8. Contractors are encouraged to participate in voluntary associations, which assist in fulfilling one or more of their affirmative action obligations (7a through 7p). The efforts of a contractor association, joint contractor -union, contractor-community, or other similar group of which the Contractor is a member and participant may be asserted as fulfilling any one or more of its obligations under 7a through 7p of these specifications provided that the Contractor actively participates in the group, makes every effort to assure that the group has a positive impact on the employment of minorities and women in the industry, ensures that the concrete benefits of the program are reflected in the Contractor’s minority and female workforce participation, makes a good faith effort to meet its individual goals and timetables, and can provide access to documentation which demonstrates the effectiveness of actions taken on behalf of the Contractor. The obligation to comply, however, is the Contractor’s and failure of such a group to fulfill an obligation shall not be a defense for the Contractor’s noncompliance.
9. A single goal for minorities and a separate single goal for women have been established.
The Contractor, however, is required to provide equal employment opportunity and to take affirmative action for all minority groups, both male and female, and all women, both minority and non- minority. Consequently, the Contractor may be in violation of the Executive Order if a particular group is employed in a substantially disparate manner (for example, even though the Contractor has achieved its goals for women generally, the Contractor may be in violation of the Executive Order if a specific minority group of women is underutilized).
10. The Contractor shall not use the goals and timetables or affirmative action standards to discriminate against any person because of race, color, religion, sex, sexual orientation, gender identity, or national origin.
11. The Contractor shall not enter into any subcontract with any person or firm debarred from Government contracts pursuant to Executive Order 11246.
12. The Contractor shall carry out such sanctions and penalties for violation of these specifications and of the Equal Opportunity Clause, including suspension, termination, and cancellation of existing subcontracts as may be imposed or ordered pursuant to Executive Order 11246, as amended, and its implementing regulations, by the Office of Federal Contract Compliance Programs. Any contractor who fails to carry out such sanctions and Item 1S - Page 60
Revised 4.13.23 Page 57 of 70
penalties shall be in violation of these specifications and Executive Order 11246, as amended.
13. The Contractor, in fulfilling its obligations under these specifications, shall implement specific affirmative action steps, at least as extensive as those standards prescribed in paragraph 7 of these specifications, so as to achieve maximum results from its efforts to ensure equal employment opportunity. If the Contractor fails to comply with the requirements of the Executive Order, the implementing regulations, or these specifications, the Director shall proceed in accordance with 41 CFR part 60-4.8.
14. The Contractor shall designate a responsible official to monitor all employment related activity t o ensure that the company EEO policy is being carried out, to submit reports relating to the provisions hereof as may be required by the Government, and to keep records. Records shall at least include for each employee, the name, address, telephone numbers, construction trade, union affiliation if any, employee identification number when assigned, social security number, race, sex, status (e.g., mechanic, apprentice, trainee, helper, or laborer), dates of changes in status, hours worked per week in the indicated trade, rate of pay, and locations at which the work was performed. Records shall be maintained in an easily understandable and retrievable form; however, to the degree that existing records satisfy this requirement, contractors shall not be required to maintain separate records.
15. Nothing herein provided shall be construed as a limitation upon the application of other laws which establish different standards of compliance or upon the application of requirements for the hiring of local or other area residents (e.g. those under the Public Works Employment Act of 1977 and the Community Development Block Grant Program).
Reference: 2 CFR 200, Appendix II(C), 41 CFR § 60- 1.4, 41 CFR § 60- 4.3, Executive Order 11246
Item 1S - Page 61
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FAA – 17 Federal Fair Labor Standards Act
APPLICABILITY – Contract Types – Per the Department of Labor, all employees of certain enterprises having workers engaged in interstate commerce; producing goods for interstate commerce; or handling, selling, or otherwise working on goods or materials that have been moved in or produced for such commerce by any person are covered by the FLSA.
All consultants, sub-consultants, contractors, and subcontractors employed under this federally assisted project must comply with the FLSA.
Professional Services – 29 CFR § 213 exempts employees in a bona fide executive, administrative or professional capacity. Because professional firms employ individuals that are not covered by this exemption, the agreement with a professional services firm must include the FLSA provision.
REQUIREMENT -
The provisions of 29 CFR part 201, the Federal Fair Labor Standards Act (FLSA), are incorporated by reference with the same force and effect as if given in full text. The FLSA sets minimum wage, overtime pay, recordkeeping, and child labor standards for full and part -time workers.
The Contractor has full responsibility to monitor compliance to the referenced statute or regulation. The Contractor must address any claims or disputes that arise from this requirement directly with the U.S. Department of Labor – Wage and Hour Division.
Reference: 29 USC § 201, et seq; 2 CFR § 200.430
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FAA – 18 Lobbying and Influencing Federal Employees
APPLICABILITY- all contracts exceeding $100,000.
REQUIREMENT -
Consultants and contractors that apply or bid for an award of $100,000 or more must have certified that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency , a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant, or another award covered by 31 USC §1352. Each tier must also disclose any lobbying with non -Federal funds that takes place in connection with obtaining any Federal award.
For an award over $100,00, the bidder or offeror certifies by signing and submitting this bid or proposal, to the best of his or her knowledge and belief, that:
• No Federal appropriated funds have been paid or will be paid, by or on behalf of the bidder or offeror, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. • If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form -LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.
• The undersigned shall require that the language of this certification be included in the award documents for all sub- awards at all tiers (including subcontracts, sub -grants, and contracts under grants, loans, and cooperative agreements) and that all sub- recipients shall certify and disclose accordingly.
This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
Reference: 31 USC § 1352 – Byrd Anti-Lobbying Amendment, 2 CFR part 200, Appendix II(I), 49 CFR part 20, Appendix A
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FAA – 19 Prohibition of Segregated Facilities
APPLICABILITY - The Contractor must comply with the requirements of the EEO clause by ensuring that facilities they provide for employees are free of segregation on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin. This clause must be included in all contracts that include the equal opportunity clause, regardless of the amount of the contract.
Contract Types – any contract containing the Equal Employment Opportunity clause of 41 CFR § 60-1.4. This obligation flows down to s ubcontract and sub-tier purchase orders containing the Equal Employment Opportunity clause.
Construction – Construction work means construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilities providing utility services. The term also includes the supervision, inspection, and other onsite functions incidental to the actual construction.
Equipment – On site installation of equipment such as airfield lighting control equipment meets the definition of construction and thus this provision would apply. This provision does not apply to equipment projects involving manufacture of the item at a vendor’s manufacturing plant. An example would be the manufacture of a SRE or ARFF vehicle.
Professional Services – Professional services that include tasks that qualify as construction work as defined by 41 CFR part 60 -1. Examples include the installation of nois e monitoring equipment.
Property/Land – Land acquisition contracts that include tasks that qualify as construction work as defined by 41 CFR part 60- 1. Examples include demolition of structures or installation of boundary fencing.
REQUIREMENT -
(a) The Contractor agrees that it does not and will not maintain or provide for its employees any segregated facilities at any of its establishments, and that it does not and will not permit its employees to perform their services at any location under its control where segregated facilities are maintained. The Contractor agrees that a breach of this clause is a violation of the Equal Employment Opportunity clause in this contract. (b) “Segregated facilities,” as used in this clause, means any waiting rooms, work areas, res t rooms and wash rooms, restaurants and other eating areas, time clocks, locker rooms and other storage or dressing areas, parking lots, drinking fountains, recreation or entertainment areas, transportation, and housing facilities provided for employees that are segregated by explicit directive or are in fact segregated on the basis of race, color, religion, sex, sexual orientation, gender identity, or national origin because of written or oral policies or employee custom. The term does not include separate or single-user rest rooms or necessary dressing or sleeping areas provided to assure privacy between the sexes. (c) The Contractor shall include this clause in every subcontract and purchase order that is subject to the Equal Employment Opportunity clause of this contract.
Reference: 2 CFR Part 200, Appendix II (C); 41 CFR Part 60-1 Item 1S - Page 64
Revised 4.13.23 Page 61 of 70
FAA – 20 Occupational Safety and Health Act
APPLICABILITY – Contract Types – All contracts and subcontracts must comply with the Occupational Safety and Health Act of 1970 (OSH). The U.S. Department of Labor Occupational Safety and Health Administration (OSHA) oversees the workplace health and safety standards wage provisions from OSH.
REQUIREMENT -
All contracts and subcontracts that result from this solicitation incorporate by r eference the requirements of 29 CFR Part 1910 with the same force and effect as if given in full text. The employer must provide a work environment that is free from recognized hazards that may cause death or serious physical harm to the employee. The employer retains full responsibility to monitor its compliance and their subcontractor’s compliance with the applicable requirements of the Occupational Safety and Health Act of 1970 (29 CFR Part 1910). The employer must address any claims or disputes that pertain to a referenced requirement directly with the U.S.
Department of Labor – Occupational Safety and Health Administration.
Reference: 29 CFR part 1910
Item 1S - Page 65
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FAA – 21 Procurement of Recovered Materials
APPLICABILITY – Contract Types – This provision applies to any contracts that include procurement of products designated in subpart B of 40 CFR part 247 where the purchase price of the item exceeds $10,000 or the value of the quantity acquired by the preceding fiscal year exceeded $10,000.
Construction and Equipment – all construction and equipment projects.
Professional Services and Property – if the agreement includes procurement of a product that exceeds $10,000.
REQUIREMENT -
Contractor and subcontractor agree to comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act, and the regulatory provisions of 40 CFR Part 247. In the performance of this contract and to the extent practicable, the Contractor and subcontractors are to use products containing the highest percentage of recovered materials for items designated by the Environmental Protection Agency (EPA) under 40 CFR Part 247 whenever:
1) The contract requires procurement of $10,000 or more of a designated item during the fiscal year; or
2) The contractor has procured $10,000 or more of a designated item using Federal funding during the previous fiscal year.
The list of EPA -designated items is available at www.epa.gov/smm/comprehensive - procurement-guidelines-construction-products.
Section 6002(c) establishes exceptions to the preference for recovery of EPA -designated products if the contractor can demonstrate the item is:
a) Not reasonably available within a timeframe providing for compliance with the contract performance schedule;
b) Fails to meet reasonable contract performance requirements; or c) Is only available at an unreasonable price.
Reference: 2 CFR § 200.323, 2 CFR Part 200, Appendix II (J); 40 CFR part 247, 42 USC § 6901, et seq (Resource Conservation and Recovery Act)
Item 1S - Page 66
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FAA – 22 Rights to Inventions
APPLICABILITY – Contract Types – This provision applies to all contracts and subcontracts with small business firms or nonprofit organizations that include performance of experimental, developmental, or research work. This clause is not applicable to construction, equipment, or professional service contracts unless the contract includes experimental, developmental, or research work.
REQUIREMENT -
Contracts or agreements that include the performance of experimental, developmental, or research work must provide for the rights of the Federal Government and the City in any resulting invention as established by 37 CFR part 401, Rights to Inventions Made by Non- profit Organizations and Small Business Firms under Government Grants, Contracts, and Cooperative Agreements. This contract incorporates by reference the patent and inventions rights as specified within 37 CFR §401.14. Contractor must include this requirement in all sub- tier contracts involving experimental, developmental, or research work.
Reference: 2 CFR § 200, Appendix II(F), 37 CFR 401
Item 1S - Page 67
Revised 4.13.23 Page 64 of 70
FAA - 23 Seismic Safety
APPLICABILITY – Contract Types – This provision applies to construction of new bui ldings and additions to existing buildings financed in whole or in part through the Airport Improvement Program.
Professional Services– any contract involved in the construction of new buildings or structural addition to existing buildings.
Construction – any contract involved in the construction of new buildings or structural addition to existing buildings.
Equipment – if the project involves construction or structural addition to a building such as an electrical vault project to accommodate or install equipment.
Land – This provision will not typically apply to a property/land project.
REQUIREMENT -
A23.3.1 Professional Service Agreements for Design
SEISMIC SAFETY
In the performance of design services, the Consultant agrees to furnish a building design and associated construction specification that conform to a building code standard that provides a level of seismic safety substantially equivalent to standards as established by the National Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their building code after the current version of the International Building Code (IBC) meet the NEHRP equivalency level for seismic safety. At the conclusion of the design services, the Consultant agrees to furnish the Owner a “certification of compliance” that attests conformance of the building design and the construction specifications with the seismic standards of NEHRP or an equivalent building code.
A23.3.2 Construction Contracts
SEISMIC SAFETY
The Contractor agrees to ensure that all work performed under this contract, including work performed by subcontractors, conforms to a building code standard that provides a level of seismic safety substantially equivalent to standards established by the National Earthquake Hazards Reduction Program (NEHRP). Local building codes that model their code after the current version of the International Building Code (IBC) meet the NEHRP equivalency level for seismic safety.
Reference: 49 CFR Part 41
Item 1S - Page 68
Revised 4.13.23 Page 65 of 70
FAA – 24 Tax Delinquency and Felony Conviction
APPLICABILITY – This provision applies to all contracts funded in whole or part with AIP.
REQUIREMENT -
The Contractor must have certified under the procurement process that resulted in the award of this contract that:
• Contractor has not been convicted of a Federal felony within the last 24 months; or • Contractor does not have any outstanding tax liability for which all judicial and administrative remedies have lapsed or been exhausted.
Reference: Sections 8113 of the Consolidated Appropriations Act, 2022 (Public Law 117-103), and similar provisions in subsequent appropriations acts.
DOT Order 4200.6 – Appropriations Act Requirements for Procurement and Non-Procurement Regarding Tax Delinquency and Felony Convictions
Item 1S - Page 69
Revised 4.13.23 Page 66 of 70
FAA – 25 Termination of Contract
APPLICABILITY – All contracts and subcontracts in excess of $10,000.
REQUIREMENT -
See Section 4.5 of the Agreement.
Reference: 2 CFR § 200 Appendix II(B), FAA Advisory Circular 150/5370-10, Section 80-09 Item 1S - Page 70
Revised 4.13.23 Page 67 of 70
FAA – 26 Foreign Trade Restriction
APPLICABILITY – all AIP funded projects.
REQUIREMENT -
TRADE RESTRICTION CERTIFICATION
By accepting this contract the Contractor certifies the following statements are true – 1) is not owned or controlled by one or more citizens of a foreign country included in the list of countries that discriminate against U.S. firms as published by the Office of the United States Trade Representative (USTR);
2) has not knowingly entered into any contract or subcontract for this project with a person that is a citizen or national of a foreign country included on the list of countries that discriminate against U.S. firms as published by the USTR; and 3) has not entered into any subcontract for any product to be used on the Federal project that is produced in a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR.
This certification concerns a matter within the jurisdiction of an agency of the United States of America and the making of a false, fictitious, or fraudulent certification may render the maker subject to prosecution under Title 18 USC Section 1001.
The Contractor must provide immediate written notice to the City if the Contractor learns that its certification or that of a subcontractor was erroneous when submitted or has become erroneous by reason of changed circumstances. The Contractor must require subcontractors provide immediate written notice to the Contractor if at any time it learns that its certification was erroneous by reason of changed circumstances.
Unless the restrictions of this clause are waived by the Secretary of Transportation in accordance with 49 CFR 30.17, no contract shall be awarded to an Offeror or subcontractor:
1) who is owned or controlled by one or more citizens or nationals of a foreign country included on the list of countries that discriminate against U.S. firms published by the USTR or
2) whose subcontractors are owned or controlled by one or more citizens or nationals of a foreign country on such USTR list or
3) who incorporates in the public works project any product of a foreign country on such USTR list.
Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render, in good faith, the certification required by this provision. The knowledge and information of a contractor is not required to exceed that which i s normally possessed by a prudent person in the ordinary course of business dealings.
The Contractor agrees it will incorporate this provision for certification without modification in all lower tier subcontracts. The Contractor may rely on the certification of a prospective subcontractor that it is not a firm from a foreign country included on the list of countries that Item 1S - Page 71
Revised 4.13.23 Page 68 of 70
discriminate against U.S. firms as published by USTR, unless the Contractor has knowledge that the certification is erroneous.
This certification is a material representation of fact upon which reliance was placed when making an award. If it is later determined that the Contractor or subcontractor knowingly rendered an erroneous certification, the Federal Aviation Administration (FAA) may direct through the City cancellation of the contract or subcontract for default at no cost to the City or the FAA.
Reference: 49 USC § 50104, 49 CFR part 30
Item 1S - Page 72
Revised 4.13.23 Page 69 of 70
FAA – 27 Veteran’s Preference
APPLICABILITY – This provision applies to all AIP funded projects that involve labor to carry out the project. This preference, which excludes executive, administrative, and supervisory positions, applies to covered veterans [as defined under § 47112(c)] only when they are readily available and qualified to accomplish the work required by the project.
REQUIREMENT -
In the employment of labor (excluding executive, administrative, and supervisory positions), the Contractor and all sub- tier contractors must give preference to covered veterans as defined within Title 49 United States Code Section 47112. Covered veterans include Vietnam -era veterans, Persian Gulf veterans, Afghanistan -Iraq war veterans, disabled veterans, and small business concerns (as defined by 15 USC 632) owned and controlled by disabled veterans .
This preference only applies when there are covered veterans readily available and qualified to perform the work to which the employment relates.
Reference: 49 USC § 47112(c)
Item 1S - Page 73
Revised 4.13.23 Page 70 of 70
FAA – 28 Domestic Preferences for Procurements
APPLICABILITY – all contracts and Purchase orders for work or products under the grant.
REQUIREMENT -
The Contractor certifies by signing and submitting its bid or proposal that, to the greatest extent practicable, the Contractor has provided a preference for the purchase, acquisition, or use of goods, products, or materials produced in the United States (including, but not limited to, iron, aluminum, steel, cement, and other manufactured products) in compliance with 2 CFR § 200.322.
Reference: 2 CFR § 200.322; 2 CFR Part 200, Appendix II(L)
Item 1S - Page 74
ATTACHMENT B
PUBLIC INTEGRITY BUSINESS DISCLOSURE
Item 1S - Page 75
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
1. Name of Entity: Square Signs LLC dba Front Signs
2. Address of Entity (Principal Place of Business)
3520 Valhalla Drive, Burbank, CA 91505
3. Local or California Address (if different than #2)
n/a
4. State where Entity is Registered with Secretary of State California
If other than California, is the Entity also registered in California? Yes No
5. Type of Entity
Corporation X Limited Liability Company Partnership Trust Other (please specify)
6. Officers, D irectors, Membe rs, Managers, Trus tees, Other F iduciaries (pl ease specify) Note: If an y response is not a natural person, please identify all off icers, directors, members, managers and other fiduciaries for the member, manager, trust, or other entity
Gevorg Hambardzumyan Officer Director Member Manager [name] General Partner X Limited Partner
Other ___________________________
Shushan Hambardzumyan_______________ Officer Director Member Manager
[name] General Partner X Limited Partner
Other __________________________
______________n/a________________ Officer Director Member Manager [name] General Partner Limited Partner
Item 1S - Page 76
Other __________________________
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
[name of owner/investor]
[percentage of beneficial interest in entity and
name of entity]
A. Gevorg Hambardzumyan
[name of owner/investor]
51%
[percentage of beneficial interest in entity and
name of entity]
B. Shushan Hambardzumyan
[name of owner/investor]
49%
[percentage of beneficial interest in entity and
name of entity]
C.
[name of owner/investor]
[percentage of beneficial interest in entity and
name of entity]
D.
[name of owner/investor]
[percentage of beneficial interest in entity and
name of entity]
E.
[name of owner/investor]
[percentage of ben eficial in terest in entity
and name of entity]
I DECLAR E UNDE R PENALTY OF PERJURY UNDER T HE LAWS OF T HE STA TE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
Signature of Disclosing Party, Printed Name, Title
GEVORG HAMBARDZUMYAN, CEO
Date 09/05/2023
Item 1S - Page 77
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CITY COUNCIL STAFF REPORT
10/26/2023
SUBJECT:
APPROVE AMENDMENT NO. 2 TO THE CONSULTING SERVICES AGREEMENT
BETWEEN THE CITY OF PALM SPRINGS AND THE COACHELLA VALLEY
ECONOMIC PARTNERSHIP FOR THE PALM SPRINGS INNOVATION HUB AND
ACCELERATOR CAMPUS FOR A THREE-YEAR PERIOD
RECOMMENDATION:
Approve Amendment No 2 to the Consulting Services Agreement for the operation of the Palm Springs iHub with the Coachella Valley Economic Partnership in an amount of $200,000 for an additional one-year term beginning July 1, 2023, and continuing until June 30, 2024, with two one-year options.
1. Authorize the City Manager to execute all necessary documents.2.
Attachments
Item 1T
CITY COUNCIL STAFF REPORT
DATE: OCTOBER 26, 2023 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 2 TO THE CONSULTING SERVICES
AGREEMENT BETWEEN THE CITY OF PALM SPRINGS AND THE
COACHELLA VALLEY ECONOMIC PARTNERSHIP FOR THE PALM
SPRINGS INNOVATION HUB AND ACCELERATOR CAMPUS FOR A
THREE-YEAR PERIOD
FROM: Scott C. Stiles, City Manager
BY: Community & Economic Development Department
SUMMARY:
The Consulting Services Agreement (Agreement, Attachment A) has been in place since July 1, 2016. Under the Agreement , Coachella Valley Economic Partnership (CVEP) operates the Palm Springs Innovation Hub (PSiHub). The PSiHub assists entrepreneurs by providing:
• Business mentorship and guidance
• Access to capital
• Start-up risk mitigation
• Business development and growth opportunities
• Acceleration of early-stage technologies
• Office space
The PSiHub is operated at two locations: 1) 3111 East Tahquitz Canyon Way, which houses CVEP’s Palm Springs headquarter offices and business incubator office spaces (Headquarters Building); and 2) 2901 E. Alejo Road where PSiHub provides incubator space for industrial business startup types (Accelerator Campus).
CVEP is requesting that the City Council approve Amendment No. 2 ( Attachment B) to the Agreement to extend the term for one additional year, with two one-year options to renew, to allow the PSiHub to continue assisting startup businesses. Funds for the Agreement were included in the FY24 Budget.
Item 1T - Page 1
City Council Staff Report
October 26, 2023 -- Page 2
CVEP PSiHub Management Agreement
RECOMMENDATION:
1. Approve Amendment No 2 to the Consulting Services Agreement for operation of the Palm Springs iHub with the Coachella Valley Economic Partnership in an amount of $200,000 for an additional one -year term beginning July 1, 2023, and continuing until June 30, 2024, with two one-year options.
2. Authorize the City Manager to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
CVEP is a non -profit California corporation in accordance with the Public Integrity Disclosure Form (Attachment C).
BACKGROUND:
CVEP, a membership- based organization, was first established i n the early 1990’s to foster business development throughout the desert region.
In 2013, CVEP assumed responsibility to manage the PSiHub, provide administrative and client services to spur development of startup businesses and create jobs.
The City and CVEP entered into the Agreement on July 1, 2016, to have CVEP operate both the Accelerator Campus as well as the PSiHub.
The Agreement was amended on July 24, 2018, to extend the term of the agreement to June 30, 2023.
On September 14, 2023, the City and CVEP modified the lease agreement for the Headquarters Building to extend the term until July 31, 2026, reduce the square footage directly leased by CVEP, and to have CVEP maintain the building and equipment, manage contract services, and manage leases with iHub tenants.
At this time, it is being requested that the term of the Consulting Services Agreement be extended for one additional year to allow the PSiHub to continue assisting startup businesses.
STAFF ANALYSIS:
The Palm Springs Innovation Hub (PSiHub), managed by the Coachella Valley Economic Partnership, is a business incubator funded by the City of Palm Springs. The PSiHub focuses on early-stage business in the various fields including renewable energy, health and medicine, and digital technology. The PSiHub also helps startup businesses by mitigating start-up costs and risks and increases the probability of business prospering and growing into the future.
