Confidential 2 April 3, 2025
Company Qualifications and Related Experience
Company History
M&M Sweeping was founded in 1982 in the Coachella Valley where we remain today. We are a privately held firm. S Corporation with one office in Thousand Palms. We provide service 24 hours a day to municipalities, HOAs and commercial property owners.
Our office is open Monday through Friday 8:00-4:30 and a supervisor is available after hours by text 24x7x365. We have been providing sweeping services in the Valley since 1982 and performing drain services since 2006.
Starting with one truck and one driver, today we have 14 trucks in our fleet for HOA street cleaning, municipal road sweeping, construction cleanups and several smaller trucks for parking lots and a VacCon vacuum jet rodder for drain services. We currently employ 13 people who are well trained and experienced in their respective roles.
Eligibility to Bid
M&M Sweeping is under no adverse conditions. There is no pending litigation, wage disputes, or workers compensations claims. We are not closing offices or participating in any mergers or acquisitions, which might affect our ability to perform services under this contract. The firm is not debarred, suspended or ineligible to contract with federal, state or local public agencies.
Customer References
Customer Contact Phone Dates
City of Palm Desert David Reyes Jr. 760-346-0611 2004-Present City of Indian Wells Mihai Dan 760-578-2052 2020-Present Ironwood Country Club Jamie Mann 760-834-2487 2004-Present Palm Valley Country Club John Walters 818-486-2463 2024-Present We have serviced the City of Palm Desert for 21+ years, handling their street sweeping contract and city owned parking lots for commercial properties and parks.
Also, here is a partial list of large properties here in the desert area for which we currently provide service: The Vintage, The Reserve, PGA West Fairways, The Quarry, Ironwood, Indian Palms, Heritage Palms, The Lakes, and Desert Falls among others.
Item Number: 15.
Confidential 3 April 3, 2025
Scope of Services
Understanding
M& M Sweeping knows that street sweeping is an extremely noticeable city service that when done correctly and repeatedly, satisfies residents’ concerns for cleanliness and improves home values and commercial appeal. We also know the City is legally required to meet the mandates under California Integrated Waste Management Act (AB 939) and we serve a role in that mandate. Our street cleaning is listed as Best Management Practice (BMP) in storm water regulations and picks up the debris off the streets before it is carried into the City drain system. With our experience, people, equipment and processes, we believe that our quality street sweeping program is a great value and will meet the needs of the City.
Under this contract, M&M Sweeping will be responsible for:
“Sweeping of all asphalt berms, concrete curb and gutters, including all cross gutters, centerline ribbon gutters and paved center median islands citywide totaling approximately 100 centerline miles (local and collector streets). All streets identified in the attached exhibit (Project Scope Maps), shall be serviced at least once a month.”
Also, M&M will provide five (5) special sweep days of service from December through April, to be used at the City’s discretion.
Work Plan
The Office Manager is the Central Point of Contact for the City. The Office Manager will also be responsible for any accounts receivable issues, insurance certificates, Clean Truck certificate or other regulatory paperwork. Also, the Office Manager will maintain the complaint log and work to resolve any issues. She will gather dump tickets each week and compile them monthly to be included in a semiannual report. Any scheduling requests or changes will go first to the Office Manager, and she will be responsible for relaying them to the Operations Supervisor and communicating with the City.
The Supervisor will provide the driver(s) with a monthly schedule, amending it as needed for special sweeps, emergency sweeps and weather events (as requested by the City). The Supervisor will also be responsible for conducting periodic pre and post sweep inspections to ensure work is conducted to the City’s standards, reviewing Scheduled Reports provided by Intellishift Telematics for route completion and speeding violations.
The Maintenance Supervisor is responsible for everything necessary to meet up time requirements and performance. This includes scheduling all periodic maintenance, ordering parts and supplies and engaging with external vendors. The Maintenance Supervisor will supplement his own efforts with our sub-contractors who provide big-truck expertise and supplemental labor. We also have a mobile mechanic and service vehicle available around the clock to meet our commitments.
Item Number: 15.
Confidential 4 April 3, 2025
The Driver(s) is responsible for daily operations, which includes truck safety inspections, minor vehicle maintenance, completing assigned sweeping routes to City standards and reporting any issues.
All M&M Employees are provided an IOS cell phone for constant contact with each other and customers. The cell phone also provides location-based services in the event of GPS radio failure.
Routing:
We will develop, in coordination with the city, a route plan that will be designed in such a manner that all zones will be swept with ample time for the operator to do an excellent job. If for some reason the operator is behind or needs help, such as when and additional pass is required to meet city standards, an additional sweeper and operator will be supplied to ensure timely completion of routes. (See Proposed Schedule for more information)
Disposal of Refuse and Debris:
M&M Sweeping shall dispose of all refuse and debris that is collected during the normal sweeping operations, at no additional cost to the City. We will haul it to a legally established disposal area for solid waste. Dump tickets detailing how many loads were disposed in a given day/week/month will be provided in a report twice a year.
Facilities:
M&M Sweeping maintains an office at 72152 North Shore, Thousand Palms. The attached airconditioned workshop, and apron has the space to simultaneously repair several trucks. We do not maintain trucks on the street or in a parking lot. We have two parts rooms stocked with common maintenance supplies and repair parts, such as brooms, hydraulic motors and cylinders. We also maintain a “bone yard” where more difficult to source oversized parts are stored.
To meet PM10 requirements, our vehicles are parked offsite at a commercial truck washing facility that provides overnight truck and hopper cleaning on demand.
Item Number: 15.
Confidential 5 April 3, 2025
Work Force
Schedule of Personnel
Personnel Role and Experience Phone
Richard Juge President, 20 years 760-343-3003
Rosie Rivera Office Mgr, 12 years 760-343-3003
Pat Ortiz Supervisor, 12 years 760-625-8591
Elber Palomeque Driver, 15 years
Eric Ortiz Driver, 3 years
Arnulfo Oropeza Driver, 15 years
Silviano De Oca Driver, 25 year
Carlos Albarron Driver, 20 years
Pedro Robles Maintenance, 10 years
Turnover is destructive to performance and consistency. We strive to recognize our employees for their good work. As evidenced by the longevity of service, our employees have considerable experience and loyalty.
President and Owner, Richard Juge
Richard has been the sole owner of M&M Sweeping for 15 years. He’s a native of Anaheim and graduate of UC Irvine School of Business. Richard maintains a home in Palm Desert and has deep ties to the community. He bears full responsibility for the services provided under this contract and will participate in the planning and execution of this contract.
Office Manager, Rosie Rivera
Our office manager Rosie is the primary contact for business issues. She handles all our invoices and fulfills our insurance and licensing requirements. We do not have a faceless toll-free line where someone possibly hundreds of miles away. When the telephone rings, she is the one to answer the call. Whether it’s facilitating an emergency sweep, special sweep, or the handling of a complaint. Rosie is empowered to marshal the necessary resources and provide the quickest resolution. She maintains our call log for Item Number: 15.
Confidential 6 April 3, 2025
complaints, ensuring we gather the necessary information from the caller and providing the appropriate response and follow up with the customer or resident.
Supervisor, Pat Ortiz
Satisfaction and consistent quality service is the foundation of our company. Pat is a full-time employee and long-term resident of the valley. All our supervisors are highly trained, so all phases of the project run smoothly. They are directly involved with each account and job inspections to ensure quality. This type of supervision helps build operator pride.
Driver, Elber Palomeque
Elber will be the primary street sweeper operator for this contract. Along with his 15 years of experience to a variety of commercial customers, Elber provides similar services to Coachella Valley Water District, City of Palm Desert and City of Indian Wells
Other Drivers
Our drivers are encouraged to take their time as is necessary to do a great job in removing all leaves, paper, dirt, rocks, glass, bottles, cans, and other debris to ensure free flow of water in the gutter and to maintain streets in a state of cleanliness.
