In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at (562) 804-1424, extension 2220 or [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.
Agenda Items are on file in the Office of the City Clerk and are available for public inspection during normal business hours. For your convenience, the Agenda is also posted on the City’s Website at www.bellflower.ca.gov with links to each Agenda Item (unless they are too lengthy or unavailable at the time of posting). Any supplemental material distributed to a majority of the members of the City Council after the posting of this Agenda will be made available for public inspection during normal business hours in the City Clerk’s Office at City Hall, 16600 Civic Center Drive, Bellflower. (Privileged documents and Closed Session documents are exempted.)
SPECIAL MEETING OF THE BELLFLOWER CITY COUNCIL
FRIDAY, NOVEMBER 14, 2025, 10:00 A.M.
BELLFLOWER CITY HALL - COUNCIL CHAMBERS
1 CALL TO ORDER
2 ROLL CALL: Mayor Ray Dunton
Mayor Pro Tem Sonny R. Santa Ines
Council Member Dan Koops
Council Member Wendi Morse
Council Member Victor A. Sanchez
3 PUBLIC COMMENTS
Pursuant to Government Code Section 54954.3(a), the public may address the City Council on matters listed on the Agenda. Those wishing to speak on a listed item should come to the podium, be recognized by the Mayor, and state your name for the record. Each speaker will be given three (3) minutes to address the City Council.
AGENDA
T h e C i t y o f B e l l f l o w e r
Families. Businesses. Futures.
16600 Civic Center Drive, Bellflower, CA 90706
Tel 562.804.1424 Fax 562.925.8660 www.bellflower.ca.gov
Bellflower City Council Special Meeting Agenda
November 14, 2025
4 STUDY SESSION
A Consideration and possible action to conduct a study session regarding cannabis-related businesses.
Recommendation to City Council: 1) Receive the cannabis study session presentation and after consideration, provide direction to the City Manager regarding cannabis businesses in the City of Bellflower; or 2) Alternatively, discuss and take other action related to this item.
5 ADJOURNMENT
STATE OF CALIFORNIA
COUNTY OF LOS ANGELES ) SS
CITY OF BELLFLOWER
I, Jennifer Russell, Management Assistant, of the City of Bellflower, do hereby declare under penalty of perjury, that the Agenda for the Special Meeting of the Bellflower City Council to be held on Friday, November 14, 2025, at 10:00 a.m., was posted Wednesday, November 12, 2025. at the following locations in the City of Bellflower:
City Hall Lobby and Doors, 16600 Civic Center Drive
City Website at www.bellflower.orc
Clifton M. Brakensiek Library
Executed this 12th day of November 2025 at Bellflower, California.
Jennifer Russell
Management Assistant
SPEAKER SIGN -IN SHEET
(Voluntary)
BELLFLOWER CITY COUNCIL SPECIAL MEETING
November 14, 2025
PLEASE PRINT LEGIBLY
NAME
ORGANIZATION
(if applicable)
P Kr.(+.‘ (
t/k L-7 ST-
Cannabis
Study Session
Prepared by: City Manager’s Office
November 14, 2025
AGENDA
•BACKGROUND
•CURRENT STATUS OF CANNABIS INDUSTRY
•CANNABIS TAX RATES
•CANNABIS PERMIT FEES
•APPLICATION REQUIREMENTS
•EXISTING CUPs
•RECOMMENDATIONS/DISCUSSION
BACKGROUND
March 2017, voters
approved Measure B(with
74% margin) a cannabis tax
–BMC §3.37.060
Reso 17-44 (August)
established application
requirements and minimum
qualifications. December
2017, the City Council
began issuing medical
cannabis business permits
(MCBPs)
August 2019, the City
Council approved
permittees with existing
MCBPs to convert to
recreational CBPs. All
MCBPs were converted.
September 2020, City
Council reduced cannabis
business tax rates for
manufacturing and
distribution from 7.5% to
2% and 1%, respectively,
and suspended annual
increases for all cannabis
tax rates (Resolution 20-63)
June 2021, City Council
reviewed the tax rates for
dispensaries and
suspended the tax
increase for dispensaries.
Set rate at 8.5%
(Resolution 21-35)
Reso. 23-18 –Updated
policies and procedures
for obtaining, modifying,
and maintaining CBPs
2025-City Council
adopts Strategic Plan
&
Deli by Caliva
receivership
CURRENT STATUS OF CANNABIS INDUSTRY
•Growing competition from the unregulated market
•Broad consolidation (strategic alliances; merger & acquisitions) in the industry •Established alcohol & tobacco companies are entering the industry •(Federal) Bank regulations continue to hamper growth; limited access to financial institutions •Federal (DEA)/ State(DCC)
•AB 564 –repealed cannabis excise tax increase through 2028. •Cities reevaluating cannabis taxes & fees
CANNABIS TAX RATES
Bellflower (FY 25-26):
Cultivation
(Non-nursery): $26.79/sqft (Nursery): $5.36/sqft
Dispensary: 8.5%
Distribution: 1%
Manufacturing: 2%
Cannabis Testing: 10%
Cultivation Tax Rate Comparison
$0
$5
$10
$15
$20
$25
$30
Long Beach Culver City Pasadena Stanton Pomona Average Bellflower Cultivation Tax Rates –per sqft.
BELLFLOWER CULTIVATION RATES (2017-2025)
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
FY 17-18 FY 18-19 FY19-20 FY 20-21 FY 21-22 FY 22-23 FY 23-24 FY 24-25 FY 25-26
Cultivation Tax Rate Comparison
0%
1%
2%
3%
4%
5%
6%
7%
Los Angeles Maywood Santa Ana El Monte Lancaster Hawthorne Average Cultivation Tax Rate % of Gross Sales
Retail Tax Rate Comparison
0%
2%
4%
6%
8%
10%
12%
Long Beach Los Angeles Maywood Santa Ana Costa Mesa Culver City Pasadena El Monte Stanton Lancaster Artesia Pomona Covina Hawthorne Average Bellflower
Distribution Tax Rate Comparison
0%
1%
2%
3%
4%
5%
6%
7%
8%
Culver City, Desert Hot Springs, Cathedral City – 0% distribution tax rates.
