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HomeMy WebLinkAbout2017-07-26 CC MINUTES CITY COUNCIL- o CITY OF PALM SPRINGS, CALIFORNIA V M .1 •r4[ira�N�' MINUTES WEDNESDAY, JULY 26, 2017 Palm Springs Convention Center, Primrose B 277 N. Avenida Caballeros, Palm Springs, CA 92262 ADJOURNED REGULAR AND SPECIAL MEETINGS 4:00 P.M. CLOSED SESSION CALL TO ORDER (Primrose B): Mayor Moon called the meeting to order at 4:00 p.m. All members of the City Council were present. City Attorney Kotkin stated there were two items that came to the City via email after the posting of the agenda, and requested adding two items to the Closed Session Agenda as follows: EXISTING LITIGATION, G.C. 54956.9(d)(1) City of Palm Springs v. Desert Wellness, H. Sossa, Trustee of Sossa Family Trust Case No. PSC 1602065, Riverside Superior Court, Palm Springs Division EXPOSURE TO LITIGATION, G.C. 54956.9(d)(2) 1 Case ACTION: By a unanimous vote (5-0-0) of the City Council the following were approved: 1) A. Find information regarding the existing litigation, Desert Wellness, was received after the posting of the Agenda and there is an immediate need to hear and/or take action; and B. Find information regarding one (1) case Exposure to Litigation was received after the posting of the Agenda and there is an immediate need to hear and/or take action. 2) Add to the Closed Session Agenda two (2) items pursuant to Cal. Gov. Code Section 54956.9(e)(3) as shown below: EXISTING LITIGATION, G.C. 54956.9(d)(1) City of Palm Springs v. Desert Wellness, H. Sossa, Trustee of Sossa Family Trust Case No. PSC 1602065, Riverside Superior Court, Palm Springs Division EXPOSURE TO LITIGATION, G.C. 54956.9(d)(2) 1 Case PUBLIC COMMENT (Primrose B): No one came forth to address the Mayor and City Council. City Council MINUTES July 26,2017 Page 2 RECESS TO CLOSED SESSION (Mesquite D): At 4:05 p.m., the Mayor and City Council recessed to Closed Session in Mesquite D. See Closed Session Agenda, Exhibit A. 6:00 P.M. REGULAR MEETING CALL TO ORDER: Mayor Moon called the meeting to order at 6:09 p.m. PLEDGE OF ALLEGIANCE: Mayor Moon led the salute to the flag. ROLL CALL: PRESENT: Councilmember Kors, Councilmember Mills, Councilmember Roberts, Mayor Pro Tern Foat, and Mayor Moon ABSENT: None. ALSO PRESENT: City Manager Ready, Assistant City Manager Fuller, City Attorney Kotkin, and Interim City Clerk Hart PRESENTATIONS: City Manager Ready provided a presentation on pedestrian safety. ACCEPTANCE OF THE AGENDA: City Clerk Hart clarified the amendments to Items 3B and 3C and the addition of Items 3D and 4A. City Manager Ready requested the removal of Item 5B. Councilmember Mills requested removing Items 1 F and 11 from the Consent Calendar. Mayor Pro Tern Foat stated recusal on Item 1 E, due to real estate interest. ACTION: Approve the agenda as presented with the removal of Items 1 F and 11 from the Consent Calendar and withdrawing Item 5B. Motion by Councilmember Roberts, seconded by Councilmember Kors, and unanimously (5-0-0) carried on a roll call vote. REPORT OF CLOSED SESSION: City Attorney Kotkin reported that the Council discussed Closed Session items, except the initiation and exposure to litigation, with no reportable actions taken. PUBLIC TESTIMONY: (Non-Public Hearing Agenda Items ONLY) Aftab Dada, Palm Springs, Hilton Palm Springs General Manager, spoke in support of Item 5A. Stacy Louis, owner of Stacy's Bar in Phoenix, Arizona, requested approval of Item 1 B. City Council MINUTES July 26,2017 Page 3 Andrew Hirsch, Palm Springs, urged the Council to not pass the leaf blower ordinance and return Item 1 F to staff for environmental review. Sara Frith, Palm Springs, stated opposition to Item 11, 750 Lofts project. Robert Van Roo, Palm Springs, stated support for Item 3A. Tom Adamo, Palm Springs, stated support for H&Ms request under Item 5A. Lisa Middleton, Palm Springs, stated support of Items 3A through 3D. Jim Cross, Cathedral City resident, Palm Springs business owner, suggested removing the condition requiring reverse channel letters under Item 5A. Robert Stone, Palm Springs, stated opposition to Items 513 and 5C. Tim Erkins, Palm Springs, stated opposition to Items 513 and 5C. Robert Brugeman, Palm Springs, urged the Council to overturn the signage plan in Item 5A and advocated for renewal of Items 5B and 5C. Judy Deertrack addressed the Council regarding Items 11 and 5C. Frank Tysen stated opposition to hotel subsidies and encouraging consistent signage. Marina Rossi, San Diego/Palm Springs, expressed concern regarding oversaturation of hotel rooms. Felipe Castaneda, Palm Springs, suggested historic preservation review of the 750 Lofts project. Joy Brown Meredith, Palm Springs, expressed appreciation for the stakeholder