Agenda packet, joint meeting, second session — Covina City Council, February 4, 2025

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY SPECIAL JOINT MEETING AGENDA

Tuesday, February 4, 2025, 6:30 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
TO THE MEMBERS OF THE COVINA CITY COUNCIL AND TO THE CITY CLERK:

NOTICE IS HEREBY GIVEN that a Special Joint Meeting of the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority is hereby called to be held on TUESDAY, FEBRUARY 4, 2025, at 6:30 PM, for open session in the Council Chamber of City Hall located at 125 E. College Street, Covina, CA 91723. Said Special Joint Meeting shall be for the purpose of conducting business in accordance with the items on the attached Agenda. No other business will be discussed.
/s/John C. King, Mayor of the City of Covina, California

IMPORTANT INFORMATION
Meeting Assistance Information: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or 626-384-5430. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Pages

CALL TO ORDER
Council/Agency/Authority Members: Walter Allen, III, Patricia Cortez, Hector Delgado, Mayor Pro Tem/Vice Chair Victor Linares, and Mayor/Chair John C. King

ROLL CALL

CONTINUED BUSINESS
CB 1. City Council Consideration of Appeal by Covina Responsible and Compliant LLC at (1052 N. Citrus Avenue, Covina, CA) Related to the Rejection of its Proposal Under RFP 2023-02 – Establishment of a Commercial Cannabis Retail or Microbusiness
3 Staff Recommendation:

1. Continue the Appeal Hearing, Receive Public Testimony and Close the Appeal Hearing;
Consider the appeal of the City’s Cannabis Evaluation Committee’s rejection of the application by Covina Responsible and Compliant LLC at 1052 N. Citrus Avenue, Covina, CA under RFP 2023-02, and direct to staff to prepare and bring a resolution at the next Council meeting with one of the following actions:

2. If the City Council agrees with the decision of the City’s Cannabis Evaluation Committee, then affirm staff's original decision and deny the applicant's advancement in the RFP evaluation process for a cannabis business permit application.

If the City Council can make the findings to support the appeal, then reverse the City’s Cannabis Evaluation Committee’s decision and authorize Covina Responsible and Compliant LLC to advance in the RFP evaluation process.

ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for Tuesday, February 4, 2025, at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

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CC Special Joint Meeting

AGENDA ITEM REPORT
Meeting: February 4, 2025
Title: City Council Consideration of Appeal by Covina Responsible and Compliant LLC at (1052 N. Citrus Avenue, Covina, CA) Related to the Rejection of its Proposal Under RFP 2023- 02 – Establishment of a Commercial Cannabis Retail or Microbusiness Recommendation: 1. Continue the Appeal Hearing, Receive Public Testimony and Close the Appeal Hearing;

2. Consider the appeal of the City’s Cannabis Evaluation Committee’s rejection of the application by Covina Responsible and Compliant LLC at 1052 N. Citrus Avenue, Covina, CA under RFP 2023-02, and direct to staff to prepare and bring a resolution at the next Council meeting with one of the following actions:

B. If the City Council can make the findings to support the appeal, then reverse the City’s Cannabis Evaluation Committee’s decision and authorize Covina Responsible and Compliant LLC to advance in the RFP evaluation process.

BACKGROUND:

On February 21, 2023, the City Council adopted Ordinance 23-01 related to the establishment of a Commercial Cannabis Business Permit Program. This Ordinance included revisions to the City’s Zoning Ordinance to allow a maximum of three (3) Commercial Cannabis businesses (1 business per 15,000 residents) in certain light manufacturing (M-1) and commercial zones and a six hundred (600) foot buffer requirement from certain sensitive uses. Further, the Ordinance includes a comprehensive set of regulations related to development standards, security, business operations, enforcement mechanisms and an entitlement process (conditional use permit, site plan review and development agreement) that will be subject to the review of the Planning Commission and City Council.

