Daly City City Council
June 23, 2025

AVAILABILITY OF PUBLIC RECORDS:

All public record to an open session item on this agenda, which are not exempt from disclosure pursuant to the California Public Records Act, that are distributed to a majority of the legislative body will be available for public inspection at the City Clerk’s Office, City Hall located at 333 90 th Street, Daly City, CA during normal business hours, at the same time that the public records are distributed or made available to the legislative body.

CITY OF DALY CITY

Regular Meeting - CITY COUNCIL

AGENDA

Monday, June 23, 2025 - 7:00 PM

City Hall Council Chambers – 2nd Floor
City Hall 333 – 90th Street
Daly City, CA 94015

To watch the live telecast:
https://www.youtube.com/@DalyCityGov/streams, https://www.dalycity.org/agendas, or Comcast Ch. 27

PUBLIC PARTICIPATION
There are three ways to submit public comments: (1) submit written comments by meeting day, (2) submit written comments during the meeting, and (3) attend the meeting in person.

1. To submit written comments by meeting day, please email [email protected] and include “Public Comment” in the subject line. All written comments received by 4:00 pm on meeting day will be provided to the City Council prior to the meeting.

Please note: Any emailed comments received after 4:00 p.m. on the meeting date are not guaranteed to be received by the City Council prior to the meeting. Comments are not read aloud into the record.

2. During the meeting, you may visit www.dalycity.org/agendas to submit comments using the Public Comment form to address the City Council on a specific item, or during the public comment period, and such comments are delivered to the City Council and City Staff during the meeting, and may be read into the record at the time they are received.

3. To speak at the meeting in person, please complete a Speaker Card located at the entrance to the Council Chamber and submit it to a Staff Member as early in the meeting as possible.

Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting should call the office of the City Clerk at (650) 991-8078 as soon as possible.

CALL TO ORDER
The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah- my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.

Agenda – City Council
Monday, June 23, 2025

PLEDGE TO THE FLAG:

ROLL CALL:

APPROVAL OF MINUTES:

1. Regular Meeting of June 9, 2025

APPROVAL OF AGENDA:

2. Regular Meeting of June 23, 2025

ORAL COMMENT:

NOTE: Speakers are limited to two minutes, unless modified by the Mayor.

The Council cannot take action on any matter raised under this item.

CONSENT AGENDA
All items listed on the Consent Agenda are considered to be routine and may be approved by one roll call vote of the City Council. There shall be no separate discussion of the matters on the Consent Agenda unless requested by a member of the City Council. If discussion is required, that item will be removed from the Consent Agenda and will be considered separately at the end of the Agenda.

Resolutions:

3. Consider Partnership with Pacific Islands Together for Various Athletic Tournaments and Hosting of Polynesian Youth Cultural Competition

4. Consider Partnership with the Bayshore Parent Teacher Organization for the Bayshore Annual Block Party at the Bayshore Community Center

5. Authorize the City Manager to Execute an Agreement and Appropriate Grant Funds with the South San Francisco Unified School District

6. Authorize the City Manager to Execute an Agreement and Appropriate Grant Funds with the Brisbane School District

7. Adopt Appropriations Limitation for Fiscal Year 2026

8. Authorize the City Manager to Execute the Project Supplement for the Hillside Boulevard Complete Streets Corridor Project

9. Approval of Offer of Quitclaim Deed of Sewer Easement at 99 Southgate Avenue to Kimco Westlake L.P.

10. Adopt Resolution for Classification Amendments Previously Approved During Budget Process

Agenda – City Council
Monday, June 23, 2025

11. Resolution to Accept the Cannabis Equity Assessment Report

12. Authorize Agreement with the Jefferson Elementary School District (JESD) for Cost Sharing of Crossing Guard Services through All City Management Services (ACMS) for School Year 2025/26

13. Accept and Appropriate a $20,500 Check from Arevon Energy for Supporting Programming and Events to Benefit the Daly City Community through Recreation Services

14. Approve Addition of Board of State and Community Corrections (BSCC) Organized Retail Theft Grant Funded Community Services Officer Full-Time Equivalent Position

15. Annual Report – Military Equipment Use for the Police Department

16. Authorize the Execution of an Axon Renewal Agreement, Approve and Appropriate Funds for the Expansion of the Unmanned Aerial Systems Program for the Police Department

Check Registers:

17. Check Registers for the Month of May 2025

END OF CONSENT AGENDA

PUBLIC HEARINGS:

18. Introduction of Ordinance of the City Council of the City of Daly City Repealing and Replacing Chapter 5. 104 to the Daly City Municiple Code Re: Cannabis Regulations

STAFF: Maybelle Manio

RECOMMENDATION: Open/Close Hearing
Motion for City Attorney to Read by Title Only
Councilmember Introduce Ordinance

19. Zone Change ZC 04-24-16507 - Rezoning Parcels to -CC Commercial Cannabis Combining District

STAFF: Michael Van Lonkhuysen

RECOMMENDATION: Open/Close Hearing
Motion for City Attorney to Read by Title Only
Councilmember Introduce Ordinance

Agenda – City Council
Monday, June 23, 2025

COMMUNICATIONS:

20. Coastal Development Permit CDP-10-24-16669 - Replace Existing Sunroom with Bedroom at Rear of Home at 60 Roslyn Court

STAFF: Michael Van Lonkhuysen

RECOMMENDATION: Adopt Resolution by Roll Call Vote

21. Sign Program SP-03-25-016768 – Sign Program for 2945 Junipero Serra Boulevard (Planet Fitness)

STAFF: Sam Fielding

RECOMMENDATION: Adopt Resolution by Roll Call Vote

ORDINANCES:

22. Second Reading, Ordinance No. 1482, Adding Chapter 15.32.280 of Title 5 of the Daly City Municipal Code, Re: Fire Hazard Severity Zones

STAFF: Rose Zimmerman

RECOMMENDATION: Adopt Ordinance by Roll Call Vote

APPOINTMENTS: Board/Commission Membership Committee Appointments

REPORTS:

23. Council Committee

24. City Council

25. Staff

ADJOURNMENT:

CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
JUNE 9, 2025
--------------------------------
Note on Public Comments:

To provide public comments, members of the public have the option to- 1) attend in person, 2) email the City Clerk, or 3) submit comments through the public comment portal on the City’s website. Persons with disabilities who require auxiliary aids or services in attending or participating in this meeting are instructed to call the office of the City Clerk at 991-8078 prior to the meeting.

Visit https://www.youtube.com/@DalyCityGov/streams to view the City Council meeting

CALL TO ORDER:

Mayor Daus-Magbual called the regular meeting to order at 7:16 P.M. and read the City’s Land Acknowledgement:

The City of Daly City acknowledges that we are on the ancestral lands of the Ramaytush (rah -my-toosh) Ohlone (O-lon-ee) peoples. We recognize their enduring connection to this region and honor their history, culture, and contributions. As the Indigenous protectors of this land, we affirm their sovereign rights as the original inhabitants of this land and pay respects to the Ancestors, Elders, and Relatives of the Ramaytush Ohlone peoples.

ROLL CALL: Councilmembers Present
Roderick Daus-Magbual, Mayor
Glenn R. Sylvester, Vice Mayor
Pamela DiGiovanni
Juslyn C. Manalo
Teresa G. Proaño

Staff Present
Thomas J. Piccolotti, City Manager
Rose L. Zimmerman, City Attorney
K. Annette Hipona, City Clerk

PRESENTATIONS:

Proclamation: Pride Month
(Tony Bayudan, Vice Chair, Personnel Board)

APPROVAL OF MINUTES:

Special Meeting of May 27, 2025

It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried to approve the minutes of May 27, 2025.

APPROVAL OF AGENDA:

It was moved by Councilmember Manalo, seconded by Councilmember Proaño and carried to approve the agenda.

CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
JUNE 9, 2025
2 ORAL COMMENT:

Nels DeLander, Carpenters Local 217, requested the Council’s support for a Public Works Prequalification Ordinance to ensure the City’s public construction projects are done by responsible and qualified contractors. The ordinance sets rules on who can bid on larger projects, makes sure contractors use state-approved apprenticeship programs, encourages hiring locally to keep the job and money in the community, requires contractors to provide healthcare for workers, and prevents mistreatment of workers.

Fernando Montanes expressed concern with the escalations between law enforcement agents and communities in Los Angeles and San Francisco. Fernando referred to the City’s history with ICE in 2019 and spoke about the fear and anxiety that many immigrant communities are feeling. Fernando urged the Council to reaffirm the City’s status as a Sanctuary City to ensure that it upholds the California Values Act, to come up with additional ways to support the City’s immigrant communities, and to promote public safety to all regardless of their status.

CONSENT AGENDA:

It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried to approve the consent agenda.

Resolutions:

Adopt MTC Transit Oriented Communities (TOC) Grant Resolution

Resolution 25- 81, Committing To Take Steps Toward Achieving Compliance With The Metropolitan Transportation Commission’s ( MTC's) Transit-Oriented Communities ( TOC) Policy As A Condition For MT C To Allocate Regional Discretionary Funding To The Housing Policy Development Project (Multi-Jurisdictional Grand Nexus And Feasibility Study)

Approve Addendum to Final Environmental Impact Report for the Vista Grande Drainage Basin Improvement Project; Approval of Modified Project

Resolution 25-82, Approving Addendum To Final Environmental Impact Report For The Vista Grande Drainage Basin Improvement Project; Approval Of Modified Project

Set Time and Place for a Public Hearing to Consider a Zone Change ZC 04-24-16507 - Amendments to the Zoning Map Rezoning Parcels to be included in the existing - CC Commercial Cannabis Combining District (Set Time: 6/23/25)

Resolution 25- 83, Setting Time And Place Of Public Hearing Proposed Ordinance For Zone Change Z C 04-24-16507 Amendments To The Zoning Map Rezoning Parcels To Be Included In The Existing -CC Commercial Cannabis Combining District (Hearing Date June 23, 2025, Time: 7:00 P.M.)

Approve Application of Section 108 Loan Program for Financing Early Learning Center

Resolution 25- 84, Approving Application Of Section 108 Loan Program For Financing Early Learning Center

CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
JUNE 9, 2025
3 Set Time and Place of Public Hearing – Proposed Ordinance Amending Daly City Municipal Code Chapter 5.104 Re: Commercial Cannabis Regulations (Set Time: 6/23/25)

Resolution 25-85, Setting Time And Place Of Public Hearing For Proposed Ordinance Amending Daly City Municipal Code Chapter 5.104 Re: Commercial Cannabis Regulations

Adopt Comprehensive Biennial Operating and Capital Budgets for Fiscal Year 2026 and Fiscal Year 2027

Resolution 25-86, Adopting Comprehensive Operating Budget And Capital Budgets For Fiscal Year 2026 And Fiscal Year 2027

Re-Appointment of Daly City Bicycle-Pedestrian Advisory Committee Members

Resolution 25-87, Appointing Daly City Bicycle-Pedestrian Advisory Committee Members

Authorize Application to the Housing Incentive Pool Grant Program for the John Daly Boulevard Pedestrian and Bicycle Facility Improvements Project

Resolution 25-88, Authorizing The Filing Of An Application For Funding Assigned To MTC And Committing Any Necessary Matching Funds And Stating Assurance To Complete The Project

END OF CONSENT OF AGENDA

PUBLIC HEARINGS:

Public Hearing - Notice of Lien and Special Assessment to Rental Property

Director of Finance and Administrative Services Tim Nevin provided the staff report for identified properties with unpaid business license rental property taxes and penalties. According to Nevin, proper notice was sent to the property owners to provide them the opportunity to clear the possible lien. All unpaid taxes will be assessed on the upcoming fiscal year tax bill if they are not paid by July 9, 2025.

It was moved by Councilmember Sylvester, seconded by Councilmember DiGiovanni and carried to open the hearing. There were no public comments.

It was moved by Councilmember Sylvester , seconded by Councilmember Manalo and carried to close the hearing.

It was moved by Councilmember Sylvester, seconded by Councilmember DiGiovanni and carried by unanimous roll call vote to adopt the resolution.

Resolution 25-89, Approving Notice Of Lien And Special Assessment To Rental Property

Introduction of Ordinance Adding Chapter 15.32.280 of Title 15 of the Daly City Municipal Code Re: Fire Hazard Severity Zones

Battalion Chief Craig Wittner provided the staff report including information on a new state law requiring CAL FIRE to identify areas in the state as moderate, high and very high fire hazard severity zones.

CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
JUNE 9, 2025
4 All areas within Daly City have been designated “moderate.” Wittner and Fire Chief Ron Myers addressed questions on the following: the fire hazards found in Pacific Palisades compared to those in Daly City ; property owners’ responsibilities of potential fire hazards in areas next to their homes ; actions taken for noncompliance; the types of fires which occur in the City; the quality of the City’s water system in terms of water volume; and the availability of pamphlets on brush fires in different languages.

It was moved by Councilmember Manalo, seconded by Councilmember DiGiovanni and carried to open the hearing. There were no public comments.

It was moved by Councilmember Manalo, seconded by Councilmember Proaño and carried to close the hearing.

It was moved by Councilmember Manalo, seconded by Councilmember Sylvester and carried to have the City Attorney read by title only.

Ordinance 1482, Adding Chapter 15.32.280 of Title 15 of the Daly City Municipal Code Re: Fire Hazard Severity Zones

Mayor Daus-Magbual introduced the ordinance.

APPOINTMENTS:

It was moved by Mayor Daus -Magbual, seconded by Councilmember Manalo and carried to appoint Rosario Macahilas to the Arts & Culture Commission.

REPORTS:

Council Committee

Ethics Committee (Daus-Magbual/Sylvester)
Bayshore Revitalization (Sylvester/Manalo)
Seafood City Mural (Daus-Magbual/Manalo)

Council

Councilmember Manalo reported attendance at the following: the Jefferson Adult School Graduation, where Manalo was a guest speaker, to recognize community members for achieving their goals, along with Trustee Tejada , Principal Beshirs, Superintendent Presta, and thanking Mayor Daus-Magbual and Vice Mayor Sylvester; the Housing Leadership Council of San Mateo County Policy Breakfast to discuss affordable housing issues and strategies in the County, along with Congressman Mullin, Supervisor Gauthier, Councilmembers Venkat and Schmidt , President of Supervisors Canepa, and County Manager Callagy; the San Bruno Mountain Day Improvement project to create a walking path and enhancements, along with her son Ethan, City Manager Piccolotti and Councilmember Proaño; the Bayshore Senior Prom Casino Night featuring musical group Native Elements , acknowledging the seniors, Director Brown and staff; San Francisco’s Pride flag-raising with Mayor Lurie, Senator Wiener, Assemblymember Haney, and President of Supervisors Mandelman (SF) ; the San Mateo Leadership Council Graduation of South San Francisco, congratulating Housing & Community Development Manager Suliguin for being a part of the

CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
JUNE 9, 2025
5 Class of 2025 and acknowledging Economic and Community Development Specialist Manio for looking at opportunities for a Business Improvement District with the Leadership Council ; the Children’s Day celebration along with her children, recognizing the Chinese Youth Committee on their leadership ; the Harajuku Lumpia Fest in Stonestown, where Manalo was honored for her community work alongside Rudy Corpuz Jr. of United Playaz and Westmoor teacher Joel Vargas; Pacific Islands Day at San Mateo County Fairgrounds along with her daughter; an event featuring the St. Augustine Children’s Choir, acknowledging Director Christine; the US Ilocano National Association’s annual event to crown their new queens; and the Philippine Baseball Association (PABA) event to promote baseball and build support for Filipino players in the Olympics and national teams, along with Ginger of NBC Bay Area. Manalo noted the potential use of the Marchbank Park field for a collaboration with PABA. Manalo acknowledged the Bayshore Sanitation’s 100th birthday celebration. Manalo requested supporting the Carpenter Union’s request by agendizing an item to help promote the safety and health of local workers. Manalo noted the free legal clinics provided by API Legal Outreach as an important resource for the Daly City community which has a large proportion of immigrant residents. Manalo reminded residents that Daly City is a Welcoming City and California’s status as a Sanctuary State, assured residents that public officers will not be assisting those working for ICE, and stated that Daly City will stand united with its immigrant community.

Councilmember Proaño reported attendance at the following: the San Bruno Mountain Improvements groundbreaking, noting the recreational space’s proximity to Daly City ; the ribbon-cutting for Los Agaves Restaurant on Junipero Serra Boulevard, alongside the full Council; the San Mateo County Fair Networking Reception; and the Children’s Day celebration at Gellert Park, along with the full Council.

Councilmember DiGiovanni reported attendance at the Children’s Day event, recognizing Mr.

Wong and the Chinese youth from Westmoor and Jefferson high schools for their leadership and sharing their culture. DiGiovanni acknowledged the opportunity for free legal aid clinics and inquired whether community members have the option to call in. DiGiovanni referred to the Jewish Community Relations Council introducing a bill to protect all places of worship and requested having a presentation by Jonathan on the history of antisemitism, given the political climate. DiGiovanni acknowledged members of the community who are survivors of the Japanese internment camps and the Holocaust, requested a space to hear their stories, and made a statement of support for those participating in peaceful protests. DiGiovanni stated her father perished in Auschwitz, referring to it as a lesson to be learned.

Vice Mayor Sylvester reported attendance at the following: Polynesian Day by Pacific Islands Together (PIT) at the San Mateo County Fairgrounds, participating in the Prayer Ceremony along with City Manager Piccolotti and recognizing Rowena Meafua for her representation on the Board; Children’s Day, acknowledging the cultural event and thanking all the sponsors, alongside the full Council; and the production by the Westlake School for the Performing Arts ( WSPA) which featured the Vice Mayor’s granddaughter and Hawaiian dancing, expressing pride in having the dance school located within Daly City.

Sylvester reminded everyone that Daly City is a Welcoming City, stating that law enforcement will not assist the efforts of the federal government, and acknowledged the right to protest peacefully . Sylvester reminded the public that law enforcement will take action against acts of vandalism and other violations of the law. Sylvester was open to members of the community coming in to share their history and cultures.

Mayor Daus-Magbual recognized the parents of the WSPA students for everything they do for their children. Dr. Daus-Magbual reported attendance at the following: the 3 rd annual Daly City Children’s Day
by the Chinese Youth Commission, acknowledging Victoria Magbilang for making the connection, and recognizing the commission and Mr. Wong for the youth-coordinated effort; the Pacific Islands Day at the County fair with his family, featuring artist Sammy Johnson, and acknowledged the folks who worked on the event; and the graduation for the Asian American Pacific Islander Studies students at UC Riverside,

CITY OF DALY CITY
MINUTES – REGULAR MEETING – CITY COUNCIL
JUNE 9, 2025
6 where Mayor Daus-Magbual provided the keynote speech, thanking the people from the Asian Pacific Students Programs, and recognizing Dr. Grace Yoo, Dean of Ethnic Studies at San Francisco State. The Mayor reported on upcoming events: the Philippine flag- raising at City Hall on June 11 th, which will be catered by the Pilipino Bayanihan Resource Center, thanking Tita Perla Ibarrientos; and the Juneteenth flag- raising and ceremony at San Mateo County ’s County Center on June 11 th, sponsored by Supervisor Gauthier’s Office. The Mayor noted Daly City will observe the Juneteenth Holiday on June 19th and close City offices. Dr. Daus -Magbual recommended checking the City’s various social media and website for more information on City resources including free legal clinics on June 13th and June 27th, which are being provided by API Legal Outreach.

Staff

City Manager Piccolotti reported attendance at Pacific Islands Day at the San Mateo County Fair and the Children’s Day celebration at Gellert Park.

ADJOURNMENT:

Mayor Daus-Magbual adjourned the meeting at 8:46 PM in memory of Luisa Blue, Michael Alexander Williams, Marcia Grimanesa Proaño Flores Vaca, and Amor Salviejo Magbual.

Approved as submitted, this 23rd
City Clerk
day of June , 2025.

Roderick Daus-Magbual
Mayor

City Council Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Consider Partnership with Pacific Islands Together for Various Athletic Tournaments and Hosting of Polynesian Youth Cultural Competition Recommended Action
Consider a City partnership with Pacific Islands Together (P.I.T.) and the waiver of facility and field rental fees for the following events: a Pickleball Tournament and Toy Drive at War Memorial Community Center on Saturday, December 13, 2025; Polynesian Youth Cultural Competition at the Pacelli Event Center on Saturday, March 28, 2026; Softball and Pickleball Tournaments at Gellert Park on Saturday, April 18, 2026; a Basketball Tournament on Saturday, April 25, 2026, followed by a Volleyball Tournament on Saturday, May 2, 2026; both at War Memorial Community Center.

Background/Discussion
Pacific Islands Together (P.I.T.) is a non-profit organization established in 2012 with a mission to strengthen community unity through cultural programming, wellness initiatives, and direct community service. Over the years, P.I.T. has supported residents by creating inclusive spaces for artistic expression, prioritizing health and wellness, and providing resources to those in need.

P.I.T. will host its second annual Pickleball Tournament and Toy Drive on Saturday, December 13, 2025, at War Memorial Community Center. This event aims to blend recreation, community engagement, and philanthropy by encouraging attendees to donate toys for children in need during the holiday season. The tournament is designed to raise awareness, increase participation, and foster a sense of unity while supporting a charitable cause.

In addition to the Toy Drive event, P.I.T. plans to organize a series of athletic tournaments in Spring 2026 (April/May) that serve as lead-up activities to its Annual SHINE Family Day Festival, in partnership with the City of Daly City.

P.I.T plans to host the Polynesian Youth Cultural Competition, bringing together high school/college Polynesian Clubs from across the Bay Area to participate in a day of cultural performances, student- led speeches, and creative expressions rooted in Polynesian heritage at the Pacelli Event Center. This event is designed to celebrate Pacific Islander identity, empower youth leadership, and foster cultural learning in a safe, inclusive, and family-friendly setting. The event will also feature cultural booths, resource tables, and an awards ceremony recognizing student excellence and will serve approximately 150 – 200 participants and guests, including students, school advisors, families and community leaders.

As a partner for the above listed Toy Drive, athletic tournaments and Polynesian Youth Cultural Competition, the City would provide in-kind support, including the use of facilities, promotional assistance, staff support on day of events, and equipment such as tables, chairs, and access to pickleball equipment. For event dates and locations, please refer to table on page two of this staff report. The City Council is asked to consider approving this partnership and waiving associated rental fees for these scheduled events.

Approve Partnership with Pacific Islands Together for Toy Drive, Polynesian Youth Cultural Competition and Upcoming Tournament Events
Meeting Date: June 23, 2025

Event/ Date Location Fees/ Hours
Non-Refundable
Fee
(Insurance)
Refundable
Fees
(Deposit)
Total
Toy Give Away/
Pickleball
Tournament
December 13, 2025
War Memorial
Community Center
(Lower Gym)
$990.00
8:00 am – 6:00 pm
($110/hr x 9 hrs)
$229 $400 $1,619
Polynesian Youth
Cultural
Competition
March 28, 2026
Pacelli Event Center
$1,100.00
8:00 am – 6:00 pm
($110/hr x 10 hrs)
$229 $800 $2,129
Softball /
Pickleball
Tournaments
April 18, 2026
Gellert Park (Softball
Diamonds & Tennis
Courts)
$680
8:00 am – 6:00 pm
($35/hr x 9 hrs
x 2 fields +
$25 lining per field)
$229 $400 $1,309
Basketball
Tournament (*)
April 25, 2026
War Memorial
Community Center
(Upper & Lower
Gyms)
$1,980
8:00 am – 6:00 pm
($110/hr x 9 hrs
x 2 gyms)
$229 $400 $2,609
Volleyball
Tournament (*)
May 2, 2026
War Memorial
Community Center
(Upper & Lower
Gyms)
$1,980
8:00 am – 6:00 pm
($110/hr x 9 hrs
x 2 gyms)
(*) (*) $1,980
TOTALS $6,730 $916 $2,000 (*) $9,646
It will be the responsibility of P.I.T. to make payment of the non-refundable Insurance Fees (totaling $916) and refundable Deposit Fees (totaling $2,000) two weeks prior to the first event occurring on December 13, 2025. The total rental fees requested to be waived amount to $6,730. (*) As the events scheduled for April 25 and May 2, 2026, will be issued under a single permit, only one non-refundable insurance fee and one refundable deposit fee will be applied.

Summary/Conclusion
Staff recommends that the City Council provide direction to staff on event partnership and fee waivers.

Staff and the community partner are available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,
Denise Brown Edgardo Bolaños
Director of Recreation Services Administrative Assistant III

City Council Agenda Report Item # _____
Considerati
Meeting Date: June 23, 2025

Subject: Consider Partnership with the Bayshore Parent Teacher Organization for the Bayshore Annual Block Party at the Bayshore Community Center

Recommended Action
Consider City partnership with the Bayshore Parent Teacher Organization (PTO) for the Bayshore Annual Block Party, a free community event, at the Bayshore Community Center and Library on Saturday, September 6, 2025, and consider fee waivers.

Background
The Bayshore PTO is inviting the City of Daly City to partner for its Bayshore Annual Block Party on Saturday, September 6, 2025. As a partner, the City would host the event at the Bayshore Community Center and Library and promote the event to the Daly City community.

The partnership would celebrate and highlight the diversity in our Bayshore neighborhood. The goal of the event is to draw people together to enjoy delicious food, exciting entertainment and provide important information about services and resources that local businesses within the neighborhood have to offer. We will feature plenty of mobile food vendors, retail merchants, informational booths, and possibly including entertainment from local groups, all within the Bayshore Community Center and the Bayshore Heights Park.

The Bayshore PTO will be hosting their annual Block Party and they would love to do it at the Bayshore Community Center to bring more exposure to the center and remind the community that it is accessible and available for all age groups. In past years the staff of the Bayshore Community Center have lent field games, tables, chairs, as well as pumpkins for the youth to carve. The City has also been very helpful in providing services from Daly City Police Department and the Daly City Public Library. The Library will again be open for special hours, regular service, and special event activities for the event.

Discussion
The City Council may consider becoming an official event partner and waiving fees and other requirements for the rental of the Bayshore Community Center, from 9am to 6pm. The chart below depicts all costs associated with the rental:

Fees: 9am – 5pm Non-Refundable Fees Refundable Fees
Total ($225 per/hr x 8 hours) Insurance Custodial Fee
(Mandatory)+
Deposit
Bayshore
Community Center
$1,800.00 $147 $400 $800 $3,147.00
TOTALS $3,147.00
+This is a mandatory fee associated with all gym rentals.

As the Bayshore PTO has already submitted payment for the $800 refundable deposit, they will still owe monies for the $400 mandatory/non- refundable custodial fee and the $147 non-refundable

Consider Partnership with the Bayshore Parent Teacher Organization for the Bayshore Annual Block Party at the Bayshore Community Center
Meeting Date: June 23, 2025

insurance fee which totals $547. The total rental fees requested to be waived are for the hourly rate of $225 x the 9 hours of use which amounts to $2,025.00.

