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Staff Report
City Council
Item No. 2.A
Meeting Date: April 8, 2026
From: Justin Gardiner, Code Compliance Manager
Title: Comprehensive Cannabis Update and C4 Industry Odor Mitigation Update with 2026 Work Plan.
RECOMMENDATION:
Staff recommends City Council receive and file this report on cannabis regulation, enforcement activity, and ordinance implementation, and provide feedback or direction, as appropriate.
BACKGROUND:
Due to concerns primarily related to nuisance cannabis odors, a review of the City’s cannabis regulations and enforcement practices was conducted, resulting in the City Council adoption on October 22, 2025 of Ordinance No. 892, 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 City’s cannabis tax, licensing, zoning, and enforcement regulations. These changes were intended to strengthen compliance, improve response to odor complaints, and ensure cannabis businesses operate in accordance with municipal code requirements.
Upon adoption staff has implemented the ordinance through updated enforcement practices, new odor control requirements, improved inspection procedures, and increased interdepartmental coordination.
This report provides an update regarding implementation of the ordinance, complaint trends, enforcement activity, departmental coordination, and ongoing challenges related to cannabis regulation within Cathedral City.
Implementation Of Ordinance No. 892
Since adoption of Ordinance No. 892, the City has taken multiple steps to implement updated cannabis regulations and improve oversight of licensed cannabis businesses.
Implementation actions include:
Requirement for Odor Control Plans (OCPs) for applicable cannabis uses 1 3
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Updated licensing and renewal procedures
Expanded inspection and enforcement practices
Creation of interdepartmental cannabis coordination meetings Joint task force inspections
Increased proactive patrols in cannabis corridors
Staff training and industry education
These efforts were intended to provide clearer expectations for operators while improving the City’s ability to respond to complaints and enforce regulations.
Results Since Ordinance Adoption
Complaint Reporting Trends
In 2025, the City implemented the Envirosuite odor reporting system to improve the accuracy and documentation of cannabis odor complaints.
Since implementation, 1,433 odor complaints have been recorded, averaging approximately 160 complaints per month. Approximately 78% of complaints originated from the Ramon Road corridor.
Approximately 28% of reports were submitted by the ten most frequent reporting parties, resulting in targeted inspections and patrols in those areas.
An additional 34 complaints were submitted through the MyCathedralCity reporting application.
Proactive Patrols
More than 200 proactive odor patrols were conducted in areas with high complaint activity, including Ramon Road, Perez Road, Sunair Drive, and Bankside Drive.
Odor was confirmed in approximately 81% of patrol observations. Due to the proximity of multiple cultivation facilities, odor releases are often intermittent and difficult to attribute to a single source.
Enforcement Activity
57 inspections and re-inspections
27 code compliance cases opened
28 Notices and Orders issued
6 administrative citations issued
3 cultivation operations ordered to cease operation
1 resolved closure
2 ongoing closure cases
Odor Control Plan Implementation
There are currently forty-eight (48) operating cannabis businesses holding seventy-six (76) 1 3
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active licenses.
Per the Ordinance, OCPs are required for cannabis businesses as a condition of approval, at the time of license renewal, and whenever operational changes or enforcement actions require updated odor mitigation measures.
Four cultivation business operators have been issued a Notice and Order by Code Compliance requiring submittal of an OCP prior to renewal dates, due to odor issues.
Operators have 30 days to submit the OCP, and one operator has submitted the OCP.
Ten licenses are currently undergoing renewal requiring submission of an OCP.
Five OCP have been submitted to date. One was triggered by a modification to the CUP.
Interdepartmental Coordination
Monthly cannabis coordination meetings are conducted between Code Compliance, Planning, Building & Safety, Engineering, Fire, Police and Finance.
Joint inspections are conducted when needed to evaluate compliance across multiple departments.
DISCUSSION:
Implementation of Ordinance No. 892 has resulted in increased coordination between departments and expanded enforcement activity related to cannabis operations. The adoption of updated odor control requirements, improved inspection procedures, and additional reporting tools has provided the City with greater ability to respond to complaints and evaluate compliance with municipal code requirements.
The City migrated its cannabis odor reporting to Envirosuite in August 2025 in conjunction with C4 Industry. Its use permits C4 Industry to see cannabis odor complaints in real-time, and it prompts a review and investigation of those odor complaints in proximity to Date Palm Drive and Ramon Road by C4 Industry. The City maintains oversight of all complaints. While the system has improved documentation, the high volume of complaints has required additional staff time for patrols, inspections, and case follow-up. Due to the concentration of cultivation facilities in certain areas, odor conditions are often intermittent and may originate from multiple sources, making enforcement more complex.
The requirement for OCPs has added an additional review step during license renewal and has required coordination between Planning, Code Compliance, Finance and other departments.
