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HomeMy WebLinkAboutMC004 - PALM SPRINGS SAFE ACCESS OPERATIONAL COVENANT AGREEMENT 2016-0184957 e6/e6/2e16 01:e5 PM Fee: $ 0.00 RECORDING REQUESTED BY Page i of 24 AND WHEN RECORDED MAIL TO: Recorded in Official Records i County of Riverside City Clerk Peter Aldana Assessor-County Clerk-Recorder City of East , ,I �JNyy,IIEu,I+ 'IIII Palm East Springs, C tz Canyon Way �m(�,, NM, �( Palm Springs,CA 92262 R A Exam: Page DA PCOR Misc Long RFD 1st Pg Adtl PS Cert eC SIZE NCOR SMF NCH T: C,( me 001` Space Above This Line For Recorder's Use Only W1 Filing fee EXEMPT per OPERATIONAL COVENANT AGREEMENT Government Code 6103 This Operational Covenant Agreement ("Covenant Agreement') is made as of April 29, 2016 ("Effective Date")by and between the following entities, referred to herein as the Parties: City of Palm Springs,a California charter city("City") Mailing Address: Office of City Manager 3200 East Tahquitz Canyon Way Palm Springs, CA 92262 Attention: City Manager and City Attorney Palm Springs Safe Access,a Non-profit Corporation("Operator") Mailing Address: 1247 S.Gene Autry Trail Palm Springs,CA 92264 Attention: President RECITALS A. Operator is a tenant under lease at an industrial/commercial building located at 1247 S. Gene Autry Trail, in City of Pahn Springs, County of Riverside, State of California, more particularly described on Exhibit "A" attached hereto and incorporated herein by reference ("Premises"). B. The provisions of this Covenant Agreement shall not be construed to directly affect, expand, reduce or limit the contractual duties, rights, and obligations which may exist by and between the Operator and its landlord pursuant to the terms of any lease agreement or related documents between the Operator and its landlord. C. Operator applied for a permit to operate a medical cannabis collective or cooperative ("MCCC") as provided under the laws of the City of Palm Springs and consistent with the provisions of Section 93.23.15 of the Palm Springs Zoning Code (the 'Permit"), including the cultivation of medical cannabis for the benefit of its qualified patient members. The City Council approved the Permit subject to the Operator complying with all of the Page 1 of 9 conditions of approval of the City Council of the City as described in Resolution No. 23659 and approved by the City Council on September 17, 2014 (the "City Approvals"). Resolution No. 23659 and the Conditions of Approval are attached to this Covenant Agreement as Attachment "B" ("Conditions of Approval") and are deemed a part of this Covenant Agreement. D. Operator desires to develop the Premises into a MCCC in full compliance with the Conditions of Approval (the"Project"). E. City and Operator intend that this Covenant Agreement shall be deemed evidence of Operator's compliance with the provisions of the Conditions of Approval and Operator agrees to fully comply with each and every Condition of Approval. The provisions of this Covenant Agreement are intended to satisfy in part the obligations of Operator pursuant to the provisions of Conditions ADM 5 and 6 of the Conditions of Approval. Notwithstanding any contrary term or provision of this Covenant Agreement,under no circumstances shall this Covenant Agreement be deemed an encumbrance, transfer, or assignment, of the Premises, Operator's leasehold interest therein, or any other interest with respect to the foregoing; rather this Covenant Agreement merely expressly states the application of the Conditions of Approval to the Operator's leasehold interest in the Premises so long as Operator operates a MCCC at the Premises, which Conditions of Approval would apply thereto in any event, without regard to Operator's execution of this Covenant Agreement, or the recordation hereof. DECLARATION OF CONDITIONS, COVENANTS,AND RESTRICTIONS In consideration of the above Recitals and City's approval of the Permit to operate a MCCC at the Premises, Operator hereby covenants and agrees that for the any period during which a MCCC is operated at the Premises by Operator, such Premises shall be used, occupied, developed, and maintained subject to the following obligations, all of which are for the purpose of enhancing attractiveness, usefulness, value, and desirability of the Premises, the surrounding property, and the public at large, and to minimize possible adverse effects on the public health, safety,and welfare. Each of the obligations contained in this Covenant Agreement shall run with the Operator's leasehold interest in the Premises and shall be binding on each successive tenant of all or any portion of that interest, to the extent, and solely to the extent that, such successive tenant desires to operate an MCCC at the Premises. 1. Proiect Description. The Project as approved is generally described in the application materials on file in the Office of the City Clerk. The Project is being developed in phases with an office and related facilities to be developed and occupied in the initial phase and the cultivation to commence upon City's approval of occupancy of the first phase of the Project. 2. Reference Documents. The site shall be developed and maintained in accordance with the plans approved by the Building Official, and site plans, architectural elevations, exterior materials and colors, landscaping, and grading on file in the Planning Department except as modified through the City's building permit process or by the approved Mitigation Measures and conditions as provided in the City Approvals. Page 2 of 9 3. Conform to all Codes and Regulations. The Operator shall conform to the conditions contained herein, all applicable regulations of the Palm Springs Zoning Ordinance, Municipal Code, and any other City County, and State Codes, ordinances, resolutions and laws that may apply, including but not limited to all provisions of Chapter 5.35 of the Pahn Springs Municipal Code, the City's building codes and business license ordinances, the Revenue and Taxation Code, and the Americans with Disabilities Act. The Operator shall fully comply with and meet all operating criteria and applicable restrictions and mandates required pursuant to the Compassionate Use Act of the State of California, all other state laws, the Attorney General Guidelines, the provisions of Section 93.23.15 of the Palm Springs Zoning Code, the provisions