Nov 17, 2021 City Council Study Session

>> IT IS 3 PM AND WELCOME

[1. CALL TO ORDER AND ROLL CALL]

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CALL PLEASE. >> ALL MEMBERS ARE PRESENT WITH THE EXCEPTION OF

MAYOR HOLMES. >> IF I MAY CAN I HAVE COUNCILMAN ORTIZ LEAD US IN THE PLEDGE.

>> SURE. >> PUT YOUR HAND OVER YOUR HEART AND REPEAT AFTER ME.

I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS, ONE NATION, UNDER GOD, INDIVISIBLE WITH LIBERTY AND JUSTICE FOR

ALL. AMEN. >> NEXT ITEM IS PUBLIC COMMENT. DO WE HAVE ANY

PUBLIC COMMENT? >> NO PUBLIC COMMENT MAYOR. GREG STEUBE GOT THE MICROPHONE IS OFF. WE WILL MOVE TO ITEM NUMBER

[4a. A City Council Study Session for Discussion and Possible Direction on the following: Cannabis Regulations within the City of Indio (Bryan H. Montgomery, City Manager)]

AND CITY MANAGER MR. MONTGOMERY WILL BE HANDLING THIS.

>> GREAT.

THANK YOU MAYOR PRO TEM FERMON.

WE DO HAVE ONE ZOOM REPRESENTATIVES FROM HDL.

HDL REPRESENTS CITIES EXCLUSIVELY ON THESE MATTERS OF CANNABIS.

THESE ARE FOLKS THAT YOU HAVE MET WITH IN THE PAST AND WE ARE PICKING UP THE CONVERSATION FROM THERE AS WELL AS GENERALLY SEEKING YOUR DIRECTION AS YOU'RE WELL AWARE THERE IS A FAN CURRENTLY UNITY RELATED TO CANNABIS. AFTER SOME PRESENTATION AND DISCUSSION FROM HDL TEAM WOULD LIKE TO KNOW IF THAT COUNCIL WOULD LIKE US TO CONSIDER LOOKING AT SOME REGULATIONS OTHER THAN A BAND. COURSE IF YOU LIKE TO CONTINUE THE BAND THE CONVERSATION ENDS ABOUT POINT. LIKE TO INTRODUCE DAVID MCPHERSON WHO IS A DIRECTOR OF COMPLIANCE FOR CANOPIES FOR HDL.

AJAY KOHLER RE- HAS A DEPUTY DIRECTOR WHO WILL PROBABLY LEAD MOST OF THIS CONVERSATION I WILL JUST COME SCHEINMAN MAYOR PRO TEM IF THAT'S OKAY. AJAY BIBLE SO MY TIME TO YOU I THINK IT'S ALL SET UP AND READY TO GO.

KENNY HARRIS OKAY AJAY COOK SECONDARY

FINE. CAN YOU HEAR ME? >> YES.

>> AND MIKE SHARING MY SCREEN NOW. CAN YOU SEE THE PRESENTATION?

>> YES. OKAY, GREAT.

AGAIN MY NAME IS AJAY CLEARY I WORK FOR HDL COMPANIES. HDL IS A MUNICIPAL CONSULTING FIRM.

WE WORK EXCLUSIVELY WITH PUBLIC AGENCIES AND ONE OF OUR CORE PRACTICE AREAS INCLUDES CANNABIS SERVICES. WE HELP CITIES DEVELOP AND IMPLEMENT BEST PRACTICES FOR REGULATING THE CANNABIS INDUSTRY. LET ME GO TO THE NEXT SLIDE. TO THAT FLIP FOR

YOU ALL? >> YES.

>> OKAY, THE FIRST LINE SHOWS RECENT HISTORY OF CANNABIS POLICY INDIO.

STARTING IN 2016 WITH STATEWIDE LEGALIZATION OF CANNABIS THROUGH PROPOSITION 64.

FOLLOWED BY A LOCAL BAND ON COMMERCIAL CANNABIS ACTIVITY IN INDIO IN 2017.

IN NOVEMBER 2019 THE INDIO CITY COUNCIL HELD A STUDY SESSION ON CANNABIS AND HEMP LAND-USE POLICIES. HOWEVER, SUBSEQUENT POLICY DISCUSSIONS ON CANNABIS WERE DELAYED DUE TO THE ONSET OF COVID-19 PANDEMIC. ON FEBRUARY 3, 2021 THERE WAS A DISCUSSION BETWEEN THE CITY COUNCIL AND STAFF ON A POSSIBLE RESUMPTION OF COMMERCIAL CANNABIS POLICY ANALYSIS. THAT BRINGS US TO THE SECOND CANNABIS STUDY SESSION WHICH IS BEING HELD TODAY. SO, DURING THE LAST STUDY SESSION CITY STAFF PRESENTED INFORMATION ON A WIDE RANGE OF TOPICS AS SUMMARIZED ON THE LEFT PORTION OF THE SLIDE.

TOPICS THAT WERE COVERED INCLUDE FEDERAL AND STATE REGULATORY FRAMEWORKS.

IDENTIFICATION OF KEY STAKEHOLDERS. A SUMMARY OF AVAILABLE CANNABIS LICENSE TYPES. CANNABIS LAND USE AND REGULATORY REQUIREMENTS. OPTIONS FOR COST RECOVERY THROUGH THINGS LIKE FEES AND TAXES. AS WELL AS A SUMMARY OF WHAT A COMMERCIAL CANNABIS APPLICATION PROCESS COULD LOOK LIKE IN INDIO.

TODAY'S DISCUSSION BUILDS ON THAT PRIOR STUDY SESSION BY FOCUSING ON 4 CORE POLICY AREAS.

FIRST OVERALL MARKET DEMAND FOR CANNABIS SECOND A SURVEY OF REGULATORY PROGRAMS IN OTHER SURROUNDING CITIES.

THIRD, POLICY OPTIONS FOR THE INDIO CITY COUNCIL TO

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SO THE FIRST POLICY AREA TO DISCUSS IS CANNABIS BUSINESS TYPES.

SPECIFICALLY WHAT TYPES OF CANNABIS BUSINESSES DOES THE CITY OF INDIO WANT TO ALLOW. AND WHAT TYPES OF BUSINESSES DOES THE CITY WANT TO BAN AND THAT DEPENDS ON MARKET DEMAND.

THIS CHART SHOWS THE LICENSE TYPES THAT EXIST WITHIN THE CANNABIS SUPPLY CHAIN. IT STARTS WITH CULTIVATORS WHO GROW CANNABIS PLANTS. MANUFACTURERS WHO CONVERT THE PLANT TO OTHER CONSUMABLE GOODS.

TESTING LABS WHO VERIFY THE QUALITY OF PRODUCT.

DISTRIBUTORS WHO MOVE THE PRODUCT FROM BUSINESS TO BUSINESS. RETAILERS WHO SELL CANNABIS GOODS TO CONSUMERS. RATHER THAN GO INTO DETAIL ON EACH LICENSE TYPE WHICH WAS COVERED IN THE PRIOR STUDY SESSION. I WANT TO FOCUS CITY COUNCIL ON THE LEFT SIDE OF THIS SLIDE.

MAINLY CULTIVATORS, MANUFACTURERS, DISTRIBUTORS AND TESTING LABS. THE KEY POINT TO CONSIDER FOR THESE LICENSE TYPES IS THAT THEY CURRENTLY OPERATE IN A HEAVILY SATURATED MARKETPLACE. WHAT I MEAN BY THIS IS THE ARE FAR MORE WHOLESALERS IN THE STATE OF CALIFORNIA TODAY THEN THERE AREN'T LICENSED RETAILERS TO SELL PRODUCTS TO CONSUMERS. AS A RESULT WE BELIEVE THAT POLICYMAKERS IN INDIO SHOULD REALLY BE FOCUSED FIRST AND FOREMOST ON THE TILT LICENSE TYPES.

IF THERE IS A DESIRE TO ATTRACT OTHER NON-RETAIL CANNABIS BUSINESS TYPES, YOU MAY ALSO CONSIDER ALLOWING CULTIVATION COMMITMENT FRACTURE, DISTRIBUTION AND OR LABORATORY TESTING. HOWEVER I WANT TO CAUTION THE CITY COUNCIL THAT THE DEMAND FOR THESE OTHER LICENSE TYPES IS NOT WHAT IT WAS EVEN AS IT WAS A FEW YEARS AGO. IT IS ENTIRELY POSSIBLE THAT THE CITY COUNCIL AUTHORIZED CANNABIS ACTIVITY IN THE WHOLESALE MARKET.

AND RECEIVE LIMITED INTEREST FROM BUSINESSES IN APPLYING FOR THESE LICENSE TYPES. THE OPPOSITE IS TRUE FOR RETAIL LICENSE TYPES. DUE TO ONGOING SHORTAGE OF RETAIL LICENSE IT'S STATEWIDE, THE CITY WOULD ALMOST CERTAINLY RECEIVE MORE APPLICATIONS FOR THIS LICENSE TYPE IN THE WOULD-BE LICENSES AVAILABLE. THE NEXT FEW SLIDES ARE MEANT TO DEMONSTRATE THIS. THIS SLIDE SHOWS THE NUMBER OF LICENSE CANNABIS BUSINESSES STATEWIDE.

AS YOU CAN SEE THERE ARE NEARLY 12,000 CANNABIS BUSINESSES IN CALIFORNIA.

BUT, LESS THAN 10 PERCENT OF THOSE BUSINESSES ARE RETAILERS. THE REMAINING 90 PERCENT OF BUSINESSES ARE NONRETAIL.

MANY OF WHICH STRUGGLE TO FIND MARKET FOR THEIR PRODUCTS.

AS I EXPLAINED BEFORE, DUE TO THIS MARKET GAP WE ARE BEGINNING TO SEE SOME CITIES RECEIVE FEW TO NO APPLICATIONS FOR NON-RETAIL BUSINESSES.

SUCH AS CULTIVATION, MANUFACTURING, DISTRIBUTION AND TESTING.

DESPITE LIFTING OF THE LOCAL BAND THROUGH REGULATORY ORDINANCE. THIS SLIDE SUGGEST THE OPPOSITE EFFECT FOR RETAILERS. WHAT YOU SEE ON THE LEFT IS A NUMBER OF CANNABIS RETAILERS THAT SELF-REPORTED TAXES TO THE STATE PRIOR TO THE PASSAGE OF PROPOSITION 64.

UNDER WHAT IS KNOWN AS THE OLD PATIENT COLLECTIVE MODEL.

ON THE FAR RIGHT IS THE NUMBER OF LICENSED RETAILERS THAT EXISTED IN THE STATE AS OF EARLIER THIS YEAR. THE DIFFERENCE BETWEEN THOSE BAR GRAPHS IS THE THAT EXIST BETWEEN THE NUMBER OF LICENSE RETAILERS THAT EXIST IN THE STATE TODAY. AND THE NUMBER AT THE CALIFORNIA MARKET COULD SUPPORT IF LOCAL BANDS WERE LIFTED.

IN OTHER WORDS, THERE IS A SIGNIFICANT SHORTAGE OF LICENSE CANNIBAL RETAILERS IN THE STATES RELATIVE TO OVERALL CONSUMER DEMAND.

EVEN USING A MORE CONSERVATIVE METHODOLOGY FOR HDL FOR ESTIMATE DEMAND. WHICH IS WHAT YOU SEEK IN THE MIDDLE BARS ON THIS CHART. THERE STILL A SHORTAGE OF ROUGHLY 1000 RETAIL LICENSES STATEWIDE.

THIS SLIDE TAKES THAT SAME DATA AND MAPS IT AT THE COUNTY LEVEL. COUNTIES WITH A DARKER SHADE OF RED HAVE A LARGER GAP IN THE NUMBER OF LICENSED RETAILERS.

WHAT HDL CONSERVATIVE ESTIMATES TO BE THE NUMBER NEEDED TO SUPPLY LOCAL DEMAND.

AS YOU CAN SEE RIVERSIDE COUNTY HAS AN ESTIMATED SHORTAGE OF 54 CANNABIS RETAILERS COUNTYWIDE.

DUE TO THE SIGNIFICANT NUMBER OF JURISDICTIONS THAT HAVE ADOPTED A LOCAL BAND ON COMMERCIAL CANNABIS ACTIVITY.

THIS MAP SHOWS THE LOCATIONS OF ALL

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INDIVIDUALLY MARKED USING THESE RED DROPS.

AS YOU CAN SEE FROM THE MAP CANNABIS STOREFRONT RETAILERS ARE CONCENTRATED NEAR MORENO VALLEY AND PALM SPRINGS. AND THIS IS A CLOSE-UP OF INDIO AND THE SURROUNDING REGION. THE CLOSEST RETAILERS YOU SEE TO THE CITY OF INDIA ARE THE CITIES OF COACHELLA, PALM DESERT, CATHEDRAL CITY AND PALM SPRINGS. RETAIL CANNABIS SALES TO INDIO PRESIDENTS ARE BEING CAPTURED IN PART BY BUSINESSES IN THESE NEIGHBORING JURISDICTIONS.

THOSE JURISDICTIONS ARE CAPTURING TAX REVENUES FROM PURCHASES FOR CANNABIS USERS RESIDE IN INDIA. THIS MAP IS MEANT TO COMMUNICATE THE FACT THAT DESPITE AN ONGOING BAND ON COMMERCIAL BUSINESSES IN INDIA THERE IS STILL IN FACT COMMERCIAL CANNABIS ACTIVITY TAKING PLACE WITHIN THE CITY TODAY.

EACH.YOU SEE ON THIS SLIDE REPRESENTS THE ADVERTISED LOCATION OF A CANNABIS DELIVERY SERVICE. MARKETED ON A WEBSITE KNOWN AS LEAD MAPS.

AVAILABLE FOR AT HOME DELIVERY IN THE SURROUNDING AREA INCLUDING INDIO. THE KEY TAKE AWAY FROM THIS SLIDE IS A FACT THAT CANNABIS IS ALREADY BEING PURCHASED AND CONSUMED WITHIN CITY LIMITS. THE MAIN DECISION BEFORE THE CITY COUNCIL THEREFORE, IS WHETHER THAT ACTIVITY SHOULD BE REGULATED BY THE CITY AND TAXED IN A MANNER THAT OFFSETS THE REGULATORY COST. THIS SLIDE IDENTIFIES SURROUNDING JURISDICTIONS THAT ALLOW COMMERCIAL CANNABIS ACTIVITY.

AS YOU CAN SEE ALL OF THE CITIES IDENTIFIED HERE ALLOW FOR RETAIL SALES. INTERESTINGLY MOST OTHER CITIES ON THIS SLIDE ALSO ALLOW FOR OTHER WHO SELL LICENSE TYPES. THAT INCLUDES CULTIVATION, MANUFACTURING, DISTRIBUTION AND TESTING.

