Real Estate
Expiration Date: July 20, 2024

EDUCATIONAL ACTIVITIES
B.A., Business, Economics and Law, University of California, Berkeley, California 1980.

Special courses in Real Estate:

Introduction to Real Property Appraisal
Legal Aspects of Real Estate
Introduction to Real Estate and Urban Land Economics
Real Estate Finance
Monetary Theory and Banking Systems
Graduate Course Work, Real Estate Masters Program, Golden State University, San Francisco, California.

Courses sponsored by American Institute of Real Estate Appraisers:

Course 1A-1 Real Estate Appraisal Principals
Course 1A-2 Basic Valuation Procedures
Course 1B-A Capitalization Theory and Techniques, Part A Course 1B-b Capitalization Theory and Techniques, Part B Course 2-1 Case Studies in Real Estate Valuation
Course 2-2 Valuation Analysis and Report Writing
Course S-PP Standards of Professional Practice
Course 2-2 Valuation Analysis and Report Writing

P. O. Box 11808, Newport Beach, CA 92658
Tel: (949) 306-3388 * Fax: (949) 528-1300 * Email: [email protected] Item Number: 14.

Michael J. Francis, MAI
EDUCATIONAL ACTIVITIES (continued)

Course S-PP Standards of Professional Practice
Seminar Non-Residential Demonstration Appraisal Report Writing Seminar Appraisal Regulations of the Federal Banking Agencies Seminar Non-Residential Demonstration Appraisal Report Writing Seminar Appraisal Regulations of the Federal Banking Agencies Seminar Standards of Appraisal Practice
Seminar Residential Subdivisions
Seminar Litigation Seminar
Course 746 Uniform Appraisal Standards for Federal Land Acquisitions Course 797 Valuation of Conservation Easements
Course 401 Appraisal of Partial Acquisitions (sponsored by the International Right of Way Association)
Numerous other courses, seminars and clinics on real estate appraisal and other related topics on a continuing basis.

SCOPE OF EXPERIENCE
I have performed appraisal and consulting work for a wide variety of clients including lenders, pension funds, corporations, public and governmental agencies, law firms, and private parties.

Public agency appraisal services include Yellow Book appraisals, full and partial acquisition appraisals, appraisals for eminent domain, appraisal reviews, conservation easement appraisals and so forth. I have also served as a legal expert witness.  Vacant Land
Single-family and multi-family residential sites, commercial and industrial sites, a wide variety of undeveloped acreage (large and small, ocean front/coastal and inland), contaminated land, natural habitat land, flood plain land, land locked parcels and planned communities.  Residential
Residential subdivisions, single-family residences, apartments, condominiums, section 8 housing projects and planned unit developments.
 Commercial
Shopping centers, retail stores, general office buildings, medical office buildings and office and retail condominiums.
 Industrial
Single tenant and multi-tenant warehouses and manufacturing buildings, truck terminals, business parks, R & D buildings, automotive repair facilities and garages.  Special Purpose
Agricultural land, conservation easements, mixed-use developments, airports, wetland properties, landfill sites, forest land, master planned communities, skilled nursing care facilities (convalescent hospitals), senior residential care facilities (assisted living/board and care), senior apartment projects, hotels, mobile and manufactured home parks, RV parks, golf courses, timeshare projects, boat marinas, restaurants, theaters, bowling alleys, churches, schools, gas stations, car washes, railroad properties and various market studies.

Item Number: 14.

SR-23-266
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: October 17, 2023 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - October 17, 2023 Item Number: 15.

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Meeting
6:00 PM - Tuesday, October 17, 2023
Council Chambers
CLOSED SESSION - 5:00 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 5:00 PM.

ROLL CALL
The Closed Session was adjourned due to lack of a quorum.

PUBLIC COMMENTS
None.

CLOSED SESSION:

1. CONFERENCE WITH LEGAL COUNSEL—EXISTING LITIGATION
(Paragraph (1) of subdivision (d) of Section 54956.9)
Name of case: Wealthy Ventures, Inc. dba Avant Outdoor Advertising v. City of Desert Hot Springs; Riverside County Superior Court Case Number CVPS2304926

2. Public Employee Complaints
(Government Code Section 54957)
RECESS
PRESENTATIONS - 5:30 P.M.

Introduction of Battalion Fire Chief, Matt McDonald
The presentation was postponed to the November 7, 2023, Regular Meeting.

REGULAR SESSION - 6:00 P.M.

CALL TO ORDER
Item Number: 15.

City Council
October 17, 2023
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
There was no Invocation given.

PLEDGE OF ALLEGIANCE
Mayor Matas led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Ted Stream, Counsel, advised that there was no Closed Session held due to lack of a quorum.

APPROVAL OF AGENDA
Paula Turner, CVCAN, spoke regarding Consent Calendar Item 11.

Tom Moen spoke regarding Consent Calendar Item 11.

ACTION: Approve the October 17, 2023 Regular Meeting Agenda and approve the Consent Calendar in its entirety.

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

PUBLIC COMMENTS
Tom Moen spoke regarding the City's history.

CITY MANAGER REPORT
None.

Item Number: 15.

City Council
October 17, 2023

MAYOR AND COUNCIL MEMBER REPORTS
None.

PUBLIC HEARINGS:

3. Specific Plan No. SP 21-1, Mitigated Negative Declaration ENV 23-4 and Monitoring Plan, and Development Permit No. 23-5 for the Desert Storage Project, a Proposed Development of a Recreational Vehicle Storage Facility Along Dillon Road
Recommendation:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take testimony from Applicant;
5) Take public testimony for those in favor;
6) Take public testimony from those opposed;
7) Take public testimony from those in a neutral position; 8) Opportunity for Applicant rebuttal;
9) Close the Public Hearing;
10) City Council discussion; and
11) A) “Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, 1) Adopt the Mitigated Negative Declaration ENV 23-4 and Monitoring Plan; 2) Approve Desert Storage Specific Plan No. SP 21-1; 3) Approve Development Permit No. 23-5; and
B) Introduce for First Reading and read by title only: 4) "An Ordinance of the City Council Adding Chapter 17.250” An application for the Desert Storage Specific Plan and develop a recreational vehicle storage facility, Dillion Road, LLC."
Staff Report - SR-23-234 - Pdf
Patricia Villagomez, Principal Planner, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

Savas Moreno, applicant, addressed the City Council.

Tom Moen spoke in favor.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-046.

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

Item Number: 15.

City Council
October 17, 2023
AYES: Betts, Gardner, Pye, Nuñez, and Matas

4. Ordinance Amending Chapter of Title 17, Zoning Code: "Chapter 17.12 (Commercial Districts)," and In Effect Terminating the Urgency Interim Ordinances (Moratoria) Approved by the City Council on January 17, 2023 and on May 2, 2023 Restricting Uses in the Downtown Area Recommendation:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony for those opposed;
6) Take public testimony for those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance amending "Chapter 17.12 (Commercial Districts)" of Title 17, Zoning Code, which Ordinance will in effect terminate the Urgency Interim Ordinances (Moratoria) approved by the City Council on January 17, 2023 and on May 2, 2023 restricting uses in the Downtown Area."
Staff Report - SR-23-218 - Pdf
Councilmember Betts stated that he owns a business in the downtown area and therefore recused due to a potential conflict of interest.

Travis Clark, Community Development Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

There was no public testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation.

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

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

5. Assignment of Development Agreement from Skyborne Ventures to Lennar Homes
Recommendation:

Item Number: 15.

City Council
October 17, 2023
Approve the Assignment of the Development Agreement and Amendment from Skyborne Ventures, LLC, a California limited liability company (the “Assignor”) to Lennar Homes of California, LLC, a California limited liability company (“Assignee”).

Staff Report - SR-23-249 - Pdf
Mayor Matas recused due to a potential conflict of interest. Mayor Pro Tem Nuñez assumed the Chair.

Sean Smith, Economic Development Director, presented the staff report and responded to questions.

ACTION: Approve Staff recommendation.

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

AYES: Betts, Gardner, Pye, and Nuñez
RECUSE: Matas
Item 8 was considered at this time.

6. Parking Management Plan
Recommendation:

Receive and file.

Staff Report - SR-23-242 - Pdf
This item was continued to the November 7, 2023 Regular Meeting.

7. 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." Staff Report - SR-23-247 - Pdf
Item 7 was considered following Item 9.

Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Councilmember Gardner and Mayor Pro Tem Nuñez (Subcommittee) addressed the City Council and responded to questions.

Andre Richard spoke against and expressed concerns.

Item Number: 15.

City Council
October 17, 2023
Kent Andersen expressed concerns.

Spencer (last name inaudible) spoke against and expressed concerns.

Mary Kate Stoever spoke against and expressed concerns.

Brian Meuse expressed concerns.

Greg Morales expressed concerns.

Violeta (last name not provided), STVR owner, expressed concerns regarding frivolous complaints.

Dave Crowler spoke in support.

Amber Duff spoke in support and expressed concerns.

Tom Moen spoke in support.

Lily (last name inaudible), STVR owner, expressed concerns.

Deborah Haas, STVR owner, spoke in support.

Written comments were received from: Doan Chau and Tsubomi NatsukiChau; William Green; and Mary-Kate Stoever, Planning Commissioner; copies of which were distributed, and made a part of the record.

A discussion ensued. Staff and the Subcommittee responded to questions.

ACTION: Approve Staff recommendation with amendments: 1) add new Section 5.44.045 (B)(1) to read: "A hosting platform shall not accept or publish a listing that does not include a valid current city-issued permit registration number within the listing, show in a format designated by the City," 2) restrict new applications for an STVR license from being within a 500 foot radius, and 3) corrections to typographical errors.

Further direction was given (not part of ordinance) with respect to Homeowner's Associations, "Good Neighbor Brochure," and that the Subcommittee reach out to residents located in the hotspot areas.

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

AYES: Gardner, Pye, Nuñez, and Matas
NOES: Betts
Item Number: 15.

City Council
October 17, 2023

8. 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.

Staff Report - SR-23-222 - Pdf
Item 8 was considered following Item 5.

Roberta Crncic, Community Services Director, presented the staff report.

Cathy Molot spoke in favor.

Kent Andersen spoke in support.

ACTION: Approve Staff Recommendation
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

9. 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.

Staff Report - SR-23-243 - Pdf
Jilleen Ferris, City Engineer, presented the staff report and responded to questions.

Kent Andersen spoke in favor.

ACTION: Approve Staff recommendation and adopt Resolution No. 2023-047.

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

AYES: Betts, Gardner, Pye, Nuñez, and Matas
Item 7 was considered at this time.

Item Number: 15.

City Council
October 17, 2023
CONSENT CALENDAR:

10. City Council Regular Meeting Minutes: October 3, 2023 Staff Report - SR-23-250 - Pdf
ACTION: Approved the Minutes as presented.

11. Second Reading and Adoption of An Ordinance Amending Several Chapters of the Desert Hot Springs Municipal Code Dealing With Cannabis Regulations
Staff Report - SR-23-246 - Pdf
ACTION: Approve Second Reading, read by title only and adopt Ordinance No. 789: "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”).

12. Second Reading and Adoption of An Ordinance Amending Chapter 1.10 "City Seal and Insignias" of the Desert Hot Springs Municipal Code Staff Report - SR-23-245 - Pdf
ACTION: Approve Second Reading, read by title only and adopt Ordinance No. 790: "An Ordinance of the City of Desert Hot Springs amending Chapter

1.10 "City Seal and Insignias" of the Desert Hot Springs Municipal Code.

PUBLIC COMMENTS
Matthew Young addressed the City Council.

ADJOURN
Mayor Matas adjourned the meeting at 8:25 PM.

Jerryl Soriano, CMC, City Clerk
Item Number: 15.

SR-23-262
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Adding Chapter 17.250 "Desert Storage Specific Plan"
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: "An Ordinance Adding Chapter 17.250 "Desert Storage Specific Plan" to Title 17 "Zoning" of the Desert Hot Springs Municipal Code to Establish Zoning Standards for the Desert Storage Specific Plan Area." BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on October 17, 2023.

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

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

A Draft Mitigated Negative Declaration (SCH # 2023070608) was prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.) The Draft Mitigated Negative Declaration was prepared in accordance with the CEQA Guidelines Section 15070, Subsection (a), to determine whether there are potentially significant impacts associated with development of the proposed project.

ATTACHMENTS:
1) Staff Report from October 17, 2023
2) Ordinance - Desert Storage Specific Plan
Item Number: 16.

SR-23-234
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: Community Development
Prepared by: Patricia Villagomez, Principal Planner
Subject: Specific Plan No. SP 21-1, Mitigated Negative Declaration ENV 23-4 and Monitoring Plan, and Development Permit No. 23-5 for the Desert Storage Project, a Proposed Development of a Recreational Vehicle Storage Facility Along Dillon Road
RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take testimony from Applicant;
5) Take public testimony for those in favor;
6) Take public testimony from those opposed;
7) Take public testimony from those in a neutral position; 8) Opportunity for Applicant rebuttal;
9) Close the Public Hearing;
10) City Council discussion; and
11) A) “Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, 1) Adopt the Mitigated Negative Declaration ENV 23-4 and Monitoring Plan; 2) Approve Desert Storage Specific Plan No. SP 21-1; 3) Approve Development Permit No. 23-5; and B) Introduce for First Reading and read by title only: 4) "An Ordinance of the City Council Adding Chapter 17.250” An application for the Desert Storage Specific Plan and develop a recreational vehicle storage facility, Dillion Road, LLC."
BACKGROUND:

The project site consists of two parcels and is located on the south side of Dillon Road, west of Palm Drive, east of the dirt road extension of Atlantic Avenue, and north of 18th Avenue within the MixedUse Corridor Zoning District.

The eastern parcel (APN: 657-220-023) is fully developed with a self-storage facility. The existing Desert Self Storage is a 4.3-acre site, that was built in 1986, and consists of 742 self-storage units with an average unit size of approximately 125 sq. ft.

On September 12, 2023, the Planning Commission made a recommendation to the City Council for approval with the following added conditions:

Item Number: 16.

SR-23-234
 The applicant/developer shall remove the barbed wire and paint the existing block wall on the eastern site to match the new wall installed on the western site prior to any Certificate of Occupancy issuance.
 The applicant/developer shall install landscape to the existing eastern site to have a uniform/cohesive frontage.

DISCUSSION:

On March 29th, 2021, the applicant Savvas Marinos submitted a Specific Plan (SP 21-1), Mitigated Negative Declaration (ENV 23-4), and Development Permit (DP 23-5). The Desert Storage Specific Plan consists of 9.03 acres of land located approximately 1,300 feet west of Dillon Road and Palm Drive. The project site is comprised of two parcels, APN 657-220-003 and -023.

The Desert Storage Specific Plan proposes the development of a recreational vehicle (RV) storage facility adjacent to the already existing self-storage facility. The two storage facilities would be linked by an internal sidewalk and would share a perimeter wall and landscaping to provide a uniform frontage.

The project at buildout will consist of a 63,600 square foot RV storage lot with 145 RV paved parking spaces. The RV parking spaces will include 78 solar covered carports and 67 uncovered RV parking spaces and a 1,492 square foot single story caretaker’s unit.

