Desert Hot Springs City Council
April 16, 2024

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City of Desert Hot Springs

AMENDED AGENDA

REGULAR MEETING OF THE CITY COUNCIL
and the City Council Serving as the Successor Agency to the Former Redevelopment Agency Board
Tuesday, April 16, 2024
5:30 PM - Presentations
6:00 PM - Regular Session
Council Chambers/City Hall
11-999 Palm Drive
Desert Hot Springs, California, 92240

Page
PRESENTATIONS - 5:30 P.M.

Desert Valley Disposal Update
Visit Greater Palm Springs Update
REGULAR SESSION - 6:00 P.M.

CALL TO ORDER

ROLL CALL

INVOCATION

PLEDGE OF ALLEGIANCE

APPROVAL OF AGENDA
At this time the City Council may amend the order of the agenda, approve the Consent Calendar, remove items from the Consent Calendar for separate discussion and action, and add Urgency Items.

Urgency Items ("Added Starters"): The Brown Act, which governs public meetings, permits the City Council to take action on any item that does not appear on the agenda only if 2/3 of the City Council (if all are present) or all members of the City Council (if fewer than all members are present) determine there is a need to take immediate action on the item, and the need to take immediate action came to the City Council's attention after the agenda was posted.

PUBLIC COMMENTS
At this time, pursuant to the Brown Act, any person may comment on matters of general interest within the subject matter jurisdiction of the City Council, NOT listed on the agenda. Under the Brown Act, the City Council should not take action on or discuss matters raised during Public Comment portion of the agenda that are not listed on the agenda.

Comments are limited to the first ten (10) speakers at three (3) minutes per speaker. Speakers may not yield their time to others without consent of the Mayor. All comments are to be directed to the City Council and shall be devoid of any personal attacks. Members of the public are expected to maintain a professional, courteous decorum during public comments.

Please complete and submit a "speaker card" to the City Clerk. You will be asked to STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

CITY MANAGER REPORT

MAYOR AND COUNCIL MEMBER REPORTS
PUBLIC HEARINGS:

1. An Ordinance to Adopt a Cannabis Consumption Space Use Type Christina Newsom, Compliance Director
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 of the City Council of the City of Desert Hot Springs, Amending Title 17 and Title 5 of the Desert Hot Springs Municipal Code Concerning Cannabis Consumption Space Facilities and the Regulations, Zoning and Requirements Thereof”
Staff Report - SR-24-094 - Pdf
7 - 31

2. An Ordinance to Adopt a Cannabis Nursery Use Type
Christina Newsom, Compliance Director
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
33 - 47

9) Introduce for First Reading and read by title only: "An Ordinance of the City Council of the City of Desert Hot Springs, California Adding Section 5.50.130 “Nursery Operating Requirements” and Amending Section 5.50.020 “Definitions” of Chapter 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” and Adding Section

17.180.095 “Nursery” and Amending Section 17.180.030 “Definitions” of Chapter 17.180 “Marijuana Facilities Operation and Location” of Title 17 “Zoning”, and Amending Section 3.34.005 “Imposition of Tax” of Chapter 3.34 “Marijuana Tax” of Title 3 “Revenue and Finance”, and Amending Section 3.37.005 “Imposition of Tax” of Chapter 3.37 “Medical Marijuana Tax” of Title 3 “Revenue and Finance” and Amending Section 17.16.01 “Permitted Uses-Industrial Districts” of Chapter 17.16 “Industrial Districts” of Title 17 “Zoning” of the Desert Hot Springs Municipal Code of the Desert Hot Springs Municipal Code."
Staff Report - SR-24-093 - Pdf

3. An Ordinance to Amend Cannabis Storefront Retailer's Ancillary Uses
Christina Newsom, Compliance Director
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 of the City Council of the City of Desert Hot Springs, amending Title 17 Regarding Storefront Retail Zoning of the Desert Hot Springs Municipal Code."
Staff Report - SR-24-095 - Pdf
49 - 53
ADMINISTRATIVE CALENDAR:

4. WITHDRAWN Discussion Item: Policy Direction to Address Unhoused Sanitation Issues
Sponsored by: Councilmember Betts; and Mayor Matas
Recommendation:

Consider placement of an item on a future agenda to consider policy direction for addressing unhoused sanitation issues.

Staff Report - SR-24-097 - Pdf
55 - 59

5. Lighting and Landscape Maintenance Districts and Drainage Assessment District Initiate Proceedings for the FY 2024-25 Levy and Collection of Assessment
61 - 76

Geoffrey Buchheim, Administrative Services Director
Recommendation:
1) Adopt a Resolution of the City Council initiating proceedings for the levy and collection of assessments for the Citywide Landscape and Lighting Maintenance District No. 1, Zone A and Zone B for Fiscal Year 2024-25;
2) Adopt a Resolution of the City Council initiating proceedings for the levy and collection of assessments for the Landscape and Lighting Maintenance District No. 2 for Fiscal Year 2024-25; and 3) Adopt a Resolution of the City Council initiating proceedings for the levy and collection of assessments for the Drainage Assessment District No. 1 for Fiscal Year 2024-25.

Staff Report - SR-24-091 - Pdf
CONSENT CALENDAR:

Matters on the "Consent Calendar" are considered routine and may be acted upon by one motion under "Approval of the Agenda." Individual items may also be removed by the City Council for separate discussion under "Approval of the Agenda." The title is deemed to be read and further reading waived on any ordinance listed on the Consent Calendar for second reading and adoption.

6. City Council Regular Meeting Minutes: April 2, 2024
Jerryl Soriano, City Clerk
Recommendation: Approve the Minutes as presented; or as corrected.

Staff Report - SR-24-098 - Pdf
77 - 84

7. Visit Greater Palm Springs (VGPS) Amendment to Section 12 of the Amended and Restated Joint Powers Agreement Regarding
Contribution Schedule for Joint Powers Authority Members Erick Becerril, Housing & Community Program Manager
Recommendation:

Approve an amendment to Section 12 of the Amended and Restated Joint Powers Agreement With Visit Greater Palm Springs regarding contribution schedule for Joint Powers Authority members.

Staff Report - SR-24-082 - Pdf
85 - 164

8. Professional Services Agreement for Audit Services
Geoffrey Buchheim, Administrative Services Director
Recommendation:

Authorize the City Manager to execute a Professional Services Agreement with The Pun Group for financial auditing and reporting services in an amount not to exceed $405,579 over five years; with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney.

Staff Report - SR-24-092 - Pdf
165 - 231

9. Award Professional Services Agreement for Engineering Design of HSIP Cycle 11 - Citywide Pedestrian Safety Project, City Project No. 3027
Nicholas Haecker, Public Works Director
Recommendation:

Authorize the City Manager to execute the Professional Services Agreement for Engineering Design for HSIP Cycle 11 – Citywide Pedestrian Safety Project, City Project No. 3027 with Minagar & Associates, Inc. in the amount not to exceed $62,373.00 with a contingency of $6,237.30 (10%) for any additional work as approved by the City, which brings a total budget of $68,610.30.

Staff Report - SR-24-096 - Pdf
233 - 297

10. Second Reading and Adoption of An Ordinance Amending Chapter of Title 17, Zoning Ordinance: “Chapter 17.14 (Mixed-Use Districts)" Jerryl Soriano, City Clerk
Recommendation:

Approve Second Reading, read by title only and adopt: "An Ordinance amending Chapter 17.14 (Mixed-Use Districts") of Title 17, Zoning Code.

Staff Report - SR-24-090 - Pdf
299 - 402

11. Second Reading and Adoption of An Ordinance Amending Title 3 "Revenue and Finance" of the Desert Hot Springs Municipal Code Concerning Cannabis Facilities
Jerryl Soriano, City Clerk
Recommendation:

Approve Second Reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Title 3 "Revenue and Finance" of the Desert Hot Springs Municipal Code Concerning Cannabis Facilities."
Staff Report - SR-24-088 - Pdf
403 - 415

12. Payment Register and City Council Expenditures for the Period of March 1, 2024 to March 31, 2024
Geoffrey Buchheim, Administrative Services Director
Recommendation: Receive and file.

Staff Report - SR-24-087 - Pdf
417 - 585

PUBLIC COMMENTS
Opportunity is given to those members of the public who have NOT addressed the City Council on an item which is NOT on the agenda. Comments are limited to three (3) minutes per speaker. PLEASE STATE YOUR NAME AND CITY OF RESIDENCE FOR THE RECORD.

ADJOURN

UPCOMING MEETING DATES
*Please refer to the City website calendar at www.cityofdhs.org for meeting locations and the most up to date information.

May 7 City Council Regular Meeting 6:00 p.m.

May 9 Public Safety Commission 6:00 p.m.

May 14 Planning Commission 6:00 p.m.

May 21 City Council Regular Meeting 6:00 p.m.
________________________________________________________________________________________

NOTICES
In accordance with California Government Code Section 54957.5, any writing or document that is a public record, relates to an open session agenda item, and is distributed less than 72 hours prior to a regular meeting will be made available for public inspection in the Office of the City Clerk at City Hall during normal business hours at 11999 Palm Drive, Desert Hot Springs, CA 92240.

If, however, the document or writing is not distributed until the regular meeting to which it relates, then the document or writing will be made available to the public at the location of the meeting, as listed on this agenda at 11999 Palm Drive, Desert Hot Springs, CA 92240.

Americans with Disabilities Act
In an effort to comply with the requirements of Title 2 of the Americans with Disabilities Act of 1990, the City of Desert Hot Springs requires that any person in need of any type of special equipment, assistance, or accommodation(s) in order to communicate at a City public meeting, must inform the City Clerk a minimum of 72 hours prior to the scheduled meeting to enable the City to make reasonable arrangements.

SR-24-094
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Adopt a Cannabis Consumption Space Use Type 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 of the City Council of the City of Desert Hot Springs, Amending Title 17 and Title 5 of the Desert Hot Springs Municipal Code Concerning Cannabis Consumption Space Facilities and the Regulations, Zoning and Requirements Thereof”
BACKGROUND:

Chapter 17.180 of the Desert Hot Springs Municipal Code (“DHSMC”) provides the zoning framework for the operation of Cannabis Facilities. Sections 17.180.048 and 17.180.040 regulate the zoning and conditions related to Cannabis Consumption Space Facilities.

The City currently utilizes the Cannabis Compliance Team and Code Compliance Division (collectively, the “Cannabis Team”) to enforce Chapter 17.180 and to inspect all cannabis facilities.

Based on their experience and expertise, the Cannabis Compliance Division and Code Compliance Division recommend an amendment of Chapter 17.180 to address deficiencies in the zoning and approval of cannabis consumption spaces.

DISCUSSION:

The proposed ordinance seeks to amend Chapter 17.180 to update zoning and authorization for specific Cannabis Facilities use types. Cannabis Facility owners and operators have approached the City seeking a review of the approval of cannabis consumption spaces as a use type by repealing and replacing the cannabis entertainment facility use type, as well as amending the cannabis consumption space operating conditions to allow consumption spaces. In particular the following are the logistical issues facing the Cannabis Entertainment Facilities:

Item Number: 1.

SR-24-094

1. Cannabis lounges currently require some form of entertainment as the main attraction to the facility, or they are required to be a part of a cannabis hotel.

2. There has been no demonstrated interest in cannabis entertainment or hotel facilities.

3. Cannabis consumption spaces should be viewed as ancillary facilities within storefront retail facilities or adjacent to other cannabis use types.

4. For consistency within the DHSMC, operating requirements will be located within Chapter

5.50. These realities reflect a need for cannabis consumption space to be viewed as optional facilities within storefront retail facilities or adjacent to other cannabis use type. Although an entertainment component would no longer be required, different types of entertainment would be allowed. For cannabis consumption spaces that are not a component of an existing storefront cannabis retailer, a storefront cannabis facility would be required. As this would attract new cannabis retailers to the city, existing storefront facilities would be allowed to add a cannabis consumption space, if existing space allowed for it. In order to balance these realities with the needs of the public, the proposed Ordinance would amend current regulations within 17.180 and 5.50 to allow cannabis lounges as a facility within a storefront retail facility.

FISCAL IMPACT:

No fiscal impact.

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) Consumption Space Ordinance
Item Number: 1.

ORDINANCE NO. ___

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT HOT SPRINGS, AMENDING TITLE 17 AND TITLE 5 OF THE DESERT HOT

SPRINGS MUNICIPAL CODE CONCERNING CANNABIS CONSUMPTION

SPACE FACILITIES AND THE REGULATIONS, ZONING AND

REQUIREMENTS THEREOF
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 5.50 “Marijuana Facilities Regulatory Permit,” of the Desert Hot Springs Municipal Code (“DHSMC”) establishes standards for granting permits to Marijuana Facilities within the City; and
WHEREAS, Chapter 17.180, of the DHSMC establishes zoning regulations and development standards for Marijuana Facilities, as that term is defined, within the City; and
WHEREAS, currently, section 17.180.048 of the DHSMC establishes development standards and other regulations for Marijuana Entertainment Facilities; and
WHEREAS, the City Council desires to amend Title 17 of the DHSMC with development standards for Cannabis Consumption Spaces; and WHEREAS, the City Council desires to amend Title 5 of the DHSMC with regulations and requirements for Cannabis Consumption Spaces; and WHEREAS, the City Council finds that Cannabis Consumption Space Facilities uses as beneficial to the City as the City will realize tax benefits, and it will also benefit the businesses to allow for such augmentation to their business models; and WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment; and WHEREAS, the Planning Commission held a duly noticed hearing on this Ordinance and recommended that the City Council adopt same; and Item Number: 1.

WHEREAS, this Ordinance is compatible with the general objectives of the General Plan and any applicable specific plan; and
WHEREAS, this Ordinance protects 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.

The Recitals are hereby incorporated by this reference.

Section 2. AMENDING SECTION 17.180.030 “DEFINITIONS” OF CHAPTER 17.180 “MARIJUANA FACILITIES OPERATION
AND LOCATION” OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.030 (“Definitions”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:

17.180.030 Definitions.

Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them as follows.

When used in this chapter, the following words shall have the meanings ascribed to them in this section. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources:

A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time;
B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83);
C. The MAUCRSA (Medicinal and Adult Use Cannabis Regulation and Safety Act), enacted on June 27, 2017, as may be amended from time to time. “Cannabis” or “marijuana” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define Item Number: 1.

“marijuana”). The terms “cannabis” and “marijuana” shall be used interchangeably in this chapter.
“Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter.

A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis consumption space facility” means a licensed cannabis retail premises where cannabis and cannabis products may be purchased (for on-site consumption) and consumed (smoked or ingested) by persons 21 years of age and over within the confines of the facility.
“Consuming” or “Consumption” means smoking, eating, drinking, chewing, applying topically, or otherwise ingesting.
“Consumption area” means designated areas within a cannabis consumption space facility where patrons are allowed to consume cannabis and cannabis products.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” means marijuana facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq. “Delivery” means the commercial transfer of cannabis or cannabis products from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of marijuana or marijuana products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis products either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which 1 legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.

Item Number: 1.

“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis products either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. “Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis products either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
“Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. “Marijuana cultivation facility” means a facility wherein marijuana is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Marijuana distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of marijuana and/or marijuana products between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Marijuana entertainment facility” means any facility or location, the primary function of which is an entertainment use, and which must contain an entertainment use (such as a movie, theater, bowling alley, concert venue) or as that use may be defined in DHMC Section 17.04.050, and at least 1 other of the following uses: (1) marijuana storefront retail facility, as defined; and/or (2) onsite marijuana consumption area. “Marijuana facility” means collectively any marijuana storefront retail facility, nonstorefront retail facility, marijuana cultivation facility, marijuana distribution facility, marijuana testing facility, marijuana hotel facility, or marijuana manufacturing facility, as those terms are defined in this chapter.
“Marijuana hotel facility” means a hotel, motel, or other transient lodging facility as defined by Chapter 3.20 of this code that possesses a permit issued pursuant to this chapter.
“Marijuana manufacturing facility” means a facility where the production of marijuana concentrate, and/or the preparation, propagation, or compounding of manufactured marijuana, either directly or indirectly or by extraction methods or independently by Item Number: 1.

means of chemical synthesis, or the packaging or repackaging of marijuana or marijuana products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid marijuana manufacturing facility license, a Marijuana Regulatory Permit, and a Conditional Use Permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to marijuana manufacturers. “Marijuana testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations.

Notwithstanding, a “marijuana testing facility” shall also mean any of the following: (1) a testing facility that is contracted with the State of California or any lawful department thereof, to provide testing or research and development on behalf of or to benefit the State; (2) a testing facility that is contracted with the United States of America, or any lawful department thereof to provide testing or research and development on behalf of or to benefit the United States.
“Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Non-storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., in the California Code of Regulations, as may be amended. Currently, this is a delivery only retail facility which sells marijuana to a customer solely and exclusively by delivery.
“Off-site sales” means the sale of marijuana for consumption off the premises. “On-site sales” means the sale of marijuana for consumption on the premises. “Patron” means a registered guest of a hotel or motel or other transient lodging facility as defined by Chapter 3.20 of this code. Patrons shall not include any visitors or customers who do not register as guests.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., in the California Code of Regulations, as may be amended. Currently, this is a retail facility which sells and/or delivers marijuana or marijuana products to Item Number: 1.

customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.

Section 3. REPLACING SUBSECTION 17.180.048(a) TO THE

DESERT HOT SPRINGS MUNICIPAL CODE
Subsection 17.180.048(a) of Chapter 17.180 of the Desert Hot Springs Municipal Code shall be replaced and shall read as follows:

17.180.48 Cannabis Consumption Space facilities
A. Permitted Locations. Cannabis consumption space facilities shall only be located in any commercial district, any industrial district or the Mixed-Use Corridor District in the City.

B. A cannabis consumption space facility must include a storefront retail use that complies with all terms and conditions in this chapter, including all State and local laws. The cannabis consumption space facility shall enjoy all uses as provided in Section 17.180.040.

C. Conditional Use Permit/Regulatory Permit Required. Prior to beginning operations, cannabis consumption space facilities shall obtain both a City-issued Conditional Use Permit and a Regulatory Permit, except as otherwise herein allowed in subsection D.

D. If or when State laws and/or regulations allow for more uses for on-site marijuana consumption venues (such as allowance of infused products, or alcohol sales on the same premises as marijuana sales), such allowed uses may be allowed as follows:

1. Administrative Approval. A duly approved cannabis consumption space facility with a duly approved Conditional Use Permit and Regulatory Permit, and in good standing with the City, may request a modification of the already approved Conditional Use Permit to operate a cannabis consumption space facility provided the Director of Community Development, or designee, finds all of the following:
a. There is a 10% or less than deviation to each of the following:

1. On-site circulation and parking, loading and landscaping;

2. Placement and/or height of walls and fences;
Item Number: 1.

3. Exterior architectural features, including colors, and/or modification of finished materials that do not alter or compromise the previously approved theme;

4. The density or intensity of a development project;

5. Paving; and

6. Hours of operation.

2. The cannabis consumption space facility use is consistent with the goals, objectives, policies and programs of the General Plan.

3. The cannabis consumption space facility use complies with applicable zoning and other regulations.

4. The cannabis consumption space facility use will not be detrimental to the public health, safety or welfare or materially injurious to properties or improvements in the vicinity.

5. The location, design and operation of the cannabis consumption space facility use will be compatible with existing and planned land uses in the vicinity.

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

Applications for a modification of a Conditional Use Permit under this section shall be on a form prescribed by the Director and shall be filed with the Department, pursuant to Chapter 17.68 (Applications and Fees) and must be approved by the Director, or designee, who may establish additional conditions to further the intent of this section.

E. Hours of Operation. Cannabis consumption space facilities operating in any permissible district may operate the consumption space between the hours of 6:00 a.m. and 2:00 a.m. and may operate up to seven days per week.

1. Cannabis retail sales must cease at 10:00 p.m.

2. Cannabis retail sales must comply with State and local law.

F. Cannabis consumption space facilities must comply with all local and State laws as it pertains to such use at all times, which certain applicable laws are Item Number: 1.

currently set forth in Title 16 Code of Regulations, Sections 5414 through 5427, as may be amended.

Section 4. AMENDING SECTION 17.180.040 TO THE DESERT HOT

SPRINGS MUNICIPAL CODE

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

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

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

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

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

FE. Approved storefront retail facilities operating with a City-approved Conditional Use Permit and in compliance with all local and State laws may, at their discretion, add a light distribution use to their current storefront retail facility. Any and all light distribution uses must comply with all of the following:

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

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

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

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

Item Number: 1.

GF. Hours of Operation. All marijuana storefront retail facilities operating in any district may only operate between the hours of 6:00 a.m. and 10:00 p.m. and may operate up to seven days per week.

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

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

Section 5. AMENDING SECTION 5.50.080 TO THE DESERT HOT

SPRINGS MUNICIPAL CODE

5.50.080 General operating requirements.

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

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

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

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

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

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

1. Cannabis consumption space facilities are exempt from this requirement within designated cannabis consumption areas.

Item Number: 1.

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

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

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

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

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

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

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

M. Hours of Operation. Except as otherwise provided in Chapter 17.180 of this Code, cannabis facilities may operate only between the hours of 6:00 a.m. and 10:00 p.m. and up to seven days per week.

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

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

P. Odor Control. Cannabis facilities shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis facility that is Item Number: 1.

distinctive to its operation is not detected outside the cannabis facility, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis facility. As such, cannabis facilities must install and maintain the following equipment or any other equipment which the City Manager or designee determines has the same or better effectiveness:

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

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

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

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

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

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

T. Cannabis facilities shall fully comply with all applicable provisions of the Medicinal and Adult-Use Cannabis Regulation and Safety Act (California Business and Professions Code Sections 26000 through 26211), Compassionate Use Act of 1996, the Medical Marijuana Program Act, the 2008 Attorney General Guidelines, all applicable provisions of this Code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit.

Item Number: 1.

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

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

Section 6. AMENDING SECTION 5.50.020 TO THE DESERT HOT

SPRINGS MUNICIPAL CODE

5.50.020 Definitions.

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

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

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

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

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

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

The terms cannabis and cannabis shall be used interchangeably in this chapter. “Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, Item Number: 1.

vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis goods into the human body.
“Cannabis business park” means a property owned by a private party or entity located in a commercial or industrial district that leases or sells or otherwise uses structures, parcels, or lots therein to two or more cannabis facilities engaged in commercial cannabis activity and which provides for the park security, amenities, improvements, and landscaping for the cannabis facilities therein. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency.

Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis consumption space facility” means a licensed cannabis retail premises where cannabis and cannabis products may be purchased (for on-site consumption) and consumed (smoked or ingested) by persons 21 years of age and over within the confines of the facility.
“Cannabis cultivation facility” means a facility wherein cannabis is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of cannabis and/or cannabis goods between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Cannabis facility” means any business or operation that engages in commercial cannabis activity or medicinal cannabis, and includes every cannabis facility type defined in this chapter and in Chapter 17.180 of this Code. “Cannabis goods” means cannabis, including dried flower, and products containing cannabis.
“Cannabis manufacturing facility” means a facility where the production of cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of cannabis or cannabis goods, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid cannabis manufacturing facility license, a cannabis regulatory permit, and a conditional use permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to cannabis manufacturers.

Item Number: 1.

“Cannabis testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis goods and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations. “City” means the City of Desert Hot Springs.
“Consuming” or “Consumption” means smoking, eating, drinking, chewing, applying topically, or otherwise ingesting.
“Consumption area” means designated areas within a cannabis consumption space facility where patrons are allowed to consume cannabis and cannabis products.
“Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensing, or sale of cannabis and cannabis goods, or any other cannabis activity allowed in this Code.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” means cannabis facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq. “Delivery” means the commercial transfer of cannabis or cannabis goods from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of cannabis or cannabis products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis goods either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which one legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.

Item Number: 1.

“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Limited-access area” means an area within a cannabis facility in which cannabis goods are stored or held and is only accessible to a permittee, owner, employees or authorized individuals.
“Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis goods either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Medicinal cannabis” or “medicinal cannabis good” means cannabis or a cannabis good, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Nonstorefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., in the California Code of Regulations, as may be amended. Currently, this is a delivery only retail facility which sells cannabis to a customer solely and exclusively by delivery.
“Off-site sales” means the sale of cannabis for consumption off the premises. “On-site sales” means the sale of cannabis for consumption on the premises. “Owner” or “owners” means any of the following:

1. A person with an aggregate ownership interest of 20% or more in a cannabis facility, or in the person applying for a cannabis facilities regulatory permit.

2. The manager of a nonprofit or other entity.

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

Item Number: 1.

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

5. A person who will be participating in the direction, control, or management of a cannabis facility.
“Permittee” means any business entity possessing a cannabis facilities regulatory permit pursuant to this chapter.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular. “Retail area” means a building, room, or other area that is open to the public, upon the licensed retailer or licensed microbusiness premises authorized to engage in retail sales in which cannabis goods are sold or displayed.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., in the California Code of Regulations, as may be amended. Currently, this is a retail facility which sells and/or delivers cannabis or cannabis goods to customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.

Section 7. AMENDING TO SECTION 5.50.040 TO THE

DESERT HOT SPRINGS MUNICIPAL CODE

5.50.040 Cannabis facilities regulatory permit application process.

Item Number: 1.

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

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

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

3. Secure building permits.

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

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

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

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

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

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

5. A list of each current and prospective owner, employee, independent contractor, and any other persons engaged in the operation of the cannabis facility.

Such persons must be 21 years of age or older.

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

Item Number: 1.

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

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

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

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

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

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

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

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

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

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

D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within 30 days’ written notice by the City Manager or designee.

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

Item Number: 1.

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

Section 8. ADDING TO RESERVED SECTION 5.50.130 TO

THE DESERT HOT SPRINGS MUNICIPAL CODE

5.50.130 Cannabis Consumption Space Facility Operating Requirements In addition to the operation requirements of Section 5.50.080, cannabis consumption space facilities shall comply with the requirements of this section.

All cannabis consumption facilities shall comply with all of the following:

A. In addition to off-site sales, a cannabis consumption space facility may sell cannabis products for on-site consumption only to be consumed within the cannabis consumption areas. Such on-site sales must be done and consummated by an employee of the consumption facility via menu only.

B. Any cannabis-containing product not fully consumed on site, shall be properly packaged for the patron to take it off site.

C. The sale or consumption of alcohol or tobacco products is not allowed on the premises, and other consistent with State law.

D. The smoking, inhalation, consumption or ingestion of cannabis or cannabis products shall not be visible from any public place or any area where minors may be present.

F. Existing Storefront Retailers that add a cannabis consumption space facility use must comply with all of the following:

1. Limit patron access to the display of cannabis and cannabis goods and all retail areas and otherwise comply with all of State and local laws.

1. Have a designated entrance from the street or public sidewalk for patrons.

2. Have an internal connection or passage to the retail areas to facilitate the dispensing of cannabis product.

3. Secure the entrance at the point of entry from the cannabis consumption space into internal connection or passage.

Item Number: 1.

G. Cannabis consumption space facilities may be located on an adjacent parcel or within a tenant space that is segregated and apart from any other cannabis facility provided it complies with all of the following:

1. Have a designated entrance from the street or public sidewalk for patrons

2. Have an internal connection or passage to the adjacent cannabis facility to facilitate the distribution of cannabis product.

3. Secure the entrance at the point of entry from the cannabis consumption space into the other cannabis facility.

H. The cannabis consumption space facility shall:

1. Create and maintain an active account within the State’s track and trace system required by Business and Professions Code Section 26067 prior to commencing any commercial cannabis activity.

2. Ensure that the consumption of cannabis or cannabis products is not visible from the outside of the business.

3. Comply with any other conditions specified in their cannabis facility Conditional Use Permit and Regulatory Permit.

4. Ensure that cannabis consumption space facility shall have adequate security and lighting for the safety of patrons and to protect the premises from theft at all times.

5. Comply with all State law and local requirements, including alcohol requirements.

6. Notify patrons verbally and through posting of a sign in a conspicuous location that entry into the premises by persons under the age of 21 is prohibited.

7. Employ a person to be on the premises to supervise employees and patrons at all times during business hours.

8. Provide the Desert Hot Springs Police Department and all neighbors within 100 ft of the business with the name and phone number of a designated owner or agent to notify if there are operational problems with the establishment.

9. Install an odor-absorbing ventilation and exhaust system so that odor generated inside the premises is not detected outside the premises.

10.Ensure within twenty-four (24) hours of any complaint concerning odor emanating from or originating within the facility, the owner or agent shall respond to the complaint in question and may be requested to file timely a written disclosure to the City documenting any and all actions taken and planned to address the odor complaints.

11.Ensure consumption areas shall be well-ventilated private areas that are partitioned off from access to all other areas of the retail establishment and are designed to prevent the flow of smoke to any other area of the establishment.

Item Number: 1.

12. Properly designate any and all smoking areas, if applicable, and in compliance with all local and State laws.

13.Ensure all designated smoking areas shall be 50 feet from any residential property line.

14.Place and properly maintain solid waste receptacles and recycling bins, in sufficient numbers and locations to service the needs of the proposed use at peak business periods.

15.Properly repackage any and all cannabis or cannabis products that are partially consumed to be taken off-site.

16.Ensure that all non-cannabis-infused food and drink must be prepared, sold, and served in accordance with State and local laws, regulations, and health standards.

1. Food prepared off-site may be delivered to cannabis consumption facility patrons.

2. If or when State laws and/or regulations allow for on-site food or drink preparation at consumption space facilities such uses may be allowed in accordance with State and County laws and regulations.

17.Ensure all food products, food storage facilities, food-related utensils, equipment, and materials shall be approved, used, managed, and handled in accordance with sections 113700-11437 of the California Health and Safety Code, and California Retail Food Code. All food products shall be protected from contamination at all times, and all food handlers must be clean, in good health, and free from communicable diseases.

I. The cannabis consumption space facility shall not:

1. Allow any on-duty employee to consume any cannabis or cannabis products on the premises.

2. Distribute any free samples of cannabis or cannabis products on the premises.

3. Sell, serve, or permit the sale or serving of cannabis or cannabis products to patrons who are visibly intoxicated.

4. Permit any public nuisances, including any noise violations or other offenses to the public peace and safety.

5. Allow smoking or vaping of any product outside of designated and marked smoking areas, consistent with all local and State law.

J. Conditional Use Permit/Regulatory Permit Required. Storefront retailer facilities with a consumption space shall obtain both a City-issued Conditional Use Permit and Regulatory Permit for that consumption space. The number of Item Number: 1.

Conditional Use Permits issued for cannabis facilities with a consumption space shall be above and beyond the limited number of conditional use permits allowed for storefront retail facilities.

K. Cannabis facilities with a consumption space must comply with all provisions of this code and State law at all times.

L. The storefront retail facility and/or the on-site cannabis consumption space, or any other cannabis component of the consumption space permit shall be subject to all applicable local taxes, including, but not limited to, those in Chapter

3.34. Section 6. 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 7. AMENDING OF BAIL SCHEDULE
That the City Attorney's Office is hereby directed to determine whether this ordinance necessitates amendment of the City's Bail Schedule and to cause such necessary amendments to be made and filed with the local branches of the Superior Court of the County of Riverside.

Section 8. 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 9. EFFECTIVE DATE
That this ordinance shall take effect thirty (30) days after its second reading by the City Council.

Item Number: 1.

That the foregoing Ordinance was approved and adopted at a meeting of the City Council held on ________________, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST:
_______________________________
Scott Matas, Mayor
ATTEST:
____________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
____________________________________
By:

Item Number: 1.

SR-24-093
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Adopt a Cannabis Nursery Use Type 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 of the City Council of the City of Desert Hot Springs, California Adding Section 5.50.130 “Nursery Operating Requirements” and Amending Section 5.50.020 “Definitions” of Chapter 5.50 “Cannabis Businesses” of Title 5 “Business Licenses and Regulations” and Adding Section 17.180.095 “Nursery” and Amending Section

17.180.030 “Definitions” of Chapter 17.180 “Marijuana Facilities Operation and Location” of Title 17 “Zoning”, and Amending Section 3.34.005 “Imposition of Tax” of Chapter 3.34 “Marijuana Tax” of Title 3 “Revenue and Finance”, and Amending Section 3.37.005 “Imposition of Tax” of Chapter 3.37 “Medical Marijuana Tax” of Title 3 “Revenue and Finance” and Amending Section 17.16.01 “Permitted Uses-Industrial Districts” of Chapter 17.16 “Industrial Districts” of Title 17 “Zoning” of the Desert Hot Springs Municipal Code of the Desert Hot Springs Municipal Code." BACKGROUND:

The California Business and Professions Code defines “Nursery” as a “licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.” Currently, the City of Desert Hot Springs does not recognize “nursery” as a cannabis use type, nor have we developed operational or zoning requirements for a cannabis nursery. A cannabis nursery allows the operation to sell seeds, seedlings, and clones to other cultivation operations(licensees). A cannabis nursery is the pivotal foundation of a cultivation operation and where its growth trajectory is established.

The cannabis industry of Desert Hot Springs is largely comprised of cultivation operations. The City’s cannabis cultivation operators have conveyed the need for a nursery component of their cultivation operations. Presently, if a cannabis cultivation were to use a portion of its cultivation to operate a Nursery, the portion used in connection with the Nursery would be taxed at the cultivation rate based Item Number: 2.

SR-24-093
on square footage. The cultivation tax rate for a cannabis nursery would result in a loss of revenue for cannabis operators. A clone or “baby” cannabis plant ranges from $5- $30 each. For a cannabis nursery to be profitable the City’s sales tax model is the suitable form of taxation for the use.

DISCUSSION:

If approved the proposed ordinance would:
 Establish a cannabis “Nursery” as a permissible cannabis use type.  Permit the operation of cannabis nurseries in the Highway Commercial Districts (C-H), Business Park Districts (C-BP), and Light Industrial Districts (I-L) in the Industrial Cannabis Overlay Zone in the City.
 Impose zoning requirements for cannabis nurseries by adding section 17.180.095 “Nursery” of Chapter 17.180 “Marijuana Facilities Operation and Location” of Title 17 “Zoning” of the Desert Hot Springs Municipal Code.
 Establish that a cannabis “Nursery” as defined in the ordinance allows businesses to produce only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
 Establish cannabis nursery operational requirements under Chapter 5.50 “Cannabis Businesses” of Title 5 “Business License and Regulations” of the Desert Hot Springs Municipal Code.
 Establish the imposition of a sales tax on sales conducted by cannabis nurseries under Chapters 3.37 “Medical Marijuana Tax” and 3.34” Marijuana Tax” of Title 3 “Revenue and Finance” of the Desert Hot Springs Municipal Code.

FISCAL IMPACT:

No fiscal impact.

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) Nursery Ordinance
Item Number: 2.

ORDINANCE NO. _____

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA ADDING SECTION 5.50.130 “NURSERY OPERATING REQUIREMENTS” AND AMENDING SECTION 5.50.020
“DEFINITIONS” OF CHAPTER 5.50 “CANNABIS BUSINESSES” OF
TITLE 5 “BUSINESS LICENSES AND REGULATIONS” AND ADDING
SECTION 17.180.095 “NURSERY” AND AMENDING SECTION

17.180.030 “DEFINITIONS” OF CHAPTER 17.180 “MARIJUANA
FACILITIES OPERATION AND LOCATION” OF TITLE 17 “ZONING”, AND AMENDING SECTION 3.34.005 “IMPOSITION OF TAX” OF
CHAPTER 3.34 “MARIJUANA TAX” OF TITLE 3 “REVENUE AND
FINANCE”, AND AMENDING SECTION 3.37.005 “IMPOSITION OF
TAX” OF CHAPTER 3.37 “MEDICAL MARIJUANA TAX” OF TITLE 3 “REVENUE AND FINANCE” AND AMENDING SECTION 17.16.01
“PERMITTED USES- INDUSTRIAL DISTRICTS” OF CHAPTER 17.16 “INDUSTRIAL DISTRICTS” OF TITLE 17 “ZONING” OF THE DESERT

HOT SPRINGS MUNICIPAL CODE OF THE DESERT HOT SPRINGS

MUNICIPAL CODE
WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 5.50 of the Desert Hot Springs Municipal regulates cannabis facilities operating within the City; and
WHEREAS, Chapter 17.180 of the Desert Hot Springs Municipal imposes zoning conditions for cannabis facilities operating within the City; and WHEREAS, the City Council desires to amend Chapters 5.50 and 17.180 of the Desert Hot Springs Municipal Code to permit the operation of nurseries as defined under California Business & Professions Code Section 26001; and WHEREAS, the City Council desires to amend Chapter 17.16 of the Desert Hot Springs Municipal Code to add “Nursery” as a marijuana use with a conditional use permit; and
WHEREAS, the City Council desires to amend Chapters 3.34 and 3.37 of the Desert Hot Springs Municipal Code to impose marijuana and medical marijuana retail sales tax as to nurseries; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment; and Item Number: 2.

WHEREAS, the Planning Commission held a duly noticed hearing on this Ordinance and recommended that the City Council adopt same; and WHEREAS, this Ordinance is compatible with the general objectives of the General Plan and any applicable specific plan; and
WHEREAS, this Ordinance promotes the public health, safety and welfare.

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

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

Section 2. AMENDING SECTION 5.50.020 “DEFINITIONS” OF
CHAPTER 5.50 “CANNABIS BUSINESSES” OF TITLE 5
“BUSINESS LICENSES AND REGULATIONS” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 5.50.020 (“Definitions”) of Chapter 5.50 (“Cannabis Businesses”) of Title 5 (“Business Licenses and Regulations”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:

5.50.020 Definitions.

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

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

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

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

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

E. When used in this chapter, references to State law include the laws as may be amended.
“Applicant” means any business entity applying for a permit or a renewal of a permit pursuant to this chapter.

Item Number: 2.

“Cannabis” or “marijuana” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define marijuana). The terms cannabis and marijuana shall be used interchangeably in this chapter.
“Cannabis accessories” means any equipment, products or materials of any kind which are used, intended for use, or designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis goods into the human body.
“Cannabis business park” means a property owned by a private party or entity located in a commercial or industrial district that leases or sells or otherwise uses structures, parcels, or lots therein to two or more cannabis facilities engaged in commercial cannabis activity and which provides for the park security, amenities, improvements, and landscaping for the cannabis facilities therein. “Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency.

Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter. A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cannabis cultivation facility” means a facility wherein cannabis is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Cannabis distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of cannabis and/or cannabis goods between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Cannabis facility” means collectively any facility that is defined in Chapter

17.180.
“Cannabis goods” means cannabis, including dried flower, and products containing cannabis.
“Cannabis manufacturing facility” means a facility where the production of cannabis concentrate, and/or the preparation, propagation, or compounding of manufactured cannabis, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of cannabis or cannabis goods, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid cannabis manufacturing facility license, a cannabis regulatory permit, and a conditional use permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a Item Number: 2.

valid State license when the State of California begins issuing State licenses to cannabis manufacturers.
“Cannabis testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis goods and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Department of Cannabis Control Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations.
“City” means the City of Desert Hot Springs.
“Commercial cannabis activity” includes the cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery, dispensing, or sale of cannabis and cannabis goods, or any other cannabis activity allowed in this code.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” shall mean cannabis facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq. “Delivery” means the commercial transfer of cannabis or cannabis goods from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of cannabis or cannabis products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis goods either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code. “Legal parcel” means a parcel of land for which one legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter.
“Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical Item Number: 2.

synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis goods either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Limited-access area” means an area within a cannabis facility in which cannabis goods are stored or held and is only accessible to a responsible person, permitholder, or employees and authorized individuals.
“Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis goods either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis goods or labels or relabels its container. “Medicinal cannabis” or “medicinal cannabis good” means cannabis or a cannabis good, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Non-storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., Section 15414 in the California Code of Regulations, as may be amended. Currently, this is a delivery only retail facility which sells cannabis to a customer solely and exclusively by delivery.
“Nursery” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Section 15000 of Title 17 of the California Code of Regulations, as may be amended.

Currently, this is a business that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
“Off-site sales” means the sale of cannabis for consumption off the premises. “On-site sales” means the sale of cannabis for consumption on the premises. “Permittee” means any business entity possessing a cannabis facilities regulatory permit pursuant to this chapter.
“Person” includes any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, and the plural as well as the singular.

Item Number: 2.

“Responsible person” means any officer, board member, person who will participate in the direction, control or management of, or any person with an ownership stake in, an applicant or permittee.
“Retail area” means a building, room, or other area that is open to the public, upon the licensed retailer or licensed microbusiness premises authorized to engage in retail sales in which cannabis goods are sold or displayed. “Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., Sections 15400 to 15413 in the California Code of Regulations, as may be amended. Currently, this is a retail facility which sells and/or delivers cannabis or cannabis goods to customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.

Section 3. ADDING SECTION 5.50.130 “NURSERY OPERATING
REQUIREMENTS” OF CHAPTER 5.50 “CANNABIS
BUSINESSES” OF TITLE 5 “BUSINESS LICENSES AND
REGULATIONS” OF THE DESERT HOT SPRINGS

MUNICIPAL CODE
Section 5.50.130 (“Nursery Operating Requirements”) of Chapter 5.50 (“Cannabis Businesses”) of Title 5 (“Business Licenses and Regulations”) of the Desert Hot Springs Municipal Code is hereby added to read in its entirety as follows:

5.50.130 Nursery operating requirements.

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

A. Nurseries shall comply with Section 17.180.050 of this code.

Section 4. AMENDING SECTION 17.180.030 “DEFINITIONS” OF CHAPTER 17.180 “MARIJUANA FACILITIES OPERATION
AND LOCATION” OF TITLE 17 “ZONING” OF THE

DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.030 (“Definitions”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read in its entirety as follows:

17.180.030 Definitions.

Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them as follows.

Item Number: 2.

When used in this chapter, the following words shall have the meanings ascribed to them in this section. Any reference to California statutes includes any regulations promulgated thereunder and is deemed to include any successor or amended version of the referenced statute or regulatory provision. Words and phrases not specifically defined in this chapter shall have the meanings ascribed to them by the following sources:

A. The CUA of 1996 (California Health and Safety Code Section 11362.5), and as may be amended from time to time;
B. The MMPA (California Health and Safety Code Sections 11362.7 through 11362.83);
C. The MAUCRSA (Medicinal and Adult Use Cannabis Regulation and Safety Act), enacted on June 27, 2017, as may be amended from time to time. “Cannabis” or “marijuana” shall have the same meaning as provided in Health and Safety Code Section 11018, as amended (which code section used to define “marijuana”). The terms “cannabis” and “marijuana” shall be used interchangeably in this chapter.
“Cannabis concentrate” means cannabis that has undergone a process to concentrate one or more active cannabinoids, thereby increasing the product’s potency. Resin from granular trichomes from a cannabis plant is a concentrate for purposes of this chapter.

A cannabis concentrate is not considered food, as defined by Section 109935 of the Health and Safety Code, or a drug, as defined by Section 109925 of the Health and Safety Code.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis.
“Cultivator” means marijuana facilities licensed as a cultivation site or as a cultivator pursuant to California Business and Professions Code Section 19300 et seq., or pursuant to California Business and Professions Code Section 26000 et seq. “Delivery” means the commercial transfer of cannabis or cannabis products from a State licensed distributor or retailer wherever located, to an adult 21 years of age or older, qualified patient, or primary caregiver located in the City of Desert Hot Springs, and shall include the use of any technology platform that enables adults 21 years of age or older, qualified patients, or primary caregivers located in Desert Hot Springs to arrange for or facilitate the commercial transfer of marijuana or marijuana products. “Distribution” means the procurement, sale, or transport of cannabis or cannabis products either within the City limits, or to and from the City from a place outside the City limits, from a permitted business location of a licensed entity to a permitted business location of another licensed entity subject to State laws and regulations and subject to the provisions of this chapter and the City’s Municipal Code.

Item Number: 2.

