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Minutes
x Redondo Beach City Council
Tuesday, May 14, 2024
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tig1 Closed Session — Adjourned Regular Meeting 4: 30 p. m. D R Open Session — Regular Meeting 6. 00 p. m.
4: 30 PM - CLOSED SESSION — ADJOURNED REGULAR MEETING
A. CALL TO ORDER
An Adjourned Regular Meeting of the Redondo Beach City Council was called to order at 4. 30 p. m. by Mayor Light in the City Hall Council Chambers, 415 Diamond Street, Redondo Beach, California.
B. ROLL CALL
Councilmembers Present: Behrendt, Kaluderovic, Loewenstein, Nehrenheim, Obagi, Mayor Light
Officials Present: Mike Witzansky, City Manager
Melissa Villa, Analyst
C. SALUTE TO THE FLAG - NONE
D. BLUE FOLDER ITEMS — ADDITIONAL BACK UP MATERIALS
Analyst Villa announced there were no Blue Folder Items for Closed Session.
E. PUBLIC COMMUNICATIONS ON CLOSED SESSION ITEMS AND NON -
AGENDA ITEMS
Analyst Villa reported there were no public communications on Closed Session and Non -Agenda Items.
F. RECESS TO CLOSED — 4: 35 p. m.
Analyst Villa read title to the items to be considered in Closed Session.
City Manager Witzansky announced that the following would be participating in Closed Session- City Manager Mike Witzansky, City Attorney Mike Webb, Assistant City Attorney Cheryl Park, Outside Consultant Rick Hayden, Waterfront & Economic Development Director Greg Kapovich, Outside Leasing Agent Brian Campbell, Human Resources Director Diane Strickfaden, Outside Labor Negotiator Laura Kalty and Interim Fire Chief Patrick Butler.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote to recess to Closed Session at 4. 35 p. m.
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Motion carried, 5- 0.
F. 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
Yes in My Back Yard, a California nonprofit corporation; SONJA TRAUSS, an individual v. City of Redondo Beach; City Council of the City of Redondo Beach; City of Redondo Beach Department of Community Development, and DOES 1 through 25 inclusive
Case Number: 23TRCP00325
F. 2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
In re 9300 Wilshire LLC
Bankruptcy C. D. Cal. Case Number: 2: 23- bk- 10918- ER F. 3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956.9( d)( 1).
Name of case:
9300 Wilshire, LLC v. City of Redondo Beach; City Council of the City of Redondo Beach; City of Redondo Beach Department of Community Development; and DOES 1 through 100, inclusive
Case Number: 23STCP02189
FA. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
New Commune DTLA LLC v. City of Redondo Beach; City Council of the City of Redondo Beach; and DOES 1 through 100, inclusive Case Number: 23STCV10146
F. 5. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
New Commune DTLA, LLC v. City of Redondo Beach; City Council of the City of Redondo Beach; City of Redondo Beach Department of Community Development, et al.
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Case Number: 23STCP00426
F. 6. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
New Commune DTLA, LLC and Leonid Pustilnikov v. City of Redondo Beach and City Council of the City of Redondo Beach
Case Number: 22TRCP00203
F. 7. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
City of Redondo Beach, et al. v. California State Water Resources Control Board
Case Number: 20STCP03193
F. 8. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney -client privilege, Government Code Section 54956. 9( d)( 1).
Name of case:
AES Southland Development, LLC and AES Redondo Beach, LLC v.
California Coastal Commission
Case Number: BS157789
F. 9. CONFERENCE WITH LEGAL COUNSEL - PUBLIC EMPLOYEE PERSONNEL MATTER/ EVALUATION - The Closed Session is authorized by the attorney - client privilege, Government Code Section 54957( b).
Title: City Manager
F. 10. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session is authorized by the Government Code Section 54956. 8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
103 and 123 Torrance Blvd, Redondo Beach, CA 90277
a portion of APN: 7505-003- 206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
Jariet Technologies, Inc. - Charles Harper ( CEO)
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Under Negotiation:
Lease Status, Price and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 11. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session is authorized by the Government Code Section 54956. 8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
240 Fisherman' s Wharf, Redondo Beach, CA 90277
a portion of APN: 7505-002- 913)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
El Cinco De Mayo, Inc. - Oscar and Froylan Arellanez ( Co -Presidents) Under Negotiation:
Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 12. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session is authorized by the Government Code Section 54956.8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
203 Fisherman' s Wharf, Redondo Beach, CA 90277
a portion of APN: 7505-002- 913)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban
Maricela Martinez Acencio ( CEO) - Waterfront Pizzeria, Inc.
Under Negotiation:
Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 13. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session
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is authorized by the Government Code Section 54956.8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
105 W Torrance Blvd # 100, Redondo Beach, CA 90277
a portion of APN: 7505-003- 206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
Dr. Piero Quinci - Aloha Braces
Under Negotiation:
Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
IXi[ d 7 1: 7[ i l:: 7_ 1: Z 7»: i' Ix/_ t 7: T C•1: F'i[ T is authorized by the Government Code Section 54956. 8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
121 W Torrance Blvd # 100, Redondo Beach, CA 90277
a portion of APN: 7505-003- 206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
Jamie Rosenwald - Rosenwald Capital Investments, Inc.
Under Negotiation:
Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 15. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session is authorized by the Government Code Section 54956. 8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
119 W Torrance Blvd # 100, Redondo Beach, CA 90277
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a portion of APN: 7505-003- 206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
Greg Harris - First Steps For Kids
UNDER NEGOTIATION:
Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 16. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session is authorized by the Government Code Section 54956. 8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
105 W Torrance Blvd # 200, Redondo Beach, CA 90277
a portion of APN: 7505-003- 206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
Jessica Galgano - OpenLines Speech and Communications, Inc.
UNDER NEGOTIATION:
Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 17. CONFERENCE WITH REAL PROPERTY NEGOTIATOR - The Closed Session is authorized by the Government Code Section 54956.8.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Greg Kapovich, Waterfront & Economic Development Director PROPERTY:
111 W Torrance Blvd # 200B, Redondo Beach, CA 90277
a portion of APN: 7505-003- 206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
William Gallo - An Individual
UNDER NEGOTIATION:
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Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT & ECONOMIC
DEVELOPMENT DIRECTOR
F. 18. CONFERENCE WITH LEGAL COUNSEL AND LABOR NEGOTIATOR - The Closed Session is authorized by the Government Code Sec. 54957. 6.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Diane Strickfaden, Director of Human Resources
EMPLOYEE ORGANIZATIONS:
Redondo Beach Firefighters Association
G. RECONVENE TO OPEN SESSION — 6: 08 p. m.
Mayor Light reconvened to Open Sesson at 6. 08 p. m.
H. ROLL CALL
Councilmembers Present: Behrendt, Kaluderovic, Loewenstein, Nehrenheim arrived at 6: 09 p. m.), Mayor Light
Councilmembers Absent: Obagi
Officials Present: Mike Witzansky, City Manager
Melissa Villa, Analyst
I. ANNOUNCEMENT OF CLOSED SESSION ACTIONS
City Manager Witzansky reported there was nothing to announce but noted City Council will return to Closed Session after the regular meeting for Items No. R.9 and R. 18.
