City Council Study Session

CITY COUNCIL CHAMBERS 68-700 AVENIDA LALO GUERRERO CATHEDRAL CITY, CA 92234 CITY COUNCIL STUDY SESSION MINUTES Wednesday, February 28, 2018 STUDY SESSION 4:30 PM • CALL TO ORDER Mayor Stan Henry called the Study Session Meeting of February 28, 2018, to order at 4:30 p.m. • ROLL CALL Mayor Stan Henry, Mayor Pro Tem Gregory S. Pettis, Council Member Shelley Kaplan, Council Member Mark Carnevale, and Council Member John Aguilar Present 5 - • AGENDA FINALIZATION • STATEMENT OF PARTICIPATION BY THE DEPUTY CITY CLERK 1. PUBLIC COMMENT 2. STUDY SESSION 2.A. 2018-57 General Plan Amendment No. 17-002 Change of Zone No. 17-003 Palm Canyon Group City Manager Charles McClendon introduced the item and gave a brief overview of what has taken place since the last Council Meeting, which was held on Wednesday, January 24, 2018. Community Development Director Pat Milos stated that the Subcommittee made up of Mayor Stan Henry and Council Member Shelley Kaplan met with Staff and the Palm Canyon Group to discuss options zone classifications and other options. The following is a list of options that are before the Council for consideration: Use Restrictions: 1. Project will be restricted to only 2 cultivation licenses at one time, both of which must be tied to bona fide medical, educational or research institutions / uses and the cannabis cultivated may not be sold to the public or to dispensaries selling to the public. 2. Each cultivation license will be limited to a maximum cultivation space as permitted under state law (est. 22,000) with the sq ft limit measured by the canopy or space directly related to cultivation of cannabis (i.e. not the lobby, offices, bathrooms and similar ancillary space). 3. Project will be restricted to total space used by cannabis businesses of 125,000 sqft – with space allocated to cultivation measured as stated prior. Page 1Cathedral City

February 28, 2018City Council Study Session STUDY SESSION 4. All cannabis uses remain subject to requirements of City’s municipal code and administrative regulations (including Cannabis Tax and fee ordinances) . Restrictive Covenant Deal Points: 1. Developer will provide space for 20 parking slots and a trail head in addition to the Parcel B open space and public access easement. 2. City engineering will provide a diagram and any specifications necessary for the parking and trail head area to be an attachment to the Restrictive Covenant. Reimbursement for Public Improvements: 1. Owner to pay to city 25% of all outstanding obligations owed to city prior to City issuance of grading permit. If not paid, City has no obligation to issue grading permit. 2. Owner to pay all unpaid remaining balance of outstanding obligations owed to City prior to City issuance of first building permit for project. If not paid, City has no obligation to issue any building permit. Memorandum of Understanding: 1. Prior to second reading of the zoning ordinance, the parties will draft an MOU memorializing the agreement of the developer to undertake two points. MOU to be considered for approval by Council at second reading of zoning ordinance. 2. Developer will agree to participate in a local hire preference program for the uses it develops, but cannot / will not impose this obligation on its tenants if they refuse. Local hiring preference will be implemented by advertising jobs within Cathedral City to Cathedral City residents only for 15 concurrent days prior to general job advertising. 3. Developer will not oppose formation of local USCW union in the uses it retains, but cannot/will not impose this obligation on its tenants if they refuse. 4. Developer will recommend the above two points to tenants. Chris Vaughn gave an overview of their proposed Zone Change and the project they foresee on that property. Mr. George Baker stated that he would like to see the following changes: At least 4 licenses utilizing the same 44,000 square foot and 150,000 sq foot for cannabis. Grow facility should not be restricted to selling to non-profit only. Monetary value to trailhead property. Mayor Stan Henry suggested that he donate the land to the conservancy and get a tax-right-off without taking on liability. He questioned if the property owner is wanting to move forward with this project. Alan Carvalho, Cathedral City, was called to speak. He is in favor of the re-zone. He is not in favor of more residential. Richard Altman, was called to speak. He is in favor of the re-zone and seeing this project move forward. Randy Winbigler, Cathedral City, was called to speak. He feels that this is not only a business decision but a residents quality of life decision. He told the Council to keep up the good work. It was the consensus of the City Council that the next steps be as follows: Page 2Cathedral City

February 28, 2018City Council Study Session STUDY SESSION Developer will provide a finalized covenant that everyone agrees to along with an MOU. These documents will come to the City Council concurrently. If was also the consensus of the City Council to agree wth the following amendments: 44,000 feet as opposed to two licenses. Not interested in counting the dedication of land in the reimbursement program. 125,000 square foot of cannabis remains the same. No restrictions for non profit sales. Better language will be included to make it more clear. City Attorney Eric Vail will work with Mr. Baker's attorney on the required documents. 2.B. 2018-41 Review of Cathedral City Municipal Code Chapter 9.80 "Accessory Structures, Structure Heights, Yards, Walls and Fencing". Community Development Director, Pat Milos, gave an overview of the Municipal Code Chapter 9.80. It was the consensus of the City Council to direct staff to bring back a Code Amendment to include a list of approved materials that may be acceptable that will be reviewed through a standard operating policy on a case by case basis with an emphasis on consistency with the existing building architecture. 2.C. 2018-43 Discussion of Council Position on SB 946 It was the consensus of the City Council to send a letter in opposition of SB 946 signed by the Mayor. It should be sent to the Author, Speaker and Minority Leader. 2.D. 2018-55 Support for Propositions 68 and 69 It was the consensus of the City Council to direct staff to prepare the following: Resolution of Support for SB 68 Resolution of Support for SB 69 and Opposing the Repeal of SB 1 Resolution in Opposition of the Tax Fairness, Transparenty and Accountability Act of 2018 All of these Resolutions will come back to the City Council for approval at a future meeting. 2.E. 2018-56 Support for AB2439 It was the consensus of the City Council to prepare a Resolution of support for AB 2439. 3. CLOSED SESSION The City Council adjourned to Closed Session at 5:50 p.m. to discuss the following items listed on the Agenda. 3.A. 2018-45 Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8. Property Location: 5.7 Acres East of Van Fleet and South of East Palm Canyon Drive with an APN of 687-500-018. Negotiating Parties: Successor Agency to the former Redevelopment Agency and the City Urban Revitalization Corporation Property Owner: City Urban Revitalization Corporation Page 3Cathedral City