meeting and spoke in support of Items 3A and 3B. She commented on the sales tax increase under Item 3C. Jeff Kelsheimer, President Palm Springs Fire Fighters Association, indicated support for Item 3C. Jake Jesson indicated he was available to respond to questions regarding Item 5C. CITY COUNCIL, SUBCOMMITTEE, AND CITY MANAGER'S COMMENTS AND REPORTS: Councilmember Roberts provided reports on the Downtown Palm Springs Park and Downtown Construction Ad Hoc Subcommittee and Indian Canyon Improvements, Two- Way Plan, Ad Hoc Subcommittee meetings. Mayor Pro Tem Foat commented the plan to transform Indian Canyon into a two-way street. City Council MINUTES July 26,2017 Page 4 Councilmember Roberts commented on the following: • Support of the Virgin Hotel • Provided background information relating to the hotel incentive program Councilmember Kors spoke on the following: • Provided additional information relating to the hotel incentive program • Expressed support of the Virgin Hotel • Requested an economic study on the impact of all the new large hotels on existing hotels and TOT revenue to the City prior to consideration of extensions of the TOT incentive program for large hotels by the City Council • Announced the First Annual Native American Learning Day to be held on November 18, 2017 • Provided an update on the City Council's recent action designating 401 West Merito Place a historic site and the recent sale of the home Mayor Pro Tem Foat spoke of the misinformation stated under public comment, and announced her decision to not seek another term on the Council. Councilmember Mills indicated support for the Virgin Hotel, the hotel incentive program, and stated he would not be seeking re-election. Mayor Moon discussed the City's efforts for fiscal responsibility, and expressed his appreciation to Mayor Pro Tern Foat and Councilmember Mills. pp Y m I 1. CONSENT CALENDAR: ACTION: Approve Items 1A, 1 B, 1 C, 1 D, 1 E, 1 G, and 1 H. Motion by Councilmember Roberts, seconded by Mayor Pro Tem Foat, and unanimously (M-0) carried on a roll call vote, with Mayor Pro Tem Foat recusal from Item 1 E. I.A. TREASURER'S INVESTMENT REPORT AS OF MAY 31, 2017: ACTION: Receive and File the Treasurers Investment Report as of May 31, 2017. Approved as part of the Consent Calendar. I.B. REQUEST BY STACY'S @ PALM SPRINGS FOR A RESOLUTION OF PUBLIC CONVENIENCE OR NECESSITY (PCN)TO SELL BEER, WINE AND DISTILLED SPIRITS FOR ON-SITE CONSUMPTION (TYPE 48 — ON SALE GENERAL — PUBLIC PREMISES) AT A BARICOCKTAIL LOUNGE LOCATED AT 220 EAST ARENAS ROAD, ZONE RA, CASE 5.1415 PCN : ACTION: Adopt Resolution No. 24281, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, DETERMINING THAT PUBLIC CONVENIENCE WOULD BE SERVED BY THE SALE OF BEER, WINE, AND DISTILLED SPIRITS FOR ON- SITE CONSUMPTION WITH TYPE 48 ABC LICENSE AT STACY'S @ PALM SPRINGS BAR/COCKTAIL LOUNGE LOCATED AT 220 EAST ARENAS ROAD WITHIN CENSUS TRACT 9414.00." City Council MINUTES July 26,2017 Page 5 Approved as part of the Consent Calendar. 1.C. REJECT THE BID RECEIVED AND AUTHORIZE RE-BIDDING FOR THE PALM SPRINGS SWIM CENTER REPLASTER AND POOL REPAIR PROJECT, CP 16-06: ACTION: 1) Reject the bid received on July 13, 2017, from California Commercial Pools, Inc., for the Palm Springs Swim Center Replaster and Pool Repair Project, CP 16-06. 2) Authorize re-bidding for the Palm Springs Swim Center Replaster and Pool Repair Project, CP 16-06. Approved as part of the Consent Calendar. 1.13. SECOND READING AND ADOPTION OF ORDINANCE NO. 1930, AMENDING THE PALM SPRINGS ZONING CODE (PSZC) RELATING TO WALL HEIGHT FOR RESIDENTIAL SWIMMING POOL SAFETY ENCLOSURES: ACTION: Waive the second reading of the ordinance text in its entirety, read by title only, and adopt Ordinance No. 1930, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADOPTING AN AMENDMENT TO SECTION 93.02.00(B) OF THE PALM SPRINGS ZONING CODE (PSZC) RELATING TO WALL HEIGHT FOR RESIDENTIAL SWIMMING POOL SAFETY ENCLOSURES." Approved as part of the Consent Calendar. 1.E. SECOND READING AND ADOPTION OF ORDINANCE NO. 19319 APPROVING A DEVELOPMENT AGREEMENT WITH PS COUNTRY CLUB LLC, RELATED TO CONVERSION OF THE PALM SPRINGS COUNTRY CLUB GOLF COURSE INTO A RESIDENTIAL SUBDIVISION OF UP TO 386 RESIDENTIAL UNITS IDENTIFIED AS THE SERENA PARK PROJECT, LOCATED NORTH OF VERONA ROAD, EAST OF SUNRISE WAY, AND SOUTHWEST OF THE WHITEWATER RIVER WASH (CASE NOS. 5.1327, PDD-366, ZC, GPA, DA, MAJ AND TTM 36691): ACTION: Waive the second reading of the ordinance text in its entirety, read by title only, and adopt Ordinance No. 1931, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT WITH PS COUNTRY CLUB LLC, RELATED TO CONVERSION OF THE PALM SPRINGS COUNTRY CLUB GOLF COURSE INTO A RESIDENTIAL SUBDIVISION OF UP TO 386 RESIDENTIAL UNITS IDENTIFIED AS THE SERENA PARK PROJECT, LOCATED NORTH OF VERONA ROAD, EAST OF SUNRISE WAY AND SOUTHWEST OF THE WHITEWATER RIVER WASH (CASE NOS. 5.1327, PDD-366, ZC, GPA, DA, MAJ AND TTM 36691)." Approved as part of the Consent Calendar, noting the recusal of Mayor Pro Tern Foat due to a conflict of interest. 