Agenda packet, study session — Cathedral City City Council, May 11, 2022

CITY COUNCIL
AGENDA

Study Session
Wednesday, May 11, 2022
3:00 PM

City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234

THIS MEETING WILL BE CONDUCTED IN PERSON AND VIA VIDEOCONFERENCE. IF YOU WOULD LIKE TO ATTEND VIA ZOOM PLEASE USE THE FOLLOWING LINK TO REGISTER IN ADVANCE:

AFTER REGISTERING, YOU WILL RECEIVE A CONFIRMATION EMAIL CONTAINING INFORMATION ABOUT JOINING THE MEETING.

MAYOR
Ernesto Gutierrez

CITY COUNCIL MEMBERS

Mayor Pro Tem
Rita Lamb

Councilmember
Mark Carnevale

Councilmember
Nancy Ross

Councilmember
Raymond Gregory
• 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.

1. CLOSED SESSION
A. Conference with Labor Negotiator Pursuant to Government Code Section 54956.6
Agency Negotiator: Charles McClendon, City Manager
Represented Employees: Police Management Association (PMA) Cathedral City P a g e 2
B. Conference with Legal Counsel - Anticipated Litigation - Consideration of whether to Initiate Litigation Pursuant to Government Code 54956.9(d)(4) Number of Matters: One

2. PUBLIC COMMENT
This is the opportunity for members of the public to comment on any items not appearing on the regular agenda. Because of restrictions contained in California Law, the City Council may not discuss or act on any item not on the agenda but may briefly respond to statements made or ask a question for clarification. The Mayor may also request a brief response from staff to questions raised during public comment or may request a matter be agendized for a future meeting. Publi c Comment will be limited to three (3) minutes.

3. STUDY SESSION
Normally no action is taken on Study Session items, however, the City Council reserves the right to give specific poli cy direction and take specific action as necessary. Presentation will b e limited to 10 minutes unless other provisions are made in advance.

A. Cannabis Regulation and Tax Update
Recommendation: This item is presented for information, discussion and direction only.

B. SB 1383 residential roll out program, amendment to the franchise agreement and rate increase request on commercial, residential, and roll-off services.

Recommendation: The SB 1383 residential roll out program, amendment to the franchise agreement and rate increase request on
commercial, residential, and roll-off services is presented to the City Council for discussion, comments and direction in anticipation of being presented for Public Hearing and City Council approval at the June 8, 2022, City Council Meeting.

ADJOURN
NOTES TO THE PUBLIC:

The City of Cathedral City complies with the Americans with Disabilities Act of 1990. If you require special assistance to participate in this meeting, please call the City Clerk’s Office at (760) 770-0322 at least 48 hours prior to the meeting.

If you desire to address the City Council during the meeting, please complete a Request to Speak Form available at the entrance and present it to the City Clerk. Speakers will be called upon at the appropriate time.

Any documents provided to a majority of the City Council regardi ng any item on this agenda will be made available for public inspection in the City Clerk’s office at City Hall Cathedral City P a g e 3
located at 68 -700 Avenida Lalo Guerrero during normal business hours. I n addition, such documents will be posted on the City’s website at www.cathedralcity.gov.

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Staff Report

City Council

Meeting Date: May 11, 2022
From: Charles McClendon, City Manager
Title: Conference with Labor Negotiator Pursuant to Government Code Section 54956.6
Agency Negotiator: Charles McClendon, City Manager
Represented Employees: Police Management Association (PMA)

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Staff Report

City Council

Meeting Date: May 11, 2022
From: Eric Vail, City Attorney
Title: Conference with Legal Counsel - Anticipated Litigation - Consideration of whether to Initiate Litigation Pursuant to Government Code 54956.9(d)(4)
Number of Matters: One

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Staff Report

City Council

Item No. 3.A

Meeting Date: May 11, 2022
From: Charles McClendon, City Manager
Title: Cannabis Regulation and Tax Update

City Council

RECOMMENDATION:

This item is presented for information, discussion and direction only.

BACKGROUND:

With the passage of Proposition 64 by California voters, C annabis businesses became fully legal for both medicinal and adult use. The full implementation of Prop 64 became effective January 1, 2018. The industry continues to grow and mature in Cathedral City.

On September 8, 2021, Staff provided an update to the City Council at their study session, covering the history of tax collections in Cathedral City and discussed a request from a business owner to consider a retail “tax holiday”. At that time, Council declined to proceed with a tax holiday.

After the Cannabis Task Force meeting held on November 29, 2021, staff provided an update to the City Council in study session on January 12, 2022 and reviewed the discussions of the Task Force. As result of that meeting, Council asked staff to conduct a full review of the City’s Municipal Code provisions related to Cannabis, the tax and fee structure and related data.

The data and staff suggestions resulting from that review were presented to the Cannabis Task Force during a meeting on April 11, 2022. All task force members were present for the discussion and the primary topics of the meeting will be reviewed with Council during the presentation on this item.

The recommendations from the s taff and task force were presented to the City Council during a study session meeting on April 20, 2022. Council agreed with many recommendations related to the regulations, asked for more information on others and asked for a follow -up discussion on taxa tion. Details on direction provided by Council are included in the discussion section below.

DISCUSSION:

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A staff working group was formed, consisting of staff involved in cannabis licensing, enforcement and tax collection, with the assignment to review in detail the current ordinances governing the operation of cannabis businesses in Cathedral City.

PART I MUNICIPAL CODE

Following is a summary of the issues related to the ordinance that were identified and related policy questions that need to be addressed:

• Under 5.88.025 Definitions there is a definition of Good Cause to deny or suspend a local license. The current language is as follows:
“Good cause” for purposes of denying an initial local license issuance, for suspending or revoking a local li cense, or for denying a local license renewal, means:

1. The applicant or licensee has violated any of the terms, conditions or provisions of this chapter, of state law, of any regulations and rules promulgated pursuant to state law, any applicab le local rules and regulations, or any special terms or conditions placed upon its conditional use permit, state license, or local license;
Staff recommends that the language be modified as follows:

1. The applicant or licensee has been cited for violating any of the terms, conditions or provisions of this chapter, of state law, of any regulations and rules promulgated pursuant to state law, any applicable local rules and regulations, or any special terms or conditions placed upon its conditional use permit, state license, or local license;
Council agreed with the recommended change, and it is reflected in the draft ordinance.
• In the same section, also under the Good Cause definition is the following:

6. The applicant or licensee, or any owner of the applica nt or licensee, operated a cannabis business in violation of this chapter or Chapter 9.108 of the code;
Staff recommends this be deleted as it is covered under t he proposed language in item 1 above.

This change also is reflected in the draft ordinance.
• The following language is under the definition of Owner:

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1. A person with an aggregate ownership interest of ten percent or more in the person applying for a license o r a licensee, unless the interest is solely a security, lien, or encumbrance.

State law uses 20 percent and staff recommends aligning with state law.

Council agreed and the proposed change is reflected in the draft ordinance revision.
• Under 5.88.035 Local license required there is the following language:

B. Beginning January 1, 2018, it is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis a ctivities. Notwithstanding the foregoing, any licensee operating in the city prior to January 1, 2018, may continue to operate without a state license provided that it applies for the appropriate temporary or permanent license(s) from the state no later th an forty- five days from the date that the state begins accepting applications. If the state denies the application for a temporary or permanent license(s) for any reason, the cannabis business must cease operations until such time as it obtains the appropriate temporary or permanent state license(s).

This was part of the initial transition to legal cannabis in California after the passage of Prop 64. The transition language is no longer necessary, and staff recommends this section be modified to read as follows:

B. It is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis activities. If the state denies the application for a temporary or perm anent license(s) for any reason, the cannabis business must cease operations until such time as it obtains the appropriate temporary or permanent state license(s).

Council agreed with the recommendation and the proposed change is included in the draft ordinance.
• Under 5.88.040 Local license application process there is the following language:

A. The local licensing authority shall not accept an application for a dispensary proposed to be located south of Interstate 10 after November 23, 2016.

This language was adopted when the retail industry was rapidly expanding in Cathedral City and the Council was concerned about the density of businesses that might develop.

The retail sector is no longer expanding, and the current number of retail licenses is below those authorized in 2016. Council may want to have a policy discussion on whether or not they feel it is necessary to continue with the moratorium.

Council provided direction to continue with the current moratorium on new retail licenses south of I-10. The existing language will remain in the ordinance.

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• Also under 5.88.040 Local license application process is the following language:

E. The chief of police or designee shall conduct a background check of any owner of the cannabis business, as “owner” is defined in MAUCRSA, and shall prepare a report to the local licensing authority on the acceptability of the background of the owner(s).

F. The local licensing authority shall issue a license to any applicant who has submitted a complete application and paid th e application fee unless the local licensing authority finds that good cause exists to deny the license. A local license shall not be issued to a dispensary that is proposed to be located south of Interstate 10 unless the application for the license was made on or before November 23, 2016.

If the language related to ownership definition is revised and/or if the moratorium is lifted these sections will need to be revised to be consistent with those revisions.

No change is required in this section. The chang e in definition of owner will align the City code with MAUCRSA and the moratorium language will remain in the code.
• Under 5.88.050 Changes and modifications of local licenses is the following language:

C.3. The local licensing authority may permit a dispensary that is located south of Interstate 10 to relocate to a new location north or south of Interstate 10. A dispensary that is located north of Interstate 10 may only relocate to a new location that is north of Interstate 10. (Ord. 800 § 1, 2017) Based on Council direction this language will remain. No change is necessary. • Under 5.88.055 Renewal of a local license is the following language:

4. For licensees that have ten or more full -time equivalent non -supervisorial employees, proof that the licensee has entered into and abided by the terms of a labor peace agreement.

State law sets the threshold for requiring a labor peace agreement at 20 employees.

The policy question for Council is do they wish to continue with a provision that is more restrictive than the state.

Council provided direction to leave the threshold at ten employees but asked for more information. No change is included in the draft ordinance.

Staff has contacted the cities of Banning, Desert Hot Springs, Coachella, Perris, Palm Desert and Palm Springs. Of those cities, all defer to the state law except Palm Springs which requires a labor peace agreement for all businesses with five or more employees.

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• Under 5.88.065 Cannabis business operational requirements is the following language:

D. Background Checks. Prior to commencing any work within a cannabis business, any individual who will work within a licensed premises or have access to cannabis or cannabis -products must submit to a background check that demonstrates they are of good moral character and receive a cannabis industry worker identification card from the city. The background check must include fingerprinting for criminal history conducted by the Cathedral City police department or any other entity determined to be satisfactory by the Cathedral City police department. Each cannabis industry worker identification card issued shall expire after two years unless renewed. A decision to deny or not renew a cannabis industry worker identification card may be appealed in accordance with Section 5.88.060. A cannabis industry worker identification card may be revoked or suspended by the city at any time, in accordance with the procedures in Chapter 13.150 of this code, if it is determined that the card holder is no longer of good moral character. A cannabis business shall not employ or utilize the services of any individual who is required to have a city -issued cannabis industry worker identification card less that individual possesses a valid city -issued cannabis industry worker identification card at all times, regardless of whether the individual is an employee, independent contractor, or volunteer. The city may charge a fee to recover its reasonable costs of processing and issuing cannabis industry worker identification cards in an amount established by resolution of the city council.

E. Worker Register. Cannabis businesses must maintain a complete register of all persons that work at the licensed premises or have access to cannabis or cannabis products, whether as an employee, independent contractor, or volunteer. This register must include:

1. The individual’s complete name, address, and last known telephone number;

2. The individual’s hire date and, if applicable date of termination;

3. A copy of the individual’s city -issued cannabis industry worker identification card;
The register and required records must be made available for inspection by any city officer or official for purposes of determining compliance with the requirements of this chapter during standard business hours of the licensed facility or at any other reasonable time.

These provisions cover background requirements for employees of a cannabis business. Requirements for owners are covered elsewhere. Requirements related to all non -management or ownership employees are costly for the businesses and cumbersome for the City to administer and enforce. The policy question is should the City continue to place such requirements on the businesses related to all employees or does a business have adequate incentives on their own to screen and monitor their

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employees. Based on the policy decision made these sections may be deleted from the code.

Council asked for more information before making a determination on the need for background information on non -management employees. No change is included in the draft ordinance as it currently stands.

Staff received information from the cities of Banning, Desert Hot Springs, Coachella, Perris, Palm Desert and Palm Springs. It appears that Banning and Palm Desert do not require backgrounds on all employees. All others have la nguage similar to the current Cathedral City provisions.

• Also under 5.88.065 Cannabis business operational requirements is the following language:

P. Seed to Sale Tracking Required. Until such a time that the state of California fully implements the t rack and trace program required by Section 26067 of the Business and Professions Code , a cannabis business must utilize seed to sale software, third -party software that trac ks all sales, transfers, purchases, receipts, deliveries of cannabis and cannabis products. The software must be capable of producing electronic shipping manifests, tracking all cannabis inventory in possession of the cannabis business, promptly identifyin g a discrepancy in the stock, and tracking cannabis from the end purchaser back to its source in the event of a serious adverse event.

The state program described is in place and this section of the code can now be deleted.

Council agreed with the recommendation to delete this item from the Code. • Also under 5.88.065 Cannabis business operational requirements is the following language:

R.2. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by gr inding it and incorporating it with fifty percent non -medicinal cannabis waste. If necessary to protect the health and safety of individuals working on a licensed premises, a cannabis business may grind the stalk of a cannabis plant outside of its licensed premises provided all grinding activities occur within twenty feet of the licensed premises and cannot be seen from any public street.

R.3. Composting. A cannabis business may compost cannabis waste onsite, in accordance with this provision and all oth er applicable laws, rules, and regulations.

Staff has encountered some issues with odors that have been traced to the handling of waste. It is recommended that language be added reinforcing that waste and cannabis

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operations must be done in accordance wit h the conditional use permit which will consider placement of containers and impose odor control requirements.

Council agreed with the recommendation to add language indicating the waste handling and composting must be done in accordance with the Condition al Use Permit.
• Under 5.88.070 Dispensary operational requirements is the following language:

A. Limited Hours of Operation. A dispensary may only be open to the public and engage in sales between the hours of eight a.m. and ten p.m.

1. Product Not Visible T o Public. The display of cannabis and cannabis products for sale shall not be visible from outside the licensed premises.

State law allows businesses to operate from 6 a.m. to 10 p.m. The policy question is does the City want to be more restrictive than s tate law. Additionally, the Planning Commission has recommended the elimination of item B. They believe that the requirement makes buildings less aesthetically pleasing and inhibits the use of windows and glass as design features. The same provision rel ated to visibility exists related to cultivation businesses in 5.88.080 Cultivation operational requirements in section D.

Council agreed with aligning the hours of operation with state law and that is included in the ordinance revision. Council also agre ed with the Planning Commission recommendation to eliminate the provision requiring that the product not be visible to the public. They asked legal staff, however, to develop language indicating the visible displays cannot include cartoon characters or other images designed to appeal to children.
• Also under 5.88.070 Dispensary operational requirements is the following language:

I. Sale of Untested Products. A dispensary may sell cannabis or cannabis products that have not been tested by a testing laboratory f rom January 1, 2018 until such time as determined by the state. Thereafter, all cannabis and cannabis products sold by a dispensary must be tested by a testing laboratory prior to sale to a purchaser in accordance with MAUCRSA.

Testing facilities are now available and operational, and this provision can be deleted.

Council agreed with the recommendation to eliminate this provision. • Also under 5.88.070 Dispensary operational requirements is the following language:

2. Cannabis consumption must occur within the i nterior building space of the dispensary. Consumption may not occur on patios, in parking areas, or in any other space that is not fully enclosed.

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This is a policy question for the Council. Currently outdoor lounges are not permitted, and Council has expressed concern over odor control. An alternative is to allow outdoor lounges with appropriate odor control which is already required.

Council indicated an openness to considering outdoor lounges but wanted to discuss further.

Councilmembers raised the idea of limiting outdoor lounges to only certain zoning districts. The most limiting option would be to allow outdoor lounges in the I -1 zone.

There are currently three retail licenses in the I -1 zone with two currently operating. All the other retail licenses are in the PCC or CBP-2 zones.

Another idea was to allow a temporary outdoor lounge license. The downside to this is that businesses my be hesitant to invest in the odor control and other capital expenses necessary to build an outdoor lounge if the license is only temporary.

Additional regulations do not appear to be necessary as odor control and screening provisions already exist in the code and CUP conditions of approval. • Under 5.88.095 Packaging and labeling is the following language:

Notwithstanding the foregoing, during the period of time that the state permits untested cannabis and cannabis products to be sold to purchasers, all cannabis and cannabis products must have a label affixed to each package th at clearly states “This product has not been tested as required by the Medicinal and Adult - Use Cannabis Regulation and Safety Act” and must comply with any other labeling requirements imposed by the state. (Ord. 800 § 1, 2017) The transition period is over , and testing is a state requirement. The text in red above can now be deleted.

Council agreed with the recommendation.
• Under 5.88.120 Civil fines is the following language:

Any person convicted of an infraction or misdemeanor violation shall, for each separate violation of this chapter, be subject to the following civil fines in addition to any infraction or misdemeanor penalties:

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C. A fine in an amount not to exceed seven hundred fifty dollars for a third conviction of the same offense within a twelve -month period of the date of the first offense; and
D. A fine of one thousand dollars for the fourth and subsequent convictions of the same offense within a twelve-month period of the date of the first offense.

The City is converting from having fines listed in the code to have fines adopted through a companion resolution and Council may want to consider a similar approach here.

Council agreed with this provision and a companion resolution on fines will need to be brought forward when the ordinance revision is considered.

Chapter 9 of the Municipal Code deals with land use and includes a section related to cannabis 9.108 CANNABIS BUSINESSES
The following provisions in Chapter 9 were reviewed by the working group a nd should be considered for revision:
• Under 9.108.030 Definitions is the following language:
“Excessive concentration” means either of the following: (1) for proposed dispensaries south of Interstate 10, the approval of the conditional use permit would result in more than twenty dispensaries being approved to operate south of Interstate 10; or (2) for proposed dispensaries north of Interstate 10, the proposed dispensary is located less than five hundred feet from another approved dispensary, measured in accordance with Section 9.108.070(C).

If Council decides to lift the moratorium on dispensaries the language in red above should be deleted.

Council asked that the moratorium remain in place so this change is unnecessary.
• Under 9.108.050 Conditional use permit application is the following language:

B.1. Proof that the applicant has received a local license for the proposed premises, and the local license is in good standing, or a statement that the applicant is applying for a local license for the proposed premises concurrently with the conditional use permit application.

Staff recommends that this provision be eliminated. Requiring a local license prior to the Condition Use Permit process increases the time necessary to get a business approved and operating. The CUP process is related to land use and can be considered in advance of a license being issued. Many times, the applicant for a CUP is a developer a nd this provision requires them to get a license that they will never use since the ultimate licensee will be another party.

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Council agreed with this recommendation and the draft ordinance includes the revision.
• Also under 9.108.050 Conditional use permit application is the following language:
a. An environmental plan indicating how cultivation and/or manufacturing will be conducted in accordance with state and local laws related to hazardous material disposal, land conversion, grading, electricity usage , water usage, and agricultural discharges.
b. An emergency response plan which complies with Title 8 of this code and California Fire Code Section 401, and sets out standard operating procedures to be followed by all individuals in case of a fire, chemical release, chemical spill, or other emergency.

Staff recommends that these provisions be eliminated as permit and inspection requirements from the water agencies, County and State cover these items and the information is duplicative and is not necessary for the City CUP application.

Council agreed with this recommendation.
• Under 9.108.070 Locational requirements is the following language:

A. 2. Within two hundred fifty feet of East Palm Canyon Drive or a residential zone.

B. 3. Within two hundred fifty feet of East Palm Canyon Drive.

C. 2. Setbacks from East Palm Canyon Drive shall be measured to the nearest edge of the right-of-way for East Palm Canyon Drive.

Staff recommends that the 250 -foot setback from East Palm Canyon (EPC) be eliminated. There is no other street in the City with a similar prohibition and the design standards applied to cannabis businesses have resulted in facilities of at least as high quality as surrounding businesses. If the EPC setback is eliminated the language in red above should be deleted.

Council was supportive of removing the 250 -foot setback provision from East Palm Canyon and ordinance revisions will include the necessary changes. • Under 9.108.080 Conditions of approval is the following language:

A. 6. From a pub lic right -of-way, there should be no exterior evidence of the cannabis business except for any permitted on-site signage.

If the decision is made to accept the Planning Commission recommendation related to visibility into a business, this provision should be eliminated.

Council agreed with this recommendation coupled with the regulations suggested under 5.88.070.

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Definition of Residential Zone – Council asked for a future discussion on language to revise the definition of a residential zone for the purposes of the setback requirements.

Currently Resort Residential and Mobile Home Park zones are not subject to the setback requirement. Adding these areas can be accomplished, but would result in at least two licensed businesses becoming legal non-conforming.

PART II TAXES AND FEES
In calendar year 2021, total cannabis taxes paid to Cathedral City were $4,971,001.

Retail cannabis taxes collected in 2021 declined compared to the previous year:

Total cannabis taxes collected in 2021 were the highest ever:

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Taxes in Neighboring Jurisdictions

Staff reviewed the taxes charged to cannabis businesses in the cities of Palm Springs, Palm Desert, Desert Hot Springs and Coachella. Indio, La Quinta, Indian Wells and Rancho Mirage do not currently allow cannabis businesses.

Retail Taxes:

City Tax Rate
Cathedral City – 10% tax on gross proceeds
Palm Springs - 10% tax on gross proceeds
Palm Desert - 10% tax on gross proceeds
Desert Hot Springs - 10% tax on gross proceeds
Coachella - 6% tax on gross proceeds

Cultivation Taxes:

Note: Since some cities have variable rates based on the size of the facility a calculation is included showing the annual tax on a 6,000 square foot facility which is the average among all currently operating cultivation facilities in Cathedral City.

City Tax Rate Tax on 6000 sq. ft.
*Desert Hot Springs - $10.20/sq.’ $61,200
*Coachella - $15/sq.’ up to 20k; $7.50/sq.’ over $90,000

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Cathedral City $15/sq.’ $90,000
Palm Desert $13/sq.’ $78,000
Palm Springs $10/sq.’ $60,000

*In addition to the square foot tax Coachella also charges a gross proceeds tax of 4% *Desert Hot Springs previously had a two -tiered rate structure and recently eliminated the tiers resulting in a rate of $10.20 per square foot regardless of size.

Manufacturing Taxes:

Coachella - $15/sq.’ up to 20k; $7.50/sq.’ over plus 2% gross proceeds Cathedral City - $.05/gram on crude; $.10/gram on distillate; $.40/gram other Palm Springs 2% tax on gross proceeds
Palm Desert 2% tax on gross proceeds
Desert Hot Springs 0

*The Cathedral City enabling legislation requires a per gram tax on products manufactured. The current schedule was designed to approximate the 2% gross proceeds level. The mix of products produced will affect taxes paid.

Distribution and Testing Taxes:

Coachella - 2% gross proceeds on distribution, 1% gross proceeds on testing Cathedral City - 0 on product cultivated or manufactured (and taxed) in CC Palm Springs - 0
Palm Desert - 0
DHS - 0

Previous discussions with the task force and the Council have indicated a need to review the City tax structure. Staff has narrowed the realistic options for revisions to the following for ease of discussion:

1. Cultivation Taxes – Cathedral City cultivation taxes are very consistent in terms of collection and payment and represent the most reliable component of the tax base. If a revision in cultivation taxes is desired, staff recommends limiting it to the definition of the taxable area. Questions and con cerns have arisen over time regarding taxing the entire facility (our current practice) as opposed to just the canopy space. Most of the regional cities report taxing the canopy space only (which we would define as the grow rooms). Changing the definitio n of cannabis cultivation space in section 3.48.020 would apply equally to all businesses regardless of size and would treat existing cultivators consistently with future operators. If Cathedral City adopted a provision to tax only the grow rooms themselves, staff estimates the result would be a reduction in the taxable area of 10 to 15% which would result in a revenue reduction (based on 2021 taxes paid) of approximately $246,000 to $369,000 annually.

Staff has also received a request to consider a delay in the start date for when taxes must be paid. Currently cultivation taxes become due when a business receives its certificate of occupancy (COO). The argument is that it takes time to load in the plants and then time for the crop to mature before the b usiness generates any revenue. An alternative is making taxes due 60 days after COO.

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This would not affect any existing business and would not reduce existing revenues.

2. Retail Taxes – In general the retail industry reports they are struggling due to continued competition with the black market and due to the proliferation of retailers in Palm Springs. Cathedral City’s tax rate currently is consistent with all the other Coachella Valley cities except for Coachella. Each 1% reduction in the tax rate would result in a reduction in revenue to the City of approximately $150,000 based on 2021 collections.