During the competitive Request for Proposals (“RFP”) process, a defect was identified in the proposal submitted by Covina Responsible and Compliant LLC (“CRC”), therefore making it ineligible to continue in the City’s RFP process. The defect related to CRC’s proposed business location at 1052 N. Citrus Avenue being in a C-2 commercial zone, which is not a permitted zone for commercial cannabis retail businesses. Accordingly, on October 21, 2024, a letter was sent to CRC providing notice of the defect in its proposal and information related to the appeals process. On October 30, 2024, a timely appeal was filed by CRC.

On December 3, 2024, the City Council conducted an appeal hearing and received testimony from the City’s Cannabis Evaluation Committee and representatives from CRC. During the hearing, CRC conveyed that it held site control of a location at 220 N. Azusa Avenue (previously held by Culture Cannabis Covina) and requested additional time to explore a modification of its pending application to this address. After receiving public testimony, the City Council continued the appeal hearing to February 4, 2025 at 6:30 p.m. to provide CRC with ample time to evaluate alternatives pertaining to its application.

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DISCUSSION:

In accordance with the RFP document, a mandatory pre-proposal meeting was held for prospective applicants on October 5, 2023 at 11:00 a.m. at City Hall. This mandatory pre-proposal meeting provided applicants with an overview of the City’s centralized webpage, RFP timeline and evaluation categories/phases, among other details.

A total of twenty-eight (28) applicants attended the meeting.

Following this meeting, approximately 124 questions were received regarding the RFP from prospective applicants. Responses to these questions were provided on October 24, 2023, October 31, 2023, November 22, 2023, and on December 20, 2023. Additionally, two (2) addenda were issued to the RFP as follows:
 Addenda No. 1 – Published on December 21 2023 to adopt revisions to the RFP document and revise the proposal submittal date to January 22, 2024 at 2:00 p.m. at the City Clerk’s Office at Covina City Hall.  Addenda No. 2 – Published on January 18, 2024 to revise the proposal submittal date to January 31, 2024 at 2:00 p.m. at the City Clerk’s Office at Covina City Hall.

Evaluation Process
As described in the RFP, Responses to Questions. and Addenda No. 1 and 2 issued by the City (“Attachment 1”), the RFP schedule includes multiple evaluation phases, with Phases I/II being open to any interested applicants who attended the mandatory pre-proposal meeting as verified by the official sign-in sheet (also posted to the City web site), Phase III being open to applicants that scored 80% or greater (1,600 out of 2,000 points) in Phase II, and Phase IV being open to applicants that score 90% or greater (180 out of 200 points) in Phase III. Following this process, applicants were provided the opportunity to address the City Council in a study session on October 15, 2024.

Following the City Council study session on October 15, 2024, applicant locations were re-evaluated to ensure compliance with the City’s Municipal Code (“CMC”). During this evaluation it was determined that a defect existed in the proposal submitted by Covina Responsible and Compliant LLC (“CRC”), therefore making it ineligible to continue in the City’s RFP process.

According to the proposal from CRC, the proposed business address for its retail cannabis business is 1052 N.

Citrus Avenue Covina, CA 91723. The proposed business address is located in the C-2 Commercial Zone.

CMC Section 17.84.030 B includes express language that permits retail cannabis businesses only in the C-3 Commercial Zone, the C-3A Commercial Zone, the C-4 Commercial Zone or the C-5 Commercial Zone and cannabis microbusinesses in the M-1 Light Manufacturing Zone:
“B. Cannabis businesses shall only be permitted in the following zones:

1. Cannabis retailers (delivery only and/or storefront sales) shall be permitted only in the C-3 commercial zone (central business), C-3A commercial zone (regional or community shopping center), C-4 (highway) and C-5 commercial zone (specified highway).

2. Cannabis microbusinesses shall be permitted only in the Light Manufacturing zone” Although CMC Section 17.38.030 provides that cannabis retailers are a permitted use subject to a conditional use permit in the C-2 Commercial Zone, that is contingent upon compliance with CMC Chapter 17.84, which does not allow cannabis businesses in the C-2 Commercial Zone as follows:
“Cannabis retailers that comply with the requirements set forth in Chapter 17.84.”