Councilmember Nehrenheim arrived at 6: 09 p. m.
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Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote, to adjourn to the regular meeting at 6. 09 p. m.
Motion carried, 4- 0- 1. Councilmember Obagi was absent. 6: 00 PM - OPEN SESSION - REGULAR MEETING
A. CALL TO ORDER
A Regular Meeting of the Redondo Beach City Council was called to order at 6: 09 p. m. by Mayor Light in the City Hall Council Chambers, 415 Diamond Street, Redondo Beach,
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California.
B. ROLL CALL
Councilmembers Present: Behrendt, Kaluderovic, Loewenstein, Nehrenheim, Obagi ( arrived at 6. 10 p. m.), Mayor Light
Officials Present: Mike Witzansky, City Manager
Melissa Villa, Analyst
C. SALUTE TO THE FLAG AND INVOCATION
Marcus, 1 st Grade Student, Hermosa View School, led the salute to the flag.
Mayor Light called for a moment of silence.
D. PRESENTATIONS/ PROCLAMATIONS/ ANNOUNCEMENTS
Councilmember Nehrenheim spoke about recent events including a District 1 community meeting at Veterans Park Senior Center, discussed the Bill Brand Memorial Paddle -out, announced the District 1 online community meeting next Monday; spoke about the State of the City event and addressed the upcoming Memorial Day event at Veterans Park.
Councilmember Obagi arrived at 6: 10 p. m.
Councilmember Loewenstein addressed the Bill Brand Memorial Padde- out; reported attending a spaghetti dinner fundraiser at the Women' s Club and announced the District 2 community meeting will be held on May 29, 2024, on Zoom.
Councilmember Kaluderovic reported attending the Friendship Campus topping off; spoke favorably regarding the State of the City; talked about attending an event for civic leadership to honor Colonel Walsh from Space Force, with a plaque of recognition from Mayor Light and attended Station 2 for the Fire Fighter community event and congratulated Lila Omura, Housing Navigator for being named, " Woman of the Year" and reported the District 3 online community meeting will be later this month.
Councilmember Obagi thanked Councilmember Nehrenheim for organizing the Bill Brand Memorial Paddle -out; announced the District 4 community meeting will be this Thursday and reminded residents that on May 23, 2024, Metro will be making a decision on the C- Line Extension project and encouraged fellow Councilmembers and residents to attend.
Councilmember Behrendt announced the Memorial Day ceremony at Veterans Park.
E. APPROVE ORDER OF AGENDA
Motion by Councilmember Loewenstein, seconded by Councilmember Kaluderovic, and
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approved by voice vote, to approve the order of the agenda, as presented.
Motion carried, 5- 0.
G. BLUE FOLDER ITEMS — ADDITIONAL BACK UP MATERIALS
G. 1 For Blue Folder Documents Approved at the City Council Meeting Analyst Villa reported there are two Blue Folder Items including for Item No. J. 1 and additional information and public communications for Item No. N. 2.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote, to receive and file Blue Folder Items.
Motion carried, 5- 0.
H. CONSENT CALENDAR
H. 1. APPROVE AFFIDAVIT OF POSTING FOR THE CITY COUNCIL ADJOURNED AND REGULAR MEETING OF MAY 14, 2024
CONTACT: ELEANOR MANZANO, CITY CLERK
H. 2. APPROVE MOTION TO READ BY TITLE ONLY AND WAIVE FURTHER
READING OF ALL ORDINANCES AND RESOLUTIONS LISTED ON THE AGENDA
CONTACT: ELEANOR MANZANO, CITY CLERK
H. 3. APPROVE THE FOLLOWING CITY COUNCIL MINUTES:
A. MARCH 19, 2024 ADJOURNED AND REGULAR MEETING
B. APRIL 2, 2024 ADJOURNED AND REGULAR MEETING
CONTACT: ELEANOR MANZANO, CITY CLERK
HA. APPROVE CONTRACTS UNDER $ 35, 000:
1. APPROVE A SECOND AMENDMENT TO THE AGREEMENT WITH FIFTH ASSET, INC. DBA DEBTBOOK FOR USE OF LEASE MANAGEMENT
SOFTWARE TO CAPTURE AND ORGANIZE INFORMATION AND DATA
RELATED TO CITY LEASES IN ORDER TO COMPLY WITH GASB 87 AND GASB 96 ACCOUNTING STANDARDS IN AN AMOUNT NOT TO EXCEED 28, 250 AND TO EXTEND TERM TO MAY 16, 2026
CONTACT: WENDY COLLAZO, FINANCE DIRECTOR
H. 5. EXCUSED ABSENCES FROM VARIOUS COMMISSION AND COMMITTEE
MEETINGS
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CONTACT: ELEANOR MANZANO, CITY CLERK
H. 6. RECEIVE AND FILE THE CITY TREASURER' S QUARTER 3 FISCAL YEAR I+Z1Y* VZ1yZ1104 as] Z4 9
CONTACT: EUGENE SOLOMON, CITY TREASURER
There were no public comments on the Consent Calendar.
Motion by Councilmember Obagi, seconded by Councilmember Nehrenheim, and approved by voice vote, to approve the Consent Calendar as presented.
Motion carried, 5- 0.
EXCLUDED CONSENT CALENDAR ITEMS - None
J. PUBLIC PARTICIPATION ON NON -AGENDA ITEMS
JA For eComments and Emails Received from the Public
Ron Maroko, District 3, spoke about an item discussed at the last City Council meeting regarding allowing cancellation of Commission/ Board meetings for lack of business; felt that it is imperative that City Council be informed, at a minimum, or approve cancellation of a meeting as part of a Consent Calendar item and encouraged Council to add language that requires approval of Council to whatever changes are made to the ordinance; discussed the possibility of having a " Moment of Redondo History" in recognition of former Historical Commissioner Al Aras Mendes, that sits within the constraints of the public comment section of the meeting that talks about the history of the City.
Erick Baer talked about establishing a " No Smoking" ordinance at the Moonstone Home Key Shelter at 716 South Pacific Coast Hwy.; reported speaking with City Attorney Webb who told him it was not possible; referenced a request by Council for a report on the matter and urged the City Attorney and Council to strongly request that Moonstone owner, Century Housing, make Moonstone a " No Smoking" facility as part of the lease agreement.
Motion by Councilmember Nehrenheim, seconded by Councilmember Obagi, and approved by voice vote, to receive and file Erick Baer' s document submission.
Motion carried, 5- 0.
Councilmember Obagi left the Chambers at 6. 35 p. m. and returned at 6. 36 p. m.
Joan Irvine, District 1, spoke about her background in child protection technology and efforts in providing cannabis education for seniors.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and
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approved by voice vote, to receive and file Joan Irvine' s document submission.
Motion carried, 5- 0.
Joan Irvine spoke about protecting children from the adult entertainment and cannabis industries; talked about her radio show and addressed the importance of staying active and healthy aging.
Mickey Johnson and Robin Garfield spoke about their recent Springfest event; thanked the City for its sponsorship; discussed sponsors, vendors, entertainment and community groups.