A HANDFUL OF THE CITIES IN RIVERSIDE COUNTY ALSO ALLOW FOR ON-SITE CONSUMPTION LICENSE TYPES.

WHICH INCLUDES CANNABIS LOUNGES AND SPECIAL EVENTS. IN ADDITION TO DETERMINING WHICH TYPES OF COMMERCIAL CANNABIS ACTIVITIES PERMIT LOCALLY.

OR WHETHER TO MAINTAIN AN ONGOING BAND. ANOTHER KEY DECISION FOR THE CITY COUNCIL IS WHETHER TO ALLOW THE BUSINESSES OR WHERE TO ALLOW BUSINESSES TO LOCATE THIS SLIDE SUMMARIZES THE TYPES OF ZONES THAT COMMERCIAL CANNABIS ACTIVITY IS ALLOWED WITHIN SOME OF THE NEIGHBORING JURISDICTIONS.

TO SIMPLIFY THIS SLIDE I INCLUDE RETAIL LICENSE TYPES ONLY. THIS IS ONLY FOR CANNABIS RETAILERS.

AS YOU CAN SEE MOST CITIES ALLOW CANNABIS RETAIL ACTIVITY IN COMMERCIAL AND INDUSTRIAL ZONES. SOME CITIES SUCH AS MORENO VALLEY ABOUT RETAIL ACTIVITY AND MIXED USE ZONES AS WELL.

COUPLE OF CITIES TO ALLOW RETAIL BUSINESSES AND INDUSTRIAL ZONES ONLY FOR EXAMPLE CORONA AND HEMET.

LOCAL JURISDICTIONS ARE GIVEN FULL DISCRETIONS WITH WHERE CANNABIS THIS IS CAN OPERATE. HOWEVER IT CAN BE HELPFUL TO SEE HOW OTHER CITIES IN THE REGION HAVE SET THE ZONING REQUIREMENTS FOR CANNABIS BUSINESSES TO USE AS A BENCHMARK FOR INITIAL DISCUSSIONS. THIS SLIDE PROVIDES A VERY ROUGH ESTIMATE FOR TAX REVENUES THAT COULD BE GENERATED BY 4 STOREFRONT RETAILERS IN INDIO. THIS IS MEANT AS AN EXAMPLE. NOT AS A PRECONSTRUCTION. WE ASSUME AVERAGE GROSS RECEIPTS OF FORM MILLION DOLLARS PER BUSINESS ACTUAL GROSS RECEIPTS MAY VARY AND COULD BE HIGHER OR LOWER DEPENDING ON THE OPERATOR AS WELL AS HOW MANY RETAILERS THE CITY MAY ALLOW. ASSUMING A 4 PERCENT BUSINESS LICENSE AND GROSS RECEIPTS TAX THAT WILL TRANSLATE TO $640,000 IN BUSINESS LICENSE TAX REVENUES.

PLUS I $60,000 IN SALES TAX REVENUES. FOR A TOTAL OF $800,000 IN AVENUEANNUAL REVENUES FOR THE CITY. ASSUMING A 5 PERCENT BUSINESS LICENSE TAX THAT NUMBER ROSE TO $960,000 ANNUALLY.

ASSUMING A 6 PERCENT TAX.

THAT NUMBER ROSE TO $1.1 BILLION ANNUALLY. SO, THAT CONCLUDES MY PORTION OF THE PRESENTATION. I WILL TURN THE PRESENTATION OVER TO CITY STAFF TO GO THROUGH INITIAL POLICY OPTIONS FOR THE CITY COUNCIL. I WILL BE AVAILABLE FOR QUESTIONS AT THE END OF THE POLICY DISCUSSION ALONG WITH DAVID MCPHERSON WHO WAS OUR DEPUTY OR I'M SORRY OUR DIRECTOR OF CANNABIS.

>> GREAT, THANK YOU AJAY.

CERTAINLY COUNCIL OF MYSELF, THE CITY ATTORNEY, CHIEF OF POLICE AS WELL AS COMMUNITY TO MOMENT DIRECTOR KEVIN STEINER TO HELP TALK ABOUT SOME OF THESE. WE LIKE TO KEEP IT

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WE KNOW THERE'S MORE RESEARCH TO BE DONE.

THAT ASSUMES THAT THIS VERY FIRST QUESTION WE NEED YOUR GUIDANCE ON. CURRENTLY THERE IS A BAN IN THE CITY OF VIDEO ON ALL OF THESE.

IS YOUR DESIRE THAT WE LOOK AT OPTIONS THAT WOULD REGULATE PERHAPS FOCUSING SUGGESTED BY THE CONSULTANTS ONLY ON RETAIL OR SHALL WE CONTINUE THE BAND? SO MR. MAIR PRO TEM.

NOT MAKING ANY FINAL DECISIONS OF THE STUDY SESSION BUT GIVING GUIDANCE ON THAT.

IF THERE'S NOT SUPPORT FROM A FEW OF YOU BEEN A STUDY SESSION ENDS. WE WOULD BE

HAPPY TO HEAR YOUR INPUT. >> THINK IT CITY MANAGER AND THANK YOU FOR THE PRESENTATION.

TO ACCOMMODATE WITH CITY MANAGER SPOKE ON, LOOKING FOR A CONSENSUS ON HOW WE WILL MOVE FORWARD. WHETHER IT WORK IN A BAND OR REGULATE CANNABIS IN OUR CITY. CURRENTLY WE DO HAVE A BAND. I LIKE TO OPEN IT UP TO THE COUNCIL FOR QUESTIONS AND OR DISCUSSION WITH THE CONSULTANT. UPON THE CONCLUSION WE WILL OPEN IT UP TO THE PUBLIC.

I ONE PUBLIC COMMENT OR A QUESTION AND WE WILL GO

FROM THERE. >> I'M GOING OVER KATE WITH GOING TO THE PUBLIC COMMENT FIRST.

>> THEN WE WILL COME WITH A PUBLIC COMMENT. MR. PAUL –. DID I GET THAT

RIGHT? >> PRETTY CLOSE.

>> ALL RIGHT, THANK YOU. >> HELLO PAUL – FROM A RESIDENT OF BERMUDA DUNES SUB VERSION OF INDIO.

I'M A LIFER GOOD INDIO HIGH SCHOOL GRADUATE. I OWN A NUMBER OF COMMERCIAL PROPERTIES IN INDIO.

ON A CONTINUOUS 40 ACRE PARK APPEARED MANUFACTURING WHICH IS NEXT TO CITY OF COACHELLA ASSUMING WE'VE HEARD ABOUT THE ISSUES WITHOUT. TRYING TO CONVERT TO CONVERT IT INTO INDUSTRIAL PROPERTY BUT, REGARDING THIS ORDINANCE THE CONSULTANT WAS TALKING MAINLY ABOUT RETAIL.

RETAIL IS AN IMPORTANT PART. YOU CAN GET THE GROCERIES OUT IF YOU DON'T HAVE A STORE. I THINK HE'S DIRECTING YOU ONLY TO RETAIL. I THINK IT'S MISSING MANUFACTURING, THE GRILL AND CULTIVATION.

HE MENTIONED TO IN A DISINGENUOUS WHITE YOU SHOULDN'T CONSIDER IT WAS MY OPINION. I OWN A COMMERCIAL PROPERTY AND COACHELLA AS WELL.

ONE OF THE GROSS IS RECENTLY IN THE LAST 4 QUARTERS THE CITY COACHELLA 200,000 AND CULTIVATION TAX.

NOT TO MENTION THE TAX FOR THE NORMAL STATE TAX AND NOT TO MENTION BEFORE TAX FOR THE AMOUNT OF CULTIVATION SPACE. SUPPLY AND DEMAND, FREE MARKET. I WOULD OPEN THIS UP AND CULTIVATION IN MANUFACTURING, DISTRIBUTION AND LET THE MARKET DECIDE.

WHY WOULD THE CITY NOT WANT TO ALLOW IT WHERE THE MARKET COULD WEED OUT IF YOU BUILT THOSE THAT ARE GOOD BUSINESS OPERATORS SUPPORT THE COMMUNITY, PAY THEIR TAXES AND THOSE THAT COUNT. I WOULD BE OPPOSED IF THE ORDINANCE IS PASSED IF I'M SUCCESSFUL I WILL PREVAIL. IF NOT I WON'T.

JUST LIKE ANY RETAIL BUSINESS. SO I THANK YOU'RE MISSING THE OPPORTUNITY TO GET LICENSING IN ALL OF THE DIFFERENT TYPES OF BUSINESSES IN THE CITY.

AND GLEAN THE REVENUE FROM THAT. GLEAN THE PROPHET.

HAVE A TAX STRUCTURE THAT'S REASONABLE.

SOME OF THE TOXIC STRUCTURES OF A BIT MORE AND LESS IN SOME CITIES BUT SOMETHING THAT KEEPS THE BUSINESSES OPERATING. THE CITY OF IF YOU CAN BENEFIT FROM IT.

I OWN A NUMBER OF PROPERTIES IN INDIA LIKE I SAID. SOMEONE AVENUE 45.

SOME ON THE OUTSIDE OF THE TOWN APPEARED 40 ACRES.

I THINK THIS BEACH MODEST OPPORTUNITIES ON THE EAST SIDE OF VIDEO NEAR CULTIVATION ALREADY AND COACHELLA. I'M NEAR THAT THING, IT'S A SANITARY DISTRICT. MY BUSINESS IS OVER THERE.

GET THAT NIGHT A PERFECT SENSE OF THAT. WHEN YOU WORK THERE YOU DON'T SPELL IT AFTER THE FIRST DAY. A LOT OF THING WITH CULTIVATION IS OH MY GOD WE SPELL IT.

YOU DON'T. I WOULD MUCH RATHER HAVE THE FRAGRANT SMELL OF CANNABIS THE FREQUENT SMELL OF A SEWER TREATMENT PLANT. I'M JUST PUTTING IT IN PERSPECTIVE.

JUST WE ALL KNOW ABOUT ECONOMISTS USER I AM A BUSINESS OWNER. I'VE NEVER USED CANNABIS BUT I SUPPORT THAT USE THE CANNABIS AS THEIR MEANS OF RELAXATION OF MEDICAL USE.

THAT'S NOT WHAT I DO.

BUT THAT'S WHAT MANY, MANY PEOPLE USE FOR THEIR RECREATION. I WOULD NEVER FROWN UPON THAT. SO THEY

GIVE HER TIME. >> THE GOOSE.

WE APPRECIATE YOUR COMMENTS.

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KENNETH CHURCHILL. >> I HAVE AN ADDITIONAL IN

ZOOM AS WELL. >> IN ZOOM? OKAY. JUST A REMINDER IF YOU HAVE COMMENTS PLEASE FILL OUT THE REQUEST TO SPEAK AND I WILL HAND IT OVER TO THE CLERK.

CHRIS GOOD EVENING COUNCIL MIGHT NAME IS KENNETH CHURCHILL I'M CEO OF WEST COAST CANNABIS CLUB. WE HAVE 3 LOCATIONS HERE AND COACHELLA VALLEY.

CAME HERE TONIGHT TO OFFER MYSELF AS AN ACTUAL OPERATOR HERE AT COACHELLA VALLEY AS A RESOURCE.

SOMEONE WHO COULD PUT SOME OF THIS IN PERSPECTIVE. THE JUDGMENT FROM HDL MENTIONED THAT THERE ARE 8 STORES AROUND INDIO AND DELIVERIES THAT ARE OPERATING IN INDIO.

THE RESIDENTS OF INDIO ARE ALREADY USING A PURCHASING CANNABIS OR JUST GOING OTHER PLACES TO DO IT WITH A PURCHASING CURRENTLY ON THE BLACK MARKET. I THINK THE MOST IMPORTANT THING FOR INDIO TO LOOK AT IS WHAT'S A WEIGHT YOU CAN BRING CANNABIS INTO THE CITY ALSO CONTROL HOW YOU DO IT SO YOU CAN MAKE SURE IT'S PEOPLE WHO WERE OPERATING SPENCERS THAT YOU WANT OPERATING EXPENSE READS THAT THEY HAVE THE SAME GOALS AND VISIONS OF THE CITY. AND YOU CAN CONTROL WHERE THEY ARE VERSUS RIGHT NOW WITH AN OUTRIGHT BAN. EVERYONE'S GOING OUTSIDE OF THE CITY ARE USING THE CURRENT BLACK MARKET.

AT THE VIDEO STAY THE CITY REROUTE OF YOU TODAY BY 3 PROPERTY OWNERS STOP ME AND ASK IF WOULD BE INTERESTING IN OPENING A CANNABIS CULTIVATION FACILITY IN THEIR PROPERTIES THAT THEY OWN HERE IN INDIO. THE PROPERTY OWNER WHO JUST SPOKE TO YOU HERE. THE PEOPLE IN INDIO WANT THIS OPPORTUNITY TO GET A PIECE THIS INDUSTRY THAT IS CURRENTLY SOMETHING THERE USING BUT THEY CAN'T EVEN OWN BUSINESSES IN THEIR OWN CITY BECAUSE IT'S ALREADY BAND.

WE WOULD LIKE TO GIVE YOU GUYS THE OPPORTUNITY TO COME TO ANY OF OUR FACILITIES SO YOU CAN SEE THIS IS NOT SOMETHING THAT'S INTIMIDATING.

THESE ARE LOCAL BUSINESSES.

THESE ARE PEOPLE FOR SMALL BUSINESS OWNERS. RIGHT NOW IN THE LAST YEAR WE PAID OVER 1 AND A HALF MILLION DOLLARS IN LOCAL TAXES TO COACHELLA VALLEY CITIES AND CATHEDRAL IN PALM DESERT.

WE EMPLOY OVER 55 PEOPLE BUT THE MINIMUM WAGE OF $15 AND SELLERS GOING UP TO $120,000 WORKING INSIDE OF HER BUSINESS. THIS IS WHAT WERE TRYING TO BRING TO THE CITY OF INDIO.

NOT TRYING TO BE A DISTRACTION.

WE UNDERSTAND IT'S IMPORTANT TO CONTRIBUTE TO THE COMMUNITY.

THE ONLY WAY TO DO IT'S FOR YOU GUYS TO GIVE US THE OPPORTUNITY TO COME INTO THE CITY IN A WAY THAT YOU THINK ACTUALLY WORKS FOR YOUR CITY AND FOR YOUR LOCAL RESIDENTS. THANK YOU.

>> THANK YOU MR. CHURCHILL. WE DO HAVE A REQUEST TO SPEAK ON ZOOM.

CHRISTOPHER MARTINEZ. >> NO.

I HAVE AARON VELARDE. DID YOU WANT TO DO THE IN PERSON.

>> LET'S DO THE IN PERSON FIRST.

