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HomeMy WebLinkAbout75B - PH CANNABIS REGISTRATION APPREQUEST FOR COUNCIL ACTION CITY COUNCIL MEETING DATE: NOVEMBER 21, 2017 TITLE: PUBLIC HEARING - ADOPT A RESOLUTION TO CREATE CANNABIS -RELATED REGISTRATION APPLICATION AND REGULATORY SAFETY PERMIT FEES IN THE FISCAL YEAR 2017/18 MISCELLANEOUS FEE SCHEDULE {STRATEGIC PLAN NO. 4,31 CLERK OF COUNCIL USE ONLY: APPROVED ❑ As Recommended ❑ As Amended ❑ Ordinance on 1� Reading ❑ Ordinance on 2nd Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO r FILE NUMBER I MANAGER RECOMMENDED ACTION Adopt a resolution to create the Cannabis Registration Application and a Regulatory Safety Permit (RSP) application fees so that the fees are applicable to all commercial cannabis activities in the fiscal year 2017/18 Miscellaneous Fee schedule for the Planning and Building Agency. DISCUSSION The City of Santa Ana requires that all medical marijuana collectives/cooperatives permitted in Chapter 18 (Measure BB) submit a Registration Application and a Regulatory Safety Permit (RSP), the latter of which is renewed annually. Currently, the fees may only be collected for applicants seeking to apply for or renew those permits associated for medical marijuana collectives/cooperatives. Pursuant to Chapter 40 of the Santa Ana Municipal Code (Ordinance No. NS -2929), all applicants for adult -use cannabis sales must also submit a Registration Application and RSP. In order to collect fees for these two applications, the existing fee description must be amended to apply to all commercial cannabis applicants. Adult -Use Retail Cannabis Registration Fee: $1,690.00 Adult -Use Retail Regulatory Safety Permit: $12,086.00 STRATEGIC PLAN Approval of this item supports the City's efforts to meet Goal #4 - City Financial Stability, Objective #3 (achieve a structurally balanced budget with appropriate reserve levels). 7513-1 Fee Resolution for Cannabis -Related Businesses November 21, 2017 Page 2 FISCAL IMPACT There is no fiscal impact associated with this action of creating these new fees. Existing medical marijuana collectives/cooperatives permitted under Measure BB have already submitted the required Registration Application and RSP fees. Should these collectives/cooperatives transition to selling adult -use cannabis, these businesses will continue to be required to renew their RSP applications on an annual basis as they currently do as a collective/cooperative. However, Registration Applications will be required for all new applications, so existing medicinal marijuana operators that seek to offer retail cannabis sales will be required to pay a new Cannabis Registration Fee. Candida Neal, AICP Acting Executive Director Planning & Building Agency AP: rb SAFCA\2017\11-21-17\Commercial Cannabis Fee Reso RFCA Exhibit: 1. Resolution 75B-2 N(�N &e. o r . � Francisco Gutierrez Executive Director Finance and Management Services LS 11.21.17 RESOLUTION NO. 2017 -XXX A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTA ANA CREATING THE ADULT -USE CANNABIS RETAIL REGISTRATION APPLICATION FEE AND REGULATORY SAFETY PERMIT FEE TO BE APPLICABLE TO ADULT -USE CANNABIS RETAIL BUSINESSES IN ACCORDANCE WITH CHAPTER 40 OF THE SANTA ANA MUNICIPAL CODE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SANTA ANA AS FOLLOWS: Section 1. The City Council of the City of Santa Ana hereby finds, determines and declares as follows: A. The City requires that all medical marijuana collectives/cooperatives permitted in Chapter 18 (Measure BB) submit a Registration Application and a Regulatory Safety Permit (RSP), the latter of which is renewed annually. Currently, the fees may only be collected for applicants seeking to apply for or renew those permits associated for medical marijuana collectives/cooperatives. B. On October 17, 2017, the City Council of the City of Santa Ana placed on first reading and approved Ordinance No. NS -2929 adding Chapter 40 to the Santa Ana Municipal Code to allow and regulate adult -use cannabis retail businesses. C. Section 40-9 of the Santa Ana Municipal Code authorizes a registration application fee and regulatory safety permit fee related to the processing of applications to open and operate an adult -use cannabis retail business. D. Based on analysis and evaluation of staff time, equipment, and materials, these fees are recommended as set forth below. E. These fees shall become effective concurrently with the effective date of Ordinance No. NS -2929 and shall be incorporated into the City's Uniform Schedule of Miscellaneous Fees for Fiscal Year 2017-18, as updated annually. Section 2. The City Council hereby creates the Adult -Use Cannabis Retail Registration Application Fee. This fee will apply to adult -use commercial cannabis retail businesses to include City staff costs associated with reviewing the required Phase 1 application pursuant to Chapter 40. City staff costs are $1,690.00 per application. The City Council hereby also creates the Adult -Use Cannabis Retail Regulatory Safety Resolution No. 2017 -XXX Page 1 of 3 75B-3 LS 11.21.17 Permit (RSP) Fee. This fee will apply to adult -use cannabis retail businesses to include City staff costs associated with reviewing the required Phase 2 (RSP) application pursuant to Chapter 40. City staff costs are $12,086.00 per application. Section 3. Without further action of the City Council, the above -referenced fees created by this Resolution shall be incorporated into the City's Uniform Schedule of Miscellaneous Fees for Fiscal Year 2017-18 and updated annually. Section 4. This Resolution shall take effect immediately upon its adoption by the City Council, and the Clerk of the Council shall attest to and certify the vote adopting this Resolution. ADOPTED this _ day of 2017. APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By:�o L Lisa Storck Assistant City Attorney AYES: Councilmembers NOES: Councilmembers ABSTAIN: Councilmembers NOT PRESENT: Councilmembers Miguel A. Pulido Mayor 75B-4 Resolution No. 2017 -XXX Page 2 of 3 LS 11.21.17 CERTIFICATE OF ATTESTATION AND ORIGINALITY I, Maria D. Huizar, Clerk of the Council, do hereby certify the attached Resolution No. 2017- to be the original resolution adopted by the City Council of the City of Santa Ana on 2017. Date: Clerk of the Council City of Santa Ana 75B-5 Resolubon No. 2017 -XXX Page 3 of 3 75B-6