1.G. SECOND READING AND ADOPTION OF ORDINANCE NO. 1933 AMENDING THE PALM SPRINGS MUNICIPAL CODE REGARDING MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES AND City Council MINUTES July 26,2017 Page 6 ADDING ADULT-USE CANNABIS RELATED BUSINESSES AND ACTIVITIES: ACTION: Waive the second reading of the ordinance text in its entirety, read by title only, and adopt Ordinance No. 1933, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES AND ADDING CHAPTER 5.55 OF THE PALM SPRINGS MUNICIPAL CODE REGARDING ADULT-USE CANNABIS RELATED BUSINESSES AND ACTIVITIES." Approved as part of the Consent Calendar. 1.H. APPROVAL OF A PURCHASE AND SALE AGREEMENT WITH 7 IN OLIVERA, LLC, FOR A STRIP OF UNIMPROVED REAL PROPERTY ALONG THE WESTERN BOUNDARY OF TENTATIVE TRACT MAP 37041 GENERALLY LOCATED AT THE NORTH EAST CORNER OF VIA OLIVERA AND THE ZANERO ROAD ALIGNMENT: ACTION: 1) Approve a Purchase and Sale Agreement for the sale of a strip of unimproved real property along the western boundary of proposed Tentative Condominium Tract Map 37041, including right of first refusal. 2) Authorize the City Manager to solicit proposals and otherwise administer the provisions of the Purchase and Sale Agreement and execute all appropriate and related documents. A7007. Approved as part of the Consent Calendar, noting the abstention of Mayor Pro Tern Foat due to a conflict of interest. EXCLUDED CONSENT CALENDAR: 1.F. SECOND READING AND ADOPTION OF ORDINANCE NO. 1932 ADDING AND AMENDING THE PALM SPRINGS MUNICIPAL CODE REGARDING LOUD, UNUSUAL NOISES AND LANDSCAPE RELATED BUSINESSES, PROHIBITING GASOLINE POWERED LEAF BLOWERS AND ALTERNATIVELY ALSO PROHIBITING ELECTRICAL OR BATTERY POWERED LEAF BLOWERS IN THE CITY AS A PER SE NUISANCE COMMENCING ON JANUARY 1, 2019: Council discussion ensued. ACTION: Waive the second reading of the ordinance text in its entirety, read by title only, and adopt Ordinance No. 1932, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, ADDING SUBSECTION (k) TO SECTION 11.74.043 AND SECTION 5.78.050, AND AMENDING SECTION 5.78.010 OF THE PALM SPRINGS MUNICIPAL CODE, REGARDING LOUD, UNUSUAL NOISES AND LANDSCAPE RELATED BUSINESSES, PROHIBITING GASOLINE POWERED LEAF BLOWERS IN THE CITY AS A PER SE NUISANCE COMMENCING ON JANUARY 1, 2019, AND PROVIDING FOR REGULATION OF ELECTRICAL OR BATTERY POWERED LEAF BLOWERS." City Council MINUTES July 26,2017 Page 7 Motion by Mayor Pro Tem Foat, seconded by Councilmember Kors, and carried (3-2-0, Councilmember Mills and Mayor Moon dissenting). 1.1. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACKNOWLEDGING COMPLIANCE WITH WRIT OF MANDATE RE PLANNED DEVELOPMENT DISTRICT (PDD) 374, THE "750 LOFTS" PROJECT LOCATED AT 750 N. PALM CANYON DRIVE, AND ORDERING RECONSIDERATION BY THE ARCHITECTURAL ADVISORY COMMITTEE AND THE PLANNING COMMISSION, CASE 5.1350 PDD 374/GPA/CUP/3.3795 MAJ TO ADDRESS THREE (3) PROJECT ISSUES INCLUDING PARKING, BUILDING HEIGHT, AND SETBACK: Council discussion ensued. ACTION: Resolution No. , "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACKNOWLEDGING COMPLIANCE WITH WRIT OF MANDATE RE PLANNED DEVELOPMENT DISTRICT (PDD) 374, THE 750 LOFTS" PROJECT LOCATED AT 750 N. PALM CANYON DRIVE, AND ORDERING RECONSIDERATION BY THE ARCHITECTURAL ADVISORY COMMITTEE, THE PLANNING COMMISSION, AND HSPB OF CASE 5.1350 PDD 374/GPA/CUP/3.3795 MAJ TO ADDRESS THREE (3) PROJECT ISSUES INCLUDING PARKING, BUILDING HEIGHT, AND SETBACK" with an amendment for reconsideration including HSPB. Motion by Councilmember Kors, seconded by Mayor Moon, and motion failed (2-2-1, Councilmember Mills and Councilmember Roberts dissenting and Mayor Pro Tem Foat abstaining) on a roll call vote. ACTION: Adopt Resolution No. 24282, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACKNOWLEDGING COMPLIANCE WITH WRIT OF MANDATE RE PLANNED DEVELOPMENT DISTRICT (PDD) 374, THE 750 LOFTS" PROJECT LOCATED AT 750 N. PALM CANYON DRIVE, AND ORDERING RECONSIDERATION BY THE ARCHITECTURAL ADVISORY COMMITTEE AND THE PLANNING COMMISSION OF CASE 5.1350 PDD 374/GPA/CUP/3.3795 MAJ TO ADDRESS THREE (3) PROJECT ISSUES INCLUDING PARKING, BUILDING HEIGHT, AND SETBACK." Motion by Mayor Moon, seconded by Councilmember Roberts, and carried (4-1-0, Councilmember Mills dissenting) on a roll call vote. 2. PUBLIC HEARINGS: 2.A. A REQUEST FOR COUNCILMEMBER REVIEW PURSUANT TO PALM SPRINGS ZONING CODE SECTION 94.10.00 OF AN ACTION BY THE PLANNING COMMISSION