CITY COUNCIL REGULAR MEETING - Jul 09, 2024 (Agenda)

1 AGENDA CITY OF CALIFORNIA CITY CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY REGULAR MEETING TUESDAY JULY 9, 2024 REGULAR MEETING @ 5:00 PM COUNCIL CHAMBERS & VIA ZOOM 21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505 If you need special assistance to participate in this meeting, contact the Acting City Clerk at (760) 373-7140 or via email at Cityclerk@californiacity-ca.gov. We request a 24-hour notification prior to the meeting in order for the city to make reasonable arrangements to ensure accessibility (28 CFR 35.102-35.104 American Disabilities Act Title II). ______________________________________________________________________________________ Zoom instructions and notes: Web Link: https://us06web.zoom.us/j/85692956293 Meeting ID: 856 9295 6293 1. Public can dial into the Zoom line: a. One tap mobile: +16694449171,87254527178# US b. Dial the following number: +1 564 217 2000 US 2. Comments a. Public must join Zoom meeting to comment b. Keep your mic on Mute until you are requested to speak c. Use the “Raise your Hand” button to request to speak or, d. Send a chat request to City Clerk for request to speak e. When requested to speak state your name for the record Kelly Kulikoff – Mayor Ronald Smith – Mayor Pro Tem Jim Creighton – Councilmember Michael Kulikoff – Councilmember LaShelle Cooper – Councilmember

2 f. Re-mute when your time to speak has ended The public is urged to listen to the meeting in a quiet place to avoid background noise. We also request the public to MUTE your audio device when not commenting to avoid disruption during meeting. ** At this time, please take a moment to turn off your cell phones ** 4:30 PM CLOSED SESSION CALL TO ORDER ROLL CALL Councilmembers: Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith & Mayor Kulikoff. APPROVAL OF AGENDA PUBLIC COMMENTS Members of the public are welcome to address the City Council only on those items listed on the Closed Session agenda. Each member of the public will be given (3) three minutes to speak. CLOSED SESSION CS1. CONFERENCE WITH LEGAL COUNSEL – EXISTING LITIGATION The People ex rel. City of California City v. Macedonio Case No. BCV-23-102139 REPORT OUT OF CLOSED SESSION CITY COUNCIL CONVENES TO REGULAR MEETING 5:00 PM REGULAR MEETING CALL TO ORDER PLEDGE OF ALLEGIANCE/INVOCATION ROLL CALL Councilmembers: Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, Mayor Kulikoff. DEPARTMENTAL REPORTS a. Treasurer’s Report b. Housing c. Cannabis d. OHV CITY CLERK REPORTS/RECEIVED COMMUNICATIONS CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS

3 PRESENTATIONS  Granicus Live Manager Functionality (E-comments). PUBLIC COMMENT This portion of the meeting is reserved for the public to address the City Council on any matter NOT on the agenda and over which the City Council has jurisdiction. Comments are to be limited to three (3) minutes. The City Council will receive the comments but cannot engage in back-and-forth discussion with the public or make any decision. The City Council can direct staff to bring the item back to a future agenda for discussion. CONSENT CALENDAR WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Consideration to waive full-text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion. All items on the consent calendar are considered routine, and non-controversial and will be approved by (1) one motion if no member of the council, staff, or public wishes to comment or ask questions. Public comments are to be limited to (3) three minutes. Roll call vote required. CC1. Approve City Check Register dated 6/21/2024 through 7/3/2024 CC2. Approve Minutes of the Regular City Council Meeting of June 25, 2024. CC3. Ratification of Amendments to the Municipal Code to Regulate Cannabis by Second Reading and Adoption of Ordinance No. 24-814. CITY MANAGER REPORT CONTINUED BUSINESS CB1. Capitol Advocacy Program. Staff Report: Latisha Lamberth, Acting City Manager Recommended Action: Staff kindly request that the City Council Approves the Extension of the CAP Contract so that We May Continue to Work Together Towards the Growth and Success of California City. NEW BUSINESS NB1. Discussion and Direction on E-comments. Report: Councilmember Creighton Recommended Action: That the City Council direct staff to read E-Comments and Emails Aloud During the Appropriate Portion of the Agenda up to the three (3) Minutes Allotted All Other Commenters. NB2. Monument Sign for City Hall. Report: Councilmember Creighton Recommended Action: Council to Approve the Contest, Set Dates for the Contest Start and End, and Determine the Awards for First, Second, and Third Place Selections.

4 COUNCILMEMBER COMMENTS, AGENDA REQUESTS, AND AB1234 REPORTS This portion of the meeting is reserved for council members to present information, announcements, and items that have come to their attention. The Brown Act precludes Council, staff, or public discussion. Short staff responses are appropriate. The Council will take no formal action. A Council member may request the City Clerk to calendar an item for consideration at a future meeting or refer an item to staff. ADJOURNMENT AFFIDAVIT OF POSTING I, DARYL A. BETANCUR, City Clerk for the City of California City, California, DO HEREBY CERTIFY under penalty of perjury under the laws of the State of California, that the foregoing notice was posted at the City of California City, City Hall bulletin and all other official bulletin boards and the City’s website at least 72 hours prior to the meeting in compliance with the provisions of the Brown Act. board at 21000 Hacienda Boulevard, California City, CA and on all official City bulletin boards. Dated: July 5, 2024 _____________________________ DARYL A. BETANCUR, MPA, MMC City Clerk

