AGENDA
ITEM
15 AGENDA
CALEXICO California ITEM
WHERE CALIFORNIA AND MEXICO MEET
15 CITY COUNCIL
AGENDA STAFF REPORT
DATE: July 1, 2026
TO: City Council
APPROVED BY: Benjamin Martinez, City Manager Mr
PREPARED BY: Laura Estrada, City Attorney LE
SUBJECT: Potential Moratorium on Data Centers
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Recommendation:
It is recommended that the City Council direct Staff to prepare an Urgency Interim Ordinance establishing a Moratorium on Data Centers for the purpose of studying related issues more in depth.
Background:
At its regular meeting of June 3, 2026, the City Council directed staff to place this item on the agenda for the present City Council meeting.
Centers require substantial electrical power, water resources, telecommunications, infrastructure, and support utility improvements. Potential impacts of Data Centers on public infrastructure, utility capacity, environmental resources, and the health, safety, and welfare of the City residents.
Discussion and Analysis:
California Government Code Section 65858 authorizes the legislative body of a city to adopt as an urgency measure an interim ordinance prohibiting any land uses that may be in conflict with a contemplated general plan, specific plan, or zoning proposal that the legislative body is considering or studying or intends to study within a reasonable time, without following the procedures otherwise required for adopting a zoning ordinance. To place this pause on permitting, the City Council is required to adopt an urgency ordinance by a four-fifths (4/5) vote of the City Council.
If adopted, the moratorium will take effect immediately and remain in effect for forty-five days.
During the moratorium period, the City will study potential amendments to the Calexico Municipal Code and/or governing City planning documents or policies as related to zoning, permitting, licensing, monitoring, enforcement, and financial auditing of cannabis businesses. The City Council is authorized to extend the initial 45-day term of the moratorium with a new ordinance adopted at a duly noticed public hearing. As a public hearing is being held on the subject interim urgency ordinance with public notice provided in the Calexico Chronicle, the interim ordinance can be extended for up to 22 months and 15 days as set forth in Government Code 65858(b).
As staff will need additional time for a full report and recommended modifications to the Calexico Municipal Code, a request for an extension to this interim urgency ordinance will be presented to the city council at the next regular meeting.
Staff recommends that the City Council find that the proposed ordinance is not subject to the California Environmental Quality Act because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, and because it has no potential for resulting in a direct or reasonably foreseeable indirect physical change in the environment (Sections 15060(c)(2) and (3)).
The purpose of the proposed moratorium is to provide the city with sufficient time to evaluate the potential impacts of Data Centers and determine whether amendments to the Calexico Municipal Code, zoning regulations or other planning policies are necessary to protect the public health, safety, and welfare.
Potential issues requiring further study include, but are not limited to:
- Electrical power demand and utility infrastructure capacity; - Water consumption;
- Traffic and transportation impacts;
- Noise and operational impacts;
- Emergency response and public safety considerations;
- Use, storage, and handling of hazardous materials;
- Air quality and environmental impacts;
- Land use compatibility;
Economic and fiscal impacts
Fiscal Impact:
The proposed interim urgency ordinance will not have a direct fiscal impact on the City.
Coordinated With:
City Attorney's Office
Planning and Building Director
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