REGULAR MEETING
MINUTES - CITY COUNCIL
Tuesday, October 8, 2024
Minutes
Redondo Beach City Council
Tuesday, October 8, 2024
Closed Session - Adjourned Regular Meeting 4:30 p.m.
Open Session –Regular Meeting 6:00 p.m.
4:30 PM - CLOSED SESSION – ADJOURNED REGULAR MEETING
A. CALL MEETING 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: Kaluderovic, Loewenstein, Nehrenheim, Mayor Light Councilmembers Absent: Obagi, Behrendt
Officials Present: Mike Witzansky, City Manager
Melissa Villa, Analyst
C. SALUTE TO THE FLAG AND INVOCATION - NONE
D. BLUE FOLDER ITEMS – ADDITIONAL BACK UP MATERIALS
There were no Blue Folder Items for Closed Session.
E. PUBLIC COMMUNICATIONS ON CLOSED SESSION ITEMS AND NONAGENDA ITEMS There were no public communications on Closed Session items and non-agenda items.
F. RECESS TO CLOSED – 4:32 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 Leasing Agent Brian Campbell, W.E.D. Director Greg Kapovich and RBPD Chief Joe Hoffman.
Motion by Councilmember Loewenstein, seconded by Councilmember Nehrenheim, and approved by voice vote, to recess to Closed Session at 4:32 p.m.
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Motion carried, 3-0. Councilmembers Behrendt and Obagi were absent.
F.1. 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 West Torrance Blvd #102, Redondo Beach, CA 90277 Pier Plaza (a portion of APN: 7505-003-206)
NEGOTIATING PARTIES:
Brian Campbell - BC Urban, LLC
John Warner - Marine Mammal Care Center Los Angeles, a non-profit corporation
UNDER NEGOTIATION: Lease Status, Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT AND ECONOMIC
DEVELOPMENT DIRECTOR
F.2. 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:
230 Portofino Way, Redondo Beach, CA 90277 (a portion of APN: 7503 - 029-903)
NEGOTIATING PARTIES:
John Warner - Marine Mammal Care Center Los Angeles, a non-profit corporation
UNDER NEGOTIATION: Price, and Terms
CONTACT: GREG KAPOVICH, WATERFRONT AND ECONOMIC
DEVELOPMENT DIRECTOR
F.3. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION - The Closed Session is authorized by the attorney-client privilege,
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Government Code Section 54956.9(d)(1).
Name of case: Ryan Woodson v. City of Redondo Beach; Redondo Beach Police Department; City of Hermosa Beach; Hermosa Beach Police Department; and DOES 1 through 20, inclusive
Case Number: 24TRCV02113
F.4. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED POTENTIAL LITIGATION - The Closed Session is authorized by the attorney-client privilege, Government Code Section 54956.9(d)(4).
One potential case
G. RECONVENE TO OPEN SESSION – 6:00 p.m.
Mayor Light reconvened to Open Session at 6:00 p.m.
H. ROLL CALL
Councilmembers Present: Behrendt, Kaluderovic, Loewenstein, Nehrenheim, Obagi, Mayor Light
Officials Present: Eleanor Manzano, City Clerk
Mike Webb, City Attorney
Mike Witzansky, City Manager
Melissa Villa, Analyst
I. ANNOUNCEMENT OF CLOSED SESSION ACTIONS
City Manager Witzansky reported that for Item No. F.3, City Council unanimously authorized the City Attorney to defend the City in the matter.
It was noted that Councilmembers Behrendt and Obagi attended the Closed Session.
J. ADJOURN TO REGULAR MEETING
Motion by Councilmember Nehrenheim, seconded by Councilmember Obagi, and approved by voice vote, to adjourn to the regular meeting at 6:02 p.m.
Motion carried, 5-0.
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 6:02 p.m.
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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: Eleanor Manzano, City Clerk
Mike Webb, City Attorney
Mike Witzansky, City Manager
Melissa Villa, Analyst
C. SALUTE TO THE FLAG AND INVOCATION
Mayor Light invited Veterans and Active Military to stand and recognized them for their service.
Alisa, 6th Grader, Parras Middle School, led in the salute to the flag.
Mayor Light called for a moment of silence.
D. PRESENTATIONS/PROCLAMATIONS/ANNOUNCEMENTS
Councilmember Nehrenheim announced the District 1 Community Meeting on Saturday, October 12th at Alta Vista at 9:30 a.m.; thanked Public Works and Athens for sponsoring the compost event at Wilderness Park; reported there will be a hazmat and paper shredding event next month; encouraged everyone to attend the Halloween Spooktacular at Riviera Village on October 31st and the Locals and Legends event on October 26th.
Councilmember Loewenstein reported the District 2 Community Meeting will be held on Zoom from 6:00-7:30 p.m. on Monday, October 28th; stated it will be a Public Safety Town Hall featuring RBPD Chief Hoffman and RBFD Chief Butler; spoke about Measure FP.
Councilmember Kaluderovic stated residents can get information about Measure FP and all of the other bond measures on the Redondo.org website.