MR. MARTINEZ. >> AND THEN WHEN HE IS DONE WE WILL GO WITH AARON VELARDE FOLLOWING BY PAULA

TURNER. >> OKAY I WILL REFER TO YOU AND YOU CAN CALL THEM UP. I CAN SEE THEM ON

HERE. >> MR. MARTIN AS PER THE FLOORS OR CIRCUIT COURTS THEY CUTE, GOOD AFTERNOON ELECTED THEY THE CITY STAFF AND THE COUNCIL TO GIVE ME THE OPPORTUNITY TO SPEAK. MY NAME IS CHRISTOPHER MARTINEZ I BET CANNABIS CONSULTANT IN 20 17TH THAT'S WHY, TO THE CITY OF INDIO TO SPEAK ABOUT THE SUBJECT AND ENCOURAGE THE CITY TO MOVE FORWARD BECAUSE ALL THE SURROUNDING CITIES WERE DOING SO.

I JUST WANTED TO PIGGYBACK WITH THE OTHER 2 GENTLEMEN HAD SPOKEN.

THIS OPERATION PEOPLE ARE PURCHASING CANNABIS FROM YOUR CITY.

CURRENTLY THE CITY OF VIDEO IS NOT BENEFITING FOR THE INDUSTRY AT ALL.

OTHER SURROUNDING CITIES HAVE BEEN PERMITTING FEES FROM TAXES. FROM JOBS NOT ONLY JOBS BUT YEAR ROUND JOBS. NONSEASONAL JOBS.

THE SECOND GENTLEMAN I SPOKE WITH THESE JOBS ARE HIGH SALARY, WELL-PAYING AND VERY QUALITY TYPE JOBS THAT THE CITY OF INDIA COULD BENEFIT FROM IF THEY WERE TO MOVE FORWARD ON THE LICENSING PROCESS.

I THINK IT'S MY OPINION THAT THE CONSULTING YOU CURRENTLY HAVE IS SWING YOU GUYS AWAY FROM THESE OTHER WHAT THEY CALL WHOLESALE LICENSE TYPES.

MY PAJAMAS SAID LET THE MARKET DECIDE.

A LOT OF THESE PEOPLE HAVE AN OPPORTUNITY TO OPERATE THESE BUSINESSES WITHIN YOUR CITY.

GIVE THEM A CHANCE TO THRIVE AND IF YOU DON'T SUCCEED AT LEAST TO GIVE UP THAT OPPORTUNITY AND THE CITY BENEFITED FROM EITHER SOME DEVELOPMENT PROPERTIES.

I LIKE TO USE A CITY OF COACHELLA AS IT EXAMPLE.

THEY'RE DEVELOPING REBUILDING TO WRITE DOWN THAT WERE BUILT IN THE 1900S. AN INVESTOR COMMAND, RETROFITTED IT, BUILT PRETTY MUCH AND REDESIGN THE ENTIRE BUILDING.

ON THE CITY'S DOWNTOWN IS GETTING NOT RETENTIVE WIDE BUT REJUVENATED BECAUSE THIS INDUSTRY. THE OTHER SUBJECT I HAVEN'T HEARD ABOUT AND ABOUT ADVOCATING IS A SOCIAL EQUITY.

SOCIAL EQUITY IS IMPORTANT.

THIS INDUSTRY PREVIOUSLY WAS BANNED FEDERALLY, STILL FEDERALLY

[00:25:01]

I FEEL THAT WHEN YOU HAVE LOCAL RESIDENTS BEING A BUSINESS OWNER THEY WILL CARE FOR AS MUCH AS ANYONE ELSE IF NOT MORE. THEY WILL LOOK OUT FOR THE LOCAL RESIDENTS TO NOT ONLY THRIVE BUT BE IN HIGHER POSITIONS WITHIN THAT BUSINESS. SO ALL IN ALL I LIKE TO ENCOURAGE THE CITY COUNCIL TO REALLY, REALLY CONSIDERATE.

I SPOKE AGAIN IN 2017.

WERE 4 YEARS DOWN THE ROAD AND STILL THE SAME POSITION.

LIKE TO OFFER MYSELF AS A RESOURCE.

HELP BUSINESSES GET LICENSED. PRETTY MUCH EVERY TYPE OF LICENSE TYPE EXCEPT FOR LAB TESTING.

I HAD EXPERIENCE GOING FROM THE GROUND UP BUILDING ALL THE WAY PERMITTING TO THE STATE LEVEL AND OPERATIONS. I THINK THIS IS AN ISSUE, AN INDUSTRY THAT WILL BE THE FUTURE AND I THINK THE CITY OF INDIO NEEDS TO OR SHOULD BENEFIT ONE WAY OR ANOTHER. I APPRECIATE

YOUR TIME. THANK YOU. >> THINK IT MR. MARTINEZ. MS. SANCHEZ. WE HAVE SOMEONE ONLINE QUICKBOOKS AARON VELARDE YOU HAVE 3

MINUTES. >> ALL RIGHT, CAN YOU GUYS

HEAR ME? >> YES.

>> GOOD EVENING, SO THE COUNCIL.

MY NAME IS AARON VELARDE ON THE ORGANIZER WITH UNITED FOOD AND COMMERCIAL UNIT LOCAL 1167. UFCW 1167 IT REPRESENTS 20,000 MEMBERS IN THE COUNTIES OF RIVERSIDE, SET A BUDGET IN ALL PARTS OF IMPERIAL AND LA COUNTIES. HER HEART WORKING MEN AND WOMEN WORK AT YOUR GROCERY STORES AND DRUG STORES SUCH AS FONTS, FREE FLATS, CVS AND RITE AID'S. UFCW HAS BEEN INVOLVED IN THE CANNABIS INDUSTRY FOR YEARS.

REVERBS THAT CANNABIS WORK ACROSS THE COUNTRY. FROM OUR WORK ACROSS THE US UFCW HAS BEEN ABLE TO PULL BEST PRACTICES FROM DIFFERENT CITIES AND STATES. THIS SOURCE AS OPEN UP DISCUSSIONS IN REGARDS TO CANNABIS WE WOULD LIKE TO SHARE SOME PRACTICES THAT WOULD HELP GUIDE THE PROCESS THAT ULTIMATELY BENEFIT THE CITY OF INDIO.

WE FULLY SUPPORT THE CITY OF MOVING FORWARD ALLOWING COMMERCIAL CANNABIS AND WE ALSO WANT TO MAKE SURE THE CITY PASSES AN ORDINANCE THAT REGULATES THE INDUSTRY IN THE WAY THAT PROMOTES SUSTAINABILITY FOR THE COMMUNITY AND ITS WORKERS. TO ENSURE THIS IS A SUSTAINABLE EXPORT TO HAVE EMPLOYERS IN A GOOD IS THIS OPERATION PROVIDE GOOD QUALITY JOBS.

TO ACHIEVE THIS UFCW RECOMMENDS A CANNABIS ORDINANCE INCLUDES ONE, LABOR PEACE RECURRENT FOR OPERATORS WITH 5 OR MORE EMPLOYEES. HAVING A LOW THRESHOLD FOR LABOR PEACE ENSURE MORE WORKERS ARE GIVEN THE OPPORTUNITY TO ORGANIZE A WORKPLACE AND SHE WAS REALLY WHETHER THEY WANT UNIT REPRESENTATION.

HAVING THE UNION AND THE STEAM INDUSTRY CREATES AN ADDED LEVEL OF PROTECTION FOR BOTH WORKERS AND THE EMPLOYERS THEMSELVES.

WE PREVIOUSLY WORKED WITH CATHEDRAL CITY AND COACHELLA WHO BOTH LOWERED THE THRESHOLD DOWN TO 10 EMPLOYEES AS WELL AS PALM SPRINGS AND POMONA WHO LOWERED BOTH BEARS DOWN TO 5. AND CORONA REMOVE THE THRESHOLD ALTOGETHER.

REQUIRES ALL PAID FOR CANNABIS BUSINESSES.

SECONDLY WE RECOMMEND THE CITY AWARDS ITS LICENSES TO BEST BUSINESS OPERATORS. THOSE THAT CARE ABOUT THE COMMUNITY AND FULFILL LABOR STANDARDS FOR TRANSPARENCY AND FAIRNESS WE RECOMMEND USING A MERIT-BASED POINT SYSTEM TOWARD LICENSES TO GOOD EMPLOYERS. A GOOD MERIT-BASED SYSTEM WORKS TO ENSURE WE HAVE OPERATORS THAT ARE COMMITTED TO OUR CITY IN THE LONG RUN. THERE IS NO SECRET THAT THIS INDUSTRY IS FULL OF SPECULATORS AND FOLKS ARE HOPING TO CASH IN QUICKLY ON WHAT HAS BEEN DUBBED A GREEN RUSH.

WE KNOW THAT ISN'T GOOD FOR EMPLOYEES OR MEMBERS OF THE COMMUNITY. A STRONG MERIT-BASED SYSTEM WITH AWARD POINTS TO OPERATORS PAINT LIVING WAGES PROVIDE ACCESS TO HEALTHCARE. SHOW THEY DO NOT HAVE HISTORY OF LABOR VIOLATIONS. HAVE PLANS TO MITIGATE MORE NOISE, SMELL ANOTHER CONCERNS COMMUNITY MEMBERS MAY HAVE EXPRESSED.

AND ALREADY HAVE EXISTING CONTRACTS AND OTHER PLACES.

THANK YOU FOR BRINGING US TOGETHER TO HAVE A SUPPORT CONVERSATION. UFCW IS COMMITTED TO WORKING WITH THE CITY OF INDIO TO MAKE SURE THIS INDUSTRY AND THE WORKERS WHO BRING VALUE TO THE INDUSTRY BOTH FLOURISHED.

THANK YOU. >> THANK YOU FOR YOUR COMMENTS MR. VELARDE. MS. SANCHEZ TO BE HAVE ANOTHER ONE?

>> YES, POLYP TURN IT YOUR

3 MINUTES. >> HEITMAN AMOS PAULA TURNER. I'M WITH DESERT PACIFIC PROPERTIES.

OUR SPECIALISTS ENCOMPASS REAL ESTATE AS WELL AS CB CAN THE VOICE OF THE COACHELLA VALLEY. DESPITE THE RECOMMENDATION TO CONSIDER CANNABIS BUSINESS IN THE CITY. I AGREE WITH PAUL BROUSSARD 3 TELE WE SHOULD CONSIDER CULTIVATION MANUFACTURING. I'VE BEEN TRYING TO BRING INDUSTRY THROUGH COACHELLA RIGHT NOW FOR OVER 30 YEARS.

CANNABIS IS OUR NEW INDUSTRY. MESSIAH GENERATED RENTABLE FOR CANNABIS TAX IS CREATE MANY JOBS IN THE VALLEY BRINGS YEAR-ROUND EMPLOYMENT VERSUS SEASONAL

[00:30:03]

ALSO IT HAS BEEN GREAT MANY HIGH-PAYING JOBS AND LOCATING NEW PEOPLE INTO HER BELLY. DESERT HOT SPRINGS, CATHEDRAL CITY, PALM SPRINGS, PALM DESERT, THE UNINCORPORATED AREAS INCLUDING BERMUDA DUNES, THOUSAND PALMS, THERMAL AND MECCA. THE ONLY CITIES LEFT THAT DON'T SUPPORT THE CANNABIS IN THE AREAS IS RANCHO MIRAGE, THE KEY TO AND INDIO. I WOULD HIGHLY ENCOURAGE YOU TO CONSIDER STARTING THE ITEM AND ALSO NOT JUST RETAIL.

LET THE MARKET DECIDE TO LOCATE.

I'VE BEEN INVOLVED IN MANY AREAS COMPETING AGAINST MANY AREAS FROM AFAR AND SOUND WHEN WERE COMPETING AGAINST ALONSO, VICTORVILLE, CALIFORNIA CITY, ONE OF THE QUALITY OF LIFE OUT HERE THAT PEOPLE DESIRE AND IT'S VERY EASY TO LOCATE THEM OUT HERE AND IT'S JUST GOING TO BE A NAPA VALLEY OF CANNABIS OUT HERE AND I HATE TO SEE THE CITY MISS OUT ON THAT OPPORTUNITY.

THANK YOU VERY MUCH. >> VICKI MRS. TURNER. TO EVERY MORE.

>> I HAVE NO MORE. >> OKAY WE HAVE NO MORE COMMENTS ONLINE. BUT I WOULD LIKE TO DO BEFORE AND CITY MANAGER, MAYBE THIS IS OKAY IS ASKED THE COUNCIL AN INTEREST OF TIME, WORK AND RESOURCES DURING WANT TO PROCEED WITH THIS DISCUSSION DOWN OR SHOULD WE CONCLUDE.

>> UNLIKE WOULD LIKE TO KNOW THERE'S A DESIRE FOR THE MAJORITY OF YOUNG TO HAVE US CONTINUE TO RESEARCH MANY OF THE MATTERS SET UP AND BROUGHT UP THIS EVENING SOME POSSIBLE REGULATIONS IS ON THESE ISSUES THAT WERE DISCUSSED.

WE CAN GET PAST THAT POINT I THINK THAT GETS US MOVING FORWARD. I WOULD SUGGEST THAT POWERPOINT IF WE COULD PULL THAT BACKUP DOES HAVE 4 OR 5 OTHER DISCUSSION ITEMS THAT PERHAPS COULD COME AT A LATER DATE.

AT LEAST THE DECISION TO BAN OR REGULATE WE NEED TO KNOW.

>> I AM. IT'S A LOT TO TAKE IN RIGHT NOW. THAT'S A LOT TO LEARN. WERE STILL EVOLVING.

I WOULD LIKE TO OPEN UP TO THE COUNCIL. TO SEE WHAT DIRECTION WE LIKE TO GO

WITH THIS. >> AS FOR MYSELF I THINK WE SHOULD OPEN UP FOR RETAIL, CULTIVATION AND MANUFACTURING. I THINK A LOT OF THE BUSINESSES WE SEE THAT ARE SUCCESSFUL IN OTHER CITIES MIGHT ACTUALLY THEY MIGHT ACTUALLY BE MORE INTERESTED IN DOING A BUSINESS HERE.

WE CAN BRING A LOT OF THOSE BUSINESSES THAT ARE OUT ON THE FURTHER RB OF THIS OF OTHER CITIES. IT MAY BE THE BE MORE INTERESTED BEING HERE WITH WORKFORCES. THESE ARE TO THE WORKFORCE HERE AND INDIO.

THE SOCIAL EQUITY PROGRAM IS STRICTLY IMPORTANT.

THERE GET LOCAL OWNERSHIP BUT ALSO TO GRANT SEMIS LICENSES TO THE PEOPLE WHO RISK THEIR FREEDOMS TO KEEP THIS INDUSTRY GROWING. FOR SO MANY YEARS WHILE IT WAS STILL IN THE GRAY AREA. I THINK THESE PEOPLE DO NEED TO BE PUT AT THE FRONT OF THE LINE WHEN IT COMES TO THESE LICENSES.