Our drivers are trained to value and care for their equipment. They are knowledgeable about proper driving speed, adjustment of brooms and the most efficient and effective performance of their equipment.
Our drivers understand the importance of punctuality and the importance of quality work. They take pride in our customers’ satisfaction.
Additional drivers will assist as required to provide timely services and supplement the primary driver.
Maintenance Supervisor, Pedro Robles
Pedro is a factory trained expert in the repair and maintenance of our equipment. Since coming aboard M&M Sweeping in 2022, Pedro has steadily improved our equipment’s availability, quality and performance. M&M Sweeping knows that one of the keys to customer satisfaction is dependable wellmaintained equipment. Consequently, we feel that the quality of our repairs and maintenance is crucial to our sweepers.
We have an additional full-time employee who is a mechanics helper and provides ad-hoc overnight and emergency services.
Item Number: 15.
Confidential 7 April 3, 2025
Equipment:
Fleet Description
Our fleet for municipal road sweeping includes the Tymco 600 CNG and Elgin Crosswinds CNG, which are compliant with AQMD rule 1186.1. Each truck has water nozzles for dust suppression at the broom, in the pickup head and within the hopper. The Tymco 600, holds 250 gallons of water, which requires fewer stops to replenish water and results in less dust and particulates on the streets, and cleaner air.
In case of a mechanical breakdown, backup equipment will be available at all times and M&M will comply with AQMD Rule 430.
GPS
M&M Sweeping equips all its trucks with global positioning satellite (GPS) receiver and cellular radios.
The data can be monitored in real-time or scheduled reports by the M&M Sweeping Supervisor. This permits M&M Sweeping to monitor the driver’s speed, time and location. The City will be provided with a user account at no additional cost.
Rule 1186 Compliance
All trucks used in this contract will be regenerative air vacuum sweepers that comply with South Coast Air Quality Management District (SCAQMD) Rule 1186.1 Less-Polluting Sweepers.
Clean Truck Compliance
California Senate Bill 210, 2019 directed California Air Resources Board to implement a heavy-duty vehicle inspection and maintenance program beginning January 2023. All vehicles providing services as a part of the contract are Clean Truck compliant. (see attached compliance certificates) Schedule of Trucks
Asset # Model Fuel PM10 Clean Truck
128 Tymco 600 CNG Yes Yes
129 Tymco 600 CNG Yes Yes
138 Elgin
Crosswind
CNG Yes Yes
139 Elgin
Crosswind
CNG Yes Yes
Item Number: 15.
Confidential 8 April 3, 2025
Proposed Schedule
Figure 1 - Project Scope of Maps
In cooperation with the city, we will develop a mutually acceptable schedule and route that allows M&M Sweeping to complete all sweeping in a timely manner according to City standards.
Using the “Project Scope of Maps” as a guideline, we will provide a driver dedicated to the City of Desert Hot Springs and sweep the streets as identified in the RFP.
Item Number: 15.
Confidential 9 April 3, 2025
Pricing Schedule
Unit Price
Sweeping of all asphalt berms, concrete curb and gutters, including all cross gutters, centerline ribbon gutters and paved center median islands citywide totaling approximately 100 centerline miles (local and collector streets). All streets identified in the exhibit attached to the RFP (Project Scope Maps), serviced at least once a month,
Five (5) Special Sweep days of service from December through April. $111,600 per annum
Note: Price is subject to change during the contract term based on the annual Consumer Price Index and with the approval from the City Council.
Item Number: 15.
Confidential 10 April 3, 2025
Attachments
Business License
Currently, we only provide services in the City of Desert Hot Springs through an independent contractor. In the event we are awarded this contract, a new business license will be purchased. We are licensed to conduct business in several cities in Coachella Valley and the County of Riverside.
Figure 2 - Business Registration, County of Riverside
Item Number: 15.
Confidential 11 April 3, 2025
Proof of Liability
Figure 3 - Certificate of Liability Insurance, General
Item Number: 15.
Confidential 12 April 3, 2025
Workers Comp
Figure 4 - Certificate of Liability, Workers Compensation Item Number: 15.
Confidential 13 April 3, 2025
W9
Figure 5 - Signed W-9
Item Number: 15.
Confidential 14 April 3, 2025
AQMD Rule 1186 Certificates
SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT (South Coast AQMD) RULE 1186 CERTIFIED* STREET SWEEPERS AS OF JULY 10, 2024 THE FOLLOWING IS A LIST OF STREET SWEEPING EQUIPMENT THAT HAS CURRENTLY BEEN CERTIFIED FOR South Coast AQMD RULE 1186. ALL CERTIFIED EQUIPMENT MUST BE OPERATED AND MAINTAINED IN ACCORDANCE WITH THE MANUFACTURER'S SPECIFICATIONS. FUTURE TESTING MAY QUALIFY ADDITIONAL EQUIPMENT. CALL 1 (800) CUT-SMOG FOR
THE CURRENT LIST
MAKE MODEL* DUST CONTROL SYSTEM*
Elgin Crosswind J • DIAMOND GRID DUST SEPARATION SCREEN • S-TRAP CENTRIFUGAL SEPARATOR
• FOUR (4) 0.06 INCH DIAMETER ORIFICE NOZZLES LOCATED INSIDE HOPPER • THREE (3) 0.059 INCH DIAMETER ORIFICE NOZZLES LOCATED INSIDE SUCTION TUBE • THREE (3) 0.057 INCH DIAMETER ORIFICE NOZZLES LOCATED AT EACH SIDE BROOM • WATER PUMP TO PROVIDE 80 POUNDS PER SQUARE INCH WATER PRESSURE TYMCO 600
600 BAH
FHD
500X
• CYCLONIC, MULTIPASS, CENTRIFUGAL SEPARATION
• CENTER DEBRIS DEFLECTOR ASSEMBLY PERPENDICULAR TO THE PICK UP HEAD • FRONT DEBRIS DEFLECTOR CURTAIN ASSEMBLY PARALLEL TO THE PICK UP HEAD • LOW EMISSION DUST GUARDS (ONLY APPLICABLE TO CABOVER TRUCKS) • THREE (3) 0.063 INCH DIAMETER ORIFICE NOZZLES FOR EACH GUTTER BROOM • TWO (2) 0.043 INCH DIAMETER ORIFICE NOZZLES FOR EACH GUTTER BROOM • ONE (1) 0.093 INCH DIAMETER ORIFICE NOZZLE LOCATED IN THE HOPPER • ONE (1) 0.093 INCH DIAMETER ORIFICE NOZZLE LOCATED IN BLOWER HOUSING • TWO (2) [MINIMUM] HOPPER BAFFLE CURTAINS
• WATER PUMP WITH A MINIMUM SYSTEM RELIEF VALVE SET AT 25 POUNDS PER
SQUARE INCH
* In order to ensure compliance with Rule 1186 requirements, all certified equipment must be operated and maintained in accordance with the manufacturer's specifications. End users are responsible for ensuring that the dust control systems are in place for each certified sweeper. Note: The make and model of the sweeper must have the dust control system(s) specified above to be in compliance. (Standard or older models may not have all the systems). Please contact the manufacturer if you would like to ensure that your sweeper(s) are Rule 1186 compliant. http://www.aqmd.gov/docs/default-source/rule-book/support-documents/rule1186/certified-street-sweepers-equipment-list.pdf Item Number: 15.
Confidential 15 April 3, 2025
Clean Truck Certificate
Figure 6 - Clean Truck Certificate for truck 128
Item Number: 15.