Councilmember Obagi shared his screen and gave a quick tutorial on how to look up items on the Redondo.org website; showed how information regarding Measure FP can be accessed within the City website.
Mayor Light reported attending the soft opening of Slice and Pint and the Inaugural Youth Commission meeting.
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E. APPROVE ORDER OF AGENDA
Motion by Councilmember Nehrenheim, seconded by Councilmember Kaluderovic to approve the order of the agenda, as presented.
Motion carried, 5-0.
F. AGENCY RECESS - None
G. BLUE FOLDER ITEMS – ADDITIONAL BACK UP MATERIALS
G.1 For Blue Folder Documents Approved at the City Council Meeting Analyst Villa announced Blue Folder Items for Items No. J.1 and N.1.
Motion by Councilmember Kaluderovic, seconded by Councilmember Nehrenheim, 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 OCTOBER 8, 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: NONE
CONTACT: ELEANOR MANZANO, CITY CLERK
H.4. APPROVE CONTRACTS UNDER $ 35,000: 1. APPROVE AN AGREEMENT
WITH THE CITY OF WHITTIER FOR USE OF GENERAL ELECTION
MANAGEMENT BALLOT TRACKING SOFTWARE FOR THE MARCH 5, 2025 GENERAL MUNICIPAL ELECTION IN AN AMOUNT NOT TO EXCEED $11,000
FOR THE TERM COMMENCING UPON EXECUTION OF THE AGREEMENT
THROUGH THE CONCLUSION OF ALL LAWFUL ELECTION ACTIVITIES CONTACT: STEPHANIE MEYER, INTERIM FINANCE DIRECTOR
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H.5. APPROVE THE FIRST AMENDMENT TO THE AGREEMENT FOR LEGAL
SERVICES BETWEEN THE CITY OF REDONDO BEACH AND THE LAW
OFFICE OF TODD SIMONSON, PC.
CONTACT: MICHAEL W. WEBB, CITY ATTORNEY
There were no public comments on the Consent Calendar.
Motion by Councilmember Kaluderovic, seconded by Councilmember Obagi, and approved by voice vote, the Consent Calendar, as presented.
Motion carried, 5-0.
I. EXCLUDED CONSENT CALENDAR ITEMS - None
J. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS
J.1 For eComments and Emails Received from the Public
Mayor Light invited public participation on non-agenda items.
Motion by Councilmember Obagi, seconded by Councilmember Kaluderovic, and approved by voice vote, to receive and file documents submitted by Joan Irvine.
Motion carried, 5-0.
Joan Irvine, District 1, talked about the importance of seniors to the community; noted seniors are the fastest growing population in the country; discussed the challenges seniors face with using technology; mentioned the accomplishments of local senior residents; suggested offering a computer class for seniors; highlighted David Lombard, the founder of The Laptop Elf Project, who provides free tech help to seniors and accepts donations of laptops and cell phones, repairs them and donates them to students, teachers and low income families and students; stated he needs more laptops and phones and gave more information on how to reach him.
Holly Osborne, District 5, clarified prior remarks regarding the FAR on Artesia Boulevard; stated that a single FAR cannot be one-size-fits-all; asserted that the City should specify height limits as well; talked about the existing FARs on Artesia and felt that the FAR should not be changed until it is known what types of buildings it will enable. Additionally, she spoke about state laws being in conflict with each other and listed examples; urged Council to give preference to protecting the City’s green space.
Jonatan Cvetko, District 1, spoke about illegal cannabis products being sold in retails shops in Redondo Beach; mentioned the various times he has asked Council to address the issue; felt it was, in his opinion, poor judgement by the Council to recommend he go and complain about it himself; spoke in opposition to approving the cannabis ordinance
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prior to addressing issues as well as testing issues.
Nancy Skiba (via Zoom) spoke favorably regarding the Measure FP Community Forum and wished Councilmember Loewenstein a happy birthday.
There were no other public comments and Mayor Light closed this portion of the meeting.
K. EX PARTE COMMUNICATIONS - None
L. PUBLIC HEARINGS - None
M. ITEMS CONTINUED FROM PREVIOUS AGENDAS – None
N. ITEMS FOR DISCUSSION PRIOR TO ACTION
N.1. DISCUSSION AND POSSIBLE ACTION ON THE CITY’S DRAFT
CANNABIS REGULATORY ORDINANCE DIRECTION ON THE
APPLICATION SCORING AND SELECTION PROCESS SECTIONS OF
THE ORDINANCE
CONTACT: ELIZABETH HAUSE, COMMUNITY SERVICES DIRECTOR
Community Services Director Hause narrated a PowerPoint presentation with updates to the Cannabis Regulatory Ordinance and specifically focusing on application scoring criteria.
Mayor Light stated his intent is for Council to come to consensus and move forward as much as possible this evening and receive public comments at the end.
Regarding Criteria 1, Councilmember Nehrenheim took issue with including numbers or at least anything more than $3 million; noted it does not matter value-wise and talked about not disqualifying businesses who have put together an “A Team” but otherwise would not qualify; stated he would rather eliminate the gross sales/revenue requirement completely.