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As noted above, Chapter 17.84 does not designate the C-2 Commercial Zone as a zone where cannabis retailers may be located. Accordingly, on October 21, 2024 a letter was sent to CRC providing notice of the defect in its proposal and information related to the appeals process. On October 30, 2024, a timely appeal was filed by CRC.

Copies of Covina Municipal Code Chapter 17.38 and 17.84 are attached to this report as “Attachment 2”.

APPLICATION AND APPEAL SUBMITTED BY COVINA RESPONISBLE AND COMPLIANT Following the review of the application submitted by Covina Responsible and Compliant LLC (“CRC”), it was determined that:

2. The proposed business address for CRC’s retail cannabis business is 1052 N. Citrus Avenue Covina, CA 91723 which is located in a C-2 Commercial Zone. The Covina Municipal Code (“CMC”) Section 17.84.030 B.1 includes express language that permits cannabis retail businesses only in the C-3 Commercial Zone, C-3A Commercial Zone, C-4 Commercial Zone, or C-5 Commercial Zone.

Although CMC Section 17.38.030 provides that cannabis retailers are a permitted use subject to a conditional use permit in the C-2 Commercial Zone, that is contingent upon compliance with CMC Chapter 17.84, which does not allow cannabis businesses in the C-2 zone.

In its appeal letter (“Attachment 3”), CRC asserts the following in response:

1. The City’s Municipal Code is best read as allowing retail businesses in the C-2 zone. i. Appeal Claim: Maintains that CMC Section 17.38.030 states that cannabis retailers are permitted in the C-2 zone, subject to a conditional use permit and compliance with the requirements set forth in CMC 17.84; that CMC Section 17.84.030 (B) should not be read as completely voiding CMC Section 17.38.030; and that the code sections should be harmonized, both internally and with each other.
ii. Appeal Claim: Maintains that CMC Section 17.84.030 reads “except as expressly authorized pursuant to this title, all commercial cannabis activity is prohibited in the City” and refers to CMC Title 17, suggesting a review of the entire zoning ordinance beyond CMC 17.84 for provisions that authorize commercial cannabis activity, including CMC Section 17.38.030 that permits the use in the C-2 zone.
iii. Appeal Claim: Acknowledges that CMC Section 17.38.030 states that cannabis retail uses are permitted, so long as they comply with the requirements set forth in CMC Section 17.84 and maintains that CMC Sections 17.38.030 and 17.84.030 can be harmonized by considering all of the CMC’s requirements and obligations except the permitted zones provision.

City Response: A review of the City’s legislative history confirms that the C-2 Commercial Zone has never been contemplated as an eligible zone for retail cannabis business purposes. This includes the following:

A. Initial Study/Mitigated Negative Declaration and Mitigation Monitoring Reporting Program – January 2023 (“Attachment 4”)

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In 2022, the City retained Environmental Science Associates (“ESA”) to complete an Initial Study/Mitigated Negative Declaration (“Initial Study/MND”) for proposed amendments to the City’s Municipal Code and Zoning Code to authorize up to three commercial cannabis businesses within City limits. Throughout its text, the Initial Study/MND specifically references the eligible zones for cannabis business purposes, including the C-3 commercial zone (Central Business), C-3A commercial zone (Regional or Community Shopping Center), C-4 commercial zone (Highway) and C-5 commercial zone (Specified Highway) for retail purposes and the M-1 light manufacturing zone for microbusiness purposes.

The Initial Study/MND’s contents are consistent with the eligible zones that are listed in CMC Section 17.84.0 (B) and contains no references to the City’s C-2 Commercial Zone.