Confidential 16 April 3, 2025
Badges
Every M&M Sweeping employee or contractor is issued a company badge with their name matching their driver’s license, a current photo and date of issue.
Figure 7 Badge Front
Figure 8 - Badge Rear
Item Number: 15.
Confidential 17 April 3, 2025
Uniforms
M&M Sweeping Drivers are provided with an ample supply of high-visibility shirts and they are expected to wear them while working. The shirts have the name of the company on the front and back with a phone number for easy identification and contact.
Figure 9 - Front of Shirt
Figure 10 - Back of Shirt
Item Number: 15.
Confidential 18 April 3, 2025
Intellishift Telematics
M&M Sweeping uses GPS transceivers and radios, along with a cloud-based portal provided by Intellishift for tracking and reporting. As a part of the contract, the City will be provided with a user account with full access to the trucks providing services as a part of this contract.
We use Intellishift Telematics map-based route playback for route reviews and service level inspections.
Figure 11 - Intellishift Route Playback screenshot
With real-time location we can track the motion of all our trucks, increasing visibility and insight.
Figure 12 - Real Time Map View
Item Number: 15.
Confidential 19 April 3, 2025
Our primary use of Intellishift is through On-Demand and Scheduled reporting. We use reporting to statistically analyze driver, truck and route performance.
Figure 13 - Intellishift Reporting
For every new customer. we construct Geo Fences, which are used to define a service area and inform reporting and route playback. We currently maintain more than 235 active Geo fences.
Figure 14 - Geo Fence Map
Item Number: 15.
SC/‘r‘
Sweeping Corp of America
CITY OF DESERT HOT SPRINGS
Request for Proposal to Perform
City—WideStreet Sweeping Services
Response Submitted by: SCA of CA, LLC
Bid Due: Thursday, April 3, 2025, no later than 2:00 pm.
Item Number: 15.
SCA‘11)lI‘WAClrli-li?l‘Vli
April 2, 2025
City of Desert Hot Springs
11999 Palm Drive
Desert Hot Springs, CA 92440
Dear Public Works Administrators,
On behalf of SCA of CA, LLC('SCA'), we are pleased to present our response to your Request for Proposal for City—WideStreet Sweeping Services. As a company built on a foundation of satisfaction and outstanding quality service, we have developed unparalleled expertise in delivering comprehensive street cleaning services for municipalities across California.
For more than five years it has been our privilege to serve as your trusted sweeping services provider. Our comprehensive grasp of your street sweeping needs and requirements are what distinguishes us from other suppliers, SCA’sexceptional quali?cations and in-depth understanding of the project scope for the City of Desert Hot Springs.
SCA boasts a highly skilled team of sweeper operators along with an expert support staff. This ensures that we use the most ef?cient routes and can swiftly address any emergency sweeping needs that arise from traf?c accidents or other unexpected events.
We are proud of our reputation for reliability, teamwork. integrity, ef?ciency, and environmental compliance. We leverage this experience to establish a higher standard for street sweeping services and to continually enhance our operations, while ensuring full compliance with local, state, and federal regulations. Our team is dedicated to a customer-focused approach and has built a powerful reputation for providing prompt, courteous, and professional service.
We look forward to the opportunity to continue to serve you and your residents.
Should you have any questions, please do not hesitate to contact Rick Anderson at 310.740.1601, randersongsweepingcorpcom.
Respectfully,
Brad Becker | Regional Vice President | bbeckergsweepingcorpcom Item Number: 15.
Proposed Pricing
Our proposed annual pricing to perform city-wide street sweeping service for the City of Desert Hot Springs as outlined in your RFP is:
$158,400.00/year
Item Number: 15.
SCA Alignment with Required Services
SCA currently sweeps the streets of the City of Desert Hot Springs Therefore, there will be no obstacles preventing us from continuing to provide an elevated level of service to the City of Desert Hot Springs. You can rest easy knowing that you will not experience any disruption in service that you might encounter with another, less quali?ed provider. We will continue to service the City of Desert Hot Springs as we do today should we be awarded the contract.
We have examined, clearly understand, and are familiar with the scope of sweeping services SCA already in place the equipment, personnel, and capacity to perform all services listed in your RFP. Our approach, de?ned below, aligns with the City's requirements.
We will utilize a regenerative air street sweeper (Tymco 600) to thoroughly sweep all asphalt berms, concrete curb, and gutters, including all cross gutters, centerline ribbon gutters and paved center median islands citywide totaling approximately 100 centerline miles (local and collector streets) for the City of Desert Hot Springs. 0 Our driver will sweep all designated streets depicted in the Exhibit included in your RFP.
~Z~Sweep all streets identi?ed in red will be swept a minimum of one time a month.
'3’ Ensure there is no conflict with the City’s trash pick—upschedule, 0 Utilize an established street sweeping schedule.
0 Provide ?ve special sweep days of service from December through April upon noti?cation of the City in advance of the scheduled sweeps. o Respond to emergency sweeping request within 12 hours. 0 Staf?ng for the City of Desert Hot Springs consists of one full—time street sweeper operator. This approach will allow SCA to complete posting times.
During leaf season, additional drivers may be utilized to complete routes in a timely manner,
0 Conduct more than one pass when necessary. . Sweepers will not be operated faster than 10 mph when sweeping paper, leave, or light trash and no more than 5 mph when sweeping typical accumulation of dirt, sand, and gravel.
- Spray water on the street during street sweeping operation in full compliance with Air Quality Management District (AQMD — PMlO requirements.
Item Number: 15.
SCA Team Supporting the City of Desert Hot Springs
Our commitment to our customers is what drives our success. Our Fontana team will provide the highest level of service and customer support to the City of Desert Hot Springs and your residents. Our team is committed to providing comprehensive street sweeping services to include all other maintenance required to maintain the areas included in this contract in a safe, attractive, and usable condition.
Teamwork is the cornerstone of our success, as we believe that collaboration leads to innovation and superior results. Integrity is non-negotiable in our organization, and we hold ourselves to the highest ethical standards every day. Having a professional and experienced team is crucial to delivering top—level service and support to meet the expectations of the City of Desert Hot Springs.
Alexandra Zaragoza will continue to serve as the SCA primary contact for the City of Desert Hot Springs. The following is a listing of the role byjob title, experience, and estimated time of completion.
Job Title: Operations Manager
Experience: 3 Years
Estimated time: ~75 hours/year
Job Title: Sweeper Operator/Driver
Experience: 15 Years
Estimated time: ~54O hours/year
Job Title: Branch Manager
Experience: 3 Years
Estimated time: ~30 hours/year
Job Title: District Manager
Experience: 3 Years
Estimated time: 20 hours/year
Item Number: 15.
Equipment Overview
With a fleet of Regenerative Air and Power Mechanical Brooms (All PM-lO compliant), SCA is equipped to manage anyjob. Our team is prepared to deliver year—round service with essential equipment, dedicated sweepers, and backup units. In case of a mechanical breakdown or general maintenance requirements, backup equipment will always be available to ensure uninterrupted performance. Furthermore, we stock all the primary spare parts for our sweepers to ensure swift repairs and quick return to service on the streets.
Equipment Listing
We plan to use the following sweepers that will serve as the primary and backup sweepers for the City of Desert Hot Springs.
Make Model Year Compliance
Certi?cate
See attached Carb
Freightliner M2 /Tymco 2022 Certi?cate in the
Forms section
See attached Carb
Freightliner M2 /Tymco 2020 Certi?cate in the
Forms section
See attached Carb
Freightliner M2 /Tymco 2021 Certi?cate in the
Forms section.