Mayor Light mentioned Item 6 where gross sales and net profit information is requested; talked about Dunn and Bradstreet information that provides rates of solvency and financial health.
Councilmember Nehrenheim noted that revenue does not equate to a quality operator; felt that Dunn and Bradstreet should be completely removed from the ordinance.
Councilmember Kaluderovic talked about the $ 3 million in gross sales being the average and asked about the number of “outliers”.
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Community Services Director Hause reported that she has access to only countywide information.
Councilmember Obagi expressed his support; suggested that the audience give a thumbs up if they like something and a thumbs down if they do not.
Councilmember Loewenstein stated criteria in the ordinance is to increase the chances of having a good operator; noted it depends on the definition of a “good operator”; stated that one of the reasons the City is doing this is for tax revenue ; felt that discussion should not be avoided; suggested giving bonus points for increased revenue and agreed with $3 million.
Mayor Light took a straw poll: 3 for, 1 reserved judgement and 1 opposed with keeping it at $ 3 million; Councilmember Nehrenheim preferred eliminating it completely.
Community Services Director Hause highlighted updates to Criteria 2.
Councilmember Nehrenheim referenced the California Department of Cannabis Inventory System; suggested including the last one or two years of inventory control to ensure the operator runs a tight ship.
In reply to Councilmember Obagi regarding the point structure under this criteria, Community Services Director Hause reported the criteria are 0, 4, 8, 12, 16 or 20.
Community Services Director Hause mentioned Councilmember Nehrenheim’s suggestion regarding inventory control may already be captured under operations.
There was general consensus from Council with regard to Criteria 2.
Community Services Director Hause highlighted updates to Criteria 3 and there was general consensus from Council to move forward with it.
Discussion followed regarding points for providing a Letter of Commitment and there was Council consensus to keep it the way it is.
Community Services Director Hause highlighted updates to Criteria 4 ; noted this criterion will allow Staff to score applicants a little higher if they have demonstrated the ability to manage high-performing locations in the State.
Discussion followed regarding the distinction between this Criteria and Criteria 1, the probability of operators in Redondo Beach likely generating $5 to $10 million per store, per year and considering whether operators are able to manage a higher performing store.
Councilmember Nehrenheim reiterated he is looking for high quality long -term
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operators as opposed to revenue-based criteria.
Councilmember Obagi liked the criteria as an applicant is able to gain points for having capacity and noted it counts for only 20 out of 130 points.
Councilmember Kaluderovic added it is asking the applicant about their experience managing a well performing store, not whether they are going to perform the same in Redondo Beach and provides security that they have the ability to grow.
Mayor Light’s poll resulted in 3 in favor of the criteria, 1 opposed and 1 undecided.
Community Services Director Hause highlighted updates to Criteria 5.
Councilmember Kaluderovic suggested that, should it evolve into a permit renewal, Council can evaluate how they are operating and contributing to the community in Redondo Beach as a requirement for the permit renewal.
Discussion followed regarding not including a community benefits plan, challenges with evaluating community involvement and the past tending to be prologue.
Mayor Light took a straw poll resulting in 4 in favor of the criteria and 1 undecided.
Community Services Director Hause continued addressing concerns brought up in terms of gross sales not necessarily meaning profitability.
Councilmember Kaluderovic pointed out that the criteria in here says, “Balance sheet from an independent auditor demonstrating net profits” so that it does not involve them just claiming they have certain profits as an independent partner.
Discussion followed regarding whether it list the highest or lowest revenue locations, using the median or average, avoiding letting people cherry pick which store location revenue to use, the need to understand their balance sheet and the three year time line.
Mayor Light took a straw poll resulting in 4 in favor of the criteria and 1 abstaining.
Regarding the Dunn and Bradstreet (D&B) rating, Mayor Light explained its use in the Federal government in evaluating proposals; noted it is an independent body used nationwide to rank businesses.
Councilmember Nehrenheim pointed out this was not discussed previously when Council reviewed this item; disagreed with requiring a D&B rating; felt that introducing a third party is highly risky and did not believe incentivizing it with points is standard practice.
Councilmember Obagi noted it is only 10 points and acts as differentiator.
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Councilmember Kaluderovic mentioned it helps in evaluating candidates since another agency is vetting the company and adds another voice.
A straw vote resulted in 2 in support, 1 opposed and 2 abstaining.
Community Services Director Hause reviewed Section 2 of the ordinance including prior and updated language.
Councilmember Nehrenheim stated he likes it but wondered what would happen if the applicant did not comply with one thing.
Community Services Director Hause responded that they would be eliminated since it is a pass/fail scoring system and there would be no ability to cure.
Councilmember Nehrenheim supported turning the scoring into a range instead of pass/fail and assigning it 10 total points.
City Attorney Webb viewed it as there would be two choices, either 0 or 10 points; added there would be a challenge if an application is thrown out over one little thing and noted it is pass/fail in that the section would receive 0 or 10 points not the entire application.
Discussion followed regarding clarification of the specific government code Section 15006 CFR Title 4.
Community Services Director Hause addressed the site development plan and explained compliance with Chapter 20 of the City’s Municipal Code.
