HomeMy WebLinkAbout2/7/2018 - STAFF REPORTS - 1.F. CITY COUNCIL
CITY OF PALM SPRINGS, CALIFORNIA DRAFT
a
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.
ITEM NO. L
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 313 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.
02
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 513 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 Tern Foat commented the plan to transform Indian Canyon into a two-way
street.
03
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 Tern 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.
1. CONSENT CALENDAR:
ACTION: Approve Items 1 A, 1 B, 1 C, 1 D, 1 E, 1 G, and 1 H.
Motion by Councilmember Roberts, seconded by Mayor Pro Tern Foat, and
unanimously (5-0-0) 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 Treasurer's Investment Report as of
May 31, 2017.
Approved as part of the Consent Calendar.
1.13. 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 BAR/COCKTAIL
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." C4
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.
I.D. SECOND READING AND ADOPTION OF ORDINANCE NO. 19301
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. 1931,
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. 6.1327, 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.
I.G. SECOND READING AND ADOPTION OF ORDINANCE NO. 1933
AMENDING THE PALM SPRINGS MUNICIPAL CODE REGARDING 5
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.
I.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 Tem Foat due to a conflict of interest.
EXCLUDED CONSENT CALENDAR:
I.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 p 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." 06
City Council MINUTES July 26,2017 Page 7
Motion by Mayor Pro Tom 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 Tom 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 7
City Council MINUTES July 26,2017 Page 8
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 Tern
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 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE
UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND
COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE
CODE (4/5T"S Vote Required):
City Attorney Kotkin presented the staff report. 08
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.B. 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 09
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 pursuant to Chapter 2.50 of this Code.
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 1
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
Palm Springs establish a Y 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, 12
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 Tem 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, 20171
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 13
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.
5. NEW BUSINESS:
5.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 175 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- 14
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.
5.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 15
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.
S.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 $50,000,000, whichever event occurs first.
2) Direct staff to negotiate with the developer, and return to the
Council as soon as practicable with an Operating Covenant for this
project whereby a hotel that is part of the Auberge Resorts
Collection will be constructed at the former Orchid Tree Hotel and
church site owned by the developer. This covenant would be
considered at a public hearing and recorded against the property if
approved by the Council pursuant to the City's general and Charter
authority, and consistent with relevant provisions of the Program.
3) The Restoration of the Church will occur in the first phase.
4) Work with the Police Department on stabilization of the property.
5) The project will be exclusively an Auberge Hotel.
Motion by Councilmember Roberts, seconded by Mayor Pro Tern
Foat, and carried (4-1-0. Councilmember Mills dissenting).
S.D. AUTHORIZE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS:
City Manager Ready presented the staff report.
Council discussion ensued.
ACTION: Adopt Resolution No. 24291, "A RESOLUTION OF THE CITY
COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, ACTING 16
SOLELY IN ITS CAPACITY AS THE SUCCESSOR AGENCY TO THE
City Council MINUTES July 26,2017 Page 17
PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY
APPROVING THE ISSUANCE OF 2017 TAX ALLOCATION REFUNDING
BONDS TO REFUND CERTAIN OUTSTANDING OBLIGATIONS OF THE
FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF
PALM SPRINGS, APPROVING THE EXECUTION AND DELIVERY OF A
FIRST SUPPLEMENT TO INDENTURE OF TRUST, A SECOND
SUPPLEMENT TO INDENTURE OF TRUST, ESCROW AGREEMENTS,
BOND PURCHASE AGREEMENT AND PRELIMINARY AND FINAL
OFFICIAL STATEMENTS AND PROVIDING OTHER MATTERS
RELATING TO THE ISSUANCE OF THE REFUNDING BONDS.$,
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 17
sunset date of December 31, 2017.
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, KATHLEEN D. HART, Interim 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:
NOES:
ABSENT:
ABSTAIN:
RECUSAL:
Kathleen D. Hart, MMC
Interim City Clerk to
EXHIBIT A
CITY COUNCIL
AND AS SUCCESSOR AGENCY TO THE
COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF THE PALM SPRINGS
o fPLM fqf
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CLOSED SESSION AGENDA
Wednesday, July 26, 2017 —4:00 p.m.
