HomeMy WebLinkAboutMC005 - PALM SPRINGS ASSOCIATED ORGANICA MEDICAL CANNABIS COOP/COLL 396 SUNNY DUNES RD 2015-0504415
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RECORDING REQUESTED BY Recorded in official Records
County of Riverside
AND WHEN RECORDED MAIL TO: Peter Aldana
Assessor-County Clerk-Recorder
City Clerk 'IIIiil`i ��R.Yr'I�� tlli5 'I II
City of Palm Springs F R I A Exam:
3200 East Tahquitz Canyon Way
Palm Springs, CA 92262 Page DA PCOR Misc Long RFD 1st Pg Adtl Pg CIO: CC
SIZE NCOR SMF CH T:
COVENANT AGREEMENT MGr]rt1C
This Covenant Agreement is made as of r1;' ("Effective Date") by and between "l
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 Associated Organica, a Non-profit Corporation ("Operator")
Mailing Address: 396 Sunny Dunes Road
Palm Springs, CA 92264
Attention: President
RECITALS
A. Operator is a tenant of a an industrial/commercial building located at 396 Sunny
Dunes Road, in City of Palm Springs, County of Riverside, State of California, more particularly
described on Exhibit "A" attached hereto and incorporated herein by reference("Tenancy").
B. 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 Chapter 5.35 of the Palm Springs Municipal 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
conditions of approval of the City Council of the City as described in Resolution No. 23852 and
approved by the City Council on July 15, 2015 (the "City Approvals"). Resolution No. 23852
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.
C. 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 the terms of this Covenant Agreement and each and every Condition of
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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.
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 Tenancy, Operator hereby covenants and agrees that for the duration of the
Tenancy, such Tenancy shall be held, conveyed, encumbered, 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 Tenancy, 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
Tenancy and shall be binding on each successive tenant of all or any portion of the Tenancy.
1. Project Description, The Project as approved is generally described in the application
materials on file in the Office of the City Clerk.
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.
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, State and Federal Codes, ordinances, resolutions and laws that
may apply, including but not limited to all provisions of Chapter 5.35 of the Palm 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 shall maintain and repair the improvements on or within the Tenancy including and
without limitation all structures, sidewalks, bikeways, parking areas, landscape, irrigation,
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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 Tenancy 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 II 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 Tenancy 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.
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.
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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 Tenancy 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.
Security. 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
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 Department
of Health Services approval for handling food products.
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. 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.
A MCCC 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
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beverages. In addition, alcohol 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. "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
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 Tenancy promptly and that the
Tenancy is 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 laws of the City and 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
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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 a medical marijuana regulatory 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.
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 Palm 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 funds 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
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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 be 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: The terms and conditions of this
Covenant Agreement and the Conditions, Covenants and Restrictions herein shall constitute a
covenant running with and binding the Tenancy and leasehold interest of Operator. Accordingly,
the Tenancy shall hereafter be held, sold, conveyed, mortgaged, encumbered, leased, rented,
used, occupied and improved subject to the aforementioned conditions, all of which shall run
with the Tenancy and shall be binding on all parties having any right, title or interest in the
Tenancy or any part thereof, their heirs, successors and assigns (which, 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
Tenancy 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 Tenancy who directly or through any agent violate 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 party, or the failure by a party to exercise its rights upon the
default of the other party, shall not constitute a waiver of such party'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.
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23. Authority of Signatories 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.
IN WITNESS WHEREOF, the parties hereto have executed this Covenant Agreement as
of the Effective Date.
OPERATOR/TENANT
Palm Springs Associated Organica, a
Calif rni Non- �
By:
Nam : U l( e�Q �-
Title:
By:
Name:
Title:
[Signature of Operator/Tenant must be
properly acknowledged and notarized]
ACCEPTED BY:
City of Palm Springs, a California charter city
David H. Ready APPROVED BY CITY COUNCIL
City Manager
ilrh AM?' 1•tit6
APPR� S TO FORM:
1 1
By:
Dougla C. Holland ATTEST:
City Attorney I�
ity Clerk
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1074397/
CALIFORNIA ALL-PURPOSE ACKNOWLEDGMENT CIVIL CODE§ 1189
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 IL.rr/w_6ib[-. ) v ,I
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Date ,,/�_ Here Insert Name and Title of the Officer
personally appeared ��v 1 R r - I r iaA i �1NiC�--
Name(s)of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/ar€
subscribed to the within instrument and acknowledged to me that /she/1NE$ executed the same in
Wher/their authorized capacity(Ls<and that byJais/herLtheir 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.
WITNESS my hand and official seal.
Signature
^GAVE BERGHOFF
crflr,. 20 3684 Signat of Pub
NC'ar} Publiu cotfor0 a
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Place Notary Seal Above
OPTIONAL
Though this section is optional, completing this information can deter alteration of the document or
fraudulent reattachment of this form to an unintended document.