“Legal parcel” means a parcel of land for which 1 legal title exists. Where contiguous legal parcels are under common ownership or control, such legal parcels may at the option of the property owner be counted as a single parcel for purposes of this chapter. “Light manufacturer” means a person or entity that conducts the production, preparation, or compounding of cannabis or cannabis products either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. “Light manufacturing facility” means a facility that conducts the production, preparation, or compounding of cannabis or cannabis products either directly or indirectly not using any kind of extraction method whatsoever, but merely using chemical synthesis, such as baking or infusing at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container.
“Manufacturer” means a person or entity that conducts the production, preparation, propagation, or compounding of cannabis or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages cannabis or cannabis products or labels or relabels its container. “Marijuana cultivation facility” means a facility wherein marijuana is propagated, planted, grown, harvested, dried, cured, graded, labeled, tagged for tracking, or trimmed, or wherein all or any combination of those activities takes place. “Marijuana distribution facility” means any facility or location, the primary function of which is the procurement, sale, and/or transport of marijuana and/or marijuana products between entities operating in strict accordance with State law, as may be amended from time to time, and subject to the provisions of this chapter and the City’s Municipal Code. “Marijuana entertainment facility” means any facility or location, the primary function of which is an entertainment use, and which must contain an entertainment use (such as a movie, theater, bowling alley, concert venue) or as that use may be defined in DHMC Section 17.04.050, and at least 1 other of the following uses: (1) marijuana storefront retail facility, as defined; and/or (2) on-site marijuana consumption area. “Marijuana facility” means collectively any marijuana storefront retail facility, nonstorefront retail facility, marijuana cultivation facility, marijuana distribution facility, marijuana testing facility, marijuana hotel facility, or marijuana manufacturing facility, as those terms are defined in this chapter.
“Marijuana hotel facility” means a hotel, motel, or other transient lodging facility as defined by Chapter 3.20 of this code that possesses a permit issued pursuant to this chapter.
“Marijuana manufacturing facility” means a facility where the production of marijuana concentrate, and/or the preparation, propagation, or compounding of manufactured Item Number: 2.

marijuana, either directly or indirectly or by extraction methods or independently by means of chemical synthesis, or the packaging or repackaging of marijuana or marijuana products, or the labeling or relabeling of its containers, occurs, provided the facility holds a valid marijuana manufacturing facility license, a Marijuana Regulatory Permit, and a Conditional Use Permit all issued in accordance with this chapter and the City’s Municipal Code, and provided that the facility will qualify for a valid State license when the State of California begins issuing State licenses to marijuana manufacturers. “Marijuana testing facility” shall have the same definition as in the Business and Professions Code Section 26001, as may be amended, which currently means a laboratory, facility, or entity in the State that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the State; (2) licensed by the Department of Cannabis Control Bureau of Cannabis Control, and regulated by Section 5700 et seq., as may be amended of Title 16 of the California Code of Regulations. Notwithstanding, a “marijuana testing facility” shall also mean any of the following: (1) a testing facility that is contracted with the State of California or any lawful department thereof, to provide testing or research and development on behalf of or to benefit the State; (2) a testing facility that is contracted with the United States of America, or any lawful department thereof to provide testing or research and development on behalf of or to benefit the United States.
“Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation.
“Non-storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5414 to 5427 et seq., Section 15414 in the California Code of Regulations, as may be amended. Currently, this is a delivery only retail facility which sells marijuana to a customer solely and exclusively by delivery.
“Nursery” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Section 15000 of Title 17 of the California Code of Regulations, as may be amended. Currently, is a licensee that produces only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis.
“Off-site sales” means the sale of marijuana for consumption off the premises. “On-site sales” means the sale of marijuana for consumption on the premises.

Item Number: 2.

“Patron” means a registered guest of a hotel or motel or other transient lodging facility as defined by Chapter 3.20 of this code. Patrons shall not include any visitors or customers who do not register as guests.
“Storefront retail facility” shall have the same meaning as in Business and Professions Code Section 26070(a)(1), as may be amended, and further defined by Sections 5400 to 5413 et seq., Sections 15400 to 15413 in the California Code of Regulations, as may be amended. Currently, this is a retail facility which sells and/or delivers marijuana or marijuana products to customers. A storefront retail facility shall have a licensed premises which is a physical location from which commercial cannabis activities are conducted.

Section 5. ADDING SECTION 17.180.095 “NURSERY” OF CHAPTER

17.180 “MARIJUANA FACILITIES OPERATION AND
LOCATION” OF TITLE 17 “ZONING” OF THE DESERT

HOT SPRINGS MUNICIPAL CODE
Section 17.180.095 (“Nursery”) of Chapter 17.180 (“Marijuana Facilities Operation and Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby added to read in its entirety as follows:

17.180.095 Nursery.

A. Permitted Locations. Nurseries shall only be located in Highway Commercial Districts (C-H), Business Park Districts (C-BP), and Light Industrial Districts (I-L) in the Industrial Cannabis Overlay Zone in the City.

B. Interior Only. Nurseries shall keep all cannabis plants and products in the interior of fully enclosed structures, facilities, buildings, or other fully enclosed spaces consistent with the purpose and intent of this chapter.

C. Nurseries shall keep all cannabis plants and products in designated areas in a manner consistent with the Department of Cannabis Control regulations and Title 4, Section 15000 et seq. of the California Code of Regulations, as may be amended. No nursery operations, including harvesting and growing clones, immature plants, seeds, or other agricultural products, shall be visible from any public right-of-way.

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

E. Administrative Approval. A duly approved manufacturing facility and/or distribution facility, with a duly approved Conditional Use Permit and Regulatory Permit, and in good standing with the City, may request modification of the already approved Conditional Use Permit to operate a non-storefront retail facility Item Number: 2.

provided the Director of Community Development, or designee, finds all of the following:

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

F. Nursery facilities may also distribute marijuana, as so allowed with a Conditional Use Permit.

G. Nursery facilities may not deliver to end-user consumers.

Section 6. AMENDING SECTION 3.34.005 “IMPOSITION OF TAX” OF CHAPTER 3.34 “MARIJUANA TAX” OF THE DESERT HOT

SPRINGS MUNICIPAL CODE

3.34.005 Imposition of tax.

In the event the casual/recreational use of marijuana is legalized or decriminalized in California, any person or entity legally selling or providing marijuana for casual/recreational use, or producing only clones, immature plants, seeds, and other agricultural products used specifically for the propagation and cultivation of cannabis within the City shall pay to the City a monthly tax of 10 percent of its proceeds from such sales or provision.

Section 7. AMENDING SECTION 3.37.005 “IMPOSITION OF TAX” OF CHAPTER 3.37 “MEDICAL MARIJUANA TAX” OF THE DESERT

HOT SPRINGS MUNICIPAL CODE

3.37.005 Imposition of tax.

Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider, nursery, or other type of entity legally selling or providing medical marijuana Item Number: 2.

within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.) shall pay to the City a monthly tax of 10 percent of its proceeds from such sales or provision.

Section 8. AMENDING SECTION 17.16.01 “PERMITTED USESINDUSTRIAL DISTRICTS” OF CHAPTER 17.16 “INDUSTRIAL DISTRICTS” OF THE DESERT HOT SPRINGS MUNICIPAL
CODE

17.16.01 PERMITTED USES- INDUSTRIAL DISTRICTS

MARIJUANA USES
Marijuana Nonstorefront Retail CUP CUP 17.180.045
Marijuana Distribution AUP CUP 17.180.080
Marijuana Cultivation AUP CUP 17.180.050
Marijuana Nursery CUP CUP 17.180.095
Marijuana Entertainment Facilities CUP CUP
Marijuana Hotel Facilities — —
Marijuana Manufacturing AUP CUP 17.180.060
Marijuana Storefront Retail — — 17.180.040
Marijuana Testing Facilities AUP — 17.180.070
Section 9. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 10. REPEAL OF CONFLICTING PROVISIONS
That all the provisions of the Municipal Code as heretofore adopted by the City of Desert Hot Springs that are in conflict with the provisions of this ordinance are hereby repealed.

Section 11. 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 12. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Item Number: 2.

Section 13. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting held on the ___ day of ______, 2024 by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:
_______________________________
Scott Matas, Mayor
ATTEST:
________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
________________________________
Tuan-Anh Vu, City Attorney
Item Number: 2.

SR-24-095
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Code & Cannabis Compliance
Prepared by: Christina Newsom, Compliance Director
Subject: An Ordinance to Amend Cannabis Storefront Retailer's Ancillary Uses 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 of the City Council of the City of Desert Hot Springs, amending Title 17 Regarding Storefront Retail Zoning of the Desert Hot Springs Municipal Code."
BACKGROUND:

Section 17.180 of the Zoning Code, provides zoning regulations and operating requirements of cannabis facilities, including section 17.180.040 for storefront retail facilities.

On February 6, 2024, the City Council approved a recommendation from staff to amend zoning and operational requirements for storefront retailers. This comes as a series of recommendations of amendments of cannabis regulations. These amendments are aimed at stabilizing the cannabis industry amid recent hardships felt throughout the state.

DISCUSSION:

The proposed ordinance seeks to amend Chapter 17.180.040 to update cultivation limitations for storefront retail Cannabis Facilities. Cannabis Facility owners and operators have approached the City seeking review of the 99 flowering plant limitation for storefront retail Cannabis Facilities. In particular, the following are the logistical issues facing the retail Cannabis Facilities:

1. Storefront Retail Facilities:
a. Storefront retail facilities are limited to 99 flowering cannabis plants.

Item Number: 3.

SR-24-095
b. All other provisions for cultivators in Desert Hot Springs are based on square footage, not plant count.
c. The City Council approved a new definition of cultivation space in July, 2023, which removed taxation of vertical growth.

These realities reflect the intent for cultivators to utilize their space more efficiently, which would seem to include storefront retail facilities. In order to allow storefront retail facilities who also cultivate cannabis plants to maximize their space, the proposed Ordinance would amend current regulations to place a limitation of 500 square footage as opposed to 99 flowering plant count. The proposed Ordinance would amend the space for flowering cannabis plants as there is no current limitation on non-flowering cannabis plants.

FISCAL IMPACT:

No fiscal impact.

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) Storefront Retail Ancillary Use Ordinance
Item Number: 3.

C2014/000 - 1116578.1
ORDINANCE NO. ______

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, AMENDING TITLE 17 REGARDING STOREFRONT
RETAIL ZONING OF THE DESERT HOT SPRINGS MUNICIPAL CODE.

WHEREAS, the City of Desert Hot Springs (“City”) is a charter city organized pursuant to Article XI of the California Constitution; and WHEREAS, Chapter 17.180 of the Desert Hot Springs Municipal Code sets forth zoning regulations and operating requirements of cannabis facilities, including section

17.180.040 for storefront retail facilities; and
WHEREAS, the City Council desires to amend Chapters 17.180 of the Desert Hot Springs Municipal Code to update regulations related to limitations on the number of plants for cannabis storefront; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this Ordinance is consistent with the General Plan; and
WHEREAS, the City Council finds that the passage of this Ordinance is in the best interest of the public interest, health, safety, convenience, and welfare.

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

Section 1. RECITALS.

The Recitals are hereby incorporated by this reference.

Section 2. AMENDING SECTION 17.180.040 (“MARIJUANA STOREFRONT RETAIL FACILITIES”) OF CHAPTER 17.180 (“MARIJUANA
FACILITIES OPERATION AND LOCATION”) OF TITLE 17
“ZONING” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
Section 17.180.040 (“Marijuana Storefront Retail Facilities”) of Chapter 17.180 (“Marijuana Facilities Operation And Location”) of Title 17 (“Zoning”) of the Desert Hot Springs Municipal Code is hereby amended to read as follows:

17.180.040 Marijuana storefront retail facilities.

Item Number: 3.

C2014/000 - 1116578.1
A. Permitted Locations. Marijuana storefront retail facilities shall only be located in any Commercial District (excluding Downtown Commercial Districts and Visitor-Serving Commercial Districts) in the City.

B. Number of Plants. Storefront retail facilities shall not cultivate in more than 99 500 square feet of space for mature flowering marijuana cannabis plants on site at any one time.

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

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

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

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

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

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

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

F. Hours of Operation. All marijuana storefront retail facilities operating in any district may only operate between the hours of 6:00 a.m. and 10:00 p.m. and may operate up to seven days per week.

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

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

Section 3. SEVERABILITY
That the City Council declares that, should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court Item Number: 3.

C2014/000 - 1116578.1
action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.

Section 4. 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 5. EFFECTIVE DATE
That this ordinance shall be effective thirty days after the second reading of the ordinance.

Section 6. CERTIFICATION
That the City Clerk shall certify to the passage of this ordinance and shall cause the same to be published according to law.

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

AYES:

NOES:

ABSENT:

ABSTAIN:
_______________________________
Scott Matas, Mayor
ATTEST:
_______________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_______________________________
Tuan-Anh Vu, City Attorney
Item Number: 3.

SR-24-097
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
This item has been withdrawn from the agenda.

To: City Council
Date: April 16, 2024
Department: City Council
Prepared by: Jerryl Soriano, City Clerk
Subject: Discussion Item: Policy Direction to Address Unhoused Sanitation Issues RECOMMENDATION:

Consider placement of an item on a future agenda to consider policy direction for addressing unhoused sanitation issues.

BACKGROUND:

This item is sponsored by Council Member Betts and Mayor Matas.

DISCUSSION:

Resolution 2019-004 (Exhibit 1) sets forth the “Policy” for placing items on an agenda by the Mayor or two (2) Council Members.

In accordance with the Policy, the City Council, during the discussion, shall consider whether to place the item on a subsequent agenda for “action” upon a majority vote of the City Council.

Here is the concept for policy:
 Staff or Contract that provides this service to the Community;  The scope of service would be to clean urine and defecation on private property;  And clean/remove debris that is left behind on private property;  Any/all services needs private property consent to remove debris;  Staff/Contract need to follow personal property rights on evictions;  Outside of this potential change, it is currently the owners responsibility to protect and clean their personal property.

If/when there is a majority to proceed, staff will further analyze the cost and policy and bring forward a subsequent meeting.

FISCAL IMPACT:

To be determined.

Item Number: 4.

SR-24-097
OPTIONAL:

Not proceed with this analysis and policy.

ATTACHMENTS:
1) Resolution 2019-004 Policy for Placing Items on Agenda Item Number: 4.

RESOLUTION NO. 2019-004

A RESOLUTION OF THE OF THE CITY COUNCIL OF THE CITYOF DESERT

HOT SPRINGS ADOPTING A POLICY FOR CITY COUNCILMEMBERS,

INCLUDINGTHE MAYOR, PLACING ITEMS ON THE AGENDA
WHEREAS, the City of Desert Hot Springs (the “City”)is a charter city and a political subdivision of the State of California; and
WHEREAS, the City Council has adopted a document titled “City of Desert Hot Springs City Council and Commissions Meeting Guidelines and Procedures” (“Meeting Guidelines and Procedures”); and
WHEREAS, the Meeting Guidelines and Procedures provides a skeletal outline of how items get placed on the agenda; and
WHEREAS, this Policy for City Councilmembers, Including the Mayor, Placing Items on the Agenda (“Subject Policy”) is intended to set forth the procedures for placing items on the agenda and to provide clarity in this regard, notwithstanding the Meeting Guidelines and Procedures; and
WHEREAS, the Subject Policy willprovide clear direction to staff as to when action items come before the City Council, as requested by the mayor or councilmembers; and WHEREAS, this Subject Policy is for the betterment of the public health, safety and welfare inasmuch as it promotes a more transparent government.

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

Section 1. RECITALS.

That the recitals set forth above are true and correct.

Section 2. ADOPTION OF A POLICY FOR CITYCOUNCILMEMBERS, INCLUDING

THE MAYOR, PLACING ITEMSON THE AGENDA
Solely withrespect to placing future items on the agenda by councilmembers or the mayor, the city manager is authorized and directed to do so as follows:
(1) by direction of the mayor;
(2) by direction of two city councilmembers
Councilmembers wishing to place items on a future agenda shall submit requests to the city manager at least ten (10) days before the council meeting. The items shall be placed on the agenda for discussion purposes only, and not as action items. The item shall identify the mayor or councilmembers making the request and contain a brief description of the subject matter. The city council, during the discussion item, willconsider whether to direct staff to place an item on a future agenda for action. Upon direction of a majority of the city council present, staff willprepare a staff report and other documents as may be needed for any future action item.

Item Number: 4.

This policy does not affect urgency items, which are those limitedsituations where an item requires immediate action, and the need to take immediate action came to the attention of the councilmember subsequent to the distributionof the agenda.

Section 3. SEVERABILITY.

That the City Councildeclares that, should any provision, section, paragraph, sentence or word of this Resolution or the Policy attached hereto be rendered or declared invalidby any ?nal court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this Resolution and Policy as hereby adopted shall remain in fullforce and effect.

Section 4. REPEAL OF CONFLICTINGPROVISIONS.

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

Section 5. EFFECTIVE DATE.

That this Resolution shall take effect immediately upon its adoption.

Section 6. CERTIFICATION.

That the City Clerk shall certify to the passage and adoption of this Resolution, enter the same in the book for original resolutions of the City, and make a minute of passage and adoption thereof in the records of the proceedings of the City Council, in the minutes of the meeting at which this Resolution is passed and adopted.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting duly held on the 15th day of January, 2019, by the following vote:

AYES: 4 — Betts; Gardner; Zavala; and Mayor Matas.

NAYS: 1 — Pye.

ABSENT: None.

ABSTAIN: None.
[SIGNATURES FOLLOWON THE NEXTPAGE]
Item Number: 4.

ATTEST: APPROVED:
//
J rryl oriano, CItyfZI?< Scott Matas, Mayor
APPROVED AS TO FORM:
1/ *
Jennifer A.‘K/IfVw'\,\.G’1ty Attorney
Item Number: 4.

SR-24-091
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Administrative Services
Prepared by: Geoffrey Buchheim, Administrative Services Director Subject: Lighting and Landscape Maintenance Districts and Drainage Assessment District Initiate Proceedings for the FY 2024-25 Levy and Collection of Assessment
RECOMMENDATION:
1) Adopt a Resolution of the City Council initiating proceedings for the levy and collection of assessments for the Citywide Landscape and Lighting Maintenance District No. 1, Zone A and Zone B for Fiscal Year 2024-25;
2) Adopt a Resolution of the City Council initiating proceedings for the levy and collection of assessments for the Landscape and Lighting Maintenance District No. 2 for Fiscal Year 2024-25; and 3) Adopt a Resolution of the City Council initiating proceedings for the levy and collection of assessments for the Drainage Assessment District No. 1 for Fiscal Year 2024-25.

BACKGROUND:

The Landscaping and Lighting Act of 1972 (the "Act"), which is set forth in California Streets and Highways Code sections 22500-22679, provides for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and servicing costs of all improvements and facilities related thereto, including for the installation, construction, and maintenance of landscaping, lighting, and park and recreational facilities, including graffiti removal.

The Citywide Landscape and Lighting Maintenance District No. 1 and Landscape and Lighting Maintenance District No. 2 were established pursuant to the Act.

The Benefit Assessment Act of 1982, Chapter 6.4, Division 2, Title 5 of the California Government Code (commencing with Section 54703) (the “1982 Act”), Article XIIID of the Constitution of the State of California (“Article XIIID”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750, et. seq.) (the “Implementation Act”) (the 1982 Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”), provide for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto, including for the operation, maintenance and servicing of landscaping, sidewalks, trees, street lighting, park facilities, parkways, street tree lighting and appurtenant facilities.

In order to continue the annual assessments of all three of these Districts, the Act and the Assessment Law require the City Council conduct certain proceedings each year it intends to extend the life of the assessments for each District for an additional year. Such proceedings generally require Item Number: 5.

SR-24-091
the adoption of intention resolutions, the preparation of an Engineer's Report, the holding of a noticed public hearing, and the adoption of a resolution levying the assessments. Since there are no proposals to increase the amounts of the subject annual assessments, there is no need for any assessment protest proceedings, like the ones that were conducted when the three Districts were originally established.

Pursuant to the Act, an Engineer's Report was prepared containing the following information:
• A description of the improvements or services to be financed; • An estimate of the cost of the improvements or services (and incidental expenses such as costs for financing, assessment engineering, collection, and notice and protest requirements); • An assessment diagram depicting the boundaries of each of the assessment districts and the parcels contained in each;
• A description of the method of apportioning the assessments against properties in each of the assessment districts; and
• An assessment roll listing the parcels to be assessed and the proposed assessment against each.

The Engineer's Report will be presented to the City Council at the May 21, 2024, meeting.

These resolutions will provide for the collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto and file with the City Clerk the Engineer's Annual Levy Report for the Districts for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025.

The general process of annually funding this District requires the City to prepare an Annual Engineer's Report declaring the cost of improvements related to maintenance in the Districts. After the statutorily required process, an annual levy based upon this Engineer's Report is then placed upon the County of Riverside's Property Tax Roll.

Citywide Landscape and Lighting Maintenance District No. 1 Fiscal Year 2024-25 The City Council has by previous Resolutions formed and levied annual assessments for the Citywide Landscape and Lighting Maintenance District No. 1, Zone A and Zone B, pursuant to the provisions of the Act, that provides for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto.

The City Council has retained Webb Municipal Finance, LLC, for the purpose of assisting with the Annual Levy of the District, and to prepare and file a report with the City Clerk in accordance with the Act, and staff is requesting that it direct Webb Municipal Finance, LLC to prepare and file with the City Clerk the Engineer’s Annual Levy Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with Chapter 3, Section 22622 of the Act.

Item Number: 5.

SR-24-091
The improvements include the construction, operation, maintenance and servicing of landscaping, sidewalks, trees, street lighting, park facilities, parkways, street tree lighting and appurtenant facilities.

Services and maintenance include, but are not limited to, personnel, electrical energy and lease costs from Edison, utilities such as water and gas, equipment, maintenance vehicles, materials, contracting services, and other items necessary for the satisfactory operation of the facilities.

Landscape and Lighting Maintenance District No. 2 for Fiscal Year 2024-25 The City Council has by previous Resolutions formed and levied annual assessments for the Desert Hot Springs Landscape and Lighting Maintenance District No. 2 pursuant to the provisions of the Act that provides for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto.

Here too, the City Council retained Webb Municipal Finance, LLC for the purpose of assisting with the Annual Levy of the District, and to prepare and file a report with the City Clerk in accordance with the Act. Staff is also requesting that the City Council direct Webb Municipal Finance, LLC to prepare and file with the City Clerk the Engineer’s Annual Levy Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with Chapter 3, Section 22622 of the Act.

The Improvements provided within Landscape and Lighting Maintenance District No. 2, Zones 1 through 15 and 17 through 19 may include, but are not limited to, ground cover, shrubs, plants and trees, irrigation systems, landscape lighting, street lighting, graffiti removal, sidewalks and masonry walls, entry monuments, tot lot equipment and associated appurtenant facilities. Services provided include all necessary service, operations, administration and maintenance required to keep the above-mentioned improvements in a healthy, vigorous and satisfactory working condition.

Drainage Assessment District No. 1 Fiscal Year 2024-25
Additionally, the City Council has by previous Resolutions formed and levied annual assessments for the Drainage Assessment District No. 1, pursuant to the provisions of the Assessment Law, that provides for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto.

The City Council has retained Webb Municipal Finance, LLC, for the purpose of assisting with the Annual Levy of the District, and to prepare and file a report with the City Clerk in accordance with the Assessment Law. Staff requests that the City Council direct Webb Municipal Finance, LLC, to prepare and file with the City Clerk the Engineer’s Annual Levy Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with the Assessment Law.

The improvements include the construction, operation, maintenance and servicing of landscaping, sidewalks, trees, street lighting, park facilities, parkways, street tree lighting and appurtenant facilities.