Item 1T - Page 2
City Council Staff Report
October 26, 2023 -- Page 3
CVEP PSiHub Management Agreement
The PSiHub services also include business mentorship and guidance, access to capital, business development and growth opportunities , a cceleration of early -stage technologies, equity investment preparation, business plan development, marketing plan development, geographic information systems resources, and idea exchange forums for entrepreneurs and innovators.
Attracting and establishing new businesses also requires an organization that can provide guidance to entrepreneurs and businesses as they grow and expand. CVEP has the knowledge, technical expertise, and resources to help businesses develop their concepts, attract investors and funding, and to position the business for success. CVEP has recently reported the following accomplishments and successes at the PSiHub:
• 23 patents awarded to PSiHub businesses.
• 203 jobs created.
• $ 33 million of equity capital invested in PSiHub companies. • Two clients received silver and bronze awards from the World’s Best Technologies conference.
• One client received the Emerging Entrepreneur award from the Inland Empire Spirit of the Entrepreneur.
• $ 4 million in revenue generated by PSiHub companies. • 37 companies graduated.
Currently, the PSiHub has 23 client companies. Four of the companies are operating at the Headquarters Building, eight are operating at the Accelerator Campus, and 11 are operating virtually.
The Agreement for Administrative and Management Services expired June 30, 20 23.
CVEP has continued providing services in good faith while the City and CVEP negotiated the terms of the lease for 3111 E. Tahquitz Canyon Way which was recently amended.
CVEP is now requesting the City Amend the Agreement to extend the term for one additional year, with two one-year options.
ENVIRONMENTAL ASSESSMENT
:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. The requested action is to amend an administrative agreement and is exempt from CEQA pursuant to Section 15378(b), in that a “Project” does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
Item 1T - Page 3
City Council Staff Report
October 26, 2023 -- Page 4
CVEP PSiHub Management Agreement
ALIGNMENT WITH STRATEGIC PLANNING:
Strategic Objective 1D – Business Development Initiatives.
FISCAL IMPACT:
Approval of this item would result in the expenditure of $200,000 to assist startup businesses. Funds for the Agreement were included in the FY24 Budget.
REVIEWED BY:
Department Director: Jay Virata
Deputy City Manager: Flinn Fagg
Procurement & Contracting Director: Kim Baker
City Manager: Scott Stiles
ATTACHMENTS:
A. Consulting Services Agreement
B. Draft Second Amendment to Consulting Services Agreement C. Business Principal Disclosure
Item 1T - Page 4
ATTACHMENT A
Item 1T - Page 5
Item 1T - Page 6
CONSUL TING SERVICES AGREEMENT
(Administrative and Management Services Agreement
Coachella Valley Economic Partnership)
THIS AGREEMENT FOR CONSULTING SERVICES (''Ai,,reement") is made and entered into on July 1, 2016, by and between the City of Palm Springs, a California charter city and municipal corporation ("City"), and the Coachella Valley Economic Partnership, a California non-profit corporation, ("Consultant"). City and Consultant are individually referred to as "Party" and are collectively referred to as the "Parties".
RECITALS
A. City requires the services of a consultant, to operate the Palm Springs Innovation Hub and Palm Springs Accelerator Campus, ("Project").
B. Consultant has submitted to City a proposal to provide administrative and management services to City under the terms of this Agreement.
C. Based on its experience, education, training, and reputation, Consultant ts qualified and desires to provide the necessary services to City for the Project.
D. City desires to retain the services of Consultant for the Project.
In consideration of these promises and mutual agreements, City agrees as follows:
AGREEMENT
I. CONSULTANT SERVICES
1.1 Scope of Services. In compliance with all tenns and conditions of this Agreement, Consultant shall provide administrative and management services to City as described in the Scope of Services and Schedule of Compensation attached to this Agreement as Exhibit "A" and incorporated by reference (the "services" or "work"). Consultant warrants that all services and work shall be performed in a competent, professional, and satisfactory manner consistent with prevailing industry standards. In the event of any inconsistency between the terms contained in the Scope of Services/Work and the terms set forth in this Agreement, the tenns set forth in this Agreement shall govern.
1.2 Compliance with Law. Consultant services rendered under this Agreement shall comply with all applicable federal, state, and local laws, statutes and ordinances and all lawful orders, rules, and regulations.
1.3 Licenses and Permits. Consultant shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the perfonnance of the services required by this Agreement.
ORIGINAL BID
AND/OR AGREEMENT
Revised 5/5/16
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1.4 Familiaritv with Work. By executing this Agreement, Consultant warrants that it has carefully considered how the work should be performed and fully understands the facilities, difficulties, and restrictions attending performance of the work under this Agreement.
2. TIME FOR COMPLETION
The time for completion of the services to be performed by Consultant is an essential condition of this Agreement. Consultant shall prosecute regularly and diligently the work of this Agreement according to Exhibit "A." Consultant shall not be accountable for delays in the progress of its work caused by any condition beyond its control and without the foult or negligence of Consultant. Delays shall not entitle Consultant to any additional compensation regardless of the party responsible for the delay.
3. COMPENSATION OF CONSULTANT
3.1 Compensation of Consultant. Consultant shall be compensated and reimbursed for the services rendered under this A1,,,rccmcnt in accordance with the schedule of fees set forth in Exhibit "A". The total amount of Compensation shall not exceed $196,500.
3.2 Method of Pavment. In any month in which Consultant wishes to receive payment, Consultant shall submit to City an invoice for services rendered prior to the date of the invoice, no later than the first working day of such month, in the form approved by City's finance director. Payments shall be based on the hourly rates set forth in Exhibit "A" for authorized services performed. City shall pay Consultant for all expenses stated in the invoice that are approved by City and consistent with this Agreement, within thirty (30) days of receipt of Consultant's invoice.
3.3 Changes. In the event any change or changes in the Scope of Services/Work is requested by City, Parties shall execute a written amendment to this Agreement, specifying all proposed amendments, including, but not limited to, any additional fees. An amendment may be entered into:
A. To provide for revisions or modifications to documents, work product, or work, when required by the enactment or revision of any subsequent law; or B. To provide for additional services not included in this A1,,,reement or not customarily furnished in accordance with generally accepted practice in Consultant's profession.
3.4 Appropriations. TI1is Agreement is subject to, and contingent upon, funds being appropriated by the City Council of City for each fiscal year. [f such appropriations are not made, this Agreement shall automatically tenninate without penalty to City.
4. PERFORMANCE SCHEDULE
4.1 Time of Essence. Time is of the essence in the performance of this Agreement.
Revised: S/511$
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4.2 Schedule of Performance. All services rendered under this Agreement shall be performed as set forth in Exhibit "A." Any time period extension must be approved in writing by the Contract Officer.
4.3 Foree Maj cure. The time for performance of services to be rendered under this Agreement may be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, if Consultant notifies the Contract Officer within ten (I 0) days of the commencement of such condition. Unforeseeable causes include, but are not limited to, acts of God or of a public enemy, acts of the government, fires, earthquakes, floods, epidemic, quarantine restrictions, riots, strikes, freight embargoes, and unusually severe weather. After Consultant notification, the Contract Officer shall investigate the facts and the extent of any necessary delay, and extend the time for performing the services for the period of the enforced delay when and if, in the Contract Officer's judgment, such delay is justified. The Contract Officer's determination shall be final and conclusive upon the parties to this Agreement.
4.4 Term. Unless earlier terminated in accordance with Section 4.5 of this Agreement, this Ai,,,reement shall continue in full force and effect for a period of twenty four (24) months, commencing on July l, 2016, and ending on June 30, 2018, unless extended by mutual written agreement of the parties.
4.5 Termination Prior to Expiration of Term. City may terminate this Ai,,,reement at any time, with or without cause, upon thirty (30) days written notice to Consultant. Where termination is due to the fault of Consultant and constitutes an immediate danger to health, safety, and general welfare, the period of notice shall be such shorter time as may be determined by the City. Upon receipt of the notice of termination, Consultant shall immediately cease all services except such as may be specifically approved by the Contract Officer. Consultant shall be entitled to compensation for all services rendered prior to receipt of the notice of termination and for any services authorized by the Contract Officer after such notice. Consultant may terminate this Agreement, with or without cause, upon thirty (30) days written notice to City.
5. COORDINATION OF WORK
5. I Representative of Consultant. The following principal of Consultant is designated as being the principal and representative of Consultant authorized to act and make all decisions in its behalf with respect to the specified services and work: Joe Wallace, Acting President:CEO. It is expressly understood that the experience, knowledge, education, capability, and reputation of the foregoing principal is a substantial inducement for City to enter into this Agreement. Therefore, the foregoing principal shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services under this Agreement. The foregoing principal may not be changed by Consultant without prior written approval of the Contract Officer.
5.2 Contract Officer. The Contract Officer shall be the City Manager or his/her designee ("Contract Officer"). Consultant shall be responsible for keeping the Contract Officer fully informed of the progress of the perfonnance of the services. Consultant shall refer any ,
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decisions that must be made by City to the Contract Officer. Unless otherwise specified, any approval of City shall mean the approval of the Contract Officer.
5.3 Prohibition Against Subcontracting or Assignment. The experience, knowledge, education, capability, and reputation of Consultant, its principals and employees, were a substantial inducement for City to enter into this Agreement. Therefore, Consultant shall not contract with any other individual or entity to perfonn any services required under this Agreement without the City1s express written approval. In addition, neither this Agreement nor any interest may be assigned or transferred, voluntarily or by operation of law, without the prior written approval of City.
5.4 lndcgendcnt Contractor. Neither City nor any of its employees shall have any control over the manner, mode, or means by which Consultant. its agents or employees, perfonn the services required, except as otherwise specified. Consultant shall perfonn all required services as an independent contractor of City and shall not be an employee of City and shall remain at all times as to City a wholly independent contractor with only such obligations as are consistent with that role; however, City shall have the right to review Consultant's work product, result, and advice. Consultant shall not at any time or in any manner represent that it or any of its agents or employees are agents or employees of City.
5.5 Personnel. Consultant agrees to assign the following individuals to perform the services in this Agreement. Consultant shall not alter the assignment of the following personnel without the prior written approval of the Contract Officer. Acting through the City Manager, the City shall have the unrestricted right to order the removal of any personnel assigned by Consultant by providing written notice to Consultant.
Name:
Joe Wallace
Kyle Wagner
6. INSURANCE
Chief Innovation Officer and Af auaging Director of tile Palm Springs iHub and Accelera!or Campus
Assistant Director, /1111ovatio11 and Business Services Consultant shall procure and maintain, at its sole cost and expense, policies of insurance as set forth in the attached Exhibit "B", incorporated herein by reference.
7. INDEMNIFICATION.
7.1 Indemnification. To the fullest extent pennitted by law, Consultant shall defend (at Consultant's sole cost and expense), indemnify. protect, and hold harmless City, its elected officials, officers, employees, agents, and volunteers (collectively the ""lndemnified Parties"), from and against any and all liabilities, actions, suits, claims, demands, losses, costs, judgments, arbitration awards, settlements, damages, demands, orders, penalties, and expenses 4 Item 1T - Page 10
including legal costs and attorney fees (collectively "Claims"), including but not limited to Claims arising from injuries to or death of persons (Consultant's employees included), for damage to property, including property owned by City, from any violation of any federal, state, or local law or ordinance, and from errors and omissions committed by Consultant, its officers, employees, representatives, and agents, that arise out of or relate to Consultant's performance under this Agreement. This indemnification clause excludes Claims arising from the sole negligence or willful misconduct of the City, its elected officials, officers, employees, agents, and volunteers. Under no circumstances shall the insurance requirements and limits set forth in this A1,,reement be construed to limit Consultant's indemnification obligation or other liability under this Agreement. Consultant's indemnification obligation shall survive the expiration or earlier termination of this Agreement until all actions against the Indemnified Parties for such matters indemnified arc fully and finally barred by the applicable statute of limitations or, if an action is timely filed, until such action is final. This provision is intended for the benefit of third party Jndemnified Parties not otherwise a party to this Agreement.
7.2 Design Professional Services Indemnification and Reimbursement. If the Agreement is determined to be a "design professional services a1,,reement" and Consultant is a "design professional" under California Civil Code Section 2782.8, then:
A. To the fullest extent permitted by law, Consultant shall indemnify, defend (at Consultant's sole cost and expense), protect and hold harmless City and its elected officials, officers, employees, agents and volunteers and all other public agencies whose approval of the project is required, (individually "Indemnified Party"; collectively "Indemnified Parties") against any and all liabilities, claims, judgments, arbitration awards, settlements, costs, demands, orders and penalties ( collectively "Claims"), including but not limited to Claims arising from injuries or death of persons (Consultant's employees included) and damage to property, which Claims arise out of, pertain to, or are related to the negligence, recklessness or willful misconduct of Consultant, its agents, employees, or subcontractors, or arise from Consultant's negligent, reckless or willful performance of or failure to perform any term, provision, covenant or condition of this Agreement ("Indemnified Claims"), but Consultant's liability for Indemnified Claims shall be reduced to the extent such Claims arise from the negligence, recklessness or willful misconduct of the City and its elected officials, officers, employees, agents and volunteers.
B. The Consultant shall require all non-design-professional sub-contractors, used or sub-contracted by Consultant to perforn1 the Services or Work required under this Agreement, to execute an Indemnification Agreement adopting the indemnity provisions in sub section 7.1 in favor of the Indemnified Parties. In addition, Consultant shall require all non design-professional sub-contractors, used or sub-contracted by Consultant to perform the Services or Work required under this Agreement, to obtain insurance that is consistent with the Insurance provisions as set forth in this Agreement, as well as any other insurance that may be required by Contract Officer.
5 Revised: 5/5116
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8. RECORDS AND REPORTS
8.1 Reports. Consultant shall periodically prepare and submit to the Contract Officer reports concerning the performance of the services required by this Agreement, or as the Contract Officer shall require.
8.2 Records. Consultant shall keep complete, accurate, and detailed accounts of all time, costs, expenses, and expenditures pertaining in any way to this Agreement. Consultant shall keep such books and records as shall be necessary to properly perfom1 the services required by this Agreement and enable the Contract Officer to evaluate the performance of such services.
The Contract Ofticcr shall have full and free access to such books and records at all reasonable times, including the right to inspect, copy, audit, and make records and transcripts from such records.
8.3 Ownership of Documents. All drawings, specifications, reports, records, documents, and other materials prepared by Consultant in the performance of this Agreement shall be the property of City. Consultant shall deliver all above-referenced documents to City upon request of the Contract Officer or upon the termination of this Agreement. Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights or ownership of the documents and materials. Consultant may retain copies of such documents for Consultant's own use. Consultant shall have an unrestricted right to use the concepts embodied in such documents.
8.4 Release of Documents. All drawings, specifications, reports, records, documents, and other materials prepared by Consultant in the pcrfonnancc of services under this Agreement shall not be released publicly without the prior written approval of the Contract Officer.
8.5 Cost Records. Consultant shall maintain all books, documents, papers, employee time sheets, accounting records, and other evidence pertaining to costs incurred while performing under this Agreement. Consultant shall make such materials available at its offices at all reasonable times during the term of this Agreement and for three (3) years from the date of final payment for inspection by City and copies shall be promptly furnished to City upon request.
9. ENFORCEMENT OF AGREEl\'IENT
9. I California Law. This A&rreement shall be construed and interpreted both as to validity and to perfonnance of the parties in accordance with the laws of the State of California.
Legal actions concerning any dispute, claim, or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of Cali fomia, or any other appropriate court in such county, and Consultant covenants and agrees to submit to the personal jurisdiction of such court in the event of such actioi:i.
9.2 Interpretation. This Agreement shall be construed as a whole according to its fair language and common meaning to achieve the objectives and purposes of the Parties. The terms of this Agreement are contractual and the result of negotiation between the Parties.
Accordingly, any rule of construction of contracts (including, without limitation, California Civil Code Section 1654) that ambiguities are to be construed against the drafting party, shall not be 6 Revised: 515116
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employed in the interpretation of this Agreement. The caption headings of the various sections and paragraphs of this A£,'!'Cemcnt arc for convenience and identification purposes only and shall not be deemed to limit, expand, or define the contents of the respective sections or paragraphs.
9.3 Waiver. No delay or omission in the exercise of any right or remedy of a non- defaulting party on any default shall impair such right or remedy or be construed as a waiver.
No consent or approval of City shall be deemed to waive or render unnecessary City's consent to or approval of any subsequent act of Consultant. Any waiver by either party of any default must be in writing. No such waiver shall be a waiver of any other default concerning the same or any other provision of this Agreement.
9.4 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the parties are cumulative. The exercise by either party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other party.
9.5 Legal Action. In addition to any other rights or remedies, either party may take legal action, in law or in equity, to cure, correct, or remedy any default, to recover damages for any default, to compel specific perfonnance of this Agreement, to obtain injunctive relief, a declaratory judgment, or any other remedy consistent with the purposes of this Agreement.
10. CITY OFFICERS AND EMPLOYEES: NON-DISCRIMINATION
10.1 Non-Liabilitv of Citv Officers and Emplovecs. No officer or employee of City shall be personally liable to the Consultant, or any successor-in-interest, in the event of any default or breach by City or for any amount which may become due to the Consultant or its successor, or for breach of any obligation of the tenns of this Agreement.
10.2 Conflict of Interest. Contractor acknowledges that no officer or employee of the City has or shall have any direct or indirect financial interest in this Agreement nor shall Contractor enter into any agreement of any kind with any such officer or employee during the tenn of this Agreement and for one year thereafter. Contractor warrants that Contractor has not paid or given, and will not pay or give, any third party any money or other consideration in exchange for obtaining this Agreement.
10.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination or segregation in the performance of or in connection with this Agreement regarding any person or !,'l'Oup of persons on account of race, color, creed, religion, sex, marital status, disability, sexual orientation, gender identity, gender expression, national origin, physical or mental disability. medical condition, or ancestry.
11. MISCELLANEOUS PROVISIONS
11.1 Notice. Any notice, demand, request, consent, approval, or communication that either party desires, or is required to give to the other party or any other person shall be in Rev ~d: 5/5/16
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writing and either served personally or sent by pre-paid, first-class mail to the address set forth below. Notice shall be deemed communicated seventy-two (72) hours from the time of mailing if mailed as provided in this Section. Either party may change its address by notifying the other party of the change of address in writing.
To City:
To Consultant:
City of Palm Springs
Attention: City Manager· City Clerk
3200 E. Tahquitz Canyon Way
Palm Springs, California 92262
Attention: President/CEO
Coachella Valley Economic Partnership
3111 E. Tahquitz Canyon Way
Palm Springs, California 92262
11.2 Integrated Agreement. This Agreement contains all of the agreements of the parties and supersedes all other written ab>TCements.
l 1.3 Amendment. No amendments or other modifications of this Agreement shall be binding unless through written ab>Teement by all Parties.
11.4 Severabilitv. Whenever possible, each prov1s10n of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law. In the event that any one or more of the phrases, sentences, clauses, paragraphs, or sections contained in this Agreement shall be declared invalid or unenforceable by valid judgment or decree of a court of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining phrases, sentences, clauses, paragraphs, or sections of this Agreement, which shall be interpreted to carry out the intent of the parties.
l 1.5 Successors in Interest. This Agreement shall be binding upon and inure to the benefit of the Parties' successors and assignees.
I 1.6 Third Party Beneficiary. Except as may be expressly provided for in this Agreement, nothing contained in this Agreement is intended to confer, nor shall this Agreement be construed as conferring, any rights, including, without limitation, any rights as a third-party beneficiary or otherwise, upon any entity or person not a party to this Agreement.
II. 7 Recitals. The abovesreferenced Recitals are hereby incorporated into the Agreement as though fully set forth in this Ab'feement and each Party acknowledges and ab,rees that such Party is bound, for purposes of this Ab>Teement, by the same.
I l.8 Authoritv. The persons executing this Agreement on behalf of the Parties warrant that they arc duly authorized to execute this Agreement on behalf of Parties and that by so executing this Agreement the Parties are formally bound to the provisions of this Agreement.
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IN WITNESS WHEREOF, the Parties have executed this Agreement as of the dates stated below.
"CITY"
City of Palm Springs
Date: "\ .\'6 .\'c '
APPROVED BY CITY COUNCJL
1·kl·\\? Xi, f:>'<fb')'? '
APPROVED AS TO FORM: ATTEST
,,. d
.. L -
••CONSULT ANT".
(Coachella Valley Economic Partnership)
Date: 1. If· .Joi& -----------
Date: -----·-----------
(name)
······-········--·---············--·-
(secreta,y)
Revised 5/5i 15
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CAUFORHl4 lll.-PURPOSE ACKNOWLEDGMENT CIVIL CODE § 1189 A ootmy pubic c, m:h4f ~ ~ 1tlG!l catfiaJlB ~ mJ, ltlit omny of th9 ~ ..tio aqwl 1ht da:unent tD which !l'li::I ~ u ldb;:had, rd natlhs ~ ~ r.# ~,,, ttlllt doc:anent wtic, ,:irov'!ld to m9 on the b:slR.:l of ~ry ~ to be=EJ) whoae ~ ?.Ubecribed to the witJm inwumn ~ adt:nowl9dgod 10 mt1 ~ ~5d thCt ttllfllljl 1n ~JU)ilit aultior'.zsd ~..,.). and Um by~ aignmu -ten tha ina!rument the pe~. «-ths t!nlity upon bel"l4lf of whkil the ~) actsd. ex.ec:uled the inl!:tNment. l certify under PENAL TY OF PERJURY ~ ~ lswa
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lrdvidml Attom&f in H!d
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TnJCt&e GU"J.raan or ~er ru:ruMi Gu::udan or Con~r Other. ;;;;;;;~r.::==:===~====== Sigr,erls .• 0 ~ ------------Signet" b Re~ntirlg; _______ _ rn Re•i~(Xj; 5/5116
Item 1T - Page 16
EXHIBIT "A"
SCOPE OF SERVICES and
SCHEDULE OF COMPENSATION
CVEP Obligations and Responsibilities:
On an annual basis during the tcnn of this A6,rcement the Coachella Valley Economic Partnership (CVEP) shall provide to the City the following administrative and management services for the operation of the Coachella Valley Innovation Hub (CViHub) and the Palm Springs Accelerator Campus (Accelerator):
• Continue responsibility for further development and operations of CViHub and Accelerator program and services;
• Maintain a dedicated, full-time manager to direct and oversee CViHub and Accelerator operations, and provide direct services to clients;
• Pursue other public and private funding sources, i.e., grants and sponsorships in order to generate a sustainable program;
• Oversee.,maintain the CViHub and Accelerator website, calendar, blog, and social networking accounts;
• Prepare and submit quarterly reports against performance metrics set forth by the City of Palm Springs (Attachment "I") as follows: July I to September 30 due in October, January l to March 31 due in April, October 1 to December 31 due in January, April l to June 30 due in July;
• Prepare and submit annual reports in accordance with sections 8 and 9 of the State of California Innovation Hub Memorandum of t:nderstanding (Exhibit "C"); and submit a copy of all reports to the City Contract Administrator and perform all other duties of the State of California Innovation Hub MOU;
• Prepare and submit quarterly financial reports within 30 days of quarter ending.
Financial reports should include revenue and expenditures for the reporting period. • Coordinate Advisory Board meetings and all records as needed (Attachment "2"); • Oversee selection criteria, application process, incubator and accelerator campus leases/occupants (Attachment "3");
• Deliver CViHub and Accelerator program and client services, including but not limited to:
II Revised: 515116
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A. Facility Based Services for Clients of the CViHub and Accelerator Campus Administration
l. Space
a. Telephone • (unlimited local and national calls)
b. Local Area Network (LAN)
C. High Speed Internet Access
d. Space for individual servers
C. Shared Conference Room
f. Physical and mailing Address
g. Restrooms
h. Janitorial services
2. Rent - determined by Advisory Board
a. Free
b. Below market rate
3. Shared Office Systems
a. Copies (at cost)
b. Fax (incoming and outgoing}
c. Postage meter (at cost)
d. Receptionist/switchboard
e. Usage.•·user charge for other office systems to be detennined by CViHub & Accelerator Manager or Advisory Board.