PALM SPRINGS CONVENTION CENTER
277 N. Avenida Caballeros, Primrose B
Palm Springs, CA 92262
CONFERENCE WITH LEGAL COUNSEL. The City Council finds, based on advice from the
City Attorney, that discussion in open session of the following described matter(s) will prejudice
the position of the City in existing and anticipated litigation.
EXISTING LITIGATION G.C. 54956.9(d)(1)
Daniel Teutle et al. v. City of Palm Springs et. al.
Case No. INC 1103235 Riverside Superior Court, Indio Division
INITIATION OF LITIGATION G.C. 54956.9(d)(4)
2 Cases
EXPOSURE TO LITIGATION G.C. 54956.9(d)(2)
2 Cases
CONFERENCE WITH REAL PROPERTY NEGOTIATOR G.C. 54956.8
Property Address/Description: 4449 N. Indian Canyon Dr., APN 669-330-047
Agency: City of Palm Springs
City Negotiator: David H. Ready, City Manager or Designee
Negotiating Parties: Desert Community College District
Under Negotiation: Price and Terms of Payment (Acquisition)
PUBLIC EMPLOYEE EVALUATION G.C. 54957
Position: City Manager
19
CITY COUNCIL
CITY OF PALM SPRINGS, CALIFORNIA
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MINUTES
WEDNESDAY, NOVEMBER 29, 2017
Palm Spring Convention Center
277 North Avenida Caballeros, Primrose B
Palm Springs, CA 92262
8:00 P.M. ADJOURNED REGULAR MEETING
CALL TO ORDER: Mayor Moon called the meeting to order at 8:01 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, Special Counsel Gary Schons, and Interim City Clerk Hart
PRESENTATIONS:
City Attorney Kotkin corrected the Closed Session report from November 15, 2017 as
follows:
1. On November 15, 2017, he reported no time spent in closed session on an
item noticed on the closed session agenda, "Initiation of Litigation, two (2)
cases."
2. During closed session on November 15, 2017, the initiation of litigation as to
one (1) case was discussed. The city attorney reported that for the record,
the initiation of litigation item discussed related to an exposure to litigation
matter. He further explained that he accidentally failed to make two (2)
separate check marks in his handwritten closed session notes regarding
these items. He indicated that he made this error, that he is correcting it
tonight, and that this error relates to the discussion of Agenda Item 4A on the
November 29, 2017 agenda.
The city attorney went on to discuss two (2) Brown Act and City ethics policy complaints
received regarding the Virgin Hotel project, and indicated that per a decision by City
Manager Ready and himself, special counsel has been brought in to assist with the
matter. Special Counsel Gary Schons addr6ssed both allegations of violation of the
Brown Act and the City's ethics policies in their respective particulars.
City Attorney Kotkin acknowledged passion surrounding the project and discussed the
importance of public integrity and transparency.He stated there were no Brown Act or 20
City Council MINUTES November 29,2017 Page 2
Adjourned Regular Meeting
ethics policy violations. He expressed that he did not want to give legal advice to the
City Council in open session, but that a verbatim transcript was available reflecting
some of his comments on November 15 responding to an inquiry by Councilmember
Kors.
Councilmember Roberts asked if the attorneys were completely confident that there was
no violation of the Brown Act and no violation of the City's ethics policies. Special
Counsel Schons and City Attorney Kotkin answered in the affirmative.
ACCEPTANCE OF THE AGENDA:
ACTION: Approve the agenda as presented.
Motion by Councilmember Roberts, seconded by Councilmember Mills, and
carried 3-2-0 (Councilmember Kors and Councilmember Roberts dissenting).
PUBLIC TESTIMONY:
Charles LeMorte addressed the Council regarding Item 4A and questioned the 1090
protections and surrender of rights.
Frank Tysen expressed frustration regarding hotel approvals and TOT incentives. He
suggested the Council postpone the issue.
Lew Stewart indicated opposition to welfare for developers and requested the Virgin
Hotel ordinance be reconsidered for first reading.
Patrick Weiss suggested second reading for Ordinance No. 1940 be deferred until the
new Council was seated.
Michael Kassinger suggested retaining the momentum on World Wide recognition and
urged the Council to approve the Virgin Hotel. He thanked Mayor Pro Tern Foat and
Councilmember Mills for their service.
