Mayor DeRosa called the Study Session portion of the meeting to order at 5:30 p.m.

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1 MINUTES CITY COUNCIL OF CATHEDRAL CITY AND CITY COUNCIL SERVING AS THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY BOARD Avenida Lalo Guerrero, Cathedral City, CA MARCH 13, :30 P.M. STUDY SESSION 6:30 P.M. REGULAR MEETING CALL TO ORDER Mayor DeRosa called the Study Session portion of the meeting to order at 5:30 p.m. ROLL CALL Present: Council Members Henry, Pettis and Toles, and Mayor DeRosa. Absent: Mayor Pro Tem Vasquez, who arrived at 5:40 p.m. PRESENTATION OF COLORS AND PLEDGE OF ALLEGIANCE Cathedral City High School Junior Air Force ROTC presented the Colors and Council Member Henry led the Pledge of Allegiance. INVOCATION Council Member Toles offered the Invocation. PRESENTATIONS AND PROCLAMATIONS The following presentations were deferred: Prevent Child Abuse Proclamation presented to Meghan Sullivan, Children s Counselor, Betty Ford Center Children s Program Hunger Action Month Proclamation presented to Gwen Ford, Chairperson of the FIND Food Bank. CATHEDRAL CITY HIGH SCHOOL STUDENT REPORTS None. PUBLIC COMMENTS Mayor DeRosa opened public comments. There being no speakers, Mayor DeRosa closed public comments.

2 Page 2 of 13 STUDY SESSION AGENDA 1. Update on Current Public Works Projects (P. Milos) Community Development Director Milos introduced the item. City Engineer Simons provided updates on the Eagle Canyon Dam and Line 43 projects. He discussed the widening of East Palm Canyon. He provided an update on construction of the Volkswagen dealership. He reviewed the bid process for the Ramon Road West project. Mayor DeRosa requested staff consider putting the information on the City s website. In response to Mayor DeRosa, City Engineer Simons discussed plans to notify property owners and businesses of potential impacts. He discussed upcoming meetings with the auto dealers and Chamber to notify properties of projects. Community Development Director Milos discussed plans to work with the businesses and community regarding construction impacts. He discussed the entrance to the City at Date Palm Drive and East Palm Canyon and presented images. In response to Council Member Toles, Community Development Director Milos stated stained acid wash was utilized and sealed which should increase life expectancy. Council Member Toles requested the faded medians be addressed. In response to Council Member Pettis, Community Development Director Milos stated the Streets and Transportation Commission had received the presentation and was supportive of the projects. Council Member Henry commended staff. Mayor DeRosa thanked staff. Community Development Director Milos discussed the Whitewater Park project including bid process, Joint City Council and Parks and Recreation Commission meeting and maintenance funding mechanisms for the park. In response to Mayor DeRosa, Community Development Director Milos stated bids were good 60 days after opening. He stated staff was still working on maintenance mechanisms. He anticipated maintenance to cost $100, Receive update on Share Kitchen from Angela Janus, Executive Director (L. Lukes) Angela Janis, Cathedral City, Share Kitchen, explained the program, clients, and sustainability efforts. She discussed successful clients of Share Kitchen. She explained

3 RECESS Page 3 of 13 education and training. She discussed Share Kitchen s involvement in activities and events during its first six months. She discussed the needs of Share Kitchen. Council Member Toles stated he was very impressed and offered three $500 microloans. He stated his company was a large retailer distributor and offered assistance. Mayor DeRosa offered a microloan and thanked Ms. Janis for the presentation. Discussion of contracts with local vendors (S. Henry) Council Member Henry presented the report and suggested utilizing Cathedral City businesses, then Coachella Valley, followed by outside areas. City Manager Hall discussed the current City policies for local vendor preference and policies of other cities. In response to Mayor DeRosa, City Manager Hall stated the current policy was approved at least 5-10 years ago. Mayor DeRosa indicated she was open to having staff review the matter. Council Member Toles thanked Council Member Henry for bringing the matter forward. He indicated support for implementing an aggressive policy for use of local business. Council Member Henry clarified that he discussed the matter with the City Attorney, who had suggested a policy rather than ordinance. He stated prices need to be reasonable. City Manager Hall clarified that Council wanted staff to focus on locally owned and operated store front businesses. Mayor DeRosa recessed the Study Session portion of the meeting at 6:35 p.m. Mayor DeRosa reconvened the Study Session at 9:00 p.m. The meeting reconvened with all Council Members present. 3. Discussion of Implementation of Revised City Logo (A. Hall) City Manager Hall presented design options of the new logo. Mayor DeRosa stated she and Council Member Toles had not yet seen the new logos. She stated the issue was how the logo looked on letterhead. Council Member Toles explained issues with the current logo. He stated the Marketing Committee was tasked with making the logo legible and allowing logo use in multiple