As the Bayshore PTO might include food vendors within this event (and they would be considered the Event Coordinator), these businesses are subject to the following additional requirements:

City of Daly City Business License: All food trucks selling food in Daly City, if on a temporary basis, will need to apply for a Business License. Businesses with gross receipts $100,000 or less are subject to a $114 business license tax. Businesses with gross receipts over $100,000 are subj ect to a 0.11% business license tax and $4.00 State fee.

San Mateo County Environmental Health Requirements

 Mobile Food Trucks:

1. If the mobile food truck has a valid San Mateo County permit, the vendor is to provide the business name and health permit number to the Event Coordinator. The Event Coordinator will not be charged a processing fee when submitting the Temporary Event – Coordinator Application (see attached).

2. If the mobile food truck does not have a valid San Mateo County permit, the vendor is to provide a valid health permit number/sticker from another issuing agency (such as another County) and must apply for a Temporary Event Vendor Permit (see attached).

Both valid health permit number/sticker and Temporary Event Vendor Permit form must be submitted to the Event Coordinator. The Event Coordinator will be charged a processing fee of $149 per truck.

 Food Booths:

1. General requirements: Many food booth vendors are aware of the County of San Mateo guidelines. Newer vendors may refer to the County’s Temporary Events Guidelines (see attached) as well as the Temporary Event Vendor Permit, which require:

- Proper signage
- Construction of booth guidelines – risk category 1 requires over-head protection; risk category 2 requires full enclosure with specific booth sides and floors. - Must demonstrate knowledge – Food Manager Certificate, Handler Card, or Passing Score of the Food Safety Quiz.
- Food from an approved source – Any food prepared prior to the event must be done in an approved commercial kitchen or commissary which is noted on the vendor application.
- Food protection to prevent contamination.
- Food storage
- Alternative hand washing station.

Consider Partnership with the Bayshore Parent Teacher Organization for the Bayshore Annual Block Party at the Bayshore Community Center
Meeting Date: June 23, 2025

2. Food Booths Risk Category 1 (all food is prepackaged, no on- site food preparation. Sampling is allowed if no complex food preparation is need): The Event Coordinator will be charged a processing fee of $100 per booth and must apply for a Temporary Event Vendor Permit, which must be submitted to the Event Coordinator.

3. Food Booths Risk Category 2 ( Open food, on- site preparation. Food will be handled and/or prepared on site): The Event Coordinator will be charged a processing fee of $149 per booth and must apply for a Temporary Event Vendor Permit , which must be submitted to the Event Coordinator.

Summary/Conclusion
Staff recommends that the City Council provide direction to staff on event partnership and fee waivers.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Denise Brown Edgardo Bolaños
Director of Recreation Services Administrative Assistant III

City Council Meeting Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Authorize the City Manager to Execute an Agreement and Appropriate grant funds with the South San Francisco Unified School District
Recommended Action
It is recommended the City Council authorize the City Manager to execute an agreement with the South San Francisco Unified School District (SSFUSD) and appropriate grant funds of $155,400 for the Fiscal Year 2026 (School Year 2025-2026) for Expanded Learning Opportunities Program (ELOP) at Junipero Serra Elementary School.

Background
The Department of Recreation Services currently provides the Afterschool Youth Recreation Program (AYRP) at Junipero Serra Elementary School. The program is held each day afterschool until 5:30 p.m. The components of the program include homework assistance, enrichment, snack/supper (depending on the site) and recreational activities.

The ELOP funding is provided to the SSFUSD and in turn they are contracting our services to provide a comprehensive program at Junipero Serra Elementary School.

Fiscal Impact
Funding for the ELOP at Junipero Serra Elementary School in the amount of $155,400 should be appropriated into account number 01-131-141-3743.

Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully Submitted,
Denise Brown Jennifer Der
Director Recreation Services Manager

City Council Meeting Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Authorize the City Manager to Execute an Agreement and Appropriate grant funds with the Brisbane School District
Recommended Action
It is recommended the City Council authorize the City Manager to execute an agreement with the Brisbane School District (BSD) and appropriate grant funds of $123,000 for the Fiscal Year 2026 (School Year 2025-2026) for the Expanded Learning Opportunities Program (ELOP) at Panorama Elementary School.

Background
Since approximately 1994, the City, through the Department of Recreation Services, has offered an Afterschool Youth Recreation Program (AYRP) at Panorama Elementary School in the Brisbane School District. The program is held each day afterschool until 5:30 p.m. and the components of the program include homework assistance, enrichment, snack/supper (depending on the site) and recreational activities.

The ELOP funding is provided to the JESD and in turn they are contracting our services to provide a comprehensive program at the four school sites.

Fiscal Impact
Funding for the ELOP at Panorama Elementary School in the amount of $123,000 should be appropriated into account number 01-131-141-3743.

Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully Submitted,
Denise Brown Jennifer Der
Director Recreation Services Manager

City Council Meeting Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Adopt Appropriations Limitation for Fiscal Year 2026 Recommended Action
Adopt a resolution establishing Appropriations Limitation for Fiscal Year 2026.

Discussion
As required by Article XIIIB of the State Constitution, the City must adopt an appropriations limit for the following fiscal year. By resolution of May 27, 2025, Council established its intent to adopt the appropriations limitation for FY 2026.

The attached calculations establishing the proceeds of taxes and appropriations limit for FY 2026 have been online at www.dalycity.org and on file in the Finance Department since Friday, May 30, 2025, for public inspection and appropriate notice has been posted by the City Clerk.

Summary/Conclusion
Staff recommends that the Council adopt a Resolution establishing the City's Appropriations Limitation for FY 2026.

Staff is available to provide any additional information desired by the Mayor or Council Members.

Respectfully submitted,
Timothy J. Nevin
Director of Finance and Administrative Services
Attachment: FY 2026 Daly City Summary of Calculations

Change in California Per Capita Personal Income 1.0644
Change in Population* 1.0007
Change Factor (1.0644 x 1.0007) 1.0651
1978-79 Base Year Appropriation Limit 16,955,771$
Multiplied by Cumulative Change Factor (9.0391 x 1.0651) 9.6279 2024-
2025 Appropriation Limit 163,248,628$
Total Gann Appropriation Limit 163,248,628$
Estimated Proceeds of Taxes 105,666,950
Estimated Proceeds of Taxes Under Limit by 57,581,678$
* The population change for San Mateo County
w
as used because it was higher than the change for Daly City.

T
his was done to get higher appropriation limits.
(
per recommendation by auditors Maze & Associates)
Application of Gann Appropriation Limit
To Fiscal Year 2025-2026
City of Daly City
Adjusted Summary of Calculations
Gann Appropriation Limit for 2025-2026

City Council Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Authorize the City Manager to Execute the Project Supplement for the Hillside Boulevard Complete Streets Corridor Project
Recommended Action
Staff recommends that the City Council:

1. Accept and Appropriate $520,000 in Measure W funds from the San Mateo County Transportation Authority for the Hillside Boulevard Complete Streets Corridor Project; and

2. Authorize the City Manager, or his designee, to execute the Project Supplement and other documents necessary from the San Mateo County Transportation Authority.

Background
On June 10, 2024, San Mateo County Transportation Authority (SMCTA) issued a Call for Projects for Pedestrian and Bicycle Program funds. The goal of the program is to fund projects that improve bicycling and pedestrian accessibility and safety in San Mateo County. The proposed project should encourage more residents to participate in active transportation and thereby reduce auto trips and congestion. A total of approximately $19 million is available for this cycle of the Pedestrian and Bicycle Program, which covers Fiscal Years 2025 and 2026.

Applications for the Pedestrian and Bicycle Program were due to the SMCTA on August 30, 2024.

The Pedestrian and Bicycle Program is a combination of sales tax collected under the Countywide Measure A and Measure W Sales Tax Programs. A minimum of 10% local match must be provided for projects or a reduced minimum of 5% local match for projects based in an approved equity priority zone.

City staff worked in partnership with County of San Mateo’s staff and identified a pedestrian and bicycle improvement project to be eligible for the grant funding. Staff submitted a joint application, where the City is the project sponsor and the County is the implementing agency, to conduct public outreach and prepare preliminary engineering drawings for the Hillside Boulevard Complete Streets Corridor Project. The project’s goal is to improve safety and accessibility on Hillside Boulevard between East Market Street and Hoffman Street which connects travel through Daly City and Unincorporated San Mateo County to Colma and South San Francisco. Currently, this segment of Hillside Boulevard has four travel lanes with narrow sidewalks and no dedicated space for bicyclists. The proposed project would reduce the number of travel lanes to match the two-lane road configuration that exists at the north and south ends of the project area. This segment of Hillside Boulevard has been identified on both the City/County Association of Governments of San Mateo County (C/CAG) Pedestrian High Injury Network and Daly City High Injury Network. The proposed project would also re-align sharply skewed intersecting streets to reduce lengthy pedestrian crossing distances and plan for wayfinding and accessibility improvements via A and B Streets to the Colma BART Station. The lane reduction and protected bikeways is expected to

Authorize the City Manager to Execute Project Supplement for the Hillside Boulevard Complete Streets Corridor Project Meeting Date: June 23, 2025

improve bicycle safety and slow traffic along the corridor to enhance the safety and operations for all users on the corridor.

Discussion
On December 15, 2024, the SMCTA programmed and allocated $520,000 of Measure W funds for the Project. The County and the City committed to providing a cumulative 20% funding match of $130,000 and agreed to cost share the required funding match based on the proportion of Hillside Boulevard road right-of-way within the project limits of each party’s jurisdiction (approximately

36.4% in Daly City and 63.6% in the County).

On May 12, 2025, the City Council authorized the City Manager, or his designee, to execute a Memorandum of Understanding (MOU) between San Mateo County and Daly City for cost sharing. In addition to fiscal contributions, the MOU also established the County and City’s roles and responsibilities for the project. The County will serve as the lead implementing agency and will manage the day-to-day work of the consultant, procure and manage the community-based organization and organize and facilitate regular meetings. The City’s responsibilities include assisting with the community engagement efforts, reviewing preliminary engineering designs and environmental clearance documents and participating in stakeholder meetings.

In order to secure the Measure W grant funds, the City needs to execute a Project Supplement with SMCTA.

Fiscal Impact
The total cost for project planning with community outreach, preliminary engineering and environmental clearance is estimated at $650,000. In May 2025, the City Council appropriated $47,320 in Measure A funds for the City’s local match. No additional appropriations is needed at this time.

Summary/Conclusion
Staff recommends that the City Council:

1. Accept and Appropriate $520,000 in Measure W funds from the SMCTA for the Hillside Boulevard Complete Streets Corridor Project; and

2. Authorize the City Manager, or his designee, to execute the Project Supplement and other documents necessary from the SMCTA.

Staff is available to provide any additional information desired by the Mayor or City Council Members.

Authorize the City Manager to Execute Project Supplement for the Hillside Boulevard Complete Streets Corridor Project Meeting Date: June 23, 2025

Respectfully submitted,
Shirley Chan Richard Chiu, Jr.

Acting City Engineer Director of Public Works
Attachments:

1. San Mateo County Transportation Authority & City of Daly City Project Supplement No. 1

21650625.4
San Mateo County Transportation Authority & City of Daly City Project Supplement No. 1

SECTION A: Primary Agreement
The San Mateo County Transportation Authority (TA) and City of Daly City (Sponsor) entered into a Primary Grant Agreement on April 30, 2025 (Primary Agreement).

The San Mateo County Transportation Authority (TA) and County of San Mateo (Implementing Agency) entered into a Primary Grant Agreement on March 17, 2025 (Primary Agreement).

This Project Supplement is entered into on __________________ pursuant to the Primary Grant Agreement and is subject to the terms set forth therein.

SECTION B: Project Background
Measure(s):
☐ Original Measure A
☐ New Measure A
☒ Measure W
Program Category:

Measure A Measure W
☐ Transit
☐ Highways
☐ Local Streets/Transportation
☐ Grade Separations
☐ Pedestrian and Bicycle
☐ Alternative Congestion Relief Programs
☐ Countywide Highway Congestion
Improvements
☐ Local Safety, Pothole & Congestion Relief
Improvements – Local Investment Share
☐ Local Safety, Pothole & Congestion Relief
Improvements – Grade Separation
☒ Bicycle and Pedestrian Improvements
☐ Regional Transit Connections

Program Subcategory (if applicable): Small Capital Projects Project: Hillside Boulevard Complete Streets Corridor Project Scope of Work: Planning (PLAN), Project Approval and Environmental Document (PAED)

21650625.4
Scope of Work Costs: $384,000 (PLAN)
$136,000 (PAED)
$520,000 Total

TA Technical Assistance (if applicable): N/A
Date Funding Programmed: December 5, 2024
Date Funding Allocated: December 5, 2024
Applicable Resolutions (attached): SMCTA Resolution 2024-23, Daly City City Council Resolution 24-134
Additional Terms: The following Agreement Section(s) apply to this Project Supplement:
☒ Section 5 (Additional Terms Applicable to Sponsor-Performed Projects) ☐ Section 6 (Additional Terms Applicable to TA-Performed Projects) ☐ Section 7 (Additional Terms Applicable to Shuttle Operations) ☐ Section 8 (Additional Terms Applicable to All Other Project Supplements for Operations)
SECTION C: Matching Funds
Sponsor agrees to contribute the matching funds to the TA in one upfront lump sum payment of $4$40,000 (Matching Funds) following Sponsor's approval of an invoice from TA describing the expenses to which the Matching Funds will be applied, with the remaining $7,320 match through eligible staff expenses subject to the following terms and conditions:

TA agrees that the Matching Funds are to be expended solely for the Project and agrees to: (i) prioritize application of the Matching Funds to expenses under the Scope of Work with the objective of utilizing all of the Matching Funds not later than November 5, 2027,; (ii) promptly return to Sponsor any and all unspent Matching Funds upon termination of the Project Supplement, or, absent termination, that have not been expended for the Project by November 5, 2027, .

Implementing Agency agrees to contribute the $82,680 of matching funds to pay for: two County contracted community based organizations, up to a total of $50,000, with the remaining amount to be applied to be applied through eligible staff expenses, subject to the following terms and conditions:

TA agrees that the Matching Funds are to be expended solely for the Project and agrees to: (i) prioritize application of the Matching Funds to expenses under the Scope of Work with the objective of utilizing all of the Matching Funds not later than November 5, 2027; (ii) promptly return to Sponsor any and all unspent Matching Funds upon termination of the Project Supplement, or, absent termination, that have not been expended for the Project by November 5 , 2027.

21650625.4
SECTION D: Description of Scope of Work
Sponsoring Agency: City of Daly City
Contact: Shirley Chan
City Engineer
(650) 991-8231
[email protected]

Lead/Implementing Agency: County of San Mateo
Contact: Krzysztof Lisaj
Deputy Director
(650) 599-1482
[email protected]

Project Description and Scope of Work:

The Hillside Boulevard Complete Streets Corridor Project will include concept planning with community engagement, preliminary engineering and environmental clearance for a road diet on Hillside Boulevard between East Market Street and Hoffman Street, which is in both Daly City and unincorporated San Mateo County. This roadway is a transit route, and will include the County as Implementing Agency. These improvements will enhance bicycle and pedestrian safety and access, provide transportation choices, implement first mile/last mile solutions, provide safe routes to schools, and reduce vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions.

The Project will reduce the number of continuous travel lanes from 4 to 2 and add a center turn lane, in addition to widening sidewalks where space permits, curb extensions, rectangular rapid flashing beacons (RRFBs), ADA compliant curb ramps, and high visibility crosswalks. The design will also evaluate realigning skewed intersections at Lisbon, Sylvan, Villa, Chester, and Linden Streets. The Project will upgrade the bikeway from a shared route with sharrows to a combination of protected and buffered, and will also include wayfinding signage and spot access improvements along the A and B Street corridors to better connect to the Colma BART Station.

The Sponsor and Implementing Agency will provide funds to the TA for access to the TA’s on- call consulting bench. The Sponsor and Implementing Agency will work with consultants on the TA’s on-call consulting bench to complete the Project.

The Project Supplement No.1 provides funding for the completion of the PLAN and PA/ED phases of the Project.

Scope of Work Schedule:

Begin End
PLAN 11/03/2025 11/2027
PAED 8/02/2027 11/2027

21650625.4
Scope of Work Budget/ Source of Funding:

Include funding plan for the Scope of Work defined above, including use of TA Technical Assistance if applicable
List Fund Source Amount
PLAN $384,000 Daly City Cash Match $40,000
PAED $136,000 Daly City In-kind Match $7,320
CSM In-kind Match $82,680
if applicable
Total: $520,000 $130,000 $650,000
Other Sources*Measure A/W
Funding Amount TotalPhase

* The other fund sources are provided for informational purposes.

Operating Responsibility: City of Daly City/County of San Mateo

Maintenance Responsibility: City of Daly City/County of San Mateo

Project Implementation Responsibility: County of San Mateo

Project Oversight Responsibility: City of Daly City
SECTION E: Time of Performance

1. Time of Performance. The Scope of Work must be completed no later than the end of 3rd quarter, Fiscal Year 2027-2028 (the TA's fiscal year runs July 1 through June 30). All reimbursement requests need to be submitted no later than the end of 1st quarter, Fiscal Year 2028-2029.

2. Timely Use of Funds. Sponsor must expend Measures W funds expeditiously. If Sponsor fails to invoice the TA for two consecutive quarters, the TA will require a meeting with Sponsor’s executive and Project staff to review Project progress. A Project Supplement found to be non-compliant with this requirement may be terminated for default by the TA.

SECTION F: Notice
Notices. All notices required or permitted to be given under this Agreement must be in writing and delivered by email to the addresses specified below. Notices will be deemed given when the email was sent. A recipient’s failure to acknowledge receipt of the emailed notice will not affect the effectiveness of notice if (a) the sender can show that the notice was properly addressed and sent by email, and (b) the sender did not receive any email system notification that the email could not be delivered.

To TA: San Mateo County Transportation Authority
1250 San Carlos Avenue
P.O. Box 3006
San Carlos, CA 94070-1306
Attn: TA Secretary and Executive Officer
Emails: Margaret Tseng, [email protected]
Peter Skinner, [email protected]

To Sponsor: City of Daly City
333 90th Street

21650625.4
Daly City, CA 94015
Attn: Richard Chiu
Director of Public Works
Email: [email protected]
To Implementing Agency: County of San Mateo
555 County Center, 5th Floor _
Redwood City, CA 94063
Attn: Krzysztof Lisaj
Deputy Director
Email: [email protected]
In 2026, the TA plans to relocate its administrative building to 166 N. Rollins Road in Millbrae, California and when that occurs, the TA’s address will be at that location.

SECTION G: Insurance
The following types of insurance are required for this Project Supplement. See Section 6 of the Primary Agreement for additional requirements.

Insurance Type Required Coverage Amount
Workers’
Compensation and
Employer’s Liability
Insurance
Yes Statutory limits for Workers’ Compensation and
at least $1 million for Employers Liability.

Commercial General
Liability Insurance
Yes $1 million
Business Automobile
Liability Insurance
Yes $1 million
Property Insurance Yes
Professional Liability
Insurance
Yes $1 million
Cyber Liability
Insurance
No
Crime Insurance No
Contractors’ Pollution
Liability Insurance
and/or Environmental
Liability Insurance
No
Railroad Protective
Liability Insurance
No

IN WITNESS WHEREOF, the Parties have hereunder subscribed their names as of the last date written below.

21650625.4

CITY OF DALY CITY
By:

Name: Thomas J. Piccolotti
Its: City Manager
Date:

Approved as to Form:

Legal Counsel for the City of Daly City
Date:

COUNTY OF SAN MATEO
By:

Name: Ann Stillman
Its: Director of Public Works
Date:

Approved as to Form:

Legal Counsel for the County of San Mateo
Date:

SAN MATEO COUNTY TRANSPORTATION

AUTHORITY
By:

Name: April Chan
Its: Executive Director
Date:

Approved as to Form:

Legal Counsel for the TA
Date:

City Council Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Approval of Offer of Quitclaim Deed of Sewer Easement at 99 Southgate Avenue to Kimco Westlake L.P.

Recommended Action
Staff recommends that the City Council:
1) Approve the offer of quitclaim of Sewer Easement, recorded July 17, 1933, in Book 602, page 105, in the office of County Recorder of San Mateo County, as described in Exhibit A, to Kimco Westlake, L.P., a California limited partnership; and 2) Authorize the City Manager to execute all necessary documents for recordation.

Background
During the preparation of the design plans for the Westlake South Redevelopment Project at 99 Southgate Avenue, it was discovered that there was an existing sewer easement (see attached Exhibit A – Sewer Easement Recorded in 1933) dedicated to the County of San Mateo in 1933 by the Spring Valley Company, Ltd. (Original Owner). At the time of the sewer easement dedication, the subject property was located in unincorporated San Mateo County. In 1948, Daly City annexed the territory designated as “Westlake.” Although the sewer easement was originally vested to the County of San Mateo, it is now located within Daly City city limits and the sewer easement was automatically transferred to the City through the annexation.

Discussion
Kimco Westlake, L.P. (Current Owner) has requested the City to quitclaim the existing sewer easement in its entirety (see attached Exhibit B – Quitclaim Deed). The sewer line originally designed to be in the easement was re-routed around the building on the subject property. As a result, the sewer easement is no longer needed and can be quitclaimed back to the property owner.

The above documents were reviewed and approved by staff and are now ready for City Council acceptance.

Fiscal Impact
There is no fiscal impact associated with these recommendations.

Approval of Quitclaim Deed of Sewer Easement
At 99 Southgate Avenue to Kimco Westlake L.P.

Meeting Date: June 23, 2025

Summary/Conclusion
Staff recommends that the City Council:
1) Approve the offer of quitclaim of Sewer Easement, recorded July 17, 1933, in Book 602, page 105, in the office of County Recorder of San Mateo County, as described in Exhibit A, to Kimco Westlake, L.P., a California limited partnership; and 2) Authorize the City Manager to execute all necessary documents for recordation.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,
Shirley Chan Richard Chiu, Jr.

Acting City Engineer Director of Public Works
Attachments:

1. Exhibit A – Sewer Easement Recorded in 1933

2. Exhibit B – Quitclaim Deed

5060AC
RECORDING REQUESTED BY:

Kimco Westlake, L.P.

WHEN RECORDED MAIL TO:

Kimco Westlake, L.P.
310 Commerce, Suite 150
Irvine, CA 92602 Attn: Jase Prewett

QUITCLAIM DEED
THE UNDERSIGNED GRANTOR DECLARES:

Documentary Transfer Tax – Rev. & Tax. C.A. § 11911 Consideration less than $100 ☐ computed on full value of property conveyed, or
☐ computed on full value less liens and encumbrances remaining at time of sale. ☐ unincorporated area☐ City of Daly City
FOR VALUABLE CONSIDERATION, receipt of which is hereby acknowledged, CITY OF DALY CITY, a municipal corporation, hereby remises, releases and quitclaims to KIMCO WESTLAKE, L.P., a California limited partnership, the real property in the City of Daly City, County of San Mateo, State of California, more particularly described and attached hereto as Exhibit A (“Grant of Sewer Easement” recorded July 17, 1933 as Book 602, Page 105 of Official Records).

This deed is made in accordance with provisions of Resolution No. ________________________ IN WITNESS WHEREOF, CITY OF DALY CITY, a municipal corporation, by its City Council, has caused this Quitclaim Deed to be executed on its behalf, by its City Manager, and its corporate seal to be thereto affixed by its City Clerk, This ________ day of ________________________, 20____.

5060AC

CITY OF DALY CITY
a municipal corporation
By: ________________________________

Name: _____________________________
Title: City Manager
DATED: ______________, 20____.

Attest:

By: _________________________________
Name: ______________________________
Title: City Clerk

5060AC
A Notary Public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

STATE OF )
) SS

COUNTY OF )
On ______________ before me, ___________________________ , a Notary Public, personally appeared ___________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature ________________________________

5060AC

EXHIBIT A

GRANT SEWER EASEMENT
RECORDED JULY 17, 1933 AS BOOK 602, PAGE 105 OF OFFICIAL BOOK

City Council Meeting Agenda ReportItem # _____
props
Meeting Date: June 23, 2025
Subject: Adopt Resolution for Classification Amendments Previously Approved During Budget Process
Recommended Action
Staff recommends that the City Council adopt resolution to memorialize approved classification amendments for specific Miscellaneous/Unrepresented and Local 39 Operating Engineers Plant Maintenance Unit classifications as previously approved on June 9, 2025, as part of the Budget recommendations.

Background/Discussion
On June 9, 2025, the City Council passed Resolution 25-86 adopting the comprehensive Operating and Capital Budgets for Fiscal Year (FY) 2026 and FY 2027. In order to comply with CalPERS auditing purposes, a resolution memorializing the previously approved classification changes that have any eligible incentives, as presented during the budget process is required.

As previously approved on June 9, 2025, as part of the Budget recommendations, staff recommended amending the following budgeted positions:
•(Miscellaneous/Unrepresented) Public Works Superintendent and assign to Range U089 of the Miscellaneous/Unrepresented salary schedule. The Public Works Superintendent classification will be eligible for educational/ certification pay consistent with the Maintenance Supervisors they supervise as follows:

Supplemental Pay (3%) for possession of:
oInternational Society of Arboricultural, Certified Arborist certificate oIrrigation Technician Certificate
oQualified Applicators Certification (QAC) in category B – Landscape Maintenance or Qualified Applicator’s License AND C - Right-of-Way from the State of California, Department of Pesticides Regulation oSan Mateo County Sheriff’s Office, Civilian Work Supervisor, Sheriff’s Work Program card
oCalifornia State Fire Mechanic Association Level I Certification oSigns and Pavements IMSA Certification
Supplemental Pay (4%) for possession of:
oNational Recreation and Park Association Certified Playground Safety Certificate oFleet ASE Master Auto Technician Certification
oFleet ASE Master Technician Medium Heavy Truck Certification oSigns and Pavements IMSA Certification

City Council Agenda Report
Subject: Adopt Resolution for Classification Amendments Previously Approved During Budget Process
Meeting Date: June 23, 2025

Supplemental Pay (5%) for possession of:
oCalifornia Water Environment Association Certificate (CWEA) Grades 1-4 The CWEA certification pay of 5% per grade shall compound from one certificate grade to the next.

The Public Works Superintendent is also eligible for 5% of base pay for possession of Bachelor’s Degree and 5% for possession of Master’s Degree from an accredited college or university (Maximum of 10%).
•(Miscellaneous/Unrepresented) Environmental Compliance and Water Resources Specialist and assign to Range U065 of the Miscellaneous/Unrepresented salary schedule. The Environmental Compliance and Water Resources Specialist will be eligible for educational/certification pay as follows:
oPossession of CWEA Environmental Compliance Inspector Grade 1-4 5% per grade.

