CITY COUNCIL
AGENDA
Study Session 3:00 p.m.
Regular Meeting 5:30 p.m.
Wednesday, April 23, 2025
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
MAYOR
Nancy Ross
CITY COUNCIL MEMBERS
Mayor Pro Tem
Raymond Gregory
Councilmember
Rita Lamb
Councilmember
Ernesto Gutierrez
Councilmember
Mark Carnevale
STUDY SESSION 3:00PM
Normally no action is taken on Study Session Items, however, the City Council reserves the right to give specific policy direction and take specific action as necessary.
Presentations will be limited to 10 minutes unless other provisions are made in advance.
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. PUBLIC COMMENTS
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 2 comment or may request a matter be agendized for a future meeting. Public Comment will be limited to three (3) minutes.
2. CLOSED SESSION
There are no Closed Session Items.
3. STUDY SESSION
A. FY 2025/2026 and FY 2026/2027 Biennial Budget Presentation for Special Revenue Funds, Proprietary Funds, and Capital Improvement Projects (CIP) Plan and Parks Improvement Program Plan
Recommendation: This item is presented for information and discussion only.
RECESS
REGULAR MEETING - 5:30 PM
CALL TO ORDER
PLEDGE OF ALLEGIANCE
INVOCATION (MOMENT OF REFLECTION)
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. AGENDA ITEM
A. Cannabis Moratorium Update
Recommendation: This item is for discussion purposes to serve as an update on the cannabis moratorium. No action is requested.
2. PUBLIC COMMENTS
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. Public Comment will be limited to three (3) minutes.
3. COUNCIL REPORTS
This is an opportunity for each member of the City Council to report on any conferences they attend, local events or make any other comments they may have.
4. CONSENT AGENDA
The following Consent Calendar items are expected to be routine and noncontroversial. They will be acted upon by the City Council at one time without 3 discussion. Any Council Member, Staff Member, or Citizen may request removal of an item from the Consent Calendar for discussion.
A. Waive Full Reading of Ordinances on Agenda
Recommendation: Waive Full Reading of Ordinances on the Agenda.
B. Approval of the April 9, 2025, Study Session and Regular City Council Meeting Minutes and the April 16, 2025, Special City Council Meeting Minutes
Recommendation: Approval of the April 9, 2025, Study Session and Regular City Council Meeting Minutes and the April 16, 2025, Special City Council Meeting Minutes.
C. Demand Register - March
Recommendation: Receive and File.
D. CCPFA/CCFMA Side Letters to Update Language for CalPERS Compliance
Recommendation: To authorize the City Manager to execute side letters with the Cathedral City Fire Management Association (CCFMA), and Cathedral City Professional Firefighters Association (CCPFA) to update their respective Memoranda of Understanding (MOUs) to ensure compliance with CalPERS reporting requirements for special compensation.
E. Notice of Completion for the Cove Crack Repair Project (CIP No. C08675) Recommendation: To accept and approve the Cove Crack Repair Project (C08675) as final, authorize the City Manager to file a notice of completion with the Riverside County Recorder’s Office, and authorize the release of retention funds to LCR Earthwork and Engineering, Corp. upon expiration of the notice of completion.
F. Ratify the nomination of Patrick Evan Iachetta (Patrick Evans) by Mayor Nancy Ross to serve on the Historic Preservation Committee and appoint him to fill an unexpired term continuing through June 30, 2026.
Recommendation: Ratify the nomination of Patrick Evan Iachetta (Patrick Evans) by Mayor Nancy Ross to serve on the Historic Preservation Committee and appoint him to fill an unexpired term continuing through June 30, 2026.
5. PUBLIC HEARINGS
A. Assembly Bill 2561 - Public Hearing on City Vacancies and Recruitment and Retention Efforts
Recommendation: To hold a public hearing and receive and file this report.
B. Approve the FY 2025-2026 Community Development Block Grant Annual Action Plan
Recommendation: To approve the FY 2025-2026 Community Development Block Grant (CDBG) Annual Action Plan (AAP) for submittal to the U.S.
Department of Housing and Urban Development (HUD); and authorize the City 4 Manager or designee to execute the required certifications; and execute all funding agreements and documents consistent with the FY 2025-2026 AAP.
C. Adopt by Resolution City User and Regulatory Fee Schedule Recommendation: To conduct a public hearing and adopt by resolution the update to the City’s master schedule of user and regulatory fees.
D. Adopt by Resolution AB 1600 Development Impact Fee (DIF) Annual Update
Recommendation: To conduct a public hearing and adopt by resolution an authorized inflationary adjustment to the City’s Assembly Bill (AB) 1600 Development Impact Fees.
6. LEGISLATIVE ACTIONS
A. Award Contracts to SoundSkilz, Hocker Productions, and Montage Agency to produce the Taste of Jalisco Festival, State of the City and Cathedral City LGBT+ Days
Recommendation: To award contracts to the following vendors and authorize the City Manager or their representative to execute all necessary documents:
-Hocker Productions for State of the City (May 2026)
-SoundSkilz for Taste of Jalisco Festival (February 2026) -Montage Agency for Cathedral City LGBT+ Days (March 2026) B. Approval of Contract for Annual Hot Air Balloon Festival Recommendation: To approve a three-year contract agreement with SoundSkilz as the selected vendor for the 2025-2027 Cathedral City International Hot Air Balloon Festival.
C. Contract Award for HSIP Cycle 9A: Traffic Signal Improvements at Twelve Intersections Project (C08752)
Recommendation: To award a construction contract to Elecnor Belco Electric, Inc. in the amount of $850,888 for the construction of Highway Safety Improvements Program (HSIP) Cycle 9A: Traffic Signal Improvements at Twelve Intersections project (C08752); and, approve a twenty-three percent (23%) contingency in the amount of $200,512 for any unforeseeable construction costs; making the total encumbrance $1,051,400; and authorize the City Manager to execute the contract documents; and authorize the City Engineer to request bonds and insurance for the project and issue the notice to proceed.
D. 2025 SB 821 Bicycle and Pedestrian Facilities Program Funding Application
Recommendation: To authorize the submittal of a 2025 SB 821, Bicycle and Pedestrian Facilities Program funding application for one (1) potential bike lane improvement project; and authorize the City Engineer to sign all applications/letters for the funding program.
E. 2025 Fire Hazard Severity Zones (FHSZ) Update
5 Recommendation: Receive and file this report on the updated 2025 Fire Hazard Severity Zones (FHSZ) issued by CAL FIRE, and direct staff to assess local implications related to zoning, building codes, defensible space requirements, and public education. Consider public outreach regarding updated hazard classifications within local responsibility areas (LRA). The State of California mandate is for the city to adopt the FHSZ Map.
7. DISCUSSION ON FUTURE AGENDA ITEMS
This is an opportunity for members of the City Council to request that, and for the City Council to discuss whether, one or more items should be added to the agenda of a future regular or special City Council meeting. To comply with the Brown Act, discussion should be limited to whether to add the item(s), and direction given to the City Manager regarding scheduling and prioritization of the item(s).
8. CLOSED SESSION
There are no Closed Session Items.
ADJOURNMENT
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.
Written Comments will be accepted until 2:00 p.m. on the day of the meeting. Written comments may be submitted via email, letter, or other forms of written communication. To email comments please email to [email protected].
Hard copies of written comments and any other document will be provided to the City Council and made available for the general public to review. All written comments received by the submission deadline will be made part of the official record. The meeting minutes will include: The name of the individual submitting the comment and a brief statement summarizing the content of the comment.
Submitted Written Comments will not be read into the record during the meeting.
Staff Report
City Council
Item No. 3.A
Meeting Date: April 23, 2025
From: Kevin Biersack, Financial Services Director
Title: FY 2025/2026 and FY 2026/2027 Biennial Budget
Presentation for Special Revenue Funds, Proprietary Funds, and Capital Improvement Projects (CIP) Plan and Parks
Improvement Program Plan
RECOMMENDATION:
This item is presented for information and discussion only.
BACKGROUND:
The City of Cathedral City is proud to participate in the Government Finance Officer Association’s (GFOA’s) Distinguished Budget Presentation Award program for the City’s Biennial Budget. Since FY 2008/2009, we have received this prestigious award for all nine (9) budget documents submitted, covering 17 years of annual budgets. The FY 2025/2026 and FY 2026/2027 Biennial Budget will be the City’s 10th submission to GFOA for this award.
Here is a review of our six-month biennial budget process:
MILESTONE COMPLETION
Workbook Preparation December and January
City Council Introduction to Budget Process January
Strategic Planning January
Department Reviews/Inputs February
Management Review/Council Budget Book March
Dept Staffing Review with Council February through April Council & Staff Discussions April
Budget Adoption May
In February, drafts of the five-year Capital Improvement Projects (CIP) Plan and Parks Improvement Program Plan were prepared and submitted to the Engineering and Public Works Department for review, discussion, and changes. A coordinated plan was agreed upon in March.
During the month of April, there are two Study Session discussions to review the budget workbooks and associated Council questions. The April 9th session was dedicated to the General Fund. The General Fund, including Measure W, is for “necessary City operations” and accounts for all financial resources except those accounted for in another fund. The April 23rd session will be devoted to the Special Revenue Funds, Proprietary Funds, the Capital Improvement Program (CIP) Plan and the Parks Improvement Program Plan.
The proposed budget will be presented at the May 14th Council Meeting. This proposed budget will include updates and changes from the two budget reviews and discussions held in April. In addition, the proposed budget will also include a separate budget for the other funds, those that do not have an ongoing operational budget. With the Council’s concurrence at the May 14th meeting, the proposed FY 2025/2026 and FY 2026/2027 Biennial Budget will be submitted to Council for final approval at the May 28th meeting.
DISCUSSION:
For the purposes of this study session discussion focusing on the Special Revenue Funds, Proprietary Funds, and Capital Improvement Project (CIP) Plan and Parks Improvement Program Plan, City staff analyzed expenditures anticipated in the forthcoming two fiscal years, along with forecasted revenues, for the funds below.
These expenditures include operations, equipment purchases, facility improvements, and depreciation expenses, among other types of expenditures.
Revenues are comprised of funds resulting from State and Federal programs, County programs, city fees, various grant programs, interest, and transfers from the General Fund, among other sources.
The proposed Biennial Budget for FY 2025/2026 and FY 2026/2027 is comprised of fifty-three (53) funds, which are included in the City’s Annual Comprehensive Financial Report (ACFR). Additionally, the City is custodian for six (6) fiduciary funds which do not require a budget. The fifty-three funds can be divided into two general categories listed below.
Operating funds, specifically these four types:
• General Fund
• Special Revenue
• Proprietary (Internal Service)
• Capital Improvement Projects (CIP) Plan
Restricted-Nondiscretionary funds, more than forty (40) funds, with purposes such as:
• Match
• Grant
• Development Impact Fee
• Assessment District
• Debt
For this session, the topics to be discussed are Special Revenue Funds with Operating Budgets, Proprietary Funds, the Capital Improvement Projects (CIP) Plan, and the Parks Improvement Program Plan. Please see the attachment for tables detailing the proposed budget items presented to Council for discussion.
Special Revenue Funds with Operating Budgets
• Public, Education and Government (PEG) – Table1
• Gas Tax – Table 2
• Measure A – Table 3
• Solid Waste – Tables 4a and 4b
• Housing Successor – Tablet 5
Proprietary Funds
• Proprietary Funds (Internal Service) Cash Balance – Table 6 • Equipment Replacement – Table 7
• Insurance – Table 8
• Technology (no impact) – no attachment
• Facilities – Table 9
Capital Improvement Projects (CIP) Five-Year Plan
There is $36+M in projected funding in the upcoming biennial budget, consisting of:
• CIP Projects General Fund (Fund 100, 17 total) – Table 10 • CIP Projects Measure W (Fund 151, 7 total) – Table 11 • CIP Projects Measure A (Fund 243, 19 total) – Table 12 • CIP Projects RMRA (Fund 248, Road Maintenance and Rehabilitation Account SB-1, 7 total) – Table 13
• CIP Projects Capital Projects (Fund 331, 17 total) – Tablet 14 • CIP Projects Miscellaneous (Various Funding Sources, 18 total) –Table 15 • Forecasted CIP Funding Summary – Table 16
• Unfunded CIP Projects – Table 17
Careful evaluation was given to the selection of the street reconstruction and/or rehabilitation projects during this upcoming 5-year period. This evaluation was based on street conditions, “Good” or “Poor” and available funding as explained below.
Utilizing the city’s Pavement Management Program’s (PMP) listed evaluation of each city street segment’s pavement condition index (PCI) rating, streets with lower “poor” ratings are typically given priority rating to be reconstructed.
Notwithstanding, side-by-side, within this same 5-year period and using the same data within the PMP, street sections that are newer and in “good” PCI condition were also programmed as projects to receive maintenance treatments that will prolong the life of these higher “PCI” rated “Good” streets.
Available funding is the other factor in determining which street projects are selected for the 5-year CIP. Funding is from available programs as follows:
• General Fund MOE (“Maintenance of Effort”) - match obligation to receive SB 1 funding)
• Measure W
• Measure A
• SB 1, Road Maintenance and Rehabilitation Account (RMRA) • Miscellaneous, including Assessment Districts with available funding • One-time special project local, state and federal grant awards, such as:
o ATP Cycles (Active Transportation Program)
o HSIP Cycles (Highway Safety Improvement Program)
o SB 821 Cycles (Bicycle and Pedestrian facilities)
o Community Development Block Grant (CDBG)
In summary, both the above factors are weighted in order for a street project to be included in the 5-year CIP.
Parks Improvement Program Plan with $4.6+M in projected funding from the General Fund, from non-General Fund funds, and from Grant sources in the upcoming biennial budget:
• American Disabilities Act (ADA) – Table 18
o Century Park
o Dennis Keat Soccer Park
o Panorama Park
o Ocotillo Park
• Upgrades and New Features – Table 19a and 19b
o Century Park
o Downtown Dog Park
o Ocotillo Park
o Panorama Park
o Misc Plans
• Parks Improvement Program Plan – Table 20
FISCAL IMPACT:
There is no fiscal impact at this time. The full proposed budget will be presented to City Council in May for approval.