Balance on Net Balance on Percent 4/30/2024 Transactions 5/31/2024 of Total Bank of the Sierra -- General Checking 3,643,699$ (298,315)$ 3,345,384$ 21.66% Bank of the Sierra -- Cannibas Checking 322,977$ 247,076$ 570,053$ 3.69% Sub-Total Operating Accounts 3,966,676$ (51,239)$ 3,915,437$ Balance on Net Balance on Percent 4/30/2024 Transactions 5/31/2024 of Total Local Agency Investment Fund (122) 5,938,850$ -$ 5,938,850$ 38.45% Kern County Investment Fund (20202) 4,568,983$ 13,778$ 4,582,761$ 29.67% Multi-Bank Securities (CD Manager) 1,006,498$ 2,406$ 1,008,903$ 6.53% Sub-Total Investment Accounts 11,514,331$ 16,184$ 11,530,515$ Total City Operating Funds 15,481,007$ (35,055)$ 15,445,952$ 100.00% Checking & CD Accounts 4/30/2024 Net Transactions 5/31/2024 Housing Corp. -- Bank of the Sierra, Checking 2,319,608$ 20,728$ 2,340,336$ 90.54% Housing Corp. -- Bank of the Sierra, CD 7653 108,182$ 420$ 108,602$ 4.20% Housing Corp. -- Bank of the Sierra, CD 7654 135,316$ 525$ 135,841$ 5.26% Total Housing Corporation Funds 2,563,106$ 21,673$ 2,584,779$ 100.00% Checking & CD Investment Accounts 4/30/2024 Net Transactions 5/31/2024 SDI -- Bank of the Sierra, Checking 526,685$ -$ 526,685$ 0.61% SDI -- Bank of the Sierra CD 252,956$ 982$ 253,938$ 0.29% SDI -- US Bank Investments * 84,928,021$ 526,302$ 85,454,322$ 99.09% Total SDI Agency Funds 85,707,661$ 527,284$ 86,234,945$ 100.00% Checking & Investment Accounts 4/30/2024 Net Transactions 5/31/2024 Successor -- Bank of the Sierra, Checking 114,680$ 7,500$ 122,180$ 12.41% RDA/Successor -- US Bank Investments 862,084$ -$ 862,084$ 87.59% Total Successor Agency Funds 976,764$ 7,500$ 984,264$ 100.00% California City, California 93505 TREASURER'S MONTHLY REPORT OF INVESTMENT May 2024 The values presented in this report are as of the last bank day of the month and are only a snapshot in time. The General Funds investment portfolio consists of funds for operations, Capital Improvement Projects (CIP), water rate stabilization, administration replacements and reserves. General Operating Accounts General Investment Accounts Restricted Housing Corporation Accounts Restricted SDI Accounts Note: Interest earned from the SDI CD is directly deposited into the SDI checking account monthly. Restricted RDA/Successor Agency Accounts 1 of 2

INVESTMENT POLICY * Contact City Finance Manager for US Bank investment breakdown. 4/30/2024 5/31/2024 Beginning Market Value 85,687,420 84,928,021 Ending Market Value 84,928,021 85,454,322 (759,399) 526,302 4/30/2024 5/31/2024 Beginning Market Value - - Ending Market Value - - - - 4/30/2024 5/31/2024 Beginning Market Value 1 1 Ending Market Value 1 1 - - 4/30/2024 5/31/2024 Beginning Market Value 1 1 Ending Market Value 1 1 - - 4/30/2024 5/31/2024 Beginning Market Value 862,082 862,082 Ending Market Value 862,082 862,082 - - Total RDA/Successor Investment Assets 862,084 862,084 Total "US Bank" Investment Assets 85,790,105 86,316,406 California City, California 93505 Market Value Summary - SUCCESSOR AGENCY Proj Area TAX INTEREST TREASURER'S MONTHLY REPORT OF INVESTMENT May 2024 The Treasurer shall invest the City's monies as permitted in the Citie's approved investment policy and approval of both the City Manager and Finance Director. The Treasurer shall consider current and projected cash needs in making such investments. US Bank SDI Account Market Value Summary - CUSTODIAN ACCOUNT Investment Results (Acct. Number 104388-010) US Bank RDA/Successor Agency Accounts Market Value Summary - REDEVELOPEMENT AGENCY PROJ AREA TAX Investment Results (Acct. Number 211146000) Investment Results (Acct. Number 211146001) Market Value Summary - SUCCESSOR AGENCY Proj Area TAX PRINCIPAL Investment Results (Acct. Number 211146002) Market Value Summary - SUCCESSOR AGENCY Proj Area TAX RESERVE Investment Results (Acct. Number 211146003) 2 of 2

COUNCIL AGENDA ITEM July 9, 2024 PREPARED BY : Nicole Jarmon-Simmons/ Housing Manager SUBJECT : Desert Jade & Legends Housing BACKGROUND/ DISCUSSION Desert Jade Currently have 94 apartments filled. 1 Unit are still undergoing rehab (flooring) 1 unit vacant ready to be rented Waitlist currently has 80 applicants. On July 4th, 2024, Desert Jade had their annual 4 th of July potluck. Legends Currently has 5 apartments and 5 houses filled. 1 house undergoing rehab (flooring). Waitlist is combined with Desert Jade

DEPARTMENT REPORT COUNCIL AGENDA ITEM JULY 2024 PREPARED BY: Inge Elmes, Cannabis Tax Administrator SUBJECT: CANNABIS MONTHLY DEPARTMENT REPORT MONTHLY ACTIVITY • A total of fifteen Cannabis Permit renewals were paid and processed. The city has sent email reminders to the businesses that have not renewed their permits to date. • Two facilities received their Certificate of Occupancy and were issued cannabis permits. • Out of the seven Notice of Violations issued, three submitted appeals, one additional business is pending. All will go through due process. The amounts owed total $252,542.02 in back taxes, which include penalties and interest due to the city, based on audit determination letters issued by Core Compliance. • The additional three businesses that received Notice of Violations letters, in which the city received no response, have been submitted to the city’s legal team for further action. Those additional amounts owed to the city total $244,135.39. ONGOING ACTIVITY • Staff is collectively working to review all facilities for compliance and good standing. • Staff continues to collaborate in compliance efforts and compiling correct data. • Staff is working on updating cannabis spreadsheet with accurate information. QUARTERLY TAX REPORT Current taxes collected to date for FY 23/24 (does not include 4th quarter): • Cultivation - $198,502.06 • Non-Cultivation - $301,610.78 • Penalties & Interest - $6,913.16 • Cannabis Back Taxes - $67,719.48

DEPARTMENT REPORT COUNCIL AGENDA ITEM JULY 2024 PREPARED BY: Inge Elmes, OHV Manager SUBJECT: OHV MONTHLY DEPARTMENT REPORT Events During the summer months, the season slows down significantly due to the extreme weather. The next major holiday will be the start of the season opener in September for Labor Day, weather permitting. Operations The new OHV Permit Season began July 1, 2024. Staff is equipped with new permits, application and passes that run from July 1, 2024 – June 30, 2025. Borax Bill Park & Station Visitor Center will be open Thursday – Sunday all summer. Manager Updates G23 grants for Grounds Operation, Education & Safety, and Law Enforcement will close in September, reimbursements will be submitted within the 120-day close out period. Focus is currently on finalizing budgets for the upcoming G24 grant cycle and FY 24/25 OHV Permit Program. Finance Report For the month of June, OHV sales totaled $1,763.00 . These numbers are actuals and reflect only amounts received within each month. Please refer to Monthly Permit Sales report for FY totals. *Not all proceeds are deposited in the same month. **OHV sales are deposited to specific OHV Permit Program GL revenue codes #29-3992 through #29-3998. Please refer to the financial statement for details. ***Some merchandise was purchased by staff at a discounted rate. All sales for merchandise are allocated to GL revenue code 29-3691.