Council asked for further information including data on tax rates in other jurisdictions beyond the Coachella Valley. A complete summary is attached.

3. Manufacturing Taxes – Manufacturing taxes represent the smallest part of the City’s tax collections. Manufacturing taxes have already been reduced two times on the promise that reduced taxes would result in increased activity. This has not proven to be the case and staff recommends no further reductions.

4. Fees – The costs associated with the Condition Use Permit process, background checks and initial licenses are recovered on a deposit basis where the business makes an initial deposit of $7,500 and actual c osts of services are charged against the deposit. If additional costs are incurred the applicant is charged and any overpayment is refunded once the permits are all issued, and the review process is completed. Renewal fees are $5,900 per renewal. Fees are all based on actual costs incurred and may not generate a “profit” for the City. Reducing ordinance requirements, such as the number of background checks required would have the effect of reducing fees accordingly.

FISCAL IMPACT:

In calendar year 2021, total cannabis taxes paid to Cathedral City were $4,971,001.

ATTACHMENTS:

Chapter 5.88 Cannabis Regulations
Chapter 9.108 Cannabis Land Use
California Local Cannabis Taxes
Cannabis Ordinance Amendments (May 2022)

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5.88.010 Purpose and intent.

A. This chapter shall provide for the regulation and licensing of medicinal and adult-use cannabis businesses throughout the city in conformance with applicable state and local laws and regulations pertaining to medicinal and adult-use cannabis.

B. The city council finds that it is necessary for Cathedral City to adopt local licensing standards for medicinal and adult-use cannabis businesses for the purpose of controlling and regulating the cultivation, distribution, transport, storage, manufacturing, processing, and sale of medicinal cannabis and medicinal cannabis products to qualified patients, and adult-use cannabis and adult-use cannabis products to adults twenty-one years of age and over.

C. The purpose of this chapter is to regulate all commercial cannabis activity in Cathedral City, as defined in the MAUCRSA, to the extent authorized by state law and in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety, morals, and general welfare of residents and businesses within the city. (Ord. 800 § 1, 2017)

5.88.015 Findings.

The city council finds and determines that local licensing standards pertaining to cannabis business activities are necessary to protect the public health and safety. The city council further finds that public health and safety is best served by the adoption of the ordinance codified in this chapter. (Ord. 800 § 1, 2017)

5.88.020 Relationship to other laws.

A. Except as otherwise specifically provided herein, this chapter incorporates the requirements and procedures set forth in the MAUCRSA. In the event of any conflict between the provisions of this chapter and the provisions of the MAUCRSA or any other applicable state or local law, the more restrictive provision shall control.

B. Except as expressly stated herein, cannabis businesses must comply with all other city codes and regulations. Nothing in this chapter shall be construed as permitting a cannabis business to operate at any time in a manner that is in violation of all other applicable state and local laws. (Ord. 800 § 1, 2017)

5.88.025 Definitions.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) Unless otherwise defined herein, the terms in this chapter shall have the same meaning as set forth in the MAUCRSA and any rules promulgated pursuant thereto. In addition, the following terms shall be defined as follows:
“Cannabis business” means any person engaged in commercial cannabis activity. “Certificate of accreditation” means a certificate issued by an accrediting body to a licensed testing laboratory, entity, or site to be registered in the state. “City” means Cathedral City, California.
“City manager” shall mean the city manager of the city or duly authorized designee. “Community development director” shall mean the community development director of the city or duly authorized designee.
“Dispensary” means a cannabis business that engages in the retail sale and delivery of cannabis or cannabis products to customers. A dispensary, as that term is used in this code, is a “retailer” under the MAUCRSA.
“Distribution site” means a facility where cannabis and cannabis products are stored or inspected by a distributor for the purposes of distribution. “Distributor” means a cannabis business that engages in the distribution and transportation of cannabis and cannabis products to other cannabis businesses. “Good cause” for purposes of denying an initial local license issuance, for suspending or revoking a local license, or for denying a local license renewal, means:

1. The applicant or licensee has violated any of the terms, conditions or provisions of this chapter, of state law, of any regulations and rules promulgated pursuant to state law, any applicable local rules and regulations, or any special terms or conditions placed upon its conditional use permit, state license, or local license;

2. The premises has been or is proposed to be operated in a manner that adversely affects the public health, safety or welfare or the safety of the immediate neighborhood in which the establishment is located;

3. The applicant or licensee has knowingly made false statements, misrepresentations or material omissions on an application form, renewal form, or any other document submitted to the city;

4. The criminal history of the applicant’s or licensee’s owner(s) indicates that one or more of the owner(s) lack good moral character;

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) 5 An owner of the applicant or licensee is a licensed physician providing physician’s recommendation to qualified patients for medicinal cannabis;

6. The applicant or licensee, or any owner of the applicant or licensee, operated a cannabis business in violation of this chapter or Chapter 9.108 of the code;

7. The applicant or licensees, or any owner of the applicant or licensee, is a person who is prohibited from holding the license under this chapter;

8. The premises proposed to be licensed or the licensed premises is located on land that is owned by the United States and held in trust for any federally-recognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States;

9. For renewals, suspensions and revocations, the licensee has allowed a person whose criminal history indicates that person is not of good moral character to work within the premises as an employee, independent contractor, or volunteer; or

10. For renewals, suspensions and revocations, the licensee fails to allow inspection of the security recordings, activity logs, or business records of the licensed premises by city officials.
“Good moral character” means having a personal history that demonstrates the propensity to serve the public in the licensed area in a manner that reflects openness, honesty, fairness, and respect for the rights of others and for the law. In determining good moral character, the following standards shall apply:

1. A person who has been convicted of any of the following offenses shall not be considered to be of good moral character:
a. A violent felony, as specified in Penal Code Section 667.5(c); b. A serious felony, as specified in Penal Code Section 1192.7(c); c. A felony conviction involving fraud, deceit, or embezzlement; d. A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor;
e. A felony conviction for selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; f. A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update)

2. Except as provided in paragraph 1 of this definition, and notwithstanding Chapter 2 of Division 1.5 of the California Business and Professions Code, a prior conviction where the sentence, including any term of probation, incarceration, or supervised release is completed for possession of, possession for sale, sale, manufacture, transportation, or cultivation of cannabis shall not be the sole ground for a determination that a person lacks good moral character.

3. An owner of a licensee who is convicted of any controlled substance felony subsequent to issuance of a local license shall be deemed to lack good moral character. “Identification card” or “ID card” means a valid identification card issued pursuant to Section 11362.7 et seq., of the California Health and Safety Code. “Identification card holder” or “ID card holder” means an individual who is a qualified patient who has applied for and received a valid ID card pursuant to Article 2.5 of Chapter 6 of Division 10 of the California Health and Safety Code. “Licensed premises” means a premises for which a local license has been issued pursuant to this chapter.
“Licensee” means a person who has been issued a local license pursuant to this chapter.
“Limited access area” means a building, room or other area that is part of the licensed premises where cannabis is grown, cultivated, stored, weighed, displayed, packaged, or sold to other cannabis businesses with limited access to only authorized personnel.
“Local license” means a license granted by the local licensing authority, pursuant to this chapter.
“Local licensing authority” means the city manager.
“Manufacturing site” means a premises where a manufacturer engages in the manufacture of cannabis products.
“Medicinal and Adult-Use Cannabis Regulation and Safety Act” or “MAUCRSA” means Division 10 of the California Business and Professions Code. “Medicinal cannabis patient” means both a qualified patient without an identification card and an ID card holder.
“Non-supervisorial employee” means an individual employed by the licensee that does not have the authority to hire, fire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees, or responsibility to direct them or to adjust their grievances, or effectively to recommend such action, if, in connection

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) with the foregoing, the exercise of that authority is not of a merely routine or clerical nature, but requires the use of independent judgment. For the purposes of this definition, an individual shall not be considered an employee of a licensee if the individual is working for the licensee pursuant to a written agreement that expressly states the individual is an independent contractor.
“Owner” means any of the following:

1. A person with an aggregate ownership interest of ten percent or more in the person applying for a license or a licensee, unless the interest is solely a security, lien, or encumbrance.

2. The chief executive officer of a nonprofit or other entity.

3. A member of the board of directors of a nonprofit.

4. An individual who will be participating in the direction, control, or management of the person applying for a license.
“Physician,” as used in this chapter, shall mean an individual who possesses a license in good standing to practice medicine or osteopathy from the state of California. “Primary caregiver” shall have the meaning set forth in Section 11362.7(d) of the California Health and Safety Code.
“Qualified patient” shall have the meaning set forth in Section 11362.7(f) of the California Health and Safety Code.
“Seed to sale software” means the track and trace inventory control system established pursuant to Section 26067 of the California Business and Professions Code that utilizes a unique identifier pursuant to Section 26069 of the California Business and Professions Code and tracks transfers of cannabis from seed through sale. Until such a time that the state of California implements Section 26067 of the California Business and Professions Code, the “seed to sale software” shall refer to the third-party tracking software required by Section 5.88.065(P) of this chapter. “State law(s)” shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medicinal Marijuana Program Act); the MAUCRSA, and all other applicable laws and regulations of the state of California. “State license” means a state license issued under MAUCRSA, and includes both an A-license and an M-license, as well as a testing laboratory license.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) “State licensing authority” shall mean the state agency responsible for the issuance, renewal, or reinstatement of a state license, or the state agency authorized to take disciplinary action against a state licensee. (Ord. 817 § 1, 2018; Ord. 800 § 1, 2017)

5.88.030 Local license in addition to business license
or other permit.

The local license required by this chapter shall be in addition and supplemental to any other business license or any permit required by any ordinance of the city. (Ord. 800 § 1, 2017)

5.88.035 Local license required.

A. It is unlawful to operate any cannabis business in Cathedral City without first having obtained a local license under this chapter. Notwithstanding the foregoing, a temporary cannabis event organizer and cannabis businesses participating in a temporary cannabis event put on by a temporary cannabis event organizer are not required to obtain a license under this chapter provided that the organizer and participants comply with subsection D below.

B. Beginning January 1, 2018, it is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis activities. Notwithstanding the foregoing, any licensee operating in the city prior to January 1, 2018 may continue to operate without a state license provided that it applies for the appropriate temporary or permanent license(s) from the state no later than forty-five days from the date that the state begins accepting applications. If the state denies the application for a temporary or permanent license(s) for any reason, the cannabis business must cease operations until such time as it obtains the appropriate temporary or permanent state license(s).

C. The city may grant a local license prior to the applicant having obtained a state license. A cannabis business must possess the requisite state and local licenses prior to receiving a certificate of occupancy from the city.

D. The city may permit temporary cannabis events by granting the applicant a special use permit for the event in accordance with the procedures for special use permits established in Chapter 9.68 of this code. Notwithstanding any provision in Chapter 9.68 to the contrary, the city council shall have the authority to approve, conditionally approve or deny a special use permit for a temporary cannabis event. A special use permit for a temporary cannabis event shall only be granted to a person who holds a cannabis event organizer license issued by the California Bureau of Cannabis Control, a copy of which must be submitted with the special use permit application. The applicant shall provide the city with a copy of the temporary cannabis event license approved by the state prior to the commencement of the temporary

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) cannabis event. Temporary cannabis events shall comply with all regulations set forth in 16 C.C.R. Sections 5601—5604, as they may be amended from time to time.

Temporary cannabis event organizers and cannabis businesses participating in a temporary cannabis event shall not be subject to the cannabis business operational requirements in Sections 5.88.065 through 5.88.100, inclusive, of this chapter or Sections 9.108.070 and 9.108.080 of this code, but the city council may apply appropriate conditions of approval on the operation of the temporary cannabis event pursuant to Section 9.28.060. Cannabis event organizers and cannabis businesses that participate in temporary cannabis events are subject to the tax imposed in Section 3.48.020 of this code. (Ord. 829 § 1, 2019; Ord. 800 § 1, 2017)

5.88.040 Local license application process.

A. The local licensing authority shall not accept an application for a dispensary proposed to be located south of Interstate 10 after November 23, 2016.

B. All applications for local licenses required pursuant to this chapter shall be made upon current forms prescribed by the local licensing authority. All applications for local licenses must be accompanied by the application fee as established by resolution of the city council as amended from time to time.

C. An applicant shall file with the local licensing authority the following at the time of application for a local license:

1. An operating plan for the proposed cannabis business including the following information:
a. A general description of the types of products and services to be provided by the facility;
b. A floor plan designating all interior dimensions of the licensed premises and the layout of the cannabis business, including all limited access areas, areas of ingress and egress, and all security cameras. Such floor plan shall also show the principal uses of the floor area depicted therein. For cultivation sites, such floor plan shall distinguish all dimensions of areas in which plants are located;
c. An employee, independent contractor, and volunteer list, if one exists; and d. For a dispensary, a statement confirming whether delivery service of cannabis to any location outside the premises will be provided and the extent of such service, and in the event delivery is provided, a detailed delivery plan detailing how the dispensary will comply with all requirements of this chapter, MAUCRSA, and any other applicable state or local laws.

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2. Authorization for the local licensing authority and community development director to seek verification of the information contained within the application and authorization for the chief of police to conduct background checks of the owner(s).

3. Proof of the nature of the cannabis business’s organizational status, such as articles of incorporation, by-laws, organizational minutes, partnership agreements, and other documentation may be required by the city.

4. Proof that the applicant is, or will be, entitled to possession of the premises for which application is made. Evidence of lawful possession consists of properly executed deeds of trust, leases, evidence of ownership of the licensed premises, or other written documents acceptable to the local licensing authority. The applicant must disclose whether, to the applicant’s knowledge, the premises is located on land that is owned by the United States and held in trust for any federally-recognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States.

5. The applicant shall provide any additional information that the local licensing authority may request to process and fully investigate the application. Failure to provide such additional information may result in denial of the application.

D. If the application is incomplete, the applicant shall have an opportunity to cure the incompleteness within thirty days of written notice of incompleteness by the local licensing authority.

F. The local licensing authority shall issue a license to any applicant who has submitted a complete application and paid the application fee unless the local licensing authority finds that good cause exists to deny the license. A local license shall not be issued to a dispensary that is proposed to be located south of Interstate 10 unless the application for the license was made on or before November 23, 2016.

G. Upon the approval of a local license, and as a condition of the license becoming effective, the applicant shall pay to the city the regulatory licensing fee, if any, established by resolution of the city council.

H. A local license issued pursuant to this chapter shall specify the date of issuance, the period of licensure, the name of the licensee, the address of the licensed premises, and the nature of the cannabis business licensed. All local licenses are valid for one year. (Ord. 800 § 1, 2017)

5.88.045 Conditions of approval, administrative rules.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) A. The local licensing authority may place conditions upon the approval of any local license which are, in the opinion of the local licensing authority, reasonably related to the protection of the health, safety and welfare of the neighborhood in which the proposed licensed premises is to be located and of the general public.

B. The local licensing authority is authorized to make rules, policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures, and the administration and procedures to be used and followed in the application process. (Ord. 800 § 1, 2017)

5.88.050 Changes and modifications of local licenses.

In addition to any requirements in Chapters 9.108 and 9.72 of this code, the following requirements apply for transfers of or changes to the ownership of a licensee, modifications to a licensed premises, and changes of location of a cannabis business.

A. Change of Ownership. Subsequent to the issuance of a local license, the licensee shall report any transfer of ownership in the cannabis business to the local licensing authority on forms prescribed by the local licensing authority and pay the processing fee established by resolution of the city council. A change of ownership that solely involves a previously approved owner no longer being an owner of the cannabis business shall be reported to the local licensing authority within thirty days of the change. A change in ownership that involves adding a new owner to the previously approved ownership must be approved by the local licensing authority in advance. All proposed new owners must submit to a background check conducted by the chief of police. The local licensing authority shall approve the change in ownership unless there is good cause to deny the change.

B. Modification of Licensed Premises. A licensee shall not make physical changes, alterations, or modifications to the licensed premises that materially or substantially alters the licensed premises from the plans approved by the local licensing authority without the prior written approval of the local licensing authority. Material changes include, but are not limited to: an increase or decrease in the total square footage of the licensed premises or the addition, sealing off, or relocation of a wall, common entryway, doorway, or other means of public ingress and/or egress.

Applications for modifications of licensed premises shall be made on forms prescribed by the local licensing authority and shall be accompanied by the processing fee established by resolution of the city council. The local licensing authority shall approve the proposed modification if it meets all requirements of this chapter and all other applicable state laws and city codes and ordinances, and will not present a threat to the public health, safety or welfare.

C. Change of Location.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update)

1. A licensee may apply to the local licensing authority to change the location previously approved for such local license to any other place in Cathedral City, but it is unlawful to cultivate, manufacture, distribute, test, store or sell cannabis at any such place or location until express permission to do so is granted by local licensing authority and the city has issued a conditional use permit to the licensee at the new location.

Applications for changes of location shall be made on forms prescribed by the local licensing authority and be accompanied by the processing fee established by resolution of the city council.

2. In permitting a change of location, the local licensing authority may change any existing conditions of approval on the license and/or add new conditions of approval as determined appropriate by the local licensing authority.

3. The local licensing authority may permit a dispensary that is located south of Interstate 10 to relocate to a new location north or south of Interstate 10. A dispensary that is located north of Interstate 10 may only relocate to a new location that is north of Interstate 10. (Ord. 800 § 1, 2017)

5.88.055 Renewal of a local license.

A. A cannabis business that desires to renew its license shall apply for the renewal no less than thirty days prior to the local license’s expiration date. If the cannabis business files a renewal application within thirty days prior to expiration, the cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The local licensing authority may accept or reject such late filing in its discretion. The local licensing authority may elect to administratively continue a local license past its expiration date, provided that the licensee has submitted a renewal application that is pending final action.

B. An application for renewal shall be submitted on forms provided by the local licensing authority, accompanied by the processing fee established by resolution of the city council. The following information shall be submitted as a part of the renewal application:

1. An up to date list of the employees, independent contractors, and volunteers working at the licensed premises.

2. Proof that no changes to the ownership of the licensee has occurred since last approved by the local licensing authority.

3. Proof that the licensee is still entitled to the possession and use of the licensed premises.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update)

4. For licensees that have ten or more full-time equivalent non-supervisorial employees, proof that the licensee has entered into and abided by the terms of a labor peace agreement.

5. Any other information that the local licensing authority deems necessary to determine whether to renew the local license.

C. All owners of the cannabis business must be fingerprinted each year at renewal if required in the discretion of the local licensing authority.

D. The local licensing authority shall renew a local license if the licensee has submitted a complete application and paid the application processing fee, unless the local licensing authority finds that good cause exists to deny the license renewal.

Notwithstanding the foregoing, the local licensing authority in its discretion may elect not to renew any local license if it determines that the licensed premises has not been used for a cannabis business, without reasonable cause as determined by the local licensing authority, for a period of at least one year.

E. Unless administratively continued pursuant to subsection A, a local license is immediately invalid upon expiration and the cannabis business shall cease operations.

If a local license expires, the local licensing authority may approve a renewal of the expired license at any time up to three months from the expiration date of the license.

After the license has been expired for three months, the license may not be renewed by the local licensing authority, and the holder of the expired license must apply for and obtain a new cannabis license to resume operations. (Ord. 817 § 1, 2018; Ord. 800 § 1, 2017)

5.88.060 Appeal of decision on local license.

Any decision regarding the local licensing authority’s approval, conditional approval, denial, of an initial local license, renewal thereof, or a change to the license requested under Section 5.88.050 may be appealed to the city council in accordance with the provisions of Section 2.04.100 et seq., of this code. (Ord. 800 § 1, 2017)

5.88.065 Cannabis business operational requirements.

All cannabis business must comply with the requirements set forth in this section.

A. General Obligation to Operate in Compliance. A cannabis business shall operate in compliance with all applicable state and local laws and regulations governing cannabis businesses.

B. General Obligation to Pay Taxes. A cannabis business must pay all applicable taxes pursuant to federal, state, and local law, including but not limited to, the cannabis

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) tax required by Chapter 3.48, state and local sales and use taxes, and state excise taxes.

C. General Obligation for Compliant Facilities. The licensed premises shall fully comply with all applicable rules, regulations, and laws including, but not limited to, building and safety codes, and the Americans with Disabilities Act.

D. Background Checks. Prior to commencing any work within a cannabis business, any individual who will work within a licensed premises or have access to cannabis or cannabis-products must submit to a background check that demonstrates they are of good moral character and receive a cannabis industry worker identification card from the city. The background check must include fingerprinting for criminal history conducted by the Cathedral City police department or any other entity determined to be satisfactory by the Cathedral City police department. Each cannabis industry worker identification card issued shall expire after two years unless renewed. A decision to deny or not renew a cannabis industry worker identification card may be appealed in accordance with Section 5.88.060. A cannabis industry worker identification card may be revoked or suspended by the city at any time, in accordance with the procedures in Chapter 13.150 of this code, if it is determined that the card holder is no longer of good moral character. A cannabis business shall not employ or utilize the services of any individual who is required to have a city-issued cannabis industry worker identification card less that individual possesses a valid city-issued cannabis industry worker identification card at all times, regardless of whether the individual is an employee, independent contractor, or volunteer. The city may charge a fee to recover its reasonable costs of processing and issuing cannabis industry worker identification cards in an amount established by resolution of the city council.

1. The individual’s complete name, address, and last known telephone number;

2. The individual’s hire date and, if applicable date of termination;

3. A copy of the individual’s city-issued cannabis industry worker identification card;
The register and required records must be made available for inspection by any city officer or official for purposes of determining compliance with the requirements of this chapter during standard business hours of the licensed facility or at any other reasonable time.

F. Employees and Volunteers Age Requirement. A cannabis business shall not employ an individual less than twenty-one years of age, nor may a cannabis business

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) permit an individual less than twenty-one years of age to volunteer at the cannabis business. Notwithstanding the foregoing, a cannabis business may employ and allow persons eighteen years of age or older to volunteer at the cannabis business if the business holds an M-license from the state and the state expressly permits such persons to work within the business.

G. Age Restrictions. A cannabis business may not permit an individual less than twenty-one years of age to enter, or be within, its licensed premises, except that a cannabis business with an M-license from the state may allow persons eighteen years of age or older within the licensed premises if they are an ID card holder or qualified patient with physician’s recommendation from a licensed physician.

H. Secure Storage of Product. Cannabis and cannabis products possessed by a cannabis business shall be kept and stored in a secured manner at all times.

I. Cannabis Consumption on Licensed Premises. Smoking, vaporizing, ingesting, or otherwise consuming cannabis and cannabis products at a licensed premises is prohibited, except on the premises of a licensed dispensary in accordance with Section 5.88.070(K). “Licensed premises” as used in this subsection includes the actual building, as well as any accessory structures, common areas and parking areas. A sign shall be posted at each entrance to a licensed premises that clearly and legibly states, “Smoking, vaporizing, ingesting, or otherwise consuming cannabis or cannabis products on these premises or in their vicinity is prohibited and a violation of the Cathedral City Municipal Code.”
J. Prohibition on Alcohol and Tobacco Sales, Distribution, or Consumption on Licensed Premises. A cannabis business shall not sell, provide, store, or distribute any alcoholic beverages or tobacco products, or allow such products to be consumed on the licensed premises.

K. On-Site Signage. On-site signage for a cannabis business that is viewable from the exterior of the cannabis business shall comply with all local signage laws applicable to the licensed premises, including Chapter 9.62 of this code. Signage may not be designed to appeal to children, or contain any false or misleading statements, or make any misrepresentations.

L. Advertising. A cannabis business shall not advertise in a manner intended to encourage persons under twenty-one years of age to consume cannabis or cannabis products. It shall be unlawful for any cannabis business to make any claims that a product is safe because it is tested. All advertisements, including off-site advertising signs, shall comply with Chapter 15 of MAUCRSA.

M. Display of License. A cannabis business shall display a copy of its local license issued pursuant to this chapter in a conspicuous place at or near the entrance to the licensed premises.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) N. No Physician Evaluations on Licensed Premises. A cannabis business shall not permit a physician to evaluate potential medicinal cannabis patients or to provide a physician’s recommendation for medicinal cannabis within its licensed premises.

Cannabis businesses shall not offer or provide any form of remuneration to a physician who provides physician’s recommendations for medicinal cannabis.

O. Community Relations Designee. A cannabis business must provide the community development director with the name, phone number, facsimile number, and email address of an on-site community relations representative or staff member or other representative to whom the city can provide notice if there are operating problems associated with the cannabis business or refer members of the public who may have complaints or concerns regarding the cannabis business. The cannabis business shall also provide this contact information to all neighboring businesses located within one hundred feet of the cannabis business, as measured in a straight line without regard to intervening structures, between the front doors of each establishment.