FIVE-YEAR STRATEGIC PLAN:
GOAL C – FISCAL STABILITY AND SUSTAINABILITY
Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high quality development which benefits the community. We remain financially solvent by instituting prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
1. BUDGET SUMMARY TABLES for the FY 2025/2026 and FY 2026/2027 Biennial Budget Presentation for Special Revenue Funds, Proprietary Funds, and Capital Improvement Projects (CIP) and Park Improvement Program Plan
Staff Report
City Council
Item No. 1.A
Meeting Date: April 23, 2025
From: Andrew Firestine, AICP, Director of Community and Economic Development
Title: Cannabis Moratorium Update
RECOMMENDATION:
This item is for discussion purposes to serve as an update on the cannabis moratorium. No action is requested.
BACKGROUND:
On February 26, 2025, the City Council extended the cannabis moratorium by 10 months and 15 days. Through the discussion, the City Council requested routine updates as staff conducts additional research and initiates updates to the City’s cannabis regulations and processes. The prior report focused on an evaluation of the City’s zoning, locational requirements, definitions, standards, and enforcement provisions, fines, and penalties while building out an odor control plan to implement the required conditions of approval. This report provides a synopsis of cannabis research conducted in other cities and counties and efforts to engage consultant support to set standards and to support the development of an odor control permitting process. It also provides updates on consultant support to the city specifically on C4 Industry and an odor control reporting and monitoring pilot program.
DISCUSSION:
Staff has commenced research in these areas, first by identifying all the California cities and counties that allow for cannabis cultivation in some manner, a list of 84 cities and counties, and conducted an initial review of the cannabis zoning regulations, licensing, and enforcement provisions for each of these cities and counties. This initial review was narrowed down to a smaller list of 15 cities and 3 counties that potentially offer insight into one or more of the areas of focus. A review of these city and county regulations, with an emphasis on zoning and enforcement, is summarized in the sections below with additional text contained in the attachments
Staff also initiated a records request through the Department of Cannabis Control (DCC) for the purpose of understanding how many large indoor cannabis cultivation facilities are licensed in the State of California. The DCC defines large indoor cannabis cultivation as those with more than 22,000 square feet of total canopy. For comparison, C4 Industry, the existing large cannabis cultivation facility near Date Palm Drive and Ramon Road has a gross floor area of 326,000 square feet and each of its 9 bays has a canopy area of 21,504 square feet together with an 8,760 square foot mother room, totaling over 200,000 square feet of total canopy area. While the DCC began accepting applications for large indoor cultivation licenses in 2020, there are only 6 other large indoor cultivation facilities licensed by the DCC, all of which are located in Richmond and Oakland. None of these are a good comparison to C4 Industry – most are substantially smaller in size and are older warehouses in industrial areas converted to cannabis cultivation.
The initial research of other city and county regulations, together with the additional information from the DCC, reveals that while there are some models for odor control permit processes and stronger enforcement, no city or county is at the forefront of cannabis regulation. No city or county has adopted objective cannabis odor standards and most rely on reactive and subjective odor measurements for enforcement. These preliminary findings raise the importance of the city’s existing condition of approval on cannabis conditional use permits requiring odor mitigation.
As was identified in previous staff reports, there is no separate plan or document and there are no standards or minimum requirements to demonstrate how the City’s odor mitigation requirements are to be met. Other cities and counties have established odor mitigation requirements through an odor control plan and permitting process, which is captured in the summary below. To ensure the City is setting the right standards, including the evaluation of technologies and the establishment of odor control requirements, the development of content and submittal requirements for an odor control plan, and the preparation of inspection checklists, consultant support is needed. To date, staff has met and engaged with five companies with significant experience in cannabis odor control and monitoring and has prepared a scope of work specific to the City’s needs. This scope of work was issued for informal bid on April 14 with bids requested by April 28. A summary of the expected scope of work is provided below.
Through the process of identifying prospective consultants to engage with on an update of the City’s cannabis regulations, staff identified a nationally recognized expert on soil vapor sampling, soil vapor analysis, and vapor intrusion for environmental and exploration applications who has extended his work into the cannabis industry through the monitoring of cannabis odor causing compounds by similar analysis. Dr. Blayne Hartman, with Hartman Environmental Geoscience, has analyzed cannabis odor control systems and offers the ability to provide the City a qualified opinion on the effectiveness of both the current and any additionally proposed odor mitigation at C4 Industry. The business remains responsible for designing, implementing, and maintaining their odor control solutions. Dr. Hartman’s work is to validate their effectiveness through an objective analysis and to make specific recommendations to the City. Dr. Hartman does not represent any equipment manufacturer and does not design cannabis odor control systems – he has no conflict of interest with C4 Industry or any other cannabis business operating in Cathedral City. Staff has negotiated a contract and scope of work with Dr. Hartman to evaluate the performance of the odor control systems at C4 Industry, both existing and proposed.
Finally, staff has also met with Envirosuite on several occasions. Envirosuite is a leader in environmental intelligence and offers a technology driven, real-time reporting and monitoring service that provides benefits to the City and to cannabis operators. C4 Industry has contracted with Envirosuite to implement a pilot program at their facility, a program that can potentially be expanded citywide. Under the pilot program, cannabis odor reports in the vicinity of C4 Industry would be reported through the Envirosuite platform embedded on the City’s website, collecting information on the location and strength and intensity of the odor.
Envirosuite’s monitors would also collect data on weather, volatile organic compounds (VOCs), and other compounds. All of this data would be made available to the City and the operator in real-time, which is intended to better correlate odor complaints with objective data, informing both City actions and operational changes at C4 Industry. Additional details on this pilot program and partnership are outlined below.
Cannabis Regulations
In its review of cannabis regulations from 15 cities and 3 counties, City staff evaluated seven zoning questions, including questions directed to odor mitigation and odor mitigation plans.
Staff further assessed four questions related to enforcement of odor violations. The complete data collected from this research is attached to the staff report. The zoning and enforcement research is summarized for Coachella, Palm Desert, Palm Springs, Desert Hot Springs, Oakland, and Richmond for each question below.
Zoning
1. What zoning districts are cannabis cultivation, manufacturing, and lab uses permitted?
Upon reviewing neighboring cities in the Coachella Valley such as Coachella, Palm Desert, Palm Springs, and Desert Hot Springs, as well as Oakland and Richmond, it is evident that cannabis uses such as cultivation, manufacturing, distribution, and testing labs uses are typically restricted to industrial zone districts, while dispensaries are permitted in both industrial and retail zones. Cultivation, manufacturing, distribution, and testing labs uses are generally not permitted within commercial or residential zones, reflecting a common zoning practice aimed at minimizing potential impacts on retail areas and neighborhoods.
2. What separation requirements existing between cannabis uses and either residential zones or uses and other sensitive uses? Identify both the use and the separation requirement.
The separation requirements from residential uses vary significantly. Under the California Business and Professions Code (BPC) Section 26054(b), cannabis businesses shall not be located within a 600-foot radius of a school providing K-12 instruction, a daycare center, or a youth center. Cities and counties, at a minimum, must implement this standard, although they may adopt more stringent standards, including other separation requirements.
As an illustration, Palm Springs established a 1,000-foot separation requirement between cannabis cultivation and manufacturing and a residential zoning district.
Coachella, Lancaster, and Pasadena each have a 600-foot separation requirement from commercial cannabis uses and residentially zoned property. Grover Beach requires a 100-foot setback between retailers and residential zones.
The other cities studied as part of this evaluation do not have an explicit separation from cannabis uses and residential zones or uses. Cathedral City is the only city evaluated that allows cultivation, manufacturing, and distribution in a commercial zoning district. The other cities limit those uses to industrial zones, which are generally separated from residential zones.
3. Are there separation requirements between cannabis uses? Palm Desert requires that cannabis retailers be 1,500 feet apart and similarly requires cannabis businesses within their service industrial zoning district to be separated by 1,500 feet. With some exceptions, Palm Springs requires cannabis businesses be separated by 500 feet. Among the other cities studied, Long Beach has a 1,000 foot separation requirement between dispensaries.
4. Are there limits on either the number or size of cannabis uses? A review of other city regulations shows that other cities place limits on the number of cannabis dispensaries allowed, often setting the cap between three and 10. In contrast, most do not impose limits on other types of cannabis operations, including cultivation, manufacturing, distribution, and testing laboratories. This reflects a regulatory trend aimed at controlling the retail presence of cannabis while allowing more flexibility for non-retail sectors of the industry. Santa Cruz and Moreno Valley are two cities that have additional requirements for cultivation facilities. Santa Cruz restricts indoor cultivation to a maximum of 10,000 square feet. Moreno Valley restricts the total area of the premises designated/used for the cultivation canopy to no more than 22,000 square feet, effectively prohibiting large indoor cultivation facilities, as defined by the DCC. Pasadena limits cultivation to four licensed facilities.
5. What is the definition of a nuisance cannabis odor?
Nuisance cannabis odor is not consistently defined across all city zoning codes.
However, some cities have established specific standards to address this issue. For example, the City of Palm Springs defines “Odor Detection Threshold” as the threshold for the detection of odorous contaminants when one volume of the odorous air has been diluted with seven or more volumes of odor free air as measured by any instrument, device, or any other method designated by the City.
Similarly, the City of Coachella defines "Odor Threshold Concentration" as the lowest concentration of Odorous matter that produces an olfactory response in normal human beings. Odor thresholds shall be determined in accordance with the American Society for Testing and Materials Test Method D1391-57 (reconfirmed to 1967) or in an equivalent manner acceptable to the zoning administrator.
These definitions require measurement through an olfactometer, such as the St.
Croix Sensory Nasal Ranger Field Olfactometer. The specialized device uses a combination of human nose and an instrument to detect and measure odors. While the definition has been adopted by some cities and counties, including Santa Barbara County most recently, it remains a subjective measurement and is not widely accepted as an effective way of detecting cannabis odor.
6. What are the odor mitigation requirements, either through a CUP or cannabis license? Are there specific requirements or standards for cultivation and manufacturing uses? Odor mitigation requirements are standard among the cities researched and are consistent with Cathedral City’s requirements that a business install odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business are not detected outside. The systems include an exhaust air filtration system with odor control that prevents internal odors from being emitted externally; or an air system that creates negative air pressure between the interior and exterior so that the odors generated inside the cannabis business are not detectable outside.
7. Does the city or county require an odor mitigation plan or permit? If so, who is authorized to prepare and submit it? What are the submission requirements? Does it need to be renewed annually as part of the license? Who approves it? A common requirement found in the cities researched is the requirement to develop and implement a ventilation or odor control plan. These plans are required to include detailed information about the proposed ventilation system, including technical specifications indicating that the system can prevent the release of cannabis odors into the atmosphere from the cultivation or manufacturing operation. Coachella, Desert Hot Springs, and Palm Springs all require odor control plans. These are most often prepared by a licensed mechanical engineer. While Palm Springs requires an odor control plan to be prepared as part of a conditional use permit, other cities require it as a post-entitlement permit reviewed administratively and concurrent with a building permit. Some cities, including Palm Springs, use a third-party contractor to review odor control plans. Among the other cities, Grover Beach requires odor control systems to be certified annually.
Code Enforcement
8. What constitutes an odor violation? Are there thresholds or measurements for cannabis odor, either for the concentration of odor or the time period over which it is detected?
National City, La Mesa, and Desert Hot Springs require that odor not be detectable at the property line. El Dorado County uses the St. Croix Sensory Nasal Ranger Field Olfactometer, and Santa Barbara County established a nuisance threshold relying on an olfactometer as part of its recent cannabis code updates. Desert Hot Springs reported that it discontinued its use of the Nasal Ranger.
9. When there is an odor complaint, how is it investigated? Does the cannabis business have a period of time to correct a violation before a citation or further action is taken? If so, how long?
Several cities and counties require cannabis businesses to respond to cannabis odor complaints, including Santa Barbara County, Long Beach, and Desert Hot Springs.
Palm Springs allows cannabis businesses with a compliant odor control plan seven days to correct an odor issue.
10.What are the fines for a violation of the cannabis ordinance? Are there penalties beyond fines? If so, what?
Palm Springs has an escalating enforcement process. For odor violations related to a cannabis business with a compliant odor control plan, a cannabis business is first issued a written warning and given seven days to modify their odor control plan to mitigate odor issues. If the odor cannot be mitigated within seven days, the use must cease until effective odor control measures are in place. For odor violations with a non-compliant odor control plan, the business can be subject to a $10,000 administrative violation and have 30 days to remedy the odor issue and comply with their odor control plan before they’re issued another administrative citation of $10,000.
After three administrative citations, the permit shall automatically be revoked.
Desert Hot Springs code allows fines up to $1,000 per day, although their staff indicates that they have never needed to issue this fine.
11.Are there any unique provisions, such as a hearing officer, that warrant further evaluation?
Stanislaus County established a hearing officer process to conduct administrative hearings to determine whether the conditions described in the notice of violation, administrative citation and order to abate, and notice of hearing constitute a nuisance.
The hearing officer also considers the suspension, revocation, or non-renewal of cannabis permits.
Desert Hot Springs contracts with a third-party for all cannabis ordinance enforcement. Palm Springs contracts for the review of odor control plans.
Cannabis Consultant Support
On April 14, a scope of work for consultant support related to cannabis odor control was issued to four companies. This scope of work builds on the city and county research performed by City staff and seeks specific subject matter expertise on cannabis odor control.
It divides the work into six areas:
1. Regulatory review and best practices assessment
2. Odor control technology evaluation
3. Odor control permitting process
4. Inspection and verification protocols
5. Stakeholder engagement and presentations
6. Training
The full scope of work is attached for reference. It also included a timeline prepared by City staff leading to the presentation of an ordinance to the Cannabis Task Force and Planning Commission in August 2025 and the City Council in September 2025. Staff would be responsible for preparing the ordinance, but with input from the consultant to ensure the City is setting clear and appropriate standards and that the ordinance is accompanied by checklists and supporting documentation for any new processes.
In addition to this scope of work, a contract has been executed with Hartman Environmental Geoscience, the fifth consultant staff met with, specifically for the review of the odor control systems at C4 Industry, both existing and proposed. This contract allows up to 50 hours of consultant time and accounts for two site visits. Through the scope of work, they are tasked with providing the City a qualified opinion on the effectiveness of both the current and proposed odor mitigation plans and make specific recommendations to improve the effectiveness of the existing and any additionally proposed odor mitigation. This contract is not to support C4 Industry but rather to support the City in its review and assessment of the odor problem at C4 Industry using objective analysis and data.