TO APPROVE A REQUEST BY WOODBRIDGE PACIFIC GROUP, ON BEHALF OF RREF DC City Council MINUTES July 26,2017 Page S CAMERON, FOR AN AMENDMENT TO ALLOW MINOR CHANGES TO DESIGN, COLOR, MATERIALS, REDUCTION OF MASSING AND HEIGHTS IN CERTAIN UNITS OF THE PREVIOUSLY APPROVED FINAL PDD PLANS FOR THE CAMERON PROJECT LOCATED AT 850-990 SOUTH PALM CANYON DRIVE (CASE 5.1056-PDD 314): Assistant City Manager Fuller presented the staff report. Mayor Moon opened the public hearing. Todd Cunningham, applicant, spoke on the following: • Overview of the project approval, ownership, and development management • The focus groups and desire to modify the design, color, massing and heights • Gates would prevent commercial traffic in the residential areas Judy Deertrack stated the project was reserved for mixed-use district and was converted to town homes. Frank Tysen expressed concern with the 11-year old PDD and overbuilding of residential. No others came forth to address the City Council; therefore, Mayor Moon closed the public hearing. ACTION: Adopt Resolution No. 24283, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING MINOR AMENDMENTS TO THE FINAL DEVELOPMENT PLANS OF PLANNED DEVELOPMENT DISTRICT (PDD) 314, AS PROPOSED BY WOODBRIDGE PACIFIC, LLC, ON BEHALF OF RREF DC CAMERON, TO ALLOW MINOR CHANGES TO DESIGN, COLOR, MATERIALS, REDUCTION OF MASSING AND HEIGHTS IN CERTAIN UNITS OF THE PREVIOUSLY APPROVED FINAL PDD PLANS FOR THE CAMERON PROJECT LOCATED AT 850-990 SOUTH PALM CANYON DRIVE." Motion by Councilmember Roberts, seconded by Mayor Pro Tom Foat, and unanimously (5-0-0) carried on a roll call vote. 3. LEGISLATIVE: 3.A. AN INTERIM URGENCY ORDINANCE REGARDING "MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" PURSUANT TO CHAPTER 5.46 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE (4/5T"S Vote Required): City Attorney Kotkin presented the staff report. City Council MINUTES July 26,2017 Page 9 Council discussion ensued. ACTION: Waive the reading of the text in its entirety, read by title only, and adopt Ordinance No. 1935, "AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REGARDING 'MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES' PURSUANT TO CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE." (4/5THS Vote Required) Motion by Councilmember Roberts, seconded by Mayor Pro Tern Foat, and unanimously (5-0-0) carried on a roll call vote. Interim City Clerk Hart read the ordinance title. 3.13. A RESOLUTION ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE APPROVING AND IMPLEMENTING A GROSS RECEIPTS TAX ON CANNABIS BUSINESS ACTIVITY AND A CULTIVATION TAX ON COMMERCIAL CANNABIS CULTIVATORS AT THE NOVEMBER 7, 2017, GENERAL MUNICIPAL ELECTION: City Attorney Kotkin presented the staff report. Councilmember Kors read into the record the updated ballot question: Palm Springs Cannabis Business Taxation Shall Palm Springs update the existing gross receipts tax on medical cannabis collectives and cooperatives to apply to all medical and adult-use cannabis businesses, apart from cultivation businesses, which will be taxed at a rate up to 10 dollars per square foot, with all revenue used in Palm Springs to maintain -and improve essential city services, including public safety and youth drug prevention education; requiring annual independent audits and public oversight? Council discussion ensued. At 8:20 p.m. Mayor Moon recessed the meeting. At 8:44 p.m. Mayor Moon reconvened the meeting. All members of the City Council were present. City Attorney Kotkin reviewed proposed modifications to the resolution and ordinance as follows: Modified Resolution (third recital) Page 4. Whereas, the Ordinance imposes a gross receipts tax up to $0.15 per $1.00 of proceeds, on any Palm Springs cannabis business, and a cultivation tax of up to $10.00 per square foot of cannabis cultivation area or fractional part thereof on Palm Springs cannabis business (the "Tax") to be collected as set forth in the Ordinance; and City Council MINUTES July 26,2017 Page 10 Section 3.42.010 (Ordinance) The purpose of this ordinance is to impose a gross receipts tax not to exceed $0.15 per $1.00 of gross receipts, on any cannabis business conducted in the City of Palm Springs, as "cannabis business" is defined in section 3.42.020 of this code, with the exception of cannabis cultivation businesses, which are subject to the tax defined in Section 3.42.040, whether or not such cannabis business has a permit under chapter 5.35, 5.45 or 5.55 of this code. Section 3.42.030 (A) (Ordinance) There is hereby ... of gross receipts. The sole exception to this tax upon gross receipts shall be cannabis cultivation businesses, which are subject to the tax defined in Section 3.42.040. The tax imposed ... Section 3.42.125 (E) (Ordinance) In addition to the penalty imposed for a failure to timely pay any tax or fee imposed by this chapter imposed pursuant to Section 3.42.110, the City Attorney shall have the discretion to issue an administrative citation with respect to said failure, and impose an administrative fine in the amount of $5,000 for each month that any payment of tax is overdue. Each cannabis business subject to any such administrative citation and fine shall have the opportunity to appeal same ursuant'to Chapter 2.50 of this Code. rr tY �� N N 3.42.125 (F) (Ordinance) In the event that any appeal as to an administrative citation and fine pursuant to this Section 3.42.125, or any other action in relation thereto takes place, the City shall be entitled to recover its attorneys' fees and administrative costs incurred unless the appeal in question is granted, or the cannabis business initiating any other action is the prevailing party. Council discussion ensued. ACTION: 1) Waive the reading of text in its entirety, read by title only, and introduce for first reading "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A TAX ON CANNABIS BUSINESS ACTIVITY" amended as follows: • Section 3.42.010 The purpose of this ordinance is to impose a gross receipts tax not to exceed $0.15 per $1.00 of gross receipts, on any cannabis business conducted in the City of Palm Springs, as "cannabis business" is defined in section 3.42.020 of this code, with the exception of cannabis cultivation businesses, which are subject to the tax defined in Section 3.42.040, whether or not such cannabis business has a permit under chapter 5.35, 5.45 or 5.55 of this code. City Council MINUTES July 26,2017 Page 11 • Section 3.42.030 (A) There is hereby ... of gross receipts. The sole exception to this tax upon gross receipts shall be cannabis cultivation businesses, which are subject to the tax defined in Section 3.42.040. The tax imposed ... • Section 3.42.125 (E) In addition to the penalty imposed for a failure to timely pay any tax or fee imposed by this chapter imposed pursuant to Section 3.42.110, the City Attorney shall have the discretion to issue an administrative citation with respect to said failure, and impose an administrative fine in the amount of $5,000 for each month that any payment of tax is overdue. Each cannabis business subject to any such administrative citation and fine shall have the opportunity to appeal same pursuant to Chapter 2.50 of this Code. • 3.42.125 (F) In the event that any appeal as to an administrative citation and fine pursuant to this Section 3.42.125, or any other action in relation thereto takes place, the City shall be entitled to recover its attorneys' fees and administrative costs incurred unless the appeal in question is granted, or the cannabis business initiating any other action is the prevailing party. 2) Adopt Resolution No. 24284, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF THE CITY A MEASURE APPROVING AND IMPLEMENTING A GROSS RECEIPTS TAX ON CANNABIS BUSINESS ACTIVITY AND A CULTIVATION TAX ON COMMERCIAL CANNABIS CULTIVATORS AT THE NOVEMBER 7, 2017 GENERAL MUNICIPAL ELECTION" amended as follows: 1. Ballot Question Palm Springs Cannabis Business Taxation Shall Palm Springs update the existing gross receipts tax on medical cannabis collectives and cooperatives to apply to all medical and adult-use cannabis businesses, apart from cultivation businesses, which will be taxed at a rate up to 10 dollars per square foot, with all revenue used in Palm Springs to maintain and improve essential city services, including public safety and youth drug prevention education, requiring annual independent audits and public oversight? and 2. Modified (third recital) Page 4 of the Resolution Whereas, the Ordinance imposes a gross receipts tax up to $0.15 per $1.00 of proceeds, on any Palm Springs cannabis business, and a cultivation tax of up to $10.00 per square foot of cannabis cultivation area or fractional part thereof on Palm Springs cannabis business (the "Tax") to be collected as set forth in the Ordinance; and City Council MINUTES July 26,2017 Page 12 3) Adopt Resolution No. 24285, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2017-18". Motion by Mayor Pro Tern Foat, seconded by Councilmember Kors, and unanimously (5-0-0) carried on a roll call vote. Interim City Clerk Hart read the ordinance title. 