B. Client Services
l. Seminars & Workshops to be hosted by the CViHubiAccelerator a. Business plans
b. Financial management and accounting support
c. Financing assistance
d. HR support
e. Hot Topics,. Special Interest
f. Commercialization/Technology Licensing
2. One-on-One Meetings. Support
3. Mentoring Program
C. Access to Professional Services Providers
I. Accounting & Financial Professionals
2. Regulatory Compliance
3. E-commerce
4. Government procurement
5. Manufacturing Assistance
I~ Revised· 515/16
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6. Legal Services
7. International Trade
D. Networking Opportunities
I. Events
2. Introductions
3. Virtual
E. Access to Other Educational Seminar and Training Providers I. SBDC (Small Business Development Center)
2. SBA (Small Business Association)
3. SCORE (Counselors to America's Small Businesses}
4. CVWDC (Coachella Valley Women's Business Center)
5. CIEDEC (CA Inland Empire District Export Council)
F. Administer all other Agreements between the City and CVEP m a timely and appropriate manner.
I ' Re\lised: 5/5116
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SCHEDULE OF COMPENSATION
City shall pay CVEP $196,500 annually, to be billed on a quarterly basis in alignment with the submission of the Quarterly Report metrics described in Atlachment "l ".
Compensation shall be paid in advance of the quarter upon receipt of an invoice pursuant to Section 3 of the Agreement, as follows:
July l to September 30
October I to December 31
January I to March 3 I
April I to June 30
Paid in July
Paid in October
Paid in January
Paid in April
1-1 Revl'Jied: 515116
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Attachment "1"
Quarterly Reporting Metrics
CVEP shall provide a quarterly report to the City of Palm Springs that shall contain, but not be limited to, the following information:
• Companies ( contact information) providing outreach services • Companies (contact information) receiving outreach services • Number of companies in residence
• Number of1,,raduating companies
• Number of employees hired by CViHub and Accelerator companies Uobs created - monthly and cumulative)
• Number of employees hired by CViHub and Accelerator graduate companies Uobs created •· monthly and cumulative)
• Revenues/sales from CViHub and Accelerator start•up companies • Number of interns/students trained
• Number of sponsors, corporate partners, members or contracts signed • Number of patent disclosures/applications by CViHub and Accelerator companies • Funding sources and amounts leveraged or invested in CViHub and Accelerator companies
IS Re'/lsed: 515115
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Attachment l'2"
Palm Springs Accelerator Campus & iHub Advisory Board
The Advisory Board shall be comprised of the City of Palm Springs two-member Council Subcommittee, City M,mager. and assigned staff.
Advisory Board Duties
The Advisory Board shall establish policy guidelines for the CViHub Incubator program and Palm Springs Accelerator Campus. The Board will be instrumental in promoting the CViHub and Accelerator Initiative and generating awareness and understanding of the programs as an important economic development tool for Palm Springs.
Composition of the Advisory Board may be subject to change during the tenn of the Agreement.
The Advisory Board and CVEP may recommend changes to its composition. Such a change shall constitute a minor change to the Agreement. The City Manager of the City of Palm Springs or his designee is authorized to approve proposed changes to the Advisory Board. 16 Revised: 5/5116
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Attachment "3"
CVEP shall establish a Selection Committee to review and select qualified candidates for the CViHub and Accelerator programs. The Selection Committee shall include two (2) business representatives within the City of Palm Springs, a staff representative from the City of Palm Springs, a CVEP Executive Board member, and the CViHubiAccelerator Manager. The CViHub/Accelerator Manager shall manage the Selection Committee's review process and prepare all related reports.
CViHub:Accelerator Incubator Client Selection
The CViHub/Accelerator Selection process is as follows:
I. Intake of completed Client Application
2. Application(s) presented to Selection Committee.
3. Selection Committee accepts or declines application
Evaluation Criteria
1. Meets Targeted industry sectors -- innovative infonnation solutions, clean technology, renewable energy and new emerging technology
2. Early stage of development (typically within first two years, but small companies undergoing change in direction or launching new product may also apply)
3. Potential to commercialize or launch within 3 years
4. Ability to pay rent while cash f1mv is developed
5. Desire to take advantage of and benefit from value added services and 1::,ruidance
6. Capacity for growth, job creation and economic benefit
7. Not in direct competition with other incubator clients (or no conflict) Graduation Policies
l. Time Limits - Clients shall be limited to a tenn of no more than 3 to 5 years in the incubator
2. Clients who have proh'Tessed beyond benefit of services sooner than the 3-year term may graduate early
3. Clients who require excessive commitment of resources and do not demonstrate progress toward graduation may be terminated from the program.
The client selection, evaluation criteria and graduation policies may be subject to change.
Changes to the Selection Criteria are detennined by the Advisory Board and CVEP and shall constitute a minor change to the Agreement. The City Manager of the City of Palm Springs or his designee is authorized to approve the proposed changes for the Client Selection Committee. 17 Revi$fld: 5151 Hi
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EXHIBIT "B"
INSURANCE PROVISIONS
Including
Verification of Coverage,
Sufficiency of Insurers,
Errors and Omissions Coverage,
Minimum Scope of Insurance,
Deductibles and Self-Insured Retentions, and
Severability of Interests (Separation of Insureds)
Revised 5(5/16
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INSURANCE
l. Procurement and Maintenance of Insurance. Consultant shall procure and maintain public liability and property damage insurance against all claims for injuries against persons or damages to property resulting from Consultant's performance under this Agreement.
Consultant shall procure and maintain all insurance at its sole cost and expense, in a fonn and content satisfactory to the City, and submit concurrently with its execution of this Agreement.
Consultant shall a1so carry workers' compensation insurance in accordance with California workers' compensation laws. Such insurnnce shall be kept in full force and effect during the tenn of this Agreement, including any extensions. Such insurance shall not be cancelable without thirty (30) days advance written notice to City of any proposed cancellation. Certificates of insurance evidencing the foregoing and designating the City, its elected officials, officers, employees, agents, and volunteers as additional named insureds by original endorsement shall be delivered to and approved by City prior to commencement of services. The procuring of such insurance and the delivery of policies, certificates, and endorsements evidencing the same shall not be construed as a limitation of Consultant's obligation to indemnify City, its elected officials, officers, agents, employees, and volunteers.
2. Minimum Scope of Insurance. The minimum amount of insurance required under this A!,)feement shall be as follows:
I. Comprehensive general liability and personal injury with limits of at least one million dollars ($1,000,000.00) combined sing1e limit coverage per occurrence and two million dollars ($2,000,000) general aggregate;
2. Automobile liability insurance with limits of at least one million dollars (S l ,000,000.00) per occurrence;
3. Professional liability (errors and omissions) insurance with limits of at least one million dollars ($1,000,000.00) per occurrence and two million dollars {$2,000,000) annual aggregate is:
required
4. Workers' Compensution insurance in the statutory amount as required by the State of California and Employer's Liability Insurance with limits of at least one million dollars $1 million per occurrence. If Consultant has no employees, Consultant shall complete the City's Request for Waiver of Workers' Compensation Insurance Requirement fonn.
3. Primary Insurance. For any claims related to this Abrreement, Consultant's insurance coverage shall be primary with respect to the City and its respective elected officials, officers, employees, agents, and volunteers. Any insurance or self-insurance maintained by City and its respective elected officials, officers, employees, agents, and volunteers shall be in excess of Consultant's insurance and shall not contribute with it. For Workers· Compensation and Employer's Liability lnsurance only, the insurer shall waive all rights of subrogation and 19 Re11ised' 5151~6
Item 1T - Page 25
contribution it may have against City, its elected officials, officers, employees, agents, and volunteers.
4. Errors and Omissions Coverage. If Errors & Omissions Insurance is required, and if Consultant provides claims made professional liability insurance, Consultant shall also agree in writing either (I) to purchase tail insurance in the amount required by this A1:,'l'eement to cover claims made within three years of the completion of Consultant's services under this Agreement, or (2) to maintain professional liability insurance coverage with the same carrier in the amount required by this A1:,'l'eement for at least three years after completion of Consultant's services under this Agreement. Consultant shall also be required to provide evidence to City of the purchase of the required tail insurance or continuation of the professional liability policy.
5. Sufficiencv of Insurers. Insurance required in this Agreement shall be provided by authorized insurers in good standing with the State of California. Coverage shall be provided by insurers admitted in the State of California with an A.M. Best's Key Rating of 8++, Class VII, or better, unless othe1v1ise acceptable to ihe City.
6. Verification of Coverage. Consultant shall furnish City with both certificates of insurance and endorsements, including additional insured endorsements, effecting all of the coverages required by this Agreement. The certificates and endorsements are to be signed by a person authorized by that insurer to bind coverage on its behalf. All proof of insurance is to be received and approved by the City before work commences. City reserves the right to require Consultant's insurers to provide complete, certified copies of all required insurance policies at any time. Additional insured endorsements arc not required for Errors and Omissions and Workers' Compensation policies.
Verification of Insurance coverage may be provided by: (I) an approved General and/or Auto Liability Endorsement Form for the City of Palm Springs or (2) an acceptable Certificate of Liability Insurance Coverage with an approved Additional Insured Endorsement with the following endorsements stated on the certificate:
1. "The Cizv of Palm Springs, its officials, employees, and agents are named as an additional insured ... " ("as respects City of Palm Springs Contract No._ .. " or "for any and all work pe1formed with !he Ci(v" may be included in this statement).
2. "This insurance is primaiy and 11011-contributoiJ' o,·er any insurance or self- insurance the City may /Jaw ... " ("as respects City of Palm Springs Comract No._,. or ''for any and all work pe,formed ,rith 1he City" may be included in this statement).
3. "Should any of !he abore described policies be canceled before the expiration date thereof, the issuing company will mail 30 days wrillen notice to the Certificate Holder named." Language such as, "endeavor to" mail and "but failure to mail such notice shall impose no obligation or liability of any kind upon the company, its agents or representative" is not acceptable and must be crossed out.
Re111seo: 5/5/'6
Item 1T - Page 26
4. Both the Workers' Compensation and Employers' Liability policies shall contain the insurer's waiver of subrogation in favor of City, its elected officials, officers, employees, agents, and volunteers.
In addition to the endorsements listed above, the City of Palm Springs shall be named the certificate holder on the policies.
All certificates of insurance and endorsements are to be received and approved by the City before work commences. All certificates of insurance must be authorized by a person with authority to bind coverage, whether that is the authorized agent/broker or insurance underwriter.
Failure to obtain the required documents prior to the commencement of work shall not waive the Consultant's obligation to provide them.
7. Deductibles and Self-Insured Retentions. Any deductibles or sclf~insured retentions must be declared to and approved by the City prior to commencing any work or services under this Agreement. At the option of the City, either (I) the insurer shall reduce or eliminate such deductibles or self-insured retentions with respect to the City, its elected officials, officers, employees, agents, and volunteers; or (2) Consultant shall procure a bond guaranteeing payment of losses and related investigations, claim administration, and defense expenses.
Certificates of Insurance must include evidence of the amount of any deductible or sci f-insured retention under the policy. Consultant guarantees payment of all deductibles and self-insured retentions.
8. Sevcrabilitv of Interests (Separation of Insureds). This insurance applies separately to each insured against whom claim is made or suit is brought except with respect to the limits of the insurer's liability.
21 ~evlsed: 515116
Item 1T - Page 27
EXHIBIT "C"
CALIFOR..1\llA INNOVATION HUB
MEMORANDUM OF UNDERSTANDING
SEE NEXT PAGE
Revi:;ed: 5/5116
Item 1T - Page 28
California Innovation Hub Memorandum of Understanding
THE CITY OF PALM SPRINGS, acting as THE PALM SPRINGS IHUB (sometimes referred to as the "Designated iHub"}1 AND TH£ GOVERNOR'S OFFICE OF BUSINESS AND ECONOMIC DEVELOPMENT {"GQ.
Biz") enter into this Memorandum of Understanding ("MOU"} dated li\?'1 'n ~ '.40\Gcapitalized \
terms are either defined within the paragraph or in the definition section under Appendix A.
RECITALS
Whereas, as one of the world's largest economies, the State of California leads the nation in sparking innovation; and
Whereas, on October 4, 2013 Governor Edmund G. "Jerry" Brown Jr. signed into law Assembly Bill No. 2S0 ("AB 250"), creating the California Innovation Hub (iHub) Program within the GO-Biz; Whereas, GO-Biz may designate an iHub through a competitive application process; Whereas, the purpose of each iHub will be to stimulate partnerships, economic development, and job creation by leveraging assets to provide an innovation platform fer startup businesses, economic development organizations, business groups, and financial institutions; Whereas, AB 250 requires GO-Biz to oversee, coordinate, and provide assistance to each designated iHub;
Whereas, AB 250 requires that any iHub designated by GO·Biz before January 1, 2014, must enter into a memorandum of understanding with GO-Bli that meets the requirements set forth in AB 250; Whereas, the City of Palm Springs submitted an application through the competitive process requesting designation as an iHub for the Western Coachella Valley located in the County of Riverside; Whereas, GO-Biz evaluated the application and designated the City of Palm Springs in the County of Riverside as an 1Hub on May 11, 2010;
Whereas, the City of Palm Springs has represented that its focus will be, but not limited to, renewable energy and clean tech (collectively, "purpose#);
Whereas, the City of Palm Springs has entered into a Management Agreement with the Coachella Valley Economic Partnership, and has obtained letters of support from the Small Business Development Center, College of the Desert, University of California -Riverside, National Renewable Energy Lab (NREL), Naval Weapons Center, Cal State University-San Bernardino, Wells Fargo, Palm Springs Chamber of Commerce, Riverside County Workforce Development Center {"partner network") in alignment with Government Code Section 12099.4 to further Its purpose. l
Item 1T - Page 29
THEREFORE, THE DESIGNATED IHUB AND GO-BIZ {COLLECTIVELY THE "PARTIES" OR INOIVIDUALL Y THE "PARTY") PARTIES AGREE AS FOLLOW;
A. Incorporation. All parties agree that the recitals are true and are hereby incorporated by reference into this MOU. The term of this MOU shall be four years.
B. Requirements of the Designated IHub. The Designated iHub agrees to do the following:
1. Coordinate and participate in five (S} keynote speaker series seminars annually with national and regional partners focused on supporting start- up and emerging technology entrepreneurs that provide advice on starting a business including financing, marketing and planning. Such participation will be rn the form of attendance, financial or in-kind sponsorship, participation as a panelist or moderator during the event;
2. Coordinate and support through direct and or in•kind funding an annual innovation event in partnership with GO-Biz that demonstrates research and partnerships that have evolved out of local universities or research laboratories through the Innovation Hub;
3. Through partner network of the Coachella Valley Innovation Hub provide workshops, seminars, and conferences that assistance 20 startup and emerging technology companies annually;
4. Provide up to five (5) letters of support and commitments to partner network that support further grant applications for programs focused on iHub activities annually;
5. Provide in person and or electronic introductions to local municipalities for start-up and emerging technology companies to receive business assistance in the form of streamlining permitting process, access to Innovation hub partner networks, and business assistance where appropriate;
6. Promote other [Hub programs and events through social media and other communication paths highlighting the collaborative nature of the iHub program;
7. Include the IHub logo on marketing materials and other communications to brand events and activities of the iHub, as further described in section E below regarding license;
8. Provide on an annual basis, no later than March 31" a common data set for the purpose of reporting activity within the IHub that will include at a minimum, to the extent applicable:
a. Report on the status of the requirements in items (1} -(6) of Section B, above;
b. Investment Raised/Secured by Designated iHub and/or lHub partner(s); c. Companies Funded within iHub partner network;
d. Graduates stlll In business ("Graduates" for purposes of this section mean graduates of an incubator or accelerator program with Designated iHub); and
e. Patent applications applied for and granted within Designated iHub region. 2 Item 1T - Page 30
The minimum common data set is subject to modification or change from time to time only with the prlor written approval of GO-Biz and the Designated iHub.
9. Under AS 250 an iHub shall annually, no later than July 3111 report to GO-Biz progress in meeting each of the goals set forth in Section B above and describe how it has satisfied the performance standards as described in the iHub application.
C. Designated IHub. The Designated iHub certifies that:
1. It has received a copy of the state's nondiscrimination policy from GO-Biz, has read the policy and agrees to comply with its terms;
2. The Designated !Hub and its principals are current in payment of all state and local taxes owned unless they have entered into an agreement that was deemed satisfactory by the respective taxing authority and are in full compliance with the agreement.
D. Requirements of GO-Biz. GO-Biz agrees to do the following:
1. Enter Into partnerships on behalf of the iHub network with various industry sectors, non-profit organizations, and non-governmental organizations to negotiate and implement exclusive arrangements for the benefit of the iHub network to obtain access to products and services, including, but not limited to training, software and educational opportunities for innovators and entrepreneurs;
2. Explore opportunities for partnerships with appropriate foreign governments, as determined by GO-Biz, to cooperate In the exchange of innovation technologies and co-develop innovation platforms;
3. Develop a model or program for appropriate foreign private entities to join a California iHub as either a venture capitalist or member/participant of one or more iHubs;
4. As appropriate, promote the iHubs during foreign trade missions, investment forums and In meetings with foreign entitles including governments.
5. Deploy a web based platform that will facilitate dialogue and referrals between the iHubs throughout the State of California;
6. Develop regulations to determine the process for distributing any funds received and deposited in the Innovation Accelerator Account created under Government code 12099.7;
7. Promote the iHub Program through social media and other communication paths highlighting successful accomplishments amongst all designated iHubs to the extent the Designated iHub communicates with GO·Bii and provides information about its accomplishments and activities;
8. License the IHub logo to Designated IHub as set forth below;
9. Provide letters of support to Designated iHub for the purpose af seeking federal and state funds to support activities of the Designated iHub; and 3 Item 1T - Page 31
10. GO~Blz will annually post, no later than September 30th, the information for each of the reports submitted by each designated iHub on GO-Biz's internet website and will provide notice to the Governor and relevant policy committees of the Legislature that the information is available on the internet.
E. License. On August 29, 2014, GO-Biz submitted a section l(a) trademark application to the United States Patent and Trademark Office ("USPTO") to federally register the iHub mark as depicted ln Appendix B (the ''Mark'') and assigned serial number 86381306 by the USPTO.
Although not yet federally registered, GO-Biz has common law rights to the Mark and any other rights that it rnay acquire through federal registration of the Mark and hereby grants to the Designated iHub a non-exclusJve, royalty-free, non-subticensable and non-assignable rfght to the Mark to use It In connection with its iHub desrgnation for but not limited to logo design, web pages owned and operated by the Designated iHub and any of Its partner organizations, event branding and any other uses provided that prior use and written approval by GO-Biz is obtained .. When exercising this right, the Designated iHub must ensure any notice of trademark, "TM" or other propriety right is not removed from any ptace where lt is p!aced on or embedded. Once the Mark is federally registered the III notation will be required to be placed on all uses of the Mark by the Designated iHub. Designated iHub agrees that it will not alter, crop, manipulate and create derivative works from the Mark, other than a proportional sizing of the Mark to fit applicable materlals. Designated iHub must immediately notify GO-Biz if it becomes aware or suspects that any third party has gained access of the Mark and ls wrongfully using the Mark, in whole or in part, or is violating any of GO-Biz's intellectual property rights, including, but not limited to, trademarks and copyrlghts. Nothing in this MOU is intended or shall be construed to transfer or assign any intellectual property rights of GO-Biz to the Designated iHub, except as otherwise licensed in this MOU. Designated iHub acknowledges and agrees that all right, title snd interest ln and to the Mark remains with GO Biz, and nothing contained in thls MOU wfll be construed to convey any rights or propriety interest in the Mark other than the specific rights specificslly granted in this MOU. Designated iHub acknowledges and agrees that the Mark possess a special, unique and extraordinary character which makes It difficult to assess monetary damages which GO-Biz might sustain by an unauthorized use. Designated iHub agrees that irreparable injury would be caused to GO-Biz by such unauthorized use, and that Injunctive relief would be appropriate in the event of breach of this Agreement. GO-Biz makes no representations or warranties with regard to the Mark, except as otherwise explicitly set forth in this MOU.
F. Public Records. Designated iHub acknowledges that GO-Biz is subject to the California Public Records Act (PAA) (Government Code section 6250 et. seq.). This MOU and materials submitted by Designated iHub to GO-Biz may be subject to a PRA request. ln such an event, GO-Biz will notify the Designated iHub, as soon as practicable that a PRA request for the Designated iHub's information has been received, to allow Designated iHub, at its discretion, to seek an Injunction. GO-Biz wlll work In good fafth with the Designated iHub to protect the information to the extent an exemption is provided by law, including but not limited to notes, drafts, 4 Item 1T - Page 32
proprietary information, financial information and trade secret information. GO-Biz will also apply the "balancing test" as provided for under Government Code section 6255 to the extent applicable.
G. Assrgnment This MOU is not assignable to another party unless written consent from the non• assigning party is obtained.
H. Media Re lease. Designated i Hub agrees to cooperate in good faith with GO~Biz, if requested in connection with any publicity, outreach or press release related to the iHtJb designation.
Designated iHub may elect to issue a press release related to this MOU or any requirements hereunder, but any release shall be approved by GO-Biz in writing prior to such release. Such approval shall not be unreasonably withheld.
I. Indemnification/Warranty Disclaimer/Limitation of Liability. When created, Designated iHub shall defend, Indemnify and hold GO-Biz, its agents or assigns, harmless from and against all claims, damages, and tiabilities (including reasonable attorneys' fees) arising from this MOU in the event Designated !Hub acts or engages in willful or negligent misconduct. UNDER NO CIRCUMSTANCES WILL THE STATE OF CALIFORNIA, GO-BIZ, tTS AGENTS OR EMPLOYEES, OR
ANYONE ELSE INVOLVED IN THIS MOU BE LIABLE TO DESIGNATED IHUB FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES THAT ARISE FROM THIS MOU.
J. Jurisdiction. The validity of this MOU and the interpretation and performance of all of its terms shall be governed by the laws of the State of California. The Designated iHub hereby irrevocably agrees to submit to the personal jurisdiction and venue of any state or federal court located in the City of Sacramento, State of Ca fifornia, and expressly waives any claim or defense that such forum is not convenient or proper for purposes of any action arising under this Agreement
K. Waiver. Neither party shall be deemed by mere lapse oftirne (without giving notice or taking other action) to have waived any action by the party of any of the provisions of this MOU. 5 Item 1T - Page 33
L. Notice. Any notices required or permitted to be given under this MOU shall be given in writing and shall be delivered (a) in person, (b) by certified mail, (c) by facsimile with confirmed receipt required, electronic communication with confirmed receipt required, or (d) by commercial overnight courier that guarantees next day delivery and provides a receipt, arid such notices shall be addressed to:
If to GO-Biz:
If to Designated iHub:
If to Oesginated IHub Managemant
1325 J Street, 18th Floor
Sacramento, California, USA 95814
Attention: Deputy Director, Innovation &
Entrepreneurship
Phone: (916) 322·0694
Facsimile: {916) 322-0693
Email: [email protected]
3200 E Tahquitz Canyon Way
Palm Springs, CA 92262
Attention: David H Ready, City Manager, City of
Palm Springs
Coachella Valley iHub
Phone: 760-323-8362
Facslmlle: 760-322-8325
£mall: [email protected]
CVEP
3111 E. Tahquitz canyon Way
Palm Springs, CA 92262
· Attn: Joe Wallace, iHub Manager
Phone: 760-340-1575
[email protected]
M. Modification. This MOU may be amended or modified only by mutual agreement of the parties in written addendum.
N. Ambiguities. Each party has had the opportunity to seek the advice of counsel or has refused to seek the advice of counsel. Each party and its counsel, if appropriate, have participated fully in the review and revision of this MOU. Any rule of construction to the effect that ambiguities are to be resolved against the drafting party shall not apply In interpreting this MOU. The language In this MOU shall be Interpreted as to its fair meaning and not strictly for or against any party. o. Necessary Acts, Further Assurances. The parties shall at their own cost and expense execute and deliver any further documents and shall take such other actions as may be reasonably required or appropriate to carry out the intent and purposes of this MOU. 6 Item 1T - Page 34
By:
P. Sections and Other Headings. The section and other headings contained in this MOU are for reference purposes only and shall not affect the meaning or interpretation of this MOU.