SETTING
The Zoning, General Plan Land-Use designations, and current land uses for surrounding properties are as follows:

Table 1: Surrounding Land Uses

Zoning & General Plan
Designations Current Land-Use
North Mixed-Use Corridor
(MU-C) Vacant Parcel
West Mixed-Use Corridor
(MU-C) Nursery
South Residential High
(R-H) Vacant Parcel
East Mixed-Use Corridor
(MU-C) Vacant Parcel

PROJECT LAND USE PLAN
The Specific Plan proposes to develop approximately 63,600 square feet for a new RV Storage.

Table 2 provides a summary uses and square footages within the project site.

Table 2:

Land Use Currently Proposed
Mini-Storage 102,500 square feet
RV Storage 63,600 square feet
Caretakers Quarters 1,492 square feet
Item Number: 16.

SR-23-234
The self-storage facility is an existing use on one of the two parcels (APN 657-220-023) within the Specific Plan area. The project proposes the development of an RV storage facility (APN 657-220- 003) with an accompanying caretaker’s quarters, which would be developed as a single phase.

Permitted Uses Table: Table 3 provides a comparison of the land uses permitted in the Specific Plan with the General Plan/Zoning Ordinance allowable land uses. A complete list of all allowable uses can be found within Exhibit 2.
“P” - Use is permitted by right. * Subject to Section 17.92, Development Permits “A” – Use is accessory to an established primary use
“AUP” – Use requires a Administrative Conditional Use Permit. “CUP” – Use requires a Conditional Use Permit
“TUP” – Use requires a Temporary Use Permit
“-“- Use Not Allowed
Table 3:

Allowable Uses MU-C Specific Plan
Storage - Personal - P*
Storage – Outdoor
Recreational Vehicle Storage - P*
Caretakers Quarters - P*
Drive-Through or Drive-Up
Facilities CUP CUP
Retail Sales General P P
Personal Services General P P
Farmers Market TUP TUP
Vehicle Charging Stations –
Commercial P P
Car Sharing – Parking AUP AUP

SPECIFIC PLAN DEVELOPMENT STANDARDS
The Desert Storage Specific Plan establishes the building and development standards for the approximately 9-acre site. The intent is to provide an orderly and cohesive storage development that will provide a useful service to residents and surrounding communities while not detracting from the scenic vistas on Dillon Road or inhibiting the viability of the area for future development.

The current development standards assigned to Mixed-Use Corridor zones still apply to the SP area, with some modifications to the maximum and minimum setbacks. Table 4 shows the comparison between the City’s existing MU-C standards and the proposed Specific Plan standards.

Table 4:

Development Standard Current MU-C Proposed Specific Plan Maximum Floor Area Ratio
(FAR) 1.50 1.50
Item Number: 16.

SR-23-234
Development Standard Current MU-C Proposed Specific Plan Minimum Lot Size 20,000 20,000
Minimum Lot Width 100 feet 100 feet
Maximum Front Yard Setback
(from Public ROW) 5 feet 20 feet
Maximum Side Yard Setback
Interior
Exterior
0 feet
10 feet
0 feet
10 feet
Minimum Rear Yard Setback
Standard Lot
Adjacent to Alley
15 feet
10 feet
0 feet
10 feet
Maximum Number of Stories 4 Stories 4 Stories
Maximum Building/Structure
Height 60 feet 60 feet

DEVELOPMENT PERMIT
Per Section 2.1 Allowable Uses of the Specific Plan (Exhibit 2), a Development Permit application is required for the development of a Storage – Outdoor Recreational Vehicle Storage facility. The applicant proposes to develop a 63,600 square foot RV Storage facility on approximately 4.7-acre parcel (APN: 657-220-003) to accommodate approximately 145 RV Storage spaces. The applicant is proposing to provide a combination of both covered and uncovered RV spaces (see Table 5).

Table 5:

RV/Unit Size # of Units
Uncovered 12 x 20 28
Covered 12 x 20 24
Uncovered 12 x 40 15
Covered 12 x 40 24
Uncovered 12 x 50 24
Covered 12 x 50 30
Total RV Storage Spaces 145

ARCHITECTURAL DESIGN GUIDELINES
The Specific Plan provides guidelines to help steer the design of the Desert Storage Specific Plan to ensure that the resulting project is high-quality, and that existing and proposed uses are visually and functionally cohesive. Architecture within the Desert Storage Specific Plan will prioritize functionality while being sensitive to future neighboring residential and mixed-use projects.

The Desert Storage Specific Plan proposes the use of utilitarian materials such as metals and masonry, and a color palette of warm neutrals such as tan and terra cotta. Materials such as CMU blocks and corrugated metal are suggested for walls and screening of the property. The guidelines will establish and ensure that all development within the Specific Plan is complementary within the Specific Plan and with the surrounding community.

CIRCULATION
Item Number: 16.

SR-23-234
The project site is surrounded by Dillon Road to the north, the future rights of way for Beacon Way to the west and Wolven Street to the south. Primary ingress and egress for the site will occur in two locations on Dillon Road. One access point will be for the proposed RV storage facility and the other is the existing entry to the self-storage facility.

Internal circulation within each storage facility will be provided by private driveways, which will also serve as fire lanes for the project. A sidewalk and pedestrian gate will connect the two sites and will connect with the sidewalk proposed for improvements to Dillon Road.

PARKING STANDARDS
Parking within the Desert Storage Specific Plan will be subject to the City of Desert Hot Springs Municipal Code 17.48 for Off-Street Parking & Loading Standards.

LANDSCAPE
The Desert Storage Specific Plan envisions landscaping that is suitable for the desert context using water-efficient vegetation to soften and complement the appearance of the development.

Landscaping will be designed to visually enhance the development, softening the appearance of perimeter walls and provide additional screening and shade.

Low water trees will provide shade and screening on the site, such as Texas Ebony, Cascalote, and California Fan Palms. Flowering trees and shrubs, such as Sonoran Palo Verde, Brittle Bush, Red Yucca, and Green Cloud Texas Ranger, can be used to provide accents of color to the site. A crushed and fractured rock of various sizes will be used as groundcover, with boulders strategically placed to complement the overall landscaping. Table 6 below will provide a breakdown of some of the proposed landscape:

Table 6: Landscape Plan
Biological Name Quantity Size
Cascalote 10 24’’ Box
Sonoran Palo Verde 11 36’’ Box
Anacahuita 18 15 Gallon
Texas Ebony 41 24’’ Box
California Fan Palm 9 12’ BTH Skinned
Brittle Bush 38 5 Gallon
Red Yucca 46 5 Gallon
Agave Americana 15 15 Gallon
Green Desert Spoon 9 5 Gallon

PHASING PLAN
The self-storage is already existing with 742 self-storage units. The proposed RV Storage facility will be built all in one phase.

FENCING PLAN
The project site will be bounded on all sides by a perimeter wall made up of a combination of block spilt face and will incorporate corrugated metal that will be colored a “Ruddy Oak” to compliment the tan block wall and access gates will be provided off of Dillon Road.

Item Number: 16.

SR-23-234

LIGHTING
An exterior photometric plan will be reviewed, and it shall indicate wall packs and freestanding poles that would provide lighting throughout the site, with an average two foot-candles provided at the entrance. In accordance with the City’s lighting standards, outdoor ambient lighting will be minimized in order to preserve dark skies and prevent nuisances for future properties in the vicinity.

SIGNAGE
The applicant at this time is not proposing any signage. Any future signage for the purpose of business identification will be located and positioned in a manner that supports identification and wayfinding while ensuring that visual clutter is avoided. Staff will evaluate signage for conformance with the zoning code as a separate application, and a condition has been added that all future signage will require a separate review and approval.

NOTICING REQUIREMENT
The project was noticed to neighboring owners within a 300-foot radius of the project site on September 26th, 2023, and was advertised in the Desert Star Weekly on September 27th, 2023, per state noticing requirements. No public comments have been received as of this writing.

FISCAL IMPACT:

The applicant has paid all application fees related to the Specific Plan and Development Permit for entitlements. Additionally, the proposed development will be subject to all Building Permit fees and property taxes.

ENVIRONMENTAL ANALYSIS:

A Draft Mitigated Negative Declaration (SCH # 2023070608) was prepared in accordance with the requirements of the California Environmental Quality Act (CEQA) (Public Resources Code Section 21000 et. seq.) and the CEQA Guidelines (California Code of Regulations, Title 14, Sections 15000 et seq.) The Draft Mitigated Negative Declaration was prepared in accordance with the CEQA Guidelines Section 15070, Subsection (a), to determine whether there are potentially significant impacts associated with development of the proposed project.

OPTIONAL:

SPECIFIC PLAN APPROVAL FINDINGS
Under Section 17.128.070 of the Desert Hot Springs Municipal Code, a Specific Plan may only be adopted only if all of the following findings are made:

1. The proposed plan is consistent with the General Plan; The proposed Specific Plan has been evaluated against the General Plan of the City of Desert Hot Springs to identify any potential inconsistencies. The proposed Specific Plan will provide for adequate public and private improvements to avoid any conflicts with the General Plan Land Use, Circulation, Housing and other Elements of the Community Development Chapter; as well as with the Environmental Resources, Environmental Hazards, and Public Facilities and Facilities Chapters. Staff has identified no inconsistencies between the proposed Specific Plan and the General Plan. Staff recommends this finding.

2. The proposed plan would not be detrimental to the public interest, health, safety, convenience, or welfare of the City;
Item Number: 16.

SR-23-234
The proposed Specific Plan provides for development of a mixed-use/commercial development, including provisions for public and private improvements to address vehicular circulation, including emergency services, as well as drainage, air quality and other environmental factors. The proposed Specific Plan implements General Plan economic goals through the establishment of polices and regulations supporting a storage facility. Staff has concluded that the proposal would not be detrimental to the public interest, health, safety, convenience or welfare of the City. Staff recommends this finding.

3. The subject property is physically suitable for the requested land use designation(s) and the anticipated land use development(s);
The proposed Specific Plan would amend the General Pan Land Use Map for the 9.19-acre site to a Specific Plan to support the development of a mixed-use/commercial complex. Public streets fronting all property boundaries of the site provide adequate access, and no physical constraints to the proposed development have been identified. The Specific Plan provides for a use that is compatible with surrounding commercial zones. Staff believes the subject parcel is physically suitable for the requested land use designation and anticipated development since there is an already existing storage facility directly adjacent to the proposed RV storage facility. Staff recommends this finding.

4. The proposed plan shall ensure development of desirable character which will be compatible with existing and proposed development in the surrounding neighborhood; The proposed Specific Plan includes development regulations (zoning standards), design guidelines and review procedures to assure that future development of the site is of a desirable character, both functionally and esthetically. These regulations, guidelines and procedures will also assure that all uses allowed on the site are compatible with the surrounding development. Staff recommends this finding.

5. The proposed plan will contribute to a balance of land uses so that local residents may work and shop in the community in which they live.

The proposed Specific Plan will ensure that the proposed development is appropriate for the character and conditions of the site and the desert setting. The development will include the addition od sidewalks as well as space for future bicycle lanes on the project side of Dillon Road, connected to internal sidewalks connecting the two sites. The proposed Specific Plan will contribute to a balance of land uses, within which local residents may commute to work. Staff recommends this finding.

DEVELOPMENT PERMIT FINDINGS
Under Section 17.92.060 of the Desert Hot Springs Municipal Code, the Development Permit may only be approved only if all of the following findings are made:

1. The proposed use is consistent with the General Plan; The proposed Desert Storage Specific Plan which is specifically labeled as an allowable “Use” with an approval of a Development Permit within the table of permitted uses (Table 2.1, Desert Storage Specific Plan). The proposed development of the site and the project is consistent with the development standards and design guidelines, in reference to density, setbacks, height, open space, and architecture. Staff recommends this finding.

Item Number: 16.

SR-23-234

2. The proposed use is permitted within the subject land use district and complies with all of the applicable provisions of this zoning Ordinance, including prescribed development standards and design guidelines;
The proposed Specific Plan is for the development of a 63,600 sq. ft. RV Storage facility on a vacant

4.7acre site along with an already existing 742 self-storage unit, is consistent with the Zoning and General Plan land-use designations including the development standards and design guidelines within the Specific Plan. Staff recommends this finding.

3. The subject site is physically suitable for the type and intensity of the land use being proposed;
A RV Storage facility is specifically allowed as a “P” (Development Permit) within the Desert Storage Specific Plan. The proposed development site is located in a partially developed area of the city. An already fully developed self-storage facility that is suitable for the type and intensity of the land use for a new RV storage facility. Staff recommends this finding.

4. The proposed development would be compatible with existing and future developments within the land use district and general area;
The Desert Storage Specific Plan is compatible with existing and future developments within the land use district and general area since there is an already existing 742-unit self-storage facility. The RV storage will be designed to be compatible with future developments within the surrounding vicinity.

Staff recommends this finding.

5. There are adequate provisions for water, sanitation, and public utilities and services to ensure that the proposed use is not detrimental to public health and safety; The current project has been conditioned to ensure that adequate public access and roadway capacity to serve the proposed project site. Staff recommends this finding.

6. There is adequate public access and roadway capacity to serve the subject proposal; The proposed project, to develop an RV storage facility, does not introduce any hazardous materials or create any harmful effects to the environment or to the quality of natural resources. Therefore, the City has determined that the proposed project will not have or cause significant harmful effects upon environmental quality and natural resources. Staff recommends this finding.

7. There are no significant harmful effects upon environmental quality and natural resources; The proposed development of the Desert Storage Specific Plan has been assessed for environmental impacts. Mitigation measures are proposed for adoption included in the Mitigated Negative Declaration. The proposed project will be required to adhere to the mitigation measures in the MND and has been conditioned by Fire, Engineering and Planning Department’s to comply with current standards. The Building Department will review the plans upon submittal of the plan check to ensure the projects compliance with the California Building Code. Staff recommends this finding.

8. Any negative impacts of the proposed use can and shall be mitigated; and Item Number: 16.

SR-23-234
The proposed Desert Storage Specific Plan has been assessed for environmental impacts and mitigation measures have been imposed and will be required to adhere to the mitigation measures within the Mitigated Negative Declaration. Therefore, any negative impacts of the proposed use can and will be mitigated. Staff recommends this finding.

9.The proposed location, size, design, and operational characteristics of the planned use are not detrimental to the public interest, health, safety, convenience, or welfare of the City; The proposed project is for the development of an RV storage facility. The proposed development of the facility is consistent with the proposed Specific Plan, the permitted uses and development standards and will not be a determent to the public interest, public health safety convenience or the welfare of the City. Staff recommends this finding.

ATTACHMENTS:
1) Draft Conditions of Approval
2) Desert Storage Specific Plan
3) Draft Mitigated Negative Declaration
4) Appendix A CalEEMod
5) Appendix B Biological Report
6) Appendix C Cultural Report
7) Appendix D Prelim Geotech
8) Appendix E Tribal Consultation
9) Comment Letters w Responses
10) Full Set of Plans
11) Resolution
12) Ordinance
Item Number: 16.

ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS ADDING CHAPTER 17.250 “DESERT STORAGE
SPECIFIC PLAN” TO TITLE 17 “ZONING” OF THE DESERT HOT

SPRINGS MUNICIPAL CODE TO ESTABLISH ZONING STANDARDS

FOR THE DESERT STORAGE SPECIFIC PLAN AREA
WHEREAS, the City of Desert Hot Springs (“City”) has a responsibility to plan and regulate the use of property within the City; and
WHEREAS, the City has received an application to adopt of the Desert Storage Specific Plan SP 21-1 (“Specific Plan”) for a 9.03-acre property, as well as supporting applications for a Development Permit 23-5, collectively “Project”; and WHEREAS, the Desert Hot Springs Municipal Code (“DHSMC”) provides for the adoption of Specific Plans and related actions, as follows:
 Chapter 17.88 provides for the adoption of Zoning Ordinance Amendments;  Chapter 17.100 provides for the adoption of General Plan Amendments;  Chapter 17.128 provides for the approval of Specific Plans; and WHEREAS, the City Council desires to 1) add Chapter 17.250 “Desert Storage Specific Plan”, to provide a comprehensive set of zoning regulations to facilitate the development of the subject site, while at the same time ensuring that such development does not conflict with the General Plan, is not inconsistent with surrounding uses, and is not detrimental to the public health, safety and welfare and WHEREAS, the City Council finds that the adoption of this ordinance has been adequately evaluated by the applicable provisions of the California Environmental Quality Act (CEQA), and that the City Council hereby certifies the Mitigated Negative Declaration and Mitigation Monitoring Program prepared from the Initial Study (see accompanying Resolution for the Project); and
WHEREAS, the City Council finds this ordinance is not detrimental to the public interest, health, safety, convenience, or welfare of the City and is for the convenience and general welfare of the City; and
WHEREAS, this Ordinance is compatible with the general objectives of the General Plan and the Desert Storage Specific Plan, in that the subject uses and standards conform goals, policies and standards of the General Plan and Specific Plan; and
WHEREAS, the City’s Planning Commission held a public hearing, considered this Ordinance (along with the Project), and made a positive recommendation to the City Council; and
WHEREAS, on October 17, 2023 the City Council concluded the public hearing and considered this Ordinance.

Item Number: 16.

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

Section 1. RECITALS.

The Recitals are true and correct and are hereby incorporated by this reference.

Section 2. EVIDENCE
That the City Council has considered all of the evidence submitted into the administrative record, which includes, but is not limited to, the following:
(a) The City’s Municipal Code and its General Plan, including updates; (b) The documents that consist of the Project;
(c) All of the environmental documents;
(d) The adopted Desert Storage Specific Plan;
(e) Testimony and/or comments from all persons including the Applicant and its representatives submitted to the City in both written and oral form at, or prior to, the public hearing conducted at the Planning Commission and the City Council;
(f) Planning Commission’s recommendation; and
(g) Public comments, both written and oral, received and/or submitted at, or prior to the City Council’s consideration of this ordinance.

Section 3. ADDING CHAPTER 17.250 “DESERT STORAGE SPECIFIC PLAN” TO TITLE 17 “ZONING”
Chapter 17.250 “Desert Storage Specific Plan” shall be added to read as follows:

17.250.010. – Desert Storage Specific Plan Map
The area of the Desert Storage Specific Plan is set forth on the following map, including the establishment the Planning Area:

Item Number: 16.

Item Number: 16.

17.250.020. – Desert Storage Specific Plan – Permitted Uses Table The following tables for permitted uses shall govern:

Desert Storage
Item Number: 16.

Item Number: 16.

17.250.030. – Desert Storage Specific Plan – Development Standards The following development standards shall govern:

17.250.040 – Review and Approval
A. All uses within the Desert Storage Specific Plan Planning Areas shall be subject to review and approval for conformance with this Chapter.

B. Uses which are indicated as “P” (Permitted) shall require, for any related construction or development, review, and approval by the Planning Commission, in accordance with Section 17.92 (Development Permit).

C. Uses which are indicated as “C” (Conditionally Permitted) shall require review and approval by the Planning Commission in accordance with Section 17.76 (Conditional Use Permits).

D. Required findings for approval of Development Permit (Section 17.92) or Conditional Use Permit (Section 17.76) shall include consideration of the Design Guidelines of the Desert Storage Specific Plan.

Section 4. ENVIRONMENTAL FINDINGS
Pursuant to the California Environmental Quality Act (“CEQA”), an Initial Study has been prepared and has determined that development of the Project would not have a significant impact on the environment, with the implementation of mitigation measures. A draft Mitigated Negative Declaration is proposed and contains certain mitigation measures in conformance with Section 15070, Subsection (a), of the CEQA. The initial Item Number: 16.

study shows that there is no substantial evidence, in light of the whole record before the agency, that the Project may have a significant effect on the environment, The MND is part of the record. This is the independent judgement of the City Council.

Section 5. GENERAL PLAN CONSISTENCY FINDINGS
The City Council finds this amendment is compatible with the general objectives of the General Plan and any applicable specific plan, in that the subject uses would be conditionally permitted in Commercial General districts, similar to other permitted and conditionally permitted uses, and in that the use will be subject to strict review and conditions.

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

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

Section 10. EFFECTIVE DATE
That this ordinance shall take effect thirty (30) days after its second reading by the City Council.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs, California, at a regular meeting held on the 7th day November, 2023, by the following vote:

AYES:

NOES:

Item Number: 16.

ABSENT:

ABSTAIN:

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

Item Number: 16.

SR-23-261
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Amending Chapter of Title 17, Zoning Code: "Chapter 17.12 (Commercial Districts)," and In Effect Terminating the Urgency Interim Ordinances (Moratoria) Approved by the City Council on January 17, 2023 and on May 2, 2023 Restricting Uses in the Downtown Area
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: "An Ordinance amending "Chapter 17.12 (Commercial Districts)" of Title 17, Zoning Code, which Ordinance will in effect terminate the Urgency Interim Ordinances (Moratoria) approved by the City Council on January 17, 2023 and on May 2, 2023 restricting uses in the Downtown Area."
BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on October 17, 2023.

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

FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act 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 17, 2023
2) Ordinance - Title 17 Commercial Districts and Moratoria Item Number: 17.

SR-23-218
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: October 17, 2023
Department: Community Development
Prepared by: Travis Clark, Community Development Director Subject: Ordinance Amending Chapter of Title 17, Zoning Code: "Chapter 17.12 (Commercial Districts)," and In Effect Terminating the Urgency Interim Ordinances (Moratoria) Approved by the City Council on January 17, 2023 and on May 2, 2023 Restricting Uses in the Downtown Area RECOMMENDATION:
1) Staff Report;
2) Entertain questions of Staff from the City Council;
3) Open the Public Hearing;
4) Take public testimony for those in favor;
5) Take public testimony for those opposed;
6) Take public testimony for those in a neutral position; 7) Close the Public Hearing;
8) City Council discussion and questions to Staff; and
9) Introduce for First Reading and read by title only: "An Ordinance amending "Chapter 17.12 (Commercial Districts)" of Title 17, Zoning Code, which Ordinance will in effect terminate the Urgency Interim Ordinances (Moratoria) approved by the City Council on January 17, 2023 and on May 2, 2023 restricting uses in the Downtown Area."
BACKGROUND:

The City of Desert Hot Springs has undertaken an effort to update and amend Title 17, Zoning Code of the Desert Hot Springs Municipal Code. The reasons for these updates include:
 Clarifying language in the chapters that is ambiguous or contradictory  Performing an internal consistency check across all chapters of the Zoning Code  Performing a consistency check with the General Plan
 Adding language that specifies mixed-use developments as covered by the Zoning Code  Streamlining the processing and approvals of housing projects, especially affordable housing projects, to meet State mandated requirements
The City received funding from the State to assist with the modifications of the ordinance, especially in the parts of the code concerning housing projects. Specifically, the State is requiring the City to remove barriers to create additional housing via limiting or eliminating discretionary reviews and allowing more housing projects as uses by right that follow objective code requirements only.

Item Number: 17.

SR-23-218
DISCUSSION:

A summary of the changes are listed below:

Chapter 17.12 Commercial Districts
 Removed Visitor-Serving Commercial from this chapter to be combined with Visitor-Serving Mixed-Use (which is currently in the Mixed-Use District chapter) to create a new VisitorServing District chapter  Reorganized design standards into a table for ease of use  Moved up design guidelines below design standards
 Generally changed the Permitted Uses Table to be less restrictive  Cannabis Entertainment Facility was change to Cannabis Lounge  Added new uses such as Mobile Food Vending Vehicle Parks (permanent), Cannabis Lounge, Event Facility, and Food and Indoor Retail Concessions Mall to the permitted uses table  Added the ability to develop multi-family residential and live/work uses in the Downtown Commercial (C-D) district to encourage more mixed-use projects downtown  Added the ability to develop Residential Care Facilities in Neighborhood Commercial (C-N), General Commercial (C-G), and Downtown Commercial (C-D)  Made minor modifications to the specific standards sections  Added an outdoor sales and display section to specific standards with regulations  Removed many of the regulations surrounding Tattoo and Body Piercing Establishments. A 300 foot separation distance remains.

Planning Commission changes included:
 Removed Mini-malls (Strip Malls) as a Permitted Use in the Downtown Commercial District  Allowed Tattoo and Body Piercing Establishments as a Permitted Use in all commercial zoning districts.
 Removed the Table 17.12.02, Commercial District Specific Standards and incorporated the information in Table 17,12.01, Site Development Standards Further, the adoption of the attached Ordinance will in effect terminate the Urgency Interim Ordinances (Moratoria) approved by the City Council on January 17, 2023 and on May 2, 2023 restricting uses in the Downtown Area.

Item Number: 17.

SR-23-218
FISCAL IMPACT:

None.

ENVIRONMENTAL ANALYSIS:

In accordance with the provisions of the California Environmental Quality Act (“CEQA”), this project is Categorically Exempt from environmental review pursuant to Section No. 15061(b)(3) of the California Environmental Quality Act 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 - Title 17 Commercial District and Moratoria 2) Chapter 17.12 Commercial Districts - Red Line w/ PC Changes 3) Chapter 17.12 Commercial Districts - CURRENT
Item Number: 17.

ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS 1) AMENDING THE FOLLOWING CHAPTER OF THE
DESERT HOT SPRINGS MUNICIPAL CODE: A) CHAPTER 17.12
COMMERICAL DISTRICTS, AND 2) IN EFFECT TERMINATING THE
URGENCY INTERIM ORDINANCES NUMBERS 771 AND 779
(MORATORIA) APPROVED BY THE CITY COUNCIL ON JANUARY 17, 2023 AND ON MAY 2, 2023, RESPECTIVELY, RESTRICTING USES IN

THE DOWNTOWN AREA
WHEREAS, pursuant to the authority granted the City of Desert Hot Springs (“City”) by Article XI, Section 7 of the California Constitution, the City has the police power to regulate the use of land and property within the City in a manner designed to promote public convenience and general prosperity, as well as public health, welfare and safety; and
WHEREAS, adoption and enforcement of comprehensive zoning regulations and other land use regulations lies within the City’s police power; and WHEREAS, the City is in the process drafting a comprehensive overhaul to Title 17, making substantive changes, as well as amending chapters for internal consistency; and
WHEREAS, this Ordinance is for the benefit of the public health, safety and welfare.

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

Section 1. RECITALS
That the above recitals are true and correct and are incorporated as though fully set forth herein.

Section 2. CHAPTER TO BE AMENDED
That the City Council hereby amends the following Chapter of the Desert Hot Springs Municipal Code as follows:
1) Chapter 17.12 “Commercial Districts”, which shall be amended as per Exhibit A, which is incorporated herein
Section 3. TERMINATION OF ORDINANCES 771 AND 779
Ordinances 771 and 779 were adopted by the City Council to place land use restrictions in certain portions of the Downtown Area. By operation of law, Ordinances 771 and 779 will automatically terminate and become null and void at the same time this Ordinance becomes effective, because this Ordinance covers the same areas and land uses that were covered in Ordinances 771 and 779.

Item Number: 17.

Section 4. ENVIRONMENTAL FINDINGS
The City Council finds that adoption of this ordinance is exempt from the provisions of the California Environmental Quality Act pursuant to Title 14 California Code of Regulations section 15061, subsection (b)(3), in that the proposed ordinance involves a proactive measure to change certain uses within the Downtown Area and does not have the potential to significantly impact the environment.

Section 5. SEVERABILITY
The City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 6. AMENDING OF BAIL SCHEDULE
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 7. EFFECTIVE DATE
This ordinance shall become effective 30 days after its second reading.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs, California, at a regular meeting held on the 7th day of November, 2023, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
_____________________________
ATTEST Scott Matas, Mayor
_____________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_____________________________
Jennifer Mizrahi, City Attorney
Item Number: 17.

1 Exhibit A
Chapter 17.12 COMMERCIAL DISTRICTS
Sections:

17.12.010 Purpose.

17.12.020 Permitted uses.

17.12.030 Land use district development standards.

17.12.040 Land use district specific standards.

17.12.050 Applicable regulations.

17.12.060 Commercial development design guidelines.

17.12.070 General design principles.

17.12.080 Site Planning

17.12.090 Parking and circulation.

17.12.100 Landscaping.

17.12.110 Walls and fences.

17.12.120 Screening.

17.12.130 Architectural design guidelines.

17.12.140 Roofs.

17.12.150 Awnings.

17.12.160 Signs.

17.12.170 Lighting

17.12.180 Bonus height.

17.12.190 Alcohol beverage control “ABC” license.

17.12.200 Automobiles sales.

17.12.210 Convenience stores.

17.12.220 Day care centers.

17.12.230 Drive-through restaurants.

17.12.240 Indoor retail concession malls.

17.12.250 Outdoor dining.

17.12.260 Outdoor sales and display

17.12.270 Mini-malls (strip malls).

17.12.280 Multifamily housing.

17.12.290 Household recycling facilities for reusable domestic containers.

17.12.300 Supportive housing (Senior citizen/congregate care housing standards.)

17.12.310 Service station (gasoline) standards.

17.12.320 Service station conversions.

17.12.330 Single-family housing, existing.

17.12.340 Single-family/office conversions.

17.12.350 Tattoo and body piercing establishments.

17.12.360 Mobile food vending vehicle parks.

17.12.010 Purpose.

A. This chapter applies to all development in the commercial districts. The purpose of these zoning districts is to:

Item Number: 17.

2 1. Allow a mixture of complementary land uses that may include retail, offices, commercial services, and civic uses, to create economic and social vitality;

2. Develop commercial areas that are safe, comfortable and attractive to pedestrians;

3. Protection of commercial and adjoining residential areas from excessive noise, illumination, unsightliness, odor, and smoke.

4. Provide flexibility in the location and design of new developments to anticipate changes in the market;

5. Reinforce streets as public places that encourage pedestrian and bicycle travel and connections to residential areas;

6. Provide both formal and informal community gathering places;

7. Provide employment opportunities for existing and future residents of the City and those of adjacent communities.

8. Provide visitor accommodations and tourism amenities.

B. The specific purpose of each individual commercial district is as follows:

1. C-N (Neighborhood Commercial). This district is intended to accommodate a limited range of neighborhood scale retail sales, business, dining, personal, and professional services conveniently located near residential areas.

2. C-G (General Commercial). This district is intended to accommodate a wide range of retail sales, business, dining, personal, and professional services, as well as entertainment and lodging.

