note from the gardening snail. this page was produced by running a pdf imagine file through software which converts image to text. my apologies for any textual gremlins that may have snuck in
meeting date: March 20, 2018
STAFF REPORT
AGENDA ITEM: Resolution Approving Commercial Cannabis Application Fees and Amending Master Fee Schedule to include the Commercial Cannabis Application Fees.
MEETING DATE: March 20, 2018
PREPARED BY: Jose M. Sanchez, City Attorney Kate Cook, Special Counsel
RECOMMENDATION
Adopt Resolution 2018 – approving Commercial Cannabis Application Fees and amending the City’s Master Fee Schedule to include the Commercial Cannabis Application Fees.
BACKGROUND AND ANALYSIS
On December 19, 2017, the City adopted Ordinance 632, which amended the Livingston Municipal Code (“Municipal Code”) to permit limited commercial cannabis activities within the City. The permitted commercial cannabis uses approved were manufacturing, testing, indoor cultivation, distribution, and medical cannabis delivery, originating outside the City. All commercial cannabis businesses are required to obtain a Commercial Cannabis Permit from the City (“Permit”) and enter into an operating agreement with the City.
The City has established a two-phase process for obtaining a Permit. Phase 1 is a preliminary review of the applicant’s proposed business, to ensure that the applicant clears a background check, meets the City’s commercial cannabis zoning requirements, and possess the authority to operate a cannabis business at the proposed site. Applicants receiving Phase 1 approval may then progress to Phase 2.
Phase 2 involves a more in-depth evaluation of the applicant’s business. The applicant’s site plan, security plan, and operational plan are analyzed to ensure compliance with the Municipal Code, state statutes and regulations. The applicant is also required to submit all information necessary for City Planning Staff to conduct a California Environmental Quality Act review on the project.
Presently, the City has no established Permit application fees or a Permit fee structure . Additionally, without establishing fees for the Permit application, the City has no other mechanism to recover Staff costs for processing and evaluating the Permit applications. Ordinance 634 authorizes the City Council to establish Permit application fees by resolution. Therefore, Staff developed the following proposed Permit application fee structure.
Under the proposed structure, the Phase 1 application fee would be a deposit not to exceed $1,000, and the Phase 2 application fee is a deposit not to exceed $5,200. It is possible the final fee deposit required will be less. This proposed fee structure is to cover Staff time and materials for review of the Commercial Cannabis Permit application. Based upon a thorough review and analysis of the Permit processes by consultant SCI, Staff believes that these amounts are reasonably sufficient to cover Permit processing costs.
This two-phase process is intended to encourage potential businesses to apply for Permits from the City. Potential business applicants will be charged a minimal amount to cover staff’s Phase 1 review. Once the applicant passes the Phase 1 review, the applicant will have confidence that there is a substantially greater likelihood their Permit application will progress. Rather than charging a large up-front fee, this two-phase process provides a relatively low risk option for potential commercial cannabis businesses to explore the option of establishing a cannabis business within the City by removing financial impediments.
In coming weeks, City Staff will bring forward another Resolution for Council consideration to adopt the Permit fee amounts. The consultants’ analysis of the appropriate fee structure for the Permits continues.
FISCAL IMPACT:
Approval of the attached Resolution will have a net-zero fiscal impact on the City. The proposed Permit application fees will cover Staff costs in processing and evaluating each Permit application. The proposed Permit application fee structure is:
|
Application Phase |
Deposit Not to Exceed Amount |
|
Phase 1 |
$1,000 |
|
Phase 2 |
$5,200 |
ATTACHMENTS:
1. Resolution 2018 – approving Commercial Cannabis Application Fees and amending the City’s Master Fee Schedule to include the Commercial Cannabis Application Fees.
2. Draft Commercial Cannabis Application – Phase 1.
2939349.2
RESOLUTION NO. 2018 –
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LIVINGSTON APPROVING COMMERCIAL CANNABIS APPLICATION FEES AND AMENDING THE MASTER FEE SCHEDULE TO INCLUDE COMMERCIAL CANNABIS APPLICATION FEES
WHEREAS, on December 19, 2017, the City of Livingston (the “City”) adopted Ordinance 632, which amended the Livingston Municipal Code (“Municipal Code”) to permit limited commercial cannabis activities within the City; and
WHEREAS, the Municipal Code establishes that all commercial cannabis businesses seeking to operate within the City must first obtain a Commercial Cannabis Permit (“Permit”) from the City and enter into an operating agreement with the City; and
WHEREAS, the City currently has no fees or fee structure for Permit Applications;
and
WHEREAS, the City has established a two-phase process for obtaining a Permit to attract potential commercial cannabis businesses by minimizing the financial burdens of the Permit application fees; and
WHEREAS, the City retained consultant SCI to conduct a fee analysis and recommend fees reasonably related to the cost to process the applications; and
WHEREAS, Ordinance 632 authorizes the City Council to set Permit fees and a Permit fee structure by Resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Livingston hereby approves the Commercial Cannabis Application Fees and inclusion of such fees into to the Master Fee Schedule for the City of Livingston, attached hereto as Exhibit A and incorporated herein by reference.
Passed and adopted this 20th day of March, 2018, by the following vote: AYES:
NOES:
ABSTAIN:
ABSENT:
Jim Soria, Mayor
of the City of Livingston
ATTEST:
I, hereby certify that the foregoing resolution was regularly introduced, passed and adopted at a Regular Meeting of the City Council of the City of Livingston this 2oth day of March, 2018.
2939356.2
Antonio Silva, City Clerk of the City of Livingston
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