Mayor Light suggested grading it against the Municipal Code instead of giving them a zero if they missed one thing out of the code; explaining it would make how well they complied scorable and adding a statement after Item 10, that the application complies with the Municipal Code.
Mayor Light took a straw poll resulting in 4 in favor of the criteria and 1 abstaining.
Community Development Director Hause discussed Criteria 9.
Discussion followed regarding having a well-thought out floorplan that does not allow customers below legal age.
Community Development Director Hause reported that it is included in the security plan, she confirmed she is comfortable that City employees will be able to rate plans on his criteria. She continued addressing the proposed changes to criteria.
Mayor Light suggested all submissions should be altered the way the other two were
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altered.
Mayor Light took a straw poll resulting in 4 in favor of the criteria and 1 abstaining.
Discussion continued regarding Criteria 10 and Mayor Light took a straw poll resulting in 4 in favor of the criteria and 1 abstaining.
Community Services Director Hause discussed the requirement for a Conceptual Landscape Plan and took input from Council regarding proposed edits.
Discussion followed regarding situations involving applicants that have no available green space; suggested adding a statement that if an applicant cannot add landscaping, the score would be a 10 and rolling this criterion into the previous item.
Mayor Light agreed to work with Staff to work on this criterion.
Mayor Light took a straw poll resulting in 4 in favor of the rolling the criteria into the previous criteria and 1 abstaining.
Community Development Director Wiener explained the regulatory agency is the Bureau of Cannabis Control; stated they would review the plans for the operation and ensure compliancy with State law.
Discussions followed regarding the premises diagram being in accordance with State law, standards on security of the premises and layout/operational standards set by the State; suggested getting a copy of the regulation for the next meeting for Council to review.
Mayor Light continued this item (2.1) noting once Council knows the regulation it can decide whether to score it or make it a pass/fail.
Community Services Director Hause reviewed Criteria 12; reported it was changed from pass/fail to a better-defined scoring method.
Discussion followed regarding 5006, assurance that all of the appropriate documents are submitted that are needed to evaluate the application, whether it duplicates other sections in the ordinance, colors versus finishes, concerns regarding the quality of operator in the City.
Mayor Light took a straw poll that resulted: 4 in favor of the criteria and 1 abstaining.
More discussion followed regarding the traffic transportation analysis: the need to be cost conscious when creating a requirement for a third party traffic analysis, having the analysis address safety, ingress/egress and basic safety plans, clearly defining the traffic analysis and considering the control the City has on the surrounding neighborhood.
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Councilmember Loewenstein asserted that if this is required for fast food, it should be a required for a cannabis retail store.
Mayor Light opined they should be scored.
Councilmember Nehrenheim distinguished between high traffic drive through facilities versus retail pickup.
Councilmember Obagi pointed out that unloading cannabis or loading cash will be a target for crime and felt the City ought to know an applicant’s security plan.
Councilmember Loewenstein reiterated that it should be provided as part of the application process.
Mayor Light added that although the store is not a drive through, it is high volume with a high turnover of customers.
Discussion followed regarding assessing whether the site is a pedestrian area or drivable, the definition of traffic analysis, requiring the applicant to show how to accommodate and address capacity, safety, mitigate traffic impact and/or delivery impacts on traffic and surrounding properties.
Councilmember Obagi left the chambers.
City Manager Witzansky stated it comes down to how much data is provided; felt that the quality of the analysis is the issue with scoring.
Mayor Light took a straw poll that resulted: 3 in favor of the criteria as discussed, and 1 abstaining.
Community Services Director Hause reviewed the business and operations plan; provided details of the changes to each criterion.
Councilmember Obagi returned to the chambers.
Discussion followed regarding the last 3 years of operation from the first sale, evaluating an applicant that may have a “dream team” but are opening their first store and do not have 3 years of operation , the need to have experience in cannabis in California, providing experience from other cities where the applicant has operated a store for at least 3 years while being up to date on taxes and fees.
Councilmember Nehrenheim felt this requirement should be eliminated; spoke about the importance of a security plan and inventory control.
Councilmember Kaluderovic suggested 0 or 10 points depending on whether 3 years
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of audited financial statements can be provided.
Mayor Light took a straw poll that resulted: 3 in favor of the criteria as discussed, 1 opposed and 1 abstaining.
Regarding Criteria 3, discussion followed regarding assigning 0 to 5 points.
Councilmember Nehrenheim felt it should be more than 5 points for product testing and quality; suggested it be pass/fail, leaving it at 5 points and including language that the products be “tested”.
Councilmember Kaluderovic left the chambers.
Mayor Light took a straw poll that resulted: 3 in favor of the criteria as discussed and 1 abstaining.
Discussion followed regarding indicating the number of points allotted to each criterion and whether they are pass/fail.
Mayor Light suggested that since these are future projections, that it be listed as pass/fail versus scoring since there is no basis to determine whether the projections are accurate or not.
Councilmember Kaluderovic returned to the chambers.
Mayor Light took a straw poll that resulted: 4 in favor of a pass/fail criteria with an allotted 10 points as discussed, and 1 abstaining.
Council continued to allot points to the different criteria.