of Chapter 5.35 of the Palm Springs Municipal Code, and all specific, additional operating procedures and measures imposed as conditions of approval of the Permit, and all requirements set forth in this Covenant Agreement, in order to ensure that the operation of the MCCC is consistent with the protection of the health, safety, and welfare of the community, qualified patients, and primary caregivers,and will not adversely affect surrounding uses. 4. Continuing Application. The Operator shall annually provide to the City Manager an updated application containing all of the information identified in Subsection A of Section 5.35.210 of the Palm Springs Municipal Code. 5. Maintenance and Repair. The Operator and the Operator's successors and assignees in interest(who may operate a MCCC at the Premises) shall maintain and repair the improvements on or within the Premises including and without limitation all structures, sidewalks, bikeways, parking areas, landscape, irrigation, lighting, signs, walls, and fences between the curb and property line, including sidewalk or bikeway easement areas that extend onto private property, in a first class condition, free from waste and debris, and in accordance with all applicable law, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction. All awnings shall be maintained and periodically cleaned. The provisions of this paragraph shall not be construed to directly affect the contractual duties, rights, and obligations which may exist by and between the Operator and its landlord regarding maintenance and repair of the Premises as set forth in any lease agreement or related documents between the Operator and its landlord. 6. Building Codes Compliance. Operator shall comply with Section 1I of Chapter 8.04 "Building Security Codes" of the Palm Springs Municipal Code, as amended from time to time. Prior to commencement of any construction on-site, all appropriate permits must be secured. All facilities and operations shall conform at all times to applicable California and Palm Springs Building Codes including Accessibility Codes. All facilities and operations shall conform at all times to applicable California and Palm Springs Fire Codes. 7. Outdoor Lighting Conformance. All lighting related to the Premises shall comply with the exterior lighting plan approved by City. Down-lights shall be utilized for all lights mounted on buildings. Exterior lighting plans, including a photometric site plan showing the Project's conformance with Section 93.21.00 Outdoor Lighting Standards of the Palm Springs Zoning Code, shall be submitted for approval by the Department of Planning. Manufacturer's cut sheets of all exterior lighting on the building and in the landscaping shall be included. If lights are proposed to be mounted on buildings, down-lights shall be utilized. No lighting of hillsides is permitted. Page 3 of 9 8. Signage. No signs were approved in conjunction with the City Approvals. Separate approval and permits shall be required for all signs in accordance with Palm Springs Zoning Code Section 93.20.00. The Operator shall submit a sign program to the Department of Planning Services prior to the issuance of building permits. Any approved signs shall be limited to the name of business only, and no advertising of the goods and/or services shall be permitted. 9. Additional Development and Maintenance Requirements. Screen Roof-mounted Equipment. All roof mounted mechanical equipment shall be screened per the requirements of Section 93.03.00 of the Zoning Code. Exterior Alarms &Audio Systems. No sirens,outside paging or any type of signalization will be permitted, except approved alarm systems. Outside Storage Prohibited. No outside storage of any kind shall be permitted except as approved as a part of the proposed plan. No off-site Parking. Vehicles associated with the operation of the proposed development including company vehicles or employees vehicles shall not be permitted to park off the proposed building site unless a parking management plan has been approved. Bicycle Parking. The Project shall be required to provide secure bicycle parking facilities on site for use by residents and commercial/retail patrons and owners. Location and design shall be approved by the Director of Planning. No Sirens. No sirens, outside paging, or any type of signalization shall be installed on the building or property on which the Premises is located other than City-approved alarm systems. 10. Operational Requirements. Hours of Operation Limited. The MCCC shall only be open between the hours of 9:00 a.m. and 7:00 p.m., or as may be otherwise authorized by the City Council. Securi . Cannabis shall be kept in a secured manner during business and non-business hours. Windows and/or entrances shall not be obstructed and must maintain a clear view into the premises during business hours and in conformance with the Security Plan Provisions of Section 5.35.300 of the Palm Springs Municipal Code. Security Recordings made by the security cameras shall be made available to the City Manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. Qualified Patients/Caregivers Only. Each member of the MCCC shall be a patient or a qualified primary caregiver. The MCCC shall maintain patient records in a secure location within the City of Palm Springs, available to the City Manager to review upon demand. Such records shall include without limitation a copy of the physician's referral and, if using a primary caregiver, a notarized written authorization from the patient to be Page 4 of 9 represented by such primary caregiver. Physician's referrals of each member shall be verified by the MCCC prior to inclusion of the member into the MCCC and at least every six months thereafter. Conditions for Food Consumption. If consumable Medical Cannabis products(including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on site or offered for distribution, then the Operator shall secure a County of Riverside Deparhnent of Health Services approval for handling food products. No Commercial Sale. No MCCC shall conduct or engage in the commercial sale of any product, good,or service. Sales Tax. Any MCCC must pay any applicable sales tax pursuant to federal, state, and local law. Prohibited Activities. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of the MCCC. The term "premises" as used in this Subsection includes the actual building, as well as any accessory structures and parking areas over which Operator has control. The building entrance to a MCCC shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming marijuana on the premises or in the vicinity of the MCCC is prohibited. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises of the MCCC. A MCCC shall not hold or maintain a license from the California Department of Alcoholic Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. In addition, alcoholic beverages shall not be provided, stored,kept, located, sold, dispensed, or used on the premises of the MCCC. Minors. No one under 18 years of age shall be a member of a MCCC without written authorization of a parent or legal guardian. Physician services shall not be provided on the premises of the MCCC. "Physician services" does not include social services, including counseling, help with housing and meals,hospice and other care referrals which may be provided on site. No Distribution to non-members. The MCCC shall not distribute, sell, dispense, or administer cannabis to anyone other than qualified patient members of the MCCC and their primary caregivers. Restricted Source of Medical Cannabis. A MCCC shall distribute only cannabis cultivated on the premises or by a member of the MCCC or the member's primary caregiver. The MCCC shall do an inventory on the first business day of each month and shall record the total quantity of each form of cannabis on the premises. These records shall be maintained for two(2)years from the date created. Provision of Records and Contacts. A MCCC shall provide the City Manager with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom one can provide notice if there Page 5 of 9 are operating problems associated with the MCCC. The MCCC shall make every good faith effort to encourage residents to call this person to try to solve operating problems, if any,before any calls or complaints are made to the police or planning departments. Cause No Disturbance. The Operator shall monitor outdoor parking areas, walkways, and adjoining properties and shall take all necessary measures to ensure that customers do not loiter, create noise, litter, or cause any disturbances while on-site. The Operator shall ensure that at closing time, all customers leave the Premises promptly and that the Premises are clean and secure before the Operator leaves the premises. The Police Chief, based upon complaints and/or other cause,may require on-site security officers to ensure compliance with all City, State, and Federal laws and conditions of approval. Failure to comply with these conditions may result in revocation of this Permit, temporary business closure or criminal prosecution. Comply with City Noise Ordinance. This use shall comply with the provisions of Section 11.74 Noise Ordinance of the Palm Springs Municipal Code. 11. City Access. The City Manager of the City or the City Manager's designee shall have the right to enter the MCCC from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with Chapter 5.35 of the Palm Springs Municipal Code and all other laws of the City of Palm Springs and the State of California. 12. Revocation of Permit. Operation of the MCCC in non-compliance with any Conditions of Approval or standards of this Covenant Agreement shall constitute a violation of the Municipal Code and shall be enforced pursuant to the provisions of this Code. Non-compliance with any of the Conditions of Approval, the provisions of this Covenant Agreement, any City codes and ordinances, State laws; or the occurrence of any valid citizen complaints or policing and safety problems (not limited to alcohol consumption, noise, disturbances, signs, etc) regarding the operation of the establishment; as determined by the Chief of Police or the Director of Building and Safety, may result in proceedings to revoke the Permit. In addition, violations of the City Codes and Ordinances will result in enforcement actions which may include citations, arrest, temporary business closure, or revocation of this Permit in accordance with law. In addition thereto, the City Manager may revoke the Permit if any of the following, singularly or in combination,occur: a. The City Manager determines that the MCCC has failed to comply with this Section, any condition or approval, or any agreement or covenant as required pursuant to this Section;or b. Operations cease for more than 90 calendar days, including during change of ownership proceedings; or 1. Ownership is changed without securing a regulatory permit; or 2. The MCCC fails to maintain 240 hours of security recordings;or 3. The MCCC fails to allow inspection of the security recordings, the activity logs,or of the premise by authorized City officials. Page 6 of 9 13. Indemnification: Operator agrees to protect, defend, and hold harmless City and its officials, officers, employees, contractors, attorneys, and agents to the maximum extent permitted under law from any and all claims, liabilities, losses, expenses, or damages of any nature, including attorneys' fees and costs, City may or does incur, arising out of or in any way related to Operator's performance of its obligations under this Covenant Agreement, but excluding any loss resulting solely from the intentional or active negligence of City or its officials, officers, employees, contractors, attorneys, and agents. The Operator shall defend, indemnify, and hold harmless the City of Palm Springs, its officials, officers, employees, contractors, attorneys, and agents from any claim, action, or proceeding against the City of Palm Springs or its officials, officers, employees, contractors, attorneys,and agents to attack, set aside, void, or annul, an approval of the City of Palm Springs, its legislative body, advisory agencies, or administrative officers concerning City Approvals. The City of Pahn Springs will promptly notify the Operator of any such claim, action, or proceeding against the City of Palm Springs and the Operator shall select and retain counsel reasonably acceptable to City to defend any action or actions, and Operator shall pay the cost thereof, or will advance fonds to pay for defense of the matter by the City Attorney. 