3. C-D (Downtown Commercial). This district is intended to encourage the development of a concentration of pedestrian-oriented commercial, entertainment, personal service, and office uses in the central business area of the City, which will provide a focal point of activity for the City and the surrounding areas. Multi-family residential uses that compliment commercial uses are also encouraged to create a lively downtown area.

4. C-H (Highway Commercial). This district is intended to accommodate those business and retail uses which provide merchandise and services desired by motorists, directly from or for motor vehicles. The C-H district is intended to promote a unified grouping of travel-oriented uses, such as fueling stations, regional retail, entertainment, dining, and hotels.

5. C-BP (Business Park Commercial). This district is intended to facilitate a flexible administrative, medical, research, and office centers. The intent is to create, maintain, and support an environment for employment-generating businesses including administrative, professional office, limited industry, medical, research, and similar uses. It is also the intent to provide amenities, personal service, and convenient restaurant uses for people who work in the business park.

Item Number: 17.

3 17.12.020 Permitted uses.

A. Table 17.12.01 lists the uses permitted in each of the commercial and visitor-serving districts utilizing the following key:
“P” Use is permitted by right. (A Development Permit may be required for a new use or structure or expansion of an existing use.)
“A” Use is accessory to an established primary use.
“AUP” Use requires an Administrative Use Permit.
“CUP” Use requires a Conditional Use Permit.
“TUP” Use requires a Temporary Use Permit.
“—” Use is prohibited.

B. Land uses listed in Table 17.12.01 use definitions from the North American Industry Classification System (NAICS) unless otherwise defined specifically by this title. The individual land uses permitted in each of the mixed-use districts are grouped in Table 17.14.01 using the major land use categories of Commercial, Industrial, Institutional, Residential and Other.

TABLE 17.12.01
PERMITTED USES – COMMERCIAL AND VISITOR SERVING DISTRICTS USE

COMMERCIAL DISTRICTS

C-N C-G C-D C-H C-BP CODE SECTION

BUSINESS, FINANCIAL, AND PROFESSIONAL OFFICE
Automated Teller
Machines(ATMs) –
Drive-up

AUP AUP AUP AUP AUP
Business Support
Services

P P P P P
Check Cashing and/or
Payday Loans
— CUP _ — —
Financial Institutions and
Related Services(without
drive-through facilities)

P P P P P
Financial Institutions and
Related Services (with
drive-through facilities)

AUP P - P P
Item Number: 17.

4 Office, Business and
Professional

P P P P P

EATING AND DRINKING ESTABLISHMENTS

USE C-N C-G C-D C-H C-BP CODE SECTION
Bars, Lounges,
Nightclubs, and Tasting
Rooms*
— CUP CUP CUP CUP 17.12.190
Food Preparation/Catering
(no on-site sales or
service)

AUP P P P P
Food Preparation/Catering
(with on-site sales or
service)

AUP P P P P
Restaurant – Full or
Limited Service, Serving
Alcohol*
AUP AUP AUP AUP AUP 17.12.190
Restaurant – Full or
Limited Service, No
Alcohol Sales

P P P P P
Restaurant with Drivethrough Facilities*P P — P P 17.12.1230 Snack Bar A A A A A
Mobile food vending
vehicle parks
- AUP AUP AUP AUP 17.12.360 Mobile
food vending
vehicle parks.

Mobile food vending
vehicle parks - Ancillary
- AUP AUP AUP AUP 17.12.360 Mobile
food vending
vehicle parks.

INDUSTRY, MANUFACTURING AND PROCESSING, AND WAREHOUSING

USE C-N C-G C-D C-H C-BP CODE SECTION
Brewery, Winery, or
Distillery — CUP CUP CUP CUP
Data Centers — — — — P
Hazardous Waste
Facilities
— — — — —
Food Processing — — — — AUP
Furniture and fixtures
manufacturing, cabinet
shops, and woodworking
shops (wholesale sales
only)
— — — — P
Laboratory – Medical,
Analytical, Research,
Testing
— — — — AUP
Laundries and DryCleaning Plants — — — — —
Manufacturing – Heavy — — — — —
Item Number: 17.

5 Manufacturing – Light — — — — CUP
Recycling
Small Collection Facility* — AUP — AUP AUP 17.12.290
Large Collection Facility* — CUP — CUP CUP 17.12.209
Light Processing* — — — — — 17.12.290
Heavy Processing* — — — — — 17.12.290
Reverse Vending
Machine

A A A A A
Research and
Development — — — — P
Storage – Outdoor — — — — CUP
Warehouse, Wholesaling
and Distribution — — — — CUP

LODGING

USE C-N C-G C-D C-H C-BP CODE SECTION
Hotel and Motel (without
spa)
— CUP CUP P CUP
Spa Resort — — CUP CUP CUP
Emergency Shelter/Low
Barrier NavigationCenter — — — — CUP
Camping/Glamping - - - - -

MARIJUANA/CANNABIS USES
USE C-N C-G C-D C-H C-BP 1 In Industrial
Cannabis
Overlay Zone,
marijuana use
cannot be a standalone use and must
in center with other
retail/commercial
uses.
2 In Overlay Zone
use Ch. 17.180 as
default regulations.

Marijuana/Cannabis
Nonstorefront Retail — — — — CUP1,2
Marijuana/Cannabis
Distribution — — — — CUP1,2
Marijuana/Cannabis
Cultivation — — — — CUP1,2
Marijuana/Cannabis
Lounge CUP CUP CUP CUP CUP
Marijuana/Cannabis
Hotel Facilities CUP CUP — CUP CUP
Marijuana/Cannabis
Manufacturing — — — — CUP1
Marijuana/Cannabis
Storefront Retail
CUP CUP CUP CUP CUP 17.180.040
Marijuana/Cannabis
Testing Facilities P P P P P 17.180.070

MEDICAL-RELATED AND CARE USES

USE C-N C-G C-D C-H C-BP CODE SECTION
Ambulance Fleet — AUP AUP — AUP
Clinic and Urgent Care — AUP AUP AUP AUP
Day Care Center* CUP CUP — — — 17.12.220
Item Number: 17.

6 Therapy and
Rehabilitation Facilities P CUP P AUP P
Hospital — CUP CUP CUP CUP
Office, Medical and
Dental Office

P P P P P
Residential Care Facilities
(Commercial Assisted
Living, Nursing Home)
CUP CUP CUP — —

PUBLIC AND ASSEMBLY USES

USE C-N C-G C-D C-H C-BP CODE SECTION
Cultural Institutions AUP P P P P
Event Facility, Event
Center, Event Venue
- P AUP AUP AUP
Public Assembly
Facilities
— CUP CUP CUP CUP
Religious Assembly
Facilities
— CUP CUP CUP CUP
Schools, Private CUP CUP CUP — CUP
Trade and Vocational
Schools
— CUP CUP P P
Tutoring and Education
Centers

P P P P P

RECREATION AND ENTERTAINMENT

USE C-N C-G C-D C-H C-BP CODE SECTION
Art Gallery P P P P P
Arcade /Electronic Game
Center

CUP AUP AUP AUP AUP
Commercial Recreation –
Indoors

CUP P P P P
Commercial Recreation –
Outdoors

CUP CUP CUP CUP CUP
Entertainment, Indoor
(motion picture theaters,
performance theatres,
dance halls and similar)

AUP AUP AUP P P
Health/Fitness Facilities
Health/Fitness Facilities –
Small AUP P P P P
Health/Fitness Facilities –
Large

CUP AUP CUP AUP AUP

RESIDENTIAL USES

USE C-N C-G C-D C-H C-BP CODE SECTION
Accessory Dwelling Unit — — — — —
Dwelling, Multifamily* — — AUP — — 17.12.280
Dwelling, Single-Family* — — — — — 17.12.330
Live/Work Unit* - - P - - 17.12.340
Home Occupations — — — — —
Item Number: 17.

7 Single Room Occupancy
(SRO)*
— — — — — 17.08.210
Supportive Housing
(Senior
Citizens/Congregate Care
Housing)*
CUP AUP CUP — — 17.12.300
Transitional Housing — — — — —

RETAIL USES

USE C-N C-G C-D C-H C-BP CODE SECTION
Alcohol Beverage Sales
For Off-Site
Consumption* CUP CUP CUP CUP CUP 17.12.190
For On-Site or Off-Site
Consumption, in
Conjunction with an
Allowed Use*
— CUP CUP CUP CUP 17.12.190
Building Materials and
Services, Indoor
— P P P P
Building Materials and
Services, Outdoor — CUP — P AUP
Convenience Store with
Alcohol Sales*
CUP CUP CUP CUP CUP 17.12.190

17.12.210
Convenience Store, No
Alcohol Sales*
AUP P AUP P P 17.12.210
Farmers’ Market TUP TUP TUP TUP TUP
Grocery Store P P P P P
Indoor Retail
Concessions*
- P P P P 17.12.240
Mini-mall (Strip mall)* - P — P P 17.12.270
Nurseries and Garden
Centers
— P AUP P P
Outdoor Temporary
and/or Seasonal
Sales

TUP TUP TUP TUP TUP
Recreational Equipment
Rentals – Indoor Only P P P P P
Retail Sales – General P P P P P
Retail Sales – Restricted
(firearm and ammunition
stores, pawn shops, and
jewelry/gold exchanges)
— CUP CUP CUP CUP
Vehicle Sales and Rental* — CUP — CUP CUP 17.12.200
Large Vehicle,
Construction, and Heavy
Equipment Sales, Service,
and Rental
— CUP — — CUP
Item Number: 17.

8 SERVICE USES

USE C-N C-G C-D C-H C-BP CODE SECTION
Animal Care, Services
Animal
Boarding/Kennels,
Grooming

AUP P AUP P P
Veterinary Services,
Large Animal
— P - P P
Veterinary Services,
Small Animal

AUP P P P P
Funeral Parlors and
Internment Services
— AUP CUP — AUP
Instructional Services P P P P P
Maintenance and Repair
Services – Indoor P P P P P
Moving Companies,
Storage Allowed
— — — — AUP
Personal Services,
General P P P P P
Personal Services,
Restricted (massage
establishments, day spa
with massage)

CUP CUP CUP CUP CUP
Recording Studio — AUP AUP AUP P
Social Service Facilities — P — P P
Storage
Personal — CUP — — CUP 17.16.060
Outdoor Recreational
Vehicle Storage —
-
— — CUP
Vehicle Repair and Services
Service/Fueling Station* CUP CUP - AUP CUP 17.12.310
Vehicle Washing/
Detailing A AUP AUP AUP AUP
Vehicle Service, Minor — AUP — P P
Vehicle Service, Major — — — CUP

TRANSPORTATION, COMMUNICATION, AND INFRASTRUCTURE USES

USE C-N C-G C-D C-H C-BP CODE SECTION
Car Sharing – Parking AUP AUP AUP AUP AUP
Parking Facility –
Temporary

TUP TUP TUP TUP TUP
Utility Facilities – Staffed — AUP AUP AUP AUP
Utility Facility –
Unstaffed
AUP AUP — AUP AUP
Vehicle Charging Stations
– Commercial

AUP P P P P
Vehicle Storage — — — — CUP
Wireless Communication
Facilities – Minor AUP AUP AUP AUP AUP
Item Number: 17.

9 Wireless Communication
Facilities – Major CUP CUP CUP CUP CUP
Wireless
Telecommunication
Facilities, Satellite Dish
Antenna

P P P P P

OTHER USES
Caretaker Quarters — A — — A
Donation Boxes –
Outdoors
— — — — CUP
Other Drive-Through or
Drive-Up Facilities
AUP AUP — AUP AUP
Vending Machine A A A A A
*Specific standards apply.
(Ord. 762 6-21-22; Ord. 728 1-19-21; ord. 727 1-19-21; Ord. 712 6-2-20; Ord. 610 5-2-17; Ord. 524 § 5,2010; prior code § 159.06.020)

17.12.030 Land use district development standards.

A. General Standards. The following standards are minimum unless stated as maximum. The following standards shall apply to development in all commercial districts, except as otherwise provided for in this Zoning Ordinance:

1. All indoor uses shall be conducted within a completely enclosed structure. Limited outside uses (e.g., patio dining areas and nursery sales limited to plants and trees) shall be approved with a Development Permit from the Approval Authority.

2. There shall be no visible storage of motor vehicles (except display area for sale or rent of motor vehicles), trailers, airplanes, boats, recreational vehicles, or their composite parts; loose rubbish, garbage, junk, or their receptacles; tents; equipment; or building materials in any portion of a lot. No storage shall occur on any vacant parcel. Building materials for use on the same premises may be stored on the parcel during the time that a valid building permit is in effect for construction.

3. Every parcel with a structure shall have a trash and recycling receptacle on the premises. The trash and recycling receptacle shall comply with adopted standards and be of sufficient size to accommodate the trash and recycling generated. The receptacle(s) shall be screened from public view on at least three (3) sides by a solid wall six (6) feet in height and on the fourth side by a solid gate not less than five (5) feet in height. The gate shall be maintained in working order and shall remain closed except when in use. The wall and gate shall be architecturally compatible with the surrounding structures. Recycling facilities and programs shall be incorporated into refuse storage/disposal areas.

4. All roof-mounted air conditioning or heating equipment, vents or ducts shall not be visible from Item Number: 17.

10 any abutting lot, or any public street or right-of-way. This shall be accomplished through the extension of the main structure or roof parapet or screened in a manner which is architecturally integrated with the main structure(s).

5. Elevations of all structures shall be architecturally treated to ensure compatibility with or enhancing of neighboring structures.

6. An intensity bonus of up to 12 square feet for each one (1) square foot of permanent space for properly designed and administered day care facilities may be approved by the review authority.

B. Site Development Standards.

TABLE 17.12.02

SITE DEVELOPMENT STANDARDS

DEVELOPMENT STANDARD COMMERCIAL DISTRICTS

C-N C-G C-D C-H C-BP
Gross lot area
Minimum 2.5 acres 2.5 acres 2.5 acres 10 acres 10 acres Maximum 10 acres 10 acres 5 acres 20 acres 20 acres
Individual lot area 7,200 sq.
ft. (min)
7,200 sq. ft.
(min)
5,000 sq.
ft. (min)
10,000 sq.
ft. (min)
10,000 sq.
ft.

Maximum floor-area ratio 0.30 .50 2 .30 .30
Distance between buildings 20 feet 20 feet 0 20 feet 20 feet Maximum building height 35 feet 35 feet 35 feet 50 feet 50 feet Front setbacks 25 feet 10 feet 0 feet 10 feet 10 feet
Rear setbacks 0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet adjacent
to a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
Side setback 0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet adjacent
to a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet
adjacent to
a street
and 10 feet
adjacent to
residential)
0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
0 feet
(except 10
feet
adjacent to
a street
and 20 feet
adjacent to
residential)
Item Number: 17.

11 Residential Density - - 30 du/ac - -
(Ord. 716 9-1-20; prior code § 159.06.030(1))

17.12.040 Land use district specific standards.

In addition to the general development requirements contained in Chapter 17.40 (Property Development Standards), the following standards shall apply to specific commercial land use districts.