Dust Control System ErFuel—Ef?cient Equipment
Our Mechanical Broom £7Regenerative Airsweeping units are equipped with PM-lO compliant dust control systems and AQMD Rule 1186 low emissions packages.
Each unit also carries a 220-gallon capacity polyethylene water tank; a 5 pm High Output Water electric diaphragm type pump; a low water warning light; an external water level indicator; spray nozzles around pick-up head; gutter broom(s) and an inside hopper.
Front Spray Bar Adaptation
To address potential dry conditions, we have added an extra spray bar to the front of our sweeping units. This enhanced spray system applies additional water to the ground, effectively preventing dust from being released into the air.
Item Number: 15.
GPS — Vehicle Tracking Technology
Our trucks are equipped with GPS
Tracking Systems. These systems track the
street sweeper's route on a minute—byminute basis. The GPS tracking unit collects continuous and accurate real—
time information to verify service on all
routes. This technology and additional
steps we have taken to provide optimal
service include:
Reports that provide checks and 7
balances in billings and if necessary, to
reroute or re-sweep to accommodate customer service requests Our Samsara platform ensures all fleet maintenance activities are scheduled and tracked in advance. This platform also digitizes inspections/compliance reporting and procedures that allows all driver operators to complete various forms (DVIR, Daily Logs) digitally.
We have similarly invested in internal diagnostics systems to screen for vehicle codes.
These codes proactively provide alerts that allow our team to address equipment concerns which minimizes vehicle downtime.
Daily oversight of GPS tracking including curb mile sweeping and "brooms-down" productivity,
Additional safety controls include working with third party organizations which oversee all DOT and BiTcompliance — this measure ensures consistent safety reviews as well as dependable and regulation—compliant equipment on the road.
Item Number: 15.
Proven Experience with Similar Work
We have had the pleasure of supporting the comprehensive street sweeping needs of many municipalities in and around the SoCal area as well as across the state of California. Listed below are SCA customers who are similar in size and scope to the City of Desert Hot Springs.
Customer
Name Contact
Phone
Number Price
City of Buena Park Mark Perumean
[email protected]
714.522.2577 “'5600,000.00/year
Hollywood Media
District
Dianna Eisenberg
[email protected] 323.371.7438 ”$410,000.00/year City of Ventura
Chris Palmieri
[email protected]
805.701.1722 ~$400,000/year
Item Number: 15.
Required Forms
SCAof CA 2025 Carb Compliance Certi?cate
City of Desert Hot Springs Business License
Certi?cate of Insurance
W-9
Item Number: 15.
CALIFORNIA / AIR RESOURCES BOARD
Certi?cate of Reported Compliance With:
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Item Number: 15.
BUSINESS LICENSE
BUSINESS NAME:
BUSINESS LOCATION:
BUSINESS OWNER:
OWNER NAME:
MAILINGADDRESS:
CITYOF DESERT HOT SPRINGS
TAXCOLLECTOR 5 OFFICE my ul Desen Hol Sprungs. The person. mmurcorporamnnamed below and whose resuience or place cl DuSlness .s lumen as mere shown, havlng mxsday paid (a meTax Collector mesum SpeClI-Ied.l5 hereby lvcensed lo engage m lhe buslness‘ pmlession or occupallon named‘ m ma(my ol Desert Hot Springs Iorlhe (arm sndlng on medale wmcnappears slated an lhls Imense Thls lvcense l5 issued pursuanl and sumac!lo all the Laws and Ovdmancas regulalmg Ilcense lees adopled by the owCounCIland appllcable numaconduct olsuch busmess. prolessicn oraccupallon m memy ol Desert Hm Spnngs. The person, nrmwrporallon below named l5 hereby gramed license pumam la meprowsions of lhe Desert Hot Spnngs ausmassLicense ommanceand all other Ovdmances ollhe (My ol Desan Hot Spnngs lo engage m‘ carry on Dr candum m (he only chesen Hal Spnngs‘ mebusiness. lvade calllng‘ pvolessmn or exmmuon. descnbad as renews.Thls userse15 Issued wlIhnuI VEnIIcaIKanthat [he Incensee KS sumac!ID or exempt ham lxcensmg by meSIM: OICalvlomla.The law requlres a swam slalemem UIhusmess transacted SCA OF CA, LLC DESCRIPTION:
1937 W. 169TH ST, GARDENA, CA 90247 CLASSIFICATION:
ERIN BOYTA QUINN BUSINESS TYPE:
Erin Boyta Quinn
4141 ROCKSIDE ROAD,
STE 100.
Seven Hills,OH 44131
EFFECTIVE DATE:
EXPIRATIONDATE:
BUSINESS LICENSE NUMBER:
Street/Roadway/Parking Lo! Sweeping
X - General Business (Based an # of
Employees)
STREET SWEEPING
BUSL-22-505
May 20. 2024
June 30. 2025
Item Number: 15.
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THIS IS TO CERTIFYTHATTHE POLICIES OF INSURANCELISTED BELOW HAVEBEEN ISSUEDTO THE INSURED NAMEDABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDINGANY REQUIREMENT.TERM OR CONDITIONOF ANYCONTRACT OR OTHER DOCUMENTWITHRESPECT TO WHICH THIS CERTIFICATE MAYBE ISSUED OR MAYPERTAIN.THE INSURANCEAFFORDEDBY THE POLICIES DESCRIBEDHEREINIS SUBJECT TO ALLTHE TERMS.
EXCLUSIONSANDCONDITIONSOF SUCH POLICIES. LIMITSSHOWNMAYHAVEBEENREDUCED BYPAIDCLAIMS.
INSR POLICY EFF POLICYEXP TYPE OF INSURANCE mm POLICY NUMBER MMIDDIYYYY MMIDD LIMITS c X COMMERCIALGENERAL LIABILITY GL6676535 6l1l2024 0/112025
2.1.3.3E 02......
—m_ - POLICY 5597'El LOC __
CA6676536 6/1/2024 6I1l2025 52.000.000
INSURED SWEECOR-O1 SCA of CA, LLC
4141 Rockside Road.Suite 100
Seven HillsOH 44131
ANYAUTO - OTHER:
) SCHEDULED BODILYINJURY(Per accident) AUTOSONLY AUTOS X HIRED NON-OWNED PROPERTYDAMAGE AUTOS ONLY AUTOS ONLY Per accident I UMBRELLALIAB OCCUR P-001-000882635 611/2024 6l1l2025 55000300 x
CH24EXCZOGQVPIC 511/2024 61112025 I
excessma I cumming 55.000.000
IMI— —_ WORKERS ANDEMPLOYERS' COMPENSATION
LIABILITY
6/ 1I2024 6/1/20 25 ---- x PER OTH- —
ANYPROPRIETORIPARTNERIEXECUTIVE 51.000000 E.L.DISEASE- EAEMPLOYEE S 1.000.000 OFFICERIMEMBEREXCLUDED? E.L. DISEASE- POLICYLIMIT 5 1.000.000
(Mandatory In NH)
Limit 51.000.000
Ifyes. describe under DESCRIPTIONOF OPERATIONSbelow 5.39"Incident/Dad: 51.000.000 Wt $1,000,000 LDS4068227(CA)
Stop Gap Liability- OH
PoIIutionLiability
Crime
LDS4068227 6/1I2024 6/1/2025
CH24ECPZO1ECGIC 6/1/2024 6/1/2025
8400-2199 61/1/2024 6/1I2025
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101.Additional Remarks Schedule.may be attached It more space is required) Proof of Insurance
CERTIFICATE HOLDER CANCELLATION
SHOULDANY OF THE ABOVE DESCRIBED POLICIESBE CANCELLED BEFORE THE EXPIRATION DATE THEREOF.NOTICE WILL BE DELIVERED IN ACCORDANCEWITHTHE POLICY PROVISIONS.