3.C. INTRODUCTION OF AN ORDINANCE IMPOSING A GENERAL TRANSACTIONS AND USE TAX, AND ADOPTION OF A RESOLUTION SUBMITTING A GENERAL TAX MEASURE TO THE ELECTORATE AT THE NOVEMBER 7, 2017 GENERAL MUNICIPAL ELECTION, WITH THE ALTERNATIVE OF INTRODUCTION OF AN ORDINANCE IMPOSING A SPECIAL TRANSACTIONS AND USE TAX, AND ADOPTION OF A RESOLUTION SUBMITTING A SPECIAL TAX MEASURE TO THE ELECTORATE AT THE NOVEMBER 7, 2017, GENERAL MUNICIPAL ELECTION: City Attorney Kotkin presented the staff report. Mayor Pro Tern read into the record the updated ballot question: Palm Springs Essential Services / Public Safety Measure To maintain essential city services, including rapid 911 emergency response, fire/police protection, add paramedic services, keep fire stations open/staffed, address homelessness, repair local streets/potholes, improve rapid response to assault, burglaries/crimes, keep public areas safe/clean, maintain senior services, attract/retain jobs/business, increase water conservation; shall the City of 7 Palm Springs establish a /2 cent sales tax; requiring annual independent audits/public oversight; all funds used locally? Council discussion ensued. ACTION: 1) Waive the reading of text in its entirety, read by title only, and introduce for first reading "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, IMPOSING A GENERAL TRANSACTIONS AND USE TAX" 2) Adopt Resolution No. 24286, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, SUBMITTING A GENERAL TAX MEASURE TO THE ELECTORATE AT THE NOVEMBER 7, 2017 GENERAL MUNICIPAL ELECTION." amending the ballot question as follows: Palm Springs Essential Services/Public Safety Measure To maintain essential city services, including rapid 911 emergency response, fire/police protection, add paramedic services, keep fire stations open/staffed, address homelessness, repair local streets/potholes, improve rapid response to assault, burglaries/crimes, keep public areas safe%lean, maintain senior City Council MINUTES July 26,2017 Page 13 services, attract/retain jobs/business, increase water conservation, shall the City of Palm Springs establish a % cent sales tax, requiring annual independent audits/public oversight, all funds used locally? 3) Adopt Resolution No. 24287, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR FISCAL YEAR 2017-18." Motion by Councilmember Kors, seconded by Mayor Pro Tern Foat, and unanimously (5-0-0) carried on a roll call vote. Interim City Clerk Hart read the ordinance title. 4. UNFINISHED BUSINESS: 4.A. UPDATE FROM THE CITY COUNCIL BUDGET AND FINANCE STANDING SUBCOMMITTEE: (Councilmember Kors and Mayor Moon) The following were discussed: ■ Develop methods to put money aside for pension fund needs ■ The need to provide direction on the Palm Springs Pride and Well in the Desert grant requests ■ Suggested the process of recruiting police officers pending the result of the election ■ The potential of the Palm Springs Unified School District using the City's facilities to run youth programs By consensus of the City Council, City Manager Ready was directed to provide letters of support to Palm Springs Pride and Well in the Desert as follows: ■ Palm Springs Pride, up to $90,000 for in-kind services during the three- day event ■ Well in the Desert, $9,000 for the months of July, August, and September 2017 3. LEGISLATIVE: (Continued) 3.D. ESTABLISHING PROCEDURES FOR FILING WRITTEN ARGUMENTS REGARDING TWO (2) CITY MEASURES AT THE NOVEMBER 7, 2017, GENERAL MUNICIPAL ELECTION, A GENERAL TRANSACTIONS AND USE TAX, AND A CANNABIS BUSINESS ACTIVITY AND CULTIVATION TAX, AND DIRECTING THE CITY ATTORNEY TO PREPARE IMPARTIAL ANALYSES FOR BOTH MEASURES: ACTION: Adopt Resolution No. 24288, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ESTABLISHING PROCEDURES FOR FILING WRITTEN ARGUMENTS REGARDING TWO (2) CITY MEASURES AT THE NOVEMBER 7, 2017, GENERAL MUNICIPAL ELECTION, A GENERAL TRANSACTIONS AND USE TAX, AND A CANNABIS BUSINESS ACTIVITY AND CULTIVATION TAX, AND DIRECTING THE CITY ATTORNEY TO PREPARE IMPARTIAL ANALYSES FOR BOTH MEASURES." City Council MINUTES July 26,2017 Page 14 Motion by Councilmember Kors, seconded by Mayor Pro Tem Foat, and unanimously (5-0-0) carried on a roll call vote. S. NEW BUSINESS: S.A. A REQUEST FOR COUNCILMEMBER REVIEW PURSUANT TO PALM SPRINGS ZONING CODE SECTION 94.10.00 OF ACTION BY THE PLANNING COMMISSION TO APPROVE SIGN PROGRAMS FOR THE MULTI-TENANT BUILDINGS LOCATED ON BLOCK B AND BLOCK C WITHIN THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN AT 111 AND 176 NORTH PALM CANYON DRIVE (SIGN PROGRAM CASE NOS. 17-002 AND 17-003): Assistant City Manager Fuller and Associate Planner Newell presented the staff report. Council discussion ensued. ACTION: 1) Adopt Resolution No. 24289, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AND ESTABLISHING A SIGN PROGRAM FOR THE TWO-STORY MULTI-TENANT BUILDING LOCATED ON BLOCK B OF THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN AT 175 NORTH PALM CANYON DRIVE" with the following added to the Conditions of Approval: PLN 1. Conditions Imposed by City Council. Prior to issuance of any sign permits, the applicant shall incorporate the following conditions and resubmit three copies of the revised sign program to the Planning Department: 1. Tenant signage as shown in the elevations. 