AGENDA REPORT
Meeting Date: December 11, 2023
Item Number:
To: Honorable Mayor & City Council
From: Tatiana Szerwinski, Assistant Finance Director
Emily Armstrong, Revenue Services Manager
Arlene Veluz, Senior Management Analyst
Max Subin, Police Captain
Attachments: 1. Resolution
RECOMMENDATION
Staff recommends that the City Council adopt the resolution amending the City’s Schedule of Taxes, Fees & Charges for Fiscal Year 2023-2024 as adopted on May 16, 2023.
Amendments include the addition of new regulatory permit fees in the Finance Department and vehicle inspection fees in the Police Department for non-storefront retail, delivery-only medical cannabis businesses.
INTRODUCTION
Beginning January 1, 2024, Senate Bill 1186 prohibits a city from adopting or enforcing any regulation that directly or indirectly prohibits the establishment of a business to provide the retail delivery of medicinal cannabis to patients or caregivers in a local jurisdiction.
On October 17, 2023, the City Council adopted article 23 to chapter 2 of title 4 of the Beverly Hills Municipal Code establishing regulatory and operational restrictions for cannabis non-storefront, delivery-only retailers in response to SB 1186. Consistent with the current code, no other commercial cannabis businesses will be allowed in Beverly Hills.
Subject: RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY HILLS
AMENDING THE COMPREHENSIVE SCHEDULE OF TAXES, FEES,
AND CHARGES TO ADD CHARGES FOR NON-STOREFRONT
RETAIL DELIVERY-ONLY MEDICAL CANNABIS RETAIL
REGULATORY PERMITS FOR THE FINANCE DEPARTMENT
AND THE POLICE DEPARTMENT FOR FISCAL YEAR 2023-2024
Meeting Date: December 11, 2023
This resolution will allow the City to recover the costs associated with the issuance of annual permits, and administration of the new non-storefront, delivery-only medical cannabis retail regulatory permit. The regulatory permit application process and the associated payment, currently administered by the Finance Department, are proposed to occur in a similar manner to existing permits.
DISCUSSION
Amendments to the Schedule of Taxes, Fees, and Charges (“Schedule”) include the following:
Finance Department
The Finance Department proposes to add two new fees to the Schedule to cover the entire cost of processing a permit application and subsequent annual renewals. The NonStorefront Retail, Delivery-Only Medical Cannabis Permit – New fee in the amount of $964.00 per application covers the cost of application intake, review, communications between the applicant and the City, security plan review, and approval and issuance of the new permit. Approximately 54% of the revenue from this fee will be provided to the Police Department to recover their costs of the security plan review and approval and 46% of the revenue will be provided to the Finance Department to cover their remaining administrative costs.
The Non-Storefront Retail, Delivery-Only Medical Cannabis Permit – Renewal fee in the amount of $106.00 per permit will cover the cost of renewal permit application intake, review, and communications between the City and the applicant and the issuance of a renewed permit.
Police Department
The Police Department proposes to add a Medical Cannabis Delivery Vehicle Inspection fee of $122.00 and a Medical Cannabis Delivery Vehicle Re-Inspection fee of $61.00 to cover the cost of staff time involved in inspecting and re-inspecting cannabis delivery vehicles. The purpose of these inspections is to ensure that the vehicles comply with the necessary delivery vehicle requirements.
In addition to the proposed new fees as outlined above, applicants are also required to pay fees related to the background check and ID card requirements.
FISCAL IMPACT
The recommended fees are proposed to offset City staff time costs involved in processing regulatory permits and performing the vehicle inspections. The revenue impact due to the recommended change would be difficult to estimate as this is a new business type for the City and the City cannot reasonably estimate the number of permit applications that will be filed on an annual basis.
Mark Stainbrook
Chief of Police
Jeff S. Muir
Director of Finance
Approved By Approved By
-1-
B0785-0001\2895128v1.doc
RESOLUTION NO. 23-R- ______
RESOLUTION OF THE COUNCIL OF THE CITY OF BEVERLY
HILLS AMENDING THE COMPREHENSIVE SCHEDULE OF
TAXES, FEES, AND CHARGES TO ADD CHARGES FOR NONSTOREFRONT RETAIL, DELIVERY-ONLY MEDICAL
CANNABIS RETAIL REGULATORY PERMITS FOR THE
FINANCE DEPARTMENT AND THE POLICE DEPARTMENT
FOR THE FISCAL YEAR 2023-2024
THE COUNCIL OF THE CITY OF BEVERLY HILLS DOES RESOLVE AS FOLLOWS:
Section 1. The City Council hereby establishes, effective January 1, 2024, fees, and City service charges for the issuance and renewal of non-storefront retail, delivery-only medical cannabis regulatory permits. The changes reflect the adoption of new regulatory permit fees in the Finance Department and vehicle inspection fees in the Police Department.
Section 2. The City Council is only taking action on those fees as described in this resolution and as set forth in Exhibit A. Such fees as set forth in Exhibit A shall be included and incorporated into the City’s Comprehensive Schedule Of Taxes, Fees & Charges. All fees whether or not modified herein, shall continue and remain in effect unless and until modified by resolution, motion or other action of this council.
Section 3. The City Clerk shall certify the adoption of this resolution and shall cause this resolution and her certification to be entered in the Book of Resolutions of the City Council of this City.
Adopted:
JULIAN A. GOLD, M.D.
Mayor of the City of
Beverly Hills, California
ATTEST:
(SEAL)
HUMA AHMED
City Clerk
DocuSign Envelope ID: 61DE42A8-94B2-4C01-93C6-A34C68C8F750 -2-
B0785-0001\2895128v1.doc
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
LAURENCE S. WIENER NANCY HUNT-COFFEY
City Attorney City Manager
JEFF S. MUIR
Director of Finance
______________________________
MARK STAINBROOK
Chief of Police
DocuSign Envelope ID: 61DE42A8-94B2-4C01-93C6-A34C68C8F750 -3-
B0785-0001\2895128v1.doc
EXHIBIT A
DocuSign Envelope ID: 61DE42A8-94B2-4C01-93C6-A34C68C8F750 -
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B0785-0001\2895128v1.doc
DocuSign Envelope ID: 61DE42A8-94B2-4C01-93C6-A34C68C8F750 Certificate Of Completion
Envelope Id: 61DE42A894B24C0193C6A34C68C8F750 Status: Sent Subject: Complete with DocuSign: Resolution Adding Cannabis Fee (12.11.23 Mtg).pdf Source Envelope:
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455 N. Rexford Drive
Beverly Hills, CA 90210
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Real Property Development Manager
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