Envirosuite
The City’s current process to report cannabis odors is inefficient and relies upon a platform that was not designed or intended for odor reporting. While it has been used to aggregate complaints, the information reported through the platform is not shared with a cannabis business in real-time. The auto-generated responses to a reporting party when a complaint is made are the same as any other code compliance case, which sets an expectation with the reporting party that the City will respond to their complaint individually. The volume of cannabis odor complaints has precluded staff from investigating and responding to each individual complaint. When the complaints are closed out by City staff, residents feel they are being ignored as the underlying issue has not been addressed. To address this, staff created an email distribution group that it has been sending weekly updates to both in response to cannabis odor complaints at C4 Industry and with respect to the cannabis moratorium.
Through the pilot program with Envirosuite, the City has an opportunity to substantially improve cannabis odor reporting for the area around C4 Industry. This could potentially be expanded to other areas of the City, but beginning in May 2025 an online form will be made available on the City’s website similar to what has been deployed in Des Moines, IA:
https://www.dsm.city/departments/neighborhood_services/odor.php.
The form will document the time and date of the complaint, location, description, and optional contact information for follow-up. Once submitted, City code compliance staff would be notified of a new complaint. Envirosuite would validate the plausibility of the complaint based on atmospheric conditions, including wind direction and speed, and the location of the complaint. Envirosuite also collects time-aligned sensor data and meteorological data. The sensors will be monitoring VOC, H2S and NH3 and can be programmed to monitor two additional compounds as may be directed by the City and its consultants.
Validated complaints are assigned to the business operator, in this case C4 Industry, for investigation and response. While the City does not presently have a response timeline for cannabis businesses to address odor complaints, the pilot program establishes an initial response time of 30 minutes during business hours and 90 minutes after hours, which would include an acknowledgement of the complaint, time of receipt, and immediate investigative steps. Under the pilot program, C4 Industry would be required to post a detailed investigation summary within 24 hours, including on-site observations, source identification (if any), and mitigation actions. Code compliance staff would be responsible for reviewing the investigation conducted by the business in response to a complaint, including its resolution.
The City’s role in the pilot program would be to support its implementation through the City website and to maintain oversight of it for the purpose of regulatory compliance, the tracking of complaints, and community engagement. The pilot program is proposed for a period of six-months, through which Envirosuite, C4 Industry, and the City will evaluate its effectiveness. The pilot program can be extended for an additional six-months upon mutual agreement.
Beyond its application in the area around C4 Industry, City staff are exploring the potential deployment of additional Envirosuite sensors and weather stations elsewhere in the City to permit cannabis odor reporting and monitoring through the Envirosuite platform. There is no estimated cost for these additional services at this point. They will be assessed and evaluated under the cannabis moratorium.
Next Steps
Staff anticipates that it will award a professional services contract to a cannabis consultant in the beginning of May and that staff and the consultant will immediately begin to identify those best practices the City should model in its updated cannabis regulations, including any new odor control requirements. The consultant is expected to produce an odor control permitting process for the City, including submittal and inspection checklists. While a substantial amount of work remains, staff has developed a timeline that would result in the presentation of an ordinance to the Cannabis Task Force and Planning Commission in August 2025 and City Council in September 2025.
FISCAL IMPACT:
The contract with Hartman Environmental Geoscience is not to exceed $12,500 and will be accommodated within the existing budget. The scope of work for the other consultant support was issued on April 14, 2025, for an informal bid with the expectation that it will be within the city manager’s signature authority. This contract is expected to be split between two fiscal years and will be accommodated within the existing and proposed budget.
FIVE-YEAR STRATEGIC PLAN:
F-17 – Review and update, as needed, our ordinances, policies, and practices regarding cannabis.
ATTACHMENTS:
1. City and County Cannabis Analysis
2. Cannabis Consultant Support Scope of Work
CITY COUNCIL
MINUTES
Study Session 3:00 p.m.
Regular Meeting 5:30 p.m.
Wednesday, April 09, 2025
City Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
CALL TO ORDER
Mayor Nancy Ross called the Study Session portion of the meeting to order at 3:00 p.m.
ROLL CALL
Council Present:
Nancy Ross, Mayor
Raymond Gregory, Mayor Pro Tem
Ernesto Gutierrez, Councilmember
Rita Lamb, Councilmember
Mark Carnevale, Councilmember
AGENDA FINALIZATION
There were no changes to the Agenda.
1. CLOSED SESSION
City Attorney Eric Vail announced that the City Council will meet in Closed Session to discuss the following items listed on the Agenda:
A. Conference with Labor Negotiator: Pursuant to Government Code 54957.6
Labor Negotiator: Charles McClendon, City Manager and Eugenia Torres, Human Resources Manager
Employee Organization: Cathedral City Police Management Association (CCPMA)
Recommendation: There is no Staff Recommendation.
B. Conference with Legal Counsel - Anticipated Litigation/Threat of Litigation, Pursuant to Government Code Section 54956.9(d)(2).
Number of Potential Cases: Two
Recommendation: There is no Staff Recommendation.
The City Council recessed to Closed Session at 4:40 p.m.
The City Council reconvened at 5:18 p.m.
City Attorney Eric Vail reported that the City Council met in Closed Session to discuss the items listed on the Agenda, there was no reportable action.
1. PUBLIC COMMENTS
The following comment was received for the record:
David Koslow expressed his concern related to the taxing, fining, fees and spending decisions of the City Council. He requested that the City conduct a credit card audit and employ an outside consulting firm to review and report at a future meeting on the direct and indirect short-term and long-term fiscal impacts on Cathedral City. He also requests that the City Council refrain from authorizing expenditures except for essential government services.
2. STUDY SESSION
A. Fiscal Year (FY) 2025/2026 and 2026/2027 Biennial Budget General Fund Overview Discussion
Recommendation: This item is presented for information and discussion only.
Kevin Biersack, Director of Financial Services, provided the fiscal year 2025/2026 and 2026/2027 Biennial Budget General Fund overview for discussion. The following points were presented:
• Biennial Budget Process Review
• Cathedral City Budget Contents
• Revenue and Expenditure Summary
• Revenue Categories
• Where the Funds Come From
• Expenditures Categories
• Significant General Fund Items
• City Staff Compositions
• Department Summaries
• Where the Funds Go
• Fund Balance Summary
• Measure W
The following comment was received for the record:
Taryn Burns expressed her concern related to the summary of existing staffing and certain specifics of the Code Enforcement section of the staff report from the Special City Council meeting of April 2, 2025. Due to two pending cases against the City’s code enforcement practices, she requested that the Code Enforcement division refrain from any activities related to goals until the two cases have concluded. She also requested that the City Council place an item on their next agenda related to the anticipated shortfalls in city revenues and the increases in fiscal obligations.
The City Council expressed their concern with reducing their budgeted District Improvement Funds from $30,000 to $20,000. It was the consensus of the City Council for the District Improvement Funds to remain budgeted at $30,000.
The City Council asked clarifying questions, which were responded to by staff.
This item was for information and discussion only, there was no formal action taken by the City Council.
RECESS
The City Council recessed at 5:18 p.m.
REGULAR MEETING - 5:30 PM
CALL TO ORDER
Mayor Nancy Ross called the Regular Meeting to order at 5:30 p.m.
PLEDGE OF ALLEGIANCE
Councilmember Ernesto Gutierrez led the Pledge of Allegiance.
INVOCATION (MOMENT OF REFLECTION)
Mayor Pro Tem Raymond Gregory offered the Moment of Reflection.
ROLL CALL
Council Present:
Nancy Ross, Mayor
Raymond Gregory, Mayor Pro Tem
Ernesto Gutierrez, Councilmember
Rita Lamb, Councilmember
Mark Carnevale, Councilmember
AGENDA FINALIZATION
It was the consensus of the City Council to hear item 5C first under the Legislative portion of the Agenda.
1. PUBLIC COMMENTS
Greg Assaly expressed his concern related to the continuous cannabis odor and hopes the City can do something about it before next season.
Janet Ream expressed her concern related to the continuous cannabis odor and urged the City to enforce consequences on the C4 facility.
Michael Hayes thanked the City for the recent community meeting in the Cove. He expressed his concerns with continuous incidents in the Cove and the City’s bookkeeping.
Eileen Lynch, Parkinsons Resource Organization, discussed Parkinsons Awareness Month and the resources available.
Chris Mayou expressed her concern related to the cannabis odor in Outdoor Resorts.
The following comments were received for the record:
David Koslow expressed his concern related to the taxing, fining, fees and spending decisions of the City Council. He requested that the City conduct a credit card audit and employ an outside consulting firm to review and report at a future meeting the direct and indirect short-term and long-term fiscal impacts on Cathedral City. He also requests that the City Council refrain from authorizing expenditures except for essential government services.
Taryn Burns expressed her concern related to the summary of existing staffing and certain specifics of the Code Enforcement section of the staff report from the Special City Council meeting of April 2, 2025. Due to two pending cases against the City’s code enforcement practices, she requested that the Code Enforcement division refrain from any activities related to goals until the two cases have concluded. She also requested that the City Council place an item on their next agenda related to the anticipated shortfalls in city revenues and the increases in fiscal obligations.
2. COUNCIL REPORTS
Councilmember Mark Carnevale reported on the following:
• He thanked the Communications and Events Department
• The call he received from a business owner regarding US Rentals parking on the street
• His attendance at the Senior Inspiration Awards Luncheon • The last Special City Council Budget Workshop Meeting • His attendance at the Boys and Girls Club Annual Meatball Festival • He discussed the current odor mitigation measures at the C4 facility Councilmember Ernesto Gutierrez reported on the following:
• His attendance at the Cathedral City Senior Center’s Health Fair • The last Special City Council Budget Workshop Meeting • His weekly update meeting with City Manager McClendon • His attendance at the Boys and Girls Club’s Annual Meatball Festival • The calls he received related to illegal food vendors and parked vehicles • The upcoming Coachella Valley Association of Government’s Conservation Commission meeting
• The upcoming Special City Council Budget Workshop meeting • He wished everyone a happy Easter
Councilmember Rita Lamb reported on the following:
• Desert Recreation District is hiring lifeguards for the summer swim program at Cathedral City High School
• Her attendance at the Color of the Spectrum Autism Art Festival • Her attendance at the Salvation Army’s Veteran and Community Expo • She thanked the Communications and Events Department for the Tastes and Sounds series
• Her interviews for the vacant seats on the Historic Preservation Committee • She discussed Parkinsons Resource Organization’s information booth at Yoga in the Amphitheater
• The City’s shredding events
• She thanked the Police Department for traffic control at Highway 111 and Cathedral Canyon
• The Climate Action Plan designed by the City of Tempe, Arizona • The street sign topper presented to Jane Rasco
• The upcoming Riverside County State of the County 4th District Mayor Pro Tem Gregory reported on the following:
• His attendance at the Senior Inspiration Awards Luncheon • His trip to Orlando Florida for the Fire Department’s Accreditation Hearing • The last Special City Council Budget Workshop Meeting • The ribbon cutting at Angels Black Tiger Martial Arts and Fitness • His attendance at the Boys and Girls Club Annual Meatball Festival • His attendance at various ad hoc and regular committee meetings for the Coachella Valley Association of Governments
• His attendance at Tastes and Sounds
• His attendance at the Riverside County Transportation Commission meeting • He reminded everyone that it is festival season and to be cautious of traffic • He reminded everyone that it is Spring Break, be aware, drive safely and be cautious of children
Mayor Nancy Ross reported on the following:
• Her meeting with Ryan Hunt regarding State of the City • Her attendance at many meetings with the Animal Campus • Her meeting with City Manager McClendon
• The last Special City Council Budget Workshop meeting • Her participation at the FIND Food Bank Telethon
• Her attendance at the Visit Greater Palm Springs Board meeting • Her attendance at the Salvation Army’s Veteran and Community Expo • The wedding that she officiated
• Her attendance at the Color of the Spectrum Autism Art Festival • Her participation in CVEP’s Fast Pitch Event
• She is privileged to live and serve Cathedral City
• The next Tastes and Sounds
• The upcoming Senior Center’s Fundraiser “Disruptive”
3. CONSENT AGENDA
A. Waive Full Reading of Ordinances on Agenda
Recommendation: Waive Full Reading of Ordinances.
M.O. 2025-50
B. Approval of the March 26, 2025, Study Session and Regular City Council Minutes and the April 2, 2025, Special City Council Minutes.
Recommendation: Approve the Minutes of the March 26, 2025, Study Session and Regular City Council Meeting and the April 2, 2025, Special City Council Meeting Minutes.
M.O. 2025-51
C. Accept the Resignation of Ruth Fernandez from the Finance Advisory Committee and Mobile Home Fair Practices Commission.
Recommendation: accept the resignation of Ruth Fernandez from the Finance Advisory Committee and Mobile Home Fair Practices Commission effective immediately, and direct staff to proceed with filling the vacant seats.
M.O. 2025-52
D. Ratification of Council Appointments to Various Local Agencies Recommendation: To review the updated list of Local Agency Assignments and ratify the appointments.
M.O. 2025-53
A motion was made by Mayor Pro Tem Gregory and seconded by Councilmember Lamb to approve the Consent Agenda.
RESULT: PASS [5 TO 0]
MOVER: Raymond Gregory, Mayor Pro Tem
SECONDER: Rita Lamb, Councilmember
AYES: Carnevale, Ross, Gregory, Gutierrez, Lamb
NOES:
ABSENT:
ABSTAIN:
4. PUBLIC HEARINGS
There were no Public Hearings.
5. LEGISLATIVE ACTIONS
C. Preliminary Contract Award for Cathedral City International Hot Air Balloon Festival
Recommendation: To approve SoundSkilz as the selected vendor for the Cathedral City International Hot Air Balloon Festival based on the evaluation panel's scoring and recommendation.
M.O. 2025-54
A motion was made by Mayor Pro Tem Gregory and seconded by Councilmember Lamb to approve SoundSkilz as the selected vendor for the Cathedral City International Hot Air Balloon Festival based on the evaluation panel's scoring and recommendation.