Services and maintenance include, but are not limited to, personnel, electrical energy and lease costs from Edison, utilities such as water and gas, equipment, maintenance vehicles, materials, contracting services, and other items necessary for the satisfactory operation of the facilities.

FISCAL IMPACT:

Item Number: 5.

SR-24-091
The cost of professional services to initiate proceedings for the levy and collection of assessments for the Fiscal Year 2024-25 Districts’ Annual Levy authorization is included in the Fiscal Year 2024-25 budget for the administration of the Districts.

ATTACHMENTS:
1) Resolution of Initiation for Citywide LMD No. 1
2) Resolution of Initiation for LMD No. 2
3) Resolution of Initiation for DAD No. 1
4) Council Properties Map - LMD No. 1
5) Council Properties Map - LMD No. 2
6) Council Properties Map - DAD No. 1
Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

RESOLUTION NO. 2024-____

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

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, INITIATING PROCEEDINGS FOR

THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE CITYWIDE LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 1, ZONE A AND ZONE B FOR FISCAL YEAR 2024-25
WHEREAS, the City Council has by previous Resolutions formed and levied annual assessments for the Citywide Landscape and Lighting Maintenance District No. 1, Zone A and Zone B (hereafter referred to as the “District”), pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (hereafter referred to as the “Act”) that provides for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto; and
WHEREAS, the City Council has retained Webb Municipal Finance, LLC, for the purpose of assisting with the Annual Levy of the District, and to prepare and file a report with the City Clerk in accordance with the Act; and

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE DISTRICT, PURSUANT TO CHAPTER 3, SECTION 22624 OF THE ACT, AS FOLLOWS:

Section 1. Recitals
That the Recitals set forth above are true and correct.

Section 2. Annual Levy Report
That the City Council hereby orders Webb Municipal Finance, LLC to prepare and file with the City Clerk the Engineer’s Annual Levy Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with Chapter 3, Section 22622 of the Act.

Section 3. District Improvements
That the improvements provided within the District may include, but are not limited to, landscaping, sidewalks, trees, street lighting, park facilities, parkways, street tree lighting and appurtenant facilities. Services and maintenance provided shall include all necessary service, operation, administration, and maintenance required to keep the above-mentioned improvements in a healthy, vigorous, and satisfactory working condition.

Section 4. Severability
That the City Council declares that, should any provision, section, paragraph, sentence, or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences, or words of the Resolution as hereby adopted shall remain in full force and effect.

Section 5. Effective Date
That this Resolution shall take effect upon its adoption.

Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

Section 6. Certification
That the City Clerk shall certify as to the adoption of this Resolution and shall cause the same to be processed in the manner required by law.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting duly held on the sixteenth day of April 2024 by the following vote:

AYES:

NAYS:

ABSENT:

RECUSED:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on April 16, 2024, of which all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NAYS:

ABSENT:

RECUSED:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true, and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded, or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: April 16, 2024
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

RESOLUTION NO. 2024-______

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

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, INITIATING PROCEEDINGS FOR

THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE DESERT HOT SPRINGS LANDSCAPE AND LIGHTING MAINTENANCE DISTRICT NO. 2 FOR FISCAL YEAR 2024-25
WHEREAS, the City Council has by previous resolutions formed and levied annual assessments for the Desert Hot Springs Landscape and Lighting Maintenance District No. 2 (hereafter sometimes referred to as the “District”), pursuant to the provisions of the Landscape and Lighting Act of 1972, Part 2, Division 15 of the California Streets and Highways Code (commencing with Section 22500) (hereafter referred to as the “Act”), and Articles XIIIC and XIIID of the Constitution of the State of California (together, the “Constitution”) (the Act and the Constitution are referred to collectively as the “Assessment Law”), that provides for the levy and collection of assessments by the County of Riverside for the City of Desert Hot Springs to pay the maintenance and services of all improvements and facilities related thereto; and
WHEREAS, the City Council has retained Webb Municipal Finance, LLC for the purpose of assisting with the Annual Levy of the District, and to prepare and file a report with the City Clerk in accordance with the Assessment Law.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1. Recitals
That the Recitals set forth above are true and correct.

Section 2. Annual Levy Report
That the City Council hereby orders Webb Municipal Finance, LLC, to prepare and file with the City Clerk the Engineer’s Annual Levy Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with the Assessment Law.

Section 3. District Improvements
That the maintenance of improvements within Landscape and Lighting Maintenance District No. 2, Zones 1 through 19, shall include, but shall not be limited to, trees, sidewalks, parkways, landscaped slopes and park facilities, and the operation and maintenance of the street lighting system within the District and appurtenant facilities. Services provided include all necessary services, operation, administration and maintenance required to keep the improvements and facilities in a healthy, vigorous and satisfactory working condition.

Section 4. Severability
That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of the Resolution as hereby adopted shall remain in full force and effect.

Section 5. Effective Date
That this Resolution shall take effect upon its adoption.

Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

Section 6. Certification
That the City Clerk shall certify as to the adoption of this Resolution and shall cause the same to be processed in the manner required by law.

Section 7. Repeal of Conflicting Resolutions
That the City Council hereby repeals any prior resolutions which may conflict with this Resolution.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting duly held on the sixteenth day of April 2024 by the following vote:

AYES:

NAYS:

ABSENT:

RECUSED:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true, and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on April 16, 2024, of which all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NOES:

ABSENT:

RECUSED:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: April 16, 2024
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

RESOLUTION NO. 2024-____

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

COUNTY OF RIVERSIDE, STATE OF CALIFORNIA, INITIATING PROCEEDINGS FOR

THE LEVY AND COLLECTION OF ASSESSMENTS FOR THE DRAINAGE ASSESSMENT DISTRICT NO. 1 FOR FISCAL YEAR 2024-25
WHEREAS, the City Council has by previous resolutions formed and levied annual assessments for Drainage Assessment District No. 1 (hereafter sometimes referred to as the “District”), pursuant to the terms and provisions of the Benefit Assessment Act of 1982, Chapter 6.4, Division 2, Title 5 of the California Government Code (commencing with Section 54703) (the “1982 Act”), Article XIIID of the Constitution of the State of California (“Article XIIID”) and the Proposition 218 Omnibus Implementation Act (Government Code Section 53750 and following) (the “Implementation Act”) (the 1982 Act, Article XIIID and the Implementation Act are referred to collectively as the “Assessment Law”), in what is known and designated as the Drainage Assessment District No. 1 (the “District”); and WHEREAS, the City Council has retained Webb Municipal Finance, LLC, for the purpose of assisting with the Annual Levy of the District, and to prepare and file a report with the City Clerk in accordance with the Assessment Law.

NOW, THEREFORE BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL, AS FOLLOWS:

Section 1. Recitals
That the Recitals set forth above are true and correct.

Section 2. Annual Levy Report
That the City Council hereby orders Webb Municipal Finance, LLC, to prepare and file with the City Clerk the Engineer’s Annual Levy Report concerning the levy and collection of assessments for the District for the Fiscal Year commencing July 1, 2024, and ending June 30, 2025, in accordance with the Assessment Law.

Section 3. District Improvements
That the improvements provided within Drainage Assessment District No. 1, Zones 1 through 17 may include, but are not limited to: flood control facilities, fences, masonry walls, and associated appurtenant facilities. Services provided include all necessary services, operations, administration and maintenance, including graffiti removal, required to keep the above-mentioned improvements and facilities in a healthy, vigorous and satisfactory working condition.

Section 4. Severability
That the City Council declares that, should any provision, section, paragraph, sentence or word of this Resolution be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of the Resolution as hereby adopted shall remain in full force and effect.

Section 5. Effective Date
That this Resolution shall take effect upon its adoption.

Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

Section 6. Certification
That the City Clerk shall certify as to the adoption of this Resolution and shall cause the same to be processed in the manner required by law.

Section 7. Repeal of Conflicting Provisions
That all the provisions heretofore adopted by the City Council that are in conflict with the provisions of this Resolution are hereby repealed.

PASSED AND ADOPTED by the City Council of the City of Desert Hot Springs at a regular meeting duly held on thesixteenth day of April 2024 by the following vote:

AYES:

NAYS:

ABSENT:

RECUSED:

ATTEST: APPROVED:

Jerryl Soriano, City Clerk Scott Matas, Mayor
APPROVED AS TO FORM:

Tuan-Anh Vu, City Attorney
Item Number: 5.

Resolution No. 2024-______
Date Adopted: April 16, 2024

CERTIFICATE OF CLERK
I, Jerryl Soriano, City Clerk of the City of Desert Hot Springs, do hereby certify that the foregoing is a full, true and correct copy of a resolution duly adopted at a regular meeting of the City Council of the City of Desert Hot Springs duly and regularly held at the regular meeting place thereof on April 16, 2024, of which all of the members of said City Council had due notice, and at said meeting said resolution was adopted by the following vote:

AYES:

NAYES:

ABSENT:

RECUSED:

I do hereby further certify that an agenda of said meeting was posted at least 72 hours before said meeting at 11999 Palm Drive, Desert Hot Springs, CA 92240, a location freely accessible to members of the public, and a brief description of said resolution appeared on said agenda.

I do hereby further certify that I have carefully compared the foregoing copy with the original minutes of said meeting on file and of record in my office; that said copy is a full, true and correct copy of the original resolution adopted at said meeting and entered in said minutes; and that said resolution has not been amended, modified, rescinded or revoked in any manner since the date of its adoption, and the same is now in full force and effect.

Dated: April 16, 2024
City Clerk of the City of Desert Hot Springs
[SEAL]
Item Number: 5.

S
ource:CountyofRiversideGIS,2024.

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D

PIERSONBLVD
GG
RB
RB
RB
RB
RB
SM
JP
RN
M:\GIS-Assessment\DHS\LMD1
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_
Properties.mxd; Map revised May 23, 2023.
02,0004,0006,000Fe
et
LEGEND
LMD1ZoneA(CityBoundary)
LMD1ZoneB
CouncilMember'sProperty
500FootBufferof
CouncilMember'sProperty
RB-RussellBetts
GG-GaryGardner
SM-ScottMatas
JP-JanPye
RN-RogerNunez
CityofDesertHotSprings
LMD1withCouncilMemberProperties
Item Number: 5.

City of Desert Hot Springs
LMD No. 2 with Council Member Properties Source: County of Riverside GIS, 2024.

PALM DR

PIERSON BLVD

WEST DR

N INDIAN CANYON DR
8TH ST

HACIENDA DR

LITTLE MORONGO RD
4TH ST

MISSION LAKES BLVD
5TH ST
1ST ST
12TH ST

MESQUITE AVE

VERBENA DR
7TH ST

DESERT VIEW AVE

CHOLLA DR
13TH AVE
15TH AVE
14TH AVE

MISSION CREEK RD

IRONWOOD DR

KAREN AVE

SCENIC DR

ATLANT CI AVE

WESTERN AVE
SANTA
CRUZ
RD
8TH AVE

POMELO DR

MIRACLE HILL RD

YUCC A DR

CAMINO CAMPANERO

PROMENADE DR

VALENCIA DR

SKYLINE
DR

CA LLE CERRITO

PARK LN

VIEW RD
16TH AVE

PIERSON BLVD
ZONE 13
ZONE 3
ZONE 1
ZONE 12
ZONE 5
ZONE 6
ZONE 4
ZONE 7
ZONE 2
ZONE 14
ZONE 14
ZONE 10
ZONE 17
ZONE 15
ZONE 14
ZONE 18
ZONE 11
ZONE 16
ZONE 8
ZONE 9
ZONE 19
RB
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M:\GIS-Assessment\DHS\LLM
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0 2,000 4,000 6,000
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ZONE 1
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ZONE 19
Council Member's
Property
500 Foot Buffer
RB - Russell Betts
GG - Gary Gardner
SM - Scott Matas
JP - Jan Pye
RN - Roger Nunez
Item Number: 5.

Source: County of Riverside GIS, 2024

PALM DR

PIERSON BLVD

WEST DR

N INDIAN CANYON DR

HACIENDA DR

LITTLE MORONGO RD
4TH ST

MISSION LAKES BLVD
5TH ST
1ST ST
12TH ST

MESQUITE AVE

VERBENA DR
7TH ST

DESERT VIEW AVE

CHOLLA DR
13TH AVE
15TH AVE
14TH AVE

MISSION C REEK RD

IRONWOOD DR

KAREN AVE

SCENIC DR

ATLANT CI AVE

WESTERN AVE

SANTA CRUZ RD
8TH AVE

MIRACLE HILL RD

YUCCA DR

CAMINO CAMPANERO

PROMENADE DR

VALENCIA DR

CALIENTE DR

SKYLINE
DR

CALLE CERRITO

VIEW RD
16TH AVE

PIERSON BLVD
ZONE 12
ZONE 1
ZONE 11
ZONE 4
ZONE 5
ZONE 2
ZONE 6
ZONE 13
ZONE 13
ZONE 9
ZONE 3
ZONE 16
ZONE 14
ZONE 8
ZONE 13
ZONE 17
ZONE 10
ZONE 15
ZONE 7
GG
RB
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JP
RN
M:\GIS-Assessment\DHS\D
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LEGEND
City Boundary
ZONE 1
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500 Foot Buffer of
Council Member's Property
RB - Russell Betts
GG - Gary Gardner
SM - Scott Matas
JP - Jan Pye
RN - Roger Nunez
City of Desert Hot Springs
DAD No. 1 with Council Member Properties
Item Number: 5.

SR-24-098
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: City Council Regular Meeting Minutes: April 2, 2024 RECOMMENDATION:

Approve the Minutes as presented; or as corrected.

ATTACHMENTS:

Draft City Council Regular Meeting Minutes - April 2, 2024 Item Number: 6.

City of Desert Hot Springs

DRAFT ACTION MINUTES
City Council Regular Meeting
6:00 PM - Tuesday, April 2, 2024
Council Chambers
CLOSED SESSION - 5:30 P.M.

CALL TO ORDER
Mayor Matas called the Closed Session to order at 5:30 PM

ROLL CALL

Present:

Council Members: Russell Betts, Gary Gardner, Roger Nuñez (arrived after Roll Call) Mayor Pro Tem: Jan Pye
Mayor: Scott Matas

PUBLIC COMMENTS
None.

Tuan-Anh Vu, City Attorney, announced the Closed Session item.

CLOSED SESSION:

1. CONFERENCE WITH LABOR NEGOTIATORS
Pursuant to Government Code §54967.6
Agency Designated Representatives: City Manager, Frank Luckino City Attorney, Tuan-Anh Vu
Employee Organization: Desert Hot Springs Police Officers' Association (DHSPOA)
RECESS
REGULAR SESSION - 6:00 P.M.

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

Item Number: 6.

City Council
April 2, 2024

ROLL CALL

Present:

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

INVOCATION
Pastor Matthew Dudley gave the Invocation.

PLEDGE OF ALLEGIANCE
Councilmember Gardner led the Pledge of Allegiance.

CITY ATTORNEY REPORT ON CLOSED SESSION
Tuan-Anh Vu, City Attorney, advised that there was no reportable action.

APPROVAL OF AGENDA
ACTION: Approve the April 2, 2024 Regular Meeting agenda, and approve the Consent Calendar except for Item 8.

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

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

PUBLIC COMMENTS
Elliot Lew Griffin spoke regarding an encounter with law enforcement.

Barbara Valadez expressed thanks to the City and inquired about the Furbee Aquatic Center and veterinary services.

Ornanong Chalermrat introduced herself and expressed thanks to the City.

Tom Moen spoke regarding Hot Springs Park.

Martin Carreon spoke regarding alleys and developers.

Dana Johnson invited the community to the Annual Food Now Chili Cook-Off event.

Item Number: 6.

City Council
April 2, 2024

CITY MANAGER REPORT
Frank Luckino, City Manager, provided updates regarding the Senior Center analysis and Hyundae Hotel.

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

Daniel Porras, Assistant City Manager, provided road repair updates.

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

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

Mayor Pro Tem Pye reported on the various meetings and events she attended.

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

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

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

PUBLIC HEARINGS:

3. Ordinance Amending Chapter of Title 17, Zoning Ordinance: “Chapter

17.14 (Mixed-Use Districts)"
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 17.14 (Mixed-Use Districts)".of Title 17, Zoning Code.

Staff Report - SR-24-073 - Pdf
Travis Clark, Community Development Director, presented the staff report and responded to questions.

Mayor Matas opened the Public Hearing.

Item Number: 6.

City Council
April 2, 2024
Martin Carreon spoke opposed.

Mayor Matas closed the Public Hearing.

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

4. A Resolution Adopting New User Fees Related to Annual Cannabis Regulatory Permit Renewal
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) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, adopting the new user fees related to annual cannabis regulatory permit renewal and the nexus study prepared.

Staff Report - SR-24-052 - Pdf
Christina Newsom, Compliance Director, presented the staff report.

Mayor Matas opened the Public Hearing.

There was no public testimony.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation and adopt Resolution No. 2024-004.

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

5. A Resolution Amending Cannabis Regulatory Permit Fees Recommendation:
1) Staff Report;
Item Number: 6.

City Council
April 2, 2024
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) Adopt a Resolution of the City Council of the City of Desert Hot Springs, California, adopting amended fees related to Cannabis Regulatory Permits and the Nexus Study prepared therefor.

Staff Report - SR-24-060 - Pdf
Christina Newsom, Compliance Director, presented the staff report.

Mayor Matas opened the Public Hearing.

Martin Carreon spoke in a neutral position.

Mayor Matas closed the Public Hearing.

ACTION: Approve Staff recommendation and adopt Resolution No. 2024-005.

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
ADMINISTRATIVE CALENDAR:

6. An Ordinance Amending Title 3 "Revenue and Finance" of the Desert Hot Springs Municipal Code Concerning Cannabis Facilities
Recommendation:

Introduce for First Reading, read by title only: " An Ordinance of the City Council of the City of Desert Hot Springs, California, amending Title 3 "Revenue and Finance" of the Desert Hot Springs Municipal Code Concerning Cannabis Facilities."
Staff Report - SR-24-075 - Pdf
Christina Newsom, Compliance Director, presented the staff report and responded to questions.

Martin Carreon spoke.

ACTION: Approve Staff recommendation.

Moved by Council Member Pye
Seconded by Council Member Gardner
Item Number: 6.

City Council
April 2, 2024
Carried 5-0 by the following votes:

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

7. Public Safety Campus Project Options
Recommendation:
1) Reject all bid proposals for the Public Safety Campus 2) Authorize Staff to develop and finalize a phasing plan for the Public Safety Campus, in which Phase 1 of the Public Safety Campus includes the construction of the Police Department Annex Building only but still maintains operational functionality of the entire site. 3) Authorize Staff to proceed with re-design of plans and specifications accordingly and re-advertise Request For Proposal for Construction of Police Annex Project.

Staff Report - SR-24-078 - Pdf
Daniel Porras, Assistant City Manager, presented the staff report.

Elliot Lew Griffin spoke opposed.

Martin Carreon spoke.

Tom Moen spoke.

A discussion ensued.

ACTION: Approve Option 2.

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

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

8. City Council Regular Meeting Minutes: March 19, 2024 Staff Report - SR-24-076 - Pdf
ACTION: Approved the Minutes as presented.

9. Community Development Block Grant (CDBG) Program -HEP Reallocation and Furbee Pool Project Funds Advancement Request Recommendation:
1) Authorize the reallocation of CDBG funds from Mission Springs Park to the Home Enhancement Program; and
2) Adopt a Resolution of the City Council authorizing participation in and Item Number: 6.

City Council
April 2, 2024
authorizing the City Manager to approve all agreements and necessary documents associated with the Community Development Block Grant (CDBG) Advancement request.

Staff Report - SR-24-077 - Pdf
Frank Luckino, City Manager, presented the staff report and responded to questions.

Elliot Lew Griffin spoke opposed.

Martin Carreon spoke.

A discussion ensued.

ACTION: Approve Staff recommendation and adopt Resolution No. 2024-006.

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

10. Second Reading and Adoption of An Ordinance Amending Chapter of Title 17, Zoning Ordinance: “Chapter 17.04 (General Provisions)" Staff Report - SR-24-066 - Pdf
ACTION: Approved Second Reading, read by title only and adopt Ordinance No. 798: “An Ordinance amending "Chapter “Chapter 17.04 (General Provisions).”

11. Delegation of Investment Authority to the City Treasurer Staff Report - SR-24-074 - Pdf
ACTION: Approved Staff recommendation and adopt Resolution No. 2024- 007: A Resolution of the City Council approving delegation of investment authority and other related duties to the City Treasurer, as authorized by the City’s Investment Policy, and approve and adopt the attached Investment Policy for Fiscal Year 2024-2025.

PUBLIC COMMENTS
None.

ADJOURN
Mayor Matas adjourned the meeting at 7:55 PM __________________________ Jerryl Soriano, CMC, City Clerk
Item Number: 6.

SR-24-082
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: City Manager
Prepared by: Frank Luckino, City Manager
Subject: Visit Greater Palm Springs (VGPS) Amendment to Section 12 of the Amended and Restated Joint Powers Agreement Regarding Contribution Schedule for Joint Powers Authority Members
RECOMMENDATION:

Approve an amendment to Section 12 of the Amended and Restated Joint Powers Agreement With Visit Greater Palm Springs regarding contribution schedule for Joint Powers Authority members.

BACKGROUND:

Visit Greater Palm Springs (VGPS) staff recommended adding the City of Coachella to the JPA Executive Committee. This recommendation was based on the new economic development diversity recruitment responsibilities and the addition of short-term vacation rentals in the City of Coachella.

During the JPA agreement amendment process VGPS staff learned that when the JPA was first established, an entry and operation fee were required of all JPA member agencies.

Upon executing the Joint Powers Agreement on February 1, 1989, the original JPA members (eight cities) paid an upfront fee to help establish the organization. Commencing July 1, 1989, and quarterly thereafter, each JPA member agency contributed an amount based on a funding formula.

The interim funding fee and interim operation fee were divided among the JPA member cities. The interim fee was based on .55% x gross sales and the operation fee was based on the interim fee multiplied by 15.62%. Please see the original interim funding schedule below:

Item Number: 7.

SR-24-082
Riverside County joined the JPA Executive Committee in 1995. The amendment to the Joint Powers Agreement approving and adopting the membership of Riverside County established a minimum contribution of $30,000. The minimum annual contribution was subject to an annual increase at a rate of 5% per year. Outlined below are the historical payments made by Riverside County.

When the TBID was established in 2009, the JPA formula was reduced by 75%. Riverside County annual contribution amount was reduced to align with the reduction of the JPA formula. Riverside County paid $12,500 each year since FY 12/13.