4 Page 4 of 13 ways. He stated the logo could be implemented much more effectively. He stated the letterhead and business cards were nice. He suggested the Council move to implement the logo. Mayor DeRosa offered the shaded version be used for press releases. Mayor Pro Tem Vasquez stated he did not have a preference. Administrative Services Director Scott asked for Council direction on use of existing City letterhead and business cards. Council Member Toles suggested a rolling change on business cards and printed letterhead. He stated electronically printed material should be changed immediately. Administrative Services Director Scott asked the Council s preference on changing street signs. Council Member Henry stated the logo had changed at least 4 or 5 times in the City s history. He stated the logo should represent what the City was about. He stated the logo should not have been changed. He stated unnecessary funds should not be spent. He stated street signs should only be changed as they needed to be replaced. He stated electronic documents should be changed. He stated existing letterhead and business cards should be used first. He suggested retaining the logo and seal to develop tradition. Council Member Toles agreed that additional expenses should not be incurred. He explained the style guide. City Clerk Hammers stated the logo should be a registered trademark of the City. Council Member Pettis suggested staff determine the specific uses. Council Member Toles agreed to allow staff flexibility with the style guide, Council Member Toles moved and Council Member Henry seconded a motion to implement the full logo as discussed, with rolling changes as necessary and electronic changes immediately and to direct staff to register the trademark on the logo. The motion carried unanimously. 4. City Council/Staff reports and inquiries of new or ongoing projects. None. The meeting was adjourned at 9:25 p.m.

5 Page 5 of 13 REGULAR MEETING OF THE CITY COUNCIL AND THE CITY COUNCIL SERVING AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY BOARD AND AS CATHEDRAL CITY CS ZONE A SPECIAL DISTRICT CALL TO ORDER Mayor DeRosa called the Regular meeting of the City Council to order at 6:35 p.m. PRESENTATIONS AND PROCLAMATIONS Presentation by Desert Princess General Manager, Khal Butler, to the Cathedral City Police Department Khal Butler presented $14,000 to the Police Department for the purpose of purchasing mobile surveillance cameras. Mayor DeRosa thanked Mr. Butler. Captain Moss presented a plaque thanking the Desert Princess Homeowners. Council Member Henry thanked Mr. Butler for the event and suggested it be held annually. Hunger Action Month Proclamation presented to Gwen Ford, Chairperson of the FIND Food Bank Mayor DeRosa presented a proclamation thanking FIND Food Bank. Gwen Ford, Indio, Chairman of the Board at FIND Food Bank, discussed the work of FIND Food Bank. She discussed Hunger Action Month events. Mayor Pro Tem Vasquez commended FIND Food Bank and thanked them for contributing to the Cathedral City food bank. CLOSED SESSION ANNOUNCEMENTS City Attorney Green stated no closed session was held. PUBLIC COMMENTS Mayor DeRosa opened public comments. Jens Mueller, Cathedral City, stated the City s unfunded pension liability was $150 million. He discussed the need for road maintenance. He stated the Council should not take a pension. He suggested the Council contract for Police and Fire services.

6 Page 6 of 13 Tyrone Pierson, Cathedral City, discussed the health care bill. Mayor DeRosa closed public comments. AGENDA FINALIZATION None. URGENCY ITEMS None. COUNCIL COMMENTS Council Member Toles discussed the new Catholic Pope. He thanked Council Member Pettis for his efforts at the National League of Cities regarding the marriage equality resolution. Council Member Pettis discussed the National League of Cities conference at which comprehensive immigration reform and the Market Place Fairness Act were discussed. Mayor Pro Tem Vasquez thanked City Manager Hall for the new Council briefings. He discussed the Mission Plaza Easter event. He stated he and Council Member Henry attended the 2x2 meeting. Mayor DeRosa stated she represented the City at the Heart to Heart and Salvation Army luncheons. COMMITTEE ASSIGNMENTS None. MINUTES None. CONSENT AGENDA Mayor Pro Tem/Vice Chair Vasquez moved and Council/Board Member Toles seconded a motion to approve the Consent Calendar. The motion carried unanimously. The Consent Calendar consisted of the following items:

