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Home My WebLink AboutCC RESO 2021-194 Establishing Fees for Recovery Commercial Cannabis Business Regulatory Program Development and Reviewing Applications for Cannabis BusinessesRESOLUTION NO. 2021- 194 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, ESTABLISHING FEES FOR RECOVERY OF THE COST OF THE COMMERCIAL CANNABIS BUSINESS REGULATORY PROGRAM DEVELOPMENT AND FOR THE COST TO REVIEW AND PROCESS APPLICATIONS FOR CANNABIS BUSINESSES WHEREAS, on May 4, 2021, the City Council of the City of National city ("City") adopted Ordinance Number 2021-2 7, adding Chapter 9.60 (Commercial Cannabis Activity) to the National City Municipal Code to establish a regulatory program requiring all commercial cannabis uses to obtain a commercial cannabis business permit issued by the city before commencing operation; and WHEREAS, the California Constitution and the Government Code allow the City to establish fees and charges for municipal services and regulatory programs; provided such fees and charges do not exceed estimated reasonable cost to the city in providing the service or regulatory program to which the fee or charge applies; and WHEREAS, S, the City has incurred expenses to adopt the commercial cannabis business regulatory program to develop cannabis business applications; and WHEREAS, administration of the commercial cannabis business regulatory program requires the City to incur costs to process permit applications and to ensure applicants and businesses comply with the City's Municipal Code and related regulations and policies; and WHEREAS, City staff, with the assistance of SCI Consulting Group, has conducted a cost recovery analysis of the costs associated with the development, operation, and administration of the cannabis regulatory program, including the costs for processing commercial cannabis business permit applications; and WHEREAS, the City held a Public Hearing to consider adjustments to City user fees at a publicly noticed regularly scheduled City Council meeting on December 7, 2021, wherein the City Council considered oral and written presentations of City staff, and members of the public; and WHEREAS, the City Council has determined that a new commercial cannabis business fee schedule is necessary to recover costs associated with creating and administering the commercial cannabis regulatory program; and WHEREAS, the City Council has reviewed the cost recovery analysis conducted by staff and finds that the proposed fees do not exceed the reasonable costs of providing services for which these fees are charged. NOW, THEREFORE, F E, THE CITY COUNCIL OF THE CITY OF NATIONAL CITY, CALIFORNIA, DOES RESOLVE, DECLARE, DETERMINE, AND ORDER AS FOLLOWS: Resolution No. 2021 — 194 Page Two SECTION 1: Approves and adopts the recitals set forth above in support of this Resolution. SECTION 2: The "Commercial Cannabis Business Fee Schedule," attached hereto as "Exhibit A" and incorporated herein by this reference, is hereby approved and shall be added to the City's Master Fee Schedule. SECTION 3: The rates, fees, and charges set forth in Exhibit "A" shall be effective and implemented on February 7, 2022. SECTION 4: Determines that the adoption of this Resolution does not constitute a project under the California Environmental Quality Act "CEQA according to CEQA Guidelines Sections 15378 b)( 4), as it does not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment. Furthermore, the approval of the fees established in this Resolution is categorically exempt from CEQA under CEQA Guidelines Section 1 7 a)( 1) because the approval of the fees is merely establishing fees to meetoperating expenses. SECTION 5: if any section, subsection, subdivision, paragraph, sentence, clause, or phrase of this Resolution or any part thereof is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity of the remaining portion of this Resolution or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause, or phrase hereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause, or phrase be declared invalid or unconstitutional. SECTION 6: The City Clerk shall certify the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED and ADOPTED this 7th day of December, 2021.. A jand'ra S tefo-soli,� y'lay or ATTEST: Luz Moiin/City Clerk APPROVED 'ED AS TO FORM: Charles E. Bell Jr., city Att Passed and adopted by the City Council of the City of National City, California, on December ember 7, 2021, by the following vote, to -wit: Ayes: Sotelo--Solis, Bush, Morrison, Rios. Nays: None. Absent: Rodriguez Abstain: None. AUTHENTICATED ATED BY: ALEJANDRA SOTELO-SOLIS Mayor of the City of National City, California Luz Molina City Clerk of the City of National City, California BY: /VA Shelley Chapel, MMC, deputy City Cerk EXHIBIT A Commercial Cannabis Business Fee Schedule Summary of Commercial Cannabis Fees: Fee Description Type Fee 1 Unit Appiicalion Review - Phase I Applicat'on Review - Phase Application Review - Phase Background Check Appeal Process Fee Fee Fee Deposit2 Fee Fee $1, 9 $3,765 $5,000 $350 $3,586 per applicalion per applicalion per application per owner per appeal Notes: Proposed fees are rounded to the nearest dollar. 