2. Future tenants shall be required to return to the AAC and Planning Commission for review. This requirement may be waived and signage may be approved by staff, if the sign is restricted to no more than 16" in letter height and meets other criteria of the Downtown Sign Ordinance, Section 93.20.09(A)(2)(b)(ii). 3. Blade Sign design to return to staff for final review: a. Size to be six square feet with no restriction on maximum dimensions b. Bottom of sign to be uniform above the sidewalk — specific height dimension to be approved by the Director of Planning Services. 4. There shall be no duplication of primary identification signs above awnings on the east and west elevations. The south and north elevations may have duplicate signs, if the tenant occupies both spaces that are framed with the architectural pop-outs. 5. Signs may extend the width of the architectural pop- out as depicted in the elevations. City Council MINUTES July 26,2017 Page 15 6. Cabinet signs are prohibited. 3) Adopt Resolution No. 24290, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AND ESTABLISHING A SIGN PROGRAM FOR THE ONE (1) AND TWO-STORY MULTI-TENANT BUILDING LOCATED ON BLOCK C OF THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN AT 111 NORTH PALM CANYON DRIVE" with the following added to the Conditions of Approval: PLN 1. Conditions Imposed by City Council. Prior to issuance of any sign permits, the applicant shall incorporate the following conditions and resubmit three copies of the revised sign program to the Planning Department: 1. East elevation - Sign #6 ("H&M" blade sign) shall be same size as approved blade sign size — six square feet per side. 2. ("Tommy Bahama" wall signs approved as presented; no change necessary per condition no. 11 below). 3. No duplicate (Primary Main) signs allowed for tenants on the same frontage. 4. West elevation - there shall be no duplicate signs on the brick fagade portion of the building (signs #18 and #19 in Master Sign Plan). 5. "H&M" wall signs - sign #23 shall match sign #4 in size. 6. Sign mounting details shall match architecture. 7. Square footage to be consistent with sizes shown except secondary (blade) signs. 8. Blade Sign design to return to staff for final review: a. Size to be six square feet with no restriction on maximum dimensions b. Bottom of sign to be uniform above the sidewalk — specific height dimension to be approved by the Director of Planning Services c. Sign mounting details to match architecture 9. Cabinet signs are prohibited. 10.Signs may be front-lit, back-lit or any other method of lighting deemed appropriate by staff in the Planning Department. 11."Tommy Bahama" permitted three signs as presented in the Sign Plan. 12."Starbucks" channel letter signs shall be mounted below or on top of the awning, but not on the overhang fascia. Motion by Councilmember Mills, seconded by Mayor Pro Tern Foat, and unanimously (5-0-0) carried on a roll call vote with amendments. S.B. EXTENSION OF THE HOTEL OPERATIONS INCENTIVE PROGRAM DEADLINE FOR COMMENCEMENT OF CONSTRUCTION OF THE VIRGIN HOTEL, LOCATED ON BLOCK B-1 OF THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN, AT THE SOUTHEAST CORNER OF BELARDO ROAD AND THE EXTENSION OF E. ANDREAS ROAD WESTWARD, UNTIL DECEMBER 31, 2019: City Council MINUTES July 26,2017 Page 16 ACTION: Approve an extension of the Hotel Operations Incentive Program deadline for commencement of construction for the Virgin Hotel, located on Block B-1 of the Downtown Palm Springs Specific Plan, at the southeast corner of Belardo Road and the extension of E. Andreas Road westward, until December 31, 2019. Withdrawn from agenda, no action taken. 5.C. EXTENSION OF THE HOTEL INCENTIVE PROGRAM DEADLINE FOR COMMENCEMENT OF CONSTRUCTION FOR A NEW HOTEL AT THE NORTHWEST CORNER OF BARISTO ROAD AND BELARDO ROAD, 284 S. CAHUILLA ROAD (DEVELOPER NEW CHURCH II, LLC) UNTIL MAY 31, 2019: City Manager Ready presented the staff report. Council discussion ensued. ACTION: 1) Consistent with and pursuant to the City's Charter power, approve an extension of the Program deadline prior to which the project of this developer must be "under construction" as that term is defined by the Program, on or before May 31, 2019, with the understanding that this project, once operational, will be entitled to the highest level of operating assistance available under the Program, to wit, seventy-five percent (75%) of the adjusted transient occupancy tax rate, as provided by the Program, payable for 30 years, or until the operator has been paid $50,000,000, whichever event occurs first. 