Q. Representation on Authority of Parties/Signatories. Each person signing this MOU represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this MOU. Each party represents and warrants to the other that the execution and delivery of the MOU and the performance of such party's obligations hereunder have been duly authorized and that the MOU is a valid and legal agreement binding on such party and enforceable in accordance with its terms.
R, Severability. If any term of this MOU is to any extent invalid, illegal, or incapable of being enforced, such term shall be excluded to the extent of such invalidity, Illegality, or unenforceability; all other terms hereof shall remain in full force and effect.
S. Execution. This MOU may be executed in parts, by fax, or other similar electronic means.
Name:
IBusmes5at.iEccnmi~ \J / . ~
Name: Louis Stew~
Its: Director Its: Deputy Director, Innovation & Entrepreneurship Its: City Manager
APPROVED BY CIT'( COUNCIL
?J.\ ~ · ,; :a~ ~'1'9\a
ATTEST:
~£~
City Clerk
7 Item 1T - Page 35
P. Sections and Other Headings. The section and other headings contained in this MOU are for reference purposes only and shall not affect the meaning or interpretation of this MOU.
Q, Representation on Authority of Parties/Signatories. Each person signing this MOU represents and warrants that he or she is duly authorized and has legal capacity to execute and deliver this MOU. Each party represents and warrants to the other that the execution and delivery of the MOU and the performance of such party's obligations hereunder have been duly authorized and that the MOU is a valid and legal agreement binding on such party and enforceable in accordance with its terms.
R. Severability. If any term of this MOU is to any extent invalid, illegal, or incapable of being enforced, such term shall be e,ccluded to the extent of Stith invalidity, illegality, or unenforceability; all other terms hereof shall remain in full force and effect.
S. Execution. This MOU may be executed in parts, by fax, or other similar electronic means.
Governor's Office of Business and Economic Development
By: ___________ _
Name: Kish Rajan
Its: Director
't!jippffflvmWt!r< COl!NCIL
By: _____________ _
Name: Louis Stewart
Its: Deputy Director, Innovation & Entrepreneurship
',.\t .\':, ]~ l>-.ypi'l ITY ATTORNEY
DATE ¢' f iJf_;.cfe/$ -
ATTEST:
~b 7
Item 1T - Page 36
Appendix A
Definitions
Clean tech: This is a field of technology that is economically competitive and productive technology that uses less material and/or energy, generates less waste and causes less environmental damage than the alternatives.
Renewable Energy: This is a field of technology derived from resources that are naturally regenerative or are practicalfy inexhaustible, such as biomas, heat (geothermal, sorar, thermal gradient), movins water (hydro, tidal, and wave power), and wind energy. Municipal sold waste may also be considered a source of renewable (thermal} energy.
Emerging Technology: Is a field of technology that broaches new territory in some significant way. New technological fields may result from the technological convergence of different systems evolving towards similar goals. Convergence brings previously separate technologies together so that they share resources and interact with each other, creatlng new efficrencfes.
Graduate: For the purpose of this document, the term "graduation" is used to refer to tenants in incubators and accelerators spaces that leave the physical premise with the promise of further growth and success.
"Innovative solution" refers to a product, process. service, or information technology that is new or improves an existing product, process, service, or information technology and is not currently deployed in the U.S. marketplace. An Innovative solution is expected to deliver measurable benefits compared to current practice in the areas of environmental benefits, performance, overall process reliabillty and controf, or economic or social benefits. Moreover, an innovative solution shall consist of a specific and identifiable research component.
Startup: Is generally a newly created company less than three (3) years old that are in the initial phase of development.
8 Item 1T - Page 37
Appendix B
Innovation Hub Program Trademark
9 Item 1T - Page 38
TM-Edi Hon
INTERNATIONAL CATALOGUE OF TF
TM-Edition Ltd.
Szechenyi ter 17.
2000 Szentendre
HU
Tax 10: HU14S00561
Bank: Erste Bank Hungary Zrt.
SWIFT: GlBA HUHS
!BAN: HU66 1160 0006 0000 0000 6490 6485
Date: 18. Feb. 2015
TRADEMARK
0 de
lifl-lub
CALIFORNIA
IN NOVA T lON HUB
Governor's Offir
Development
1325 J Street, ~
CALIFQRNIA 9
USA
OWNER
Governorfs. Office
Economic f eveloJ
1325 J Street 1 Bt
CALIFORNIA 958
USA
CLASSES hF GO
AND SERfiCES:
35 41
Item 1T - Page 39
AMENDMENT NO. 1
ADMINISTRATIVE SERVICES AGREEMENT NO.6875
This Amendment No. 1 to an Administrative Service Agreement ("Agreement") is made this 9"1-r-day of 'jJ\ 'f,\, 2018 between City of Palm Springs ("City") and the Coachella Valley Economic Part~p. a California non-profit corporation ("Consultant").
The City and Consultant, hereafter referred to as the "Parties", recognize the following:
RECITALS
WHEREAS, the Consultant maintains a 501(c)(3) designation and 1s the managmg authority for the Regional Economic Blueprint;
WHEREAS, a principal strategy of the Coachella Valley Economic Partnership Regional Economic Blueprint calls for creation of a small business support programs, services and incubator;
WHEREAS, Palm Springs received designation by the State of California as an Innovation Hub (iHub), known as the Palm Springs Innovation Hub (PSiHub), and under the iHub guidelines, the State requires that the iHub be managed by, and eventually turned over to, a 50l(c)(3) non-profit organization;
WHEREAS, beginning in July, 2011 and through June 30, 2018, Consultant assumed operations and management of the PSiHub on behalf of the City of Palm Springs through an Administrative Service Agreement;
WHEREAS, the PSiHub incubator is co-located with Consultant in a facility designated as the "Rabobank Regional Business Center" at 3111 East Tahquitz Canyon Way, Palm Springs; and
WHEREAS, the Parties added the Accelerator Campus at 2901 E. Alejo Road and Consultant assumed management of the facility for additional incubator services to accommodate clients in the early manufacturing, prototyping and assembly stages.
NOW THEREFORE, the Parties hereby agree Consultant will continue the management and administrative services of the PSiHub and Accelerator Campus, under the auspices of the PSiHub, and desire to amend the Administrative Agreement as set forth under the following terms and conditions:
1 ORlGINAL BID
AND/OR AGREEMENT
Item 1T - Page 40
• ..,,f .: ..
Item 1T - Page 41
I. Section 3 .1 Compensation of Consultant, shall be amended as follows:
3.1 Compensation of Consultant. Consultant shall be compensated and reimbursed for services rendered under this Agreement in accordance with the schedule of fees set forth in Exhibit 'A'. The total amount of Compensation shall not exceed $200,000.
II. Section 4.4 Term, shall be amended as follows:
4.4 Term Unless earlier terminated in accordance with Section 4.5 of the Agreement, this Agreement shall continue in full force and effect for a period of seven (7) years, commencing on July 1, 2016, and ending on June 30, 2023, unless extended by mutual written agreement of the parties.
III. Section 10.3 Covenant Against Discrimination shall be amended as follows:
10.3 Covenant Against Discrimination. In connection with its performance under this Agreement, Consultant shall not discriminate against any employee or applicant for employment because of actual or perceived race, religion, color, sex, age, marital status, ancestry, national origin ( i.e., place of origin, immigration status, cultural or linguistic characteristics, or ethnicity), sexual orientation, gender identity, gender expression, physical or mental disability, or medical condition ( each a "prohibited basis"). Consultant shall ensure that applicants are employed, and that employees are treated during their employment, without regard to any prohibited basis. As a condition precedent to City's lawful capacity to enter this Agreement, and in executing this Agreement, Consultant certifies that its actions and omissions hereunder shall not incorporate any discrimination arising from or related to any prohibited basis in any Consultant activity, including but not limited to the following: employment, upgrading, demotion or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship; and further, that Consultant is in full compliance with the provisions of Palm Springs Municipal Code Section 7.09.040, including without limitation the provision of benefits, relating to non-discrimination in city contracting.
IV. Attachment "2", Palm Springs Accelerator Campus & iHub Advisory Board, shall be amended as follows:
Palm Springs Accelerator Campus & iHub Advisory Board The Advisory Board shall be comprised of the City of Palm Springs two-member Council Subcommittee, City Manager, and assigned staff and outside industry experts in entrepreneurships and business management as deemed appropriate.
2 Item 1T - Page 42
Item 1T - Page 43
V. Attachment "3", Graduation Policies, shall be amended as follows:
Graduation Policies
I. Time Limits - Clients shall not be limited with respect to a term in the incubator. Each company shall be treated as an individual and continued occupancy will be based on progress and need of services.
2. Clients who have progressed beyond benefit of services may graduate early. 3 Item 1T - Page 44
Item 1T - Page 45
IN WITNESS WHEREOF, the Parties have executed this Amendment No. 1 to An Administrative Service Agreement as of the dates stated below. "CITY"
City of Palm Springs
Date: 1 \J-1{\ \.( ----, L-.\1-+-,-,v LC...----- By: ~~~~;::::::::::2'.:_~2':::
David H. Ready, Esq., Ph.
City Manager
APPROVED AS TO FORM: ATTEST:
- ~~ "~ ~ .,.,,..,,~ ,.,..
Edward Kotkin \ -
City Attorney
"CVEP"
Coachella Valley Economic Partnership
4 Item 1T - Page 46
., ,,o,.,,, _ _,_ • ..__ • Fl' ._.:1111111 a.8" _..., _ __.
Item 1T - Page 47
Exhibit ••A"
SCHEDULE OF COMP EN SA TION
City shall pay CVEP $200,000 annually, to be billed on a quarterly basis in alignment with the submission of the Quarterly Report metrics described in Attachment "1 ".
Compensation shall be paid in advance of the quarter upon receipt of an invoice pursuant to Section 3 of the Agreement, as follows:
July l to September 30
October 1 to December 31
January 1 to March 31
April 1 to June 30
Paid in July
Paid in October
Paid in January
Paid in April
5 Item 1T - Page 48
Item 1T - Page 49
~ COACVAL-08 I ROCHA
ACORD" CERTIFICATE OF LIABILITY INSURANCE I
DATE {raM/DDNYYY)
~ 07/06/2018
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER($), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(les) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the tenns and conditions of the policy, certain pollcies may require an endorsement A statement on this certificate does not confer rights to the certificate holder In lieu of such endorsementis).
PRODUCER License# 0757776 ~\?r!!~CT Linda Rocha
HUB International Insurance Services Inc. ~~E I~
77564 Country Club Drive, Suite 401 ~~~xt): (760} 360-4700 4250 ! (AIC, No):(760) 360-6450 Palm Desert, CA 92211 . [email protected] INSURERISl AFFORDING COVERAGE NAIC#
INSURER A: Nonprofits' Insurance Alliance of California, Inc INSURED INSU_RE_R-8_;_ __ -- _ - ,-~ -- --
Coachella Valley Economic Partnership INSURER C:
3111 E. TahqultzCanyon Way INSURER D : .. ----~~·-· --- --- Palm Springs, CA 92262 INSURER E:
INSURER F:
COVERAGES CERTIFICATE NUMBER· REVISION NUMBER·
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. ~---~
~.9.P~ SUBR POLICY EFF POLICY EXP INSR TYPE OF INSURANCE POLICY NUMBER LIMITS ,.., """" IM .. . IM
A X COMMERCIAL GENERAL LIABILITY eACH OCCURRENCE $ 1,000,000 -
CLAIMS-MADE [K] OCCUR 5~~,:;~~J9F~E"~~,?."ec\ 500,000 X X 2018-23204 06/17/2018 06/17/2019 $ "1ED EXP (Anv one person) $ 20,000
-
1,000,000
-- ~-~• --- ------- PERSONAL & ,.OV_llllJUR'L__ 1_ ___ ,-m----•~ I 2,000,000 ~-L AGGREGATE LIMIT APPLIES PER: GENERJlL AGGREGATE s POLICY LJ ~[Bi LDC PRODUCTS - COMP/OP AGG $ 2,000,000 OTHER: LIQUOR LIAB $ 1,000,000
A AUTOr-OBILE LIABILITY COMBINED SINGLE LIMIT 1,000,000 !F:::t .,.,..,...,-...-1..::.nH s - X ANY AUTO X 2018-23204 06/1712018 06/1712019 BODILY INJURY_(Per perso_nl_ _j ------- Ol'IINED ti SCHEDULED - AUTOS ONLY AUTOS BODILY INJURY (Per accident) $
X ~~fl/Hls ONLY ~8%~~1.~ ff.,7~~~d~t~AMAGE s
I
$
UMBRELLA LIA8 H OCCUR EACH OCCURRENCE $ ,_
EXCESS LIAB CLAIMS-MADE . AGGREGATE $
OED I ---•-1 RETENTION$ $
WORKERS COMPENSATION ~~fTIITF ~JH-AND Er-PLOYERS' LIABILITY YIN :
ANY PROPRIETOR/PARTNER/EXECUTIVE NIA E.L. EACH ACCIDENT $ ~FICE~,M~m EXCLUDED? anda ory n I - E.L. DISEASE - EA EMPLOYEE S ~~~~fp"fiJ~ ~OPERATIONS below E.L JISEASE - POLICY LIWIT s DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES ~ACORD 101, Additional Romorl<s Sohed"lo, moy be ottacl,ed if more space I• required! Location1 : 2901 E. Alejo Rd, Palm Springs CA 2262. Bu1dlings 3,5, 12, 13.
Location 2: 3111 E. Tahquitz Canyon Way, Palm Springs CA 92262.
The City of Palm Springs, its officials, employees and agents ara named additional insured with respects to the location listed above per the attached forms.
Insurance is primary and non-contributory. Wih(er of Sybrg9!tion aoplies per the attacnea endorsement. Should any of the policies be cancelled before the expiration date thereof, the issuing company will mail 30 dais written notice to the certificate holder named
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE The City of Palm Springs THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
3200 E. Tahquitz Canyon Way
Palm Springs, CA 92262
AUTHORIZED REPRESENTATIVE
I
>&'~,U_
ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved.
The ACORD name and logo are registered marks of ACORD
Item 1T - Page 50
1-1 NONPROFITS
INSURANCE
- ALLIANCE OF CAL!fORNIA
A Head for Insurance. A Heart for Nonprofits.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED-MANAGERS OR
LESSORS OF PREMISES
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Designation Of Premises (Part Leased To You}:
Name Of Person(s) Or Organization(s) (Additional Insured):
Any person or organization acting as a manager or lessor of a premises that you are required to name as an additional insured on this policy, under a written contract, lease or agreement currently in effect, or becoming effective during the term of this policy.
Additional Premium: Included
Information required lo complete this Schedule, if not shown above, will be shown in the Declarations.
A. Section II -Who Is An Insured is amended to include as an additional insured the person(s) or organization(s) shown in the Schedule, but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises leased to you, and only with respect to liability for "bodily injury", "property damage", or "personal and advertising injury", caused, in whole or in part, by your acts or omissions, or the acts or omissions of those acting on your behalf, subject to the following additional exclusions:
This insurance does not apply to:
1. Any "occurrence" which takes place after you cease to be a tenant in that premises.
2. Any offense which constitutes "personal and advertising injury" which is committed after you cease to be a tenant in that premises; or
3. Structural alterations, new construction or demolition operations performed by or on behalf of the person(s) or organization(s) shown in the Schedule.
However:
1. The insurance afforded to such additional insured only applies to the extent permitted by law; and
2. If coverage provided to the additional insured is required by a contract or agreement, the insurance afforded to such additional insured will not be broader than that which you are required by the contract or agreement to provide for such additional insured.
B. With respect to the insurance afforded to these additional insured, the following is added to Section Ill - Limits Of Insurance:
If coverage provided to the additional insured is required by a contract or agreement, the most we will pay on behalf of the additional insured is the amount of insurance:
1. Required by the contract or agreement; or
2. Available under the applicable Limits of Insurance shown in the Declarations; whichever is less.
This endorsement shall not increase the applicable Limits of Insurance shown in the Declarations.
NIAC-E67 08 17 Page 1 of 1
Item 1T - Page 51
1~1 NONPROFITS
.._... INSURANCE
POLICY NUMBER: 2018-23204 FORM: NIAC-E26 11 17
NAMED INSURED: CV Economic; Coachella Valley Economic Partnership - ALLIANCE OF CALIFORNIA
A H«d for Insurance. A Heart for Nonprofits.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
WAIVER OF TRANFER OF RIGHTS OF RECOVERY
AGAINST OTHERS (WAIVER OF SUBROGATION)
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SOCIAL SERVICE PROFESSIONAL LIABILITY COVERAGE FORM
SCHEDULE
Name of Person or Organization:
(Information required to complete this Schedule, if not shown above, will be shown in the Declarations.) Where you are so required in a written contract or agreement currently in effect or becoming effective during the term of this policy, we waive any right of recovery we may have against that person or organization, who may be named in the schedule above, because of payments we make for injury or damage.
NIAC-E26 11 17 Page 1 of 1
Item 1T - Page 52
•~1 r~~~~~~:
- . ALUANC6 Of C.Alll'ORNIA
A Head for Insurance. A Hf!tJrt for Nonprofits.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED ENDORSEMENT v
This endorsement modifies insurance provided under the following:
BUSINESS AUTO COVERAGE ONLY
In consideration of the premium charged, it is understood and agreed that the following is added as an additional insured:
(If no entry appears above, information required to complete this endorsement will be shown in the Declarations as applicable to this endorsement.)
But only as respects a legally enforceable contractual agreement with the Named Insured and only for liability arising out of the Named lnsured's negligence and only for occurrences of coverages not otherwise excluded in the policy to which this endorsement applies.
It is further understood and agreed that irrespective of the number of entities named as insureds under this policy, in no event shall the company's limits of liability exceed the occurrence or aggregate limits as applicable by policy definition or endorsement.
NIACA10391 Page 1 of 1
Item 1T - Page 53
POLICY NUMBER: 2018-23204 FORM:NIAC-E611117
NAMED INSURED: CV Economic; Coachella Valley Economic Partnership A Head for lnsuran,e. A H,art for Nonprofits.
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED
PRIMARY AND NON-CONTRIBUTORY
ENDORSEMENT FOR PUBLIC ENTITIES
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name of Person or Organization:
(Information required to complete this Schedule, if not shown above, will be shown in the Declarations.) A. Section 11- Who Is An Insured is amended to include any public entity as an additional insured for whom you are performing operations, who may be named in the schedule above, when you have agreed in a written contract or written agreement that such public entity be added as an additional insured(s) on your policy, but only with respect to liability for "bodily injury", "property damage" or "personal and advertising injury" caused, in whole or in part, by:
1. Your negligent acts or omissions; or
2. The negligent acts or omissions of those acting on your behalf; in the performance of your ongoing operations:
No such public entity is an additional insured for liability arising out of the "products-completed operations hazard" or for liability arising out of the sole negligence of that pubic entity.
B. With respect to the insurance afforded to these additional insured(s), the following additional exclusions apply.
This insurance does not apply to "bodily injury" or "property damage" occurring after:
1. All work, including materials, parts or equipment furnished in connection with such work, on the project (other than service, maintenance or repairs) to be performed by or on behalf of the additional insured(s) at the location of the covered operations has been completed; or
2. That portion of "your work" out of which injury or damage arises has been put to its intended use by any person or organization other than another contractor or subcontractor engaged in performing operations for a principal as a part of the same project.
C. The following is added to SECTION Ill-LIMITS OF INSURANCE:
The limits of insurance applicable to the additional insured(s) are those specified in the written contract between you and the additional insured(s), or the limits available under this policy, whichever are less. These limits are part of and not in addition to the limits of insurance under this policy.
NIAC-E61 11 17 Page 1 of 2
Item 1T - Page 54
POLICY NUMBER: 2018-23204 FORM: NIAC-E61 1117
NAMED INSURED: CV Economic; Coachella Valley Economic Partnership A H~adfor Jnsuran,~. A H•art/ar Nonprofits.
D. A. With respect to the insurance provided to the additional insured(s), Condition 4. Other Insurance of SECTION IV - COMMERCIAL GENERAL LIABILITY CONDITIONS is replaced by the fallowing:
4. Other Insurance
a. Primary Insurance
This insurance is primary if you have agreed in a written contract or written agreement:
( 1) That this insurance be primary. If other insurance is also primary, we will share with all that other insurance as described inc. below; or
(2) The coverage afforded by this insurance is primary and non-contributory with the additional insured(s)' own insurance.
Paragraphs (1) and (2) do not apply to other insurance to which the additional insured{s) has been added as an additional insured or to other insurance described in paragraph b. below. b. Excesslnsurance
This insurance is excess over:
1. Any of the other insurance, whether primary, excess, contingent or on any other basis:
(a) That is Fire, Extended Coverage, Builder's Risk, Installation Risk or similar coverage for "your work";
(b) That is fire, lightning, or explosion insurance far premises rented to you or temporarily occupied by you with permission of the owner;
(c) That is insurance purchased by you to cover your liability as a tenant for "property damage" to premises temporarily occupied by you with permission of the owner; or (d) If the loss arises out of the maintenance or use of aircraft, "autos" or watercraft to the extent not subject to Exclusion g. of SECTION I - COVERAGE A - BODILY INJURY AND PROPERTY DAMAGE.
(e) Any other insurance available to an additional insured(s) under this Endorsement covering liability for damages which are subject to this endorsement and for which the additional insured{s) has been added as an additional insured by that other insurance. (1) When this insurance is excess, we will have no duty under Coverages A or B to defend the additional insured(s) against any "suit'' if any other insurer has a duty to defend the additional insured{s) against that "suit". If no other insurer defends, we will undertake to do so, but we will be entitled to the additional insured(s)' rights against all those other insurers. (2) When this insurance is excess over other insurance, we will pay only our share of the amount of the loss, if any, that exceeds the sum of:
(a) The total amount that all such other insurance would pay far the loss in the absence of this insurance; and
(b} The total of all deductible and self-insured amounts under all that other insurance. (3) We will share the remaining loss, if any, with any other insurance that is not described in this Excess Insurance provision and was not bought specifically to apply in excess of the Limits of Insurance shown in the Declarations of this Coverage Part. c. Methods of Sharing
If all of the other insurance available to the additional insured(s) permits contribution by equal shares, we will follow this method also. Under this approach each insurer contributes equal amounts until it has paid its applicable limit of insurance or none of the loss remains, whichever comes first.
If any other the other insurance available to the additional insured(s) does not permit contribution by equal shares, we will contribute by limits. Under this method, each insurer's share is based on the ratio of its applicable limit of insurance to the total applicable limits of insurance of all insurers.