1 MINUTES CITY OF CALIFORNIA CITY CITY COUNCIL/ HOUSING AUTHORITY/ SUCCESSOR AGENCY REGULAR MEETING TUESDAY JUNE 25, 2024 REGULAR MEETING @ 5:00 PM COUNCIL CHAMBERS & VIA ZOOM 21000 HACIENDA BLVD., CALIFORNIA CITY, CA 93505 If you need special assistance to participate in this meeting, contact the Acting City Clerk at (760) 373-7140 or via email at Cityclerk@californiacity-ca.gov. We request a 24-hour notification prior to the meeting in order for the city to make reasonable arrangements to ensure accessibility (28 CFR 35.102-35.104 American Disabilities Act Title II). ______________________________________________________________________________________ 4:30 PM CLOSED SESSION CALL TO ORDER: Mayor Kulikoff called the meeting to order at 4:33 p.m. ROLL CALL Councilmembers: Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith & Mayor Kulikoff. APPROVAL OF AGENDA: Councilmember Creighton moved to approve agenda with the following changes: removal of item SB9; moving item CB3 to CB2; and to hear item NB3 after item CB2. Motion seconded by Mayor Pro Tem Smith. Kelly Kulikoff – Mayor Ronald Smith – Mayor Pro Tem Jim Creighton – Councilmember Michael Kulikoff – Councilmember LaShelle Cooper – Councilmember

2 AYES: Councilmembers Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: None ABSENT: None MOTION CARRIES: 5-0 PUBLIC COMMENTS Members of the public are welcome to address the City Council only on those items listed on the Closed Session agenda. Each member of the public will be given (3) three minutes to speak. there were no public comments on the closed session agenda. CLOSED SESSION CS1. CONFERENCE WITH LEGAL COUNSEL – POTENTIAL LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 2 Potential Cases Significant exposure to potential litigation CS2. CONFERENCE WITH LEGAL COUNSEL – PENDING LITIGATION PURSUANT TO GOVERNMENT CODE SECTION 54956.9 (a) Legal Representative: Kathryn B. Fox Number of Cases: One (1) Matter Jacqueline Craig v. City of California City Kern County Superior Court Case No. BCV-22-100976 REPORT OUT OF CLOSED SESSION The City Council reconvened from closed session at 5:17 p.m. Deputy City Attorney Karin A. Schambeck reported that the City Council entertained two items for closed session and that on item CS1, there was no reportable action. However, on item CS2, the Council by motion presented by Mayor Pro Tem Smith, seconded by Councilmember Creighton had given direction to staff with respect to a settlement. Mayor Pro Tem Smith moved to provide direction to staff relative to settlement. Motion seconded by Councilmember Creighton. AYES: Councilmembers Creighton, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: Councilmembers Cooper & Kulikoff ABSENT: None MOTION CARRIES: 3-2 CITY COUNCIL CONVENES TO REGULAR MEETING 5:00 PM REGULAR MEETING

3 CALL TO ORDER: Mayor Kulikoff called the meeting to order at 5:18 p.m. PLEDGE OF ALLEGIANCE/INVOCATION: Pledge was led by audience with Pastor Moore offering the invocation. ROLL CALL Councilmembers: Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, Mayor Kulikoff. DEPARTMENTAL REPORTS a. Police b. Finance Departmental Reports were presented, received, and filed. Public comments on departmental reports were offered by Al Hudson, Shawn Bradley, J. M. Powers, and Jane Riding. CITY CLERK REPORTS/RECEIVED COMMUNICATIONS a. Original June 15, 2024 – From J. M. Powers – Impact on Residential Property Taxes with and without Measure B Parcel Tax. b. Original June 16, 2024 – From J. M. Powers – Inherent Weakness in Cal City Parcel Tax Measures Carries on with Measure B. c. Original June 17, 2024 – From J. M. Powers – Cal City Population, Housing, and Property Tax Trends and Forecasts. City Clerk Betancur stated that communications were received from Diane Perry regarding items CB2 and CB3. Also, communications were received by J. M. Powers. These communications were accordingly included in the agenda packet. CIVIC/COMMUNITY/ORGANIZATION ANNOUNCEMENTS Anthony Myers praised Acting City Manager Lamberth on a well-executed tortoise days event; there were other announcements regarding the backpack & job fair on August 10, summer breeze a day with our senior citizens; and monthly community ride on Wednesday, June 26 at Balsitis Park. PRESENTATIONS  Capital Advocacy Presentation  US Presentation-Evoly Meters Dana De Beaumont presented on behalf of CAP. Hassan Lantry presented on behalf of Evoly Meters. Public comments on these presentations were offered by John fisher, Kristy Mutch, Dwayne Vasquez, Al Hudson, Mark Hawkins, J. M. Powers, and Shawn Bradley. PUBLIC COMMENT This portion of the meeting is reserved for the public to address the City Council on any matter NOT on the agenda and over which the City Council has jurisdiction. Comments are to be limited to three (3) minutes. The City Council will receive the comments but cannot engage in back-and-forth discussion with the public or make any decision. The City Council can direct staff to bring the item back to a future agenda for discussion. Public comments from the floor were offered by DJ Twohig, Jessica R, Shawn Bradley, Al Hudson, Christy Mutch, J. M. Powers, John Fisher, Mary Wady, Tami Johnson, and unknown speaker.

4 Public comments from the floor were offered by Anthony Myers, John Fisher, Michelle Iverson, Kristy Mutch, Wayne Vasquez, Juanita Dennis, Randy Cody, Helen Cody, Tami Johnson, J. M. Powers, Al Hudson, Bridget Landy, and Shawn Bradley. CONSENT CALENDAR WAIVER OF FULL READING OF RESOLUTIONS AND ORDINANCES Consideration to waive full-text reading of all Resolutions and Ordinances by single motion made at the start of each meeting, subject to the ability of the City Council / Agency to read the full text of selected resolutions and ordinances when the item is addressed by subsequent motion. All items on the consent calendar are considered routine, and non-controversial and will be approved by (1) one motion if no member of the council, staff, or public wishes to comment or ask questions. Public comments are to be limited to (3) three minutes. Roll call vote required. CC1. Approve City Check Register dated 6/7/2024 through 6/20/2024 CC2. Approve Minutes of the Regular City Council Meeting of May 28, 2024, and the Special City Council Meeting of June 17, 2024. CC3. Agreement for the Collection of Special Assessments. Public comments on the consent calendar were offered by Tami Johnson. Mayor Pro Tem Smith moved to approve the consent calendar. Motion seconded by Councilmember Kulikoff. Mayor Pro Tem Smith, yes on CC1 and CC2, no on CC3. AYES: Councilmembers Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: None ABSENT: None MOTION CARRIES: 5-0 CITY MANAGER REPORT Acting City Manager Lamberth reported on the Junior Clinic at the golf course, which was attended by 16 children; spoke about the veteran’s event at the Strata Center, RPU elementary first grade students visited the residents and recited about five (5) poems; commented that there is also a report on ARPA funds, which was prepared by Interim Fire Chief Vincent on the reallocation of ARPA Funds; a report by Acting Police Chief Hayes for some additional equipment as well as a report by City Clerk Betancur on upgrades to the City’s website. There were Council comments relative to the amount of funds in the ARPA funds. Public comments on the City Manager’s report were offered by Michelle Iverson, Dwayne Vasquez, Mary Wady, and Al Hudson.

