Joint Special Meeting CC/BFPD/Odesa/Harvey House
02/7/22 06:00 PM
City Manager Department
Willie A Hopkins
Resolution
Doc ID: 4919
AGENDA ITEM
AGENDA MATTER:
CONSIDERATION OF RESOLUTION NO. ____-2022 ESTABLISHING A RESERVE POLICY TO DESIGNATE 50% OF CANNABIS DEVELOPMENT AGREEMENT OPERATING FEE REVENUES FOR PUBLIC SAFETY.
EXECUTIVE SUMMARY:
Staff recommends the City Council adopt Resolution No. ____-2022, establishing a reserve policy to designate fifty percent (50%) of cannabis development agreement operating fee revenues to be used for public safety services costs, including police and fire services costs.
DISCUSSION:
On November 8, 2016, the Control, Regulate, & Tax Adult Use of Marijuana Act (“AUMA”) was approved by California voters via Proposition 64. The AUMA permits local jurisdictions to regulate and/or ban adult use cannabis cultivation, distribution and delivery, transportation, manufacturing, testing laboratories, dispensaries, and microbusiness facilities.
In June 2021, the City Council passed Ordinance No. 974-2021 which added Chapter 19.27 to the Barstow Municipal Code to permit commercial cannabis activities in the City. The ordinance went into effect on July 7, 2021. On October 4, 2021, the City Council adopted Ordinance No. 977-2021, amending the City’s cannabis regulatory program ordinance. All cannabis businesses must enter into a development agreement with the City that will be subject to council approval through the adoption of an ordinance under Government Code Section 65865. The commercial cannabis development agreements require commercial cannabis facilities to pay several fees to the City, including permit application and renewal fees, annual regulatory monitoring fees, and operating fees, together with all taxes as owed under applicable law.
The opening of commercial cannabis businesses in the City is expected to increase strain on the City’s public safety services, given anticipated needs for additional policing and fire protection. The resolution under consideration by the City Council reserves fifty percent (50%) of the operating fee funds received by the City under development agreements with commercial cannabis businesses to offset the expected increased costs of providing policing and fire services in the City. The remaining half of these operating fee revenues from commercial cannabis businesses would be available for any general fund purposes, such as parks and recreation and other city services.
FISCAL IMPACT:
Fifty percent (50%) of cannabis development agreement operating fee revenues would be used for public safety services costs, including police and fire services costs.
RECOMMENDED ACTION:
Staff recommends the City Council approve Resolution No. ____-2022 and establish a reserve policy designating that 50% of funds received from cannabis development agreements entered into by the City are set aside for public safety services.