February 28, 2018City Council Study Session STUDY SESSION Under Negotiations: Price & Terms on Purchase, Sale, Exchange or Lease of Real Property 3.B. 2018-44 Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8. Property Location: Seven (7) Parcels in the area along Cathedral Canyon Drive and the Northeast corner of Cathedral Canyon Drive and C Street with APN's of 687-213-001, 003, 004, 687-213-007, 008, and 687-213-010 & 011. Negotiating Parties: City of Cathedral City and the Housing Successor Agency Property Owner: Housing Successor Agency Under Negotiations: Price & Terms on Sale of Real Property 3.C. 2018-42 City Council: Public Employee Performance Evaluation Per Government Code Section 54957 (B) Title: City Manager The City Council reconvened at 6:30 p.m. City Attorney Eric Vail announced that the City Council met in Closed Session to discuss the following items: Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8 for the following property locations: 5.7 Acres East of Van Fleet and South of East Palm Canyon Drive with an APN of 687-500-018. Seven (7) Parcels in the area along Cathedral Canyon Drive and the Northeast corner of Cathedral Canyon Drive and C Street with APN's of 687-213-001, 003, 004, 687-213-007, 008, and 687-213-010 & 011. There was no reportable action taken. The last item will be heard after the Regular City Council Meeting. ADJOURN Mayor Stan Henry adjourned the Study Session Meeting of February 28, 2018, at 6:30 p.m. _______________________________ STANLEY E. HENRY, Mayor ATTEST: _______________________________ GARY F. HOWELL, City Clerk Page 4Cathedral City

CITY COUNCIL STUDY SESSION CITY COUNCIL CHAMBERS 68-700 AVENIDA LALO GUERRERO CATHEDRAL CITY, CA 92234 AGENDA 4:30 PMWednesday, February 28, 2018 STUDY SESSION • CALL TO ORDER • ROLL CALL • AGENDA FINALIZATION At this time, the City Council may announce any items being pulled from the agenda or continued to another date. • STATEMENT OF PARTICIPATION BY THE DEPUTY CITY CLERK 1. PUBLIC COMMENT Public Comment is limited to 3 minutes per person. 2. STUDY SESSION Normally, no action is taken on Study Session items; however, the City Council reserves the right to give specific policy direction and take specific action as necessary. Presentations will be limited to 10 minutes unless other provisions are made in advance. 2.A. General Plan Amendment No. 17-002 Change of Zone No. 17-003 Palm Canyon Group 2018-57 Receive a Sub Committee Update, Deliberate and provide Staff Direction Recommendation: 2.B. Review of Cathedral City Municipal Code Chapter 9.80 "Accessory Structures, Structure Heights, Yards, Walls and Fencing". 2018-41 Staff recommends that the City Council receive an update and review Cathedral City Municipal Code Chapter 9.80 Accessory Structures, Structure Heights, Yards, Walls and Fencing and provide staff direction. Recommendation: 2.C. Discussion of Council Position on SB 9462018-43 This item is provided for information, discussion and direction only. Recommendation: Page 1Cathedral City

2.D. Support for Propositions 68 and 692018-55 This item is provided for information, discussion and direction only. Recommendation: 2.E. Support for AB24392018-56 This item is provided for information, discussion and direction only. Recommendation: 3. CLOSED SESSION The City Council may hear all or some of the following Closed Session Items if time permits, otherwise they will be heard at the end of the City Council Meeting. 3.A. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8. Property Location: 5.7 Acres East of Van Fleet and South of East Palm Canyon Drive with an APN of 687-500-018. Negotiating Parties: Successor Agency to the former Redevelopment Agency and the City Urban Revitalization Corporation Property Owner: City Urban Revitalization Corporation Under Negotiations: Price & Terms on Purchase, Sale, Exchange or Lease of Real Property 2018-45 3.B. Conference with Real Property Negotiator Pursuant to Government Code Section 54956.8. Property Location: Seven (7) Parcels in the area along Cathedral Canyon Drive and the Northeast corner of Cathedral Canyon Drive and C Street with APN's of 687-213-001, 003, 004, 687-213-007, 008, and 687-213-010 & 011. Negotiating Parties: City of Cathedral City and the Housing Successor Agency Property Owner: Housing Successor Agency Under Negotiations: Price & Terms on Sale of Real Property 2018-44 3.C. City Council: Public Employee Performance Evaluation Per Government Code Section 54957 (B) Title: City Manager 2018-42 ADJOURN The next Study Session Meeting is scheduled to be held on Wednesday, March 14, 2018 at 4:30 p.m. NOTES TO THE PUBLIC: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office at (760)770-0322. Assisted-listening devices are available at this meeting. Ask the City Clerk if you desire to use this device. Notification at least 48 hours prior to the meeting or the time when services are needed will assist city staff in assuring reasonable arrangements can be made to provide accessibility to the meeting or service. Page 2Cathedral City

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