Agenda — Richmond City Council, November 7, 2023 (part 13 of 14)

November 7, 2023

Finance Department

DATE: November 7, 2023
TO: Mayor Martinez and Members of the City Council
FROM:

Shasa Curl, City Manager
Nickie Mastay, Deputy City Manager, Internal Services
Andrea Miller, Director of Finance
Mubeen Qader, Deputy Director of Finance
Antonio Banuelos, Accounting Manager
SUBJECT:

FY 2022-23 Q4 Financial Report and Administrative
Budget Adjustments
FINANCIAL IMPACT:

PREVIOUS COUNCIL
ACTION:

June 21, 2022, December 6, 2022, March 28, 2023, May
16, 2023

STATEMENT OF THE
ISSUE:

City staff is presenting the Fiscal Year (FY) 2022-23
Quarter 4 General Fund and Non-General funds budget-
to-actuals report.

RECOMMENDED ACTION:

RECEIVE the Fiscal Year 2022-23 Quarter 4 (Q4) report
for the period of July 1, 2022, through June 30, 2023;
APPROVE proposed administrative year-end budget
adjustments; and PROVIDE DIRECTION to staff
regarding Estimated Unspent Funds - Finance
Department (Andrea Miller 510-620-6790/Mubeen Qader
510-412-2077). This item was continued from the
October 24, 2023, meeting.

DISCUSSION:

This report presents an overview of the Quarter 4 (Q4) operating revenues and expenditures for FY 2022-23, which includes year-to-date budget to actual activity from July 1, 2022, through June 30, 2023. Most of the fiscal year activity has been captured; however, the amounts are not final until the fiscal year close is completed and the Annual Comprehensive Financial Report (ACFR) is published.

AGENDA
REPORT
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Staff is presenting the Q4 financial report to provide City Council an estimate of unspent funds in the General Fund.

General Fund

At the end of FY 2022-23 Q4, total revenue exceeds total expenditures by $14,293,551 (Unspent Funds). Total revenues are above budget by approximately 5 percent and expenditures are below budget by approximately 2 percent as shown in Table 1 below.

Table 1: Estimated General Fund Revenue and Expenditures FY2022-23, Quarter 4

General Fund Revenues

Overall, revenue received totaled approximately $226 million (105.08 percent of budget) at the end of FY 2022-23 Q4. Several revenues came in higher than expected as reflected in Table 2 below. The variances in each major category are explained in the following paragraph.

Table 2: Estimated General Fund Revenue, FY2022-23 Quarter 4

General Fund Revenue Variances

GENERAL FUND
FY 2022-23

ORIGINAL
BUDGET
FY 2022-23

REVISED
BUDGET
FY 2022-23
DRAFT

ACTUALS

PENDING
DRAFT

ACCRUALS

ESTIMATED

YEAR-END

ACTUALS

VARIANCE
TOTAL REVENUES 206,632,248 215,103,041 225,458,075 566,000 226,024,075 105.08% TOTAL EXPENSES 206,632,248 215,139,689 209,296,409 2,434,115 211,730,524 98.42%

GENERAL FUND NET
+SURPLUS/(-DEFICIT) - (36,648) 16,161,666 (1,868,115) 14,293,551

GENERAL FUND
FY 2022-23

ORIGINAL
BUDGET
FY 2022-23

REVISED
BUDGET

ESTIMATED

YEAR-END

ACTUALS

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 Property Tax -- City staff estimated growth of 2.9 percent for Secured Property Taxes and overall growth for General Fund property taxes of 1.8 percent. Contra Costa County (County) released the 2022-2023 Assessment Roll in July 2022, which indicated growth of the Assessed Valuation (AV) at 8.15 percent for Secured Property Taxes. This is the main component in changes to secured property taxes year-to-year and came in as expected at mid-year. Property Taxes totaled $51.9 million which was $3.3 million more than the budget. A large segment that came in significantly higher than expected at mid-year was the Successor Agency surplus revenue which was $2.5 million higher than the budget.

 Sales & Use Tax -- Sales and Use Tax revenue came in as expected and as updated at Mid-Year. Revenue was budgeted at $55.6 million and actual revenue came in at approximately the same amount. This revenue stream is bolstered by the performance of big box stores such as Costco, Target, Home Depot, and Walmart.

 Utility Users Tax (UUT) – UUT, which applies to Cable Television, Gas and Electricity, Telecommunications, and the Maximum Tax Payable Provision (Cap Amount) paid by Chevron, totaled $54.7 million, which is $3.8 million (7.5%) over the budgeted $50.9 million. The main reason for higher than budget UUT is largely from amounts remitted by PG&E due a rate increase and more usage related to the colder, wetter winter season we experienced.

 Other Taxes – Actual revenue received in the Other Taxes category was $19.6 million, a difference of $2.8 million from the budgeted amount of $22.5 million.

Other taxes include the documentary transfer tax which is collected by Contra Costa County on the sale of properties. Of the major General Fund revenue streams, this is the most volatile, where monthly payments can range significantly from $300,000 one month to $3 million the next. The City budgeted $14.4 million in the Transfer Tax category and only received $10.4 million, equating to a difference of $4 million. The budgeted amount is obtained by calculating the mean monthly amount collected since the increase to the rate was approved by voters in 2018 as stipulated in the Guiding Fiscal Policies. The rest of the revenue streams in this category came in at a cumulative $1.1 million higher than budgeted, partially offsetting the lower than anticipated transfer tax amount compared to previous years. Moving forward, City staff will budget documentary transfer tax at a lower rate since real estate transactions are decreasing as interest rates continue to rise.

 Licenses, Permits, and Fees – The total revenue through June 30, 2023, for this category is $18.2 million which is $7.1 million above the budgeted amount of $11.1 million. This revenue stream includes the business tax revenue. This is the first full year of the Business Tax using the gross receipts as mandated with the passage of Measure U. The total business tax was $16.2 million, more than double the budgeted amount of $8.1 million. There are some anomalies in the amounts collected in FY 2022-23, as many businesses transitioned from an 1874

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expiration date based on the anniversary of when they started their businesses to a fixed expiration date of December 31. Therefore, these businesses paid a prorated amount for their 2022 business tax and a full amount for their 2023 business tax, all within FY 2022-23. This transition increased the business tax revenue received in FY 2022-23 by approximately $2.5 million. Moving forward, this revenue stream is expected to decrease.

Table 3 below illustrates the share of the total business tax paid. The Business Tax Revenue for FY2022-23 is $13.9 M. The top 50 taxpayers paid 55.4 percent of the total $13.9 million. The top 500 businesses paid nearly 87 percent of the tax collected, while every other business cumulatively paid 13.1 percent of the total collected. Figure 1 illustrates the percentage of business tax paid by business class.

Table 3: 2023 Business Tax Percentage Paid by Businesses Excluding Proration Business Tax
Accounts
FY2022-23 Percentage Total Share
Top 1 to 25 6,416,419 46.2% 46.2%
26 to 50 1,276,098 9.2% 55.4%
51 to 100 1,585,211 11.4% 66.8%
101 to 250 1,838,199 13.2% 80.1%
251 to 500 946,600 6.8% 86.9%
501 to 7130 1,818,206 13.1% 100.0%
All 13,880,733 100.0%

Figure 1: Business Tax Paid by Business Class

General Fund Expenditures

Class A:Retail Sales
21%
Class C:Auto Sales &
Manufactur
17%
Class F:Construction
Contractors
11%
Class G: Business &
Personal Services
5%
Class H:Professional &
Semi Profesional Services
17%
Class K1: Rental
Res/Non
21%
Other
8%
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Overall, expenditures are projected to total $211.7 million (98 percent of budget) at the end of FY 2022-23 Q4. Actuals are trending lower than the approved budgeted amounts mainly due to lower-than-expected operating expenditures. The summary of budget-to- actual expenditures is discussed in Table 4 below.

Table 4: Estimated General Fund Expenditures FY 2022-23, Quarter 4

General Fund Expenditure Variances
 Salaries & Wages -- This category includes base salaries for full-time and part-time staff, overtime, and other pay types. Actual expenditures total $70 million (2 percent above the budget). Projected vacancy savings of $8.3 million was transferred out to the General Capital fund earlier in the fiscal year.

 Benefits – This category includes medical, dental, workers compensation, CalPERS pension costs, Other Post Employment Benefits (OPEB), and other benefits. The original budget was reduced by $6.7 million due to projected vacancy savings and transferred out to the General Capital earlier this year. Total actual expenditures are $67 million (12 percent above budget). The variance is due to $6.1 million additional contribution to OPEB 115 Trust that was approved by the City Council on December 6, 2022.

 Professional & Admin Services – This category includes professional and consulting services, legal services, computer software maintenance, security services, and contractual obligations, such as animal control services. Actual expenditures total $11.9 million (59 percent of budget).

 Other Operating – This includes copier leases, office supplies, and other items.

Actual expenditures total $4.2 million (64 percent of budget). The total expenditures include reclassification of rent expense to capital lease for about $2 million as part of Governmental Accounting Standards Board (GASB) 87 implementation which provides guidance for lease contracts for nonfinancial assets—including vehicles, heavy equipment, and buildings.

GENERAL FUND
FY 2022-23

ORIGINAL
BUDGET
FY 2022-23

REVISED
BUDGET

ESTIMATED

YEAR-END

ACTUALS

VARIANCE
SALARIES AND WAGES 78,761,868 68,387,383 69,865,034 102.16% PYRLL/FRINGE BENEFIT 66,929,804 60,179,791 67,245,882 111.74% PROF & ADMIN 16,977,138 20,116,834 11,901,455 59.16% OTHER OPERATING 7,970,902 6,627,804 4,220,462 63.68% UTILITIES 5,399,957 5,322,893 4,369,913 82.10% EQPT & CONTRACT SVCS 2,731,448 2,713,145 2,130,965 78.54% PROVISN FOR INS LOSS 25,725 29,641 28,641 96.63% COST POOL 15,277,766 15,277,766 15,277,766 100.00% ASSET/CAPITAL OUTLAY 3,172,136 3,967,455 3,536,627 89.14% DEBT SVC EXPENDITURE 1,037,009 1,037,009 2,944,812 283.97% A87 COST PLAN REIMBS (3,531,610) (3,531,610) (3,622,739) 102.58% GRANT EXPENDITURES 2,500 117,990 59,647 50.55% OPER XFERS OUT 11,877,605 34,893,588 33,772,060 96.79% TOTAL EXPENSES 206,632,248 215,139,689 211,730,524 98.42% 1876

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 Utilities – This category includes gas, electricity, water, refuse, telephone, and internet services. Actual expenditures total $4.4 million (82 percent of budget). Major sources of the variance is the result of lower-than-expected utilization, cost of water in parks and landscaping areas due to increased precipitation.

 Equipment & Contract Services - This category includes equipment and maintenance/repair services. Actual expenditures total $2 million (79 percent of budget). Actual cost of repairs and maintenance came in lower than budgeted.

 Cost Pool – This includes vehicle replacement, general liability, and Civic Center debt allocation. Since these charges are distributed through equal monthly journals, the expenditures are fully captured to 100 percent of the budget.

 Asset/Capital Outlay – This includes capital purchases and major facility and infrastructure upgrades. Total expenditures at the end of Q4 are $3.5 million (89 percent of the budget). Major sources of the variance are the result of lower than budgeted costs for equipment replacement projects in the Information Technology department.

 Debt Service – Included in this category are debt service payments per the debt payment schedule and capital leases per the agreements. Total expenditures are above budget due to the reclassification of rent expenses into capital lease expenses as part of GASB 87 implementation which provides guidance for lease contracts for nonfinancial assets—including vehicles, heavy equipment, and buildings.

 A87 Cost Plan Reimbursement – This category includes administrative overhead credit from non-General Fund programs through monthly journals. The expenditures are anticipated to be at 100 percent at the end of Q4, currently the transactions are still being analyzed as part of the fiscal year-end close.

 Grant Expenditures – This category includes Office of Neighborhood Safety and Recreation grant expenditures. The expenditures, including encumbrances, are at 51 percent, remaining grant budget will roll over to the following fiscal year.

 Transfers Out – This includes transfers out from the General Fund to non-General Funds for operating subsidies and a portion of the debt service. The General Fund Actuals total $33.7 million (99.6 percent of budget).

Non-General Funds

Non-General Fund Revenues

Actual non-general fund revenues collected are 32 percent above the budgeted amounts mainly due to Bond proceeds of $154 million as a result of Pension Obligation Bonds refunding (from a swap to a fixed rate). Budget-to-actual revenue totals by each fund are explained for some of the major categories (see Attachment 1). 1877

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Table 5: Non-General Fund Revenues, FY 2022-23, Quarter 4

 Capital Improvement Funds – Total revenue is 38 percent of the budget. The major variance is due to pending grant reimbursements revenues in Outside- Funded Services fund and Engineering Services Grants fund. Part of the variance is full grant awards are budgeted as revenues and actual revenue is based on the expenditures incurred.

 Debt Service Funds – Revenues are above budget by 742 percent due to $154 million bond proceeds (passthrough) from Pension Obligation Bonds refunding.

 Enterprise Funds – Total revenues are 76 percent of the budget mainly due to bond proceeds for capital projects, the drawdowns have been recognized as unearned revenue versus revenue.

 Other Operations Funds – Total revenues are 65 percent of the budget. The major variance is due to grant funded program revenues, for which the reimbursements are generally received for the incurred expenditures and remaining balances on budget are rolled into the following year.

 Pension Funds – The variance is due to return on investment experienced in the FY 2022-23.

 Special Revenue Funds – Actual revenue is above the budget by a significant amount due to American Rescue Plan Act (ARPA) funds, and Chevron Environmental and Community Investment Agreement (ECIA) fund revenues.

Non-General Fund Expenditures

Total non-general fund expenditures are 86 percent of the budget. Several non-general funds have capital and grant projects that span over multiple years, and unspent balances in these funds roll over and was banked by project for utilization to the following year until each respective project is complete. For budget-to-actuals by each

FUND ORIGINAL
BUDGET

REVISED
BUDGET

ESTIMATED

ACTUALS

THRU JUNE

VARIANCE
Total Capital Improvement Fund 31,852,226 85,313,066 32,372,772 38% Total Debt Service Funds 20,629,090 22,107,202 164,051,582 742% Total Enterprise Funds 58,991,980 58,991,980 44,808,481 76% Total Housing Funds 2,161,415 2,223,583 2,280,430 103% Total Housing Authority Funds 4,880,044 4,895,044 5,120,893 105% Total Internal Service Funds 24,730,653 24,782,653 27,036,337 109% Total Other Operations Funds 27,276,353 39,280,890 25,725,112 65% Total Pension Funds 165,305 165,305 1,213,629 734% Total Special Revenue Funds 29,253,674 39,967,907 62,822,670 157% -Total All Funds 199,940,740 277,727,631 365,431,906 132% 1878

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fund see Attachment 1. Non-general fund budget-to-actual expenditures by fund type are shown in Table 6:

Table 6: Estimated Non-General Fund Expenditures FY 2022-23 Quarter 4

 Capital Improvement Funds – Total expenditures are 28 percent of the budget; the variance is due to projects spanning over multiple years where the unspent balances are rolled forward into the following year.
 Debt Service Funds – Total expenditures are above budget by 821 percent, with the variance due to refunding (Passthrough) of the Pension Obligation Bonds.  Enterprise funds – Total expenditures are 27 percent of the budget; the variance is due to the wastewater capital projects spanning over multiple years. The remaining balance of the budget will be rolled into the following year.  Internal Service Funds – Total expenditures are 81 percent of the budget; the variance is due to equipment purchases rolling into the following year.  Other Operations Funds – Total expenditures are 62 percent of the budget.

Several grant funded programs have multiple year grants, and remaining grant balances will be rolled forward to the following fiscal year.  Pension Funds – Total expenditures are 713 percent of the budget; the variance is due to Police and Fire legacy pension system expenditures which are not typically budgeted.
 Special Revenue funds – Total expenditures are 57 percent of the budget; the variance is due to the main library renovation project which is budgeted but has not started yet. Other major drivers behind the variance are the projects in ECIA and ARPA funds.

FUND TYPE ORIGINAL
BUDGET

REVISED
BUDGET

ESTIMATED
FY 2022-23

YEAR-END

ACTUALS

VARIANCE
Total Capital Improvement Funds 33,902,113 100,170,791 28,458,179 28% Total Debt Service Funds 21,612,086 21,612,086 177,357,834 821% Total Enterprise Funds 70,579,794 121,226,354 33,303,955 27% Total Housing Funds 5,458,047 5,496,861 1,101,601 20% Total Housing Authority Funds 4,880,044 4,915,044 4,182,157 85% Total Internal Service Funds 25,169,925 29,809,742 24,224,430 81% Total Other Operations Funds 27,075,053 44,817,360 27,795,933 62% Total Pension Funds - 210,463 1,500,226 713% Total Special Revenue Funds 39,674,849 58,088,338 33,020,361 57% Total All Funds 228,351,909 386,347,037 330,944,677 86% 1879

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Quarter 4 Administrative Budget Adjustments

At the end of FY 2022-23, staff recommends approving several proposed administrative budget adjustments to align with fiscal year-end actuals. Most of these adjustments are to acknowledge the actual revenue received in non-general funds (see Attachment 2).