14. Attorneys' Fees: Should any action be brought arising out of this Covenant Agreement including, without limitation, any action for declaratory or injunctive relief, the prevailing party shall be entitled to reasonable attorneys' fees and costs and expenses of investigation incurred, including those incurred in appellate proceedings or in any action or participation in, or in connection with, any case or proceeding under Chapter 7, 11 or 13 of the Bankruptcy Code or any successor statutes, and any judgment or decree rendered in any such actions or proceedings shall include an award thereof. 15. Recordation: This Covenant Agreement shall be recorded and Operator shall provide a copy of the recorded Covenant Agreement to City. 16. City Remedies: Any remedy described in this Covenant Agreement shall not he deemed or considered in any way to be the exclusive remedy available to City to enforce the provisions of this Covenant Agreement. The City may resort to any remedy available under law to enforce the provisions of this Covenant Agreement including the initiation and prosecution of an action for specific performance, including the recovery of any costs, fees, or charges of any kind including attorney's fees that City may incur in the enforcement of this Covenant Agreement. 17. Amendment or Termination: This Covenant Agreement and the Conditions, Covenants and Restrictions herein shall not be amended in any manner or terminated without the prior written approval of City or without the recordation of any such approval by City. 18. Covenant Running With the Leasehold Interest of Operator: The terms and conditions of this Covenant Agreement and the Conditions, Covenants and Restrictions herein shall constitute a covenant running with and binding the leasehold interest of Operator in the Premises. Accordingly, the Operator's leasehold interest in the Premises, to the extent that such interest is used for the operation of a MCCC, shall hereafter be used, occupied and improved subject to the aforementioned conditions, all of which shall run with the Operator's leasehold interest in the Premises, and shall be binding on all parties having any right, title or interest claimed under the rights of the Operator therein, or in any part thereof, their heirs, successors and assigns (which, Page 7 of 9 for purposes of this Section 18, shall each be referred to individually as an "Operator"). Nothing herein shall be deemed consent by the City of any transfer, sale, or conveyance of any kind of any interest in the Premises by the Operator to any person or entity. 19. City Enforcement: The conditions of this Covenant Agreement are intended to benefit the public and public properties. Accordingly, it is agreed City of Palm Springs shall have the right to enforce this Covenant Agreement by any legal or equitable means against Operator or any person in actual possession of the Operator's leasehold interest in the Premises operating a MCCC who directly or through any agent violates the terms hereof. All obligations of Operator under this Covenant Agreement shall inure solely to the benefit of City and there are no third party beneficiaries of said obligations. 20. Waiver: Failure by a party to insist upon the strict performance of any of the provisions of this Agreement by the other parry, or the failure by a party to exercise its rights upon the default of the other party, shall not constitute a waiver of such parry's right to insist and demand strict compliance by the other party with the terms of this Covenant Agreement thereafter. 21. Severability: The provisions of this Covenant Agreement shall be deemed independent and severable and the invalidity or partial invalidity or unenforceability of any one provision or portion thereof shall not affect the validity or enforceability of any other provision. 22. Counterparts: This Covenant Agreement may be executed in counterparts, each of which so executed shall, irrespective of the date of its execution and delivery, be deemed an original, and all such counterparts together shall constitute one and the same instrument. 23. Authority of Simatories to Agreement: Each person executing this Covenant Agreement represents and warrants that he or she is duly authorized and has the legal capacity to execute and deliver this Agreement on behalf of the parties for which execution is made. Each party represents and warrants to the other that the execution of this Covenant Agreement and the performance of such party's obligations hereunder have been duly authorized and that this Covenant Agreement is a valid and legal agreement binding on such party and enforceable in accordance with its terms. SIGNATURES ON FOLLOWING PAGE Page 8 of 9 IN WITNESS WHEREOF, the parties hereto have executed this Operational Covenant Agreement as of the Effective Date. OPERATOR/TENANT Palm Springs Safe Access,Inc.,a California Non-Profit Corporation By: Robert L. V esident ACCEPTED BY: City of Palm Springs,a California charter city By: David H. Ready City Manager APPROVED AS TO FORM: f By: Dougl s C. Holland City Attorney Page 9 of 9 ACKNOWLEDGMENT OF INSTRUMENT (Cal. Civil Code Section 1181) State of California ) County of Riverside ) ss. City of Palm Springs ) On May 3, 2015, before me, JAMES THOMPSON, CITY CLERK, CITY OF PALM SPRINGS, CALIFORNIA, personally appeared DAVID H. READY, who I personally know is the CITY MANAGER of the CITY OF PALM SPRINGS whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his official and authorized capacity on behalf of the City of Palm Springs, a California Charter City. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct. Witness my hand and the official seal of the City of Palm Springs, California, this 5th day of May, 2015. .1��PALM sp4 �2 c+ V N R t R NCp M ROp1lfi0\93O Signature: cq<�Foit ES THOMPSON, CITY CLERK ity of Palm Springs, California Title or Type of Document OPERATIONAL COVENANT AGREEMENT Palm Springs Safe Access MC004 ACKNOWLEDGMENT A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness,accuracy, or validity of that document. State of California County of ye✓S i On IQ.or �; 2�'� Zu 1(9 before me, �iq Vi/I- { j y y Qwi,Iic (here insert Ad name d title of officer), personally appeared (���f L• i/«� (z ao who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument. I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct MYRTA IA.APONTE WITNESS m hand and official seal. eoMM's -Cal' o 3' s Notary Public-California Riverside Count �j Carom.Erpm AAey 12,2019 Signature — - (Seal) EXHIBIT "A" Premises Description The Leasehold Interest created under that certain AIR Commercial Real Estate Association Standard Industrial/Commercial Single—Tenant Lease—Gross (the"Lease"), dated February 21, 2014, for reference purposes,for the premises located at 1247 S. Gene Autry, Palm Springs, California consisting of approximately 8,000 square feet(the"Premises") EXHIBIT "B" Resolution No. 23659 and Conditions of Approval RESOLUTION NO. 23659 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AWARDING A MEDICAL CANNABIS COOPERATIVE/COLLECTIVE PERMIT TO PALM SPRINGS SAFE ACCESS OPERATED BY ROBERT VAN ROO, LOCATED AT 1247 S. GENE AUTRY TRAIL. The City Council of the City of Palm Springs finds: A. On March 5, 2014, Ordinance 1845 went into effect. This Ordinance increased the number of permits available in the City for Medical Cannabis Cooperatives/Collectives uses, revised the procedures for the application, administration, and permitting of Medical Cannabis Cooperative/Collectives in the City, revised the operational regulations for such uses, and moved the operational and permitting requirements and regulations from City s Zoning Code to Chapter 5.35 of the City's Municipal Code while retaining the traditional zoning and land use regulations within the City's Zoning Code, including locational requirements. B. Between June 16, 2014 and July 16, 2014, the City received eight applications for the award of one available permit to operate a Medical Cannabis Cooperative/Collective within the City. C. The City Manager has overseen the evaluation of each of the eight applications in accordance with the provisions of Ordinance 1845. D. Palm Springs Safe Access (the "Applicant") is a Medical Cannabis Cooperative/Collective that filed an application pursuant to Chapter 5.35 "Comprehensive Medical Cannabis Regulatory Program" of the Palm Springs Municipal Code for a permit to operate a Medical Cannabis Cooperative/Collective at 1247 S. Gene Autry Trail, which application was received during the submittal period noted above and evaluated by the City. E. Notices of public hearing of the City Council of the City of Palm Springs to consider the Medical Cannabis Cooperatives/Collective applications, including the application of Applicant, were given in accordance with applicable taw. F. On September 3, 2014, a public hearing on the applications for Medical Cannabis Cooperative/Collectives, including the application submitted by Applicant, was held by the City Council in accordance with applicable law. G. The City Council has carefully reviewed and considered all of the evidence presented in connection with the meeting on the project, including but not limited to the staff report and all written and oral testimony presented. CERTIFIED COPY I certify that this is a true and correct copy of the docut ient on file in the official records of the City of Palm Springs. CI lief Depuiy City Clerk This certification must appear in blue with an original signature. Resolution No. 23659 Page 2 H. The City Council further finds that the City Council established and thereafter amended the Comprehensive Regulatory Program for Medical Cannabis Cooperatives and Collectives, which exists as part of the Municipal Code and is intended to ensure the health, safety, and welfare of the residents of the City by enacting a limitation on the establishment of medical cannabis cooperatives/collectives within the City, and to provide additional locational restrictions for such establishments. The City Council therefore finds that the Medical Cannabis Cooperatives/Collectives allowed under the Palm Springs Municipal Code Chapter 5.35 and the locational requirements provided for in Section 93.23.15 of the Zoning Code will promote the public health and safety by reducing the potential for the types of secondary negative effects caused by Medical Cannabis Cooperatives/Collectives experienced in other communities. The City Council of the City of Palm Springs resolves: SECTION 1. Pursuant to the California Environmental Quality Act ("CEQA") guidelines, the application has been determined to be a Project under the definition of CEQA. The case has been evaluated and staff has made a determination that the application is "Categorically Exempt" from further analysis under CEQA in accordance with CEQA Section 15303 (New Construction or Conversion of Small Structures). SECTION 2. The obligations of the Medical Cannabis Cooperative/Collective receiving a permit, including all on-going and continuing obligations required pursuant to any provision of Chapter 5.35 of the Municipal Code as well as any conditional approval shall be set forth in a covenant running with the land or the leasehold interest, approved as to form by the City Attorney and enforceable by the City. Such covenant shall also provide that the cooperative or collective shall annually provide to the City Manager an updated application containing the information contained in Section 5.35.200 of the Municipal Code. SECTION 3. City Council approves the application of "Palm Springs Safe Access", and approves the issuance of a regulatory permit to Palm Springs Safe Access pursuant to Palm Springs Municipal Code Chapter 5.35 to operate a Medical Cannabis Cooperative/Collective at 1247 S. Gene Autry Trail. These actions are subject to the conditions contained in Exhibit A attached to this Resolution. ADOPTED, THIS 17TH DAY OF SEPTEMBER, 2014. 4 David H. Ready, Oplitagiger ATTEST: mes Thompson, City Clerk Resolution No. 23659 Page 3 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. 