The certification pay shall compound from one certificate grade to the next. (Maximum of 20%)
Staff is also recommending the approval of the new Senior Plant and Equipment Maintenance Mechanic job specification and that the new classification be assigned to Range P052 of the Local 39 Operating Engineers Plant Maintenance Unit salary schedule. The City has fulfilled labor relations obligations under Article II, Section 15 of the City’s Employer-Employee Relations Resolution (EERR) to add Senior Plant and Equipment Maintenance Mechanic to the Local 39 Stationary Engineers Plant Maintenance Unit, which would entitle the classification to the benefits and incentives set forth in the Local 39 Operating Engineers Plant Maintenance MOU, which includes the following:

Certification/Educational Incentive:
oPossession of CWEA Mechanical Technologist Grade 1- 4 5% per grade. The certification pay shall compound from one certificate grade to the next. (Maximum of 20%)
Uniform Allowance:

For classic members as defined by CalPERS, the monetary value reported to PERS as taxable income for the purchase and maintenance of uniforms shall be based on the total the cost of uniforms and maintenance divided by the number of employees that use these uniforms. The annual updated total cost shall be attached to Plant Maintenance MOU as Appendix C no later than December 31st of each year.

City Council Agenda Report
Subject: Adopt Resolution for Classification Amendments Previously Approved During Budget Process
Meeting Date: June 23, 2025

For new members as defined by CalPERS as of January 1, 2013, the monetary value of uniforms and maintenance of uniforms will be treated in accordance with Public Employees Pension Reform Act (PEPRA).

As a result of positions changing over the last few years and the need for continued succession planning, the amendments of budgeted positions and range adjustments accurately represents appropriate job duties and salaries. These amendments will go into effect the first full period of July 2025 with the approval of the FY 2026 and FY 2027 Operating Budget. In order to comply with CalPERS auditing purposes, a resolution memorializing the previously approved classification changes as presented during the budget process is required.

Fiscal Impact
There is no fiscal impact to the proposed budget changes and range adjustments, as these were part of the approved budget on June 9, 2025. This resolution request is for CalPERS auditing purposes only.

Summary/Conclusion
Staff recommends that the City Council adopt resolution to memorialize approved classification amendments for specific Miscellaneous/Unrepresented and Local 39 Operating Engineers Plant Maintenance Unit classifications as previously approved in the budget process.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,
Thomas J. Piccolotti Timothy J. Nevin Natalie Sakkal
City Manager Director of Finance & Administrative Services Director of Human Resources Attachment

City Council Agenda Report Item # _____

Meeting Date: June 23, 2025
Subject: Adopt the Resolution to Accept the City of Daly City Cannabis Equity Assessment

Recommendation
City staff recommends that the City Council formally accept the Cannabis Equity Assessment, which was funded by the Governor’s Office of Business and Economic Development (GO-Biz) through the California Cannabis Equity Act of 2018. The Equity Assessment identifies the populations and geographic areas in Daly City disproportionately affected by cannabis -related law enforcement and outlines policy recommendations to reduce barriers to cannabis business ownership for these impacted communities.

Background
In 2021, Daly City adopted commercial cannabis regulations allowing up to seven cannabis retail licenses citywide. Recognizing that past enforcement of cannabis laws has disproportionately harmed certain communities, the City applied for a S tate equity grant in October 2023 and was awarded funding in February 2024 to conduct a Cannabis Equity Assessment.

After soliciting and receiving several bids, s taff contracted SCI Consulting Group and Dr. Ayoka Nurse of Global Reach Strategies to develop the assessment and lead a public engagement process in May 2024. Outreach to the community was extensive and two townhalls were conducted: one in person in November 2024 and a virtual one in April 2025. The City hosted these community meetings where consultants presented their analysis and gathered feedback from impacted stakeholders.

Cannabis related arrest data was found in cooperation with the Daly City Police Department.

Discussion
Summary of the Cannabis Equity Assessment and Community Engagement • Key Data Findings:
o Over 200 cannabis-related arrests between 2009–2024.
o Black and Hispanic/Latino residents were disproportionately impacted. o Impacted areas included Mission Street/Crocker Avenue and the Bayshore neighborhood.
• Stakeholder Feedback:
o Barriers include high start-up costs, competition from illicit shops, and limited zoning access.
o Recommendations included stronger enforcement against illegal operators, incentives for landlords to lease to equity applicants, and expansion of cannabis-eligible zones.

Fiscal Impact

Accept and Adopt the Resolution to Accept the City of Daly City Cannabis Equity Assessment Meeting Date: June 12, 2025

There is no immediate fiscal impact from accepting the Equity Assessment. Some components of program implementation will depend on the availability of future state grant funding or other resources.

Conclusion
The Cannabis Equity Assessment provides a comprehensive, data-informed foundation for creating a more inclusive and just cannabis industry in Daly City. By formally accepting the Assessment, the City Council affirms its commitment to addressing the historical harms of cannabis enforcement and advancing equitable economic opportunities for impacted residents. Staff will use the findings and recommendations outlined in the report to develop a robust local cannabis equity program and return to Council with proposed ordinance amendments and program implementation strategies.

Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Maybelle Manio
Economic & Community Development Timothy J. Nevin
Specialist Director of Finance & Administrative Services

ATTACHMENTS:

Exhibit A: Cannabis Equity Assessment

Cannabis Equity
PRESENTED BY:

KYLE TANKARD, SCI CONSULTING GROUP

DAVID KAUFMAN, SCI CONSULTING GROUP
DR. AYOKA NURSE, GLOBAL REACH STRATEGIES
JUNE 2025

Agenda
Ø Equity Assessment Findings Summary
Ø Outreach Summary
Ø Proposed Equity Program
Ø Next Steps
Ø Q and A
2 2

Developing a Local Social Equity Program

1. OUTREACH AND

EDUCATION

2. CANNABIS EQUITY

ASSESSMENT

3. PROGRAM

DEVELOPMENT

4. PROGRAM

IMPLEMENTATION
3

Cannabis Equity Assessment
Purpose: Analysis of the historical impacts of cannabis-related policies and enforcement on communities and populations within the City of Daly City.

Ø Data-informed look at the history of impacts the illegalization oAnalysis of Police statistics, demographics, poverty, and unemployment Ø Identify, confirm, and describe impacted communities and populations Ø Discuss barriers to entry
Ø Provide policy recommendations for program development:
oProgram Eligibility, Program Benefits/Services, Regulatory Changes 4

5 Equity Analysis –
Key Findings
Ø 200 cannabis-related arrests (2009-
2024)
Ø Black & Hispanic/Latino populations
disproportionately arrested
Ø Most impacted neighborhoods:

Summary of Stakeholder Outreach
Ø Key Takeaways:
oBarriers to Entry & Financial Challenges
oSmoke Shops & Illicit Market Competition
oOversaturation of Retail Licenses
oLand Use & Zoning Restrictions
Ø Stakeholders suggest:
oStronger enforcement against unlicensed shops.
oBalanced retail licensing to avoid oversaturation.
oLandlord incentives to lease to equity applicants.
oZoning reforms for more equitable access to property.
6

Cannabis Regulatory Landscape in Daly City
Ø City approved legalized Commercial Cannabis Activities in 2021 oChapter 5.104 (Commercial Cannabis Regulations)
oChapter 17.56 (Cannabis Combining District Zoning Overlay Ø Allowed Uses:
oCannabis Retailers and Testing Laboratories
oRetail capped at 7 businesses – one within each of the seven cannabis eligibility zones
Ø Retail Licenses:
oFour licenses issued for Zones 1,2,5 and 7
oTwo are currently operational in Zones 1 and 5
oThree are left in Zones 3, 4 and 6
ØLottery Selection process to award retail licenses
7

Expanding Equity Opportunities in Daly City
8 ØOpen New Equity Eligibility Zones
o Add two (2) new Eligibility Zones in historically
impacted areas (Bayshore & Mission Street)
ØEquity Retail Licenses
o Reserve remaining retail licenses for Equity
ØPotential New Cannabis Use Types
oDistribution
oMicrobusiness (Retail, Distribution, Non-Volatile
manufacturing)
oNon-Storefront Retail

Proposed Eligibility Criteria
ØTo qualify as an Equity Applicant, individuals must meet all of the following:
o Justice Impact:
§ Arrest or conviction for a cannabis offense (or an immediate family member) in California or United States prior to November 8, 2016
o Income & Asset Limits:
§ Household income below 80% of the Area Median Income (San Mateo County) OR eligible for public assistance (e.g., CalFresh, Medi-Cal, CalWORKS, SSI, SSDI) AND a net worth under $250,000
o Residency Bonus:
§ Residency requirement is built into the lottery - Applicants who meet this get more entries 9 9

Potential Program Services
ØTechnical Assistance
o Cannabis Certification & Business Development
Courses
o Application Assistance and Workshops
ØFinancial Assistance
o Fee waivers
o Direct Grants (depending on availability of State
Grant funding
ØEquity Licensing
ØExpungement Services
10 Equity
Program
Services
Technical
Assistance
Financial
Assistance
Expungement
Services
Equity
Licensing

Next Steps
Ø Small Business Commission – Approval of Proposal for New Cannabis Zones (March 13, 2025) Ø Cannabis Subcommittee (April 2025)
Ø Planning Commission (May 2025)
Ø City Council (June 2025)
Cannabis Equity Development and Implementation
11 11

?
Questions & Answers
12

Contact Information
13 ØKyle Tankard, SCI, [email protected]
ØDavid Kaufman, SCI, [email protected]
ØDr. Ayoka Nurse, [email protected]
ØMaybelle Manio, [email protected]

CITY OF DALY CITY
Cannabis Equity Assessment
June 2025

City of Daly City
Cannabis Equity Assessment
June 2025
Page ii

Acknowledgements
The City of Daly City extends its sincerest appreciation to the following individuals and entities whose contribution has made the creation of the Cannabis Equity Assessment possible:

City Council
Dr. Rod Daus-Magbual, Mayor
Glenn R. Sylvester, Vice Mayor
Juslyn C. Manalo, Councilmember
Pamela DiGiovanni, Councilmember
Teresa G. Proaño, Councilmember
City Staff
Maybelle Manio, Economic Development Specialist
Tatum Mothershead, Director of Economic and Community Development Rheanna Mariano, Senior Executive Administrative Assistant Daly City Police Department
Officer Renaldo Rodriguez
State of California
Go-Biz Grants Team

City of Daly City
Cannabis Equity Assessment
June 2025
Page iii

Table of Contents
Introduction ............................................................................................................... 1 Purpose of Cannabis Equity Assessment ................................................................................... 2

1. Cannabis Equity Analysis ..................................................................................... 3 Methodology ............................................................................................................................. 3 Limitations of the Equity Analysis ............................................................................................. 3 Cannabis Enforcement History .................................................................................................. 4 City of Daly City Demographics ................................................................................................. 6 Cannabis-Related Arrests .......................................................................................................... 6 Cannabis-Relates Arrest Types .................................................................................................. 7 City of Daly City Cannabis-Related Arrests by Race/Ethnicity ................................................... 9 Identification of Disproportionately Affected Communities ................................................... 11 Disproportionately Affected Communities Analysis ............................................................... 16 Conclusions Regarding Disproportionately Affected Communities ........................................ 18

2. Overview of Cannabis-Related Businesses and Activities ................................... 19 City of Daly City Cannabis Legislative History.......................................................................... 19 Allowable Land Use Zones ....................................................................................................... 19 Taxation: .................................................................................................................................. 21 Fees: ........................................................................................................................................ 21 Current Cannabis Businesses................................................................................................... 21 Expansion of Cannabis Permits and Activities ......................................................................... 21

3. Barriers to Entry ................................................................................................ 27 Financial Barriers ..................................................................................................................... 27 Technical Barriers .................................................................................................................... 29 Criminal Barriers ...................................................................................................................... 31

4. Community Outreach and Feedback .................................................................. 32 Online Survey .......................................................................................................................... 32 Community Meetings .............................................................................................................. 32 Stakeholder Interviews ............................................................................................................ 33 Summary of Feedback and Common Themes ......................................................................... 33

5. Best Practices ................................................................................................... 36 City of Oakland - Cannabis Equity Program (2017) ................................................................. 36

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Cannabis Equity Assessment
June 2025
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San Francisco – Office of Cannabis - Equity Program (2017) .................................................. 37 City of Sacramento - Cannabis Opportunity Reinvestment and Equity (C.O.R.E.) Program (2018) ...................................................................................................................................... 39 City of Los Angeles – Cannabis Social Equity Program (2017) ................................................. 41 City of Long Beach – Cannabis Equity Program (2018) ........................................................... 41

6. Findings and Recommendations ........................................................................ 44

1. Adopt Regulatory Changes to Provide Opportunities for Equity Ownership ............... 44

2. Equity Program Eligibility Criteria ................................................................................. 45

3. Equity Program Application and Permitting ................................................................. 47

4. Equity Program Benefits and Services .......................................................................... 48

5. Stakeholder and Public Outreach and Education ......................................................... 49

6. Raise Awareness of Expungement Opportunities ........................................................ 51

7. Workforce Development Opportunities ...................................................................... 52

8. Equity Program Funding ............................................................................................... 53

9. Community Reinvestment ............................................................................................ 54

10. Program Data Collection, Monitoring, and Updates .................................................... 55

11. Smoke Shops and Illicit Market Competition ............................................................... 56 Appendix A: The City of Daly City Cannabis Equity Website ....................................... 58 Appendix B: Cannabis Equity Assessment Survey (English) ........................................ 59 Appendix C: Community Meeting Invitations ............................................................ 85

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Cannabis Equity Assessment
June 2025
Page v

List of Figures
Figure 1 – Distribution of Race/Ethnicity, City of Daly City (2022) .................................................. 6 Figure 2 – Cannabis-Related Arrests by Year, City of Daly City (2009-2024) ................................... 7 Figure 3 – Cannabis-Related Arrest Types (2009-2024) .................................................................. 8 Figure 4 – Cannabis-Related Arrest Types by Year .......................................................................... 9 Figure 5 – Cannabis-Related Arrests by Race/Ethnicity, City of Daly City (2009-2024) ................... 9 Figure 6 – Population Percentage vs. Arrest Percentage, City of Daly City (2009-2024) .............. 10 Figure 7 – People of Color as a Percentage of Population ............................................................. 13 Figure 8 – Low-Income Households as a Percentage of Population .............................................. 14 Figure 9 – Educational Attainment ................................................................................................ 15 Figure 10 – Cannabis Arrests and Socioeconomic Disadvantage by Census Tract ........................ 17 Figure 11 – Commercial Cannabis Eligibility Zone Map ................................................................. 20

City of Daly City
Cannabis Equity Assessment
June 2025

Introduction
The history of cannabis prohibition in California—and across the United States—extends beyond the past; it continues to shape the economic, social, and legal realities of many communities today. For decades, communities of color, particularly Black, Indigenous, and People of Color (BIPOC), have faced the harshest consequences of cannabis enforcement, experiencing not only legal penalties but also long -term economic and social repercussions. These include barriers to employment, education, financial stability, and overall community well- being. Th e disproportionate impact of cannabis -related arrests and convictions, coupled with systemic inequalities such as generational poverty and education gaps, has created formidable barriers to economic participation, particularly within the regulated cannabis industry.

Long-standing and persistent obstacles to business ownership and entrepreneurship for historically affected communities exist broadly throughout the United States. However, these challenges are even more pronounced in the cannabis industry due to the lasting consequences of cannabis prohibition, exacerbated by the racial targeting associated with the War on Drugs.

The compounded effects of past criminal records, financial inaccessibility, and regulatory complexities make it extraordinarily difficult for individuals from these communities to enter and succeed in the legal cannabis market.

Recognizing these ongoing inequities, California enacted the California Cannabis Equity Act in 2018 as a legislative initiative to mitigate the lasting harm caused by cannabis prohibition. The Act aims to promote equitable ownership and employment opportunities within the cannabis industry by establishing a state-supported program to assist local jurisdictions in developing and implementing cannabis equity programs. Through this initiative, the state provides loans, grants, and technical assistance to suppo rt entrepreneurs from disproportionately impacted communities in entering and sustaining businesses in the regulated market.

To effectively administer the Cannabis Equity Grants Program, the Department of Cannabis Control (DCC)—formerly the Bureau of Cannabis Control—entered into an interagency agreement with the Governor’s Office of Business and Economic Development (GO -Biz). This collaborative effort is designed to support local jurisdictions in their efforts to provide financial and technical assistance to equity applicants and licensees, ensuring that those most affected by prohibition have access to meaningful opportunities in the legal cannabis industry.

While the legalization of cannabis in California represented a critical step toward addressing historical injustices, the experience of affected communities has demonstrated that legalization alone is insufficient. Cannabis equity programs are a necessary response to these systemic challenges, aiming to achieve three primary objectives:

City of Daly City
Cannabis Equity Assessment
June 2025

 Economic Justice – Providing financial resources, technical support, and business development assistance to individuals from disproportionately impacted communities to enable them to enter and thrive in the legal cannabis industry.  Barrier Reduction – Addressing systemic challenges such as limited access to capital, complex regulatory requirements, and the social stigma associated with past cannabis- related convictions to create a more inclusive and accessible industry.  Community Reinvestment – Ensuring that economic benefits flow back into the communities that were most affected by cannabis criminalization, fostering long-term recovery, economic empowerment, and social equity.

Purpose of Cannabis Equity Assessment
The Cannabis Equity Assessment (“Equity Assessment”) serves as a comprehensive analysis of the impact of cannabis criminalization in Daly City (“City”) and the systemic barriers that have prevented affected communities and individuals from accessing opportunities within the legal cannabis industry. This assessment employs a data -driven approach to identify communities disproportionately impacted by past cannabis enforcement, examining key indicators such as arrest records, poverty rates, educational attainment, and other socioeconomic factors that reflect the long-term consequences of prohibition policies. Additionally, the assessment evaluates the structure of the existing cannabis industry to identify the specific obstacles that hinder equitable participation within the City.

The primary objective of this Equity Assessment is to provide a foundation for the development and implementation of a cannabis equity program in Daly City. Such a program would establish targeted policies, initiatives, and support mechanisms to assist historically impacted communities in entering and succeeding in the legal cannabis market. To be effective, the City's cannabis equity program must be transparent, accessible, and equitable, addressing the unique challenges and needs faced by affected individuals. By leveraging this assessment, Daly City can create a cannabis equity framework that fosters economic inclusion, social justice, and long- term community reinvestment.

City of Daly City
Cannabis Equity Assessment
June 2025

1. Cannabis Equity Analysis
Methodology
This Equity Assessment examines historical cannabis -related arrest data in Daly City to evaluate the disproportionate impact of cannabis enforcement and the War on Drugs in communities within Daly City. The analysis leverages cannabis-related arrest statistics provided by the Daly City Police Department (DCPD) and overlays this data with census tract information to identify spatial and demographic disparities. By mapping arrest “hot spots” within the City, this study seeks to determine whether a correlation exists between high-arrest areas and low-income communities, thereby identifying neighborhoods disproportionately affected by cannabis criminalization.

The cannabis-related arrest data, covering the period from 2009 to 2024, was obtained directly from the DCPD. To contextualize this information, demographic data was sourced from the 2018– 2022 American Community Survey (ACS) 5 -Year Estimates. The selection of this dataset ensures alignment with demographic indicators from the U.S. Environmental Protection Agency’s (EPA) Environmental Justice Screening and Mapping Tool, which also relies on the ACS 2018 –2022 5- Year Summary.

Limitations of the Equity Analysis
As previously noted, the Equity Assessment utilizes cannabis-related arrest records spanning the years 2009 through 2024 in the City of Daly City. While this data provides valuable insights, several limitations must be acknowledged.

First, the restricted timeframe limits the ability to analyze long- term trends and impacts of cannabis enforcement. The absence of pre -2009 data means this study cannot capture the full historical scope of cannabis-related arrests, particularly during earlier periods of the War on Drugs when enforcement was more aggressive. Consequently, this analysis cannot fully account for generational disparities or the cumulative effects of past enforcement policies on affected communities.

Additionally, the legalization of cannabis in California through Proposition 64 in 2016 significantly altered enforcement patterns. Post- legalization arrests likely reflect violations related to unlicensed sales, possession beyond legal limits, or regulatory infractions rather than simple possession offenses. This shift complicates direct comparisons between pre- and post-legalization arrest trends and makes it challenging to isolate the specific impact of legalization on cannabis - related enforcement in Daly City.

City of Daly City
Cannabis Equity Assessment
June 2025

Despite these constraints, this Equity Analysis provides a data -driven approach to identifying communities that have borne a disproportionate burden of cannabis enforcement. By examining available arrest data within the context of economic disadvantage, this study lays the groundwork for more equitable cannabis policy and future research on the long -term impacts of cannabis - related enforcement in Daly City.

Cannabis Enforcement History
Prior to the 1900’s, cannabis was cultivated throughout the United States primarily for its industrial use (as “hemp” for use in a variety of commercial items including paper, rope, textiles, etc.) and its medicinal uses with very little targeted government regulation. Cannabis use for its psychoactive effects began to increase during the 1900’s, simultaneously a widespread national “anti-intoxicant” sentiment that resulted in prohibition of alcohol was also emerging.

As a result, beginning in the early 1900s, most States began placing restrictions on the cultivation and sales of cannabis. The first national regulation of cannabis was created by the Marihuana Tax Act of 1937 (as marijuana was spelled at the time), which placed a tax on the sale of cannabis and allowed for law enforcement to make arrests for non -payment of the tax. The Narcotic Control Act of 1961 and the Controlled Substances Act of 1970 officially made the manufacture, importation, possession, use, and distribution of cannabis illegal throughout the United States.

The Drug Enforcement Agency (DEA) was created in 1973 and began increasing its enforcement activities, while recreational cannabis use was also increasing – first as popularized by the counter-culture revolution of the time and then as it moved into the more mainstream population. The term “War on Drugs” emerged following several press conferences held by then- President Richard Nixon during the Summer of 1971.

The Comprehensive Crime Control Act of 1984 increased federal penalties for cultivation, possession, or transfer of marijuana; and the 1990 Crime Control Act provided funding for local law enforcement agencies to seize private property associated with unlawful drug activities, including cannabis cultivation or distribution.

Illegal cannabis use was increasing, and so was the response from law enforcement. In their 2012 definitive analysis on the subject, researchers Holly Nguyen and Peter Reuter point out that:
“There has been a dramatic rise in the number of arrests for simple possession since 1991.

In 2008, about 800,000 individuals were arrested for possession of small amounts of marijuana (typically less than an ounce). That figure was more than three times t he number in 1991.”
1 1 Nguyen, H., & Reuter, P. (2012). How Risky Is Marijuana Possession? Considering the Role of Age, Race, and Gender. Crime & Delinquency, 58(6), 879-910. https://doi.org/10.1177/0011128712461122

City of Daly City
Cannabis Equity Assessment
June 2025

And most importantly, Nguyen and Reuter showed that although cannabis use rate was about the same for White and Black Americans, rates of arrest are about three times higher for Black Americans:
“Although Whites and Blacks show an overall increase in arrest rates since 1991, the rates for the two races are markedly different. In 1991, Blacks were arrested twice as often as Whites. In 2008, Blacks were more than three times likely to be arrested as Whites. This starkly contrasts with their almost identical rates of use.”

Meanwhile, although the War on Drugs continued to rage and affect Black/African American, LatinX and indigenous communities disproportionately, attitudes of Californians began to change significantly in the early 1990s . The medicinal value of cannabis to HIV patients for appetite stimulation and pain management was well supported by Californians who began a 20 -year acceptance of medicinal, and ultimately recreational, cannabis along with the associated de - criminalization.

In 1996, Californians passed Proposition 215, the Compassionate Use Act, which allowed for the uses of medicinal cannabis. In 2011, there were notable changes in California law, and some misdemeanor marijuana statutes were re-classified as infractions, leading to a significant decline in misdemeanor marijuana arrests. The Medical Marijuana Regulation and Safety Act was adopted by the California Legislature in 2015, and in November 2016, California voters passed Proposition 64, which legalized the possession and use of marijuana for individuals 21 years of age and older and reduced the offense degree for a number of marijuana- related offenses. Proposition 64 essentially ended cannabis prohibition in California. For example, in 2014, there were 13,300 felony arrests for cannabis in California, where that number had dropped to 1,181 by 2019.

However, much of the damage from disproportionate enforcement of cannabis-related laws had already been done, and the long- term effects of the War on Drugs, have persisted and are well documented. For example, in their 2017 research for the Cato Institute (“Four Decades and Counting: The Continued Failure of the War on Drugs”) Christopher J. Coyne and Abigail R. Hall point out that:
“A felony drug charge can also cause an individual to lose eligibility to work for the federal government; enlist in the U.S. Armed Forces; obtain an import, customs, or other license; or obtain a passport. Many private -sector job applications require crim inal background checks and the disclosure of felony convictions, preventing individuals convicted of drug offenses from obtaining gainful employment. Given the rate at which minorities are arrested for crime, this has immense implications for the long- term prosperity of both individuals and broader communities.”
2 2 Coyne, Christopher J. and Hall, Abigail R, Four Decades and Counting: The Continued Failure of the War on Drugs (April 12, 2017). Cato Institute Policy Analysis No. 811, Available at SSRN:
https://ssrn.com/abstract=2979445

City of Daly City
Cannabis Equity Assessment
June 2025

Further, in its 2020 “Crime in California” report, the California Department of Justice indicated that although the overall number of arrests for cannabis related activities is trending downward since legalization, arrests are still disproportionately high for non -white citizens – Hispanics citizens accounted for nearly 42% of those arrests, followed by Blacks citizens, at 22%, with White citizens at 21%.

City of Daly City Demographics
Figure 1 below presents the 2018 –2022 5 -Year demographic estimates for Daly City. Among residents who reported a single racial identity, the largest demographic group is Asian (58.9%), followed by Hispanic or Latino (21.0%), White (17.7%), Black or African American (2.9%), Native Hawaiian and Other Pacific Islander (1.2%), and American Indian and Alaska Native (0.9%).

Additionally, an estimated 8.9% of residents identified as two or more races, reflecting the city's diverse population.

Figure 1 – Distribution of Race/Ethnicity, City of Daly City (2022)

Cannabis -Related Arrests
As part of this analysis, historical cannabis -related arrest data in Daly City was examined for the period spanning 2009 to 2024. During this timeframe, a total of 200 cannabis-related arrests were recorded citywide. The highest number of arrests occurred in 2014, with 29 reported cases.

Race/Ethnicity Population Percent
Asian Alone 61,020 58.9%
Hispanic or Latino 21,799 21.0%
White Alone 18,373 17.7%
Two or More Races 9,178 8.9%
Black or African American Alone 2,995 2.9%
Native Hawaiian and Other Pacific Islander Alone 1,263 1.2% American Indian and Alaska Native Alone 924 0.9% Source: U.S. Census Bureau, 2018-2022 American Community Survey 5-Year Estimates

City of Daly City
Cannabis Equity Assessment
June 2025

Following the passage of Proposition 64 in 2016, which legalized and decriminalized recreational cannabis use in California, a notable decline in cannabis -related arrests was observed. However, there was a temporary spike in 2017, with 26 arrests, before the overall downward trend resumed. This continued reduction in arrests aligns with broader shifts in cannabis legislation and enforcement strategies, both within Daly City and statewide, as law enforcement agencies have adapted to the evolving legal landscape.