P. Seed to Sale Tracking Required. Until such a time that the state of California fully implements the track and trace program required by Section 26067 of the Business and Professions Code, a cannabis business must utilize seed to sale software, third- party software that tracks all sales, transfers, purchases, receipts, deliveries of cannabis and cannabis products. The software must be capable of producing electronic shipping manifests, tracking all cannabis inventory in possession of the cannabis business, promptly identifying a discrepancy in the stock, and tracking cannabis from the end purchaser back to its source in the event of a serious adverse event.

Q. Accurate Weights and Measures. Scales and weighing mechanisms used by a cannabis business to weigh non-waste products must be able to weigh to within 1/100th of a gram, shall be maintained in good working order and shall be subject to annual inspection by either a Riverside County agricultural commissioner’s office weights and measures official or a licensed scale company.

R. Waste Disposal.

1. Chemical, Dangerous and Hazardous Waste. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules or other requirements. This may include, but is not limited to, the disposal of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

2. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non-medicinal cannabis waste. If necessary to protect the health and safety of individuals working on a licensed premises, a cannabis business may grind the stalk of a cannabis plant outside of its licensed premises provided all grinding activities occur within twenty feet of the licensed premises and cannot be seen from any public street.

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3. Composting. A cannabis business may compost cannabis waste onsite, in accordance with this provision and all other applicable laws, rules, and regulations.

S. General Sanitary Requirements. A cannabis business must ensure that its licensed premises are maintained in a sanitary manner and activities on its licensed premises are conducted in a sanitary manner.

1. All facilities of a cannabis business must have adequate and sufficient access to bathrooms and hand-washing facilities with running water at a suitable temperature.

2. Hand-washing facilities shall be located where good sanitary practices require workers to wash or sanitize their hands, and provide effective hand-cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.

3. All workers that engage in the preparation or dispensing of edible cannabis products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food.

T. Security Requirements. The licensed premises of a cannabis business must comply with all of the following security requirements:

1. Video Surveillance. The licensed premises must be equipped with a video surveillance system that meets all of the requirements set forth in this subsection. a. Security cameras and digital storage of recordings shall be maintained in good condition and used in an on-going manner, twenty-four hours per day, seven days per week.
b. The security system must maintain at least one hundred twenty concurrent hours of digitally recorded video for each security camera in the licensed premises.

Security footage should be stored in an MPEG4, MJPEG, H.264, or another format approved by the local licensing authority in writing.
c. Security cameras must provide adequate and sufficient coverage for the facility, which must include, but need to be limited to, all limited access areas, all areas of ingress and egress, point of sale, the public areas, storage areas, and any other areas as required by this chapter and the MAUCRSA.
d. The video surveillance system must be equipped with a failure notification system that provides prompt notification to the manager of record of the licensed premises of the cannabis business of any surveillance interruption or complete failure of the surveillance system that lasts longer than fifteen minutes. e. The video surveillance system shall have sufficient battery backup to support a minimum of fifteen minutes of recording in the event of a power outage.

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2. Alarm System. The licensed premises shall have an audible interior and exterior security alarm system installed on all perimeter entry points and perimeter windows, operated, and monitored by a security company licensed by the Department of Consumer Affairs, Bureau of Security and Investigative Services.

3. Signage Requirement. The licensed premises must comply with the following signage requirements.
a. A sign shall be posted in a conspicuous place near each point of public access which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one inch in height, stating “All Activities Monitored by Video Camera.”
b. Limited access areas shall be clearly identified by the posting of a sign which shall be not less than twelve inches wide and twelve inches long, composed of letters not less than one-half inch in height, which shall state, “Limited Access Area— Authorized Personnel Only.”

4. Lighting. The business entrance(s) and all window areas shall be illuminated during evening hours. The cannabis business shall comply with the city’s lighting standards regarding fixture type, wattage, illumination levels, and shielding.

5. Commercial-Grade Locks. All points of ingress and egress to a licensed premises shall ensure the use of commercial-grade, nonresidential door locks or window locks.

6. Notification of Local Licensing Authority and Law Enforcement. A cannabis business shall notify the local licensing authority and the appropriate law enforcement authorities within twenty-four hours after discovering any of the following:
a. Significant discrepancies identified during inventory; b. Diversion, theft, loss, or any criminal activity involving the dispensary or any employee or agent of the dispensary;
c. The loss or unauthorized alteration of records related to cannabis, cannabis patients, primary caregivers, or dispensary employees or agents; or d. Any other breach of security.

U. Subletting Prohibited. Licensees are not authorized to sublet any portion of a licensed premises for any purpose, unless all necessary applications to modify the existing licensed premises to accomplish any subletting have been approved by the local licensing authority.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) V. Recordkeeping. Cannabis businesses shall keep and maintain all records specified in Chapter 16 of the MAUCRSA and shall make the same available for inspection and examination of the local licensing authority or its duly authorized representatives during standard business hours of the licensed facility or at any other reasonable time. Cannabis businesses are required to exercise due diligence in preserving and maintaining all required records.

W. Transactions. Licensees shall only do business with cannabis businesses that licensed or permitted to do business in their respective jurisdictions. (Ord. 2827 § 1, 2019; Ord. 807 §§ 1, 2, 2018; Ord. 800 § 1, 2017)

5.88.070 Dispensary operational requirements.

In addition to the operation requirements in Section 5.88.065, a dispensary must comply with the requirements set forth in this section.

A. Limited Hours of Operation. A dispensary may only be open to the public and engage in sales between the hours of eight a.m. and ten p.m.

B. Product Not Visible To Public. The display of cannabis and cannabis products for sale shall not be visible from outside the licensed premises.

C. Age Restricted Entry. A dispensary may not permit an individual less than twenty-one years of age into the licensed premises, except a dispensary with an M- license from the state may permit an individual aged eighteen years or older into the licensed premises if the dispensary verifies the individual is an ID card holder or qualified patient with a physician’s recommendation.

D. Cannabis Paraphernalia Sales. Dispensaries may sell or otherwise provide equipment, supplies, and paraphernalia used to consume cannabis and cannabis products.

E. Electronic Point-of-Sale System Required. Dispensaries must have an electronic point of sale system that is either part of their seed to sale software or integrates with their seed to sale software. The electronic point of sale system must be capable of producing an electronic or automatic paper record for all transactions associated with any product sold, rented, or otherwise provided to the customer.

F. No Sales of Expired Product. A dispensary may not sell any expired products, cannabis or cannabis products. A dispensary shall not alter, edit, or adjust in any manner an expiration date on any item or product once affixed by its manufacturer.

G. Acceptable Forms of Payment. The local licensing authority may adopt regulations that prohibit a dispensary from accepting certain forms of payment from customers for cannabis and cannabis products. A dispensary may accept cash

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) payments unless the local licensing authority has adopted a regulation prohibiting the acceptance of cash.

H. Handling of Edible Cannabis Products. A dispensary that possesses edible cannabis products shall comply with the provisions of all relevant state and local laws regarding the storage, handling, and sale of food.

I. Sale of Untested Products. A dispensary may sell cannabis or cannabis products that have not been tested by a testing laboratory from January 1, 2018 until such time as determined by the state. Thereafter, all cannabis and cannabis products sold by a dispensary must be tested by a testing laboratory prior to sale to a purchaser in accordance with MAUCRSA.

J. Delivery of Cannabis and Cannabis Products. A dispensary that provides delivery service shall comply with the following requirements:

1. The dispensary shall not delivery cannabis or cannabis products to any location outside of California or to any location within California where the delivery of cannabis or cannabis products has been prohibited by the city or county.

2. The delivery service must be approved by the local licensing authority as a part of the licensing process. The deliveries must be conducted in accordance with any relevant state laws, this code, any applicable local laws in the delivery location, and any conditions imposed upon the license.

3. The dispensary must keep in place standard operating procedures that ensure the safety and security of those individuals engaging in delivery and the and security of all cannabis being delivered, including procedures to prevent diversion.

4. A dispensary may only deliver cannabis to a specific street address requested by the purchaser. Deliveries to public parks and schools are expressly prohibited.

5. Upon arrival at the delivery address and prior to transferring any cannabis or cannabis products, the delivery person must verify and confirm that the identity of the recipient is the same as the person who requested the delivery and that the person is either twenty-one years of age or a qualified patient or primary caregiver.

6. A dispensary shall report to the local licensing authority and local law enforcement any vehicle accidents, diversions, losses, or other reportable incidents such as thefts or suspicious activity, that occur during transportation and delivery, within twenty-four hours.

7. The delivery shall keep a delivery manifest that includes the following information:
a. All cannabis that will be transported, accurately inventoried;

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) b. Departure date and approximate time of departure; c. Arrival date and approximate time of arrival;
d. Name, address, local license number and CUP number of the originating cannabis business;
e. Name and address of the individual requesting the delivery; f. Delivery vehicle make, model, and license plate number; and g. Name and signature of the individual transporting the cannabis.

K. Consumption of Cannabis and Cannabis Products on Premises. Cannabis and cannabis products may be smoked, vaporized, ingested or otherwise consumed on the licensed premises of a dispensary, subject to the following regulations:

1. Access to the area where cannabis consumption is allowed must be restricted to persons twenty-one years of age and older. The dispensary shall be responsible for checking identification and ensuring that underaged individuals do not enter.

2. Cannabis consumption shall not be visible from any place where persons under the age of twenty-one are permitted.

3. Cannabis consumption must occur within the interior building space of the dispensary. Consumption may not occur on patios, in parking areas, or in any other space that is not fully enclosed.

4. The cannabis business must install and maintain in good working order an odor control system in accordance with Section 9.108.080(A)(1). Odors caused by the consumption of cannabis at the dispensary must not be detectable from any public place.

5. Cannabis consumption shall occur in a space within the licensed premises that is separate from the space that is used to sell cannabis and cannabis products for on- site or off-site consumption.

6. Only cannabis and cannabis products purchased from the dispensary during the same visit by the customer may be consumed within the dispensary. Individuals may not bring cannabis or cannabis products into a dispensary for the purposes of consumption.

7. Cannabis and cannabis products that are only partially consumed on the premises of the dispensary must be repackaged in accordance with Section 5.88.095 prior to leaving the dispensary.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update)

8. Representatives of the city, including, but not limited to, police officers, must be permitted to enter the licensed premises, including all areas where consumption is allowed, at any time during the regular business hours of the cannabis business and/or whenever consumption is occurring on-site. (Ord. 807 § 3, 2018; Ord. 800 § 1, 2017)

5.88.075 Manufacturing site operational requirements.

In addition to the operational requirements in Section 5.88.065, manufacturers must comply with the requirements set forth in this section.

A. Edible Cannabis Products. Edible cannabis products shall be manufactured, packaged and labeled in compliance with MAUCRSA and any implementing regulations adopted by the state.

1. Edible cannabis products must be individually packaged and ready for sale by the manufacturer prior to sale or transfer to another cannabis business.

2. Any person that is involved in the manufacture of edible cannabis products must be a state certified food handler. The valid certificate number of such person must be on record at the manufacturing site where that individual produces edible cannabis products.

3. Any facility used by a cannabis business to manufacture edible cannabis products shall be constructed, operated and inspected in accordance with the applicable building code and applicable food safety requirements.

4. A cannabis business that manufactures edible cannabis products must comply with the provisions of all relevant state and local laws regarding the preparation, distribution, and sale of food; which shall include, but not be limited to, hand-washing requirements, use of gloves for packaging, and policies prohibiting individuals suffering from symptoms associated with communicable diseases or infections from engaging the production of edible cannabis products.

B. Expiration Date. A cannabis business engaged in the manufacture of cannabis products, including an edible cannabis product, that is perishable shall assign an expiration-date or use-by date, whichever is appropriate, to all perishable cannabis products. Once an expiration date or use-by date is assigned to cannabis products, it shall be unlawful for a person to alter that date or affix a new label with a later use-by or expiration date.

C. Extraction Requirements.

1. A manufacturer engaged in extraction may only engage in type of extraction approved by the local licensing authority in its application for a local license. The

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) licensee shall not make any modifications to the method of extraction without first obtaining a modification of its local license.

2. Within the limitations set forth by state law, a cannabis business that extracts cannabis or produces cannabis concentrate using a solvent must use a professional- grade, closed-loop extraction system capable of recovering the solvent used and must only use a solvent that is permissible under the MAUCRSA and the manufacturer’s state license. (Ord. 800 § 1, 2017)

5.88.080 Cultivation operational requirements.

In addition to the operational requirements in Section 5.88.065, a cultivator must comply with the requirements set forth in this section.

A. Cultivators must comply with the Federal Worker Protection Standard (40 CFR 170).

B. The cultivation of cannabis must be conducted in accordance with all applicable federal, state, and local laws and regulations governing the use of pesticides.

C. The use of pesticides must be recorded in a log in accordance with 16 CCR Section 1970.

D. The cultivation of cannabis shall be conducted in a secure manner and shall not be visible from a public right-of-way. As used in this subsection D, the term “visible” means capable of being seen without visual aid by an individual of normal acuity.

E. A licensee may not distribute, sell, dispense, or administer cannabis on the licensed premises of a cultivation site except for as authorized by the MAUCRSA and other applicable state law. (Ord. 800 § 1, 2017)

5.88.085 Distribution operational requirements.

In addition to the operational requirements in Section 5.88.065, distributors shall comply with the requirements of this section.

A. Quality Assurance and Testing.

1. Prior to distribution, the distributor shall inspect cannabis for quality assurance as required by MAUCRSA and to ensure the labeling and packaging of the cannabis and cannabis products conforms to the requirements of this chapter and MAUCRSA.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update)

2. Distributors shall ensure that cannabis and cannabis products in its custody are tested by a licensed testing laboratory in accordance with MAUCRSA prior to distributing the cannabis and cannabis products to a dispensary.

B. Transportation.

1. A distributor may not transport cannabis to or from another cannabis business outside the state of California.

2. An individual may only transport cannabis on behalf of a distributor if the individual:
a. Is an employee of the distributor and is listed on the distributor’s employee list; b. Possesses a copy of the distributor’s local license; and c. Possesses a copy of a transportation manifest that meets all the requirements of MAUCRSA and subsection (B)(3).

3. Transportation Manifest.
a. A cannabis business must create a transportation manifest in accordance with this chapter for every transport and delivery of cannabis. A cannabis business must ensure that a copy of the appropriate transportation manifest accompanies every transport and delivery of cannabis and is kept for retention by the originating cannabis business.
b. If a cannabis businesses makes multiple pick-ups or deliveries during a single trip, then a separate transportation manifest shall be required for each pick-up or delivery.
c. A transportation manifest will be deemed sufficient if it accurately reflects:
i. All cannabis that will be transported to the address reflected on the manifest, accurately inventoried to include the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products; ii. Departure date and approximate time of departure; iii. Arrival date and approximate time of arrival;
iv. Name, address, local license number and CUP number (or, for cannabis businesses outside of Cathedral City, a similar number issued by the cannabis business’s local jurisdiction) of the originating cannabis business;

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) v. Name, address, local license and CUP number (or, for cannabis businesses outside of Cathedral City, a similar number issued by the cannabis business’s local jurisdiction) of the receiving cannabis business;
vi. Delivery vehicle make, model, and license plate number; and vii. Name and signature of the individual transporting the cannabis.

4. A cannabis business with a local license may only transport cannabis between licensed premises by way of motor vehicle, unless the transport is between two licensed premises that are within the same building or at the same street address.

5. A cannabis business with a local license shall transport cannabis in a manner that is secure and not visible from outside the vehicle.

6. An employee transporting cannabis pursuant to this chapter must take a direct route from the distributor to the destination of the other cannabis business(es) and may not make any stops other than those necessary in the ordinary course of business.

C. Bonding. Transporters shall comply with applicable state laws and regulations, if any, requiring that they be bonded and insured.

D. Preparation of Cannabis and Cannabis Products for Transportation.

1. All cannabis and cannabis products must be appropriately and completely tracked in a cannabis business’s inventory tracking system prior to transportation to another cannabis business. This must include verifying and documenting the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products being transported.

2. Preparations for the transport of cannabis and cannabis products must be conducted in a limited access area on camera.

E. Receiving Cannabis and Cannabis Products.

1. A distributor may not receive cannabis or cannabis products unless accompanied by a transportation manifest that meets all of the requirements set forth in subsection (B)(3). The distributor must retain copies of transportation manifests associated with all deliveries of cannabis.

2. Immediately upon receipt, all cannabis and cannabis products must be appropriately and completely tracked in the distributor’s inventory tracking system. This must include verifying and documenting the weight of any raw cannabis or cannabis concentrate and the number of individual cannabis products being transported.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) F. Perishable Cannabis Products. A cannabis business must provide adequate refrigeration when engaged in the transportation of perishable cannabis products. (Ord. 800 § 1, 2017)

5.88.090 Testing laboratory operational requirements.

In addition to the operational requirements in Section 5.88.065, a testing laboratory shall comply with the requirements of this section.

A. No Other Ownership. An owner of a testing laboratory shall not have an ownership or other direct financial interest in any other commercial cannabis business license type.

B. Accreditation. A testing laboratory shall obtain and maintain ISO/IEC 17025 accreditation.

C. Operating Procedures. A testing laboratory shall adopt and adhere to standard operating procedures to ensure the reporting of accurate test results, including, but not limited to, equipment, calibration, and methodology standards, that are consistent with its ISO/IEC 17025 accreditation.

1. A testing laboratory shall obtain samples of cannabis and cannabis products for testing in accordance with a statistically valid method designed to ensure that a sample is representative of the whole. Sampling methods should have at least a ninety- five percent confidence rate.

2. A testing laboratory shall destroy and safely dispose of the remains of any samples of cannabis or cannabis products tested upon completion of the analysis and the expiration of any retention time pursuant its standard operating procedures.

3. A testing laboratory shall maintain all testing results as a part of their respective business records and must keep such records pursuant to Section 5.88.065(V). (Ord. 800 § 1, 2017)

5.88.095 Packaging and labeling.

A. Compliance with State Law. All packaging and labeling of cannabis and cannabis products by a cannabis business must, at a minimum meet the requirements of Chapter 12 of MAUCRSA and any implementing regulations, as the same may be amended from time to time or superseded or replaced by subsequent state legislation or by any state department or division.

B. Tamper-Evident, Child-Resistant Packaging Required. Prior to delivery or sale at a dispensary to a purchaser, cannabis and cannabis products shall be labeled and

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products.

C. Cannot Be Attractive to Children. Cannabis packaging and labeling shall not be designed to appeal to children, including, but not limited to, cartoon characters or similar images.

D. State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state-mandated warnings and information contained in Business and Professions Code Section 26120(c). Notwithstanding the foregoing, during the period of time that the state permits untested cannabis and cannabis products to be sold to purchasers, all cannabis and cannabis products must have a label affixed to each package that clearly states “This product has not been tested as required by the Medicinal and Adult-Use Cannabis Regulation and Safety Act” and must comply with any other labeling requirements imposed by the state. (Ord. 800 § 1, 2017)

5.88.100 Visitor requirements.

A. Visitors. Any individual permitted to enter a limited access area who is not an person that has undergone a background check in accordance with this chapter and is listed on the licensed premises worker list shall be considered a visitor. Notwithstanding the foregoing, state and local employees, or their official designees, shall not be considered a visitor provided the individual is on the licensed premises for purposes of official government business.

B. Visitors Identification and Record Requirements. Prior to permitting a visitor into a limited access area, a cannabis business must check the individual’s valid government issued identification. The visitor shall be required to sign the cannabis business’s visitor log, which must include the individual’s name, date of entry, and purpose for entry.

C. Visitors Must Be at Least Twenty-One Years of Age. A cannabis business may not permit a visitor who is less than twenty-one years of age to enter a limited access area.

D. Visitors Prohibited Conduct. A visitor shall not be permitted to engage in the cultivation, preparation, processing, manufacturing, packaging, labeling, transportation, or sale of cannabis. (Ord. 800 § 1, 2017)

5.88.105 Limitations on city’s liability.

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any local license pursuant to this chapter or the

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) operation of any cannabis business approved for such local license pursuant to this chapter. As a condition of approval a local license granted under this chapter, the applicant or its legal representative shall:

A. Execute an agreement indemnifying and holding the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business and delivery of cannabis as provided in this chapter; and B. Maintain insurance in the amounts and of the types that are acceptable to the city pursuant to guidelines and policies set forth by the local licensing authority; and C. Name the city as an additionally insured on all city-required insurance policies; and
D. Agree to defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a local license or conditional use permit or the operation of the cannabis business; and
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 legal challenge (or federal enforcement action) related to the city’s approval of a local license or conditional use permit. 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. (Ord. 800 § 1, 2017)

5.88.110 Inspections.

A. Recordings made by security cameras at any cannabis business shall be made immediately available to the local licensing authority upon verbal request for law or regulatory enforcement and criminal investigation purposes. Such recordings shall be considered confidential and shall not be released to the public pursuant to Government Code Section 6254(f) without the consent of the licensee.

B. The local licensing authority shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter. Such inspections shall be limited to observing the licensed premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this code, state law, and other applicable laws and regulations. Any cannabis business licensed pursuant to this chapter may be required to demonstrate, upon demand by the local licensing authority that the source and quantity of any cannabis or cannabis products found upon the licensed premises is in full compliance with any applicable local or state law or regulation.

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) C. The local licensing authority shall have the right to inspect records of medicinal cannabis patients and primary caregivers that have made purchases of medicinal cannabis or medicinal cannabis products from a dispensary for the sole purpose of determining whether any and all such individuals are qualified to make such purchases.

Such inspections of records shall not be used for any other purposes, nor shall the records be removed off-site by the city without a court order.

D. The local licensing authority may delegate an act required to be performed pursuant to this section to any code enforcement officer or official of the city, including, without limitation, the chief of police, the fire chief, the building official, the finance director, the city attorney, or any designee of such officers or officials.

E. Applicants and licensees must cooperate with the local licensing authority and his designees who are conducting inspections or investigations relevant to the enforcement of laws and regulations related to this chapter. (Ord. 800 § 1, 2017)

5.88.115 Enforcement.

The provisions of this chapter may be enforced by the local licensing authority by any means provided for in Title 13 of this code in addition to any and all other remedies, civil, equitable or criminal, afforded to the city under the law. The operation of a cannabis business in violation of this chapter or any conditions of approval placed on a licensee’s local license is hereby deemed to be a public nuisance. As provided for in Title 13 of this code, the local licensing authority may issue administrative, infraction or misdemeanor citations, institute a summary abatement of a public nuisance that poses an immediate threat to the public health and safety, and/or institute proceedings to suspend, modify or revoke a local license. (Ord. 800 § 1, 2017)

5.88.120 Civil fines.

A. A fine in an amount not to exceed two hundred fifty dollars for a first conviction of an offense;
B. A fine in an amount not to exceed five hundred dollars for a second conviction of the same offense within a twelve-month period of the date of the first offense; C. A fine in an amount not to exceed seven hundred fifty dollars for a third conviction of the same offense within a twelve-month period of the date of the first offense; and

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Attachment: Chapter 5.88 Cannabis Regulations (3227 : Cannabis Regulation and Tax Update) D. A fine of one thousand dollars for the fourth and subsequent convictions of the same offense within a twelve-month period of the date of the first offense. (Ord. 800 § 1, 2017)

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9.108.010 Purpose.

A. The purpose of this chapter is to regulate cannabis business land uses, as permitted by Section 26200 of the California Business and Professions Code, in a manner designed to minimize negative impacts on the city and neighboring uses, and promote the health, safety, morals, and general welfare of residents and businesses within the city.

B. This chapter is further adopted and established pursuant to the specific authority granted to Cathedral City in Section 7 of Article XI of the California Constitution and Section 26200 of the California Business and Professions Code. This chapter shall govern all cannabis businesses within the jurisdiction of Cathedral City. (Ord. 801 § 3, 2017)

9.108.020 Relationship to other laws.

A. In the event of any conflict between the provisions of this chapter and the provisions of MAUCRSA or any other applicable state or local law, the more restrictive provision shall control.

9.108.030 Definitions.

Unless otherwise defined herein or in Section 9.08.020 of this code, the terms in this chapter shall have the same meaning as set forth in the MAUCRSA and any rules promulgated pursuant thereto. In addition, the following terms shall be defined as follows:
“Enclosed locked structure,” means a structure that: (1) does not allow for the visibility of the interior from the outside; (2) is secured with a lock; (3) is completely surrounded on all sides by a wall; and (4) is roofed. Enclosed locked structures may include greenhouses, provided that only the roof of the greenhouse is made of transparent glass, and accessory buildings.