VGPA has no record why Riverside County has not used the established JPA formula that is currently .015% of gross rental revenues for non-convention lodging and .035% for convention lodging.

For reference, the Riverside County estimated JPA formula contribution for FY 22/23 would have been $25,093.

Based on the City of Coachella’s historical transient occupancy tax (TOT) budget figures and using the JPA formula, the following table outlines what Coachella’s annual JPA contribution would have been for previous years. These calculations are for reference:

Item Number: 7.

SR-24-082
Based on the formula from FY 88/89 and the most recent estimated TOT collections, the initial fee charged to Coachella to join the JPA Executive Committee would be as follows:

The City of Coachella entry fee calculation is based on their FY 23/24 gross revenues estimate. $5,555,555.00 x .55% = $30,555 plus the operation fee ($30,555 x 15.62%) = $4,772. The total amount would be $35,327.

VGPS staff are recommending any new member agency should pay the entry fee and the fee should be paid within 30 days of joining the JPA Executive Committee. Attached exhibits include Exhibit 1 (staff report from resolution), Exhibit 2 (Resolution No. JPA 2024-003), and Exhibit 3 (1989 JPA Agreement).

DISCUSSION:

VGPS Staff recommended that due to the additional responsibilities of economic development recruitment and the broader benefits recognized by the member agencies, a minimum annual JPA member contribution of $35,000 or the current JPA formula, whichever is greater should be required by all member agencies, including Riverside County. The minimum fee would increase annually based on the CPI for Southern California. The JPA formula would not be subject to the CPI adjustment. The annual JPA member contribution, whether the minimum fee or formula fee, would be paid quarterly to the organization and adjusted at the end of the fiscal year based on actual gross room revenues.

Outlined below are the current JPA contribution estimates. These figures may fluctuate depending on the final gross revenues and are provided for reference.

Item Number: 7.

SR-24-082
FISCAL IMPACT:

The fiscal impact would consist of the annual JPA membership cost of $42,841.99. A minimum annual JPA member contribution of $35,000 or the current JPA formula, whichever is greater should be required by all member agencies, including Riverside County. The minimum fee would increase annually based on the CPI for Southern California. The JPA formula would not be subject to the CPI adjustment. The annual JPA member contribution, whether the minimum fee or formula fee, would be paid quarterly to the organization and adjusted at the end of the fiscal year based on actual gross room revenues.

For FY 22-23, the City paid $56,813.88 for this JPA membership dues. To date, the City paid $42,842 towards the FY 23-24 membership dues based on estimated gross room revenues for the year. In August 2024, the City will receive an additional invoice to adjust the dues amount based on actual gross room revenues.

ATTACHMENTS:
1) 2nd Amended and Restated JPA Agreement
2) Redlined 2nd Amended and Restated JPA Agreement
3) VGPS Staff Report - March 2024
4) Resolution No. JPA 2024-003 Executive Committee Resolution Re Contribution (SBEMP) 5) 1989 JPA Agreement
Item Number: 7.

1 VISIT GREATER PALM SPRINGS

JOINT POWERS AGREEMENT
(“Second Amended and Restated Agreement”)
A California Joint Powers Authority
Created Pursuant to California Government Code Section 6500 et seq. _________________, 2024
Item Number: 7.

i

TABLE OF CONTENTS
RECITALS........................................................................................................................... 1 AGREEMENT..................................................................................................................... 1 Section 1 Definitions ....................................................................................... 1 Section 2 Incorporation of Recitals ................................................................. 3 Section 3 Purpose ............................................................................................ 3 Section 4 Name................................................................................................ 3 Section 5 First Amended and Restated Agreement Superseded – Effective Date 3 Section 6 Termination...................................................................................... 3 Section 7 JPA Members.................................................................................. 4 Section 8 Additional Members........................................................................ 4 Section 9 Governing Body............................................................................... 4 Section 10 JPA Executive Committee – Powers and Duties............................. 4 Section 11 Territorial Boundaries...................................................................... 5 Section 12 Contributions ................................................................................... 6 Section 13 Withdrawal ...................................................................................... 6 Section 14 Separate Entity................................................................................. 6 Section 15 Powers of the JPA............................................................................ 7 Section 16 Power to Invest................................................................................ 9 Section 17 Bonding ........................................................................................... 9 Section 18 Treasurer and Auditor – Designations............................................. 9 Section 19 Treasurer – Duties and Responsibilities........................................... 9 Section 20 Independent Audit ......................................................................... 10 Item Number: 7.

ii
Section 21 Auditor’s Duties............................................................................. 10 Section 22 Severability .................................................................................... 10 Section 23 Waiver ........................................................................................... 10 Section 24 Amendments.................................................................................. 10 Section 25 Ambiguities or Uncertainties......................................................... 11 Section 26 Applicable Law.............................................................................. 11 Section 27 Venue............................................................................................. 11 Section 28 Notices........................................................................................... 11 Section 29 Counterparts................................................................................... 12 Section 30 Privileges and Immunities ............................................................. 12

EXHIBIT A
Territorial Boundaries.......................................................................................................... 16 Item Number: 7.

This Second Amended and Restated Joint Powers Agreement (this “Agreement”) is entered into by and between the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, each an independent municipal corporation located in the County of Riverside, State of California, and the County of Riverside, a political subdivision of the State of California, pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the California Government Code. The Joint Powers Authority is known as “Visit Greater Palm Springs” (“VGPS”). The parties to this Agreement are individually referred to herein as “JPA Member” and collectively as “JPA Members.”

RECITALS
WHEREAS, pursuant to the Joint Exercise of Powers Act, if authorized by their legislative or other governing bodies, two or more public agencies which include, but are not limited to, a county or city, may jointly exercise any power common to the contracting parties via a Joint Powers Agreement creating a Joint Powers Authority (“JPA”); and WHEREAS, the JPA Members entered into the original joint powers agreement on February 8, 1989, to jointly encourage, promote, and to do such other things as might be necessary to enhance, to the greatest extent possible, all aspects of the hospitality, convention and tourism industry in the Coachella Valley and to attract visitors from a world- wide market, all to the benefit of the member organizations and their citizens via the exercise of all the expressed and implied powers the JPA Members have in common; and WHEREAS, it is intended by the JPA Members that this Agreement shall be amendatory of the First Amended and Restated Joint Powers Agreement, dated January 20, 2016, including any subsequent amendments (“First Amended and Restated Agreement”), and shall restate, amend and supersede the First Amended and Restated Agreement in its entirety as of the Effective Date; and
WHEREAS, on or about _____________, 2024, it was determined by the VGPS President and Chief Executive Officer and his staff that at least two thirds of the entire VGPS Executive Committee and all of the JPA Members voted to (i) add the City of Coachella as a JPA Member, (ii) add the City of Coachella to the territorial boundaries of the JPA; and (iii) amend the purpose of JPA as set forth below, among additional provisions as stated herein; and WHEREAS, on or about _____________, 2024, it was determined by the VGPS President and Chief Executive Officer and his staff that at least two thirds of the entire VGPS Executive Committee and all of the JPA Members voted to approve for adoption and execution this Second Amended and Restated Joint Powers Agreement.

NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and intending to be legally bound hereby, the JPA Members hereby covenant and agree as follows:

Item Number: 7.

AGREEMENT
Section 1. Definitions
The following words, terms and phrases shall have the following meanings:
“Additional JPA Members” shall mean qualified municipalities that may be added as members of JPA as described in Section 8.
“Board of Directors” shall mean the Board of Directors of the Greater Palm Springs Business Alliance (“GPSBA”) comprised of persons associated with the local hospitality industry for the purposes described in Section 10.
“Convention Hotel” shall mean a hotel, motel or similar property with 50 rooms or greater.
“Joint Exercise of Powers Act” shall mean California Government Code sections 6500-6536.
“JPA” shall mean the Joint Powers Authority and may also be referred to herein as VGPS.
“JPA Executive Committee” shall mean the JPA’s governing body formed for the purposes and having the powers and duties set forth in Section 10. “JPA Member” shall mean a municipality that is party to this Agreement. “JPA Members” shall mean, collectively, the municipalities that have entered into this Agreement.
“JPA Member Contributions” shall mean the annual contribution amounts duly established pursuant to Section 12.
“Lodging Establishments” shall mean any structure, which is occupied or intended or designed for use or occupancy by transients, including but not limited to hotel, resort, motel, inn and individually owned structures; single family homes, duplexes, triplexes, mobile homes, public or private clubs, campgrounds, mobile homes or house trailers at fixed locations, or other like structure or portion thereof and dwelling utilized for short term rental and subject to local transient occupancy tax.
“Partner” shall mean a non-governmental entity whose business and activities are directly related to the convention or tourism industry and the purposes of this Agreement. “President and Chief Executive Officer” shall mean the individual employed by VGPS, who is responsible for professionally supervising, managing, and administering VGPS’s dayto- day affairs as described in paragraph (e) of Section 10 and elsewhere in this Agreement. “TBID” shall mean Tourism Business Improvement District assessment. “Technical Advisory Committee” or “TAC” shall mean the committee which may be Item Number: 7.

appointed by a majority vote of VGPS’s JPA Executive Committee for the purposes described in paragraph (d) of Section 10.
“Treasurer” shall mean the individual appointed by VGPS’s JPA Executive Committee to serve the functions described at Section 19 and may be the same individual appointed as Auditor.
“VGPS Fiscal Year” shall mean the period commencing July 1 of every year and ending June 30 of the following calendar year.
“Visit Greater Palm Springs” or “VGPS” shall mean the Joint Powers Authority formed by the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, and the County of Riverside.

Section 2. Incorporation of Recitals
The foregoing recitals are incorporated into this Agreement by this reference as though fully set forth herein.

Section 3. Purpose
The purpose of VGPS is to benefit all JPA Members and their constituents by jointly:
(a) Marketing, attracting, encouraging, promoting, and doing such other things as might be necessary to enhance, to the greatest extent possible, all aspects of the hospitality, convention, and tourism industry in the Coachella Valley and to attract visitors from national and international markets; and
(b) Doing such other things to promote and strengthen all aspects of the regional economy related to the hospitality, convention and tourism industry, and the diversification of the entire economy of the Coachella Valley.

Section 4. Name
The name of the JPA shall be “Visit Greater Palm Springs” (“VGPS”) or such other name that may be changed at any time by a resolution approved and adopted by a two-thirds vote of the entire JPA Executive Committee.

Section 5. First Amended and Restated Agreement Superseded - Effective Date It is intended by the JPA Members that this Agreement shall be amendatory of the First Amended and Restated Agreement and shall restate, amend and supersede the First Amended and Restated Agreement. Upon its Effective Date, this Agreement shall govern the relationship of the JPA Members. This Agreement shall become effective on the date this Agreement is approved by a two-thirds vote of the entire membership of the JPA Executive Committee and a two-thirds vote of the JPA Members’ legislative bodies (“Effective Date”).

Section 6. Termination
Item Number: 7.

(a) This Agreement may be terminated by unanimous vote of all the JPA Members’ legislative bodies provided, however, the foregoing shall not be construed as limiting the rights of a JPA Member to withdraw its membership in the JPA, and thus terminate this Agreement with respect to such withdrawing JPA Member as described in Section 13; and (b) Pursuant to section 6512 of the Government Code, upon termination of this Agreement and dissolution of the JPA, any surplus money on hand with the JPA shall be returned to the JPA Members’ treasuries in proportion to the JPA Member Contributions made by the respective JPA Member to the JPA.
(c) Upon termination of this Agreement and dissolution of the JPA, all of the resources of the JPA shall be used in an effort to ensure that 100% of the pension liability is funded. Pursuant to Government Code section 6508.2, any remaining obligations of the JPA pension plan and other post-employment benefit liabilities shall be assumed by JPA Members.

The JPA will maintain a policy of funding its pension liability at a minimum of 85% and will promptly notify JPA Members at any time this threshold is not met.

Section 7. JPA Members
The members of the JPA shall consist of the parties to this Agreement which include the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, and the County of Riverside.

Section 8. Additional Members
Additional JPA Members that qualify to join a joint powers authority under the Joint Exercise of Powers Act may be added as JPA Members at any time by a two-thirds vote of the of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.

Section 9. Governing Body
(a) The governing body of the JPA shall be known as the JPA Executive Committee and it shall be comprised of: (i) a duly elected or appointed council member of each city JPA Member; and (ii) a member ofthe Riverside County Board of Supervisors. (b) Only those members of the JPA Executive Committee, whose agencies pay the JPA Member Contributions, as set forth in this Agreement, shall be entitled to vote.

Section 10. JPA Executive Committee - Powers and Duties The JPA Executive Committee, consistent with this Agreement and all applicable laws, shall exercise all the powers and perform all duties necessary to conduct the business of the JPA, either directly or by delegation of its authority, as the JPA Executive Committee deems appropriate, which shall include but not be limited to the following:
(a) Adopt bylaws or rules of procedure to provide for the organization and administration of the JPA, as the JPA Executive Committee deems appropriate by a majority vote of the JPA Executive Committee;
Item Number: 7.

(b) Approve and adopt a budget for the JPA prior to the commencement of the JPA’s subsequent fiscal year, the term of which shall be set by a majority vote of the JPA Executive Committee;
(c) Delegate authority to manage destination activities and the daily operations of VGPS to GPSBA, including but not limited to strategic development, marketing, travel trade, public relations, human resources and group sales, and employ an individual who shall serve as the President and Chief Executive Officer of the JPA, who shall be responsible for professionally supervising, managing and administering the day-to-day affairs of the JPA, hire and fire JPA employees, retain consultants and independent contractors and perform such other functions as needed. Termination of the President & Chief Executive Officer will require a majority vote of the JPA Executive Committee and GPSBA Board of Directors. The Board of Directors of the GPSBA shall consist of any number of persons associated with the local hospitality industry, which may include, but not be limited to, those who own, manage, govern or serve in senior staff positions for Lodging Establishments or businesses, eateries, public and private regional sports facilities, public and private museums, public and private convention and conference facilities, commercial air transport facilities, commercial ground transportation businesses, plus any other persons from any other industry deemed appropriate. The GPSBA shall manage the destination operations of VGPS, and shall be governed by bylaws, as amended from time to time.

Activities other than tourism related activities, such as but not limited to economic diversification efforts, shall remain the responsibility of the JPA and shall be governed by the JPA Members and/or their assignee(s) as determined by the JPA Executive Committee. (d) Appoint from time to time, if deemed necessary by a majority vote of the JPA Executive Committee, a Technical Advisory Committee (TAC) consisting of a staff member employed by each JPA Member as designated by the respective JPA Executive Committee member, for purposes of advising the JPA Executive Committee on any technical issues of the JPA that the JPA Executive Committee may need advice on; (e) Retain an individual licensed to practice law in the State of California who shall serve as General Legal Counsel for the JPA and who shall assist the JPA with any legal assistance as may be requested by the JPA Executive Committee or President/Chief Executive Officer or their authorized designees; and
(f) Create any committees, sub-committees, and advisory committees, as deemed necessary by a majority vote of the JPA Executive Committee, to advance and/or achieve the purposes set forth in this Agreement.
(g) Pursuant to Section 6509 of the Government Code, the powers set forth in this Agreementshall be subject to the restrictions upon the manner of exercising such similar powers as are imposed on the City ofRancho Mirage in the exercise ofsimilar powers.

Section 11. Territorial Boundaries
The JPA’s territorial boundaries include the lands situated within the unincorporated areas of the Coachella Valley situated in the County of Riverside and the lands situated within the jurisdictional boundaries of the cities of Cathedral City, Coachella, Desert Hot Springs, Item Number: 7.

Indian Wells, Indio, La Quinta, Palm Springs, Palm Desert and Rancho Mirage, as depicted in Exhibit A of this Agreement. The territorial boundaries of the VGPS may only be changed by a two-thirds vote of the JPA Executive Committee and a unanimous vote ofthe JPA Members’ legislative bodies.

Section 12. Contributions
(a) Initial Membership Fee. Each new JPA Member shall pay to the JPA a one-(1) time entry fee and operation fee calculated as follows:
(i) Entry Fee: The “Entry Fee” shall be calculated by multiplying the new JPA Member’s current fiscal year’s gross revenue estimate by .55%. (ii) Operation Fee: The “Operation Fee” shall be calculated by multiplying the Entry Fee by 15.62%.

The sum of the Entry Fee and the Operation Fee is due within thirty (30) days of a new JPA Member joining the JPA.
(b) Annual Contribution. Each JPA Member shall pay to the JPA (i) the greater of $35,000 each year, or (ii) the applicable contribution amounts as set forth in the formula below, which may only be modified by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies. JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.

A contribution from each ofthe JPA Members is a funding mechanism equal to:
.0015 x Gross Room Rental Revenue for Lodging Establishments excluding Convention Hotels, and
.0035 x Gross Room Rental Revenue for Convention Hotels (c) The Gross Room Rental Revenue described herein shall not include any transient occupancy tax rebate incentives provided by the JPA Members.

Section 13. Withdrawal
Any Party may withdraw as a JPA Member and the obligations under this Agreement subject to the following conditions:
(a) The withdrawing JPA Member’s legislative body submits a duly adopted resolution to the JPA Executive Committee providing Notice ofWithdrawal. (b) The effective date of withdrawal shall always be the last day of the VGPS’s Fiscal Year.
(c) All JPA Member Contributions must be paid in full by the withdrawing JPA Member through the end of the current VGPS Fiscal Year of the year when the withdrawing JPA Member provides its Notice of Withdrawal as well as the following VGPS Fiscal Year. (d) After giving notice of withdrawal, a withdrawing JPA Member shall not have voting privileges on the JPA Executive Committee except for operating budget items through Item Number: 7.

the effective date of withdrawal.
(e) A withdrawing JPA Member may again become a party to this Agreement on condition that it pays to the treasury of the VGPS an amount equal to all JPA Member Contributions which the withdrawing JPA Member would have been required to pay if it had not withdrawn from participation.
(f) Partners within the territorial boundaries of the VGPS may remain active Partners as long as their respective government entity is a JPA Member and during the period of their JPA Member’s withdrawal from the Joint Powers Agreement. (g) In the event of withdrawal by a JPA Member, the JPA shall continue to be entitled to the full amount of the TBID unless and until the TBID expires without renewal or is disestablished pursuant to the Property and Business Improvement Area Law of 1994, Streets & Highways Code §36600 et seq. The withdrawing JPA Member shall continue to be responsible for collecting the TBID on a monthly basis (including any delinquencies, penalties and interest) from each assessed business and forwarding the same to the JPA.

Section 14. Expulsion/Withdrawal
A JPA Member may be expelled or suspended by a two-thirds (2/3) vote of the VGPS Executive Committee for an event of breach of this Agreement or the Bylaws, as amended from time to time, as determined by the remaining members of the JPA Executive Committee. The procedures for hearing and notice of expulsion and suspension shall be set forth in the bylaws of the JPA Executive Committee.

Section 15. Separate Entity
Except for termination as provided in Section 6 of this Agreement, pursuant to section 6507 of the Government Code, this JPA shall at all times be an independent public entity separate from the parties to this Agreement, and the debts, liabilities and obligations of the JPA shall be its sole responsibility and shall not become the debts, liabilities, or obligations of any one JPA Member except that any JPA Member may separately contract for, or assume responsibility for specific debts, liabilities, or obligations of the JPA.

Section 16. Powers of the JPA
Pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the California Government Code, this JPA shall have the authority to exercise any power common to the contracting parties, including without limitation any of the following:
(a) The power to make, enter into and perform all necessary contracts; (b) The power to engage necessary employees, to define their qualifications and duties and to provide a schedule of compensation for performance of their duties; (d) The power to retain agents, independent contractors and consultants, including without limitation the power to engage legal counsel and other professional services; (e) The power to acquire, construct, manage, maintain or operate any building, Item Number: 7.

works or improvements;
(f) The power to acquire by purchase, grant, gift, lease or other lawful means any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA;
(g) The power to hold any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA; (h) The power to sell, lease or otherwise dispose of any real or personal property including exchanging equivalent properties if it is deemed to be in the best interests of the JPA; (i) The power to donate any surplus real or personal property to any public agency or nonprofit organization;
(j) The power to incur debts, liabilities or obligations, including without limitation the power to borrow money, give security therefore, and purchase on contract; (k) The power to raise revenue for any public purpose consistent with the JPA’s purposes, as set forth in this Agreement, through any legal and appropriate means other than levying a tax or assessment beyond the scope of those assessments which may be established and levied pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., and the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq; (l) The power to form, renew, and modify improvement districts including all Lodging Establishments, as defined in Section 1, pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., and the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., which authorizes joint powers agencies to establish, modify and renew parking and business improvement areas and property and business improvement districts for the purpose of tourism promotion. Approval of this Agreement by the JPA Members constitutes consent to:
(i) the formation of the Greater Palm Springs Convention & Visitors Bureau Tourism Marketing District adopted pursuant to Ordinance No. 2013-001, including all proceedings and actions previously taken by the VGPS in connection with formation of the said district (“2013 TMD”); and
(ii) the formation of the Greater Palm Springs Tourism Business Improvement District pursuant to Resolution No. 2016-004 and to levy an assessment of three percent (3%) on Convention Hotels;
(iii) t h e renewal of the Greater Palm Springs Tourism Business Improvement District pursuant to Ordinance No. 2020-005 (“2021 TBID”) and to levy an assessment of three percent (3%) on Convention Hotels and one percent (1%) on vacation rentals; (m) The power to adopt rules, regulations, resolutions and ordinances that may be necessary or proper to carry out the purposes and intent of the JPA; (n) The power to enforce rules, regulations, resolutions and ordinances for the administration, maintenance and operation of the JPA;
Item Number: 7.

(o) The power to enter into joint powers agreements pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the Government Code; (p) The power to provide insurance pursuant to section 989 of the Government Code et seq.;
(q) The power to sue and be sued in the name of the JPA; (r) The power to conduct certain activities of the JPA in any state or territory of the United States of America or in any foreign country, related to growing and diversifying the economy through promoting and marketing all aspects of the hospitality, convention and tourism industry in the Coachella Valley for the purpose of attracting visitors, groups, meetings, conventions and new businesses from national and international markets, as permitted pursuant to Government Code section 37110;
(s) The power to travel domestically and internationally that is necessary or proper to carrying out the purposes and intent of the JPA;
(t) The power to provide staff and resource support, financial assistance and subsidies to other public agencies, non-profit organizations and the private sector for purposes consistent with the purpose and intent of the JPA;
(u) The power to lobby on behalf of tourism and economic development; (v) The power to form a non-profit corporation or other affiliated non-profit entities for the purpose of promoting and enhancing all aspects of the tourism and economic development industry; and
(w) The power to take any and all actions necessary for, or incidental to, the powers expressed or implied by this Agreement and all applicable laws.