Figure 2 – Cannabis-Related Arrests by Year, City of Daly City (2009-2024)

Source: Daly City Police Department
Cannabis -Relates Arrest Types
Figures 3 and 4 provide a year-by-year breakdown of cannabis-related offenses in Daly City from 2009 to 2024, highlighting key enforcement trends over this period. A significant decline in most cannabis-related violations is observed after 2016, coinciding with the passage of Proposition 64, which legalized recreational cannabis use for adults 21 and older.

Prior to Proposition 64, offenses such as Possession of Concentrated Cannabis (11357(A) HS), Possession of More than 28.5 Grams (11357(C) HS), and Possession for Sale (11359 HS) were among the most frequently recorded violations, with peak enforcement occurring between 2011 and 2015.

City of Daly City
Cannabis Equity Assessment
June 2025

Possession-related offenses—including Possession of Cannabis Less than 28.5 Grams (11357(B) HS) and Possession of Cannabis More than 28.5 Grams (11357(C) HS)—were commonly enforced before 2016, as possession exceeding one ounce (28.5 grams) was illegal at the time. Following the passage of Proposition 64, citations for these offenses dropped sharply as adult possession within legal limits was decriminalized. However, possession offenses involving minors, which remained illegal under Proposition 64, saw a temporary increase. In particular, Possession of Cannabis (Minor) of less than 28.5 Grams (11357(a) HS) peaked in 2017 and 2018 before declining, suggesting a shift in enforcement focus on underage possession.

While possession -related arrests declined significantly, offenses related to illicit sales and distribution—such as Possession for Sale (11359 HS) and Transport, Import, Sale, or Gift of Cannabis (11360(A) HS) —remained relatively steady over the years, wit h periodic fluctuations.

This suggests that despite legalization, unregulated cannabis sales and distribution have continued to be a focus of law enforcement.

Figure 3 – Cannabis-Related Arrest Types (2009-2024)

Statute 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Total 11357(A) HS - 4 6 14 8 13 11 5 - - - - - 1 - - 62
11357(B) HS - 1 2 2 1 5 4 2 - - - - - - - - 17
11357(C) HS 1 3 6 4 2 9 5 7 - - - - - - - - 37
11357(D) HS - - - - - - - - - 3 - - - - - - 3
11357(E) HS - - - - 1 3 - - 2 - - - - - - - 6
11357(a) HS - - - - - - - 1 10 4 4 1 - 1 4 - 25
11357(b)(1) HS - - - - - - - - - - - - - 1 - - 1
11357(b)(2) HS - - - - - - - - - - - - 1 - - - 1
11357(c) HS - - - - - - - - - - - 2 - - - - 2
11357(d) HS - - - - - - - - - 3 - - - - - - 3
11358 HS 1 - 3 2 - 1 - 1 3 - - - - - - - 11
11359 HS 4 2 5 4 2 12 2 1 5 4 - - 1 1 3 - 46
11360(a) HS 3 4 4 3 2 7 4 3 3 8 1 1 2 2 3 1 51
11362.4 HS - - - - - - - - - 3 - - - - - - 3

City of Daly City
Cannabis Equity Assessment
June 2025

Figure 4 – Cannabis-Related Arrest Types by Year

City of Daly City Cannabis -Related Arrests by Race/Ethnicity Figure 5 below illustrates the distribution of cannabis-related arrests by race/ethnicity in Daly City from 2009 to 2024. Over this period, Hispanic/Latino individuals accounted for the largest share of arrests (31.0%), followed by White (23.3%), Asian (19.6%), and Black/African American (16.9%) populations.

Figure 5 – Cannabis-Related Arrests by Race/Ethnicity, City of Daly City (2009-2024)

Race/ Ethnicity
Total Percent Total Percent
Hispanic or Latino 67 35.4% 21,799 21.0%
White 44 23.3% 18,373 17.7%
Asian 37 19.6% 61,020 58.9%
Black or African American 32 16.9% 2,995 2.9%
Native Hawaiian and Other Pacific Islander 8 4.2% 1,263 1.2% American Indian and Alaska Native alone 1 0.5% 924 0.9% 2 Source: U.S. Census Bureau, 2018-2022 American Community Survey 5-Year Estimates Arrests Population
(2009-2024)1 (2022)2
1 Source: Daly City Police Department

City of Daly City
Cannabis Equity Assessment
June 2025

To evaluate the disparities in cannabis-related arrests across different demographic groups in Daly City, we analyzed arrest rates relative to each group's total population share. The findings reveal significant racial and ethnic disparities in enforcement , particularly affecting Black/African American and Hispanic/Latino communities.
 Black/African American individuals faced the highest disproportionate arrest rate.

Despite representing only 3% of Daly City's population, they accounted for 17% of cannabis-related arrests, a rate nearly 5.5 times higher than their population proportion.
 Hispanic/Latino individuals were also disproportionately affected, with arrest rates nearly twice as high as their population representation.  In contrast, other demographic groups were arrested at rates more closely aligned with or below their respective population percentages.

Figure 6 – Population Percentage vs. Arrest Percentage, City of Daly City (2009-2024)

Source: Daly City Police Department
Source: Source: U.S. Census Bureau, 2018-2022 American Community Survey 5-Year Estimates

City of Daly City
Cannabis Equity Assessment
June 2025

Identification of Disproportionately Affected Communities The objective of this Equity Assessment is to identify disproportionately affected communities in the City that have been historically impacted by cannabis criminalization. As demonstrated in the analysis in the previous section , African American and Hispanic/Latino populations have historically been subject to a disproportionate rate of cannabis -related arrests in the City .

Research indicates that such arrests have long-term consequences, limiting opportunities for employment, education, and housing, which , in turn, hinder economic mobility. These systemic barriers, combined with the high financial costs of entering the regulated cannabis industry, create significant challenges for affected individuals seeking to participate in the legal market.

To determine the communities most impacted, three key indicators were analyzed at the census tract level:
 Race and Ethnicity: Communities of color have historically faced higher cannabis-related arrest rates.
 Income Levels: Individuals with lower financial resources encounter greater obstacles in accessing capital and business opportunities within the regulated cannabis industry.  Educational Attainment: Those with lower levels of education often lack access to resources, training, and networks necessary for successful industry entry.

By evaluating these indicators alongside the geographic distribution of cannabis -related arrests, this assessment provides a comprehensive understanding of the communities disproportionately affected by cannabis prohibition.

Data and Methodology
To identify impacted communities, demographic data was sourced from the United States Environmental Protection Agency’s (EPA) EJSCREEN tool, which compiles nationwide demographic and environmental data. EJSCREEN’s data, derived from the U.S. Census Bureau’s American Community Survey (ACS) 2018-2022 5-year Summary, was used to map and analyze:
 Communities of color (percentage of non-Hispanic white alone vs. all other racial/ethnic groups).
 Low-income households (household incomes at or below twice the federal poverty level).
 Educational attainment (percentage of individuals aged 25 or older without a high school diploma).

City of Daly City
Cannabis Equity Assessment
June 2025

People of Color Populations
Figure 7 provides a visual representation of the percentage of individuals within a census tract who list their racial status as a race other than white alone and/or list their ethnicity as Hispanic or Latino; in other words, individuals who do not identify as non -Hispanic white alone. The term "alone" here signifies that the individual identifies with a single racial category, rather than being multiracial.

As illustrated in Figure 7, Daly City has a predominantly diverse population, with the majority of census tracts consisting of 75% to 100% people of color. These communities make up a significant portion of the city's population. In contrast, only a few ar eas—primarily near the northern and western edges—have a lower proportion of people of color, ranging from 50% to 75%.

Low -Income Populations
Figure 8 provides a visual representation of the percentage of low-income households in each of the City’s census tracts. Low-income households are defined as those with household incomes at or below twice the federal poverty level. The City, for the most part, exhibits a low concentration of poverty, with the majority of its census tracts having 25% or less of their households falling into this category. Only a few areas, primarily along the northern edge of the City, have a higher proportion of low-income residents, ranging from 25% to 50%.

Educational Attainment
Educational attainment levels, visualized in Figure 9, indicate that most census tracts have at least 75% of residents who have completed high school. However, the northern section of the city contains clusters of census tracts where 25% to 50% of residents lack a high school diploma.

City of Daly City
Cannabis Equity Assessment
June 2025

Figure 7 – People of Color as a Percentage of Population

City of Daly City
Cannabis Equity Assessment
June 2025

Figure 8 – Low-Income Households as a Percentage of Population

City of Daly City
Cannabis Equity Assessment
June 2025

Figure 9 – Educational Attainment

City of Daly City
Cannabis Equity Assessment
June 2025

Disproportionately Affected Communities Analysis
This analysis examines the relationship between location of cannabis-related arrests and disadvantaged communities in Daly City. By identifying census tracts that have been historically impacted by cannabis criminalization, this assessment aims to inform policy decisions regarding equity-focused cannabis licensing.

Correlation Between Cannabis Arrests and Socioeconomic Disadvantage To identify socioeconomically disadvantaged areas, data was analyzed and ranked using a color- coded system to categorize census tracts based on their impact level:

Figure 10 presents the spatial relationship between cannabis -related arrests and socioeconomic indicators. A comparative analysis of arrest data and demographic indicators indicates a strong connection between disadvantaged census tracts and the concentration of cannabis -related arrests. Many of the census tracts with the highest arrest numbers also feature a large percentage of residents who are people of color, have lower income levels, and possess lower educational attainment.

However, the relationship is not entirely uniform. While most areas with high arrests align with indicators of social disadvantage, a few census tracts with significant arrest counts do not meet all three disadvantage criteria. Nonetheless, the overarching trend demonstrates a disproportionate impact on historically marginalized communities.

Green Minimal Impact
Yellow Low Impact
Orange Moderate Impact
Red High Impact

City of Daly City
Cannabis Equity Assessment
June 2025

Figure 10 – Cannabis Arrests and Socioeconomic Disadvantage by Census Tract

Census Tract Number of
Arrests
Percent of
Arrests
% People of
Color % Low Income % Not Completed
High School
06081600600 27 14% 95% 22% 13%
06081601400 23 12% 88% 10% 10%
06081601604 17 9% 80% 4% 3%
06081600701 16 9% 89% 34% 18%
06081600800 13 7% 84% 27% 14%
06081600200 12 6% 98% 22% 19%
06081600702 12 6% 82% 17% 5%
06081601301 12 6% 93% 20% 15%
06081601000 11 6% 82% 13% 8%
06081600900 9 5% 68% 14% 8%
06081601502 7 4% 89% 19% 14%
06081601605 7 4% 94% 13% 8%
06081601302 6 3% 96% 31% 33%
06081600502 5 3% 98% 17% 18%
06081601603 4 2% 93% 22% 8%
06081600501 2 1% 91% 18% 18%
06081601200 2 1% 73% 14% 7%
06081600402 1 1% 94% 17% 26%
06081601100 1 1% 83% 11% 10%
06081601501 1 1% 94% 11% 8%
06081600300 0 0% 80% 13% 8%
06081600401 0 0% 88% 15% 12%
06081601601 0 0% 82% 16% 16%

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Cannabis Equity Assessment
June 2025

Findings on Cannabis -Related Arrests
The data reveals significant variations in the distribution of cannabis-related arrests across census tracts. Several areas exhibit disproportionately high arrest rates, with the most impacted census tracts being:
 Census Tract 06081600600 accounts for 14% of all arrests, with a population that is 95% people of color and 22% low-income.
 Census Tract 06081601400 follows closely, representing 12% of arrests, with 88% people of color and 10% low-income.
 Census Tract 06081600701 is another highly impacted area, making up 9% of arrests and characterized by 89% people of color, 34% low-income, and 18% of residents without a high school diploma.
 Other census tracts, such as 06081600800, 06081600200, and 06081600702, also display considerable cannabis-related arrests while meeting multiple criteria for social disadvantage.

Conclusions Regarding Disproportionately Affected Communities The findings underscore the disproportionate impact of cannabis criminalization on historically marginalized communities. Findings from earlier research further contextualize the demographic patterns observed in the arrest data. From 2009 to 2024, cannabis -related arrests in Daly City disproportionately affected Black/African American and Hispanic/Latino individuals:
 Black/African Americans, despite making up only 3% of the city’s population, accounted for 17% of cannabis-related arrests—a rate nearly 5.5 times higher than their population share.
 Hispanic/Latino individuals experienced an arrest rate nearly twice their population representation.
 Other demographic groups, including White and Asian populations, were arrested at rates more proportionate to or below their respective population percentages.

These disparities reinforce systemic inequalities, contributing to generational poverty, educational disparities, and financial barriers that hinder access to the legal cannabis industry.

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Cannabis Equity Assessment
June 2025

2. Overview of Cannabis -Related Businesses and Activities City of Daly City Cannabis Legislative History
In October 2019, the Daly City Council adopted Ordinance No. 1434, adding Chapter 5.104 to the City’s Municipal Code. This ordinance authorized commercial cannabis activities and established a framework for permitting and regulating such businesses. It req uired that, in addition to obtaining a state license, all commercial cannabis operators in Daly City must secure a Commercial Cannabis (-CC) Business License from the City. The ordinance also allowed City staff to develop a zoning overlay district to designate areas where commercial cannabis operations would be permitted.

In April 2021, Daly City enacted Ordinance No. 1446, which formally established the Cannabis Combining District Zoning Overlay. This overlay district created a distinct zoning designation, identifying specific properties within designated eligibility zones where commercial cannabis operations could operate by right.

Alongside the zoning overlay, the City adopted Ordinance No. 1447, amending Chapter 5.104 to refine its cannabis regulations. This ordinance limited commercial cannabis operations to retailers and testing laboratories while explicitly prohibiting cultivati on, distribution, and manufacturing.

Additionally, security requirements were strengthened, mandating 24-hour surveillance systems, secure product storage, and on-site security personnel.

To ensure fairness and transparency, Daly City implemented a lottery -based system for issuing business licenses. Applications must meet minimum eligibility criteria and be categorized by designated zones before being randomly selected for licensing. The licensing process requires multi-departmental coordination, with final approval from both the Planning Division and the Police Department before a license is issued.

The first round of solicitations for Commercial Cannabis Business License Applications was conducted from September 1, 2021, through October 1, 2021. A lottery selection of eligible applications took place on November 17, 2021.

Allowable Land Use Zones
In accordance with the cannabis policy of the City of Daly City, commercial cannabis operators are permitted to establish themselves in specific zoning districts, contingent upon the approval of the necessary land use permits and the nature of the intended cannabis activity.

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Commercial Districts : (Retail)
Retail cannabis businesses are permitted only in designated commercial zones. However, certain properties are excluded from the CC -Commercial Cannabis Combining District, including those located in the coastal zone, on the county line with San Francisco, or owned by the state or county.

Additionally, properties zoned for Commercial Office (C -O), Manufacturing (M), or Planned Development (PD) are ineligible. Properties containing an existing or proposed gasoline service station are also excluded.

To regulate the concentration of cannabis businesses, only one retail cannabis operation is allowed within each of the seven designated commercial cannabis eligibility zones, effectively capping the total number of cannabis retail establishments in Daly City at seven.

Testing Laboratories :

Cannabis testing laboratories are permitted in any commercial or industrial zone that allows similar medical or testing facilities.

Figure 11 – Commercial Cannabis Eligibility Zone Map

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Taxation:

On November 6, 2018, Daly City voters approved Measure UU implementing a Cannabis Business Tax for the City. The ordinance imposes a gross receipts tax capped at 10% on all cannabis businesses. On September 27, 2021, Council approved Resolution 21 -132, adopting a tax rate structure for the voter approved Cannabis Business Tax. The current tax rates are outlined as follows:
 2% of gross receipts for businesses with up to $1 million in gross receipts  4% of gross receipts for businesses with up over $1 million in gross receipts Fees:

The City has established a cannabis fee structure for the processing of applications and regulatory compliance. Below are adopted fee schedules:
 Commercial Cannabis Business License: $621.00
 Cannabis Permits: $270.00
Current Cannabis Businesses
Daly City permits up to seven storefront retail cannabis businesses, with one license allocated per Eligibility Zone. As of the current reporting period:
 Four retail licenses have been issued in Zones 1, 2, 5, and 7.  Two of these licensed businesses are operational, located in Zones 1 and 5.  Three licenses remain available for Zones 3, 4, and 6.

In addition to retail businesses, the City also allows cannabis testing laboratories; however, no testing licenses have been issued to date.

Expansion of Cannabis Permits and Activities
To establish a meaningful cannabis equity program, the City must allocate additional licenses exclusively for equity applicants. Currently, the City permits only retail and testing businesses, limiting opportunities for equity applicants if no licenses remain available. Of the seven retail licenses authorized, 4 licenses have already been awarded, presenting the City with a critical decision: whether to reserve the remaining licenses exclusively for equity applicants or expand the total number of permits to increase access.

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Beyond retail and testing, the City could enhance equity participation by broadening the scope of allowable cannabis businesses. Expanding license categories to include cultivation, distribution, manufacturing, microbusinesses, and onsite consumption facilities would create additional pathways for equity applicants to enter the industry. These potential expansions are explored in detail below.

Cultivation
Cannabis cultivation refers to the process of growing cannabis plants, including harvesting, drying, curing, and trimming. There are three main categories of cannabis cultivation licenses issued by the State, which are determined by two key factors: the ty pe of production and lighting utilized, and the number of plants grown or the size of the canopy. These license types are categorized as:
 Outdoor cultivation: cultivators who grow cannabis outside without using any artificial lighting on mature plants.
 Indoor cultivation: cultivators who grow cannabis in a permanent structure using artificial lighting.
 Mixed-light cultivation: cultivators who grow cannabis using a combination of natural and artificial lighting in a greenhouse, hoop-house, glasshouse, or other similar structure.

In addition to the cannabis cultivation licenses described above, the State also issues licenses for cannabis nurseries and processors.
 Nursery: A cannabis nursery license allows a business to cultivate clones, immature plants, and seeds used for propagation. Nurseries can only sell plants and cannot produce cannabis flower or other cannabis products. Nurseries may also provide clones, immature plants, or seeds to other licensed businesses.  Processor Licenses: A cultivation processor license allows a business to only trim, sift, cure, dry, grade, package or label cannabis.

Local jurisdictions have the authority to ban or allow different types of cannabis cultivation, including indoor, mixed -light, and outdoor cultivation, within their boundaries. Some local municipalities have chosen to ban outdoor cultivation and mixed-light cultivation due to concerns about odor , potential impacts on nearby communities , and other land use considerations .

Cultivation in urban areas is almost always limited to indoor facilities due to available properties and other land use considerations. In urban areas like Daly City , cultivation is predominantly restricted to indoor facilities.

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In recent years, the California cannabis cultivation sector has faced some unprecedented challenges. The saturation point of cannabis cultivation market has been exceeded, creating restricted space for both existing licensed growers and newcomers to the market. The surplus in cultivated cannabis has resulted in substantial drops in wholesale prices, posing a considerable challenge for small- scale cultivat ors to remain competitive. As a result, g aining access to the fiercely competitive cultivation sector in volves significant risks and requires substantial capitalization and a well- defined strategy to market their products. Nevertheless, the establishment of a comprehensive cannabis equity program can significantly contribute to overcoming barriers and facilitating a more seamless entry into the cultivation sector. This involves a combination of financial support, technical assistance, as well as innovative regulatory measures and strategic partnerships aimed at assisting equity brands in gaining access to ret ail shelf space.

Distribution:

Cannabis distribution refers to the procurement, sale, and transport of cannabis and cannabis products between licensees. A cannabis distribution license is required to move cannabis and cannabis products between cultivation, manufacturing or distribution premises and transport finished cannabis goods to retail premises. In addition, cannabis distributors can provide storage services to other licensed entities and facilitate the testing of cannabis products. In California, there are two types of distributor licenses: Distributor and Transport-only Distributor. The main difference between a regular Distributor and a Transport-only Distributor is that a Transport-only Distributor is not authorized to hold or store cannabis products or transfer finished cannabis goods to retail premises.

Manufacturing and Shared- Use Manufacturing
Cannabis manufacturing refers to the process of converting raw cannabis plant material into a variety of cannabis products, such as edibles, tinctures, oils, concentrates, and topicals. The manufacturing process involves extracting, processing, and refinin g the active compounds in cannabis, such as THC and CBD, in order to create a variety of cannabis products with different potencies, flavors, and effects. There are five different manufacturing license types, which are determined by the following factors: the activities performed, the chemicals used for extraction and post processing, and whether the manufacturer works in a shared -use facility. The different manufacturing license types issued are as follows:
 Volatile solvent manufacturing licenses: manufacturers who use volatile solvents, such as butane or propane, for extraction or post-extraction processing.  Non-volatile solvent manufacturing licenses: manufacturers who use non-volatile solvents, such as ethanol or Carbon Dioxide, for extraction or post-extraction

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processing. This also includes methods that employ mechanical or natural processes, such as pressing or heat and pressure, to extract cannabinoids from the cannabis plant.  Infusion licenses: manufactures who create cannabis products through infusion.

Infusion involves mixing cannabis extract or plant material with other ingredients to create a cannabis product.
 Packaging and Labeling licenses: manufacturers who can only package and label cannabis products.
 Shared-use licenses: multiple manufactures who share a single licensed manufacturing facility and equipment.

In 2018, the State of California Department of Public Health (CDHP) introduced a new manufacturing license known as "Type S - Shared Use Manufacturing." This license category is designed for manufacturers who operate within shared -use facilities, enabling multiple businesses to manufacture products from a single space. Drawing a parallel to the food industry, shared-use manufacturing is similar to shared-commercial kitchens where various businesses can rent a common facility to produce consumable goods such as brownies, cakes, cookies, and other items.

One notable advantage of shared-use manufacturing is its ability to lower the barrier to entry for individuals who may lack the capital to establish their own facilities. This is made possible by allowing businesses to rent space from larger manufacturing centers that are already in operation.

The concept of shared -use manufacturing holds the potential to diminish barriers further by enabling multiple businesses to collectively share the costs associated with building and maintaining a manufacturing facility. Notably, cities such as Oakland, Sacramento, and Long Beach have incorporated the Type S license into their equity programs.

Microbusinesses
A cannabis microbusiness is a vertically integrated cannabis business that can engage in multiple commercial cannabis activities, including cultivation (up to 10,000 total square feet), manufacturing (non -volatile/infusion), distribution, and retail. A microbusiness is required to conduct at least three of the four activities listed above.

This licensing structure not only provides valuable opportunities for cannabis equity entrepreneurs but also empowers owners and operators to manage a small- scale, vertically integrated cannabis business. Controlling the production process allows companies to make their products at a lower cost and cut out the middleman. Another advantage is the ability to streamline operations and cut overhead costs, including rent and utilities, by conducting multiple activities within the same premises or location.

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Cannabis Equity Assessment
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While the microbusiness model in the cannabis industry offers several advantages, it also comes with its own set of challenges. Firstly, the initial capital investment can be higher and more expensive compared to other business models. Additionally, operat ing a microbusiness necessitates operators specializing in all vertical sectors, both operationally and in adhering to regulations for all activities involved. One notable constraint is the limited availability of retail permits in the City, which restricts the ability of a microbusiness to include the retail component as part of its operations.

Onsite -Consumption Lounges
In California, Business and Professions Code Section 26200(g) permits licensed cannabis retail stores and microbusinesses authorized for retail sales to allow on -site consumption of cannabis.

This means businesses holding a State retail license or microbus iness license may permit customers to consume cannabis products on their premises. However, while state law allows on- site consumption, local jurisdictions retain the authority to regulate or prohibit such establishments. As a result, individual cities and counties may impose their own restrictions, limiting the expansion of consumption lounges in certain areas.

Although the State has not developed extensive regulations for cannabis consumption lounges, it has established key operational requirements to ensure safe and responsible business practices.

These include:
 Restricting access to individuals aged 21 and older to prevent underage consumption.  Ensuring cannabis consumption is not visible from any public or age-restricted area to prevent public disturbances.
 Prohibiting the sale and consumption of alcohol and tobacco on-site to avoid potential harmful interactions with cannabis.

Despite the legal framework, cannabis consumption lounges in California have struggled to gain popularity and sustain business operations due to regulatory constraints, including restrictions on the types of products they can offer.

On September 30, 2023, California Assembly Bill 1775 (AB 1775) was signed into law, expanding the allowable activities for cannabis consumption lounges. The bill aims to enhance consumer experience and improve business sustainability by permitting:
 Food and Beverage Sales: In designated consumption areas, retailers may prepare and sell non-cannabis food and beverages. However, these food and beverage products must remain separate from any cannabis products sold or consumed on-site to prevent contamination or commingling.

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 Live Entertainment: Licensed retailers and microbusinesses may host and sell tickets for live musical performances or other entertainment events in designated consumption areas, potentially increasing customer engagement and revenue opportunities.

The passage of AB 1775 represents a shift toward greater flexibility for on -site consumption businesses, allowing them to offer a more engaging and commercially viable experience.

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Cannabis Equity Assessment
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3. Barriers to Entry
Understanding the barriers to entry into the cannabis industry for populations and communities who have been disproportionately or negatively impacted by cannabis enforcement is an important factor when developing and implementing an equity program. The su ccess of a local equity program is dependent on the program’s ability to reduce and eliminate these barriers. This section examines the prominent barriers to entry, which can be summarized into the following categories: Financial, Technical, and Criminal.
 Financial barriers: These barriers can include the high costs of starting and operating a cannabis business, such as licensing fees, insurance, and other start-up expenses.

Affected communities may have difficulty accessing capital or may lack the financial resources to cover these costs.
 Technical barriers: These barriers can include a lack of knowledge about the cannabis industry and the regulatory environment, as well as a lack of access to resources and support to help aspiring cannabis entrepreneurs succeed.  Criminal barriers: These barriers can include the collateral consequences of cannabis- related arrests and convictions, such as barriers to employment, education, and housing, as well as ongoing criminalization of cannabis in some states. These consequences can make it difficult for affected individuals to enter the legal cannabis industry.

Addressing these barriers is crucial to promoting fairness and equity in the cannabis industry and helping affected communities succeed as entrepreneurs. Cannabis equity programs can provide financial assistance, business development resources, and technical assistance to help individuals and communities overcome these barriers and enter the legal cannabis industry. It is important for these programs to be designed and implemented in a way that addresses the specific needs and challenges faced by affected communities.

Financial Barriers
When starting any business, financial barriers are among of the most common obstacles entrepreneurs face due to the high costs of local and State licensing fees and the tax burdens, especially in the regulated cannabis industry. Financial barriers present an even bigger challenge for economically disadvantaged individuals who have been disproportionately impacted by cannabis enforcement.

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Cannabis Equity Assessment
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Access to capital or financing – start -up and operational Starting and operating a cannabis business often requires significant amounts of capital, including funds for licenses, equipment, product, and other expenses. For individuals or businesses who do not have access to capital, it can be difficult to enter the industry or succeed as entrepreneurs.

Many individuals and businesses seeking to enter the cannabis industry may have limited access to credit, which can make it difficult to secure the financing needed to start and operate a business. This may be due to a lack of credit history, collateral, or other factors.