Table 7: Q4 Administrative Budget Adjustments
Fund Type Adjustment Type Amount
General Fund Expenditure $6,102,459
General Capital Funds Revenue $2,606,659
General Capital Funds Expenditure $2,443,035
Richmond Housing Authority Funds No net impact
Internal Services Funds Revenue $52,000
Internal Services Funds Expenditures $2,635,900
Other Operations Revenue $112,431
Special Revenue Funds Revenue $16,509,784

UNSPENT FUNDS
As a result of the Q4 analysis, staff has identified an estimated amount of unspent funds that could be available at the end of FY 2022-23 for the City Council to allocate towards their priority Goals. The availability of these funds is an estimate, and the amounts are subject to change, as the City is currently in the process of closing the books for fiscal year ending June 30, 2023.

Please note that during the City’s Quarter 3 (Q3) Budget Review on May 16, 2023, the City Council allocated $15,000,000 towards the Main Library Renovation project from the estimated unspent funds anticipated to remain in the General Fund on June 30, 2023.

Reserve Level
On June 27, 2023, the City Council approved the General Fund reserve minimum requirements level at 21 percent of the next year’s Budgeted General Fund expenditures. Please note, the previous Reserve Policy was a range of fifteen percent to twenty percent (15-20) of the next year’s budgeted total expenditures, including transfers out. Table 8 below illustrates the FY2022-23 Reserve beginning balance and the required additional $2,393,278 contribution to meet the policy target of 21 percent reserve level. This is extremely prudent given unknown financial headwinds related to events such as turmoil in the U.S. Congress, war in Ukraine, and significant interest rate hikes.

Table 8: General Fund Reserve Level
Line Item Amount
FY 22-23 Beginning Reserve Level 44,935,389
FY 23-24 General Fund Budget 225,374,607
FY23-24 Target Reserve Level @ 21% 47,328,667
Additional Funds Needed 2,393,278

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Other Post Employment Benefits (OPEB) and Pension Funding Policies On June 27, 2023, the City Council also approved OPEB and Pension funding policies, which requires the City to contribute 10 percent of the year-end General Fund Surplus/Unspent funds into the respective 115 Trust accounts. Table 9 below illustrates the estimated contributions after meeting the General Fund Reserve Policy Target Reserve Level and remaining balance of the unspent funds for City Council priority goals.

Table 9: Unspent Funds Calculation
Item Estimated Amount
FY22-23 Unspent Balance 14,293,551
Contribution to Reserve (2,393,278)
Available Unspent Funds 11,900,273
Contribution to OPEB @10% 1,190,027
Contribution to CalPERS @10% 1,190,027
Remaining Unspent Funds 9,520,218

Capital Improvement Projects Update
Attachment 5 details the existing Capital Projects that are included in the FY 2023-24 Capital Improvement Plan with the estimated total cost and potential funding shortfall.

The amount of the identified funding shortfall across these projects is approximately $15.83 M. Several of the listed projects have grants as a partial funding source and require additional funding to complete these projects. The grant funded projects have an estimated funding shortfall of $5,460,000 in FY 2023-24, $5,065,000 shortfall in FY 2024-25, and $3,656,717 shortfall in FY 2025-26 (see Attachment 5). City staff recommend that the City Council consider funding projects from the unspent funds $9,520,218 as follows:
• $5,460,000 - FY 23-24 CIP Shortfall
• $3,261,717 - FY 24-25 CIP Shortfall (Partial Funding)

In addition, City staff recommends allocating unspent General Funds as follows:
 $520,000 - Stenmark Cottages for recently identified asbestos and lead abatement
 $278,501 - Richmond Fire Department Emergency Operations Center (EOC) Information Technology equipment upgrades Table 10

Table 10: Richmond Fire Department EOC IT Equipment Upgrades EOC Equipment Amount
Radio Communication, Basement Upgrade 55,049
Cabling, Conduit and Services 49,170
EOC Desktops with Conference Audio Video 83,103
EOC Laptops 16,999
Printer/Scanner/Copier 4,247
Smart Board 18,133
Plotter 24,000
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Cell Phones 3,200
Cellular Hot Spots 600
Portable Radio 24,000
Total 278,501

Please note FY 2023-24 Capital Improvement Plan can be accessed online, https://www.ci.richmond.ca.us/183/Budget-Documents.

Next Step
City staff will continue working with the auditors to complete the FY 2022-23 year-end audit and publish the Annual Comprehensive Financial Report (ACFR). City staff will present the year-end audit results and ACFR to the City Council in January or February 2024.

DOCUMENTS ATTACHED:

Attachment 1 – Estimated Fiscal Year 2022-23 General Fund and Non-General Funds Revenues and Expenditures.

Attachment 2 – Fiscal Year 2022-23 Administrative Budget Adjustments Attachment 3 – Resolution – Administrative Budget Adjustments Attachment 4 – Resolution – Appropriations for Capital Projects Funding Shortfall Attachment 5 – Capital Improvement Projects with Projected Shortfall Attachment 6 – Draft Q4 Presentation
1882
Attachment 1 - Estimated Fiscal Year 2022-23 General Fund and Non-General Funds Revenues and Expenditures

GENERAL FUND
FY 2022-23

ORIGINAL
BUDGET
FY 2022-23

REVISED
BUDGET

ESTIMATED

YEAR-END

ACTUALS

VARIANCE
PROPERTY TAXES 46,056,962 48,608,929 51,919,490 106.81% SALES & USE TAX 55,282,200 55,554,137 55,417,520 99.75% UTILITY USERS TAX 49,963,589 50,861,279 54,673,131 107.49% OTHER TAXES 21,638,449 22,452,187 19,623,677 87.40% LICENSES, PERMITS & FEES 11,129,402 11,080,956 18,214,217 164.37% FINES & FORFEITURES 475,275 465,275 255,225 54.85% USE OF MONEY&PROPRTY 236,079 1,021,047 1,705,816 167.07% CHARGES FOR SERVICES 3,571,292 3,568,792 2,553,732 71.56% OTHER REVENUE 187,500 192,545 440,857 228.96% RENTAL INCOME 874,506 874,506 895,249 102.37% INTERGOV STATE TAXES 125,000 125,000 118,794 95.04% INTERGOV STATE GRANT 175,000 175,000 131,430 75.10% INTERGOV OTHER GRANT 253,569 263,569 307,076 116.51% PROC FR SLE PROP 100,000 100,000 1,264 1.26% LOAN/BOND PROCEEDS - 39,400 39,400 100.00% OPER XFERS IN 16,563,424 19,720,418 19,727,198 100.03% TOTAL REVENUES 206,632,248 215,103,041 226,024,075 105.08% SALARIES AND WAGES 78,761,868 68,387,383 69,865,034 102.16% PYRLL/FRINGE BENEFIT 66,929,804 60,179,791 67,245,882 111.74% PROF & ADMIN 16,977,138 20,116,834 11,901,455 59.16% OTHER OPERATING 7,970,902 6,627,804 4,220,462 63.68% UTILITIES 5,399,957 5,322,893 4,369,913 82.10% EQPT & CONTRACT SVCS 2,731,448 2,713,145 2,130,965 78.54% PROVISN FOR INS LOSS 25,725 29,641 28,641 96.63% COST POOL 15,277,766 15,277,766 15,277,766 100.00% ASSET/CAPITAL OUTLAY 3,172,136 3,967,455 3,536,627 89.14% DEBT SVC EXPENDITURE 1,037,009 1,037,009 2,944,812 283.97% A87 COST PLAN REIMBS (3,531,610) (3,531,610) (3,622,739) 102.58% GRANT EXPENDITURES 2,500 117,990 59,647 50.55% OPER XFERS OUT 11,877,605 34,893,588 33,772,060 96.79% TOTAL EXPENSES 206,632,248 215,139,689 211,730,524 98.42%

GENERAL FUND NET
+SURPLUS/(-DEFICIT) - (36,648) 14,293,551 Estimated General Fund Revenue and Expenditures, FY2020-23, Quarter 4

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Attachment 1 - Estimated Fiscal Year 2022-23 General Fund and Non-General Funds Revenues and Expenditures

FUND ORIGINAL
BUDGET

REVISED
BUDGET

ESTIMATED

ACTUALS THRU
JUNE 2023

VARIANCE

PROPOSED
BUDGET

ADJUSTMENT
1002 STATE GAS TAX 3,203,193 3,203,193 2,942,967 92% - 1004 ASSET SEIZURE FUND 20,000 20,000 12,486 62% (14,983) 1006 OUTSIDE FUNDED SVCS - GRA 7,315,997 29,148,165 2,817,875 10% - 1019 ROAD MAINT & REHAB ACCT 2,510,376 2,510,376 2,616,807 104% - 1054 ENGINEERING GRANTS 14,509,778 23,509,733 2,407,814 10% - 2001 GENERAL CAPITAL FUND - 21,023,341 19,516,894 93% 2,481,984 2002 MEASURE J 4,292,882 4,292,882 43,672 1% - 2007 HARBOR FUND - - 1,114 - - 2110 IMPACT FEE - PARKS - 5,364 16,483 307% 7,416 2111 IMPACT FEE - TRAFFIC - 562,079 641,177 114% 44,671 2113 IMPACT FEE - FIRE - 55,381 65,665 119% 7,783 2114 IMPACT FEE - POLICE - 189,101 65,833 35% (139,778) 2115 IMPACT FEE - COMM/AQUATC - 26,101 69,236 265% 29,879 2116 IMPACT FEE - PARKS/OPEN - 108,864 304,901 280% 124,591 2117 IMPACT FEE - LIBRARY - 73,310 152,529 208% 36,273 2118 IMPACT FEE - HILLTOP - - 773 - - 2119 IMPACT FEE - STORM DRAINA - 204,910 242,223 118% 13,497 2120 IMPACT FEE - WASTEWATER - 380,267 454,323 119% 15,326 Total Capital Improvement Fund 31,852,226 85,313,067 32,372,772 38% 2,606,659 3001 DS - 2005 TAXABLE POB 13,052,125 13,057,069 154,176,857 1181% - 3002 DS - 99A PENSION OBLIG BO 809,523 2,282,691 2,973,127 130% - 3005 DS - 07 REFNDING&CVC CTR 6,767,442 6,767,442 6,901,599 102% - Total Debt Service Funds 20,629,090 22,107,202 164,051,583 742% - 4001 PORT OF RICHMOND 10,348,460 10,348,460 11,728,701 113% - 4003 WASTEWATER 46,943,520 46,943,520 31,324,484 67% - 4005 MARINA 450,000 450,000 701,912 156% - 4008 KCRT - CABLE TELEVIS 1,250,000 1,250,000 1,053,384 84% - Total Enterprise Funds 58,991,980 58,991,980 44,808,481 76% - 1200 HOUSING ADMINISTRATION 567,110 590,260 683,872 116% - 1201 CDBG 176,575 176,575 219,741 124% - 1202 HOME PROGRAM 3,689 23,764 24,277 102% - 1203 NEIGHBORHOOD STAB(NP) 15,144 15,144 - 0% - 1207 COR-NEIGHBORHOOD STAB(CIT 133,664 133,664 - 0% - 1208 COR-SUCCESSOR HOUSING AGE 165,844 184,787 276,606 150% - 1209 CAL-HOME GRANT FUND 64,142 64,142 225,576 352% - 1302 HOUSNG IN LIEU FEE - DEVE 568,566 568,566 594,740 105% - 2125 IRON TRIANGLE/EPA PROGRAM 300,250 300,250 89,187 30% - 2126 HOUSING CIP FUND 166,432 166,432 166,432 100% - Total Housing Funds 2,161,416 2,223,584 2,280,431 103% - Estimated Non - General Fund Revenue, FY2022-23, Quarter 4

Page 2 of 51884 ends

Attachment 1 - Estimated Fiscal Year 2022-23 General Fund and Non-General Funds Revenues and Expenditures

FUND ORIGINAL
BUDGET

REVISED
BUDGET

ESTIMATED

ACTUALS THRU
JUNE 2023

VARIANCE

PROPOSED
BUDGET

ADJUSTMENT
4101-RHA HOUSING CHOICE - - 35,266 - - 4201 RHA-CAPITAL FUND 1,110,141 1,221,155 2,088,851 171% (111,014) 4401 RHA-HACIENDA - - 40 - 1,463,218 4404 RHA-NEVIN PLAZA 2,077,758 1,890,622 1,194,987 63% (758,980) 4405 RHA-NYSTROM VILLAGE 1,027,748 1,027,748 1,345,842 131% (355,119) 4406 RHA-RICHMOND VILLAGE ONE 233,080 233,080 213,023 91% - 4407 RHA-RICHMOND VILLAGE TWO 205,818 205,818 147,525 72% - 4408 RHA-RICHMOND VILLAGE THRE 78,516 78,516 95,346 121% - 4501 RHA-CENTRAL OFFICE COST C 146,983 238,105 13 0% (238,105) Total Housing Authority Funds 4,880,044 4,895,044 5,120,893 105% - 5001 INSURANCE RESERVES 19,184,635 19,184,635 20,254,245 106% - 5003 EQUIPMENT SERVICES 5,546,018 5,598,018 4,182,092 75% 52,000 5008 COMPENSATED ABSENCES - - 2,600,000 - - Total Internal Service Funds 24,730,653 24,782,653 27,036,337 109% 52,000 1003 TRANSPORTATION OPERATION 879,097 879,097 36,391 4% 55,581 1012 HILLTOP LANDSCAPE MAINT D 1,320,954 1,320,954 1,332,133 101% - 1015 MARINA BAY LNDSCP & LIGHT 1,151,294 1,162,824 1,185,144 102% 4,499 1050 CR-PLANNING & BUILDING 12,191,851 17,066,368 13,988,613 82% 52,351 1205 EMPLOYMENT & TRAINING 9,723,481 15,243,126 6,093,475 40% - 4006 STORMWATER 2,009,676 3,608,521 3,089,356 86% - Total Other Operations Funds 27,276,353 39,280,890 25,725,112 65% 112,431 6050 GENERAL PENSION FUND 152,897 152,897 179,340 117% - 6051 POLICE & FIRE PENSION - - 1,016,056 - - 6052 GARFIELD PENSION FUND 12,408 12,408 18,233 147% - Total Pension Funds 165,305 165,305 1,213,629 734% - 1001 SECURED PENSION OVERRIDE 17,350,450 17,350,450 26,045,312 150% 8,660,127 1005 LIBRARY FUND 183,606 10,491,027 5,377,647 51% - 1007 EMERGENCY MED SERV 215,586 215,586 9,899 5% - 1009 VEOLIA MITIGATION 25,000 25,000 25,808 103% - 1010 N.RICHMOND WASTE 124,207 124,207 409,217 329% 283,181 1011 OUTSIDE FUNDED SVCS - DON - - 165 - - 1013 HAZMAT FUND - - 6,209 - 6,209 1017 CHEVRON MODERNIZATN PROJ 275,842 275,842 6,449,379 2338% 6,000,000 1018 RENT CONTROL 3,106,687 3,106,687 2,651,738 85% - 1055 ENCROACHMENT SVCS 1,065,000 1,065,000 1,358,551 128% 231,593 1303 KIDS FIRST INITIATIVE 3,936,896 3,936,896 4,015,737 102% - 1304 EMERGENCY OPE & DISASTR R - 406,812 425,252 105% - 1305 PUBLIC ART 200,000 200,000 1,577,862 789% 1,328,674 1306 AMERICAN RESCUE PLAN ACT 2,770,400 2,770,400 14,469,895 522% - Total Special Revenue Funds 29,253,674 39,967,907 62,822,671 157% 16,509,784 Total All Funds 199,940,741 277,727,632 365,431,909 132% 19,280,874

Page 3 of 51885 ends

Attachment 1 - Estimated Fiscal Year 2022-23 General Fund and Non-General Funds Revenues and Expenditures

FUND TYPE ORIGINAL
BUDGET

REVISED
BUDGET

ESTIMATED
FY 2022-23

YEAR-END

ACTUALS

VARIANCE
1002 STATE GAS TAX 3,203,193 2,835,431 2,402,912 85% 1004 ASSET SEIZURE FUND 20,000 145,000 63,660 44% 1006 OUTSIDE FUNDED SVCS - GRA 7,315,997 32,010,575 6,920,898 22% 1019 ROAD MAINT & REHAB ACCT ( 4,924,031 4,292,045 87% 1054 ENGINEERING GRANTS 14,509,778 26,958,603 10,138,027 38% 2001 GENERAL CAPITAL FUND 3,061,487 23,868,669 1,310,158 5% 2002 MEASURE J 3,786,947 5,161,541 2,028,502 39% 2110 IMPACT FEE - PARKS 15,000 15,000 15,383 103% 2111 IMPACT FEE - TRAFFIC 263,639 354,109 54,979 16% 2113 IMPACT FEE - FIRE 89,383 89,383 86,154 96% 2114 IMPACT FEE - POLICE - 120,000 1,480 1% 2115 IMPACT FEE - COMM/AQUATIC - - 1,679 - 2116 IMPACT FEE - PARKS/OPEN 373,264 642,783 276,523 43% 2117 IMPACT FEE - LIBRARY 469,295 1,409,145 9,045 1% 2119 IMPACT FEE - STORM DRAINAGE - - 6,552 - 2120 IMPACT FEE - WASTEWATER 794,130 1,636,521 850,180 52% Total Capital Improvement Funds 33,902,113 100,170,791 28,458,179 28% 3001 DS - 2005 TAXABLE POB 13,052,125 13,052,125 166,700,321 1277% 3002 DS - 99A PENSION OBLIG BO 809,023 809,023 2,892,808 358% 3005 DS - 07 REFNDING&CVC CTR 7,750,938 7,750,938 7,764,706 100% Total Debt Service Funds 21,612,086 21,612,086 177,357,834 821% 4001 PORT OF RICHMOND 8,564,055 8,764,055 2,115,254 24% 4003 WASTEWATER 59,517,817 109,964,377 29,777,658 27% 4005 MARINA 1,222,754 1,222,754 187,299 15% 4008 KCRT - CABLE TELEVIS 1,275,168 1,275,168 1,223,743 96% Total Enterprise Funds 70,579,794 121,226,354 33,303,955 27% 1200 HOUSING ADMINISTRATION 311,463 311,463 211,185 68% 1201 CDBG 981,745 1,028,060 240,903 23% 1202 HOME PROGRAM - - 374 - 1203 NEIGHBORHOOD STAB(NP) 13,193 5,693 5,693 100% 1207 COR-NEIGHBORHOOD STAB(CIT 6,753 6,753 3,365 50% 1208 COR-SUCCESSOR HOUSING AGE 1,188,435 1,188,435 226,540 19% 1209 CAL-HOME GRANT FUND 333 333 169,671 50952% 1302 HOUSNG IN LIEU FEE - DEVE 2,656,125 2,656,125 160,825 6% 2125 IRON TRIANGLE/EPA PROGRAM 300,000 300,000 83,046 28% Total Housing Funds 5,458,047 5,496,861 1,101,601 20% Estimated Non - General Fund Expenditures, FY 2022-23, Quarter 4