B. Covina Planning Commission Public Hearing Notice, Agenda Report and Meeting Minutes from January 24, 2023 (“Attachment 5”)
The Covina Planning Commission held a duly noticed public hearing on January 24, 2023 to consider Resolution 2023-001, thereby adopting Ordinance No. 2023-01 to amend Title 5 (Business Licenses and Regulations) and Title 17 (Zoning) to allow the establishment and operation of cannabis retailers in the C-3 commercial zone, the C-3A commercial zone, the C-4 commercial zone and the C-5 commercial zone; and cannabis microbusinesses in the Light Manufacturing Zone; and adopting an Initial Study/Mitigated Negative Declaration related to the amendments.

The public hearing notice, agenda report and meeting minutes for the Planning Commission meeting contain no discussion regarding the City’s C-2 Commercial Zone.

C. Covina City Council Meeting Public Hearing Notice, Agenda Report and Meeting Minutes from February 21, 2023 (“Attachment 6”)
The Covina City Council held a duly noticed public hearing on February 21, 2023 to consider adopting Ordinance No. 2023-01 to amend Title 5 (Business Licenses and Regulations) and Title 17 (Zoning) to allow the establishment and operation of cannabis retailers in the C-3 commercial zone, the C-3A commercial zone, the C-4 commercial zone and the C-5 commercial zone; and cannabis microbusinesses in the Light Manufacturing Zone; and adopting an Initial Study/Mitigated Negative Declaration related to the amendments.

The public hearing notice, agenda report and meeting minutes for the City Council meeting contain no discussion regarding the City’s C-2 Commercial Zone.

Based on the foregoing legislative history, it is reasonable to believe that the City did not contemplate the C-2 Commercial Zone as an eligible zone for cannabis retail business purposes and that the inclusion of the C-2 zone in the ordinance was in error.

2. The City should reverse its determination in part and allow CRC to remain eligible for the RFP award conditioned on a rezoning of the property.

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i. Appeal Claim: Maintains that CRC relied on the City’s zoning verification letter issued in January 2024 and that the City should reverse its determination that a defect exists in the submitted proposal, in part, and that it should remain eligible in the RFP process, conditioned on rezoning the property to a C-3 commercial zone, C-3A commercial zone, C-4 commercial zone or C-5 commercial zone.

City Response: The City erred in its review of the zoning verification form submitted by CRC in November 2023 and its Zoning Verification Letter issued to CRC on January 25, 2024. However, this does not negate the fact that the business location selected by CRC is in a C-2 commercial zone and that, per CMC 17.84.030 B.1, the C-2 commercial zone is not eligible for retail cannabis businesses.

As explained in its appeal letter, CRC acknowledges that CMC Section 17.38.030 states that cannabis retail uses are permitted (subject to conditional use permit), so long as they comply with the requirements set forth in CMC Section 17.84 but does not think that the permitted zones provision should apply. However, the plain language in this Section does not provide this flexibility.

Further, the request to reverse the determination that a defect exists in CRC’s proposal, in part, conditioned on rezoning this property and nearby commercial properties is not feasible nor certain.

Such an undertaking would be subject to additional study, public noticing/input and consideration by the City’s Planning Commission and City Council.

In addition to these points, both the RFP document and City Municipal Code contain provisions that are relevant to this topic.

RFP Language
As explained on page 18 of the Request for Proposals (“RFP”) (“Attachment 1”) under “Discrepancies and Misunderstandings – Respondents to this RFP must satisfy themselves by personal examination of any and all applicable City Ordinances, Codes and Regulations, and any applicable State or Federal laws, Codes, and Regulations as they may believe necessary and applicable to the operation of a cannabis retail business or cannabis microbusiness...” CMC 5.80.090 “City’s Reservation of Rights”
As explained in this section, “The City reserves the right to reject any or all applications for a cannabis business permit. Prior to such permit issuance, the city may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the cannabis program, or any permit potentially authorized under this chapter, may be cancelled at any time prior to permit issuance.

At its December 3, 2024 appeal hearing, the City Council continued the appeal to February 4, 2025 at 6:30 p.m. to provide CRC with ample time to evaluate alternatives pertaining to its application. Following this continuance, the City Council may consider the proposed staff recommendations or consider another alternative related to the pending appeal from CRC.