SOME OF THE IDEAS I HEARD WAS THE MERIT-BASED POINT SYSTEM.

I'VE SEEN THAT WORK VERY WELL.

IN OTHER CITIES. THAT'S WHERE YOU PUT IN THE SOCIAL EQUITY COMPONENT WE ADD POEMS BASED ON OTHER LOCAL OWNERS. MUCH EXPANSION HAVE INDUSTRY? YOU HAVE A LOCAL WORKFORCE OUR MATURE LOCAL WORKFORCE CIVIC AND OTHER COMPONENTS HIM FROM OTHERS BUSINESSES GO TO WORK LOCAL RESIDENTS IN LAW THESE JOBS GO TO LOCAL RESIDENTS HAVE BETTER CONTROL OVER THE CANNABIS

UNIVERSITY. >> RATE CUTS MEMBER ORTIZ.

MEMBER MILLER? >> WASN'T IN FAVOR OF RETAIL OR ANY OF THIS AT THE START. JUMPING IN HEADFIRST WAS WHERE THE OTHER CITIES WERE AND I DON'T THINK IT WAS VERY SMART ON OUR PART.

I SEE IT AS A PART OF POINT FORWARD. NOT BIG ON MANUFACTURING AND CULTIVATION MUSCLES IN THE PROPER PLACES.

OKAY WITH RETAIL.

I THINK IT NEEDS SOMETHING. FORGOT TO DO IT IT'S ON THE SOCIAL BASE ISSUE A PRIVILEGE TO ME.

I WANT THE BEST.

ALL OF THE PEOPLE IF THEY'RE GONNA RUN THESE BUSINESSES HAVE A VESTED INTEREST IN OUR COMMUNITY KNOW WITH HER JOY NOT SOMEBODY AFTER STARTING UP AND GOING FOR IT. MY CONCERN IS MUCH WITH NOT HAVING AN OPPORTUNITY FOR LOCALS.

BECAUSE IDEA. SAME TIME THERE'S LOCAL BUSINESSES THAT ARE ALREADY HERE AND OF GREAT REPETITION SECOND

[00:35:03]

WE DON'T HAVE CULTIVATION OR MENTORING THAT WE DON'T.

THIS COULD BE SOMEWHAT RAPID HAVE IT SOMEWHERE WAY. THE SAME THING.

ONCE YOU START PUTTING THIS INTO CERTAIN AREAS IT AFFECTS THE QUALITY OF LIFE FOR PEOPLE.

WE GOT TO THINK IT THROUGH. BEFORE GOING TO LIKE MR. – I DIDN'T NOTICE EITHER PAUL. WITH THE MASK ON.

YOU DON'T GET 40 ACRES OUT THE MIDDLE OF NOWHERE.

THAT'S PERFECT FOR MINUTE FRACTURING AND CULTIVATION.

YOU WANT TO DO BY THE RECYCLE PLANT AND VICE IMITATION OF GOOD WITHOUT. WE WANT TO PUT IT NEXT INDIO HIGH SCHOOL.

THE ANSWER IS NO.

IT'S PROBABLY THOUGHT THROUGH.

4 I DON'T PER SOUTHEAST TAKEN IT. MENELIK OF RIVER SMOKE MARIJUANA TERRACE WITH YOU. NOT PASSIVE VALUE TO A LOT OF PEOPLE IN PUBLIC FOR RECREATIONAL OFFER FOR MEDICAL. SOME FRIENDS OF CANCER THAT UTILIZED IT BEFORE AND A LIFE THAT HELP THEM WITH GETTING THROUGH SOME DIFFICULT TIMES.

GOING TO LOOK AT IT AND DO IT LET'S DO IT RIGHT. I'VE SEEN WEST COAST BEFORE AND TALK TO THEM AND TO THEIR PROPERTIES.

I MEAN, THERE'S QUITE A FEW OUT HERE THAT HAVE DONE IT RIGHT. FOR AN ADULT OR DO IT RIGHT GOOD WITH RETAIL.

THE REST YOU HAVE TO CONVINCE ME OF WHERE IT'S

GONNA GO. >> THANK YOU COUNCILMEMBER MILLER. WOULD YOU HAVE COUNCILMEMBER AMITH ONLINE. EFFEMINATE

COUNCIL, SCOTT'S MEMBER? >> THANK YOU MAYOR PRO TEM. I DIDN'T HEAR HDL RELATE GIVE US ANY ANY EDUCATION SO THE VOLUME RESIDENTS IN VIEW THAT ARE IMPORTING THE PRODUCT FROM OTHER CITIES. I HAPPENS BUT WE HAVE ABANDONED. RESIDENTS HAVE PUBLICLY STATED THAT THEY ARE ORDERING AND HAVING DELIVERED THE MERCHANDISE FROM OTHER CITIES. I WONDER IF THERE'S ANY WAY TO QUANTIFY HOW MANY OF THE RESIDENTS ARE ACTUALLY DOING OUT. CITY MANAGER, DID HDL GIVE US AN INDICATION WITHOUT VOLUME

MIGHT BE? >> THEY HAVEN'T.

MAY BE DIFFICULT BUT WE CAN CERTAINLY ATTEMPT TO RESEARCH THAT AND BRING IT BACK.

>> I REALLY LOVE TO SEE SOME KIND OF AN ESTIMATE IT HELP ME UNDERSTAND THE MAGNITUDE OF WHAT THE COMMUNITY IS CURRENTLY DOING. NOT OPPOSED TO HAVING RETAIL WITHIN OUR COMMUNITY. JUST LIKE ANY OTHER BUSINESS. THIS IS SOMETHING THE STATE OF CALIFORNIA VOTERS HAVE STATED THAT THEY WANT IN OUR STATE.

THE CITY THINK WE HAVE A RESPONSIBILITY TO MAKE IT AVAILABLE TO OUR RESIDENTS. AS A PRODUCT BUT CERTAINLY I WILL BE VERY STRICT ON THE REGULATION PART OF IT.

BECAUSE I DO WANT TO MAKE SURE THAT WE HAVE A QUALITY, WELL-ESTABLISHED COMPANY THAT'S GOING TO COME IN AND STAND BEHIND THEIR PRODUCTS. STAND BEHIND THEIR SERVICE AND THAT WILL BE SOMEBODY, AND A FLY-BY-NIGHT. I WILL BE VERY STRICT IN THE BEGINNING.

MOVIE TELEGRAM AS WE SEE HOW THE FIRST STEP GOES FOR US.

I MAY BE WILLING TO CONSIDER OTHER TYPES OF INDUSTRY IN OUR CITY. FOR NOW BUT REALLY ONLY OPEN UP RETAIL AND IT WOULD BE PUT STRICT REGULATIONS AND I WOULD LIKE TO SEE HDL COME BACK AND GIVE US SOME KIND OF ESTIMATE AS TO MAY BE HOW MANY OF HER RESIDENTS ARE HAVING PRODUCT DELIVERED AT THIS TIME. THANK YOU MAYOR PRO TEM. PARKS MIGHT HAVE BEEN MAYOR.

THE FOLKS FROM HDM INDICATED TYPICALLY THEY SEEM AT LEAST ONE RETAILER FOR EVERY 20,000 RESIDENTS. THAT IT PROVIDES ESTIMATE.

>> I CAN CLARIFY A LITTLE BIT. SO WE'VE LOOKED AT VARIOUS STUDIES THAT VARY IN TERMS OF THE ESTIMATES FOR THE PERCENTS OF THE POPULATION THAT CONSUMES CANNABIS. IT CAN VARY FROM 10 PERCENT.

THOSE ARE NOT STUDIES THAT LOOK SPECIFICALLY AT INDIO.

IT WOULD BE VERY DIFFICULT FOR US TO ESTIMATE THE AMOUNT OF CANNABIS HAS BEEN PURCHASED FROM THE ILLICIT CURRENT MARKET BECAUSE OF DATA NOT READILY AVAILABLE. AS A GENERAL RULE OF THUMB FROM THE STUDIES THAT WE'VE LOOKED AT SOMEWHAT WITHIN 10 TO 20 PERCENT OF THE POPULATION DEPENDING ON

THE STUDY THAT YOU LOOK AT. >> IF I COULD, YOUR

[00:40:01]

SECONDLY, YOU'RE SAYING AN ESTIMATE OF 10 PERCENT WILL NORMALLY BE PEOPLE THAT WOULD UTILIZE IT. IT TOOK ABOUT 9000 PEOPLE? THAT'S IT?

>> COULD BE MORE IT'S NOT SOMETHING WE LOOK SPECIFICALLY FOR INDIO.

OUR RECOMMENDATION IS A STARTING POINT FOR THE NUMBER OF RETAILERS IS BASED OFF OF POPULATION PEER GENERATE REGRET RECOMMEND EVERY 20,000.

LEVERETT LOVED THE DETAIL AT INDIO YET.

SO THAT COULD CHANGE DEPENDING ON THE SURROUNDING REGION HOW MANY BUSINESSES THERE ARE.

THE OTHER RESIDENTS COMING IN FURTHER NEIGHBORHOOD JURISDICTIONS THAT WOULD PURCHASE INDIO APPEARED SPECIAL EVENTS IF IT'S A TOURIST ATTRACTION.

THAT COULD IMPACT THE TOTAL NUMBER THAT A MARKET COULD SUPPORT. AS A STARTING POINT RECOMMEND FUR-EVER 20,000. THAT COULD BE MORE OR LESS DEPENDING ON A NUMBER OF DIFFERENT FACTORS THAT YOU

WOULD LOOK AT. >> THANK YOU FOR YOUR

INFORMATION SIR. >> THANK YOU.

FOR MY COMMENTS AND BRING THIS FOR CONCLUSION.

GOING BACK TO THE ORIGINAL QUESTION IS TO ADMIT OR DO WE REGULATE. INITIALLY THIS BECAME LEGAL IN OUR COUNTRY OR SHOULD I SAY INTERSTATE COMING UP ON THE LAW ENFORCEMENT WORLD.

I HAD TO EVOLVE AS AN INDIVIDUAL TO REPROGRAM MY BRAIN TO UNDERSTAND THAT THIS WAS LEGAL. I DID MY OWN RESEARCH. WHEN VISITED SOME THAT RETELLS THE VALUE. EVEN ONE DAY.

I FORGOT MY ID.

GENTLEMEN OF THE WINDOW SAID, MR. FURMAN I KNOW EXACTLY WHO YOU ARE. BUT I CAN'T LET YOU IN WITHOUT ID. SO THAT AMINO WERE BEING FOLLOWED.

I DID TALK TO SOME FOLKS WHEN I WAS OUT A RETAIL.

MOST OF THE FOLKS I SPOKE TO WERE FROM INDIO.

WAS IT SHOCKING BUT IT WAS ENLIGHTENING. A LOT OF THAT DISCRETION OR HAVING NOW IS THINGS WE CAN HAVE WHILE WERE FORMALLY IN THIS POLICY.

SO TO CONCLUDE MY COMMENTS ARE SECOND ON THE CONCERNS OF THE COUNCILMEMBERS ESPECIALLY LOCATION.

A BIG ON THAT AND KEEPING ANYTHING, TOBACCO, COMMANDMENTS, ALCOHOL FROM OUR SCHOOLS, CHURCHES, THOSE KINDS OF THINGS. I'M ALSO BEEN ON THE SPELL. AND COUNCILMEMBER AMITH BROUGHT UP A GOOD POINT OF BEING STRICT THEREFORE. THEY WILL BE STRICT ON THE BEGINNING BECAUSE WE HAVE WAITED.

WE WEIGHED THE PROS AND CONS FOR NEIGHBORHOOD CITIES. OUR SUPPORT WILL REVERT WITH US AND LOOKING FORWARD TO WORKING WITH OUR COMMUNITY.

WORKING WITH FOLKS WERE WELL-ESTABLISHED IN THE BUSINESS AND LOOKING FORWARD TO CONTINUING TO BE EDUCATED ON THE

SUBJECT. >> GREAT.

THANK YOU. I THINK WE HAVE ABOUT DIRECTION AND WE CAN BRING BACK TO SOMEBODY'S OTHER POLICY QUESTIONS THAT WE FEEL ARE IMPORTANT TO FLESH OUT THOSE REGULATIONS. WE WILL PROCEED WITH AND BRING IT BACK.

>> ANYONE WHO BORE

COMMENTS? >> WHAT IF THE GROWTH OF

SOCIAL EQUITY PROGRAM? >> I THINK SOCIAL EQUITY IS IMPORTANT. SECOND ALL THE COMMENTS THAT WERE MADE.

MOVING FORWARD TODAY I THINK IT'S MORE OF A REGULATE COMMERCIAL CANNABIS IN. I THINK WERE ON THE SAME PAGE OF MOVING FORWARD IS HOW WE DO IT.

WHETHER THAT SOCIAL EQUITY WHETHER IT'S LOCATION OR CULTIVATION WHETHER IT'S MANUFACTURING. THOSE ARE THINGS WE COULD DISCUSS, PUTTING THIS POLICY TOGETHER.

IF I DON'T HAVE ANY FURTHER COMMENTS WE COULD MOVE HOME WENT TO THE NEXT ITEM.

OKAY, WE WILL MOVE ON TO STUDY

[4b. A City Council Study Session for Discussion and Possible Direction on the following: Development Impact Fees (Timothy T. Wassil, Director of Public Works)]

CITY COUNSEL STUDY SESSION FOR DISCUSSION OF POSSIBLE DIRECTION ON THE FOAMING DEVELOPMENT IMPACT FEES AND MR. WASSIL WILL BE HANDLING THIS. GOOD AFTERNOON MAP A JUMP COUNCILMEMBERS. I'M LIKE TO HOW BOTH ONE AND NICOLE INTRODUCE THIS ITEM TO YOU AS THEY'VE TAKEN THE LEAD ON THIS STUDY.

WITHOUT, WANTING ONCE A COUPLE OF THINGS? IS A CITY ENGINEER.

>> THANK YOU.

>> MEHR PRO TEM, COUNSEL MEMBERS WE BUILT WORKING ON THIS VERY EXTENSIVE STUDY TO UPDATE OUR DEVELOPMENT IN FACT PEAS.

WORK CLOSELY WITH THE CITY

[00:45:01]

WORKING CLOSELY WITH OUR CONSULTANTS AND GOING OVER THAT BEATLES THAT WENT INTO THE STUDY. NICOLE?

>> THANKS TIM THANKS JUAN.

GOOD AFTERNOON CITY COUNCIL MEMBERS OF THE INDIO COMMUNITY. MY NAME IS NICOLE SAM I'M HERE FROM NBS. FOR THE COMING THE DID THE REPORT AND ALSO WITH MS. JOE HOGAN.

DECADES OF EXPERIENCE ON WORKING ON IMPROPER FEES MEMBER IS RESPONSIBLE FOR VARIOUS AREAS OF STUDY.