Furthermore, existing federal banking regulations prevent most financial institutions from lending to cannabis businesses. Hence, cannabis businesses must rely on access to capital from personal wealth, friends and family, and investors for start -up costs. The impeded a ccess to banking services also negatively affects the ability for cannabis businesses to run as efficiently. This barrier is more pronounced for disproportionately affected communities.

Access to real estate
Access to real estate can be a significant barrier to entry for individuals and businesses seeking to enter the cannabis industry, particularly for those who do not have the financial resources to purchase or lease property. This barrier may be due to a variety of factors, including:
 High cost of real estate: The cost of real estate in many areas, particularly in urban areas, can be high, making it difficult for individuals or businesses with limited financial resources to afford the necessary space for a cannabis business.  Limited availability of real estate: In some areas, the availability of real estate that is suitable for a cannabis business may be limited, which can make it difficult for businesses to find the space they need.
 Zoning restrictions: Many localities have zoning laws that regulate the types of businesses that can operate in specific areas, and cannabis businesses may be restricted to certain areas or may be prohibited entirely. This can make it difficult for businesses to find suitable locations.
 Discrimination: Some landlords and property owners may be unwilling to rent or sell property to cannabis businesses due to negative attitudes towards the industry or concerns about legal risks. This can create barriers for businesses seeking to enter the cannabis industry.

By addressing these barriers and others, equity programs can help to promote fairness and equity in the cannabis industry and support the success of affected communities as entrepreneurs. This may include providing financial assistance to help with the cost of real estate, working to reduce zoning restrictions, or addressing discrimination in the real estate market.

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Licensing and regulatory fees
In addition to traditional business start -up (e.g., real estate, inventory, equipment, staffing, marketing, etc.) and operational costs, regulated cannabis business es typically have a higher financial burden from state and local municipalities’ licensing and regulatory fees. Licensing fees can be a significant barrier to entry for individuals and businesses seeking to enter the cannabis industry, particularly for those who do not have the financial resources to cover these fees.

Licensing fees may be required at various stages of the cannabis business process, including:
 Application fees: Many jurisdictions require applicants to pay a fee when they apply for a cannabis business license. These fees vary widely depending on the jurisdiction and the type of license being sought.
 Annual renewal fees: In many jurisdictions, cannabis business licenses must be renewed annually, and a fee may be required to do so. These fees can be a burden for businesses with limited financial resources.
 Compliance fees: In addition to licensing fees, some jurisdictions may also require cannabis businesses to pay fees to cover the cost of compliance activities, such as inspections and audits.

By addressing these barriers and others, equity programs can help to promote fairness and equity in the cannabis industry and support the success of affected communities as entrepreneurs. This may include providing financial assistance to help cover licensing fees and other costs or working to reduce or eliminate these fees for certain groups or individuals.

Technical Barriers
Technical barriers can refer to a range of challenges and obstacles that can prevent individuals or businesses from participating in the cannabis industry, even if they are otherwise qualified and capable. Some examples of technical barriers that may be en countered in the cannabis industry include:

Business Ownership
The cannabis industry is highly specialized and requires significant industry knowledge and access to a network of regulated vendors. Additionally, traditional business experience is needed such as business plans, payroll taxes, inventory management, etc. Lastly, the cannabis business marketplace has historically been secretive and underground resulting in information and experience flowing slowly to new interested parties. Again, these barriers are more pronounced for disproportionately affected communities.

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Legal and R egulatory
The cannabis industry is heavily regulated at the state and local level, and navigating these regulations can be complex and burdensome, particularly for those who are new to the industry.

This can include requirements related to licensing, zoning, and other areas of c ompliance. Some aspects of the cannabis industry, such as cultivation and manufacturing, require specialized knowledge and expertise. For individuals or businesses who do not have this expertise, it can be difficult to enter the industry or succeed as entrepreneurs.

Awareness
Awareness of the significant business opportunities within the legal and regulated cannabis marketplace continues to be a significant barrier. Moreover, too often, equity -based programs intended to support disproportionately affected communities’ access into the cannabis business have also struggled to be well-known within these communities. Additional outreach is needed.

Distrust of G overnment
Distrust in government can be a significant barrier to the success of cannabis equity programs, as it can discourage affected communities from participating in the programs or engaging with government agencies and officials. This distrust may be based on a range of factors, including historical and ongoing injustices, such as racial profiling and discrimination, and a lack of transparency and accountability on the part of government.

To address this barrier, it is important for cannabis equity programs to be designed and implemented in a way that is transparent, accessible, and fair, and that takes into account the specific needs and challenges faced by affected communities. This may include:

1. Involving affected communities in the design and implementation of the program:

Engaging with affected communities and seeking their input and feedback on the equity program can help to build trust and ensure that the program is responsive to their needs and concerns.

2. Being transparent about the program's goals, objectives, and funding sources: Providing clear and transparent information about the program's goals, objectives, and funding sources can help to build trust and accountability.

3. Establishing clear and fair eligibility requirements: Establishing clear and fair eligibility requirements for the equity program can help to build trust and ensure that the program is accessible and fair to all affected communities.

4. Providing ongoing support and assistance: Providing ongoing support and assistance to affected communities as they participate in the equity program can help to build trust and ensure that the program is successful in promoting fairness and equity.

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By addressing issues of distrust and building trust with affected communities, cannabis equity programs can be more effective in promoting fairness and equity in the cannabis industry.

Criminal Barriers
Criminal records (often exposed through background checks) significantly impede an individual’s ability to succeed in this industry, both as an owner and/or an employee. Former felons are often discriminated against by employers and in many cases earn a lower wage, get recommended for jobs less often, and tend to associate with individuals that also have fewer opportunities. In addition, a past criminal history can present significant challenges for cannabis operators such as accessing financing, loans, or even signing a lease.

These barriers can include the collateral consequences of cannabis -related arrests and convictions, such as barriers to employment, education, and housing. These consequences can make it difficult for affected individuals to enter the legal cannabis industry.

A criminal history, particularly a history of cannabis -related arrests and convictions, can have a significant impact on an individual's ability to enter the legal cannabis industry. This is because many states have laws that disqualify individuals with certain criminal convictions from obtaining licenses to operate cannabis businesses or from working in the cannabis industry.

In some cases, these laws may be based on a blanket ban on individuals with any criminal convictions, regardless of the nature or severity of the offense. In other cases, the laws may only disqualify individuals with certain types of convictions, such as c onvictions for violent crimes or drug offenses.

The impact of these laws can be especially significant for communities that have been disproportionately affected by cannabis criminalization, as they may have higher rates of arrests and convictions, even for low -level offenses. This can make it difficult for these communities to enter the legal cannabis industry, even if they are otherwise qualified and capable of operating successful businesses.

City of Daly City
Cannabis Equity Assessment
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4. Community Outreach and Feedback
In addition to the analysis conducted in Section 1 above, outreach and education are an essential element of this Equity Assessment as they help to ensure widespread dissemination and comprehension of the assessment’s findings by the communities that the study is intended to benefit. The Equity Assessment incorporated data collected through stakeholder interviews, public community meetings, and surveys, which helped provide policy recommendations to guide the City with the development of its equity program.

Online Survey
In July of 2024, an online survey was conducted to ensure broad community engagement. The survey, available in both English and Spanish, was promoted across various channels to encourage participation from residents throughout the City. Survey results reveal that 54 % of participants express a desire for the implementation of a cannabis equity program in Daly City. The complete findings of the survey, with responses from a total of 100 individuals, are detailed in Appendix B of this report.

Community Meetings
To better understand the perspective of the community in regard to developing a local cannabis equity program in the City, the City and SCI Consulting Group hosted two community meetings.

These meetings are detailed below:
 Community Meeting #1 (October 8, 2024, from 6:00-7:00pm at the Merced Room)  Community Meeting #2 (November 20, 2024, from 6:30-7:30pm via Zoom) The primary purpose of these meetings was twofold: to disseminate crucial information about the City's forthcoming Cannabis Equity Assessment and to actively seek public input and gather valuable perspectives on the community's needs, opportunities, and obstacles in the development of the Cit y’s Cannabis Equity Program. The meeting aimed to foster an inclusive environment where attendees could receive comprehensive details regarding the proposed Cannabis Equity Program. It served as a platform for the City , SCI Consulting Group, and Global Reach Strategies to share insights, guidelines, and objectives related to the program. Participants had the opportunity to gain an in -depth understanding of the City's vision, goals, and strategies for promoting social equity in the cannabis industry.

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Cannabis Equity Assessment
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Moreover, the meeting strived to encourage active engagement from the community by providing space for public comments and suggestions. Attendees were invited to share their thoughts, perspectives, and recommendations on ways the City could enhance and broaden the existing Cannabis Equity Program. This feedback was deemed vital to ensure that the progr am aligned with the needs and aspirations of the community it intended to serve. A recording of the second meeting was uploaded to the City's equity webpage.
3 Stakeholder Interviews
Key stakeholders in Daily City were engaged through one- on-one interviews, serving as the primary method for collecting essential data. The interviews aimed to gain insights into the community, identify opportunities and challenges, and pinpoint key areas of interest relevant to the City’s Cannabis Equity Program. Two rounds of stakeholder meet ings occurred between November 1, 2024, and November 30, 2024. In total, 10 interviews were conducted, involving stakeholders from diverse sectors:
 Current cannabis operators
 Prospective equity applicants
 Community members impacted by the War on Drugs
 Local non-profit organizations
 Local medical cannabis and cannabis equity activists
Summary of Feedback and Common Themes
The feedback provided by the interviewees underscores the multifaceted nature of challenges facing equity applicants in the cannabis industry. The interviewees collectively emphasize the need for a comprehensive and inclusive cannabis equity program that a ddresses financial, technical, and educational barriers, as well as support mechanisms for the sustainable success of equity applicants in the industry. Participants also stress the importance of clear eligibility criteria, direct grant funding, and accountability mechanisms to ensure the effectiveness and impact of equity programs.

3 https://dalycity.org/1238/Cannabis-Equity

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Cannabis Equity Assessment
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Barriers to Entry and Financial Challenges:

Financial challenges were consistently cited as major barriers to entry into the cannabis industry.

These include difficulties in securing funding, navigating complex financial processes, and overcoming capital barriers. Many equity applicants lack access to traditional banking due to federal cannabis restrictions, making them reliant on predatory lenders, high -interest loans, or personal savings—none of which are sustainable for long-term business operations. Strategies to alleviate these financial burdens , such as low -interest state- backed loans, local grant opportunities, and technical assistance, were key focuses in stakeholder feedback.

Smoke Shops and Illicit Market Competition
Stakeholders raised significant concerns about the sustainability of Daly City’s cannabis industry, citing multiple threats that could undermine equity and limit opportunities for new entrants .

Stakeholders highlighted the rapid proliferation of smoke shops and unlicensed retailers, many of which operate without the same regulatory oversight and compliance burdens imposed on legal cannabis businesses. These shops often sell cannabis products from the illicit market, which do not undergo lab testing, undercutting legal operators on price while posing public health risks.

Impact on Equity:
 Equity applicants face higher regulatory compliance costs, including security, taxes, and licensing fees, making it difficult to compete with unlicensed smoke shops that sell similar products at lower prices.
 The lack of enforcement against these unregulated businesses erodes consumer trust in legal cannabis and diminishes the financial viability of small, equity-owned dispensaries.  The presence of unregulated cannabis sales perpetuates the disparities that cannabis equity programs aim to address, as equity operators—many of whom were impacted by past criminalization—are now being outcompeted by businesses operating in a legal gray area.

Oversaturation of Retail Licenses in a Small Business Area Daly City’s relatively small commercial districts are seeing a growing number of cannabis retail licenses being issued, raising concerns about market saturation.

Impact on Equity:
 The oversaturation of retail licenses can create intense competition, forcing small and equity-owned businesses to struggle against better-funded, multi-state operators (MSOs).
 Excessive retail density may create negative public perception, leading to stricter regulations or moratoriums that disproportionately impact equity applicants.

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 The limited customer base in Daly City may not be sufficient to support a high volume of dispensaries, making it harder for small, locally owned businesses to generate sustainable revenue.

Land Use and Zoning Restrictions
Despite Daly City allowing cannabis businesses, restrictive zoning laws make it difficult for equity applicants to secure viable locations. Stakeholders noted that high rental prices and limited available spaces within permitted zones give landlords excess ive leverage, often demanding unreasonable lease terms or requiring businesses to pay a premium to secure a compliant location.

Impact on Equity:
 Equity applicants are often priced out of commercial spaces, forcing them into unfavorable leasing agreements or preventing them from opening at all.  Larger, well-capitalized cannabis companies can afford to outbid smaller operators for prime locations, reinforcing market inequities.
 Limited available properties push cannabis businesses into clustered zones, further intensifying the impact of oversaturation.

Recommendations and Equity -Focused Solutions :

Stakeholders emphasized the need for proactive measures to support cannabis equity applicants in overcoming these challenges. Proposed solutions include:
 Stronger enforcement against unlicensed smoke shops to ensure compliance with local cannabis regulations and prevent illegal sales that undermine legal businesses.  A balanced approach to retail licensing to prevent oversaturation while still fostering a competitive and diverse cannabis marketplace.
 Financial incentives for landlords to lease commercial spaces to equity applicants at fair market rates.
 Zoning reforms that expand available locations for cannabis businesses to prevent clustering and ensure equitable access to commercial real estate.

The stakeholder interviews revealed that while cannabis equity programs provide critical support, systemic challenges —including competition from the illicit market, an oversaturated retail environment, and restrictive zoning —must be addressed to ensure the long-term success of equity applicants in Daly City’s cannabis industry.

City of Daly City
Cannabis Equity Assessment
June 2025

5. Best Practices
The following section reviews equity programs in several jurisdictions, including Oakland, Los Angeles, San Francisco, Long Beach, and Sacramento. These reviews aim to compare equity programs and establish the best practices for equity programs. Each of these assessments highlight eligibility requirements for the equity program, available financial assistance for program participants, advantages related to licensing and permitting for participants, and other additional program benefits provided to equity applicants.

City of Oakland - Cannabis Equity Program (2017)
Eligibility Criteria
To qualify for the local equity program, a local equity applicant must:
 Be a resident of Oakland;
 Have an annual income at or less than 80 percent of Oakland Average Medium Income (AMI) adjusted for household size; and
 Either (i) has lived in any combination of Oakland police beats 2X, 2Y, 6X, 7X, 19X, 21X, 21Y, 23X, 26Y, 27X, 27Y, 29X, 30X, 30Y, 31Y, 32X, 33X, 34X, 5X, 8X and 35X for at least ten of the last twenty years or (ii) Was arrested after November 5, 1996 and convicted of a cannabis crime committed in Oakland.

Financial Assistance

Loan Program:

The Equity Loan Program provides Interest-free loans to eligible cannabis equity applicants. This program is funded through their cannabis tax revenue and loan repayments are used to support forthcoming loans for equity applicants. Loan disbursements are s tructured into several tiers, each designed to support applicants in building and maintaining viable businesses. It's important to note that in September 2020, the loan term was extended from four to six years, allowing for more flexibility. As of June 2022, the loan tier amounts were established as follows:
 Tier 1 - Establish the Business: $5,000
 Tier 2 - Become Compliant: $10,000
 Tier 3 - Open the Business: $15,000
 Tier 4 - Start Operations: $25,000
 Tier 5 - Grow the Business: $60,000

City of Daly City
Cannabis Equity Assessment
June 2025

 Tier 6 - Expand the Business: $35,000
Grant Program:

The City of Oakland's Cannabis Equity Grant Program utilizes funding from the Governor's Office of Business and Economic Development ("Go-Biz") to offer grants to entrepreneurs participating in Oakland's cannabis equity program. The grants are distributed in tiers, strategically structured to assist Equity Applicants in building sustainable and thriving businesses. If an Equity Applicant successfully fulfills the requirements of all five grant tiers, they become eligible to receive a maximum grant amount of $150,000 as outlined below:
 Tier 1 - Establish the Business: $5,000
 Tier 2 - Become Compliant: $10,000
 Tier 3 - Open the Business: $15,000
 Tier 4 - Start Operations: $25,000
 Tier 5 - Grow the Business: $60,000
 Tier 6 - Expand the Business: $35,000
Workforce Development Grant:

The City’s Workforce Development Grant Program provides up to $50,000 for each equity applicant that recruits, trains, and retains a qualified and diverse workforce. This program is funded through a $1,000,000 grant received from Go-Biz. As of January 8, 2021, all funds available have been allocated to applicants for the Workforce Development Grant Program.

Licensing and Permitting
 Fee waivers and exemptions.
 Permitting Ratio: equity and general cannabis permits are issued on a 1:1 ratio.

Additional Program Services
 Technical assistance and training
 Pro bono Legal Services
 Cannabis Incubator Program
 Shared Use Manufacturing Facilities
 Purchasing of Property Grants
San Francisco – Office of Cannabis - Equity Program (2017) Eligibility Criteria
To qualify as an Equity Applicant, you must:

City of Daly City
Cannabis Equity Assessment
June 2025

 Apply as a person, not a company.
 Have net assets below established limits for each household. This means you will not qualify as an Equity Applicant if your 1-person household has net assets over $193,500.  Be one of the following:
o the business owner
o own at least 40% of the business and be the CEO.
o own at least 51% of the business.
o a board member of a non-profit cannabis business where most of the board also qualify as Equity Applicants
o an individual with a membership interest in a cannabis business formed as a cooperative
 Meet at least three of the following six equity conditions:
o Have a household income below 80% of the average median income (AMI) in San Francisco for 2018.
o Have been arrested for or convicted of the sale, possession, use, manufacture, or cultivation of cannabis (including as a juvenile) from 1971 to 2016.
o Have a parent, sibling or child who was arrested for or convicted of the sale, possession, use, manufacture, or cultivation of cannabis (including as a juvenile) from 1971 to 2016.
o Lost housing in San Francisco after 1995 through eviction, foreclosure or subsidy cancellation.
o Attended school in the San Francisco Unified School District for a total of 5 years from 1971 to 2016.
o Have lived in San Francisco census tracts for a total of 5 years from 1971 to 2016 where at least 17% of the households had incomes at or below the federal poverty level.

Financial Assistance

Grant Program:

San Francisco’s “Step by Step” grant program provides grants to eligible equity cannabis businesses for startup and ongoing costs. Equity businesses can obtain grants for up to $55,000 - $75,000. Grant funds may be used for the following eligible expenses:
 Rent
 Regulatory compliance
 Legal assistance
 Application and regulatory fees
 Testing of cannabis
 Furniture
 Fixtures and equipment
 Capital improvements

City of Daly City
Cannabis Equity Assessment
June 2025

 Banking and escrow fees
 Accounting services
 Packaging and materials
 Marketing and advertising
 Tax liability of the cannabis business
Licensing and Permitting
 Fee waivers and exemptions.
 Priority processing of applications.

Additional Program Services
 Technical assistance and training
o Professional Development
o Security Consulting
o Permitting and Grants Services
 Pro bono Legal Services

City of Sacramento - Cannabis Opportunity Reinvestment and Equity (C.O.R.E.) Program (2018)
Eligibility Criteria
 Classification 1: Lives or have lived in a low-income household in Sacramento AND: a) Have been arrested in Sacramento for cannabis–related crime between 1980-2011 or b) An immediate family member who meets the description above.  Classification 2: Lived in a low-income household in the following zip codes for 5 consecutive years between 1980 and 2011: 95811, 95815, 95817, 95820, 95823, 95824, 95826, 95828, 95818, 95838 and 95832.
 Classification 3: Businesses with no less than 51% ownership by Classifications 1& 2 individuals.
 Classification 4: CORE Program Incubator
 Classification 5: Cannabis Social Enterprise with no less than 51% ownership by Classifications 1& 2 individuals.

Financial Assistance

Loan Program:

City of Daly City
Cannabis Equity Assessment
June 2025

The CORE Capital Loan Program is a 6-year, zero-interest loan program offered to cannabis equity businesses, funded by grants from Go -Biz. Repayments from loans are reinvested into the program to provide ongoing loan opportunities for CORE participants. The maximum initial loan amount for first -time applicants is $50,000, provided they have a signed business lease for a location or own a premise. A Verified CORE individual has the option to apply for $50,000 for each leased or owned location. Loan Applicants can request Follow-on Loans in $50,000 increments.

Grant Program:

The CORE Grant Program is a noncompetitive, tiered grant process where the amount allocated to each tier is determined by the number of qualified applicants. Grant awards range from a minimum of $10,000 to a maximum amount determined by the total number of valid applications received during the application period. The program is funded through grants funds received by Go-Biz.

Qualifying Categories/Tiers:
 Business with No BOP (Tiers 1-4)
o Tier One - Applied for CUP
o Tier Two - Has CUP (Approved or Existing – must be consistent with the use for proposed cannabis business)
o Tier Three - Building Permits Issued
o Tier Four - Certificate of Occupancy Issued
 Business with BOP (Tier 5)
o Funding can be used for any regulated cannabis business purposes:
inventory, equipment, rent, marketing, etc.

Licensing and Permitting
 Fee waivers and exemptions.
 Priority processing of applications.
 Exclusive access to any future storefront dispensary permits.

Additional Program Services
 Technical assistance and training
 Cannabis Incubator Program

City of Daly City
Cannabis Equity Assessment
June 2025

City of Los Angeles – Cannabis Social Equity Program (2017) Eligibility Criteria
To be verified as a Social Equity Individual Applicant, an applicant must satisfy two of the three following criteria:
 Cannabis arrest or conviction in California for any crime relating to the sale, possession, use, manufacture, or cultivation of Cannabis that occurred prior to November 8, 2016.  10 years of cumulative residency in a Disproportionately Impacted Area as defined by police reporting districts.
 Qualify as Low Income in the 2020 or 2021 calendar year.

Financial Assistance

Grant Program:

The Social Equity Entrepreneur Development Rental Assistance Grant Program (SEED Rental Grant Program), funded by Go -Biz, offers grants to equity applicants who have active cannabis applications and have secured leases or binding Letters of Intent. Retail equity applicants can receive $50,000 in grant funds distributed over three disbursements. Non-retail equity applicants may receive a single disbursement of $10,000 in grant funds.

Licensing and Permitting
 Fee waivers and exemptions.
 Priority processing of applications.
 Retail permit lottery
Additional Program Services
 Business, Licensing, Compliance and Technical Assistance  Pro-bono and Low-bono Legal Services Program
City of Long Beach – Cannabis Equity Program (2018)
Eligibility Criteria
A SEED equity applicant must satisfy the following criteria:
 Be a natural person; and

City of Daly City
Cannabis Equity Assessment
June 2025

 In the last year, have had an annual family income at or below eighty percent (80%) of the Los Angeles-Long Beach-Glendale (LA County) Area Median Income (AMI), and a net worth below $250,000; and
 Have lived in a Long Beach census tract for a minimum of five (5) years, either consecutively or in total, where at least fifty-one (51%) of current residents have a household income at or below eighty percent (80%) of the Los Angeles Area Median Income; and
 Meet at least one of the following criteria:
o During the period of 1971-2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of cannabis; or
o Has a parent, sibling, or child who, during the period of 1971-2016, was arrested for, convicted of, or adjudged to be a ward of the juvenile court for any crime under the laws of California or any other jurisdiction relating to the sale, possession, use, manufacture, or cultivation of cannabis.

Financial Assistance

Grant Program:

The Cannabis Equity Direct Grants Program, funded by GO Biz, offers grants to local cannabis equity entrepreneurs. Grants are distributed at four key stages of the business license process, aiding Equity Applicants in establishing sustainable cannabis businesses. The grant amount varies depending on the type of cannabis business and the size of the facility if an Equity Applicant fulfills all milestones' requirements.

Grant Milestones:
 Milestone #1: Securing Your Business Location
 Milestone #2: Drawing Up Plans
 Milestone #3: Starting Construction
 Milestone #4: Opening Your Business
Licensing and Permitting
 Fee waivers and exemptions.
 Priority processing of applications.
 Application Workshops
 Exclusive access to any future storefront dispensary permits.

City of Daly City
Cannabis Equity Assessment
June 2025

Additional Program Services
 Technical assistance and training
 Community Reinvestment Program
o Adult-use cannabis businesses must submit plans outlining their strategies for supporting and reinvesting in communities that have been most affected by the war on drugs.
 Cannabis Equity Employment Program
o Adult-Use Cannabis Businesses must have Equity Employees working for at least 40% of the total annual work hours at the establishment.

City of Daly City
Cannabis Equity Assessment
June 2025

6. Findings and Recommendations
The following section presents key findings from this Equity Assessment and presents recommendations regarding policy options to enhance and improve equitable access and ensure diversity and inclusion in the cannabis industry. To support policymakers in shaping and executing the City's cannabis equity program, we have formulated the subsequent recommendations.

1. Adopt Regulatory Changes to Provide Opportunities for Equity Ownership Finding: Limited Availability of Cannabis Licenses
The City has a limited number of retail cannabis licenses available, restricting opportunities for new businesses, particularly for equity applicants who face financial and systemic barriers to entry. Establishing a cannabis equity program requires intentional policy changes to ensure historically impacted individuals have meaningful access to ownership opportunities.

Recommendation
To promote equity and increase participation from impacted communities, the City should consider:
 Reserve all remaining retail licenses exclusively for equity applicants to ensure they have a fair opportunity to enter the market.
 Increase the total number of available retail permits to create more business opportunities while maintaining regulatory oversight.
 Expand cannabis business license categories beyond retail to cultivation, distribution, manufacturing, and microbusinesses, allowing equity applicants to participate in a broader range of industry sectors.

Finding: Restrictive Zoning Laws Limit Equity Applicants’ Access to Viable Locations While Daly City permits cannabis businesses, restrictive zoning regulations make it challenging for equity applicants to secure compliant and affordable locations. Current zoning policies limit available commercial spaces, leading to high costs, clustering in certain areas, and limited geographic accessibility for new businesses.

Recommendation
To ensure fair access to commercial real estate for equity applicants, the City should consider:

City of Daly City
Cannabis Equity Assessment
June 2025

 Implement zoning reforms to expand the number of eligible locations for cannabis businesses, preventing overconcentration and promoting equitable distribution.  Allow equity applicants access to additional zoning districts (e.g., mixed-use, light industrial, and commercial zones) to create more location options.  Adopt a "buffer zone exception" for equity applicants that provides flexibility in areas where zoning restrictions disproportionately impact accessibility.  Offer city-sponsored site acquisition assistance, such as financial incentives or city- owned properties designated for equity applicants.
 Prevent real estate speculation and predatory leasing practices by ensuring landlords cannot exploit zoning restrictions to charge excessively high rent to cannabis businesses.

2. Equity Program Eligibility Criteria
Finding: Equity program eligibility should prioritize individuals and communities disproportionately affected by cannabis enforcement, ensuring those most impacted have access to opportunities in the legal cannabis industry.