Description of Attached Docum0fq`t j
Title or Type of Document: \cxAa 4.,— g Document Date: 1 D Nlll��
Number of Pages: Signer(s) Other Than Named Above:
Capacity(ies) Claimed by Signer(s)
Signer's Name: Signer's Name:
❑Corporate Officer — Title(s): Ll Corporate Officer — Title(s):
* Partner — ❑ Limited ❑ General ❑ Partner — ❑ Limited ❑General
❑ Individual ❑Attorney in Fact ❑ Individual [- Attorney in Fact
❑Trustee ❑ Guardian or Conservator ❑Trustee ❑ Guardian or Conservator
❑Other: ❑ Other:
Signer Is Representing: Signer Is Representing:
02014 National Notary Association •www.NationalNotary.org • 1-800-US NOTARY(1-800-876-6827) Item #5907
EXHIBIT "A"
Tenancy Description
APN: 508-132-011
That portion of Lot 12 in Section 23, Township 4 South, Range 4 East, San Bemadino Base and
Meridian of Palm Valley Colony Lands, in the City of Palm Springs, County of Riverside, State
of California, as shown by Map on file in Book 14, Page 152 of Maps, Records of San Diego
County, California, described as follows:
Beginning at a point on the south line of said Lot 12, 562.45 feet east of the southwest corner
thereof; thence easterly 35 feet on said southerly line; thence northerly 140 feet at right angles to
said southerly line; thence westerly 35 feet, parallel with said southerly line; thence southerly
140 feet to the point of beginning.
EXCEPTING THEREFROM the southerly 35 feet conveyed to the City of Palm Springs by deed
recorded August 15, 1946 in Book 764, Page 550 of the official records of the Riverside County,
California.
1074397.1
EXHIBIT "B"
Resolution No. 23852 and Conditions of Approval
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1074397.1
RESOLUTION NO. 23852
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, APPROVING AN
APPLICATION BY PALM SPRINGS ASSOCIATED
ORGANICA FOR A PERMIT TO OPERATE A MEDICAL
CANNABIS COLLECTIVE OR COOPERATIVE AT 400
EAST SUNNY DUNES, PALM SPRINGS, CALIFORNIA,
92262 (ZONE CM).
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS:
A. On June 17, 2015, The City Council adopted Ordinance 1879. This
Ordinance increased the number of permits available in the City for Medical Cannabis
Cooperatives/Collectives uses and revised a few of the City's locational requirements
Medical Cannabis Cooperatives/Collectives; and
B. In 2014 the City Council reviewed eight applications for the award of one
available permit to operate a Medical Cannabis Cooperative/Collective within the City.
The City Council determined on June 17, 2015 that the list of qualified applications
submitted in 2014 would be the list of qualified applications the Council would review for
the additional Medical Cannabis Cooperatives/Collectives allowed under Ordinance No.
1879; and
C. The City Manager had overseen the evaluation of each of the applications
submitted and reviewed in 2014 and has overseen the review of the supplemental
information submitted as part of the current process; and
D. Palm Springs Associated Organica (the "Applicant) is a Medical Cannabis
Cooperative/Collective that filed an application pursuant to Section 5.35
"Comprehensive Medical Cannabis Regulatory Program" of the Palm Springs Municipal
Code for a permit to operate a Medical Cannabis Cooperative/Collective at 400 East
Sunny Dunes, Palm Springs, CA 92262, which application was received during the
submittal period noted above and evaluated by the City; and
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 law; and
F. On July 15, 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; and
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; and
H. The City Council further finds that the City Council established and
thereafter amended the Comprehensive Regulatory Program for Medical Cannabis
Resolution No.23852
Page 2
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 cooperativeslcollectives
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 Section 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 Section 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 Associated
Organica" and approves the issuance of a regulatory permit to Palm Springs Associated
Organica pursuant to Palm Springs Municipal Code Section 5.35 to operate a Medical
Cannabis Cooperative/Collective at 400 East Sunny Dunes, Palm Springs, California,
92262. These actions are subject to the conditions contained in Exhibit A attached to
this Resolution. Failure to timely comply with any of the provisions of this Resolution or
any condition of approval will result in the commencement of revocation proceedings as
provided in Chapter 5.35 of the Municipal Code.
SECTION 4. An administrative modification is approved for Palm Springs
Associated Organica to operate a medical cannabis collective or cooperative at 400
East Sunny Dunes, Palm Springs, California, 92262 as the property is located within
250 feet of nine residentially-zoned properties. However, physical barriers exist
between the property and the residential properties. The City Council finds:
a. The requested modification is consistent with the general plan, any
applicable specific plan, and the overall objectives of the Zoning Code; and
b. The neighboring properties will not be adversely affected as a result of the
approval or conditional approval of the modification; and
Resolution No. 23852
Page 3
C. The approval or conditional approval of the modification will not be
detrimental to the health, safety, or general welfare of persons residing or working on
the site or in the vicinity of the site; and
d. The approval of the modification is justified by environmental features, site
conditions, location of existing improvements, or historic development patterns of the
property or neighborhood.