Niki Negrete- Mitchell, District 3, provided a brief history of the Metro K Line; discussed lack of disclosure, lack of transparency, the callousness of one track thinkers, insults and bullying and thanked City staff and City Council for their help and support.
Jonatan Cvetko, District 1, mentioned public health concerns related to hemp products; noted the City has not addressed how hemp products should be another revenue source; presented samples of legal cannabis products under the Stiizy Brand; shared hemp - related, illegal intoxicating products being sold under the same brand; referenced AB 45 and urged City Council to address this matter expeditiously.
Motion by Councilmember Loewenstein, seconded by Councilmember Nehrenheim, and approved by voice vote, to receive and file Jonatan Cvetko' s document submission.
Motion carried, 5- 0.
Wayne Craig, District 1, spoke about the Fire Station where the spaghetti dinner fundraiser was held being well past its usable lifespan; reported many of his neighbors feel City Council should move ahead with a bond measure; talked about the total costs the City spent trying to do business with Center Cal Properties; mentioned where there is a will, there is a way and urged City Council to move the project forward.
Melissa DeChandt, via Zoom, invited City Council to the Redondo Beach Council of PTAs Annual Awards Ceremony on Monday, May 20, 2024 at 6: 00 p. m. at Redondo Union Theater and announced she is the widow of Al Aras Mendes, former Historical Commissioner; thanked the Historic Commission for recognizing Al Aras Mendes through the Minute in History and expressed her appreciation for the recognition.
Kyle Johnson, District 1, via Zoom, reported that while public transit in Los Angeles County is not the best, it is improving; felt that the more that is built, the better it gets; appreciated that this Council supports public transit and supports building better public transit and discussed the benefits of public transit.
Analyst Villa reported receiving one eComment regarding this item.
There were no other public comments and Mayor Light closed this portion of the meeting.
K. EX PARTE COMMUNICATIONS - None
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L. PUBLIC HEARINGS - None
M. ITEMS CONTINUED FROM PREVIOUS AGENDAS — None
N. ITEMS FOR DISCUSSION PRIOR TO ACTION
N. 1. APPROVE A FOLLOW- UP LETTER TO THE LOS ANGELES COUNTY
METROPOLITAN TRANSPORTATION AUTHORITY ( METRO) REGARDING
THE CITY' S OPPOSITION TO THE HYBRID RIGHT- OF- WAY OPTION FOR
THE PROPOSED C ( GREEN) LINE EXTENSION TO TORRANCE PROJECT CONTACT: LUKE SMUDE, ASSISTANT TO THE CITY MANAGER
Councilmember Behrendt recused himself from this discussion for reasons previously stated and left the City Council Chambers at 6: 48 p. m.
Assistant to the City Manager Smude presented an overview of the item and deferred to Councilmember Nehrenheim.
Councilmember Nehrenheim narrated PowerPoint slides with a history of the Red Car line; addressed agglomeration, future growth, the Redondo Beach and Lawndale Housing Elements, updates to the letter, the current tracks, rail -to -rail bike/walk path breaks and conversion of old train tracks to multiuse trail lines; noted the future for growth, jobs and " Main Street", including residential growth, South Bay growth, jobs, workforce housing, less impacts, less traffic, healthy lifestyles and private sector investment. He reviewed a blue line version of the proposed letter highlighting specific changes.
Councilmember Loewenstein left the Chambers at 7: 00 p. m. and returned at 7: 01 p. m.
Councilmember Obagi spoke in favor of the changes; offered to enlarge the first two slides of the presentation so that Councilmember Nehrenheim can speak to it, at the meeting; spoke about needing to cleanup the letter in terms of formatting and confirmed Council can approve the letter with cleanup.
Councilmember Kaluderovic made reference to previous letters; mentioned the " many virtues" listed in a previous letter; noted this letter details opposition to the hybrid ROW and felt the positive Hawthorne option matters are being muddled with negative items regarding the hybrid ROW.
Councilmember Obagi spoke about doing everything and anything, at this point, to make the City' s case.
Councilmember Kaluderovic mentioned the DEIR does not account for the City' s Housing Element and the housing that is planned for the area and suggested listing the virtues of the Hawthorne Boulevard option at the end of the letter.
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Assistant to the City Manager Smude confirmed that he will make the changes as discussed, to the letter.
Councilmember Obagi offered to work with Assistant to the City Manager Smude to incorporate the changes proposed and as discussed.
Motion by Councilmember Obagi, seconded by Councilmember Kaluderovic, to tentatively approve the letter, as amended, subject to administrative review and reorganization.
Mayor Light opened public comments.
Kevin Mitchell, District 3, thanked City Council for the letter and their efforts in this matter; spoke about the Metro C Line extension project DEIR avoiding the topic of freight and LRT sharing the same footprint; reported that during construction, Metro will begin track modifications during the day and run the train at night.
Niki Negrete- Mitchell, District 3, stated that may be why the hybrid option was misconstrued as a compromise; referenced a suggestion by a former Councilmember for a ROW trenched option; felt that may be why the hybrid option was misconstrued as a compromise; talked about hazards of the ROW option; suggested replacing " fear and anxiety" in the letter, to " health risks, systemic mental and emotional"; wished the letter leaned harder on unstable soil and recent property damage that occurred with routine pipeline maintenance and highlight depreciation for all homes. Additionally, she replied to questions from Councilmember Obagi regarding observation of homeless encampments along the ROW in the last two months.
Councilmember Loewenstein referenced Page 3 of the letter and questioned the statement about the "Pallet Shelter sites could quickly be sold or leased to easily satisfy a major part of our Housing Element obligations with much needed revenue flowing to the City" and asked for clarification.
Councilmember Obagi explained those are sites owned by the City; reported if the Metro stop is placed in the ROW, next to the Transit Center, the only available opportunities to develop land are around the site and the only place that is open and available is the Pallet Shelter site, the Public Works yard and the Frontier property. He added that they are making it appealing for the City to upzone that area and generate revenue from that site rather than continue to have that as the Pallet Shelter and use empty parking spaces along the South Bay Marketplace in the Galleria, as transit -oriented development (TOD).
Councilmember Loewenstein mentioned that if that happened, it would be a positive for the City and talked about it being a negative as well.
Councilmember Obagi added that it would be a negative in that the City would need to kick people out of the Pallet Shelter to make more economic use of the land.
Councilmember Loewenstein suggested language that, " We would lose the only opportunity to house unhoused people in the area by placing a transit stop there".
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Councilmember Obagi agreed with that revision to the letter.
Councilmember Kaluderovic left the Chambers at 7: 15 p. m. and returned at 7: 17 p. m.
G. Seddeth, District 5, mentioned discovering a video of the process of creating a trench for an underpass; encouraged everyone to see it and stated he will share it with Council; spoke favorably about Councilmember Nehrenheim' s presentation and commended Council for its work on this topic.
