1 1
0 6
Staff Report
City Council
Item No. 3.F
Meeting Date: October 22, 2025
From: Andrew Firestine, AICP, Director of Community and Economic Development
Title: Second Reading of an Ordinance Amending Chapters 3.48, 5.88,
9.108, and 13.240 and Section 9.30.030 of the Cathedral City Municipal Code to Update the Cannabis Tax, Cannabis Licensing and Zoning Regulations, and Enforcement Provisions
RECOMMENDATION:
To provide second reading, by title only and adopt an ordinance amending Chapters 3.48,
5.88, 9.108, and 13.240 and Section 9.30.030 of the Cathedral City Municipal Code to substantially update the cannabis tax, cannabis licensing and zoning regulations, and enforcement provisions.
BACKGROUND/ANALYSIS:
On January 22, 2025, the Cathedral City Council enacted a 45-day initial moratorium on new cannabis conditional use permits and cannabis licenses in response to a large increase in cannabis odor complaints in 2024 and continuing into 2025. This moratorium was extended by 10 months and 15 days on February 26, 2025.
An interim update was presented to the City Council on April 23, 2025, detailing the research performed up to that point and outlining the City’s next steps, including consultant support to identify those best practices and odor control requirements the City should model in an amendment to its cannabis regulations.
Following the April 23, 2025 update to the City Council, a scope of work was released to four consulting firms with experience in the cannabis industry to support the development and implementation of an update to the cannabis ordinance. The City contracted with SCS Engineers to provide additional support to staff. SCS Engineers prepared a comprehensive report for the City titled “Cathedral City – Regulatory Review – Cannabis Odor Control”, a report that provided substantial support for the creation of an odor control permitting process together with checklists and inspection forms.
Following the research performed by City staff and the development of a report by SCS 1 1
0 6
Engineers, a comprehensive ordinance amending the Cathedral City Municipal Code, including the zoning ordinance, was prepared. This ordinance amends the tax (chapter
3.48), licensing (chapter 5.88), permitting and zoning (chapter 9.108 and section 9.30.030), and enforcement (section 13.80.240) regulations related to cannabis uses and to amend various sections of the Municipal Code relating to administrative fines contained in titles 1, 3, 5, 8, 9, 11 and 14).
The Cannabis Task Force met and discussed the proposed ordinance on August 18, 2025 and recommended its approval to City Council on a 5-1 vote. The Planning Commission met and discussed the proposed ordinance on August 20, 2025 and recommended its approval to City Council on a 4-1 vote.
On September 24, 2025, the City Council conducted a public hearing and moved to introduce the proposed ordinance, attached to this agenda report, for adoption. In its motion, the City Council struck Section 23 of the ordinance, a section that would have limited the cannabis cultivation canopy area to a maximum of 22,000 square feet as a condition of approval on future conditional use permits. This modification is reflected in the ordinance presented for second reading.
The September 24, 2025 agenda packet contains the full record and all attachments and supporting information for the ordinance.
The ordinance has the effect of repealing the temporary moratorium on the approval of cannabis licenses, permits, approvals, or other entitlements for use upon its effective date.
Separately, the City Council will be presented an amendment to the fee resolution to establish fees for the review of an odor control plan and an annual certification of an odor control plan and a fine resolution to set the fines for a violation of Cathedral City Municipal Code Section 13.80.240(J).
FISCAL IMPACT:
In order to renew a cannabis license, an odor control plan will be required. It is anticipated the cost for city staff and third-party vendor time will be offset by the cannabis odor control plan review fees. Presented in a separate resolution, the plan review fees have been decreased from the September 24, 2025, presentation for cannabis lounges (to be reviewed by City staff and not referred out to a third-party) and for the annual certification of an odor control plan (estimated time reduced from 4 hours to 2 hours).
With 32 cultivation and manufacturing operating licenses that are expected to submit odor control plans beginning in 2026, the Planning Division’s professional service budget (100- 100-150-152-8600-8601) is expected to see an increase in expenses, estimated to be $56,000 for the remainder of FY 25/26 and $56,000 for FY 26/27.
FIVE-YEAR STRATEGIC PLAN:
F-17 – Review and update, as needed, our ordinances, policies, and practices regarding cannabis.
1 1
0 6
ATTACHMENTS:
1. Attachment 1 – Ordinance