RESULT: PASS [5 TO 0]
MOVER: Raymond Gregory, Mayor Pro Tem
SECONDER: Rita Lamb, Councilmember
AYES: Carnevale, Ross, Gregory, Gutierrez, Lamb
NOES:
ABSENT:
ABSTAIN:
A. AB 1600 Development Impact Fee (DIF) Annual Update
Recommendation: This items is for presentation and discussion only.
Kevin Biersack, Director of Financial Services, provided an overview of the AB 1600 Development Impact Fee (DIF) Annual update for the Council’s review.
Staff indicated that a Public Hearing will be held at a subsequent Council Meeting to formally adopt the AB 1600 Development Impact Fee Annual Update by Resolution.
The City Council asked clarifying questions, which were responded to by staff.
This item was a presentation only, there was no formal action taken by the City Council.
B. City User and Regulatory Fees Update
Recommendation: This item provides findings and recommendations from the recently completed user fee study. Upon incorporating City Council feedback, staff recommend the City Council hold a subsequent Public Hearing, whereby the City Council can determine whether to adopt the
schedule of user and regulatory fees.
Kevin Biersack, Director of Financial Services, provided an overview of the findings and recommendations from the recently completed user and regulatory fee study for the Council’s review and input.
This City Council provided their feedback on the proposed fees and asked clarifying questions, which were responded to by staff. This was for information and discussion only, there was no formal action taken by the City Council.
Staff indicated that a Public Hearing will be held at a subsequent Council Meeting to formally adopt the user and regulatory fees with any modification discussed this evening.
6. DISCUSSION ON FUTURE AGENDA ITEMS
There was no discussion on future agenda items.
7. CLOSED SESSION
ADJOURNMENT
Mayor Nancy Ross adjourned the Regular Meeting at 8:33 p.m.
Mayor, City of Cathedral City City Clerk, City of Cathedral City
CITY COUNCIL
MINUTES
Special Meeting
Wednesday, April 16, 2025
2:00 PM
City Hall
Council Chambers
68-700 Avenida Lalo Guerrero
Cathedral City, CA 92234
MAYOR
Nancy Ross
CITY COUNCIL MEMBERS
Mayor Pro Tem
Raymond Gregory
Councilmember
Rita Lamb
Councilmember
Ernesto Gutierrez
Councilmember
Mark Carnevale
CALL TO ORDER
Mayor Nancy Ross called the meeting to order at 2:01 p.m.
PLEDGE OF ALLEGIANCE
Councilmember Mark Carnevale led the Pledge of Allegiance.
ROLL CALL
Council Present:
Nancy Ross, Mayor
Raymond Gregory, Mayor Pro Tem
Ernesto Gutierrez, Councilmember
Mark Carnevale, Councilmember
Council Absent:
Rita Lamb, Councilmember
AGENDA FINALIZATION
There were no changes to the agenda.
1. AGENDA ITEM
A. Staffing and Budget Review of the Public Works Department Recommendation: The staffing and budget review of the Public Works Department is presented for City Council information, discussion and direction only.
John Corella, Director of Public Works, provided a staffing and budget review of the Public Works Department.
The following comment was received for the record:
David Koslow asked questions related to the park maintenance budget.
The City Council provided their feedback and asked clarifying questions, which were responded to by staff. This item was a presentation only, there was no formal action taken by the City Council.
ADJOURNMENT
Mayor Nancy Ross adjourned the meeting at 3:20 p.m.
Mayor, City of Cathedral City City Clerk, City of Cathedral City Staff Report
City Council
Item No. 4.C
Meeting Date: April 23, 2025
From: Kevin Biersack, Financial Services Director
Title: Demand Register - March
RECOMMENDATION:
The City Council acting in its capacity for the City, the Successor Agency to the former Redevelopment Agency, the Housing Successor Agency and the Cathedral City Public Finance Authority Board receive and file payment of claims and demands in the aggregate sum of $6,954,336.46 for the month of March 2025.
I HEREBY CERTIFY that in my judgment these demands were legally and owing by the City and/or the Successor Agency to the former Redevelopment Agency, the Housing Successor Agency and the Cathedral City Public Finance Authority and the funds were available for payment thereof, and in all other respects, the demands conform to the criteria set for the in section 3.16.050 of the Cathedral City Municipal Code.
Kevin Biersack, Financial Services Director
ATTACHMENTS:
March 2025 Demand Register
Staff Report
City Council
Item No. 4.D
Meeting Date: April 23, 2025
From: Eugenia Torres, Human Resources Manager
Title: CCPFA/CCFMA Side Letters to Update Language for CalPERS Compliance
RECOMMENDATION:
To authorize the City Manager to execute side letters with the Cathedral City Fire Management Association (CCFMA), and Cathedral City Professional Firefighters Association (CCPFA) to update their respective Memoranda of Understanding (MOUs) to ensure compliance with CalPERS reporting requirements for special compensation.
BACKGROUND:
Special compensation items must be included in Memoranda of Understanding and must meet the definitions outlined in CCR section 571 for classic members or CCR section 571.1 for new members in order to be reportable to CalPERS.
The California Public Employees’ Retirement System (CalPERS) defines special compensation as compensation in addition to base pay that must meet specific criteria to be considered pensionable. These items include, but are not limited to, education incentives, certification pay, and specialty assignment compensation. For such compensation to be included in retirement benefit calculations, it must be properly documented in labor agreements and meet all statutory and regulatory requirements.
Cathedral City has historically provided various special compensation items to its fire personnel in recognition of specialized training, education, and certifications that enhance their ability to serve the community. In previous negotiations, these items have been included in the MOUs with both CCFMA and CCPFA. CalPERS periodically conducts compliance reviews to ensure public agencies are correctly reporting compensation in accordance with applicable laws and regulations.
DISCUSSION:
CalPERS recently completed a compliance review of various education/certification stipends reported under various employee groups. There were multiple findings related to inconsistent or non-compliant language being used in the MOUs for the CCFMA and CCPFA groups. In order to maintain compliance in reporting special compensation items to CalPERS, staff have prepared the attached side letters for approval. These side letters specifically address the language modifications needed to properly report education and certification stipends according to CalPERS requirements.
All side letters have undergone a comprehensive review process and received formal approval from the union leadership. Each association president has provided their electronic signature on the documents, confirming official endorsement of the terms and conditions outlined therein. This verification process ensures that all negotiated agreements have received proper authorization from the appropriate bargaining unit representatives prior to final implementation.
FISCAL IMPACT:
There is no fiscal impact associated with this item. The recommended changes affect reporting language only and do not alter compensation amounts.
FIVE-YEAR STRATEGIC PLAN:
Goal A - SERVE THE COMMUNITY WITH PRIDE AND DEDICATION
Objective: Through diversity, equity, and inclusion driven employee programs and experiences, Cathedral City is the employer of choice with a workforce that is engaged, motivated, and respected public stewards
ATTACHMENTS:
1. CCFMA CalPERS Compliance Side Letter & CCPFA CalPERS Compliance Side Letter
2. CalPERS Audit Findings
Staff Report
City Council
Item No. 4.E
Meeting Date: April 23, 2025
From: John A. Corella, Director of Public Works
Title: Notice of Completion for the Cove Crack Repair Project (CIP No. C08675) RECOMMENDATION:
To accept and approve the Cove Crack Repair Project (C08675) as final, authorize the City Manager to file a notice of completion with the Riverside County Recorder’s Office, and authorize the release of retention funds to LCR Earthwork and Engineering, Corp. upon expiration of the notice of completion.
BACKGROUND:
On March 27, 2024, the City Council approved a construction contract with LCR Earthwork and Engineering, Corp. (LCR) in the amount of $893,803.35 with a twelve percent (12%) contingency of $106,196.65 for unforeseen construction costs, thereby bringing the total construction budget to $1,000,000.
The project consisted of repairing and sealing asphalt cracks in the Cove neighborhood using different techniques for two separate applications. Approximately 744 wide transversal cracks were removed and repaired at full asphalt depth. For smaller cracks, typical crack seal treatment was applied, improving approximately 300,000 linear feet of asphalt surface.
DISCUSSION:
Construction started on June 03, 2024, and was completed on March 14, 2025.
City staff reviewed and inspected the improvements and found the project was built in accordance with all contract requirements and therefore recommends the City Council accept the project as complete.
City Council acceptance is required to approve the project’s final contract amount and release retention funds. Retention funds are monies earned by the contractor withheld from progress payments pending satisfactory completion and final acceptance of the project.
Additionally, City Council acceptance of the project requires a notice of completion (NOC) be filed with the Riverside County Recorder’s office. The NOC is a written notice issued by the owner of a project, or their agent, to notify concerned parties that all work on the project has been completed. This notice also sets the period, which is thirty-five (35) days from the date the NOC is filed, within which concerned parties may exercise their lien rights against one another. Once the thirty-five-day period has expired, and provided no claims or liens are received, the City can release retention funds.
City staff recommends City Council accept and approve the Cove Crack Repair project (C08675) as final, authorize the City Manager to file a notice of completion with the Riverside County Recorder’s Office, and authorize the release of retention funds to LCR Earthwork and Engineering, Corp. upon expiration of the notice of completion.
FISCAL IMPACT:
Authorized Construction Funding
FISCAL YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT ONE TIME or ONGOING
2024-2025 AD 2004-02 354-100-150-
156-8800-8802 C08675 $1,000,000.00 ONE TIME
2024-2025 Total $1,000,000.00
The final construction expenditures with LCR total $926,666.45, which includes a change order in the amount of $32,863.10.
The total final contract cost is summarized below:
Base Contract Amount $893,803.35
Change Orders $32,863.10
Final Construction Cost $926,666.45
Should there be no claims or discrepancies in the work completed, the final invoice (5% retention) in the amount of $46,333.32 will be released to LCR in thirty-five (35) days from the date the NOC is filed.
FIVE-YEAR STRATEGIC PLAN:
GOAL B: COMMUNITY INVESTMENT
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
1. Notice of Completion - LCR Earthworks and Engineering Corp
Staff Report
City Council
Item No. 4.F
Meeting Date: April 23, 2025
From: Tracey Hermosillo, City Clerk
Title: Ratify the nomination of Patrick Evan Iachetta (Patrick Evans) by Mayor Nancy Ross to serve on the Historic Preservation Committee and appoint him to fill an unexpired term continuing through June 30, 2026.
RECOMMENDATION:
Ratify the nomination of Patrick Evan Iachetta (Patrick Evans) by Mayor Nancy Ross to serve on the Historic Preservation Committee and appoint him to fill an unexpired term continuing through June 30, 2026.
BACKGROUND:
The Historic Preservation Committee currently has two vacant seats with terms expiring June 30, 2026. Pursuant to City Council Resolution 2022-47, one seat shall be nominated by Mayor Nancy Ross (District Two) and one seat shall be nominated by Councilmember Rita Lamb (District One).
DISCUSSION:
The vacancies on the Historic Preservation Committee were posted as required by Government Code 54974, with a deadline to receive applications until the position is filled.
An application was received from Patrick Evan Iachetta (Patrick Evans). Mayor Nancy Ross and Councilmember Rita Lamb conducted an interview. Mayor Nancy Ross would like to nominate Mr. Iachetta to fill the vacant seat for District Two with a term continuing through June 30, 2026, his application is attached for your review.
It is the staff’s recommendation that, pursuant to City Council Resolution 2022-47, the City Council ratify the nomination of Mayor Nancy Ross of Patrick Evan Iachetta (Patrick Evans) to serve on the Historic Preservation Committee and formally appoint him to fill one of the unexpired terms continuing through June 30, 2026.
With this appointment, the Historic Preservation Committee will have one vacancy for District One nomination. Staff will continue to accept applications until the remaining vacancy is filled.
FISCAL IMPACT:
There is no Fiscal Impact with this item.
FIVE-YEAR STRATEGIC PLAN:
Not Applicable.
ATTACHMENTS:
1. Application and Letter of Interest - Patrick Evan Iachetta (Patrick Evans)
Staff Report
City Council
Item No. 5.A
Meeting Date: April 23, 2025
From: Eugenia Torres, Human Resources Manager
Title: Assembly Bill 2561 - Public Hearing on City Vacancies and Recruitment and Retention Efforts
RECOMMENDATION:
To hold a public hearing and receive and file this report.
BACKGROUND:
On September 22, 2024, Governor Newsom signed Assembly Bill 2561 (AB 2561) into law to amend the Meyers-Milias-Brown Act (MMBA) to create a new obligation for public agencies to address the status of vacancies publicly. As the basis for the new requirements, the California Legislature determined that vacancies are a widespread and significant problem in the public sector. Vacancies require employees to take on heavier workloads, resulting in burnout and increased turnover, which negatively impacts the delivery of public service.
The MMBA authorizes local public employees to form, join, and participate in the activities of employee organizations of their own choosing for the purpose of representation on matters of labor relations. The MMBA also requires the governing body or management of public agency to meet and confer in good faith regarding wages, hours, and other terms and conditions of employment with representatives of recognized employee organizations and to fully consider presentations that are made by the employee organization on behalf of its members before arriving at a determination of policy or course of action.
DISCUSSION:
In compliance with the new legal obligations under AB 2561, the City is required to do the following:
Public Hearing Requirements:
AB 2561 requires public agencies to present the status of their vacancies in a public hearing before their governing body at least once per fiscal year. The presentation must be made prior to the adoption of a final budget for the fiscal year. This report must also address the recruitment and retention efforts currently employed by the public agency. During this presentation, the public agency is also required to identify any changes to policies, procedures, or recruitment activities that negatively impact the entity’s efforts to reduce its vacancies.
Additionally, if the number of vacancies exceeds 20% of the total number of authorized fulltime positions in a particular bargaining unit, the public agency shall include the following information in its presentation upon request of the recognized employee organization:
1. The total number of job vacancies within a bargaining unit.
2. The total number of applicants for vacant positions within the bargaining unit.
3. The average number of days to complete the hiring process form when a position is posted.
4. Opportunities to improve compensation and other working conditions.
Currently, none of the City’s bargaining units have vacancy rates exceeding 20%, so this additional reporting is not required for this public hearing.
AB 2561 requires that recognized employee organizations shall be entitled to make a presentation before the governing board of a public agency during the same public hearing in which the public agency makes its annual presentation on vacancies.