23659 is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on September 17, 2014, by the following vote: AYES: Councilmember Foat, Councilmember Lewin, Councilmember Mills, Mayor Pro Tern Hutcheson and Mayor Pougnet. NOES: None. ABSENT: None. ABSTAIN: None. es Thompson, City Clerk J6�rojre r�4 ity of Palm Springs, California Resolution No. 23659 Page 4 EXHIBIT A Palm Springs Safe Access 1247 S Gene Autry Trail, Palm Springs, CA 92264 September 17, 2014 CONDITIONS OF APPROVAL Before final acceptance of the project, all conditions listed below shall be completed to the satisfaction of the City Manager, City Engineer, the Director of Planning Services, the Director of Building and Safety, the Chief of Police, the Fire Chief or their designee, depending on which department recommended the condition. Any agreements, easements or covenants required to be entered into shall be in a form approved by the City Attorney. ADMINISTRATIVE CONDITIONS ADM 1. Project Description. This approval is for the project described per Case (MC 09-003); except as modified with the conditions below; ADM 2. Reference Documents. The site shall be developed and maintained in accordance with the approved plans on file in the Office the City Clerk, Director of Planning Services, and the Director of Building and Safety, including without limitation site plans, architectural elevations, exterior materials and colors, landscaping, and security systems except as modified by the conditions below. ADM 3. Conform to all Codes and Regulations. The applicant shall conform to the conditions contained herein, all applicable regulations of the Palm Springs Zoning Ordinance, Municipal Code, and any other City County, State and Federal Codes, ordinances, resolutions and laws that may apply, including without limitation all provisions of Chapters 3.36 and 5.35 and Section 93.23.15 of the Palm Springs Municipal Code. ADM 4. Minor Deviations. The Director of Planning or designee may approve minor deviations to the project description and approved plans in accordance with the provisions of the Palm Springs Zoning Code. ADM 5. Indemnification. The owner shall defend, indemnify, and hold harmless the City of Palm Springs, its agents, officers, and employees from any claim, action, or proceeding against the City of Palm Springs or its agents, officers Resolution No. 23659 Page 5 or employees to attach, set aside, void or annul, an approval of the City of Palm Springs, its legislative body, advisory agencies, or administrative officers concerning Case MC 09-003. The City of Palm Springs will promptly notify the applicant of any such claim, action, or proceeding against the City of Palm Springs and the applicant will either undertake defense of the matter and pay the City's associated legal costs or will advance funds to pay for defense of the matter by the City Attorney. If the City of Palm Springs fails to promptly notify the applicant of any such claim, action or proceeding or fails to cooperate fully in the defense, the applicant shall not, thereafter, be responsible to defend, indemnify, or hold harmless the City of Palm Springs. Notwithstanding the foregoing, the City retains the right to settle or abandon the matter without the applicant's consent but should it do so, the City shall waive the indemnification herein, except, the City's decision to settle or abandon a matter following an adverse judgment or failure to appeal, shall not cause a waiver of the indemnification rights herein. ADM 6. Covenant. The obligations of the Medical Cannabis Cooperative or Collective, including all on-going and continuing obligations required pursuant to any provision of Chapter 5.35 of the Palm Springs Municipal Code or as may be provided in any conditional approval of the City Manager or the City Council, shall be set forth in a covenant running with the land or the leasehold interest, approved as to form by the City Attorney, and enforceable by the City_ Such covenant shall also provide that the cooperative or collective shall annually provide to the City Manager an updated application containing the information required under Chapter 5.35 of the Palm Springs Municipal Code. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, and expressly does not waive sovereign immunity, with respect to medical cannabis, or for the activities of any Medical Cannabis Cooperative or Collective. Upon receiving possession of a regulatory permit as provided in this Section, the collective or cooperative shall a. Execute an agreement indemnifying the City; b. Carry insurance in the amounts and of the types that are acceptable to the City Manager, C. Name the City as an additionally insured. d. Agree to defend at its sole expense, any action against the City, its agents, officers, and employees because of the issues of such approval. e. Agree to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of such action. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve the operator of its obligation hereunder. ADM 7. Maintenance and Repair. The property owner(s) and successors and assignees in interest shall maintain and repair the improvements including and without limitation all structures, sidewalks, bikeways, parking areas, Resolution No.23659 Page 6 landscape, irrigation, lighting, signs, walls, and fences between the curb and property line, including sidewalk or bikeway easement areas that extend onto private property, in a first class condition, free from waste and debris, and in accordance with all applicable law, rules, ordinances and regulations of all federal, state, and local bodies and agencies having jurisdiction at the property owner's sole expense. This condition shall be included in the recorded covenant agreement for the property if required by the City. ADM 8. Right to Appeal. Decisions of an administrative officer or agency of the City of Palm Springs may be appealed in accordance with Municipal Code Chapter 2.05.00. Permits will not be issued until the appeal period has concluded. ADM 9. Cause No Disturbance. The owner shall monitor outdoor parking areas, walkways, and adjoining properties and shall take all necessary measures to ensure that customers do not loiter, create noise, litter, or cause any disturbances while on-site. The owner and operator shall ensure that at closing time, all customers leave the property promptly and that the property is clean and secure before the owner/operator leaves the premises. The Police Chief, based upon complaints and/or other cause, may require on-site security officers to ensure compliance with all City, State, and Federal laws and conditions of approval. Failure to comply with these conditions may result in revocation of this permit, temporary business closure or criminal prosecution. ADM 10. Grounds for Revocation. Non-compliance with any of the conditions of this approval or with City codes and ordinances, State laws; any valid citizen complaints or policing and safety problems (not limited to alcohol consumption, noise, disturbances, signs, etc) regarding the operation of the establishment; as determined by the Chief of Policy or the Director of Building and Safety, may result in proceedings