OR MAKE SURE WE HAVE THE RIGHT AMOUNT OF TECHNICAL BACKGROUND AND EXPERIENCE HERE TO ANSWER QUESTIONS YOU MIGHT HAVE.

SOMEONE START WITH THE PRESENTATION.

BRYANT, DID YOU HAVE ANYTHING TO SAY? OKAY, GREAT. WANT TO START WITH A BRIEF PRESENTATION AND BEFORE I GET INTO IT THERE IS QUITE A BIT OF CONTENT ON THE SLIDES HERE. I DON'T PLAN TO GO THROUGH ALL THE MINUTIA. THERE'S A LOT TO GO INTO AN IMPACT FEE STUDY. THIS A LOT OF DIFFERENT PARTS AND MOVING PARTS TO IMPACT FEES.

SO FOR THAT REASON WE PROVIDED AS MUCH INFORMATION AS WE COULD. IT WILL MAKE SURE WE KEEP OUR PRESENTATION TO ABOUT 15 MINUTES. SO, THE BACKGROUND ON THIS STUDY IS THAT INDIO HAS AN IMPACT FEE PROGRAM IN PLACE. IT HAS NOT BEEN UPDATED FOR ABOUT 15 YEARS. THE LAST COPPERHEADS OF STUDY WAS IN 2006.

ALSO THE CITY'S MISCIBLE CODE LOOKS LIKE THERE'S LANGUAGE AUTHORIZED IN THE CITY TO HAVE AN ANNUAL UPDATE OF THE FEES EVERY YEAR BY WHAT'S CALLED AN ENR FACTOR, ENGINEERING NEWS FACTOR WHICH HELPS THE KEYS KEEP UP OVERTIME.

THAT FACTOR HAS BEEN IMPLEMENTED SINCE 2006.

I THINK IT'S GOOD TO KEEP IN MIND AS WE GO INTO THIS THAT THE COST ASSUMPTIONS FROM 2006, THAT $2006 ARE WENT IS IN THE FEES THAT INDIO IS CHARGING TODAY IN 2021. IMPACT FEES IN GENERAL. THEY ARE ONE TIME CHARGE PAID BY NEW DEVELOPMENT TO MITIGATE THE NEED FOR CAPITAL FACILITIES TO SERVE THE NEW DEVELOPMENT. SO, ONE OF THE THINGS YOU WILL NOTICE AS WE GO THROUGH THIS PRESENTATION IS THAT COST'S ARE SEGREGATED AND ALLOCATED ONLY TO NEW DEVELOPMENTS PROPORTIONAL SHARE OF THIS COST.

DISCREDIT THEM A LEGAL FRAMEWORK BEHIND IMPACT FEES. THE FEDERAL LEVEL THE CONSTITUTIONAL LEVEL CASE LAW BASICALLY REQUIRES 3 ELEMENTS OF AN EXCESS WHEN DEVELOPING IMPACT FEES. THAT FRAMEWORK IS MIRRORED BY THE CALIFORNIA CONSTITUTION AND THE MITIGATION FEE ACT.

I BASICALLY I'M SORRY CAN I TAKE MY MASK OFF MY

PRESENT. >> OKAY. OH MAN.

I WAS GONNA PASS OUT.

THANK YOU. CALIFORNIA WHEN ENACTING FEES THERE CERTAIN FINDINGS THAT NEED TO BE MADE WITHIN THE DOCUMENTATION THAT SUPPORTS THE CALCULUS OF A. THROUGHOUT THE REPORT FOR EACH FEE THAT WE PRESENTED WE'VE IDENTIFIED THE PURPOSE OF THE FEE, THE USE OF THE FEE AND THEN ALL OF THE MATHEMATICAL CALCULATIONS AND DATA THAT WE'VE USED TO SUPPORT THESE CALCULATIONS SHOW A REASONABLE RELATIONSHIP BETWEEN THE USE OF A FEE ON THE TYPE OF PROJECT ON WHICH IT'S IMPOSED. THAT'S A BENEFIT REQUIREMENT. THE NEED FOR THE FACILITIES AND THE TYPE OF PROJECT IN WHICH THE FEE IS IMPOSED.

THE AMOUNT OF THE FEE FACILITY COST OR THE TYPE OF DEVELOPMENT PROPORTIONALITY.

SINCE 2016 THERE'S BEEN QUITE A BIT OF ACTIVITY AND IMPACT FEE. LAW IMPARTING IMPACT FEES AND HOW THEY'RE IMPOSED AND HOW THEY ARE CALCULATED.

THE MOST RECENT ONES YOU PROBABLY HEARD ABOUT RELATED TO ACCESSORY DWELLING UNITS AND ONE THAT HAPPENED AND SIMPLY BUILT 602 THAT WAS SIGNED IN THE LAW JUST A COUPLE OF WEEKS AGO OR WITHIN THE LAST MONTH.

VERY RECENTLY IS REALLY IMPOSING NEW REQUIREMENTS AFTER JANUARY 1.

ON HOW IMPACT FEES ARE CALCULATED, IMPLEMENTED.

THIS IS AN EVER EVOLVING PROCESS. IT STARTED IMPLEMENTED AND 89 HAS FEW CHANGES. ONE OR 2 OVER THE YEARS NOW SINCE 2016 BY A BIT OF ACTIVITY IMPACTING IMPACT THE LAW.

SO THIS IS THE LIST OF

[00:50:01]

WE DO NOT ADD ANY NEW CATEGORY OR FEE TYPE WITHIN THE STUDY. THESE ARE ALL EXISTING FEES CHARGED BY THE CITY WE UPDATED THE ASSUMPTIONS UNDERLYING THOSE FEES.

FEE CATEGORIES ARE ESTABLISHED BY LAND USE TYPE OR DIPLOMA TYPE.

THESE ARE THE TYPES OF CATEGORIES THAT WE LOOK AT WITHIN THE IMPACT FEE STUDY.

WHEN YOU LOOK AT THE RESULT FEE SCHEDULE OR WITHIN THE REPORT AND WILL SEE INDIVIDUAL THE AMOUNTS OR INDIVIDUAL COST OF SERVICE TIME TO EACH ONE OF THESE LAND-USE TYPES OF FEE CATEGORIES. DEVELOPMENT DATA IS VERY IMPORTANT FOR REGULATING IMPACT FEES. LOOK AT WHAT THE EXISTING DEVELOPMENT IS IN POPULATIONS, SQUARE FEET, ACRES, ETC.

WHAT THE PROJECTED DEVELOPMENT LOOKS LIKE. YOU CAN SEE HERE THAT THIS WAS REVIVING ON 2010 CENSUS AND SOME WAS PROJECTED FORWARD TO 2019.

2040 IS WHAT WE CALL THE DEVELOPMENT HORIZON FOR THE STUDY. SO NOW GOING TO START GETTING INTO THE DIFFERENT TYPES OF FEES THAT WE LOOK AT AND SOME KEY THINGS TO NOTE.

ABOUT RESULTS. PARKLAND IMPROVEMENT FEES ARE INTERESTING AREA OF IMPACT FEES. THERE ARE 3 TYPES OF FEES. ONE OF THE FEES IT HAS TO DO WITH LAND OR FEES IN LIEU OF LAND FOR PROJECTS INVOLVING A SUBDIVISION IS ACTUALLY NOT GOVERNED BY THE MITIGATION FEE ACT.

DISCOVERED BY THE QUEEN BEE ACT.

THE CITY CURRENTLY HAS A QUEEN BEE ORDINANCE IN PLACE.

FOR THAT. WE LOOKED AT THAT A LITTLE BIT WITHIN THE CONTEXT OF AN IMPACT FEE BECAUSE A FUNCTION OF IT LIKE IMPACT FEES.

THEN FOR PROJECTS THAT DO NOT INVOLVE A SUBDIVISION.

WE STILL NEED TO BE ABLE TO CHARGE THE LAND COMPONENT OF THE FEE. SO WE CREATE A PARKLAND IMPACT FEE.

SO PROJECTS THAT INVOLVE THE SUBDIVISION AND DON'T INVOLVE THE SUBDIVISION BOTH PAY 3RD TYPE OF FEET WHICH IS FOR THE IMPROVEMENTS ON PARKLAND.

SO PARK IMPROVEMENT FEES.

THERE ARE 3 DIFFERENT TYPES OF FEES DEPENDING ON WHETHER THE PROJECT INVOLVES A SUBDIVISION OR NOT. LIKE I MENTIONED THE CITY HAS AN EXISTING QUEEN BEE ACT ORDINANCE AND I THINK WE DECIDED THAT WOULD COME. THERE'S SOME DECISIONS TO BE MADE THERE IN TERMS OF THE CITY WANTS TO UPDATE THE ORDINANCE.

SOME OF DETAILS. THAT'S NOT THE TOPIC A DETAILED DISCUSSION TONIGHT. I THINK THAT WILL COME BACK AS A SEPARATE ITEM. WE SHOULD POINT OUT THERE'S A POLICY FACTOR IN THE CITY'S EXISTING QUEEN BEE ORDINANCE WHERE THERE'S A 75 PERCENT COST RECOVERY LEVEL IN THERE.

THAT MIGHT BE SOMETHING THE CITY WANTS TO TAKE A LOOK AT IN THE FUTURE. THEN ALTERNATIVELY WE HAVE AN APPROACH THAT THE CITY CAN CHOOSE FROM THAT'S IN THE REPORT AND COME BACK DISCUSS THAT MORE.

HAS TO DO WITH USING THE FEE ON CURRENT MARKET VALUE PER ACRE OF LAND VERSUS STANDARD-COST OF ACRE LAND PER ACRE. SO THE LAND IMPACT FEE FOR NON-SUBDIVISION PROJECTS WHAT WERE WORKING WITH EAR STANDARDS, POPULATION PER ACRE. MULTIPLIED BY COST PER CAPITA. AND IN THE END AFTER WE DO ALL THE CALCULATIONS. PARK FEES ARE ACTUALLY GOING DOWN.

FROM CURRENT LEVELS. FOR PARK IMPROVEMENT FEES.

FORD FIRE FACILITIES, FIRE FACILITIES LOOK AT THE RELATIONSHIP BETWEEN FUTURE DEMAND FOR FIRE FACILITIES. AND THERE PER UNIT FEES FOR RESIDENTIAL TO FOMENT A PER ACRE FOR NON-RESIDENTIAL FILAMENTS.

FOR NON-RESIDENTIAL MAC PER ACRE FEES AND SOMETIMES YOU WILL SEE PER SQUARE FOOT FEES.

DEPENDS ON HOW THEY WERE SET UP BEFORE AND WHAT DATE IT WAS AVAILABLE AND CALCULATED THE FEE.

HIT ME OF THE RELATIONSHIP BETWEEN TOTAL BUILDOUT DEMAND WHICH IS SOMETHING CALLED SERVICE POPULATION.

AS A DENOMINATOR AND THAT NUMERATOR IS GOING TO BE THE COST OF ALL FACILITIES TO SERVE THE FUTURE POPULATION. SO IN FIRE FEES ARE ACTUALLY PROPOSED TO GO UP A FULL COST RECOVERY. FOR ALL TYPES OF DEVELOPMENT. WITH POLICE. LEASE IS SOMEWHAT SIMILAR TO FIRE. FEES IN TERMS OF METHODOLOGY AND APPROACH. ALSO PREPROJECT INCREASE FOR TYPES OF RESIDENTIAL AND NONRESIDENTIAL DEVELOPMENT. PUBLIC BUILDING FEES THOSE COVERED SOME OF THE CITY'S RECREATIONAL AND CULTURAL FACILITIES BUILDINGS AS WELL AS THE LIBRARY, SITTING HOME, ETC.

AND DIFFERENT TYPES OF PUBLIC BUILDINGS.

[00:55:03]

TOTAL REPLACEMENT COST OF THOSE BUILDINGS DIVIDED BY EXISTING POPULATION AND THERE IS A SLIGHT DECREASE IN FEES FOR THESE TYPES OF FACILITIES. FOR THE TRAFFIC OR ROADS AND BRIDGES FEES. THIS IS THE AREA OF THE STUDY THAT SHOWING THE LARGEST INCREASE. FOR ALL DIFFERENT TYPES OF DEVELOPMENTS.

IT'S IMPORTANT TO REMEMBER THEIR ORIGINAL FEES FOR TRAFFIC AND IMPROVEMENTS THAT ARE BUILT BY THOSE ORIGINAL FEES.

THE STUDY WITH HELP OF THE CITY'S ENGINEERS HAS QUANTIFIED ALL THE PLANNED IMPROVEMENTS RELATED TO ROADS AND BRIDGES.

THEN CARVED OUT THE SHARE THAT'S FUNDED BY REGIONAL FEES AND CARVED OUT THE SHARE THAT'S ONLY ATTRIBUTED TO NEW DEVELOPMENT. LET'S ALSO ALLOCATED TO VARIOUS SETTLEMENT TYPES BASED ON TRIP GENERATION FACTORS.

HERE WE HAVE WAS LOOKING LIKE THE LARGEST INCREASE.

I THINK WE NOTICE THAT'S MOSTLY COMING FROM INCREASE IN COST AN INCREASE IN PROJECTS.

I THINK ONE IN THE CITY ENGINEERS CAN TELL YOU MORE ABOUT THAT IF YOU HAVE QUESTIONS.

TRAFFIC SIGNALS ARE DONE SAME WAY AS ROADS AND BRIDGES FEES.

THE CLIENT WE HAVE AN INCREASE IN RESIDENTIAL SUFFER THE MOBILE HOME CATEGORY AND DECREASE FROM SOME OF THE NONRESIDENTIAL CATEGORIES. STORM DRAINAGE FEES. OVERCOME WITH CURRENT ROSTER PLAN COST FOR STORM DRAINAGE.

THESE FEES ARE PER ACRE FOR TYPE OF DEVELOPMENT.

THAT MASTER PLAN WAS RECENTLY UPDATED AND WHAT WERE SEEN AS A DECREASE ACROSS ALL TYPES OF DEVELOPMENT IN THE STUDY.

ONE NIGHT LOOKED AT THE DIFFERENCE BETWEEN THE LAST STUDY OF THE STUDY AND IT HAS TO DO WITH TOTAL COST OF IMPROVEMENTS NEEDED WENT DOWN CIGNA BILLING AND A LITTLE BIT RELATED TO THE ALLOCATION METHODOLOGY BETWEEN THE 2 STUDIES. WE ALSO LOOKED AT THAT ONE OR FEES.

THOSE WATER FEES, THE COST ASSOCIATED WITH AN IMPROVEMENTS ARE FROM THE MOST RECENT MASTER PLAN.

THAT WAS JUST COMPLETED.