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update) “Excessive concentration” means either of the following: (1) for proposed dispensaries south of Interstate 10, the approval of the conditional use permit would result in more than twenty dispensaries being approved to operate south of Interstate 10; or (2) for proposed dispensaries north of Interstate 10, the proposed dispensary is located less than five hundred feet from another approved dispensary, measured in accordance with Section 9.108.070(C).
“Limited access area” means a building, room or other area that is part of the premises where cannabis is grown, cultivated, stored, weighed, displayed, packaged, or sold to other cannabis businesses with limited access to only authorized personnel. “Local license” means a license granted by the local licensing authority pursuant to Chapter 5.88 of this code.
“Local licensing authority” means the city manager or designee. “Medicinal and Adult-Use Cannabis Regulation and Safety Act” or “MAUCRSA” means Division 10 of the California Business and Professions Code. “Outdoors” means any location within the city that is not within an enclosed locked structure.
“Residential zone” means any zoning district listed in Division II of this title where any residential use other than a “caretaker’s residence” is permitted by right. “State law(s)” shall mean and include California Health and Safety Code Section 11362.5 (Compassionate Use Act of 1996); California Health and Safety Code Sections 11362.7 to 11362.85 (Medical Marijuana Program Act); MAUCRSA, and all other applicable laws and regulations of the state of California. “Youth center” means any facility that is operated by a public agency or non-profit entity with the sole purpose of providing educational and/or recreational services to minors.
(Ord. 801 § 3, 2017)

9.108.040 Conditional use permit required.

A. Where one or more types of cannabis businesses are listed as a conditionally permitted use in a zoning district in Division II of this Title 9 of the code, a cannabis business of the type conditionally permitted in the subject zone may only operate after obtaining a conditional use permit pursuant to this chapter and Chapter 9.72 of this code. No person may operate any cannabis business that is a conditionally permitted use without having first obtained a conditional use permit.

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update) B. All cannabis businesses must be operated in strict compliance with the terms, conditions, limitations and restrictions of the MAUCRSA, the provisions of Chapter 5.88, this chapter, Chapter 9.72 of this code, and all other applicable state and local laws and regulations, as well as the terms and conditions of its local license and conditional use permit.

C. The community development director is authorized to make policies and procedures consistent with the intent and spirit of this chapter concerning the applications, the application process, the information required of applicants, the application procedures and the administration and procedures to be used and followed in the application and hearing process.

D. Chapter 9.72 of this code shall govern and apply to conditional use permits for cannabis businesses applied for or obtained pursuant to this chapter unless this chapter expressly states otherwise. All requirements contained in this chapter shall be in addition to the applicable requirements of Chapter 9.72. (Ord. 801 § 3, 2017)

9.108.050 Conditional use permit application.

A. All applications for a conditional use permit shall be filed with the community development director on the official form supplied by the city and shall be accompanied by the application fee established by resolution of the city council, as may be amended from time to time.

B. An application for a conditional use permit shall include, but shall not be limited to, the following information:

1. Proof that the applicant has received a local license for the proposed premises, and the local license is in good standing, or a statement that the applicant is applying for a local license for the proposed premises concurrently with the conditional use permit application.

2. Confirmation that the proposed premises is not currently permitted by the state or county for the production of non-cannabis infused food products.

3. The address of the proposed cannabis business.

4. A site plan and floor plan of the cannabis business denoting all the use of areas of the cannabis business, including storage, employee areas, exterior lighting, restrooms, security cameras, areas of ingress and egress, signage, limited access areas, and restricted access areas, if included.

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update)

5. Plans and specifications for the interior of the proposed premises if the building to be occupied is in existence at the time of the application. If the building is not in existence or alteration to the building is required at the time of the application, the applicant shall file a plot plan and a detailed sketch for the interior and shall further submit an architect’s drawing of the building to be constructed.

6. The name and address of the person that owns the real property upon which the cannabis business is to be operated. In the event the applicant does not legally own the property, the application must be accompanied by a notarized acknowledgement from the person that owns the property that a cannabis business will be operated on his or her property.

7. A description of the design of the proposed premises evidencing that the design conforms to applicable city laws.

8. For a Cultivation Site or Manufacturing Site.
a. An environmental plan indicating how cultivation and/or manufacturing will be conducted in accordance with state and local laws related to hazardous material disposal, land conversion, grading, electricity usage, water usage, and agricultural discharges.
b. An emergency response plan which complies with Title 8 of this code and California Fire Code Section 401, and sets out standard operating procedures to be followed by all individuals in case of a fire, chemical release, chemical spill, or other emergency. c. A description of the source of power (electric utility company, solar, diesel generators), the size of the electrical service or system, and the total demand to be placed on the system by all proposed uses on-site.
d. For a cultivation site, verification of all water sources used by the proposed premises and verification that the proposed premises does not utilize water that has been or is illegally diverted from any stream, creek, or river. e. For a manufacturing site, a report from a professional engineer that details the type of equipment that will be used to extract cannabinoids from cannabis. If flammable gas, flammable liquefied gas, flammable and combustible liquids, or compressed carbon dioxide (CO2) are used for extraction, then the report must certify that only closed-loop extraction system(s), that are UL or ETL listed or have a sign off by a professional engineer, capable of recovering the solvent are utilized. f. For a manufacturing site, a separate diagram of any room where extraction occurs that details the location of the extraction equipment, areas of ingress and egress, emergency eye-wash station, any other fire suppression or emergency equipment required by Title 8 of this code, city and California building codes, fire codes, electrical codes and all other applicable laws.

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update)

9. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

10. Authorization for the community development director to seek verification of the information contained within the application.

11. Any such additional and further information as is deemed necessary by the community development director to administer this section or this chapter.

C. The community development director and appropriate city staff shall review, verify and investigate all information on the application and prepare a report for the planning commission incorporating the findings of such investigation and verification, including, but not limited to, the suitability of the proposed location, and the applicant’s compliance with the requirements of this chapter, Chapter 5.88 and Chapter 9.72. (Ord. 801 § 3, 2017)

9.108.060 Findings for approval or denial of conditional use permit.

A. The planning commission shall not hold a public hearing on or approve any application for a conditional use permit to operate a cannabis business unless the applicant holds a local license in good standing.

B. In addition to the findings set forth in Section 9.72.010 of this code, a conditional use permit for a cannabis business shall only be granted subject to the following findings:

1. The cannabis business as well as all operations as conducted therein, fully comply with all applicable building, electrical, zoning and fire codes, accessibility requirements of the Americans with Disability Act, and all relevant city and state law; and

2. The cannabis business fully complies with and meets all operating criteria required pursuant to state laws, Chapter 5.88 of this code, any other provisions of this code, and any specific, additional operating procedures and measures as may be imposed as conditions of approval in the conditional use permit; and

3. The cannabis business will be located in a zoning district where cannabis businesses of the type proposed are conditionally permitted, and all of the applicable locational restrictions in Section 9.108.070 are satisfied.

4. For dispensaries, the issuance of a conditional use permit to the applicant will not result in or add to an excessive concentration of dispensaries and/or result in a need for additional law enforcement resources.

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update) C. The planning commission may deny an application for a conditional use permit if it determines that one or more of the findings required by Section 9.72.010 or subsection B of this section for the granting of a conditional use permit cannot be made.

D. Based on the information set forth in the application and city staff’s report and testimony presented at the public hearing, the planning commission may impose reasonable terms and conditions on the proposed cannabis business in addition to those specified in and required to be included in every conditional use permit granted under this chapter.
(Ord. 801 § 3, 2017)

9.108.070 Locational requirements.

A conditional use permit for a cannabis business shall not be approved unless the proposed cannabis business will be located in a zoning district in which cannabis businesses of the type proposed are conditionally permitted. In addition, a conditional use permit shall not be approved for a cannabis business unless all of the following locational requirements applicable to the type of cannabis business proposed are satisfied:

A. Dispensaries. No dispensary shall be or located:

1. Within six hundred feet of a school, day-care center, or youth center; or

2. Within two hundred fifty feet of East Palm Canyon Drive or a residential zone.

B. Cultivation, Manufacturing and Distribution Sites. No cultivation, manufacturing, or distribution site shall be located:

1. Within six hundred feet of a school, day-care center, or youth center; or

2. Within three hundred feet of a residential zone; or

3. Within two hundred fifty feet of East Palm Canyon Drive.

C. All distances specified in this section shall be measured in a straight line, without regard to intervening structures or topography, from the nearest point of the building or structure in which the cannabis business is, or will be located, to the following locations, or until the city limit is reached. If the cannabis business is, or will be located, in a multi- unit building, the distances shall be measured from the nearest point of the suite in which the cannabis business is or will be located.

1. Setbacks from schools, day-care centers and youth centers, shall be measured to the nearest property line of the parcel where such use is located.

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update)

2. Setbacks from East Palm Canyon Drive shall be measured to the nearest edge of the right-of-way for East Palm Canyon Drive.

3. Setbacks from residential zones shall be measured to:
a. The nearest point of any legally permitted structure located in a residential zone; or b. If there is land within a residential zone with no legally permitted structure, the measurement shall be to the nearest property line unless the nearest property line is within the public right-of-way, in which case the measurement shall be to the edge of the right-of-way furthest from the proposed cannabis business. (Ord. 801 § 3, 2017)

9.108.080 Conditions of approval.

A. All Cannabis Businesses. Every cannabis business conditional use permit shall include the following conditions of approval.

1. The premises must be equipped with an odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside the cannabis business, anywhere on adjacent property or public rights-of-way, on or about any exterior or interior common area walkways, hallways, breeze-ways, foyers, lobby areas, or any other areas available for common use by tenants or the visiting public, or within any other unit located within the same building as the cannabis business. As such, cannabis businesses must install and maintain the following equipment or any other equipment which local licensing authority determines has the same or better effectiveness:
a. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or
b. An air system that creates negative air pressure between the cannabis businesses’ interior and exterior so that the odors generated inside the cannabis business are not detectable outside the cannabis business.

2. The applicant or its legal representative shall:
a. Indemnify and hold the city harmless from any and all claims, damages, legal or enforcement actions, including, but not limited to, any actions or claims associated with violation of federal law associated with the operation of the cannabis business; defend, at its sole expense, any action against the city, its agents, officers, and employees related to the approval of a conditional use permit or the operation of the cannabis business; reimburse the city for any court costs and attorney fees that the city may be required to pay as a result of any legal challenge (or federal enforcement action) related

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update) to the city’s approval of a conditional use permit, and to execute a separate agreement to this effect.
b. Maintain insurance in the amounts and of the types that are acceptable to the city pursuant to guidelines and policies set forth by the local licensing authority and name the city as an additionally insured on all city-required insurance policies.

3. All windows on the premises of the cannabis business shall be appropriately secured and cannabis securely stored.

4. All cannabis businesses shall comply with the city’s lighting standards including, without limitation, fixture type, wattage, illumination levels, shielding, and secure the necessary approvals and permits as needed.

5. All cannabis businesses and all equipment used in the conduct of the business, must be operated in compliance with all applicable state and local laws and regulations, including all building, electrical, and fire codes, and in compliance with the businesses’ state and local licenses.

6. From a public right-of-way, there should be no exterior evidence of the cannabis business except for any permitted on-site signage.

B. Manufacturing Sites. Every conditional use permit for a manufacturing site shall include the following conditions of approval:

1. All manufacturing of cannabis products shall occur in an enclosed locked structure.

2. Manufacturing activities shall only occur in the areas depicted on the floor plan submitted by the applicant and shall not exceed the square footage authorized pursuant to the conditional use permit.

3. If hazardous materials, flammable gas, flammable liquefied gas, flammable and combustible liquids, or other flammable material, as those terms are defined in CFC Section 202, are to be used in the processing of cannabis, then the provisions of CFC Section 407 shall be applicable where hazardous materials subject to permits under CFC Section 50 (Hazardous Materials) are located on the premises or where required by the fire department official.

4. Storage, use and handling of compressed gases in compressed gas containers, cylinders, tanks and systems shall comply with CFC Chapter 53, including those gases regulated elsewhere in the Cathedral City Municipal Code. Partially full compressed gas containers, cylinders or tanks containing residual gases shall be considered as full for the purposes of the controls required. Compressed gases classified as hazardous materials shall also comply with CFC Chapter 50 for general requirements and CFC Chapter 53 addressing specific hazards, including CFC Chapter 58 (Flammable Gases), CFC Chapter 60 (Highly Toxic and Toxic Materials), CFC Chapter 63 (Oxidizers,

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Packet Pg. 55
Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update) Oxidizing Gases and Oxidizing Cryogenic Fluids) and CFC Chapter 64 (Pyrophoric Materials). Prevention, control and mitigation of dangerous conditions related to storage, use, dispensing, mixing and handling of flammable and combustible liquids shall be in accordance with CFC Chapters 50 and 57.

5. Manufacturing sites are a Group F-1 (Factory Industrial Moderate-Hazard) Occupancy under the Fire Code. All new construction is required to be fire sprinkled per the Fire Code. For manufacturing sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists:
a. A Group F-1 fire area exceeds twelve thousand square feet. b. A Group F-1 fire area is located more than three stories above grade plane. c. The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds twenty-four thousand square feet.

C. Cultivation Sites. Every conditional use permit for a cultivation site shall include the following conditions of approval:

1. All cultivation of cannabis shall occur in an enclosed locked structure.

2. Cultivation activities shall only occur in the areas shown on the floor plan submitted by the applicant, and shall not exceed the square footage authorized pursuant to the conditional use permit.

3. Areas where cannabis is cultivated are wet locations, and the electrical system in such areas must comply with Title 8 of this code, Article 300.6(D) of the National Electric Code, city and California building codes, fire codes, electrical codes and all other applicable laws.

4. Cultivation sites are a Group F-1 (Factory Industrial Moderate-Hazard) Occupancy under the Fire Code. All new construction is required to be fire sprinkled per the Fire Code. For cultivation sites that will be sited in an existing structure, an automatic sprinkler system shall be provided throughout all buildings containing a Group F-1 occupancy where one of the following conditions exists:
a. A Group F-1 fire area exceeds twelve thousand square feet. b. A Group F-1 fire area is located more than three stories above grade plane. c. The combined area of all Group F-1 fire areas on all floors, including any mezzanines, exceeds twenty-four thousand square feet.

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Packet Pg. 56
Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update) D. Distribution Sites. Every conditional use permit for a distribution site shall include the following conditions of approval

1. Distribution sites shall store all cannabis and cannabis products in a locked safe room, safe, or vault and in a manner to prevent diversion, theft, and loss.

2. The storage of cannabis and cannabis products shall only occur in the areas shown on the floor plan submitted by the applicant, and shall not exceed the square footage authorized pursuant to the conditional use permit.
(Ord. 801 § 3, 2017)

9.108.090 Limitations on city’s liability.

To the fullest extent permitted by law, the city shall not assume any liability whatsoever, with respect to approving any conditional use permit pursuant to this chapter or the operation of any cannabis business approved for such permit pursuant to this chapter.
(Ord. 801 § 3, 2017)

9.108.100 Inspections.

A. Recordings made by security cameras at any cannabis business shall be made immediately available to the community development director upon verbal request for the purposes of determining compliance with this chapter and the cannabis business’ conditional use permit.

B. The community development director shall have the right to enter all cannabis businesses from time to time unannounced for the purpose of making reasonable inspections to observe and enforce compliance with this chapter and the cannabis business’ conditional use permit. Such inspections shall be limited to observing the premises for purposes of determining whether the cannabis business is being operated or maintained in compliance with this code, state law, and other applicable laws and regulations.

C. Applicants and permittees must cooperate with employees and investigators of the city who are conducting inspections or investigations relevant to the enforcement of this chapter. No applicant or permittee shall by any means interfere with, obstruct or impede the any city official from exercising their duties under the provisions of this chapter and all rules promulgated pursuant to it.
(Ord. 801 § 3, 2017)

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Attachment: Chapter 9.108 Cannabis Land Use (3227 : Cannabis Regulation and Tax Update)

9.108.130 Enforcement.

The operation of a cannabis business in violation of any conditions of approval or the provisions of this chapter or Chapter 9.72 is a violation of this code, and a public nuisance. The city may seek to remedy such violations by any means provided for in law or equity, including but not limited to the enforcement mechanisms and remedies provided for in Title 13 of this code, or take action to revoke the conditional use permit pursuant to Section 9.72.130.

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PROPOSED CANNABIS ORDINANCE AMENDMENTS
SECTION 1 AMENDMENT OF SECTION 5.88.025 OF THE CATHEDRAL CITY

MUNICIPAL CODE
The definition of “Good cause” in Section 5.88.025 in of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“‘Good cause’ for purposes of denying an initial local license issuance, for suspending or revoking a local license, or for denying a local license renewal, means:

3. The applicant or licensee has knowingly made false statements, misrepresentations or material omissions on an application form, renewal form, or any other document submitted to the city;

4. The criminal history of the applicant’s or licensee’s owne r(s) indicates that one or more of the owner(s) lack good moral character;

5. An owner of the applicant or licensee is a licensed physician providing physician’s recommendation to qualified patients for medicinal cannabis;

6. The applicant or licensees, or any owner of the applicant or licensee, is a person who is prohibited from holding the license under this chapter;

7. The premises proposed to be licensed or the licensed premises is located on land that is owned by the United States and held in trust for any federally-recognized Indian tribe or any member of the tribe, or that is subject to a restriction on alienation imposed by the United States;

8. For renewals, suspensions and revocations, the licensee has allowed a person whose criminal history indicates that person is not of good moral character to work within the premises as an employee, independent contractor, or volunteer; or

9. For renewals, suspensions and revocations, the licensee fails to allow inspection of the security recordings, activi ty logs, or business records of the licensed premises by city officials.”

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SECTION 2 AMENDMENT OF SECTION 5.88.025 OF THE CATHEDRAL CITY

MUNICIPAL CODE
The definition of “Owner” in Section 5.88.025 of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“‘Owner’ shall have the same meaning as California Business and Professions Code Section 26001.”
SECTION 3 AMENDMENT OF SECTION 5.88.035 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 5.88.035, subsection B, of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“B. It is unlawful for a cannabis business to operate in the city unless it has been granted the appropriate temporary or permanent state license(s) for its commercial cannabis activities. If the state denies the application for a temporary or permanent license(s) for any reason, the cannabis business must cease operatio ns until such time as it obtains the appropriate temporary or permanent state license(s).”
SECTION 4 AMENDMENT OF SECTION 5.88.065 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 5.88.065, Subsection P (Seed to Sale Tracking Required), of the Cathedral City Municipal Code is deleted in its entirety, and the following Subsections Q through W are re -lettered as Subsections P through V. The new Section 5.88.065, Subsection Q (Cannabis Waste), of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“ Q. Waste Disposal.

1. Chemical, Dangerous and Hazardous Waste. Disposal of chemical, dangerous or hazardous waste must be conducted in a manner consistent with federal, state and local laws, regulations, rules, or other requirements. This may include, but is not limited to, the disposal of all pesticide or other chemicals used in the cultivation process, certain solvents or other chemicals used in the production of cannabis concentrate.

2. Cannabis Waste. Cannabis waste must be made unusable and unrecognizable prior to leaving the licensed premises by grinding it and incorporating it with fifty percent non -medicinal cannabis waste in accordance with the conditional use permit issued by the city. If necessary to protect the health and safety of individuals working on a licensed premises, a cannabis business may grind the stalk of a cannabis plant outside of its licensed premises provided all grinding activities occur within twenty feet of the licensed premises and cannot be seen from any public street.

3. Composting. A cannabis business may compost cannabis waste onsite, in accordance with this provision, the conditional use permit issued by the city and all other

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applicable laws, rules, and regulations.”
SECTION 5 AMENDMENT OF SECTION 5.88.070 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 5.88.0 70, Subsections A and B of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“A. Limited Hours of Operation. A dispensary may only be open to the public and engage in sales between the hours of six a.m. and ten p.m.

B. Product Visible To Public. The display of cannabis and cannabis products for sale may be visible from outside the licensed premises. Advertisements, as defined in California Business and Professions Code section 26150, shall comply with advertising and marketing restrictions of Sections 26150-26156 of the California Business and Professions Code. This includes, but is not limited to, the prohibition of advertising cannabis or cannabis products in a manner intended to encourage persons under 21 years of age to consume cannabi s or cannabis products.”
SECTION 6 AMENDMENT OF SECTION 5.88.070 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 5.88.070, Subsection I (Sale of Untested Products), is hereby deleted in its entirety, and the following Subsections J and K are re-lettered to Subsections I and J.

SECTION 7 AMENDMENT OF SECTION 5.88.0 95 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 5.88.095, Subsection D of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“D. State-Mandated Warnings and Information. All cannabis and cannabis product labels and inserts shall include the state -mandated warnings and information contained in Business and Professions Code Section 26120(c).”
SECTION 8 AMENDMENT OF SECTION 5.88.120 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 5.88.120 of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“Any person convicted of an infraction or misdemeanor violation shall, for each separate violation of this chapter, be subject to civil fines as set forth by resolution of the city council, which may be amended from time to time.”

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SECTION 9 AMENDMENT OF SECTION 9.108.050 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 9.108.050, Subsection B of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“B. An application for a conditional use permit shall include, but shall not be limited to, the following information:

1. Confirmation that the proposed premises is not currently permitted by the state or county for the production of non-cannabis infused food products.

2. The address of the proposed cannabis business.

3. A site plan and floor plan of the cannabis business denoting all the use of areas of the cannabis business, including storage, employee areas, exterior lighting, restrooms, security cameras, areas of ingress and egress, signage, limited access areas, and restricted access areas, if included.

4. Plans and specifications for the interior of the proposed premises if the building to be occupied is in existence at the time of the application. If the building is not in existence or alteration to the building is required at the time of the application, the applicant shall file a plot plan and a detailed sketch for the interior and shall further submit an architect’s drawing of the building to be constructed.

5. The name and address of the person that owns the real property upon which the cannabis business is to be operated. In the event the applicant does not legally own the property, the application must be accompanied by a notarized acknowledgement from the person that owns the property that a cannabis business will be operated on his or her property.

6. A description of the design of the proposed premises evidencing that the design conforms to applicable city laws.

7. For a Cultivation Site or Manufacturing Site.
a. A description of the source of power (electric utility company, solar, diesel generators), the size of the electrical service or system, and the total demand to be placed on the system by all proposed uses on-site.
b. For a cultivation site, verification of all water sources used by the proposed premises and verification that the proposed premises does not utilize water that has been or is illegally diverted from any stream, creek, or river.
c. For a manufacturing site, a report from a professional engineer that details the type of equipment that will be used to extract cannabinoids from cannabis. If flammable gas, flammable liquefied gas, flammable and combustible liquids, or compressed carbon dioxide (CO2) are used for extraction, then the report must certify that only closed-loop extraction

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system(s), that are UL or ETL listed or have a sign off by a professional engineer, capable of recovering the solvent are utilized.
d. For a manufacturing site, a separate diagram of any room where extraction occurs that details the location of the extraction equipment, areas of ingress and egress, emergency eye-wash station, any other fire suppression or emergency equipment required by Title 8 of this code, city and California building codes, fire codes, electrical codes and all other applicable laws.

8. A statement in writing by the applicant that he or she certifies under penalty of perjury that all the information contained in the application is true and correct.

9. Authorization for the community development director to seek verification of the information contained within the application.

10. Any such additional and further information as is deemed necessary by the community development director to administer this section or this chapter.” SECTION 10 AMENDMENT OF SECTION 9.108.070 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 9.108. 07 0 of the Cathedral City Municipal Code is amended in its entirety to read as follows:
“A conditional use permit for a cannabis business shall not be approved unless the proposed cannabis business will be located in a zoning district in which cannabis businesses of the type proposed are conditionally permitted. In addition, a conditional use permit shall not be approved for a cannabis business unless all of the following locational requirements applicable to the type of cannabis business proposed are satisfied:

A. Dispensaries. No dispensary shall be or located:

1. Within six hundred feet of a school, day-care center, or youth center; or

2. Within two hundred fifty feet of a residential zone.

B. Cultivation, Manufacturing and Distribution Sites. No cultivation, manufacturing, or distribution site shall be located:

1. Within six hundred feet of a school, day-care center, or youth center; or

2. Within three hundred feet of a residential zone.

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distances shall be measured from the nearest point of the suite in which the cannabis business is or will be located.

1. Setbacks from schools, day-care centers and youth centers, shall be measured to the nearest property line of the parcel where such use is located.