Emily Hemphill stated John Wessman had relinquished all rights to the Virgin Hotel and
the 1090 rights were illusive. She requested the Council determine the best interest for
Palm Springs and urged the City Council to approve the Development Agreement.
Michael Braun, President of Grit Development, encouraged approval of the Virgin Hotel
project.
Doug Huth questioned the financial viability of the Virgin Hotel without the TOT
incentives. He questioned why the existing City Council was pushing to tie the hands of
the incoming City Council.
Roger Tansey stated he was pleased with the promise of 200 jobs and encouraged
preference be given to Palm Springs residents. He suggested negotiating something for
the citizens. He stated the process seemed morally repugnant.
'� II
City Council MINUTES November 29,2017 Page 3
Adjourned Regular Meeting
David Freedman stated they had substantial concerns on the lack of transparency and
the development agreement should not have been discussed in closed session. He
suggested the Council reconsider first reading.
Lisa Middleton commended Mayor Pro Tern Foat and Councilmember Mills for their
service. She suggested the new City Council have the opportunity to make the decision.
She stated she supported the Virgin Hotel but it should not be approved by the "lame
duck" Council. She stated the City should not give up its 1090 rights.
Jim Wanless commended the City on the public/private partnership and Museum
Specific Plan. He encouraged the Council to approve the Virgin Hotel Development
Agreement.
Barbara Beaty thanked Mayor Pro Tern Foat and Councilmember Mills for their service.
She expressed confusion about Wessman not benefitting since he was a member of the
LLC. She stated she did not understand why the TOT rebate was being given to the
developer.
Christy Holstege indicated support for the Virgin Hotel and project. She thanked Mayor
Pro Tern Foat and Councilmember Mills for their service. She discussed the need to
work to rebuild public trust and requested the new City Council have the opportunity to
vote on the project.
Lanny Swerdlow addressed the Council in support of onsite consumption of cannabis.
Rick Pentele discussed the importance of cannabis lounges. He suggested marijuana
be recognized like beer.
Joy Brown Meredith, Board of Main Street, requested the Council consider postponing
Item 4C to allow discussion between merchants, residents and the Council. She
questioned the rushed decision. She thanked Mayor Pro Tern Foat and Councilmember
Mills.
Steve Rosenberg stated he had submitted information on separation distances and
suggested proceeding with the cannabis ordinance. He thanked Mayor Pro Tern Foat
and Councilmember Mills for their service.
CITY COUNCIL, SUBCOMMITTEE, AND CITY MANAGER'S COMMENTS AND
REPORTS:
1. CONSENT CALENDAR: None
2. PUBLIC HEARINGS: None
3. LEGISLATIVE: None
22
City Council MINUTES November 29,2017 Page 4
Adjourned Regular Meeting
4. UNFINISHED BUSINESS: None
A. SECOND READING AND ADOPTION OF ORDINANCE NO. 1940
APPROVING A DEVELOPMENT AGREEMENT WITH DTPS B-3, LLC
RELATED TO CONSTRUCTION OF THE VIRGIN HOTEL LOCATED ON
BLOCK B-1 OF THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN
AT THE NORTHEAST CORNER OF BELARDO ROAD AND MUSEUM
WAY, CASE NO. 5.1204 SP AMEND, CASE NO. 3.3908 MAJ, AND
CASE NO 5.1427 DA:
City Attorney Kotkin presented the staff report.
Council discussion ensued.
During Council discussion Special Counsel Schons' statements included
the following:
• If the agreement is approved by the Council and
• If there is a financial interest by any member of the Council, and
• In this instance, if the former Mayor did receive a bribe from any
source to approve that agreement there would be a 1090 violation
and that contract would be void
• Concurs with City Attorney's statements as noted in the November
29, 2017, verbatim Minutes with respect to the City waiving its 1090
claim if the ordinance approving the development agreement was
enacted (attached as Exhibit A)
• The enactment of the ordinance approving the development
agreement will waive the City's 1090 claim
ACTION:
Waive the second reading of the ordinance text in its entirety and adopt
Ordinance No. 1940, "AN ORDINANCE OF THE CITY OF PALM
SPRINGS, CALIFORNIA, APPROVING A DEVELOPMENT AGREEMENT
WITH DTPS B-3, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY,
RELATED TO CONSTRUCTION OF THE VIRGIN HOTEL LOCATED ON
BLOCK B-1 OF THE DOWNTOWN PALM SPRINGS SPECIFIC PLAN AT
THE NORTHEAST CORNER OF BELARDO ROAD AND MUSEUM WAY,
CASE NO. 5.1204 SP AMEND, CASE NO. 3.3908 MAJ, AND CASE NO.