WE WORKED WITH REPRESENTATIVES FROM INDIO WATER AUTHORITY. WATER FEES ARE BASED ON METER SIZE RATHER THAN TYPE OF DEVELOPMENT. SO THEY LOOK AT THE EQUIVALENT DEMAND FACTORS TO A RESIDENTIAL METER. IT'S KIND OF HOW THEY'RE CALCULATED. LOOKS LIKE WE HAVE SMALLER METER SIZES AND INCREASE FOR METER SIZES. BEFORE MOVING TO THAT, JOE DO YOU HAVE ANYTHING ELSE? NO? OKAY. AS A SLIDE THAT'S HARD TO SEE IF YOU'RE SITTING IN THE AUDIENCE.

GIVES US A SNAPSHOT.

THESE ARE IN THE SUMMER THE REPORT. IT GIVES YOU A SNAPSHOT OF CURRENT FEES AND WITH THE PROPOSED FEES ARE THAT INCLUDE A ONE PERCENT ADMINISTRATIVE FEE. THIS TABLE HERE GIVES YOU THE VARIANCE BETWEEN THE 2. WHICH FEES ARE GOING DOWN TO WHICH FEES ARE GOING UP. WHICH ADDRESS COVERED THERE IN SOME OF THE PREVIOUS SLIDES AT A HIGH LEVEL.

THE NEXT STEPS HERE.

WE DID A FEE COMPARISON.

THERE IS SOME INFORMATION IN APPENDIX A AND B THE REPORT NOT JUST A FEE COMPARISON. THERE ARE LIST OF VEHICLES AND TYPES OF IMPROVEMENTS THAT ARE INCLUDED IN THE STUDY.

IN THE CITY COUNCIL OF COURSE THIS IS THE TIME FOR THE POLICY DISCUSSION.

OF COURSE CITY COUNCIL HAS THE AUTHORITY TO TALK FEES AT HUNDRED PERCENT OR ANYTHING LAST ACCORDING TO THE DELIBERATION AND DISCUSSION. WE WOULD JUST AS A FINAL NOTE I PUT UP A SLIDE THAT TALKED ABOUT LEGISLATION THAT'S BEEN MOVING SINCE 2016.

THE MOST RECENT A COUPLE MONTHS AGO WHICH WE'VE DONE A LOT OF WORK TO GET TO THIS POINT. HOME AND MIGHT BE GOOD TO CONSIDER ADOPTING A REPORT BY THE END OF THIS YEAR. DUE TO SOME OF THESE REQUIREMENTS WITH A B602 AND SO FORTH THAT WOULD REQUIRE YOU TO OPEN UP THE STUDY AGAIN AND REVISIT SOME ASSUMPTIONS. SO HOPEFULLY THAT WAS ENOUGH OF A HEART LEVEL OVERVIEW AND WERE HERE FOR ANY SPECIFIC QUESTIONS THAT YOU MIGHT

HAVE. >> THANK YOU NICOLE.

CITY MANAGER TO HAVE ANY COMMENTS? NO? WHAT I WILL DO NOW IS I WILL OPEN IT UP NOW TO REQUEST TO SPEAK FOLKS.

AND WE WILL MOVE ON TO COUNCIL AFTER THAT. SO, I WOULD CALL UP MS. RICHARD GUTIERREZ.

KIRKSEY PROBABLY JUST HEARD MY KNEES STOP AS I WENT ACROSS THE ROOM. WE'VE ALL BUT CITY FOR NICE TIME. IT'S NICE TO SEE EVERYBODY IN PERSON.

[01:00:03]

I'M TO SAY HELLO, GOOD EVENING, I SEE YOU ALL AND TAKE OFF THE MASK.

THANK YOU FOR ALLOWING THE DBA TO ENGAGE IN THE SUBJECT FOR THE LAST NUMBER OF YEARS.

IT HAS BEEN A NUMBER OF YEARS WE BEEN WORKING WITH YOUR CITY STAFF ON THIS TOPIC AS WELL AS WITH THEIR CONSULTANTS.

IN FACT WE KIND IT DIDN'T RECOGNIZE YOU JUST THAT WHEN A MESSIAH COMING IN THE ROOM. IT'S BEEN SO LONG.

THANK YOU FOR THAT. WE HAVE PREVIOUSLY SUBMITTED AND SHOULD BE IN YOUR PACKET TONIGHT.

2 LETTERS WITH REGARDS TO THE STUDY.

WE'VE HAD RESPONSES BOTH IN WRITING AND VERBALLY INFORM CITY STAFF OF VARIOUS ISSUES WE HAVE RAISED CONCERNS ON. SOME LISTINGS HAVE BEEN ADDRESSED AND THERE'S A COUPLE OF ITEMS I STILL LIKE TO HAVE PUT INTO THE BREAKER THIS EVENING AS PART OF MY REMARKS.

AS AN EXAMPLE 1 OF THE THINGS THAT WAS ADDRESSED WAS THE ADMINISTRATIVE FEE THE CITY WOULD BE CHARGING.

IT WAS A REDUCTION ON THAT ONE. IT WAS ON AN ITEM YOU CALLED OUT.

IT WAS AN ITEM WE CALLED OUT.

THIS REDUCTION ON THAT IN THE PROPOSED REPORT TO YOU ALL. OUR CURRENT CONCERNS OF THE MOMENT ARE NOT SO MUCH DIRECTED RESIDENTIAL WHICH IS TO BE PRIMARILY REPRESENT IN OUR PARTICULAR INDUSTRY. IT'S DRIVEN TO A PROPOSED INCREASE ON THE COMMERCIAL SIDE. WHETHER IT'S RETAIL, OFFICE OR INDUSTRIAL. AS YOU HAVE SEEN. AND SOME OF THE STUDY IT'S A LOT OF DETAIL IN THERE FOR YOU TO READ AND LOOK AT. THAT'S WHERE HAVING THIS WORK SESSION.

THIS GIVES YOU A CHANCE TO ASSESS QUESTIONS. SOME OF THOSE INCREASES ON THE COMMERCIAL SIDE ARE GOING TO RANGE FROM ANYWHERE FROM 40 PER SET TO 240 PERCENT INCREASE. AGAIN, 44 PERCENT TO 240 PERCENT INCREASE. YOUR CITY PRIDES ITSELF ON BRINGING A LOT OF COMMERCIAL DEVELOPMENT INTO YOUR COMMUNITY.

IF SEVERAL VERY LARGE PROJECTS UNDERWAY AT THE MOMENT.

YOU HAVE A LOT OF BENEFIT FROM THE COMMERCIAL INDUSTRY BACK TO CITY HALL. GIVE GREAT RELATIONSHIPS WITH THOSE DEVELOPERS.

YOU WANT TO KEEP THEM AND CONTINUE TO BRING GROCERY STORES AND RESTAURANTS AND GAS STATIONS AND RETAIL INTO THE COMMUNITY. INCLUDING YOUR CANNABIS YOUR CONSIDERING AT THE MOMENT.

THAT'S NOT PRICE YOURSELF OUT OF MARKET BY LOOKING AT SOME THESE FEES. AS EXAMPLE AND IT'S INCLUDED IN OUR CORRESPONDENCE.

ELICIT A 40,000 SQUARE-FOOT GROCERY STORE.

CURRENT COST UNDER YOUR FEES AT THIS POINT OR $230,200 WHICH DOESN'T INCLUDE THEIR WATER OR STORM DRAINAGE. 2:30,000 200. THE NEW CHARGE FOR THAT SAME GROCERY STORE IF THESE FEES ARE FULLY ADOPTED WOULD BE $414,360.

EXCUSE ME, SCRATCH THAT.

THE NEW CHARGE WOULD BE $644,560.

644560. THAT'S A 414 THOUSAND AND CHANGE DOLLAR INCREASE. AGAIN NOT INCLUDING THEIR WATER, STORM DRAIN OR THEIR PUPPIES WHICH IS A SEPARATE FEE WE OFFER TO PAY. THE PUMP FEES ON THAT GROCERY STORE 244,000. JUST TAKEN A PROJECT THAT WAS ROUGHLY $230,000 PLUS.

FEES AT HALF MILLION DOLLARS AND I PUSHED UP $2 MILLION.

SO YOU WANT TO BE CAUTIOUS IN LOOKING AT YOUR COMMERCIAL LEVELS YOU'RE GOING TO ADOPT.

AS YOUR CONSULTANT HAS ACKNOWLEDGED AND WE ACKNOWLEDGE IT AS WELL. YOU CAN TAKE HUNDRED PERCENT COST RECOVERY AT THIS POINT IN TIME. YOU COULD TAKE A LESSER AMOUNT., THINK I DID NOT HEAR IN THE RECOMMENDATION SO I DON'T KNOW IF IT'S AN EXECUTIVE SUMMARY TO ALL OR NOT IT'S WHAT YOU MIGHT OFFER TO AFFORDABLE HOUSING. SENIOR HOUSING, IT'S A DISCUSSION OR HAVOC WITH ANOTHER CITY AT THE OTHER END OF THE VALLEY RIGHT NOW.

IF YOU ADOPT NEW FEES WHAT IS GOING TO DO TO THE AFFORDABLE HOUSING? YOU HAVE SOME OF THOSE DEVELOPERS IN TOWN RIGHT NOW. HER SENIOR HOUSING. IF IT MEET YOUR MINUTE NUMBERS OVER THE NEXT 8 YEARS.

YOU WANT TO BE VERY COGNIZANT OF WHAT YOUR FEE LEVELS ARE WITH REGARDS TO THE RESIDENTIAL UNITS. LASTLY, AND THIS IS A LITTLE BIT ON A SIDE TANGENT. SINCE WERE HERE FOR WORK SESSION WERE GOING TO DO IT.

OUR OFFICE IS JUST LIKE OUR ANNUAL IT MAY BE 1600 REPORT. ONE OF THOSE ITEMS THAT'S IN THAT REPORT WHICH WILL BE PRESENTED TO YOU AT COUNCIL ON DECEMBER 17.

I'M A LITTLE BIT EARLY IN THE CURVE ON ALL THIS.

IF NOT YET WRITTEN A RESPONSE TO THAT REPORT BACK TO THE CITY. ONE OF THE THINGS YOU WANT TO MAKE NOTE ON IS IT WASN'T INCLUDED IN THIS STUDY ARE TALKING ABOUT TODAY. ONCE YOUR SUPPLEMENTAL WATER CHARGE.

THE LAST THING THAT WAS ADOPTED IN THE CITY WAS AT MARCH 2013.

WE'VE ASKED PREVIOUSLY WHY THAT HASN'T BEEN LOOKED AT AND REVIEWED.

RBC 2013 FOR NOW AND 2021. IT DOES NOT COME UP FOR DISCUSSION.

IT WAS NOT INCLUDED IN THIS FEE STUDY. SOMETHING THAT SHOULD'VE BEEN LEFT OUT AND THE REASON IS THAT THE CURRENT FEE IS BASED ON DEVELOPED LAND ON

[01:05:02]

LOOKING OTHER MEANS TO CONTINUE TO GET THE WATER AVAILABILITY OUT THERE. THE INDIA WATER AUTHORITY BECAUSE YOUR SITTINGS BOTH ENTITIES NEEDS TO REVIEW YOUR CURRENT ON THAT FEE LEVEL AND ADJUST IT TO A MORE APPROPRIATE LEVEL. OUR CALCULATION UNDER SIMILAR SCENARIO IS WHAT CBD W IS DOING IS TAKING IT DOWN TO ADJUSTED RATE OF APPROXIMATELY $2000 PER RESIDENTIAL UNIT. THANK YOU SO MUCH FOR ALLOWING ME THE TIME.

I APPRECIATE IT AND THANK YOU FOR LETTING US CONTINUE TO SPEAK ON THIS MATTER. PLEASE TAKE INTO CONSIDERATION ALL THOSE THINGS. IT'S A LOT TO LOOK AT. A LOT YOU REPORT TO LOOK AT. WERE HERE FOR QUESTIONS. THANK YOU.

>> THANK YOU FOR YOUR COMMENTS APPRECIATED.

WE WILL MOVE ON TO THE NEXT REQUEST TO SPEAK. MISS TONY –.

MOST OF YOU KNOW ME ON THE CFO FOR THE 20 GROUP ORGANIZATION. HARD TO GO AFTER GRETCHEN. SHE HAS ALTOGETHER. FIRST AND FOREMOST ON ONE OF THINK THE CITY COUNSEL AND CITY STAFF FOR PUTTING TOGETHER STUDY SESSION. THAT'S IMPORTANT. UNFORTUNATELY IS A SOMETHING THAT WAS NOT ON OUR RIGHT ARM AS DB VA HAS BEEN INVOLVED IN AND APPARENTLY I'VE NOT BEEN ENGAGED AS A SHOULD HAVE. WITH DB BA NOR HAS THE CITY MENTIONED ANY OF THIS TO US. THIS CAME AS A BIT OF A SURPRISE TO US.

IN THE PAST FEW WEEKS WHEN WE ARE MADE AWARE OF IT. I HAVE CONCERNS WHEN READ THE AGENDA FOR TODAY'S STUDY SESSION AND THEN WAS TAKING A MOMENT TO PERUSE THE CITY COUNCIL AGENDA FOR LATER IN THE EVENING TO SEE IF I MIGHT WANT TO STAY. FOR THE REST OF THE EVENING. I WAS QUITE SURPRISED TO SEE THAT THIS IS ACTUALLY AN ACTION ITEM ON TONIGHT'S AGENDA. I'M VERY DISAPPOINTED IN THAT BECAUSE I DON'T UNDERSTAND HOW THE COUNSEL IS EXPECTED TO FILTER THROUGH THIS INFORMATION AT ONE PASS AND TAKE INTO CONSIDERATION COMMENTS FROM THE PUBLIC AND DEVELOPERS TO WEIGH IN ON IT AND THEN TURN AROUND AND HAVE A DECISION RIGHT AWAY.

FOR MYSELF WE HAVE SO MANY PROJECTS CURRENTLY UNDERWAY IN THE CITY OF INDIO. CITY STAFF IS AWARE OF MANY OF THEM.

COUNCIL MAY NOT BE AS AWARE OF WHAT WE HAVE PLANNED.

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

WE HAVE A LOT OF PROJECTS THAT AREN'T QUITE ACROSS THE FINISH LINE YET.

WHAT YOU DECIDE WHAT'S ENTITLED WAS NOT ENTITLED, WHERE THESE FEES GET IMPACTED OR NOT? SOME THE PROJECTS WE HAVE UNDER DISCUSSION ARE DEPENDENT UPON ABILITY FOR BUSINESSES TO OPEN.

AND AS YOU MAY BE AWARE WE CURRENTLY HAVE A PROJECT ON INDIO BOULEVARD.

DAIRY QUEEN GRILL AND CHILL TRYING TO GET OPEN FOR 8 WEEKS. WE'VE GOT MINIMAL APPLICANTS FOR HIRING.

IT MAY NOT OPEN WHEN THE ONE IT TO OPEN. WHICH MEANS IT WILL BE A WHILE BEFORE WE CAN BRING THAT ACROSS THE FINISH LINE.