NIAC-E61 11 17 Page 2 of 2
Item 1T - Page 55
ACORD® CERTIFICATE OF LIABILITY INSURANCE I
DA TE { MM/ODIYYYY)
~ 01/12/2018
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
IMPORTANT: If the certificate holder Is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
PRODUCER NAMfw' Danielle Mulder
Weingarten & Hough f 4J8N~0 Ex!\• (760) 325-2526 \;~No\: (760) 322-5970 CA License No. 0086542 .~o"'oi~ss, [email protected] PO Box 1866 INSURERlS) AFFORDING COVERAGE NAIC#
Palm Springs CA 92263 INSURER A; Hartford Fire Insurance Company 19682 INSURED INSURERS:
Coachella Valley Economic Partnership INSURERC:
3111 E Tahquitz Canyon Way INSURERD:
Palm Springs, CA 92262 INSURERE;
INSURERF:
COVERAGES CERTIFICATE NUMBER: 2018-2019 REVISION NUMBER:
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT \MTH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJ[CT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIM ITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.
INSR TYPE OF INSURANCE POLICY NUMBER
POUCYEF>
r~~lti~1 LIMITS LTR INSD WVD [MM/DD/YYYYI
COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $
-
~ CLAIMS-MADE OCCVR
._,.l"'<l.,.,ll"'<".::Ji;;.1\..J H:tNlt:.LJ'
PREMISES ([a OCCl.Jrrence) $
-
- MED EXP {Any one personl_ .. L
PERSONAL&ADV INJURY $
-
GEN"LAGGREGATE LIMIT APPLIES PER: GENERALAGGREGATE $
~ PRO- LOC PRODUCTS· COMPIOPAGG s / POLICY • JECT
7 OTHER: $
AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ (F:a accidenl) - ANY AUTO BODILY INJURY [Per person) $
- O'MJED
~
SCHEDULED BODILY INJURY (Per ao:ident) $
- AUTOS ONLY >-- AUTOS
HIRED NON-Q'ANEO PflOpfJff<rDAMAGE $
AUTOS ONLY AUTOS ONLY (Per accidenU - >--
$
UMBRELLA LIAB
HOCCUR tACH OCCURRENCE s -
i excess LIAB CLAIMS-MADE AGGREGAT!c s
DED I I RETENTION s $
WORKEaRSCOMPENSATION x!1ffwTE \ I OTH•
AND EMPLOYERS" LIABILITY ER YIN
ANY PROPRIETOR/PARTNER/EXECUTIVE
EL_ EACH ACCIDENT $ 1,000,000
A OFFICER/MEMBER EXCLUDED? NIA 72WECER9995 011131201 e 01/13/2019 (Mandatory in NH) E.L. DISEASE-EA EMPLOYEE s 1,000,000
If yes. descnbe under
E.L. DISEASE· POLICY LIMIT 1,000,000 DESCRIPTION OF OPERATIONS below $ DESCRIPTION OF OPERATIONS I LOCATIONS/ VEHICLES {ACORD 101,Addlllonal Remarl<s Schedule, may bo attached if mo"' space Is required) The City of Palm Springs is named as respects to Workers Compensation-Waiver of Subrogation per form WC 04 03 06. 30 days notice of cancellation except 10 day notice of cancellation due to non-pay. location of buildings: -
-2901 E Alejo Rd., Palm Springs, Ca, 92262
-3111 E. Tahquitz Canyon VVay, Palm Springs, CA 92262
CERTIFICATE HOLDER CANCELLATION
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL Be DELIVERED IN City of Palm Springs ACCORDANCE WITH THE POLICY PROVISIONS. 320 East Tahquitz Canyon Way
AUTliORIZED REPRESENTATIVE
Palm Springs CA 92262 -~~--I - ~ •-. ..
© 1988-2015 ACORD CORPORATION. All rights reserved.
ACORD 25 (2016/03) The ACORD name and logo are registered marks of ACORD Item 1T - Page 56
ATTACHMENT B
Item 1T - Page 57
1 Amendment No. 2 to an
Administrative Services Agreement No. A6875
July 1, 2023 to June 30, 2026
This Amendment No. 2 to an Administrative Service Agreement (“Agreement ”) is made this 1 st day of July, 2023 between City of Palm Springs (“City”) and the Coachella Valley Economic Partnership, a California non-profit corporation (“Consultant”).
The City and Consultant, hereafter referred to as the “Parties”, recognize the following:
RECITALS
WHEREAS, the Consultant maintains a 501(c)(3) designation and is the managing authority for the Regional Economic Blueprint;
WHEREAS, a principal strategy of the Coachella Valley Economic Partnership Regional Economic Blueprint calls for creation of a small business support programs, services and incubator;
WHEREAS, Palm Springs received designation by the State of California as an Innovation Hub (iHub), known as the Palm Springs Innovation Hub (PSiHub).
WHEREAS, beginning in July, 2011 and through June 30, 2023, Consultant assumed operations and management of the PSiHub on behalf of the City of Palm Springs through an Administrative Service Agreement;
WHEREAS, the PSiHub incubator is co-located with Consultant in a facility located at 3111 East Tahquitz Canyon Way, Palm Springs; and
WHEREAS, on July 1, 2016, the Parties added the Accelerator Campus at 2901 E. Alejo Road and Consultant assumed management of the facility for additional i ncubator services to accommodate clients in the early manufacturing, prototyping and assembly stages and entered into a consulting services agreement for a term of two years in the amount of $196,500 annually, for a total agreement of $393,000.
WHEREAS, on July 24, 2018, the Parties extended the term of the Agreement to June 30, 2023, and increased the total compensation by $200,000 annually, or $1,000,000 total, for a new total compensation amount of $1,393,000.
NOW THEREFORE, the Parties hereby agree Consultant will continue the management and administrative services of the PSiHub and Accelerator Campus, under the auspices of the PSiHub, and desire to amend the Administrative Agreement as set forth under the following terms and conditions:
I. Section 3.1 Compensation of Consultant shall be amended to add $600,000 as follows:
Item 1T - Page 58
2 3.1 Compensation of Consultant. Consultant shall be compensated and reimbursed for services rendered under this Agreement in accordance with the schedule of fees set forth in Exhibit ‘A’. The total amount of Compensation shall not exceed $1,993,000.
II. Section 4.4 Term, shall be amended to add three additional years, as follows:
4.4 Term Unless earlier terminated in accordance with Section 4.5 of the Agreement, this Agreement shall continue in full force and effect for a period of ten (10) years, commencing on July 1, 2016, and ending on June 30, 2026, unless extended by mutual written agreement of the parties.
Item 1T - Page 59
3 IN WITNESS WHEREOF, the Parties have executed this Amendment No. 2 to An Administrative Service Agreement as of the dates stated below.
“CITY”
City of Palm Springs
Date:__________________________ By: _______________________________ Scott C. Stiles
City Manager
APPROVED AS TO FORM: ATTEST:
By: ___________________________ By: _______________________________ Jeff S. Ballinger Brenda Pree, MMC, CERA
City Attorney City Clerk
“CVEP”
Coachella Valley Economic Partnership
Date: __________________________ By: ______________________________ Joe Wallace, CEO
Item 1T - Page 60
4 Exhibit “A”
SCHEDULE OF COMPENSATION
City shall pay CVEP $200,000 annually, to be billed on a quarterly basis in alignment with the submission of the Quarterly Report metrics described in Attachment “1”.
Compensation shall be paid in advance of the quarter upon receipt of an invoice pursuant to Section 3 of the Agreement, as follows:
July 1 to September 30 Paid in July
October 1 to December 31 Paid in October
January 1 to March 31 Paid in January
April 1 to June 30 Paid in April
Item 1T - Page 61
ATTACHMENT C
Item 1T - Page 62
Item 1T - Page 63
1. 2.
3. 4.
5. Name of Entity
PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
Coachella Valley Economic Partnership
Address of Entity (Principle Place of Business)
3111 E Tahquitz Canyon Way, Palm Springs CA 92262
Local or California Address (if different than #2)
State where Entity is Registered with Secretary of State California
If other than California, is the Entity also registered in California? n Yes n No Type of Entity
D Corporation D Limited Liability Company D Partnership D Trust Ix] Other (please specify)
6. Nonorofit Corooration
Officers, Directors, Members, Managers, Trustees, Other Fiduciaries (please specify) Note: If any response is not a natural person, please identify all officers, directors, members, managers and other fiduciaries for the member, manager, trust or other entity Joe J Wallace [ii Officer D Director D Member D Manager [name]
D General Partner D Limited Partner
Other
Deborah McGarrey [RI Officer D Director D Member D Manager Todd Hooks
[name]
D General Partner D Limited Partner
Other
!Kl Officer D Director D Member D Manager
[name]
D General Partner D Limited Partner
Other
CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
(Revised 09 13 18)
Item 1T - Page 64
7. Owners/Investors with a 5% beneficial interest in the Applicant Entity or a related entity
EXAMPLE
JANE DOE 50%, ABC COMPANY, Inc.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
A.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
B.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entitvl
C.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
D.
[name of owner/investor] [percentage of beneficial interest in entity
and name of entity]
E.
[name of owner/investor] [percentage of beneficial interest in entity and name of entity]
I DECLARE UNDER PENAL TY OF PERJURY UNDER THE LAWS OF THE STATE OF CALIFORNIA THAT THE FOREGOING IS TRUE AND CORRECT.
S<9=rocr~ed Name, Title Date
Laura E James 15 August 2023
Vice President of Innovation, CVEP
(Revised 09 13 18)
CITY OF PALM SPRINGS - PUBLIC INTEGRITY DISCLOSURE
APPLICANT DISCLOSURE FORM
Item 1T - Page 65
Coachella Valley Economic Partnership
Amendment to Palm Springs Business Disclosure Form
August 15, 2023
Officers and Directors, Continued from page 1
Tracy Tremblay Officer
Moises Aguirre Officer
Dan Ballister Director
Alan Brimmer Director
Mark Carnevale Director
Sandra Cuellar Director
Waymond Fermon Director
Rodrigo Garcia Director
Grace Garner Director
Jeremy Goldman Director
Tamara Hedges Director
Christine Hunter Director
Paulina Larson Director
Meg Marker Director
Brandon Marley Director
Tom Niva Director
Richard Oliphant Director
Lee Osborne Director
Greg Sanders Director
Phil Smith Director
Joaquin Tijerina Director
Jerry Upham Director
Ken Wheat Director
•
CITY COUNCIL STAFF REPORT
10/26/2023
SUBJECT:
REQUEST TO AMEND CHAPTER 6.15 OF THE PALM SPRINGS MUNICIPAL
CODE RELATING TO MOBILE FOOD VENDING VEHICLE REGULATIONS RECOMMENDATION:
Waive the reading of the ordinance text in its entirety and read by title only; and1.
Introduce on first reading an Ordinance entitled, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 6.15 OF THE
PALM SPRINGS MUNICIPAL CODE RELATING TO MOBILE FOOD VENDING VEHICLE REGULATIONS.”
2. Attachments
Item 3A
CITY COUNCIL STAFF REPORT
DATE: OCTOBER 26, 2023 BUSINESS & LEGISLATIVE
SUBJECT: REQUEST TO AMEND CHAPTER 6.15 OF THE PALM SPRINGS
MUNICIPAL CODE RELATING TO MOBILE FOOD VENDING VEHICLE
REGULATIONS
FROM: Scott C. Stiles, City Manager
BY: Flinn Fagg, Deputy City Manager
SUMMARY:
This is a request for minor amendments to Palm Springs Municipal Code (PSMC) Chapter
6.15 relating to the regulations for Mobile Food Vending Vehicles ( mobile food trucks).
This topic was most recently discussed at the City Council meeting of July 24, 2023.
RECOMMENDATION:
1. Waive the reading of the ordinance text in its entirety and read by title only; and
2. Introduce on first reading Ordinance No. _____, “AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 6.15 OF THE PALM
SPRINGS MUNICIPAL CODE RELATING TO MOBILE FOOD VENDING
VEHICLE REGULATIONS.”
BACKGROUND:
The City’s Mobile Food Vending Vehicle Ordinance was adopted by City Council in 2015.
Prior to adopting the ordinance, the City assembled a stakeholder group comprised of restaurant owners, Main Street representatives, and other downtown representatives to study the issue and review regulations from other municipalities. The recommendations of the stakeholder group informed the content of the ordinance that was eventually adopted by the City Council. The ordinance has not been updated since it was adopted in 2015.
The City Council considered proposed modifications to the food truck ordinance on March 9, 2023 in conjunction with the discussion of the sidewalk vending ordinance. While the City Council did not take action on the ordinance, direction was provided to staff to generally facilitate mobile food truck operations in the city. A follow- up discussion was Item 3A - Page 1
City Council Staff Report
October 26, 2023 -- Page 2
Mobile Food Vending Vehicle Ordinance
held at the C ity Council meeting of July 24, 2023, with additional direction provided to staff regarding the following:
• Elimination of the prohibition of mobile food trucks in the downtown area and substitution of a separation distance requirement from restaurants; • Implement parking limits and parking restrictions for mobile food trucks; • Allow mobile food truck operations in public parks, but establish reasonable hours of operation;
• Maintain the prohibition of vending on streets where the speed limit exceeds 35 miles per hour;
• Specify that mobile food truck operators must comply with the foodware ordinance; and
• Other minor corrections and clarifications.
STAFF ANALYSIS:
Based on direction from the City Council at the July 24 th meeting, the following
amendments are proposed to the Mobile Food Vending Vehicle Ordinance to facilitate greater opportunities for mobile food truck owners to operate in the city:
• Downtown Restrictions: Based on legal challenges that other municipalities are facing, it is proposed that the prohibition against food trucks in the downtown area be eliminated. As an alternative, it is proposed that a 200-foot separation distance from restaurants be instituted so as to protect public safety in areas where a high volume of pedestrians is present. [Section 6.15.110(A)] • P arking Limitations: It is proposed that mobile food trucks be prohibited from parking in on-street diagonal parking spaces due to the fact that diagonal spaces do not allow direct access from a public sidewalk for patrons. In addition, it is proposed that mobile food trucks be prohibited from parking in an on-street parking space for longer than two hours, and that mobile food trucks may only occupy one parking space. [Section 6.15.110(B)(9), (B)(10), and (B)(11)] • Operation in Parks: The ordinance has been amended to specifically allow mobile food trucks in parks. To avoid conflicts with concessionaires under exclusive contract with the City for certain parks, mobile food truck operators would need to obtain approval from the Parks and Recreation Department prior to operations in a park. Mobile food trucks would be permitted when the concessionaire is not operating, or in another area of the park that is adequately distant from the concession location. [Section 6.15.100(H)]
• Hours of Operation: The draft ordinance allows for mobile food trucks to operate between the hours of 7:00 am and 3:00 am; this has been clarified to restrict these hours to commercial and industrial districts. In public parks, the mobile food truck operator must cease operations one hour prior to the close of the park but may remain in the park until closure to clean up operations. [Section 6.15.100(G)]
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City Council Staff Report
October 26, 2023 -- Page 3
Mobile Food Vending Vehicle Ordinance
• Streets Where Permitted: The proposed ordinance will li mit m obile food truck operations to streets where the posted speed limit is 35 miles per hour or less, as is the current regulation. Earlier drafts of the ordinance had proposed modifying this limitation to streets with a maximum speed limit of 40 miles per hour to afford greater opportunities for mobile food truck vendors, but in the interest of public safety and at the direction of City Council , the 35 miles per hour limitation will remain in place. [Section 6.15.110(B)(3)]
• Foodware Ordinance: The draft ordinance has been amended to clarify that the foodware ordinance (Palm Springs Municipal Code Chapter 5.87, “Reusable Food Service Ware and Plastic Waste Reduction” ) is applicable to mobile food truck operations. [Section 6.15.100(J)]
• Proximity to Schools: The current ordinance states that mobile food trucks are not permitted within 500 feet of any school serving students 18 years of age or younger. Per direction from the July 24
th City Council meeting, this has been
modified to state that the 500- foot separation requirement only applies during school hours. Please note that mobile food trucks may be located on school property upon approval by the school administrator. [Section 6.15.110(B)(1)]
While no major changes are proposed to the section of the ordinance that describes exceptions, it is important to note that the existing exceptions listed in Section 6.15.170 will still be applicable:
• Food trucks are permitted on private property upon approval of a Land Use Permit.
Applicants must obtain proof of consent from the property owner as part of the application submittal. To further facilitate this use, the Department of Planning Services will charge the Minor Land Use Permit fee ($438) versus the standard Land Use Permit fee ($1,642).
• Food trucks may service a business or a residence when the owner has pre- arranged for such services. Please note that in residential zones, food trucks may only provide services to the residential owner and their guests and cannot vend to the general public.
• Food trucks are permitted to vend on school property, provided the use is authorized by the school district or school administrator. • Food trucks servicing construction sites are exempt from the locational restrictions and operational procedures that are otherwise required of other food truck vendors.
ENVIRONMENTAL ASSESSMENT
:
The proposed Ordinance is not subject to the California Environmental Quality Ac t (“CEQA”) (Public Resources Code Section 21000 et seq.) pursuant to Section 15060(c)(2) of the State Guidelines, because the text amendment will not result in a direct or reasonably foreseeable indirect physical change in the environment and is not a “project” as that term is defined in Section 15378 of the State CEQA Guidelines.
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City Council Staff Report
October 26, 2023 -- Page 4
Mobile Food Vending Vehicle Ordinance
FISCAL IMPACT:
Additional revenue may be generated through the issuance of licenses for food trucks; however, the additional revenue will be offset by the staff costs necessary to administer the program.
REVIEWED BY:
Deputy City Manager: Flinn Fagg
City Attorney: Jeffrey S. Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Draft Ordinance
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ORDINANCE NO. ____
AN ORDINANCE OF THE CITY OF PALM SPRINGS ,
CALIFORNIA, AMENDING CHAPTER 6.15 OF THE PALM
SPRINGS MUNICIPAL CODE RELATIVE TO MOBILE FOOD
VENDING VEHICLES.
City Attorney’s Summary
The proposed ordinance amends and updates the City’s
Mobile Food Vending Vehicle (food truck) ordinance to,
among other things, encourage food truck businesses within the City of Palm Springs.
A. The City of Palm Springs, California (“City”) is a municipal corporation, duly organized under the California Constitution and laws of the State of California; and
B. P ursuant to the police powers delegated to it by the California Constitution, the City has the authority to enact laws which promote the public health, safety, and general welfare of its citizens, including the regulation of mobile food vehicle vending; and
C. The City Council finds that, unless properly regulated, mobile food vending vehicles pose a unique risk to the health, safety, and welfare of the public, including, but not limited to, impacts to traffic, pedestrian and patron safety, and general consumer protection; and
D. The City Council also finds that, when properly regulated, mobile food vending vehicles allow for individual entrepreneurship opportunities, expand the economic base of the city, augment food vending activities before or after general business hours, and add to a vibrant street that is desirable for both residents and tourists; and
E. The City of Palm Springs is a city that is noted for its culture, uniquely diverse neighborhoods, and popularity with culinary tourists; and
F. The City finds that the locational requirements contained in this ordinance serve the dual purposes of balancing the needs of both brick and mortar restaurants and food trucks, which are two different types of businesses with different business needs; and
G. The City Council finds that the locational requirements contained in this ordinance will reduce congestion and delays on sidewalks because the locational requirements create a buffer between food truck customer lines and the congestion that can arise outside brick and mortar restaurants, since lines at food rucks and brick and mortar restaurants are more likely to occur at the same time (i.e., meal times) than other businesses.
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Ordinance No. _____
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. That the findings and determinations reflected above are true and correct, and are incorporated by this reference herein as the cause and foundation for the action taken by the and through this Ordinance.
SECTION 2. Palm Springs Municipal Code Chapter 6.15, “Mobile Food Vending Vehicles,” is hereby amended to read as follows:
CHAPTER 6.15 MOBILE FOOD VENDING VEHICLES
“6.15.010 Purpose—Intent.
The City Council expressly finds that vehicles in which produce, confections, and food products are prepared, cooked, and/or carried for purposes of retail sale on the public streets pose special dangers to the public health, safety, and welfare of children and residents in the City of Palm Springs. It is the purpose and intent of the City Council, in enacting this, to provide responsible companies and individuals who engage in the operation of Mobile Food Vending Vehicles with clear and concise regulations to prevent safety, traffic, and health hazards, as well as to preserve the peace.
6.15.020 Definitions.
As used in this Chapter:
“Downtown Palm Springs” means the area generally bounded by both sides of Vista Chino on the north, both sides of the alignment of Palm Canyon Drive, Alejo Road, Belardo Road, North Museum Drive, E. Tahquitz Canyon Way, and Belardo Road on the west, both sides of Ramon Road on the south, and both sides of Palm Canyon Drive and Indian Canyon Drive on the east.
“City Manager” means the City Manager or the City Manager’s designee.
“Food” means items intended primarily for consumption by human beings.
“Mobile Food Vending Vehicle” means any Category 1, 3, 4, or 5 mobile food facility as defined by Riverside County Ordinance No. 580.5, as may be amended from time to time, that is equipped or primarily used for the preparation and retail sale of food on any public street, alley, parking lot, or highway within the City. The inventory of these vehicles need not be necessarily limited to produce, food, or confections.
“Mobile Food Vendor” means any person who:
1. Conducts or permits or causes the operation of Mobile Food Vending Vehicles;
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Ordinance No. _____
2. Owns, operates, controls, manages, or leases Mobile Food Vending Vehicles; or
3. Contracts with persons to drive and vend from Mobile Food Vending Vehicles.
“Mobile Food Vendor’s permit” means a permit issued by the City Manager authorizing the holder thereof to engage in the business of food vending.
“Operator” means any person who drives, operates or vends from a Mobile Food Vending Vehicle and shall include the driver and assistant on each Mobile Food Vending Vehicle.
“Park” means all grounds, buildings, improvements, and areas dedicated to use by the public for park, recreation, or open space purposes and over which the City has acquired right of use for such purposes. The term “Park” includes sidewalks, trails, and pathways in or around park facilities, park strips, and other grounds of any park.
“Person” means any natural person, firm, partnership, association, corporation, or stockholder and includes, but is not limited to, owners, operators, drivers, lessors, and lessees of food trucks.
“Temporary Special Event” means an event that is permitted pursuant to Palm Springs Zoning Code Section 94.02.01, or as otherwise permitted and authorized by the City.
“Vend” or “vending” means offering food products of any kind for preparation or sale from a Mobile Food Vending Vehicle as defined in this section on a street, alley, highway or a place open to the public within the City and includes the movement or standing of a Mobile Food Vending Vehicle for the purpose of preparing food for retail sale, or searching for, obtaining or soliciting retail sales of products.
6.15.030 Permit—Required.
No person shall operate or cause the operation of a Mobile Food Vending Vehicle in the City without a Mobile Food Vendor’s permit issued pursuant to the provision of this Chapter and any other license or permit required under any other provision of this code.
Additionally, a mobile food facility permit issued by the county of Riverside and certificates of inspection from the Office of the Fire Marshal, are required for each and every Mobile Food Vending Vehicle before the Mobile Food Vendor’s permit is issued.
6.15.040 Permit—Term—Renewal.
The term of the Mobile Food Vendor permit, unless sooner suspended or revoked, shall be annual. Upon the expiration of such term, the permittee may renew the permit by paying the renewal fee as is established by resolution of the City Council. If there are substantial changes in the original application, a new application shall be required in conformance with Section 6.15.050.
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Ordinance No. _____
6.15.050 Application for Mobile Food Vendor Permit—Contents—Required Fee.
A. Any person who desires to obtain a permit to operate or cause the operation of one or more Mobile Food Vending Vehicles shall obtain an application from the City Manager. Prior to submitting such application a nonrefundable fee, as established by resolution of the City Council, shall be paid to the City Manager to defray, in part, the cost of the investigation and report required by this C hapter.
After an application permit has been filed with the City Manager, the City Manager shall cause an investigation to be made by the health officer and chief of police.
Permit issuance fees required under this Chapter shall be in addition to any license, permit or fee required under any other Chapter of this code.