Kyle Johnson, District 1, via Zoom, spoke in opposition to the letter; reiterated that he favors the ROW option and listed the reasons for doing so; alleged a failure of imagination of the City Council in the presentation; felt walkable spaces and the ROW option can co -exist; proposed changing the Housing Element along the C- Line and rezoning the community around this project; talked about the possibility of relocating the Pallet Shelter and building more housing by the Transit Center and urged Council to think deeper about the problems facing the community.
There were no other public comments on this matter.
Councilmember Obagi encouraged residents to go to www.redondo.org/ metrobus and sign up for the shuttle to the Metro Board meeting; discussed an aerial view of a property on the ROW, on Condon, and reported that Metro sent people down the ROW, purportedly to clear out homeless encampments and noted the City is moving towards zero functional homelessness and there are no homeless encampments in Redondo Beach. Additionally, he reported that Metro posted signs on an adjacent private property and has been harassing the owners of the property; stated the property owners paid a surveyor to mark their property line who determined that it was their property and felt that is evidence that Metro knows little about the ROW, boundaries and where its easement ends, which is unfortunate and shameful.
Mayor Light left the Chambers at 7: 25 p. m. and returned at 7: 27 p. m.
Councilmember Loewenstein noted that Hawthorne is a highway, not a freeway and stated he does not know about lack of imagination, but felt it is crazy to place noise pollution in people' s back yards versus on a State highway, which would be more appropriate and affirmed support for public transit, but in the right place.
Councilmember Obagi reported there is no other vacant property, controlled by the City, where it could relocate the Pallet Shelter.
Councilmember Nehrenheim talked about the Housing Element and its cycle; noted the importance of having an approved Housing Element, going forward; asserted it takes time and work to get it approved and cannot be changed randomly and spoke about the importance of taking the City's and Lawndale' s Housing Elements into consideration.
The motion as previously stated was approved by voice vote.
Motion carried, 4- 0- 1. Councilmember Behrendt was recused.
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Councilmember Behrendt returned to the City Council Chambers at 7: 28 p. m.
N. 2. DISCUSSION AND POSSIBLE ACTION ON THE PROPOSED UPDATES TO
THE CANNABIS REGULATORY ORDINANCES AND APPLICATION
GUIDELINES
CONTACT: ELIZABETH HAUSE, INTERIM COMMUNITY SERVICES
DIRECTOR
Interim Community Services Director Hause introduced the item; provided a brief background and addressed tonight' s process.
Mayor Light proposed having each Councilmember focus on the seven policy areas in the report and generate questions to submit to staff who can then forward them to the consultants who can provide responses and noted that the City Attorney' s assessment is missing.
Interim Community Services Director Hause reported the seven areas were selected because they will help to frame other sections of the ordinance.
City Attorney Webb stated it will help so that Council does not get an extensive white paper from him on all the litigation threats for any type of ordinance; spoke about reviewing policy issues that Council needs to address that will help to frame the ordinance. He asked Council to focus on the seven areas and not on the ordinance since it has changed dramatically since the draft was previously discussed and suggested that Council give direction on the seven areas which will help speed the process along.
Councilmember Behrendt pointed out other issues with the ordinance and in reply to his question about when those will be addressed, City Attorney Webb reiterated that Council should focus on the seven areas for him to begin drafting and moving forward if there are any other issues where he would need direction to complete the legal analysis and prepare a final draft to return as a discussion item.
Councilmember Behrendt commented on how the matter has dragged and on the need to bring it to a head.
City Attorney Webb clarified it would likely return to City Council, post budget.
Mayor Light agreed with the need for expediency on this issue.
Interim Community Services Director Hause deferred to the City' s consultant, Tierra West Advisors for a review of the City' s Commercial Cannabis Ordinance.
John Yonai, Principal, Tierra West Advisors, introduced the item.
Jason Chiang, Sr. Associate, Tierra West Advisors narrated a PowerPoint presentation
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with details of their review of and proposed updates for the City's Commercial Cannabis Ordinance.
Discussion followed regarding conducting retail without possession or without processing or storing, differences in storing on shelves versus the storing and handling of raw materials, whether the City will be flexible enough to adapt to the rapidly changing business, the City' s ability to amend the ordinance in the future to add services, the possibility of someone overlooking Redondo Beach if the current language requirements in the ordinance are removed, industrial areas in Redondo Beach that would allow for the laboratory testing, manufacturing and distribution of cannabis products and whether the sector is oversaturated.
Consultant Chiang continued with the presentation requesting direction regarding the process to consider allowing permittees to relocate business operations following the issuance of a permit.
Mayor Light noted that to allow permittees to move without City Council input seems counterintuitive.
Councilmember Nehrenheim suggested requiring to be in a particular location, a minimum of three years and if they wanted to move, they would need to repeat the process and talked about the need to consider potential issues with neighbors.
Councilmember Loewenstein agreed; added that location is one of the most important decisions Council could make and would not want to leave it up to the Permit Administrator.
Councilmember Behrendt agreed that location is important; expressed concerns about allowing movement of location without City Council input and stated he would like to hear more before making a final decision.
Councilmember Obagi agreed with everything that has been said but asked that whatever criteria is used to judge the first location, apply for the second location.
Councilmember Kaluderovic agreed that if the location is part of the criteria, there needs to be consistency about any changes to that.
Mayor Light took a straw poll resulting in 5 Councilmembers favoring to maintain the requirement of City Council approval of the location, that a minimum time requirement to stay at a location is included, that clear parameters be established, that the criteria that applies for the first location, apply to the second location and to be consistent.
Consultant Chiang addressed final selection of permittees and how appeals will be managed, listed options for City Council and recommendations including keeping the existing language, shifting final permit selection to the Permit Administrator or update the current process to limit the top five applicants with Council interviewing and selecting the permittee( s). He added that the question centers on who will make the final decision.
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Mayor Light requested clarification.
Consultant Yonai suggested that Council consider using the rubric, applying the process to get the ranking of the applications and then the top five would be submitted for Council' s consideration and reported the decision would be at the discretion of City Council.
City Attorney Webb added that looking into the litigation process is one of the topics that keeps coming up over and over again; noted this is something important; reported that he favors a slightly different version because there are issues with three Councilmembers interviewing and selecting the permittee; mentioned the scoring rubric; and noted that the more subjective the criteria, the higher the probability of having a legal challenge; stated that with Council' s approval, he would like to explore hearing appeals from decision makers below on due process issues, having the Permit Administrator or designee, rank the top five on the scoring rubric, then it would not be totally discretionary, but it would be Council, sitting as an appeal board, determining if the scoring factors were misapplied. He added that is another way they can make a decision, but Council sets the rules and appeals can go to Council as opposed to Superior Court. He added there is no perfect way to do this.
Mayor Light confirmed that Council makes the final source selection.
Councilmember Nehrenheim spoke about recently selecting a vendor for a new audit group; spoke in favor of the scoring process with a built- in appeal process, while also giving maximum discretion, flexibility and control to Councilmembers. He added that as long as it is presented to Council in a ranked form and in order, he will give his support.
City Attorney Webb stated those are two slightly different approaches; urged Council to consider the rules for passing judgement; explained the options for the selection process, the appeals process; suggested the need to be specific in terms of the level of discretion Council is exercising and asserted the less discretion, the unhappier residents may be and noted that the more discretion Council allows itself, the greater the chances that the City will be sued.