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CC Special Joint Meeting

AGENDA ITEM REPORT
Meeting: December 9, 2024
Title: City Council Consideration of Appeal by Covina Responsible and Compliant Retail LLC at (1052 N. Citrus Avenue, Covina, CA) Related to the Rejection of its Proposal Under RFP 2023-02 – Establishment of a Commercial Cannabis Retail or Microbusiness Recommendation: 1. Open the Public Hearing, Receive Public Testimony, and Close the Public Hearing;

2. Make finding that the appeal is exempt under the California Environmental Quality Act (“CEQA”);

3. Consider the appeal of the City’s Cannabis Evaluation Committee’s rejection of the application by Covina Responsible and Compliant Retail LLC at 1052 N. Citrus Avenue, Covina, CA under RFP 2023-02, and direct to staff to prepare and bring a resolution at the next Council meeting with one of the following actions:

A. If the City Council agrees with the decision of the City’s Cannabis Evaluation Committee, then affirm staff's original decision and deny the applicant's advancement in the RFP evaluation process for a cannabis business permit application B. If the City Council can make the findings to support the appeal, then reverse the City’s Cannabis Evaluation Committee’s decision and authorize Covina Responsible and Compliant Retail LLC to advance in the RFP evaluation process.

BACKGROUND:

On February 21, 2023, the City Council adopted Ordinance 23-01 related to the establishment of a Commercial Cannabis Business Permit Program. This Ordinance included revisions to the City’s Zoning Ordinance to allow a maximum of three (3) Commercial Cannabis businesses (One business per 15,000 residents) in certain light manufacturing (M-1) and commercial zones and a six hundred (600) foot buffer requirement from certain sensitive uses. Further, the Ordinance includes a comprehensive set of regulations related to development standards, security, business operations, enforcement mechanisms and an entitlement process (conditional use permit, site plan review and development agreement) that will be subject to the review of the Planning Commission and City Council.

Additionally, on September 19, 2023, the City Council approved a Request for Proposals (“RFP”) document and authorized staff to solicit proposals from qualified applicants. As part of the RFP document, the City established a dedicated webpage - www.covinaca.gov/cannabisprogram - to serve as the centralized hub of information related to the Cannabis Program RFP including related background materials, the RFP document and a Frequently Asked Questions section to support applicants. In order to ensure an equitable and transparent process, all formal communications (RFP Addenda, Schedule Changes, etc.) provided by the City have been made in writing and posted to this webpage.

DISCUSSION:

In accordance with the RFP document, a mandatory pre-proposal meeting was held for prospective applicants on October 5, 2023, at 11:00 a.m. at City Hall. This mandatory pre-proposal meeting provided applicants with an overview of the City’s centralized webpage, RFP timeline and evaluation categories/phases, among other details.

A total of twenty-eight (28) applicants attended the meeting.

ATTACHMENT A

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Following this meeting, approximately 124 questions were received regarding the RFP from prospective applicants. Responses to these questions were provided on October 24, 2023, October 31, 2023, November 22, 2023, and on December 20, 2023. Additionally, two (2) addenda were issued to the RFP as follows:
 Addenda No. 1 – Published on December 21, 2023, to adopt revisions to the RFP document and revise the proposal submittal date to January 22, 2024, at 2:00 p.m. at the City Clerk’s Office at Covina City Hall.
 Addenda No. 2 – Published on January 18, 2024, to revise the proposal submittal date to January 31, 2024, at 2:00 p.m. at the City Clerk’s Office at Covina City Hall.

Evaluation Process
As described in the RFP, Responses to Questions. and Addenda No. 1 and 2 issued by the City (“Attachment 1”), the RFP schedule includes multiple evaluation phases, with Phases I/II being open to any interested applicants who attended the mandatory pre-proposal meeting as verified by the official sign-in sheet (also posted to the City web site), Phase III being open to applicants that scored 80% or greater (1,600 out of 2,000 points) in Phase II, and Phase IV being open to applicants that score 90% or greater (180 out of 200 points) in Phase III. In Phase IV, applicants were provided the opportunity to address the City Council in a study session on October 15, 2024.