Section 17. Power to Invest
Pursuant to Government Code section 6509.5, the JPA shall have the power to invest any money in its treasury pursuant to the provisions set forth in Government Code section 6505.5 that is not required for the immediate necessities of the JPA, as the JPA may determine from time to time is advisable, in the same manner and upon the same conditions as local agencies pursuant to Government Code section 53601.

Section 18. Bonding
Pursuant to Government Code section 6505.1, individuals occupying the following positions shall file an official bond in an amount deemed sufficient by the JPA Executive Committee:
(a) President/Chief Executive Officer;
(b) Director of Finance; and
Item Number: 7.

(c) Treasurer.

Section 19. Treasurer and Auditor - Designations
Pursuant to Government Code section 6505.6, the JPA Executive Committee shall designate by resolution an officer or employee of the JPA to fill the functions of Treasurer and Auditor of the JPA, and the JPA Executive Committee may appoint one qualified person to serve as both Treasurer and Auditor or two qualified persons to serve as each separately.

Section 20. Treasurer - Duties and Responsibilities
Pursuant to section 6505.5 Government Code, the Treasurer shall do all of the following:
(a) Receive and receipt (account) for all money of the JPA and place it in the treasury of the Treasurer so designated to the credit of the JPA; (b) Be responsible, upon his or her official bond, for the safekeeping and disbursement of all JPA money so held by the Treasurer; (c) Pay when due, out of the money of the JPA held by the Treasurer, all sums payable on outstanding bonds and coupons of the JPA;
(d) Pay any other sums due from the JPA from JPA money, or any portion thereof, only upon warrants of the public officer performing the functions of auditor or controller who has been designated by this Agreement; and
(e) Verify and report in writing no less than five (5) times per year to the President/Chief Executive Officer, the JPA Executive Committee and to all Parties financial statement of activities for the year.

Section 21. Independent Audit
Pursuant to section 6505.6 of the Government Code, the Treasurer shall cause an independent audit to be made by a certified public accountant or public accountant, in compliance with section 6505 of the Government Code.

Section 22. Auditor’s Duties
The Auditor shall perform the following duties:
(a) Review and recommend to the JPA Executive Committee accounting procedures and policies governing the JPA;
(b) Review and approve all demands listed on the Warrant Registers prior to submittal to the JPA Executive Committee;
(c) Review payroll registers at least monthly;
(d) Review all financial reports being submitted to the JPA Executive Committee and make the JPA Executive Committee aware of any discrepancies or potential problems in Item Number: 7.

the reports;
(e) Review investments made by the President or Treasurer; (f) Review the audit report prepared by a Certified Public Accounting firm prior to finalization of the report and submittal to the JPA Executive Committee; and (g) Assist staff in the selection of the Certified Public Accounting firm.

Section 23. Attorney’s Fees
In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing party in such litigation or other proceeding shall be entitled to an award of its actual and reasonable attorney's fees, costs and expenses incurred in the proceeding.

Section 24. Voting
Each JPA Member shall have an equal vote. A motion considered by the JPA Executive Committee shall require a majority of votes cast (more than half) to pass such motion. In the event of a tie vote, such motion before the JPA Executive Committee shall be deemed defeated.

Section 25. Severability
If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions, if any, of this Agreement shall continue in full force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances or would frustrate the purposes of this Agreement.

Item Number: 7.

Section 26. Waiver
All waivers must be in writing to be effective or binding upon the waiving Party, and no waiver shall be implied from any omission by a Party to take any action.

Section 27. Amendments
This Agreement may be amended from time to time by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.

Section 28. Ambiguities or Uncertainties
The JPA Members have mutually negotiated the terms and conditions of this Agreement and each JPA Member received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions contained herein.

As such, this Agreement is a product of the joint drafting efforts of all JPA Members and none of the JPA Members shall be deemed to have solely or independently prepared or framed this Agreement. Therefore, any ambiguities or uncertainties are not to be construed against or in favor of any JPA Member.

Section 29. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws of the State of California.

Section 30. Venue
In the event that suit is brought by any party to this Agreement, the parties agree that venue shall be exclusively vested in the State courts of the County of Riverside, California or where appropriate, in the United States District Court, Southern District of California, Riverside, California.

Section 31. Notices
Any notice or communication required hereunder between the JPA and the JPA Members shall be in writing and may be given either personally or by registered mail, returnreceipt requested. Notice, whether given by registered mail or personal delivery, shall be deemed to have been given and received on the actual receipt by any of the addresses designated below as the party to whom notices are to be sent. Any party hereto may at any time, upon written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below:

Item Number: 7.

City of Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Attention: City Manager
City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Attention: City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Attention: City Manager
City of Indian Wells
44950 Eldorado Drive
Indian Wells, CA 92210
Attention: City Manager
City of Indio
100 Civic Center Mall
Indio, CA 92201
Attention: City Manager
City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Attention: City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
Attention: City Manager
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Manager
City of Rancho Mirage
69825 Highway 111
Rancho Mirage, CA 92270
Attention: City Manager
County of Riverside
County Administration Center
4080 Lemon Street
Riverside, California 92501
Attention: County Clerk
Section 32. Counterparts
This Agreement may be executed in duplicate counterpart originals, each of which is deemed to be an original, and all of which when taken together shall constitute one and the same instrument.

Section 33. Privileges and Immunities
Pursuant to section 6513 of the Government Code, all of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workmen’s compensation, and other benefits which apply to the activity of officers, agents or employees of any the Parties when performing their respective functions within the territorial limits of their respective public agencies, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties performed extraterritorially under the provisions of this Agreement. [SIGNATURES APPEAR ON THE FOLLOWING PAGES]
Item Number: 7.

IN WITNESS WHEREOF, the duly authorized representatives of the JPA Members have each executed this Agreement.

CITY OF CATHEDRAL CITY
_________________________________
Mark Carnevale, Mayor
Dated: ___________________________
_________________________________
Charlie McClendon, City Manager
ATTEST:
_________________________________
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
________________________________
Eric S. Vail, City Attorney

CITY OF COACHELLA
_________________________________
Steven Hernandez, Mayor
Dated: ___________________________
_________________________________
Gabriel Martin, City Manager
ATTEST:
_________________________________
Angela M. Zepeda, City Clerk
APPROVED AS TO FORM:
________________________________
Carlos Campos, City Attorney

CITY OF DESERT HOT SPRINGS
_________________________________
Scott Matas, Mayor
Dated: ___________________________
_________________________________
Frank Luckino, City Manager
ATTEST:
_________________________________
Daniel McVey, City Clerk
APPROVED AS TO FORM:
________________________________
Jennifer Mizrahi, City Attorney

CITY OF INDIAN WELLS
_________________________________
Greg Sanders, Mayor
Dated: ___________________________
_________________________________
Christopher Freeland, City Manager
ATTEST:
_________________________________
Angelica Avila, City Clerk
APPROVED AS TO FORM:
________________________________
Todd Leishman, City Attorney
Item Number: 7.

CITY OF INDIO
_________________________________
Guadalupe Ramos Amith, Mayor
Dated: ___________________________
_________________________________
Bryan Montgomery, City Manager
ATTEST:
_________________________________
Cynthia Hernandez, City Clerk
APPROVED AS TO FORM:
________________________________
Steven P. Graham, City Attorney

CITY OF LA QUINTA
_________________________________
Linda Evans, Mayor
Dated: ___________________________
_________________________________
Jon McMillen, City Manager
ATTEST:
_________________________________
Monika Redeva, City Clerk
APPROVED AS TO FORM:
________________________________
William H. Ihrke, City Attorney

CITY OF PALM DESERT
_________________________________
Karina Quintanilla, Mayor
Dated: ___________________________
_________________________________
Todd Hileman, City Manager
ATTEST:
_________________________________
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
________________________________
Isra Shah, City Attorney

CITY OF PALM SPRINGS
_________________________________
Jeffrey Bernstein, Mayor
Dated: ___________________________
_________________________________
Scott Stiles, City Manager
ATTEST:
_________________________________
Brenda Pree, City Clerk
APPROVED AS TO FORM:
________________________________
Jeffrey Ballinger, City Attorney
Item Number: 7.

CITY OF RANCHO MIRAGE
_________________________________
Steve Downs, Mayor
Dated: ___________________________
_________________________________
Isaiah Hagerman, City Manager
ATTEST:
_________________________________
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
________________________________
Steven B, Quintanilla, City Attorney

COUNTY OF RIVERSIDE
____________________________________
Chuck Washington, Chairman
____________________________________
Jeff Van Wagenen, County Executive
Manager
ATTEST:
____________________________________
Kimberly A. Rector, Clerk of the Board
APPROVED AS TO FORM:
____________________________________
Minh Tran, County Counsel
Item Number: 7.

EXHIBIT A

TERRITORIAL BOUNDARIES
Item Number: 7.

1 VISIT GREATER PALM SPRINGS

JOINT POWERS AGREEMENT
(“Second Amended and Restated Agreement”)
A California Joint Powers Authority
Created Pursuant to California Government Code Section 6500 et seq. _________________, 2024
Item Number: 7.

i

TABLE OF CONTENTS
RECITALS........................................................................................................................... 1 AGREEMENT..................................................................................................................... 1 Section 1 Definitions ....................................................................................... 1 Section 2 Incorporation of Recitals ................................................................. 3 Section 3 Purpose ............................................................................................ 3 Section 4 Name................................................................................................ 3 Section 5 First Amended and Restated Agreement Superseded – Effective Date 3 Section 6 Termination...................................................................................... 3 Section 7 JPA Members.................................................................................. 4 Section 8 Additional Members........................................................................ 4 Section 9 Governing Body............................................................................... 4 Section 10 JPA Executive Committee – Powers and Duties............................. 4 Section 11 Territorial Boundaries...................................................................... 5 Section 12 Contributions ................................................................................... 6 Section 13 Withdrawal ...................................................................................... 6 Section 14 Separate Entity................................................................................. 6 Section 15 Powers of the JPA............................................................................ 7 Section 16 Power to Invest................................................................................ 9 Section 17 Bonding ........................................................................................... 9 Section 18 Treasurer and Auditor – Designations............................................. 9 Section 19 Treasurer – Duties and Responsibilities........................................... 9 Section 20 Independent Audit ......................................................................... 10 Item Number: 7.

ii
Section 21 Auditor’s Duties............................................................................. 10 Section 22 Severability .................................................................................... 10 Section 23 Waiver ........................................................................................... 10 Section 24 Amendments.................................................................................. 10 Section 25 Ambiguities or Uncertainties......................................................... 11 Section 26 Applicable Law.............................................................................. 11 Section 27 Venue............................................................................................. 11 Section 28 Notices........................................................................................... 11 Section 29 Counterparts................................................................................... 12 Section 30 Privileges and Immunities ............................................................. 12

EXHIBIT A
Territorial Boundaries.......................................................................................................... 16 Item Number: 7.

3 This Second Amended and Restated Joint Powers Agreement (this “Agreement”) is entered into by and between the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, each an independent municipal corporation located in the County of Riverside, State of California, and the County of Riverside, a political subdivision of the State of California, pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the California Government Code. The Joint Powers Authority is known as “Visit Greater Palm Springs” (“VGPS”). The parties to this Agreement are individually referred to herein as “JPA Member” and collectively as “JPA Members.”

RECITALS
WHEREAS, pursuant to the Joint Exercise of Powers Act, if authorized by their legislative or other governing bodies, two or more public agencies which include, but are not limited to, a county or city, may jointly exercise any power common to the contracting parties via a Joint Powers Agreement creating a Joint Powers Authority (“JPA”); and WHEREAS, the JPA Members entered into the original joint powers agreement on February 8, 1989, to jointly encourage, promote, and to do such other things as might be necessary to enhance, to the greatest extent possible, all aspects of the hospitality, convention and tourism industry in the Coachella Valley and to attract visitors from a world- wide market, all to the benefit of the member organizations and their citizens via the exercise of all the expressed and implied powers the JPA Members have in common; and WHEREAS, it is intended by the JPA Members that this Agreement shall be amendatory of the First Amended and Restated Joint Powers Agreement, dated January 20, 2016, including any subsequent amendments (“First Amended and Restated Agreement”), and shall restate, amend and supersede the First Amended and Restated Agreement in its entirety as of the Effective Date; and
WHEREAS, on or about _____________, 2024, it was determined by the VGPS President and Chief Executive Officer and his staff that at least two thirds of the entire VGPS Executive Committee and all of the JPA Members voted to (i) add the City of Coachella as a JPA Member, (ii) add the City of Coachella to the territorial boundaries of the JPA; and (iii) amend the purpose of JPA as set forth below, among additional provisions as stated herein; and WHEREAS, on or about _____________, 2024, it was determined by the VGPS President and Chief Executive Officer and his staff that at least two thirds of the entire VGPS Executive Committee and all of the JPA Members voted to approve for adoption and execution this Second Amended and Restated Joint Powers Agreement.

NOW, THEREFORE, in consideration of the terms and conditions hereinafter set forth, and intending to be legally bound hereby, the JPA Members hereby covenant and agree as follows:

Item Number: 7.

4 AGREEMENT
Section 1. Definitions
The following words, terms and phrases shall have the following meanings:
“Additional JPA Members” shall mean qualified municipalities that may be added as members of JPA as described in Section 8.
“Board of Directors” shall mean the Board of Directors of the Greater Palm Springs Business Alliance (“GPSBA”) comprised of persons associated with the local hospitality industry for the purposes described in Section 10.
“Convention Hotel” shall mean a hotel, motel or similar property with 50 rooms or greater.
“Joint Exercise of Powers Act” shall mean California Government Code sections 6500-6536.
“JPA” shall mean the Joint Powers Authority and may also be referred to herein as VGPS.
“JPA Executive Committee” shall mean the JPA’s governing body formed for the purposes and having the powers and duties set forth in Section 10. “JPA Member” shall mean a municipality that is party to this Agreement. “JPA Members” shall mean, collectively, the municipalities that have entered into this Agreement.
“JPA Member Contributions” shall mean the annual contribution amounts duly established pursuant to Section 12.
“Lodging Establishments” shall mean any structure, which is occupied or intended or designed for use or occupancy by transients, including but not limited to hotel, resort, motel, inn and individually owned structures; single family homes, duplexes, triplexes, mobile homes, public or private clubs, campgrounds, mobile homes or house trailers at fixed locations, or other like structure or portion thereof and dwelling utilized for short term rental and subject to local transient occupancy tax.
“Partner” shall mean a non-governmental entity whose business and activities are directly related to the convention or tourism industry and the purposes of this Agreement. “President and Chief Executive Officer” shall mean the individual employed by VGPS, who is responsible for professionally supervising, managing, and administering VGPS’s dayto- day affairs as described in paragraph (e) of Section 10 and elsewhere in this Agreement.

Item Number: 7.

5 “TBID” shall mean Tourism Business Improvement District assessment. “Technical Advisory Committee” or “TAC” shall mean the committee which may be appointed by a majority vote of VGPS’s JPA Executive Committee for the purposes described in paragraph (d) of Section 10.
“Treasurer” shall mean the individual appointed by VGPS’s JPA Executive Committee to serve the functions described at Section 19 and may be the same individual appointed as Auditor.
“VGPS Fiscal Year” shall mean the period commencing July 1 of every year and ending June 30 of the following calendar year.
“Visit Greater Palm Springs” or “VGPS” shall mean the Joint Powers Authority formed by the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, and the County of Riverside.

Section 2. Incorporation of Recitals
The foregoing recitals are incorporated into this Agreement by this reference as though fully set forth herein.

Section 3. Purpose
The purpose of VGPS is to benefit all JPA Members and their constituents by jointly:
(a) Marketing, attracting, encouraging, promoting, and doing such other things as might be necessary to enhance, to the greatest extent possible, all aspects of the hospitality, convention, and tourism industry in the Coachella Valley and to attract visitors from national and international markets; and
(b) Doing such other things to promote and strengthen all aspects of the regional economy related to the hospitality, convention and tourism industry, and the diversification of the entire economy of the Coachella Valley.

Section 4. Name
The name of the JPA shall be “Visit Greater Palm Springs” (“VGPS”) or such other name that may be changed at any time by a resolution approved and adopted by a two-thirds vote of the entire JPA Executive Committee.

Section 5. First Amended and Restated Agreement Superseded - Effective Date It is intended by the JPA Members that this Agreement shall be amendatory of the First Amended and Restated Agreement and shall restate, amend and supersede the First Amended and Restated Agreement. Upon its Effective Date, this Agreement shall govern the relationship Item Number: 7.

6 of the JPA Members. This Agreement shall become effective on the date this Agreement is approved by a two-thirds vote of the entire membership of the JPA Executive Committee and a two-thirds vote of the JPA Members’ legislative bodies (“Effective Date”).

Section 6. Termination
(a) This Agreement may be terminated by unanimous vote of all the JPA Members’ legislative bodies provided, however, the foregoing shall not be construed as limiting the rights of a JPA Member to withdraw its membership in the JPA, and thus terminate this Agreement with respect to such withdrawing JPA Member as described in Section 13; and (b) Pursuant to section 6512 of the Government Code, upon termination of this Agreement and dissolution of the JPA, any surplus money on hand with the JPA shall be returned to the JPA Members’ treasuries in proportion to the JPA Member Contributions made by the respective JPA Member to the JPA.
(c) Upon termination of this Agreement and dissolution of the JPA, all of the resources of the JPA shall be used in an effort to ensure that 100% of the pension liability is funded. Pursuant to Government Code section 6508.2, any remaining obligations of the JPA pension plan and other post-employment benefit liabilities shall be assumed by JPA Members.

The JPA will maintain a policy of funding its pension liability at a minimum of 85% and will promptly notify JPA Members at any time this threshold is not met.

Section 7. JPA Members
The members of the JPA shall consist of the parties to this Agreement which include the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Desert, Palm Springs and Rancho Mirage, and the County of Riverside.

Section 8. Additional Members
Additional JPA Members that qualify to join a joint powers authority under the Joint Exercise of Powers Act may be added as JPA Members at any time by a two-thirds vote of the of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.

Section 9. Governing Body
(a) The governing body of the JPA shall be known as the JPA Executive Committee and it shall be comprised of: (i) a duly elected or appointed council member of each city JPA Member; and (ii) a member ofthe Riverside County Board of Supervisors. (b) Only those members of the JPA Executive Committee, whose agencies pay the JPA Member Contributions, as set forth in this Agreement, shall be entitled to vote.

Section 10. JPA Executive Committee - Powers and Duties Item Number: 7.

7 The JPA Executive Committee, consistent with this Agreement and all applicable laws, shall exercise all the powers and perform all duties necessary to conduct the business of the JPA, either directly or by delegation of its authority, as the JPA Executive Committee deems appropriate, which shall include but not be limited to the following:
(a) Adopt bylaws or rules of procedure to provide for the organization and administration of the JPA, as the JPA Executive Committee deems appropriate by a majority vote of the JPA Executive Committee;
(b) Approve and adopt a budget for the JPA prior to the commencement of the JPA’s subsequent fiscal year, the term of which shall be set by a majority vote of the JPA Executive Committee;
(c) Delegate authority to manage destination activities and the daily operations of VGPS to GPSBA, including but not limited to strategic development, marketing, travel trade, public relations, human resources and group sales, and employ an individual who shall serve as the President and Chief Executive Officer of the JPA, who shall be responsible for professionally supervising, managing and administering the day-to-day affairs of the JPA, hire and fire JPA employees, retain consultants and independent contractors and perform such other functions as needed. Termination of the President & Chief Executive Officer will require a majority vote of the JPA Executive Committee and GPSBA Board of Directors. The Board of Directors of the GPSBA shall consist of any number of persons associated with the local hospitality industry, which may include, but not be limited to, those who own, manage, govern or serve in senior staff positions for Lodging Establishments or businesses, eateries, public and private regional sports facilities, public and private museums, public and private convention and conference facilities, commercial air transport facilities, commercial ground transportation businesses, plus any other persons from any other industry deemed appropriate. The GPSBA shall manage the destination operations of VGPS, and shall be governed by bylaws, as amended from time to time.

Activities other than tourism related activities, such as but not limited to economic diversification efforts, shall remain the responsibility of the JPA and shall be governed by the JPA Members and/or their assignee(s) as determined by the JPA Executive Committee. (d) Appoint from time to time, if deemed necessary by a majority vote of the JPA Executive Committee, a Technical Advisory Committee (TAC) consisting of a staff member employed by each JPA Member as designated by the respective JPA Executive Committee member, for purposes of advising the JPA Executive Committee on any technical issues of the JPA that the JPA Executive Committee may need advice on; (e) Retain an individual licensed to practice law in the State of California who shall serve as General Legal Counsel for the JPA and who shall assist the JPA with any legal assistance as may be requested by the JPA Executive Committee or President/Chief Executive Officer or their authorized designees; and
(f) Create any committees, sub-committees, and advisory committees, as deemed Item Number: 7.

8 necessary by a majority vote of the JPA Executive Committee, to advance and/or achieve the purposes set forth in this Agreement.
(g) Pursuant to Section 6509 of the Government Code, the powers set forth in this Agreementshall be subject to the restrictions upon the manner of exercising such similar powers as are imposed on the City ofRancho Mirage in the exercise ofsimilar powers.

Section 11. Territorial Boundaries
The JPA’s territorial boundaries include the lands situated within the unincorporated areas of the Coachella Valley situated in the County of Riverside and the lands situated within the jurisdictional boundaries of the cities of Cathedral City, Coachella, Desert Hot Springs, Indian Wells, Indio, La Quinta, Palm Springs, Palm Desert and Rancho Mirage, as depicted in Exhibit A of this Agreement. The territorial boundaries of the VGPS may only be changed by a two-thirds vote of the JPA Executive Committee and a unanimous vote ofthe JPA Members’ legislative bodies.

Section 12. Contributions
(a) Initial Membership Fee. Each new JPA Member shall pay to the JPA a one-(1) time entry fee and operation fee calculated as follows:
(i) Entry Fee: The “Entry Fee” shall be calculated by multiplying the new JPA Member’s current fiscal year’s gross revenue estimate by .55%. (ii) Operation Fee: The “Operation Fee” shall be calculated by multiplying the Entry Fee by 15.62%.

The sum of the Entry Fee and the Operation Fee is due within thirty (30) days of a new JPA Member joining the JPA.
(b) Annual Contribution. Each JPA Member shall pay to the JPA (i) the greater of $35,000 each year, or (ii) the applicable contribution amounts as set forth in the formula below, which may only be modified by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies. JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.