2. Setbacks from residential zones shall be measured to:
a. The nearest point of any legally permitted structure located in a residential zone; or b. If there is land within a residential zone with no legally permitted structure, the measurement shall be to the nearest property line unless the nearest property line is within the public right-of-way, in which case the measurement shall be to the edge of the right-of- way furthest from the proposed cannabis business.”
SECTION 11 AMENDMENT OF SECTION 9.108.080 OF THE CATHEDRAL CITY

MUNICIPAL CODE
Section 9.108.080, Subsection A .6, of the Cathedral City Municipal Code is hereby deleted in its entirety.

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Staff Report

City Council

Item No. 3.B

Meeting Date: May 11, 2022
From: Deanna Pressgrove, Environmental Conservation & Public Works Manager
Title: SB 1383 residential roll out program, amendment to the franchise agreement and rate increase reques t on commercial, residential, and roll-off services.

City Council

RECOMMENDATION:

The SB 1383 residential roll out program, amendment to the franchise agreement and rate increase request on commercial, residential, and roll -off services is presented to the City Council for discussion, comments and direction in anticipation of being presented for Public Hearing and City Council approval at the June 8, 2022, City Council Meeting.

BACKGROUND:

The Legislature of the State of California, by enactment of the California Integrated Waste Management Act of 1989, (“AB 939” or the “Act”) (codified as Public Resources Code §§ 4000 et seq.) established a solid waste management process which requires cities and other local jurisdictions to implement plans for source reduction, reuse and recycling as integrated waste management practices for solid waste attributed to sources within their respective jurisdictions.

The Act provides that aspects of solid waste handling of local concern include, but are not limited to, fr equency of collection, means of collection and transportation, level of services, charges and fees, and nature, location, and extent of providing solid waste services. The Act encompasses the newly adopted Short -Lived Climate Pollutants mandate, Senate Bill (SB) 1383.

The stated purpose of SB 1383 is to reduce organic waste disposal, recover edible food waste from the waste stream and reduce methane emissions. The goal of SB 1383 is to reduce greenhouse gas emissions to 40% below 1990 levels by the year 2030.

To achieve this, the target is to reduce organic waste that ends up in the landfill by 50% by the year 2020 (statistics of having achieved this goal are not available yet) and 75% by the year 2025. In addition to reducing landfilled organics by 75%, the State will also

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be required to recover edible food that is currently placed in the waste stream by 20% by establishing edible food recovery programs.

To achieve the reduction of landfilled waste and to increase recovery, the State has mandated the following:

1. Provide organics collection services to all residents, multi -family complexes and businesses.

2. Establish edible food recovery programs.

3. Conduct education and outreach to the Community.

4. Procure recyclable and recovered organics products.

5. Monitor compliance and conduct enforcement.

SB 1383 Subcommittee
City Council formed the SB 1383 Subcommittee in late 2020 with Councilmembers Ross and Carnevale to assist with the development and implementation of SB 1383 programs that will impact the community.

At the January 12, 2022 Council meeting , City Council approved an update to Ordinance 6.04 which added required elements of SB 1383 to the existing ordinance.

City Council also approved the Commercial Organics Recycling Campaign which provides Cathedral City’s commercial sector and multi -family communities with the resources to comply with SB 1383.

The SB 1383 Subcommittee met in April 2022 to discuss the Residential Rollout of SB 1383 programs and services for residential customers. The residential rollout will include the distribution of blue carts for recycling and kitchen p ails. T he blue cart implementation is required by SB 1383 and the kitchen pa ils are to support the proper collection and storage of food waste by residents, pri or to placing the food waste into the green cart.

Below is a summary of the proposed rate increase to residential and commercial customers, details on the residential rollout and the draft amendment to the franchise agreement adding language addressing SB 1383 compliance.

DISCUSSION:

In March 2022, Burrtec Waste and Recycling LLC. (Burrtec) requested an annual rate increase for residential, commercial, and roll-off services, in accordance with Article 6 of the Municipal Franchise Agreement (FA). Pursuan t to the FA, Burrtec is eligible to request a rate increase each year based on applicable increases in the Consumer Price Index (CPI) for the Water, Sewer and Trash Collection Services in U.S. The change in the CPI for 12 months ending January 2022 was 4.04%.

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The Riverside County disposal fee at the Edom Hill Transfer Station will also increase from $51.49 to $55.75 per ton effective July 1, 202 2, in accordance with The Edom Hill Master Lease Agreement between Riverside County and Burrtec.

Burrtec is requesting a rate increase that incorporates the following elements:

1. The CPI increase which is in accordance with the Franchise Agreement.

2. The County of Riverside’s decision to increase the cost per ton of disposal at County landfills.

3. The annual net recycling adjustment which is adjusted based on several components associated with recycling, such as processing, transportation, and recycling commodity prices.

4. SB 1383 required implementation services and programs.

The following identifies how the commercial, residential, roll -off and multi -family customer would be impacted.

RESIDENTIAL CUSTOMER:

The current residential rate for calendar year (January – December) 2022, is $23.11 a month for the weekly curbside service of 1-96-gallon Trash, Rec ycle and Greenwaste containers.

If approved, the residential tax roll rate for calendar year 2023, would see an increase of $2.58 per month or $30.96 annually. The 2023 monthly rate would be $25.69. The rate increase would be effective for assessment on the 2022/2023 tax rolls.

Residential SB 1383 program implementation is expected by spring of 2023 and finalized by July 1, 2023. After discussing the timeline of the residential rollout with the SB 1383 subcommittee, the members asked that the residen tial customers be charged a blended rate that incorporates the following:

• The residential rate for no blue carts and kitchen pa il is $25.20/month (January 1, 2023 through June 30, 2023).

• The rate for blue carts and kitchen pa il is $26.10/month (Jul y 1, 2023 through December 31, 2023).

• $25.20 + $26.18 = $51.38, $51.38 divided by 2 (half year at $25.20 and half the year at $26.18) = $25.69.

The $25.69 is a blended rate of 6 -months without blue carts and kitchen pa ils delivered to all residents and 6-months with blue carts and kitchen pales after delivery.

Residential rates also incorporate processing, disposal, tipping and newly added commodity of organics processing in accordance with SB 1383. In addition, SB 1383

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requires additional administration, records management, monitoring and implementation efforts that will require additional resources to comply with regulations.

Residential Rate Comparison with other jurisdictions with similar programs:
• City of Coachella $28.74
• Riverside County $26.84
• City of Indio $24.85

COMMERCIAL CUSTOMERS:

The total monthly commercial fee is composed of several elements with varying increases depending on the size of containers and the level of service. A three -yard container serviced once a week, is the a verage service level for most Cathedral City commercial customers.

If approved, the commercial rate increase for a 3 -yard container serviced 1x per week (most common service bin option) would be $ 19.88 per month and would be effective July 1, 202 2. Comme rcial customers receive direct bills from Burrtec for the services provided.

SUMMARY OF PROGRAMS OFFERED BY CITY AND/OR BURRTEC FOR CITY’S RESIDENTIAL, MULTI-FAMILY AND COMMERCIAL CUSTOMERS:

There are no additional charges to the customer for any of the programs listed below. • Curbside Collection:
o Weekly collection of 1-96-gallon Trash, Recycle and Organics Cart o Additional (1) Recycling and Organics Cart
• Bulky Large Item Collection Program:
o Residential – 4 large items weekly (unlimited)
o Commercial – 4 large items weekly (unlimited)
o Multifamily (apartments, condos etc.) – 4 large items weekly (unlimited) • Motor oil and oil filter weekly residential curbside program • Electronic and Tire Disposal Program (weekly)
• Residential Household Hazardous Waste Disposal Program (weekly) • Medication and Sharps (needles) Disposal Program (weekly) • Document Shredding Events:
o Citywide events October thru May (first Saturday of each month) o 55+ Communities and Senior Center monthly service
o All City facilities monthly service
• Reusable Tote Bags
• Monthly Residential Street Sweeping Service
• Cathedral City Environmental Education Program:
o S.C.R.A.P. Gallery Programs
o Garden & Composting programs for Elementary/Middle school & the Boys & Girls Club
o Trash receptacle drawing contest Elementary/Middle school programs • Multi-Family Recycling Program:
o Containers for the collection of recyclables
o Educational brochures and signage

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o Free waste audits
• Backyard Composting Program
• Community Clean-up Programs
• Special Services provided for disabled persons
• Illegal Dumping Collection Program
• City’s WaterSmart Landscapes Grant Program ($500 rebate program for front lawn elimination of greenwaste)
• Community Outreach:
o Citywide residential mailer distributed to 24,500 households twice annually o Direct mail pieces for target areas needing reminders regarding programs • Commercial on-site waste and recycling audits at no charge • City Sponsored Events - Free trash, recycling, and portable toilets for up to 5 - events annually
• Holiday Christmas Tree Recycling Program

AMENDMENT OF FRANCHISE AGREEMENT:

Burrtec Waste & Recycling has provided solid waste services to the city since 2006, and currently provides solid waste services to the city pursuant to the Amended and Restated Franchise Agreement dated July 1, 2020.

Staff worked with Burrtec to revise the current Amended and Restated Agreement to include additional language addressing SB 1383 compliance.

SB 1383 regulations require the City to implement collection programs, meet processing facility requir ements, conduct contamination monitoring, provide education, maintain records, submit reports, monitor compliance, conduct enforcement, and fulfill other requirements. The city has chosen to delegate some of its responsibilities to Burrtec Waste & Recycling.

As with all state mandates it is important to highlight that Burrtec has been an instrumental partner in helping Cathedral City build and provide programs that help our community not only meet compliance regulations but also educate residents and th e business community to be good agents of environmental change.

Amendments:

1. Definitions related to SB 1383 were added to Article 1.

2. Generator Waiver Program: In accordance with SB 1383 regulations and the City’s Municipal Code, the City may grant w aivers (de minimis, physical space or Collection frequency) to Generators that impact the scope of Company’s provision of service for those Customers.

3. Three-Container System: Burrtec will provide a Three-Container Collection program for the separate Collec tion of Source Separated Recyclable Materials, Source Separated Green Container Organic Waste, and Gray Container Waste.

4. Use of plastic bags or other paper wrapped food waste and place d in green container.
a. In the near future, cathedral city residents wi ll be directed to recycle food scraps with their yard trimmings in the green waste barrel. Residents will be notified by letter when the facilities are ready to take in and process

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food scraps.

5. Contamination Monitoring Protocols: includes Record Keeping, Courtesy Pick-up Notices, Notice of Assessment of Contamination Processing Fees and Disposal of Contaminated Materials.

6. Route Reviews and Waste Evaluations : Includes route reviews, waste evaluations, sampling method, contamination response, material exceptions and recordkeeping requirements.

7. Inspection and Enforcement: No later than November 1, 2022, Company shall assist the City with and/or conduct applicable inspections and enforcement, to the extent delegable, as required by SB 1383 Regulations.

8. Provisions for Recovered Organic Waste Product: Company agrees to coordinate and cooperate with the City to meet its Organic Waste produce procurement target, as required by SB 1383 regulations.

9. Container Requirements: No later than January 1, 2036, Comp any shall provide all C ustomers with Collection Containers that comply with the Container color requirements specified in this Agreement or as otherwise specified in the SB 1383 regulations. Note: This will be accomplished in 2023.

10. Labeling Requirement: Beginning January 1, 2022 (or if using the Performance - based Compliance Approach), then until color compliant containers are provided, Company shall place a label on the body or lid of each new Container that has been provided to a Customer that includes language or graphic images, or both, that indicate the primary materials accepted and the primary materials prohibited in that Container. Labels shall clearly indicate items that are Prohibited Container Contaminants for each Container.

11. Complaints: Investigation of SB 1383 Regulatory Non -Compliance Complaints .

Within 30 days of receiving a compliant that a customer may not be compliant with SB 1383 Regulations and upon the approval of the City, Burrtec shall perform an investigation into the compliant. The investigation will include reviewing the service level of the customer, evaluating whether the customer qualifies for a waiver, self -haul determination, inspecting the premises (if warranted) and contacting the customer. After completing the investigation of an SB 1383 Regulatory non -compliance, Burrtec will submit the investigation report to the city. The City Manager or his delegate shall make the final determination of the allegations against the customer.

12. Education and Outreach: Burrtec will create all applicable education materials and conduct all education programs and activities as provided by and in accordance with the SB 1383 regulations. Company shall cooperate and coordinate with the City on public education activities.

13. On or before October 1, 2022, the Company shall develop a list of Food Recovery Organizations and Food Recovery Services operating within the City, maintain the list on the Company’s City -specific website, share the list with the City if the City wants to post the list on additional City websites, and update the list annually.

14. Disposal and Recycling Processing Charges: April of each year, the Company shall submit to City the following: (1) the amount of the Gate Rate charged for the immediately preceding fiscal year; a nd (2) a statement of the Gate Rate actually paid in the immediately preceding fiscal year for refuse disposal and Organic processing.

15. Recording Keeping and Reporting: Company shall maintain all applicable records

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and assist the City in meeting all applic able reporting as required by the SB 1383 Regulations. Contractor shall allow City to audit and inspect such records and reports upon reasonable request.

This item is presented to the City Council for discussion, comments and direction in anticipation of being presented for Public Hearing and City Council approval at the June 8, 2022 City Council Meeting.

FISCAL IMPACT:

This rate increase is paid by customers and will, therefore, have no negative impact on the City’s General Fund.

ATTACHMENTS:

Cathedral City 2022 Rate Request
2022-2023 Rates
DRAFT Cathedral City First Amendment to AR Agreement

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Attachment: Cathedral City 2022 Rate Request (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Burrtec Waste
Rates Effective 1/1/2023
Cathedral City
Blended SB 1383 with Blue Carts with Pales
Residential Rates
Refuse 12% 12% 3% Total Refuse 12% 12% 3% Total
Collection Illegal Net Disposal Franchis e Environ. Utility Monthly Collection Illegal Net Disposal Franchise Env iron. Utility Monthly Component Dumping Recycling Component Fee Fee Sub-TotalUsers Ta x Rate Component Dumping Recycling Component Fee Fee Sub-Total Users Tax R ate (Note 1) (Note 2) (Note 3) (Note 1) (Note 2) (Note 3) Tax Roll Rate 8.66 $ 0.40 $ 2.12 $ 5.86 $ 2.69 $ 2.69 $ 22.42 $ 0.69 $ 23.11 $ 10.03 $ 0.40 $ 0.91 $ 7.60 $ 2.99 $ 2.99 $ 24.92 $ 0.77 $ 25.69 $ Yard Service in Addition to Tax Roll 6.43 $ 0.40 $ - $ 1.08 $ 1.08 $ 8.99 $ 0.28 $ 9.27 $ 6.69 $ 0.40 $ - $ 1.12 $ 1.12 $ 9.33 $ 0.29 $ 9.62 $ Yard Service 17.12 $ 0.40 $ 2.12 $ 5.86 $ 4.02 $ 4.03 $ 33.55 $ 1.04 $ 34.59 $ 18.83 $ 0.40 $ 0.91 $ 7.60 $ 4.38 $ 4.38 $ 36.50 $ 1.13 $ 37.63 $ Automated Curbside 10.70 $ 0.40 $ 2.12 $ 5.86 $ 3.02 $ 3.01 $ 25.11 $ 0.78 $ 25.89 $ 12.15 $ 0.40 $ 0.91 $ 7.60 $ 3.32 $ 3.33 $ 27.71 $ 0.86 $ 28.57 $ Gated Curbside 10.70 $ 0.40 $ 2.12 $ 5.86 $ 3.02 $ 3.01 $ 25.11 $ 0.78 $ 25.89 $ 12.15 $ 0.40 $ 0.91 $ 7.60 $ 3.32 $ 3.33 $ 27.71 $ 0.86 $ 28.57 $ Gated Yard Service 17.12 $ 0.40 $ 2.12 $ 5.86 $ 4.02 $ 4.03 $ 33.55 $ 1.04 $ 34.59 $ 18.83 $ 0.40 $ 0.91 $ 7.60 $ 4.38 $ 4.38 $ 36.50 $ 1.13 $ 37.63 $ Additional Automated Curbside Can, per month 7.94$ 0.40 $ - $ 1.31 $ 1.32 $ 10.97 $ 0.34 $ 11.31 $ 8.26 $ 0.40 $ - $ 1.36 $ 1.37 $ 11.39 $ 0.35 $ 11.74 $ Multi Family Dwelling-Central Location,
Billing, and Year-round Service: All Units
Curbside First Unit 10.94 $ 0.40 $ 2.12 $ 5.86 $ 3.05 $ 3.05 $ 25.42 $ 0.79 $ 26.21 $ 12.40 $ 0.40 $ 0.91 $ 7.60 $ 3.37 $ 3.36 $ 28.04 $ 0.87 $ 28.91 $ Each Additional 6.66 $ 0.40 $ 2.12 $ 5.86 $ 2.38 $ 2.37 $ 19.79 $ 0.61 $ 20.40 $ 7.95 $ 0.40 $ 0.91 $ 7.60 $ 2.66 $ 2.66 $ 22.18 $ 0.69 $ 22.87 $ Yard First Unit 17.56 $ 0.40 $ 2.12 $ 5.86 $ 4.09 $ 4.10 $ 34.13 $ 1.06 $ 35.19 $ 19.29 $ 0.40 $ 0.91 $ 7.60 $ 4.46 $ 4.45 $ 37.11 $ 1.15 $ 38.26 $ Each Additional 11.15 $ 0.40 $ 2.12 $ 5.86 $ 3.09 $ 3.08 $ 25.70 $ 0.79 $ 26.49 $ 12.62 $ 0.40 $ 0.91 $ 7.60 $ 3.40 $ 3.40 $ 28.33 $ 0.88 $ 29.21 $ Multi Family Dwelling-Non-Central Location
Curbside First Unit 14.75 $ 0.40 $ 2.12 $ 5.86 $ 3.65 $ 3.65 $ 30.43 $ 0.94 $ 31.37 $ 16.37 $ 0.40 $ 0.91 $ 7.60 $ 3.99 $ 3.99 $ 33.26 $ 1.03 $ 34.29 $ Each Additional 6.66 $ 0.40 $ 2.12 $ 5.86 $ 2.38 $ 2.37 $ 19.79 $ 0.61 $ 20.40 $ 7.95 $ 0.40 $ 0.91 $ 7.60 $ 2.66 $ 2.66 $ 22.18 $ 0.69 $ 22.87 $ Yard First Unit 17.56 $ 0.40 $ 2.12 $ 5.86 $ 4.09 $ 4.10 $ 34.13 $ 1.06 $ 35.19 $ 19.29 $ 0.40 $ 0.91 $ 7.60 $ 4.46 $ 4.45 $ 37.11 $ 1.15 $ 38.26 $ Each Additional 11.14 $ 0.40 $ 2.12 $ 5.86 $ 3.08 $ 3.08 $ 25.68 $ 0.79 $ 26.47 $ 12.62 $ 0.40 $ 0.91 $ 7.60 $ 3.40 $ 3.40 $ 28.33 $ 0.88 $ 29.21 $ Condominiums, Country Clubs
Year-round Central Billing
Curbside 9.27 $ 0.40 $ 2.12 $ 5.86 $ 2.78 $ 2.79 $ 23.22 $ 0.72 $ 23.94 $ 10.66 $ 0.40 $ 0.91 $ 7.60 $ 3.09 $ 3.09 $ 25.75 $ 0.80 $ 26.55 $ Yard 11.83 $ 0.40 $ 2.12 $ 5.86 $ 3.19 $ 3.19 $ 26.59 $ 0.82 $ 27.41 $ 13.33 $ 0.40 $ 0.91 $ 7.60 $ 3.51 $ 3.51 $ 29.26 $ 0.90 $ 30.16 $ Mobile Home Parks
Curbside 7.71 $ 0.40 $ 2.12 $ 5.86 $ 2.54 $ 2.54 $ 21.17 $ 0.65 $ 21.82 $ 9.04 $ 0.40 $ 0.91 $ 7.60 $ 2.84 $ 2.83 $ 23.62 $ 0.73 $ 24.35 $ Yard 13.30 $ 0.40 $ 2.12 $ 5.86 $ 3.43 $ 3.42 $ 28.53 $ 0.88 $ 29.41 $ 14.86 $ 0.40 $ 0.91 $ 7.60 $ 3.76 $ 3.75 $ 31.28 $ 0.97 $ 32.25 $ Additional Fees
New Start 8.82 $ - $ 1.40 $ 1.39 $ 11.61 $ 0.36 $ 11.97 $ 9.18 $ - $ 1.45 $ 1.45 $ 12.08 $ 0.37 $ 12.45 $ Re-Start 23.58 $ - $ 3.73 $ 3.72 $ 31.03 $ 0.96 $ 31.99 $ 24.53 $ - $ 3.88 $ 3.87 $ 32.28 $ 1.00 $ 33.28 $ Special Pick-Up 73.79 $ - $ 11.65 $ 11.65 $ 97.09 $ 3.00 $ 100.09$ 76.77 $ - $ 12.12 $ 12.12 $ 101.01 $ 3.12 $ 104.13$ Returned Check Fee 14.64 $ - $ 2.31 $ 2.31 $ 19.26 $ 0.60 $ 19.86 $ 15.23 $ - $ 2.41 $ 2.40 $ 20.04 $ 0.62 $ 20.66 $ Residential wheeled recycling barrel 65.26 $ - $ 10.31 $ 10.30 $ 85.87 $ 2.66 $ 88.53 $ 67.90 $ - $ 10.72 $ 10.72 $ 89.34 $ 2.76 $ 92.10 $ Residential replace cart (after 2 free) 30.45 $ - $ 4.81 $ 4.81 $ 40.07 $ 1.24 $ 41.31 $ 31.68 $ - $ 5.00 $ 5.00 $ 41.68 $ 1.29 $ 42.97 $ Residential Cart Replacement 62.78 $ - $ 9.92 $ 9.91 $ 82.61 $ 2.55 $ 85.16 $ 65.32 $ - $ 10.32 $ 10.31 $ 85.95 $ 2.66 $ 88.61 $ Note 1 - Franchise Fee = Total Rate less UUT x 12% Note 1 - Fran chise Fee = Total Rate less UUT x 12% Note 2 - Environmental Fee = Total Rate less UUT x 12% Note 2 - Environmental Fee = Total Rate less UUT x 12% Note 3 - UUT Fee = Sub-total Rate x 3% Note 3 - UUT Fee = Sub -total Rate x 3% Base starting rate for tax roll in 2023 is $26.18, $25.69 is a blended rate Current Rates Rates Effective 1/1/2023
Single Family Residence