17.12.050 Applicable regulations.

All uses shall be subject to the applicable regulations of this Zoning Ordinance, including, but not limited to Chapters 17.64 through 17.140, Administration Provisions. (Prior code § 159.06.050)

17.12.060 Commercial development design guidelines.

A. General.

1. The following design guidelines in Sections 17.12.050 through 17.12.180 are intended as a reference framework to assist the designer in understanding the City’s goals and objectives for high quality development within the commercial land use districts. The guidelines complement the mandatory site development regulations contained in this chapter by providing good examples of appropriate design solutions and by providing design interpretations of the various mandatory regulations.

2. The design guidelines are general and may be interpreted with some flexibility in their application to specific projects. The guidelines will be utilized during the City’s design review process to encourage the highest level of design quality while at the same time providing the flexibility necessary to encourage creativity on the part of project designers.

3. Unless there is a compelling reason, these design guidelines shall be followed.

B. Applicability. The provisions of this section shall apply to all commercial development within the City, except when the subject property is under the regulation of an approved specific plan, which is subject to the guidelines contained in Chapter 17.128. Any addition, remodeling, relocation, or construction requiring a building permit within any commercial land use district subject to review by the Development Review Committee shall adhere to these guidelines where applicable. (Prior code §159.06.060(1) and (2))

17.12.070 General design principles.

A. Desirable Elements of Project Design. The qualities and design elements for commercial structures that are most desirable include:

1. Richness of surface and texture;
Item Number: 17.

12 2. Significant wall articulation (insets, canopies, wing walls, trellises);

3. Multi planed, pitched roofs;

4. Roof overhangs, arcades;

5. Regular or traditional window rhythm;

6. Articulated mass and bulk;

7. Significant landscape and hardscape elements;

8. Prominent access driveways;

9. Landscaped and screened parking;

10. Comprehensive sign program.

B. Undesirable Elements. The elements to avoid or minimize include:

1. Large blank, unarticulated stucco wall surfaces;

2. Unpainted concrete precision block walls;

3. Highly reflective surfaces;

4. Metal siding on the main façade;

5. Plastic siding;

6. Square “boxlike” structures;

7. Mix of unrelated styles (i.e. rustic wood shingles and polished chrome);

8. Large, out of scale signs with flashy colors;

9. Visible outdoor storage, loading, and equipment areas;

10. Disjointed parking areas and confusing circulation patterns. (Prior code § 159.06.060(3))

17.12.080 Site Planning
Placement of structures shall consider the existing built context of the commercial area, the location of incompatible land uses, the location of major traffic generators, and consideration of specific site characteristics and surrounding influences.

A. Structures shall be sited in a manner that respects the orientation, privacy and access of adjacent structures.

B. New structures shall be clustered unless site conditions prevent clustering, as determined by the responsible review authority. The purpose is to create plazas or pedestrian malls and prevent long “barracks like” rows of structures. When clustering is impractical, a visual link between separate structures shall be established. This link can be accomplished through the use of an arcade system, trellis, or other open structure.

C. Structures and on-site circulation systems shall be placed and integrated to avoid pedestrian/vehicle conflicts. Textured paving, landscaping, and trellises shall be provided to physically and visually connect structures to the public sidewalk.

D. The importance of spaces between structures as “outdoor rooms” on the site shall be emphasized Item Number: 17.

13 through use of clear, recognizable shapes that reflect careful planning and are not simply left-over areas between structures. Such spaces shall provide pedestrian amenities such as shade, benches, fountains, etc.

E. Freestanding, singular commercial structures shall be oriented with their major entry toward the street where access is provided, as well as having their major façade parallel to the street.

F. Loading facilities shall be located at the rear or side of structures and not visible from a public right-of-way.

G. Open space areas shall be clustered into larger, predominant landscape areas rather than be equally distributed into areas of low impact such as at building peripheries, behind a structure, or areas of little impact to the public view, where they are not required as land use buffer or as a required yard setback.

H. Downtown Commercial Site Planning Standards. Development within a Downtown Commercial (CD) district shall be designed to:

1. Provide direct pedestrian linkages to adjacent public sidewalks and trails.

2. Create enhanced pedestrian connections throughout the project between commercial buildings and parking areas.

3. Provide enhanced pedestrian amenities throughout the project, including seating, pedestrian area lighting, special paving, public art, water features, common open space, directories, and similar items to create a pleasant pedestrian experience.

4. Incorporate architectural design elements and materials that relate to a pedestrian scale.

5. Locate uses in proximity to one another without large intervening parking lots so that it is convenient for people to walk between the various uses and park their vehicles only once.

6. Create a pedestrian scale and character of development along the street by providing significant wall articulation and varying roof heights, incorporating pedestrian-scale elements (e.g., doors, windows, lighting, landscaping), and locating storefronts and common open space areas (e.g., plaza, courtyard, outdoor dining) near the public sidewalk to contribute to an active street environment.

7. Provide a transition to adjacent lower-density residential uses by reducing building height and increasing building setbacks adjacent to the residential uses. (Ord. 712 6-2-20; prior code § 159.06.060(4))

17.12.090 Parking and circulation.

Parking lot design can be a critical factor in the success or failure of a commercial use. In considering the possibilities for developing a new parking area, a developer should analyze the following factors:
ingress and egress with consideration to possible conflicts with street traffic; pedestrian and vehicular conflicts; on-site circulation and service vehicle zones; solar orientation, and the overall configuration Item Number: 17.

14 and appearance of the parking area.

A. Separate vehicular and pedestrian circulation systems should be provided. Pedestrian linkages between uses in commercial developments should be emphasized, including distinct pedestrian access from parking areas in large commercial developments, such as shopping centers.

B. Parking aisles should be separated from vehicle circulation routes whenever possible.

C. Common driveways which provide vehicular access to more than one (1) site are encouraged.

D. Parking areas shall be landscaped, receiving interior as well as perimeter treatment in accordance with the requirements of this Zoning Ordinance.

E. Parking areas should be separated from structures by either a raised concrete walkway or landscaped strip, preferably both. Situations where parking spaces directly abut the structures should be avoided.

F. Shared parking between adjacent businesses and/or developments is highly encouraged whenever practical.

G. Where parking areas are connected, interior circulation should allow for a similar direction of travel and parking bays in all areas to reduce conflict at points of connection.

H. Whenever possible, locate site entries on side streets in order to minimize pedestrian/vehicular conflicts. When this is not possible, design the front site entry with appropriately patterned concrete or pavers to differentiate it from the sidewalks.

I. Parking access points, whether located on front or side streets should be located as far as possible from street intersections so that adequate stacking room is provided. The number of access points should be limited to the minimum amount necessary to provide adequate circulation.

Item Number: 17.

15 J. Design parking areas to that pedestrians walk parallel to moving cars. Minimize the need for the pedestrian to cross parking aisles and landscape areas.

K. Parking areas and pedestrian walkways should be visible form structures to the greatest degree possible.

L. The parking area should be designed in a manner which links the structures to the street sidewalk system as an extension of the pedestrian environment. This can be accomplished by using design features such as walkways with enhanced paving, trellis structures, or a special landscaping treatment.

M. Parking areas which accommodate a significant number of vehicles should be divided into a series of connected smaller lots. Landscaping and offsetting portions of the lot are effective in reducing the visual impact of large parking areas.

Item Number: 17.

16 N. The first parking stall which is perpendicular to a driveway or first aisle juncture, should be at least 10 feet back from the curb. With larger centers, significantly more setback area may be required.

O. Utilize a 36-inch-high opaque wall or landscaping to screen any parking at the street periphery.

A combination of walls, berms, and landscape material is highly recommended. Where practical, lowering the grade of the parking lot from existing street elevations may aid in obscuring views of automobiles while promoting views of architectural elements of the structures beyond.

P. Bicycle parking shall be provided per the California Building Code but shall include a minimum of one bicycle rack to secure bicycles.

Item Number: 17.

17 (Prior code § 159.06.060(5))

17.12.100 Landscaping.

A. Landscaping for commercial uses should be used to define specific areas by helping to focus on entrances to buildings and parking lots, define the edges of various land uses, provide transition between neighboring properties (buffering), and provide screening for loading and equipment areas.

B. Landscaping should be in scale with adjacent structures and be of appropriate size at maturity to accomplish its intended purpose.

C. Landscaping around the entire base of structures is recommended to soften the edge between the parking lot and the structure. This should be accented at entrances to provide focus.

D. Trees should be located throughout the parking lot and not simply at the ends of parking aisles.

In order to be considered within the parking lot, trees should be located in planters that are bounded on at least three (3) sides by parking area paving.

E. Landscaping should be protected from vehicular and pedestrian encroachment by raised planting surfaces, raised walks, or the use of curbs. Concrete mow stripes separating turf and shrub areas are required per the development regulations.

Item Number: 17.

18 F. Vines and climbing plants integrated upon buildings, trellises, and perimeter garden walls are strongly encouraged.

G. Use boxed and tubbed plants in clay or wood containers, especially for enhancement of sidewalk shops, plazas, and courtyards.

H. At maturity, trees should be able to be trimmed 10 feet above ground and shrubs should be maintained at a height of approximately three (3) feet to provide adequate visibility. (Prior code § 159.06.060(6))

17.12.110 Walls and fences.

A. If not required for a specific screening or security purpose, walls should not be utilized within commercial areas. The intent is to keep the walls as low as possible while performing their screening and security functions.

B. Where walls are used at property frontages, or screen walls are used to conceal storage and equipment areas, they should be designed to blend with the site’s architecture. Both sides of all perimeter walls or fences should be architecturally treated. Landscaping should be used in combination with such walls whenever possible.

C. When security fencing is required, it should be a combination of solid walls with pillars and decorative view ports or short solid wall segments and wrought iron/tubular steel grill work.

Item Number: 17.

19 D. Long expanses of fence or wall surfaces should be offset and architecturally designed to prevent monotony. Landscape pockets should be provided.
(Prior code § 159.06.060(7))

17.12.120 Screening.

A. Screening for outdoor storage should be a minimum of six (6) feet and a maximum of 10 feet high. The height should be determined by the height of the material or equipment being screened.

Exterior storage should be confined to portions of the site least visible to public view.

B. Where screening is required, a combination of elements should be used including solid masonry walls, berms, and landscaping.

C. Any outdoor equipment, whether on a roof, side of a structure, or on the ground, shall be appropriately screened from view. The method of screening shall be architecturally integrated with the adjacent structure in terms of materials, color, shape, and size. Where individual equipment is provided, a continuous screen is desirable. (Prior code § 159.06.060(8))
Item Number: 17.

20 17.12.130 Architectural design guidelines.

A. Heights of structures should relate to adjacent open spaces to allow maximum sunlight and ventilation, protection from prevailing winds, enhance public views of surrounding mountains and minimize obstruction of view from adjoining structures.

B. Height and scale of new development should be compatible with that of surrounding development.

New development height should “transition” from the height of adjacent development to the maximum height of the proposed structure.

C. Large buildings which give the appearance of “box-like” structures are generally unattractive and detract from the overall scale of most buildings. There are several ways to reduce the appearance of large scale, bulky structures.

1. Vary the planes of the exterior walls in depth and/or direction. Wall planes should not run in 1 continuous direction for more than 50 feet without an offset.

2. Vary the height of the buildings so that it appears to be divided into distinct massing elements.

3. Articulate the different parts of a building’s facade by use of color, arrangement of facade elements, or a change in materials.

4. Use landscaping and architectural detailing at the ground level to lessen the impact of an otherwise bulky building.

5. Avoid blank walls at the ground floor levels. Utilize windows, trellises, wall articulation, arcades, change in materials, or other features.

6. All structure elevations should be architecturally treated.

Item Number: 17.

21 D. Scale, for purposes here, is the relationship between the size of the new structure and the size of adjoining permanent structures. It is also how the proposed building’s size relates to the size of a human being (human scale). Large scale building elements will appear imposing if they are situated in a visual environment which is predominantly smaller in scale.

1. Building scale can be reduced through the proper use of window patterns, structural bays, roof overhangs, siding, awnings, moldings, fixtures, and other details.

2. The scale of buildings should be carefully related to adjacent pedestrian areas (i.e., plazas, courtyards) and other structures.

3. Large dominating structures should be broken up by:
a. Creating horizontal emphasis through the use of trim; b. Adding awnings, eaves, windows, or other architectural ornamentation; c. Use of combinations of complementary colors;
d. Landscape materials.

E. The use of standardized “corporate” architectural styles associated with chain-type restaurants is strongly discouraged.

F. Much of the existing color in the City is derived from the primary building’s finish materials such Item Number: 17.

22 as brick, wood, stucco, and terra cotta tile. Also dominant are earth tones that match these natural materials.

1. Large areas of intense white color should be avoided. While subdued colors usually work best as a dominant overall color, a bright trim color can be appropriate.

2. The color palette chosen for new structures should be compatible with the colors of adjacent structures. An exception is where the colors of adjacent structures strongly diverge from these design guidelines.

3. Whenever possible, minimize the number of colors appearing on the structure’s exterior. Small commercial structures should use no more than three (3) colors.

4. Primary colors should only be used to accent elements, such as door and window frames and architectural details.

5. Architectural detailing should be painted to complement the facade and tie in with adjacent structures.
(Prior code § 159.06.060(9))

17.12.140 Roofs.

A. The roofline at the top of the structure should not run in continuous plane for more than 50 feet without offsetting or jogging the roof plane.

B. All roof-top equipment shall be screened from public view by screening materials of the same nature as the structure’s basic materials. Mechanical equipment should be located below the highest vertical element of the building or parapet.

C. The following roof materials should not be used:

1. Corrugated metal (standing rib metal roofs are permitted);

2. Highly reflective surfaces (copper roofs may be considered); Item Number: 17.

23 3. Illuminated roofing. (Prior code § 159.06.060(10))

17.12.150 Awnings.

A. The use of awnings along a row of contiguous structures should be restricted to awnings of the same form and location. Color of the awnings should be consistent, and a minimum of eight (8)- foot vertical clearance should be maintained.

B. Signs on awnings should be printed on and be limited to the awning’s flap (valance) or to the end panels of angled, curved or box awnings.

C. Plexiglas, metal, and glossy vinyl illuminated awnings are strongly discouraged. Canvas, treated canvas, matte finish vinyl, and fabric awnings are encouraged.

D. Internally lit awnings should not be used. (Prior code § 159.06.060(11))

17.12.160 Signs.

A. Every structure and commercial complex should be designed with a precise concept for adequate signing. Provisions for sign placement, sign scale in relationship with the building, and sign readability should be considered in developing the signing concept. All signing should be highly compatible with the building and site design relative to color, material, and placement.

B. Monument-type and wall signs are the preferred alternative for business identification whenever possible. Where several tenants occupy the same site, individual wall mounted sign are appropriate in combination with a monuments sign identifying the development and address.

C. The use of backlit individually cut letter signs (channel letter sign) is strongly encouraged.

D. Each development site should be appropriately signed to give directions to loading and receiving areas, visitor parking and other special areas.

Item Number: 17.

24 (Prior code § 159.06.060(12))

17.12.170 Lighting.

A. Lighting should be used to provide illumination for the security and safety of on-site areas such as parking, loading, shipping, and receiving, pathways, and working areas.

B. The design of light fixtures and their structural support should be architecturally compatible with the main structures on-site. Illuminators should be integrated within the architectural design of the structures.

C. As a security device, lighting should be adequate but not overly bright. All building entrances should be well lighted.