Discussion followed regarding adding detailed evidence of commitment and track and trace software.
Councilmember Behrendt spoke about this being one of the most important aspects of the process; wondered what more could be included in the scoring criteria or as part of the regulations to ensure that the City has full visibility into every dollar of revenue generated by these operators to ensure that the City receives every dollar of tax that is owed; suggested increasing the scoring criteria from 5 points to a higher number that would reflect that concern.
City Manager Witzansky reported it is not just part of the criteria but is actually in the City’s permit requirements and operating procedures; noted that “the system must have capability to produce historical transactional data for review, furthermore, any system selected must be approved and authorized by the permit administrator prior to being used by a permittee”; suggested the City may want to expand on this further and the genesis is to ensure that Staff has real time data and the reporting software
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is complimentary to the City’s for tracking from start to finish.
Councilmember Behrendt reiterated his suggestion to increase the point count and noted that, irrespective of who ends up getting the job, the City will have obligations.
Discussion followed regarding whether retailers use the same software to conduct business, addressing it in the permit requirements, reporting supply chain activities and using metrics to prove information; spoke about enforcement and past performance based on store business where the revenue was claimed having more points; spoke of allotting up to 10 points if the last 3 or 4 years of metrics are used, have inventory control procedures and added a new one that is backwards looking at a 10-point scale.
Councilmember Loewenstein left the chambers.
Councilmember Nehrenheim stated it would make this entire section 105 points.
Discussion followed regarding choosing the stores, the importance of store performance and defining ownership in other parts of the ordinance.
Council concurred with the changes discussed including assigning 10 points for prior past performance.
Community Services Director Hause addressed Criteria 11.
Discussion followed regarding overlap with the criteria regarding traffic and Councilmember Nehrenheim suggested folding it into the previous traffic criteria.
Council agreed 4-0 to combine Criteria 11 with the prior traffic criteria.
Councilmember Loewenstein returned to the chambers.
Council concurred to approve Criteria 12 as presented.
Regarding Criteria 13, discussion followed regarding avoiding payment of taxes with cash, assigning it as pass/fail and allotting 10 points.
Discussion followed regarding Criteria 14 and requiring that violations be reported.
Councilmember Obagi asked to return to Criteria 12; expressed concerns it does not include a plan to avoid marketing to minors.
Community Services Director Hause agreed to add it.
Council approved Criteria 14 as presented.
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Regarding Criteria 15, it was noted that it is just a plan and cannot be enforced; Council approved it as presented.
Council approved Criteria 15 and 16 as presented.
Councilmember Nehrenheim left the chambers.
Councilmember Nehrenheim returned to the chambers.
Discussion followed regarding Criteria 17; Council approved it as presented.
Regarding 18, discussion followed regarding the need for the criteria to differentiate between a good operator vs. a bad operator and assigning it a range of 0-5.
Mayor Light took a straw poll that resulted: 4 in favor of a pass/fail criteria with an allotted 0-5 points and 1 abstaining.
Following discussion, Council agreed to skip to Section 7 and defer the remaining sections to the next meeting.
City Attorney Webb stated it would help if Council took the time to digest and return with thoughts and revisions on the other items either next week or the first Tuesday in November; recommended taking public input at that time.
Mayor Light asserted public input will be invited after discussions regarding Section
7. Discussion ensued between the Mayor and the City Attorney regarding straw votes.
Community Services Director Hause reviewed updated scoring criteria under Section 7 of the ordinance.
Council concurred with Criteria 1 under Section 7, as presented.
Council concurred with Criteria 2 under Section 7, allocating a score of 2 points.
Council concurred with Criteria 3, as presented.
Regarding Criteria 4, Councilmember Obagi asked about the legality of local hiring practices.
City Attorney Webb stated it is in ordinances from other cities but he will need to research the topic.
Councilmember Kaluderovic suggested scoring it higher depending on the result of the research.
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Councilmember Obagi mentioned the need to address pay rates.
Community Services Director Hause reported that at the last Council meeting there were comments made by Councilmembers that pay was not a priority and was not required from other businesses so it was taken out; stated it can be added back if Council so chooses.
Councilmember Obagi suggested including language requiring that they pay a living wage.
Discussion followed regarding what a living wage means.
Councilmember Obagi suggested a scoring range of 0-5 depending on whether they pay minimum wage (0 points), $3 above minimum wage (2.5 points) and $5 above minimum wage (5 points).
Council was split between scoring the criteria 5 points or 10 points.
Community Services Director Hause reported there are 7 sections and 4 were addressed tonight.
Mayor Light invited public comments on this item.
Joan Irvine, District 1, thanked Council for keeping their word and bringing this item back every two weeks until it is completed; opined it feels like, “Ground Hog Day” as discussions are being repeated over and over; asserted that by delaying this matter, Council is negatively impacting the health and quality of life for seniors by not giving them access to cannabis; urged Council to move forward; wondered about a realistic time frame for dispensaries and delivery; hoped that after tonight the matter would be scheduled for first reading; expressed concerns the matter will be delayed so the new Council will have to start the process over again.