B. Neither the filing of an application for a permit, nor the payment of an application fee, shall authorize the vending from, operation or management of a Mobile Food Vending Vehicle until such permit has been granted or renewed.
C. Each applicant for a permit to conduct business as a Mobile Food Vendor shall furnish the following information:
1. The present or proposed address from which the business is to be conducted;
2. The full true name under which the business will be conducted;
3. The full true name and any other names used by the applicant;
4. The present residence and business address and telephone numbers of the applicant;
5. A general description of the kinds of merchandise that the Mobile Food Vending Vehicles will vend;
6. The number of vehicles to be owned, operated or controlled by the applicant and the makes, body styles, years, serial and engine numbers, state license plate numbers, and names and addresses of the registered and/or legal owners of each vehicle;
7. A description of the logo, color scheme, insignia, and any other distinguishing characteristics of applicant’s vehicles;
8. Insurance in the manner and form required by this Chapter from a responsible, solvent insurance carrier authorized to issue public liability and property damage insurance in the state of California;
9. The full and true names, addresses and telephone numbers of all persons employed or intended to be employed, or with whom the applicant has contracted, leased or intends to contract with as driver operator of the applicant’s vending vehicles, and in addition, their:
a. California driver’s license or other identification commonly accepted in commercial undertakings; and
b. Food worker’s certificate.
10. If the applicant is a corporation, the name shall be stated exactly as set forth in its articles of incorporation. The applicant shall show the name and Item 3A - Page 8
Ordinance No. _____
residence address of each of the officers, directors, and each stockholder, owning not less than ten percent of the stock of the corporation, and the address of the corporation itself, if different than the applicant’s place of business. If the applicant is a partnership, the application shall show the name and residence address of each of the partners, including limited partners, and the address of the partnership itself, if different than the applicant’s place of business;
11. All criminal convictions of the principals, operators, drivers, excluding minor traffic off enses (any traffic offense designated as a felony shall not be construed as a minor traffic offense), stating the date, place, nature and sentence of each such conviction;
12. The applicant, if other than an individual, shall also furnish the following information:
a. Each business address of the applicant for the three- year period immediately preceding the date of the application and the inclusive dates of each such business,
b. The nature of the business or firm for the three- year period immediately preceding the date of the application, and
c. The permit history of the applicant for the three- year period immediately preceding the date of the filing of the application, including whether such applicant, in previously operating in this or any other city, county, state or territory, has ever had any similar license or permit, or franchise revoked or suspended, and if so, the circumstances of such suspension or revocation;
13. Such other identification and/or information as the City Manager may require in order to discover the truth of the matters required to be set forth in the application.
6.15.060 Investigation of Application.
The City Manager shall act to approve or deny an application for a Mobile Food Vendor’s permit under this Chapter within a reasonable period of time and in no event shall the City Manager act to approve or deny said permit later than ninety days from the date the application was accepted as complete by the City Manager. Every Mobile Food Vendor permit issued pursuant to this Chapter will terminate at the expiration of one year from the date of its issuance unless sooner suspended or revoked.
6.15.070 Permit—Issuance.
A. The City Manager shall grant the Mobile Food Vendor’s permit if the City Manager finds that all of the following requirements have been met:
1. The required fees have been paid;
2. The application conforms in all respects to the provisions of this Chapter;
3. The applicant has not knowingly made a material misrepresentation of fact in the application;
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4. The applicant has fully cooperated in the investigation of the application;
5. The applicant if an individual; or any of the directors, officers or stockholders holding more than ten percent of the stock of the corporation; or any of the partners, including limited partners, or profit interest holder, manager or other person principally in charge of the operation of the existing or proposed business of vending from a food vending truck or a natural person employed or contracted with to be a driver has not been convicted or pleaded nolo contendere or guilty within five years prior to his or her application for a permit to a misdemeanor or felony crime of moral turpitude or drug-related misdemeanor or felony crime, including, but not limited to:
a. the sale of a controlled substance specified in California Health Safety Code Sections 11054 through 11058;
b. the sale, distribution or display of harmful or obscene matter; c. indecent exposure;
d. selling or disposing of lottery tickets;
e. permitted gambling, pool selling or bookmaking; or in the case of applications for an operator’s permit, alcohol or drug- related traffic offenses.
B. The City Manager is specifically authorized to obtain state summary criminal history record information as provided for in Section 11105 of the California Penal Code. Any co mplaint for the above- listed charges pending before a court of law shall cause the application to be considered pending until adjudication of the complaint.
6.15.080 Permit—Denial.
A. If the City Manager finds that the requirements set forth in Section 6.15.070 have not been met, the City Manager shall deny the application for a Mobile Food Vendor’s permit. In the event the application is denied by the City Manager, written notice of such denial shall be given to the applicant specifying the basis for such denial. Notice of denial shall be deemed to have been served if, in fact, it is personally served to the applicant or when deposited in the United States mail with prepaid postage and addressed to the applicant at his or her residence address as set forth in the application.
B. Any applicant whose application for a Mobile Food Vendor permit has been denied by the City Manager, may submit an appeal in writing to the City Clerk within fifteen days of such denial. The City Council may refer the appeal to a hearing officer.
6.15.090 Permit—Revocation.
A. Any vendor permit may be suspended or revoked by the City Manager for any of the following reasons:
1. Falsehood of any information supplied by the permittee upon which Item 3A - Page 10
Ordinance No. _____
issuance of the permit was based;
2. Failure of the permittee to notify the City Manager within two weeks of any change occurring subsequent to the issuance of the permit in the information supplied by the permittee upon which issuance of the permit was based;
3. Failure of the permittee, or of any employees or subcontractors of the permittee, to comply with the regulations set forth in
Sections 6.15.110 through 6.15.160 inclusive; or
4. Violation by the permittee, or any employee, subcontractor or independent contractor of the permittee, of any state law or municipal ordinance while in the course of conducting vending operations from food trucks pursuant to the permit.
B. No such suspension or revocation shall become effective until the permit holder has been notified in writing of the right of such permit holder to appeal the suspension or revocation. Notification of the permit holder shall be made either by personal delivery or by certified or registered mail, return receipt requested, addressed to the permit holder at such permit holder’s residence address as set forth on the application for a permit. If an appeal is filed, the suspension or revocation shall be stayed and shall become effective only upon decision of the Administrative Appeals Board . The suspension or revocation shall become effective after the timely appeal period has expired. The appeal shall be in writing and filed with the City Clerk within fifteen days of effective date of suspension or revocation.
C. No person whose permit is revoked shall be eligible to apply for a new permit for a period of one year following such revocation.
6.15.100 Mobile Food Vending Vehicle Regulations.
A. Each Mobile Food Vending Vehicle shall have a current, valid county of Riverside grade card/decal health inspection sticker affixed to the lower right side of the windshield and a current, valid business license decal affixed as specified i n Section 5.04.200 of this code.
B. Each individual who drives, operates or vends from a Mobile Food Vending Vehicle shall have on his or her person a current, valid California driver’s license and a food worker certificate pursuant to Section 6.07.020 of this Code, which he or she shall make available for inspection by law enforcement officials or code compliance officers upon request.
C. Condition/Appearance of Site.
1. The site where a Mobile Food Vending Vehicle is parked shall be maintained in a safe and clean manner at all times.
2. Exterior storage of refuse, equipment or materials associated with the Item 3A - Page 11
Ordinance No. _____
food vending truck is prohibited.
3. The Mobile Food Vending Vehicle shall maintain vehicular and pedestrian circulation and access consistent with all local and state regulations.
4. Any Mobile Food Vending Vehicle parked out of the public right -of-way to conduct business must have the written consent of the property owner to do so. If such a food vending truck has written permission from the property owner, up to four tall stand-up cocktail-type tables but, no chairs, no fences or other site furniture (permanent or otherwise) shall be permitted.
D. Litter Control.
1. Any Mobile Food Vending Vehicle licensed by the county of Riverside as a Category 4 or Category 5 mobile food facility shall provide a minimum of two thirty-two-gallon litter receptacles within fifteen feet of the vehicle. The receptacles will serve both employees and customers.
2. The Mobile Food Vending Vehicle vendor shall maintain the subject property and adjacent right-of-way free of litter on and within one hundred feet of the vending site.
3. All refuse shall be removed from the vending site and properly disposed of within thirty minutes of the close of vending for the day at that site.
E. Security.
1. The vendor shall install signage indicating that loitering is not permitted and customers may only remain on the lot for up to thirty minutes after receiving their food.
2. The vendor shall enforce the no-loitering rule.
3. The serving or consumption of alcohol shall be prohibited at vending sites.
F. Toilets and Handwashing Facilities. In order for a Mobile Food Vending Vehicle to remain parked and conducting business in one location longer than one hour , it must be situated within two hundred feet travel distance of a legally approved and permitted toilet and handwashing facility, or as otherwise approved by the City Manager, to ensure that restroom facilities are available to Mobile Food Vending Vehicle employees. The Mobile Food Vending Vehicle operator must have permission of the property owner to use the toilet and handwashing facility.
G. Hours of Operation. Mobile Food Vending Vehicles shall operate only between the hours of 7:00 am and 3:00 am in commercial and industrial zone districts. If authorized to vend in a public park, the Mobile Food Vending Vehicle shall cease operations one (1) hour prior to the close of the park but may still be present in the park until the time of park closure to pack up operations and/or enjoy the park.
G.H. Temporary Special Events. Mobile Food Vending Vehicles operating as part of a temporary special event permitted by the City Manager shall comport with the permissions and restrictions of the approved permit.
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Ordinance No. _____
I. City Parks. Mobile Food Vending Vehicles may operate in a City Park upon written authorization by the City Manager. Such authorization shall not be granted in park areas where the City is under exclusive contract with a vendor to operate a concession stand within the park.
J. Residential Zone Districts. Mobile Food Vending Vehicles are allowed in residential zone districts only in accordance with Section 6.15.170.
K. Reusable Food Service Ware. Mobile Food Vending Vehicles shall use Reusable Food Service Ware and Reusable Food Service Ware Accessories in accordance with Palm Springs Municipal Code Chapter 5.87.
6.15.110 Prohibited Conduct.
A. No person shall vend from a Mobile Food Vending Vehicle which is stopped, parked, or standing on any public street or parking lot within Downtown Palm Springs No Mobile Food Vending Vehicle shall be parked within two hundred (200) feet of any principal customer entrance to a restaurant (except as to any restaurant located on the private property to which the mobile food vending vehicle is invited), except as otherwise specified in Section 6.15.170 of this Code.
B. No person shall vend from a Mobile Food Vending Vehicle which is stopped, parked, or standing on any public street or public or private parking lot when the following apply:
1. When the Mobile Food Vending Vehicle is parked within five hundred (500) feet of the nearest property line of any school serving students 18 years of age or younger during school hours, or any public park unless that school is a college, university, or vocational school that primarily serves students older than eighteen years of age, unless the Mobile Food Vending Vehicle is associated with a certified farmers market that is open at the time that the food vending truck is conducting business;
3. When the posted speed limit on the public street, alley or highway is greater than thirty-five (35) miles per hour;
4. When the Mobile Food Vending Vehicle is parked in violation of any other provision of this Code, or the California Vehicle Code;
5. When any part of the Mobile Food Vending Vehicle is open to prospective customers other than on the side of the vehicle next to the right side of the street, alley or highway;
6. When the Mobile Food Vending Vehicle is not stopped, parked or standing on the right side of the street, alley or highway;
7. When the prospective customer is standing or sitting in another vehicle;
8. When the prospective customer is located in that portion of the street, alley or highway which is open to vehicular traffic.
9. When the Mobile Food Vending Vehicle is parked in a diagonal on -street Item 3A - Page 13
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parking space.
10. When the Mobile Food Vending Vehicle occupies more than one (1) on- street parking space.
11. When the Mobile Food Vending Vehicle occupi es an on -street parking space for more than two (2) hours.
B. No person shall operate, or cause to be operated, any Mobile Food Vending Vehicle with sound-amplifying equipment in operation per Section 5.92.030 of this code.
D. No person shall back up a Mobile Food Vending Vehicle to make or attempt a sale.
E. No minor shall ride in or on a Mobile Food Vending Vehicle.
F. Such vehicles shall operate only Monday through Sunday as follows:
1. October 1st through April 30th: nine a.m. to five p.m.
2. May 1st through September 30th: nine a.m. to seven p.m.
6.15.120 Insurance Requirements.
A. It is unlawful for any person to own, lease, drive, operate or cause or permit to be driven or operated any Mobile Food Vending Vehicle in the City unless such person has submitted with his or her application for a permit the required insurance policies outlined in this section, which shall be issued by an insurance company currently authorized by the insurance commissioner to transact business of insurance in the state of California, with an assigned policyholders’ rating of A- (or higher) and financial size category Class VII (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager. Such policies shall conform in all respects to the requirements of this Chapter.
B. The required motor vehicle liability policy shall insure the owner, driver, and any other person using or responsible for the use of any Mobile Food Vending Vehicle with the consent, expressed or implied, of such owner, driver or person, against loss from the liability imposed upon such owner, driver or person by law for injury to, or death of, any person, or damage to property growing out of the maintenance, operation or ownership of any Mobile Food Vending Vehicle in an amount not less than one million dollars combined single limit for each accident, no aggregate.
Automobile insurance shall be at least as broad as Insurance Service Office Form CA 00 01 covering bodily injury and property damage for all activities of the Mobile Food Vending Vehicle.
C. The permittee shall maintain commercial general liability insurance with coverage at least as broad as Insurance Services Office Form CG 00 01, in an amount not less than one million dollars per occurrence, two million dollars general aggregate, Item 3A - Page 14
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for bodily injury, personal injury, and property damage, including without limitation, blanket contractual liability. Defense costs shall be paid in addition to the limits.
The policy shall contain no endorsements or provisions limiting coverage for: (1) contractual liability; (2) cross liability exclusion for claims or suits by one insured against another; or (3) contain any other exclusion contrary to the permit.
D. The permittee shall maintain workers’ compensation insurance (statutory limits) and employer’s liability insurance (with limits of at least one million dollars). The permittee shall submit to the City Manager, along with the certificate of insurance, a waiver of subrogation endorsement in favor of the City of Palm Springs, its officers, agents, employees and volunteers.
E. The permittee may opt to utilize umbrella or excess liability insurance in meeting insurance requirements. In such circumstances, the permittee shall obtain and maintain an umbrella or excess liability insurance policy with limits of not less than four million dollars that will provide bodily injury, personal injury and property damage liability coverage at least as broad as the primary coverages set forth above, including commercial general liability and employer’s liability. Such policy or policies shall include the following terms and conditions:
1. A drop down feature requiring the policy to respond if any primary insurance that would otherwise have applied proves to be uncollectible in whole or in part for any reason;
2. Pay on behalf of wording as opposed to reimbursement;
3. Concurrency of effective dates with primary policies;
4. Policies shall “follow form” to the underlying primary policies; and
5. Insu reds under primary policies shall also be insureds under the umbrella or excess policies.
F. Cancellation, termination, or reduction in coverage of any insurance policy filed with the City pursuant to this Chapter shall be just cause for the City Manager to revoke the license.
G. As a condition of being granted a license pursuant to this Chapter, the permittee shall promise, on an application form provided by the City Manager, to indemnify and hold the City of Palm Springs free and harmless from any and all liability, claims, loss, damages, or expenses, including attorney’s fees and court costs, arising by reason of the death or injury of any person, including the permittee or any person who is an employee or agent of the permittee, or by reason of property damage to or destruction of any property, including property owned by the permittee or any person who is an employee or agent of the permittee.
H. Every insurance policy and every certificate of motor vehicle liability insurance filed within the City pursuant to the provisions of this Chapter shall contain the following endorsements:
1. It is hereby understood and agreed that, notwithstanding expressions Item 3A - Page 15
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consistent with or contrary thereto, each policy is expressly issued to cover a motor vehicle regulated by the provisions of Chapter 10 of the Palm Springs Municipal Code. Each policy shall inure to, and be for the benefit and protection of, anyone who shall sustain any damages or injury, or to the heirs, personal representatives, administrators, executors or assigns of any such person who may be so damaged or injured or suffer death, by reason of the operation of the motor vehicle or from the defective condition thereof.
Liability under this policy shall in no manner be abrogated or abated by the death or dissolution of the insured;
2. There is continuing liability up to the full amount of each policy, notwithstanding any action or recovery thereon;
3. No cancellation or reduction in coverage of each policy for any reason whatsoever shall become effective until the expiration of thirty days after written notice of such cancellation or reduction in coverage shall have been given to the City Clerk of the City of Palm Springs. Said period of thirty days to commence running from the date said notice is actually received in the office of the City Clerk;
4. All such policies shall provide, or be endorsed to provide, that the City of Palm Springs and its officers, officials, employees, and agents shall be additional insureds with regard to liability and defense of suits or claims arising out of the performance under this permit. This provision shall also apply to any excess liability policies;
5. All insurance coverage maintained or procured pursuant to this permit shall be endorsed to waive subrogation against the City of Palm Springs, its elected or appointed officers, agents, officials, employees and volunteers or shall specifically allow the permittee or others providing insurance evidence in compliance with these specifications to waive their right of recovery prior to a loss. Permittee shall waive its own right of recovery against the City of Palm Springs;
6. All insurance coverages shall be primary and any other insurance, deductible, or self-insurance maintained by the indemnified parties shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
I. The permittee shall give City Manager prompt and timely notice of claims made or suits instituted that arise out of or result from the permittee’s performance under this permit, and that involve or may involve coverage under any of the required liability policies.
J. The permittee shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its services, permittee shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees and the public appropriate to the nature of the work and the conditions under which the work is to be performed.
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K. Requirements of specific coverage features or limits contained in this section are not intended as a limitation on coverage, limits or other requirements, or a waiver of any coverage normally provided by any insurance. Specific reference to a given coverage feature is for purposes of clarification only as it pertains to a given issue and is not intended by any party or insured to be all inclusive, or to the exclusion of other coverage, or a waiver of any type.
L. The permittee acknowledges and agrees that any actual or alleged failure on the part of the City Manager to inform the permittee of noncompliance with any requirement imposes no additional obligations on the City of Palm Springs nor does it waive any rights hereunder.
6.15.130 Inspection of Mobile Food Vending Vehicles.
A. In addition to other equipment required by law, each Mobile Food Vending Vehicle shall be equipped with the following:
1. A convex mirror mounted so that the occupant of the driver’s seat can see the area in front of the truck which is obscured by the vehicle’s hood; and
2. A back-up alarm audible for a distance of at least one hundred feet.
B. In addition to such inspection of the Mobile Food Vending Vehicle as may be required by other agencies, the City’s Fire Marshal shall perform an inspection of each Mobile Food Vending Vehicle before it is put into service within city limits, and annually thereafter, coincident with renewal of the Mobile Food Ven dor’s permit. The City’s Fire Marshal shall issue a certificate of inspection to Mobile Food Vending Vehicles compliant with fire safety regulations.
6.15.140 Required Signs and Lettering.
A. There shall be displayed in a conspicuous place on both the front and back of the Mobile Food Vending Vehicle appropriate warning signs or lettering, e.g., for Mobile Food Vending Vehicles permitted by the county of Riverside as Category 3 mobile food facilities (ice cream trucks) “CAUTION CHILDREN.” The lettering shall not be less than six inches in height and lettering shall be in contrast to the color of the background upon which they are placed.
B. There shall be displayed in a conspicuous place on both the right and left side of the Mobile Food Vending Vehicle lettering permanently affixed showing the nature of the company or operator of the Mobile Food Vending Vehicle and the business address and telephone number of the owner or operator. The lettering shall not be less than four inches in height, and shall be in contrast to the color of the background upon which they are placed.
C. No other lettering, numbering, price lists, signs or insignia shall be displayed on Item 3A - Page 17
Ordinance No. _____
the right and left side of the Mobile Food Vending Vehicle so as to interfere with the visibility of the lettering required in subsection B of this Section.
6.15.150 Applicability of Regulations to Existing Businesses.
The provisions of this Chapter shall be applicable to all persons and businesses described in this Chapter whether the activities described in this Chapter were established before or after the effective date of the ordinance enacting this Chapter into law. All such persons and businesses shall have thirty days from said effective date to file a completed application for vendors’ permits with the City Manager.
6.15.160 Nuisance; Violation and Penalty.
A. Any Mobile Food Vending Vehicle operated contrary to the provisions of this Chapter is declared to be unlawful and a public nuisance and the City Attorney may, in addition to or in lieu of prosecuting a criminal action hereunder, commence an action or actions, proceeding or proceedings, for the abatement, removal or enjoinment thereof, in the manner provided by law, and may take such other steps and may apply to such court or courts as may have jurisdiction to grant such relief as will abate or remove such establishment and restrain and enjoin any person from operating a Mobile Food Vending Vehicle contrary to the provisions of this Chapter.
B. Every person, whether acting as an individual owner, employee of the owner, operator, or employee of the operator, or whether acting as an agent or independent contractor for the owner, employee, or operator, or acting as a participant or worker in any way directly or indirectly sells or distributes food or beverage from a Mobile Food Vending Vehicle as defined in this Chapter without first obtaining a Mobile Food Vending Vehicle permit from the City Manager, or that otherwise violates any provision of this Chapter, shall be punishable as specified in Sections 1.01.140 and 1.01.150 of this Code.
6.15.170 Exceptions.
The provisions of Section 6.15.110 shall not apply to:
A. Mobile Food Vending Vehicles servicing construction sites.
B. The delivery or sale of pre- ordered goods or services to a private residence or business with the prior consent of the owner, occupant, lessee, or the designee of such persons, including without limitation employees.
C. Food vending on school property with the consent of school authorities.
D. Food vending on private property with the consent of the owner, lessee, or legal Item 3A - Page 18
Ordinance No. _____
occupant of the property and with a valid land use permit and associated fee, if applicable.
E. Food vending as part of a temporary special event, subject to permissions and restrictions as identified in the temporary special event permit.”
SECTION 3. Severability. If any section, sentence, clause or phrase of this Ordinance or the application thereof to any entity, person or circumstance is held for any reason to be invalid or unconstitutional, such invalidity or unconstitutionality shall not affect other provisions or applications of this Ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this Ordinance are severable. The City Council of the City of Palm Springs hereby declares that it would have adopted this Ordinance and each section, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsections, sentences, clauses or phrases be declared invalid or unconstitutional.
SECTION 4. This Ordinance is exempt from the requirements of the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines, as it is not a “project” and has no potential to result in a direct or reasonably foreseeable indirect physical change to the environment [14 Cal. Code Regs. § 15378(a)]. Further, this Ordinance is exempt from CEQA as there is no possibility that this Ordinance or its implementation would have a significant negative effect on the environment [14 Cal. Code Regs. § 15061(b)(3)].
SECTION 5. Effective Date. This Ordinance shall become effective thirty (30) days following its adoption.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, _________.
GRACE ELENA GARNER
MAYOR
ATTEST:
BRENDA PREE, MMC
CITY CLERK
Item 3A - Page 19
Ordinance No. _____
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk of the City of Palm Springs, California, do hereby certify that Ordinance No. ____ is a full, true, and correct copy, and was int roduced at a regular meeting of the Palm Springs City Council on _________ and adopted at a regular meeting of the City Council held on __________ by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.
BRENDA PREE, MMC
CITY CLERK
Item 3A - Page 20
CITY COUNCIL STAFF REPORT
10/26/2023
SUBJECT:
REPORT ON STATE OF CANNABIS AND POSSIBLE DIRECTION REGARDING SAME; URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA,
ADOPTING AN IMMEDIATE MORATORIUM ON CITY APPROVAL OF NEW
APPLICATIONS AND TRANSFERS PERMITS TO ENGAGE IN CANNABIS RETAIL
FOR CONSIDERATION OF APPROPRIATE AMENDMENTS TO THE MUNICIPAL CODE IN ACCORDANCE WITH GOVERNMENT CODE SECTIONS 65858 (4/5TH Vote Required)
RECOMMENDATION:
Receive the report from City Staff and provide direction to Staff as appropriate.1.