7 Page 7 of 13 A. COUNCIL/CITY COUNCIL AS SUCCESSOR AGENCY BOARD: NONE 1. COUNCIL/CITY COUNCIL AS SUCCESSOR AGENCY BOARD. Receive and File payment of Claims and Demands in the aggregate sum of $5,589,789 for the month of February 2013 by M.O and M.O. SA (T. Scott) (pg. 1-2) B. CITY COUNCIL 2. COUNCIL. Approve a recommendation from the Public Arts Commission to purchase and authorize the placement of a sculpture created by Betty Gold, entitled Holistic 77-A (1978) in an amount not to exceed $40,000 by M.O (P. Milos) (Pg. 3-4) PUBLIC HEARINGS 3. Consider First Reading and Introduction of an Ordinance, reading by title only an Ordinance of the City Council of the City of Cathedral City repealing and amending Chapter of Title 9, Planning and Zoning, and Section of Title 13, Code Enforcement and Remedies, of the Cathedral City Municipal Code to permit and regulate Medical Marijuana Dispensaries pursuant to State Law to become effective only upon occurrence of the conditions specified herein. (C. Green) (Pg. 5-48) City Attorney Green presented the staff report. Council Member Pettis stated the City s ban was not effective and the existing dispensaries needed to be legalized, taxed and enforced. He questioned prohibited locations, including churches, dispensaries within a half mile of another dispensary, commercial zones, and near East Palm Canyon. He stated limiting the number of allowed dispensaries to two was arbitrary. He suggested it be based on population and recommended one per every 15,000 residents. He questioned the need for background checks. He stated he would be making motions to amend the ordinance following public comments. Council Member Henry asked if the ordinance would be effective prior to the Supreme Court ruling. City Attorney Green stated he could not determine whether the ordinance would be effective prior to the Supreme Court ruling. Council Member Henry asked if the ordinance would cover the potential annexation areas. City Attorney Green stated legally operating dispensaries in Thousand Palms would be grandfathered. In response to Council Member Pettis, City Attorney Green stated the existing dispensaries were not permitted. In response to Council Member Pettis, City Attorney Green stated the time, place and manner restrictions were based on input from the departments. In response to Mayor DeRosa, City Attorney Green explained the laws of the State of

8 Page 8 of 13 California allowing for cooperatives or collectives rather than store fronts. He stated sales tax would not be collected from cooperatives or collectives. Council Member Pettis questioned the restrictions on hours of operation, requiring closure on Sunday and not allowing cash transactions. In response to Mayor Pro Tem Vasquez, City Attorney Green stated the ordinance should not affect existing litigation. He explained the process for selecting the two dispensaries. He stated there may be one dispensary that had completed all requirements and would be eligible. Mayor Pro Tem Vasquez stated he had met with a couple dispensaries that were interested in opening a business in the City. Council Member Toles stated he was not a Council Member when the ban was imposed. He discussed the 1996 law and stated it was likely that California voters would go back to the poles. He discussed drug practices in the Netherlands. He explained the intent of medical marijuana collectives. Council Member Henry stated the purpose of the ban was due to flaws in the law. He requested City Attorney Green respond to Council Member Pettis questions prior to his comments. City Attorney Green stated staff was acting on Council direction to enforce the ban. He explained the need for the ordinance during the gap. He discussed the Federal laws regarding growing, selling and possession of marijuana and Attorney General s posture regarding enforcement. He stated the California law did not permit retail establishments, rather collectives. He stated the hours of operation should not be compared to other businesses. He explained the reason for the no cash provision as a matter of public safety. He stated the proximity to churches and each other was a policy decision of the Council. He stated the Council could determine the zones and proximity to East Palm Canyon. He discussed the number proposed for collectives. He explained the purpose for requiring background checks. Council Member Pettis questioned what the City versus the owners of the business should regulate. He asked if the ordinance should take effect in 2014 if the voters legalized medical marijuana. City Attorney Green suggested time, place and manner restrictions be in place before the ban was eliminated. Council Member Toles discussed prescription medication and stated background checks were not required at pharmacies. He discussed enforcement of Federal law. Council Member Henry clarified that Palm Springs only allowed 3 dispensaries. He stated certain businesses required background checks. He agreed that cash transactions should be prohibited. He suggested expanding the hours of operation. He agreed with Council Member Pettis that the number of dispensaries be based on population, one per 25,000 residents. He requested the ordinance be adopted as an urgency ordinance. City

