CITY COUNCIL
MINUTES
Study Session
Wednesday, November 30, 2022
3:00 PM
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
• CALL TO ORDER
The meeting was called to order at 3:00 PM by Mayor Ernesto Gutierrez. • ROLL CALL
Attendee Name Title Status Arrived
Ernesto Gutierrez Mayor Present 3:00 PM
Rita Lamb Mayor Pro Tem Present 3:00 PM
Mark Carnevale Councilmember Present 3:00 PM
Nancy Ross Councilmember Present 3:00 PM
Raymond Gregory Councilmember Present 3:00 PM
• AGENDA FINALIZATION
City Manager Charles McClendon announced that item 1A. Conference with Labor Negotiator Pursuant to Government Code Section 54956.6, would be pulled from the agenda.
1. CLOSED SESSION
A. Conference with Labor Negotiator Pursuant to Government Code Section 54956.6
Agency Negotiator: Charles McClendon, City Manager
Represented Employees:
AFSCME - American Federation of State, County and Municipal Employees
This item was pulled from the agenda.
2. PUBLIC COMMENT
There were no members of the public that wished to speak.
3. STUDY SESSION
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A. Presentation - Update on the Coachella Valley Rail Project Recommendation: This is a presentation only. There is no formal action required.
Aaron Hake, Deputy Exec utive Director for Riverside County Tr ansportation Commission, provided an update on the Coachella Valley Rail Project. The following points were presented:
• Overview of the Project
• Purpose and Process
• Status of the Project
• Tier 2 EIS/EIR Overview
• Continued Outreach
• Next Steps
This item was for discussion and information only, there was no formal action taken by the City Council.
B. Agua Caliente Tribal Food and Beverage Sales Tax Agreement Recommendation: This item is presented for information, discussion and direction only.
Robert Tucker, Agua Caliente Band of Cahuilla Indians, provided an overview on the Agua Caliente Tribal Food and Beverage Sales Tax Agreement. The following points were presented:
• CDTFA Regulations 1616
• ACBCI Food and Beverage Sales Tax Facts
• City Allocation
This item for was discussion and information only, there was no formal action taken by the City Council.
C. FY 2022/2023 CDBG Sidewalk Repair Assistance Program Recommendation: Staff will be presenting Cathedral City's FY 2022-2023 Community Development Block Grant (CDBG) Sidewalk
Repair Assistance Program for City Council review,
discussion, and direction.
Armando Baldizzone, City Engineer, provided an overview on the CDBG Sidewalk Repair Assistance Program. The following points were presented:
• Background of the Program
• Sidewalk Code Violation Examples
• Program
• HUD LMI by Census Block Group Map 2022
• Identification
• Program Eligibility Requirements
• Program Documents
• Program Flow Chart
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• Fiscal Impact
• Proposed Future Item on Corner Ramps
This item was for discussion and information only, there was no formal action taken by the City Council.
The City Council recessed at 4:04 p.m.
The City Council reconvened at 4:09 p.m.
D. Cannabis Task Force Update
Recommendation: This item is presented for information, discussion and direction only.
City Manager Charles McClendon provided a Cannabis Task Force update. The following points were presented:
• Total Cannabis Taxes
• Retail Cannabis Taxes
• Coachella Valley Retail Tax Rates
• Coachella Valley Cultivation Tax Rates
• Coachella Valley Manufacturing Tax Rates
• Task Force Discussion
• Recommendations
Kenneth Churchill, West Coast Cannabis Club, provided information on the tax structure of other c ities in California. He urged the Cit y Council to reduce retail cannabis taxes.
Jocelyn Kane CVCAN, urged the City Council to reduce cannabis taxes.
Paula Turner discussed cultivation tax and how other cities tax those facilities.
She urged the City Council to reduce cannabis taxes.
Robert Lowe, Greenscape , expressed his concern about the cannabis industry and urged City Council to reduce cannabis taxes.
Jeremy Goodlander, Atomic Budz, expressed his concern with potentially losing his employment as a cannabis worker and urged the City Council to help.
Lisa Goldfine, Double Eye Dispensary , expressed her concern with the current tax rate and urged the City Council to reduce retail cannabis taxes.
John Ramistella, Desert Kush, has not made a dollar with his business and urged the City Council to take that into consideration.
Mayor Ernesto Gutierrez expresses the importance of the City’s budget and resources. He also expressed his support of a tax reduction in a balanced way that the City’s budget c an accommodate. He also feels the Cou ncil should act sooner than later.
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Councilmember Mark Carnevale expressed support of the Task Force’s recommendation and feels the Council should act now. He urged the businesses to do their part to revamp their businesses during these challenging times, as it is not the City’s job to make sure their businesses are a success.
Councilmember Raymond Gregory expressed the importance of recognizing that the voters were promised a public benefit with regards to cannabis in the City. He expressed his concern a nd that he may be willing to support reduced rates that will be in the best interest of the City and the residents, while remaining competitive with the rest of the Valley . He also feels it is premature to act now and suggests monitoring the situation.
Councilmember Nancy Ross expressed the need for a better understanding of the whole picture and how a reduction will affect businesses and the City, in order for her to make an educated decision , however, she would suppor t her fellow Councilmembers if they c hose to move forward with a tax reduction at this time.
Mayor Pro Tem Rita Lamb stated that she has looked at the data and knows the businesses are hurting. She feels there are other factors also contributing to the issue, however, she does not want to l ose this industry. She suggested staff analyze further to provide the Council with options on how to best move forward.
It was the consensus of the City Council to direct staff to work with industry members and staff to evaluate how a tax reduction would affect their bottom line, and how it would affect the City’s budget.
ADJOURN
Mayor Ernesto Gutierrez adjourned the Study Session meeting at 5:22 p.m.
Mayor, City of Cathedral City City Clerk, City of Cathedral City