To ensure the Cannabis Equity Program effectively supports those disproportionately impacted by cannabis enforcement, eligibility criteria must be inclusive, data-driven, and designed to remove systemic barriers. A well-structured framework will prioritize individuals and communities most affected by cannabis criminalization, while maintaining accessibility and fairness. Based on the analysis of disproportionately affected communities, the City should consider the following eligibility criteria:
 Cannabis conviction or arrest history
 Low-income status
 Residency
 Ownership
 Eligibility Tiers
Recommendation: Conviction History
Prioritize individuals who have been arrested or convicted for cannabis-related offenses.  Minimum eligibility should include individuals with a past cannabis-related arrest or conviction.
 Expand eligibility beyond Daly City to include arrests or convictions anywhere within California to reflect the broad impact of criminalization.  Include immediate family members (parents, siblings, children, or spouses) of individuals with cannabis-related arrests or convictions, recognizing the intergenerational consequences of cannabis enforcement.

City of Daly City
Cannabis Equity Assessment
June 2025

Rationale:

Research confirms that Black and Hispanic/ Latino communities have been disproportionately criminalized. Restricting eligibility to Daly City arrests would exclude many individuals who were impacted but later moved due to displacement, gentrification, or economic hardship. Including family members ensures the program reaches those indirectly affected.

Recommendation: Low -income Status
Require applicants to meet a clearly defined low -income threshold to ensure resources benefit those most in need.
 Set eligibility at or below 80% of the Area Median Income (AMI)—a standard used by other cannabis equity programs across the state.

Rationale:

Establishing clear financial criteria prevents the program from being exploited by individuals who do not face significant economic barriers. A well-defined low-income threshold ensures resources are allocated to those who need them most.

Recommendation: Residency Consideration
Ensure the program benefits both current and former Daly City residents who have been impacted by cannabis enforcement and the War on Drugs.
 Residency requirements should consider both current and former Daly City residents who lived in disproportionately affected areas.
 Cumulative residency should be required rather than consecutive years, to avoid penalizing those displaced due to gentrification or economic instability.  Possible residency thresholds:
o 3 years minimum (Long Beach Model)
o 5 consecutive years (Sacramento Model)
o 10 years cumulative (Oakland Model)
 Residency eligibility could also be extended to those who:
o Attended school in Daly City
o Own a business in Daly City
Legal Consideration:

Recent lawsuits have challenged residency -based eligibility requirements in cannabis equity programs, arguing they violate the Dormant Commerce Clause of the U.S. Constitution.

City of Daly City
Cannabis Equity Assessment
June 2025

To mitigate legal risks while ensuring the Cannabis Equity Program prioritizes those most impacted by cannabis enforcement, the City should incorporate a Community Ties approach into the application process. Instead of requiring residency as a strict eligibility criterion, the program should implement a weighted point system that awards additional points to applicants with strong connections to Daly City’s disproportionately affected communities. Applicants can receive additional points for demonstrating one or more of the following:
 Current or past residence in affected areas
 School attendance in Daly City
 Business ownership in Daly City
Rationale:

A residency requirement alone may not fully capture the socioeconomic effects of cannabis criminalization. A more holistic approach incorporating community ties and socioeconomic factors ensures the program benefits the right people while reducing legal vulnerabilities.

Recommendation: Ownership Consideration
Implement an equity ownership percentage threshold that balances protecting equity applicants while maintaining investment flexibility.
 Many California cities require at least 51% equity ownership, ensuring that social equity participants retain control over their businesses and are not exploited by outside investors.
 However, requiring a strict 51% threshold may discourage outside investors who provide essential funding.
 Recommended ownership range: 40%-51%, allowing flexibility while ensuring equity applicants maintain decision-making power.
 Legal and business support should be provided to help equity applicants navigate ownership agreements and avoid predatory partnerships.

Rationale:

Setting ownership at 40%-51% ensures equity applicants benefit from the program while allowing flexibility in investment structures. Legal assistance will protect applicants from predatory investors seeking to take advantage of the program.

3. Equity Program Application and Permitting
Finding: Cannabis program’s application and permitting process can have financial and bureaucratic barriers.

City of Daly City
Cannabis Equity Assessment
June 2025

The equity program’s application and permitting process should be designed to maximize equity applicant success while incentivizing sustained participation and support. A structured, efficient process can help reduce financial and bureaucratic barriers, ensuring equitable access to cannabis business opportunities.

Recommendation:

To improve equity applicant success and incentivize ongoing support for equity applicants, the City can consider the following:
 Priority Application and Expedited License Processing:
o Establish a fast-track review process for equity applicants to reduce wait times and provide quicker access to the legal market.
o Implement a dedicated city liaison to assist equity applicants in navigating the permit process.

 Dedicated License Allocation:
o Reserve a set number of licenses exclusively for equity applicants. o Explore expanding available licenses (e.g., manufacturing, distribution, microbusinesses etc.) specifically for equity-eligible applicants.

 Provisional Approval:
o Allow provisional approval of licenses before securing a business location to help equity applicants attract investors and secure financing. o Provide a time-limited window for provisional permit holders to finalize site selection and obtain full approval.

 Amnesty Program:
o Implement an amnesty initiative that allows existing nonconforming cannabis businesses operating without permits to transition into the legal market under the equity program.
o Provide compliance assistance, reduced penalties, and business development support to help them meet regulatory requirements.

4. Equity Program Benefits and Services
Finding #5: Access to the regulated cannabis marketplace is hindered by financial, technical, and criminal barriers.

City of Daly City
Cannabis Equity Assessment
June 2025

Recommendation:

The City should implement comprehensive support services to remove entry barriers and promote equity applicant success. These services should address financial, administrative, business, and legal challenges through direct assistance and strategic partnerships.

Barriers Recommendations

Financial
• Establish a loan or grant program to assist with start-up capital and ongoing business expenses.
• Implement a fee deferral or waiver program to reduce
upfront licensing and application costs.
• Cover training and certification fees to help applicants meet industry requirements.

Administrative
Assistance
• Provide application assistance and permitting
workshops to guide equity applicants through the
licensing process.
• Offer cannabis regulatory compliance training to ensure businesses meet local and state requirements.
• Establish pro bono legal assistance programs for
business structuring, contracts, and compliance.

Technical
Assistance
• Creation of training curriculum or partnership with local academic institutions or businesses
• General business development training
• Cannabis-specific business training
• Cannabis employment training
• Apprenticeship/mentorship programs
• Leverage existing resources and partnerships
Criminal • Create a program for expungement services to assist those with past cannabis convictions to get their records

5. Stakeholder and Public Outreach and Education
Finding : Additional stakeholder and public outreach, along with educational efforts, can inform the development of the City's equity program, raise awareness, and diminish social stigma.

Effective stakeholder engagement and public education are crucial for the success of the City's cannabis equity program. Involving local stakeholders, particularly impacted communities, ensures the program is responsive to their needs. Additionally, historical distrust in government, social stigma, and misinformation about cannabis and cannabis business ownership continue to pose significant challenges. Addressing these issues through targeted outreach and education will increase program participation, restore trust, and destigmatize cannabis -related entrepreneurship.

City of Daly City
Cannabis Equity Assessment
June 2025

Recommendation:

The City should consider developing and implementing a comprehensive outreach and education strategy focused on raising awareness, restoring trust, and reducing stigma. Strategies to achieve these goals include:
 Community Outreach and Education:
o Host public meetings, workshops, and listening sessions to provide information about the cannabis equity program and address community concerns.
o Engage directly with impacted communities through local events, neighborhood organizations, and town halls.
o Develop culturally competent educational materials tailored to different communities, including multilingual resources.

 Media and Public Relations:
o Use press releases, media interviews, and feature stories to communicate the benefits and objectives of the equity program.
o Collaborate with local media outlets, radio stations, and newspapers to expand outreach efforts.
o Create public service announcements (PSAs) addressing misconceptions about cannabis businesses and the equity program.

 Partnerships and Collaborations:
o Work with community-based organizations, advocacy groups, and business networks to enhance outreach efforts and build trust.
o Partner with legal aid groups, workforce development programs, and small business support organizations to provide direct services to equity applicants.
o Involve trusted community leaders and influencers in outreach efforts to improve credibility and engagement.

 Social Media & Digital Outreach:
o Establish an official online presence (website, social media pages) to provide real-time updates and program information.
o Create educational videos, infographics, and testimonials from equity applicants to highlight success stories and promote participation. o Use targeted digital advertising to reach impacted communities and spread awareness of available resources.

City of Daly City
Cannabis Equity Assessment
June 2025

6. Raise Awareness of E xpungement Opportunities
Finding: A criminal record can severely restrict an individual’s ability to secure employment, obtain housing, apply for government assistance, and access financial opportunities.

In recognition of this, AB 1793 (Bonta Bill) was enacted in 2018, mandating an automatic review and sealing process for eligible cannabis -related convictions. This legislation aims to eliminate barriers for those impacted by outdated cannabis laws by making sealed records inaccessible to employers, landlords, and educational institutions.

To comply with AB 1793, the San Mateo County District Attorney’s Office launched the "Reduction of Marijuana- Related Convictions
4 " program, allowing individuals to petition for record expungement at no cost. However, lack of awareness remains a significant barrier, preventing many eligible individuals from benefiting from this legal relief.

Recommendation:

To increase participation in expungement efforts, the City should collaborate with the San Mateo County District Attorney’s Office and implement a comprehensive outreach strategy to ensure eligible residents are informed and empowered to clear their records.  Official Website and City Newsletter:
o Feature expungement resources prominently on the City’s website and newsletters, including step-by-step guidance on how to apply.

 Social Media Campaigns:
o Use Facebook, X, Instagram, and Nextdoor to share updates, testimonials, and success stories about expungement.
o Create video explainers and infographics to simplify the process for applicants.

 City Council Meetings:
o Include expungement program updates in City Council meetings and public forums.
o Partner with community organizations, faith-based groups, and advocacy groups to distribute expungement information

 Multilingual Outreach:

4 https://www.smcgov.org/da/reduction-marijuana-related-convictions

City of Daly City
Cannabis Equity Assessment
June 2025

o Provide translated materials in widely spoken languages to reach a broader audience.
o Offer in-person and virtual workshops to guide applicants through the expungement process.

7. Workforce Development Opportunities
Finding # 7 Disproportionately impacted face a shortage of training opportunities for high- quality, well-paying jobs in the cannabis industry.

The lack of industry -specific education and skills training creates a significant barrier to success for individuals seeking employment or business ownership. As the cannabis industry expands, developing a skilled workforce is essential to ensuring equitable participation and long -term career opportunities for those most affected by past cannabis enforcement.

Recommendation:

The City should implement workforce development initiatives that equip equity applicants with the training, skills, and employment opportunities needed to succeed in the cannabis industry.

Strategies to achieve this include:
 Equitable Hiring Requirements
o Require licensed cannabis businesses to hire a designated percentage of employees from equity-eligible populations to promote economic inclusion.

 Incentivized Equity Hiring
o Offer tax reductions, fee waivers, or other financial incentives to cannabis businesses that meet or exceed equity hiring benchmarks (e.g., Stockton’s incentive model).

 Creation of a Cannabis Training Program
o Develop a city-supported training initiative focused on cannabis cultivation, retail management, compliance, distribution, and manufacturing.

 Partnerships with Educational Institutions & Industry Experts o Collaborate with colleges, workforce development organizations, and industry leaders to provide specialized entrepreneurship and job training programs.
o Integrate business development training to help equity applicants navigate licensing, financial management, and operations.

City of Daly City
Cannabis Equity Assessment
June 2025

 Leverage Existing Cannabis Training Programs
o Connect equity applicants with statewide and national cannabis workforce training programs to maximize available resources and opportunities.

8. Equity Program Funding
Finding: The success and long-term effectiveness of the City’s Cannabis Equity Program depends on securing sustainable and sufficient funding.

Adequate resources are essential not only for providing direct financial support to equity applicants but also for establishing a well-trained and dedicated program infrastructure to assist applicants in navigating the complex application and permitting process. Many municipalities in California have encountered challenges due to insufficient funding and inadequate staffing, which have hindered the effectiveness of their equity initiatives.

Recommendation:

To ensure consistent funding for the Cannabis Equity Program, the City should pursue a multi - source funding strategy that combines state grants, local tax revenue, and alternative funding streams.
 Leverage State Grant Opportunities:
o Continue applying for funding through the GO-Biz Cannabis Equity Grants Program for Local Jurisdictions, which offers up to $3,000,000 in Type 2 grants for program administration and equity applicant support. o Ensure compliance with grant requirements, including the 1:1 matching funds contribution for awards exceeding $500,000 and restrictions on administrative and technical assistance allocations.
o Explore other state and federal grant opportunities that support economic development and social equity initiatives.

 Establish a Dedicated Cannabis Tax Fund:
o Allocate a portion of local cannabis tax revenue to sustain the equity program, reducing reliance on external grants.
o Structure tax allocations to cover equity applicant grants, fee waivers, workforce development programs, and technical assistance.

 Explore Alternative Funding Sources:
o Partner with private investors, social impact funds, and philanthropic organizations to create a community reinvestment fund that supports equity businesses.

City of Daly City
Cannabis Equity Assessment
June 2025

o Seek contributions from licensed cannabis businesses through voluntary contributions or community benefit agreements, incentivizing participation in equity initiatives.
o Explore public-private partnerships to fund technical assistance, job training, and business development programs.

9. Community Reinvestment
Finding: Community reinvestment can help to repair communities impacted by past cannabis - related criminalization.

The cannabis industry provides a unique opportunity to redirect revenue into the neighborhoods most affected by past enforcement policies. By strategically allocating cannabis -generated tax revenues, the City can promote social justice, economic growth, and long- term community development.

Recommendation:

To repair and revitalize disproportionately impacted communities, the City should implement a structured reinvestment strategy that includes:
 Direct Investment in Impacted Communities
o Education & Workforce Development: Fund scholarships, vocational training programs, and financial literacy workshops, particularly in cannabis-related industries.
o Healthcare & Mental Health Services: Support community health clinics, substance use treatment programs, and mental health resources. o Affordable Housing Initiatives: Allocate funds to expand housing options for low-income residents affected by past cannabis enforcement. o Reentry & Legal Support Services: Provide legal aid, job placement assistance, and record expungement services for individuals with prior cannabis convictions.

 Encouraging Cannabis Equity & Ancillary Business Partnerships o Support collaboration between cannabis equity applicants and ancillary businesses (e.g., construction, marketing, security, technology) that meet equity eligibility criteria.
o Provide incentives for cannabis businesses to contract with equity-eligible ancillary businesses, ensuring reinvestment stays within impacted communities.

City of Daly City
Cannabis Equity Assessment
June 2025

o Establish a Cannabis Equity Business Directory to connect equity cannabis operators with local, minority-owned ancillary service providers.

 Sustainable Community Reinvestment through Cannabis Tax Revenue o Dedicate a percentage of local cannabis tax revenue specifically for community reinvestment in disproportionately impacted areas. o Establish a Community Reinvestment Fund to finance long-term social equity initiatives and economic empowerment programs.

10. Program Data Collection , Monitoring, and Updates
Finding: Collecting data and maintaining ongoing monitoring of the equity program can contribute to enhancing and updating the program, thereby ensuring its effectiveness.

Recommendation:

Consider active monitoring and data collection of the equity program to gain insights into its performance, identify areas that may need improvement or adjustment, and make informed decisions to enhance the program's overall effectiveness.

Continue to monitor and update the equity program:
 Monitor and share progress of the Equity Program;
 Monitor and share trends in the emerging legal cannabis industry;  Identify areas for course correction and/or unexpected consequences; and  Demonstrate an ongoing commitment to data-informed decision-making and strategic planning to ensure Daly City’s strong transition to a legal cannabis industry The following data metrics can be incorporated into the application, permitting and permit renewal process:
 Number of equity applicants to apply
o Types of drug related offenses
o Income status
o Race
o Ethnicity
o Gender
o Sexual identity
o Residency status
o Ownership structure
 Workforce characteristics

City of Daly City
Cannabis Equity Assessment
June 2025

o Total number of employees
o Number of local employees
o Employment Status
 Equity program-specific data
o Number of applicants eligible for equity program
o Number and types of services provided to equity applicants o Number of equity program applicants to receive licenses

11. Smoke Shops and Illicit Market Competition
Finding: Smoke shops and illicit market competition exist in Daly City The presence of unregulated smoke shops and illicit cannabis operations poses significant challenges to the success of the regulated cannabis industry and equity program participants.

Illicit operators undercut licensed businesses by evading taxes, ignoring regulatory compliance, and selling untested products, creating an uneven playing field. Additionally, the proliferation of smoke shops selling unregulated cannabis products further complicates enforcement efforts and reduces consumer trust in the legal market.

Recommendation
To reduce illicit market competition and support equity cannabis businesses, the City should implement a multi-faceted enforcement and incentive-based approach:
 Strengthen Enforcement Against Illicit Cannabis Sales o Conduct proactive inspections and enforcement actions against smoke shops selling unlicensed cannabis products.
o Establish clear penalties and business license revocation policies for noncompliant smoke shops.
o Partner with state regulatory agencies and law enforcement to disrupt illicit supply chains and ensure coordinated enforcement efforts. o Improve public awareness campaigns about the dangers of illicit cannabis products and the benefits of purchasing from licensed operators.

 Improve Consumer Access to Licensed Cannabis
o Expand zoning flexibility to allow for more legal retail locations in underserved areas, reducing reliance on illicit sources. o Implement public education campaigns to encourage consumers to purchase from licensed dispensaries, emphasizing product safety, testing, and legal protections.

City of Daly City
Cannabis Equity Assessment
June 2025

o Consider a "verified retailer" certification or city-endorsed program that highlights legal, equity-owned businesses.

City of Daly City
Cannabis Equity Assessment
June 2025

Appendix A: The City of Daly City Cannabis Equity Website

City of Daly City
Cannabis Equity Assessment
June 2025

Appendix B: Cannabis Equity Assessment Survey (English)

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Cannabis Equity Assessment
June 2025

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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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Cannabis Equity Assessment
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City of Daly City
Cannabis Equity Assessment
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City of Daly City
Cannabis Equity Assessment
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Appendix C: Community Meeting Invitation s

City of Daly City
Cannabis Equity Assessment
June 2025

Reso. No. __________

RESOLUTION NO. ____________

RESOLUTION OF THE COUNCIL OF THE CITY OF DALY

ACCEPTING THE CITY OF DALY CITY CANNABIS EQUITY

ASSESSMENT

WHEREAS, the California Cannabis Equity Act of 2018 (“Equity Act”) established by Senate Bill 1294 allows for direct assistance to local jurisdictions’ cannabis equity programs that can, in turn, provide assistance to local equity applicants; and

WHEREAS, on April 1, 2025, the Governor of the State of California’s Office of Business and Economic Development (Go-Biz) awarded grant funds to the City of Daly City to conduct a cannabis equity assessment; and

WHEREAS, City Staff and SCI Consulting Group collaborated to conduct and prepare the Cannabis Equity Assessment to identify communities that have been disproportionately impacted by enforcement of cannabis-related laws and crimes within the City of Daly City (Exhibit A); and

WHEREAS, the completed Cannabis Equity Assessment presents findings and recommendations for the development of a cannabis equity program; and

WHEREAS, the City of Daly City supports the development of a local cannabis equity program that is designed to assist individuals who have been negatively impacted by the disproportionate enforcement of cannabis-related crimes by providing them assistance and opportunity to participate in the cannabis industry; and

NOW, THEREFORE, BE IT RESOLVED that the Council accepts the City of Daly City Cannabis Equity Assessment, as set forth in Exhibit A.

IN COUNCIL DULY PASSED this XX day of XX, 2025.

AYES:

NOES:

ABSENT:

ABSTAIN:

ATTEST: _________________________ APPROVED: ______________________________ City Clerk Mayor

APPROVED AS TO FORM: ________________________
City Attorney

Reso. No. __________

Exhibit A – Cannabis Equity Assessment

City Council Meeting Agenda ReportItem # _____
Attachments: 1. Jefferson Elementary School District Contractual Services Agreement 2025/26

2. All City Management Services, Inc Crossing Guard Agreement 2025/26 Meeting Date: June 23, 2025
Subject: Authorize Agreement with the Jefferson Elementary School District (JESD) for Cost Sharing of Crossing Guard Services through All City Management Services (ACMS) for School Year 2025/26
Recommended Action
Staff recommends Council approve an agreement with All City Management Services and the associated cost-sharing agreement with the Jefferson Elementary School District to provide crossing guard services.

Background
For several years the Police Department has agreed to share costs with the Jefferson Elementary School District (JESD) for crossing guard services at identified school sites. As in previous years, the Jefferson Elementary School District has agreed to cover 50% of the cost, with the City paying the remaining 50%.

Discussion
The Daly City Police Department has an agreement with ACMS, Inc. to provide crossing guard services at 13 JESD school site locations in Daly City. The total cost of the contract for the school year 2025/2026 with ACMS is not to exceed $262,127. The Jefferson Elementary School District has agreed to pay 50% of the program’s total cost, not to exceed $131,063.50. The ACMS contract and split cost agreement will be approved by the JESD School Board at an upcoming meeting.

Fiscal Impact
Funds are available in the Police Department Operating Budget to fund the $131,063.50 portion to be covered by the City.

Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully Submitted,
Cameron Christensen
Acting Chief of Police

MEMORANDUM OF UNDERSTANDING BETWEEN JEFFERSON ELEMENTARY

SCHOOL DISTRICT AND THE CITY OF DALY CITY FOR CROSSING GUARD

SERVICES
This Memorandum of Understanding entered into on July 1, 2025, between Jefferson Elementary School District (the ”District”) and the City of Daly City (the “City”), for the cost of providing Crossing Guard Services, in the amount not to exceed $262,127.

The parties, the District and the City, agree to equally share the cost of providing Crossing Guard Services at all K-8 schools in Daly City. The District and the City shall pay the provider, ACMS, the amount not to exceed $131,063.50 respectively.

IN WITNESS WHEREOF, the parties hereto have executed this agreement as follows:

Jefferson Elementary School District City of Daly City
(the “District”) (the “City”)
By:_______________________________ By: ____________________________ Signature Signature
____ Sandy Mikulik ____ _____Thomas J. Piccolotti______________ Printed Name Printed Name
Superintendent City Manager
Title Title
101 Lincoln Ave., Daly City, CA 94015 333 90 th Street, Daly City, CA 94015 Tel: (650) 991-1000 Tel: (650) 991-8127
Date: Date:

June 12, 2025 Cameron Christensen City of Daly City 333 90th St., Daly City, CA 94015 Dear Chief, It is once again the time of the year when many agencies are formulating their budgets for the coming fiscal year. Toward that end, please allow this letter to serve as confirmation of our interest in extending our agreement for Crossing Guard Services through the 2025-2026 school years. As you may know, hiring challenges have impacted all sectors of the labor market across the nation. Recently the United States Chamber of Commerce has published an article “Understanding America’s Labor Shortage”, which illustrates how thousands of jobs are published each month and yet a significant number of positions still remain unfilled. Essentially, labor force participations rates have still not returned to pre-COVID levels. This situation leads to heightened competition among businesses as they vie for the limited pool of available talent. ACMS has experienced these same challenges and in many cases, we’ve transitioned a significant number of employees from an older, primarily stable workforce to a younger mobile workforce. This new segment of our employees are more sensitive to current cost-of-living increases and are looking for higher wages and more hours. They often accept our position and work for days, sometimes weeks and if we’re lucky months then abruptly leave when they find higher pay. For these reasons, as well as cost increases in most segments of our business, we must appeal for an increase in our hourly rate for the upcoming 2025-2026 school years. To facilitate the calculation of the 2025-2026 annual cost of your Crossing Guard program, we have developed and included with this letter a Client Worksheet. This Worksheet details the new hourly billing rate and the overall estimated program cost, based on the number of sites and the hours worked at each site. We remain committed to providing a safe, cost-effective and professional School Crossing Guard Program and we hope you will find this new pricing acceptable. If you have any questions or need additional information, please contact me at (800) 540-9290. Take care. Sincerely, Baron Farwell, General Manager

All City Management Services Inc.

Billing Rate for 2025 - 2026: 37.34$

KEY:

Summer School
39 180 7020 $37.34 = $262,126.80
13 Sites at 3.00 hrs per day days/yr X Hourly Billing Rate 7,020.00 $262,126.80

TOTAL PROJECTED HOURS TOTAL ANNUAL PROJECTED COST
333 90th St.

For sites with no regularly scheduled early release days, use 180 regular days Traditional Calendar:

Daly City, CA 94015
Client Worksheet 2025 - 2026
Department:

City of Daly City
1004907
For sites with one regularly scheduled early release day/week, use 144 regular days and 36 minimum days Year Round Calendar
For schools with no regularly scheduled early release days, use 240 regular days For schools with Summer School sessions use 19 days
Sites with traditional calendar:

Total Hrs/day X
It is once again the time of the year when many agencies are formulating their budgets for the coming fiscal year. Toward that end, please allow this letter to serve as confirmation of our interest in extending our agreement for Crossing Guard Services

1 AGREEMENT FOR CROSSING GUARD SERVICES This AGREEMENT FOR CROSSING GUARD SERVICES (the “Agreement”) is dated June 12, 2025, and is between the CITY OF DALY CITY & JEFFERSON ELEMENTRY SCHOOL DISTRICT (hereinafter called the "Client"), and ALL CITY MANAGEMENT SERVICES, INC., a California corporation (hereinafter called the "Contractor"). WITNESSETH The parties hereto have mutually covenanted and agreed as follows: 1. This Agreement is for a period which commences on no later than July 1, 2025, and ends on June 30, 2026, and for such term thereafter as the parties may agree upon by written amendment to this contract. Service shall begin on a best availability basis until such a time as Contractor has hired, trained and deployed Crossing Guards to all sites requested by the Client. Client agrees to provide site locations for Contractor to then assign and deploy Crossing Guards. Contractor shall assume liability for only those sites agreed to by both Contractor and the Client by written amendment stating effective date of assignment. 2. The Contractor will provide personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a “Crossing Guard”. Contractor will perform criminal background checks and confirm employment eligibility through E-Verify on all prospective personnel. The Contractor is an independent contractor and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the Client. 3. The Client’s representative in dealing with the Contractor shall be designated by the City of Daly City & Jefferson Elementary School District. 4. The Client shall determine the locations where Crossing Guards shall be furnished by the Contractor. The Contractor shall provide at each designated location personnel properly trained as herein specified for the performance of duties as a Crossing Guard. The Contractor shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with the terms of this Agreement. 5. The Contractor shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location and agrees to provide immediate replacement. 6. In the performance of its duties the Contractor and all employees of the Contractor shall conduct themselves in accordance with the conditions of this Agreement and all applicable laws of the state in which the Services are to be performed. 7. Persons provided by the Contractor as Crossing Guards shall be trained in all applicable laws of the state in which the Services are to be performed pertaining to general pedestrian safety in school crossing areas.