A contribution from each ofthe JPA Members is a funding mechanism equal to:
.0015 x Gross Room Rental Revenue for Lodging Establishments excluding Convention Hotels, and
.0035 x Gross Room Rental Revenue for Convention Hotels (c) The Gross Room Rental Revenue described herein shall not include any transient occupancy tax rebate incentives provided by the JPA Members.

Item Number: 7.

9 Section 13. Withdrawal
Any Party may withdraw as a JPA Member and the obligations under this Agreement subject to the following conditions:
(a) The withdrawing JPA Member’s legislative body submits a duly adopted resolution to the JPA Executive Committee providing Notice ofWithdrawal. (b) The effective date of withdrawal shall always be the last day of the VGPS’s Fiscal Year.
(c) All JPA Member Contributions must be paid in full by the withdrawing JPA Member through the end of the current VGPS Fiscal Year of the year when the withdrawing JPA Member provides its Notice of Withdrawal as well as the following VGPS Fiscal Year. (d) After giving notice of withdrawal, a withdrawing JPA Member shall not have voting privileges on the JPA Executive Committee except for operating budget items through the effective date of withdrawal.
(e) A withdrawing JPA Member may again become a party to this Agreement on condition that it pays to the treasury of the VGPS an amount equal to all JPA Member Contributions which the withdrawing JPA Member would have been required to pay if it had not withdrawn from participation.
(f) Partners within the territorial boundaries of the VGPS may remain active Partners as long as their respective government entity is a JPA Member and during the period of their JPA Member’s withdrawal from the Joint Powers Agreement. (g) In the event of withdrawal by a JPA Member, the JPA shall continue to be entitled to the full amount of the TBID unless and until the TBID expires without renewal or is disestablished pursuant to the Property and Business Improvement Area Law of 1994, Streets & Highways Code §36600 et seq. The withdrawing JPA Member shall continue to be responsible for collecting the TBID on a monthly basis (including any delinquencies, penalties and interest) from each assessed business and forwarding the same to the JPA.

Section 14. Expulsion/Withdrawal
A JPA Member may be expelled or suspended by a two-thirds (2/3) vote of the VGPS Executive Committee for an event of breach of this Agreement or the Bylaws, as amended from time to time, as determined by the remaining members of the JPA Executive Committee. The procedures for hearing and notice of expulsion and suspension shall be set forth in the bylaws of the JPA Executive Committee.

Section 15. Separate Entity
Except for termination as provided in Section 6 of this Agreement, pursuant to section 6507 of the Government Code, this JPA shall at all times be an independent public entity separate from the parties to this Agreement, and the debts, liabilities and obligations of the JPA Item Number: 7.

10 shall be its sole responsibility and shall not become the debts, liabilities, or obligations of any one JPA Member except that any JPA Member may separately contract for, or assume responsibility for specific debts, liabilities, or obligations of the JPA.

Section 16. Powers of the JPA
Pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the California Government Code, this JPA shall have the authority to exercise any power common to the contracting parties, including without limitation any of the following:
(a) The power to make, enter into and perform all necessary contracts; (b) The power to engage necessary employees, to define their qualifications and duties and to provide a schedule of compensation for performance of their duties; (d) The power to retain agents, independent contractors and consultants, including without limitation the power to engage legal counsel and other professional services; (e) The power to acquire, construct, manage, maintain or operate any building, works or improvements;
(f) The power to acquire by purchase, grant, gift, lease or other lawful means any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA;
(g) The power to hold any real property or any personal property that may be necessary or proper to carry out the purposes and intent of the JPA; (h) The power to sell, lease or otherwise dispose of any real or personal property including exchanging equivalent properties if it is deemed to be in the best interests of the JPA; (i) The power to donate any surplus real or personal property to any public agency or nonprofit organization;
(j) The power to incur debts, liabilities or obligations, including without limitation the power to borrow money, give security therefore, and purchase on contract; (k) The power to raise revenue for any public purpose consistent with the JPA’s purposes, as set forth in this Agreement, through any legal and appropriate means other than levying a tax or assessment beyond the scope of those assessments which may be established and levied pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., and the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq; (l) The power to form, renew, and modify improvement districts including all Lodging Establishments, as defined in Section 1, pursuant to the Parking and Business Improvement Area Law of 1989, Streets & Highways Code §36500 et seq., and the Property and Business Improvement District Law of 1994, Streets & Highways Code §36600 et seq., Item Number: 7.

11 which authorizes joint powers agencies to establish, modify and renew parking and business improvement areas and property and business improvement districts for the purpose of tourism promotion. Approval of this Agreement by the JPA Members constitutes consent to:
(i) the formation of the Greater Palm Springs Convention & Visitors Bureau Tourism Marketing District adopted pursuant to Ordinance No. 2013-001, including all proceedings and actions previously taken by the VGPS in connection with formation of the said district (“2013 TMD”); and
(ii) the formation of the Greater Palm Springs Tourism Business Improvement District pursuant to Resolution No. 2016-004 and to levy an assessment of three percent (3%) on Convention Hotels;
(iii) t h e renewal of the Greater Palm Springs Tourism Business Improvement District pursuant to Ordinance No. 2020-005 (“2021 TBID”) and to levy an assessment of three percent (3%) on Convention Hotels and one percent (1%) on vacation rentals; (m) The power to adopt rules, regulations, resolutions and ordinances that may be necessary or proper to carry out the purposes and intent of the JPA; (n) The power to enforce rules, regulations, resolutions and ordinances for the administration, maintenance and operation of the JPA;
(o) The power to enter into joint powers agreements pursuant to the Joint Exercise of Powers Act, as set forth in section 6500 et seq. of the Government Code; (p) The power to provide insurance pursuant to section 989 of the Government Code et seq.;
(q) The power to sue and be sued in the name of the JPA; (r) The power to conduct certain activities of the JPA in any state or territory of the United States of America or in any foreign country, related to growing and diversifying the economy through promoting and marketing all aspects of the hospitality, convention and tourism industry in the Coachella Valley for the purpose of attracting visitors, groups, meetings, conventions and new businesses from national and international markets, as permitted pursuant to Government Code section 37110;
(s) The power to travel domestically and internationally that is necessary or proper to carrying out the purposes and intent of the JPA;
(t) The power to provide staff and resource support, financial assistance and subsidies to other public agencies, non-profit organizations and the private sector for purposes consistent with the purpose and intent of the JPA;
(u) The power to lobby on behalf of tourism and economic development; Item Number: 7.

12 (v) The power to form a non-profit corporation or other affiliated non-profit entities for the purpose of promoting and enhancing all aspects of the tourism and economic development industry; and
(w) The power to take any and all actions necessary for, or incidental to, the powers expressed or implied by this Agreement and all applicable laws.

Section 17. Power to Invest
Pursuant to Government Code section 6509.5, the JPA shall have the power to invest any money in its treasury pursuant to the provisions set forth in Government Code section 6505.5 that is not required for the immediate necessities of the JPA, as the JPA may determine from time to time is advisable, in the same manner and upon the same conditions as local agencies pursuant to Government Code section 53601.

Section 18. Bonding
Pursuant to Government Code section 6505.1, individuals occupying the following positions shall file an official bond in an amount deemed sufficient by the JPA Executive Committee:
(a) President/Chief Executive Officer;
(b) Director of Finance; and
(c) Treasurer.

Section 19. Treasurer and Auditor - Designations
Pursuant to Government Code section 6505.6, the JPA Executive Committee shall designate by resolution an officer or employee of the JPA to fill the functions of Treasurer and Auditor of the JPA, and the JPA Executive Committee may appoint one qualified person to serve as both Treasurer and Auditor or two qualified persons to serve as each separately.

Section 20. Treasurer - Duties and Responsibilities
Pursuant to section 6505.5 Government Code, the Treasurer shall do all of the following:
(a) Receive and receipt (account) for all money of the JPA and place it in the treasury of the Treasurer so designated to the credit of the JPA; (b) Be responsible, upon his or her official bond, for the safekeeping and disbursement of all JPA money so held by the Treasurer; (c) Pay when due, out of the money of the JPA held by the Treasurer, all sums payable on outstanding bonds and coupons of the JPA;
Item Number: 7.

13 (d) Pay any other sums due from the JPA from JPA money, or any portion thereof, only upon warrants of the public officer performing the functions of auditor or controller who has been designated by this Agreement; and
(e) Verify and report in writing no less than five (5) times per year to the President/Chief Executive Officer, the JPA Executive Committee and to all Parties financial statement of activities for the year.

Section 21. Independent Audit
Pursuant to section 6505.6 of the Government Code, the Treasurer shall cause an independent audit to be made by a certified public accountant or public accountant, in compliance with section 6505 of the Government Code.

Section 22. Auditor’s Duties
The Auditor shall perform the following duties:
(a) Review and recommend to the JPA Executive Committee accounting procedures and policies governing the JPA;
(b) Review and approve all demands listed on the Warrant Registers prior to submittal to the JPA Executive Committee;
(c) Review payroll registers at least monthly;
(d) Review all financial reports being submitted to the JPA Executive Committee and make the JPA Executive Committee aware of any discrepancies or potential problems in the reports;
(e) Review investments made by the President or Treasurer; (f) Review the audit report prepared by a Certified Public Accounting firm prior to finalization of the report and submittal to the JPA Executive Committee; and (g) Assist staff in the selection of the Certified Public Accounting firm.

Section 23. Attorney’s Fees
In the event litigation or other proceeding is required to enforce or interpret any provision of this Agreement, the prevailing party in such litigation or other proceeding shall be entitled to an award of its actual and reasonable attorney's fees, costs and expenses incurred in the proceeding.

Section 24. Voting
Each JPA Member shall have an equal vote. A motion considered by the JPA Executive Item Number: 7.

14 Committee shall require a majority of votes cast (more than half) to pass such motion. In the event of a tie vote, such motion before the JPA Executive Committee shall be deemed defeated.

Section 25. Severability
If any term, provision, covenant or condition of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions, if any, of this Agreement shall continue in full force and effect, unless enforcement of this Agreement as so invalidated would be unreasonable or grossly inequitable under all the circumstances or would frustrate the purposes of this Agreement.

Item Number: 7.

15 Section 26. Waiver
All waivers must be in writing to be effective or binding upon the waiving Party, and no waiver shall be implied from any omission by a Party to take any action.

Section 27. Amendments
This Agreement may be amended from time to time by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies in compliance with all applicable provisions of the Joint Exercise of Powers Act and all other applicable laws.

Section 28. Ambiguities or Uncertainties
The JPA Members have mutually negotiated the terms and conditions of this Agreement and each JPA Member received independent legal advice from its attorneys with respect to the advisability of executing this Agreement and the meaning of the provisions contained herein.

As such, this Agreement is a product of the joint drafting efforts of all JPA Members and none of the JPA Members shall be deemed to have solely or independently prepared or framed this Agreement. Therefore, any ambiguities or uncertainties are not to be construed against or in favor of any JPA Member.

Section 29. Applicable Law
This Agreement shall be construed and enforced in accordance with the laws of the State of California.

Section 30. Venue
In the event that suit is brought by any party to this Agreement, the parties agree that venue shall be exclusively vested in the State courts of the County of Riverside, California or where appropriate, in the United States District Court, Southern District of California, Riverside, California.

Section 31. Notices
Any notice or communication required hereunder between the JPA and the JPA Members shall be in writing and may be given either personally or by registered mail, returnreceipt requested. Notice, whether given by registered mail or personal delivery, shall be deemed to have been given and received on the actual receipt by any of the addresses designated below as the party to whom notices are to be sent. Any party hereto may at any time, upon written notice to the other party hereto, designate any other address in substitution of the address to which such notice or communication shall be given. Such notices or communications shall be given to the parties at their addresses set forth below:

Item Number: 7.

16 City of Cathedral City
68700 Avenida Lalo Guerrero
Cathedral City, CA 92234
Attention: City Manager
City of Coachella
53990 Enterprise Way
Coachella, CA 92236
Attention: City Manager
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Attention: City Manager
City of Indian Wells
44950 Eldorado Drive
Indian Wells, CA 92210
Attention: City Manager
City of Indio
100 Civic Center Mall
Indio, CA 92201
Attention: City Manager
City of La Quinta
78495 Calle Tampico
La Quinta, CA 92253
Attention: City Manager
City of Palm Desert
73510 Fred Waring Drive
Palm Desert, CA 92260
Attention: City Manager
City of Palm Springs
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: City Manager
City of Rancho Mirage
69825 Highway 111
Rancho Mirage, CA 92270
Attention: City Manager
County of Riverside
County Administration Center
4080 Lemon Street
Riverside, California 92501
Attention: County Clerk
Section 32. Counterparts
This Agreement may be executed in duplicate counterpart originals, each of which is deemed to be an original, and all of which when taken together shall constitute one and the same instrument.

Section 33. Privileges and Immunities
Pursuant to section 6513 of the Government Code, all of the privileges and immunities from liability, exemptions from laws, ordinances and rules, all pension, relief, disability, workmen’s compensation, and other benefits which apply to the activity of officers, agents or employees of any the Parties when performing their respective functions within the territorial limits of their respective public agencies, shall apply to them to the same degree and extent while engaged in the performance of any of their functions and duties performed extraterritorially under the provisions of this Agreement. [SIGNATURES APPEAR ON THE FOLLOWING PAGES]
Item Number: 7.

17 Item Number: 7.

18 IN WITNESS WHEREOF, the duly authorized representatives of the JPA Members have each executed this Agreement.

CITY OF CATHEDRAL CITY
_________________________________
Mark Carnevale, Mayor
Dated: ___________________________
_________________________________
Charlie McClendon, City Manager
ATTEST:
_________________________________
Tracey R. Hermosillo, City Clerk
APPROVED AS TO FORM:
________________________________
Eric S. Vail, City Attorney

CITY OF COACHELLA
_________________________________
Steven Hernandez, Mayor
Dated: ___________________________
_________________________________
Gabriel Martin, City Manager
ATTEST:
_________________________________
Angela M. Zepeda, City Clerk
APPROVED AS TO FORM:
________________________________
Carlos Campos, City Attorney

CITY OF DESERT HOT SPRINGS
_________________________________
Scott Matas, Mayor
Dated: ___________________________
_________________________________
Frank Luckino, City Manager
ATTEST:
_________________________________
Daniel McVey, City Clerk
APPROVED AS TO FORM:
________________________________
Jennifer Mizrahi, City Attorney

CITY OF INDIAN WELLS
_________________________________
Greg Sanders, Mayor
Dated: ___________________________
_________________________________
Christopher Freeland, City Manager
ATTEST:
_________________________________
Angelica Avila, City Clerk
APPROVED AS TO FORM:
________________________________
Todd Leishman, City Attorney
Item Number: 7.

19 CITY OF INDIO
_________________________________
Guadalupe Ramos Amith, Mayor
Dated: ___________________________
_________________________________
Bryan Montgomery, City Manager
ATTEST:
_________________________________
Cynthia Hernandez, City Clerk
APPROVED AS TO FORM:
________________________________
Steven P. Graham, City Attorney

CITY OF LA QUINTA
_________________________________
Linda Evans, Mayor
Dated: ___________________________
_________________________________
Jon McMillen, City Manager
ATTEST:
_________________________________
Monika Redeva, City Clerk
APPROVED AS TO FORM:
________________________________
William H. Ihrke, City Attorney

CITY OF PALM DESERT
_________________________________
Karina Quintanilla, Mayor
Dated: ___________________________
_________________________________
Todd Hileman, City Manager
ATTEST:
_________________________________
Anthony Mejia, City Clerk
APPROVED AS TO FORM:
________________________________
Isra Shah, City Attorney

CITY OF PALM SPRINGS
_________________________________
Jeffrey Bernstein, Mayor
Dated: ___________________________
_________________________________
Scott Stiles, City Manager
ATTEST:
_________________________________
Brenda Pree, City Clerk
APPROVED AS TO FORM:
________________________________
Jeffrey Ballinger, City Attorney
Item Number: 7.

20 CITY OF RANCHO MIRAGE
_________________________________
Steve Downs, Mayor
Dated: ___________________________
_________________________________
Isaiah Hagerman, City Manager
ATTEST:
_________________________________
Kristie Ramos, City Clerk
APPROVED AS TO FORM:
________________________________
Steven B, Quintanilla, City Attorney

COUNTY OF RIVERSIDE
_____________________________
_______
Chuck Washington, Chairman
_____________________________
_______
Jeff Van Wagenen, County
Executive Manager
ATTEST:
_____________________________
_______
Kimberly A. Rector, Clerk of the
Board
APPROVED AS TO FORM:
_____________________________
_______
Minh Tran, County Counsel
Item Number: 7.

21 EXHIBIT A

TERRITORIAL BOUNDARIES
Item Number: 7.

STAFF REPORT
TO: JPA Executive Committee
FROM: Scott White, President & CEO
DATE: March 26, 2024
SUBJECT: RECOMMEND APPROVAL AND ADOPTION OF RESOLUTION NO. JPA 2024-003; A RESOLUTION

OF THE JOINT POWERS AUTHORITY EXECUTIVE COMMITTEE OF VISIT GREATER PALM SPRINGS APPROVING AN AMENDMENT TO SECTION 12 OF THE AMENDED AND RESTATED JOINT POWERS

AGREEMENT REGARDING CONTRIBUTION SCHEDULE FOR JOINT POWERS AUTHORITY MEMBERS Staff Recommendation
Staff recommends that the JPA Executive Committee approve and adopt Resolution No. JPA 2024-003.

Background
VGPS staff recommended adding the City of Coachella to the JPA Executive Committee. This recommendation was based on the new economic development diversity recruitment responsibilities and the addition of short-term vacation rentals in the City of Coachella. During the JPA agreement amendment process VGPS staff learned that when the JPA was first established, an entry and operation fee were required of all JPA member agencies.

Upon executing the Joint Powers Agreement on February 1, 1989, the original JPA members (eight cities) paid an upfront fee to help establish the organization. Commencing July 1, 1989, and quarterly thereafter, each JPA member agency contributed an amount based on a funding formula.

The interim funding fee and interim operation fee were divided among the JPA member cities. The interim fee was based on .55% x gross sales and the operation fee was based on the interim fee multiplied by

15.62%. Please see the original interim funding schedule below:

Fiscal Year 1988/1989
Interim Funding Formula
FY 1987-1988 FY 1987-1988
City
Estimated Gross
Sales x .55%
Interim Operation x

15.62%
Desert Hot Springs $ 3,338,000.00 $ 18,359.00 $ 2,868.00 Palm Springs $ 63,333,000.00 $ 348,332.00 $ 54,409.00
Cathedral City $ 10,744,000.00 $ 59,092.00 $ 9,230.00
Rancho Mirage $ 23,750,000.00 $ 130,625.00 $ 20,404.00
Palm Desert $ 47,083,000.00 $ 258,957.00 $ 40,449.00
Indian Wells $ 9,857,000.00 $ 54,214.00 $ 8,468.00
La Quinta $ 9,250,000.00 $ 50,875.00 $ 7,947.00
Indio $ 5,375,000.00 $ 29,563.00 $ 4,618.00
Coachella $ - $ 10,000.00 $ 1,562.00
Total $ 172,730,000.00 $ 960,017.00 $ 150,000.00
Item Number: 7.

2 | P a g e
Riverside County joined the JPA Executive Committee in 1995. The amendment to the Joint Powers Agreement approving and adopting the membership of Riverside County established a minimum contribution of $30,000. The minimum annual contribution was subject to an annual increase at a rate of 5% per year. Outlined below are the historical payments made by Riverside County.

Riverside County Annual Contribution
1995 $ 31,500.00
1996 $ 31,500.00
1997 $ 33,000.00
1998 $ 34,729.00
1999 $ 36,465.00
2000 $ 38,288.00
2001 $ 40,202.00
2002 $ 42,216.00
2003 $ 44,323.00
2004 $ 46,540.00
2005 $ 48,865.00
2006 $ 57,172.00
2007 $ 57,172.00
2008 $ 48,824.00
2009 $ 36,618.00
New JPA formula began Jan 2010
2010 1st half $ 18,309.00
FY 2010-2011 $ -
FY 2011-2012 $ 12,000.00
FY
2012 through
2023 $ 12,500.00
When the TBID was established in 2009, the JPA formula was reduced by 75%. Riverside County annual contribution amount was reduced to align with the reduction of the JPA formula. Riverside County paid $12,500 each year since FY 12/13.

We have no record why Riverside County has not used the established JPA formula that is currently .015% of gross rental revenues for non-convention lodging and .035% for convention lodging.

For reference, the Riverside County estimated JPA formula contribution for FY 22/23 would have been $25,093.

Based on the City of Coachella’s historical transient occupancy tax (TOT) budget figures and using the JPA formula, the following table outlines what Coachella’s annual JPA contribution would have been for previous years. These calculations are for reference:

Item Number: 7.

3 | P a g e
City of Coachella
FY TOT
Gross
Revenues
JPA
Formula
2017/2018 $90,360.00  $1,004,000.00  $1,506.00
2018/2019 $133,385.00  $1,482,055.56  $2,223.08
2019/2020 $227,076.00  $2,523,066.67  $3,784.60
2020/2021 $533,044.00  $5,922,711.11  $8,884.07
2021/2022 $710,666.00  $7,896,288.89   $11,844.43
2022/2023 $380,060.00  $4,222,888.89  $6,334.33
2023/2024 $500,000.00  $5,555,555.56  $8,333.33
Based on the formula from FY 88/89 and the most recent estimated TOT collections, the initial fee charged to Coachella to join the JPA Executive Committee would be as follows:

The city of Coachella entry fee calculation is based on their FY 23/24 gross revenues estimate. $5,555,555.00 x .55% = $30,555 plus the operation fee ($30,555 x 15.62%) = $4,772. The total amount would be $35,327.

Staff are recommending any new member agency should pay the entry fee and the fee should be paid within 30 days of joining the JPA Executive Committee.

Outlined below are the current JPA contribution estimates. These figures may fluctuate depending on the final gross revenues and are provided for reference.

Visit Greater Palm Springs Funding Budgets - Desert
Cities 'Fiscal Year 2023-2024
JPA Member 23/24 Annual Contribution
Cathedral City $ 50,625.00
Desert Hot Springs $ 42,841.99
Indian Wells $ 285,714.29
Indio $ 77,550.00
La Quinta $ 389,393.18
Palm Desert $ 425,000.00
Palm Springs $ 874,599.17
Rancho Mirage $ 374,591.80
Riverside County $ 12,500.00
Staff is recommending due to the additional responsibilities of economic development recruitment and the broader benefits recognized by the member agencies, a minimum annual JPA member contribution of $35,000 or the current JPA formula, whichever is greater should be required by all member agencies, including Riverside County. The minimum fee would increase annually based on the CPI for Southern California. The JPA formula would not be subject to the CPI adjustment. The annual JPA member contribution, whether the minimum fee or formula fee, would be paid quarterly to the organization and adjusted at the end of the fiscal year based on actual gross room revenues.