THAT'S ONE OF THE CONCERNS I HAVE. THAT'S JUST OUR PROJECTS. THERE A LOT OF OTHER DEVELOPERS IN THE CITY LOOKING AT PROJECTS HERE. I THANK YOU NEED TO LOOK AT THIS AS A WHOLE.

UNDERSTAND YOU HAVEN'T RAISED ANY OF THESE FEES FOR QUITE A WHILE. THANK GOODNESS FOR THAT. I APPRECIATE THE COMPARISON TO OTHER CITIES. YOU'RE NOT OTHER CITIES.

OR NTL. IT WOULD BE DUE TO BUILD INDIO AND WHAT CAN YOU DO TO BE WELCOMING TO DEVELOPERS? THANK YOU.

[01:10:03]

>> THANK YOU FOR YOUR COMMENTS. I'D LIKE TO ASK MS. SANCHEZ, DO WE HAVE ANY PUBLIC COMMENTS

ONLINE? >> NO COMMENTS ON ZOOM MAYOR PRO TEM.

>> CITY MANAGER? >>? PUPPY HAVE ANOTHER 15 TO 20 MINUTES IN THE STUDY SESSION. THE MATTERS INDICATED WILL BE ON THE AGENDA COMING UP LATER.

THERE'S ANOTHER BITE AT THE APPLE FROM OUR DISCUSSION. SO I'LL BE HAPPY TO TAKE SOME INPUT.

THERE ARE QUESTIONS YOU MAY HAVE FOR THE CONSULTANTS THIS WOULD BE A GOOD TIME FOR THOSE OR

STAFF. >> I LIKE TO ASK COUNCILMEMBER AMITH IF SHE HAS ANY COMMENTS OR QUESTIONS AT THIS TIME?

>> THANK YOU MAYOR PRO

TEM. >> IT BECAUSE A MEMBER AMITH WERE HAVING TROUBLE HEARING YOU. YOU'RE GOING IN AND OUT.

>> UNDERSTAND WE WILL HAVE SOME CONVERSATIONS LATER.

NOT SURE IF THOSE ARE THE APPROPRIATE.

IS APPROPRIATE NOW OR LATER CONVERSATION? HELLO?

>> YOUR CUTTING OUT.

YOUR CONNECTION IS BAD.

>> CAN YOU HEAR ME?

>> YES, WE CAN NOW.

>> SO IT IS APPROPRIATE NOW TO DISCUSS THE IMPLEMENTATION OF THE FEES ARE SOUGHT FOR THE ACTION ITEMS LATER IN THE AGENDA?

>> CERTAINLY YOU CAN ASK QUESTIONS AND IF YOU WANT TO DISCUSS IMPLEMENTATION I THINK THAT WOULD BE APPROPRIATE IN TERMS OF ANY DIRECTION TO STAFF AND IT COULD BE PART OF THIS EVENING AS WELL.

>> I DON'T THE LAST TIME WE RAISE THE FEES WE IMPLEMENTED THE FEE STRUCTURE ON A TIERED BASIS. I DON'T RECALL THE PERIOD OF TIME IN WHICH WE DID IT. I KNOW IT WAS ON A TIERED BASIS.

WONDERING IF CITY MANAGER HAS ANY THOUGHTS ON POSSIBLY EXTENDING IMPLEMENTATION OVER THE NEXT 3 YEARS.

AND IF THERE IS ANY CAUSE IN THE PROPOSED FEE STRUCTURE THAT WOULD GRANDFATHERING EXISTING PROJECTS THAT A BEEN

APPROVED ALREADY? >> YEAH, I THINK THAT IS A GREAT QUESTION. AND SUGGESTED BY PUBLIC COMMENT. THE FEES ARE SO LARGE IN COMPARISON BECAUSE THEY WERE KEPT SO LOW. IT'S A RELATIVE COMPARISON. STAFF DOES RECOMMEND THAT THESE BE PHASED. THAT WOULD BE UP TO YOU AND PERHAPS THAT'S A DISCUSSION FOR THE REGULAR CALENDAR ITEM.

WE THINK A 3 YEAR PERIOD WOULD SEEM REASONABLE. THOSE THAT HAVE BEEN ENTITLED HAVE RECEIVED APPROVALS AND WE CAN DEFINE THAT FOR YOU AGAIN IN THAT SESSION. IT SEEMED THERE AS WELL BECAUSE THESE ARE FOLKS THAT EVALUATED A PIECE OF PROPERTY. EVALUATE THE COST THAT MAY EXIST TO DEVELOP THE PROPERTY.

INCLUDING THE FEES.

SOUGHT APPROVAL FROM THE PLANNING COMMISSION AND CITY COUNCIL RECEIVED IT.

NOW THE FEES ARE DRAMATICALLY PROPOSED AND INCREASED DRAMATICALLY.

THE THOUGHT THERE IS PERHAPS IF SOMEONE HAS GONE THAT FAR THEY CAN PAY THE FEE THAT THEY PLANNED ON WHEN THEY CAME FORWARD WITH THEIR PROPOSAL. THEN PHASE IN OVER A 3 YEAR.

THE REST OF THE INCREASE.

ACKNOWLEDGING IN THE END I THINK REFERRED TO BY THE CONSULTANT IF IT IS LESS THAN TOTAL FEE. SOMEONE HAS TO COME UP WITH THE BALANCE OF THE COST OF THE IMPROVEMENTS THAT ARE PART OF THE STUDY. ALWAYS IN THE BACK YOUR MIND KNOWING SOMEONE HAS TO PAY FOR THESE. AND WE'VE LEARNED OVER THE LAST 15 YEARS THAT WE HAVE NOT ACCUMULATED ENOUGH MONEY TO PAY FOR SOME OF THE IMPROVEMENTS THAT ARE NEEDED. THE INTERCHANGES WHICH ARE AN EXAMPLE.

WE RECOMMEND IS EUPHRATES IN I WOULDN'T DO IT OVER TO LONG OVER.

WE NEED MONEY IN THE FUTURE TO HANDLE THESE IMPACTS.

AS WE'VE LEARNED OVER THE LAST 15

YEARS. >> COUNCILMEMBER AMITH JODI MARK, SIR QUESTIONS?

>> NO, THAT'S IT FOR NOW

PEER THINKING APPEARED. >> THANK YOU.

COUNCILMEMBER MILLER? >> THANK YOU MAYOR PRO TEM. I AGREE WITH MR. MCMURRAY. SOME THE IMPACT FEES WE'VE HAD WITH LET THEM GO FOR RECENT SO WE COULD BRING IN OPPORTUNITIES. I DO A GREAT I THINK THIS IS A LITTLE QUICK BECAUSE OF THE IMPACTS. I WAS ON THE CALL AND PART OF THE ECAC AND THERE TALKED ABOUT CAPITAL IMPROVEMENTS.

WE TALKED ABOUT A PROJECT WHERE THEY'RE TRYING TO BUILD A SUBSTATION WHICH IS $18 MILLION OUT OF THEIR POCKET WHICH THEY HAVE TO DEVELOP EVEN THOUGH IT'S 25 MEGAWATTS.

AND WILL PAY YOU BACK WHEN

[01:15:01]

WE HAVE THAT WITH THE IMPACT FEET WERE TALKING ABOUT FROM WATER THAT WILL BE A PART OF THIS TALE.

I DON'T WANT TO PRICE YOURSELF OUT WHEN I WAS ON THE PLANNING COMMISSION.

EARLY PARTS OF 2000 42 2008. WE PLAYED HARDBALL.

A LOT OF PROJECTS WENT BY THE WAYSIDE. WHEN IT WENT DOWN IT WENT ON HARD.

SO DID OTHER PEOPLE. THEY WOULD BEEN BUILT UP AND I DON'T WANT TO LOSE OUT ON SOME OF OUR UNDEVELOPED AREAS. BECAUSE THEY PAY FOR INTERCHANGE.

IT'S $100 MILLION.

IT'S THE STATE OF CALIFORNIA.

IT'S NOT COMMON SENSE ON SOME OF THE STOCK. THE DEVELOPMENT OF PAIN $25 MILLION THERE'S NOT ENOUGH MONEY FOR EVEN SEE FACT TO PAY FOR IT. WITH ALL OF US COMBINED RCT SAY.

I WANT TO MAKE SURE WERE NOT HINDERING DEVELOPMENT.

WE NEED TO DO STUFF TO MAKE SURE OUR INTERCHANGE HAS MOVED FORWARD.

CONTRACTION, QUALITY LIFE THERE'S OTHER THINGS WE NEED TO DO.

I THINK WE NEED TO LOOK AT THE FEES FOR CERTAIN THINGS TO MAKE SURE THEY RAISE UP TO WHERE THEY NEED TO BE.

OTHERWISE I THINK IT'S GOING TO HAVE AN EFFECT ON IF IT GETS BUILT OR NOT.

AND IT'S A QUALITY OF LIFE ISSUE OR ANOTHER ISSUE WE NEED TO LOOK AT THAT FEE.

LONGER I THINK. TO SEE IF THERE'S SOMETHING WE CAN DO TO MOVE IT OUT.

I GET WERE GOING WITH IT.

BUT, ONE OF THE THINGS WE NEED MOST IS PARKS AND FEES GOING DOWN. EXPLAIN IT TO ME. AT TIMES MAKE A LOT OF SENSE. ESPECIALLY AN INDIVIDUAL THAT WOULD BE LOOKING ON THE OUTSIDE. THE DEVELOPER UNDERSTANDS IT. WHAT TO BE CLASSIFIED AS AN ENTITLED PROPERTY? THERE WILL BE A RUSH ON THOSE TOO IF WE HAVE HOUSING TRACTS THAT ARE ENTITLED BUT NOT MOVING FORWARD. THOSE WILL GET BOUGHT UP AND STOPPED UP AT PEOPLE WILL SELL THEM FOR HIGH DOLLARS BECAUSE THEY ARE LOWER FEES.

WHERE IT DEVELOP SOMEWHERE THINGS GO AS A BIG IMPACT ON WHAT WE ARE DOING AND IS WORTH DOING AFFORDABLE HOUSING I DON'T THINK WE COULD PICK AND CHOOSE, CAN WE CITY ATTORNEY ON WHAT WE CHARGE FOR HOUSING?

OR CAN WE? >> I WOULD DISCUSS THIS WITH THE CONSULTANT.

TYPICALLY IF YOU WANT TO ENCOURAGE SOMETHING HE WOULD CHANGE THE DEVELOPMENT IMPACT FEE.

FROM A POLICY PERSPECTIVE TO INCENTIVIZE THAT.

I'M GETTING KNOTS OF YES.

>> VIRTUALLY ON THAT ITEM COUNCILMEMBER FEEL INCLUDE THE REDUCTION PROPOSED THE DRAINAGE FEE. THE PARMA COMPLEX THERE WOULD BE A

REDUCTION. >> GOOD.

>> IF YOU ADOPT WHAT YEAR IT WOULD PROVIDE A GREATER INCENTIVE FOR THOSE

PROJECTS. >> I THINK WE CAN FIND OUT TO ME MORE AND TO TELL OF HIS COULD BE AFFECTED AND WHERE IT'S GOING TO GO AND WHERE IT'S GONNA HALF OBVIOUSLY WE TALKED ABOUT CANNABIS AND OTHER STUFF I'M SURE THEY WILL BE ABLE TO AFFORD TO BUILDING SO THAT AND IT WILL PUSH OTHER PEOPLE OUT.

WE WOULD BE ABLE TO KEEP CATERPILLAR OR ANYONE ELSE TO LOOK AT THE OTHER STUFF? I'M CAUTIOUSLY OPTIMISTIC BUT I DO NOTE WE NEED TO HAVE THE FUNDING AND WE DO NEED TO BE ABLE TO RUN THE CITY.

AT THE SAME TIME I DON'T WANT TO PRICE OURSELVES OUT OF THE MARKET IF A LOT OF PEOPLE ARE LOOKING AT US BECAUSE OF OUR GROWTH.

WE DO HAVE TO HAVE A BALANCED BUDGET.

THERE'S A FINE LINE.

I THINK THIS AWFUL QUICK.

CAN BE ADJUSTED AFTER THE CITY ATTORNEY? IF WE GO ALONG? WHAT'S THE IMPACT IF WE DECIDE TO CHANGE THINGS?

>> IF WE HAVE A FEE STUDY THAT LOOKS INTO 20/40 THAT JUSTIFIES 100 PERCENT COST RECOVERY I BELIEVE WE CAN PHASE IT IN AND DECIDE TO ADJUST IT AT A LATER DATE WITHOUT GOING BACK TO A NEW FEE STUDY. I'M NOT SURE THE INTERPLAY OF THE NEW LAW THAT'S COMING INTO EFFECT. AND HOW THAT WILL PLAY IN. I JUST TOOK A LOOK AT IT.

THERE MIGHT BE SOME QUESTION ON THAT AND I NOTE THE CONSULTANTS

HAVE BEEN INVOLVED IN THAT. >> WANT HOUSING TO BE ABLE TO BE COST-EFFICIENT.

AT THE SAME TIME WITH GOD HAVE THE SERVICES, THE OTHER SERVICES THE QUALITY OF LIFE MAKE SURE PEOPLE THAT COME THROUGH. I'M SURE THE CITY, THE SCHOOLS AND ALTHOUGH MY DOCTOR BE LOWERING ANY OTHER FEES ANYTIME SOON. SO AS A RESULT WE WILL CONTINUE TO

PAY. >> NOT LIKELY IS A GREAT QUESTION. THERE MAY BE DEVELOP MENSA COMMAND THAT DISCUSS JOBS IN THEIR ECONOMIC IMPACT AND WE WILL SEEK A DEVELOPMENT AGREEMENT WITH THE CITY.

THE DEVELOP AGREEMENT IS A NEGOTIATION OF DIFFERENT MATTERS. OFTEN TIMES FEES BECOME A PART OF THOSE NEGOTIATIONS. THERE ARE STILL OPPORTUNITIES. WE CAN OVERCHARGE BEYOND WHAT THE STUDY INDICATES.

THERE MAY BE OPPORTUNITY FOR GOOD CAUSE.

FREE TO ADJUST THOSE.

>> AS LONG AS WERE CONSISTENT. AS YOU SAID IN THE M SOMEONE PAYS.

WE KEEP QUALITY OF JOBS COMPARED TO OUR QUANTITY OF JOBS COMPARED TO PROJECT AND FEES. TO GIVE UP AND A HALF MILLION DOLLARS BECAUSE WE WANT TO BRING IN 500 JOBS.

>> THOSE ARE THE ONES WE LOOK AT FEES AND SAY WE WANT THE 500 JOBS.

>> YES. AS LONG AS WE ARE CONSISTENT. PREDICATES

[01:20:01]

>> THANK YOU COUNCILMEMBER.