5 City Council recessed at 7:57 p.m. City Council reconvened at 8:09 p.m. PUBLIC HEARING PH1. Discussion of Ordinance No. 24-814, Amending the Municipal Code to Regulate Cannabis (First Reading & Introduction) a. Open Public Hearing b. Staff Report: Karin A. Schambeck, Deputy City Attorney c. Public Comment d. Close Public Hearing e. Discussion f. Recommended Action: Staff recommends that the City Council; 1) Open a public hearing and take testimonial and documentary evidence; 2) after receiving verbal and written testimony, close the public hearing; 3) Introduce and waive first reading of an Ordinance No. 24-814, Amending the California City Municipal Code to Regulate Cannabis; and 4) Take such additional, related, action that may be desirable. Deputy City Attorney Schambeck confirmed that this item had been trailed after the discussion portion of the public hearing. Hence, no public comments will be entertained since the public comment had been closed earlier. There was an extensive discussion relative to this item with Councilmember Creighton indicating he had received comments on this subject only from one person. Councilmember Creighton asked if the Council should get concurrence on every item in succession or some other process. Upon concurrence by all, Councilmember Creighton sought concurrence on each item at a time. Deputy City Attorney Schambeck interjected and informed the Council of a few changes in the current document v past documents in that there is a revised definition of the tax administrator, which was changed from the City Manager to the Finance Director with the other change having to do with what the Council wanted to remove what was previously, the item No. 4 which had to do with the Cannabis businesses providing a monthly itemized list of things that they had at their business and that is no longer in the proposal that is before the Council. By consensus, the Council concurred on each item one at a time. Mayor Pro Tem Smith asked that if the items that were deleted could be entertained as a separate motion. Mayor Pro Tem Smith moved to vote separately on the items that were deleted from the proposed ordinance. Motion seconded by Councilmember Kulikoff. Motion failed due to lack of second. Mayor Kulikoff restated the motion, which was to approve Ordinance No. 24-814 based on the Council’s consensus and direction provided on each item. Motion seconded by Councilmember Kulikoff.

6 AYES: Councilmembers Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: None ABSENT: None MOTION CARRIES: 5-0 Upon request by Mayor Pro Tem Smith, the record will reflect that although he is voting yes on the main motion, that he was in opposition to deleting items No. 8, 11, and 19. CONTINUED BUSINESS CB1. Second Reading of Ordinance No. 24-811, An Ordinance of the City Council of the City of California City, Amending Sections 9-2.501 (Permitted Uses) and Section 9-2.2455 (Sites and Structure Requirements) of the California City Municipal Code to Address Fostering of Animals and Keeping of Household Pets. Staff Report: Karin A. Schambeck, Deputy City Attorney Recommended Action: Staff recommends the City Council waives further reading and adopt ordinance by title, An ordinance of the City Council of the City of California City, Amending Section 9-2.501 (Permitted Uses) of Article 5 (One-Family Residential District Medium Density) of Chapter 2 (Zoning) of Title 9 (Land Use and Development) and Section 9-2.2455 (Site and Structure Requirements) of Article 24.5 (Residential Tiny and Small Homes Overlay Zone) of Chapter 2 (Zoning) of Title 9 (Land Use and Development) of the City of California City Municipal Code Relating to Fostering of Animals and Keeping Household Pets. (Second Reading & Adoption). Deputy City Attorney Schambeck presented the staff report. There were no public comments on this item. Councilmember Kulikoff moved to approved as presented. Motion seconded by Councilmember Cooper. AYES: Councilmembers Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: None ABSENT: None MOTION CARRIES: 5-0 CB2. Flyer Design for Measure B Report: Mayor, Kelly Kulikoff Recommended Action: Take appropriate Action as deemed necessary. Public comments on this item were offered by Silver Farr and J. M. Powers. Mayor Kulikoff clarified this item in the context of using Rosenberg’s rules of order to reconsider agenda items.

7 Mayor Kulikoff moved to trail the item to a date uncertain after the July 30, 2024, special election. Motion seconded by Councilmember Kulikoff. AYES: Councilmembers Cooper, Creighton, Kulikoff, & Mayor Kulikoff NOES: None ABSTAIN: Mayor Pro Tem Smith ABSENT: None MOTION CARRIES: 4-1 CB3. Suspension of Planning Commission. Report: Kelly Kulikoff, Mayor Recommended Action: As per City Council discussion. Public comments were offered by Dave Brottlund, Al Hudson, Michelle Iverson, Jay Dunham, and Shawn Bradley. A lengthy discussion ensued relative to the merits of the proposal, delays in approvals, more work for the Council, cancellation of meetings, lack of organizational structure, process for appeals, and the legal authority of the Council to suspend the Planning Commission without amending the Municipal Code. Councilmember Creighton moved not to suspend the Planning Commission. Motion seconded by Mayor Pro Tem Smith. AYES: Councilmembers Cooper, Creighton, & Mayor Pro Tem Smith NOES: Councilmember Kulikoff and Mayor Kulikoff ABSTAIN: None ABSENT: None MOTION CARRIES: 3-2 CB4. SB 9. Staff Report: Joe Barragan, Public Works Director Recommended Action: Staff recommends that the City Council reject the Planning Commission’s decision on SB 9 and approve the Resolution declaring that SB9 does not apply to the City of California City. (Item removed from agenda earlier in the meeting by formal vote). NEW BUSINESS NB1. General Municipal Election – November 5, 2024 Staff Report: Daryl Betancur, City Clerk Recommended Actions: Staff recommends that the City Council approve and adopt the following Resolutions. 1. Approve Resolution No. 24-3032, A Resolution of the City Council of the City of California City, calling for the holding of a General Municipal Election to be held on Tuesday, November 5, 2024, for the election of certain officers as required by the provisions of the laws of the State of California relating to General Law cities; and