Councilmember Behrendt stated this is a big decision and City Council should make it; acknowledged that the more objective the process, the better; spoke about the need to establish criteria justifying Council' s decision and spoke about the importance of protecting the City from litigation.
Councilmember Obagi expressed concerns about having to select five applicants.
Consultant Yonai talked about allowing the City as much flexibility and input as possible; added that to give Council just the top two might not be satisfying for Council, as a decision body, not knowing the background and stated they will try to do as much due diligence as possible as to those two or five that are moving forward.
Discussion followed regarding having one retail business in North Redondo and another in South Redondo and the possibility of having one per district.
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Councilmember Nehrenheim spoke about choosing the top five, stated he could see the top place finisher and then the next two being in the same district, and they would not get to move forward, it would be the 4th place finisher that is in a different district.
Consultant Yonai indicated that would need to be evaluated because locations are unknown, currently; hoped applicants would read the requirements and apply from different districts and talked a lot of other issues that need to be discussed and brought forward to Council for policy decisions and spoke about getting the discussions started now, to move the item forward.
City Attorney Webb reiterated comments about applying the scoring rubric that staff used for ranking or having more or less discretion and the consequences of each; mentioned these are some of the issues for which staff needs City Council direction in order to develop the ordinance.
Councilmember Loewenstein stated he favors the rubric; expressed concern regarding the location adding that the City may choose a great operator, but a bad location.
Mayor Light reported he has done hundreds of source selections that have had a rubric associated with them; asserted they all involve some level of subjectivity and assigning of points and while the points look great and objective, you cannot make an ironclad rubric for something like that.
Councilmember Loewenstein stated you can get around that by having a heavily weighted location over other things.
Mayor Light added that you could have a bad operator with a good location.
City Attorney Webb stated that one of the possibilities is to only consider one location and the landlord has five different options for five different operators, which operator would be allowed?
Councilmember Behrendt wondered about the possibility of limiting Council' s discretion to reduce the likelihood of a challenge, but still giving the Council the opportunity to give input on 2 or 3 issues including on the location.
City Attorney Webb spoke about specificity and objectivity being more defensible than general, unspecified rationale; asked Council to let him know what it prefers, and he will give his legal opinion and prepare a draft listing the challenges.
Mayor Light asked if anyone favored the appellate model where the administrator makes a choice and Council is the appeal body and noted that apparently Council favors some type of Council control where it gets to weigh in and those details can be worked out.
Councilmember Obagi noted that Council does not like getting information on Friday for an item to be decided on the following Tuesday; suggested that since this is something that would require community input and Council wants to give substantiation in its
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decision making, thus disclosing to applicants that it will take time before the item will be going to Council for its decision.
Consultant Chiang addressed the CCB permit term.
Councilmember Behrendt discussed the permit term and giving City Council sole discretion to extend a permit or not, not the administrator.
Councilmember Obagi favored TWA' s recommendations because if a cannabis retailer is a problem shop, then the City Manager and the Program Administrator will know about it well before the five years come up and hopefully, there will be objective criteria for the two year renewal then he/ she will deny the renewal, but for the long term Council should be involved.
Councilmember Nehrenheim favored TWA' s recommendations; noted it allows for checkpoints and suggested that if an operator is doing well they can apply for a five year permit.
Discussion followed regarding typical agreement terms.
Councilmember Loewenstein suggested five years and agreed with giving the responsibility to the Permit Administrator.
Mayor Light took an informal poll resulting in 3- 2 favoring TWA' s recommendations and having the Permit Administrator extend agreement terms.
Consultant Chiang continued with the PowerPoint presentation addressing direction on whether a community benefit plan should be included/ scored in the application process.
Mayor Light reported he considered a community benefit plan; agreed that it can be very subjective and political and noted he does not support requiring a community benefit plan.
Councilmember Nehrenheim listed reasons for supporting a community benefit plan; having vendors prove they want to be invested in the community, long term and how they plan to integrate themselves with the community.
City Attorney Webb spoke about this being different than the neighborhood compatibility plan; noted this is the money that they voluntarily pledged and if they do not pay it, there is nothing that can be done.
Mayor Light spoke about the need to change this into something that is reportable and verifiable.
Councilmember Obagi pointed out that the City has not designated any money towards youth education and substance abuse prevention; talked about a community benefits package where 1 % is set aside toward prevention education; addressed the ability to audit; asserted it will reduce the risks associated with this endeavor; noted that if the City
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were to receive the 1 %, it will not be in a position to embark on an education campaign for the youth and felt that the cannabis industry is better suited to do that.
Councilmember Loewenstein spoke about keeping the requirement for a community benefits package to encourage good corporate citizens who are involved with the community; alleged that if they did not contribute the 1 %, it would be bad publicity and a poor decision. He added that another group of people to provide " teeth" is a good thing; noted this is not just a " money grab"; discussed benefits to the community by having retail and felt the requirement should remain.
City Attorney Webb stated the way it reads now, it is a voluntary pledge to pay for City sponsored activities, not paying outside nonprofits and Council could limit it to certain City sponsored activities but Council may deny the extension but cannot revoke their permit for failure to keep a voluntary pledge.
Discussion followed regarding the possibility of setting the 1 % community benefit as a mandatory contribution.
Councilmember Obagi reported it would be like a CUP where an operator is being allowed the permit, on a given condition that 1 % will go towards youth substance abuse prevention.
City Attorney Webb indicated he wants to research the item; pointed out that the language that has been used from other cities is a voluntary pledge and talked about City sponsored versus non -City sponsored activities.
Discussion followed regarding defining activities covered under the 1 %; seeking examples from other cities and their mandatory community benefit plans and ways to implement this by the Federal government.
Councilmember Kaluderovic spoke in support of folding this into the tax rate and having Council be in control of this issue; noted the City does not ask this of other businesses and is creating unnecessary hoops for retailers to jump through.
Councilmember Nehrenheim reported every other city has gotten this done; suggested letting them decide and produce imaginative ways and ways this is done in other cities that are effective, and Council can make a contractual obligation and include an annual review.
Mayor Light presented three options including folding it into the tax rate and the City administers it, maintaining the way that it was written where it is something they submit but not something Council can hold them to and a hybrid, where they submit the plan, Council scores it and includes it in the contract and monitors it.
Council majority favored the hybrid option.
City Attorney Webb spoke about the purpose and intent of monetary donations to support City sponsored activities and programs.
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Discussion followed regarding giving general direction now and more specific direction later.
In reply to Councilmember Behrendt's question, Consultant Yonai talked about difficulties in enforcing a non -tax item; expressed interest in seeing how the City Attorney could make it mandatory and reported many cities have encountered the issue of making the community benefit collectible. He acknowledged the City has a tax rate, up to 9%; felt the intent is to give the operator a 7% tax plus a 1 % tax and stated he is unsure about the verbiage, but that it could be done.
Discussion followed regarding an operator setting up their own nonprofit and giving themselves the money.
Consultant Yonai spoke about the need to include some type of criteria in the continued management and operation of the facility where the City sees what activities are taking place and how to enforce those.