Susan Reuben spoke in opposition to cannabis in Redondo Beach; spoke about visiting a place called the Head Shop, spoke about tagging being another product of cannabis, mentioned the City will spend all the money generated on removing graffiti from walls; opined the City does not need the “dirty” money and urged Council not to approve the ordinance.
Jimena Cabrera, District 3, spoke in opposition to cannabis in Redondo Beach and felt it will normalize drug use in the community.
Melissa DeChandt, District 1, talked about the cannabis industry being in a decline; expressed concerns about the lack of safety guardrails and contamination with pesticides and fentanyl; suggested the City consider collecting revenue for deliveries and opposed retail dispensaries in Redondo Beach; added she has zero problem
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with any adult using, buying, selling, trading cannabis but has a huge problem with the normalization of cannabis for our youth ; disagreed with a comment made at the last meeting claiming that dispensaries lead to less youth use; urged Council to pause everything and then consider delivery only.
Courtney Caron stated she is the PTA President at her children’s school, has three children, is a cannabis attorney and business owner; talked about finding access to alcohol more offensive; noted that as a responsible parent, it is her job to talk to her kids about the risks and dangers of cannabis use instead of claiming it is a gateway drug and will ruin youth. She referenced Section 1 Criteria 2; stated it does not list what it is that Council is seeking in terms of the record of compliance and there are a lot of different point values for that; noted the problem is that on the Federal level , there will be no records of compliance available; reported the State has no compliance records that can be applied for and there are no certifications of good standing available; added that locally, some jurisdictions will provide letters but many will not.
Motion by Councilmember Obagi, seconded by Councilmember Nehrenheim, and approved by voice vote, to extend the Courtney Caron’s time by 30 seconds.
Motion carried, 5-0.
Courtney Caron asked Council to figure out what it is it wants applicants to submit; opined that Criteria 3 seems silly as once the license is awarded Council has little recourse; discussed Criteria 4; wondered what the measure of proof is regarding Criteria 5 and talked about challenges with different cities having different requirements.
Mayor Light asked Courtney Caron to draft an email with her comments and recommendations to City Council; noted that her expertise and experience would help in providing a basis for Council discussions.
Courtney Caron agreed to do so.
Mayor Light encouraged every operator to provide written comments in emails or other correspondence as these can be captured in accurate detail instead of trying to fit what they want to say in 3 minutes.
In reply to Councilmember Nehrenheim’s question regarding audited financials, Courtney Caron reported the City of Fresno requires audited financials each year for renewal of licenses and it costs about $60,000 to provide a true audited financial for that prior year and felt it will be very problematic, especially for smaller operators and offered to fine tune the language in her email.
Timothy Dodd, Sweet Flower, reported he is a father of four and an attorney; thanked the City for the extensive work that has been done; expressed concerns with the
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cost, complexity and time to market as well as whether the City is achieving the goals that it is setting out to accomplish; felt some of the decisions being made are arbitrary, including revenue tests; addressed sustainability and other factors that affect stores’ success; suggested that if Council is interested in the financial caliber of operators, the City should look at the balance sheet, the operators, the business, how they perform at their financial obligations to others, the number of years in operation, the number of stores, incidents of complaints, non-compliance, community interaction and engagement, payment of obligations to government and the community. He added that focus should be given to the security plan, inventory control, management plan checks and youth access prevention.
Mayor Light reiterated his request for operators to email Council with comments and recommendations.
Tim Dodd responded to questions from Councilmember Nehrenheim regarding sales and tracking; noted it is not a 5-point score as it is an integral part of the business; talked about costs involved in D&B ratings and questioned how that would be meaningful; felt there are other ways of getting the information such as credit ratings and other independent assessments.
In response to a question from Councilmember Obagi regarding the possibility of ranking a parent company as a whole, while understanding the profitability and debt load of individual stores, Community Services Director Hause said it is possible; added that it may take some time to look at how other cities might have captured that because some of these places may have multiple owners that have stakes in different companies across the state of California; wondered whether the owner will be rated or the company that they apply under and indicated she needs time to research the matter.
Jonatan Cvetko, District 1, expressed disappointment that Council has paid no attention to the issue of having a statewide process for testing; talked about the system being broken at the state level where there is no way to determine safety and efficacy of products; suggested the City consider asking attending operators if they have sold any of the products that have been recalled; listed companies that have sold recalled products; asserted it is the wrong thing for Council to be considering this until the State fixes it.
Paul Furie reported he is the father of two teenagers in the Redondo Beach Unified School District; opposed storefront cannabis in the City; felt that it normalizes drug use; suggested that cannabis users order through the mail or delivery ; talked about cannabis being a declining industry. In response to an inquiry from Councilmember Behrendt regarding his opinion on the fact that 64% of Redondo Beach residents approved two cannabis storefronts in the City, Mr. Furie stated everyone can have their own opinion but that Council has a responsibility to make good choices for the City.
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Robin Eisenberg, Supreme Retail, stated that, whether it involves cannabis or pretzels, this is like what a major landlord such as The Grove or Fashion Island has to deal with; noted that to get in there a retailer must have high standards; felt it was a great idea to have operators provide written comments that may help Council develop appropriate criteria for the ordinance; asserted that every point matters and urged Council not to rush it and to get it right.