3.B.b
Packet Pg. 78
Attachment: 2022-2023 Rates (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Burrtec Waste
Rate Effective 7/1/2022
Cathedral City
Commercial Solid Waste (Trash) Rates
12% 12% 3% Total 12% 12% 3% Total
Illegal Franchise Environ Utility Monthly Illegal Franchise Environ U tility Monthly Service Dumping Disposal Fee Fee Sub-Total Users Tax Rate Service Dumpin g Disposal Fee Fee Sub-Total Users Tax Rate (Note 1) (Note 2) (Note 3) (Note 1) (Note 2) (Note 3) 2 yd Bin
1 x per week 67.35$ 3.90 $ 29.89 $ 15.97 $ 15.97 $ 133.08 $ 4.12 $ 137.20$ 75.95 $ 3.90 $ 32.36 $ 17.72 $ 17.71 $ 147.64 $ 4.57 $ 152.21$ 2 x per week 117.73$ 7.80 $ 59.79 $ 29.26 $ 29.26 $ 243.84 $ 7.54 $ 251.38$ 133.27 $ 7.80 $ 64.74 $ 32.50 $ 32.49 $ 270.80 $ 8.38 $ 279.18$ 3 x per week 165.34$ 11.70 $ 89.68 $ 42.11 $ 42.12 $ 350.95 $ 10.85 $ 361.80 $ 187.54 $ 11.70 $ 97.10 $ 46.79 $ 46.79 $ 389.92 $ 12.06 $ 401.98 $ 4 x per week 212.68$ 15.60 $ 119.57 $ 54.92 $ 54.93 $ 457.70 $ 14.16 $ 471.86 $ 241.51 $ 15.60 $ 129.46 $ 61.04 $ 61.03 $ 508.64 $ 15.73 $ 524.37 $ 5 x per week 261.72$ 19.50 $ 149.47 $ 68.00 $ 68.01 $ 566.70 $ 17.53 $ 584.23 $ 297.35 $ 19.50 $ 161.84 $ 75.58 $ 75.59 $ 629.86 $ 19.48 $ 649.34 $ 6 x per week 308.01$ 23.40 $ 179.37 $ 80.65 $ 80.65 $ 672.08 $ 20.79 $ 692.87 $ 350.17 $ 23.40 $ 194.21 $ 89.65 $ 89.65 $ 747.08 $ 23.11 $ 770.19 $ 3 yd Bin
1 x per week 81.22$ 5.85 $ 44.84 $ 20.83 $ 20.83 $ 173.57 $ 5.37 $ 178.94$ 92.17 $ 5.85 $ 48.55 $ 23.14 $ 23.15 $ 192.86 $ 5.96 $ 198.82$ 2 x per week 139.24$ 11.70 $ 89.68 $ 37.99 $ 38.00 $ 316.61 $ 9.79 $ 326.40$ 158.87 $ 11.70 $ 97.10 $ 42.26 $ 42.27 $ 352.20 $ 10.89 $ 363.09 $ 3 x per week 196.50$ 17.55 $ 134.53 $ 55.04 $ 55.04 $ 458.66 $ 14.19 $ 472.85 $ 224.72 $ 17.55 $ 145.66 $ 61.25 $ 61.25 $ 510.43 $ 15.79 $ 526.22 $ 4 x per week 250.05$ 23.40 $ 179.37 $ 71.50 $ 71.50 $ 595.82 $ 18.43 $ 614.25 $ 286.49 $ 23.40 $ 194.21 $ 79.59 $ 79.60 $ 663.29 $ 20.51 $ 683.80 $ 5 x per week 304.68$ 29.25 $ 224.21 $ 88.13 $ 88.12 $ 734.39 $ 22.71 $ 757.10 $ 349.46 $ 29.25 $ 242.76 $ 98.13 $ 98.12 $ 817.72 $ 25.29 $ 843.01 $ 6 x per week 358.88$ 35.10 $ 269.05 $ 104.69 $ 104.69 $ 872.41 $ 26.98 $ 899.39 $ 411.95 $ 35.10 $ 291.31 $ 116.58 $ 116.59 $ 971.53 $ 30.05 $ 1,001.58$ 4 yd Bin
1 x per week 113.89$ 7.80 $ 59.79 $ 28.65 $ 28.66 $ 238.79 $ 7.39 $ 246.18$ 129.05 $ 7.80 $ 64.74 $ 31.83 $ 31.83 $ 265.25 $ 8.20 $ 273.45$ 2 x per week 168.97$ 15.60 $ 119.57 $ 48.02 $ 48.02 $ 400.18 $ 12.38 $ 412.56 $ 193.49 $ 15.60 $ 129.46 $ 53.46 $ 53.45 $ 445.46 $ 13.78 $ 459.24 $ 3 x per week 230.93$ 23.40 $ 179.37 $ 68.48 $ 68.48 $ 570.66 $ 17.65 $ 588.31 $ 265.49 $ 23.40 $ 194.21 $ 76.28 $ 76.28 $ 635.66 $ 19.66 $ 655.32 $ 4 x per week 293.08$ 31.20 $ 239.15 $ 88.96 $ 88.97 $ 741.36 $ 22.93 $ 764.29 $ 337.70 $ 31.20 $ 258.94 $ 99.13 $ 99.14 $ 826.11 $ 25.55 $ 851.66 $ 5 x per week 355.13$ 39.00 $ 298.94 $ 109.43 $ 109.43 $ 911.93 $ 28.20 $ 940.13 $ 409.80 $ 39.00 $ 323.67 $ 121.97 $ 121.97 $ 1,016.41$ 31.44 $ 1,047.85$ 6 x per week 409.12$ 46.80 $ 358.72 $ 128.63 $ 128.62 $ 1,071.89$ 33.15 $ 1,105.04$ 473.04 $ 46.80 $ 388.40 $ 143.41 $ 143.40 $ 1,195.05$ 36.96 $ 1,232.01$ 6 yd Bin - added - 3yd * 2 -$ - $ -$ - $ 1 x per week 162.43$ 11.70 $ 89.68 $ 41.65 $ 41.66 $ 347.12 $ 10.74 $ 357.86 $ 184.34 $ 11.70 $ 97.10 $ 46.29 $ 46.28 $ 385.71 $ 11.93 $ 397.64 $ 2 x per week 278.49$ 23.40 $ 179.37 $ 75.99 $ 75.99 $ 633.24 $ 19.58 $ 652.82 $ 317.74 $ 23.40 $ 194.21 $ 84.53 $ 84.53 $ 704.41 $ 21.79 $ 726.20 $ 3 x per week 393.01$ 35.10 $ 269.05 $ 110.08 $ 110.08 $ 917.32 $ 28.37 $ 945.69 $ 449.45 $ 35.10 $ 291.31 $ 122.50 $ 122.51 $ 1,020.87$ 31.57 $ 1,052.44$ 4 x per week 500.10$ 46.80 $ 358.72 $ 142.99 $ 143.00 $ 1,191.61$ 36.85 $ 1,228.46$ 572.99 $ 46.80 $ 388.40 $ 159.19 $ 159.19 $ 1,326.57$ 41.03 $ 1,367.60$ 5 x per week 609.36$ 58.50 $ 448.41 $ 176.25 $ 176.26 $ 1,468.78$ 45.43 $ 1,514.21$ 698.92 $ 58.50 $ 485.51 $ 196.25 $ 196.25 $ 1,635.43$ 50.58 $ 1,686.01$ 6 x per week 717.76$ 70.20 $ 538.09 $ 209.38 $ 209.37 $ 1,744.80$ 53.96 $ 1,798.76$ 823.90 $ 70.20 $ 582.61 $ 233.16 $ 233.17 $ 1,943.04$ 60.09 $ 2,003.13$ -$ - $
2 yd Compactor Bin - added (bin rate * 3) -$ - $ 1 x per week 202.05$ 11.70 $ 89.67 $ 47.91 $ 47.91 $ 399.24 $ 12.35 $ 411.59 $ 227.86 $ 11.70 $ 97.08 $ 53.16 $ 53.15 $ 442.95 $ 13.70 $ 456.65 $ 2 x per week 353.19$ 23.40 $ 179.37 $ 87.78 $ 87.79 $ 731.53 $ 22.62 $ 754.15 $ 399.81 $ 23.40 $ 194.22 $ 97.50 $ 97.48 $ 812.41 $ 25.13 $ 837.54 $ 3 x per week 496.02$ 35.10 $ 269.04 $ 126.33 $ 126.35 $ 1,052.84$ 32.56 $ 1,085.40$ 562.61 $ 35.10 $ 291.30 $ 140.37 $ 140.37 $ 1,169.75$ 36.18 $ 1,205.93$ 4 x per week 638.04$ 46.80 $ 358.71 $ 164.76 $ 164.78 $ 1,373.09$ 42.47 $ 1,415.56$ 724.52 $ 46.80 $ 388.38 $ 183.12 $ 183.10 $ 1,525.92$ 47.19 $ 1,573.11$ 5 x per week 785.16$ 58.50 $ 448.41 $ 204.00 $ 204.02 $ 1,700.09$ 52.58 $ 1,752.67$ 892.04 $ 58.50 $ 485.52 $ 226.74 $ 226.75 $ 1,889.55$ 58.44 $ 1,947.99$ 6 x per week 924.03$ 70.20 $ 538.11 $ 241.95 $ 241.95 $ 2,016.24$ 62.36 $ 2,078.60$ 1,050.50 $ 70.20 $ 582.63 $ 268.95 $ 268.94 $ 2,241.22$ 69.32 $ 2,310.54$ -$ - $
3 yd Compactor Bin - added (bin rate *3) -$ - $
1 x per week 243.66$ 17.55 $ 134.52 $ 62.49 $ 62.48 $ 520.70 $ 16.10 $ 536.80 $ 276.52 $ 17.55 $ 145.65 $ 69.42 $ 69.44 $ 578.58 $ 17.89 $ 596.47 $ 2 x per week 417.72$ 35.10 $ 269.04 $ 113.97 $ 113.99 $ 949.82 $ 29.38 $ 979.20 $ 476.60 $ 35.10 $ 291.30 $ 126.78 $ 126.80 $ 1,056.58$ 32.68 $ 1,089.26$ 3 x per week 589.50$ 52.65 $ 403.59 $ 165.12 $ 165.11 $ 1,375.97$ 42.56 $ 1,418.53$ 674.16 $ 52.65 $ 436.98 $ 183.75 $ 183.76 $ 1,531.30$ 47.36 $ 1,578.66$ 4 x per week 750.15$ 70.20 $ 538.11 $ 214.50 $ 214.49 $ 1,787.45$ 55.28 $ 1,842.73$ 859.48 $ 70.20 $ 582.63 $ 238.77 $ 238.80 $ 1,989.88$ 61.54 $ 2,051.42$ 5 x per week 914.04$ 87.75 $ 672.63 $ 264.39 $ 264.37 $ 2,203.18$ 68.14 $ 2,271.32$ 1,048.38 $ 87.75 $ 728.28 $ 294.39 $ 294.37 $ 2,453.17$ 75.87 $ 2,529.04$ 6 x per week 1,076.64$ 105.30 $ 807.15 $ 314.07 $ 314.06 $ 2,617.22$ 80.94 $ 2,698.16$ 1,235.86 $ 105.30 $ 873.93 $ 349.74 $ 349.76 $ 2,914.59$ 90.14 $ 3,004.73$ Current Rates Rates Effective 7/1/2022

3.B.b
Packet Pg. 79
Attachment: 2022-2023 Rates (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Burrtec Waste
Rate Effective 7/1/2022
Cathedral City
Commercial Solid Waste (Trash) Rates
Current Rates Rates Effective 7/1/2022
4 yd Compactor Bin - added (bin rate *3)
1 x per week 341.67$ 23.40 $ 179.37 $ 85.95 $ 85.98 $ 716.37 $ 22.16 $ 738.53 $ 387.14 $ 23.40 $ 194.22 $ 95.49 $ 95.49 $ 795.74 $ 24.61 $ 820.35 $ 2 x per week 506.91$ 46.80 $ 358.71 $ 144.06 $ 144.07 $ 1,200.55$ 37.13 $ 1,237.68$ 580.48 $ 46.80 $ 388.38 $ 160.38 $ 160.35 $ 1,336.39$ 41.33 $ 1,377.72$ 3 x per week 692.79$ 70.20 $ 538.11 $ 205.44 $ 205.43 $ 1,711.97$ 52.95 $ 1,764.92$ 796.47 $ 70.20 $ 582.63 $ 228.84 $ 228.83 $ 1,906.97$ 58.98 $ 1,965.95$ 4 x per week 879.24$ 93.60 $ 717.45 $ 266.88 $ 266.90 $ 2,224.07$ 68.79 $ 2,292.86$ 1,013.09 $ 93.60 $ 776.82 $ 297.39 $ 297.40 $ 2,478.30$ 76.65 $ 2,554.95$ 5 x per week 1,065.39$ 117.00 $ 896.82 $ 328.29 $ 328.30 $ 2,735.80$ 84.61 $ 2,820.41$ 1,229.40 $ 117.00 $ 971.01 $ 365.91 $ 365.90 $ 3,049.22$ 94.31 $ 3,143.53$ 6 x per week 1,227.36$ 140.40 $ 1,076.16$ 385.89 $ 385.87 $ 3,215.68$ 99.45 $ 3,315.13$ 1,419.13 $ 140.40 $ 1,165.20$ 430.23 $ 430.21 $ 3,585.17$ 110.88 $ 3,696.05$ 6 yd Compactor Bin - added (bin rate *3)
1 x per week 487.29$ 35.10 $ 269.04 $ 124.95 $ 124.98 $ 1,041.36$ 32.21 $ 1,073.57$ 553.01 $ 35.10 $ 291.30 $ 138.87 $ 138.84 $ 1,157.12$ 35.79 $ 1,192.91$ SB 1383 with Blue Carts with Pales
12% 12% 3% Total 12% 12% 3% Total
Franchise Environ Utility Monthly Franchise Environ Utility Monthly Service Disposal Fee Fee Sub-Total Users Tax Rate Service Disposal Fee Fe e Sub-Total Users Tax Rate (Note 1) (Note 2) (Note 3) (Note 1) (Note 2) (Note 3)

ADDITIONAL CHARGES
2 yd Bin - Extra Empty 42.15 $ - $ 6.66 $ 6.65 $ 55.46 $ 1.72 $ 57.18 $ 46.30 $ - $ 7.31 $ 7.31 $ 60.92 $ 1.88 $ 62.80 $ 3 yd Bin - Extra Empty 58.74 $ - $ 9.27 $ 9.28 $ 77.29 $ 2.39 $ 79.68 $ 64.53 $ - $ 10.19$ 10.19 $ 84.91 $ 2.63 $ 87.54 $ 4 yd Bin - Extra Empty 83.86 $ - $ 13.24$ 13.24 $ 110.34 $ 3.41 $ 113.75$ 92.13 $ - $ 14.55$ 14.54 $ 121.22 $ 3.75 $ 124.97$ 6 yd Bin - Extra Empty 106.84 $ - $ 16.87$ 16.87 $ 140.58 $ 4.35 $ 144.93$ 113.06 $ - $ 17.85$ 17.85 $ 148.76 $ 4.60 $ 153.36$ 6 yd Bin - Extra Empty 117.48 $ - $ 18.55$ 18.55 $ 154.58 $ 4.78 $ 159.36$ 129.06 $ - $ 20.38$ 20.38 $ 169.82 $ 5.25 $ 175.07$

OTHER FEES
New Start Fee 8.97 $ - $ 1.42 $ 1.41 $ 11.80 $ 0.36 $ 12.16 $ 9.85 $ - $ 1.56 $ 1.55 $ 12.96 $ 0.40 $ 13.36 $ Re-Start Fee 23.92 $ - $ 3.78 $ 3.77 $ 31.47 $ 0.97 $ 32.44 $ 26.28 $ - $ 4.15 $ 4.15 $ 34.58 $ 1.07 $ 35.65 $ Delivery Fee 20.22 $ - $ 3.19 $ 3.20 $ 26.61 $ 0.82 $ 27.43 $ 22.22 $ - $ 3.51 $ 3.51 $ 29.24 $ 0.90 $ 30.14 $ Pull-Out (monthly rate per 1 bin 1x/wk 4-wks 38.87$ - $ 6.14 $ 6.13 $ 51.14 $ 1.58 $ 52.72 $ 42.70 $ - $ 6.74 $ 6.74 $ 56.18 $ 1.74 $ 57.92 $ Locking Container 78.09 $ - $ 12.33$ 12.33 $ 102.75 $ 3.18 $ 105.93$ 85.78 $ - $ 13.54$ 13.55 $ 112.87 $ 3.49 $ 116.36$ Replacement Locking Bar 51.33 $ - $ 8.10 $ 8.11 $ 67.54 $ 2.09 $ 69.63 $ 56.39 $ - $ 8.90 $ 8.91 $ 74.20 $ 2.29 $ 76.49 $ Saturday (service less than 4x/wk) 39.21 $ - $ 6.19 $ 6.19 $ 51.59 $ 1.60 $ 53.19 $ 43.07 $ - $ 6.80 $ 6.80 $ 56.67 $ 1.75 $ 58.42 $ 3-Yd Construction/Temp BIN (per lift) 124.56 $ 23.17 $ 23.33 $ 23.32 $ 194.38 $ 6.01 $ 200.39$ 138.18 $ 25.09 $ 25.78 $ 25.78 $ 214.83 $ 6.64 $ 221.47$ 4-Yd Construction/Temp BIN (per lift) 147.44 $ 30.89 $ 28.16 $ 28.15 $ 234.64 $ 7.26 $ 241.90$ 163.77 $ 33.45 $ 31.14 $ 31.14 $ 259.50 $ 8.03 $ 267.53$ Extra Trip Charge 34.77 $ - $ 5.49 $ 5.49 $ 45.75 $ 1.41 $ 47.16 $ 38.19 $ - $ 6.03 $ 6.03 $ 50.25 $ 1.55 $ 51.80 $ Day charge > than 7 days 21.39 $ - $ 3.38 $ 3.37 $ 28.14 $ 0.87 $ 29.01 $ 23.49 $ - $ 3.71 $ 3.71 $ 30.91 $ 0.96 $ 31.87 $ Construction/Temp Extra Trip Charge 48.82 $ - $ 7.71 $ 7.71 $ 64.24 $ 1.99 $ 66.23 $ 53.63 $ - $ 8.47 $ 8.47 $ 70.57 $ 2.18 $ 72.75 $ Commercial – Saturday surcharge 38.06 $ - $ 6.01 $ 6.01 $ 50.08 $ 1.55 $ 51.63 $ 41.81 $ - $ 6.60 $ 6.60 $ 55.01 $ 1.70 $ 56.71 $ Commercial – Repaint bins 108.76 $ - $ 17.17$ 17.18 $ 143.11 $ 4.43 $ 147.54$ 119.48 $ - $ 18.87$ 18.86 $ 157.21 $ 4.86 $ 162.07$ Saturday charge per bin (min service - 4x/wk) 39.21$ - $ 6.19 $ 6.19 $ 51.59 $ 1.60 $ 53.19 $ 43.07 $ - $ 6.80 $ 6.80 $ 56.67 $ 1.75 $ 58.42 $ Re-Paint* 108.76 $ - $ 17.17$ 17.18 $ 143.11 $ 4.43 $ 147.54$ 119.48 $ - $ 18.87$ 18.86 $ 157.21 $ 4.86 $ 162.07$ Commercial Barrel Service 19.52 $ - $ 3.08 $ 3.08 $ 25.68 $ 0.79 $ 26.47 $ 21.45 $ - $ 3.39 $ 3.38 $ 28.22 $ 0.87 $ 29.09 $ Note 1 - Franchise Fee = Total Rate less UUT x 12% Note 1 - Fran chise Fee = Total Rate less UUT x 12% Note 2 - Environmental Fee = Total Rate less UUT x 12% Note 2 - Environmental Fee = Total Rate less UUT x 12% Note 3 - UUT Fee = Sub-total Rate x 3% Note 3 - UUT Fee = Sub -total Rate x 3% Current Rates Rates Effective 7/1/2022

3.B.b
Packet Pg. 80
Attachment: 2022-2023 Rates (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Burrtec Waste
Rate Effective 7/1/2022
Cathedral City
Commercial Recycling Rates
12% 12% 3% Total 12% 12% 3% Total
Net Franchise Environ Utility Monthly Net Franchise Environ Utility Mo nthly Service Recycling Fee Fee Sub-total Users Tax Rate Service Recycling Fee Fee Sub-total Users Tax Rate (Note1) (Note2) (Note3) (Note1) (Note2) (Note3)
2 yd Bin
1 x per week 48.67$ 8.67 $ 9.05 $ 9.05 $ 75.45 $ 2.34 $ 77.78 $ 53.97 $ 4.12 $ 9.17 $ 9.17 $ 76.43 $ 2.35 $ 78.79 $ 2 x per week 89.00$ 17.33 $ 16.79 $ 16.79 $ 139.91 $ 4.33 $ 144.24$ 98.79 $ 8.23 $ 16.90 $ 16.90 $ 140.82 $ 4.38 $ 145.18$ 3 x per week 127.69$ 26.00 $ 24.27 $ 24.27 $ 202.22 $ 6.24 $ 208.47$ 141.79 $ 12.35 $ 24.34 $ 24.34 $ 202.82 $ 6.27 $ 209.09$ 4 x per week 166.78$ 34.66 $ 31.81 $ 31.81 $ 265.05 $ 8.19 $ 273.25$ 185.23 $ 16.47 $ 31.85 $ 31.85 $ 265.39 $ 8.20 $ 273.60$ 5 x per week 204.90$ 43.33 $ 39.19 $ 39.19 $ 326.62 $ 10.11 $ 336.72 $ 227.61 $ 20.58 $ 39.19 $ 39.19 $ 326.57 $ 10.09 $ 336.67 $ 6 x per week 244.75$ 52.00 $ 46.86 $ 46.86 $ 390.46 $ 12.08 $ 402.54 $ 271.89 $ 24.70 $ 46.83 $ 46.83 $ 390.25 $ 12.09 $ 402.32 $ 3 yd Bin
1 x per week 63.26$ 13.00 $ 12.04 $ 12.04 $ 100.34 $ 3.11 $ 103.44$ 70.24 $ 6.17 $ 12.06 $ 12.06 $ 100.54 $ 3.11 $ 103.65$ 2 x per week 115.13$ 26.00 $ 22.28 $ 22.28 $ 185.70 $ 5.74 $ 191.44$ 128.00 $ 12.35 $ 22.16 $ 22.16 $ 184.67 $ 5.72 $ 190.38$ 3 x per week 166.60$ 39.00 $ 32.46 $ 32.46 $ 270.53 $ 8.38 $ 278.90$ 185.30 $ 18.52 $ 32.18 $ 32.18 $ 268.18 $ 8.30 $ 276.47$ 4 x per week 216.25$ 52.00 $ 42.36 $ 42.36 $ 352.96 $ 10.91 $ 363.88 $ 240.60 $ 24.70 $ 41.89 $ 41.89 $ 349.08 $ 10.82 $ 359.88 $ 5 x per week 266.43$ 65.00 $ 52.33 $ 52.33 $ 436.09 $ 13.48 $ 449.58 $ 296.48 $ 30.87 $ 51.69 $ 51.69 $ 430.72 $ 13.32 $ 444.04 $ 6 x per week 316.42$ 78.00 $ 62.28 $ 62.28 $ 518.97 $ 16.03 $ 535.02 $ 352.15 $ 37.05 $ 61.45 $ 61.45 $ 512.11 $ 15.83 $ 527.95 $ 4 yd Bin
1 x per week 87.08$ 17.33 $ 16.49 $ 16.49 $ 137.38 $ 4.25 $ 141.63$ 96.66 $ 8.23 $ 16.56 $ 16.56 $ 138.01 $ 4.27 $ 142.28$ 2 x per week 145.29$ 34.66 $ 28.41 $ 28.41 $ 236.78 $ 7.32 $ 244.10$ 161.64 $ 16.47 $ 28.12 $ 28.12 $ 234.36 $ 7.25 $ 241.61$ 3 x per week 206.86$ 52.00 $ 40.87 $ 40.87 $ 340.61 $ 10.54 $ 351.14 $ 230.27 $ 24.70 $ 40.26 $ 40.26 $ 335.49 $ 10.38 $ 345.87 $ 4 x per week 268.54$ 69.33 $ 53.35 $ 53.35 $ 444.57 $ 13.74 $ 458.32 $ 299.05 $ 32.93 $ 52.42 $ 52.42 $ 436.82 $ 13.52 $ 450.33 $ 5 x per week 330.16$ 86.66 $ 65.81 $ 65.81 $ 548.45 $ 16.97 $ 565.41 $ 367.74 $ 41.16 $ 64.56 $ 64.56 $ 538.03 $ 16.65 $ 554.67 $ 6 x per week 387.82$ 103.99 $ 77.65 $ 77.65 $ 647.12 $ 20.02 $ 667.13 $ 432.09 $ 49.40 $ 76.02 $ 76.02 $ 633.54 $ 19.60 $ 653.13 $ 6 yd Bin
1 x per week 126.53$ 26.00 $ 24.08 $ 24.08 $ 200.70 $ 6.22 $ 206.91$ 140.51 $ 12.35 $ 24.14 $ 24.14 $ 201.13 $ 6.22 $ 207.35$ 2 x per week 230.24$ 52.00 $ 44.56 $ 44.56 $ 371.37 $ 11.49 $ 382.86 $ 255.96 $ 24.70 $ 44.31 $ 44.31 $ 369.29 $ 11.41 $ 380.71 $ 3 x per week 333.19$ 78.00 $ 64.92 $ 64.92 $ 541.04 $ 16.74 $ 557.77 $ 370.56 $ 37.05 $ 64.36 $ 64.36 $ 536.33 $ 16.58 $ 552.92 $ 4 x per week 432.54$ 103.99 $ 84.72 $ 84.72 $ 705.96 $ 21.82 $ 727.79 $ 481.22 $ 49.40 $ 83.78 $ 83.78 $ 698.18 $ 21.59 $ 719.77 $ 5 x per week 532.86$ 129.99 $ 104.66 $ 104.66 $ 872.17 $ 26.97 $ 899.14 $ 592.94 $ 61.74 $ 103.37 $ 103.37 $ 861.42 $ 26.64 $ 888.06 $ 6 x per week 632.85$ 155.99 $ 124.55 $ 124.55 $ 1,037.95 $ 32.10 $ 1,070.05$ 704.31 $ 74.09 $ 122.91 $ 122.91 $ 1,024.21 $ 31.68 $ 1,055.89$