Following the City Council study session on October 15, 2024, applicant locations were re-evaluated to ensure compliance with the City’s Municipal Code (“CMC”). During this evaluation it was determined that a defect existed in the proposal submitted by Covina Responsible and Compliant Retail LLC (“CRC”), therefore making it ineligible to continue in the City’s RFP process.

According to the proposal from CRC, the proposed business address for its retail cannabis business is 1052 N.

Citrus Avenue Covina, CA 91723. The proposed business address is located in the C-2 Commercial Zone.

2. Cannabis microbusinesses shall be permitted only in the Light Manufacturing zone” CMC Section 17.38.030 provides that cannabis retailers are a permitted use subject to a conditional use permit in the C-2 Commercial Zone. However, that is contingent upon compliance with CMC Chapter 17.84:
“Cannabis retailers that comply with the requirements set forth in Chapter 17.84.” As noted above, Chapter 17.84 does not designate the C-2 Commercial Zone as a zone where cannabis retailers may be located. Accordingly, on October 21, 2024, a letter was sent to CRC providing notice of the defect in its proposal and information related to the appeals process. On October 31, 2024, a timely appeal was filed by CRC.

Copies of Covina Municipal Code Chapter 17.38 and 17.84 are attached to this report as “Attachment 2”.

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APPLICATION AND APPEAL SUBMITTED BY COVINA RESPONSIBLE AND COMPLIANT

RETAIL LLC
Following the review of the application submitted by Covina Responsible and Compliant Retail LLC (“CRC”), it was determined that:

The proposed business address for CRC’s retail cannabis business is 1052 N. Citrus Avenue Covina, CA 91723 which is located in a C-2 Commercial Zone. The Covina Municipal Code (“CMC”) Section 17.84.030 B.1 includes express language that permits cannabis retail businesses only in the C-3 Commercial Zone, C-3A Commercial Zone, C-4 Commercial Zone, or C-5 Commercial Zone.

In its appeal letter (“Attachment 3”), CRC asserts the following in response:

City Response: A review of the legislative history pertaining to the adoption of the cannabis ordinance confirms that the C-2 Commercial Zone has never been contemplated as an eligible zone for retail cannabis businesses. This includes the following:

A. Initial Study/Mitigated Negative Declaration and Mitigation Monitoring Reporting Program – January 2023 (“Attachment 4”)
In 2022, the City retained Environmental Science Associates (“ESA”) to complete an Initial Study/Mitigated Negative Declaration (“Initial Study/MND”) to analyze the impacts related to the proposed amendments to the City’s Municipal Code and Zoning Code to authorize up to three commercial cannabis businesses within City limits. The Initial Study/MND specifically references the eligible zones for cannabis business purposes, including the C-3 commercial zone (Central Business), C-3A commercial zone

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(Regional or Community Shopping Center), C-4 commercial zone (Highway) and C-5 commercial zone (Specified Highway) for retail purposes and the M-1 light manufacturing zone for microbusiness purposes.

The Initial Study/MND’s contents are consistent with the eligible zones that are listed in CMC Section 17.84.0 (B) and contains no references to the C-2 Commercial Zone.

B. Covina Planning Commission Public Hearing Notice, Agenda Report, and Meeting Minutes from January 24, 2023 (“Attachment 5”)
The Covina Planning Commission held a duly noticed public hearing on January 24, 2023, to consider Resolution 2023-001 PC, thereby recommending that the City adopt proposed Ordinance 23-01 to amend Title 5 (Business Licenses and Regulations) and Title 17 (Zoning) to allow the establishment and operation of cannabis retailers in the C-3 commercial zone, the C-3A commercial zone, the C-4 commercial zone and the C-5 commercial zone; and cannabis microbusinesses in the Light Manufacturing Zone; and adopt an Initial Study/Mitigated Negative Declaration related to the amendments.