Myles Peck, Supreme Retail, reported he is a father of two children and is a cannabis business owner throughout the State; thanked Council for the continued work on this process; promised to review everything with his team and provide written comments and recommendations to help Council get this across the finish line; commented on the inclusion of criteria not seen in other cannabis license applications; felt they will be a challenge and not necessarily creating an opportunity for applicants and indicated he will provide detailed points; addressed merit based processes; talked about every point mattering; asserted this will be an extremely competitive process and that thought needs to be given to the scoring and points; hoped Council would be more open on some of the issues and suggested an interview process at the end.
In response to an inquiry from Councilmember Nehrenheim, Myles Peck discussed his past experience with large chains and multiple retail stores throughout the State ; spoke about trying to build a unique team that is focused on Redondo Beach and about the interview process.
Mayor Light asserted that any constructive feedback will be appreciated.
David Rosenfeld thanked Council for its work moving this item forward; spoke on behalf of Supreme Retail (where Myles Peck is the CEO and Founder); felt many changes have been brought forward that were not previously discussed and are not standard procedures used by other agencies; noted Redondo Beach is one of the last cities to approve a cannabis ordinance so it does not need to reinvent the wheel as other cities have successfully brought forward ordinances that can be mirrored ; suggested keeping things simple by clarifying that revenue can apply to present or previous experience; felt the City is giving advantage to large operators by giving preference to someone with a great amount of revenue; suggested language that indicates the City is looking for someone that can show financial success, profitability or growth or other things instead of gross revenue ; mentioned what is needed is a responsible operator that will be safe and successful.
Mayor Light reiterated the need for constructive input.
Sam Jurist, San Pedro, reported owning 2 cannabis businesses, one in California and one in New Jersey; noted he has been in the industry for over 10 years; felt that length in the industry would be a good qualifier; offered to provide comments and recommendations via email; spoke about his operations and investors; stated some of the financial requirements get tricky when there are multiple entities; asked for some clarification on the requirements regarding the definition of an entity; advocated
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retail stores as a safe way to access medicine versus a smoke shop.
Devon Wardlow, Vice President of Public Affairs for Embark, agreed with comments and concerns raised by Courtney Caron and fellow operators; concurred with the Mayor’s comments regarding getting written input from operators; asked that Council allow each operator to provide written, formal comments in response to the updated criteria, to direct Staff to review the comments and present the points of consensus to City Council for its consideration; noted that the fear of lawsuits is being overemphasized and that she is not aware of any merit based processes in the last 3 years that have resulted in a successful lawsuit where the city was forced to pay out an applicant; understood the appeals and threats will likely come regardless of their merit.
In response to Councilmember Nehrenheim’s inquiry, Devon Wardlow addressed elements in a typical merit-based process.
Wayne Craig spoke about the community benefits category; questioned how they are going to determine this category; how they determine what is good for the community and who they expect to support; felt that it seems arbitrary and wondered about enforcement; suggested that applicants pay into a fund managed by the City, and it can decide where the money goes.
Eugene Solomon, Redondo Beach, thanked Community Services Director Hause for her work; opined the Federal government is a cliché and is notorious for inefficiencies and did not feel the City should have that as an ultimate barometer; agreed with Courtney Caron in terms of the management criteria; disagreed with the criteria requiring a D&B rating; felt that some of the criteria are de facto bans as new ventures; spoke about payment management and payment type; talked about some dispensaries being allowed to offer food and wondered whether Council would like to address that; addressed funding resources.
Council concurred to extend Eugene Solomon’s time to comment by one minute.
Eugene Solomon spoke about regional banks that provide funds and urged Council to consider where the money is coming from and how that may be scored ; talked about having full visibility in terms of track and trace.
Councilmember Obagi and Mayor Light agreed with Councilmember Nehrenheim to eliminate the requirement for a D&B rating ; Councilmember Loewenstein agreed as well.
Councilmember Obagi left the chambers.
Devin Julian ( via Zoom), Culture Cannabis Club, thanked Council for its efforts; stated he will provide written comments; referenced Section 1.4 and noted that revenue is not the proper qualifier for the best operators; addressed Section 2 and
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urged Council to consider top applicants after the merit-based process is completed and Council makes the final decision.
Tijon Rubert, District 1, via Zoom, strongly opposed having retail cannabis dispensaries in the City and being the only beach city that does not prioritize its youth; spoke about other ways to raise revenue and suggested looking deeper into delivery only.
Analyst Villa reported there were 17 eComments opposing this item.
There were no other public comments on this item.
Discussion followed regarding directing Staff to update the criteria as discussed, ensuring that written comments from operators are included as Blue Folder Items, distributing/circulating them as they are received, attaching them as part of public comments to the agenda packet.
Motion by Councilmember Nehrenheim, seconded by Councilmember Loewenstein, and approved by voice vote, to continue this item to the City Council meeting on October 15, 2024.
The motion carried 5-0.
RECESS/RECONVENE
Motion by Councilmember Behrendt, seconded by Councilmember Kaluderovic, and approved by voice vote, to recess for 7 minutes at 8:00 p.m.