Bellflower
Artesia
El Monte
Costa Mesa
Stanton
Santa Ana
Los Angeles
Lancaster
Average
Pasadena
Pomona
Culver City
Hawthorne
Covina
Long Beach
Maywood
$0.00
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
$35,000.00
$40,000.00
New CBP Application Fee
Bellflower Costa Mesa Maywood Santa Ana El Monte Artesia Pasadena Average Culver City Hawthorne Los Angeles Pomona Covina Long Beach Stanton Lancaster $0
$5,000
$10,000
$15,000
$20,000
$25,000
$30,000
$35,000
$40,000
Annual CBP Fee
*Bellflower’s numbers exclude the $6,357 renewal fee and $5,000 drug rehabilitation program fee
APPLICATION REQUIREMENTS
•CUP (Pre-requisite to CBP)
•CBP Application (Reso. 23-18 & BMC)
•Cannabis License with Department of Cannabis Control
•Ongoing Annual Renewal(s) – Local & State
CUP MAP
Existing CUP – No CBP
(Clark & Somerset = 1 CUP)
Existing CUP – Current CBP
Existing CUP - Former Deli by Caliva
(9535 Artesia Blvd)
9/12 CUPs Issued (BMC § 17.94.040)
8/22 CBPs Issued (Reso. 23-18)
3/4 Dispensary CBPs Issued
RECOMMENDATIONS
1.Review all cannabis tax rates & CBP fees – especially distribution and cultivation
2.Consider reviewing the maximum cannabis-related CUPs/CBPs & dispensaries in the City
3.After consideration and review, update and consolidate cannabis-resolutions (taxes, fees, requirements & standards) and (if necessary) adjustments to the BMC & streamline application process.
THANK YOU.
4-A
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Wangsu Lee, Assistant to the City Manager
SUBJECT: Consideration and possible action to conduct a study session regarding cannabis-related businesses.
DATE: November 14, 2025
EXECUTIVE SUMMARY
Following the passage of State Proposition 64 (2016), the City of Bellflower (“City”) established its cannabis policies and procedures in 2017 to authorize a limited number of cannabis businesses to operate under City regulations. While the City has implemented a few minor adjustments to the policies and procedures since 2017, there has been no comprehensive evaluation of the cannabis policies and procedures to ensure the ongoing alignment with current industry trends in response to the statewide economic, regulatory and market challenges. This study session is intended to serve as the initial phase of a comprehensive evaluation in order to provide the City Council with an overview of the current cannabis industry and discuss the City’s existing policies and procedures including local tax rates, fees, and permitting requirements.
RECOMMENDATION TO CITY COUNCIL
1) Receive the cannabis study session presentation and after consideration, provide direction to the City Manager regarding cannabis businesses in the City of Bellflower; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None at the time of this study session.
DISCUSSION
The cannabis industry continues to evolve. In California, licensed cannabis business operators are facing mounting competition from the illicit cannabis businesses that undercut prices and erode market share. As a result, many legal operators are reporting reduced profit margins due to ongoing price suppression by the illicit market and high costs associated with regulatory compliance (i.e., taxes and fees). In response to these challenges, and in response to general market conditions, the cannabis industry is experiencing increased consolidation through mergers and acquisitions, as larger firms seek to achieve economies of scale and stabilize operations.
BELL F O «‘1 X
t r o taft'ep s
Staff Report – Cannabis Study Session
November 14, 2025
DISCUSSION – Continued
At the same time, major corporations from the traditional sectors including alcohol and tobacco companies (e.g., Constellation Brands and Phillip Morris International, as examples) are entering the cannabis market in anticipation of federal legalization – intensifying the competition within the cannabis industry.
Federal banking restrictions continue to constrain the industry’s growth, as cannabis remains classified as a schedule I controlled substance (e.g., heroin, LSD), preventing many cannabis businesses from accessing traditional banking services or securing loans. Additionally, both federal and state agencies, including the U.S. Drug Enforcement Administration (“DEA”) and California’s Department of Cannabis Control (“DCC”), are preparing for regulatory changes that could significantly impact local cannabis operations.
Most impactful to Bellflower’s cannabis programs and policies are adjustments made by other local and State agencies since Bellflower’s programs were initiated. Other jurisdictions in California are actively adjusting to the changes in the cannabis industry by closely reviewing their tax rates and fees and initiating internal policy discussions and have already implemented reductions to cannabis taxes and fees to help sustain local cannabis businesses and preserve their own cannabis tax revenues. Within this broader context, the City’s existing cannabis tax rates, permit fees, and related policies and procedures should be regularly reviewed to ensure a competitive market for local cannabis operators and to provide clear, well-defined application processes for both staff and applicants.
Bellflower has not conducted a comprehensive overview of its cannabis policies and procedures since 2017, and this study session is intended to serve as the initial phase of a potentially broader evaluation of the cannabis businesses in the City while also providing general input to City staff as we craft policies for the future consideration. The City Manager’s office has compiled data from other jurisdictions regarding tax rates, fees, and other cannabis policies and procedures, including those of the State, and will present these findings as a part of this study session as a basis for the City Council’s discussion. Based on the review of industry trends and local conditions, as well as the City’s existing codes and procedures, there will be several recommendations for the City Council’s discussion. Any formal consideration of recommended actions will be brought back to the Council for future consideration.