5.1427 DA" with amendments to the development agreement as noted in
the staff report.
Motion by Mayor Moon, seconded by Mayor Pro Tom Foat, and
approved on a majority (3-2-0, Councilmember Kors and
Councilmember Roberts dissenting) roll call vote.
Interim City Clerk Hart read the ordinance title.
B. SECOND READING AND ADOPTION OF ORDINANCE NO. 1941
AMENDING AND RESTATING THE CITY'S SIGN ORDINANCE AND
REPEALING THE CITY'S "SIT AND LIE" ORDINANCE:
City Attorney Kotkin presented the staff report. 23
City Council MINUTES November 29,2017 Page 5
Adjourned Regular Meeting
Council discussion ensued.
At 11:02 p.m. Mayor Moon recessed the meeting.
At 11:17 p.m. Mayor Moon reconvened the meeting with all members of the Council
present.
City Council discussion ensued.
ACTION:
Continue Items 4.13. and 4.C. to December 6, 2017,.at 4:00 p.m. with closed session at
3:30 p.m.
Motion by Councilmember Roberts, seconded by Councilmember Kors, and
carried unanimously (5-0-0) on vote.
B. SECOND READING AND ADOPTION OF ORDINANCE NO. 1941
AMENDING AND RESTATING THE CITY'S SIGN ORDINANCE AND
REPEALING THE CITY'S "SIT AND LIE" ORDINANCE:
ACTION: Continued to December 6, 2017, 4:00 p.m. No action taken.
C. SECOND READING AND ADOPTION OF ORDINANCE NO. 1943
AMENDING THE PALM SPRINGS ZONING CODE (PSZC) RELATIVE
TO ZONING REQUIREMENTS AND DEVELOPMENT STANDARDS
FOR COMMERCIAL MEDICAL AND ADULT-USE CANNABIS
FACILITIES:
ACTION: Continued to December 6, 2017, 4:00 p.m. No action taken.
4. NEW BUSINESS: None
PUBLIC COMMENT: None.
CITY COUNCIL AND CITY MANAGER REQUESTS AND UPCOMING AGENDA
DEVELOPMENT:
Councilmember Kors requested the following:
• Temporary subcommittee and liaison assignments be made on
December 6, 2017, to ensure representation between December 7, 2017, and
December 13, 2017, and the Council Rules and Procedures Ad Hoc
Subcommittee review the subcommittee and liaison assignments list and provide
recommendations
• An economic impact analysis on the potential vacation rental ballot measure
The following were discussed:
• Vacant and abandoned buildings would be considered at the first meeting in
January 2018.
• City Grants and Sponsorships to non-profits will be considered on
December 13, 2017.
• The animal ordinances could be considered at the first meeting in January.
24
City Council MINUTES November 29,2017 Page 6
Adjourned Regular Meeting
Councilmember Roberts requested Municipal Code Chapter 8.05 regarding HSPB
review of demolition permits be reviewed to not allow demolition until there was a
proposed replacement. Director of Planning Services Fagg stated HSPB had submitted
a letter to Council making that request. City Manager Ready requested a
recommendation from HSPB.
ADJOURNMENT:
At 11:29 p.m., the City Council adjourned in memory of Randy Lowe, to the next regular
meeting Wednesday, December 6, 2017, at 4:00 p.m. Council Chamber, City Hall,
preceded by Closed Session, Small Conference Room, City Hall, 3200 East Tahquitz
Canyon Way, Palm Springs.
Respectfully submitted,
Weh
Kathleen D. Hart, MMC
Interim City Clerk
CERTIFICATION
STATE OFCALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, California, hereby certify
that the November 29, 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:
NOES:
ABSENT:
ABSTAIN:
RECUSAL:
Kathleen D. Hart, MMC
Interim City Clerk
25
EXHIBIT A
-kO�VN msb'Pi CITY OF PALM SPRINGS
MEMORANDUM
V N
OFFICE OF THE CITY CLERK
C`141FOR�`P
TO: Edward Z. Kotkin
City Attorney
cc: David H. Ready, Esq., Ph.D.