AB 2561 further provides that the new law may not prevent an agency’s government board from holding additional public hearings about vacancies.
Current Recruitment and Retention Efforts
The Human Resources Department has implemented the following enhanced strategies over the past 18 months to address recruitment challenges and improve employee retention:
Recruitment Initiatives:
• Streamline Application Process: Simplified hiring procedures and reduced processing time for candidates.
• Public Service Motivation Messaging: Enhanced communication about the rewards and impact of public service careers.
• Enhanced Marketing and Outreach Strategies:
- Strategic job posting across multiple platforms
- Increased presence at regional career fairs
- Target local community outreach programs
- Expand social media recruitment campaigns
- Engagement with professional networks and associations Retention Strategies:
• Career Development Pathways:
- Structured advancement opportunities in Police Department - Career progression in Fire Department
• Professional Development Programs: Expanded training opportunities and tuition support for continuing education.
• Employee Recognition Initiatives: Formal and informal programs to acknowledge exceptional service and performance.
• Competitive Benefits Package: Comprehensive health benefits, retirement planning, and work-life balance support.
• Flexible Work Arrangements: Alternative scheduling options where operationally feasible.
• Policy Modernization: Regular review and updates to personnel policies to reflect best practices.
These efforts are continuously evaluated for effectiveness, with adjustments based on measurable outcomes and employee feedback.
Next Steps
No changes have been identified or implemented to address hiring obstacles at this time.
The City continues to take steps to support recruitment and retention and will continue monitoring vacancy rates.
FISCAL IMPACT:
None
FIVE-YEAR STRATEGIC PLAN:
Goal A – Serve the Community with Pride and Dedication
ATTACHMENTS:
1. Bill Text – AB 2561
Staff Report
City Council
Item No. 5.B
Meeting Date: April 23, 2025
From: John A. Corella, Director of Public Works
Title: Approve the FY 2025-2026 Community Development Block Grant Annual Action Plan
RECOMMENDATION:
To approve the FY 2025-2026 Community Development Block Grant (CDBG) Annual Action Plan (AAP) for submittal to the U.S. Department of Housing and Urban Development (HUD); and authorize the City Manager or designee to execute the required certifications; and execute all funding agreements and documents consistent with the FY 2025-2026 AAP.
BACKGROUND:
The Community Development Block Grant (CDBG) program, awarded from U.S. Department of Housing and Urban Development (HUD), allows Cathedral City to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and improving community facilities and services, principally for low-tomoderate (low-mod) income individuals.
As an entitlement city, Cathedral City receives annual entitlement funds to address the priority needs of the community which are outlined in the 5-Year Consolidated Plan (Con Plan). Consistent with the 5-Year Con Plan and as part of the Con Plan objectives, the Annual Action Plan (AAP) identifies how CDBG funds will be allocated in the upcoming fiscal year.
HUD has not yet released information on the City’s FY 2025-2026 CDBG allocation. This delay follows a similar pattern observed in the previous year’s allocation timeline, with the 2024 allocation amount being announced in August.
At the March 12, 2025, City Council meeting, staff presented the draft of the proposed FY 2025-2026 AAP to the City Council for review and comments. During this meeting, the City Council did not recommend any modifications to the proposed FY 2025-2026 AAP.
In accordance with the City’s adopted community participation plan (CPP), a “Notice of Availability for Review and Comments” (Notice) was published in the Desert Sun on March 13, 2025. The notice was also posted at the following locations: Cathedral City Civic Center, Cathedral City Senior Center, Boys and Girls Club of Cathedral City, and Cathedral City Library. Additionally, the draft of the FY 2025-2026 Annual Action Plan (AAP) was made available to the public at the Cathedral City Civic Center for a period of thirty (30) days.
DISCUSSION:
Cathedral City CDBG FY 2025-2026 AAP
For this fiscal year, city staff are proposing the allocation of funds as outlined in the table below. Please note that the funding amounts provided are estimates based on the previous year’s allocations. The total award of funds is subject to change, and any adjustments will result in a proportional revision of the fund allocations.
ADMINISTRATIVE (≤20%) FUNDING
Planning and Administration $ 51,000
Fair Housing Services $ 20,000
TAMJAC (CDBG Administrative On-Call Consultant) $ 35,000 Total Funding Allocated $ 106,000
PUBLIC SERVICES (≤15%) FUNDING
Total Funding Allocated $ -
PUBLIC IMPROVEMENTS (>80%) FUNDING
Whitewater Area Street Rehabilitation Phase II $ 424,000 Total Funding Allocated $ 424,000
TOTAL FUNDING $ 530,000
For FY 2025-2026, staff is proposing to allocate resources from the city’s General Fund for homeless and other public services through the General Fund Community Assistance Grant Program in lieu of funding from CDBG. This approach was successfully implemented in 2024, with the City Council awarding nine (9) grants totaling $70,000 to community non-profit organizations.
As presented and discussed at the CDBG FY 2025-2026 AAP introduction public hearing on March 12, 2025, staff is proposing to fund the Sidewalk Repair Assistance Program for FY 2025-2026 using the remaining FY 2024-2025 CDBG funds allocated to this program. As of April 23, 2025, the date of this City Council meeting, the remaining balance is $5,000.
Approval of funding for the FY 2025-2026 CDBG Sidewalk Repair Assistance Program will be addressed in an administrative or substantial amendment during FY 2025-2026.
Therefore, no funding has been reserved for this project in the proposed allocation of FY 2025-2026 awarded funds.
According to the Cathedral City Community Participation Plan, Cathedral City is required to hold two (2) public hearings during the development of the AAP to provide an opportunity for the public to share their opinion regarding the programs and services outlined in the 5-Year Consolidated Plan and the AAP. The first public hearing was held on March 12, 2025, during the City Council meeting to introduce the draft of AAP. The second public hearing will take place tonight during the regularly scheduled City Council meeting. Please note that no public comments were received during the 30-day public comment period.
Staff is recommending City Council approve the FY 2025-2026 Community Development Block Grant (CDBG) Annual Action Plan (AAP) for submittal to the U.S. Department of Housing and Urban Development (HUD); and authorize the City Manager or designee to execute the required certifications; and execute all funding agreements and documents consistent with the FY 2025-2026 AAP.
FISCAL IMPACT:
All funding through the CDBG Program is provided on a reimbursement basis based on the AAP entitlement amounts. Once the allocation amount is confirmed, city staff will present a separate staff report to propose a provider for fair housing support services, funded through the available CDBG Administrative Funding allocation. Additionally, the public improvement Whitewater Area Street Rehabilitation Phase II project will be presented to the City Council for approval within FY 2025-2026 for construction services.
FIVE-YEAR STRATEGIC PLAN:
Goal B- Community Investment
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
1. FY 2025-2026 Final Draft CDBG Annual Action Plan
Staff Report
City Council
Item No. 5.C
Meeting Date: April 23, 2025
From: Kevin Biersack, Financial Services Director
Title: Adopt by Resolution City User and Regulatory Fee Schedule RECOMMENDATION:
To conduct a public hearing and adopt by resolution the update to the City’s master schedule of user and regulatory fees.
BACKGROUND:
In 1987, following the California State Supreme Court Nollan vs. California Coastal Commission decision, the California Mitigation Fee Act was passed. These actions set the stage for Assembly Bill 1600, and Government Code sections 66000-66011. Later, Ehlrich vs. City of Culver City (1993), Doland vs. City of Tigard (1994), and Proposition 218 (1997) (among others) occurred, enabling public agencies to impose a user fee for government services when:
• The individual’s decision to use the governmental service is voluntary, and • The fee charged is reasonably related to both the level and cost of the service to be provided.
During the past 20 years, the list below comprises the City’s actions to update user and regulatory fees:
• In 2005, the City conducted a cost allocation plan (“CAP”) and user fee study (“UFS”) and adopted the studies' recommendations.
• In 2010, the City conducted a new CAP and UFS, but due to economic impact of the 2007-09 financial market collapse, the City did not implement the 2010 recommendations.
• During the January 2020 City Council retreat, Council requested staff conduct an updated CAP and UFS study. During the September 23, 2020, Council meeting, Council authorized staff to utilize ClearSource Financial Consulting to conduct the CAP and UFS update. On September 8, 2021, the City Council adopted an updated schedule of user and regulatory fees based on the results of the comprehensive cost of service study which was implemented on December 1, 2021.
• In August 2023, City Council adopted the first interim authorized inflationary adjustment based on Bureau of Labor Statistics (BLS) Consumer Price Index (CPI) to the City’s current schedule of fees. The increase was implemented November 1, 2023.
• In April 2024, City Council adopted the second interim authorized inflationary adjustment based on the BLS CPI to the City’s current schedule of fees. The increase was implemented July 1, 2024.
• During February through March 2025, ClearSource Financial Consulting collaborated with City staff to review current fee schedule as well as cost of service data to determine the necessary fee adjustments to ensure the City‘s cost of service is captured/recouped.
• In anticipation of this public hearing, the City Clerk sent notices to:
o Agua Caliente, BIA, Desert Valley Builders Association (DVBA), So Cal Gas, So Cal Edison on April 1, 2025
o Desert Sun 1st publication on April 2, 2025
o Desert Sun 2nd publication on April 9, 2025
• On April 9, 2025, the draft CAP and UFS were presented to City Council for review and feedback. Updates from City Council were received and have been included for reference and review.
This report summarizes the findings and recommendations from the recently completed user and regulatory fee study. Since user and regulatory fees are set at the direction of the City Council, upon Council’s review and concurrence with the study’s results, a subsequent public hearing must be noticed and held in conformance with Government Code Section 66016.
The fees study including the results and recommendations were presented to the City Council on April 9, 2025. Council feedback has been incorporated. If updated fees are adopted by the Council at this meeting the updated fee schedule will become effective beginning July 1, 2025.
DISCUSSION:
Industry best practice and California statute support establishing user and regulatory fees in accordance with the estimated reasonable cost of service. All fees should bear a fair and reasonable relationship to the payer’s burdens on, or benefits received from, the activities and/or services provided by the City. Additionally, ongoing review and adjustment of fees provides multiple benefits, including:
• Keeping pace with general cost inflation,
• Avoiding fee spikes that can occur when municipalities leave fees unchanged for a multi-year period,
• Providing fee payers, city staff, and city policymakers with a pattern of consistency that provides information for forecasting and decision-making purposes,
• Helps meet fee-payer service level expectations by collecting fees to fund the existing level of services provided, and
• Encouraging generational equity among fee payers by avoiding long-term stagnation of fees followed by significant fee increases.
This study specifically examined fee categories including, but not limited to:
• Building Fees, such as permitting of new construction or modifications to existing structures,
• Planning Fees, such as entitlement review and review for compliance with the zoning code,
• Engineering Fees, such as public improvement review, and Encroachment Permit Fees, for work or activities conducted in the City right-of-way, • Fire Prevention Fees – such as plan review and inspection for compliance with Fire Code and Ambulance Fees, and
• Police Fees – such as vehicle impound and false alarm response.
This study specifically excluded examinations of the following:
• Development Impact Fees
• Taxes
• Assessments
• Fines or Penalties
• Franchise Fees
• Utility Rates and Services Charges
These items are subject to different approval thresholds or are not subject to the same cost of service limitations as the fees examined as part of this study. Consequently, they are specifically excluded from the scope of this study.
The proposed fees are intended to comply with applicable federal, state, and local laws including providing confirmation that the proposed fees and charges are not a tax as defined in Article 13C of the California Constitution and that the proposed fees are no more than necessary to cover the reasonable costs of the City’s activities and services addressed in the fees. Additionally, the way costs are allocated to a payor bear a fair and reasonable relationship to the payor’s burdens on, or benefits received from the activities and services provided by the City.
Nearly every service for which a fee is imposed can be described as follows, contrasting the components of the full cost of service, which is the maximum fee amount justified, against the local agency’s goals for cost recovery:
Based on the consultant’s experience working with municipalities throughout California, most fee-paying stakeholders and city councilmembers accept high-cost recovery targets for development-related fees as long as:
• The elements of the cost of service and assumptions are clearly communicated.
• The city clearly communicates that only eligible costs are included in fees.
PRIMARY STUDY OUTCOMES
Building Fees
• Cities throughout the State typically target full cost recovery from building permit fees.
• Full cost recovery is targeted at the proposed fees.
• The building fee schedule is proposed to be simplified to facilitate application of fees to projects and assist customers in estimating permit fees. • Establish fixed, consolidated fees for the City’s most common minor permits. This will allow applicants to easily estimate permit fees and allow staff to efficiently administer the fee calculation and collection process. • Use a fee methodology that results in lower fees for less complex projects and higher fees for more complex projects (i.e., establish a nexus between fees and typical service requirements).
Planning Fees
• Due to the nature of development within California, many projects take a significant amount of resources over a multi-month and potentially multi-year timeframe, depending on project complexity and magnitude. • Flat fees are collected for projects that typically exhibit less variability in processing time than deposit-based fee services. Current recovery for flat (fixed) fee services varies widely.
• Several planning fees have been restructured from deposit-based to flat fees to improve operational efficiency.
• In order for the billing system to function properly on deposit-based large projects, the City must have systems in place to track time amongst the various development requests examined by staff and contractors. For deposit-based projects the City should bill project applicants for effort including intake, processing, technical reviews, inspections, meetings, and issuance/approvals.
Engineering and Encroachment Permit Fees
• Land development engineering and encroachment fees have been streamlined and recalibrated to enhance the correlation between services provided and fees collected. The proposed fee methodology is scaled to allow for lower fees for less complex projects and higher fees for more complex projects. • Fee categories have been organized to reflect the phases of development, i.e., pre-entitlement review, post entitlement review, inspections, administrative and research requests, and miscellaneous service requests.
• Full cost recovery is targeted for most services due to the regulatory nature of the services and the high level of direct benefit resulting from construction activities including enjoyment of property enhancements, increased property values, and the desire to avoid having other Cathedral City residents and businesses subsidize private construction activities.
• The department uses a combination of outside service providers and internal staff to perform certain plan review and inspection activities. The proposed fee structure encourages recovery of City costs in addition to contract service provider costs, while developing fixed fees intended to scale to reflect project complexity.