D. All lighting fixtures must be shielded to confine light spread within the site boundaries.

Item Number: 17.

25 (Prior code § 159.06.060(13))

17.12.180 Bonus height.

Proposed structures shall not exceed the maximum height limit of the district. This section provides a special incentive to increase the maximum allowable height limit through a program which encourages such additional amenities as deemed desirable by the Planning Commission. These amenities may include, but are not limited to the following:

A. Mixed use developments (i.e., residential above commercial office and retail uses, restaurants, theaters, etc.);
B. Enhanced pedestrian activities;
C. Improved signage and additional landscaping;
D. Additional parking;
E. Ground level and second floor plazas;
F. Outdoor cafes;
G. Artistic sculptures and aquatic amenities; and
Item Number: 17.

26 H. Day care centers. (Prior code § 159.06.030(2)(C))

17.12.190 Alcohol beverage control “ABC” license.

A business or establishment requiring issuance of an “ABC” license is subject to a Conditional Use Permit, and shall comply with the following standard(s), in addition to conditions imposed by the Commission:

A. Establishments subject to an off-site “ABC” license shall not be located within 500 feet, or as allowed by State law whichever is more restrictive, of any religious institution, school, or public park within the City. The license application shall be reviewed by the Police Department prior to City approval.

B. Sit down restaurants whose predominant function is the service of food where the on-site sale of alcoholic beverages is incidental or secondary are exempt from the requirement for a Conditional Use Permit; an incidental bar or lounge shall be allowed for the convenience of dining patrons. (Establishments which are primarily a bar or lounge or have a bar or lounge area as a principal or independent activity are not included in this exemption.) (Prior code § 159.06.030(2)(A))

17.12.200 Automobiles sales.

Automobile sales dealerships, new and/or used, in the City must conform to the intent of this Zoning Ordinance and shall enhance and promote the image of the City. A Conditional Use Permit shall be required, and all dealerships must be constructed in the following manner:

A. The minimum site area shall be 15,000 square feet, except where a larger minimum area is required.

B. All parts, accessories, etc., shall be stored within a fully enclosed building.

C. Service and associated car storage areas shall be screened from public view.

D. All on-site lighting shall be stationaryand directed away from and sensitive to adjoining properties and public rights-of-way.

E. All landscaping shall be installed and permanently maintained pursuant to the provisions of Chapter 17.56 (Landscaping Standards).

Item Number: 17.

27 F. All on-site signage shall comply with the provisions of Chapter 17.44 (Sign Regulations) G. All loading and unloading of vehicles shall occur on-site and not in adjoining streets or alleys.

H. All vehicles associated with the business shall be parked or stored on-site and not in adjoining streets and alleys.

I. An adequate on-site queuing area for service customers shall be provided. Required parking spaces may not be counted as queuing spaces.

J. No vehicle service or repair work shall occur except within a fully enclosed structure. Service bays with individual access from the exterior of the structure shall not directly face or front on a public right-of- way.

K. All on-site parking shall comply with provisions of Chapter 17.48 (Off-Street Parking Standards).

A parking plan shall be developed as part of the permit review process.

L. Every parcel with a structure shall have a trash receptacle on the premises. The trash receptacle shall comply with applicable City standards and be of sufficient size to accommodate the trash generated. The receptacle(s) shall be screened from public view on at least three (3) sides by a solid wall six (6) feet in height and on the fourth side by a solid gate not less than five (5) feet in height. The gate shall be maintained in working order and shall remain closed except when in use. The wall and gate shall be architecturally compatible with the surrounding structures.

Recycling facilities and programs shall be incorporated into refuse storage/disposal areas for all new development projects and all new construction in existing projects. (Prior code § 159.06.030(2)(B))

17.12.210 Convenience stores.

The retail sale of groceries, staples, sundry items and/or alcoholic beverages where the gross floor area is less than 5,000 square feet is subject to Development Permit review, and shall be constructed and operated in the following manner:

A. The minimum site area shall be 10,000 square feet.

B. The site shall have direct frontage along a major or secondary street. The site shall not have primary access on a local residential street.

C. One (1) access drive may be permitted for each street frontage. The design and location of the access drive(s) shall be subject to the approval of the City Engineer and the Planning Commission.

Item Number: 17.

28 D. All on-site lighting shall be energy efficient, stationary, and directed away from adjoining properties and public rights-of-way.

E. All on-site signage shall comply with the provisions of Chapter 17.44 (Sign Regulations).

F. All landscaping shall be installed and permanently maintained pursuant to the provisions of Chapter 17.56 (Landscaping Standards).

G. All on-site parking shall comply with the provisions of Chapter 17.48 (Off-Street Parking Standards). A parking plan shall be part of the permit review process.

H. The premises shall be kept in a neat and orderly condition at all times.

I. Every parcel with a structure shall have a trash receptacle on the premises. The trash receptacle shall comply with adopted City standards and be of sufficient size to accommodate the trash generated. The receptacle(s) shall be screened from public view on at least three (3) sides by a solid wall six (6) feet in height and on the fourth side by a solid gate not less than five (5) feet in height. The gate shall be maintained in working order and shall remain closed except when in use. The wall and gate shall be architecturally compatible with the surrounding structures.

Recycling facilities and programs shall be incorporated into refuse storage/disposal areas for all new development projects and all new construction in existing projects.

J. If on-site dispensing of automotive fuels is provided, the design, location and operation of these facilities shall be consistent with the provisions of Section 17.12.170 (Service stations standards).

Additionally, the cashier location shall be provided with direct visual access to the pump islands and the vehicles parked adjacent to the islands.

K. A bicycle rack shall be installed in a convenient location visible from the inside of the store.

L. Each convenience store shall provide a public restroom located within the store.

M. On-site video games may not be installed or operated on the premises.

N. A convenience store adjacent to any residentially designated district shall have a six (6)-foothigh decorative masonry wall along property lines adjacent to such districts.

O. All parking, loading, circulation aisles, and pump island bay areas shall be constructed with (PCC) concrete. (Ord. 711 5-19-20; prior code § 159.06.030(2)(D))

17.12.220 Day care centers.

Item Number: 17.

29 Refer to Section 17.08.060. (Prior code § 159.06.030(2)(E))

17.12.230 Drive-through restaurants.

This section contains standards for drive-through restaurants as well as prohibition of same in specified land use districts. Drive-through restaurants are subject to Development Permit review.

A. Establishments providing drive-through facilities may be permitted in the C-N, C-H, C-G, and C-BP zoning districts.

B. Pedestrian walkways should not intersect the drive-through aisles if avoidable, but where they do, they shall have clear visibility, and they must be emphasized by delineated paving or striping.

C. Drive-through aisles shall have a minimum 12-foot width on curves and a minimum 11-foot width on straight sections.

D. Drive-through aisles shall provide sufficient stacking area behind menu boards to accommodate a minimum of four (4) cars.

E. All service areas, restrooms and ground-mounted and roof-mounted mechanical equipment shall be screened from view.

F. Landscaping shall screen drive-through or drive-in aisles from the public right-of-way and shall be used to minimize the visual impact of menu board signs and directional signs.

G. Drive-through aisles shall be constructed with (PCC) concrete.

H. The drive-through aisle and structure shall be set back from the ultimate curbface a minimum of 25 feet.

I. Menu boards shall be a maximum of 30 square feet, with a maximum height of seven (7) feet and shall face away from the street.

J. Drive-through restaurants within an integrated shopping center shall have an architectural style consistent with the theme established in the center. The architecture of any drive-through restaurant must provide compatibility with surrounding uses in form, materials, colors, scale, etc.

Structure plans shall have variation in depth and angle to create variety and interest in its basic form and silhouette. Articulation of structure surface shall be encouraged through the use of openings and recesses which create texture and shadow patterns. Structure entrances shall be well Item Number: 17.

30 articulated and project a formal entrance through variation of architectural plane, pavement surface treatment, and landscape plaza.

K. No drive-through aisles shall exit directly onto a public right-of-way. (Prior code § 159.06.030(2)(F))

17.12.240 Indoor retail concession malls.

Indoor retail concession malls are subject to a Conditional Use Permit and shall comply with the following standards:

A. Additional refuse containers may be required.

B. A centralized loading area is required.

C. A parking study may be required which addresses available off-street parking for establishments which are proposed for tenant suites within existing multi-tenant, commercial centers.

D. Indoor retail concession malls shall be considered to be one (1) tenant for purposes of Zoning Ordinance sign standards. (Prior code § 159.06.030(2)(G))

17.12.250 Outdoor dining.

Outdoor dining shall require be a development permitted use (Development Permit required) in all zoning districts in which restaurant uses are permitted or conditionally permitted within the City. In addition to meeting all standards necessary for the approval of a Development Permit, such use shall further comply with all of the following standards and conditions:

A. Parking shall be provided pursuant to the off-street parking standards set forth in Chapter 17.48 of this code unless off-street is exempt within the zoning district.

B. No area used for open air dining shall be located in the public right-of-way except as provided in this section.

C. Any lighting in outdoor dining areas shall comply with all applicable City ordinances regulating outdoor lighting and shall be of a design that is directed away from and avoids disruptions to nearby properties and uses. Flame lighting such as Tiki torches shall only be permitted if encased in a design that eliminates fire safety hazards in a manner satisfactory to the City’s Fire Department.

Item Number: 17.

31 D. Reviewing Authority.

1. Unless otherwise specified herein, the reviewing authority for a Development Permit for outdoor dining shall be the Director of Community Development. If, in the opinion of the Director, an application merits review by the Planning Commission, the Director may refer such application to the Planning Commission, and the Commission shall serve as the reviewing authority and shall conduct a noticed public hearing regarding the request consistent with Chapter 17.104.

2. Notwithstanding the provisions of subsection (D)(1) of this section, if the application for a Development Permit for outdoor dining accompanies an application for any other type of discretionary approval from the Planning Commission or City Council for the same site area, the Planning Commission or City Council, as appropriate, shall be the reviewing authority for the application for a Development Permit for outdoor dining and shall conduct a noticed public hearing regarding the request.

E. Outdoor Dining in the Public Rights-of-Way. No outdoor dining use shall be established in the public right-of-way without further complying with the following conditions:

1. A minimum distance of not less than a five (5)-foot-wide wheelchair accessible path of travel pedestrian aisle shall be maintained on the public right-of-way at all times: to assure the required pedestrian travel aisle, all outdoor dining areas shall be set back a minimum of five (5) feet from the edge of the curb and any fixed sidewalk obstruction including, without limitation, curblines, tree wells, street trees, parking meters, water hydrants, light poles, utility equipment boxes, newspaper racks and bus benches.

2. Umbrellas located in the outdoor dining area shall have a minimum seven (7)-foot clearance from the ground to the lowest element of the umbrella and shall be located completely within the outdoor dining area’s permitted boundaries.

3. Portable heaters shall be located a minimum of three (3) feet from any combustible material and shall be located completely within the outdoor dining area’s permitted boundaries.

4. Unless a permanent structure is approved pursuant to the Development Permit, all fixtures and furniture used in an outdoor dining area shall be removed from the public right-of-way and stored out of public view during non-business hours. At the discretion of the reviewing authority, outdoor dining areas with more than eight (8) chairs that present increased safety risks due to their configuration may be required to provide a permanent barrier delineating the usable open air dining area from the public right-of-way.

5. The outdoor dining area must be immediately adjacent to and abutting the associated restaurant space. Areas used for outdoor dining shall not extend beyond the building frontage for the associated restaurant space.

6. The material and design of the furniture (including umbrellas) and barrier, if any, shall be reviewed and approved by the reviewing authority prior to installation. The reviewing authority Item Number: 17.

32 shall consider whether the design of the furniture and barrier are integrated and compatible in terms of color, shape and size with the adjacent restaurant and shall further ensure that all outdoor furniture and other permitted structures are of a size, shape and weight that can resist being moved in severe wind conditions.

7. An encroachment permit allowing establishment of an outdoor dining area shall be issued by the Public Works Department in a form satisfactory to the City Engineer. Such permit shall be conditioned in a manner acceptable to the City Engineer to protect the health, safety and welfare of the City and its citizens, and shall include, without limitation, reasonable insurance requirements and indemnification provisions acceptable to the City Engineer to protect persons and the City from injury and risks associated with the outdoor dining use.

8. Areas used for outdoor dining in the public right-of-way shall comply with all applicable provisions of the City’s building codes, including, but not limited to, maintaining proper building egress and ingress at all times, observing maximum seating capacities, providing proper circulation, and providing appropriate handicap access.

9. An annual rental fee payable to the City shall be imposed on the use or operation of outdoor dining areas located in the public right-of-way. The rental fee schedule shall be set by resolution of the City Council. In the event that a permit is suspended pursuant to this section, rental fees shall not be required to be paid during the period of suspension.

10. Areas used for outdoor dining in the public right-of-way shall at all times be maintained in a neat and orderly manner free from any visible signs of disrepair.

11. Music, whether live or prerecorded, and any other form of live or prerecorded entertainment, shall not be broadcast or performed within outdoor dining areas occupying the public right-ofway. Electronic sound amplification equipment (e.g., speakers, microphones, amplifiers, sound receivers) is prohibited within outdoor dining areas occupying the public right-of-way.

12. Alcohol served in outdoor dining areas in the public right-of-way shall only be served in its original container or in nondisposable drinkware. A permittee serving alcohol within a sidewalk dining area shall place a notation on the menus provided to patrons that states in bold lettering of a size that is no smaller than 1/4 of an inch in height:
“People consuming alcohol on the public sidewalk or other public place outside of this outdoor dining area are subject to arrest. DHSMC Section 9.08.040.” Any outdoor dining area located in the public right-of-way that intends to serve alcohol shall be required to have a barrier satisfactory to the reviewing body cordoning off the entire outdoor dining area from the public sidewalk or other public areas.

13. All outdoor dining areas located in the public right-of-way shall remain free of litter at all times.

14. There shall be no modification of the texture of the surface of the public right-of-way to accommodate the outdoor dining facilities.

15. Outdoor dining areas located in the public right-of-way shall not interfere with visibility, vehicular or pedestrian mobility.

Item Number: 17.

33 16. Use, occupation, and obstruction of the public right-of-way for outdoor dining purposes is a revocable privilege. As such, a Development Permit may be suspended or revoked according to procedures of this chapter when, in the discretion of the Director of Community Development, the Police Chief, the Fire Chief, the City Engineer, the Public Works Director, or the City Manager, any such use, occupation or obstruction may interfere with public safety efforts or programs, street improvement activities, construction activities, public utility installations, cleaning efforts or other similar activities or with the health, welfare or safety of the citizens of the City.

F. In addition to any other noticing requirements provided in this Zoning Ordinance, the following noticing requirements shall apply to Development Permit applications for outdoor dining uses:

1. A notice of intended decision regarding an application for an outdoor dining permit shall be mailed at least 10 days prior to any decision rendered by the Director of Community Development to all property owners and residential occupants within 300 feet of the exterior boundaries of a project site.

G. All outdoor dining areas shall comply with the City’s noise ordinances, including, without limitation, Section 17.40.180 (Noise) of this code.

H. In approving a Development Permit for outdoor dining, the reviewing authority may impose such conditions as may be reasonably necessary to protect the public health, safety, and general welfare, and to ensure that the proposed outdoor dining use is established and conducted in a manner that is consistent with this section and the development standards for the underlying commercial zone.