2 8. Crossing Guard Services (the “Services”) shall be provided by the Contractor at the designated locations on all days in which school is in session in the area under Client’s jurisdiction. The Contractor also agrees to maintain communication with the designated schools to maintain proper scheduling. 9. The Contractor shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. This apparel must be appropriate for weather conditions. The Contractor shall also provide all Crossing Guards with hand-held Stop signs and any other safety equipment which may be necessary. 10. The Contractor shall at all times provide workers' compensation insurance covering its employees and shall provide and maintain liability insurance for Crossing Guard activities. The Contractor will provide to the Client a Certificate of Insurance naming the Client and its officials, officers and employees as additional insureds. Such insurance shall include commercial general liability with a combined single limit of not less than $1,000,000.00 per occurrence and in aggregate for property damage and bodily injury. Such insurance shall be primary with respect to any insurance maintained by the Client and shall not call on the Client’s insurance contributions. Such insurance shall be endorsed for contractual liability and personal injury and shall include the Client, its officers, agents and interest of the Client. Such insurance shall not be canceled, reduced in coverage or limits or non-renewed except after thirty (30) days written notice has been given to the Client. 11. Contractor agrees to defend, indemnify and hold harmless the Client, its officers, employees, agents and representatives, from and against any and all actions, claims for damages to persons or property, penalties, obligations or liabilities (each a “Claim” and collectively, the “Claims”) that may be asserted or claimed by any person, firm, entity, corporation, political subdivision or other organization arising out of the sole negligent acts or omissions, or willful misconduct, of Contractor, its agents, employees, subcontractors, representatives or invitees. a) Contractor will defend any action or actions filed in connection with any of said claims, damages, penalties, obligations or liabilities and will pay all costs and expenses including attorney's fees incurred in connection herewith. b) In the event the Client, its officers, agents or employees are made a party to any action or proceeding filed or prosecuted against Contractor for such damages or other claims arising out of or in connection with the sole negligence of Contractor hereunder, Contractor agrees to pay Client, its officers, agents, or employees, any and all costs and expenses incurred by the Client, its officers agents or employees in such action or proceeding, including, but not limited to, reasonable attorney's fees. c) In the event that a court determines that liability for any Claim was caused or contributed to by the negligent act or omission or the willful misconduct of Client, liability will be apportioned between Contractor and Client based upon the parties’ respective degrees of culpability, as determined by the court, and Contractor’s duty to indemnify Client will be limited accordingly. d) Notwithstanding anything to the contrary contained herein, Contractor’s indemnification obligation to Client for Claims under this Agreement will be limited to the maximum combined aggregate of Contractor’s general liability and umbrella insurance policies in the amount of $5,000,000 (Five Million Dollars).

3 12. Either party shall have the right to terminate this Agreement by giving sixty (60) days written notice to the other party. 13. The Contractor shall not have the right to assign this Agreement to any other person or entity except with the prior written consent of the Client. 14. The Client agrees to pay the Contractor for the Services rendered pursuant to this Agreement the sum of Thirty-seven Dollars and Thirty-four Cents ($37.34) per hour, per Crossing Guard during the term. Based on a minimum of thirteen (13) and upon a projected (7,020) hours of service the cost shall not exceed Two Hundred Sixty-two Thousand, One Hundred Twenty-seven Dollars ($262,127.00) per year. 15. Payment is due within thirty (30) days of receipt of Contractor’s properly prepared invoice. 16. Contractor may request a price increase during the term as a result of any legally-mandated increases in wages or benefits imposed in the state or municipality in which the Services are to be performed and to which Contractor’s employees would be subject. Contractor shall provide Client with 60 days-notice of its request to increase pricing. Client agrees to review and respond to said notice within 30 days of receipt. 17. The Client shall have an option to renew this Agreement. In the event this Agreement is extended beyond the end of the term set forth above, the compensation and terms for the Services shall be established by mutual consent of both parties. 18 This Agreement constitutes the complete and exclusive statement of the agreement among the parties with respect to the subject matter hereof and supersedes all prior written or oral statements among the parties, including any prior statements, warranties, or representations. This Agreement is binding upon and will inure to the benefit of the parties hereto and their respective heirs, administrators, executors, successors, and assigns. Each party hereto agrees that this Agreement will be governed by the law of the state in which the Services are to be performed, without regard to its conflicts of law provisions. Any amendments, modifications, or alterations to this Agreement must be in writing and signed by all parties. There will be no presumption against any party on the ground that such party was responsible for preparing this Agreement or any part of it. Each provision of this Agreement is severable from the other provisions. If any provision of this Agreement is declared invalid or contrary to existing law, the inoperability of that provision will have no effect on the remaining provisions of the Agreement which will continue in full force and effect. Sites covered for the 2025-2026 fiscal year are compensated 3.0 hours per day and are as follow: 1. E. Market/Hillside 2. Eastmoor/Mirada 3. Price/Bonnie 4. E. Market/Wyandotte 5. So. Gate/Palomar 6. Skyline/Arcadia 7. So.Gate/Westridge 8. Hanover/Whittier 9. Casa/El Dorado 10. John Daly/Park Plaza 11. John Daly/ Santa Barbara 12. Lakeshire Drive / Midvale Drive 13. Chester Street / Abbot Avenue [SIGNATURES FOLLOW ON NEXT PAGE]

4 IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year written below. CLIENT CONTRACTOR City of Daly City All City Management Services, Inc. By______________________________By_____________________________D. Farwell, Corporate SecretarySignature _____________________________ Print Name and Title Date____________________________ Date____________________________ Jefferson Elementary School District By_____________________________ Signature _____________________________ Print Name and Title Date____________________________ June 12, 2025

City Council Meeting Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Accept and Appropriate a $20,500 Check from Arevon Energy for Supporting Programming and Events to Benefit the Daly City Community through Recreation Services
Recommended Action
It is recommended the City Council accept a $20,500 check from the Arevon Energy and appropriate this amount for items shared below.

Background/Discussion
Arevon Energy, through their Corporate Good Will funding has chosen to provide funds in the following manner to support the Department of Recreation Services programming and events to benefit the community. The Build A Dream Scholarship program will receive $10,000 to support needs of Daly City youth, teens and Older Adult residents that qualify for the scholarship. The amount of $7,500 will go towards supplies for our Older Adults and teen programming at the Bayshore Community Center and $3,000 will help to sponsor a field trip for our Older Adults.

Fiscal Impact
These monies from Arevon Energy were not anticipated in the current Fiscal Year budget.

Appropriate the monies of $20,500 for expenditure in Fiscal Year 2024-25 in the following manner:
$10,000 into account number 61-000-000-2053, $7,500 into account number 01-131-133-4252 and $3,000 into account number 01-131-460-4234.

Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or City Council.

Respectfully submitted,
Denise Brown
Director

City Council Meeting Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Approve Addition of Board of State and Community Corrections (BSCC) Organized Retail Theft Grant Funded Community Services Officer Full- Time Equivalent Position
Recommended Action
Staff recommends the Council approve the addition of one (1) Full-Time Equivalent (FTE) Community Services Officer (CSO) position to the Police Department’s authorized positions, funded by the Board of State and Community Corrections (BSCC) Organized Retail Theft Grant.

Background
The Daly City Police Department applied for and was awarded the BSCC Grant totaling $8,033,830.00 on September 14, 2023, which was accepted by Council on September 25, 2023.

Funding for a full-time Community Services Officer position was a component of the grant.

Discussion
The BSCC grant was awarded to combat retail and motor vehicle component theft. As part of the grant, the police department requested a full-time CSO to assist in grant efforts. This CSO was hired September 3, 2024, and is fully funded through the grant, which is set to expire on December 31, 2026. This CSO position was intended to be an additional full-time equivalent (FTE) employee, to be added to the police department’s authorized staffing as grant funds cannot supplant the general budget. When grant acceptance was initially approved by Council on September 25, 2023, the aspect of this being an added position to authorized staffing was not specifically made clear.

At the conclusion of the grant the CSO position will be requested as a non-grant funded FTE, or it will be underfilled utilizing a vacant police officer position if there are no approved CSO vacancies available.

As part of the awarded grant, the Daly City Police Department seeks authorization to add one (1) FTE Community Services Officer position and maintain this position at Range D 030 of the Teamsters Local 856 Police Assistants salary schedule during the grant period.

Fiscal Impact
No additional funding requested. The $8,033,830.00 in BSCC Organized Retail Theft funds awarded September 14, 2023, funds the addition of one (1) FTE for the CSO through December 31, 2026.

Summary/Conclusion
Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Cameron Christensen
Acting Chief of Police

City Council Meeting Agenda ReportItem # _____
Attachments: 1. 2024-2025 Military Equipment Use Annual Report Meeting Date: June 23, 2025
Subject:Annual Report – Military Equipment Use for the Police Department Recommended Action
Staff recommends City Council review and approve the annual Military Equipment Use report as required per Assembly Bill 481.

Background
On May 23, 2022, City Council approved adding Chapter 9.56 to the Daly City Municipal Code, adopting a Military Equipment Use Policy, a legislative requirement of California Assembly Bill 481 (2021). The legislation requires the Police Department report annually to Council.

Discussion
California Government Code § 7072 requires the annual report outline the purpose, use, acquisition or disposal, costs associated to, and any complaints reported related to associated equipment. The approved equipment in use by the department is outlined in the attached annual report. The equipment is standard in law enforcement and is intended to provide options to address critical incidents efficiently and safely with the ability to de-escalate and protect all involved. The department does not have any equipment provided by the military, or from related surplus programs, and the equipment is not specifically designed for military use.

During this annual reporting period, no complaints were received related to or for the deployment of the associated equipment. The department replenished miscellaneous munitions as needed for training purposes and purchased replacement kinetic energy launchers as older versions were no longer serviceable. The limited use of related items was specific to training requirements and the service of high-risk search/arrest warrant operations, where use ensured a safer outcome for officers and the community.

Text of AB 481, related California Government Codes, the City Policy, the equipment list and this annual report upon approval will be available as required on the Police Department website.

Summary/Conclusions
Staff recommends the City Council review and approve the annual report as required by the Military Equipment Use Policy. Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Cameron Christensen
Acting Chief of Police

1 | P a g e

Daly City Police
Department Annual
Military Equipment Report
(July 2024 to June 2025)

2 | P a g e
California Assembly Bill 481 (AB 481) was signed into law on September 30, 2021 . California Government Code §§ 7070, 7071, and 7072 codify the requirements established by AB 481 for law enforcement’s acquisition, use, and funding of “military equipment.”

In enacting AB 481, the Legislature stated the public has a right to know about any funding, acquisition, or use of military equipment by state or local government officials to increase transparency, accountability, and oversight. The same applies to the public’s right to participate in any government agency’s decision to fund, acquire, or use such equipment.

The bill required law enforcement agencies that seek to continue the use of military equipment receive approval from their governing body. The Daly City Council approved DCPD Lexipol Policy 708 – Military Equipment and Daly City Municipal Code 9.56 – Military Equipment Use (Ordinance #1458) on May 23, 2022. The policy and inventory list are located on the Daly City Police Department’s website.

The approved equipment available for use by the Police Department is included in the attached annual report for quick reference. The equipment in use is standard in law enforcement and is intended to provide the department options to efficiently address critical incidents with the ability to de -escalate and protect all of those involved. The Police Department does not have any equipment provided by the military, or from related surplus programs, and the equipment possessed and in use is not equipment specifically designed for military use.

California Government Code § 7072 requires law enforcement agencies to prepare annually, a Military Equipment Report. The annual Military Equipment Report is required to contain the following:

1. A summary of how the military equipment was used and the purpose of its use;

2. A summary of any complaints or concerns received concerning the military equipment;

3. The results of any internal audits, any information about violations of the military equipment use policy, and any actions taken in response;

4. The total annual cost for each type of military equipment, including acquisition, personnel, training, transportation, maintenance, storage, upgrade, and other ongoing costs, and from what source funds will be provided for the military equipment in the calendar year following submission of the annual military equipment report;

5. The quantity possessed for each type of military equipment; and

6. If the law enforcement agency intends to acquire additional military equipment in the next year, the quantity sought for each type of military equipment.

This annual Military Equipment Report satisfies the reporting requirements outlined in California Government Code § 7072.

3 | P a g e

The following is a summary of the Military Equipment owned and maintained by the Daly City Police Department as defined by California Government Code §7070:

Item Quantity
Owned
Gov’t Code
Subsection

Unmanned Aircraft Systems (UAS/Drones)
7 7070(c)(1)

Unmanned Ground Vehicles (Mini Vantage Robot)
1 7070(c)(1)

Armored Personnel Carrier (Lenco Bearcat)
1 7070(c)(2)

Semiautomatic Patrol Rifles
60 7070(c)(10)

Bolt-Action Sniper Rifles
5 7070(c)(10)

Breaching Apparatuses (Breaching Shotgun)
2 7070(c)(7)

40mm Launchers
15 7070(c)(14)

Kinetic Energy Munitions (Less Lethal Shotguns)
40 7070(c)(14)

Chemical Agents (Tear Gas)
130

7070(c)(12)

Flashbang Grenades
51 7070(c)(12)

4 | P a g e

QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(1)
Description: Unmanned Aircraft Systems (UAS/Drones)
Quantity: 7
Capabilities: Remotely piloted aerial vehicles capable of providing live and recorded video images captured from aerial positions, including images enhanced by optical zoom lenses.

Expected lifespan: 5 years

Manufacturer's description:

DJI Phantom 4 Pro V2: Featuring a 1-inch CMOS sensor that can shoot 4K/60fps videos and 20MP photos.

The OcuSync 2.0 HD transmission system ensures stable connectivity and reliability, five directions of obstacle sensing ensure additional safety, and a dedicated remote controller with a built-in screen grants even greater precision and control. [1] A wide array of intelligent features makes flying that much easier. The Phantom 4 Pro V2.0 is a complete aerial imaging solution, designed for the professional creator.

The onboard camera features a 1 -inch 20MP CMOS sensor and a mechanical shutter, eliminating rolling shutter distortion. An advanced sensor and impressive processing capture every detail and provide the image data needed for advanced post-production.

The Phantom 4 Pro V2.0 camera has an optimized f/2.8 wide-angle lens, ensuring consistently detailed photos and videos that remain vivid and sharp while maintaining color accuracy.

DJI Mavic 3T: The Mavic 3 Thermal is a multi-purpose and compact drone built for public safety, inspection, search and rescue operations and more applications. Featuring up to 45 minutes of flight-time with an integrated camera, the Mavic 3 is portable yet powerful, exceeding data quality requirements for enterprise tasks.

DJI Matrice 30 Series: The Matrice 30 is a powerful yet portable drone made for public safety, inspection, and more. Featuring over 41 minutes of flight-time with an integrated camera, the M30 is small and mobile while still providing the image resolution needed for enterprise tasks. The Matrice 30 features an multi-sensor camera with high- resolution wide angle and zoom cameras, laser rangefinder, and advanced thermal camera (Matrice 30T only).

Purpose(s)/Authorized Use: UAS/Drones may be utilized to enhance the Department’s mission of protecting lives and property when other means and resources are not available or are less effective.

Current uses for the UAS/Drones include traffic collision investigations and/or urgent community safety needs. These devices are not used for general tracking or surveillance purposes.

Fiscal Impacts: Ongoing costs associated with UAS operation, software licensing, and maintenance is estimated to be approximately $8,000 per year. There are additional purchases anticipated for the upcoming fiscal year. These purchases will be discussed and presented to City Council.

Legal/Procedural Rules
Governing Use:

The use of unmanned, remotely piloted, powered ground vehicles potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to all applicable privacy laws and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure).

5 | P a g e
Required training: The Daly City Police Department provides internal training for officers before being permitted to pilot these items, as well as ongoing training to ensure proficiency. Pilots also receive FAA certifications and attend a CA POST approved pilot course. FAA requirements are met and followed, to include notification and reporting.

Other Notes: None
Government Code Section § 7072 – Annual Report:

Unmanned Aircraft Systems (UAS/Drones)
Summary of how the military
equipment was used and the
purpose of its use:

The UASs were deployed within the guidelines set forth in Lexipol Policy 612.

Examples of the general guidelines for deploying a UAS are outlined under Lexipol Policy 612.5 “Use of UAS.”

In total there were 404 training or pre-shift inspection flights, and there were 523 operational flight missions. The 523 operational flights were related to 235 separate incidents.

In summary these deployments were related to documenting investigative scenes, public safety, and life preservation missions, searching for wanted suspects, and incidents involving suspected explosive devices and hazmat materials. All uses of a UAS are thoroughly documented, which is also required by the FAA. Every flight is logged in the associated software, and includes the device, the operator, date/time, and GPS location
Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: Acquisition: $TBD – The purchase of additional UASs, will be presented through Council during an upcoming regularly scheduled meeting. Training: $12,425.69 Quantity: 7
Intention to acquire more: Given the success realized in operational missions towards community and officer safety, we are evaluating options to expand our UAS technology and subsequently expand the quantity and type of UAS equipment we have. This request will go before Council for review and approval prior to purchasing any new equipment.

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(1)
Description: Unmanned Ground Vehicles (Mini Vantage Robot) Quantity: 1
Capabilities: The Mini Vantage is a small robotic vehicle capable of being remotely navigated through a variety of environments to provide scene information and intelligence in the form of video and still images transmitted to the user.

Expected lifespan: Approximately 7-10 years

Manufacturer's description:

The 4.5-pound Mini Vantage is a throwable remote-controlled vehicle that can be quickly deployed by hand. It can maneuver over small objects, climb up to 8”, and it has a 2-hour runtime. It is only outfitted with a 120-degree color camera, allowing officers the ability to clear an interior space prior to entry. It has a 3-pound payload capacity, which would allow for the ability to deliver a cell phone to a subject for negotiation or communication purposes. The Mini Vantage is not, nor is it designed to be, equipped with any lethal or non-lethal force devices. This UGV would be accessible to patrol and tactical teams to reduce confrontations while responding to critical incidents.

Purpose(s)/Authorized Use: To enhance the safety of potentially dangerous situations by providing first responders with the ability to capture video and still images of hazardous areas prior to, or in lieu of, sending in personnel.

Fiscal Impacts: The Transcend Robotics, Mini Vantage, was purchased using Federal Asset Forfeiture at a one-time cost of $19,229. There are no ongoing costs associated with its operation and maintenance.

Legal/Procedural Rules
Governing Use:

The use of unmanned, remotely piloted, powered ground vehicles potentially involves privacy considerations. Absent a warrant or exigent circumstances, operators and observers shall adhere to all applicable privacy laws and shall not intentionally record or transmit images of any location where a person would have a reasonable expectation of privacy (e.g., residence, yard, enclosure).

Required training: The Daly City Police Department SWAT Team provides internal training for officers before they are permitted to pilot this robotic vehicle.

Other Notes: None

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Government Code Section § 7072 – Annual Report:

Unmanned Ground Vehicles (Mini Vantage Robot)
Summary of how the military
equipment was used and the
purpose of its use:

The Mini Vantage Robot was utilized twice. Each utilization was to clear a residential area where it was unknown if a suspect was hiding within. Both cases were related to crimes where a suspect used a firearm in an assault, one of which was a homicide.

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: One time purchase cost of $19,229, approved by Council on January 22, 2024. There is no annual cost for this equipment.

Quantity: 1
Intention to acquire more: No

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE DEPARTMENT GOVERNMENT CODE §7070(c)(2)
Description: Armored Personnel Carrier (Lenco Bearcat)
Quantity: 1
Capabilities: The Lenco Bearcat G1 is a tactical armored vehicle capable of transporting 8 - 10 officers and equipment during tactical and recovery operations, offering ballistic protection and other features to enhance the safety of involved personnel during potential high -risk tactical and recovery/rescue operations.

Expected lifespan: Varies on usage

Manufacturer's description:

The Lenco BearCat G1 is the standard tactical armored vehicle for special operations units within the US Law Enforcement community. Since the early 2000s, agencies such as LAPD, LASD SEB, NYPD ESU, Boston PD and hundreds of Federal, State and Local Law Enforcement agencies have made the BearCat G1 part of their standard operating equipment. The G1 has excellent on-road driving characteristics and maneuverability in tight urban settings. The large floor plan seats 8 – 10 fully equipped officers with a long list of tactical features only found on the Lenco BearCat.

Purpose(s)/Authorized Use: To enhance the safety and tactical advantage of officers and support personnel during potentially dangerous situations or high-risk tactical operations, as well as rescue missions.

Fiscal Impacts: The Lenco Bearcat G1 is owned and maintained by San Mateo County Office of Emergency Service. It was not purchased or funded by the Daly City Police Department, however it is stored and used primarily by officers of the Daly City Police Department. The only ongoing costs incurred by the Daly City Police Department are for fuel, which varies depending on usage.

Legal/Procedural Rules
Governing Use:

The Daly City Police Department recognizes the use of armored vehicles during law enforcement operations can potentially startle members of the public or create a sense of fear amongst the community. As such, the use of the armored vehicle is limited to SWAT Team operations or other law-enforcement responses or events that are considered high-risk. Special consideration is given in analyzing the risk factors associated with the intended operation or event with the need for the added protection offered by the armored vehicle. During specific community events, the armored vehicle can be used as a static display when appropriate and when authorized by the SWAT Commander. Drivers shall adhere to all applicable State and Local laws governing emergency vehicle use.

Required training: The Daly City Police Department SWAT Team provides internal training for officers before they are permitted to drive the armored vehicle.

Other Notes: None

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Government Code Section § 7072 – Annual Report:

Armored Personnel Carrier (Lenco Bearcat)

Summary of how the military
equipment was used and the
purpose of its use:

The Daly City SWAT Team utilized the Lenco BearCat seven times. All the utilizations occurred when responding to high-risk active threats or serving search warrants for crimes involving violence and/or firearms.

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this military equipment.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: Daly City does not incur maintenance costs as it is a County mutual asset. The only operating cost is approximately $300 for fuel through the Corporation Yard.

Quantity: 1
Intention to acquire more: No

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(10)
Description: Semiautomatic Patrol Rifles
Quantity: 60
Capabilities: The Colt M4 Carbine (AR-15) semi-automatic rifle fires 5.56 x 45mm (.223 caliber) ammunition and is capable of firing at greater distances and with greater accuracy than department issued pistols.

Expected lifespan: Approximately 10 years or 20,000 rounds

Manufacturer's description:

Colt M4 Carbine (AR-15): Built for the demanding use of those who protect our communities every day, the Colt M4 Carbine Patrol Rifle is the next evolution in the world's most dependable, thoroughly field-tested patrol rifle. It is a lightweight, magazine-fed, gas-operated semi-automatic rifle. It is the semi-automatic version of the M16 rifle sold for the civilian and law enforcement markets in the United States. The Colt M4 Carbine Patrol Rifle reestablishes the Colt AR-15® as the finest tool for local, regional, and national law enforcement agencies.

Purpose(s)/Authorized Use: Officers may deploy the patrol rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed. Examples of some general guidelines for deploying the patrol rifle may include but are not limited to:
1) Situations where the officer reasonably anticipates an armed encounter. 2) When an officer is faced with a situation that may require accurate and effective fire at distances beyond the effective range of a duty pistol. 3) Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
4) When an officer reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.
5) When an officer reasonably believes that a suspect may be wearing body armor. 6) When authorized or requested by a supervisor.

Fiscal Impacts: Maintenance is conducted by trained and authorized Departmental staff. The ongoing costs for ammunition will vary.

Legal/Procedural Rules
Governing Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force and Firearms.

Required training: Officers must successfully complete a CA POST certified 24-hour patrol rifle course as well as annual Department firearms training and qualifications as required by law and policy.

Other Notes: These rifles are standard issue service weapons for our officers and therefore exempt from this Military Equipment Use Policy per CA Gov’t Code §7070 (c)(10). They have been included in this document in an abundance of caution and in the interest of transparency.

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Government Code Section § 7072 – Annual Report:

Semiautomatic Patrol Rifles

Summary of how the military
equipment was used and the
purpose of its use:

The rifles were deployed within the guidelines set forth in Lexipol Policy 428.

Examples of the general guidelines for deploying the patrol rifle are outlined above under the “Authorized Use” section.

There were no utilizations of the Semiautomatic Patrol Rifles involving the use of deadly force.

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD audited and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost:

Acquisition: $0 (no new rifles were acquired)
Training/Supplies: $24,007.31 (Ammunition/Parts)
Funding Source: Police Budget
Quantity: 60
Intention to acquire more: No

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(10)
Description: Bolt-Action Sniper Rifles
Quantity: 5
Capabilities: The Remington 700 Sniper Rifle is a bolt-action, precision-fire weapon system that fires

7.62 x 51mm (.308 caliber) ammunition. It is capable of firing at greater distances and with great accuracy than Department issued patrol rifles. The five rifles owned by the Department are outfitted with high-powered adjustable magnification optics for observation and targeting.

Expected lifespan: Approximately 15 years or 10,000 rounds

Manufacturer's description:

Remington Model 700: The Remington® Model 700® Bolt- Action Rifle is enhanced to hit targets at long ranges. At the heart of this specialized long-range rifle is the famous Model 700 action that has been proven for reliability and precision accuracy in combat with the U.S. Army's M24 sniper rifle. The Model 700 Long Range rifle comes with a tactical stock made of solid urethane combined with aramid, graphite, and fiberglass.

The barreled receiver is bedded with an aluminum block, and the heavy-contoured barrel is free-floated, providing excellent accuracy and minimal shift in zero caused by changes in the environment. The non-reflective stock and exterior metal blend in with a wide range of environments. The 2-position safety at the rear of the action is quick to operate with the thumb and can also be gripped with the forefinger and thumb and moved extra quietly to the fire position. The Remington Model 700 Long Range Bolt- Action Rifle comes drilled and tapped for scope mounts. An extra sling swivel stud on the fore-end provides an attachment point for a bipod.

Purpose(s)/Authorized Use: This rifle is authorized for use by trained precision rifle operators, who are a component of the SWAT Team. Operators may deploy this rifle in any circumstance where the officer can articulate a reasonable expectation that the rifle may be needed, which may include, but are not limited to:
(1) Situations where the officer reasonably anticipates an armed encounter. (2) When the officer is faced with a situation that may require accurate and effective fire at long range.
(3) Situations where an officer reasonably expects the need to meet or exceed a suspect's firepower.
(4) When an officer reasonably believes that there may be a need to fire on a barricaded person or a person with a hostage.
(5) When an officer reasonably believes that a suspect may be wearing body armor. (6) When authorized or requested by a supervisor.

Fiscal Impacts: The five rifles were initially purchased by the Daly City Police Department prior to 2005 for approximately $5,000. In 2016, the Department had all five rifles rebuilt for approximately $10,100 after exceeding their lifespan of 10,000 rounds. In 2020, the Department purchased five Leupold scopes for the rifles for approximately $9,250. Basic maintenance is conducted by trained and authorized Departmental staff. The ongoing costs for ammunition will vary.

Legal/Procedural Rules
Governing Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force and Firearms.

Required training: In addition to the Patrol Rifle Course and Basic SWAT Operator training, SWAT Snipers must successfully complete a CA POST-certified Basic Sniper Course and regular SWAT Sniper training and qualifications as required by law and policy.