• The proposed fees are calculated based on project characteristics such as the number of sheets reviewed, the number of acres inspected, or the type of project reviewed and inspected. These modifications are consistent with industry trends in calculating fees for service.
Fire Prevention and Ambulance Fees
• Use fee methodology that results in lower fees for less complex projects and higher fees for more complex projects (i.e., a nexus between fees and typical service requirements).
• Adopting a more comprehensive array of fees will allow the city to better capture costs.
• Ambulance fees have been added to this fee study update. Based on a review of the initial ambulance fees approved by City Council on July 9, 2008, an increase is recommended to align with current market rates in the Coachella Valley and surrounding area.
In summary, similar fees are collected by communities throughout the region and the State. The proposed fee amounts do not exceed the City’s cost of service and are in- range of amounts charged by other jurisdictions. The Desert Valley Builders Association letter is also included (attachment 3).
• The attached User and Regulatory Fee Study Report (attachment 1) includes:
o Regional fee comparison with other jurisdictions, and o Cost of service analysis, including calculations and changes highlighted, and
• Master schedule of user and regulatory fees (attachment 2) • Final updates 4/23/2025 from City Council review on April 9, 2025 (Attachment 3)
• Resolution 25-__ (Attachment 4)
• DVBA letter dated April 16, 2025 (Attachment 5)
FISCAL IMPACT:
Based on the matching of user-requested services with the current cost of providing said services, the anticipated increase would be approximately $200,000 to the city’s General Fund. For the ambulance fee update, the City is forecasting an approximate increase of $300,000 in the first year.
FIVE-YEAR STRATEGIC PLAN:
The implementation of updated user and regulatory fees supports the following strategic plan goals:
GOAL B: COMMUNITY INVESTMENT Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
GOAL C: FISCAL STABILITY AND SUSTAINABILITY Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high-quality development which benefits the community. We remain financially solvent by implementing prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
1. User and Regulatory Fee Study
2. Master Schedule of User and Regulatory Fees
3. Final Updates 04/23/2025
4. Resolution
5. DVBA Letter 4/16/2025
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CATHEDRAL CITY, CALIFORNIA, ADOPTING A
SCHEDULE OF USER AND REGULATORY FEES FOR
VARIOUS CITY SERVICES
WHEREAS, user and regulatory fees are established by the City Council; and
WHEREAS, the City recently completed a study to identify the cost of providing various user and regulatory fee-related services; and WHEREAS, the study examined fee-related services provided by the City, the costs reasonably borne by the City in providing those services, the beneficiaries of those services, and the revenues produced by those paying fees and charges for special services; and
WHEREAS, the City Council finds that providing these services is of special benefit to applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these services from applicants who have sought or require the City's services by revising its schedule of fees; and
WHEREAS, the City Council hereby finds that the study provides adequate evidence to conclude that the revised fees do not exceed the cost to provide the services for which the fees are charged; and WHEREAS, the City Council desires that annually the City Manager may update the various fees based on the percentage change, for 12-months ending January of the current fiscal year, in the All-Urban Consumers Price Index for Riverside-San Bernardino-Ontario (CPI). If the CPI-U does not change or goes down in a given year, no change shall be made to the fee schedule that year; and
WHEREAS, in order to assist staff in implementing the requested annual adjustments, if any, Exhibit “A” includes a column identified as “CPI” that illustrates the recommended annual adjustment pattern for the fees set forth in Exhibit “A”; and
WHEREAS, in adopting this Resolution, the City Council is taking action only on those fees for the services, programs or products set forth in Exhibit “A” which have been modified from prior resolutions of the City Council. The remaining fees that have not been modified from prior resolutions shall remain in full force and effect.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL
CITY DOES HEREBY RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
The City Council hereby finds the recitals set forth above are true and correct.
SECTION 2. ESTABLISHMENT AND UPDATE OF FEES, CHARGES, AND RATES
The City Council hereby adopts the fees, charges, and rates as set forth in Exhibit “A” attached and incorporated by this reference.
SECTION 3. EFFECTIVE DATE
Any new or adjusted fees adopted by this Resolution shall go into effect sixty days after adoption of this resolution.
SECTION 4. CERTIFICATION
The City Clerk shall attest to and certify the vote adopting this resolution.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Cathedral City held on this 23rd day of April 2025, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
______________________________
Nancy Ross, Mayor
ATTEST:
______________________________
Tracey Hermosillo, City Clerk
APPROVED AS TO FORM:
______________________________
Eric S. Vail, City Attorney
Staff Report
City Council
Item No. 5.D
Meeting Date: April 23, 2025
From: Kevin Biersack, Financial Services Director
Title: Adopt by Resolution AB 1600 Development Impact Fee (DIF) Annual Update
RECOMMENDATION:
To conduct a public hearing and adopt by resolution an authorized inflationary adjustment to the City’s Assembly Bill (AB) 1600 Development Impact Fees.
BACKGROUND:
Development Impact Fees (DIF Fees) are established by the City Council. They are onetime fees charged to new development. DIF fees are intended to pay for backbone infrastructure and capital facilities required to serve the new developments and new residents. Municipalities are prohibited from using DIF fees to fund ongoing operations, maintenance, or to make up for existing service deficiencies. DIF fees must be accounted for, set aside, and saved until the municipality has the required funding to build the needed facilities.
This report presents the AB 1600 Development Impact Fees intended for use in Fiscal Year 2025/2026.
On September 27, 2023, the City Council adopted an updated Development Impact Fee schedule to reflect the adopted recommendations based on the results of a comprehensive cost of service study. During interim years, i.e., between comprehensive studies, the City Council has authorized inflationary adjustments to fees. The September 2023 fee study update was implemented on January 1, 2024.
This year represents the first update since the comprehensive fee study from January 1, 2024, through June 30, 2025. This update will apply the authorized inflationary adjustments to the previously adopted AB 1600 Development Impact Fee schedule.
In anticipation of this public hearing, the City Clerk sent notices to:
• Agua Caliente, BIA, Desert Valley Builders Association (DVBA), So Cal Gas, So Cal Edison on April 1, 2025
• Desert Sun 1st publication on April 2, 2025
• Desert Sun 2nd publication on April 9, 2025
On April 9, 2025, the draft update to the annual inflationary increase to the AB 1600 Development Impact Fees was presented to City Council for review and feedback. No additional changes were received from City Council.
With the upcoming public hearing and subsequent City Council approval, staff will implement the adjusted fees on July 1, 2025.
DISCUSSION:
The current AB 1600 Development Impact Fee schedule was adopted in September 2023 and implemented on January 1, 2024. Construction costs have continued to increase since 2023. Built into the schedule is an automatic fee adjustment using the Construction Cost index (CCI) for the 20-City average as reported by Engineering News Record (ENR) for a twelve-month period/year or a similar published index if the CCI is no longer available. Given increased costs, there could be a shortfall between current development impact fees and what it will cost to build the municipal facilities required to serve future residents. This automatic fee adjustment helps to mitigate that shortfall. • The fee schedule for Development Impact Fees are as follows:
o Parks
o Transportation
o General Government Facilities
o Fire Facilities
o Police Facilities
• This increase in AB 1600 Development Impact Fees is for an 18-month inflationary adjustment comprised of 2.97% based on calendar year 2025 over 2024 (1.6%/year) (attachment 1) and six months of calendar year 2024 over 2023 (1.35%) (attachment 2) ENR CCI (Construction Cost Index). The Desert Valley Builders Association acceptance letter is also included (attachment 3).
FISCAL IMPACT:
With the 2.97% ENR compounded CCI increase along with equivalent development activity in the upcoming fiscal year, DIF revenues could provide additional DIF fund revenue of up to $60,000 for fiscal year (FY) 2025/2026.
FIVE-YEAR STRATEGIC PLAN:
The implementation of updated Development Impact Fees supports the following strategic plan goals:
GOAL B: COMMUNITY INVESTMENT Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
GOAL C: FISCAL STABILITY AND SUSTAINABILITY Objective: Cathedral City has economically prospered by facilitating the investment of private dollars in high-quality development which benefits the community. We remain financially solvent by implementing prudent fiscal policies and transparent financial practices.
ATTACHMENTS:
1. Proposed Development Impact Fees Increase 2025 Over 2024 with totals
2. Proposed Development Impact Fees Increase 2024 Over 2023 with totals
3. Resolution
4. DVBA Letter dated April 4, 2025
RESOLUTION NO. 2025-
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF CATHEDRAL CITY, CALIFORNIA, ADOPTING A
SCHEDULE OF DEVELOPMENT IMPACT FEES FOR
FUTURE CITY SERVICES BASED ON NEW
CONSTRUCTION
WHEREAS, development impact fees (AB 1600) are established by the City Council; and
WHEREAS, the City completed a study in 2023 to identify the impact of new construction effect on the cost of providing City services; related to onetime fees charged on New Development intended to pay for backbone infrastructure and capital facilities required to serve the new developments and new residents.
WHEREAS, the study examined the cost of services provided by the City to the residents, related to one-time fees charged on new development intended to pay for backbone infrastructure and capital facilities required to serve the new development and its residents; and
WHEREAS, the City Council finds that providing these services is of special benefit to applicants both separate and apart from the general benefit to the public; and therefore, in the interests of fairness to the general public, the City desires to better recover the costs of providing these services from applicants who have sought or require the City's services by revising its schedule of fees; and
WHEREAS, the City Council hereby finds that the study provides adequate evidence to conclude that the revised fees do not exceed the cost to provide the services for which the fees are charged; and WHEREAS, the City Council desires that annually the City Manager automatically adjust the fees using the Construction Cost Index (CCI) for the 20-City Average as reported by Engineering News Record (ENR) for a twelvemonth period or a similar published index if the CCI Index is no longer available; and
WHEREAS, in adopting this Resolution, the City Council is taking action only on those fees for the services, programs or products set forth in Exhibit “A” which have been modified from prior resolutions of the City Council. The remaining fees that have not been modified from prior resolutions shall remain in full force and effect.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS:
SECTION 1. INCORPORATION OF RECITALS
The City Council hereby finds the recitals set forth above are true and correct.
SECTION 2. ESTABLISHMENT AND UPDATE OF FEES, CHARGES, AND RATES
The City Council hereby adopts the fees, charges, and rates as set forth in Exhibit “A” attached and incorporated by this reference.
SECTION 3. EFFECTIVE DATE
Any new or adjusted fees adopted by this Resolution shall go into effect July 1, 2025.
SECTION 4. CERTIFICATION
The City Clerk shall attest to and certify the vote adopting this resolution.
PASSED, APPROVED, AND ADOPTED at a regular meeting of the City Council of the City of Cathedral City held on this 23rd day of April 2025, by the following vote:
Ayes:
Noes:
Absent:
Abstain:
______________________________
Nancy Ross, Mayor
ATTEST:
______________________________
Tracey Hermosillo, City Clerk
APPROVED AS TO FORM:
______________________________
Eric S. Vail, City Attorney
“Exhibit A”
Staff Report
City Council
Item No. 6.A
Meeting Date: April 23, 2025
From: Ryan Hunt, Communications & Events Manager
Title: Award Contracts to SoundSkilz, Hocker Productions, and Montage Agency to produce the Taste of Jalisco Festival, State of the City and Cathedral City LGBT+ Days
RECOMMENDATION:
To award contracts to the following vendors and authorize the City Manager or their representative to execute all necessary documents:
-Hocker Productions for State of the City (May 2026)
-SoundSkilz for Taste of Jalisco Festival (February 2026) -Montage Agency for Cathedral City LGBT+ Days (March 2026) BACKGROUND:
On January 17, 2025, the City of Cathedral City issued a request for proposals (RFP) seeking qualified professional special event production companies to plan and implement one or all city events known as the State of the City (May 2026), Taste of Jalisco Festival (February 2026) and Cathedral City LGBT+ Days (March 2026).
The RFP was advertised on the City's website, social media accounts, and through direct outreach to event production companies. The deadline for submissions was Friday, February 21, 2025, at 2:00 p.m. A total of four companies submitted proposals for one or more events.
A panel consisting of five City representatives evaluated the proposals based on established criteria including:
• past production experience,
• quality of event productions,
• size of event experience,
• promotional marketing communications plan,
• festival implementation plan,
• booking entertainment abilities,
• experience working with state and/or local government staff, • budgeting experience, and
• community involvement or ability to network with volunteer groups and/or charities.
DISCUSSION:
The evaluation panel consisted of the following five individuals:
• Ryan Hunt, Communications & Events Manager (lead)
• Chris Parman, Events Consultant and 2025 LGBT+ Days event producer • Antonio Baciu, Vice Chair of the Parks & Community Events Commission • Adam Chastain, Events & Recreation Coordinator
• Richard Vogt, Finance Dept Senior Analyst
Each panelist independently scored each proposal on a scale of 1-100 based on the criteria outlined in the RFP. The scores were then averaged to determine the highest-scoring proposer for each event. The detailed scoring breakdown is as follows:
State of the City:
• Hocker Productions: 94.8 (Scores: 99, 88, 98, 94, 95) • deHarte Group: 87.0 (Scores: 90, 76, 92, 91, 86)
• SoundSkilz: 76.6 (Scores: 75, 60, 75, 87, 86)
Taste of Jalisco Festival:
• SoundSkilz: 96.0 (Scores: 100, 88, 95, 98, 99)
• Hocker Productions: 87.6 (Scores: 90, 74, 85, 92, 97) • deHarte Group: 82.4 (Scores: 90, 65, 83, 91, 83)
Cathedral City LGBT+ Days:
• Montage Agency: 90.0 (Scores: 75, 90, 92, 95, 98)
• deHarte Group: 88.6 (Scores: 85, 87, 90, 89, 92)
• Hocker Productions: 88.4 (Scores: 95, 88, 83, 83, 93) • SoundSkilz: 77.0 (Scores: 75, 69, 70, 79, 92)
Based on the evaluation results, staff recommends awarding contracts to the highest-scoring vendors for each event:
• Hocker Productions for State of the City
• SoundSkilz for Taste of Jalisco Festival
• Montage Agency for Cathedral City LGBT+ Days
Based on the evaluation results, staff has successfully negotiated agreements with the highest-scoring proposers for each event:
1. Hocker Productions for State of the City
a. FY 2025/2026: $25,000
b. FY 2026/2027: $25,000
2. SoundSkilz for Taste of Jalisco Festival
a. FY 2025/2026: $113,000
b. FY 2026/2027: $118,000
3. Montage Agency for Cathedral City LGBT+ Days
a. FY 2025/2026: $85,000
b. FY 2026/2027: $90,000
These agreements outline the scope of services, compensation terms, performance metrics, and other contractual requirements to ensure successful execution of each event. Each selected contractor will have exclusivity to produce their respective event for a two-year period, with optional renewal provisions subject to satisfactory performance. While a few of the cost proposals exceeded the current budgeted amount, Communications & Events was able to negotiate agreements satisfying the proposed FY 2025/2026 and FY 2026/2027 budget while maintaining the high quality and expectations for these City of Cathedral City signature events.