to revoke the Permit. In addition, violations of the City Codes and Ordinances will result in enforcement actions which may include citations, arrest, temporary business closure, or revocation of this permit in accordance with law. ADM 11. Comply with City Noise Ordinance. This use shall comply with the provisions of Section 11.74 Noise Ordinance of the Palm Springs Municipal Code. Violations may result in revocation of this Conditional Use Permit. ADM 12. Comply with all laws. The cooperative or collective shall comply fully with all of the applicable restrictions and mandates set forth in state law, including without limitation the Attorney General Guidelines. ADM 13. Hours of Operation Limited. The cooperative shall only be open between the hours of 9:00 a.m. and 7:00 p.m. Resolution No. 23659 Page 7 ADM 14. Physician's referrals shall be verified by the cooperative prior to inclusion into the cooperative and at least every six months thereafter. ADM 15. Qualified Patients/Caregivers Only. Each member of the cooperative or collective shall be a patient or a qualified primary caregiver. The cooperative shall maintain patient records in a secure location within the City of Palm Springs, available to the City Manager to review upon demand. Such records shall include without limitation a copy of the physician's referral and, if using a primary caregiver, a notarized written authorization from the patient to be represented by such primary caregiver. ADM 16. Securi . Cannabis shall be kept in a secured manner during business and non-business hours. ADM 17. Conditions for Food Consumption. If consumable Medical Cannabis products (including, but not limited to, lollipops, brownies, cookies, ice cream, etc.) are present on site or offered for distribution, then the applicant shall secure a County of Riverside Department of Health Services approval for handling food products. ADM 18. Sales Tax. Any Medical Cannabis Cooperative or Collective must pay any applicable sales tax pursuant to federal, state, and local law. ADM 19. Prohibited Activities. On-site smoking, ingestion, or consumption of cannabis or alcohol shall be prohibited on the premises of the cooperative or collective. The term "premises" as used in this Subsection includes the actual building, as well as any accessory structures and parking areas. The building entrance to a cooperative or collective shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming marijuana on the premises or in the vicinity of the cooperative or collective is prohibited. ADM 20. Sionaae for the cooperative shall be limited to name of business only, and no advertising of the goods and/or services shall be permitted. ADM 21. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. A cooperative or collective shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of the cooperative or collective. ADM 22. Windows and/or entrances shall not be obstructed and must maintain a clear view into the premises during business hours and in conformance with the Security Plan Provisions of Chapter 5.35 of the Palm Springs Zoning Code. Resolution No. 23659 Page 8 ADM 23. Minors. No one under 18 years of age shall be a member of a cooperative or a collective without written authorization of a parent or legal guardian. ADM 24. Physician services shall not be provided on the premises. "Physician services" does not include social services, including counseling, help with housing and meals, hospice and other care referrals which may be provided on site. ADM 25. The building in which the cooperative or collective is located as well as the operations as conducted therein shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City's business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the Compassionate Use Act. ADM 26. No Distribution to non-members. The cooperative or collective shall not distribute, sell, dispense, or administer cannabis to anyone other than qualified patient members of the cooperative or collective and their primary caregivers. ADM 27. Restricted Source of Medical Cannabis. A Medical Marijuana Cooperative or Collective shall distribute only cannabis cultivated on the premises or by a member of the cooperative or collective or the member's primary caregiver. The cooperative or collective shall do an inventory on the first business day of each month and shall record the total quantity of each form of cannabis on the premises. These records shall be maintained for two (2) years from the date created. ADM 28. Provision of Records and Contacts. Provide the City Manager with the name, phone number, facsimile number, and email address of an on-site community relations or staff person or other representative to whom one can provide notice if there are operating problems associated with the Cooperative. The Cooperative shall make every good faith effort to encourage residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the police or planning departments. ADM 29. Fully cwmoly with and meet all operating criteria required pursuant to the Compassionate Use Act, state law, the Attorney General Guidelines, the provisions of this Section, and any specific, additional operating procedures and measures as may be imposed as conditions of approval of the regulatory permit, and all requirements set forth in the covenant as described in Subsection C of Section 5.35.210 of the Palm Springs Municipal Code, in order to ensure that the operation of the cooperative or collective is consistent with the protection of the health, safety, and welfare of the community, qualified patients, and primary caregivers, and will not adversely affect surrounding uses. Resolution No.23659 Page 9 ADM 30. Security Recordings.. Recordings made by the security cameras shall be made available to the City Manager upon verbal request; no search warrant or subpoena shall be needed to view the recorded materials. ADM 31. City Access The City Manager shall have the right to enter the Medical Cannabis Cooperative or Collective from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and State of California. ADM 32. Operation of the cooperative or collective in non-compliance with any conditions of approval or standards of this Section shall constitute a violation of the Municipal Code and shall be enforced pursuant to the provisions of this Code. ADM 33. Revocation of Regulatory Permit. The