The public hearing notice, agenda report, and meeting minutes for the Planning Commission meeting contain no discussion regarding allowing cannabis businesses in the C-2 Commercial Zone.

C. Covina City Council Meeting Public Hearing Notice, Agenda Report, and Meeting Minutes from February 21, 2023 (“Attachment 6”)
The Covina City Council held a duly noticed public hearing on February 21, 2023, to consider adopting Ordinance 23-01 to amend Title 5 (Business Licenses and Regulations) and Title 17 (Zoning) to allow the establishment and operation of cannabis retailers in the C-3 commercial zone, the C-3A commercial zone, the C-4 commercial zone and the C-5 commercial zone; and cannabis microbusinesses in the Light Manufacturing Zone; and adopting an Initial Study/Mitigated Negative Declaration related to the amendments.

The public hearing notice, agenda report and meeting minutes for the City Council meeting contain no discussion regarding allowing cannabis businesses in the City’s C-2 Commercial Zone.

D. The RFP itself identifies the zones where cannabis businesses permitted and does not identify the C-2 zone as a zone where a cannabis business may operate. Page 5 of Addendum No. 1 to the RFP that all applicants were required to sign states that “the City Council adopted Ordinance 23-01 amending Title 5 (Business License and Regulations) and Title 17 (Zoning) of the Covina Municipal Code to allow the establishment and operation of cannabis retailers (delivery only and/or storefront sales) in the C-3 commercial zone (central business), C-3A commercial zone (regional or community shopping center), C-4 commercial zone (highway) and C-5 commercial zone (specified highway) and cannabis microbusinesses in the Light Manufacturing Zone in the City.”

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2. The City should reverse its determination in part and allow CRC to remain eligible for the RFP award conditioned on a rezoning of the property.
i. Appeal Claim: Maintains that CRC relied on the City’s zoning verification letter issued in January 2024 and that the City should reverse its determination that a defect exists in the submitted proposal, in part, and that it should remain eligible in the RFP process, conditioned on rezoning the property to a C-3 commercial zone, C-3A commercial zone, C-4 commercial zone or C-5 commercial zone.

Further, the request to reverse the determination that a defect exists in CRC’s proposal, in part, conditioned on the City rezoning CRC’s proposed business property is uncertain. Such an undertaking would be subject to additional study, public noticing/input and consideration by the City’s Planning Commission and City Council.

In addition to these points, both the RFP document and City Municipal Code contain provisions that are relevant to this topic.

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OPTIONS FOR THE CITY COUNCIL
In considering the appeal of the rejection of the cannabis application as non-responsive, the City Council has two options:

1. The Council may agree with the decision of the Cannabis Evaluation Committee and sustain its decision; or

2. The Council may disagree with the decision of the Cannabis Evaluation Committee, or believe that it can make the findings to uphold the appeal and allow Covina Responsible and Compliant Retail LLC to proceed under the RFP evaluation process.

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CITY COUNCIL/ SUCCESSOR AGENCY TO THE COVINA REDEVELOPMENT

AGENCY/COVINA PUBLIC FINANCING AUTHORITY/ COVINA HOUSING

AUTHORITY JOINT MEETING

MINUTES
December 9, 2024, 4: 00 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
Councilmembers Present: Councilmember Patricia Cortez
Councilmember Hector Delgado
Mayor/ Chair John C. King
Councilmembers Absent: Councilmember Walter Allen, III
Mayor Pro Tem/ Vice- Chair Victor Linares
Staff Present: City Clerk Drew Aleman ( Elected Member) City Manager Chris Marcarello
Police Chief David Povero
Community Development Director Brian Lee
Chief Deputy City Clerk Fabian Velez
Staff Absent: City Treasurer Neil Polzin ( Elected Member) City Attorney Candice K. Lee
Parks & Recreation/ Library Services Director Lisa Evans Public Works Director Rafael Fajardo
Deputy City Manager Angel Carrillo
Interim Finance Director Theresa Franke
1

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CALL TO ORDER
Mayor King called the Council/ Agency/ Authority special meeting to order at 4: 18 p.m. with Councilmember Cortez, Councilmember Delgado, and Mayor King present.