FISCAL IMPACT:
Funding for these special events is included in the FY 2025/2026 and FY 2026/2027 budget.
The specific contract amounts are budgeted in Communications and Events (100-100-130- 133-8600-8601) as follows:
State of the City, project M04519, (Hocker Productions):
• FY 2025/2026: $25,000
• FY 2026/2027: $25,000
Taste of Jalisco Festival, project M04506, (SoundSkilz):
• FY 2025/2026: $113,000
• FY 2026/2027: $118,000
Cathedral City LGBT+ Days, project M04515, (Montage Agency):
• FY 2025/2026: $85,000
• FY 2026/2027: $90,000
FIVE-YEAR STRATEGIC PLAN:
This action supports Goal F-3: Promote additional community events and celebrations.
ATTACHMENTS:
1. Special Events Proposal Scoring Summary
2. Request for Proposals (RFP) for Special Events Contract(s) for Services
3. Cathedral City State of the City Event Services Agreement
4. CC LGBT+ Days Contract 2026-27
5. Taste of Jalisco Contract 2026-27
6. Winning Technical & Cost Proposals
Staff Report
City Council
Item No. 6.B
Meeting Date: April 23, 2025
From: Ryan Hunt, Communications & Events Manager
Title: Approval of Contract for Annual Hot Air Balloon Festival RECOMMENDATION:
To approve a three-year contract agreement with SoundSkilz as the selected vendor for the 2025-2027 Cathedral City International Hot Air Balloon Festival.
BACKGROUND:
On January 24, 2025, the City of Cathedral City issued a request for proposals (RFP) seeking qualified professional special event production companies to plan and implement the Cathedral City International Hot Air Balloon Festival. The RFP was posted on the City's website and distributed to potential vendors. This is the first time that the City has bid out the operation of this event since its inception.
The Cathedral City International Hot Air Balloon Festival is a signature three-day event held annually in November, the weekend before Thanksgiving. Since its inception in 2015, the festival has grown from several thousand local attendees to over 25,000 regional visitors, generating significant tourism impact for the greater Palm Springs region.
The event features hot air balloon launches, competitions, and evening balloon glows. The festival opens each morning with sunrise balloon launches and competitions visible across the valley. Festival grounds include live entertainment, food vendors, a beer and wine garden, and an artisan market. Special activities include tethered balloon rides (weather permitting), family entertainment zones, and headline musical performances.
The RFP schedule included the following key dates:
-Deadline to receive unique questions from submitters: February 14, 2025 -Posting of answers to unique questions: February 20, 2025 -Proposal submission deadline: March 7, 2025, at 2:00 p.m.
The City Council approved SoundSkilz as the selected vendor for the Cathedral City International Hot Air Balloon Festival at the April 9, 2025, regular meeting, providing Communications & Events with a two-week window to negotiate a contract agreement with SoundSkilz as the third-party operator/producer of the event.
DISCUSSION:
The City received four (4) proposals for the Cathedral City International Hot Air Balloon Festival by the submission deadline. Proposals were submitted by:
-SoundSkilz
-Revel Republic
-Fantasy Balloon Flights
-JJ-LA
An evaluation panel consisting of the following members conducted a thorough review of all proposals:
-Ryan Hunt, Communications & Events Manager (lead)
-Chris Parman, Events Consultant and 2025 LGBT+ Days event producer -Adam Chastain, Events & Recreation Coordinator
-Colleen Pace, Chief Sales & Marketing Officer with Visit Greater Palm Springs -Erin Hyland, Parks & Community Events Commission Chair Each proposal was evaluated based on the following criteria as outlined in the RFP:
-Past production experience
-Quality of event productions
-Size of event experience
-Promotional marketing communications plan
-Festival implementation plan
-Booking entertainment abilities
-Experience working with state and/or local government staff -Budgeting experience
-Community involvement or ability to network with volunteer groups and/or charities The evaluation committee scored each proposal on a scale of 1-100. The average scores were as follows:
1. SoundSkilz - 92.2
2. Revel Republic - 89.0
3. JJ-LA - 85.8
4. Fantasy Balloon Flights - 76.6
SoundSkilz received the highest average score of 92.2 points. The committee found that SoundSkilz demonstrated superior qualifications and experience in all categories, particularly in:
1. Event Production Experience: SoundSkilz has extensive experience producing largescale events, including hot air balloon festivals and other major community events.
2. Marketing & Promotion Plan: Their comprehensive marketing strategy included innovative digital marketing approaches, traditional media outreach, and strategic partnerships with regional tourism entities.
3. Implementation Plan: Their detailed festival implementation plan addressed all key aspects of the event, including balloon operations, entertainment programming, vendor management, and safety protocols.
4. Government Experience: SoundSkilz has successfully worked with multiple municipal governments on similar events throughout Southern California, including Cathedral City.
A standout element of SoundSkilz's proposal is their partnership with Carol Popejoy-Davis, who has been hired as a consultant for this project. Ms. Popejoy-Davis served as the Executive Director of the Temecula Valley Balloon & Wine Festival for 17 years. Under her leadership, that festival grew into one of Southern California's premier events, attracting over 40,000 attendees annually and generating significant economic impact for the Temecula region. Her extensive experience in balloon operations, safety protocols, vendor management, and entertainment booking adds considerable value and specialized expertise to the SoundSkilz team.
After thorough negotiation and comprehensive research into projected costs and expenditures for the Cathedral City Hot Air Balloon Festival, Communications & Events is recommending an increase from $145,000 to $175,000 as the base contract amount for year one, with annual 5% increases for subsequent years. This adjustment allows for expanded programming while ensuring fiscal responsibility. To accommodate this change, we propose transferring $11,000 from Tastes & Sounds of Cathedral City budget and an additional $19,000 from the Communications & Events Professional Services Budget for FY 2025- 2026.
This strategic realignment includes a free Tastes and Sounds of Cathedral City community concert on Friday, November 21, 2025, featuring Radio Ready and Queen Nation, replacing the previously scheduled November 25 date which falls too close to the Thanksgiving holiday. With the City taking on Friday night's entertainment, it will allow the event operator more flexibility to focus investment in other key areas of the festival and maintain our high quality and standards our residents and visitors have come to expect from our signature and longest lasting festival. For FY 2026-2027, we will continue with the $11,000 transfer from Tastes & Sounds Fall Series along with $19,750 from the Communications & Events Professional Services budget, and for FY 2027-2028, we will maintain the $11,000 transfer from Tastes & Sounds Fall Series with $28,938 from Communications & Events Professional Services budget.
Our November Taste and Sounds Fall Series programming includes the November 4 event with DJ Aron as a Palm Springs Pride themed lead-up, which we are working to establish as an official Pride kickoff event through sponsorship agreements. The November 11 Tastes & Sounds will be a Veterans Day cookout themed night with military-themed performances from the Cathedral City High School Jazz Band, saving on costs as they request a modest donation compared to professional entertainment. Importantly, DJ Aron has already been paid for through LGBT+ Days as a rescheduled performance. This integrated approach creates a month-long celebration with The Dreamboats performing at the amphitheater on November 18, 2025, to launch the festival week, followed by a Media Preview Day at Century Park on Thursday, November 20, 2025. Throughout all November events, we will maintain sponsorship visibility and operate information booths to maximize cross-promotion opportunities and community engagement. With the 5% annual increases, the three-year funding structure will be:
• FY 2025-2026: $175,000,
• FY 2026-2027: $183,750; and
• FY 2027-2028: $192,938.
FISCAL IMPACT:
The fiscal impact of this three-year agreement with SoundSkilz for the Cathedral City Hot Air Balloon Festival will be distributed as follows: For FY 2025-2026 (covering the November 2025 event), $175,000 will be funded by transferring $11,000 from the Tastes & Sounds of Cathedral City Fall Series budget and $19,000 from the Communications & Events Professional Services budget, with the remaining $145,000 from the existing allocation. For FY 2026-2027 (covering the November 2026 event), $183,750 will be funded by transferring $11,000 from the Tastes & Sounds Fall Series and $19,750 from Communications & Events Professional Service budget, with the remaining $153,000 from the existing allocation. The final year of the agreement (covering the November 2027 event) will require $192,938, which represents the 5% increase for the third year of the contract.
FIVE-YEAR STRATEGIC PLAN:
This action supports Goal F-3: Promote additional community events and celebrations.
ATTACHMENTS:
1. Cathedral City Balloon Festival Contract for Services - 2025-2027
Staff Report
City Council
Item No. 6.C
Meeting Date: April 23, 2025
From: John A. Corella, Director of Public Works
Title: Contract Award for HSIP Cycle 9A: Traffic Signal Improvements at Twelve Intersections Project (C08752)
RECOMMENDATION:
To award a construction contract to Elecnor Belco Electric, Inc. in the amount of $850,888 for the construction of Highway Safety Improvements Program (HSIP) Cycle 9A: Traffic Signal Improvements at Twelve Intersections project (C08752); and, approve a twenty-three percent (23%) contingency in the amount of $200,512 for any unforeseeable construction costs; making the total encumbrance $1,051,400; and authorize the City Manager to execute the contract documents; and authorize the City Engineer to request bonds and insurance for the project and issue the notice to proceed.
BACKGROUND:
In December 2018, Cathedral City was awarded a $1,302,500 HSIP Cycle 9 grant to design and install advanced dilemma zone detection equipment, left turn phases, and pedestrian countdown heads at signalized intersections.
The City of Cathedral City entered into an agreement for design professional services for traffic signal upgrades at ten (10) intersections, federal project number HSIPL-5430(034) and city CIP project number 8752, with Advantec Consulting Engineers, Inc. (design consultant) on June 24, 2020. The list of the 10 intersections included:
1. Ramon Road and Whispering Palms Trail
2. Ramon Road and Cathedral Canyon Drive
3. Vista Chino and Avenue Quintana
4. Gerald Ford Drive and Plumley Road
5. East Palm Canyon Drive and El Dorado
6. Ramon Road and Desert Vista Road
7. Ramon Road and Da Vall Drive
8. Date Palm Drive and Via Olivera
9. Dinah Shore Drive and Plumley Road
10.Landau Boulevard and 30th Avenue
In February 2022, the City Council approved Amendment No. 1 to the agreement with the design consultant for two (2) additional intersections to the project because of the overlapping scope of work with the Coachella Valley Association of Governments’ (CVAG’s) Regional Traffic Signal Synchronization Project (CV Sync). The additional intersections included:
11.Date Palm Drive and Gerald Ford Drive
12.Dinah Shore Drive and Cathedral Canyon Drive
In January 2024, the City Council approved Amendment No. 2 to the agreement with the design consultant to accommodate the bidding and construction phase of the project.
Additionally, California Department of Transportation (Caltrans) approved the city’s request for allocation (RFA) of HSIP construction (CON) funds.
In March 2024, the City Council awarded a professional services agreement to Z&K Consultants, Inc. (construction engineering consultant) for construction engineering support services for the project.
On July 7, 2024, the city advertised an invitation to bid, requesting qualified contractors to perform the scope of work described in bid number B24-58E, which includes the plans and specifications for these projects. This solicitation was made available to contractors for twenty-three (23) calendar days and advertised in the Desert Sun, PlanIt Print Works and the city’s website.
On July 30, 2024, the city received three bid proposals for the project. Due to inflation and the increase in construction costs since 2018, the lowest bidder’s bid price was higher than the HSIP funds awarded for the construction of the project.
City staff worked with NAI Consulting (state/federal project support on-call consultant) and Albert A. Webb and Associates (traffic engineering on-call consultant) to submit a cost and scope change request to CalTrans for additional funding, which was approved on November 19, 2024.
On October 23, 2024, the City Council rejected all bids received on July 30, 2024, and directed staff to make the necessary revisions to the project specifications and to readvertise for construction bids.
On January 14, 2025, the city readvertised the invitation to bid. This solicitation was made available to contractors for twenty-three (23) calendar days and advertised in the Desert Sun, PlanIt Print Works and the City’s website.
On February 6, 2025, the City received five (5) bid proposals for this project. Due to an error in the bid opening process, the bids were rejected by the City Council on February 26, 2025.
DISCUSSION:
City staff readvertised the invitation to bid on Sunday, March 2, 2025, requesting qualified contractors to perform the scope of work described in bid number B24-75E, which includes the plans and specifications for these projects. This solicitation was made available to contractors for twenty-three (23) calendar days and advertised in the following locations:
• Desert Sun - Published on March 2 and March 12, 2025
• PlanIt Print Works - From March 2, 2025, until March 25, 2025 • City’s Website - From March 2, 2025, until March 25, 2025 On March 25, 2025, the City received seven (7) bid proposals for this project.
The following table ranks each qualified bidder by total price:
RANK CONTRACTOR AMOUNT
1 Elecnor Belco Electric, Inc. (Chino, CA) $ 850,888.00 2 Crosstown Electrical & Data, Inc.
(Irwindale, CA)
$ 899,687.00
3 Alfaro Communications Construction, Inc.
(Compton, CA)
$ 1,014,344.46
4 Econolite Systems, Inc. (Anaheim, CA) $ 1,090,958.86
5 PTM General Engineering Services, Inc.
(Riverside, CA)
$ 1,181,180.00
6 DBX, Inc. (Temecula, CA) $ 1,181,858.00
7 Yunex LLC (Riverside, CA) * $ 807,995.00*
*Disqualified for non-responsive bid.
The bid tabulation prepared by the Engineering Division is attached to this report for reference.
On March 26, 2025, Elecnor Belco Electric, Inc. (Belco) submitted a formal bid protest to the City, challenging the apparent low bid submitted by Yunex LLC (Yunex). Belco’s protest alleged that Yunex failed to meet the Disadvantaged Business Enterprise (DBE) participation goal due to issues related to the qualification of one of its listed subcontractors.