2) Direct staff to negotiate with the developer, and return to the Council as soon as practicable with an Operating Covenant for this project whereby a hotel that is part of the Auberge Resorts Collection will be constructed at the former Orchid Tree Hotel and church site owned by the developer. This covenant would be considered at a public hearing and recorded against the property if approved by the Council pursuant to the City's general and Charter authority, and consistent with relevant provisions of the Program. 3) The Restoration of the Church will occur in the first phase. 4) Work with the Police Department on stabilization of the property. 5) The project will be exclusively an Auberge Hotel. Motion by Councilmember Roberts, seconded by Mayor Pro Tom Foat, and carried (4-1-0. Councilmember Mills dissenting). 5.D. AUTHORIZE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS: City Manager Ready presented the staff report. Council discussion ensued. ACTION: Adopt Resolution No. 24291, "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE City Council MINUTES July 26,2017 Page 18 PUBLIC COMMENT: (Non-Agenda Items) Henry Hampton, Palm Springs, thanked the Council for its dedication to the City and inspiring him to run for City Council. CITY COUNCIL AND CITY MANAGER REQUESTS AND UPCOMING AGENDA DEVELOPMENT Councilmember Kors requested creation of a Public Safety Ad Hoc Subcommittee to continue discussing ways to work better with departments. Mayor Moon appointed Mayor Pro Tern Foat and .Councilmember Kors with a sunset date of December 31, 2017. Mayor Moon requested staff address the hole in the dome above Oscars. Assistant City Manager Fuller stated he would remind the property owner. ADJOURNMENT: At 10:34 p.m. the City Council adjourned to the next regular meeting Wednesday, September 6, 2017, at 6:00 p.m. Council Chamber, City Hall, preceded by Closed Session, Small Conference Room, City Hall, 3200 East Tahquitz Canyon Way, Palm Springs. Respectfully submitted, Kathleen D. Hart, MMC Interim City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, California, hereby certify that the July 26, 2017, MINUTES were approved by the City Council of the City of Palm Springs at a regular meeting held on February 7, 2018, by the following vote: AYES: Councilmember Kors, Mayor Pro Tern Roberts, and Mayor Moon NOES: None ABSENT: None ABSTAIN: Councilmembers Holstege, and Middleton IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Palm Springs, California, this 1 Zf' day of w HONY , City Clerk City Council MINUTES July 26,2017 Page 17 PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE ISSUANCE OF 2017 TAX ALLOCATION REFUNDING BONDS TO REFUND CERTAIN OUTSTANDING OBLIGATIONS OF THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, APPROVING THE EXECUTION AND DELIVERY OF A FIRST SUPPLEMENT TO INDENTURE OF TRUST, A SECOND SUPPLEMENT TO INDENTURE OF TRUST, ESCROW AGREEMENTS, BOND PURCHASE AGREEMENT AND PRELIMINARY AND FINAL OFFICIAL STATEMENTS AND PROVIDING OTHER MATTERS RELATING TO THE ISSUANCE OF THE REFUNDING BONDS." Motion by Councilmember Kors, seconded by Councilmember Roberts, and unanimously (5-0-0) carried on a roll call vote. 5.E. APPROVAL OF A WIRELESS MARKETING AGREEMENT WITH 5 BARS COMMUNITIES DBA XG COMMUNITIES, LLC: Assistant City Manager Fuller presented the staff report. Council discussion ensued. ACTION: 1) In accordance with Section 7.04.020 of the Palm Springs Municipal Code, "Sole source procurement by the city," waive all competitive requirements of Title 7 finding that 5 Bars Communities dba XG Communities, LLC, has demonstrated experience and expertise in providing the required wireless marketing services through two (2) competitive qualifications based selection processes completed by the City of Sacramento in June 2016 through its Request for Qualifications (RFQ) (Q16071011005), and by the City of Fresno in May 2017 through its Request for Qualifications (RFQ) (Bid File 3503). 2) Approve a Wireless Marketing and License Agreement with 5 Bars Communities dba XG Communities, LLC, for an initial term of five (5) years, subject to three (3) additional five (5) year optional terms. A7008. 3) Authorize the City Manager to execute all necessary documents. Motion by Councilmember Kors, seconded by Mayor Pro Tem Foat, and unanimously (5-0-0) carried on a roll call vote. 5.F. APPOINT TWO MEMBERS OF THE CITY COUNCIL TO AN AD HOC SUBCOMMITTEE TO ASSIST WITH THE RECRUITMENT OF THE CITY CLERK: City Manager Ready presented the staff report. Council discussion ensued. ACTION: By consensus, the Council appointed Councilmember Kors and Mayor Moon to the City Clerk Recruitment Ad Hoc Subcommittee with a sunset date of December 31, 2017. T h