In reply to Councilmember Obagi' s question regarding whether a 1% tax could be used effectively for educating youth on substance abuse and prevention, Interim Community Services Director Hbuse, noted that the City could certainly use more money for youth education and programing, but she has not had a moment to determine what the programming would look like. She added that direction would be needed from Council and spoke about partnering with the School District and others to carry out the programs.
Consultant Chiang addressed direction on setting the retail cannabis sales tax rate; reported Council has the ability to choose from a range of 3% to 9% that incorporates a community benefits aspect; talked about resources needed in the City to ensure the program runs well; proposed other options including a range from 5% to 15%; felt that a 5% floor is appropriate and discussed case studies from other cities.
Consultant Yonai stated Redondo Beach is in a unique position as it is a destination; noted he does not believe the City has a sufficient population of cannabis users that will get the sales that the retailers would be reliant on; reported that when visitors come, it is similar to paying a hotel tax rate that varies from city to city; felt that customers will not see the 3% or 5% and it will not stop them from making the purchase and opined visitors are more likely to impulse buy and the City has an opportunity to capitalize on it.
Councilmember Loewenstein agreed; talked about pricing, product and placement; stated hotels charge more for food because they can; felt that 6% is more tolerable; suggested withholding the tax and indicated his preference is 6% plus 1 %.
Councilmember Nehrenheim stated that just because you can do something, does not mean you should do it; noted voters were told there would be a 5% tax; felt it is a bait - and -switch; talked about some industry members asking for a bailout and other cities are reducing the pricing; opined it only makes the end project more expensive, which makes the black market more appealing and cheaper; noted it is a value added tax, not a sales tax and indicated he is not in favor of it. He added he wants to keep it at 5%,
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which makes the City competitive and noted the City can always increase the tax later.
Councilmember Behrendt felt that out of the seven items being discussed, this is the most important and stated the last thing the City wants to do is push residents into the black market, the untested market and into the unsafe and dangerous market by piling on additional expenses; asserted he is not in favor of that, and is in favor of revenue, but not at the expense of something as serious as this. Additionally, he talked about the retail cannabis industry being in a freefall; noted the cannabis excise tax, which he thinks is 15%, and will be increasing to 19%; reported the market is over saturated and wondered about the success of an operator if the City piles on more expenses. Lastly, he asserted the City is doing this for Redondo Beach residents, who are not super rich, and the more expenses are added for the operator the more expensive it will be for residents. Councilmember Behrendt commented on the City being a destination town reported the tax in Malibu is at 2. 5%; indicated he is cautious of adding any tax above 3% and suggested holding off for six months or a year to allow cannabis operators to get established in the City and be successful and the tax can be adjusted later on. He explained he would prefer 0%, if possible and City Attorney Webb stated he would need to research that possibility.
Councilmember Kaluderovic agreed with Councilmember Behrendt' s comments; spoke about needing to remove illegal operators from the community for the safety of our students.
Councilmember Loewenstein pointed out the RBPD will be involved, which will cost the City money and thought the point was to generate revenue for the City.
It was noted the range on the ballot was 3% to 9%.
City Attorney Webb stated he will research whether it can be 0% and noted that if Council defers it, it will, in effect, be 0%.
Mayor Light' s informal poll resulted in 3 in support of 3%, 1 in support of 3% to 9% and 1 at 6% plus 1 %.
City Attorney Webb referred to the discussion regarding the community benefit plan; reported the community benefit plan was originally 100 points and 80 of those points was for a voluntary pledge for City sponsored activities; stated the other 10% which would be enforceable, where he would not need to research it further was up to 10 points for a " description of a social responsibility plan to include identification of the community liaison and plans to aid and participate in the work of local nonprofits, community based organizations, civic organizations or social service organizations and another 10 points or up to a description of a plan to develop a public health and educational program that outlines the risk of youth use of cannabis and identifies resources available to drugs and drug addiction". He commented on making the last part, enforceable; noted it goes to the Mayor' s point in terms of making it political and to others' point to keep the outreach and education.
Councilmember Loewenstein stated if Council decides on 3% and 1 % goes to charity,
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that would be 50% of all revenue is going to charity.
Consultant Chiang discussed direction on whether to include site selection and the attainment of property as part of the CCB application criteria.
Mayor Light asked if anyone is not in favor of including site selection and the attainment of property as part of the CCB application criteria, there was no response and Mayor Light did not feel a report is necessary.
Consultant Chiang listed the benefits of requiring site selection and offered to respond to questions from Council about site selection.
Mayor Light invited public comments.
David Rosenfeld, District 2, Supreme, future applicant for a Redondo Beach retail cannabis license; spoke in support of the proposed changes by Tierra West and urged Council to move forward with the selection process as soon as possible; felt a term of five years is reasonable and in line with most commercial leases and agreed with the community benefit being rolled into the tax as that ensures that the City will collect the money. Additionally, he expressed support for the changes relative to requiring site selection; spoke about safety and security and recommended a total tax of 8% ( 7% plus 1 %) including the community benefit. In reply to Councilmember Nehrenheim' s questions, he stated the group currently has no other licenses but have operated cannabis dispensaries in the past and they were paid up on their taxes and fees.
Leslie Evans Burthey, District 1, spoke about the importance of the City creating a process that ensures that business locations are compatible with the character and values of the City's neighborhoods; voiced her support for a strictly merit based selection process for retail cannabis licensing in Redondo Beach if retail cannabis is coming to Redondo and felt the City owes itself and residents to do its best to welcome the best, most qualified and responsible operators to the City, ensuring that the City and residents receive the most benefit from operators. Additionally, she feared that Redondo Beach will lose out on the most qualified and responsible applications if a lottery or non -merit based process is adopted; spoke in support of a process that prioritizes accountability, excellence and community benefit; agreed that requiring property in the evaluation process is critical; addressed empowering Council to address the totality of the application and talked about the importance of maintaining the community benefits portion of the application. She responded to Councilmember Nehrenheim' s question noting she does not plan to apply for a cannabis license.
Marci Klein, Klein Creative Media, spoke in support of a merit -based process, the proposed rubric and requiring property as part of the application process and talked about getting the most qualified operators.
Stephanie Uy, Vice President of Public Affairs, Expansion, Stiizy, reported that the company shut down all hemp operations in December 2023 and no longer manufacturers hemp projects; talked about challenges with hemp projects; noted the cannabis market has been struggling; stated that despite that, Stiizy has been able to
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stay afloat and succeed; addressed their retail stores and community benefit agreements and responded to Councilmember Nehrenheim' s questions noting they plan to apply for a cannabis license in the City, have other retail operations and are current with their taxes and fees.
Devon Wardlow, Vice President of Public Affairs, Embark, spoke about their retail cannabis operations; reported all have been through merit -based processes; noted she is enthusiastic to see the City continues to support a strict merit -based process; reiterated her support of the recommendation to update the current process to limit the top applications to a maximum of five with Council interviewing and choosing the permitee( s), to require property as part of the selection process, to evaluate the operator' s track required as well as overall compatibility and feasibility of their proposed location; urged Council to prioritize operators that have collective bargaining agreements in place as opposed to labor peace agreements; cautioned against removing the community benefits requirement from the application process and commented on the importance of youth drug prevention programs. Additionally, she responded to Councilmember Nehrenheim' s questions noting they plan to apply for a cannabis license in the City, have other retail operations and are current with their taxes and fees.