In response, City staff conducted a thorough review of the protest in coordination with Caltrans and Z&K Consultants (construction engineering support consultant). Based on this review and federal DBE requirements, it was determined that Yunex did not meet the DBE goal and failed to provide sufficient good faith efforts to do so.
As Yunex was unable to refute the claims outlined in the protest, the city deemed Yunex’s bid non-responsive. Therefore, based on the bids received, the lowest responsive and responsible bidder is Elecnor Belco Electric, Inc. (Belco) from Chino, CA.
All construction work will be performed within the existing city right-of-way. The construction work is scheduled to start in January 2026 and is estimated to be completed by May 2026.
ENVIRONMENTAL ANALYSIS:
This project is categorically excluded under the National Environmental Policy Act (NEPA) process for federally funded projects per 24CFR58.35 (a)(1), and categorically exempt under the California Environmental Quality Act (CEQA), Section 15301 for “Existing Facilities”.
City staff recommends the City Council award a construction contract to Elecnor Belco Electric, Inc. in the amount of $850,888 for the construction of HSIP Cycle 9A: Traffic Signal Improvements at Twelve Intersections project (C08752); and, approve a twenty-three percent (23%) contingency in the amount of $200,512 for any unforeseeable construction costs; making the total encumbrance $1,051,400; and authorize the City Manager to execute the contract documents; and authorize the City Engineer to request bonds and insurance for the project and issue the notice to proceed.
FISCAL IMPACT:
The total grant funding obligated from HISP Cycle 9 included funds for preliminary engineering (PE), construction engineering (CE), and construction, in the amount of $1,489,100.
The PE phase has been completed, leaving a balance of HSIP grant funds in the amount of $1,217,100 for CE and CON of the Project.
Construction Engineering (CE) $165,700
Construction (CON) 1,051,400
HSIP Grant Total 1,217,100
On March 27, 2024, the City Council awarded the CE contract to Z&K Consultants in the amount of $209,124 with a ten percent (10%) contingency of $20,912; bringing the total construction engineering budget for this Project to the amount of $230,036. The CE contract with Z&K Consultants is partially funded with the HSIP 9A grant Funds and Measure A Funds as shown below.
HSIP 9A Funds $165,700
Measure A Funds $ 64,336
CE Budget $230,036
The balance of HSIP grant funds for the construction of the project is in the amount of $1,051,400.
Belco’s bid was in the amount of $850,888. City staff propose to include a 23% contingency, in the amount of $200,512, for an estimated construction budget of $1,051,400.
Belco’s Bid Proposal $850,888
Contingency (23%) $200,512
Total Construction Budget 1,051,400
The following table summarizes the budget allocations for the construction of the project.
FISCAL
YEAR DESCRIPTION
GENERAL
LEDGER
ACCOUNT
CODES
PROJECT
CODE AMOUNT ONE TIME or ONGOING
2024-2025 HSIP 9A Funds 331-100-150-156-
8800-8802 C08752 $850,888 ONE TIME
2024-2025 Contingency (23%) 331-100-150-156-
8800-8802 C08752 $200,512 ONE TIME
2024-2025 Total $1,051,400
FIVE-YEAR STRATEGIC PLAN:
Goal B: Community Investment
Objective: Cathedral City roads, gateways, public spaces, and other city infrastructure are well planned, designed, constructed, and maintained.
ATTACHMENTS:
1. Project Location
2. Bid Tabulation - HSIP Cycle 9A
3. Contract – Elecnor Belco Electric, Inc.
Staff Report
City Council
Item No. 6.D
Meeting Date: April 23, 2025
From: John A. Corella, Director of Public Works
Title: 2025 SB 821 Bicycle and Pedestrian Facilities Program Funding Application
RECOMMENDATION:
To authorize the submittal of a 2025 SB 821, Bicycle and Pedestrian Facilities Program funding application for one (1) potential bike lane improvement project; and authorize the City Engineer to sign all applications/letters for the funding program.
BACKGROUND:
In 2018, CA Senate Bill 821 (SB 821) was passed by the state legislature. This bill did not directly impose a specific sales tax rate. Instead, it was related to the Transportation Development Act (TDA) and funded by a ¼ cent of the general sales tax collected statewide.
Specifically, SB 821, known as the Bicycle and Pedestrian Facilities Program, is funded through the Local Transportation Fund (LTF) within the TDA. Each year, 2% of the LTF revenue is allocated to SB 821 for bicycle and pedestrian facility projects.
In Riverside County, SB 821 is a discretionary program administered by the Riverside County Transportation Commission (RCTC) to fund local bicycle and pedestrian projects. On every odd-numbered year, the Commission conducts a competitive call for projects in which all local agencies within the County can submit applications. Eligible projects include construction of bicycle lanes, sidewalks, and Americans with Disabilities Act (ADA) curb ramps, and the development of bicycle and pedestrian master plans.
The programming capacity for this cycle is $7,279,863. As such, the maximum funding request per application is $727,986 and the maximum funding for each jurisdiction is $1,455,973.
This year’s call for projects was released on February 3, 2025, and will remain open until April 24, 2025.
The program guidelines are summarized as follows:
• 36 months to complete the project.
• Limit three (3) applications per city. For Riverside County, limit two (2) applications per Supervisorial District.
• Maximum request for each application is 10 percent of the current call for projects programming capacity.
• Total award to one jurisdiction is limited to 20 percent of the current call for projects programming capacity
• Awarded projects can start on July 1, 2025
• Use safety questions and construction readiness to settle tiebreakers.
The evaluation criteria consist of:
• Destinations Served – 14 points max, 2 points for each destination served. • Safety - 15 points max, safety enhancement features included in the project. • Multi-Modal Access – 6 points max, added “bicycle lanes, sidewalks, and crosswalks” as eligible multi-modal elements for consideration.
• Matching Funds – 10 points max, 1 point for each five percent of match provided by the local agency.
• Population Equity – 5 points max, calculated by RCTC Staff, Cathedral City receives 0 points in this evaluation criteria.
The city has experienced recent success with this grant program. In 2019, the city completed SB 821 Gerald Ford Drive Bike Lanes Striping project with 80% participatory funding from the program. In 2021, the city was awarded SB 821 program funds to leverage 80% of the funding for the Cathedral Canyon Drive Sidewalk Gap Closures project, which contributed to the Cathedral Canyon Drive Sidewalks and Multiuse Trail project, one of three (3) projects within the City/CVAG Active Transportation Program Cycle 5. Most recently, in 2023, the city was awarded SB 821 program funds for the Perez Road Class IV Separated Bikeway and the Whispering Palms Trail Class III Bike Route, with 75% and 65% participatory funding from the program, respectively. These last two projects are under design and are scheduled to be completed before the summer of 2026.
DISCUSSION:
For this 2025 SB 821 call for projects, city staff has identified improvements based on the prioritized strategies from the Cathedral City Active Transportation Plan (ATP) funded by the Southern California Association of Governments’ (SCAG) Sustainability Program to assist Southern California cities in developing tangible strategies to improve mobility conditions for all people who walk, bike, and utilize public transportation. The ATP provides the framework to support safe connections between key destinations within the city, including schools, transit facilities, employment centers, parks, residential neighborhoods, and more.
City staff have identified opportunities to improve roadway safety for bicyclists and pedestrians throughout Cathedral City. In alignment with the Cathedral City ATP and its priority phasing for bicycle and pedestrian projects, staff have selected a Class III Bike Route on Avenida Maravilla for submission under the FY 2025 SB 821 funding program.
The proposed improvements on Avenida Maravilla extend from the north end of Avenida Maravilla to Ramon Road. This project will enhance non-motorized mobility and connectivity in the city by providing clearly marked bicycle routes, promoting safer shared road use, and encouraging alternative transportation options. The project aligns with the city’s commitment to expanding its active transportation infrastructure and improving safety for all road users.
The grant application involves collecting and evaluating speed surveys, crash data, field evaluations and proximity to school or park data as critical information for the grant application compilation. The goal is to put together a project that will be within the grant funding limits ($727,986 for construction and engineering). This project would add approximately 2.25 miles of bike route and would require the installation of a broken centerline, shared roadway bicycle markings on pavement and additional signage. Exhibit 1 attached to this report shows the extent of the proposed bike route.
The SB 821 call for projects application process has grown increasingly complex and now requires specialized expertise, particularly from consultants with a successful history in preparing grant applications for similar programs. Additionally, the limited timeframe provided by RCTC to prepare, evaluate, and submit the applications, including all necessary data attachments, further supports the need for consultant assistance.
To ensure compliance with RCTC’s application requirements and to maximize the city’s competitiveness for FY 2025 SB 821 grant funding, staff has solicited a task order proposal from Albert Webb and Associates (Webb), the city’s on-call traffic engineering consultant.
The consultant is assisting in preparing the grant application at a not-to-exceed cost of $8,047.
The scope includes guidance from Webb in evaluating the proposed project, compiling the required supporting data, and assisting city staff throughout the application process. Once all necessary information has been gathered, Webb will also support the city in submitting the formal project applications. A draft of the application is attached to this report.
As with most grant opportunities, the SB 821 program requires applicants to declare a local match percentage as part of the grant application package. For the 2025 SB 821 grant cycle, one point will be awarded for every 5% of the local match provided by the agency, up to a maximum of 10 points for a 50% match. Supporting documentation for the proposed match must be included in the application to qualify for the associated scoring.
Currently, the total cost and overall benefit of the proposed projects have not yet been fully analyzed, and a final budgeted local match percentage has not been determined. However, based on past SB 821 grant awards and the estimated rough order of magnitude (ROM) costs provided in the Cathedral City ATP, staff are recommending a preliminary city participation of up to 50% for budgeting purposes for the Avenida Maravilla Class III Bike Route project. This equates to approximately $350,000, based on the ATP’s ROM estimate of $297,850 per mile. The proposed local match would be funded through the city’s available Traffic Safety fund.
City staff are requesting City Council authorize the submittal of a 2025 SB 821, Bicycle and Pedestrian Facilities Program funding application for one (1) potential bike lane improvement project; and authorize the City Engineer to sign all applications/letters for the funding program.
FISCAL IMPACT:
The Director of Public Works approved a task order in the amount not-to-exceed $8,047 for Albert Webb and Associates to evaluate, compile and prepare the funding application. The task order is funded with existing funds from the FY2025/26 Engineering Department Professional and Technical Services budget 100-100-150-156-8600-8601. The task order (Albert Webb and Associates proposal) is attached to this report.
If awarded the SB 821 grant, the design and construction for Avenida Maravilla Class III Bike Route Project will be presented to the City Council for funding approval, currently estimated at $350,000. The project is proposed to be funded from available city Traffic Safety Funds.
FIVE-YEAR STRATEGIC PLAN:
Goal E – Safety
Action E-7: Identify improvements and pursue grant funding to improve safety and connectivity of non-motorized routes throughout the City.
ATTACHMENTS:
1. Attachment 1 – Exhibit – Avenida Maravilla Class III Bike Route
2. Attachment 2 – Draft Application
3. Attachment 3 – Albert Webb and Associates Proposal
Staff Report
City Council
Item No. 6.E
Meeting Date: April 23, 2025
From: Michael Contreras, Fire Chief
Title: 2025 Fire Hazard Severity Zones (FHSZ) Update
RECOMMENDATION:
Receive and file this report on the updated 2025 Fire Hazard Severity Zones (FHSZ) issued by CAL FIRE, and direct staff to assess local implications related to zoning, building codes, defensible space requirements, and public education. Consider public outreach regarding updated hazard classifications within local responsibility areas (LRA). The State of California mandate is for the city to adopt the FHSZ Map.
BACKGROUND:
Pursuant to Public Resources Code 4202 and Government Code 51178, CAL FIRE is required to classify lands within the local responsibility area (LRA) into Fire Hazard Severity Zones—moderate, high, and very high. These classifications are based on fuel loads, terrain, weather, wind patterns, and other fire-related factors.
On March 23, 2025 Cal Fire released final maps for local responsibility area. This update integrates new climate science, fire modeling, and ember transport data to better reflect longterm wildfire hazards.
Additionally, Senate Bill 63 (Stern, 2021) mandates the inclusion of moderate and high FHSZs in local responsibility areas (LRAs), expanding beyond the previously designated Very High zones.
Cathedral City has no high or very high zones. According to the maps, Cathedral City has only moderate zones.
DISCUSSION:
The new 2025 FHSZ maps represent a significant advancement in wildfire hazard identification. Key updates include:
• Model Enhancements: Updated 50-year fire behavior modeling now includes local wind patterns, ember transport, flame length, and updated climate data (2003– 2018).
• Scope of Classification: All 31+ million acres of SRA are now classified under the revised system. LRA maps are expected to be completed by Winter 2025. • Building and Disclosure Impacts: Properties in High and Very High zones must comply with California Building Code Chapter 7A (Wildland Urban Interface standards), and sellers must include natural hazard disclosures. • Public Access: Residents can find property-specific designations via CAL FIRE's FHSZ Map Viewer.
• Urban Edge Considerations: FHSZ boundaries can change rapidly due to proximity to wildland. Even visually similar neighborhoods may fall into different zones based on ember exposure modeling.
• LRA Coordination: CAL FIRE will assist local jurisdictions in map adoption and provide land use planning resources. The department aims to align development standards with hazard potential, not to limit growth.
While these maps are hazard-based (long-term likelihood and behavior), insurance providers use different short-term risk models, though they may use similar datasets.
There is no direct fiscal impact associated with receiving this report. However, future implications may include:
• Staff time and resources to review and update local hazard mitigation plans, development review processes, and general plan safety elements. • Potential costs for public outreach, compliance inspections, and homeowner support related to defensible space and home hardening.
• Grant opportunities may be available for hazard mitigation and wildfire resilience initiatives through CAL FIRE and related agencies.
Staff will monitor the upcoming LRA mapping process and return with updates and recommendations as needed.
At a future meeting, staff will bring back the updated maps for the City Council’s consideration for adoption.
FISCAL IMPACT:
None
FIVE-YEAR STRATEGIC PLAN:
None
ATTACHMENTS:
1. 2025 FHSZ Map