BECAUSE MEMBER ORTIZ? >> I AGREE OBVIOUSLY THIS MONEY HAS BECOME A SOMEONE LIKE WERE SAYING.

BUT TO COME UP WITH A PLAN.

IT'S GONNA COME FROM THESE FEES OR BE GONNA TAKE IT FROM SOMEWHERE ELSE. IF WE ARE GONNA TAKE IT FROM SOMEWHERE ELSE WE NEED TO BE CLEAR ABOUT THAT AND SEE WHERE IT'S COMING FROM.

BEFORE WE KEEP THE FEES LOW. ROSS WERE GONNA LOSE FUNDS. LOOKING AT THE NUMBERS WE'VE LOST MILLIONS OF DOLLARS OVER THE PAST 15 YEARS.

AND WE DO HAVE BENEFITS FROM NEW JOBS COMING IN.

WE STILL NEED THE INFRASTRUCTURE.

NOW OR PASS THE MEASURE E TO INCREASE THE ONE PERCENT TAX. BECAUSE WE CAN'T PAY FOR OUR ROADS.

SO THIS IS DIGGING US DEEPER INTO THAT HOLE. I DON'T THINK IT'S FAIR THAT WERE RAISING THE TAXES ON A RESIDENCE TO PAY FOR SOME OF THESE FEES FOR THE BUSINESSES. I AGREE WE DO HAVE TO FIND A BALANCE.

I THINK WE SHOULD RAISE IT UP TO THE HUNDRED PERCENT FEE AND PHASE IT IN.

LIKE YOU'RE SAYING THERE'S PROJECTS THAT ARE ALREADY ENTITLED THAT ALREADY IN PROGRESS YOU KNOW I THINK IT'S FAIR WITH THAT THOSE GO AHEAD AS IS.

FOR THE NEW DEVELOPMENT WE DO NEED TO GET TO THESE PROPERTIES. THEN WE CAN NEGOTIATE FROM THERE. AS YOU SAID WE CAN NEVER CHARGE ANYTHING OVER BUT WE CAN ALWAYS NEGOTIATE IF WE THINK THERE'S GONNA BE BENEFITS TO THE COMMUNITY FOR MANY DEVELOP MY COMING IN. WHETHER STOPS AND SERVICES. I COULD SET A GROCERY STORE. IF THERE'S AN AREA THAT DOESN'T HAVE A GROCERY STORE OR HAVING TROUBLE GETTING ONE IN THERE WE CAN INCENTIVIZE IT. BY LOWERING HIS DEVELOPMENTAL IMPACT FEES THEN THAT WOULD BE A GOOD IDEA. I DON'T THINK WE CAN BLANKET COVER LOWERING DEVELOP MEANT FEES FOR EVERYBODY.

THAT'S GOING TO LEAVE US TO TAPE IN THE HOLE HERE. THANK YOU.

>> I THINK LOOKING AT WHERE WE ARE NOW. IT'S A BLACK-AND-WHITE WE HAVEN'T TOUCHED OUR FEES SINCE 2006.

2006 TO 2021 IT'S A LITTLE DIFFERENT AND THERE SOME THINGS I THINK WE HAVE TO TAKE INTO CONSIDERATION WHEN WE MOVE TOWARDS SOMETHING LIKE US.

I THINK WE CAN ALL AGREE THAT THE FUNDS WILL GO TO GREAT PROJECTS AND BOOST HER QUALITY OF LIFE. AND WE ALSO GOT TO REMEMBER OUR ECONOMY IS DIFFERENT NOW.

WE ARE IN THE COVID ECONOMY.

WE HAVE A LABOR SHORTAGE. WE HAVE SUPPLY, BROKEN SUPPLY CHAIN.

WE NEED TO CONSIDER OUR HOUSING. PORTABLE HOUSING. OUR ARENA NUMBERS. AND ALSO SEQUENCE. THERE'S A LOT OF FEES THAT COME INTO PLAY WHEN YOU DEVELOP IN OUR CITY. I DON'T THINK WERE CLOSE TO THE FINISH LINE YET OF WHAT WE WANT TO BE. NONETHELESS WE WANT TO KEEP OUR DOORS OPEN FOR FURTHER DEVELOPMENT.

WE WILL WELCOME MORE DEVELOPERS INTO OUR COMMUNITY. WE ARE STILL GROWING LIKE A MANSION. ONE OF THE FINISH LINE YET.

I UNDERSTAND THE DIRECTION WE ARE GOING. I DON'T GO AND ENTERTAIN THIS EVENING. I THINK WE NEED TO TAKE THOSE THINGS INTO CONSIDERATION.

ALSO COMPARED TO OUR NEIGHBORING CITIES, I DID SEE A COMPARISON ON THERE.

I THINK THAT'S ALSO REASONABLE TO COMPARE TO OUR NEIGHBORING CITIES. NONETHELESS I THINK WE SHOULD JUST BE COGNIZANT OF THOSE THINGS I MENTIONED.

I HAVE NO FURTHER COMMENTS ON THAT.

WE STOP A LITTLE TIME CITY

MANAGER. >> YES, PART OF ME.

>> ONE LAST, AS IS FOR THE SESSION RUN OR THE EVENING SESSION? RIGHT NOW.

>> OKAY MR.

MIKE. >> I'M THE DIRECTOR OF SALES FOR WESTERN WATERWORKS. MISAPPLY A LARGE AMOUNT OF INDIO'S UNDERGROUND WATERWORKS OR WATER AND SEWER PIPE WENT OFF TO THE VALLEY.

WANT TO BE UP TO SPEED A BIT ON WHAT'S HAPPENING IN THE UNDERGROUND MARKET. HOW IT'S BEEN AFFECTED BY THE LAST YEAR. THE INCREASE IN PVC PIPE IS ONE OF THE MAIN THINGS THAT GOES INTO FILAMENTS AND PROJECTS HAS ONE UP. PUTTING 50 TO 3 AND A PERCENT. THE

[01:25:03]

YOU STATE BEING 4 TO 6 WEEKS OR MAYBE 2 TO 3 WEEKS.

THIS IS PUTTING … THEY HAVE WHAT'S CALLED HORSE MEASURE AND THEY COULD RAISE A PRICE AND RAISE THE PRICE AND RAISE THE PRICE. CAUTION AGAINST HAVING ALL THESE ARE HEAVIER DEVELOPMENT FEES RACE RIGHT NOW.

JUST TO FOR THE DEVELOPERS JUST TO KEEP UP WITH UNDERGROUND PART OF IT LET ALONE THE LUMBER OR WHAT ELSE IS RISING UP. I WOULD JUST CAUTION AGAINST. SOMEDAY THE HUGE RISE IS GOING TO FALL DOWN AGAIN AND WE DON'T WANT TO DISCOURAGE GROWTH. YOU DON'T WANT TO DISCOURAGE HOUSING.

WE DON'T WANT DISCOURAGED PROJECTS LIKE COLDS PROJECTS. I THINK WE NEED TO BALANCE IT AND UNDERSTAND HOW TOUGH AT TIMES DEVELOPERS HAVE NOW.

THAT'S MY ONLY COMMENTS.

IF YOU HAVE ANY QUESTIONS?

>> NO.

I THINK THAT'S IT MR. EDWARDS. THANK YOU FOR YOUR COMMENTS. WE APPRECIATE THAT.

>> THANK YOU.

>> TOPIC FOR DISCUSSION FOR COUNCIL. WHEN WE SEE THE PRICES GO UP FOR THESE BUSINESSES IN LUMBER AND CONSTRUCTION. WE ARE SEEING THAT IS ALL RIGHT.

THOSE PRICES ARE ALSO HIGH FOR US. IF WE KEEP EVERYBODY AT THE LOW LEVELS WERE STILL PAYING THE HIGH LEVELS WE GO TO CONSTRUCT A NEW BUILDING.

WE HAVE TO KEEP THAT IN MIND AS WELL.

NOT JUST FOR THE BUSINESS COMMITTEE BUT FOR US AS WELL. WE WILL BE PAYING HIGHER PRICES.

THAT'S WHY THE STUDIES ARE SHOWING THAT THE DEVELOPMENT IMPACT FEE IS TO BE AT THE HIGHER LEVEL.

>> JUST A REMINDER.

THE DISCUSSION OF THE AMOUNT OF THE FEE OR IS GOING TO BE FOR LATER. THIS IS REALLY JUST MORE QUESTIONS AND ANYTHING DIRECTION TO STAFF FOR THE SAVINGS AT MEETINGS. I WANT TO CLARIFY THAT.

>> WE CAN TALK ABOUT IT EITHER. IT'S THE SAME THING AS A CANNABIS MARKET. HE DETECTED A 4 PERCENT OR 10 PERCENT.

YOU MAKE A LOT MORE ON IMPACTING THAT. JUST PUSHING THE BLACK MARKET OR EAT THEY WILL GO SOMEWHERE ELSE.

IT'S ABOUT. I WANT TO BALANCE THE 2 BETWEEN PROPER FEES COMING IN, NOT STOP IT WILL BE HAVE NOW. BECAUSE WE HAVE COVID AND OTHER STUFF. AT THE SAME TIME MAKING SURE WE COLLECT FEES. IT'S A BALANCE THING. WHEN A TO GET IT RIGHT THE FIRST TIME LIKE EVERYTHING ELSE. WORKING ON THINGS THAT COME IN.

IT WILL BE INTERESTING TO SEE WHAT WE HAVE IN OUR BOOKS NOW. COMPARED TO WHAT WERE LOOKING AT HERE IN THE FUTURE TOO. RIGHT NOW WE HAVE ALL THAT HOUSES AND ALL THE STUFF COMING IN THAT A COMMITMENT FOR THE OTHER STUFF. WITH POSSIBLY COLD VOICE THAT MAY BE EXPANDING. WE HAVE THE RESTAURANTS THAT ARE COMING IN.

OR WHAT THEY HAVE COME IF THEY'D KNOWN SOMETHING ELSE? TO THE GET GRANDFATHERED IN? DO THEY NOT? WE CAN'T BEAT EVERYONE COMES IN ONCE A SPECIAL DEAL. THAT'S NOT A FLY. WE'VE GOT SOME DISCUSSION. WE COULD TALK ABOUT IT LATER AND THIS DOESN'T HAVE TO BE FINISHED TONIGHT.

>> YEAH. I'M WONDERING, IF WE LOWER THIS DEVELOPMENT IMPACT FEES OR DUES ABOUT MONEY COMING FROM?

>> RIGHT NOW, I'M NOT AGAINST RAISING THEM UP WITH SOME AREAS. BUT WHERE? WERE GONNA GET MORE MONEY THAN WE HAVE BEFORE. HER OFFICER GOT A BREAK SOME OF THEM.

SOME ARE GOING DONNA SUMMER COMING OUT. THERE TALKING ABOUT A GROCERY STORE.

THAT'S A HIGH EXAMPLE 6000, 200,000.

AS ARE EXAMPLES OF OTHERS THAT COULD BE OUT THERE? COULD IT BE ANOTHER INDUSTRY WE ARE TRY TO BRING IN DOUBLE THE SAME, IMPACT AND WE DON'T KNOW ABOUT IT UNTIL WE GET THERE.

WE WILL GO TO BERMUDA DUNES OR LIKE A LOT OF PLACES HAVE GONE TO THE BORDER. LIKE WE DID WITH LA QUINTA WHEN THEY DID HAVE A GROCERY STORE. PUT THE ONE IN ROME'S.

THEY ADDED MORE MONEY BECAUSE HE WANTED TO GET IN. HE WANTS TO DRAW PEOPLE IN FROM THE OTHER AREA.

HE IS SMART. WHAT'S NEAREST IF THEY CAN CAPITALIZE ON SOMETHING THAT WE MAKE A MISTAKE ON.

WE WILL NEVER GET IT RIGHT.

OR TO LOSE HIM IN WITH SOME.

WHAT WE DO THAT'S GOING TO DRAW THE MOST AMOUNT OF JOBS AND OPPORTUNITIES FOR US AND MAKE SURE SODA COMES FOR US A FEE IT'S OF HER

FAITH. >> I THINK WE SHOULD FOCUS ON THE QUESTIONS AND HAVE THIS DISCUSSION AGAIN FOR THE PUBLIC HEARING TONIGHT. ASK ABSOLUTELY.

[01:30:02]

>> QUESTION? >> WILL BE HAVE A COMPARISON FOR TONIGHT'S DISCUSSION FOR OTHER CITIES? ASK ITS APPENDIX A. IT'S THERE.

WHEN A CAUTION EVERY CITY IS DIFFERENT. EVERY LIST OF PROJECTS WILL BE DIFFERENT FOR EACH CITY. SOBER THEY ARE IMPACT FEES AND APPLES TO APPLES COMPARISON.

IF THEY ARE SOMETHING'S WRONG WITH THE STUDY. EVERY CITY IS SO DIFFERENT.

>> I THINK THAT WILL SERVE THE POINT THAT KITZMILLER MILLER IS MAKING. ARE WE GONNA BE LOSING BUSINESSES TO OTHER CITIES BECAUSE OF

THE LOW FEES. >> I THINK WILL HAVE ENTERED DISCUSSION LATER THIS EVENING. WE COULD DISCUSS ALL THOSE POINTS THAT WERE BROUGHT UP. WHICH ARE ALL VALID POINTS. I THINK WE ARE MOVING. WE HAVE A LOT OF MOMENTUM IN OUR CITY AND WE WANT TO KEEP IT.

WE ARE GROWING. INDIO IS GROWING JUST A POPULATION COULD EXCUSE ME I HAVE MY MOUSE GONE.

WE ARE GROWING IN BUSINESS.

WE WANT TO GROW RIGHT. WE WANT TO BE EQUITABLE WHEN WE DO IT. WE STILL HAVE 10 MINUTES BEFORE CLOSE OF EVERY FURTHER DISCUSSION OR QUESTIONS OR COMMENTS

OF THE CONSULTANT. >> WE SHOULD PROBABLY

TURN. >> I'M SORRY IT CLOSED ITS POSTER START FORMAL TODAY.

>> AS I MENTIONED TO THE CITY MANAGER WERE NOT READY FOR THE CLOSING SESSION. SO THE PLACEHOLDER ITEM. WE STILL PLENTY OF TIME. IF THERE ARE QUESTIONS. I WANT TO EMPHASIZE THE COMMENTS AND I NEED TO WAIT FOR THE EVENING MEETING. FOR THOSE OF THE AUDIENCE THAT MAY PUBLIC COMMENTS THERE ARE MORE THAN WELCOME TO COME TO THE EVENING MEETING MAKE THIS COMETS AGAIN THIS WOULD BE PART OF THE OFFICIAL PUBLIC HEARING RECORD. THE EVENING COMMENTS.

>> I'M GOOD

* This transcript was compiled from uncorrected Closed Captioning.