9 Page 9 of 13 Attorney Green stated it could not be an urgency item unless brought back at the next meeting. In response to Mayor DeRosa, City Attorney Green stated the quarter mile requirement was as the crow flies. Mayor DeRosa opened public comments. Dale Nelson, Cathedral City, discussed his use of medical marijuana. He suggested dispensaries have restrooms and be regulated. Loretta and Terry Nelson, Cathedral City, discussed their son s use of the medical marijuana. Dennis Dumis, Cathedral City, stated he helped Today s Remedy open the store. He stated, if dispensaries, were allowed they should be run by law abiding Cathedral City residents. Clint Jackson, Cathedral City, Today s Remedy, discussed work with the City to open the business. He stated they were closed awaiting the decision of the Supreme Court. He stated reasonable regulations were appropriate. He stated many businesses were robbed and dispensaries should not restrict cash transactions. Gino Seradelia Palm Desert, agreed that security and zoning was important. He read laws issued by the Attorney General regarding running medical marijuana dispensaries. Tyrone Pierson, Cathedral City, discussed the Health Care bill. Mario Valareni Rancho Mirage, questioned whether the existing illegal shops were grandfathered in. Art Gregory, Cathedral City, requested the City Attorney clarify his explanation. He discussed his experience as a nurse and with a sick family member. He requested the Council come together for the sick citizens. He provided cannabis facts. He requested the Council support the ordinance. Jens Mueller, Cathedral City, indicated compassion for ill residents but stated the vast majority of those utilizing medical marijuana dispensaries were not ill. He indicated support for the proposed ordinance, but that two stores was sufficient for the City. He agreed that it should be an urgency ordinance. Mayor DeRosa stated she had received a phone call from Michael Murray indicating his opposition to dispensaries in Cathedral City, not medical marijuana. She stated she believed medical marijuana was necessary for those that needed it.

10 Page 10 of 13 Mayor DeRosa closed public comments. City Attorney Green apologized if he was not clear in his comments, but it was a complex issue. He explained that the Council had adopted a ban and directed staff to enforce the ban. He explained the purpose of the ordinance to regulate time, place and manner restrictions. He stated the Council would decide the policy issues, and by a majority vote had previously voted for a total ban. If the California Supreme Court overturned the ban, that this proposed ordinance would provide for restrictions. Council Members discussed various proposed motions and their content. Council Member Pettis moved and Mayor Pro Tem Vasquez seconded a motion to introduce an ordinance, reading by title only, repealing and amending Chapter of Title 9, Planning and Zoning, and Section of Title 13, Code Enforcement and Remedies, of the Cathedral City Municipal Code to permit and regulate Medical Marijuana Dispensaries pursuant to State Law to become effective only upon occurrence of the conditions specified herein and amended as follows: 1) Add that, in addition to a Supreme Court action, the ordinance would additionally become effective if the voters legalize marijuana; 2) Eliminate the ban regarding distance next to churches; 3) Amend Section to change the number of dispensaries from 2 to 1 per 20,000 residents (as determined by the State of California Department of Finance); 4) Amend Section to allow for operation on Sundays and expand the hours to 8 a.m. -10 p.m.; and 5) Modify the distance required between dispensaries from a quarter mile to 600 feet (amended as follows to 1,000 feet.) by M.O AMENDMENT Council Member Henry moved to change the distance required between dispensaries from 600 feet to 1,000 feet (similar to sexually-oriented businesses.) The maker and seconder accepted the amendment. In response to Mayor DeRosa, Council Member Pettis explained his suggested hours of operation (8 a.m. to 10 p.m.). Council Member Toles stated he did not object to the ordinance, but was hopeful that the matter would not be a contingency item, and be implemented immediately rather than be based on the action of the State Supreme Court or the voter s decision. The amended motion carried unanimously.

