HomeMy WebLinkAboutCC Minutes 2022-01-19 CITY COUNCIL
MINUTES
Cathedral City
Special Meeting
Wednesday, January 19, 2022
2:00 PM
Pursuant to AB 361 and Cathedral City Resolution 2022-06 this meeting was conducted by
videoconference.
• CALL TO ORDER
The meeting was called to order at 2:00 PM by Mayor Pro Tern Rita Lamb.
• ROLL CALL
Attendee Name Title Status Arrived
Ernesto Gutierrez Mayor Absent
Rita Lamb Mayor Pro Tern Remote
Mark Carnevale —i Councilmember Remote
Nancy Ross __t Councilmember Remote I
Raymond Gregory ( Councilmember Remote
• AGENDA FINALIZATION
1. AGENDA ITEMS
A. Tour de Palm Springs 2022
Recommendation: To approve Special Use Permit #21-014 and allow the Tour
de Palm Springs to utilize city streets within Cathedral City
on February 12, 2022.
M.O. 2022-12
A motion was made by Councilmember Gregory and seconded by Councilmember
Carnevale to approve Special Use Permit #21-014 and allow the Tour de Palm
Springs to utilize city street within Cathedral City on February 12, 2022, with no
waiver of fees.
RESULT: APPROVED [UNANIMOUS]
MOVER: Raymond Gregory, Councilmember
SECONDER: Mark Carnevale, Councilmember
AYES: Rita Lamb, Mark Carnevale, Nancy Ross, Raymond Gregory
ABSENT: Ernesto Gutierrez
C. Report from the Cannabis Task Force Meeting of November 29, 2021
Recommendation: This item is presented for information, discussion and
direction only.
Y
Charles McClendon, City Manager, reported that the Cannabis Task Force met
on November 29, 2021. At their meeting, the Task Force had a Cannabis Tax
update and discussion, and they also discussed the requirement to obscure
windows in retail businesses.
City Manager McClendon reported that during the discussion on the Tax Update,
the Task Force primarily focused on cultivation taxes stemming from a request
from a potential large cultivator to consider some type of tax relief. He indicated
that the Task Force had a fairly lengthy discussion and came up with a number of
ideas. The Task Force did not make a specific recommendation to bring to the
City Council, they instead asked that a summary of the discussion be provided as
follows:
• Redefining the taxable cultivation area to include only the canopy space.
This would give a small break - probably about 10% - to existing as well
as future cultivators.
• Developing a maximum square footage upon which to apply the tax. This
would give a break to future large cultivators, but all existing cultivators
are paying on their entire area - there is no cap.
• Reduce the overall rate from $15 down to some other amount. This would
benefit all growers equally but would reduce revenue to the City.
• It was noted that the smallest growers have less opportunity to spread
their operating costs and there was some interest in a break for the small
operators, including a reverse tier system.
• The tier structure used in Desert Hot Springs and Coachella was also
noted as a possible solution for the large operators. The current average
square footage among Cathedral City cultivators is about 6,000 square
feet.
• Delaying charging the tax until the crop is actually moved in. Currently the
tax begins at Certificate of Occupancy (COO) and there is normally some
down time before the business starts generating revenue. All current
operators were assessed beginning at COO.
• Some type of rebate or true up to reflect the actual sale of the product.
The current voter approved language requires a per square foot
assessment.
City Manager McClendon indicated that the Planning Commission has
recommended to remove the requirement to obscure windows in cannabis retail
businesses. The Task Force recommended that staff explore whether or not
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there are any provisions in state law related to the topic and also noted that
allowing visibility may allow for more creativity by the owner in designing their
store front and there may be public safety advantages to allowing more visibility.
City Manager McClendon stated that staff has confirmed that there are no state
provisions regarding this requirement.
Kenneth Churchill, owner of West Coast Cannabis Club, thanked the City for
being a leader in the cannabis industry. He expressed his concern with the retail
tax rate in addition to all of the other taxes the cannabis industry is required to
pay as well as the black market they are having to compete with. He requested
the City Council offer some tax relief and lower the tax rate to 5%.
Scott Rusczyk, Coachella Valley Cannabis Alliance Network, encouraged the
City to take some type of action to help the industry and offered their assistance.
Rich Eaton, The Vault, concurred with the comments that were made by Mr.
Churchill. He reiterated that he feels that it would be beneficial to eliminate the
requirement to obscure the windows and would like to see consumption lounges
allowed.
Charles McClendon, City Manager, indicated that the Cannabis Task Force will
be discussing outdoor consumption lounges at a later date.
Thomas Riddle, CEO of a large cannabis operation in town, requested a tax
break for large cannabis operators as well as small operators.
Maria Scagliotti, indicated that she has resigned from the Cannabis Task Force.
She stated that she has been encouraging tax reductions for quite some time as
well as allowing outdoor consumption lounge. She announced that she is closing
her business due to the lack of traffic and clientele willing to pay what they have
to with the taxes as they are. She stated the dispensaries are the only cannabis
business that can't write off operating costs.
It was the consensus of the City Council to direct staff to move forward with
discussions with the Cannabis Task Force with regard to the items that have
been brought up during this meeting so they can formalize a recommendation for
the City Council to consider. Staff will provide an update of their progress to the
City Council within 3 months.
D. Special Events: Fall 2021 Recap and Spring 2022 Preview
Recommendation: This item is presented for information, discussion and
direction only.
Chris Parman, Communications and Events Manager provided a recap of the fall
special events including information about the entertainment, attendance,
finances, management, strengths and challenges and the economic impact
estimates. He also provided a preview of the special events that are coming to
Cathedral City in the Spring of 2022.
This is a presentation only, no formal action was taken.
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ADJOURN
Mayor Pro Tern Rita Lamb adjourned the January 19, 2022, Special City Council Meeting in
memory of the late Mayor Greg Pettis.
Mayor, City of Cathedral City City Clerk ity of Cathedral City
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