ADDITIONAL CHARGES
2 yd Bin - Extra Empty 21.06 $ - $ 3.33 $ 3.33 $ 27.71 $ 0.85 $ 28.57 $ 23.14 $ - $ 3.65 $ 3.65 $ 30.45 $ 0.94 $ 31.39 $ 3 yd Bin - Extra Empty 29.35 $ - $ 4.63 $ 4.63 $ 38.62 $ 1.19 $ 39.81 $ 32.27 $ - $ 5.10 $ 5.10 $ 42.46 $ 1.32 $ 43.77 $ 4 yd Bin - Extra Empty 41.92 $ - $ 6.62 $ 6.62 $ 55.16 $ 1.71 $ 56.87 $ 46.06 $ - $ 7.27 $ 7.27 $ 60.61 $ 1.89 $ 62.48 $ 6 yd Bin - Extra Empty 58.72 $ - $ 9.27 $ 9.27 $ 77.26 $ 2.39 $ 79.65 $ 64.51 $ - $ 10.19$ 10.19 $ 84.88 $ 2.64 $ 87.51 $

OTHER FEES
New Start Fee 4.47 $ - $ 0.71 $ 0.71 $ 5.88 $ 0.17 $ 6.06 $ 4.90 $ - $ 0.77 $ 0.77 $ 6.45 $ 0.19 $ 6.65 $ Re-Start Fee 11.96 $ - $ 1.89 $ 1.89 $ 15.74 $ 0.48 $ 16.23 $ 13.14 $ - $ 2.07 $ 2.07 $ 17.29 $ 0.51 $ 17.82 $ Delivery Fee 10.11 $ - $ 1.60 $ 1.60 $ 13.30 $ 0.40 $ 13.71 $ 11.11 $ - $ 1.75 $ 1.75 $ 14.62 $ 0.44 $ 15.07 $ Pull-Out (monthly with flat rate, per 1 bin
1x/wk for 4 wks) 19.44 $ - $ 3.07 $ 3.07 $ 25.58 $ 0.78 $ 26.37 $ 21.36 $ - $ 3.37 $ 3.37 $ 28.11 $ 0.86 $ 28.98 $ Locking Container 39.03 $ - $ 6.16 $ 6.16 $ 51.36 $ 1.60 $ 52.95 $ 42.88 $ - $ 6.77 $ 6.77 $ 56.42 $ 1.75 $ 58.16 $ Replacement Locking Bar 25.65 $ - $ 4.05 $ 4.05 $ 33.75 $ 1.04 $ 34.79 $ 28.17 $ - $ 4.45 $ 4.45 $ 37.07 $ 1.14 $ 38.22 $ Saturday (service less than 4x/wk.) 19.44 $ - $ 3.07 $ 3.07 $ 25.58 $ 0.78 $ 26.37 $ 21.36 $ - $ 3.37 $ 3.37 $ 28.11 $ 0.86 $ 28.98 $ Commercial Recycling Barrel 96 gal 1 X 9.77 $ - $ 1.54 $ 1.54 $ 12.86 $ 0.41 $ 13.26 $ 10.72 $ - $ 1.69 $ 1.69 $ 14.11 $ 0.42 $ 14.55 $ Compactors 3x rate
Note 1 - Franchise Fee = Total Rate less UUT x 12% Note 1 - Fran chise Fee = Total Rate less UUT x 12% Note 2 - Environmental Fee = Total Rate less UUT x 12% Note 2 - Environmental Fee = Total Rate less UUT x 12% Note 3 - UUT Fee = Sub-total Rate x 3% Note 3 - UUT Fee = Sub -total Rate x 3% Current Rates Rates Effective 7/1/2022

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Attachment: 2022-2023 Rates (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Burrtec Waste
Rate Effective 7/1/2022
Cathedral City
Organic Commercial Rates
1-64 Gallon Cart Recycling 12% 12% 3% Total Recycling 12% 12% 3% Total # Pick-Ups Collection Material Franchise Envir. UUT Monthly Collection Material Franchise Envir. UUT Monthly Per week Component Processing Fee (a) Fee (a) Sub-total Fee (b) Rate Co mponent Processing Fee (a) Fee (a) Sub-total Fee (b) Rate 1 33.71 $ 32.50 $ 10.46 $ 10.46 $ 87.12 $ 2.69 $ 89.81 $ 35.07 $ 36.83 $ 11.36 $ 11.36 $ 94.61 $ 2.93 $ 97.54 $ 2 67.43 $ 65.00 $ 20.91 $ 20.91 $ 174.25 $ 5.38 $ 179.63$ 70.15 $ 73.67 $ 22.71 $ 22.72 $ 189.24 $ 5.84 $ 195.08$ 3 101.14 $ 97.50 $ 31.37 $ 31.37 $ 261.37 $ 8.08 $ 269.45$ 105.22 $ 110.50 $ 34.06 $ 34.06 $ 283.85 $ 8.78 $ 292.63$ 4 134.87 $ 130.00 $ 41.82 $ 41.83 $ 348.52 $ 10.78 $ 359.30 $ 140.32 $ 147.33 $ 45.42 $ 45.42 $ 378.49 $ 11.71 $ 390.20 $ 5 168.59 $ 162.50 $ 52.28 $ 52.29 $ 435.64 $ 13.48 $ 449.12 $ 175.40 $ 184.17 $ 56.78 $ 56.79 $ 473.11 $ 14.64 $ 487.75 $ 2-64 Gallon Cart
Total Total
# Pick-Ups Collection Material Franchise Envir. UUT Monthly Collection Material Franchise Envir. UUT Monthly Per week Component Processing Fee (a) Fee (a) Sub-total Fee (b) Rate Co mponent Processing Fee (a) Fee (a) Sub-total Fee (b) Rate 1 53.94 $ 65.00 $ 18.78 $ 18.77 $ 156.50 $ 4.84 $ 161.34$ 56.12 $ 73.67 $ 20.50 $ 20.50 $ 170.78 $ 5.28 $ 176.06$ 2 107.89 $ 130.00 $ 37.56 $ 37.57 $ 313.02 $ 9.67 $ 322.69$ 112.25 $ 147.33 $ 40.99 $ 41.00 $ 341.56 $ 10.55 $ 352.11 $ 3 161.84 $ 195.00 $ 56.35 $ 56.34 $ 469.52 $ 14.52 $ 484.04 $ 168.38 $ 221.00 $ 61.48 $ 61.48 $ 512.34 $ 15.85 $ 528.19 $ 4 215.79 $ 260.00 $ 75.13 $ 75.14 $ 626.04 $ 19.36 $ 645.40 $ 224.50 $ 294.67 $ 81.98 $ 81.99 $ 683.12 $ 21.13 $ 704.25 $ 5 269.73 $ 325.00 $ 93.91 $ 93.92 $ 782.54 $ 24.20 $ 806.74 $ 280.62 $ 368.33 $ 102.47 $ 102.48 $ 853.88 $ 26.41 $ 880.29 $ Extra Pickup
# of Carts Collection Material Franchise Envir. UUT Monthly Collection Material Franchise Envir. UUT Monthly Per Pick up Component Processing Fee (a) Fee (a) Sub-total Fee (b) Rat e Component Processing Fee (a) Fee (a) Sub-total Fee (b) Rate 1 11.62 $ 7.50 $ 3.02 $ 3.03 $ 25.16 $ 0.78 $ 25.94 $ 12.09 $ 8.50 $ 3.25 $ 3.26 $ 27.09 $ 0.84 $ 27.93 $ 2 20.92 $ 15.00 $ 5.67 $ 5.67 $ 47.26 $ 1.46 $ 48.72 $ 21.76 $ 17.00 $ 6.12 $ 6.12 $ 51.00 $ 1.58 $ 52.58 $ 3 26.15 $ 22.50 $ 7.68 $ 7.67 $ 64.01 $ 1.98 $ 65.99 $ 27.21 $ 25.50 $ 8.33 $ 8.32 $ 69.36 $ 2.15 $ 71.51 $ 4 34.87 $ 30.00 $ 10.25 $ 10.26 $ 85.36 $ 2.64 $ 88.00 $ 36.28 $ 34.00 $ 11.10 $ 11.11 $ 92.47 $ 2.86 $ 95.33 $ 5 43.58 $ 37.50 $ 12.80 $ 12.80 $ 106.68 $ 3.30 $ 109.98$ 45.34 $ 42.50 $ 13.87 $ 13.87 $ 115.58 $ 3.57 $ 119.15$ ` `
Note (a) - Franchise Fee & Envir Fee = (Total Rate less UUT) x 12% Note (b) - UUT Fee = Sub-Total x 3%
3-64 Gallon Cart
Total Total
# Pick-Ups Collection Material Franchise Envir. UUT Monthly Collection Material Franchise Envir. UUT Monthly Per week Component Processing Fee Fee (a) Sub-total Fee (b) Rate Compon ent Processing Fee Fee (a) Sub-total Fee (b) Rate 1 70.80 $ 97.50 $ 26.58 $ 26.57 $ 221.45 $ 6.83 $ 228.28$ 73.66 $ 110.50 $ 29.08 $ 29.07 $ 242.32 $ 7.47 $ 249.79$ 2 151.73 $ 195.00 $ 54.75 $ 54.76 $ 456.22 $ 14.12 $ 470.34 $ 157.86 $ 221.00 $ 59.82 $ 59.82 $ 498.49 $ 15.43 $ 513.92 $ 3 212.42 $ 292.50 $ 79.73 $ 79.73 $ 664.37 $ 20.55 $ 684.92 $ 221.00 $ 331.50 $ 87.24 $ 87.24 $ 726.97 $ 22.48 $ 749.45 $ 4 283.23 $ 390.00 $ 106.30 $ 106.29 $ 885.83 $ 27.38 $ 913.21 $ 294.67 $ 442.00 $ 116.32 $ 116.31 $ 969.31 $ 29.96 $ 999.27 $ 5 354.03 $ 487.50 $ 132.87 $ 132.88 $ 1,107.27$ 34.24 $ 1,141.51$ 368.33 $ 552.50 $ 145.40 $ 145.40 $ 1,211.61$ 37.46 $ 1,249.07$ 4-64 Gallon Cart
Total Total
# Pick-Ups Collection Material Franchise Envir. UUT Monthly Collection Material Franchise Envir. UUT Monthly Per week Component Processing Fee Fee (a) Sub-total Fee (b) Rate Compon ent Processing Fee Fee (a) Sub-total Fee (b) Rate 1 80.92 $ 130.00 $ 33.31 $ 33.30 $ 277.53 $ 8.58 $ 286.11$ 84.19 $ 147.33 $ 36.56 $ 36.56 $ 304.64 $ 9.42 $ 314.06$ 2 161.83 $ 260.00 $ 66.61 $ 66.61 $ 555.04 $ 17.17 $ 572.21 $ 168.36 $ 294.67 $ 73.11 $ 73.10 $ 609.25 $ 18.84 $ 628.09 $ 3 242.77 $ 390.00 $ 99.91 $ 99.92 $ 832.59 $ 25.74 $ 858.33 $ 252.57 $ 442.00 $ 109.67 $ 109.68 $ 913.91 $ 28.26 $ 942.17 $ 4 323.69 $ 520.00 $ 133.22 $ 133.22 $ 1,110.11$ 34.34 $ 1,144.45$ 336.76 $ 589.33 $ 146.23 $ 146.24 $ 1,218.53$ 37.70 $ 1,256.23$ 5 404.60 $ 650.00 $ 166.52 $ 166.51 $ 1,387.63$ 42.92 $ 1,430.55$ 420.94 $ 736.67 $ 182.78 $ 182.77 $ 1,523.17$ 47.11 $ 1,570.28$ Additional Cart after 4 Carts Per Week Total Total
# of Carts Rate Material Franchise Envir. UUT Monthly Rate Material Fran chise Envir. UUT Monthly Per Pick-Up Per Pick up Processing Fee Fee (a) Sub-total Fee (b) Rate P er Pick up Processing Fee Fee (a) Sub-total Fee (b) Rate 1 18.71 $ 32.50 $ 8.09 $ 8.09 $ 67.38 $ 2.08 $ 69.46 $ 19.47 $ 36.83 $ 8.89 $ 8.89 $ 74.07 $ 2.29 $ 76.36 $ 2 37.36 $ 65.00 $ 16.16 $ 16.15 $ 134.68 $ 4.17 $ 138.85$ 38.87 $ 73.67 $ 17.77 $ 17.76 $ 148.08 $ 4.58 $ 152.66$ 3 56.12 $ 97.50 $ 24.26 $ 24.26 $ 202.13 $ 6.26 $ 208.39$ 58.39 $ 110.50 $ 26.67 $ 26.67 $ 222.22 $ 6.88 $ 229.10$ 4 74.83 $ 130.00 $ 32.34 $ 32.35 $ 269.51 $ 8.33 $ 277.84$ 77.85 $ 147.33 $ 35.56 $ 35.57 $ 296.29 $ 9.15 $ 305.44$ 5 93.54 $ 162.50 $ 40.43 $ 40.44 $ 336.89 $ 10.43 $ 347.32 $ 97.32 $ 184.17 $ 44.45 $ 44.46 $ 370.38 $ 11.47 $ 381.85 $ Current Rates Rates Eff 7/1/2022

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Attachment: 2022-2023 Rates (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Burrtec Waste
Cathedral City
Rate Effective 7/1/2022
Rolloff Rates
12% City 3% Total 12% City 3% Total
Franchise Environ Utility Monthly Franchise Environ Utility Monthly Service Disposal Fee Fee Sub-total Users Ta x Rate Service Disposal Fee Fee Sub-total Users Ta x Rate Permanent Rolloff (Note 1) (Note 2) (Note 1) (Note 2) Service Rate (4 Pull Minimum)
20 Yards 514.69 $ - $ 70.19$ - $ 584.88$ 18.09 $ 602.97 $ 565.41 $ - $ 77.10$ - $ 642.51$ 19.87 $ 662.38 $ 30 Yards 723.02 $ - $ 98.59$ - $ 821.61$ 25.41 $ 847.02 $ 794.28 $ - $ 108.31$ - $ 902.59$ 27.92 $ 930.51 $ 40 Yards 853.98 $ - $ 116.45$ - $ 970.43$ 30.01 $ 1,000.44$ 938.15 $ - $ 127.93$ - $ 1,066.08$ 32.97 $ 1,099.05$ Permanent Rolloff
Per Pull Rate (After 4 Pulls)
20 Yards 136.67 $ - $ 18.64$ - $ 155.31$ 4.80 $ 160.11$ 150.14 $ - $ 20.47$ - $ 170.61$ 5.28 $ 175.89$ 30 Yards 188.76 $ - $ 25.74$ - $ 214.50$ 6.63 $ 221.13$ 207.36 $ - $ 28.28$ - $ 235.64$ 7.29 $ 242.93$ 40 Yards 221.49 $ - $ 30.20$ - $ 251.69$ 7.78 $ 259.47$ 243.32 $ - $ 33.18$ - $ 276.50$ 8.55 $ 285.05$ Compactor
Service Rate Per Pull
20 Yards 388.66 $ - $ 53.00$ - $ 441.66$ 13.66 $ 455.32 $ 426.96 $ - $ 58.22$ - $ 485.18$ 15.01 $ 500.19 $ 30 Yards 544.94 $ - $ 74.31$ - $ 619.25$ 19.15 $ 638.40 $ 598.65 $ - $ 81.63$ - $ 680.28$ 21.04 $ 701.32 $ 40 Yards 643.14 $ - $ 87.70$ - $ 730.84$ 22.60 $ 753.44 $ 706.53 $ - $ 96.35$ - $ 802.88$ 24.83 $ 827.71 $ Per Ton Disposal Fees 51.49$ 9.78 $ 20.24 $ 81.51 $ 2.52 $ 84.03 $ 55.75 $ 10.36 $ 20.24 $ 86.35 $ 2.67 $ 89.02 $ Additional Fees
New Start 8.95 $ - $ 1.22 $ - $ 10.17$ 0.31 $ 10.48 $ 9.83 $ - $ 1.34 $ - $ 11.17$ 0.35 $ 11.52 $ Re-Start 23.91 $ - $ 3.26 $ - $ 27.17$ 0.84 $ 28.01 $ 26.27 $ - $ 3.58 $ - $ 29.85$ 0.92 $ 30.77 $ Delivery 30.88 $ - $ 4.21 $ - $ 35.09$ 1.09 $ 36.18 $ 33.93 $ - $ 4.63 $ - $ 38.56$ 1.19 $ 39.75 $ Rolloff Relocation 46.44 $ - $ 6.33 $ - $ 52.77$ 1.63 $ 54.40 $ 51.02 $ - $ 6.96 $ - $ 57.98$ 1.79 $ 59.77 $ Rolloff Repaint 327.38 $ - $ 44.64$ - $ 372.02$ 11.51 $ 383.53 $ 359.65 $ - $ 49.04$ - $ 408.69$ 12.64 $ 421.33 $ Relocation 57.12 $ - $ 7.79 $ - $ 64.91$ 2.01 $ 66.92 $ 62.75 $ - $ 8.56 $ - $ 71.31$ 2.21 $ 73.52 $ Extra Trip 74.90 $ - $ 10.21$ - $ 85.11$ 2.63 $ 87.74 $ 82.28 $ - $ 11.22$ - $ 93.50$ 2.89 $ 96.39 $ RePaint 327.38 $ - $ 44.64$ - $ 372.02$ 11.51 $ 383.53 $ 359.65 $ - $ 49.04$ - $ 408.69$ 12.64 $ 421.33 $ Concrete Washout Pump 113.82$ - $ 15.52$ - $ 129.34$ 4.00 $ 133.34$ 125.04 $ - $ 17.05$ - $ 142.09$ 4.39 $ 146.48$ Note 1 - Franchise Fee= (Total Rate less UUT) x 12% Note 1 - Fra nchise Fee= (Total Rate less UUT) x 12% Note 2 - UUT Fee = Sub-Total Rate x 3% Note 2 - UUT Fee = Su b-Total Rate x 3% Current Rates Rates Eff 7/1/2022

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Attachment: 2022-2023 Rates (3215 : Rate Increase on Commercial, Residential and Roll-Off Services)

FIRST AMENDMENT TO AMENDED AND RESTATED

FRANCHISE AGREEMENT

This First Amendment to Amended and Restated Franchise Agreemen t (the “Amendment”) is entered into [______________], 2021, by and between the City of Cathedral City (“City”) and Burrtec Waste and Recycling Services, LLC (“Company”) (collectively “Parties,” or individually “Party”).]

RECITALS
WHEREAS, the City and Company previously entered into that cert ain Amended and Restated Franchise Agreement for Integrated Solid Waste Managem ent Services dated July 1. 2020 (the “Agreement”); and,
WHEREAS, SB 1383 regulations requi re the City to implement coll ection programs, meet processing facility requi rements, conduct contamination mo nitoring, provide education, maintain records, submit reports , monitor compliance, conduct e n f o r c e m e n t , a n d f u l f i l l o t h e r requirements; and, the City has chosen to delegate some of its responsibilities to the Company, acting as the City’s designee, and Company desires to take on these responsibilities; and WHEREAS, the City and Company desire to amend the Agreement as set forth herein.

NOW, THEREFORE, in consideration of the promises above stated a nd the terms, conditions, covenants, and agreements contained herein, the Parties do hereby agree as follows:

1. AMENDMENT TO ARTCLE 1.

The following definitions are added to, and/or shall amend the definitions in, Article 1 of the Agreement, as set forth herein, as applicable. Definitions otherwise contained in the Agreement and/or any previous a mendment(s), but which are not a ddressed below, shall remain the same.
“Back-Haul” means generating and transporting Organic Waste to a destinati on owned and operated by the Generator using the Generator’s own employees a nd equipment, or as otherwise defined in 14 CCR Section 18982(a)(66)(A).
“Blue Container” has the same meaning as in 14 CCR Section 18982.2(a)(5) and sh all be used for the purpose of storage and Collection of Source Separated Recyclable Materials (SSBCOW). “Commercial Edible Food Generators” includes Tier One Commercial Edible Food Generators and Tier Two Commercial Edible Food Generators, or a s otherwise defined in 14 CCR Section 18982(a)(7). For the purposes of this definition, F ood Recovery Organizations and Food Recovery Services are not C ommercial Edible Food Generator s, or as otherwise specified by 14 CCR Section 18982(a)(7).
“Compostable Plastics” o r “Compostable Plastic” means plastic materials that meet the ASTM D6400 standard for compostab ility, or as otherwise describ ed in 14 CCR Section 18984.1(a)(1)(A) or 18984.2(a)(1)(C).

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) “Compost” has the same meaning as in 14 CCR Section 17896.2(a)(4), as ma y be amended from time to time.
“Edible Food” means food intended for human c onsumption. For t he purposes of t h i s Agreement, Edible Food is not Solid Waste if it is recovered an d not discarded. Nothing in this Agreement requires or authorizes the recovery of Edible Food th at does not meet the food safety requirements of the California Retail Food Code. If the definit ion in 14 CCR Section 18982(a)(18) for Edible Food diffe rs from this definition, the definition in 14 CCR Section 18982(a)(18) shall apply to this Agreement.
“Environmental Fee” means the fee paid by Company to the City to fund the City’s c osts of Solid Waste management and implementation of SB 1383, including education and outreach as well as monitoring, reporting and administration requirements. “Excluded Waste” means Hazardous Substance, Hazardous Waste, Infectious Waste, Designated Waste, volatile, corrosive, Medical Waste, infectiou s, regulated radioactive waste, and toxic substances or material that Facility operator(s) reas onably believe(s) would, as a result of or upon acceptance, transfer, processing, or Disposal, be a violation of local, State, or Federal law, regulation, or ordinance, i ncluding: land use restrictions or conditions, waste that cannot be Disposed of in Class III Landfills or accepted at the Facility by permit conditions, waste that in Company’s reasonable opinion woul d present a significant risk t o human health or the environment, cause a nuisance or otherwise create or expose Com pany or City to potential liability; but not including de minimis volumes or concentratio ns of waste of a type and amount normally found in Single-Family or Multi-Family Solid Waste after implementation of programs for the safe Collection, proces sing, Recycling, treatment, and Disposal of batteries and paint in compliance with Sections 41500 and 41802 of the California Public Resources Code. “Food Recovery” means actions to collect and distribute food for human consump tion which otherwise would be disposed, or as otherwise defined in 14 CCR Section 18982(a)(24). “Food Recovery Organization” means an entity that primarily engages in the collection or receipt of Edible Food from Comm ercial Edible Food Generators a nd distributes that Edible Food to the public for Food Recovery either directly or through other entities, including, but not limited to:

A. A food bank as defined in Sec tion 113783 of the Health and Safety Code; B. A nonprofit charitable organization as defined in Section 11 3841 of the Health and Safety code; and,
C. A nonprofit charitable tempor ary food facility as defined in Section 113842 of the Health and Safety Code.

If the definition in 14 CCR Section 18982(a)(25) for Food Recov ery Organization differs from this definition, the definition in 14 CCR Section 18982(a)(25) shall apply to this Agreement. “Food Recovery Service” means a Person or entity that collects and transports Edible F ood from a Commercial Edible Food Generator to a Food Recovery Orga nization or other entities for Food Recovery; or as otherwise defined in 14 CCR Section 18982(a)(26).

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) “Food Scraps” means all food such as, but not limited to, fruits, vegetables , meat, poultry, seafood, shellfish, bones, rice, beans, pasta, bread, cheese, and eggshells. “Food-Soiled Paper” means compostable paper material that has come in contact with food or liquid, such as, but not limited to, compostable paper plates, paper coffee cups, napkins, pizza boxes, and milk cartons.
“Food Waste” means Source Separated Food Scraps, Food-Soiled Paper, and Com postable Plastics. Food Waste is a subset of SSGCOW. Edible Food separa ted for Food Recovery shall not be considered Food Waste.
“Gray Container” has the same meaning as in 14 CCR Section 18982(a)(28) and sha ll be used for the purpose of storage and Collection of Gray Container Waste.

“Gray Container Waste” means Solid Waste that is collected in a Gray Container as spe cified in 14 CCR Sections 18984.1(a) and (b), or as otherwise defined in 14 CCR Section 17402(a)(6.5). Gray Container Waste may specifically include ca rpet, Non-Compostable Paper and textiles.
“Green Container” has the same meaning as in 14 CCR Section 18982.2(a)(29) and s hall be used for the purpose of storage and collection of Source Separa ted Green Container Organic Waste (SSGCOW).