Item Number: 7.

1 RESOLUTION NO. JPA 2024-003

A RESOLUTION OF THE JOINT POWERS AUTHORITY EXECUTIVE COMMITTEE

OF VISIT GREATER PALM SPRINGS APPROVING AN AMENDMENT TO SECTION 12 OF THE AMENDED AND RESTATED JOINT POWERS AGREEMENT

REGARDING CONTRIBUTION SCHEDULE FOR JOINT POWERS AUTHORITY

MEMBERS
WHEREAS, Visit Greater Palm Springs (VGPS) is a Joint Powers Authority (“JPA”) operating under the Joint Exercise of Powers Act (California Government Code §§6500 et seq.), located in the County of Riverside, State of California; and WHEREAS, the JPA Executive Committee serves as the governing body of VGPS; and
WHEREAS, the JPA Executive Committee adopted the Joint Powers Agreement (“Amended and Restated Agreement”) on January 20, 2016 (“JPA Agreement”); and
WHEREAS, section 12 of the JPA Agreement sets forth the contribution amounts for JPA Members’ participation in the JPA. Pursuant to the JPA Agreement, the contribution amounts may only be changed or amended with a unanimous vote of the JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies; and
WHEREAS, in accordance with the above referenced sections of the JPA Agreement, the JPA Executive Committee now desires to revise the JPA Members’ contribution amounts as set forth below.

NOW, THEREFORE, BE IT RESOLVED by the JPA Executive Committee of Visit Greater Palm Springs as follows:

Section 1. Recitals.

That the Recitals set forth above are true and correct.

Section 2. JPA Member Contributions.

That the JPA Executive Committee hereby approves and adopts the following amendment to section 12 (“Contributions”) of the JPA Agreement:
(a) Each new JPA Member shall pay to the JPA a one-(1) time fee of $__________ upon commencing membership in the JPA and within five (5) working days of the date of a written demand for payment from VGPS. (b) Each JPA Member shall pay to the JPA (i) the greater of $________ each year, or (ii) the applicable contribution amounts as set forth in the formula below, which may only be modified by a two-thirds vote of the entire JPA Executive Committee and a unanimous vote of the JPA Members’ legislative bodies. JPA Members’ legislative bodies shall, at a minimum, make quarterly payments of the annual contribution to VGPS.

A contribution from each ofthe JPA Members is a funding mechanism equal JOINT POWERS AUTHORITY EXECUTIVE COMMITTEE Gary Gardner, Chair
City of Desert Hot Springs
Waymond Fermon, Vice Chair
City of Indio
Mark Carnevale
City of Cathedral City
Greg Sanders
City of Indian Wells
Linda Evans
City of La Quinta
Jan Harnik
City of Palm Desert
Jeffrey Bernstein
City of Palm Springs
Steve Downs
City of Rancho Mirage
V. Manuel Perez
County of Riverside

Item Number: 7.

2 to:
.0015 x Gross Room Rental Revenue for Lodging Establishments excluding Convention Hotels, and
.0035 x Gross Room Rental Revenue for Convention Hotels (c) The Gross Room Rental Revenue described herein shall not include any transient occupancy tax rebate incentives provided by the JPA Members.

Section 3. That the President/Chief Executive Officer of VGPS and/or his designee shall take all reasonable steps to) seek the approval of the amendment to section 12 of the JPA Agreement by the legislative bodies of the JPA Members.

Section 4. Severability.

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

Section 5. Repeal of Conflicting Provisions.

That all the provisions heretofore adopted by Visit Greater Palm Springs or the Executive Committee that are in conflict with the provisions of this Resolution are hereby repealed.

Section 6. Effective Date.

That this Resolution shall take effect immediately upon its adoption.

Section 7. Certification.

That the Clerk of the Executive Committee shall certify as to the adoption of this Resolution and shall cause the same to be processed in the manner required by law.
[Remainder of this page intentionally left blank.]
Item Number: 7.

3 PASSED, APPROVED AND ADOPTED at a special meeting of the Joint Powers Authority (JPA) Executive Committee of Visit Greater Palm Springs, held on the __ day of March, 2024, by the following vote:

AYES:

NAYES:

ABSENT:

ABSTAIN:
___________________________________
Gary Gardner, Chair
Executive Committee
Visit Greater Palm Springs
ATTEST:
___________________________________
Sarah Goslin, Clerk for the Executive Committee
APPROVED AS TO FORM:
___________________________________
Lena D. Wade, General Counsel
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SR-24-092
City of Desert Hot Springs
City Council

AGENDA ITEM REPORT
To: City Council
Date: April 16, 2024
Department: Administrative Services
Prepared by: Tiffany Verduzco, Finance Manager
Subject: Professional Services Agreement for Audit Services RECOMMENDATION:

Authorize the City Manager to execute a Professional Services Agreement with The Pun Group for financial auditing and reporting services in an amount not to exceed $405,579 over five years; with substantive edits to be negotiated and approved by the City Manager and upon approval as to form by the City Attorney.

BACKGROUND:

In February 2024, the City issued a Request for Qualifications (RFQ) for qualified certified public accountants to perform annual audits starting with the fiscal year ending June 30, 2024, with the option of auditing its financial statements for two (2) subsequent fiscal years. The RFQ was posted to the City's website, submitted to various portals for RFQ submission on professional websites, and sent directly to four firms, including three firms that perform audit services for six other cities in the Coachella Valley. There was also an extension granted extending the deadline for submission from March 26,2024 to April 2, 2024. The extension was also communicated to the firms and there were responses received that there was no interest in submission or field work timeframe could not be accommodated.

Even though several firms were contacted and the deadline extended, the City received a total of one (1) certified public accounting firm responded to the Request for Qualifications in a timely manner.

The Pun Group has been the City’s independent audit firm for the past ten years. During that time, the firm has been providing the following services:
 Annual Audit and Financial Report
 Single Audit
 Gann Appropriations Limit
 Annual State Controller’s Report
 Transient Occupancy Tax Audit
 Utility Users Tax Audit
 Health & Wellness Foundation Audit and Tax Returns
 Housing Successor Agency Compliance Audit
Item Number: 8.

SR-24-092
The Pun Group has been instrumental in assisting the City implement significant Governmental Accounting Standards Board statements such as accounting and reporting for pensions, other postemployment benefits, and most recently, accounting for leases. The firm also provides training throughout the year to City staff on new accounting standards and processes. These services are provided at no extra cost to the City.

DISCUSSION:

The current professional services agreement between the City and the Pun Group ends with the issuance of the FY22-23 Audited Financial Statements. Staff would like to continue the relationship with the firm with a new three-year agreement with two optional one year extensions. The Pun Group is a knowledgeable and well-respected firm with over 35 years of combined professional experience and works with many cities and agencies throughout southern California including the cities of Palm Springs and Coachella. As the City continues with its financial software conversion, it is important to work with an audit firm that is familiar with the City. In order to keep a fresh perspective when auditing the City’s financial information, the Pun Group rotates the audit staff assigned to the City every several years.

FISCAL IMPACT:

Over the past several years, the cost of the City’s agreement with the Pun Group has been the following:
 FY17-18: $69,809
 FY18-19: $71,205
 FY19-20: $72,629
 FY20-21: $74,082
 FY21-22: $75,563
 FY22-23: $68,770
The proposed contract cost amounts for the next six years are as follows:
 FY23-24: $74,400
 FY24-25: $80,352
 FY25-26: $81,959
 FY26-27: $83,598 (optional extension)
 FY27-28: $85,270 (optional extension)
The cost of these services will be allocated in the Finance Department Contract Services line item (100-4320-41-15-0000) in future budgets.

ATTACHMENTS:
1) Professional Services Agreement - The Pun Group
2) The Pun Group - Technical Proposal
3) The Pun Group - Cost Proposal
Item Number: 8.

PROFESSIONAL SERVICES AGREEMENT

BY AND BETWEEN

CITY OF DESERT HOT SPRINGS
AND

THE PUN GROUP
This Professional Services Agreement (“Agreement”) is made and entered into on April 16, 2024, by and between the City of Desert Hot Springs, a municipal corporation located in the County of Riverside, State of California, hereinafter referred to as the “City,” and The Pun Group, hereinafter referred to as “Consultant.” RECITALS:

WHEREAS, the City desires to utilize the services of Consultant, as an independent contractor, to provide the City with professional auditing services (sometimes hereinafter, the “Services”); and
WHEREAS, Consultant represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.

NOW THEREFORE, IN CONSIDERATION OF THE COVENANTS,

CONDITIONS AND PROMISES CONTAINED HEREIN AND FOR SUCH OTHER

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

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

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

Section 3. TERM
This Agreement shall commence as of the date in the opening paragraph of this Agreement and shall continue in force and effect until completion of the Fiscal Year 2025-2026 Audited Financial Statement with the option of 2 one-year extensions for the completion of the FY2026-2027 and the FY2027-2028 Audited Financial Statements or terminated, in accordance with Section 7 of this Agreement, subject to allocation of funds pursuant to a duly approved City budget.

Section 4. COMPENSATION
Item Number: 8.

The City agrees to pay Consultant for and in consideration of the faithful performance of the Services and duties set forth in this Agreement, and Consultant agrees to accept from the City, as and for compensation for the faithful performance of said Services and duties, the amounts set forth in Exhibit A Professional Auditing Services Cost Proposal. The amount of this Agreement shall not exceed $405,579.

Consultant shall be reimbursed reasonable expenses associated with his Services, but only if the expenses are approved in advance in writing by the City Manager.

Section 5. METHOD OF PAYMENT
a. Consultant shall submit invoices to the City, not more often than once a month, describing the work performed. Consultant’s bills shall include a brief description of the services performed, the date the services were performed, the number of hours spent and by whom, and a description of any reimbursable expenditures. The City shall pay Consultant no later than thirty (30) days after approval of the invoice by City staff provided that the services reflected in the invoice were performed to the reasonable satisfaction of the City in accordance with the terms of this Agreement, that the number of hours of service set forth in the invoice reflect the amount of time ordinarily expended for such service by members of the profession currently practicing in the same locality under similar conditions, and that all expenses, rates and other information set forth in the invoice are consistent with the terms and conditions of this Agreement. Review and approval of invoice by City staff will occur within thirty (30) calendar days of receipt of invoice via email.
b. The Consultant shall submit invoices under this Agreement to:

Geoffrey Buchheim
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
Section 6. EXTRA WORK
At any time during the term of this Agreement, the City may request that Consultant perform Extra Work. As used herein, "Extra Work" means any work which is determined by the City to be necessary for the proper completion of the Services, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement. Consultant shall not perform Extra Work without written authorization from the City.

Section 7. TERMINATION
This Agreement may be terminated by the City immediately for cause. Either party may terminate this Agreement without cause upon twenty-four hours (24) hours written notice of termination to the other party. Upon termination, Consultant shall be entitled to compensation for services performed up to the effective date of termination, Item Number: 8.

provided that Consultant shall have satisfied all its obligations under this Agreement through and including the effective date of termination, and is not otherwise in breach of this Agreement.

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

Section 9. CONFIDENTIALITY
a. All ideas, memoranda, specifications, plans, procedures, drawings, photographs, descriptions, computer program data, input record data, written information, and other documents and data either created by or provided to Consultant in connection with the performance of this Agreement shall be held confidential by Consultant. Such materials shall not, without prior written consent of the City, be used by Consultant for any purposes other than the performance of the services under this Agreement, nor shall such materials be disclosed to any person or entity not connected with the performance of the services under this Agreement. Nothing furnished to Consultant which is otherwise known to Consultant or is generally known, or has become known, to the related industry shall be deemed confidential. b. Consultant shall not use the City’s insignia or photographs relating to Consultant’s Services, or any publicity pertaining to the Consultant’s Services under this Agreement in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of the City.

Section 10. CONSULTANT’S BOOKS AND RECORDS
a. Consultant shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to charges for services, or expenditures and disbursements charged to the City for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Consultant pursuant to this Agreement. b. Consultant shall maintain all documents and records which demonstrate performance under this Agreement for a minimum of three (3) years, or for any longer period required by law, from the date of termination or completion of this Agreement. c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or Item Number: 8.

a designated representative of these officers. Copies of such documents shall be provided to the City for inspection at City Hall when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Consultant’s address indicated for receipt of notices in this Agreement. d. Where the City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Consultant’s business, the City may, by written request of any of the above-named officers, require that custody of the records be given to the City and that the records and documents be maintained at City Hall. Access to such records and documents shall be granted to any party authorized by Consultant, Consultant’s representatives, or Consultant’s successor- in-interest.

Section 11. INDEPENDENT CONTRACTOR’S STATUS: NOT AGENT

OF THE CITY
Consultant shall at all times during the term of this Agreement remain, as to the City, a wholly independent contractor and shall perform the services described in this Agreement as an independent contractor and further, hereby waives any claims for any compensation or benefits afforded to City employees and not to independent contractors. Neither the City nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as herein set forth. Nothing contained in this Agreement shall be deemed, construed or represented by the City or Consultant or by any third person to create the relationship of principal and agent and Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. Consultant shall have no authority, express or implied, to act on behalf of the City in any capacity whatsoever as an agent, nor shall Consultant have any authority, express or implied, to bind the City to any obligation whatsoever.

Section 12. REPRESENTATIONS AND ACKNOWLEDGMENTS
REGARDING INDEPENDENT CONTRACTOR’S STATUS

OF CONSULTANT
a. Consultant represents and acknowledges the following:
(1) The City is not required to provide any training or legal counsel to Consultant or its employees in order for Consultant to perform the services described in this Agreement.
(2) Performance of the services described in this Agreement does not have to be integrated into the daily business operations of the City. (3) The services described in this Agreement can be performed without the use of City equipment, materials, tools or facilities.
(4) Nothing in this Agreement shall be interpreted to imply that the City must maintain any contractual relationship with Consultant on a continuing basis after termination of this Agreement.

Item Number: 8.

(5) The City will not be requested or demanded to assume any liability for the direct payment of any salary, wage or other such compensation to any person employed by Consultant to perform the services described in this Agreement. (6) Consultant shall not at any time or in any manner represent that it or any of its officers, employees, or agents are employees of the City. b. The City represents and acknowledges the following:
(1) Consultant is not required to comply with daily instructions from City staff with respect to when, where or how Consultant must perform the services set forth in this Agreement.
(2) Consultant is solely responsible for determining who, under the supervision or direction of Consultant, will perform the services set forth in this Agreement.
(3) The City will not hire, supervise or pay any assistants working for Consultant pursuant to this Agreement.
(4) Nothing in this Agreement shall be interpreted to imply that the Consultant must maintain any contractual relationship with the City on a continuing basis after termination of this Agreement.
(5) It is the sole responsibility of Consultant to set the hours in which Consultant performs or plans to perform the services set forth in this Agreement. (6) Consultant is not required to devote full time to the business operations of the City in order to perform the services set forth in this Agreement. (7) Consultant is not required to perform the services set forth in the Agreement in any particular order or sequence.
(8) Nothing in this Agreement shall be interpreted to preclude Consultant from working for other persons or firms, provided that such work does not create a conflict of interest.
(9) Consultant is not required to perform the Services at City-owned property. (10) Consultant will perform services that are outside the usual course of the City’s business.

Section 13. CIVIL CODE SECTION 1542 WAIVER
Consultant expressly waives any and all rights and benefits conferred upon it by the provisions of section 1542 of the California Civil Code which reads as follows:

Item Number: 8.

“A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.”
This waiver shall be effective as a bar to any and all actions, fees, damages, losses, claims, liabilities and demands of whatsoever character, nature and kind, that are known or unknown, or suspected or unsuspected, including, without limitation, claims of entitlements under the California Public Employees’ Retirement System (“CalPERS”) that are only afforded to employees and not independent contractors.

Consultant further represents and warrants that it understands this waiver and that if it does not understand this waiver, it shall seek the advice of a qualified attorney before executing this Agreement.
________
Initials
Section 14. CONFLICTS OF INTEREST
a. Consultant (including principals, associates and professional employees) covenants and represents that it does not have any investment or interest in real property and shall not acquire any interest, direct or indirect, in the area covered by this Agreement or any other source or income, interest in real property or investment which would be affected in any manner or degree by the performance of Consultant’s services hereunder. Consultant further covenants and represents that in the performance of its duties hereunder no person having any such interest shall perform any services under this Agreement.
b. Consultant is not a designated employee within the meaning of the Political Reform Act because Consultant:
(1) Does not make or participate in:
(i) the making or any governmental decisions regarding approval of a rate, rule, or regulation, the adoption or enforcement of laws;
(ii) the issuance, denial, suspension or revocation of permits, licenses, applications, certificates, approvals, orders, or similar authorization or entitlement;
(iii) authorizing the City to enter into, modify, or renew a contract; (iv) granting the City approval to a contract that requires City approval and to which the City is a party, or to the
specifications for such a contract;
(v) granting the City approval to a plan, design, report, study, or similar item; or
Item Number: 8.

(vi) adopting, or granting City approval of, policies, standards, or guidelines for the City or for any subdivision thereof. (2) Does not serve in a staff capacity with the City and in that capacity participate in making a governmental decision or otherwise perform the same or substantially all the same duties for the City that would otherwise be performed by an individual holding a position specified in the City’s Conflict of Interest Code under Government Code Section 87302.
c. In the event the City officially determines that Consultant must disclose its financial interests by completing and filing a Fair Political Practices Commission Form 700, Statement of Economic Interests, Consultant shall file the subject Form 700 with the City Clerk’s Office pursuant to the written instructions provided by the Office of the City Clerk.

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

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

Item Number: 8.

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

Section 17. INDEMNIFICATION
a. Consultant shall defend, indemnify and hold harmless the City, its officers, officials, agents, employees and volunteers from and against any and all claims, demands, actions, losses, damage, injuries, and liability, direct or indirect (including any and all costs, expenses and attorneys’ fees in connection therewith), arising out of the performance of this Agreement, except for any such claim arising out of the sole negligence, recklessness, or willful misconduct of the City, its officers, agents, employees or volunteers.
b. The City does not, and shall not, waive any rights that it may have against Consultant under this Section because of the acceptance by the City, or the deposit with the City, of any insurance policy or certificate required pursuant to this Agreement. The hold harmless, indemnification and duty to defend provisions of this Section shall apply regardless of whether or not said insurance policies are determined to be applicable to the claim, demand, action, damage, liability, loss, cost or expense described herein. c. Notwithstanding the provisions of subsections a. and b. of this section, Consultant shall not be responsible for damages or be in default or deemed to be in default by reason of delay caused by strikes, lockouts, accidents, or acts of God, or the failure of the City to furnish timely information or to approve or disapprove Consultant’s work promptly, or by reason of delay or faulty performance by the City, construction contractors, or governmental agencies, or by reason of any other delays beyond Consultant’s control, or for which Consultant is without fault. d. In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the City.

Section 18. RESERVED
Section 19. NOTICES
a. Any notice to be provided pursuant to this Agreement shall be in writing, and all such notices shall be delivered by personal service or by deposit in the United States mail, certified or registered, return receipt requested, with postage prepaid, and addressed to the parties as follows:

To the City: Frank Luckino
Item Number: 8.

City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92240
Telephone: (760) 329-6411
Facsimile: (760) 288-3129
Email: [email protected]
To Consultant: Kenneth Pun
The Pun Group
200 E Sandpointe Ave., Suite 600
Santa Ana, CA 92707
(949) 777-8801
[email protected]
b. Notices, payments and other documents shall be deemed delivered upon receipt by personal service or as of the second (2nd) day after deposit in the United States mail.

Section 20. DEFAULT
a. Failure or delay by any party to this Agreement to perform any material term or provision of this Agreement shall constitute a default under this Agreement; provided however, that if the party who is otherwise claimed to be in default by the other party commences to cure, correct or remedy the alleged default within fifteen (15) calendar days after receipt of written notice specifying such default and shall diligently complete such cure, correction or remedy, such party shall not be deemed to be in default hereunder.
b. The party which may claim that a default has occurred shall give written notice of default to the party in default, specifying the alleged default. Delay in giving such notice shall not constitute a waiver of any default nor shall it change the time of default; provided, however, the injured party shall have no right to exercise any remedy for a default hereunder without delivering the written default notice, as specified herein. c. Any failure or delay by a party in asserting any of its rights or remedies as to any default shall not operate as a waiver of any default or of any rights or remedies associated with a default.
d. In the event that a default of any party to this Agreement may remain uncured for more than fifteen (15) calendar days following written notice, as provided above, a "material breach" shall be deemed to have occurred. In the event of a material breach, the injured party shall be entitled to seek any appropriate remedy or damages as otherwise set forth herein and by initiating legal proceedings.

Section 21. REMEDIES
If Consultant materially breaches any of the terms of this Agreement, the City’s remedies shall include, but shall not be limited to, the following:

Item Number: 8.

a. Immediately terminate the Agreement;
b. Retain the plans, specifications, drawings, reports, design documents, and any other work product prepared by Consultant pursuant to this Agreement; c. Retain a different consultant to complete the Services that are not finished by Consultant.

Section 22. ENTIRE AGREEMENT
a. This Agreement supersedes any and all other agreements, either oral or written, between the City and Consultant with respect to the subject matter of this Agreement.
b. This Agreement contains all of the covenants and agreements between the parties with respect to the subject matter of this Agreement, and each party to this Agreement acknowledges that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement.
c. No agreement, statement, or promise not contained in this Agreement shall be valid or binding.

Section 23. MODIFICATIONS AND AMENDMENTS
This Agreement may be modified or amended only by a written instrument signed by both parties.

Section 24. ASSIGNMENT AND SUBCONTRACTING
a. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for the City to enter into this Agreement. Assignments of any or all rights, duties or obligations of the Consultant under this Agreement will be permitted only with the written consent of the City. b. Consultant shall not subcontract any portion of the work to be performed under this Agreement without the written consent of the City. If the City consents to such subcontract, Consultant shall be fully responsible to the City for all acts or omissions of the subcontractor. Nothing in this Agreement shall create any contractual relationship between the City and subcontractor nor shall it create any obligation on the part of the City to pay or to see to the payment of any monies due to any such subcontractor other than as required by law.

Section 25. WAIVER
a. No waiver shall be binding, unless executed in writing by the party making the waiver.

Item Number: 8.