ROLL CALL

PUBLIC COMMENTS
There were no public comments.

NEW BUSINESS
NB 1. City Council Consideration of Appeal by Covina Responsible and Compliant Retail LLC at ( 1052 N. Citrus Avenue, Covina, CA) Related to the Rejection of its Proposal Under RFP 2023- 02— Establishment of a Commercial Cannabis Retail or Microbusiness
Staff Recommendation:

1. Open the Public Hearing, Receive Public Testimony, and Close the Public Hearing;

2. Make finding that the appeal is exempt under the California Environmental Quality Act(" CEQA");

3. Consider the appeal of the City' s Cannabis Evaluation Committee' s rejection of the application by Covina Responsible and Compliant Retail LLC at 1052 N. Citrus Avenue, Covina, CA under RFP 2023- 02, and direct to staff to prepare and bring a resolution at the next Council meeting with one ofthe following actions:

A. If the City Council agrees with the decision of the City' s Cannabis Evaluation Committee, then affirm staffs original decision and deny the applicant' s advancement in the RFP evaluation process for a cannabis business permit application
B. If the City Council can make the findings to support the appeal, then reverse the City' s Cannabis Evaluation Committee' s decision and authorize Covina Responsible and Compliant Retail LLC to advance in the RFP evaluation process.

Mayor King opened the appeal hearing.

Motion made by: Councilmember Delgado
Seconded by: Councilmember Cortez
Make finding that the appeal is exempt under the California Environmental Quality Act ("CEQA").

Approved (3 to 0); Allen & Linares Absent
2

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City Clerk Aleman confirmed that the applicant was provided notice ofthe appeal hearing and City Attorney Eckart provided the procedural guidelines.

The staff report and presentation were provided by City Manager Marcarello, Deputy City Manager Carrillo, Community Development Director Lee, and City Attorney Marroquin.

Councilmember Cortez informed the Mayor that communication regarding the appeal was received from two individuals and both communications were referred to City staff Councilmember Delgado informed the Mayor that an email communication for a meeting was received and the email was referred to City staff.

Mayor King disclosed that he also received an email communication for a meeting and the email was referred to City staff
Representatives of Covina Responsible and Compliant Retail, LLC, presented their appeal.

Questions from the City Council to the appellant included the selection of a C- 2 Zoned location, what it means to have control of an alternative site, if applications will be combined with the alternative site, and the merits of the appeal.

Jorge Marquez, Lisa Reina, Eloy Florez, George, Bri Rizo, and Robert Moreno provided comments in support of Covina Responsible and Compliant Retail, LLC.

The appellant representatives thanked the City Council for the opportunity to present.

Further questions from the City Council included what the process for zoning verification consisted of, implications of moving forward with the alternative location, what impacts allowing an alternative location woud look like, the subject matter of the appeal, if an alternative location would be allowed, and how the municipal code could be harmonized.

Mayor King closed the appeal hearing.

City Council deliberation included thoughts on the appeal, potential to allow an alternative location, and next steps.

Mayor King reopened the appeal hearing.

Motion made by: Councilmember Cortez
Seconded by: Councilmember Delgado
Continue the appeal hearing to February 4, 2025.

Approved ( 3 to 0); Allen & Linares Absent

ADJOURNMENT
At 6: 08 p. m., the Covina City Council/ Successor Agency to the Covina Redevelopment Agency/ Covina Public Financing Authority/ Covina Housing Authority adjourned to its next regular meeting of the Council/ Agency/Authority scheduled for Tuesday, December 17, 2024, at 6: 30 p. m., for closed session and 7: 30 p. m., for open session in the Council Chamber located inside of City Hall, 125 East College Street, Covina, California, 91723. 3

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Fabian Vele of Deputy City Clerk
e.,•
John C O_, Mayor/Chair
4,••••„,
4

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Covina City CouncilFebruary 4, 2025

Covina City Council
February 4, 2025