8 2. Approve Resolution No. 24-3033, A Resolution of the City Council of the City of California City, requesting the Board of Supervisors of the County of Kern to consolidate a General Municipal Election to be held on Tuesday, November 5, 2024, with the Statewide General Election to be held on the date pursuant to Elections Code §10403; and 3. Approve Resolution No. 24-3034, A Resolution of the City Council of the City of California City, adopting regulations for candidates for elective office pertaining to candidate statements submitted to the voters at an election to be held on Tuesday, November 5, 2024; and 4. Approve Resolution No. 24-3035, A Resolution of the City Council of the City of California City, providing for a procedure for determining by lot a tie among candidates at the November 5, 2024, General Municipal Election in accordance with Elections Code Section 15651 and rescinding prior resolutions related thereto. There were no public comments on this item. Councilmember Creighton moved to approve as presented. Motion seconded by Councilmember Cooper. AYES: Councilmembers Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: None ABSENT: None MOTION CARRIES: 5-0 NB2. Amended and Restated Solid Waste Franchise Agreement for Waste Hauling Services and Waste Management. Staff Report: Ephraim S. Margolin, Deputy City Attorney Recommended Action: Staff recommends that the City Council approve the Agreement with Waste Management and authorize the City Manager to sign the Agreement. (Item taken out of order) Mayor Kulikoff and Councilmember Kulikoff recused themselves from participating in the discussion and accordingly left the room at 9:40 p.m. Following the discussion, both returned to the dais at 10:16 p.m. Deputy City Attorney, Ephraim (Eppi) Margolin presented the staff report and answered Council’s questions. Public comments on the Waste Management Agreement were provided by Al Hudson, Mary Wady, Anthony Myers, and Dwayne Vasquez. Ashley Cortes, Senior Account Executive with Waste Management presented the report and answered questions from Council and the audience as well. Councilmember Creighton moved to approve as presented. Motion seconded by Councilmember Cooper. AYES: Councilmembers Cooper, Creighton, & Mayor Pro Tem Smith

9 NOES: None ABSTAIN: Councilmember Kulikoff and Mayor Kulikoff ABSENT: None MOTION CARRIES: 3-2 NB3. Appointment of Planning Commissioner. Report: Kelly Kulikoff, Mayor Recommended Action: Staff recommends that the City Council takes appropriate action. (Item taken out of order) There were no public comments on this item. Councilmember Creighton presented the report and indicated that after careful consideration, Ms. Leilani Saavedra had been appointed to the Planning Commission to serve the remainder of the term vacated by former Planning Commissioner Conry. Councilmember Creighton moved to recommend Ms. Saavedra for an appointment to the Planning Commission. Motion seconded by Councilmember Kulikoff. AYES: Councilmembers Cooper, Creighton, Kulikoff, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: None ABSENT: None MOTION CARRIES: 5-0 NB4. Approve Resolution No. 24-3036, A Resolution of the City Council of the City of California City, California, Adopting a Preliminary Budget for Fiscal Year 2024-2025. Staff Report: Latisha Lamberth, Acting City Manager Recommended Action: Staff recommends that the City Council adopt the City Budget for FY 23/24 as the Preliminary City Budget for FY 24/25. Mayor Pro Tem Smith moved to approve continuing budget Resolution No. 24-3036 with 20% reduction in operating expenses and 2/12ths. There was an extensive discussion relative to a 20% reduction of the entire City budget and continuing a Resolution of 1/12. Councilmember Creighton stated that the budget should assume what the budget would look like if Measure B were to pass; and what it would look like if Measure B were to fail; not in favor of using the same budget numbers as last year. In addition, the discussion centered on a 20% reduction in operational expenses and bringing back in another month or even going as far as 2/12ths. Mayor Kulikoff concurred with the 20% reduction in operational expenses, but cautioned in limiting building and planning operations, which move the city forward; commented on the Acting City Manager to make the determination relative to the 20% in reductions with her staff. Public comments on the budget were presented by Al Hudson, J. M. Powers, and Dwayne Vasquez.

10 Acting City Manager Lamberth stated that there were other things to consider like being in negotiations with CalPERS, Cafeteria, and other major issues. Mayor Pro Tem Smith moved to approve at least 20% [reduction] in operational ($6,205,000) for the 23/24 budget, continuing Resolution of 2/12 th. Councilmember Creighton clarified the motion as reduction of 20% in the operational funds, the operational stuff needs to be cut by 20% and divide that by 2/12ths to run for the next two months with the continuing Resolution good for up to 60 days. Motion seconded by Councilmember Creighton. AYES: Councilmembers Cooper, Creighton, Mayor Pro Tem Smith, & Mayor Kulikoff NOES: None ABSTAIN: Councilmember Kulikoff ABSENT: None MOTION CARRIES: 4-1 COUNCILMEMBER COMMENTS, AGENDA REQUESTS, AND AB1234 REPORTS This portion of the meeting is reserved for council members to present information, announcements, and items that have come to their attention. The Brown Act precludes Council, staff, or public discussion. Short staff responses are appropriate. The Council will take no formal action. A Council member may request the City Clerk to calendar an item for consideration at a future meeting or refer an item to staff. Councilmember Cooper – inquired about the status of the traffic study and asked to be brought back at the next council meeting. Councilmember Creighton – Requested a closed session item regarding Stradling Yocca Carlson & Rauth and a status of what they are doing for the city; request to agendize the monument sign for city hall with the money that was donated and include a competition for the public to assist in the design; and agendize Granicus E- comments when they pertained to specific agenda items. Councilmember Kulikoff – No report. Mayor Pro Tem Smtih – Stated he wanted to ask Acting City Manager Lamberth if staff could identify opportunities for CAPS involvement; requested that unpaid fines and citations be made a priority; commented on the audio system and the volume to the microphone system; suggested the Council consider a hiring freeze; suggested to make an exception for police and fire and asked the Acting City Manager Lamberth if the Council could be briefed on essential positions that need to be filled. Mayor Kulikoff – Requested a discussion item to approve the City’s response to the Grand Jury report of findings for the next regular City Council meeting and asked all councilmembers to weight in on the response prior to the meeting. ADJOURNMENT Councilmember Kulikoff moved to adjourn the meeting. Motion seconded by Councilmember Creighton. Motion carried 5-0.