Page 4 of 51886 ends

Attachment 1 - Estimated Fiscal Year 2022-23 General Fund and Non-General Funds Revenues and Expenditures

FUND TYPE ORIGINAL
BUDGET

REVISED
BUDGET

ESTIMATED
FY 2022-23

YEAR-END

ACTUALS

VARIANCE
4102 RHA-Hope 6 - - 38,683 - 4201 RHA-CAPITAL FUND 1,110,141 1,110,141 692,149 62% 4401 RHA-HACIENDA - - 92,457 - 4404 RHA-NEVIN PLAZA 2,077,758 2,077,758 1,618,401 78% 4405 RHA-NYSTROM VILLAGE 1,027,748 1,042,748 925,907 89% 4406 RHA-RICHMOND VILLAGE ONE 233,080 233,080 206,338 89% 4407 RHA-RICHMOND VILLAGE TWO 205,818 205,818 139,751 68% 4408 RHA-RICHMOND VILLAGE THRE 78,516 78,516 92,492 118% 4501 RHA-CENTRAL OFFICE COST C 146,983 146,983 358,739 244% 4502 RHA-HOUSING CORPORATION - 20,000 17,239 86% Total Housing Authority Funds 4,880,044 4,915,044 4,182,157 85% 5001 INSURANCE RESERVES 19,077,907 22,853,144 18,268,115 80% 5003 EQUIPMENT SERVICES 6,092,018 6,956,597 3,517,871 51% 5008 COMPENSATED ABSENCES - - 2,438,444 - Total Internal Service Funds 25,169,925 29,809,742 24,224,430 81% 1003 TRANSPORTATION OPERATION 849,502 849,502 843,597 99% 1012 HILLTOP LANDSCAPE MAINT D 1,407,372 1,637,372 1,650,310 101% 1015 MARINA BAY LNDSCP & LIGHT 1,291,290 1,291,290 1,358,060 105% 1050 CR-PLANNING & BUILDING 12,186,939 18,079,374 13,278,023 73% 1205 EMPLOYMENT & TRAINING 9,313,589 15,598,139 5,992,162 38% 4006 STORMWATER 2,026,361 7,361,684 4,673,781 63% Total Other Operations Funds 27,075,053 44,817,360 27,795,933 62% 6050 GENERAL PENSION FUND - - 240,913 - 6051 POLICE & FIRE PENSION - - 1,033,225 - 6052 GARFIELD PENSION FUND - 210,463 226,088 107% Total Pension Funds - 210,463 1,500,226 713% 1001 SECURED PENSION OVERRIDE 17,350,989 17,350,989 20,233,520 117% 1005 LIBRARY FUND 183,606 10,491,027 287,044 3% 1007 EMERGENCY MED SERV 259,600 259,600 198,075 76% 1009 VEOLIA MITIGATION 100,000 100,000 - 0% 1010 N.RICHMOND WASTE 124,375 124,375 34,608 28% 1013 HAZMAT FUND 63,400 63,400 - 0% 1017 CHEVRON MODERNIZATN PROJ 10,924,232 11,239,059 4,375,810 39% 1018 RENT CONTROL 2,735,580 2,738,580 2,650,919 97% 1055 ENCROACHMENT SVCS 906,309 906,309 724,213 80% 1303 KIDS FIRST INITIATIVE 3,935,358 3,935,358 1,657,028 42% 1304 EMERGENCY OPE & DISASTR R - 406,812 115,110 28% 1305 PUBLIC ART 321,000 346,500 85,746 25% 1306 AMERICAN RESCUE PLAN ACT 2,770,400 10,126,329 2,658,287 26% Total Special Revenue Funds 39,674,849 58,088,338 33,020,361 57% Total All Funds 228,351,909 386,347,037 330,944,677 86%

Page 5 of 51887 ends

Attachment 2 – Fiscal Year 2022-23 Administrative Budget Adjustments Fund Fund Description Fund Type
Revenue
Adjustments
Increase/
(Decrease)
Expense
Adjustments
Increase/
(Decrease)
Net Impact Justification
0001 General Fund General Fund 6,102,459 6,102,459 One-time payment into Other Post Employment Benefits, Trust Fund. 0001 General Fund General Fund (750,000) 750,000 Traffic Calming, transfer budget from General Fund Public Works object to General Fund transfer- out object code, to move funding to capital project fund 0001 General Fund General Fund 750,000 (750,000) Traffic Calming, transfer budget from General Fund Public Works to General Capital Project Fund 0001 General Fund General Fund (1,000,000) 1,000,000 Street Paving, transfer budget from General Fund street improvement object code to General Fund transfer-out object code, to move funding to capital project fund 0001 General Fund General Fund 1,000,000 (1,000,000) Street Paving, transfer budget from General Fund to General Capital Project Fund 0001 General Fund General Fund (358,160) 358,160 Pt. Molate, transfer budget from General Fund object code to transfer-out object code to move funding to capital project fund
0001 General Fund General Fund 358,160 (358,160) Pt. Molate transfer budget from General Fund to General Capital for Cottages 0001 General Fund General Fund (6,209) 6,209 General Fund miscellaneous expense to transfer-out object code for Hazmat expense 0001 General Fund General Fund 6,209 (6,209) Transfer-out to cover Hazmat expenditures 0001 General Fund General Fund (282,525) 282,525 Network Refresh, transfer budget from General Fund Information Technology object code to transfer-out object code
0001 General Fund General Fund 282,525 (282,525) Network Refresh, transfer-out to General Capital Fund for capital project Total General Fund Requests - 6,102,459 6,102,459 1004 Asset Seizure Capital Improvement (14,983) (14,983) Reduce revenue bud get, Asset Seizure revenue is unpredictable 2001 General Capital Capital Improvement 750,000 750,000 Traffic Calming, transfer-in funding from General Fund to General Capital Fund for project 2001 General Capital Capital Improvement 750,000 (750,000) Appropriate budget in General Capital Fund for Traffic Calming 2001 General Capital Capital Improvement 1,000,000 1,000,000 Transfer-in to General Capital Fund for Street Paving Project 2001 General Capital Capital Improvement 1,000,000 (1,000,000) Appropriate budget in General Capital Fund for Street Paving 2001 General Capital Capital Improvement 358,160 358,160 Transfer-in to General Capital Fund for Pt. Molate Cottages 2001 General Capital Capital Improvement 358,160 (358,160) Appropriate budget in General Capital Fund for Pt. Molate Cottages 2001 General Capital Capital Improvement 282,525 282,525 Transfer-in to General Capital Fund for Network Refresh capital project 2001 General Capital Capital Improvement 282,525 (282,525) Appropriate budget in General Capital Fund for Network Refresh capital project 2001 General Capital Capital Improvement 91,300 91,300 Appropriate budget revenue received as of 6/30/23 2110 Impact Fee Parks/PW Capital Improvement 7,416 7,416 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2111 Impact Fee Traffic Capital Improvement 44,671 44,671 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2113 Impact Fee Fire Capital Improvement (1) (1) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2113 Impact Fee Fire Capital Improvement 7,784 7,784 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2114 Impact Fee Police Capital Improvement (139,778) (139,778) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2115 Impact Fee Comm/Aquatic Capital Improvement 28,257 28,257 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2115 Impact Fee Comm/Aquatic Capital Improvement 1,622 1,622 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2116 Impact Fee Open Park Capital Improvement 117,809 117,809 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2116 Impact Fee Open Park Capital Improvement 6,783 6,783 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Librar y Capital Improvement 31,919 31,919 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Librar y Capital Improvement (35,147) (35,147) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Librar y Capital Improvement 10,808 10,808 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Librar y Capital Improvement 495 495 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Librar y Capital Improvement 20,491 20,491 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Librar y Capital Improvement 7,706 7,706 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Draina ge Capital Improvement 12,035 12,035 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Draina ge Capital Improvement (197,089) (197,089) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Draina ge Capital Improvement 47,751 47,751 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Draina ge Capital Improvement 1,950 1,950 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Draina ge Capital Improvement 36,395 36,395 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Draina ge Capital Improvement 112,454 112,454 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 3,625 3,625 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement (346,355) (346,355) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 69,236 69,236 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 12,104 12,104 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 113,743 113,743 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 162,973 162,973 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2110 Impact Fee Parks/PW Capital Improvement 383 (383) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2111 Impact Fee Traffic Capital Improvement 18,203 (18,203) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2113 Impact Fee Fire Capital Improvement 1,895 (1,895) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule General Fund Requests
1 of 21888
Attachment 2 – Fiscal Year 2022-23 Administrative Budget Adjustments Fund Fund Description Fund Type
Revenue
Adjustments
Increase/
(Decrease)
Expense
Adjustments
Increase/
(Decrease)
Net Impact Justification
2114 Impact Fee Police Capital Improvement 1,480 (1,480) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2115 Impact Fee Comm/Aquatic Capital Improvement 1,679 (1,679) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2116 Impact Fee Open Park Capital Improvement 7,004 (7,004) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2117 Impact Fee Librar y Capital Improvement 3,287 (3,287) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2119 Impact Fee Storm Draina ge Capital Improvement 6,552 (6,552) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2120 Impact Fee Wastewater Capital Improvement 11,868 (11,868) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2111 Impact Fee Traffic Capital Improvement (52,000) 52,000 Boom Truck for Public Works, transfer budget from Traffic Impact Fee Public Works object code to transfer-out object code, to move funding to the Equipment Services Fund 2111 Impact Fee Traffic Capital Improvement 52,000 (52,000) Boom Truck for Public Works transfer-out from Traffic Impact Fee Fund to the Equipment Services Fund for purchase
Total Captial Improvement Funds 2,606,659 2,443,035 163,624 4201 RHA - Capital Fund Housing Authority (111,014) (111,014) Re-allocate budget revenue GF Transfer In to RHA 4404 RHA - Nevin Plaza Housin g Authority (758,980) (758,980) Re-allocate bud get revenue GF Transfer In to RHA 4405 RHA - N ystrom VillageH o u s i n g Authority (355,119) (355,119) Re-allocate bud get revenue GF Transfer In to RHA 4501 RHA - COCC Housin g Authority (238,105) (238,105) Re-allocate bud get revenue GF Transfer In to RHA 4101 RHA - HCV Housin g Authority 1,463,218 1,463,218 Re-allocate bud get revenue GF Transfer In to RHA Total Richmond Housing Authority Funds - - - 5001 Insurance Reserves Internal Service 2,349,000 (2,349,000) FY2021-22 PO #22200952 closed due to change of vendor. Budget needed to be reinstated to complete project
5001 Insurance Reserves Internal Service 234,900 (234,900) FY2021-22 PO #22200952 closed due to change of vendor. Budget needed to be reinstated to complete project
5003 Equipment Replacment Internal Service 52,000 52,000 Boom Truck, transfer-in funding from Traffic Impact Fee to Equipment Services Fund for purchase 5003 Equipment Replacment Internal Service 52,000 (52,000) Appropriate budget in Equipment Services Fund for Boom Truck purchase Total Internal Service Funds 52,000 2,635,900 (2,583,900) 1003 Transportation Operations 44 44 Appropriate budget revenue received as of 6/30/23 1003 Transportation Operations 47,744 47,744 Add budget revenue received from Marin Clean Energy for transportation special fees 1003 Transportation Operations 50 50 Appropriate budget revenue received as of 6/30/23 1003 Transportation Operations 7,744 7,744 Appropriate budget revenue received as of 6/30/23 1015 Marina Operations 4,499 4,499 Appropriate budget additional revenue received as of 6/30/23 1050 CR-Plannin g and Building Operations 52,351 52,351 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule Total Other Operations Funds 112,431 - 112,431 1001 Secured Pension Override Special 8,660,127 8,660,127 Appropriate budget additional revenue received as of 6/30/23 1010 North Richmond Waste Special 283,181 283,181 Appropriate budget additional revenue received as of 6/30/23 1013 Hazmat Fund Special 6,209 6,209 Appropriate budget to cover Hazmat expenditures 1017 ECI A Special 6,000,000 6,000,000 ECIA Grant revenue received 1055 Encroachment Services Special 41,175 41,175 Appropriate budget additional revenue received as of 6/30/23 1055 Encroachment Services Special 100 100 Appropriate budget additional revenue received as of 6/30/23 1055 Encroachment Services Special 93,092 93,092 Appropriate budget additional revenue received as of 6/30/23 1055 Encroachment Services Special 97,226 97,226 Appropriate budget additional revenue received as of 6/30/23 1305 Public Art Special 877,674 877,674 Appropriate budget additional revenue received as of 6/30/23 1305 Public Art Special 451,000 451,000 Appropriate budget revenue received as of 6/30/23, Richmond Country Club Total Special Revenue Funds 16,509,784 - 16,509,784 Total Non-General Fund Requests 19,280,874 5,078,935 14,201,939 2 of 21889
1 RESOLUTION NO. ________

A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA ADOPTING THE FISCAL YEAR 2022-23 YEAR-END BUDGET ADJUSTMENTS

WHEREAS, pursuant to Section 1(b) of Article IV of the Richmond City Charter the City Manager is required to prepare an annual budget for the review and approval by the City Council; and

WHEREAS, the City’s budget was originally adopted on June 21, 2022, and the revised Mid-Year Budget was adopted on March 28, 2023; and

WHEREAS, the City experienced economic changes since the budget was last adopted and needs to amend the budget to reflect these changes; and

WHEREAS, the City Council has reviewed the proposed year-end budget adjustments for the Fiscal Year 2022-23; and

NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Richmond, California hereby adopts the resolution to approve the FY 2022-23 year-end budget adjustments in the table below,
1890
2 Fund Fund Description Fund Type
Revenue
Adjustments
Increase/
(Decrease)
Expense
Adjustments
Increase/
(Decrease)
Net Impact Justification
0001 General Fund General Fund 6,102,459 6,102,459 One-time payment into Other Post Employment Benefits, Trust Fund. 0001 General Fund General Fund (750,000) 750,000 Traffic Calming, transfer budget from General Fund Public Works object to General Fund transfer-out object code, to move funding to capital project fund 0001 General Fund General Fund 750,000 (750,000) Traffic Calming, transfer budget from General Fund Public Works to General Capital Project Fund
0001 General Fund General Fund (1,000,000) 1,000,000 Street Paving, transfer budget from General Fund street improvement object code to General Fund transfer-out object code, to move funding to capital project fund 0001 General Fund General Fund 1,000,000 (1,000,000) Street Paving, transfer budget from General Fund to General Capital Project Fund 0001 General Fund General Fund (358,160) 358,160 Pt. Molate, transfer budget from General Fund object code to transfer-out object code to move funding to capital project fund
0001 General Fund General Fund 358,160 (358,160) Pt. Molate transfer budget from General Fund to General Capital for Cottages 0001 General Fund General Fund (6,209) 6,209 General Fund miscellaneous expense to transfer-out object code for Hazmat expense 0001 General Fund General Fund 6,209 (6,209) Transfer-out to cover Hazmat expenditures 0001 General Fund General Fund (282,525) 282,525 Network Refresh, transfer budget from General Fund Information Technology object code to transfer-out object code
0001 General Fund General Fund 282,525 (282,525) Network Refresh, transfer-out to General Capital Fund for capital project Total General Fund Requests - 6,102,459 6,102,459 1004 Asset Seizure Capital Improvement (14,983) (14,983) Reduce revenue budget, Asset Seizure revenue is unpredictable 2001 General Capital Capital Improvement 750,000 750,000 Traffic Calming, transfer-in funding from General Fund to General Capital Fund for project 2001 General Capital Capital Improvement 750,000 (750,000) Appropriate budget in General Capital Fund for Traffic Calming 2001 General Capital Capital Improvement 1,000,000 1,000,000 Transfer-in to General Capital Fund for Street Paving Project 2001 General Capital Capital Improvement 1,000,000 (1,000,000) Appropriate budget in General Capital Fund for Street Paving 2001 General Capital Capital Improvement 358,160 358,160 Transfer-in to General Capital Fund for Pt. Molate Cottages 2001 General Capital Capital Improvement 358,160 (358,160) Appropriate budget in General Capital Fund for Pt. Molate Cottages 2001 General Capital Capital Improvement 282,525 282,525 Transfer-in to General Capital Fund for Network Refresh capital project 2001 General Capital Capital Improvement 282,525 (282,525) Appropriate budget in General Capital Fund for Network Refresh capital project 2001 General Capital Capital Improvement 91,300 91,300 Appropriate budget revenue received as of 6/30/23 2110 Impact Fee Parks/PW Capital Improvement 7,416 7,416 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2111 Impact Fee Traffic Capital Improvement 44,671 44,671 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2113 Impact Fee Fire Capital Improvement (1) (1) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2113 Impact Fee Fire Capital Improvement 7,784 7,784 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2114 Impact Fee Police Capital Improvement (139,778) (139,778) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2115 Impact Fee Comm/Aquatic Capital Improvement 28,257 28,257 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2115 Impact Fee Comm/Aquatic Capital Improvement 1,622 1,622 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2116 Impact Fee Open Park Capital Improvement 117,809 117,809 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2116 Impact Fee Open Park Capital Improvement 6,783 6,783 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Library Capital Improvement 31,919 31,919 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Library Capital Improvement (35,147) (35,147) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Library Capital Improvement 10,808 10,808 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Library Capital Improvement 495 495 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Library Capital Improvement 20,491 20,491 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2117 Impact Fee Library Capital Improvement 7,706 7,706 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Drainage Capital Improvement 12,035 12,035 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Drainage Capital Improvement (197,089) (197,089) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Drainage Capital Improvement 47,751 47,751 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Drainage Capital Improvement 1,950 1,950 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Drainage Capital Improvement 36,395 36,395 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2119 Impact Fee Storm Drainage Capital Improvement 112,454 112,454 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 3,625 3,625 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement (346,355) (346,355) Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 69,236 69,236 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 12,104 12,104 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 113,743 113,743 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2120 Impact Fee Wastewater Capital Improvement 162,973 162,973 Appropriate budget, Impact Fee revenue received 1/1/23 to 6/30/23 2110 Impact Fee Parks/PW Capital Improvement 383 (383) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2111 Impact Fee Traffic Capital Improvement 18,203 (18,203) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2113 Impact Fee Fire Capital Improvement 1,895 (1,895) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2114 Impact Fee Police Capital Improvement 1,480 (1,480) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2115 Impact Fee Comm/Aquatic Capital Improvement 1,679 (1,679) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2116 Impact Fee Open Park Capital Improvement 7,004 (7,004) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2117 Impact Fee Library Capital Improvement 3,287 (3,287) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2119 Impact Fee Storm Drainage Capital Improvement 6,552 (6,552) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2120 Impact Fee Wastewater Capital Improvement 11,868 (11,868) 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule 2111 Impact Fee Traffic Capital Improvement (52,000) 52,000 Boom Truck for Public Works, transfer budget from Traffic Impact Fee Public Works object code to transfer-out object code, to move funding to the Equipment Services Fund 2111 Impact Fee Traffic Capital Improvement 52,000 (52,000) Boom Truck for Public Works transfer-out from Traffic Impact Fee Fund to the Equipment Services Fund for purchase
Total Captial Improvement Funds 2,606,659 2,443,035 163,624 4201 RHA - Capital Fund Housing Authority (111,014) (111,014) Re-allocate budget revenue GF Transfer In to RHA 4404 RHA - Nevin Plaza Housing Authority (758,980) (758,980) Re-allocate budget revenue GF Transfer In to RHA 4405 RHA - Nystrom Village Housing Authority (355,119) (355,119) Re-allocate budget revenue GF Transfer In to RHA 4501 RHA - COCC Housing Authority (238,105) (238,105) Re-allocate budget revenue GF Transfer In to RHA 4101 RHA - HCV Housing Authority 1,463,218 1,463,218 Re-allocate budget revenue GF Transfer In to RHA Total Richmond Housing Authority Funds - - - 5001 Insurance Reserves Internal Service 2,349,000 (2,349,000) FY2021-22 PO #22200952 closed due to change of vendor. Budget needed to be reinstated to complete project
5001 Insurance Reserves Internal Service 234,900 (234,900) FY2021-22 PO #22200952 closed due to change of vendor. Budget needed to be reinstated to complete project
5003 Equipment Replacment Internal Service 52,000 52,000 Boom Truck, transfer-in funding from Traffic Impact Fee to Equipment Services Fund for purchase
5003 Equipment Replacment Internal Service 52,000 (52,000) Appropriate budget in Equipment Services Fund for Boom Truck purchase Total Internal Service Funds 52,000 2,635,900 (2,583,900) 1003 Transportation Operations 44 44 Appropriate budget revenue received as of 6/30/23 1003 Transportation Operations 47,744 47,744 Add budget revenue received from Marin Clean Energy for transportation special fees 1003 Transportation Operations 50 50 Appropriate budget revenue received as of 6/30/23 1003 Transportation Operations 7,744 7,744 Appropriate budget revenue received as of 6/30/23 1015 Marina Operations 4,499 4,499 Appropriate budget additional revenue received as of 6/30/23 1050 CR-Planning and Building Operations 52,351 52,351 3% of Impact Fee revenue to Planning Department for Admin Fee per Master Fee Schedule Total Other Operations Funds 112,431 - 112,431 1001 Secured Pension Override Special 8,660,127 8,660,127 Appropriate budget additional revenue received as of 6/30/23 1010 North Richmond Waste Special 283,181 283,181 Appropriate budget additional revenue received as of 6/30/23 1013 Hazmat Fund Special 6,209 6,209 Appropriate budget to cover Hazmat expenditures 1017 ECIA Special 6,000,000 6,000,000 ECIA Grant revenue received 1055 Encroachment Services Special 41,175 41,175 Appropriate budget additional revenue received as of 6/30/23 1055 Encroachment Services Special 100 100 Appropriate budget additional revenue received as of 6/30/23 1055 Encroachment Services Special 93,092 93,092 Appropriate budget additional revenue received as of 6/30/23 1055 Encroachment Services Special 97,226 97,226 Appropriate budget additional revenue received as of 6/30/23 1305 Public Art Special 877,674 877,674 Appropriate budget additional revenue received as of 6/30/23 1305 Public Art Special 451,000 451,000 Appropriate budget revenue received as of 6/30/23, Richmond Country Club Total Special Revenue Funds 16,509,784 - 16,509,784 Total Non-General Fund Requests 19,280,874 5,078,935 14,201,939 General Fund Requests

*****************************
I certify that the foregoing resolution was passed and adopted by the Council of the City of Richmond, California at a regular meeting thereof held October 6, 2020 by the following vote:

1891
3 AYES:

NOES:

ABSTENTIONS:

ABSENT:

________________________________________
Clerk of the City of Richmond

(SEAL)

Approved:

_______________________________
Mayor

Approved as to form:

____________________________
City Attorney

1892

Reso. No.

Page 1 of 2 ends

RESOLUTION NO. ________

A RESOLUTION OF THE COUNCIL OF THE CITY OF RICHMOND, CALIFORNIA,

TO APPROPRIATE FUNDS TO COVER ESTIMATED SHORTFALL IN CAPITAL IMPROVEMENT PROJECTS IN FY 2023-24

WHEREAS, pursuant to Section 1(b) of Article IV of the Richmond City Charter the City Manager is required to prepare an annual budget for the review and approval by the City Council; and

WHEREAS, the City’s budget was originally adopted on June 21, 2022, and the revised Mid-Year Budget was adopted on March 28, 2023; and

WHEREAS, the City experienced better than expected revenue and savings in the expenditures resulting in General Fund unspent funds of $9,520,218; and

WHEREAS, the City Council reviewed the list of high-priority grant funded capital improvement projects with a projected funding shortfall in FY 2023-24, FY 2024-25, and FY 2025-26; and

WHEREAS, General Fund unspent funds were identified as sources to fund the estimated FY 2023-24 and FY 2024-25 capital projects shortfall of $5,065,000 and $3,261,747 respectively; and

WHEREAS, FY 2024-25 capital projects shortfall was funded only partially due to the limited availability of the unspent funds; and

WHEREAS, General Fund unspent funds were also identified to fund asbestos abatement project at Stenmark Cottages, $520,000 and Richmond Fire Department EOC IT Equipment upgrades $278,501; and

NOW, THEREFORE, BE IT RESOLVED, that the Council of the City of Richmond, California hereby adopts the resolution to appropriate ECIA and ARPA, and General Fund funds as follows:

Fund Fiscal Year 2023-24
General Fund- 0001- Capital Projects FY 2024-25 Shortfall $5,460,000 General Fund- 0001- Capital Projects FY 2025-26 Shortfall $3,261,717 General Fund- 0001- Stenmark Cottages Asbestos Abatement $520,000 General Fund -0001-Richmond FIRE EOC Equipment $278,501 Total $9,520,218

Fund Fiscal Year 2023-24
General Capital Fund- 2001- (Transfer In) ($9,520,218)
1893

Reso. No.

Page 2 of 2 ends

General Capital Fund- 2001- Projects (Attachment 7) $9,520,218 Net -

**********************

I certify that the foregoing resolution was passed and adopted by the City Council of the City of Richmond at a regular meeting thereof held October 24, 2023, by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

______________________________
City Clerk of the City of Richmond

(SEAL)

Approved:

__________________________________
Mayor

Approved as to form:

___________________________________
City Attorney

1894
PW CIP ENG FY23-24 Attachment 5 - Capital Improvment Projects with Projected Shortfall 10/19/2023 Contra Costa Transportation Authority -
Measure J TLC $ 848,000
ARPA $ 1,000,000
Federal Transit Adminstration Statewide
Transportation Improvement Program $ 2,821,000 Road Maintenance Rehabilitation Account
SB-1 (FY24-23) $ 405,000
2 01A04 AMERICANS WITH DISABILITIES ACT (ADA) MISCELLANEOUS SIDEWALK REHAB NO G eneral Fund $ 3,115,181 - $ NA OTHER CA Transportation Commission $ 725,000
Sims Metal (Fair share contribution) $ 65,000 4 23G07 ATP QUICK BUILD HARBOUR WAY S. CYCLE TRACK YES Metropolitan Transmission Commission (MTC) $ 325,000 CONSTRUCTION
5 SB115 STREET PAVING - SB1 - CUTTING HARBOUR WAY S. BIKEWAY NO RMRA - SB1 $ 1,160, 253 CONSTRUCTION 6 23006 BOORMAN PARK REVITALIZATION YES CA-Department of Parks and Recreation- Statewide Park Development and $ 4,165,000 $ 6,950,000 (3,000,000)$ COMPLETION DESIGN 3,000,000 $ CA Department of Transportation $ 1,903,395
State Gas Tax (Local Match) $ 248,340
8 AR247 BOOKER T. ANDERSON COMMUNITY CENTER (BTA CC) HVAC RENOVATION AND REBUILD NO ARPA $ 500,000 $ 500 ,000 - $ COMPLETION DESIGN 29122 CARLSON BLVD. CROSSTOWN CONNECTION IMPROVEMENTS YES Metropolitan Transmission Commission (MTC) 500,000 CONSTRUCTION
ECIA Fund 1,759,073
Measure J 91,435
10 23033 CARLSON BLVD. CROSSTOWN CONNECTION IMPROVEMENTS - PHASE II NO G eneral Fund 750,000 PLANNING 11 23034 CORP YARD BATHROOM REMODEL NO General Fund $ 131,235 $ 175,000 (45,000) $ COMPLETION DESIGN 45,000 $ 12 23012 CORP YARD FUEL SITES UPGRADES NO General Fund $ 179,211 $ 1,680,000 (1,380,000) $ COMPLETION DESIGN 1,380,000 $ 13 23029 DIRT WORLD BIKE PARK YES State of California $ 1,170,000 $ 1,170,000 - $ COMPLETION DESIGN 14 05G01 FIRE STATION 66 - GENDER SPECIFIC RESTROOMS NO G eneral Fund $ 774,645 $ 1,281,000 (505,000) $ COMPLETION DESIGN 505,000 $ 15 29125 GREENING THE YELLOW BRICK ROAD YES California Natural Resources Agency $ 4,100,000 $ 4,100,000 - $ COMPLETION CONSTRUCTION 16 23023 GREENWAY REHAB AND BIKE EDUCATION YES Metropolitan Transmission Commission (MTC) $ 100,000 $ 124,810 (25,000)$ COMPLETION OTHER 25,000 $ 17 23004 HARBOUR 8 PARK EXTENSION YES CA-Department of Parks and Recreation- Statewide Park Development and $ 8,500,000 $ 8,500,000 - $ COMPLETION CONSTRUCTION 18 23014 HILLTOP FIRE STATION CARD READER NO General Fund $ 50,000 $ 70,000 (20,000) $ COMPLETION PLANNING 20,000 $ 19 23022 HARBOUR WAY & WRIGHT SECTION 130 YES Federal Highway Administration through Caltrans $ 1,200,000 $ 1,200,000 - $ PHASE DESIGN Contra Costa Transportation Authority
(CCTA) $ 2,970,000
Federal Transit Adminstration Statewide
Transportation Improvement Program $ 6,373,000 WCCTAC $ 700,000
Metropolitan Transmission Commission
(MTC) $ 2,800,000
WCCTAC (To be awarded) $ 1,500,000
21 01015 MARTIN LUTHER KING JR. COMMUNITY CENTER NO Insurance Reserve Fund $ 1,030,102 $ 798,789 - $ PHASE PLANNING # PROJ
# DESCRIPTION TOTAL PROJECT
COST
**ESTIMATED**

TOTAL PROJECT

SHORTFALL

TOTAL PROJECT
FUNDING DELIVERY:

PHASE OR

COMPLETION

CURRENT PHASE GRANT GRANT/FUNDING SOURCE GRANT/FUND
AMOUNT FY 23-24 FY 24-25 FY 25-26 FY26-27
3 23G06 ATP QUICK BUILD CUTTING/HOFFMAN YES
$ 2,690,506 (280,000)$ COMPLETION COMPLETION DESIGN1 29120 13TH STREET COMPLETE STREET YES $ 5,291,466 (215,000) $ 280,000$
215,000$
7 23G02 BRIDGE PREVENTIVE MAINTENANCE YES $ 2, 222,679 (65,000)$ COMPLETION DESIGN 65,000 $ 29104 CARLSON BLVD. CROSSTOWN CONNECTION IMPROVEMENTS NO CONSTRUCTION 1,730,000$
$ 3,393,233 (520,000)$ COMPLETION 520,000 $ COMPLETION DESIGN20 29110 I-80 CENTRAL INTERCHANGE PHASE II YES $ 16,073, 000 (1,730,000)$ 9 CONSTRUCTION

Page 1 of 31895 ends

PW CIP ENG FY23-24 Attachment 5 - Capital Improvment Projects with Projected Shortfall 10/19/2023 # PROJ
# DESCRIPTION TOTAL PROJECT
COST
**ESTIMATED**

TOTAL PROJECT

SHORTFALL

TOTAL PROJECT
FUNDING DELIVERY:

PHASE OR

COMPLETION

CURRENT PHASE GRANT GRANT/FUNDING SOURCE GRANT/FUND
AMOUNT FY 23-24 FY 24-25 FY 25-26 FY26-27
22 23015 NATIVE AMERICAN HEALTH CENTER NO General Fund $ 50,000 $ 50,000 - $ PHASE PLANNING 23 AR232 NEVIN CENTER HVAC - ARPA YES ARPA $ 500,000 $ 1,036,000 (575,000) $ COMPLETION DESIGN 575,000 $ 24 23017 PARKS YARD FUEL SITE UPGRADES NO General Fund $ 220,000 $ 1,680,000 (1,460,000) $ COMPLETION PLANNING 1,460,000 $ 25 AR233 RECREATION CENTER HVAC - ARPA YES ARPA $ 500,000 $ 1,092,000 (640,000) $ COMPLETION DESIGN 640,000 $ 26 23037 SANTA RITA ROAD STABILIZATION PROJECT NO Insurance Reserve Fund $ 1,040,000 $ 1,140,000 - $ COMPLETION DESIGN Utility User Tax $ 3,000, 000
Park Open Space Impact Fee $ 373,264
28 23028 SHIELDS-REID PARK REVITALIZATION YES State Department for Parks and Recreation $ 8,000,000 $ 8,000,00 0 - $ COMPLETION DESIGN 29 01A05 STREET PAVING NO State Gas Tax $ 2,810,455 $ 2,810,455 - $ COMPLETION OTHER 30 TBD STREET PAVING - SB1 ANNUAL ALLOCATION NO Road Maintenance Rehabilitation Account SB-1 (FY23-24) $ 2,864,927 $ 2,864,927 - $ COMPLETION PLANNING 31 01C09 SURFACE DRAINAGE NO Measure J $ 300,000 $ 300,000 - $ NA OTHER Measure J $ 300,000
General Fund $ 900,000
33 01B02 TRAFFIC SAFETY IMPROVEMENTS NO Measure J $ 375,000 $ 375,000 - $ NA OTHER FHA-Thru CA- Department of
Trans
portation $ 6,209,000
ECIA Fund $ 1,998,343
35 YELLOW BRICK ROAD CLEAN, GREEN & BEAUTIFUL - STREET LIGHTING (FOR BID) YES -$ COMPLETION DESIGN 36 YELLOW BRICK ROAD CLEAN, GREEN & BEAUTIFUL - ADD SCOPE TO POGO PARK YBR CONTRACT YES -$ COMPLETION DESIGN 37 YELLOW BRICK ROAD CLEAN, GREEN & BEAUTIFUL - HARBOUR 8 PARK YES -$ COMPLETION DESIGN 38 TBD NEW LINCOLN SAFE ROUTES TO SCHOOL (OBAG 2) YES Federal Highway Adminstratiom Congestion Mitigation and Air Quaility $ 497,000 $ 761,880 (265,000)$ COMPLETION DESIGN 265,000 $ 39 TBD NEW BARRETT AVENUE ROAD IMPROVEMENTS (HSIP) YES Highway Safety Improvement Program (HSIP) Cycle 11 (State Grant) $ 1,406,880 $ 1,719,520 (315,000)$ COMPLETION PLANNING 315,000 $ 40 TBD NEW MCDONALD AVE PEDESTRIAN CROSSING SAFETY UPGRADES (HSIP) YES Highway Safety Improvement Program (HSIP) Cycle 11 (State Grant) $ 224,640 $ 274,560 (50,000)$ COMPLETION PLANNING 50,000 $ 41 TBD NEW MCBRYDE SAFE ROUTES TO PARK (OBAG 3) YES Federal Highway Adminstration One Bay Area Grant $ 1,027,947 $ 1,285,730 (260,000)$ COMPLETION PLANNING 185,000 $ 75,000 $ 42 TBD NEW BAYVIEW TO BART (OBAG 3) YES Federal Highway Adminstration One Bay Area Grant $ 1,674,703 $ 1,944,122 (270,000)$ COMPLETION PLANNING 230,000 $ 40,000 $ 43 23031 NEW RICHMOND ART AND LIGHTING YES California Department of Transportation $ 4,000,000 $ 4,000,000 - $ COMPLETION PLANNING 44 TBD NEW RICHMOND WELLNESS TRAIL PHASE 2 (TPL LEAD) YES Transformative Climate Communities $ 4,816, 154 $ 4,816,154 - $ COMPLETION PLANNING 45 TBD NEW NEIGHBORHOOD COMPLETE STREETS YES Transformative Climate Communities $ 5,181,173 5,181,173 $ - $ COMPLETION PLANNING California Natural Resources Agency $ 1,598,844 General Fund $ 650,000
47 CSA20 AUDITORIUM CONVENTION CENTER UPGRADES NO Chevron Settlement Agreement $ 1,500,000 1,500,000 $ - $ COMPLETION CONSTRUCTION 48 RICHMOND COMMUNITIES CLEAN COLLABORATIVE - BOORMAN PARK REMEDIATION YES $ 5,503,742 (1,500,000) $ COMPLETION DESIGN 1,500,000 $ 49 RICHMOND COMMUNITIES CLEAN COLLABORATIVE - 7TH ST BIKE LANE YES $ 600,112 - $ COMPLETION PLANNING 50 CSA27 SHIELDS-REID COMMUNITY CENTER HVAC SYSTEM UPGRADE NO Chevron Settlement Agreement $ 149,650 1,050,000$ (900,000) $ COMPLETION DESIGN 900,000 $ 32 23035 TRAFFIC CALMING PROGRAM NO $ 1,200,000 - $ NA OTHER DESIGN 750,000$ 27 01A14 SF BAY TRAIL- PT. MOLATE YES $ 4,410,000 (750,000) $ COMPLETION 34 29113 YELLOW BRICK ROAD YES $ 8,499,000 (300,000) $ COMPLETION CONSTRUCTION 300,000 $ 23032 California Department of Transportation $ 4,999,955 $ 5,000,000 46 22A02 FLOOD RISK REDUCTION - RHEEM CREEK YES $ 2,248,844 23030 California Department of Transportation $ 5,000,000 -$ COMPLETION BID/AWARD

Page 2 of 31896 ends

PW CIP ENG FY23-24 Attachment 5 - Capital Improvment Projects with Projected Shortfall 10/19/2023 # PROJ
# DESCRIPTION TOTAL PROJECT
COST
**ESTIMATED**

TOTAL PROJECT

SHORTFALL

TOTAL PROJECT
FUNDING DELIVERY:

PHASE OR

COMPLETION

CURRENT PHASE GRANT GRANT/FUNDING SOURCE GRANT/FUND
AMOUNT FY 23-24 FY 24-25 FY 25-26 FY26-27
California State Library $ 9,712,979.00
General Fund $ 15,000,000.00
ARPA $ 4,156,490.00
Library - Impact Fee $ 700,000.00
SCC Grant $ 3,252,273
EPA Fund $ 1,147, 500
SF Bay Restoration Authority $ 4,600,000
Strawberry Drive Mitigation (City match) 14,466.00
SFPP Carquinez Strait mitigation (City
match) 216,000.00
53 23008 BTA COMMUNITY CENTER RESTORTATION NO Insurance Reserve Fund $ 3,309,678 $ 3,309,678 - $ COMPLETION CONSTRUCTION 54 PM902 POINT MOLATE COTTAGES REPAIR NO General Fund $ 358,160 $ 357,350 - $ PHASE PLANNING 55 36028 CAFETERIA BUILDING @ SHIPYARD #3 NO Port Fund $ 141,894 $ 142,000 - $ PHASE PLANNING Total 128,678,882$ (15,830,000) $ 5,460,000 $ 5,065,000 $ 3,845,000 $ 1,460,000 $ TOTAL ESTIMATED ROUGH ORDER OF MAGNITUDE SHORTFALL (15,830,000)$ 52 23021 TERMINAL 4 WHARF REMOVAL YES $ 9,612,605 (760,000) $ COMPLETION COMPLETION PLANNING51 AR231 MAIN LIBRARY REMODEL YES $ 29,569,469 - $ CONSTRUCTION 760,000$

Page 3 of 31897 ends

Draft
Fiscal Year 2022-23
Quarter 4 Financial Report
and Unspent Funds
Attachment 6 – Q4 Presentation
1898
Overview
2 • General Fund Revenue
• General Fund Expenditures
• General Fund Adjustments
• Non-General Fund Revenue
• Non-General Fund Expenditures
• Administrative Budget Adjustments
• Reserve Level
• Capital Improvement Projects Shortfall: Unfunded
• Questions
1899
General Fund Revenue
3 Proposed
Budget
Adjustments
Variance
FY2022-23
Estimated
Year-End
Actual
FY2022-23
Revised
Budget
106.81%51,919,49046,608,929Property Taxes

99.75%55,417,52055,554,137Sales & Use Tax
107.49%54,673,13150,861,279Utility Users Tax

87.40%19,623,67722,452,187Other Taxes
164.37%18,214,21711,080,956Licenses, Permits & Fees

71.56%2,553,7323,568,792Charges for Services
100.00%438,506438,569Grants
-10.0%2,108,8612,342,245Other Revenue
100.03%19,727,19819,720,418Transfers In
105.08%226,024,075215,103,041Total Revenue
1900
Business Tax Paid by Business Class
4 Class A:Retail Sales
21%
Class C:Auto Sales &
Manufacture
17%
Class F:Construction Contractors
11%
Class G: Business & Personal
Services
5%
Class H:Professional & Semi
Profesional Services
17%
Class K1: Rental Res/Non
21%
Other
8%
1901
General Fund Expenditures
5 PROPOSED
BUDGET

ADJUSTMENTS

VARIANCE

ESTIMATED

YEAR-END

ACTUALS
FY 2022-23

REVISED
BUDGET

GENERAL FUND
102.16%69,865,034 68,387,383 Salaries & Wages
6,102,459111.74%67,245,882 60,179,791 Payroll Fringe Benefits

59.16%11,901,455 20,116,834 Professional Services
(364,368)72.98%10,809,626 14,811,473 Other Operating
100.00%15,277,766 15,277,766 Cost Pool
(2,032,525)89.14%3,536,627 3,967,455 Asset Capital Outlay 283.97%2,944,812 1,037,009 Debt Service
102.58%(3,622,739)(3,531,610)A87 Cost Plan Reimbursement 2,396,89396.79%33,772,060 34,893,588 Transfers Out
6,102,45998.42%211,730,524 215,139,689 TOTAL EXPENSES
14,293,551 (36,648)GENERAL FUND NET
+SURPLUS/(-DEFICIT)
1902
General Fund Adjustments
6 VARIANCE

ESTIMATED

YEAR-END

ACTUALS
FY 2022-23

REVISED
BUDGET

GENERAL FUND
105.08%226,024,075215,103,041TOTAL REVENUES

98.42%211,730,524215,139,689TOTAL EXPENSES
14,293,551(36,648)GENERAL FUND NET
+SURPLUS/(-DEFICIT)
Estimated AmountItem
14,293,551FY22-23 Unspent Balance
(2,393,278)Contribution to Reserve
11,900,273Available Unspent Funds
1,190,027Contribution to OPEB @ 10%
1,190,027Contribution to CALPERS @ 10%
9,520,218Remaining for Council Goals and Priorities
1903
Non-General Fund Revenues
7 PROPOSED
BUDGET

ADJUSTMENT

VARIANCE

ESTIMATED

ACTUALS THRU
JUNE 2023

REVISED

BUDGETFUND
2,606,65938%32,372,77285,313,067Total Capital Improvement Fund 742%164,051,58322,107,202Total Debt Service Funds
76%44,808,48158,991,980Total Enterprise Funds
103%2,280,4312,223,584Total Housing Funds
105%5,120,8934,895,044Total Housing Authority Funds
52,000109%27,036,33724,782,653Total Internal Service Funds 112,43165%25,725,11239,280,890Total Other Operations Funds 734%1,213,629165,305Total Pension Funds
16,509,784157%62,822,67139,967,907Total Special Revenue Funds 19,280,874132%365,431,909277,727,632Total All Funds
1904
Non-General Fund Expenditures
8 PROPOSED
BUDGET

ADJUSTMENTS

VARIANCE

ESTIMATED
FY 2022-23

YEAR-END

ACTUALS

REVISED BUDGETFUND TYPE
2,443,03628%28,458,179 100,170,791 Total Capital Improvement Funds 821%177,357,834 21,612,086 Total Debt Service Funds
27%33,303,955 121,226,354 Total Enterprise Funds
20%1,101,601 5,496,861 Total Housing Funds
85%4,182,157 4,915,044 Total Housing Authority Funds
2,635,90081%24,224,430 29,809,742 Total Internal Service Funds 62%27,795,933 44,817,360 Total Other Operations Funds
713%1,500,226 210,463 Total Pension Funds
57%33,020,361 58,088,338 Total Special Revenue Funds
5,078,93686%330,944,677 386,347,037 Total All Funds
1905
Proposed Administrative Budget Adjustments
 General Fund, expenditure increase, $6,102,459
 General Capital Funds, revenue increase $2,606,659, expenditure increase $2,443,035.  Richmond Housing Authority Funds, no net impact.
 Internal Services Funds revenue increase $52,000, expenditures increase $2,635,900.  Other Operations revenue increase $112,431.
 Special Revenue Funds revenue increase 16,509,784.
9 1906
Reserve Level
10 Percentage AmountLine Item

20.88%44,935,389FY 22-23 Beginning Reserve Level
225,374,607FY 23-24 General Fund Budget

21.00% 47,328,667FY23-24 Target Reserve Level @ 21%
2,393,278Additional Funds Needed
1907
11 Capital Improvement Project Shortfall
3 Fiscal Years: Unfunded
FY 2023-24 $6,258,501
•CIP Shortfall (Following Slides) - $5,460,000
•Stenmark Cottages - $520,000
•Richmond Fire Department EOC/IT Equipment
Upgrades -$278,501
•Radio Communication’ Basement Upgrade
•Cabling, Conduit and Services
•EOC Desktops with Conference Audio Video
•EOC Laptops
•Printer/Scanner/Copier
•Smart Board Plotter
•Cell Phones
•Cellular Hot Spots
•Portable Radio
FY 2024-2025 $3,261,717
•Boorman Park Revitalization - $3,000,000
•Corp Yard Bathroom Remodel - $45,000
•Hilltop Fire Station Card Reader - $20,000
•McBryde Safe Routes to Park - $75,000
•Bayview to Bart - $40,000
•Fire Station 66 – Gender Specific Restrooms –
$81,717 (Partial Funding)
Total Unfunded $9,520,218
1908
12 FY 23-24 Capital Improvement Project Shortfall – Unspent Funds FY 2023-2024
Shortfall
Total Project
CostCurrent PhaseGrant
FundedDescriptionProject ##
$215,000$5,291,466DesignYes13TH Street Complete Street291201 $280,000$2,690,506ConstructionYesATP Quick-Build: Cutting/Hoffman and Harbour Way S. Cycle Track
23GO6/
23G07
2 $520,000$3,393,233ConstructionYesCarlson Crosstown Phase I and II29122/ 23033
3 $25,000$124,810OtherYesGreenway Rehab and Bike Education230234 $185,000$1,285,730PlanningYesMcBryde Safe Routes to ParksTBD5 $230,000$1,944,122PlanningYesBayview to BartTBD6
1909
13 FY 23-24 Capital Improvement Project Shortfall – Unspent Funds (Continued) FY 2023-2024
Shortfall
Total Project
CostCurrent PhaseGrant
FundedDescription Project ##
$65,000$2,222,679DesignYesBridge Preventative Maintenance23G021 $750,000$4,410,000DesignYesSF Bay Trail – Point Molate01A142 $300,000$8,499,000ConstructionYesYellow Brick Road291133 $265,000$761,880DesignYesLincoln Safe Routes to SchoolTBD4 $315,000$1,719,520PlanningYesBarrett Avenue Road ImprovementsTBD5 $50,000$274,560PlanningYesMcDonald Ave Pedestrian Crossing Safety Upgrades
TBD6
$1,500,000$5,503,742DesignYesRichmond Communities Clean Collaborative – Boorman Park Site
Remediation
230307
$760,000$9,612,605ConstructionYesTerminal 4 Wharf Removal230218 Total $5,460,000
1910
Thank You!
• Questions?
14 1911

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November 7, 2023

Community Development

DATE: November 7, 2023
TO: Mayor Martinez and Members of the City Council
FROM:

Lina Velasco, Director of Community Development
Nannette Beachman, Director of Economic Development

Subject:

Cannabis Ordinance Amendments
FINANCIAL IMPACT: The Economic Development Department received a cannabis equity grant from California Go-Biz to aid local equity program efforts to support equity applicants and equity licensees. Through this grant, the City’s Economic Development Department is able to offer technical
support, regulatory compliance assistance, and
assistance with securing the capital necessary to begin a business which are often barriers to entry into the
regulated cannabis industry.

PREVIOUS COUNCIL
ACTION:

December 20, 2022

STATEMENT OF THE
ISSUE:

During the past year, City staff has collaborated with the Economic Development Commission and SCI Consulting
Group to implement the City's Cannabis Equity Program,
which includes evaluating increasing the maximum
number of cannabis retailer permits available in the City.

City staff has prepared amendments to Richmond
Municipal Code (RMC) Section 15.04.610.270 that
include increasing the number of storefront retail permits and adding new non-storefront retail (delivery only)
permits, with a certain amount of the new retailer permits to be reserved for equity applicants. Additional
amendments proposed include updating definitions,
clarifying requirements around Cannabis Business
Permits, and related amendments to clarify regulations.

AGENDA
REPORT
1912

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November 7, 2023
RECOMMENDED ACTION:

HOLD a Public Hearing; and INTRODUCE (first reading)
an ordinance making certain amendments to Richmond
Municipal Code (RMC) Section 15.04.610.270
Marijuana/Cannabis Commercial Uses, that includes, but
is not limited to, increasing the number of storefront retail permits and adding new non-storefront retail (delivery
only) permits, with a certain amount of the new retailer licenses to be reserved for equity applicants –
Community Development Department (Lina Velasco 510-
620-6841).

DISCUSSION:

Background

On December 20, 2022, the City Attorney's Office and staff brought forth an item to the City Council regarding a former cannabis dispensary license holder's request to amend the City’s Cannabis Ordinance (Richmond Municipal Code Section 15.04.610.270). The requestor sought City action to issue an additional cannabis retailer license within the City of Richmond. In response, the City Council passed a motion, instructing staff to collaborate with the Economic Development Commission to conduct research on expanding the number of cannabis retail locations in the City.

Furthermore, the City Council had previously worked with staff to develop a Cannabis Equity Program (CEP) that prioritizes granting new cannabis retailer licenses to equity candidates. The City secured state grant funding to establish the CEP, aimed at assisting individuals impacted by past cannabis criminalization in owning and operating cannabis businesses. However, to fully implement the CEP, the City Council needs to determine and set the maximum number of retailer licenses allowed in the City.

As per the Council's directive, staff members have been working on updating the City's regulations pertaining to medicinal and adult-use commercial cannabis activities, with the goal of increasing the total number of cannabis retailers. On April 12, 2023, staff presented their findings to the Economic Development Commission, gathering feedback and recommendations on expanding the number of cannabis retail establishments in the City. Additionally, staff is proposing further amendments to enhance and clarify the City's permitting process.

Retail Expansion Options:

On April 12, 2023, staff presented research findings to the Economic Development Commission, exploring the feasibility of adding more retail cannabis stores. The analysis involved studying comparable and neighboring jurisdictions while assessing the current state of the retail cannabis industry within the City. 1913

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November 7, 2023
Determining the precise number of cannabis retail locations that a jurisdiction can support is challenging due to varying factors between different areas. There is no one- size-fits-all metric for determining the optimal number of cannabis retail locations a jurisdiction can sustain. Nevertheless, the staff examined the following three potential metrics as a starting point:

1. The City's population size or density;

2. Competition from surrounding cities and counties; and

3. Consumer demand for cannabis products in the area.

Population Density:

Population density is a common way to estimate the number of cannabis retail locations that a jurisdiction can sustain. The standard metric commonly used is to have one retail location for every 15,000 to 20,000 people. In the case of the City of Richmond, it currently has three retail locations serving a population of approximately 116,000 people, which translates to about 38,000 people per retailer. Based on this calculation, Richmond can support an additional 3-5 retail locations, for a total of 6-8 retailers.