Waive the reading of the text in its entirety, read by title only, and adopt an urgency Ordinance entitled, “AN INTERIM URGENCY ORDINANCE OF THE
CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING A TEMPORARY
MORATORIUM ON CITY APPROVAL OF NEW APPLICATIONS AND
TRANSFER FOR PERMITS TO ENGAGE IN CANNABIS RETAIL FOR
CONSIDERATION OF APPROPRIATE AMENDMENTS TO THE MUNICIPAL CODE IN ACCORDANCE WITH GOVERNMENT CODE SECTIONS 65858
(4/5TH Vote Required).”
2. Attachments
Item 3B
CITY COUNCIL STAFF REPORT
D
ATE: OCTOBER 26, 2023 BUSINESS & LEGISLATIVE
SU
BJECT: REPORT ON STATE OF CANNABIS AND POSSIBLE DIRECTION F
ROM:
BY:
REGARDING SAME; URGENCY ORDINANCE OF THE CITY OF PALM
SPRINGS, CALIFORNIA, ADOPTING AN IMMEDIATE MORATORIUM ON
CITY APPROVAL OF NEW APPLICATIONS AND TRANSFERS PERMITS
TO ENGAGE IN CANNABIS RETAIL FOR CONSIDE RATION
OF APPROPRIATE AM ENDMENTS TO THE MUNICIPAL CODE
IN ACCORDANCE WITH GOVERNMENT CODE SE CTIONS 65858
(4/5TH Vote Required)
Scott C. Stiles, City Manager
Department of Special Program Compliance
SUMMARY:
T
his agenda item provides the City Council with an opportunity to discuss the cannabis industry, receive data regarding the cannabis businesses in the City and provide direction to City staff regarding potential regulatory or taxing changes.
I
n the event the Council provides direction to staff, this agenda also provides the City Council with the opportunity to consider an interim urgency ordinance placing a forty-five (45) day moratorium, effective immediately, on the City’s approval of new applications and transfers of cannabis retail business permits in the City of Palm Springs. This moratorium can be extended for an additional period of 10 months and 15 days, pursuant to a future Council ordinance. This moratorium would allow the City to study potential amendments to the Municipal Code and other local regulations affecting the cannabis industry. The moratorium requires four-fifths (4/5
ths) vote of the City Council to pass.
RECOMMENDATION:
1. Receive the report from City Staff and provide direction to Staff as appropriate.
2. Waive the reading of the text in its entirety, read by title only, and adopt Ordinance No. ____, “AN INTERIM URGENCY ORDINANCE OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ADOPTING A TEMPORARY MORATORIUM
ON CITY APPROVAL OF NEW APPLICATIONS AND TRANSFER FOR
PERMITS TO ENGAGE IN CANNABIS RETAIL FOR CONSIDERATION OF
APPPOPRIATE AMENDMENTS TO THE MUNICIPAL CODE IN
ACCORDANCE WITH GOVERNMENT CODE SECTIONS 65858 (4/5TH Vote Required).”
Item 3B - Page 1
City Council Staff Report
October 26, 2023 -- Page 2
State of Cannabis
BACKGROUND:
C
alifornia voters legalized cannabis for adults twenty -one and older with the passage of Proposition 64 in 2016. Since legalization, the heavily regulated cannabis market in California has had numerous difficulties competing with the “illicit” market. The cannabis industry across the State has experienced difficulties facing challenges such as exuberant taxes, lack of access to banking and capital, and prohibitive start-up costs. California is the largest regulated cannabis market in the United States. The 2023 Department of Cannabis Control Annual Report states that a total of 3,784 licenses were issued and 8,848 licenses were renewed in fiscal year 21/22 in the State of California.
STAFF ANALYSIS:
State of the Cannabis Industry in Palm Springs
B
ased on data from the City’s Finance Department regarding tax trends among cannabis retail businesses, it appears doubtful that the City of Palm Springs market can sustain additional cannabis retail businesses . Current cannabis retail businesses are struggling to survive for a multitude of reasons such as taxes, lack of banking and over -saturation of retail locations. The number of open retail stores per ratio to individual per square block is among the highest in the State. Retail stores are competing for the business of people who live and work here and tourists who use cannabis, this number is limited with supply far exceeding demand . Staff is requesting Council consider the City ceasing to accept new and transfer applications for cannabis retail permits, including permits for Storefront Cannabis Delivery, Delivery -only Cannabis Retail, and retail-related Cannabis Microbusiness – as of the effective date of the attached draft ordinance (Attachment A).
Any applicant with a pending and complete application for a cannabis retail business shall be processed.
A
s of October 1, 2023, the existing cannabis retail industry in Palm Springs includes 27 operating Storefront Cannabis Retail businesses, two (2) operating Delivery -Only Cannabis Retail Businesses, and two (2) Microbusiness permits that include a retail component. There are six ( 6) permitted, non- operational and 1 pending permit applications. Existing law provides for the City to accept applications for Cannabis Business Permits on an indefinite basis, with no end date for the acceptance of any such applications. An analysis by a local news publication showed that the City has one dispensary per every 2,100 residents
1. There is evidence to support that Palm Springs
might be the most dispensary -saturated City in the nation. A January 2023 report from trade publication Ganjapreneur ranked Missoula, Montana first with 18.1 dispensaries per 50,000 people. Palm Springs has nearly twice that per capita amount. At the time of adoption, the adult-use cannabis ordinance did not place a cap on the number of cannabis retail permits the City would issue.
1 https://thepalmspringspost.com/latest-city-report-shows-cannabis-business-continues-to- struggle/#:~:text=In%20fiscal%20year%202020%2F2021,revenue%20sits%20at%20%243.2%20million.
Item 3B - Page 2
City Council Staff Report
October 26, 2023 -- Page 3
State of Cannabis
Included as Attachment B is an in-depth overview of the current state of cannabis in the City of Palm Springs and staff recommendations. Various data, including permitting, taxes, and saturation is provided. Staff is seeking direction on the priorities for future ordinance revisions.
Moratorium on Cannabis Permits
State law (Government Code section 65858) authorizes the City Council to put a “pause” on the issuance of permits when doing so would conflict with a contemplated general plan, specific plan or zoning proposal s that the City Council, Planning Commission, or Planning staff is considering or studying or intends to study. For instance, the City Council did this when the City was recently considering modifications to the City’s Vacation Rental regulations. And, in 2019, the City Council adopted such a moratorium on certain cannabis permits while the City was then considering regulatory changes to the cannabis industry at that time.
In order to place this pause on permitting, the City Council is required to adopt an ordinance. The ordinance requires a four-fifths (4/5) vote of the City Council in order to take effect immediately . If adopted, the moratorium will take effect immediatel y and remain in effect for forty -five days (expiring on December 10, 2023). During the moratorium period, the City will study potential amendments to the Palm Springs Municipal Code and/or any governing City planning document(s) or policy(ies) related to the potential over-saturation of, and related impacts from, the cannabis activity. The City might also consider modifications to the tax rates for cannabis operations. The results of that study will be reflected in a statutorily required report issued by the City no less than ten (10) days prior the expiration of the term of this interim urgency ordinance.
The City Council is authorized to extend the initial 45-day term of the moratorium, by way of a future ordinance. That ordinance requires a noticed public hearing in order to be adopted. Because there is only one regular Council meeting scheduled during this 45- day period (November 9), that is the meeting at which an extending ordinance would have to be adopted. In addition to this first extension, the City Council is also authorized to further extend the moratorium an additional 12 months, if necessary.
Under the proposed ordinance, the City will not grant retail cannabis permits or accept or process any applications for cannabis operations when those applications are received during the moratorium period. The City will continue to process permit applications that have been received and are complete as of the date of the ordinance (October 26, 2023).
Finally, the City will not accept or process any applications for transfers of cannabis permits received during the moratorium period.
ENVIRONMENTAL ASSESSMENT:
Staff recommends that the City Council find that this ordinance is not subject to the California Environmental Quality Act under California Code of Regulations, Title 14, Section 15306, because this ordinance temporarily ensures that the status quo is maintained while Item 3B - Page 3
City Council Staff Report
October 26, 2023 -- Page 4
State of Cannabis
the City collects and researches data as part of a study leading to action that the City has not yet approved, adopted or funded.
ALIGNMENT WITH STRATEGIC PLANNING:
This action is one of the express priorities identified by the City Council, which is to “evaluate the existing cannabis program” as part of the City Council’s goal to enhance economic development and the quality of life.
FISCAL IMPACT:
Fiscal year 2022- 23 Cannabis revenue totaled approximately $3.5 million. Of the $3.5 million, $3 million was collected from the 10% retail tax. A 5% retail tax would decrease retail tax revenue to $1.5 million. Increased volume due to the lower tax could minimize that loss. If the proposal to begin charging 2% distribution tax is approved, this could generate $200,000 annually in revenue further minimizing the effect of a retail tax decrease. Additionally, there are several cannabis cultivation projects in the pipeline. The cultivation tax is $5.00 per square foot and the impact of all the cultivation projects is potentially $112,000 annually in revenue.
REVIEWED BY:
Department Director: Veronica Goedhart
Assistant City Manager: Teresa Gallavan
City Attorney: Jeffrey Ballinger
City Manager: Scott Stiles
ATTACHMENTS:
A. Proposed Moratorium Ordinance
B. State of Cannabis Report
Item 3B - Page 4
ATTACHMENT A
Item 3B - Page 5
ORDINANCE NO. ____
AN INTERIM URGENCY ORDINANCE OF THE CITY OF
PALM SPRINGS, CALIFORNIA, ADOPTING A
TEMPORARY MORATORIUM ON CITY APPROVAL OF
NEW APPLICATIONS AND TRANSFERS OF PERMITS TO
ENGAGE IN CANNABIS RETAIL ACTIVITIES, FOR
CONSIDERATION OF APPROPRIA TE AMENDMENTS TO
THE MUNICIPAL CODE , IN ACCORDANCE WITH
GOVERNMENT CODE SECTIONS 65858 (4/ 5
THS VOTE
REQUIRED.
City Attorney’s Summary
Pursuant to Government Code, section 65858, this Interim Urgency Ordinance places a moratorium on the City’s
approval of new applications and transfers for permits of permits to engage in Cannabis Retail Activities. If adopted, this moratorium will pause approvals of new and transfer applications for permits to engage in cannabis retail
activities. The moratorium requires a four-fifths (4/ 5 ths) vote
of the City Council to pass. The moratorium will take effect immediately and have a duration of forty five (45) days . The City may extend the moratorium by adoption of an extension ordinance, which requires notice in accordance w ith
Government Code section 65090, a public hearing, and an additional four-fifths (4/ 5
ths) vote of the City Council to pass.
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1
. Findings.
A. Cannabis Business and Activity
.
i. Palm Springs Municipal Code (PSMC) chapter 5.55 regulates and permits adult - use cannabis business and activity. The Palm Springs Zoning Code (PSZC) provides certain development and land use standards for cannabis business and activity, including a 500-foot separation between such establishments. However, these separation requirements were not applicable in certain zoning districts prior to the 2019 zoning code amendments.
ii. Citywide, the City has received reports of concerns of over-saturation of cannabis retail businesses, raising concerns of the viability of cannabis retail establishments in the City.
iii. The City’s cannabis regulations and zoning restrictions are currently under Item 3B - Page 6
Urgency Ordinance No. _____
review. The City is currently considering amendments to address the cur rent state of the cannabis industry in the City. The City has substantial interest in ensuring that the City’s cannabis industry is sustainable.
B. Public Health, Safety, and Welfare. Given the anticipated applications for cannabis operations in these areas and the City’s interest in protecting the viability of its commercial districts and preventing nuisances, there is a current and immediate threat to the public health, safety, and welfare if permits, entitlements , or other approvals for cannabis business and activities are issued.
C. Purpose. The purpose of this moratorium is to pause consideration of new and transfer cannabis retail businesses, to allow for the City to study and consider potential amendments to the Municipal Code to set standards and procedures to address concerns of potential over-saturation.
SECTION 2
. Moratorium. Now, therefore, in accordance with California Government Code Section 65858, the City Council adopts a moratorium on the approval of new and transfer applications to engage in cannabis retail business activity as follows:
A. Definitions. For the purposes of this ordinance, the following terms and definitions are used:
i. “Dispensary” means any person, entity, or operation, in whole or in part,
whether operating for profit or not -for-profit, and all associated owners, employees, managers or agents engaged in both medicinal and adult use commercial cannabis activity from the permitted premises for the retail sale and delivery of cannabis goods to customers. A “Dispensary,” as that term is used in this Ordinance, is a “Retailer” under the MAUCRSA. “Dispensing” means any activity involving the retail sale of Cannabis goods from a dispensary.
ii. “Moratorium” means a temporary prohibition of an activity.
iii. “New application(s)” mean any application(s) for a permit to engage in cannabis business and activity that the City has not received and deemed complete on or before the effective date of this ordinance.
iv. “Transfer” means the transfer, conveyance, or sale of any or all ownership interests or control of an Adult- Use Cannabis Permit issued under PSMC
5.55. B. Moratorium. N otwithstanding anything to the contrary in existing City law, including, but no limited to, the General Plan, the Municipal Code, the Zoning Code, and Item 3B - Page 7
Urgency Ordinance No. _____
other governing City planning document or policy, a moratorium is hereby placed on the City approval of any new or transfer application for a cannabis retail business , as those terms are defined in 5.55.50 and 5.55.130 respectively.
C. Notification to Permittees and Applicants.
i. The City staff shall distribute a true and correct copy of the Ordinance to all cannabis permittees in the City, and all applicants for cannabis permits with applications pending, and
ii. The City shall post a copy of this Ordinance on the City’s website on the “Cannabis Related Businesses and Activities” page.
D. Duration. The moratorium shall be in effect for forty five (45) days from the adoption of this ordinance. The moratorium may be extended as provided in Government Code, section 65858.
E. Applications.
i. New. The City will not accept or process any application for cannabis retail permits during the moratorium period.
ii. Existing. The City shall continue to process requests for cannabis retail permits upon applications that the City has, as of the effective date of this ordinanc e, accepted and deemed complete, along with request for approvals, variances, building permits, business licenses, and/or other applicable entitlements by City cannabis permit holders.
iii. Transfers. The City will not accept or process any transfer application for cannabis retail permits during the moratorium period.
SECTION 3
. Study. The City Council hereby directs the Department of Special Program Compliance and the Department of Planning Services to study and develop potential amendments to the Municipal and Zoning Code or any other governing City planning document or policy related to over saturation of, and related impacts from cannabis retail business activity.
SECTION 4. CEQA. The City Council finds that this ordinance is not subject to the California Environmental Quality Act under California Code of Regulations, Title 14, Section 15060, subdivision (c) (2), because the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment, directly or indirectly and so is not a project. The ordinance ensures that the status quo is maintained.
SECTION 5. Severability. If any section or provision of this ordinance is for any reason held to be invalid or unconstitutional by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, the remaining sections and/or provisions of this ordinance, and each section or provision thereof, although any one or Item 3B - Page 8
Urgency Ordinance No. _____
more section(s) or provision(s) may be declared invalid or unconstitutional or contravened via legislation.
SECTION 6. Effectiveness. This ordinance is declared an interim measure necessary for the immediate protection and preservation of the cannabis retail business industry for the reasons stated above, and it takes effect immediately on adoption by the City Council by at least a four-fifths (4/5
ths) vote and signing by the City Clerk.
SECTION 7. Report. Ten days before this urgency moratorium or any extension hereof expires, City staff sh all issue a written report, on behalf of the City Council, describing the measures that the City has taken to address the conditions that led to the adoption of this ordinance.
PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS _____ DAY OF ______________, 2023.
Grace Elena Garner, MAYOR
ATTEST:
Brenda Pree,
CITY CLERK
Item 3B - Page 9
Urgency Ordinance No. _____
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, BRENDA PREE, City Clerk o f the City of Palm Springs, California, do h ereby certify that Urgency Ordinance No. ____ is a full, true, and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on _________ and adopted at a regular meeting of the City Council held on __________ by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF , I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this ______ day of ______________, _________.
BRENDA PREE
CITY CLERK
Item 3B - Page 10
ATTACHMENT B
Item 3B - Page 11
0 2018 - 2023
The Department of Special
Program Compliance
Department of Special Program Compliance
State of Cannabis Related
Business and Activities
Item 3B - Page 12
1 Table of Contents
Executive Summary .......................................................................................................................................................... 2 Core Requirements of the Current Palm Springs Cannabis Ordinance .......................................................................... 3 Overview of Department of Special Program Compliance related to Cannabis............................................................ 5 Cannabis Code Compliance .............................................................................................................................................. 6 Challenges for Cannabis Businesses ................................................................................................................................ 8 Taxes ............................................................................................................................................................................... 10 Fiscal year Overview ...................................................................................................................................................... 12 Permittee Review ........................................................................................................................................................... 19 Oversaturation ............................................................................................................................................................... 21 Successes for the City of Palm Springs Cannabis Businesses........................................................................................ 25
Item 3B - Page 13
2 Executive Summary
California became the first state to allow medicinal cannabis use when voters passed the Compassionate Use Act in 1996. Today, cannabis is legal in California for medicinal and adult (recreational) use. The cannabis industry is strictly regulated to make sure:
• Businesses operate safely.
• Products are contaminant-free and labeled to inform purchases. • Cannabis is kept away from children.
On July 26, 2017, City Council adopted Ordinance 1933 amending Chapter 5.45 and establishing Chapter
5.55 of the Palm Springs Municipal code allowing commercial cannabis related businesses and activities in the City of Palm Springs (“City”). In August 2017 the City began accepting applications for commercial cannabis businesses. The City has developed and implemented licensing procedures that are constantly evolving at all levels of government – federal, state, and local. The State of California went through three separate emergency rulemaking processes prior to adopting their final regulations regarding cannabis on January 15, 2019. The City of Palm Springs allows all sectors of cannabis business activity: cultivation, testing, manufacturing, transportation and distribution, storefront dispensaries, and on -site consumption lounges.
On December 4, 2019, City Council adopted Ordinances 2005 and 2007 amending and consolidating Chapters 5.45 and 5.55 of the Palm Springs Municipal Code and amending Palm Springs Zoning Code
93.23.15. Since the implementation of the City’s adult recreational cannabis regulations the City has permitted:
• 42 dispensaries with 17 including lounges.
• 12 cultivation businesses with one operating.
• 22 manufacturing businesses with ten operating.
• 36 transportation/distribution businesses with 21 operating.
This report provides an overview of the adult-use cannabis market in the City of Palm Springs and will identify issues facing the industry.
Item 3B - Page 14
3 Core Requirements of the Current Palm Springs Cannabis Ordinance
The City began regulating cannabis businesses in Palm Springs in 2014. At that time, there were a limited number of Medical Cannabis Cooperatives and Collectives. On December 7, 2016, the Council introduced, and on December 14, 2016, it adopted Palm Springs Municipal Code (“PSMC”) Chapter 5.45 in Ordinance 1909. The passage of the State's Medical Cannabis Regulation and Safety Act (MCRSA) prompted this action. In doing so, the City expanded its regulation of cannabis beyond the existing regulatory framework applicable to the City's permitted medical cannabis collectives or cooperatives (“MCCC”). It did so to allow the City to transition to an environment wherein the City could approve various medical cannabis businesses and activities independent of the restrictions that limited cannabis in the City to six (6) permitted non- profit collective or cooperative operators. These regulations included an expansion of cannabis cultivation opportunities, and the provision of manufacturing, delivery, dispensing, and testing activities in the City.
On July 26, 2017, the City adopted Ordinance 1933 amending PSMC Chapter 5.45 (medical cannabis) and adding Chapter 5.55 (recreational cannabis). The Ordinance provided the regulatory framework to accept and process applications, permit cannabis businesses, and provide the rules and regulations for operation.
The City did not place a cap or scoring criteria for the issuance of local permits. On December 14, 2019, the City adopted Ordinance 2005, deleting PSMC Chapter 5.45 and amending Chapter 5.55. The amendments updated and centralized the City’s procedures governing cannabis in the City.
Local Legislative History:
Date: Ordinance
/Resolution:
Summary:
03/04/2009 Ordinance 1758 Zoning ordinance for MCCC.
02/03/2010 Ordinance 1766 Approval of minor modifications for MCCC. 02/03/2010 Ordinance 1769 Urgency ordinance allowing for changes effective immediately.
06/06/2010 Ordinance 1766
(Amendment)
Ordinance allowing 3 MCCC (previously 2).
03/07/2012 Ordinance 1805 Urgency ordinance correcting Zoning Code
93.23.15. 04/11/2012 Ordinance 1804 Consolidation and corrections to the Zoning Code for MCCC.
07/11/2012 Ordinance 1812 Urgency ordinance relating to unpermitted MCCC and providing administrative enforcement.
09/05/2012 Ordinance 1811 Require unpermitted collectives to disclose status to public and provide administrative enforcement.
11/05/2013 Ordinance 1831 Approve and implement cannabis tax for MCCC. 04/02/2014 Ordinance 1845 Created a comprehensive regulatory program for MCCC. Established PSMC 5.35.
05/20/2015 Ordinance 1876 Revisions to Zoning Code for MCCC. 06/17/2015 Ordinance 1879 Ordinance increasing number of MCCC from 4 to 6 and allowing cultivation.
06/15/2016 Ordinance 1892 Established hours of operation for MCCC and MCCF facilities.
12/14/2016 Ordinance 1908 Zoning amendments.
12/14/2016 Ordinance 1909 Established PSMC 5.45.
Item 3B - Page 15
4 Date: Ordinance
/Resolution:
Summary:
07/26/2017 Ordinance 1933 Established PSMC 5.55 and amended 5.45 creating rules and regulations for commercial
medical and adult use cannabis.
11/15/2017 Ordinance 1944 Amended Zoning code for commercial medical and adult use cannabis.
12/06/2017 Ordinance 1946 Cannabis tax for cannabis business activity. 12/13/2017 Resolution 24339 Established cannabis tax rates. 02/20/2019 Resolution 24569 Modification of cannabis tax rates. 12/4/2019 Ordinance 2005 Amendments to PSMC 5.55 and de letion of PSMC 5.45. Update d and centralized the City’s
procedures governing cannabis in the City.
12/04/2019 Ordinance 2007 Amendments to Zoning Code.
Item 3B - Page 16
5 Overview of Department of Special Program Compliance related to Cannabis.
In January 2022 a code compliance officer was assigned to the department for cannabis compliance. Since that date, the department now has one code compliance supervisor who oversees both cannabis and vacation rentals and a code compliance officer assigned to cannabis. There is one vacant cannabis code compliance officer position to be filled.
The Department personnel are responsible for:
• P rocessing new, renewal and transfer permit applications. • Code Compliance and citation administration.
• Operational auditing and reporting.
• P roviding customer service.
• Processing the Administrative Citations.
• M anaging the administration of citations by notifying each business owner of citations that have been issued against their respective businesses.
• Monitoring compliance pursuant to Palm Springs Municipal Code 5.55.
The Department prepares staff reports for all Administrative Appeals Board Meetings relating to violations of Palm Springs Municipal Code 5.55.
Item 3B - Page 17
Department of Special
Program Compliance
Director of Special Program
Compl iance
Assistant Director Code Supervisor• Cmnabis and
Vacation Rental Cod e Co mpliance
Adm1nistratve Assistant
..
Senior Account Technician
cannabis Enforcement
Code Compl iance Officer -
cannabis Enforcement
6 Cannabis Code Compliance
Types of Inspections at Cannabis Business
• Security Plan Inspections
o Conducted Annually.