11 Seeing no further business to come before the City Council, the meeting was adjourned at 11:12 p.m. _____________________________ DARYL A. BETANCUR, MPA, MMC City Clerk

4864-0998-4173 v1 COUNCIL AGENDA ITEM July 9, 2024 PREPARED BY : Victor Ponto, City Attorney SUBJECT : Discussion of Ordinance Amending the Municipal Code to Regulate Cannabis RECOMMENDATION The City Council is requested to: 1. Approve as presented for second reading and adoption. BACKGROUND/ DISCUSSION The California City Municipal Code (“CCMC”) currently permits commercial cannabis businesses to operate in the City if permitted by the City. City staff have directed the City Attorney’s Office to draft an ordinance overhauling the CCMC’s provisions regulating cannabis to address ongoing issues related to the non- collection of cannabis taxes, odor control, cannabis waste, and other persistent issues. The proposed Ordinance also updates the City’s cannabis administrative fine schedule and increases the tax for cannabis manufacturing and distribution, as directed by the Council. At the City Council meeting of May 28, 2024, the Council directed the City Attorney’s Office to do no further work on the proposed Ordinance with the exception of removing proposed addition #4, which would have required monthly inventory

4864-0998-4173 v1 production by cannabis businesses, and requested that the public provide comment on the proposed Ordinance prior to the June 11, 2024 meeting. Council trailed the matter on June 11, 2024 to the June 25, 2024 meeting. On June 25, 2024, the Council gave direction regarding the proposed Ordinance, which is described below: Elimination of the following proposed sections (as reflected in redline below): - City’s Regulation of Medicinal Cannabis Delivery - Live Scan/Identification Card Requirements – *NOTE that the current Municipal Code contains section 5-6-302(b) which requires employees to have a laminated badge while working. This is a state requirement, and the Municipal Code is in line with the Department of Cannabis Control Regulation 15043. Council may address this if it chooses - Activation Requirement on Cannabis Delivery Business - Signage for cannabis businesses Modification of the following proposed section: - Guard Dogs and Recreational Vehicles at Cannabis Facilities – require sign at knock box identifying animals on the premises - Require all structures used for cultivation to be legally constructed ANALYSIS The proposed Ordinance would amend the CCMC in the following ways: 1. Clarify how Canopy Space is Measured (Amends CCMC Section 3- 2.8.040(d)) Currently, the CCMC defines “Canopy” as all areas occupied by any portion of a cannabis plant whether contiguous or noncontiguous on any one site. The proposed ordinance would add the words “as measured from the walls of each area including any walkways” to the end of the definition. The CCMC states that when plants are placed on shelves parallel to one another that each shelf is counted as separate canopy area. The proposed ordinance extends the definition of “Canopy” to vertical shelves. The definition of "Canopy” is important because the City’s cannabis business tax is based on a businesses’ gross receipts and the square footage of plant canopy they have. 2. Add Definition of “Financial Interest” (Amends CCMC Sections 5-6.201 and 5-6.501) The proposed Ordinance would add a definition of “Financial Interest” to the CCMC so that persons having a “Financial Interest” would have to be listed in retail cannabis license applications. A “Financial Interest” would be defined as an agreement to receive a portion of the profits of a commercial cannabis business, an investment into

4864-0998-4173 v1 a cannabis business, a loan provided to a cannabis business, or any other equity interest in a cannabis business. 3. Overhaul Information Required for Retail Cannabis License Applications (Amends CCMC Section 5-6.501) The proposed Ordinance would require applicants for retail cannabis licenses to provide (1) current government issued photo IDs; (2) proof of ownership or a written lease for the site they intend to operate at; and (3) certification that they have not been convicted of a list of serious crimes. The CCMC currently does not list requirements for applications for the retail cannabis license applications, instead permitting the City Council to adopt application procedures by resolution and the City Manager has the authority to adopt any rules necessary to evaluate applications. 4. Require Cultivation Sites to Obtain Fumigation Permits and Adhere to State/Federal Law on Pesticides (Amends CCMC Section 5-6.1101) The proposed Ordinance would require commercial cannabis cultivators to comply with all federal, state, and local laws and regulations governing the use of pesticides. Cultivators would also have to comply with California Fire Code requirements regarding fumigation and insecticidal fogging. The ordinance would also prohibit burning sulfur to control pests in enclosed spaces. 5. Require Cannabis Cultivators to Comply with Indoor Grow Lighting System Restrictions (Amends CCMC Section 5-6.1101) The proposed Ordinance would require cannabis cultivators using indoor grow systems to ensure that the lights are shielded to confine light and glare to the interior of the building. Cultivators would also have to comply with the Building and Fire Codes and have ventilation and filtration systems approved by the building official and installed prior to starting cultivation. The idea is that this would cut down on offensive cannabis odors. Cultivators would also have to acquire any necessary permits from the air quality management district before beginning operations. The proposed Ordinance would also require commercial cultivators to keep adequate records—including videorecords—of any cannabis related activity, including conducting an inventory on the first business day of each week and recording the total quantity of each type of cannabis on the premises. Records would have to be maintained for seven years. 6. Add Provision Detailing how Cannabis Waste Must be Disposed (Addition of CCMC Section 5-6.908) The proposed Ordinance would require cannabis permitees to turn the byproduct of cannabis/cannabis products into “Cannabis Waste,” a product that is unusable

4864-0998-4173 v1 and unrecognizable by creating a mixture that is at least 50 percent non-cannabis material by volume. Permitees would be required to track where cannabis waste is disposed and not comingle different batches of cannabis waste. The proposed ordinance would also ban on-site compositing of cannabis waste. The CCMC currently does not address “Cannabis Waste.” 7. Require Cannabis Permits to be Renewed Annually (Amends CCMC Sections 5-6.502, 5-6.504, and 5-6.904) The proposed Ordinance would require City permits to be renewed yearly, as opposed to the current regulatory regime where they are reviewed based on operational status. The Ordinance would also require permittees to report to the City when they have ceased operating their cannabis business. The proposed Ordinance would define a business as ceasing to operate if does not engage in sales, manufacturing, distribution, or other cannabis activity for five consecutive days, unless the operator can furnish proof that the business will return to activity within a reasonable period of time. 8. Update Administrative Fine Schedule (Amends CCMC Sections 5- 6.1503, 9-2.2908, and 1-5.04) The proposed Ordinance would update the City’s administrative fine schedule for unpermitted cannabis activity in line with Assembly Bill 1684. Assembly Bill 1684 went into effect January 1, 2024 and limits the fines and penalties that cities may impose on violators of a city’s cannabis regulations at $1,000 per violation and $10,000 per day, but permits cities to levy larger fines if authorized by another section of State law or after the City has given the violator notice and reasonable time to correct the violation. Assembly Bill 1684 requires that cities provide for a reasonable amount of time for a person to correct or remedy the violation before any fines or penalties are imposed if (1) the rental property owner or agent can show the rental or lease agreement prohibits the commercial cannabis activity; and (2) the rental property owner or agent did not know the tenant was engaging in unlicensed commercial cannabis activity for which a license was required and no complaint, property inspection, or other information alerted the rental property owner or agent to the illegal commercial cannabis activity. 9. Clarify that Building Code may be Enforced Against Cannabis Operators (Amend CCMC Section 5-6.1405, 5-6.802, and 9-2.2905) The proposed Ordinance would confirm that the City has the authority to enforce the State Building Code and Fire Code against cannabis businesses.