11 Page 11 of 13 Mayor DeRosa stated the dispensaries should not be for profit, rather be for the patients. Council Member Henry moved and Council Member Pettis seconded a motion to bring back this item as an urgency ordinance. The motion carried unanimously. 4. COUNCIL. Public Hearings for consideration of Transient Occupancy Tax (TOT) Sharing Agreement between City of Cathedral City and T2 Development, LLC., (T2) under Municipal Code Section 3.25 et seq. (L. Lukes/C. Green) (P ) PART A. Review of Tax Sharing Report, consideration of other evidence presented, and of comments of speakers, and determination by City Council as to designation of T2 Development, LLC. as Approved Business, and making of findings regarding public benefit. Part B. Consider Approval of Sales Tax sharing agreement between City of Cathedral City and T2 Development, LLC City Attorney Green presented the staff report, stating the agreement would allow T2 Development to allow the remodel and re-branding of the hotel from Doral Desert Princess Hotel to Double Tree Hotel. In response to Council Member Pettis, City Attorney Green explained the base year standard. In response to Council Member Henry, City Attorney Green discussed the changes from the agreement included in the packet and what was before the Council for consideration, including that the agreement would run with the land lease. In response to Council Member Toles, City Attorney Green discussed the agreement between T2 Development and Double Tree. In response to Mayor DeRosa, City Attorney Green explained that if the agreement with Hilton Double Tree (or a substitute acceptable to the City) was terminated, the City would find that they were not in compliance, and would cease sending funds, and was self-effectuating. He explained the requirement for the grand opening to occur prior to January 1, Mayor DeRosa opened public comments. There being no speakers, Mayor DeRosa closed public comments. Council Member Toles moved and Mayor Pro Tem Vasquez seconded a motion to review the Tax Sharing Report, consider other evidence and comments presented, and determine the designation of T2 Development, LLC. as Approved Business, and making

12 Page 12 of 13 of findings regarding public benefit, by Resolution unanimously. The motion carried Mont Williams, Newport Beach, T2 Development, explained the status of the lease. Council Member Pettis requested a fully executed copy of the agreement be provided to the City Council. Attorney Green explained that is required by statute. In order for the agreement to take effect, the Council first has to read the tax sharing report, and to find that the development has met the standards, then the Council approves the agreement, hence two motions for this item. Council Member Henry moved and Council Member Toles seconded a motion to approve the Transient Occupancy Tax (TOT) Sharing Agreement between City of Cathedral City and T2 Development, LLC., (T2) under Municipal Code Section 3.25 et seq., subject to the minor revisions and qualifications as stated by the City Attorney by M.O A. The motion carried unanimously. LEGISLATIVE ACTION 5. COUNCIL. Consider First Reading and adoption of an Ordinance, reading by title only, to Amend Municipal Code Title 13, "Code Enforcement and Remedies" to add a maximum Civil Penalty Limit for continuing violations of the Municipal Code. (C. Green) (Pg ) City Attorney Green presented the staff report. Council Member Henry provided an example of continued violations. City Attorney Green explained the maximum $100,000 civil penalty for continuing violations. He stated other remedies would be used if necessary. Mayor DeRosa opened public comments. There being no speakers, Mayor DeRosa closed public comments. Mayor DeRosa expressed concern regarding the code enforcement process. City Attorney Green stated the process worked well. He explained delays in the legal process. He stated, if it was the Council s desire, staff could review the process. Council Member Pettis suggested the City Manager s office review the process. Mayor DeRosa explained the $100,000 limit.

13 Page 13 of 13 Council Member Pettis moved and Council Member Henry seconded a motion to consider first reading and introduction of an ordinance, reading by title only, to amend Municipal Code Title 13, Code Enforcement and Remedies to add a maximum Civil Penalty Limit for continuing violations of the Municipal Code by M.O The motion carried unanimously. COUNCIL REPORTS ON CITIZEN INQUIRIES AND CONCERNS Mayor DeRosa read an from a resident expressing concerns regarding: 1) trash in the channel from the apartments on the west side of Bankside; 2) rocks dump from the house remodel on the northeast corner of Terrace and Mountain Shadow; and 3) tree trunk removal that could damage the new sidewalk and curb system. RECESS Mayor DeRosa recessed the Regular Meeting at 8:55 p.m. to the Study Session. ADJOURNMENT Mayor DeRosa adjourned the meeting at 9:25 p.m. Approved and adopted by the City Council and City Council serving and the Successor Agency to the Redevelopment Agency on, ATTEST: KATHLEEN DEROSA, Mayor Deputy City Clerk (seal)