In response to Councilmember Obagi' s question, Devon Wardlow reported that in South Lake Tahoe, the put all tax revenues into the General Fund, set up a separate grant program where local non -profits do youth prevention work and apply for grants, from the funding specifically for drug prevention.
Jonatan Cvetko, District 1, encouraged Council to continue the conversation when it comes to the selection process; discussed things considered by the Advisory Committee and why they made the decision to not have property requirements; addressed practices in the City of Riverside; reported the owners of Embark threatened him against commenting negatively about them at this meeting; talked about residents in the City of Fresno getting Embark' s CUP pulled from one of their applications, referenced Proposition 218 noting it is illegal to have a revenue generating fee that comes back into the City unless it was passed by the residents and thanked City Council for asking the right questions.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote, to receive and file Jonatan Cvetko' s document submission.
Motion carried, 5- 0.
Joan Irvine, District 1, mentioned community benefits and spoke about ensuring that it just does not go towards youth prevention, but also on senior education; noted there are a lot more people consuming cannabis in Redondo Beach than people think; talked about starting with deliveries; reported the black market sells to children; addressed creation of jobs and urged Council to move this forward. She added that she does not plan to apply for a retail cannabis license.
Robin Eisenberg spoke about the importance of requiring a location in the application process; addressed security, taxes and voiced support for a community benefit
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requirement. She reported she has a small interest in a company that plans to apply for a retail cannabis license in the City; stated they sold the company to Jay-Z and commented on payment of their taxes.
Eugene Solomon reported speaking with various cities and cannabis operators; stated they are up to date with their taxes or were addressing it with Councils through their CUPs however it is built into the system. With regard to the decision makers, when the City Administrator brings five applicants to Council, he mentioned not having any elected officials involved in that process and felt it would be a good idea. In terms of City Council having discretionary opinions, he felt, there will be a lot of back and forth; stated there will be people who come making independent expenditures, spending a lot of money as was seen in recent elections, to try and influence people; requested to flush the matter a bit more, when it comes to the taxing part of it and adding the 1 % community engagement fee and asked how the tax will be assessed.
Melissa DeChandt, District 1, Director of Health & Community Concerns, 33rd District PTA, spoke for the youth of the community; expressed concerns regarding the normalization of cannabis; worried about safe routes going to school, about every single time a child rides a bike, a scooter, a skateboard, or walks by a dispensary or an outlet, every time they see a billboard and every time they see the marketing information; addressed a study that demonstrated that the more times children are exposed to billboards, the more times they walk by a dispensary or they see the signage, the more likely they are to use cannabis by the 6th grade. She urged Council to consider delivery at this time; noted that is money that is sitting on the table and questioned why the City does not have a tax rate to collect those revenues. Additionally, she urged Council to slow down, to be thoughtful in doing this right.
Councilmember Behrendt spoke about prior discussions about reviewing AB 195 and to explore taxing deliveries.
Interim Community Services Director Hause reported that Hermosa Beach is only pursuing taxing and permitting delivery, they created a process and application posted online, but in terms of getting access to the track and trace program managed by the Cannabis Control Department, they have been denied access twice so far and the reasoning provided is not particularly clear. She added that their City Attorney is looking at it, but they have hit a snag; discussed the City of Thousand Oaks and trying to determine if they were able to gain access to the track and trace program successfully because they also have a separate program just for delivery services within their City.
She added that Hermosa Beach has a program that is volunteer based, and no one has volunteered to register with the city, yet.
Councilmember Behrendt wondered how taxes would be collected on deliveries.
Mayor Light suggested making a referral to staff to return with a discussion about delivery but that at this time, it is not part of the discussion.
Councilmember Behrendt pointed out that was one of the recommendations about storefront and delivery.
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Interim Community Services Director Hause reported the item will return to City Council, soon.
Analyst Villa reported receiving one eComment against the item.
There were no other public comments on this item.
In reply to Councilmember Obagi' s question regarding the source of the language quoted earlier by City Attorney Webb, Interim Community Services Director Hause reported it was in the first draft of the red lined version from TWA and offered to return to her office while Council discusses other items and return with the information.
Regarding No. 1: Final direction on the Cannabis Business Types included ( allowed) in the ordinance.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein to leave the current Ordinance in place to allow for expansion in this sector.
Discussion followed regarding TWA' s recommendations and making simple motions.
Councilmember Nehrenheim rescinded his previously stated motion.
Motion by Councilmember Nehrenheim, seconded by Councilmember Obagi, and approved by voice vote, to accept TWA' s recommendations to only have retail storefront and retail deliveries.
Motion carried, 5- 0.
Regarding No. 2: Direction regarding the process to consider allowing permittees to relocate business operations following the issuance of a permit Motion by Councilmember Nehrenheim to not allow permittees to relocate the business within the first three years and asked for input about the desired number of years.
Motion died for lack of a second.
Motion by Councilmember Obagi, seconded by Councilmember Loewenstein, and approved by voice vote, to have City Council retain the discretion using the same objective criteria used for the initial selection for a minimum of three years.
Councilmember Behrendt and Kaluderovic had concerns as they believed three years was an arbitrary number.
Motion carried, 3- 2. Councilmembers Behrendt and Kaluderovic were opposed.
Regarding No. 3: Direction on how the final selection of the permittees occurs and, by extension, how appeals are managed
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Motion by Councilmember Nehrenheim, seconded by Councilmember Obagi, and approved by voice vote to accept TWA' s recommendations to update the current process to limit the top applicants to only five ( 5), with Council interviewing and selecting permittees.
Discussion followed regarding the need for further information on the standards to use, whether Council wanted to have the same criteria, reducing the weight of the community benefits plan, deferring the community benefits plan, ensuring that Council gets the final word and having the City Attorney provide written opinion that would provide liability options of the two different ways of doing it.
Councilmember Kaluderovic confirmed that at that point, Council could limit the criteria.
Motion carried, 5- 0.
Regarding No. 4: Direction on the length of the CCB permit term.
Councilmember Nehrenheim noted a business license is separate from the cannabis license and commented on being able to deny a business license after two years.
Discussion followed regarding TRW' s recommendations, deciding on whether it goes to Council or the Permit Administrator,
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote, to accept TWA' s recommendations of 5- year term with option to renew for an additional two 2- year terms ( done by the Permit Administrator); permits that are extended twice administratively may request an extension of up to five years by application to the City Council.
Councilmember Behrendt was opposed as he believed the 2- year term should be done by City Council.
Motion carried, 4- 1. Councilmember Behrendt was opposed.
Regarding No. 5: Direction on whether a community benefit plan should be included/ scored in the application process.
Motion by Councilmember Nehrenheim, to keep the community benefit plan as part of the application process.
Mayor Light noted Council voted on a hybrid, 3- 1.