4864-0998-4173 v1 10. New Cannabis Manufacturing Restrictions (Amends CCMC Section 5- 6.1303) The proposed Ordinance would require cannabis manufacturers to receive approval from the Fire Chief for a closed-loop system or extraction operation. Cannabis manufacturers would have to meet fire, safety and building code requirements of the California Fire Code, the National Fire Protection Association standards, International Building Code, or the International Fire Code. All equipment at manufacturing would have to be Underwriter Laboratories listed or approved by a similar agency or certified by a mechanical engineer licensed in the United States. Manufacturing sites would also be required to have a seller’s permit from the California Department of Tax and Fee Administration. 11. Clarify how Administrative Appeals of Fines are Handled (Amends CCMC Section 5-6.604) The proposed Ordinance would clarify that administrative fines issued for violations of the City’s cannabis regulations can be appealed by the process set out in Sec. 1- 5.08, which is the general appeal process for citations. 12. Require Conditional Use Permits for Alteration and Modification of Equipment at Cannabis Business (Amends CCMC Section 5-6.907) The proposed Ordinance would require cannabis businesses to obtain a Conditional Use Permit for any physical change, alteration, or modification to the location, type, or quantity of equipment within their business. The City currently requires a Conditional Use Permit for any physical change, alteration, or modification of the premises of a cannabis business that materially or substantially alters the licensed premises from the plans approved by the City. 13. Strengthen City’s Ability to Revoke and Suspend Licenses (Amends CCMC Section 5-6.503) The CCMC currently authorizes the City to revoke cannabis business permits for any violation of the CCMC’s cannabis regulations. The proposed Ordinance would expand on this and create a process where the City Manager has the authority to suspend a cannabis business permit for any violation of the CCMC’s cannabis regulations that is substantial and revoke a permit for any violation that is significant. The proposed Ordinance adds a legally compliant due process procedure to the City’s authority. The proposed Ordinance lists 12 factors that the City Manager would consider in determining whether a permit should be suspended or revoked. The City Manager would have to mail a written notice of the suspension or revocation to the cannabis business, which lists the reasons for the suspension or revocation. Before suspending or revoking a permit, a cannabis business is entitled to a hearing on their impending suspension or revocation. After the hearing, the City Manager’s decision can be appealed to the City Council.

4864-0998-4173 v1 14. Require Applicant to Pay for Cost of CEQA Studies (Addition of CCMC Section 5-6.507) The proposed Ordinance would require applicants to pay for all costs associated with the preparation of all initial studies, negative declarations, environmental impact reports and/or other environmental documents or studies, necessary for the approval of a cannabis business permit, zoning, or conditional use permit. 15. Ban Recreational Vehicles at Cannabis Facilities and Require Signage on Property to Identify Animals on Premises (Amends CCMC Section 5-6.902 and 5- 6.906) The proposed Ordinance would require all property owners of a cannabis business to identify all animals on the property of a cannabis business unless the animal is a service animal as defined by Title II of the Americans with Disabilities Act. Property owners shall be responsible for paying the sum to have the sign installed at the knock box. The purpose of this change would be to protect inspectors and first responders in the event of an emergency from being attacked by an animal or being forced to rescue an animal in case of a fire. The proposed ordinance would also ban persons from living on the property of cannabis business and in a recreational vehicle, tent, or vehicle on the property, even if not part of the licensed premises of the property. 16. Require Applicant to Post Performance Bond (Amends CCMC Section 5-6.906(m)) Councilmember Smith requested that the ordinance include a requirement that cannabis businesses maintain a performance bond for the City to utilize in the event it needs to clean up and abate issues on properties for non-compliance with the CCMC. The proposed Ordinance authorizes the City Council to require applicants for cannabis permits to post a cash bond in an amount set by City Council resolution to assure compliance with the City’s cannabis regulations and in the event of damage to public property. State law requires applicants for state cannabis licenses to obtain a bond to pay for the cost of destroying cannabis or cannabis products if it loses its license. The Department of Cannabis Control requires that bond to be $5,000 for each licensed premise the applicant will operate. 17. Require all Structures used for All Cultivation to be Legally Constructed (Amend CCMC Section 5-6.1101) The proposed Ordinance would require that all structures used for cultivating cannabis must be legally constructed with all applicable permits, such as grading, building, electrical, mechanical, and plumbing if necessary.

4864-0998-4173 v1 18. Increase City’s Enforcement Authority Against Illegal Cannabis Businesses (Add Article 16 to CCMC Chapter 5-6) The proposed Ordinance would increase the City’s enforcement authority against unlicensed cannabis activities by adding Article 16 (Unlicensed Cannabis Activities) to CCMC Chapter 5-6. The proposed Ordinance would declare that unlicensed cannabis activity is a nuisance and grant the City Manager, City Attorney, and Building Official the authority to abate these nuisances. The City would be able to recover the cost of abating the nuisance and could impose a $1,000 penalty per violation not to exceed $10,000 per day on persons who continue to operate an unlicensed cannabis business after being warned to stop doing so by the City. 19. Redefine Tax Administrator Position as Finance Director or City Manager Designee (Amends CCMC Section 3.2.8) The CCMC requires the “Tax Administrator” to administer and collect the cannabis business tax. The CCMC defines the “Tax Administrator” as the Finance Director or their designee. The proposed Ordinance would redefine the “Tax Administrator” as the Finance Director or the City Manager’s designee. The purpose of this change would be to streamline collection of the cannabis business tax in the event that the Finance Director position is vacant. 20. Increase Cannabis Tax for Distribution and Manufacturing (Amends CCMC Section 3-2.8.050) The proposed Ordinance would increase the rate of the cannabis business tax for manufacturing from 1% of gross receipts to 2% of gross receipts, and for distribution from .5% of gross receipts to 1% of gross receipts. CALIFORNIA ENVIRONMENTAL QUALITY ACT The proposed Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, Sections 15060(c)(2) and 15060(c)(3) because the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment. The proposed Ordinance is also exempt from CEQA as it is not a project as defined in Section 15378 of the state CEQA Guidelines and the Ordinance has no potential to result in a physical change to the environment, directly or indirectly. Therefore, no environmental assessment is required or necessary. FISCAL IMPACT There is no estimated fiscal impact at this time. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process.