The conditions imposed by the reviewing authority may include, but shall not be limited to:

1. The appropriate setback for the proposed outdoor dining use;

2. Pedestrian access and safety;

3. Barrier requirements surrounding the proposed outdoor dining use;

4. The time limit on the permit;

5. Restrictions governing the hours of operation of the proposed outdoor dining use may operate;

6. Design restrictions to ensure neighboring properties and uses are not negatively impacted by noise, light or other attributes of the outdoor dining use.

I. Revocation or suspension of a Development Permit for outdoor dining shall occur pursuant to the standards and procedures set forth in applicable sections of Chapter 4.36 of the Desert Hot Springs Municipal Code.

J. Any violation of subsection A, B, C, D, E, or G of this section shall constitute a public nuisance and an infraction, subject to all remedies available by law. (Ord. 695 10-15-19; prior code § 159.06.030(2)(G-1))
Item Number: 17.

34 17.12.260 Outdoor sales and display
The intent of this Section is to provide for the appropriate location and design of outdoor sales and display areas and to mitigate any adverse impacts that such uses may have on adjacent properties and rights-of-way.

A. Accessory Outdoor Sales and Display Permitted. Outdoor sales and display shall be permitted as an accessory use only in commercial and industrial land use districts, subject to the following requirements:

1. Outdoor sales and display shall only be accessory to a principal nonresidential use where such use conducts its activities within a completely enclosed building or group of buildings on the same property, shall be conducted by employees of the principal use, and shall be owned by the owner of the principal use and not a consignment operation or arrangement.

2. Outdoor sales and display shall only be permitted in an area not greater than 500 square feet or 10 percent of the gross floor area of the ground floor of the building, whichever is less.

3. No outdoor sales and display shall be allowed in areas set aside, required or designated for driving aisles, driveways, maneuvering areas, emergency access ways, off-street parking or unloading/loading.

4. No outdoor sales, storage or display areas shall be located in the clear sight triangle as defined by this Code, or located in any manner that would restrict or limit adequate sight distances for interior or exterior vehicular movements.

5. Outdoor sales and display items shall be located at least 50 feet away from any residentially zoned property and display shall be completely screened from view from any abutting residentially zoned property.

6. No material or display items shall be located within three (3) feet of any building entry.

7. Items may be located on sidewalks in the public right-of-way only if a continuous path with a minimum five (5) foot width is maintained along the property. Outdoor sales and display items shall be permitted on privately owned walks or other areas intended for pedestrian movement provided an unobstructed, continuous path with a minimum five (5)-foot width is maintained.

8. Items shall be located on a permanent durable surface.

9. All items shall be safely displayed against displacement by the wind.

10. Stacked items shall not exceed six (6) feet in height.

11. All items shall be brought indoors at the end of each business day. No overnight sales and display are permitted.

12. Vending machines and accessory outdoor sales and display may be permitted outside of the building and within a required setback when located against and parallel to the building facade, extending up to four (4) feet in depth from the building in a manner that does not impede pedestrian and ADA access. These items shall count toward the total outdoor sales and display area permitted Item Number: 17.

35 by this Section.

17.12.270 Mini-malls (strip malls).

Mini-malls (small scale, up to 30,000 square feet, multi-tenant shopping centers) are subject to a Development Permit and shall comply with the following standards.

A. All development and operational standards outlined in Section 17.12.080 (Convenience Stores), except for items in subsections D and Q, shall apply.

B. The development shall provide internal continuity, uniformity, and compatibility relating to architectural design, vehicular and pedestrian access, and on-site provisions for landscaping, loading, parking and signage.

C. To the extent feasible, the on-site vehicular circulation system shall provide continuity with adjacent and similar commercial developments.

D. Every parcel with a structure shall have a trash receptacle on the premises. The trash receptacle shall comply with adopted City standards and be of sufficient size to accommodate the trash generated. The receptacle(s) shall be screened from public view on at least three (3) sides by a solid wall six (6) feet in height and on the fourth side by a solid gate not less than five (5) feet in height. The gate shall be maintained in working order and shall remain closed except when in use. The wall and gate shall be architecturally compatible with the surrounding structures.

Recycling facilities and programs shall be incorporated into refuse storage/disposal areas for all new development projects and all new construction in existing projects. (Prior code § 159.06.030(2)(H))

17.12.280 Multifamily housing.

Refer to Section 17.08.140. (Prior code § 159.06.030(2)(I))

17.12.290 Household recycling facilities for reusable domestic containers.

A. Household recycling facilities are subject to permit review in all commercial and industrial land use districts according to the following schedule:

Type of Facility Districts Permitted Permit Required
Reverse vending machine(s)
and machine(s) vending
All commercial and all industrial Development Permit up to 5 reverse vending machines
Small collection C-G, C-N, C-D Development Permit
Item Number: 17.

36 Large collection C-N, C-D and all industrial Conditional Use Permit Light processing All industrial Conditional Use Permit
Heavy processing All industrial Conditional Use Permit
B. For the purposes of this section, the following definitions shall apply:
“Collection facility” means a center for the acceptance by donation, redemption, or purchase of recyclable materials from the public, which may include the following:

1. Reverse vending machine(s).

2. Small collection facilities which occupy an area of less than 500 square feet and may include:
a. A mobile unit;
b. Bulk reverse vending machines or a grouping of reverse vending machines occupying more than 50 square feet; and
c. Kiosk-type units which may include permanent structures.

3. Large collection facilities which may occupy an area of more than 500 square feet and may include permanent structures.
“Convenience zones” means an area within a 1/2 mile radius of a supermarket. “Mobile recycling unit” means an automobile, truck, trailer, or van, licensed by the Department of Motor Vehicles which is used for the collection of recyclable materials, including bins, boxes, or containers transported by trucks, vans or trailers, and used for the collection of recyclable materials.
“Processing facility” means a building or enclosed space used for the collection and processing of recyclable materials to prepare for either efficient shipment or to an end user’s specifications by such means as baling, briquetting, compacting, flattening, grinding, crushing, mechanical sorting, shredding, cleaning and remanufacturing. Processing facilities include the following:

1. Light processing facility occupies an area of under 45,000 square feet of collection, processing and storage area, and averages two (2) outbound truck shipments per day. Light processing facilities are limited to baling, briquetting, crushing, compacting, grinding, shredding and sorting of source separated recyclable materials sufficient to qualify as a certified processing facility. A light processing facility shall not shred, compact, or bale ferrous metals other than food and beverage containers.

2. A heavy processing facility is any processing facility other than a light processing facility. “Recycling facility” means a center for the collection and/or processing of recyclable materials.

A certified recycling facility or certified processor is certified by the California Department of Conservation as meeting the requirements of the California Beverage Container Recycling and Litter Reduction Act of 1986. A recycling facility does not include storage containers located on Item Number: 17.

37 a residential, commercial or manufacturing designated parcel used solely for the recycling of material generated on the parcel. “Recycling or recyclable material” means reusable domestic containers, including, but not limited to, metals, glass, plastic and paper which are intended for reuse, remanufacture, or reconstitution for the purpose of using in altered form. Recyclable material does not include refuse or hazardous materials. “Reverse vending machine” means an automated mechanical device which accepts at least one (1) or more types of empty beverage containers, including, but not limited to, aluminum cans, glass and plastic bottles, and issues a cash refund or a redeemable credit slip with a value not less than the container’s redemption value as determined by the State. A reverse vending machine may sort and process containers mechanically provided that the entire process is enclosed within the machine. In order to accept and temporarily store all container types in a proportion commensurate with their relative redemption rates, and to meet the requirements of certification as a recycling facility, multiple grouping of reverse vending machines may be necessary.

A bulk reverse vending machine is a reverse vending machine that is larger than 50 square feet, is designed to accept more than 1 container at a time and will pay by weight instead of by container.
“Supermarket” means a full-service, self-service retail store with gross annual sales of $2,000,000 or more, and which sells a line of grocery, canned goods, or non-food items and some perishable items.

C. The standards for recycling facilities are as follows:

1. Reverse vending machine(s) located within a commercial structure shall require a Development Permit, shall not require additional parking spaces for recycling customers, and may be permitted in all commercial and industrial land use districts subject to compliance with the following standards:
a. Shall be installed as an accessory use to a commercial use which is in full compliance with all applicable provisions of this Zoning Ordinance and the municipal code; b. Shall be located within 30 feet of the entrance to the commercial structure and shall not obstruct pedestrian or vehicular circulation;
c. Shall not occupy parking spaces required by the primary use; d. Shall occupy no more than 50 square feet of floor space per installation, including any protective enclosure, and shall be no more than eight (8) feet in height; e. Shall be constructed and maintained with durable waterproof and rustproof material; f. Shall be clearly marked to identify the type of material to be deposited, operating instructions, and the identity and phone number of the operator or responsible person to call if the machine is inoperative;
g. Shall have a sign area of a maximum of four (4) square feet per machine, exclusive of Item Number: 17.

38 operating instructions;
h. Shall be maintained in a clean, sanitary, and litter-free condition on a daily basis; i. Shall have operating hours consistent with the operating hours of the primary use; j. Shall be illuminated to insure comfortable and safe operation if operating hours are between dusk and dawn; and
k. Shall maintain an adequate on-site refuse container for disposal of nonhazardous waste.

2. Small collection facilities located within applicable commercial and industrial land use districts shall be subject to a Development Permit, and comply with the following standards:
a. Shall be installed as an accessory use to an existing commercial use which is in full compliance with all applicable provisions of this Zoning Ordinance and the municipal code;
b. Shall be no larger than 500 square feet and occupy no more than five (5) parking spaces not including space that will be periodically needed for removal of materials or exchange of containers;
c. Shall be set back at least 10 feet from any public right-of-way, and not obstruct pedestrian or vehicular circulation;
d. Shall accept only glass, metals, plastic containers, papers and reusable items; e. Shall use no power-driven processing equipment except for reverse vending machines; f. Shall use containers that are constructed and maintained with durable waterproof and rustproof material, covered when site is not attended, secured from unauthorized entry or removal of material, and shall be of a capacity sufficient to accommodate materials collected and collection schedule;
g. Shall store all recyclable material in the mobile unit vehicle and shall not leave materials outside of the unit when attendant is not present;
h. Shall be maintained in a clean and sanitary manner free of litter and any other undesirable materials, including mobile facilities;
i. Shall not exceed noise levels of 65 dBA as measured at the property line of adjacent residential land use districts;
j. Attended facilities shall not be located within 100 feet of any residential land use district;
k. Collection containers, site fencing, and signage shall be of such color and design so as to be compatible with and to harmonize with the surrounding uses and neighborhood; l. Containers shall be clearly marked to identify the type of material which may be deposited; the facility shall be clearly marked to identify the name and telephone number of the facility operator and the hours of operation and display a notice stating that no material shall be left outside the recycling enclosure of containers; m. Signs may be provided as follows:
i. Recycling facilities may have identification signs with a maximum of 15% per side of a structure or 16 square feet, whichever is greater. In the case of a wheeled facility, the side will be measured from the ground to the top of the container, ii. Signs shall be consistent with the character of their location, and Item Number: 17.

39 iii. Directional signs, consistent with Chapter 17.44 (Sign Standards), bearing no advertising message may be installed with the approval of the Director if found necessary to facilitate traffic circulation or if the facility is not visible from the public right-of-way;
n. Shall not impair the landscaping required by Chapter 17.56 (Landscaping Standards) for any concurrent use;
o. No additional parking space shall be required for customers of a small collection facility located at the established parking lot of the primary use. One space will be provided for the attendant, if needed;
p. Mobile recycling units shall have an area clearly marked to prohibit other vehicular parking during hours when the mobile unit is scheduled to be present; q. Occupation of parking spaces by the facility and by the attendant shall not reduce available parking spaces below the minimum number required for the primary use unless all of the following conditions exist:
i. A parking study shows that existing parking capacity is not already fully utilized during the time the recycling facility will be on the site, and ii. The permit shall be reviewed at the end of 18 months; r. Shall not be 24-hour operations;
s. May be subject to landscaping and/or screening as determined by the review authority; and
t. Shall maintain adequate refuse containers for the disposal of nonhazardous waste.

3. A large collection facility which is larger than 500 square feet, or on a separate parcel not accessory to a “primary” use, which has a permanent structure is permitted in the commercial, and industrial land use districts, subject to a Conditional Use Permit, and the following standards:
a. The facility does not abut a parcel designated or planned for residential use; b. The facility shall be screened from the public right-of-way, within an enclosed structure; c. Structure setbacks and landscape requirements shall be those provided for the land use district in which the facility is located;
d. All exterior storage of material shall be in sturdy containers which are covered, secured, and maintained in good condition. Outdoor storage shall be screened by a six (6)-foot, solid decorative masonry wall. No storage, excluding truck trailers shall be visible above the height of the wall. No outdoor storage shall be permitted in the land use districts, which do not permit outdoor storage;
e. The site shall be maintained clean, sanitary and free of litter and any other undesirable materials, and will be cleaned of loose debris on a daily basis; f. Space shall be provided on-site for six (6) vehicles to circulate and to deposit recyclable materials;
g. Four parking spaces for employees plus one (1) parking space for each commercial vehicle operated by the recycling facility shall be provided on-site; h. Noise levels shall not exceed 65 dBA as measured at the property line of adjacent residential land use districts;
i. If the facility is located within 500 feet of property designated, or planned for residential use, it shall not be in operation between 7:00 p.m. and 7:00 a.m.; j. Any containers provided for after hours donation of recyclable materials shall be at least 50 feet from any residential land use district permanently located, of sturdy rustproof construction, and shall have sufficient capacity to accommodate materials Item Number: 17.

40 collected and be secure from unauthorized entry or removal of materials; k. Donation areas shall be kept free of litter and any other undesirable material and the containers will be clearly marked to identify the type of material that may be deposited.

The facility shall display a notice stating that no material shall be left outside the recycling containers;
l. The facility shall be clearly marked with the name and phone number of the facility operator and the hours of operation; identification and informational signs shall meet the standards of the land use district; and directional signs bearing no advertising message may be installed with the approval of the Director, if necessary to facilitate traffic circulation; and
m. Adequate refuse containers for the disposal of non-hazardous waste shall be permanently maintained on-site.