Councilmember Obagi asked Councilmember Nehrenheim to wait on the motion until after language is edited.
City Attorney Webb reviewed the current language; suggested it may address all of Council' s points to keep the paragraph starting with " The remaining 20 of the 100 points" and eliminating the first paragraph, making it a contractual obligation that permits may
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be revoked if they do not comply with the community benefits plan.
Discussion followed regarding tabling this matter to allow for additional feedback and providing direction at this time.
Discussion ensued regarding this matter among the City Council, Tierra West, and City Attorney Webb regarding clarification, options, areas that require additional research by the City Attorney' s Office, etc. There was discussion about whether to include a rubric with specific instructions and points, and whether to include percentages into tax rates, as well as, pledges, compliance, and enforceability methods ( contractual obligations).
City Attorney Webb stated he will research the matter; suggested the motion could include making ( a) and ( b) of the ordinance, the community benefits plan and direct operators to offer and some amount that goes to some unspecified plan that will be set aside for a community benefits plan that is enforceable as a contractual obligation or a condition.
Motion by Councilmember Obagi, seconded by Nehrenheim to make items ( a) and ( b) of the ordinance as part of the community benefits plan and for the operator to make it part of their Community Benefit plan to offer a percentage to allocate towards this item if the City is able to make this part of the application requirements, and then this commitment be a condition and contractual obligation.
The City Attorney stated that if this passes, then he would research it because he is not aware of any city that has done this type of requirement before.
Councilmember Obagi responded that if not, the City could add an additional percent that can be agreed to, to the general tax.
Councilmember Obagi expressed continued concerns regarding proposed item ( b).
City Attorney Webb suggested it could be a condition of their CUP.
The City Council requested for the City Attorney to research ( a) and ( b). Staff will refigure the percentage regarding scoring, rather than 80%.
Councilmember Behrendt believed the matter needs for review.
The motion carried, by voice vote, 3- 2. Councilmembers Behrendt and Kaluderovic were opposed.
The motion carried, by voice vote, 3- 2. Councilmembers Behrendt and Kaluderovic were opposed.
Regarding No.6 — Direction on setting the retail cannabis sales tax rate.
Motion by Councilmember Behrendt, seconded by Kaluderovic, to set a tax rate of 3%, to be implemented after 12 months of operation.
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Substitute motion by Councilmember Obagi, seconded by Loewenstein, to set a tax rate at 5%, with no deferral.
Substitute to Councilmember Obagi' s substitute motion by Councilmember Behrendt, to set a tax rate of 3%, with no 12- month deferral.
Councilmember Behrendt' s substitute to the substitute motion died for lack of a second.
Substitute to Obagi' s substitute motion by Councilmember Nehrenheim, seconded by Councilmember Obagi, to set a tax rate at 4%, with no deferral.
Councilmember Behrendt offered a friendly amendment to Councilmember Nehrenheim' s substitute to the substitute motion, to set the tax rate at 3%.
Councilmember Nehrenheim did not accept.
Motion failed, by voice vote, 2- 3. Councilmembers Behrendt, Kaluderovic, and Loewenstein were opposed.
The City Council returned to Councilmember Obagi' s substitute motion.
Motion failed, by voice vote, 4- 1. Councilmembers Behrendt, Kaluderovic, Loewenstein and Nehrenheim were opposed.
A friendly amendment by Councilmember Nehrenheim to Councilmember Behrendt' s previous motion was accepted.
Councilmember Behrendt amended motion, seconded by Kaluderovic, and approved by voice vote, to set a tax rate of 3%, no deferral.
Motion carried, 3- 2. Councilmember Loewenstein and Councilmember Obagi were opposed.
Regarding No. 6 — Direction on whether to include site selection and the attainment of property as part of the CCB application criteria.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote, to require site selection as part of the application process.
Motion carried, 5- 0.
O. CITY MANAGER ITEM
City Manager Witzansky reported that public Wi- Fi has been installed on the International Boardwalk at the Pier and thanked staff.
P. MAYOR AND COUNCIL ITEMS - None
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Q. MAYOR AND COUNCIL REFERRALS TO STAFF
Councilmember Obagi asked to agendize a discussion on a general obligation bond for the City' s infrastructure needs.
Motion by Councilmember Obagi, seconded by Councilmember Loewenstein, and approved by voice vote, to direct staff to add discussion item regarding a general obligation bond for the City' s infrastructure needs.
Motion carried, 5- 0.
Councilmember Behrendt requested a BRR on replacing the wood chips on the playground at Dale Page Park with rubberized surfacing.
R. RECESS TO CLOSED SESSION — 10: 00 p. m.
Motion by Councilmember Obagi, seconded by Councilmember Nehrenheim, and approved by voice vote, to recess to Closed Session, to review Closed Session Agenda Item Nos. R. 9 and R. 18.
Motion carried, 5- 0.
City Manager Witzansky stated that Closed Session will include Rick Hayden, Outside Consultant, Diane Strickfaden, Human Resources Director, and Interim Fire Chief Patrick Butler.
Analyst Villa read the Closed Session Agenda Item titles.
The City Council recessed to Closed Session at 10: 00 p. m.
R. 9. CONFERENCE WITH LEGAL COUNSEL - PUBLIC EMPLOYEE PERSONNEL MATTER/ EVALUATION - The Closed Session is authorized by the attorney - client privilege, Government Code Section 54957( b).
Title: City Manager
R. 18. CONFERENCE WITH LEGAL COUNSEL AND LABOR NEGOTIATOR - The Closed Session is authorized by the Government Code Sec. 54957. 6.
AGENCY NEGOTIATOR:
Mike Witzansky, City Manager
Diane Strickfaden, Director of Human Resources
EMPLOYEE ORGANIZATIONS:
Redondo Beach Firefighters Association
S. RECONVENE TO OPEN SESSION — 12: 34 a. m.
Mayor Light reconvened the meeting from Closed Session to Open Session at approximately 12: 34 a. m.
REGULAR MEETING
MINUTES - CITY COUNCIL
Tuesday, May 14, 2024
ROLL CALL
Councilmembers Present: Behrendt, Kaluderovic, Loewenstein, Nehrenheim, Obagi Mayor Light
City Manager Witzansky announced there was no reportable action for the two Closed Session Agenda Items discussed.
T. ADJOURNMENT — 12: 34 a. m.
There being no further business to come before the City Council, motion by Councilmember Obagi, seconded by Councilmember Nehrenheim, and was approved by voice vote, to adjourn the meeting at 12: 34 a. m., to an Adjourned Regular meeting to be held at 4: 30 p. m. ( Closed Session) and a Regular meeting to be held at 6: 00 p. m. ( Open Session) on Tuesday, May 21, 2024, in the Redondo Beach City Hall Council Chambers, 415 Diamond Street, Redondo Beach, California.
Motion carried, 5- 0.
All written comments submitted via eComment are included in the record and available for public review on the City website.
Respectfully submitted:
DocuSigned by:
72F2AC716C214CF—
Eleanor Manzano, CIVIC
City Clerk
REGULAR MEETING
MINUTES - CITY COUNCIL
Tuesday, May 14, 2024