The following table compares the capacity of nearby communities to support cannabis retailers based on their population, using a standard market density of one retailer per 20,000 residents. The City of Richmond ranks second, closely following the City of Hayward, with a combined population per retailer of 38,000 people and an unmet capacity for three retail businesses. Alameda, Concord, and Martinez align closely with the standard metric, whereas Oakland, El Cerrito, and the remaining cities all exceed the standard market density.

City/County Population Total
Retailers
Population
per Retailer
Capacity at 1
per 20,000
Unmet
Capacity
Hayward 159,827 4 39,957 8 4
Richmond 115,639 3 38,546 6 3
Fairfield 119,705 4 29,926 6 2
San Leandro 88,868 3 29,623 4 1
Berkeley 117,145 4 29,286 6 2
Alameda 76,362 3 25,454 4 1
Concord 124,074 5 24,815 6 1
Martinez 36,819 2 18,410 2 0
Oakland* 433,823 27 16,068 22 0
El Cerrito 25,845 2 12,923 1 0
Vallejo 124,886 11 11,353 6 0
El Sobrante 14,779 2 7,390 1 0
Emeryville 12,870 2 6,435 1 0
Pachecho 4,775 2 2,388 0 0
* An additional 11 retailers are conditionally approved, but not yet open; 27 permitted delivery- only businesses
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November 7, 2023
Competition and Consumer Demand:

The number of additional cannabis retailers that the City can accommodate depends on both nearby competition and consumer demand for cannabis products. If there is already a significant concentration of cannabis retail locations in close proximity, it becomes more challenging for new stores to establish themselves. A saturated market can lead to intense competition, resulting in lower profit margins for individual retailers.

Additionally, the level of consumer demand for cannabis products plays a crucial role in determining the City's capacity for supporting additional retailers. Strong demand can create opportunities for new businesses, while weak demand may limit the feasibility of establishing more retailers.

To assess the level of demand for cannabis products in the City, staff analyzed historical sales data from the three existing retailers. The analysis revealed a consistent upward trend in sales from 2016 to 2021. However, in 2022, there was a significant drop in retail sales, and projections for 2023 suggest a continuing downward trend. These findings indicate that the demand for cannabis products may be reaching a saturation point, both in the City and surrounding areas.

Despite the potential market saturation and the decline in overall sales, the current average sales per retailer remain healthy. This suggests that existing retailers are still generating significant revenue per store, even in the face of increased competition. As a result, there may still be financial viability for potential entrepreneurs interested in entering the market by establishing new retail cannabis stores.

In summary, the analysis conducted by staff on the cannabis retail market in the City indicates that the area can accommodate an additional 3-5 retail businesses. This estimation is based on considerations of the current population density and the level of nearby competition.

Expansion Scenarios:

During the presentation to the Economic Development Commission, staff outlined three distinct expansion scenarios for consideration. These scenarios encompassed conservative, moderate, and aggressive approaches as described below:

Fiscal Year Gross Receipts Average per Retailer + / -
2016-17 $12,603,620 $4,201,207
2017-18 $13,240,940 $4,413,647 5%
2018-19 $17,897,660 $5,965,887 35%
2019-20 $23,401,040 $7,800,347 31%
2020-21 $34,315,740 $11,438,580 47%
2021-22 $21,618,520 $7,206,173 -37%
2022-23* $14,480,100 $4,826,700
* Tax revenue reported through three quarters
1915

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November 7, 2023
 Conservative:
o Two (2) additional Storefront retail locations (One for equity applicant & One for a non-equity applicant)

 Moderate:
o Three (3) additional Storefront retail locations (Two for equity applicants & One for non-equity applicant)
o Two (2) non-storefront (delivery-only) retail locations (Both for equity applicants)
 Aggressive:
o Four (4) additional Storefront retail locations (Three equity applicants & One for non-equity applicant)
o Two (2) non-storefront (delivery-only) retail locations (Both for equity applicants)

The Economic Development Commission recommended moving forward with the moderate scenario. These scenarios were also presented to the Planning Commission on October 5, 2023, and they also recommended the moderate scenario to City Council.

The proposed Zoning Text Changes reflect this scenario.

Summary of Proposed Ordinance Amendments

The following summarizes the key amendments proposed to RMC Section

15.04.610.270 as specified in Exhibit A to the Resolution in Attachment 1:

1. Definitions (Section 15.04.610.270(B)):
 Add definitions for “Cannabis Equity Program”, “Canopy”, “Cultivator”, “Equity Applicant”, “Equity Business”, “Retailers”, “Storefront Retail Facility”, and “Testers”.

2. Promulgation of Regulations, Standards and Other Legal Duties (Section

15.04.610.270(E)):
 Removed outdated language regarding existing Medicinal Cannabis Businesses
 Added language to empower the Director of Community Development to make certain administrative decisions to support the proper functioning of the local cannabis industry and regulatory oversight.

3. Number of Commercial Cannabis Businesses (Section 15.04.610.270 F(4)):
 Increase the number of cannabis storefront retail permits from three (3) to six (6).
 Add two (2) new non-storefront retail (delivery only) permits.  Designate two (2) storefront retail permits and two (2) new non-storefront retail (delivery only) permits for equity applicants.

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November 7, 2023

4. Background Investigation of Owners and Managers (Section

15.04.610.270(H)(1)(a)(ii):
 Establish criteria for examining whether the results of the background investigations (LiveScan) can be grounds for denial.

5. Denial, Revocation or Suspension, and Renewal of Conditional Use Permit. (Section 15.04.610.270(H)(5):
 Language added to specify grounds for denial, revocation, suspension, and renewal of Conditional Use Permit (CUP) for cannabis businesses.

6. Cannabis Business Permit (CBP) Application Process (Section 15.04.610.270 (I)(1)):
 Add section requiring businesses to satisfy compliance with the terms and conditions of their CUP prior to the City issuing the Cannabis Business Permit (CBP).

7. Issuance of Cannabis Business Permit (Section 15.04.610.270 (I)(2)):
 Add section that requires approval and signatures from all relevant City departments prior to the City issuing the CBP.

8. Denial of Cannabis Business Permit (Section 15.04.610.270 (I)(4)):
 In order to provide additional enforcement tools, add a section giving the Zoning Administrator discretionary authority for the denial of a CBP.  Establish circumstances that would result in the denial of a CBP.

9. Cannabis Business Permit Annual Renewal. (Section 15.04.610.270 (I)(5)):
 Add section detailing what a cannabis business must submit with their CBP renewal application.
 Add section requiring City inspection 60 days prior to renewal to confirm compliance with local and state regulations and CUP terms and conditions.  Add Section detailing the grounds for rejecting a CBP renewal.

10. Competitive Selection Process. (Section 15.04.610.270 (J)(1)):
 Add language to clarify application procedures and requirements for the Competitive Selection Process.

11. Consent to Inspection. (Section 15.04.610.270 (K)(1)(j)):
 Strengthen language in this section to authorize City inspections.

RECOMMENDATION BY PLANNING COMMISSION

The proposed zoning text changes were considered by the Planning Commission at a public hearing held on October 5, 2023. The Planning Commission adopted Resolution No. 23-08 recommending adoption of the proposed amendments to the City Council.

1917

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November 7, 2023
FINDINGS FOR ZONING TEXT CHANGES:

The Richmond Municipal Code requires the City Council to make certain findings as specified in Section 15.04.814.050 when adopting amendments to the Zoning Ordinance. The Ordinance in Attachment 1 provides the required findings with a supporting statement of fact for City Council’s consideration.

GENERAL PLAN CONSISTENCY:

The proposed amendments will assist the City in achieving certain Economic Development and Community Health and Wellness goals, policies, and actions identified in the General Plan. Specifically, a cannabis equity program will support people and communities harmed by cannabis criminalization. These efforts lower barriers to the cannabis industry for those hit hardest by the War on Drugs (see General Plan 2030 Policy ED2.1, Local Employment Base and Policy HW6.6 Local Small Businesses). The City received a cannabis equity grant from California Co-Biz to support equity applicants in providing equity applicants direct grants, direct loans, technical assistance to prepare business plan development, business mentoring, assistance securing capital, business needs assessment, direct loans, loan readiness assessment, market assessment, data and research strategies and support, assistance with establishing a legal entity, assistance with criminal records expungement, lease negotiation assistance, small business legal considerations, mentoring, and assistance with general business operations, cannabis-specific regulatory operations, fiscal management, marketing/social media, technical training, employee training, and regulatory compliance.

ENVIRONMENTAL REVIEW:

Pursuant to California Environmental Quality Act (“CEQA”) Guidelines § 15378 and California Public Resources Code § 21065, the proposed ordinance is not a “project” because its adoption is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment. Accordingly, the proposed ordinance is not subject to CEQA. Even if the proposed ordinance qualified as a “project” subject to CEQA, and pursuant to CEQA Guidelines § 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment. This proposed ordinance merely amends the Richmond Municipal Code to regulate the future deployment of wireless communications facilities. The proposed ordinance does not directly or indirectly authorize or approve any actual changes in the physical environment. Applications for any new cannabis business or change to an existing cannabis business would be subject to additional environmental review on a case-by-case basis. Accordingly, the proposed ordinance is exempt from CEQA under the general rule.

DOCUMENTS ATTACHED:

Attachment 1 – Draft CC Ordinance
1918

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November 7, 2023
Exhibit A: Proposed Amendments (Redline)
Exhibit A: Proposed Amendments (Clean)
1919
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ATTACHMENT 1

ORDINANCE NO.

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF RICHMOND AMENDING THE RICHMOND MUNICIPAL CODE SECTION 15.04.610.270
(MARIJUANA/CANNABIS: COMMERCIAL USES)

WHEREAS, pursuant to Article XI, section 7 of the California Constitution and sections 36931 et seq. of the California Government Code, the City may make and enforce within its limits all local, police, sanitary and other ordinances and regulations not in conflict with general laws; and

WHEREAS, the general plan is the City’s constitution for future development and any decision by a City affecting land use and development must be consistent with the general plan; and

WHEREAS, on April 24, 2012, the City Council certified the Final Environmental Impact Report for the General Plan and adopted a Mitigation Monitoring and Reporting Program; and

WHEREAS, on April 24, 2012, the City Council adopted the Richmond General Plan 2030; and

WHEREAS, on November 15, 2016, the City Council adopted the Zoning and Subdivision regulations which were updated under comprehensive review and revision in order to ensure that such regulations are consistent with the General Plan and state and federal laws; and

WHEREAS, on December 7, 2021, the City Council adopted Resolution No. 148-21 approving the establishment of a Cannabis Equity Program including a Cannabis Equity Assessment, and a Cannabis Equity Manual; and

WHEREAS, for the past year, staff has been working to implement the City's Cannabis Equity Program; and

WHEREAS, on October 5, 2023, the Planning Commission held a duly and properly noticed public hearing to consider a recommendation to the City Council on the amendments to Section 15.04.610.270 Marijuana/Cannabis Commercial Uses; and

WHEREAS, the Planning Commission considered the agenda report, all public comments, and the amendments to Section 15.04.610.270 Marijuana/Cannabis Commercial Uses, as set forth in Exhibit A of this ordinance and the applicable provisions of the Richmond Municipal Code (“the Record”) and recommended adoption to the City Council of the proposed zoning text amendments; and

WHEREAS, on November 7, 2023, the City Council held a duly and properly noticed public hearing to consider the amendments to Section 15.04.610.270 1920
2 of 4
Marijuana/Cannabis Commercial Uses, as set forth in Exhibit A, incorporated herein by reference; and

WHEREAS, the City Council has considered the agenda report, all public comments, and the proposed amendments to Section 15.04.610.270 and the applicable provisions of the Richmond Municipal Code (“the Record”).

WHEREAS, the City Council finds and determines:

1) Pursuant to California Environmental Quality Act (“CEQA”) Guidelines § 15378 and California Public Resources Code § 21065, the amendments to Article

15.04.610 are not a “project” because its adoption is not an activity that has the potential for a direct physical change or reasonably foreseeable indirect physical change in the environment; and

2) Even if the amendments to Article 15.04.610 qualified as a “project” subject to CEQA, and pursuant to CEQA Guidelines § 15061(b)(3), there is no possibility that this project will have a significant impact on the physical environment.

The proposed ordinance merely amends the Richmond Municipal Code to regulate the future establishment of commercial cannabis uses and does not directly or indirectly authorize or approve any actual changes in the physical environment. Applications for any new cannabis business or change to an existing facility would be subject to additional environmental review on a case-by-case basis; and

3) The amendments to Section 15.04.610.270 are consistent with the General Plan; and

Supporting Statement of Fact: The proposed amendments will assist the City in achieving certain Economic Development and Community Health and Wellness goals, policies, and actions identified in the General Plan. Specifically, a cannabis equity program will support people and communities harmed by cannabis criminalization.

These efforts lower barriers to the cannabis industry for those hit hardest by the War on Drugs (see General Plan 2030 Policy ED2.1, Local Employment Base and Policy HW6.6 Local Small Businesses).

4) The amendments to Section 15.04.610.270 are necessary for public health, safety, and general welfare or will be of benefit to the public; and

Supporting Statement of Fact: Certain clarifying amendments will assist in the city in administration of the cannabis ordinance, specifically related to the renewal and denial of cannabis business permits. Having clear regulations assists both applicant, operators, and staff in the administration.

5) The facts set forth in the recitals in this Ordinance are true and correct and incorporated by reference. The recitals constitute findings in this matter and, together with the agenda report, other written reports, public testimony and other information contained in the record, are an adequate and appropriate evidentiary basis for the actions taken in this Ordinance.

1921
3 of 4
SECTION I. Municipal Code Amendments.

The City Council of the City of Richmond does ordain as follows:

Section 15.04.610.270 of the City of Richmond Municipal Code is hereby amended as shown in Exhibit A attached hereto and incorporated herein by reference.

SECTION II. Severability.

If any section, subsection, paragraph, sentence, clause or phrase of this Ordinance is for any reason held by a court of competent jurisdiction to be unconstitutional or invalid, the remaining portions of this Ordinance shall remain in full force and effect. The City Council hereby declares that it would have passed each section, subsection, paragraph, sentence, clause or phrase of this Ordinance irrespective of the unconstitutionality or invalidity of any section, subsection, paragraph, sentence, clause or phrase.

SECTION III. Effective Date.

This Ordinance becomes effective thirty (30) days after its final passage and adoption.

-------------------------------------------------

First introduced at a regular meeting of the City Council of the City of Richmond held _______________________ and finally passed and adopted at a regular meeting held _________________________by the following vote:

AYES:

NOES:

ABSTENTIONS:

ABSENT:

_____________________________

CLERK OF THE CITY OF RICHMOND

(SEAL)

Approved:

______________________
Mayor

Approved as to form:

1922
4 of 4

______________________
City Attorney

Attachments:

Exhibit A: Proposed Amendments to RMC Section 15.04.610.270 (Clean)

1923
1 5.04.610.270 Marijuana/Cannabis Commercial Uses
Commercial Cannabis a ctivities, including but not limited to cultivation, manufacturing, testing, distribution, and retail are subject to the standards and procedures of the Municipal Code, State Law, and the regulations set forth in these Zoning Regulations.

A. Applicability. These standards apply to all establishments that are involved in any commercial cannabis activity.

B. Definitions1. The following words or phrases, whenever used in this Section, have the following definitions:

1. A-license. A state license issued for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations.

2. Attending Physician. An individual who possesses a license in good standing to practice medicine or osteopathy issued by the Medical Board of California or the Osteopathic Medical Board of California and who has taken responsibility for an aspect of the medical care, treatment, diagnosis, counseling, or referral of a patient and who has conducted a medical examination of that patient before recording in the patient's medical record the physician's assessment of whether the patien t has a serious medical condition and whether the medical use of cannabis is appropriate.

3. Bureau of Cannabis Control (“the Bureau”). The bureau within the California Department of Consumer Affairs created to develop, administer and enforce comprehensive r ules for medicinal and adult -use cannabis in California. The Bureau is responsible for the regulation and licensing of all commercial cannabis retail, distribution, testing, microbusinesses and temporary cannabis events in California.

4. California Department of Food and Agriculture - CalCannabis Cultivation Licensing (“the CDFA”). A division of the California Department of Food and Agriculture, responsible for the regulation and licensing of commercial cannabis cultivation in California.

5. California Department of Public Health – Manufactured Cannabis Safety Branch (“the DPH ”). A division of the California Department of Public Health, responsible for the regulation and licensing of all commercial cannabis manufacturing in California.

6. Cannabis . All parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the crude or purified resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include the mature s talks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, 1 Additional terms, such as “applicant” and “person”, “permit” and “use”, are defined in Zoning and Subdivision Regulations, Series 100, General Provisions, and are not repeated here.

EXHIBIT A: PROPOSED AMENDMENTS (REDLINE VERSION)
1924
2 manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purposes of these zoning regulations, "cannabis" does not include "industrial hemp" as defined by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.

7. Cannabis Business. Establishments, properties, parcels, and/or structures involved in any commercial cannabis activity, including retailers , storefront retailers, non-storefront retailers, cultivators, manufacturers, transporters, testers, and distributors.

8. Cannabis Equity Program. A program established pursuant to resolution adopted on December 7, 2021 that aims to assist individuals negatively impacted by past cannabis criminalization by providing resources and opportunities to facilitate ownership and operation of a cannabis business.

Equity Applicants apply to the program via formal application. The program prioritizes granting new cannabis retailer licenses to Equity Applicants.