City OfDesert Hot Springs
11999 Palm Drive AUTHORIZEDREPRESENTATIVE Desert Hot Springs CA 92240 WV— © 1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD Item Number: 15.
W-9
(Rev. March 2024)
Department at the Treasury
internal Revenue Service
Before you begin. For guidance related to the purpose of Form W-9, see Purpose of Form.below, 1 Name of entity?ndividual. An entry is required (For a sole proprietor or disregarded entity. enter the owner's name on line 1. and enter the business/disregarded entity's name on line 2.)
SCA of CA, LLC
2 Business name/disregarded entity name.it different from above.
Request for Taxpayer Give for". .0 me
Identification Number and Certi?cation requester. Do not send to the IRS. Go to www.irs.gov/FormW9 for instructions and the latest Iniormatlon. 3a Check the appropriate box for federaltax classi?cation of the entity?ndividual whose name is entered on line 1. check 4 Exemptions (codes apply only to only one of the following seven boxes. certain entities, not individuals; see instructions on a e 3 : D individual/sole proprietor 1:] c corporation [1 s corporation El Partnership )3 Trust/estate p 9 )
6 me, Enter the tax classification (0 = c corporation, 5 = s corporation. P = Partnership) . . . . C Exempt payee code (Ifany) n/a S
Note: Check the "LLC" box above and. in the entry space. enter the appropriate code (C. S. or P) for the tax 5 classi?cation of the LLC.unless it ts a disregarded entity. A disregarded entity should instead check the appropriate Exemption lrom Foreign Account Tax a box tor the tax classi?cation of its owner. Compliance Act (FATCA) reporting .- . E [:1 Other (see instructions) code (if any)
A. 3b If on line 33 you checked “Partnership" or "Trust/estate," or checked "LLC" and entered “P" as its tax Classi?cation. and you are providing this term to a partnership. trust, or estate in which you have an ownership Interest. check this box if you have any Ioreign partners. owners.or beneficiaries. See instructions . (Applies to accounts maintained
outside the United States.)
5 Address (number. street. and apt. or suite no.) See instructions. Requester‘s name and address (optional) mailing: 4141 Rockside Road.Ste 100, Seven Hills, OH 44131 6 City. state. and ZIP code
remittance: PO Box 84533 Seattle, WA 98124-5833
1 List account numberis) here (optional)
Taxpayer Identification Number (TIN)
Enter yourTlN in the appropriate box. The TIN provided must match the name given on line 1 to avoid backup withholding. For individuals.this is generally your social security number (SSN). However. for a resident alien.sole proprietor. or disregarded entity. see the instructions for Part I.later. For other entities, it is your employer identi?cation number (EIN),If you do not have a number.see How to get a TIN.later.
Social security number
0"
Employer identi?cation number Note: If the account is in more than one name.see the instructions for line 1. See also What Name and Number To Give the Requester for guidelines on whose number to enter. 8 6 - 1 9 3 1 8 1 2 Part | Certi?cation
Under penalties of perjury. I certify that:
1. The number shown on this form is my correct taxpayer identification number (or I am waiting for a number to be issued to me); and
2. I am not subject to backup withholding because (a) I am exempt from backup withholding. or (b) l have not been noti?ed by the Internal Revenue Service (IFIS)that i am subject to backup withholding as a result of a failure to report all interest or dividends. or (c) the lFiS has noti?ed me that I am no longer subject to backup withholding; and
3. I am a US. citizen or other U.S. person (defined below): and
4. The FATCA code(5) entered on this form (it any) indicating that I am exempt from FATCA reporting is correct.
Certi?cation instructions. You must cross out item2 above it you have been nothied by the lRS that you are currently subject to backup withholding because you have failed to report allinterest and dividends on your tax return. For real estate transactions. item 2 does not apply. For mortgage interest paid. acquisition or abandonment of secured property. cancellation of debt. contributions to an individual retirement arrangement (iRA).and. generally. payments other than interest and dividendsu are not required to sign the certification.but you must provide your correct 1‘th See the instructionsior Part It.later. 45m d/r manor Sign Signature of Here u.s. person
' General New line so has been added to this form. A (low-through entity is InStrucuons required to complete this line to indicate that it has direct or indirect Section references are to the Internal Revenue Code unless otherwise foreign partners. owners.or bene?ciaries when it provides the Form W»9 noted. to another flow-through entity in which it has an ownership interest. This change is intended to provide a ?ow-through entity with information regarding the status of its indirect foreign partners. owners.or beneficiaries.so that it can satisfy any applicable reporting requirements. For example, a partnership that has any indirect foreign What's New partners may be required to complete Schedules K-2 and K-3t See the Partnership Instructions for Schedules K-Zand K-3 (Form 1065).
Future developments. For the latest information about developments related to Form W~9and its instructions.such as legislation enacted after they were published. go to www.irs.gov/FormW9.
LineGa has been modi?ed to clarify how a disregarded entity completes this line. An LLCthat is a disregarded entity should check the Purpose of Form appropriate box for the tax classi?cation oi its owner. Otherwise.it should check the “LLC” box and enter its appropriate tax classi?cation. An individual or entity (Form W-9 requester) who is required to ?le an information return with the IRS is giving you this form because they Cat. No. iozaix Form W-9 (Rev. 3-2024)
Item Number: 15.
Sent RFPs to (on 3/6/25):
• SCA of CA, LLC/Clean Street, LLC
o Richard Anderson
o [email protected]
o 310-740-1601
• Quality Street Service
o Scott Hugie
o [email protected]
o 800-979-3372
• M&M Sweeping
o Richard Juge
o [email protected]
o 760-343-3003
• Martin Sweeping
o Mike Garrison
o [email protected]
o 760-601-6092
M&M Sweeping References
City of Palm Desert
David Reyes
760-346-0611
• No answer. Voicemail.
City of Indian Wells
Mihai Dan
760-578-2052
• Have had differences. Overall good company. Issues in the past with drivers.
Someone that can oversee them.
• 7 overall, maybe 8.
• Make sure everything needed is in the bid, they will not complete if not in RFP. • Not enough water.
• Tracking.
• Going around trees or bushes, not cleaning.
• Schedules were different as to what was said.
• Lately it has become better.
Ironwood Country Club
Jamie Mann
• Could not reach.
Palm Valley Country Club
John Walters
• Voicemail.
Item Number: 15.
Sweeping Corporation of America, LLC References
City of Buena Park
Mark Perumean
[email protected]
714-522-2577
• Not able to contact via phone.
Hollywood Media District
Dianna Eisenberg
[email protected]
323-371-7438
• Voicemail.
City of Ventura
Joe – Public Works
[email protected]
805-701-1722
• Do not contract directly, solid waste franchise agreement, services through that. • Work with them closely.
• Responsive, are immediate to remediate.
• 8 from scale 10.
• Overall do a great job.
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SR-25-107
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: May 6, 2025
Department: City Clerk
Prepared by: Jerryl Soriano, City Clerk
Subject: Second Reading and Adoption of Cannabis Retail Tax Amendment Ordinance
RECOMMENDATION:
Approve second reading, read by title only and adopt: "An Ordinance of the City Council of the City of Desert Hot Springs, California, 1) amending Desert Hot Springs Municipal Code Chapters 3.34 (Titled "Marijuana Tax") and 3.37 (Titled "Medical Marijuana Tax") to amend various Sections in both Chapters to lower recreational and medical retail taxes." BACKGROUND:
The Ordinance (Exhibit 2) was introduced and approved for first reading by the City Council on April 15, 2025.