4864-0998-4173 v1 ATTACHMENT Ordinance No. _________

Department of Cannabis Control Medicinal and Adult-Use Commercial Cannabis Regulations (March 2024) Page 79 of 229 §15043. Licensee Employee Badge Requirement. All agents, officers, or other persons acting for or employed by a licensee conducting retail sales or participating in a temporary cannabis event shall display a laminated or plastic-coated identification badge issued by the licensee at all times while engaging in commercial cannabis activity. The identification badge shall, at a minimum, include the licensee's “doing business as” name and license number, the employee's first name, an employee number exclusively assigned to that employee for identification purposes, and a color photograph of the employee that clearly shows the full front of the employee's face and that is at least 1 inch in width and 1.5 inches in height. Authority cited: Section 26013, Business and Professions Code. Reference: Section 26070, Business and Professions Code. §15044. Video Surveillance System. (a) Each licensed premises shall have a digital video surveillance system with a minimum camera resolution of 1280 × 720 pixels on the licensed premises. This requirement does not apply to a licensed premises authorized exclusively for cultivation activities or the cultivation area of a licensed microbusiness premises. (b) The video surveillance system shall at all times be able to effectively and clearly record images of the area under surveillance. (c) Each camera shall be permanently mounted and in a fixed location. Each camera shall be placed in a location that allows the camera to clearly record activity occurring within 20 feet of all points of entry and exit on the licensed premises, and allows for the clear and certain identification of any person and activities in all areas required to be filmed under subsection (d). (d) Areas that shall be recorded on the video surveillance system include the following: (1) Areas where cannabis or cannabis products are weighed, packed, stored, loaded, and unloaded for transportation, prepared, or moved within the licensed premises; (2) Limited-access areas; (3) Security rooms; (4) Areas storing a surveillance-system storage device with at least one camera recording the access points to the secured surveillance recording area; and (5) Entrances and exits to the licensed premises, which shall be recorded from both indoor and outdoor vantage points. (e) Licensed retailers and licensed microbusinesses authorized to engage in retail sales shall also record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.

4884-5188-8813 v2 AN ORDINANCE OF THE CITY OF CALIFORNIA CITY, CALIFORNIA AMENDING (1) CHAPTER 5 (ADMINISTRATIVE CITATIONS) OF TITLE 1 (GENERAL PROVISIONS); (2) ARTICLE 8 (CANNABIS BUSINESS TAX) OF CHAPTER 2 (REVENUE) OF TITLE 3 (FINANCE); (3) CHAPTER 6 (REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY) OF TITLE 5 (PUBLIC WELFARE); AND (4) ARTICLES 3 AND 29 (CANNABIS BUSINESSES AND CANNABIS DISPENSARIES) OF CHAPTER 2 (ZONING) OF TITLE 9 (LAND USE AND DEVELOPMENT) OF THE CITY OF CALIFORNIA CITY MUNICIPAL CODE RELATING TO CANNABIS WHEREAS, Article XI, § 7 of the California Constitution empowers the City to enact and enforce ordinances regulating conditions that may be public nuisances or health hazards, or that promote social, economic, or aesthetic considerations; and WHEREAS, California City Municipal Code (“CCMC”) permits commercial cannabis activity or medicinal cannabis activity within the City; and WHEREAS, a statewide initiative entitled the “Control, Regulate and Tax Adult Use of Marijuana Act” (“AUMA”) was approved by voters on the November 2016 ballot. AUMA does not, and cannot, affect federal regulations as to cannabis or its derivatives. WHEREAS, AUMA expressly preserves local control over the regulation of cannabis-related businesses and cannabis-related land uses (Business & Professions Code § 26200, et seq.); and WHEREAS, it is in the public interest for the City to take appropriate actions to protect citizens and their property from conditions that threaten public health, safety, and welfare including, without limitation, matters that devalue real property; and WHEREAS, the City Council desires to amend the Municipal Code to update how it regulates cannabis businesses in the City to permit the City to better regulate cannabis businesses. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CALIFORNIA CITY DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. RECITALS. The City Council of the City of California City finds and declares that the Recitals set forth above are true and correct and are incorporated herein by this reference. SECTION 2. AMENDMENT OF CHAPTER 5 (ADMINISTRATIVE CITATIONS) OF TITLE 1 (GENERAL PROVISIONS) OF THE CALIFORNIA CITY MUNICIPAL CODE.

4884-5188-8813 v2 Title 1 (General Provisions) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit A with deletions marked in strikethrough and additions in underline. SECTION 3. AMENDMENT OF ARTICLE 8 (CANNABIS BUSINESS TAX) OF CHAPTER 2 (REVENUE) OF TITLE 3 (FINANCE) OF THE CALIFORNIA CITY MUNICIPAL CODE. Title 3 (Finance) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit B with deletions marked in strikethrough and additions in underline. SECTION 4. AMENDMENT OF CHAPTER 6 (REGULATION OF CANNABIS RELATED BUSINESSES AND ACTIVITY) OF TITLE 5 (PUBLIC WELFARE) OF THE CALIFORNIA CITY MUNICIPAL CODE. Title 5 (Public Welfare) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit C with deletions marked in strikethrough and additions in underline. SECTION 5. AMENDMENT OF TITLE 9 (LAND USE AND DEVELOPMENT) OF THE CITY OF CALIFORNIA CITY MUNICIPAL CODE. Title 9 (Land Use and Development) of the City of California City Municipal Code is hereby amended to read as follows in Exhibit D with deletions marked in strikethrough and additions in underline. SECTION 6. CALIFORNIA ENVIRONMENTAL QUALITY ACT. The Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, Sections 15060(c)(2) and 15060(c)(3) because the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment. The proposed Ordinance is also exempt from CEQA as it is not a project as defined in Section 15378 of the state CEQA Guidelines and the Ordinance has no potential to result in a physical change to the environment, directly or indirectly. Therefore, no environmental assessment is required or necessary. SECTION 7. SEVERABILITY. If any chapter, subsection, subdivision, sentence, clause, phrase, or portion of this ordinance, is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have adopted this ordinance, and each Chapter, subsection, subdivision, sentence, clause, phrase, or portion thereof, irrespective of the fact that any one or more Sections, subsections,

4884-5188-8813 v2 subdivisions, sentences, clauses, phrases, or portions thereof be declared invalid or unconstitutional. SECTION 8. EFFECTIVE DATE. This ordinance shall take effect thirty (30) days after its passage by the City Council. SECTION 9. CITY CLERK ACTION. The City Clerk is authorized and directed to cause this Ordinance to be published within fifteen (15) days after its passage in a newspaper of general circulation and circulated within the City in accordance with Government Code Chapter 36933(a) or, to cause this Ordinance to be published in the manner required by law using the alternative summary and pasting procedure authorized under Government Code Chapter 39633(c). PASSED AND ADOPTED by the City Council of the City of California City on the __ day of _________, 2024. ______________________________________ Kelly Kulikoff, Mayor APPROVED AS TO FORM: ATTEST: _________________________________ ______________________________________ Victor M. Ponto, City Attorney Daryl Betancur, City Clerk

4884-5188-8813 v2 STATE OF CALIFORNIA) COUNTY OF KERN ) CITY OF CALIFORNIA CITY) I, Daryl Betancur, City Clerk of the City of California City, California, do hereby certify that the foregoing Ordinance No. 24-__, was introduced at a regular meeting of the City Council of the City of California City held on the __ day of ________, 2024, and was passed by the City Council of the City of California at a regul