Enforcement activity has increased since adoption of the ordinance, including inspections, notices, and administrative actions when voluntary compliance is not achieved. In most cases, operators have corrected violations after notice; however, some cases have required escalation, including suspension of operations.
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Monthly interdepartmental meetings and joint inspections have improved communication between departments and have allowed staff to address complaints and compliance issues more efficiently. Coordination between departments remains necessary due to the technical nature of cannabis operations and the multiple permits and approvals required for continued operation.
Staff will continue to monitor complaint trends, enforcement activity, and ordinance effectiveness, and will return to City Council with updates or recommendations if additional regulatory changes are determined to be necessary.
Department Updates
Code Compliance
Code Compliance continues to respond to cannabis related complaints, conduct inspections, and monitor compliance with municipal code requirements. Inspections are conducted in response to complaints, during license renewals, and as part of proactive enforcement efforts. Cases are opened when violations are observed, and Notices and Orders are issued when corrective action is required. Administrative citations or suspension of operation may occur when violations are not corrected.
Planning
Planning reviews cannabis license renewals, zoning compliance, and odor control plan requirements. Planning also coordinates with other departments to ensure required approvals are obtained prior to license renewal.
Building & Safety
Building and Safety conducts inspections related to business licenses and permits for tenant improvements, including structural, mechanical, electrical, and plumbing work. The division also reviews and inspects alterations to mechanical systems associated with the installation of odor mitigation systems. Additionally, Building and Safety enforces and inspects all applicable accessibility (ADA) requirements when such elements are modified.
Fire Department
The Fire Department conducts inspections of cannabis businesses for compliance with fire code requirements, including ventilation, hazardous materials, electrical systems, and extraction equipment. Fire staff also participate in joint inspections and review plans when modifications to buildings or equipment are proposed.
Police Department
The Police Department continues to conduct safety and security inspections of cannabis businesses and adopts the patrol duties of Code Compliance when complaints are received during periods when city hall is closed. Whenever criminal activity is observed at a cannabis business cases are immediately referred to CCPD as the primary agency. 1 3
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Finance/Cannabis Licensing
Finance processes business licenses, cannabis licenses, cannabis business tax payments, licensing fees, and renewal payments. Finance also tracks active licenses and coordinates with other departments during the renewal process to confirm compliance prior to license issuance.
Interdepartmental Coordination
Interdepartmental coordination meetings are held monthly and include Finance, Code Compliance, Planning, Building & Safety, Engineering, Fire and Police. These meetings are used to review renewals, coordinate inspections, discuss complaints, and track enforcement actions. Joint inspections are conducted when necessary to evaluate compliance across multiple departments.
Challenges Encountered
Odor complaints remain the most common issue and can be difficult to attribute to a single facility due to the concentration of cultivation businesses in a small geographic area.
The review of odor control plans is technical and time-intensive and often requires revisions before approval.
Inspections may be delayed when facilities are not staffed during normal inspection hours.
Unpermitted modifications to ventilation, extraction, or building systems have been observed during inspections. Renewal approvals require coordination between multiple departments, increasing processing time.
Future Goals and Next Steps
City staff will continue to implement cannabis regulations, including proactive patrols and inspections, interdepartmental coordination meetings, monitor complaint trends and improve internal licensing and renewal processes.
As we continue with these efforts, it is likely that staff will identify further revisions to improve on cannabis enforcement, licensing and regulation, which would require City Council action.
Conclusion
Since adoption of Ordinance No. 892, the City has strengthened oversight of cannabis businesses through updated regulations, expanded inspections, odor control requirements, and improved interdepartmental coordination. The City now has stronger tools to investigate complaints, require compliance, and regulate cannabis operations while supporting responsible business activity.
FISCAL IMPACT:
The direct costs of managing cannabis plans, licenses, and permits are covered by application fees. The indirect costs of managing cannabis, such as the increased interdepartmental coordination and proactive patrols, are absorbed by the City. The cannabis 1 3
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industry generates tax revenue, which in the currently adopted budget is projected to generate $3.2 million in revenue for FY 2025/2026.
FIVE-YEAR STRATEGIC PLAN:
Goal E – Safety
Enforcement of cannabis regulations through inspections, complaint response, and interdepartmental coordination supports public safety.
Coordination between Code Compliance, Police, Fire, Planning, and other departments improves the City’s ability to address violations and nuisance conditions.
Monitoring of cannabis operations and complaint activity supports ongoing regulatory compliance.
Goal F- Embracing, Inclusive Community
Enforcement of cannabis regulations and odor control requirements helps reduce impacts on surrounding neighborhoods and businesses.
Response to community complaints supports maintenance of clean and safe commercial and industrial areas.
Ongoing review of cannabis regulations helps ensure policies remain consistent with community standards.