8.9. Canna bis Plant . Any immature, flowering, or dried flower in accordance with State Law. Immature cannabis plant means a cannabis plant that has a first true leaf measuring greater than one half inch long from base to tip (if started from seed) or a mass of roots measuring greater than one half inch wide at its widest point (if vegetatively propagated), but which is not flowering.

Flowing cannabis plant means that a cannabis plant has formed a mass of pistils measuring greater than one half inch wide at its w idest point. Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

10. Cannabis Products. Cannabis that has undergone a process whereby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

9.11. Canopy. The designated area(s) at a licensed cultivation site that contain mature plants at any point in time.

10.12. Collective. See Retail Facility.

11.13. Commercial Cannabis Activity. The cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of adult-use or medicinal cannabis or cannabis products, as provided for in this Ordinance and in accordance towith State Law.

12.14. Cultivation. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis within an enclosed structure.

15. Cultivation Site. An in-door location, including greenhouses, where cannabis is planted, grown, harvested, dried, cured, graded, or trimmed, or a location where any combination of those activities occurs.

13.16. Cultivator . An individual or business that plants, grows, harvest, dries, cures, grades, or trims cannabis within an enclosed structure. 1925

3 14.17. Customer . A natural person 21 years of age or older, a natural person 18 years of age or older who poss esses a physician’s recomm endation, or a qualified patient or a primary caregiver.

15.18. Delivery. The commercial transfer of cannabis or cannabis products from a retail or non-storefront retail facility to a customer.

16.19. Dispensary. See Retail Facility.

17.20. Distributor. A person or licensed entity engaged in the business of procuring, selling, storing, packaging, labeling, rolling and transporting cannabis or cannabis products from a licensed cultivator, manufacturer, or from any other State cannabis licensees for sale to any State Cannabis licensee, in accordance with State Law A distributor shall distribute only cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.

18.21. Distribution . Means the procurement, sale, and transport of cannabis and cannabis products between licensees pursuant to Section 26000 of the California Business and Professions Code.

19.22. Edible Cannabis Product s. Manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, but not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the California Food and Agricultural Code.

23. Enclosure . An area fully surrounded by a fence, wall, or other solid barrier that prevents access to cannabis. Enclosures must be equipped with a locked gate or door.

24. Equity Applicant. An individual or business who makes a formal application to be admitted and is accepted into the City’s Cannabis Equity Program.

20.25. Equity Business . A cannabis business with not less than 51% ownership interests held by equity applicants.

21.26. Greenhouse . A building, room, or structure, usually chiefly of transparent material, used for cultivation of cannabis which meets State requirements for mixed-light cultivation.

22.27. Indoor cultivation. The cultivation of cannabis within a permanent structure using exclusively artificial light or within any type of stru cture using artificial light.

23.28. License . A state issued cannabis license, which includes both an A-license and an M-license, as well as a testing laboratory license.

24.29. Licensee. Any person or entity holding a state issued commercial cannabis A- license or an M-license, and includes the holder of a cannabis testing laboratory license.

25.30. M-license . A state license issued for commercial cannabis activity involving medicinal cannabis.

26.31. Manager. A person with responsibility for the establishment, organization, registration, supervision, or oversight of the operation of a cannabis business, including but not limited to persons who perform the functions of president, 1926
4 vice president, director, operating officer, financial officer, secretary, treasurer, or manager of the business.

27.32. Manufacturer. A State-licensee that manufactures cannabis by compounding, blending, extracting, infusing, or otherwise making or preparing cannabis products. “Manufacture” includes extraction, infusion, packaging or repackaging, and labeling or relabeling packages of cannabis products, in accordance with State Law.

28.33. Marijuana. See Cannabis.

29.34. Mixed -Light Cultivation. The cultivation of mature cannabis in a greenhouse, glasshouse, conservatory, or other similar structure using light deprivation and/or one of the artificial lighting models described below:

a. Mixed-light Tier 1. the use of artificial light at a rate of six watts per square foot or less;
b. Mixed-light Tier 2. the use of artificial light at a rate above six and below or equal to twenty-five watts per square foot.

30.35. Non -Storefront Retail Facility . A facility that is c losed to the public where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale exclusively by delivery, in accordance with State Law.

31.36. Owner or Ownership interest . An interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of 5% or more.

32.37. Personal Cultivation . The cultivation of no more than six (6) cannabis plants conducted by an individual strictly for that individual’s personal use, possession, processing, transporting, or giving away without any compensation whatsoever in accordance with State law, including but not limited to Health and Safety Code sections 11362.1 and 11362.2, as may be amended. Personal cultivation also means and includes cultivation of medic inal cannabis conducted by a qualified patient exclusively for his or her personal medic inal use, and cultivation conducted by a primary car egiver for the personal medicinal purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, in accordance with State law, including Health and Safety Code sections 11362.7 and 11362.765, as may be amended.

Except as herein defined, personal cultivation does not include, and shall not authorize, any cultivation conducted as part of a business or commercial activity, including cultivation for compensation or retail or wholesale sales of cannabis.

33.38. Primary Caregive r. The individual, designated by a qualified patient or by a person with an identification card issued pursuant to California Health and Safety Code Section 11362.7, who has consistently assumed responsibility for the housing, health, or safety of that patient or person. The primary caregiver may be a licensed clinic, residential care facility, hospice, or home health agency.
1927

5 34.39. Private Residence . A house, apartment unit, mobile home, or any other similar dwelling.

35.40. Qualified Patient. A person who is entitled to the protections of California Health and Safety Code Section 11362.5, for patients who obtain and use cannabis for medic inal purposes upon the recommendation of an attending physician, whether or not that person applied for and received a valid identification card issued pursuant to State Law.

36. Retail Facility. A facility where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale.

41. 42. Retailer s. An individua l, retail facility , storefront retail facility, and non - storefront retail facility.

43. State. The State of California.

37.44. Storefront Retail Facility. A retail facility that has a physical location, including an address where commercial cannabis activities are conducted, and that sells cannabis goods to customers at its premises or by delivery.

45. Testi ng Laboratory. The facility where tests are performed on cannabis or cannabis products and that holds a valid certificate of accreditation and license from the Bureau, if required.

46. Test ers. An individual or business that performs tests on cannabis or cannabis products and that holds a valid certificate or accreditation and license from the Bureau, if required.

38. Transporters. An individual or business that transports cannabis or cannabis products for the purpose of commercial cannabis activities.

39.47. Volatile Solvent . Is the same as defined by the California Department of Health in §40100 of the California Code of Regulations , as may be amended, and means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

C. Permits Required. A Conditional Use Permit (CUP) and a Cannabis Business Permit (CBP) are both required for all commercial cannabis activities prior to operation.

Cannabis businesses shall first obtain a CUP by submitting an application pursuant to Section 15.04.610.270 (H) of this Article and any application forms and fees required in accordance with Article 15.04.803 as a requisite for obtaining a CBP. The provisions of Article 15.04.806 Use Permits apply, including but not limited to procedures for appeals, modifications, and approval. Once building permits are obtained and finaled, if required, the required State licenses are obtained, and Police City Regulatory fees paid, a CBP will be granted. CUPs and CBPs will only be granted to entities operating legally according to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), other applicable State Law, and the State regulations. R easonable 1928
6 conditions of approval may be imposed, including but not limited to requirements for permits from the County for retail sales of edible cannabis products and from the State for food product manufacturing.

D. Operating Without Permits. It shall be unlawful for any person as defined by this Article to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a CUP and CBP. Persons operating in violation of this Article shall be given an amnesty period to come into compliance by submitting a complete CUP application within one hundred twenty (120) days of the effective date of this Article and securing both the required CUP and CBP within one hundred eighty ( 180) days of application submittal . Failure to submit a complete CUP application within the amnesty period will result in further enforcement. Any persons in violation of this subsection shall be prohibited from applying for a CUP for one year anywhere in t he City of Richmond. In addition, commercial cannabis uses shall be prohibited on the subject property for one year.

E. Promulgation of Regulations, Standards and Other Legal Duties. In addition to any regulations adopted by the City Council, the Director is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of Cannabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Article. This authority extends to situations where modifications in State cannabis laws or changes in license types authorized by the State are deemed essential for the effective im plementation of the objectives outlined in this Article.

E. Existing Medicinal Cannabis Businesses. Existing permitted medicinal cannabis businesses, including those temporarily authorized for A -license activities, operating within the City are required to submit an application for an AUP (Administrative Use Permit) within ninety (90) days of this Article taking effect to continue to conduct A- license activities for authorized medicinal uses and/or to conduct distribution activities. Any expansion of use beyond an A -license addition or addition of distribution activities requires a CUP modification. Applications for a CBP shall be required within 30 days of fina l approval of a n AUP or CUP modification. If a complete application is not made within the required time, A -license activities temporarily authorized shall cease. All other authorized medicinal cannabis businesses shall submit a CBP application within 30 days of this Article taking into effect.

F. Locations Where Allowed and Number Allowed.

1. Cultivators, Manufacturers, Mixed -light Cultivators, Testing Laboratories, and Distributors . All commercial cannabis cultivation, manufacturing, mixed-light cultivation, testing, and distributor operations shall be conditionally permitted as provided for in the City’s Land Use Regulations Tables in Chapter 15.04.

7 i. The retail facility has operated in compliance with all local and state regulations; and
ii. The expanded use will not negatively impact the surroundin g community.
b. New Retail Facilities. Any new commercial cannabis retail and non- storefront retail facilities are only allowed to locate in a CR , Regional Commercial Zoning District with a conditional use permit unless, following a public hearing, the Planning Commission makes all of the following findings to authorize a retail facility to locate on a site in the CG General Commercial Zoning District:
i. The retail facility has demonstrated that it considered locations within the CR District and found no location meeting the requirements of this section that serves the needs of its customers; and
ii. The proposed location within the CG District would
complement the surrounding community while providing
necessary services to its customers; and
iii. The proposed location is not abutting a residential use.

3. Distance from Schools, Parks, Community Centers, Youth Center, Child -Care Center, or Nursery School.
a. All commercial cannabis activity must be located a minimum of 1,500 feet from any public or private high school and a minimum of 600 feet from any public or private kindergarten, elementary, middle or junior high school that is in existence at the time the permit is issued. b. All commercial cannabis activity shall be located a minimum of 600 feet from any park, community center, youth center, and public or private child-care center that is in existence at the time the permit is issued.
c. Following a public hearing, the Planning Commission may make exceptions to the distance requirements for all commercial activities if all of the following findings are made based on specific facts:
i. The location, design and proposed operating characteristics of the cannabis business is such that it is highly improbable that persons on, in or travelling to or from nearby parks,
community centers, youth centers, or child-care centers would be able to view persons in, entering, or leaving the cannabis facility; and
ii. Allowing the cannabis business to locate within 1,500 feet of a public or private high school or within 600 feet of a park, community center, youth center, and public or private child - care center, will not grant the cannabis business a special privilege not available to other commercial cannabis
businesses within the City; and
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8 iii. The cannabis business has demonstrated that it considered other locations and selecte d the location that would have the least negative impact on the surrounding community while providing necessary services to its customers.

4. Number of Commercial Cannabis Businesses.
a. No more than three six (36) commercial cannabis storefront retail facilities and two (2) non-storefront retail facilities shall be permitted or allowed to operate in the City. Of these retail facilities, t Two (2) storefront retail facilities and two (2) non -storefront retail facilities shall be designated to be owned by new Equity Applicants or Equity Businesses, who are not currently permitted to operate a retail cannabis facility in the City . The City has established a competitive selection process in Section 15.04.601.010 270 (IJ)(1) of this Article to objectively award permits for which there are a limited number of permits available, such as for retail facilities. All competitive -based considerations shall be included with the application forms. b. There shall be no limit on the num ber of commercial cannabis cultivators, distributors, testing laboratories, or manufacturing businesses in the City as long as they obtain v alid State and local permits and licenses, including CUP and CBP from the City of Richmond for each location.
b.c. This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City. Nothing in this Article creates a mandate that the City must issue any or all of the cannabis business permits.

G. Delivery of Commercial Cannabis and Cannabis Products. a. The delivery of commercial cannabis or cannabis products from a State licensed retail facility or non -storefront retail facility to a customer is permitted, provided such deliveries are conducted in accordance with this Article and State law , including obtaining a Richmond Business license. All other unpermitted and unlicensed delivery services within the City are prohibited.
b. Existing permitted retail cannabis businesses operating within the City are required to obtain a CUP modification before conducting delivery activities.
c.b.

H. Conditional Use Permit Application Process.

9 a. Requirements for All Commercial Cannabis Businesses. A commercial cannabis business is required to provide the following information in support of its permit application.
i. Information Regarding the Proposed Property.
(1) The address of the property where the proposed
commercial cannabis business will operate.
(2) A site plan with fully dimensioned interior and exterior floor plans, including electrical, mechanical, plumbing, parking, and disabled access compliance pursuant to
Title 24 of the State of California Code of Regulations and the federal Americans with Disabilities Act. For a
retail facility , the site plan must show that there are separate rooms or partitioned areas within the retail
facility for the receipt of supplie s and for the delivery of cannabis to customers.
(3) Exterior photographs of the entrance(s), exit(s), street frontage(s), parking, front, rear and side(s) of the site. (4) Photographs depicting the entire existing interior of buildings on the site.
(5) If the site is being rented or leased or is being
purchased under contract, a copy of such lease or
contract.
(6) If the site is being rented or leased, written proof that the property owner, and landlord if applicable, were
given notice that the property will be used as a
commercial cannabis business, and that the property
owner, and landlord if applicable, agree(s) to said
operations. If the retail facility is to be a subtenant, then "landlord" shall mean the primary tenant.
ii. Information Regarding Each Business Applicant, Owner and Manager. For each business applicant, owner , and manager, the following information must be provided, to the extent applicable:
(1) The name, address, telephone number, title and
function(s);
(2) A fully legible copy of one valid government -issued form of photo identification, such as a driver's license; and
(3) A summary criminal history ("LiveScan") prepared by the Richmond Police Department not more than thirty
(30) days prior to the date of application.
iii. Background Investigation of A pplicants, Owners and Managers. The applicant, each owner, and proposed manager shall undergo a criminal background investigation and shall 1932
10 submit the name, address, telephone number, title, primary responsibility(ies), and a valid government - issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks. This includes but is not limited to complet ing a LiveScan with the Richmond Police
Department no more than 30 days from the date of the
application. No person may be issued a CUP or CBP unless they have first cleared the background check and submitted LiveScan results that are clean and clear of any of the convictions listed below . Neither the applicant, each owner, nor any proposed or prospective manager shall have been convicted of:
(1) A serious or violent felony conviction, as specified in Penal Code Section 667.5(c) or Section 1192.7(c);
(2) A felony conviction involving dishonesty, fraud or
deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in Cal.

Penal Code §§ 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states;
(3) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away,
preparing for sale, or peddling, any controlled
substance to a minor; or selling, offering to sell,
furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
(4) A cConviction of illegal use, possession,
transportation, distribution, or similar activities related to controlled substances, as defined in the Federal
Controlled Substances Act, not including cannabis -
related offenses for which the conviction occurred
after the passage of the Compassionate Use Act of
1996.