Other Notes: None

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Government Code Section § 7072 – Annual Report:

Bolt-Action Sniper Rifles
Summary of how the military
equipment was used and the
purpose of its use:

There were no utilizations of the bolt-action Sniper Rifles involving the use of deadly force. The specialized unit that utilizes these rifles trains monthly, and the only associated cost is ammunition for training needs.

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: Acquisition: $0 (no new rifles were acquired) Training/Supplies: $7,954.95 (ammunition)
Quantity: 5
Intention to acquire more: No

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(1)
Description: Breaching Apparatuses (Breaching Shotgun)
Quantity: 2
Capabilities: The Royal Arms Breaching Shotgun is capable of firing 12-gauge shotgun ammunition.

It is a compact and modified version of the Remington 870 platform designed for breaching purposes. It is specifically intended to fire frangible compressed copper slugs to breach doorway locking mechanisms while minimizing overpenetration or risk of injury to persons near the doorway or lock.

Expected lifespan: Approximately 15 years

Manufacturer's description:

Royal Arms Breaching Shotgun starts out with the tried-and-true Remington 870 Police Model 12 Ga Shotgun as its base. We then completely modify it with our custom CNC machined parts to be the ultimate Breaching Shotgun. Royal Arms invented the Breachers and Breaching shotguns, why settle for an imitation or knock off when you can buy the best American Made Breaching Shotgun for all Tactical Operators and discerning individuals.

Royal Arms Tesar-2 Black Cap Slugs: 425 grain compressed copper slug, frangible.

Slug Material: Copper powder. Velocity: 1,525 feet per second. Use: For metal doors, locks, and hinges. Defeats: Heavy locks, dead-bolts and hinges (solid oak – steel doors).

Purpose(s)/Authorized Use: The breaching shotguns are intended for use as a breaching option during tactical entry into a dwelling or other enclosed space when other breaching options have failed, or when authorized by a supervisor.

Fiscal Impacts: The initial cost of the two Royal Arms Breaching Shotguns were $2,300. Maintenance is conducted by trained and authorized Departmental staff. The ongoing costs for breaching munitions will vary.

Legal/Procedural Rules
Governing Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force and Firearms.

Required training: Officers must complete a CA POST certified Tactical Breacher Course as well as ongoing Department SWAT Training.

Other Notes: None

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Government Code Section § 7070(c)(1) – Annual Report:

Breaching Apparatuses (Breaching Shotgun)
Summary of how the military
equipment was used and the
purpose of its use:

There were no utilizations of the Breaching Shotguns.

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost:

Acquisition: $0 (no new shotguns were acquired)
Training/Supplies: $0
Quantity: 2
Intention to acquire more: No

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(14)
Description: 40mm Launchers and Kinetic Energy Munitions Quantity: 15
Capabilities: The Penn Arms CTS multi-shot 40mm launcher is capable of firing 40mm kinetic energy munitions, also commonly referred to as specialty impact munitions (SIM), which are less- lethal projectiles. The 40mm launcher is also capable of firing 40mm chemical agent munitions, commonly referred to as “tear gas” or CS gas. Refer to “Tear Gas and Chemical Agents” page for further details on these munitions. The Daly City Department has outfitted the launchers with Aimpoint optics for aiming and targeting purposes.

Expected lifespan: Approximately 15 years

Manufacturer's description:

The Penn Arms CTS multi-shot 40mm launchers is a pump action advance magazine drum launcher, with a six shot capacity and rifled barrel.

The approved 40mm impact munition for patrol use is the CTS Tactical 4557 40mm Point Control Impact Munitions. This lightweight, high-speed projectile incorporates a plastic body and closed cell neoprene material which is spin stabilized via the incorporated rifling collar and the 40mm launcher's rifle barrel. The round uses smokeless powder as the propellant and has velocities that are extremely consistent.

The CTS Tactical 4556 40mm Frangible Impact OC powder are designed to disperse marking powder on and around the target following deployment. The frangible Impact+ munitions are spin-stabilized projectile and deliver multi-effects of blunt trauma and dispersal of irritant powder on and around target. Although it is extremely accurate and consistent, accuracy is dependent on the launcher, using open sights vs. an improved sight, environmental conditions, and the operator. Effectiveness depends on many variables, such as distance, clothing, stature, and the point where the projectile impacts.

Purpose(s)/Authorized Use: The 40mm Launchers, kinetic energy munitions, and chemical agent munitions are intended for use as a less-lethal force response option.

Fiscal Impacts: Replacement 40mm launchers were purchased this last fiscal year along with optics.

Maintenance is conducted by trained and authorized Departmental staff. The ongoing costs for munitions will vary.

Legal/Procedural Rules
Governing Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force and Firearms.

Required training: Officers must complete a department 40mm course as well as regular training and qualifications as required by law and policy. Chemical agent munitions for the 40mm launcher are only authorized for use by Department SWAT team members and Crowd Control Unit personnel after completion of Department training by CA POST certified Chemical Agent Instructors.

Other Notes: The Daly City Police Department presently employs four trained and qualified Chemical Agent Instructors who are authorized to train SWAT Team members and Crowd Control Unit personnel on the use of chemical agent munitions with the 40mm launcher.

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Government Code Section § 7070(c)(14)– Annual Report:
40mm Launchers

Summary of how the military
equipment was used and the
purpose of its use:

There were three utilizations of the 40mm Launchers. The 40mm munitions were deployed within the guidelines set forth in Lexipol Policy 308. Examples of the general guidelines for utilizing 40mm munitions are outlined under Lexipol Policy 308.6 “Impact Munitions.”

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: Acquisition: $33,768.34-Ten new launchers were acquired to replace the previous models.

The previous launchers are no longer being produced and replacements parts are no longer being manufactured.

Training/Supplies: $5,299.09 (ammunition)
Quantity: 15
Intention to acquire more: No

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(14)
Description: Kinetic Energy Munitions (Less Lethal Shotguns) Quantity: 40
Capabilities: The Remington 870 Police Magnum is capable of firing 12-gauge shotgun ammunition.

These shotguns were previously in service at the Daly City Police Department as lethal force options but were converted into less-lethal shotguns using Hogue 870 conversion kits. All Remington 870 shotguns currently owned by the Department are less-lethal shotguns, 37 of which are used to deploy bean bag rounds only. The bean bag shotgun is capable of firing 12-gauge kinetic energy munitions, which are less-lethal projectiles.

Specifically, the kinetic energy munitions used in these shotguns are drag stabilized bean bags that are propelled out of a 12-gauge cartridge. Two of the less-lethal shotguns have been equipped with a launching apparatus on the muzzle that enables certain less-lethal chemical agents to be deployed from the shotgun, described elsewhere under “Tear Gas and Chemical Agents.”
Expected lifespan: Approximately 15 years

Manufacturer's description:

The Remington Model 870 Police Magnum is a pump-action 12- gauge shotgun. Featuring an ultra-durable parkerized matte finish, synthetic stocks, 18 -inch barrel with front sight and a 4-round magazine.

Hogue 870 Conversion Kit: Hogue rubber grips are molded from durable synthetic rubber that is neither spongy nor tacky yet provides a soft recoil absorbing feel without affecting accuracy. This modern rubber requires a completely different molding process than ordinary neoprene, resulting in a superior grip. The flexibility of our materials and molding process has allowed us to produce rubber grips with features that outperform all other makes.

The approved 12-gauge munitions for patrol use is the The CTS Tactical 12-Guage Bean Bag “Super-sock”,. Round is comprised of a translucent 12-Gauge shell loaded with a 40 gram, tear-shaped bag made of shot filled ballistic fiber. The 12-Gauge Bean Bag Round utilizes smokeless powder as a propellant.

Purpose(s)/Authorized Use: The bean bag shotguns and kinetic energy munitions are intended for use as a less- lethal force response option.

Fiscal Impacts: The current Remington 870 Police Magnum shotguns need replacement due to normal wear and tear. A purchase order to replace all current shotguns was approved on 02/06/2025. The department is currently awaiting the order to be fulfilled.

Legal/Procedural Rules Governing
Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force and Firearms.

Required training: Officers must complete a Department Less-lethal Shotgun course as well as regular training and qualifications as required by law and policy. Launchable chemical agent canisters for the less-lethal shotguns outfitted with the appropriate launching apparatus are only authorized for use by Department SWAT team members and Crowd Control Unit personnel after completion of department training by CA POST certified Chemical Agent Instructors.

Other Notes: The department currently has four trained and qualified Chemical Agent Instructors who are authorized to train SWAT Team members and Crowd Control Unit personnel on the use of chemical agent munitions with the less lethal shotgun.

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Government Code Section § 7070(c)(14) – Annual Report:

Kinetic Energy Munitions (Less Lethal Shotguns)
Summary of how the military
equipment was used and the
purpose of its use:

There were two utilizations of impact munitions from the Less Lethal Shotguns. The less lethal shotguns were deployed within the guidelines set forth in Lexipol Policy 308. Examples of the general guidelines for utilizing less lethal shotguns are outlined under Lexipol Policy 308.6 “Impact Munitions.”

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding this item.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: Acquisition: $22,172.66 (Replacement shotguns are ordered) Training/Supplies: $7,508.86
Quantity: 40
Intention to Acquire More: No intention to acquire additional units, only replace those utilized in a training environment.

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(12)
Description: Chemical Agents (Tear Gas)
Quantity: 130
Capabilities: Chemical agents, sometimes referred to as “tear gas” or riot control agents, are less-lethal chemical compounds that temporarily induce discomfort to an individual in the form of one or more of the following: Irritation to the skin, eyes, mouth, throat, and lungs. The goal of which is to gain compliance, dispersal, or direct the movement of one or more individuals.

The Daly City Police Department owns multiple types of chemical agents in various forms.

The units are expendable items; therefore, the quantities will vary. Each chemical agent type has different capabilities. The types and manufacturers are as follows:
(1) Defense Technologies Spede-Heat CS gas canister, 81.2g, 20-40 second burn time (2) Defense Technologies Flameless Tri-Chamber CS gas canister, 20.0g, 20-30 second burn time
(3) Combined Tactical Systems Indoor Baffled CS gas canister, 25.0g, 20-40 second burn time, launchable through outfitted less-lethal shotgun apparatus, requires specific blank 12 gauge launching cartridge manufactured by Combined Tactical Systems (4) Defense Technologies 40mm Liquid Ferret Round, liquid CS projectile dispersed upon impact, 8.0g, launchable though 40mm launcher.
(5) Defense Technologies Pocket Tactical CS gas canister, 20.0g, 20-40 second burn time (6) Defense Technologies Maximum Smoke HC (Hexachloroethane) grenade, smoke screen, 1 ½ - 2-minute burn time
(7) Defense Technologies Triple-Chaser, CS gas canister, 90.7g, 20-30 second burn time Expected lifespan: Varies on weather and storage conditions.

Manufacturer's description:

Defense Tech Spede-Heat CS canister: The Spede-Heat™ CS canister is a high volume, continuous burn it expels its payload in approximately 20-40 seconds. The payload is discharged through four gas ports on top of the canister, three on the side and one on the bottom. This launchable canister is 6.12 in. by 2.62 in. and holds approximately 2.9 oz. of active agent.

Defense Tech Flameless Tri-Chamber CS canister: The design of the Tri-Chamber Flameless CS canister allows the contents to burn within an internal can and disperse the agent safely with reduced risk of fire. The canister is designed primarily for indoor tactical situations to detect and/or dislodge a barricaded subject. This grenade will deliver approximately .70 oz. of agent during its 20-25 seconds burn time. The Tri-Chamber Flameless canister can be used in crowd control as well as tactical deployment situations by Law Enforcement and Corrections but was designed with the barricade situation in mind. Its applications in tactical situations are primarily to detect and/or dislodge barricaded subjects. The purpose of the Tri-Chamber Flameless canister is to minimize the risks to all parties through pain compliance, temporary discomfort, and/or incapacitation of potentially violent or dangerous subjects. The Tri-Chamber Flameless canister provides the option of delivering a pyrotechnic chemical device indoors, maximizing the chemicals’ effectiveness via heat and vaporization, while minimizing or negating the chance of fire to the structure. The Tri-Chamber Flameless canister is NOT to be launched utilizing a launching cup.

Combined Tactical Systems Indoor Baffled CS canister: Pyrotechnic canister designed for

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indoor use delivering a maximum amount of irritant smoke throughout multiple rooms with minimal risk of fire.

Combined Tactical Systems 12 gauge Launching Cartridge: The Model 2600 Launching Cartridge is a 12-gauge cartridge much shorter than standard full-sized 12-gauge cartridges. Therefore, to prevent weapon malfunctions, each cartridge must be manually loaded into the chamber for each shot.

Effective range is dependent on the launching cup, launcher, and weight of munitions being launched. The baseline for performance of a Model 2600 Launching Cartridge is that it will launch a Model 9230 CS canister a minimum of 100 yards (91M), with cylinder bore and 18" bbl.

Defense Technologies 40mm Liquid Ferret Round: The Ferret® 40mm Round is non- burning and suitable for indoor use. Used primarily by tactical teams, it is designed to penetrate barriers, such as windows, hollow core doors, wallboard and thin plywood.

Upon impacting the barrier, the nose cone ruptures and instantaneously delivers a small chemical payload inside of a structure or vehicle. In a tactical deployment situation, the 40mm Ferret is primarily used to dislodge barricaded subjects from confined areas. Its purpose is to minimize the risks to all parties through pain compliance, temporary discomfort and/or incapacitation of potentially violent or dangerous subjects.

Defense Technologies Pocket Tactical CS Gas canister: The Pocket Tactical CS canister is small, and lightweight. The 0.9 oz. of active agent will burn approximately 20-40 seconds.

At 4.75 in. by 1.4 inches in size, it easily fits in most tactical pouches. This is a launchable canister; however, it is normally used as a signaling or covering device. Though this device is slightly over four inches in length, it produces a smoke cloud so fast it appears to be an enveloping screen produced by a full-size tactical canister.

Defense Technologies Maximum Smoke HC canister: The Maximum Smoke canister is designed specifically for outdoor use in crowd control situations with a high-volume continuous burn that expels its payload in approximately 30-40 seconds through four gas ports located on the top of the canister. This canister can be used to conceal tactical movement or to route a crowd. The volume of smoke and agent is vast and obtrusive. This launchable colored smoke canister is 6.0 in. by 2.35 in. and holds approximately 2.9 oz. of active agent.

Defense Technologies Triple-Chaser CS Gas Canister: The Triple-Chaser® CS consists of three separate canisters pressed together with separating charges between each. When deployed, the canisters separate and land approximately 20 feet apart allowing increased area coverage in a short period of time. This canister can be hand thrown or launched from a fired delivery system. The canister is 6.5 in. by 2.7 in. and holds an approximately

3.2 oz. of active agent payload. It has an approximate burn time of 20-30 seconds.

Purpose(s)/Authorized Use: Chemical agents are intended for use as a less-lethal force response option. They can only be deployed by trained Department personnel for riot control purposes, during tactical operations involving barricaded suspects, or in other situations where lesser means are reasonably believed to be ineffective or involve substantially more risk to department personnel.

Fiscal Impacts: The ongoing cost of chemical agents will vary. The cost of the Department’s present

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inventory of chemical agents was approximately $8,360. There are no associated maintenance costs.

Legal/Procedural Rules
Governing Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force.

Required training: Officers must be assigned to the Department SWAT Team or Crowd Control Unit, having completed the required training course(s) associated with that position. SWAT Team officers or Crowd Control Unit officers will complete department chemical agents training from a certified department Chemical Agents Instructor as well as attend regular training and qualifications as required by law and policy.

Other Notes: The Daly City Police Department presently employs four trained and qualified Chemical Agent Instructors who are authorized to train SWAT Team members and Crowd Control Unit personnel on the use of chemical agents.

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Government Code Section § 7070(c)(12) – Annual Report:

Chemical Agents (Tear Gas)
Summary of how the military
equipment was used and the
purpose of its use:

There was no utilization of Chemical Agents in Daly City. The specialized units responsible for this equipment train annually with it to ensure proficiency.

Complaints or Concerns:

Daly City PD did not receive any complaints or concerns regarding these items.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: Training/Supplies: $0 (No new chemical agents were acquired)

Quantity: 130
Intention to Acquire More: No intention to acquire additional units, only replace those utilized in a training environment.

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QUALIFYING EQUIPMENT OWNED/UTILIZED BY THE DALY CITY POLICE

DEPARTMENT
GOVERNMENT CODE §7070(c)(12)
Description: Flashbang (Diversionary) Devices
Quantity: 51
Capabilities: The flashbang, sometimes referred to as “stun grenade,” is a diversionary device that delivers a bright flash and loud explosive-type noise when deployed. This is a non-lethal handheld grenade that does not fragment or produce any shrapnel.

Expected lifespan: Varies on weather and storage conditions

Manufacturer's description:

Defense Technologies Low Roll 4-gram Distraction Device: The reloadable distraction device unit incorporates a model 7007 type fuse with hex design gun steel body. This is a compact version of the 8933 Low Roll® body Distraction Device and is the newest version of the first reusable non-bursting canister that limits movement and rolling once deployed. The compact Distraction Device fits safely in your hand and packs all the power of the full-size Distraction Device.

The 4-Gram Distraction Device® Reload produces a reduced light, and sound output ideal for when the full effects of the 12-gram charge are not desirable.

Purpose(s)/Authorized Use: Diversionary devices are intended for use as a distraction option used during high-risk entries into a dwelling or similar structure by SWAT operators. They can be deployed by trained Department SWAT operators when authorized by the SWAT Commander or in the event of exigent circumstances.

Fiscal Impacts: The ongoing cost of diversionary devices will vary. The cost of the Department’s present inventory of diversionary devices was approximately $2,820.

Legal/Procedural Rules
Governing Use:

All applicable Local, State, and Federal laws governing police use of force. All applicable Daly City Police Department Policies on Use of Force.

Required training: Officers must be assigned to the Department SWAT Team, having completed a CA POST Basic SWAT Course. SWAT Team officers participate in regular Department SWAT training incorporating the use of the diversionary devices into trainings.

Other Notes: None

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Government Code Section § 7070(c)(12) – Annual Report:

Flashbang Grenades
Summary of how the military
equipment was used and the
purpose of its use:

The Daly City SWAT Team utilized Flash Bang diversionary devices 12 times during high-risk search/arrest warrant operations for crimes involving violence and/or firearms.

Complaints or Concerns: Daly City PD did not receive any complaints or concerns regarding these items.

Audits, Violations, Actions: Daly City PD conducted an audit of the equipment and accounted for all equipment. There were no violations of the use policy.

Total Annual Cost: There were no costs over the last fiscal year.

Quantity: 51

Intention to Acquire More: No intention to acquire additional units, only replace those utilized in a training environment.

City Council Meeting Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Authorize the Execution of an Axon Renewal Agreement, Approve and Appropriate Funds for the Expansion of the Unmanned Aerial Systems Program for the Police Department
Recommended Action
Staff recommends Council authorize the City Manager or designee to execute an amendment to the Police Department’s Axon Master Services and Purchasing Agreement, expand the Unmanned Aerial Systems (UAS) program and appropriate funds for the program.

Background
In 2021, the City Council authorized the Police Department's master services agreement and initial purchasing agreement with Axon, which included body-worn cameras, in-car dash cameras, and other products to meet departmental needs. In 2023, Council approved the Unmanned Aerial System (UAS/drone) program, which has proven essential at enhancing public safety efforts. These programs are funded by Measure Q.

Unmanned Aerial Systems are considered a Military Equipment Use item (AB 481 and Daly City Municipal Code 9.56), and as such require Council approval for acquisition and use in a law enforcement capacity.

Discussion
The police department entered into a master services and purchasing agreement with Axon in 2021 for body-worn and vehicle fleet cameras, interview room recording systems, and related software and storage. Since the initial agreement, the department has added and expanded programs such as, Tasers, drones, and other products. While this current agreement expires in June of 2026, Axon has offered an early renewal option, that if approved by June 30, 2025, includes substantial discounts and additional products as requested by the Police Department to meet our current vision of prioritizing public safety.

The amendment to the original agreement will include automatic equipment upgrades as new hardware is released throughout the term. Items included are those mentioned above, as well as virtual reality training solutions focused on de-escalation and crisis management, artificial intelligence software solutions geared towards officer administrative efficiency, a drone expansion program, supportive equipment for autonomous drone operations, and software specific to real time intelligence centers. Unlimited data storage, service and product support are also included throughout the term.

Drones have proven to be a critical tool for de-escalation, subject apprehension, rescues, scene reconstruction, and overall scene awareness, providing for officer and community safety. Our drone expansion will create a Drone as a First Responder (DFR) program. We will receive (18) Skydio

City Council Agenda Report
Meeting Page 2 of 3
X10 drones, capable of autonomous flight by a remote pilot. Twelve (12) of the X10’s will be strategically positioned in enclosed docking stations throughout the city on city-owned rooftops, ensuring near complete city coverage with response times under 3-minutes. The remaining six (6) X10’s will be deployed in the field with patrol officers, allowing for redundancy or specific needs.

There will be an additional four (4) drones from SkyHero, known as the Loki MkII, specifically designed for interior flight, providing officers an opportunity to clear structures during critical incidents, reducing unnecessary risk and the potential for a force response.

Our DFR program will operate out of our Real Time Intelligence Center, providing support to Department of Water and Wastewater Resources (DWWR), the Fire Department and Public Works.

This will include emergency and non-emergency callouts for all departments, providing a more comprehensive response and increasing efficiency for city resources and services. Drones can respond on structure and wildland fires, water/cliff rescues, broken water lines and natural disaster scenes. Future expansion could support drone delivery of critical lifesaving devices during medical and rescue emergencies, as well as assist neighboring jurisdictions. Half of the DFR systems will be on critical DWWR sites, and the preplanned inspection of water facilities is estimated to account for half of the projected flights next year based on current statistics. As such, the Water Enterprise Fund will be used to cover half of the drone costs, to include installation and annual fiber optic costs (figures in fiscal impact). Statistics for the DFR program will be evaluated annually for cost sharing considerations amongst all supported departments.

Fiscal Impact
The Police Department worked closely with Axon and our Finance Department to discuss agreement terms and costing considerations. Staff recommends a 10-year agreement that includes cost savings and a credit for the remaining year of the current agreement. The first-year cost will be $681,746, with the subsequent years costing $1,313,978 annually. The total 10-year cost agreement with Axon is estimated to be $12,507,548.

In addition to the agreement with Axon, there will be costs for fiber-optic (internet) at the (5) five remote drone sites, allowing for connectivity to the dock to operate the drone. There is a one-time equipment installation cost, estimated to be $275,000, and annual costs of $75,000 to maintaining the dedicated high-speed fiber-optic lines.

The estimated first-year cost for Fiscal Year (FY) 2026, for the Axon agreement, fiber optic installation and fees, is $1,031,746. Currently there is $377,146 budgeted for the current contract leaving the need to appropriate an additional $654,600 in Measure Q funds for FY 2026. The drone program will be utilized by other City departments, so staff recommends to appropriate a transfer from the Water Fund to Measure Q to reimburse $308,421 for cost sharing.

The second-year total cost for the program in FY 2027 is $1,388,978. There is currently $1,022,617 budgeted for Axon programs in Measure Q so staff is recommending to appropriate an additional $366,361 in Measure Q funds and $307,180 reimbursement transfer from the Water Fund for cost sharing. The remaining years of the agreement will be included in the budget requests at that time.

City Council Agenda Report
Meeting Page 3 of 3
Summary/Conclusions
Staff is available to provide any additional information desired by the Mayor or Councilmembers.

Respectfully submitted,

Cameron ChristensenJoshua Cosgrove
Acting Chief of PoliceDirector of Water and Wastewater Resources

City Council Agenda ReportItem # _____
Meeting Date: June 23, 2025
Subject: Introduction of Ordinance of the City Council of the City of Daly City Repealing and Replacing Chapter 5.104 to the Daly City Municipal Code Re: Cannabis Regulations Recommendation
In alignment with the City’s commitment to equitable economic development and the findings of the Cannabis Equity Assessment (accepted under separate action), staff recommends amending the existing commercial cannabis ordinance Chapter 5.104 of the Daly City Municipal Code to amend the City’s Commercial Cannabis Regulations, including provisions to establish a Cannabis Equity Program.

Background
Daly City legalized commercial cannabis in 2021, establishing regulations under Chapter 5.104 and associated zoning overlays in Chapter 17.56. As of June 2025, four cannabis retail licenses have been issued, with three remaining available. Only two retailers are currently operating. To ensure fair access to these remaining licenses and expand the scope of cannabis business types, staff has worked with SCI Consulting Group and Global Reach Strategies to assess existing policies and propose equitable reforms.

These reforms are responsive to the City’s recently completed Cannabis Equity Assessment (Exhibit A to a separate Council item), which found significant disparities in cannabis-related arrests and barriers to market entry for individuals in specific neighborhoods (e.g., Mission Street/Crocker Avenue and Bayshore).

Discussion
Key Ordinance Amendments Include:

1. Creation of a Cannabis Equity Program (Sections 5.104.160–5.104.210):
oEstablishes equity applicant and business definitions. oOutlines eligibility based on prior cannabis-related offenses, low income, and residency in historically impacted areas.
oDetails a verification process, services (technical assistance, application support, fee waivers, grants), and prioritization of at least 50% of retail licenses for equity applicants.

2. Expanded License Types Permitted (Section 5.104.30):
oAdds cannabis microbusinesses, infusion-only manufacturing, but keeps non- storefront retail.
oAllows for distribution operations when co-located within Combined Cannabis Districts (CC Districts).

3. Revised Licensing Process (Section 5.104.70–5.104.80):

Introduction of Ordinance of the City Council of the City of Daly City Repealing and Replacing Chapter 5.104 to the Daly City Municipal Code Re: Cannabis Regulations Meeting Date: June 23, 2025
oRequires equity consideration in lottery-based license selection. oStrengthens local control through detailed site security, zoning clearance, and background review procedures.

4. Enhanced Conditions of Operation (Section 5.104.60):
oRequires robust surveillance systems, onsite security staff, loitering prevention, and nuisance abatement plans.
oLimits license transfers and establishes clear suspension/revocation procedures.

5. Compliance with State Law and CEQA:
oAligns local ordinance with the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).
oThe ordinance is exempt from CEQA under categorical exemptions for local regulatory actions.

Side-By-Side Comparison of the Daly City Cannabis Ordinance: Current vs. Proposed Topic Current Ordinance Proposed Ordinance
Purpose & Intent Focused primarily on
regulating storefront
cannabis retail and testing
labs.

Emphasizes economic
development, equity, and
regulatory compliance.

Includes language
supporting diverse business
participation and alignment
with state law.

Cannabis Business Types
Allowed
Limited to storefront retail
and testing labs.

Expands to include:
- Non-storefront retail
- Distribution (when co-
located)
- Microbusinesses
- Infusion-only
manufacturing
- Shared-use
manufacturing (by
discretion/PD process)
Equity Program Provisions No cannabis equity
program included.

Adds full Cannabis Equity
Program with eligibility
criteria, verification,
services, and license
prioritization (Sections

5.104.160–5.104.210).