City Manager may revoke a medical marijuana regulatory permit if any of the following, singularly or in combination, occur. a. The City Manager determines that the cooperative or collective has failed to comply with this Section, any condition or approval, or any agreement or covenant as required pursuant to this Section; or b. Operations cease for more than 90 calendar days, including during change of ownership proceedings; or 1. Ownership is changed without securing a regulatory permit; or 2. The cooperative or collective fails to maintain 120 hours of security recordings; or 3. The cooperative or collective fails to allow inspection of the security recordings, the activity logs, or of the premise by authorized City officials. ADM 34. By-laws. The Police Department and the City Attorney's Office are concerned that cannabis cooperatives can be operated illegally or as fronts for other criminal activity. The regulatory approach that the City has taken in the development and administration of the current zoning program helps address some of those concerns. Providing for heightened membership involvement in the operation of the collective or cooperative will also help ensure that each collective or cooperative is operating for the sole purpose of providing safe medicine at a reasonable cost to the member patients and their caregivers. Thus, the inclusion of the following provisions to the bylaws of the Applicant is required. A full copy of the Applicant organization by-laws shall be submitted to the City Attorney in a Microsoft Word Document (.doc)format incorporating the following aspects into the by-laws to the satisfaction of the City Attorney: 1. Members shall elect all Directors. 2. Compensation of Directors shall be approved by the membership. 3. Compensation of Officers shall be approved by the Directors. 4. The annual budget of the corporation and any amendment to the budget that results in increases in expenditures above any amount budgeted shall be approved by the membership. Resolution No.23659 Page 10 5. No minimum attendance for membership meetings shall be required, any action requiring membership approval or action shall by approved by a majority or super-majority of the votes cast, as provided in the bylaws, so long as at least 50% of the membership participate in the vote. All members shall be provided the opportunity to participate in any vote, either by attendance at a meeting, by mail, or any other reasonable, objective, and fair method designed to encourage independent membership participation. 6. All membership meetings and all Board of Director meetings shall be held in Palm Springs 7. Any amendment of the bylaws shall be approved by the membership. 8. All records of the corporation shall be available for inspection by the membership. ENVIRONMENTAL ASSESSMENT CONDITIONS ENV 1. Coachella Valley Multiple-Species Habitat Conservation Plan (CVMSHCP) Local Development Mitigation Fee (LDMF) required. This project is exempt from CVMSHCP LDMF fees. ENV 2. California Fish & Game Fees Reguired. The project is required to pay a fish and game impact fee as defined in Section 711.4 of the California Fish and Game Code. This CFG impact fee plus an administrative fee for filing the action with the County Recorder shall be submitted by the applicant to the City in the form of a money order or a cashier's check payable to the Riverside County Clerk prior to the final City action on the project (either Planning Commission or City Council determination). This fee shall be submitted by the City to the County Clerk with the Notice of Determination. Action on this application shall not be final until such fee is paid. The project may be eligible for exemption or refund of this fee by the California Department of Fish & Game. Applicants may apply for a refund by the CFG at www.dfct.Ga.gov for more information. PLANNING DEPARTMENT CONDITIONS PLN 1. Outdoor Lighting Conformance. Exterior lighting plans, including a photometric site plan showing the project's conformance with Chapter 5.35 of the Palm Springs Zoning ordinance, shall be submitted for approval by the Department of Planning. Manufacturer's cut sheets of all exterior lighting on the building and in the landscaping shall be included. if lights are proposed to be mounted on buildings, down-lights shall be utilized. No lighting of hillsides is permitted. PLN 2. Sign Applications Reguired. No signs are approved by this action. Separate approval and permits shall be required for all signs in accordance wtth Chapter 5.35 of the Palm Springs Municipal Code. The applicant shall submit Resolution No. 23659 Page 11 a sign program to the Department of Planning Services prior to the issuance of building permits. PLN 3. Maintenance of Awnings & Projections. All awnings shall be maintained and periodically cleaned. PLN 4. Screen Roof-mounted Equipment. All roof mounted mechanical equipment shall be screened per the requirements of Section 93.03.00 of the Zoning Ordinance. PLN 5. Exterior Alarms & Audio Systems. No sirens, outside paging or any type of signalization will be permitted, except approved alarm systems. PLN 6. Outside Storage Prohibited. No outside storage of any kind shall be permitted except as approved as a part of the proposed plan. PLN 7. No off-site Parking. Vehicles associated with the operation of the proposed development including company vehicles or employees vehicles shall not be permitted to park off the proposed building site unless a parking management plan has been approved. PLN 8. Bicycle Parking. The project shall be required to provide secure bicycle parking facilities on site for use by residents and commercial/retail patrons and owners. Location and design shall be approved by the Director of Planning. POLICE DEPARTMENT CONDITIONS POL 1. Applicant shall comply with Section II of Chapter 8.04 "Building Security Codes"of the Palm Springs Municipal Code. BUILDING DEPARTMENT CONDITIONS BLD 1. Prior to any construction on-site, all appropriate permits must be secured. BLD 2. All facilities and operations shall conform at all times to applicable California and Palm Springs Building Codes including Accessibility Codes. ENGINEERING DEPARTMENT CONDITIONS (none) FIRE DEPARTMENT CONDITIONS FIR 1. All facilities and operations shall conform at all times to applicable California and Palm Springs Fire Codes. END OF CONDITIONS