SECTION 5. The Medical Cannabis Cooperative/Collective permit is valid for
one year, and the permittee is responsible for and required to reapply for a renewal
permit 30-days prior to the expiration, pursuant to Chapter 3.35 of the Palm Springs
Municipal Code and/or other regulation approved by the City Manager.
SECTION 6. The Medical Cannabis Cooperative/Collective shall be open and
operating for at least four (4) hours, five (5) days a week within sixty-five (65) days of
the effective date of this Resolution.
SECTION 7. This Resolution shall take effect on the July 17, 2015.
PASSED APPROVED AND ADOPTED BY THE PALM SPRINGS CITY
COUNCIL THIS 15TH DAY OF JULY, 2015.
DAVID H. READY, NAGER
ATTEST:
7
AMES THOMPSON, CITY CLERK
Resolution No. 23852
Page 4
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. 23582 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 the 15`h day of July, 2015, by
the following vote:
AYES: Councilmember Foat, Councilmember Hutcheson, Councilmember Mills
and Mayor Pro Tern Lewin.
NOES: None.
ABSENT: Mayor Pougnet.
ABSTAIN. None.
J es Thompson, City Clerk City of Palm Springs, Californiao9/,4zn Is
RESOLUTION NO. 23852
EXHIBIT A
Palm Springs Associated Organica
July 15, 2015
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 permit described Palm Springs
Associated Organica; except as modified with the conditions in this
Resolution, including exhibits thereto.
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 3.35 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
or employees to attach, set aside, void or annul, an approval of the City of
Palm Springs, its legislative body, advisory agencies, or administrative
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Medical Cannabis CooperativetCollective July 15,2015
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 Risk 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 as a result of any and all issues of
such approval or operations.
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 any claim or any action
or proceeding at law or equity. 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,
landscape, irrigation, lighting, signs, walls, and fences between the curb and
property line, including sidewalk or bikeway easement areas that extend onto
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Medical Cannabis Cooperative/Collective July 15, 2015
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, non-payment of any portion of taxes
due, etc) regarding the operation of the establishment; as determined by the
City Manager, Chief of Police, or the Director of Building and Safety, may
result in proceedings to revoke the Permit. In addition, any violation 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. The cooperative or Collective shall
comply with the provisions of Section 11.74 Noise Ordinance of the Palm
Springs Municipal Code. Violations may result in revocation of this 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 taw, including
without limitation the Attorney General Guidelines.
ADM 13. Hours of Operation Limited. The cooperative shall maintain operational hours
as allowed by Chapter 5.35 of the Palm Springs Municipal Code.
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Medical Cannabis Cooperative/Collec8ve July 15,2015
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 obtain and
maintain a valid State of California Sales Permit with the business address
located in the City of Palm Springs, and 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 Condition 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. All
cannabis grown, cultivated, stored, or in any way maintained on the site of (1)
the cooperative or collective or (2) a Medical Cannabis Cultivation Facility
authorized under the Palm Springs Municipal Code shall not be sold,
conveyed, transferred, or dispensed to any person who is not member of the
cooperative or collective or a caregiver of such member, or to any person for
sale, distribution, conveyance, transfer, or dispensing outside of the City of
Palm Springs,
ADM 20. Signage 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.
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Medical Cannabis Cooperative/Collective July 15,2015
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 Municipal Code
and the Palm Springs Zoning Code.
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, cultivated
at a permitted Medical Cannabis Cultivation Facility located in the City of
Palm Springs pursuant to Section 5.35.340 of the Palm Springs Municipal
Code, or cultivated 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 other City departments.
ADM 29, Fully comply with and meet all operating criteria required pursuant to the
Compassionate Use Act, state law, the Attorney General Guidelines, the
provisions of Chapter 5.35 of the Palm Springs Municipal Code, and any
specific, additional operating procedures and measures as may be imposed
as conditions of approval of the regulatory permit, and all requirements set
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Medical Cannabis Cooperative/Collective July 15,2015
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.
ADM 30. Security Recordings.. Recordings made by the security cameras shall be
made available to the City Manager or the Chief of Police 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 Chapter 5.35 of the Palm Springs
Municipal Code shall constitute a violation of the Municipal Code and shall be
enforced pursuant to the provisions of the 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 Chapter 5.35 of the Palm Springs Municipal Code, any
condition or approval, or any agreement or covenant as required pursuant
to Chapter 5.35 of the Palm Springs Municipal Code; 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 240 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
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Medical Cannabis Cooperative/Collective July 15,2015
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.
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 60% 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.
ADM 35. Name. Applicant shall use the name `Palm Springs Associated Organica" to
distinguish the cooperative or collective from a previous entity operating in the
City of Palm Springs without a valid permit.
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 Required. 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
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Medical Cannabis Cooperative/Collective July 15,2015
Riverside County Clerk prior to the final City action on the permit (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.dfg.ca.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 Required. No signs are approved by this action. Separate
approval and permits shall be required for all signs in accordance with
Chapter 5.35 of the Palm Springs Municipal Code. The applicant shall submit
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 commercialfretail patrons
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Medical Cannabis Cooperative/Collective July 15, 2015
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