2 The Deposit paid at the time of application are estimates based on the typical amount of sta=' time and other costs required to negotiate development agreements. In the event the deposit is not sufficient to reimburse the City for completing the Phase III review, the applicant shall provide additional deposits to the City sufficient to complete the processing of the application. If, at any lime, the regaining Deposit retained by the City is below $1,000 after deductions for the fees incurred to date, then, within 15 days aver receipt of written notice from the City of that fact, the applicant shall deposit an additional $, 00 with the City. The City shall not perform any further review of the application until the applicant submits the Deposit or the required increase to the Deposit No interest shall accrue on amounts deposited. Any unused portion of the Deposit will be returned to the applicant within 60 days following the approval/denial of the commercial cannabis business permit • Fully Burdened Hourly Rates: {'�.:', ;:' '•Y, ".[:, .;�_ .x�. - ,' ::;t.; :y^� .+ t 1 .�k, :.t •�{ ,t,, �,,.{H; .:,C:?;.;:fi{b• .�...y f ' };'i . r•%5,,7 `,y f�? w:llt = ,'' ,�" 3 :"k;' ' ' �:�sy 7' tr: }{;?;: ; Yr yy r= 1 $k .- F f ti ,.h �F. �'Ty'-�K{{� 44j'.i.a�Y �-r �`y� �,'ram r.{J;; .. r:� : ,tli:::r 4�a' Y.S' tr��'ay.i`. }5:. f.•��S - •.•x. •,: 1:Sr+s,.si{ i. . 4i�,'fi-a$;h:r�- •':;5'-s"�4 ='k Er F`Y.' �ti,`e-,- .,+„ .t-' +r�7. :',o, ..t •�S 4. .Y�?' �. -LyG" ri: 'f}W} `4r: i•" ':s. .._{ - 'ai�-r 'i:-_. �, } ''s■�,�.r.,f;i,�} .�Y..-a:°L...: `x�c" • _ - ''i: _ s.i; _ �-:L• .; .n,s:�aw,i'.�?�.%s;-,�+?,: ;-.ti7a :i. ,} } ,y� ` - `-'x r �'? ,:.'..k, 5 7., : a •}- , �rr' w w:g. .c':.r— �3tr=..; . x,s,GiFr. - ...1.v.,�. J. .'+; 5�s:: v+5: �.. '}'s"'sv.Y. vt ^71(1' �'-. d gr .j' 3 rv:,4' yr t:}a••..-:' `{iY' _d']{:.+.,.:} .;}rY'. y..,4i. , _ 91- . ; ., : Y'.• '# ..;':`"TFF- .�i .�i'�.#h�}- ; f. f: { v 5 ofT�l_: "i}7� ,_• "F.; 1 .��!:M1"s _-, ';4�'i?rk rhE v`tJ ^S _ k.. . �Y..w, • 45-�. '_ ;:r`+i iti, �cb�sxn..s:,iir.l+ ..>Ys �. i�s1 7�JP,L Dept Title FBHR CM0 City Manager CommunityDevelopment Executive Assistant Spec Ill $225.81 $106.19 $78.86 El Accounting Assistant $6L18 CA city Attorney $193.73 r Other: Consultant r $280.00 1 Fully Burdened Rates are subject to change annually. SCIConsultingGroup Public Finance Consulting Services City of National City Commercial Cannabis Cost Recovery Analysis EXHIBIT A Application Review - Phase I: Determination of Eligibility General Tasks/Activities City Administration City Manager's Office CDS CM Ill E :TO 11 B ra d *. ti t Application Intake Application Completeness Check Determination of Eligibility Development & Implementation 0.50 0.50 0.50 .00 0.50 0.00 0.50 1.00 0.00 0.00 0.00 0.00 Finance SAA 0.50 0.50 0.00 0.00 City Attorney CA 1.00 0.00 0.50 0.00 Total 1.0 .0 0.50 1.00 Outside Service Cannabis Consultant 0.00 0.50 0.50 0.00 Total Labor Other Total Hours Cost Costs Cost 3.00 $430 1.50 4 2.50 $456 0.00 $0 so $0 $0 $750 $430 $224 $456 $750 1.50 1.00 .0 $1,109 $750 13 9 SCIConsuitingGroup Publk Finance Consuiting Services City of National City Commercial Cannabis Cost Recovery Analysis EXHIBIT A Application Review- Phase II: Application Evaluation and Review w City Administration City Manager's Office CDS General TaskslActivities CM III E F lly urden d.:How* Pate :" ..:. -4106 Review and Evaluation 1.00 2.00 .00 Applicant Notification 0.50 0.50 0.50 Finance SAA 61 0a50 0.00 City Attorney CA 1 1.00 0.50 Total 1.50 2.50 0.50 0.50 1.50 Outside Service Cannabis Other Total Consultant Hours Cost Costs Cost 10.00 0.00 Total Labor 14.50 $3,463 2.00 $302 SO $3,463 $302 0 10.00 16.50 $3,765 $0 $3,765 IConsuitingGroup Pt U c i=in nce Consulting Services City of National City Commercial Cannabis Cost Recovery Analysis EXHIBIT A Background Checks General TaskslActivities City Administration City Manager's Office CDS CM Ill EA Finance SAA City Attorney CA Outside Service Cannabis Total Labor Other Total Consultant Hours Cost Costs Cost Background Check Fully Burdened Hourly Rate 226 106 79 0.00 0.00 0.00 . 194 . • 0.00 0.00 1.25 1.25 $350 $0 $350 Total 0.00 0.00 0.00 0.00 0.00 1.25 1.25 $350 $0 $350 SCIConsultingGroup Public Finance Consulting Services City of National City Commercial Cannabis Cost Recovery Analysis EXHIBIT A Appeal Process Fee General Tasks/Activities City Administration City Manager's Office CDS CM Ill Finance SAA City Attorney CA Fully .Burdened .-Hourly Rate 226_� 106 Review Appeal & Prepare Response 3.00 3.00 0,00 Conduct Hearing 2,00 2.00 0.00 Outside Service Cannabis Other Total Consultant Hours Cost Costs Cost Total Labor 0.50 2.00 2.00 10.50 $1, 74 0.00 2.00 2.00 8.00 $1611 Total 2.00 2.00 0.00 0.00 2.00 $0 $1,974 $0 $1,611 .00 8.00 $3,586 $0 $3,586 SCIConsuitingGroup Public Finance Consutting Seirvice.