City Manager
FROM: r A1, Cathleen D. Hart, MMC
1Wr` Interim City Clerk
DATE: November 28, 2017
SUBJECT: 11-15-2017, City Council Meeting Transcription
Item A, Virgin Hotel Discussion (a portion only)
Per our discussion, at the request of Councilmember Kors, I have prepared a
transcription of a portion of the Virgin Hotel Item, November 15, 2017, City Council
Meeting.
Councilmember Kors
I obviously take some exception to a potential bribe being a technicality, but everyone's
entitled to their opinion. When we voted to transfer the TOT from the Marriott to the
Virgin, which we did, we were assured we were not waiving, potentially not waiving our
1090 claims. In every agreement we've done since, we've had language. So I want to
ask the City Attorney - by combining the TOT program, which we have never done
before, with the development agreement we are effectively voting to waive any 1090
claims we may have. Is that correct?
City Attorney Kotkin
I'm loathe to offer legal advice in response to one Councilmember's questions, since the
entire Council is the holder of the attorney-client privilege. I apologize, my comments,
my legal analysis, I'm very happy to offer that. If there's a vote that I answer that
question, I . . .
Councilmember Kors
Anyone object to him answering the question? [Mayor and Councilmembers response]
Ok. You now have a majority.
26
Memo to City Attorney Kotkin Page 2
Verbatim Minutes(a portion only)
Item A,Virgin Hotel Development Agreement
City Attorney Kotkin
Great.
Terrific.
There's a verbal majority. I appreciate that. Thank you very much.
Mayor Moon
We're all listening.
City Attorney Kotkin
I appreciate that. Certainly with respect to this transaction, in the event that the
agreements that are before the Council this evening are approved as they're presented
in the staff report there would be no feasible way for the City of Palm Springs to seek to
recover the potential share of TOT that might be realized by this property through a
court proceeding. That is a right that today, under the existing agreements....my
analysis is indicating that we would have that capacity.
Councilmember Kors
No, he is giving us his opinion... Chris. He is not saying guaranteed. Well, that's not his
opinion.
City Attorney Kotkin
I will qualify my comments, because I have spoken with Councilmember Mills as well,
and I will certainly say that with respect to the recovery under 1092, that as a practical
matter, that type of a legal action is a challenging undertaking 100%, and that in a
certain sense, regardless of the path that the Council chooses, any attorney that tells
you "you're gonna get that money back" [Councilmember Kors, concurrently: "No
guarantees, understood"] would be absolutely foolish. We'd be wrong to do that.
Councilmember Kors
So we are effectively taking it off the table.
City Attorney Kotkin
would say if you approve these agreements as they're presented you're removing the
potential to recover that future money. Again, that's not money that the City has ever
spent or given anybody. It is future money.
Councilmember Kors
Ok, and just so it's clear. There's no reason we need to have the TOT agreement in
this development agreement. So if they were separate, we could do the development
agreement without that, that's correct as well.
City Attorney Kotkin
You could, in theory remove the TOT covenant from the development agreement,
convey the consideration in the development agreement that is given to the developer in
a separate document and extend the TOT in a new covenant the way we have in
conjunction with this development agreement. But it's far from certain, in my opinion,
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Memo to City Attorney Kotkin Page 3
Verbatim Minutes(a portion only)
Item A.Virgin Hotel Development Agreement
that that course of action would be any more likely to preserve the recovery potential
under 1092. It's far from certain.
Councilmember Kors
The best course of action to do that, would be to pass an ordinance extending the TOT
for the three (3) hotels that want them separate and apart from this development
agreement. Correct?
City Attorney Kotkin
If I were charting your course to preserve the City's recovery rights with respect to 1092
of the Government Code, as to any of these issues with respect to hotel projects I would
recommend that you do so in a project neutral, non-specific way by changing the
ordinance that provides for the program itself. That is certainly something that could be
done, and would obviate the need, potentially, for extensions of the TOT deadline for
the commencement of construction with respect to hotel rooms.
/kdh
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