City Council
MEETING DATE: 1/24/2018
TITLE:
Title
2018 Cannabis Local License Annual Renewal Fee Review and Adjustment
End
FROM:
Pat Milos, Community Development Director
RECOMMENDATION:
Recommendation
Staff recommends the City Council adopt a resolution adjusting the 2018 Cannabis Local License Annual Renewal Fee.
Body
BACKGROUND:
The Cathedral City Municipal Code 5.88.055 Covers the Renewal of local Cannabis license and states:
A. A medical cannabis business may apply for the renewal of a local license no less than thirty days prior to the local license’s expiration date. If the medical cannabis business files a renewal application less than thirty days prior to expiration, the medical cannabis business must provide a written explanation detailing the circumstances surrounding the late filing. The local licensing authority may accept or reject such late filing at its discretion. The local licensing authority may elect to administratively continue a local license past its expiration date, provided the licensee has submitted a renewal application that is pending final action.
B. An application for renewal will only be accepted if it is accompanied by the requisite licensing fees.
C. Each application for renewal shall include updated information for any part of the application that has undergone a change in circumstance since the original application or last renewal filing.
D. All owners of the medical cannabis business must be fingerprinted each year at renewal if required in the discretion of the local licensing authority or chief of police.
E. Unless administratively continued pursuant to subsection A, a local license is immediately invalid upon expiration and the medical cannabis business shall cease operations.
F. All local licenses are valid for one year. A local license may be valid for less than the applicable license term if revoked, suspended, voluntarily surrendered, or otherwise disciplined. (Ord. 775 § 3, 2016; Ord. 772 § 2, 2016)
DISCUSSION:
At the May 5, 2017, Study Session the City Council discussed the current fee schedule for Cannabis permitting and directed staff to perform a complete review and comparison of Cannabis processing and inspection fees. Upon completion, the staff was directed to bring a recommendation back to the City Council in the form of a resolution for Council review, consideration, and adoption.
On July 26, 2017, The City Council set the Annual Cannabis Local License
Renewal fee at $4,500 based on the information available at that time.
On January 1, 2018, the State of California legalized the sale of Adult-Use Cannabis as well as Medical Cannabis. Leading up to that date the State instituted the Bureau of Cannabis Control to license and regulate Cannabis business activities. Working with the State agencies and providing them with, and verifying critical information for State Licensing has placed additional administrative responsibilities on the Local Governments that allow related businesses to operate in their jurisdictions.
City Staff including the Community Development Department, the Administrative Services Department and the Cathedral City Police Department have analyzed the process and cost recovery effort and established an Annual Cannabis License Renewal Fee of $5,900.00 (see attached table).
FISCAL IMPACT:
There is no immediate fiscal impact with the recommended fee adjustments, however the adjusted fees will allow the City to recover staff expenses related to processing.
ATTACHMENTS:
1. Cannabis License Annual Renewal Fee processing study and fully burdened hourly rates table.
2. Resolution approving 2018 Cannabis License Annual Renewal Fee