The ordinance shall take effect thirty (30) days after its second reading.
FISCAL IMPACT:
An approximate loss in cannabis retail sales tax revenue of $600,000 to $750,000 annually.
ENVIRONMENTAL ANALYSIS:
The adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.
ATTACHMENTS:
1) Staff Report from April 15, 2025
2) Ordinance Lowering Cannabis Retail Taxes
Item Number: 16.
SR-25-075
City of Desert Hot Springs
City Council
AGENDA ITEM REPORT
To: City Council
Date: April 15, 2025
Department: City Manager
Prepared by: Christina Newsom, Acting Deputy City Manager Subject: Ordinance Cannabis Retail Tax Amendment
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, 1) amending Desert Hot Springs Municipal Code Chapters 3.34 (Titled "Marijuana Tax") and 3.37 (Titled "Medical Marijuana Tax") to amend various Sections in both Chapters to lower recreational and medical retail taxes." BACKGROUND:
On April 1, 2025, the City Council approved staff’s recommendation for the following amendments to Title 3 of the Desert Hot Springs Municipal Code:
1) Bring forth an Ordinance to reduce the marijuana retail tax rate from 10% of all gross sales to 5% of all gross sales.
DISCUSSION:
This proposed Ordinance incorporates City Council direction as per the above.
Chapters 3.34 and 3.37 of the Desert Hot Springs Municipal Code (“DHSMC”) regulate marijuana retail taxes. Chapter 3.34 regulates recreational sales, and Chapter 3.37 regulates medical sales.
The proposed Ordinance will amend both Chapters to:
Lower the retail tax from 10% to 5% of all gross sales.
FISCAL IMPACT:
An approximate loss in cannabis retail sales tax revenue of $600,000 to $750,000 annually.
Item Number: 16.
SR-25-075
ENVIRONMENTAL ANALYSIS:
The adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the adoption of this Ordinance in question may have a significant effect on the environment.
ATTACHMENTS:
1) Ordinance Lowering Cannabis Retail Taxes
Item Number: 16.
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA, 1) AMENDING CHAPTERS 3.34 (TITLED “MARIJUANA TAX”) AND 3.37 (TITLED “MEDICAL MARIJUANA
TAX”) TO AMEND VARIOUS SECTIONS IN BOTH CHAPTERS TO
LOWER RECREATIONAL AND MEDICAL RETAIL TAXES
WHEREAS, the City of Desert Hot Springs (“City”) is a municipal corporation and a charter city; and
WHEREAS, it has come to the City’s attention that various marijuana retailers have inquired into having the City lower retail taxes for storefront and non-storefront retail facilities, as defined by Desert Hot Springs Municipal Code Section (“DHSMC”) section 17.180.030, and regulated pursuant to DHSMC Section 17.180.040 and DHSMC Section 17.180.045; and
WHEREAS, DHSMC Section 3.34.005 as it relates to recreational marijuana retail currently imposes taxes as follows, “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 within the City shall pay to the City a monthly tax of 10 percent of its proceeds from such sales or provision.;” and WHEREAS, DHSMC Section 3.37.005 as it relates to medical marijuana cultivation currently imposes taxes as follows, “Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally selling or providing medical marijuana within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.) shall pay to the City a monthly tax of 10 percent of its proceeds from such sales or provision.;” and
WHEREAS, DHSMC Section 3.34.040 provides in part that the City Council can amend the recreational retail marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Section 3.37.060 provides in part that the City Council can amend the medical retail marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Sections 3.34.050 (recreational) and 3.37.070 (medical) provide, among other things that the City Manager, or designee, and/or the City Council by ordinance may promulgate regulations to implement Chapter 3.34 and 3.37; and WHEREAS, during several public meetings the City Council met to discuss marijuana retail taxation in general, and provided Staff direction to lower Marijuana Retail Taxes, among other things; and
Item Number: 16.
WHEREAS, the City Council deems now that storefront and non-storefront retail facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section 17.180.040 and DHSMC Section 17.180.045, as applicable to both recreational and medical marijuana facilities, should have their retail taxes lowered to encourage the City’s competitive advantage; and
WHEREAS, at this time, the City Council desires to amend Chapter 3.34 and
3.37 to explicitly lower the retail tax for storefront and non-storefront retail facilities, from a monthly tax of 10 percent of their proceeds from sales or provision to a monthly 5 percent tax of their proceeds from sales and provisions; and
WHEREAS, the equal dignity rule requires Chapters 3.34 and 3.37 as proposed by this Ordinance be adopted by ordinance; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this ordinance is good for the public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:
Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.
Section 2. AMENDMENT OF CHAPTER 3.34 TITLED “MARIJUANA
TAX” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
(FOR RECREATIONAL MARIJUANA RETAIL)
The following sections of Chapter 3.34 of the Municipal Code shall be amended to read as follows, and all other sections in Chapter 3.34 shall remain in full force and effect and untouched:
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 within the City shall pay to the City a monthly tax of 5 10 percent of its proceeds from such sales or provision.
3.34.060 Cannabis fee collection system
All cannabis facilities shall coordinate and create an account with the City's cannabis fee collection system to collect all monthly surcharges.
Item Number: 16.
3.34.010 Purpose of tax.
The purpose of this tax is to raise revenue to fund general municipal services.
3.34.020 Customers.
This tax shall not be specifically charged or assessed to any customers or consumers of marijuana subject to this tax. Payment and remittance of the tax to the City shall solely be the responsibility of the person or entity selling or providing the marijuana in the City.
3.34.030 Proceeds.
“Proceeds” shall mean gross receipts of any kind, including, without limitation, membership dues; the value of in-kind contributions, exchanges, bartered goods or services; the value of volunteer work; reimbursements provided by members regardless of form; cash payments; and anything else of value obtained by any person or entity for legally selling or providing marijuana in the City.
3.34.040 Modification, repeal, or amendment.
The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein.
3.34.045 Marijuana Manufacturing Facilities.
Marijuana manufacturing facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section 17.180.060, and as amended, are not subject to the taxes of this chapter.
3.34.050 Administration.
The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter.
3.34.060 Penalties.
Any entity that fails to pay the taxes required by this chapter within 30 days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to 25 percent of the total amount due. Additional penalties will be assessed in the following manner: 10 percent shall be added on the first day of each calendar month following the month of the imposition of the 25 percent penalty if the tax remains unpaid— up to a maximum of 100 percent of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.
Item Number: 16.
3.34.070 Additional penalties.
A. Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters 4.16 and 4.28 of this municipal code.
B. The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city.
C. The remedies in this Chapter are cumulative, and in addition to any and all other remedies, civil, equitable, or criminal, afforded to the City.
D. Any person owing any tax and related interest and penalty under the provisions of this Chapter shall be liable in an action brought in the name of the City in any court of competent jurisdiction for recovery of any such amount.
E. Except as otherwise provided, the amendment or repeal of any portion of this Chapter or other portions of this code affecting this Chapter shall not be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City from any person under the provisions of said code as they existed prior to such amendment or repeal.
3.34.080 Records inspection.
Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records must be maintained for at least seven years.
3.34.090 Application of provisions.
No payment of any tax required under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter implies or authorizes that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California and permitted by the City.
Section 3. AMENDMENT OF CHAPTER 3.37 “MEDICAL
MARIJUANA TAX” OF THE DESERT HOT SPRINGS
MUNICIPAL CODE (FOR MEDICAL MARIJUANA RETAIL)
The following sections of Chapter 3.37 of the Municipal Code shall be amended to read as follows, and all other sections in the Chapter 3.37 shall remain in full force and effect and untouched:
3.37.005 Imposition of tax.
Item Number: 16.
Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally selling or providing medical marijuana within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.) shall pay to the City a monthly tax of 5 10 percent of its proceeds from such sales or provision.
3.37.006 Cannabis fee collection system.
All cannabis facilities shall coordinate and create an account with the City's cannabis fee collection system to collect all monthly surcharges.
3.37.010 Purpose of tax.
The purpose of this tax is to raise revenue to fund general municipal services.
3.37.020 Qualified patients and caregivers.
This tax shall not be specifically charged or assessed to any qualified patient or primary caregiver. Payment and remittance of the tax to the City shall solely be the responsibility of the medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity, that is authorized to legally sell or provide medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health And Safety Code Section 11362.5 et seq.).
3.37.030 Medical Marijuana Program Act.
Unless otherwise specifically provided in this chapter, the words, terms and phrases used in this chapter shall have the same meanings set forth in the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.).
3.37.040 Legally selling or providing.
“Legally selling or providing” shall mean any marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity authorized by City ordinance to sell, distribute, exchange, deliver, provide or dispense medical marijuana within the jurisdictional boundaries of the City of Desert Hot Springs.
3.37.050 Proceeds.
“Proceeds” shall mean gross receipts of any kind, including, without limitation, membership dues; the value of in-kind contributions, exchanges, bartered goods or services; the value of volunteer work; reimbursements provided by members regardless of form; cash payments; and anything else of value obtained by any medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity for legally selling or providing medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.).
Item Number: 16.
3.37.060 Modification, repeal, or amendment.
The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein.
3.37.065 Marijuana Manufacturing Facilities.
Marijuana manufacturing facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section 17.180.060, and as amended, are not subject to the taxes of this chapter.
3.37.070 Administration.
The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter.
3.37.080 Penalties.
Any entity that fails to pay the taxes required by this chapter within 30 days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to 25 percent of the total amount due. Additional penalties will be assessed in the following manner: 10 percent shall be added on the first day of each calendar month following the month of the imposition of the 25 percent penalty if the tax remains unpaid— up to a maximum of 100 percent of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.
3.37.090 Additional penalties.
A. Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters 4.16 and 4.28 of this municipal code.
B. The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city.
C. The remedies in this Chapter are cumulative, and in addition to any and all other remedies, civil, equitable, or criminal, afforded to the City.
D. Any person owing any tax and related interest and penalty under the provisions of this Chapter shall be liable in an action brought in the name of the City in any court of competent jurisdiction for recovery of any such amount.
E. Except as otherwise provided, the amendment or repeal of any portion of this Chapter or other portions of this code affecting this Chapter shall not be construed to operate as a release or waiver of any liability or sum of money which Item Number: 16.
may be due or owing to the City from any person under the provisions of said code as they existed prior to such amendment or repeal.
3.37.100 Records inspection.
Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records must be maintained for at least seven years.
3.37.110 Application of provisions.
No payment of any tax required under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter implies or authorizes that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California and permitted by the City.
3.37.120 Operative date.
This tax shall become operative commencing upon the effective date of an ordinance permitting marijuana collectives, cooperatives, dispensaries, operators, establishments, providers or other type of entities to sell, distribute, exchange, deliver, provide or dispense medical marijuana within the jurisdictional boundaries of the City of Desert Hot Springs.
Section 4. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.
Section 5. 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 6. 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.
Item Number: 16.
Section 7. EFFECTIVE DATE
That this ordinance shall take effect pursuant to law.
Section 8. 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 ______, 2025 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_______________________________
Scott Matas, Mayor
ATTEST:
_________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_________________________________
Jennifer A. Mizrahi, City Attorney
Item Number: 16.
ORDINANCE NO. _____
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF DESERT
HOT SPRINGS, CALIFORNIA, 1) AMENDING CHAPTERS 3.34 (TITLED “MARIJUANA TAX”) AND 3.37 (TITLED “MEDICAL MARIJUANA
TAX”) TO AMEND VARIOUS SECTIONS IN BOTH CHAPTERS TO
LOWER RECREATIONAL AND MEDICAL RETAIL TAXES
WHEREAS, the City of Desert Hot Springs (“City”) is a municipal corporation and a charter city; and
WHEREAS, it has come to the City’s attention that various marijuana retailers have inquired into having the City lower retail taxes for storefront and non-storefront retail facilities, as defined by Desert Hot Springs Municipal Code Section (“DHSMC”) section 17.180.030, and regulated pursuant to DHSMC Section 17.180.040 and DHSMC Section 17.180.045; and
WHEREAS, DHSMC Section 3.34.005 as it relates to recreational marijuana retail currently imposes taxes as follows, “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 within the City shall pay to the City a monthly tax of 10 percent of its proceeds from such sales or provision.;” and WHEREAS, DHSMC Section 3.37.005 as it relates to medical marijuana cultivation currently imposes taxes as follows, “Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally selling or providing medical marijuana within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.) shall pay to the City a monthly tax of 10 percent of its proceeds from such sales or provision.;” and
WHEREAS, DHSMC Section 3.34.040 provides in part that the City Council can amend the recreational retail marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Section 3.37.060 provides in part that the City Council can amend the medical retail marijuana tax in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval; and
WHEREAS, DHSMC Sections 3.34.050 (recreational) and 3.37.070 (medical) provide, among other things that the City Manager, or designee, and/or the City Council by ordinance may promulgate regulations to implement Chapter 3.34 and 3.37; and WHEREAS, during several public meetings the City Council met to discuss marijuana retail taxation in general, and provided Staff direction to lower Marijuana Retail Taxes, among other things; and
Item Number: 16.
WHEREAS, the City Council deems now that storefront and non-storefront retail facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section 17.180.040 and DHSMC Section 17.180.045, as applicable to both recreational and medical marijuana facilities, should have their retail taxes lowered to encourage the City’s competitive advantage; and
WHEREAS, at this time, the City Council desires to amend Chapter 3.34 and
3.37 to explicitly lower the retail tax for storefront and non-storefront retail facilities, from a monthly tax of 10 percent of their proceeds from sales or provision to a monthly 5 percent tax of their proceeds from sales and provisions; and
WHEREAS, the equal dignity rule requires Chapters 3.34 and 3.37 as proposed by this Ordinance be adopted by ordinance; and
WHEREAS, the City Council finds that the adoption of this ordinance is categorically exempt from environmental review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment; and
WHEREAS, the City Council finds that this ordinance is good for the public health, safety and welfare.
NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Desert Hot Springs as follows:
Section 1. RECITALS
That the foregoing recitals are true and correct and are herein adopted by this reference.
Section 2. AMENDMENT OF CHAPTER 3.34 TITLED “MARIJUANA
TAX” OF THE DESERT HOT SPRINGS MUNICIPAL CODE
(FOR RECREATIONAL MARIJUANA RETAIL)
The following sections of Chapter 3.34 of the Municipal Code shall be amended to read as follows, and all other sections in Chapter 3.34 shall remain in full force and effect and untouched:
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 within the City shall pay to the City a monthly tax of 5 10 percent of its proceeds from such sales or provision.
3.34.060 Cannabis fee collection system
Item Number: 16.
All cannabis facilities shall coordinate and create an account with the City's cannabis fee collection system to collect all monthly surcharges.
3.34.010 Purpose of tax.
The purpose of this tax is to raise revenue to fund general municipal services.
3.34.020 Customers.
This tax shall not be specifically charged or assessed to any customers or consumers of marijuana subject to this tax. Payment and remittance of the tax to the City shall solely be the responsibility of the person or entity selling or providing the marijuana in the City.