• Initial Permit / Renewal Full-Site Compliance Inspections o Conducted once the business opens and annually upon permit renewal by CODE. • Odor Compliance Checks
o Conducted weekly at all cultivation facilities and cannabis lounges by CODE. • Drop-in (unannounced) Facility Inspections
o Conducted weekly at operating facilities for spot check compliance by CODE. • Permitted Non-Operational Facility Inspections
o Exterior Inspections conducted weekly to observe progress/changes. o Interior inspections conducted semi-annually to ensure businesses remain in compliance with their conditional operating permit.
• Licensee Prompted Courtesy Compliance Checks
o Ad Hoc upon request by the licensee to maintain compliance or to recheck if operational changes have occurred at the business.
• C omplaint Based Inspections
o Ad Hoc when complaints are received.
Enforcement Action Taken
• Courtesy Notice with a corrective action plan: 4 Total o 4 resolved.
• Notice of Violation with a citation: 9 Total
o Joy Of Life Cultivation – Undocumented Cannabis Cultivation Activity (serious) Cannabis Operating Permit Revoked
o The Row House – Prohibited Signage (Minor)
o OG Arabian Nights – Employee Roster Not Properly Maintained (Serious) o The Lighthouse – Unpermitted Outdoor Vendor Exhibit/Display (Minor) o Reefer Madness – Unsecured Cannabis Storage Area (Serious) Citation Overturned by Administrative Appeals Board
o FLWR CO – Unauthorized Security Personnel. Employee Roster Not Properly Maintained (Serious)
Citation rescinded in lieu of a corrective action plan. Business surrendered permit and is no longer operating.
o SD Strains Inc - Failure to comply with their approved Odor Control Plan, Unpermitted facility modifications/Unpermitted construction (Serious) o The Row House - Dispensing free Cannabis Goods, transactions not logged in the business's point-of-sale system and not documented in the State's Track-and-Trace software, Failure to remit tax on cannabis business or activity on time. (Serious) o Kings Garden - Failure to comply with the business waste disposal plan, Failure to store Cannabis Goods in a secured and locked safe room, safe, or vault, and in a manner to prevent diversion, theft, and loss. (Serious)
Item 3B - Page 18
7 Crime related issues/Police Involved incidents.
• Off the Charts, 1508 S Palm Canyon Dr
o October 2021 attempted overnight break in. Unknown suspects forcefully reversed a vehicle into the front entrance attempting to get inside the business and access cannabis product.
The suspects were unsuccessful due to the security gates; however, caused significant damage to the front entrance to the dispensary.
o February 2022 a cannabis delivery driver was shot and killed while delivering to Desert Highland Estates.
• One Plant, 2739 N Palm Canyon Dr
o February 2022 Shooting into the facility. An unknown vehicle driving northbound on N Palm Canyon Dr fired 3 shots into the front entrance while the bus iness was closed. E mployees were inside the dispensary conducting an inventory reconciliation. o July 2022 Shooting into the facility. An unknown vehicle driving northbound on N Palm Canyon Dr fired between 2 and 4 shots into the front entrance, shattering t he east facing glass windows, overnight while the business was closed.
o March 2023 Attempted Armed Robbery. A suspect entered the business, pointed a handgun, and fired a shot in the direction of the security guard. The security guard fought off the suspect for the gun and was able to disarm the suspect The suspect then fled the scene. • OG Arabian Nights, 232 N Palm Canyon Dr
o August 2022 Attempted overnight break in. Suspect threw a rock causing the glass door at the front entrance and entered the business after prying open the security fencing to take items out of the dispensary. The suspect fled when the audible alarm sounded and was later arrested by PSPD in the area a short time later.
• Emerald & Sage, 2155 N Palm Canyon Dr
o January 2023 Felony Vandalism. Unknown suspect propelled an unknown object at the glass window facing North Palm Canyon Dr causing the window to break beyond repair. o February 2023 Felony Vandalism. Unknown suspect propelled an object suspected to be a pellet from a bb gun, at the same glass window that was previously damaged and replaced, causing the window to be break beyond repair.
Item 3B - Page 19
8 Challenges for Cannabis Businesses
Cannabis Business Operators expressed several areas of general concern, they include:
• Overall trend of reduced traffic and profits.
• Tax concerns about the impact of taxes and fees across multiple levels of government. • The illicit market remains an area of concern.
• Financial challenges due to limited resources to banking. • Federal cannabis prohibition.
Cannabis sales in California fell last year, according to data from the state’s Department of Tax and Fee Administration. Total taxable sales (encompassing both recreational and medical marijuana) totaled $5.3 billion in California last year, down from approximately $5.8 billion in 2021. Sales were highest in the second quarter of the year when they topped $1.4 billion and lowest in the final quarter to $1.27 billion. That marked the lowest dollar value in the state since Q2 of 2020, when $1.15 billion of cannabis was sold. California collected roughly $1.1 billion in cannabis taxes last year, down from around $1.4 billion in 2021.
Item 3B - Page 20
$1,800 ,000,000
$1 ,600,000,000
$1,400,000 ,000
$1,200,000,000
$1,000,000,000
$800 ,000,000
$600,000,000
$400 I 000 I 000
$200,000,000
$0
California Cannabis Tax Revenues
2022 2021 2020
Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Qtr 3 Qtr 2 Qtr 1 Qtr 4 Qtr 3 - Excise Tax - Cultivation Tax Sales Tax Total Tax _ Taxable Sales 9 California Cannabis Tax Revenues
The green line represents actual totals, while the blue line demonstrates the trend.
$800,000,000
$900,000,000
$1,000,000,000
$1,100,000,000
$1,200,000,000
$1,300,000,000
$1,400,000,000
$1,500,000,000
$1,600,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Taxable Sales
$50,000,000
$150,000,000
$250,000,000
$350,000,000
$450,000,000
$550,000,000
$650,000,000
$750,000,000
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 Collected Tax By Category
Excise Tax
Cultivation Tax
Sales Tax
Total Tax
Item 3B - Page 21
10 There are numerous reasons for the declines. Some are prevalent throughout the industry and some specific to California. Top of the list is the continued slide in the wholesale price of cannabis, which is a challenge just about everywhere cannabis is legal, driven by pressure from the illicit market and producers’ inability to ship across state lines, sequestering product where it may not be needed.
Taxes
State Taxes
Like other businesses, cannabis businesses must pay broad-based taxes such as income taxes and sales taxes. Additionally, Proposition 64 established two State excise taxes on cannabis. The first is a 15 percent excise tax on retail gross receipts. The second is a cultivation tax on harvested plants. An overview of California’s Cannabis Taxes is set forth below:
California’s Cannabis Taxes
Tax Type Rate
State Retail Excise Ad valorem tax primarily on
wholesale taxes
Nominally 15 percent of retail price.
In practice:
• For most sales, administratively
determined percentage of
wholesale price.
• For some sales 15% of retail
price
State Cultivation Tax Weight-based tax on harvested
cannabis
The cultivation tax is presently
suspended
Local Taxes Varies by municipality; most
commonly ad valorem or based on
square footage
City of Palm Springs:
Cultivation: $10/ Sq. Foot.
$5/ Sq. Foot in cannabis overlay
zone
Manufacturing 2% of gross receipts
Distribution 0%
Testing 0%
Retail 10% of gross receipts
Sales Tax 9.25%
The State deposits the revenues from the two cannabis taxes into the Cannabis Tax Fund. Proposition 64 continuously appropriates Cannabis Tax Fund proceeds to fund three types of activities:
• Allocation 1 – Regulatory and Administrative Costs.
• Allocation 2 – Specified Allocations.
• Allocation 3 – Percentage Allocations (these revenues go to three broad types of activities: 60 percent for youth programs related to substance abuse education, prevention, and treatment; 20 percent for environmental programs; and 20 percent for law enforcement).
California has enacted several new tax reforms to provide relief to the state’s struggling cannabis industry.
New Tax Cuts
Assembly Bill 195, a budget “trailer bill,” was enacted on June 30, 2022, to provide tax relief to the state’s struggling legal cannabis industry. The bill contains several tax provisions including the following:
Item 3B - Page 22
11 • Eliminating the cultivation tax.
• Freezing the cannabis excise tax rate at 15% for the next three fiscal years (Note: This bill includes language to incrementally increase the excise tax (not to exceed 19 percent) after the three -year window expires).
• Allowing certain cannabis retailers to reinvest 20% of the excise taxes they collect into their own businesses.
• Shifting the collection of the cannabis excise tax to the cannabis retailer beginning on January 1, 2023; and
• Earmarking $40 million in tax credits for qualified cannabis retailers and equity operators.
Local Taxes
Ordinance No. 1946, adopted by the voters of the City on December 6, 2017, amended Chapter 3.42 of the Palm Springs Municipal Code regarding cannabis taxation. This ordinance authorized the City to impose a tax on the gross receipts of cannabis businesses at a maximum amount of 15 cents ($0.15) of every dollar of gross receipts, with a separate tax for cultivation assessed at a maximum annual tax rate of ten dollars ($10) per square foot of cannabis cultivation area or fraction thereof. The Ordinance provides that the City Council may set the tax at or below that maximum or otherwise to amend, modify, change, or revise any provision of Chapter 3.42 as the City council deems in the best interest of the City.
Resolution No. 24339, adopted on December 13, 2017, set the City’s initial tax rates at ten cents ($0.10) of every dollar of gross receipts for cannabis businesses, and ten dollars ($10) per square foot of cannabis cultivation area. Resolution No. 24569 adopted on February 20, 2019, reduced the cannabis business activity tax rate on manufacturing to two percent, and suspended the tax on transportation and distribution, and testing facilities.
Like the State and other local jurisdictions that have permitted recreational cannabis, the City has experienced a decline in cannabis tax reporting . Tax revenue dropped in four of the five Coachella Valley cities that allowed dispensaries: Cathedral City, Desert Hot Springs, Palm Desert and Palm Springs. Local operators have attributed the decrease in sales to high local and state taxes , which in turn is causing price markups for consumers and over saturation. Below is a total of City of Palm Springs cannabis tax revenue for Fiscal Year (FY) 20/21 to present.
Item 3B - Page 23
12 Fiscal year Overview
Fiscal Year Cannabis Tax Revenue
$2,332,869.00
$2,796,347.00
$4,770,184.00
$4,215,353.00
$3,332,021.00
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Cannabis Tax Revenue by Fiscal Year
(Actuals)
Item 3B - Page 24
13 Fiscal year review cannabis tax revenue by cannabis type * data source Monthly Cannabis Collections Report (unaudited)
$2,332,869.00
$2,796,347.00
$4,770,184.00
$4,215,353.00
$3,332,021.00
$-
$1,000,000.00
$2,000,000.00
$3,000,000.00
$4,000,000.00
$5,000,000.00
$6,000,000.00
FY 2018-19 FY 2019-20 FY 2020-21 FY 2021-22 FY 2022-23
Cannabis Tax Revenue by Fiscal Year
(Actuals)
$4,378,798.27
$4,085,493.55
$3,206,718.19
$-
$500,000.00
$1,000,000.00
$1,500,000.00
$2,000,000.00
$2,500,000.00
$3,000,000.00
$3,500,000.00
$4,000,000.00
$4,500,000.00
$5,000,000.00
20/21 21/22 22/23
Retail Cannabis Tax Collected by Fiscal Year
-
Data
source Monthly Cannabis Collections Report
Total
Item 3B - Page 25
14 $93,796.38
$316,317.12
$265,005.33
$-
$50,000.00
$100,000.00
$150,000.00
$200,000.00
$250,000.00
$300,000.00
$350,000.00
20/21 21/22 22/23
Cannabis Cultivation Tax Collected by Fiscal Year
-
Data source Monthly Cannabis Collections Report
Total
$-
$2,542.21
$33,191.58
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
$35,000.00
20/21 21/22 22/23
Manufacturing Cannabis Tax Collected by Fiscal Year
-
Data source Monthly Cannabis Collections Report
Total
Item 3B - Page 26
15 Proposed revisions to Cannabis Tax Ordinance
Definitions:
• Correction to the definition of Gross Receipts. This was discussed with Council in 03/2020 and agreed to remove the State’s excise tax in the definition. Presently, there is not a definition of gross receipts.
The City has included the excise tax collected by the retailer in their gross receipts’ calculations, essentially taxing tax on tax. It was unanimously agreed by Council to define the term to exclude the State excise tax from the definition of gross receipts. • Presently, there is not a definition for Cannabis Accessories. It is important to provide a definition of this term; as, the local cannabis tax would be applicable to cannabis accessories.
Proposed Definitions:
Gross Receipts means the total amount of monetary consideration actually received or receivable by a cannabis business for providing, at wholesale or retail, cannabis and/or cannabis products, for which a charge is made or credit allowed including, but not limited to: membership dues, the value of monetary and in-kind contributions, payments, reimbursement of fees or cultivation, processing, distribution, delivery, retail, storing, exchanging, processing, delivery, making available, or transmitting of cannabis or cannabis products, any payments made, and anything else of value obtained by a cannabis business. Included in “gross receipts” shall be all receipts, cash, credits, and property of any kind without deduction of the cost of the property sold, the cost of the materials used, labor or service costs, interest paid or payable, or losses or other expenses whatsoever.
Gross receipts shall not include the following:
1. Cash discounts that were allowed and taken on sales.
2. Sales or other applicable state or local tax required by law to be added to the purchase price of cannabis or cannabis products and collected from the purchaser.
3. Such part of the sales price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts; or
4. Whenever there are included within gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectable in a subsequent year, those amounts may b e excluded from gross receipts in the year they prove to be uncollectable; provided, however, if all or any portion of such amounts excluded as uncollectible are subsequently collected, they shall be included in gross receipts for the period when they are recovered.
Cannabis Accessory 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, repacking, storing, smoking, vaporizing, or containing cannabis, or for ingesting, inhaling, or otherwise introducing cannabis or cannabis products into the human body.
Item 3B - Page 27
16 Proposed Changes to Cannabis Business Tax:
Cannabis Equity Business Tax Incentive
Introduction of a 50% tax incentive for equity retail businesses. This will assist in ensuring the success of these businesses in the competitive regulated industry.
Allocation of Local Cannabis Tax Revenue
A percentage allocation, to be determined by Council, of local cannabis tax revenue for social good.
Additionally, setting aside 1% of local cannabis tax revenue for the City’s equity program.
Introduction of Cannabis Distribution Tax
In February 2019 the City suspended the distribution tax and retained the right to reinstate and resume collection of these “suspended taxes”. At the time, it was explained that the distribution model is about moving product, high volume, low percentage business. The 10% tax that was initially implemented would create a financial hardship on a business operation type that also served to collect retail and cultivation excise tax for the State. The proposal of a 2% tax rate is a moderate amount and would off-set the reduction to the proposed reduction to the retail cannabis tax. There are presently 16 licensed distributors in the City, below is table reflecting their gross receipts for FY 2022 – 2023.
Cannabis Distribution Gross Receipt Totals FY 2022 - 2023 Month/Year Gross Receipts Reported
Jul-22 $ 1,142,725.21
Aug-22 $ 970,373.40
Sep-22 $ 803,167.73
Oct-22 $ 997,766.92
Nov-22 $ 714,389.70
Dec-22 $ 678,184.39
Jan-23 $ 592,892.16
Feb-23 $ 182,155.26
Mar-23 $ 1,000,353.50
Apr-23 $ 850,669.01
May-23 $ 1,156,834.32
Jun -23 $ 599,016.75
Total
$ 9,803,785.47
Average
$ 816,982.12
Reduction of Retail Tax
A reduction of retail tax to 5% from 10%. Dispensaries in Palm Springs averaged $1.29 million in sales in the 2021-2022 fiscal year, down from $1.7 million a year earlier. That’s the second lowest per -store number in the valley after Cathedral City, which averaged $1.16 million. Cities are continuing to see the illicit market thrive due to the high cost of regulated cannabis operations. At the time the cannabis retail tax was set, most Cities adopted a standard 10% tax on gross receipts. The high tax rates are challenging to the businesses who must also pay State tax, local sales tax, local cannabis tax, and a cannabis excise tax. Cities across the Item 3B - Page 28
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17 State have lowered their tax rates to increase the viability of these businesses. Provided is a table with local tax rates for Cities in Southern California and one specific to the Coachella Valley that permit cannabis.
So Cal City Cannabis Retail Tax Rates
Long Beach 8% Recreational 6% Medical
Pasadena 4% Recreational and Medical
Culver City 6% Recreational 5% Medical
Malibu 2.5% Recreational 0% Medical
West Hollywood 7.5% Recreational 0% Medical
San Diego 5% Recreational 0% Medical
Sacramento 4% Recreational and Medical
Coachella Valley Cannabis Retail Tax Rates
Cathedral City 5% Recreational and Medical
Coachella 6% Recreational and Medical
Desert Hot Springs 10% Recreational and Medical
Indio 6% Recreational and Medical1
Palm Desert 5% Recreational and Medical
Palm Springs 10% Recreational and Medical
1 The City of Indio is presently determining their retail tax rate and it is proposed to be set at either 5 or 6% Item 3B - Page 29
18 Below provides an overview of cannabis tax revenue in the Coachella Valley, broken down by all cannabis tax revenue and retail specific tax revenue.
Item 3B - Page 30
2020- 2021 Dispensary
Tax Income
2021- 2022 Dispensary
Tax Income
2020- 2021 Tax Revenue
2021- 2022 Tax Revenue
RETAIL/DISPENSARY TAX INCOME
Cathedral City - $1,800,000
- $1,400,000
Coachella• - $636,130
Desert Hot Springs ---- $2,693,883
--- $1,997,117
Palm Desert
PalmSpri~s
TOTAL TAX REVENUE
Cathedral City
Coachella' $1,896,439
Desert Hot Springs
$4,306,798
$4,013,494
Palm Desert $3,673,128
$3,3 18,371
Palm Springs $4,472,594
$4,401,8 11
19 Permittee Review
Permittee Review – As of October 1, 2023
While the City of Palm Springs Cannabis Related Business and Activities began accepting applications for adult-use cannabis in 2017. Between the years of 2017 and 2019, the City received 99 applications. This number dropped drastically in 2020, with only 26 applications being received between 2020 and 2023.
Since the implementation of adult use cannabis regulations, the City has permitted: 71 dispensaries, 29 cultivation, 34 manufacturing and 50 distribution businesses.
NOTE: Cannabis businesses may have one permit with multiple cannabis business activities.
Since the implementation of adult use cannabis regulations, the City has permitted:
• 71 Dispensaries with 21 lounges;
• 39 Cultivation
• 34 Manufacturing
• 50 Distribution
71 21
50 34
39 Cannabis Permit by Type
Dispensary Lounge Distribution Manufacturing Cultivation 2017 2018 2019 2020 2021 2022 2023
20 39 40
10 4 11
1 Applications
Item 3B - Page 31
20 As the industry continues to struggle both state-wide and locally, the number of operational cannabis businesses has decreased. There are 33 cannabis permits in operational status, with 24 dispensaries, 18 distribution, seven (7) manufacturing, and two (2) cultivation. 22 permits have expired, 16 have been withdrawn, 12 rejected, 14 surrendered, six (6) revoked, six (6) abandoned, two (2) unresponsive, 13 permitted non-operational, and one (1) pending.
33 22 16 12 14 6 6 2
13 1
Active Permits Non Operational
Item 3B - Page 32
21 Oversaturation
Cannabis retail has experienced the most saturation with 42 permitted dispensaries, 33 of those dispensaries are presently operating. There is even evidence to support that Palm Springs might be the most dispensary- saturated City in the nation. A January 2023 report from trade publication Ganjapreneur ranked Missoula, Montana first with 18.1 dispensaries per 50,000 people. Palm Springs has nearly twice that per capita amount. There is an undue concentration of dispensaries in Demuth Park and the Palm Canyon corridor as demonstrated in the heat maps below2.
2 The heat maps reflect all permitted dispensaries, both operational, non-operational, and conditionally approved non- operational. Cultivation – 17, Distribution – 36, Manufacturing 22, and Dispensaries – 42.
Item 3B - Page 33
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f , <.,:••• I 'll'.,' I/>,:.- •~,:•f ,I iUH'I ~, :, >. I o :I~ .•·•••••><I'.-• I \ , (fr,,. •><1!• kJ .. 1 ~$1.,ff;> fl::, .1 -~· ,, ,,,. ) ',, <.• ... ~ r ,.r,,h,.,.,,,1 .. , r:io;~·« ;:, !'I'~,,.,.,,,,~ 24 Cannabis business owners struggle to remain viable in a saturated and increasingly competitive market. The number of competitors has grown; however, overall sales have decreased. There are approximately 207 cannabis operations in the Coachella Valley. Approximately one- third are storefront dispensaries. Below is an overview map of cannabis businesses in the Coachella Valley. T he map below does not reflect the addition of five newly permitted dispensaries in Indio.
Staff is recommending the following changes to assist with the City’s current state of dispensaries:
• A moratorium on new and transfer dispensary applications. • A cap of 15 dispensaries, to be reached through attrition. • Prohibit the sale and/or transfer of dispensary permits. • Non-operational dispensaries may not renew their permit. • Implement a one- person-one dispensary rule, current operators with more than one permit will be grandfathered.
• Require dispensaries provide educational materials about cannabis consumption to customers. • Staff is seeking Council direction to alleviate the over-saturation in the City.
Item 3B - Page 36
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25 Successes for the City of Palm Springs Cannabis Businesses
Cannabis Social Equity Program
The City is committed to an industry that encourages and enables full participation by people from communities that have been disproportionately harmed by cannabis prohibition and enforcement. The City’s social equity program, when initially adopted in March 2019, established assistance to qualified applicants by waiving cannabis business application and permitting fees. The program also provides education on the licensing and permitting process, as well as expedited application processing. Recognizing the need to help establish and maintain a cannabis business the City revised the equity program. The City’s revised equity program in November 2020 provides financial assistance, education, skill -based training, and tools for success in the cannabis industry. The goal of the program is to provide participants the tools and training necessary to apply, obtain a license, and sustain their business.
There are several challenges facing cannabis businesses above and beyond those that startups in other industries face. These challenges are even greater for equity owned businesses. The revisions made in November 2020 assist with the financial barriers to enter the legal cannabis market by providing direct financial assistance. The revisions also provide the ability to utilize grant funds to provide technical and professional services to equity owned businesses. The City strives to create an equity program that will capture a sufficient representation of persons most harmed by cannabis prohibition and enforcement in business licensure and ownership; and generate the opportunities for restorative justice.
To date, the City has secured $2,422,526.08 in equity funding. Equity funding has assisted three 100% equity owned businesses to become licensed in the City. There are a total of four equity permittees.
Pictured above, Willie Holland (left) and Titus Holland (center) with California Governor’s Office of Business and Economic Development and City of Palm Springs Staff
Item 3B - Page 37
26 California Board of State and Community Corrections Prop 64 Public Health & Safety Grant
In 2021, the City partnered with the Boys and Girls Club of Palm Springs to apply for the Board of State and Community Corrections (BSCC) Prop 64 Public Health & Safety Grant. The City’s application was ranked second in the State and $1 million dollars was awarded.
The grant provides funds for projects that address an array of local topics including:
• Juvenile development , prevention, and intervention activities. • D evelop resources to address adolescent cannabis offenses. • D ecrease cannabis use among youth ages 12 -18 and increase youth and adult connections to build resiliency.
• P rovide dedicated public safety personnel to assist with cannabis enforcement.
The grant funds were used to construct and staff the Cannabis Education Center, which opened on May 6, 2023. The City serves as lead public agency working with the Boys and Girls Club of Palm Springs. The City with the Boys and Girls Club has secured a second grant award, BSCC Prop 64 Cohort 3 funding in the amount of $3 million dollars in 2023.
Boys and Girls Club Cannabis Education Center Ribbon Cutting May 6, 2023 Item 3B - Page 38