4. Light processing facilities and large processors shall be permitted in all industrial land use districts subject to a Conditional Use Permit, and shall comply with the following standards:
a. The facility shall not abut a residentially designated parcel; b. In the I-L land use district, processors shall operate within a completely enclosed structure;
c. Power-driven processing shall be permitted provided all noise level requirements are met. Light processing facilities are limited to baling, briquetting, crushing, compacting, grinding, shredding, and sorting of source-separated recyclable materials and repairing of reusable materials;
d. A light processing facility shall be no larger than 45,000 square feet and shall have no more than an average of two (2) outbound truck shipments of material per day and shall not shred, compact or bale ferrous metals other than food and beverage containers; e. Structure setbacks and landscaping requirements shall be those provided for the land use district in which the facility is located;
f. All exterior storage of material shall be in sturdy containers or enclosures which are covered, secured and maintained in good condition. Storage containers for flammable materials shall be constructed of nonflammable material. No storage excluding truck trailers shall be visible above the height of the required walls; g. The site shall be maintained in a clean manner and free of litter and any other undesirable material(s). Loose debris shall be collected on a daily basis and the site shall be secured from unauthorized entry and removal of materials when attendants are not present;
h. Space shall be provided on-site for the anticipated peak load of customers to circulate, park and deposit recyclable materials. If the facility is open to the public, a parking area shall be provided for a minimum of 10 customers at any one (1) time; i. One employee space shall be provided for each commercial vehicle operated by the processing center;
j. Noise levels shall not exceed 65 dBA as measured at the property line of residential land use districts;
k. If the facility is located within 500 feet of property designated or planned for residential use, it shall not be in operation between 7:00 p.m. and 7:00 a.m. The facility shall be administered by on-site personnel during the hours the facility is open; l. Any containers provided for after-hours donation of recyclable materials shall be at least 100 feet from any residential land use district parcel, and shall be sturdy, rustproof construction, with sufficient capacity to accommodate materials collected, and shall be secure from unauthorized entry or removal of materials; m. Donation areas shall be kept free of litter and any other undesirable material. The Item Number: 17.

41 containers shall be clearly marked to identify the type of material that may be deposited.

The facility shall display a notice stating that no material shall be left outside the recycling containers;
n. Signs shall be installed pursuant to Chapter 17.44 (Sign Standards). Additionally, the facility shall be clearly marked with the name and phone number of the facility operator and the hours of operation;
o. No dust, fumes, smoke, vibration or odor above ambient level shall be detectable from adjacent residentially designated parcels; and
p. The facility shall maintain adequate on-site refuse containers for the disposal of nonhazardous waste. (Prior code § 159.06.030(2)(J))

17.12.300 Senior citizen/congregate care housing standards.

Refer to Section 17.08.180. (Prior code § 159.06.030(2)(K))

17.12.310 Service station (gasoline) standards.

Service stations are subject to a Development Permit and shall comply with the following standards:

A. New service stations shall be permitted only at the intersections of major and secondary arterials, their intersections with freeway off-ramps, and as tenants of multi-tenant shopping centers, provided that they are integrated into the design of the shopping centers. A maximum of 2 service stations shall be permitted at each intersection. The use shall not adjoin a residential land use district.

B. The minimum parcel size shall be 15,000 square feet, with a minimum frontage of 100 feet on each street.

C. All activities and operations shall be conducted entirely within an enclosed structure, except as follows:

1. The dispensing of petroleum products, water and air from pump islands;

2. The provision of emergency service of a minor nature;

3. The sale of items via vending machines which shall be placed next to the main structure in a designated area not to exceed 32 square feet, and which must be screened from public view.

4. Outdoor sale and display as provided for in this chapter._ D. Pump islands shall be located a minimum of 20 feet from a street property line, however, a canopy or roof structure over a pump island may encroach up to 10 feet within this distance. Additionally, the cashier location shall provide direct visual access to the pump islands and the vehicles parked adjacent to the islands.

E. The maximum number of points of ingress/egress to any one (1) street shall be two (2).

Item Number: 17.

42 F. There shall be a minimum distance of 30 feet between curb cuts along a street frontage.

G. No driveway may be located closer than 35 feet to the curb return.

H. The width of a driveway may not exceed 36 feet at the sidewalk.

I. On-site parking shall be provided at one (1) space for each pump island, plus one (1) space for each service bay.

J. Outside storage of motor vehicles is prohibited.

K. No vehicles may be parked on sidewalks, parkways, driveways or alleys.

L. No vehicle may be parked on the premises for the purpose of offering it for sale.

M. Landscaping shall comprise a minimum of 15% of the service station-site area, exclusive of required setbacks, and shall be provided and permanently maintained according to the following regulations, as well as those contained in Chapter 17.56 (Landscaping Standards).

1. A minimum five ( 5)-foot-wide (inside dimension), six (6)-inch-high planter area shall be provided along interior property lines, except for openings to facilitate vehicular circulation to adjacent properties. Where adjacent to a periphery wall, trees planted not more than 16 feet apart shall be included in the planter areas.

2. A planter area of not less than 200 square feet shall be provided at the corner of two (2) intersecting streets. Landscaping shall not exceed a height of 30 inches.

3. A minimum of 50 square feet of planter area shall be located along those portions of the main structure fronting on a public street.

4. Additional landscaping may be required to screen the service station from adjacent properties.

N. All on-site signage shall comply with the provisions of Chapter 17.44 (Sign Standards).

O. Openings of service bays shall not face the public right-of-way and shall be designed to minimize the visual intrusion onto adjoining properties.

P. No used or discarded automotive parts or equipment, or disabled, junked or wrecked vehicles may be located in any open area outside the main structure.

Q. Every parcel with a structure shall have a trash receptacle on the premises. The trash receptacle shall comply with adopted City standards and be of sufficient size to accommodate the trash generated. The receptacle(s) shall be screened from public view on at least three (3) sides by a Item Number: 17.

43 solid wall six (6) feet in height and on the fourth side by a solid gate not less than five (5) feet in height. The gate shall be maintained in working order and shall remain closed except when in use. The wall and gate shall be architecturally compatible with the surrounding structures.

Recycling facilities and programs shall be incorporated into refuse storage/disposal areas for all new development projects and all new construction in existing projects.

R. All light sources, including canopy, perimeter, and flood shall be energy efficient, stationary and shielded or recessed within the roof canopy so that the service station shall be indirectly visible, and light is deflected away from adjacent properties and public rights-of-way. Lighting shall not be of such a high intensity as to cause a traffic hazard or adversely affect adjoining properties.

No luminary shall be higher than 15 feet above finished grade.

S. Where an existing service station adjoins property in a residential land use district, a six (6)-foothigh decorative masonry wall shall be constructed at the time the station requires a permit for the on-site improvement/modification. Materials, textures, colors and design of the wall shall be compatible with on- site development and adjoining properties. When the wall reaches the established front yard setback line of a residentially designated lot abutting or directly across an alley from the service station, it shall decrease to a height of 30 inches.

T. Restroom entrances viewable from adjacent properties or public rights-of-way shall be concealed from view by planters or decorative screening.

U. Noise from bells or loudspeakers shall not be audible beyond the property line at any time.

V. All parking, loading, circulation aisles, and pump island bay areas shall be constructed with (PCC) concrete. (Prior code § 159.06.030(2)(L))

17.12.320 Service station conversions.

A structure originally constructed as a service station and which is proposed for conversion to another allowable use shall require upgrading and remodeling for such items as, but not limited to, removal of all gasoline appurtenances, removal of pump islands, removal of gas tanks, additional street improvements or modification of existing improvements to conform to access regulations, exterior remodeling, and any additional standards as required by this Zoning Ordinance. (Prior code § 159.06.030(2)(M))

17.12.330 Single-family housing, existing.

Additions, alterations and expansion to single-family units which legally existed in the commercial and industrial districts prior to October 2000, shall comply with the R-L District Standards. (Prior code Item Number: 17.

44 §159.06.030(2)(N))

17.12.340 Single-family/office conversions.

A structure originally constructed as a family residence which is proposed for conversion to a low intensity office use shall require the following:

A. The building elevations and the landscaping between the front property line and the building front shall be maintained in their residential character.

B. Parking shall be provided to the rear of the structure. Access may be permitted from the original driveway if there is a minimum width of 10 feet.

C. Any trees with a trunk diameter greater than six (6) inches shall be preserved. If it becomes necessary to remove a tree with a trunk diameter greater than six (6) inches, each tree removed shall be replaced on a 2:1 ratio with 36-inch box trees.

D. If the rear property line abuts an alley, access to parking shall be provided from the alley whenever possible.

E. Where two (2) or more single-family residences adjacent to one another are converted to office uses, reciprocal access and parking may be required.

F. Parking spaces shall be provided as determined at project review. To the greatest extent possible professional office parking requirements shall be met.

G. Unattended tandem parking will be permitted if it is determined such parking would be appropriate for the use.

H. Parking lot landscaping may be reduced to 5% of the parking area (plus setbacks) if it is deemed necessary in order to provide adequate parking spaces.

I. Loading spaces are not required.

J. A monument sign shall be permitted in accordance with Chapter 17.44 Sign Regulations.

K. The structure shall be made to conform to the provisions of the California Building Code for commercial structures.

L. Trash receptacles should be placed to the rear of the structure and screened from view. Location Item Number: 17.

45 and size of receptacles will be determined at project review. Recycling facilities and programs shall be incorporated into refuse storage/disposal areas for all new development projects and all new construction in existing projects. (Prior code § 159.06.030(2)(O))

17.12.350 Tattoo and body piercing establishments.

A. Applicability. The standards and criteria established in this section apply to any business enterprise in the City of Desert Hot Springs that engages in tattooing and/or body piercing.

B. Definitions.

1. The following words and phrases shall have the same meanings as set forth in California Health and Safety Code Section 119300 et seq., as the same may be amended from time to time, and whenever used in this section shall be construed as defined in this section:
“Body piercing” means the creation of an opening in the body of a human being for the purpose of inserting jewelry or other decoration. This includes, but is not limited to, piercing of an ear, lip, tongue, nose, or eyebrow. “Body piercing” does not include piercing an ear with a disposable, single-use stud or solid needle that is applied using a mechanical device to force the needle or stud through the ear.
“Permanent cosmetics” means the application of pigments to or under the skin of a human being for the purpose of permanently changing the color or appearance of the skin. This includes, but is not limited to, permanent eyeliner, eye shadow, or lip color. “Tattooing” means to insert pigment under the surface of the skin of a human being, by pricking with a needle or otherwise, to produce an indelible mark or figure visible through the skin.

2. Other Defined Terms. The following terms and phrases, whenever used in this section shall be construed as defined in this section:
“Body piercing establishment” or “parlor” means any establishment where body piercing is conducted.
“Branding” means any method, including, but not limited to, the use of heat, cold, chemical compound, or cauterizing to apply a scar to the body for the purpose of creating a permanent mark or design on the skin.
“Extreme body modification” means the practice of modifying the physical body using the techniques of branding and scarification.
“Scarification” means any method used to alter skin texture by cutting the skin and controlling the body’s healing process in order to produce wounds which result in permanently raised welts Item Number: 17.

46 or bumps, or any other technique that changes the contour, or level plane of the skin and/or results in a scar on the skin.
“Tattoo establishment” or “parlor” means any establishment where tattooing is conducted.

C. Extreme Body Modification Services Prohibited. Business enterprises which engage in the performance of extreme body modification services, as defined in this section, are prohibited in all zones throughout the City of Desert Hot Springs. No permit or any other applicable license or entitlement for use, including but not limited to the issuance of a business license, shall be approved or issued for the establishment, maintenance or operation of any business enterprise that engages in the performance of extreme body modification services within the City limits of the City of Desert Hot Springs. The establishment, maintenance or operation of any business enterprise which conducts extreme body modification services within the City limits is declared to be a public nuisance and may be abated by the City either pursuant to Chapter 4.16 of the Desert Hot Springs Municipal Code or any available legal remedies, including but not limited to, Title 4 (Code Enforcement) of the Desert Hot Springs Municipal Code and/or civil injunctions.

D. Business License Required. A business license, pursuant to the provisions in Chapter 5.04 of the City’s Municipal Code, shall be required prior to operating a tattoo establishment and/or body piercing establishment. A business license shall not be authorized unless sufficient evidence is provided that proprietors of tattoo and/or body piercing establishments have registered with Riverside County Health Department pursuant to Section 119303 of the California Health and Safety Code.

E. Location Criteria. A proposed tattoo establishment and/or body piercing establishment shall be located in compliance with the following requirements:

1. The use shall not be located within a 300-foot radius of any other tattoo establishment and/or body piercing establishment.

2. For the purposes of separation requirements, the distance measured shall be from the main entrance of the tattoo establishment and/or body piercing establishment to the main entrance of any other tattoo establishment and/or body piercing establishment.

F. Enforcement. The establishment, maintenance or operation of a tattoo establishment and/or body piercing establishment in violation of this section, is declared to be a public nuisance and may be abated by the City either pursuant to Chapter 4.16 of the Desert Hot Springs Municipal Code or any available legal remedies, including, but not limited to, Title 4 (Code Enforcement) of the Desert Hot Springs Municipal Code and/or civil injunctions. In addition, in the event the tattoo establishment or body piercing establishment operates or is maintained in violation of and/or in noncompliance with the City’s regulations, as set forth in this section, Health and Safety Code Section 119300 et seq., Chapter 6.1 of the California Health and Safety Code, also Item Number: 17.

47 known as the Medical Waste Management Act (MWMA) of 1991, or the conditions of approval, the City may commence conditional use permit revocation proceedings, as provided in Chapter

17.76 of the City’s Municipal Code. (Ord. 524 § 3, 2010)

17.12.360 Mobile food vending vehicle parks.

For purposes of this section, “mobile food vending vehicle park” means a commercial private property, allowing vendors to vend on its premises on an ongoing basis with approval of an Administrative Use Permit.

A. Mobile food vending vehicle parks may be established within the City and shall comply with the following additional requirements:

1. All mobile food vendors shall obtain a mobile food vending vehicle permit and abide by all regulations in Desert Hot Springs Municipal Code Chapter 5.52.

2. All mobile food vending vehicles will be parked on a paved surface.

3. Maintain permanent restroom facilities with ADA access.

4. Provide at least three (3) paved parking spaces per mobile food vending vehicle.

5. Maintain sufficient trash receptacles and trash removal services.

6. Tables, chairs, carts, shade structures, or other vending-related installations may be erected.

7. Sufficient lighting shall be required if the vendor remains open for business after dusk.

8. Shall comply with all requirements of Title 17 of the Desert Hot Springs Municipal Code. (Ord. 690 9-3-19)
Item Number: 17.

SR-23-259
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: November 7, 2023
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of An Ordinance Amending Vacation Rental Regulations
RECOMMENDATION:

Approve Second Reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs amending Chapter 5.44 of the Desert Hot Springs Municipal Code regarding Vacation Rentals."
BACKGROUND:

The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on October 3, 2023 with the following amendments:
 Add new Subsection 1 to Section 5.44.05 to read: "A hosting platform shall not accept or publish a listing that does not include a valid current city-issued permit registration number within the listing, show in a format designated by the City,"  Restrict new applications for an STVR license from being within a 500 foot radius from another vacation rental; and
 Corrections to typographical errors.

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

FISCAL IMPACT:

None.

ATTACHMENTS:
1) Staff Report from October 17, 2023
2) Ordinance Amending Short Term Rentals
Item Number: 18.

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: 18.

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: 18.

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: 18.

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: 18.

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: 18.

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: 18.

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.

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.

Item Number: 18.

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 Item Number: 18.

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 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.

Item Number: 18.

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.

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.

5.44.045 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.

1. A Hosting Platform shall not accept or publish a listing that does not include a valid current city-issued permit registration number within the listing, show in a format designated by the City.

Item Number: 18.

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:

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 Item Number: 18.

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 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.

I. 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 a five hundred (500) foot radius from another vacation rental, measured from property line to property line. 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.

Item Number: 18.

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 a five hundred (500) foot radius from another vacation rental, measured from property line to property line.

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.
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.

Item Number: 18.

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 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 Item Number: 18.