3.34.030 Proceeds.
“Proceeds” shall mean gross receipts of any kind, including, without limitation, membership dues; the value of in-kind contributions, exchanges, bartered goods or services; the value of volunteer work; reimbursements provided by members regardless of form; cash payments; and anything else of value obtained by any person or entity for legally selling or providing marijuana in the City.
3.34.040 Modification, repeal, or amendment.
The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein.
3.34.045 Marijuana Manufacturing Facilities.
Marijuana manufacturing facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section 17.180.060, and as amended, are not subject to the taxes of this chapter.
3.34.050 Administration.
The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter.
3.34.060 Penalties.
Any entity that fails to pay the taxes required by this chapter within 30 days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to 25 percent of the total amount due. Additional penalties will be assessed in the Item Number: 16.
following manner: 10 percent shall be added on the first day of each calendar month following the month of the imposition of the 25 percent penalty if the tax remains unpaid— up to a maximum of 100 percent of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.
3.34.070 Additional penalties.
A. Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters 4.16 and 4.28 of this municipal code.
B. The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city.
C. The remedies in this Chapter are cumulative, and in addition to any and all other remedies, civil, equitable, or criminal, afforded to the City.
D. Any person owing any tax and related interest and penalty under the provisions of this Chapter shall be liable in an action brought in the name of the City in any court of competent jurisdiction for recovery of any such amount.
E. Except as otherwise provided, the amendment or repeal of any portion of this Chapter or other portions of this code affecting this Chapter shall not be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City from any person under the provisions of said code as they existed prior to such amendment or repeal.
3.34.080 Records inspection.
Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records must be maintained for at least seven years.
3.34.090 Application of provisions.
No payment of any tax required under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter implies or authorizes that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California and permitted by the City.
Item Number: 16.
Section 3. AMENDMENT OF CHAPTER 3.37 “MEDICAL
MARIJUANA TAX” OF THE DESERT HOT SPRINGS
MUNICIPAL CODE (FOR MEDICAL MARIJUANA RETAIL)
The following sections of Chapter 3.37 of the Municipal Code shall be amended to read as follows, and all other sections in the Chapter 3.37 shall remain in full force and effect and untouched:
3.37.005 Imposition of tax.
Every medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity legally selling or providing medical marijuana within the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.) shall pay to the City a monthly tax of 5 10 percent of its proceeds from such sales or provision.
3.37.006 Cannabis fee collection system.
All cannabis facilities shall coordinate and create an account with the City's cannabis fee collection system to collect all monthly surcharges.
3.37.010 Purpose of tax.
The purpose of this tax is to raise revenue to fund general municipal services.
3.37.020 Qualified patients and caregivers.
This tax shall not be specifically charged or assessed to any qualified patient or primary caregiver. Payment and remittance of the tax to the City shall solely be the responsibility of the medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity, that is authorized to legally sell or provide medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health And Safety Code Section 11362.5 et seq.).
3.37.030 Medical Marijuana Program Act.
Unless otherwise specifically provided in this chapter, the words, terms and phrases used in this chapter shall have the same meanings set forth in the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.).
3.37.040 Legally selling or providing.
“Legally selling or providing” shall mean any marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity authorized by City ordinance to sell, distribute, exchange, deliver, provide or dispense medical marijuana within the jurisdictional boundaries of the City of Desert Hot Springs.
3.37.050 Proceeds.
Item Number: 16.
“Proceeds” shall mean gross receipts of any kind, including, without limitation, membership dues; the value of in-kind contributions, exchanges, bartered goods or services; the value of volunteer work; reimbursements provided by members regardless of form; cash payments; and anything else of value obtained by any medical marijuana collective, cooperative, dispensary, operator, establishment, provider or other type of entity for legally selling or providing medical marijuana in the City, consistent with the provisions of the Medical Marijuana Program Act (California Health and Safety Code Section 11362.5 et seq.).
3.37.060 Modification, repeal, or amendment.
The City Council may repeal this chapter, or amend it in a manner which does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein, without further voter approval. If the City Council repeals any provision of this chapter, it may subsequently reenact it without voter approval, as long as the reenacted provision does not result in an increase in the amount of the tax or broaden the scope of the tax imposed herein.
3.37.065 Marijuana Manufacturing Facilities.
Marijuana manufacturing facilities, as defined by DHSMC Section 17.180.030 and regulated pursuant to DHSMC Section 17.180.060, and as amended, are not subject to the taxes of this chapter.
3.37.070 Administration.
The City Manager, or designee, and/or the City Council by ordinance, may promulgate regulations to implement and administer the provisions of this chapter.
3.37.080 Penalties.
Any entity that fails to pay the taxes required by this chapter within 30 days after the due date shall pay in addition to the taxes a penalty for nonpayment in a sum equal to 25 percent of the total amount due. Additional penalties will be assessed in the following manner: 10 percent shall be added on the first day of each calendar month following the month of the imposition of the 25 percent penalty if the tax remains unpaid— up to a maximum of 100 percent of the tax payable on the due date. Receipt of the tax payment by the City shall govern the determination of whether the tax is delinquent. Postmarks will not be accepted as adequate proof of a timely payment.
3.37.090 Additional penalties.
A. Any violation of this chapter shall constitute a public nuisance and infraction pursuant to the provisions of Chapters 4.16 and 4.28 of this municipal code.
B. The amount of any tax, interest and penalty imposed by this Chapter shall be deemed a debt to the city.
Item Number: 16.
C. The remedies in this Chapter are cumulative, and in addition to any and all other remedies, civil, equitable, or criminal, afforded to the City.
D. Any person owing any tax and related interest and penalty under the provisions of this Chapter shall be liable in an action brought in the name of the City in any court of competent jurisdiction for recovery of any such amount.
E. Except as otherwise provided, the amendment or repeal of any portion of this Chapter or other portions of this code affecting this Chapter shall not be construed to operate as a release or waiver of any liability or sum of money which may be due or owing to the City from any person under the provisions of said code as they existed prior to such amendment or repeal.
3.37.100 Records inspection.
Whenever it is necessary to examine any books or records, including tax returns, of any entity subject to the provisions of this chapter, to ascertain the amount of any tax due pursuant to this chapter, the City shall have the power and authority to examine such necessary books and records at any reasonable time including, but not limited to, during normal business hours. Records must be maintained for at least seven years.
3.37.110 Application of provisions.
No payment of any tax required under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal business or of a legal business in an illegal manner. Nothing in this chapter implies or authorizes that any activity connected with the cultivation, possession or provision of marijuana is legal unless otherwise authorized and allowed by the State of California and permitted by the City.
3.37.120 Operative date.
This tax shall become operative commencing upon the effective date of an ordinance permitting marijuana collectives, cooperatives, dispensaries, operators, establishments, providers or other type of entities to sell, distribute, exchange, deliver, provide or dispense medical marijuana within the jurisdictional boundaries of the City of Desert Hot Springs.
Section 4. SEVERABILITY
That should any provision, section, paragraph, sentence or word of this ordinance be rendered or declared invalid by any final court action in a court of competent jurisdiction or by reason of any preemptive legislation, the remaining provisions, sections, paragraphs, sentences or words of this ordinance as hereby adopted shall remain in full force and effect.
Section 5. REPEAL OF CONFLICTING PROVISIONS
Item Number: 16.
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 6. 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 7. EFFECTIVE DATE
That this ordinance shall take effect pursuant to law.
Section 8. 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 ______, 2025 by the following vote:
AYES:
NOES:
ABSTAIN:
ABSENT:
_______________________________
Scott Matas, Mayor
ATTEST:
_________________________________
Jerryl Soriano, City Clerk
APPROVED AS TO FORM:
_________________________________
Jennifer A. Mizrahi, City Attorney
Item Number: 16.