“Hauler Route(s)” means the designated itinerary or sequence of stops for each segment of the City’s collection service area, or as otherwise defined in 14 CCR Section 18982(a)(31.5). “Large Event” means an event, including, but not limited to, a sporting even t or a flea market, that charges an admission price, or is operated by a local agen cy, and serves an average of more than 2,000 individuals per day of operation of the event, at a location that includes, but is not limited to, a public, nonprofit, or privately owned park, parking lot, golf course, street system, or other open space when being used for an event. If the definitio n in 14 CCR Section 18982(a)(38) differs from this definition, th e definition in 14 CCR Section 18982(a)(38) shall apply to this Agreement.
“Large Venue” means a permanent venue facility that annually seats or serves an average of more than 2,000 individuals within the grounds of the facility per day of operation of the venue facility. For purposes of 14 CCR, Division 7, Chapter 12 and th is Agreement, a venue facility includes, but is not limited to, a public, nonprofit, or privat ely owned or operated stadium, amphitheater, arena, hall, amuse ment park, conference or civic center, zoo, aquarium, airport, racetrack, horse track, performi ng arts center, fairground, mus eum, theater, or other public attraction facility. For purposes of 14 CCR, Division 7, Chapte r 12 and this Agreement, a site under common ownership or control that includes more than one L arge Venue that is contiguous with other Large Venues in the site, is a single Large Venue. I f the definition in 14 CCR Section 18982(a)(39) differs from this definition, the definition in 14 CCR Section 18982(a)(39) shall apply to this Agreement.

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) “Non-Compostable Paper” includes, but is not limited t o, paper that is coated in a pla stic material that will not breakdown in the composting process, or as otherwise defined in 14 CCR Section 18982(a)(41).
“Non-Organic Recyclables” means non-putrescible and non- hazardous recyclable wastes including, but not limited to, bot tles, cans, metals, plastics, and glass, or as otherwise defined in 14 CCR Section 18982(a)(43). Non-Or ganic Recyclables are a subs et of Source Separated Recyclable Materials.
“Organic Waste” means Solid Wastes containing material originated from living organisms and their metabolic waste products including, but not limited to, f ood, yard trimmings, organic textiles and carpets, lumber, wood, paper products, printing and writing paper, manure, biosolids, digestate, and sludges, or as otherwise defined in 14 CCR Secti on 18982(a)(46). Biosolids and digestate are as defined in 14 CCR Section 18982(a)(4) and 14 C CR Section 18982(a)(16.5), respectively.
“Performance-based Compliance Approach ” means the method of complying with the SB 1383 Regulations through implementat ion of a collection system, programs, and policies in accordance with 14 CCR, Division 7, Chapter 12, Article 17, or as otherwise defined by 18982(a)(52.5), and all associated requirements.
“Prohibited Container Contaminants” means the following: (i) Discarded Materials placed in the Blue Container that are not identified as acceptable Source Separated Recyclable Materials for the Blue Container; (ii) Disc arded Materials placed in the Green Container that are not identified as acceptable SSGCOW fo r the Green Container; (iii) Discarded Materials placed in the Gray Container that are acceptable Source Separated Recycla ble Materials and/or SSGCOW to be placed in the Green Contai ner and/or Blue Container; and (iv) Excluded Waste placed in any Container.
“SB 1383 Regulations” or “SB 1383 Regulatory” refers to the Short-Lived Climate Pollutants (SLCP): Organic Waste Reductions regulations developed by CalRe cycle and adopted in 2020 that created Chapter 12 of 14 CCR, Division 7 and amended porti ons of regulations of 14 CCR and 27 CCR.
“Source Separated” m e a n s m a t e r i a l s , i n c l u d i n g c o mmingled Recyclable materials, th at have been separated or kept separate from the Solid Waste stream, at the point of generation, for the purpose of additional sorting or p r o c e s s i n g t h o s e m a t e r i a l s f o r Recycling or reuse in order to return them to the economic mainstream in the form of raw mater ial for new, reused, or reconstituted products which meet the quality standards necessa ry to be used in the marketplace, or as otherwise defined in 14 CCR Section 17402.5(b)(4).

“Source Separated Blue Container Organic Waste” or “SSBCOW” means Source Separated Organic Wastes that can be placed in a Blue Container that is limited t o the collection of those Organic Wastes and Non-Organic Recyclables as defined in Section 18982(a)(43), or as otherwise defined by Section 17402(a)(18.7).

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) “Source Separated Green Container Organic Waste” o r “SSGCOW” means Source Separated Organic Waste that can be placed in a Green Container that is specifically intended for the separate collection of Organ ic Waste by the generator, excl uding Source Separated Blue Container Organic Waste, carpets, Non-Compostable Paper, and textiles. “Source Separated Recyclable Materials” means Source Separated Non-Organic Recyclables and SSBCOW.
“Standard Compliance Approach ” means the method for complying with the SB 1383 Regulations through implementation of a collection system pursu ant to 14 CCR, Division 7, Chapter 12, Article 3, and all associated program and policy requirements. “Tier One Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Supermarket.

B. Grocery Store with a total fac ility size equal to or greater than 10,000 square feet.

C. Food Service Provider.

D. Food Distributor.

E. Wholesale Food Vendor.

If the definition in 14 CCR Section 18982(a)(73) of Tier One Co mmercial Edible Food Generator differs from this definition, the definition in 14 CC R Section 18982(a)(73) shall apply to this Agreement.
“Tier Two Commercial Edible Food Generator” means a Commercial Edible Food Generator that is one of the following, each as defined in 14 CCR Section 18982:

A. Restaurant with 250 or more se ats, or a total facility size equal to or greater than 5,000 square feet.

B. Hotel with an on-site food f acility and 200 or more rooms.

C. Health facility with an on- site food facility and 100 or more beds.

D. Large Venue.

E. Large Event.

F. A State agency with a cafeter ia with 250 or more seats or total cafeteria facility size equal to or greater than 5,000 square feet.

G. A local education agency with an on-site food facility.

If the definition in 14 CCR Section 18982(a)(74) of Tier Two Co mmercial Edible Food Generator differs from this definition, the definition in 14 CC R Section 18982(a)(74) shall apply to this Agreement.

2. GENERATOR WAIVER PROGRAM COORDINATION.

Section 2.14 “Generator Waiver Program” is added to the Agreement as follows:

In accordance with SB 1383 regula tions and the City’s Municipal C o d e , t h e C i t y m a y grant waivers (de minimis, physical space or Collection frequen cy) to Generators that impact the

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) scope of Company’s provision of service for those Customers. Waivers issued shall be subject to compliance with SB 1383 regulatory requirements, pursuant to 14 CCR Section 18984.11, and the City’s Municipal Code. If u sing a Performance-based Compliance Approach, the City agrees it will only grant waivers if at least ninety percent (90%) of Single-Family Generators and ninety percent (90%) of Commercial Generators (including Multi-Family Generators) participate in the three-Container Collection program . Company agrees to coordinat e and cooperate with the City to meet in connection with its waiver program, as required by SB 1383 regulations.

3. AMENDMENT TO SECTIONS 4.5.5 AND 4.6.6. Sections 4.5.5 and 4.6.6 of the Agreement is deleted in its entirety and the following is substituted in its stead:

THREE-CONTAINER SYSTEM.

General . Company shall provide a three -Container Collection program fo r the separate Collection of Source Sepa rated Recyclable Materials, S SGCOW, and Gray Container Waste as specified in this Agreement, using Containers that comply with the requirements of this Agreement and SB 1383 regulations. Company shall not knowingly Collect Blue, Green, or Gray Containers that include Prohibited Container Contaminants.

Source Separated Recyclable Materials Collection (Blue Container). Company shall provide Blue Containers to Custom ers for Collection of Source S eparated Recyclable Materials and shall provide Source Separat ed Recyclable Materials Collect ion service, Company shall Transport the Source Separated Recyclable Materials to Facility that recovers the materials designated for Collection in the Blue Containers, in accordance with SB 1383 regulations.

Source Separated Recyclable Materials that are to be accepted f or Collection in the Source Separated Recyclable Mater ials Collection program includ e the following: (i) Non- Organic Recyclables such as: aluminum, glass bottles and jars, rigid plastics (marked # 1 through # 7), and tin and bi-metal cans; and (ii) SSBCOW such as: paper products, printing and writing paper.

SSGCOW Collection (Green Container). Company shall provide Green Containers to Customers for Collection of SSGCO W and shall provide SSGCOW Col lection service.

Company shall Transport the SSGCOW to a Facility in accordance with SB 1383 regulations.

SSGCOW that are to be accepted for Collection in the SSGCOW Col lection program include the following: Food Scraps ; Food-Soiled Paper; yard tri mmings, which are defined below; and wood and dry lumber. Carpets, non-Compostable Paper, textiles, and Prohibited Container Contaminants shall not be Collected in the Green Cont ainers. Yard trimmings that are to be accepted for Collection in the SSGCOW Collection program include the following: green trimmings, grass, weeds, flowers, leaves, prunings, branches, dead plants, brush, tree trimmings, dead trees weighing no more than 50 lbs., and other types of SS GCOW resulting from normal yard and landscaping installation, maintenance, or removal, provided all SSGCOW fits inside the Green Container with the lid closed and does not exceed 150 pounds.

Company may Collect compliant C ompostable Plastics, as defined, in the Green Containers for processing. Company shall provide written notifi cation to the City that the Facility can or cannot Process and recover these Compostable Pl astics in accordance with SB

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) 1383 regulations. If the Facility can process and recover Compo stable Plastics, and Company elects to Collect Compostable Pl astics in the Green Container, then Company shall provide written notification to the City that the Facility has and will continue to have the capabilities to Process and recover the Composta ble Plastics. If the Facility c annot process and recover Compostable Plastics, then Comp any will notify City and not Col lect Compostable Plastics in the Green Container.

Gray Container Waste Collection. Company shall provide Gray Containers to Customers for Collection of Gray Container Waste, and shall pro vide Gray Container Waste Collection service. Company shall Transport the Gray Container Waste to a Facility that processes waste, in accordance with the SB 1383 regulations. Co mpany may allow carpets, Non- Compostable Paper, and textiles to be placed in the Gray Contai ners. Prohibited Container Contaminants shall not be Collected in the Gray Containers.

USE OF PLASTIC BAGS FOR SSGCOW COLLECTION.

Company may require Customers and Generators to place Food Wast e in plastic bags or other paper wrappings and put the bagged or wrapped Food Waste in the Green Container.

Company shall provide written not ification to the City that all owing the use of bags does not inhibit the ability of the City to comply with SB 1383 regulati ons, and that the Facility can Process and remove plastic bags when it recovers SSGCOW. Compan y shall provide written notification to the City should the Facility no longer have the capabilities to Process and remove plastic bags when it recovers SSGCOW.

CONTAMINATION MONITORING.

Upon finding Prohibited Container Contaminants in a Container, Company shall follow the protocols set forth in this Section.

A. Actions upon Identification of Prohibited Container Contaminants.

1. Record Keeping. The driver or other Company representative shall record each event of identification of P rohibited Container Contaminan ts in a written log or in the on-board computer system inc luding date, time, Customer’s a ddress, type of Container (Blue, Green, or Gray Container); and maintain photog raphic evidence, if required.

2. Courtesy Pick-Up Notices. Upon identification of Prohibited Container Contaminants in a Customer’s C ontainer, Company shall provide t he Customer a courtesy pick-up notice either b y putting a tag on the Customer s containers or a documented phone conversation. The courtesy pick-up notificatio n (tag or documented conversation) shall: (i) inform the Customer of the observed pr esence of Prohibited Container Contaminants; (ii) inc lude the date and time the Proh ibited Container Contaminants were observed; (ii i) include information on the Cu stomer’s requirement to properly separate materials int o the appropriate Containers, an d the accepted and prohibited materials for Collectio n in the Blue Container, Gree n Container, and/or Gray Container; (iv) inform the Customer of the courtesy pick-up of the contaminated materials on this occasion with information that following thre e instances of Prohibited

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Container Contaminants within a six-month time period, Company may assess contamination processing fees; and, (v) may include photographi c evidence. Company shall either leave the courtesy pick-up notice attached to or a dhered to the Generators’ contaminated Containers or docum ent a conversation Contractor h ad with the Customer regarding Prohibited Containers Contaminants found as required above. Contractor may also leave the tag at the Premises’ door or gate; or may delive r the notice by mail, e-mail, text message, or other electronic message.

3. Notice of Assessment of Contamination Processing Fees . If the Company observes Prohibited Contai ner Contaminants in a Generat or’s Container on more than three consecutive occasions within a six-month time p eriod, and issued courtesy pick-up notices on each of those occasions, the Compan y may impose a contamination processing fee of $15 for residential customers a nd $75 for commercial customers. Company shall notify the City in its quarterly repor t of Customers for which contamination processing fees were assessed. The contamination processing fee notice shall describe the specific mate rial(s) of issue, explain how t o correct future set outs, and indicate that the Customer will be charged a contamination processing fee on its next bill.

B. Disposal of Contaminated Materials. If the Company observes Prohibited Container Contaminants in a Generator’s Container(s), Company may Dispose of the Container’s contents, provided Company complies with the noticing requirements in subsection A above.

ROUTE REVIEWS AND WASTE EVALUATIONS.

Company shall meet its SB 1383 Regulations contamination monito ring requirements using either Route Reviews or Was te Evaluations; provided however, that if Company complies with SB 1383 Regulations using a Performance-based Compliance A pproach, it shall monitor containers using waste evaluations, as outlined herein:

A. Route Reviews

1. If Company elects to perform Route Reviews, Company shall, at i ts sole expense, conduct Hauler Route re views for Prohibited Container Contaminants in Collection Containers in a manner that is deemed safe by the Co mpany; is approved by the City; is conducted in a manne r that results in all Hauler R outes being reviewed annually, and is consistent and in accordance with SB 1383 Regu lations. Containers may be randomly selected along the Ha uler Route. This Section shoul d not be construed to require that every container on a Hauler Route must be sampled annually.

2. Upon finding Prohibited Container Contaminants in the Container , Company shall follow the contamination monitoring noticing procedures herein.

B. Waste Evaluations
Alternatively, if Company elects to perform Waste Evaluations, Company shall, at its sole expense, conduct waste eval uations that comply with and me et the requirements of 14 CCR Section 18984.5(c). The City maint ains the right to observe, or hire a third party to observe, the waste evaluations.

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1. Sampling Method, Study Protocols. The Company shall conduct waste evaluations for Prohibited Contai ner Contaminants by sampling t he contents of Containers on Hauler Routes in the following manner:
a. If using a Standard Compliance Approach, Company shall conduct waste evaluations at least twice per year and in two distinct seasons of the year in a manner that complies with the requirements of 14 CCR section 18984.5(c). If using a Performance- based Compliance Approach, Company shall conduct waste evaluations at least twice per year for the Blue and Green Containers and at least once per qu arter for the Gray Containers.
b. The Company’s waste evaluations shall include samples of Source Separated Recyclable Materials, SSGCOW, and Gray Container Waste. c. The waste evaluations shall i nclude samples from each Contai ner type served by the Company and shall include samples taken from diff erent areas in the City that are representative of the City’s waste stream.
d. The waste evaluations shall i nclude at least the minimum num ber of samples specified in SB 1383 Regulations.
e. The Company shall Transport all of the material Collected fo r sampling to a sorting area at a permitted solid waste Facility where the pr esence of Prohibited Container Contaminants for each Container type shall be measure d to determine the ratio of Prohibited Container Contamin ants present in each material s tream by weight. To determine the ratio of Prohibited Container Contaminants, the C ompany shall use the following protocol:
i. The Company shall take one sample of at least a 200 pounds from the material Collected from each material stream for sampling. ii. The 200-pound sample shall be randomly selected from diff erent areas of the pile of Collected material for that material stream. iii. For each 200-pound sample, the Company shall remove any Prohibited Container Contaminants and determine the weight of P rohibited Container Contaminants.
iv. The Company shall determine the ratio of Prohibited Conta iner Contaminants in the sample by dividing the total weight of Proh ibited Container Contaminants by the total weight of the sample.

2. Contamination Response . If the sampled weight of Prohibited Container Contaminants exceeds twenty-five percent (25%) of the measured sample for any material stream, the Company shall:
a. If using a Performance-based Compliance Approach, notify t he City within [fifteen (15)] working days of the waste evaluation.

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) b. Within fifteen (15)] working days of the waste evaluation, notify all Generators on the sampled Hauler Route of their requirement to properly separate materials into the appropriate C ontainers. The Company may prov ide this information by placing a written notice on the Generators’ Containers or th e gate or door of the Premises; and/or by mail, email, or electronic message to the Generators. c. If using a Performance-based Compliance Approach, Company shall allow a representative of the City and/or CalRecycle to oversee its next scheduled quarterly sampling of the Gray Containers, upon request.

3. Material Exceptions. Organic Waste that is textiles, carpet, hazardous wood waste, human waste, pet waste, or material subject to a quarant ine on movement issued by a County agricultural commissioner is not required to be measured as Organic Waste when calculating the amount of Organic Waste present in the Gray Container Waste.

C. Recordkeeping Requirements . Company shall maintain all applicable records required under SB 1383 Regulations, and report to the City on a monthly basis on contamination monitoring activities, route reviews and/or waste evaluations, and actions taken.

D. Alternative Methods . Nothing in this section shall prohibit Company from meeting its compliance requireme nts by any alternative methods or procedures, provided it complies with SB 1383, the SB 1383 Regulations, and/or any othe r applicable law, as may be amended from time to time.

4. INSPECTION AND ENFORCEMENT.

Section 4.7.14 “Inspection and Enforcement” is added to the Agreement as follows:

No later than November 1, 2022, Company shall assist the City w ith and/or conduct applicable inspections and enforcement, to the extent delegable , as required by SB 1383 Regulations.

Company shall maintain all applicable records from inspection i n accordance with SB 1383 regulations.

5. PROVISION FOR RECOVERED ORGANIC WASTE PRODUCT.

Section 4.7.15 “Inspection and Enforcement” is added to the Agreement as follows:

Company agrees to coordinate a nd cooperate with the City to mee t its Organic Waste produce procurement target, as required by SB 1383 regulations.

6. CONTAINER REQUIREMENTS.

Section 4.8.3.1.6 “Container Requirements” is added to the Agreement as follows:

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) Company shall use the Company-pr ovided Collection Containers th a t a r e c u r r e n t l y l o c a t e d a t C u s t o m e r s ’ P r e m i s e s o r p r o v i d e C u s t o m e r s w i t h C o l l e ction Containers from Company’s current inventory.

No later than January 1, 2036, Co mpany shall provide all Custom ers with Collection Containers that comply with the C ontainer color requirements sp ecified in this Agreement or as otherwise specified in the SB 1383 regulations. Notwithstanding this Section, the Company is not required to replace functional Containers, including Containers purchased prior to January 1, 2022, that do not comply with the color requirements of this Ag reement prior to the end of the useful life of those Containers, or prior to January 1, 2036, whichever comes first.

7. LABELING REQUIREMENTS
Section 4.8.3.1.7 “Container Requirements” is added to the Agreement as follows:

Beginning January 1, 2022 (or if using the Performance-based Compliance Approach), then until color compliant conta iners are provided, Company sha ll place a label on the body or lid of each new Container that has been provided to a Customer that includes language or graphic images, or both, that indicate th e primary materials accepted a nd the primary materials prohibited in that Container. Lab els shall clearly indicate ite ms that are Prohibited Container Contaminants for each Container.

8. COMPLAINTS.

The following provision is added to Section 5.2.2:

Investigation of SB 1383 Regulator y Non-Compliance Complaints. Company shall commence an investiga tion, within thirty (30) days of receiving a Complaint in the following circumstances: (i) upon Contractor receipt of a Complaint that a Customer may not be compliant with SB 1383 Regulations and if City determines that the allega tions against the Customer, if true, would constitute a viola tion of SB 1383 Regulations; and, (ii) upon City request to investigate a Complaint received by the City, in which the City determines that the allegations against the Customer, if true, would constitute a violation of SB 1383 Regulations. Company is required to investigate Complaints against Customers and Custom e r s , b u t n o t a g a i n s t F o o d Recovery Organizations, or Food Recovery Services.

Company shall investigate the Complaint using one or more of the methods:

1. Reviewing the Service Level of the Customer that may not be com pliant with SB 1383 Regulations.

2. Reviewing the waiver list to determine if the Customer has a va lid de minimis or physical space constraint.

3. Reviewing the Self-Haul registration list to determine if the C ustomer has registered and reviewing the Customer’s reported Self-Haul information;

4. Inspecting Premises of the Customer identified by the complaina nt, if warranted;

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) and/or,

5. Contacting the Customer to gather more information, if warranted.

Within ten (10) working/calendar days of completing an investig ation of an SB 1383 Regulatory non-compliance Complain t, Company shall submit an in vestigation Complaint report that documents the investigation performed and recommends to the City on whether or not the Customer investigated is in violatio n of SB 1383 Regulations based on the Contractor’s invest igation. The City Manager or hi s or her delegate shall make a final determination of the allegations against the Customer.

9. EDUCATION AND OUTREACH.

Section 5.3.5 “SB 1383 Education and Outreach” is added to the Agreement as follows:

A. Company shall create all appl icable education materials and conduct all education programs and activities as provi ded by and in accordance with t he SB 1383 regulations.

Company shall cooperate and coordinate with the City on public education activities.

B. On or before October 1, 2022, the Company shall develop a li st of Food Recovery Organizations and Food Recovery S e r v i c e s o p e r a t i n g w i t h i n t h e City, maintain the list on the Company’s City-specific website, share the list with the City i f the City wants to post the list on additional City websites, and update the list annually. The lis t shall include, at a minimum, the following information about each Food Recovery Organization and each Food Recovery Service:

1. Name and physical address;

2. Contact information;

3. Collection service area; and,

4. An indication of types of Edible Food the Food Recovery Ser vice or Food Recovery Organization can accept for Food Recovery.

C. At least annually, the Compa ny shall provide Commercial Edib le Food Generators with the following information:

1. Information about the City’ s Edible Food Recovery program;

2. Information about the Commercial Edible Food Generator requi rements under 14 CCR, Division 7, Chapter 12, Article 10;

3. Information about Food Recovery Organizations and Food Recov ery Services operating within the City, and where a list of those F ood Recovery Organizations and Food Recovery Services can be found; and,

4. Information about actions tha t Commercial Edible Food Genera tors can

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) take to prevent the creation of Food Waste.

D. The Company may provide the information required above by in cluding it with regularly scheduled notices, education materials, billing inser ts, or other information disseminated to Commercial Businesses.

E. Company shall comply with all applicable public education and o utreach record keeping and reporting requirements as provided by SB 1383.

10. DISPOSAL AND RECYCLING PROCESSING CHARGES.

The following provision is added to Section 6.4 of the Agreement:

In April of each year, the Company shall submit to City the fol lowing: (1) the amount of the Gate Rate charged for the immediately preceding fiscal year ; and (2) a statement of the Gate Rate actually paid in the immediately preceding fiscal year for refuse disposal and Organic processing. Contractor shall subm it any additional documentatio n, financial records, accounts payable and receivable records, weight tickets and other inform ation requested by City, its agents, auditor, or financial consultants for the purpose of ve rifying the charged and actual Gate Rate paid by Contractor for the prior fiscal year. The differen ce (whether positive or negative) between the amount in Gate Rates charged in the prior fiscal ye ar, and the amount actually paid during that same fiscal year shall be taken into account as a s eparate cost or revenue line by City in setting Collection rates for the following fiscal year.

11. RECORDKEEPING AND REPORTING.

The following provision is added to Section 8.2.1 of the Agreement:

Company shall maintain all applicable records and assist the Ci ty in meeting all applicable reporting as required by the SB 1383 Regulations. Contractor shall allow City to audit and inspect such records and reports upon reasonable request.

12. EXHIBIT 1.

Exhibit 1 is hereby amended as attached hereto to reflect rates for the new SB 1383 services and programs.

13. OTHER TERMS AND CONDITIONS UNCHANGED.

Except as expressly amended by the Amendment, all other terms a nd conditions of the Agreement shall remain unchanged. In the event of any conflict b e t w e e n t h e t e r m s a n d conditions of this Amendment and the terms and conditions of th e Agreement and/or any previous amendment thereto, the terms and conditions of this Am endment shall prevail and control.

14. COUNTERPARTS.

This Agreement may be executed in one or more counterparts, eac h of which shall be

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services) deemed an original. All counterpa rts shall be construed togethe r and shall constitute one agreement.

IN WITNESS WHEREOF, the City and Company have executed this Agreement as of the day and year first above written.

CITY OF CATHEDRAL CITY

ATTEST: By: __________________________________

CITY CLERK MAYOR, CITY OF CATHEDRAL
CITY

APPROVED AS TO FORM:

CITY ATTORNEY

BURRTECT WASTE AND RECYCLING SERVICES, LLC

By:

Name: Cole Burr, President

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Attachment: DRAFT Cathedral City First Amendment to AR Agreement (3215 : Rate Increase on Commercial, Residential and Roll-Off Services)

Cathedral City City CouncilMay 11, 2022

Cathedral City City Council
May 11, 2022