Staff Report
City Council
Item No. 3.E
Meeting Date: November 12, 2025
From: Andrew Firestine, AICP, Director of Community and Economic Development
Title: Second Amendment to Contract with SCS Engineers
RECOMMENDATION:
Approve an amendment to the professional services agreement with SCS Engineers for cannabis odor control support and authorize the City Manager to execute the agreement with SCS Engineers.
BACKGROUND:
In May 2025, SCS Engineers was awarded a contract for cannabis odor control consulting services (the “Contract”). The Contract was awarded for a term of 12 months with a not-to- exceed contract value of $60,500. The scope of work supported the development of a detailed report referred to as the Cathedral City Regulatory Review and Cannabis Odor Management Tool, a report that substantially supported the development of the odor control plan requirements made part of the cannabis ordinance updates adopted by the City Council on second reading on October 22, 2025. The Contract also includes the training of planning and code compliance staff on the review of cannabis odor control plans and inspections. The Contract is attached as Attachment 1.
The Contract with SCS Engineers was amended in October 2025 to include an additional task to review the mechanical plans submitted by C4 Industry for their effectiveness in reducing cannabis odors generated by the business (the “First Amendment”). The First Amendment also increased the not-to-exceed value of the contract to $65,500. The First Amendment is attached as Attachment 2.
DISCUSSION:
The cannabis ordinance update adopted by City Council on October 22, 2025 requires cannabis businesses to prepare and submit an odor control plan with their local license renewal beginning January 1, 2026. An amendment to the fee resolution was also adopted by City Council on October 22, 2025 establishing the review fees for a cannabis odor control plan.
Based on the complexity of the review and the specialized skillset and knowledge needed to determine whether an odor control plan appropriately and effectively proposes controls to mitigate cannabis odors, including a review of the odor emitting activities or processes and methods of odor control, odor control plans for cultivation and manufacturing are to be reviewed by a third-party subject matter expert on the review of odor control plans.
When the scope of work for cannabis odor control consulting support was released by the City in April 2025, it included an optional response for a proposal to perform third-party reviews of odor control plans. SCS Engineers included this in their proposal at a flat rate of $3,500 per odor control plan. This rate was incorporated into the odor control plan review fee for cultivation and manufacturing uses adopted by resolution on October 22, 2025, together with staff time for the processing of the odor control plan and inspections to verify the installation of any required cannabis odor control equipment.
A second amendment to the Contract with SCS Engineers has been prepared to extend the Contract through the end of 2026 with the option to extend it one additional year and to add an additional task to review cannabis odor control plans (the “Second Amendment”). The Second Amendment is attached as Attachment 2.
The Second Amendment also amends the not-to-exceed value of the contract to $184,500, reflecting the value of the contract through the First Amendment and increasing it by $119,000 to accommodate the review of 34 odor control plans. There are 29 existing cultivation and manufacturing licenses (operational and non-operational), all of which will be required to obtain approval of a cannabis odor control plan. The Second Amendment includes consideration of any new cultivation or manufacturing licenses that may be submitted in 2026 which would also require approval of an odor control plan.
FISCAL IMPACT:
The $59,500/year fiscal impact was addressed in the September 24, 2025 City Council action on the adoption of the cannabis ordinance amendments on first reading. As a result, no additional fiscal impact is required.
FIVE-YEAR STRATEGIC PLAN:
F-17 – Review and update, as needed, our ordinances, policies, and practices regarding cannabis.
ATTACHMENTS:
1. Attachment 1 – Contract with SCS Engineers dated May 6, 2025
2. Attachment 2 – First Amendment to Contract with SCS Engineers dated October 6, 2025
3. Attachment 3 – Second Amendment to Contract with SCS Engineers