The motion carried 5-0.
Mayor Light reconvened the meeting at 8:07 p.m.
ROLL CALL
Councilmembers Present: Behrendt, Kaluderovic, Loewenstein, Nehrenheim, Obagi, Mayor Light
N.2. DISCUSSION AND POSSIBLE ACTION ON THE CITY’S STRATEGIC PLAN APPROVE THE PLAN’S THREE-YEAR GOALS AND SIX-MONTH
OBJECTIVES
CONTACT: MIKE WITZANSKY, CITY MANAGER
City Manager Witzansky presented details of the Administrative Report; summarized the last Strategic Planning session; noted now is the time for Council to review the goals and objectives and make recommended additions, deletions or changes and
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addressed scheduling the next Strategic Planning session.
Councilmember Obagi referenced the Harbor and Pier leasing strategy in Objective 2, about including a waterfront education center and realized that it was enunciated in Goal 4.
City Manager Witzansky reported that particular objective has been met and the City is in a more leasing discussion mode.
Councilmember Obagi suggested memorializing it somehow.
Mayor Light reported it is in the Execution and Implementation Plan of the Amenities Plan.
Councilmember Obagi proposed a discussion in six or seven months about Council’s vision for waterfront education in the City of Redondo and whether to pursue it as a goal or not.
City Manager Witzansky felt it could be structured into the plan if it is an objective that Council wants prioritized or Staff can let it play out through the process.
Mayor Light wondered if Council should update the Amenities Plan.
Councilmember Kaluderovic mentioned there will be new Councilmembers in April and having an immediate discussion about that might be a bit jolting as a policy decision; felt it is reasonable to include it on the next round of discussions in April.
Discussion followed regarding including it as a discussion item now and keeping it on the radar.
Councilmember Obagi suggested adding, “ future waterfront education center discussion about potential partners and opportunities”.
City Manager Witzansky agreed to add it under Goal 4.
Councilmember Loewenstein referenced Goal 5 and talked about the importance of hiring an Emergency Coordinator and ensuring that residents are prepared.
Councilmember Nehrenheim noted that position was funded a year ago and the money is being used for other things; stressed the matter is overdue.
City Manager Witzansky reported that Division Chiefs and the City has made big strides as this is being discussed but the position is the next step in that evolution.
Councilmember Loewenstein stated that it is more than just CERT and that it needs to be a coordinated effort.
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Councilmember Nehrenheim spoke about inefficiencies in Public Works specifically in terms of deposits for ROW improvements; discussed the need for an electronic system that works such as the online permitting system for Community Development.
City Manager Witzansky provided an update of the activation of the different portals; stated City staff is currently negotiating terms with the vendor for a contract to allow automation of Planning, Engineering and ROW permitting. He added language to specifically add “ research/implement a system for Planning and Engineering permits”.
Councilmember Kaluderovic referenced Goal 2 and requested including a discussion for the working group on how the City can improve attracting new businesses and another discussion about collection for business licenses.
City Manager Witzansky reported that business license collection is a function of all other fee collections through the Financial Services Department; talked about an online business license system and complexities in the City Code; noted implementing change would require a vote under Proposition 218.
Councilmember Kaluderovic referenced Goal 4 talked about adding what would happen if Bond Measure FP were not to pass.
In response to Councilmember Behrendt’s question about possibly changing some of the timelines to allow Staff more time to focus on other priorities, City Manager Witzansky talked about likely carryover items which will be the first on Staff’s “to do” list; reported that putting together the Economic Development working group will take a lot of time and energy and felt it is not realistic to expect full results by April but that Staff will do its best.
There were no public comments on this item.
Motion by Councilmember Obagi, seconded by Councilmember Nehrenheim, and approved by voice vote, to approve the Strategic Plan Objectives and 3-Year Goals with the directed changes.
The motion carried 5-0.
City Manager Witzansky reported that Council and Staff developed a list of 80 accomplishments over the last year; stated it is worth celebrating the City’s successes.
Discussion followed regarding Councilmember project priorities.
O. CITY MANAGER ITEMS - None
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P. MAYOR AND COUNCIL ITEMS - None
Q. MAYOR AND COUNCIL REFERRALS TO STAFF
Councilmember Loewenstein asked about the status of the ROW with the powerlines and five acres west of PCH. City Manager Witzansky stated it is with SCE for review.
R. RECESS TO CLOSED SESSION – None
The Closed Session meeting was cancelled.
S. RECONVENE TO OPEN SESSION – None
The Closed Session meeting was cancelled.
T. ADJOURNMENT – 8:25 p.m.
There being no further business to come before the City Council, motion by Councilmember Kaluderovic, seconded by Councilmember Obagi, to adjourn the meeting at 8:25 p.m. to an Adjourned Regular meeting to be held at 4:30 p.m. (Closed Session) and a Regular meeting to held at 6:00 p.m., on Tuesday, October 15, 2024 in the Redondo Beach City Hall Council Chambers 415 N. Pacific Coast Hwy. 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:
Eleanor Manzano, CMC
City Clerk