11 ever had such a license/permit revoked or suspended
and the reason(s) therefore.
(2) The name and address of the commercial cannabis
business’ current Agent for Service of Process.
(3) Information pertaining to a Notice of Violation for unpermitted cannabis operations or any cannabis
related enforcement violations or within the City.
iv.v. Plan for Unsold Cannabis. A plan for the disposal of any unsold cannabis or cannabis product must be submitted that renders or prevents any portion thereof from being
recognizable and useable by any person or animal.
v.vi. Neighborhood Responsibility Plan. A neighborhood responsibility plan that demonstrates how the business will fulfill its responsibilities to the neighborhood, including neighborhood outreach, methods for future communication, and dispute resolution.
vi.vii. Security Plan. A security plan indicating how the applicant will comply with the requirements of this Section and any other applicable law, rule, or regulation.
vii.viii. Affirmation that the Application is True. A statement dated and signed by each management member, under penalty of
perjury, that the management member has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the management member(s).
b. Supplemental Application Requirements for Retail Facilities. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail facilities. i. Security Plan. A retail facility’s security plan must include procedures for verifying identification of customers and primary caregivers both before entering the retail facility and again before receiving cannabis ; the number, location and hours of security guards; and a theft prevention plan including a detailed description of all surveillance and video equipment, location and coverage of cameras and how law enforcement or their representatives will be given real-time and stored access. ii. Daily Customer Limits . A retail facility or non -storefront facility shall adher e to daily limits on adult -use and medicinal cannabis and cannabis products by its customers in accordance to State law.
c. Supplemental Application Requirements for Manufacturers. In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis manufacturing operations. 1934
12 i. Safety of Manuf acturing Process. A commercial cannabis manufacturer must demonstrate one or both of the following:
(1) The only manufacturing processes used are either
solventless or employ only nonflammable, nontoxic
solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec. 301 et seq.).
(2) The manufacturing processes only uses solvents
exclusively within a closed -loop system that meets all of the following requirements:
(a) The system uses only solvents that are generally
recognized as safe pursuant to the federal Food,
Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et
seq.).
(b) The system is designed to recapture and
contain solvents during the manufacturing
process and otherwise prevent the off -gassing
of solvents into the atmosphere to mitigate the
risks of ignition and explosion during the
manufacturing process.
(c) A licensed engineer certifies that the system
was commercially manufactured, is safe for its
intended use, and was built to codes of
recognized and generally
accepted good engineering practices,
including, but not limited to, the American
Society of Mechanical Engineers, the American
National Standards Institute, U nderwriters
Laboratories, the American Society for Testing
and Materials, or OSHA Nationally
Recognized Testing Laboratories.
(d) The system has a certification document that
contains the signature and stamp of a
professional engineer and the serial number of
the extraction unit being certified and that the
certification is renewed either annually or
according to the manufacturer’s
recommendations.
ii. Fire, Safety, and Building Code Requirements. The
manufacturer must meet all State, county and locally required fire, safety, and building code requirements.
iii. Approval from Richmond Fire Prevention Services Division or designee . The commercial cannabis manufacturer must receive and maintain approval from the Richmond Fire
Prevention Services Division for the closed-loop system and for other equipment used for manufacturing and extraction 1935

13 operations, per guidelines adopted by the Richmond Fire Prevention Services Division.
iv. Edible Cannabis Products. Commercial cannabis
manufacturers that prepare edible cannabis products must demonstrate compliance with State, County and local
requirements regarding the preparation, distribution, labeling, and sale of food.
d. Supplemental Application Requirements for Cultivators and Manufac turers. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivation and manufacturing operations.
i. Plans for Use of Renewable Electricity. All cultivation and manufacturing operations must submit detailed plans
demonstrating that the electricity used in the cultivation and manufacturing operations is from a renewable energy source or arrangements have been made to offset use of
nonrenewable electrical energy with renewa ble energy from another source. If written evidence of enrollment in the Deep Green 100 percent renewable energy program administered by Marin Clean Energy (MCE) is provided, no further details need to be submitted with the application. Enrollment shall be maintained, and evidence provided annually in order to renew CBP.
ii. Plans for Water Conservation. All cultivation and
manufacturing operations must submit detailed plans
demonstrating strict water conservation methods will be instituted and maintained at all times, and such plans must include records of monthly water consumption. These plans also must show that the cultivation facility will be equipped with water collection and filtration systems to reduce irrigation water to the maximum exte nt possible as determined by the Zoning Director or the State, if its regulations are more restrictive.
iii. Plans for Wastewater. All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into the City’s wastewa ter system, as set forth in Richmond Municipal Code Chapter 12.18. This shall include the su bmittal of an Industrial User Permit Application (Baseline Monitoring Report) to the Water Resource Recovery Department.
iv. Plans for Stormwater. All cultivation and m anufacturing operations must demonstrate compliance with the limitations on discharge into t he City’s municipal separate storm sewer system (MS4), as set forth in Richmond Municipal Code
Chapter 12.22. This shall include any and all provisions 1936
14 required under the Municipal Regional Permit (NPDES Permit No. CAS612008.
v. Plans to Prevent Mold. All cultivation and manufacturing operations must submit a plan that specifies the methods to be used to prevent the growth of harmful mold.
vi. Ventilation Plan. All cultivation and manufacturing operations must submit det ailed information about the proposed
ventilation system, including technical specifications indicating that the system is capable of preventing the release into the atmosphere of cannabis odors from the culti vation or
manufacturing operation.

2. Duration of Conditional Use Permit. Permits issued under this Section will be subject to time limits, renewal, and reporting requirements as specified in the conditions of approval. These conditions shall include resubmittal requirements for any change in circumstances, including substantive changes in ownership, management, sources of electricity, or operations, from those described in the original application.

3. Expiration and Extension . A commercial cannabis CUP is subject to the expiration and extension procedures in RMC Section 15.04.803.110.

4. Modification of Permit Conditions. Modifications to the permit or the conditions of approval may be requested in accordance with Section

15.04.803.110 and with prior notification and approval from the appropriate State cannabis regulatory agency.

15 of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked;
vi. The state has determined, based on substantial evidence, that the permittee or applicant is in violation of the re quirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit;
vii. The applicant, owner, or permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate
agencies;
viii. The applicant, permittee, owner, or any of its managers have failed to comply with the requirements provided in Section

15.04.610.270(C);
ix. The applicant, permittee, owner, or any managers fail to submit supplemental applications required for certain types of commercial cannabis businesses; or
i.x. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
c. Additional Provisions For Revocation.
i. The procedures and grounds for revocation provided in RMC Section 15.04.803.130 (Revocation) apply.
ii. The CUP for a commercial cannabis business may be revoked if it is determined that one or more of the following
circumstances exist:
(1) A CUP for commercial cannabis business may be
revoked Aafter the business is ope rational, if the
business ceases to be in regular and continuous
operation for ninety (90) days.
b.d. Timing of Consideration After Revocation or Suspension of CUP. Whenever a CUP for a commercial cannabis business has been revoked or suspended, no permit application by any of the owners or managers of that commercial cannabis business shall be considered for a period of three years from the date that the notice of the revocation or suspension was mailed to the business owner.
c. The procedures provided in RMC Section 15.04. 803.130 Revocation apply.

I. Cannabis Business Permit (CBP) Application Process.

1. Cannabis Business Permit Applications . Following the issuance of a CUP, a cannabis business is required to submit an application for a CBP specific to the business activity defined by the State pertaining to that activity for any 1938
16 medicinal or adult-use or any other commercial cannabis activity the State may license. It shall be unlawful for any person to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a CBP. All cannabis businesses must satisfy compliance with the terms and conditions of their CUP prior to the City issuing the CBP. a. Requirements for All Commercial Cannabis Businesses . A commercial cannabis business is required to provide the following information in support of its permit application.
i. A copy of its CUP, containing a statement dated and signed by each business owner, under penalty of perjury , that they have read, understand, and shall ensure compliance with the conditions of the CUP.
ii. A copy of its State license (for renewals).
iii. A copy of its Certificate of Occupancy Permit, if applicable. iv. A copy of its Permit to Operate from the Richmond Fire Prevention Services Division, if applicable.
v. A copy of its City of Richmond Business License.
vi. A copy of the c annabis business operating conditions, containing a statement dated and signed by each owner and manager, under penalty of perjury, that they have read, understand, and shall ensure compliance with all Operating Standards set forth in this Article.
vii. A state ment dated and signed by each owner and manager, under the penalty of perjury, that the information regarding each business owner and manager submitted with the CUP
application is current and accurate, or proof that Zoning Administrator approval has been obtained for any change s in management or ownership.
viii. A valid seller's permit from the California Department of Tax and Fee Administration or successor agency.
ix. Proof that payment of all City of Richmond fees and taxes is current.
ix.x. Documents required under 15.04.610.270(H)(1)(a)(ii) and (iii).

2. Issuance of Cannabis Business Permit. The issuance of the CBP requires approval and signatures from all relevant City departments. The Zoning Administrator or designee , after receiving the completed application and aforementioned information will grant the permit where the above -listed requirements are met.

3. Duration of Cannabis Business Permit. A CBP shall be valid for one (1) year or until December 31 each year, unless sooner revoked. No permit granted herein shall confer any vested right to any person or business for more than the above-referenced period.
1939

17 4. Deni al of Cannabis Business Permit. If the Director determines in the initial screening that an application does not meet minimum eligibility requirements, the applicant shall be notified in writing that the application has been denied. Within 5 business days of the date of the decision, an applicant may file a request for immediate reconsideration. The Director shall schedule a meeting with the applicant within 10 business days of the request for reconsideration at which time the applicant may submit information demonstrating that the applicant meets the mi nimum eligibility requirements.

The Director may deny a cannabis business permit if they determine that one or more of the following circumstances exist:
a. The application received is incomplete, filed late, or not responsive to the requirements of this Article;
b. The application contains a false or misleading statement or omission of a material fact;
c. The operation of the business site described in the application fails to comply with any of the requirements in this code, State law, or any other regulation;
d. The applicant has not received a conditional use permit from the City for the corresponding cannabis business;
e. The applicant or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article; f. Applicant has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked; g. The applicant was notified that it was conducting commercial cannabis activity in violation of this Article andor any other City of Richmond ordinances, codes and requirements, and failed to cure the violation in a timely manner;
h. The applicant fails or is otherwise unable to obtain its State of California license;
i. The applicant is delinquent in payment of Federal, State or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies; or
j. Operation of the proposed cannabis business site, as represented in the application, is a threat to the public health, safety, or welfare;. k. The applicant has failed to comply with the requirements provided in Section 15.04.610.270(C);
l. The Livescan/background investigation results indicate that one or more of the criteria for denial set forth in Section

15.04.610.270(H)(1)(a)(iii) exists;
m. The applicant has failed to comply with the terms and conditions of their CUP; or
1940
18 a.n. The applicant has refused to allow or otherwise failed to make the cannabis business available for City inspection.

3.5. Cannabis Business Permit Annual Renewal. Applications for the renewal of a permit shall be filed with the Zoning Administrator or designee at least sixty (60) calendar days before the expiration of the current permit. Any cannabis business allowing their permit to lapse, or which permit expired during a suspension shall be required to submit a new application, pay the corresponding application fees.
a. The renewal application shall contain all the information required for Cannabis Business Permit applications. The applicant shall pay a fee in an am ount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Article.
b. As part of the renewal process, upon the City’s receipt o f a renewal application, the City has the right to conduct a City inspection. shall be conducted at least sixty (6 0) days prior to the permit's expiration.

The purpose of this inspection is to ensure that the cannabis business remains in compliance with all local and state regulations, as well as the terms and conditions specified in the Conditional Use Permit (CUP).

19 regulations adopted pursuant to this Article, or any permit conditions.
viii. The permittee was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
ix. The permittee or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article.
x. The permittee has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis - related permit(s) revoked.
xi. The permittee fails or is unable to renew its State of California license.
xii. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit.
xiii. The permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the
delinquency when notified by the appropriate agencies.
xiv. The permittee has failed to comply with the requirements provided in Section 15.04.610.270(C).
xv. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
xvi. The permittee has failed to comply with the te rms and conditions of their CUP.
d. The Director is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Director is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance w ith state or local laws and regulations or to preserve the public health, safety, or welfare. a.e. If a renewal application is denied, a person may file a new application pursuant to this Article not sooner than one year from the date of the denial.

4.6. Transfer o f Cannabis Business Permit/ Business Modifications . A CBP does not run with the land or business. A CBP is not transferable or assignable to another person or owner, except as approved by the Zoning Administrator.

Notwithstanding the foregoing, the Zoning A dministrator may administratively approve any changes in management or ownership or change 1942
20 in business name or structure and may require additional background check(s) or additional information for such approvals.

5.7. Revocation or Suspension of Cannabis Bus iness Permit. Any CBP issued under this section may be immediately suspended or not renewed for any of the reasons listed below or above in Section 15.04.610.270(I)(5)(c)(i). Any CBP issued under this ordinance may be revoked by the City following notice and opportunity for a hearing before the Zoning Administrator or designee for any of the following reasons:
a. A cannabis business fails to comply with the requirements of this article Article or any conditions of approval of CUP.
b. A cannabis business’s State license for commercial cannabis operations is revoked, terminated or not renewed.
c. The cannabis business’s State license for commercial cannabis operations is suspended. The City shall not reinstate the CBP until documentation is received showing th at the State license has been reinstated or reissued. It shall be up to the City’s discretion whether the City reinstates any permit.
d. The cannabis business fails to become operative within one year of obtaining its CBP.
e. Once operational, the business ceases to be in regular and continuous operation for ninety (90) days unless given prior approval by the City for extenuating and unusual circumstances.
f. State law permitting the use for which the license was issued is amended or repealed resulting in the prohi bition of such use, or the City receives credible information that the federal government will commence enforcement measures against such businesses and/or local governments that permit them.
g. Circumstances under which the CBP was granted have significantly changed and the public health, safety and welfare require the suspension, revocation, or modification.
h. The CBP was granted, in whole or part, on the basis of a misrepresentation or omission of a material statement in the permit application.
i. The cannabis business is not current on City taxes or Fees. i.j. The cannabis business is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies
k. The owner was found to operate another cannabis facility illegally within the City.
l. The owner or any managers refuse to allow or otherwise fail to make the cannabis business available for City inspection.
1943

21 m. The cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopted pursuant to this Article, or any permit conditions.
n. The owner or any manager was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
o. The owner or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article. p. The owner has had a State or local cannabis -related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked. q. The owner or any of its managers have failed to comply with the requirements provided in Section 15.04.610.270(C).
j.r. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Se ction 15.04.610.270(H)(1)(a)(iii) exists.

J. Competitive Selection Process. The City has established a competitive selection process to objectively award permits for which there areis a limited number of permits available, such as for retail facilities.

1. Application Procedures and Requirements. By resolution the City Council shall adopt procedure guidelines and review criteria for the City's evaluation of cannabis business permit applications.
a. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.
b. The review criteria shall include detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to particular sets of criteria.
c. The Director shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the procedures guidelines and review criteria.
d. The City reserves the right to reject any or all applications for a cannabis business permit. Prior to such permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commitment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications as sume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Article , may be cancelled at any time prior to permit issuance. The C ity further reserves the right to request and obtain additional information from any candidate submitting an application. 1944
22 In addition to a failure to comply with other requirements in this Article, an application may be rejected for any of the following reasons:
i. The application was received after the designated time and date of the deadline.
ii. The application did not contain the required elements, exhibits, or was not organized in the required format.
iii. The application was considered not fully responsive to the request for a permit application.

1.2. Competitive Application Period . In the event that a permit for a commercial cannabis activity with a limited permit number becomes available, the Director shall open the competitive application period and make permit applications available.
a. Notice of the competitive selection period shall be published by means determined necessary by the Director to provide public notice of the opportunity to apply.
b. The competitive application period shall be a minimum thirty (30) calendar days from the date the applications are released. Should the last day fall on a day when City Hall is closed, the application period shall be extended to the next open day.
c. Following the application period, the Director or designee shall stop accepting applications and review all applications received.

2.3. Initial Application Review. The Director or designee shall determine whether each application demonstrates compliance with minimum requirements required in the permit application and be entered into a pool of applicants for the Final Application Review and Scoring. These requirements include but are not limited to:
a. Application was submitted during the application period. b. Application forms are filled out completely and demonstrate compliance with minimum requirements required in the permit application.
c. Any application forms required in accordance with Article 15.04.803 are completed and required fees per master fee schedule are paid. d. A signed statement that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this Article including, but not limited to, any and all sensitive use separation criteria required by this Article.

3.4. Final Application Review and Scoring. The Director or designee, after reviewing the applications approved in the Initial Application Review shall convene a Selection Panel composed of the Fire, Police, Finance and Planning, or their designees, to make the final decision, based on the priority point system to objectively award the top applicant(s). A complete description of the 1945

23 priority point system and all priority point considerations shall be included with the application forms.

K. Minimum Standards Related to the Operation of Commercial Cannabis Businesses. Any permit s issued, renewed, or modified pur suant to this Section includes the following conditions of operation. Each permittee is required to comply with the following conditions. The Planning Commission may impose additional conditions as necessary to preserve the public health, safety and welfare.

1. Standards Applicable to All Commercial Cannabis Businesses. The following standards are applicable to all commercial cannabis businesses. a. Compliance with State and Local Law Required. The applicant shall fully comply with all State laws and local laws for commercial cannabis businesses.
b. Maintain Licenses and Permits. All commercial cannabis businesses must maintain all licenses and permits required by the State, the County and the City.
c. Compliance with Laws Regarding Edible Cannabis Products. Commercial cannabis businesses that manufacture, prepare, dispense, and/or sell food, including cannabis -infused foods and/or edible cannabis products, must comply with and are subject to the provisions of all relevant State and local laws and County regulations regarding the preparation, distribution, labeling and sale of such items. d. Job Opportunities for Richmond Residents. All commercial cannabis business shall provide maximum feasible opportunities for Richmond residents to apply for jobs through outreach, advertising, and contacts with local job centers. The City encourages “local hires” whenever possible, consistent with General Plan policies and State and federal employment law. Commercial c annabis businesses shall coordinate hiring opportunities with the City’s Employment and Training Department.
e. Exterior Lighting. Exterior building and parking area lighting at the commercial cannabis businesses must be in compliance with all applicable provisions of Article 15.04.604.
f. Roof Hatches. The commercial cannabis business’ windows and roof hatches shall be secured so as to prevent unauthorized entry; equipped with latches that may be released quickly from the inside to allow exit in the event of emergency; and comply with all applicable Building and Fire Code provisions.
g. Ventilation. The commercial cannabis business must provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the property is not detected outside the property, anywhere on adjacent property or public rights -of-way, or within any other unit located within the same building as the cannabis retail facility, cultivation site, cannabis product manufacturer or any other subsequently approved cannabis business.
1946
24 h. Video Surveillance System . The commercial cannabis business must be monitored at all times by digital surveillance system for security purposes. The digital surveillance system must be of adequate quality, color rendition and resolution in accordance to State Law. The cameras shall record continuously 24 hours per day at a minimum of 15 frames per second and shall be maintained at the property for a minimum of 90 calendar days. Failure to maintain the cameras in good working condition at all times is a violation of this Section and cause for permit revocation or suspension.
i. Alarm System. A permittee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises an in accordance wi th California Code of Regulations Title 16, Division 42.
j. Consent to Inspection. Authorized City, County, and State representatives may enter and inspect the location of a cannabis business at any time, without notice, and inspect the location of any cannabis business as well as any recordings and records required to be maintained pursuant to this Article or under applicable provisions of state law.the property of every commercial cannabis business between the hours of 9:00 a.m. and 5:00 p.m. during the week (Monday through Friday), or at any reasonable time to ensure compliance and enforcement of the provisions of this Section, except that the inspection and copying of private medical records shall be made available to the Police Department only pursuant to a properly - executed search warrant, subpoena, or court order. It is unlawful and cause for immediate suspension or revocation of the CBP for any property owner, landlord, lessee, commercial cannabis business, and/or its owner, agent, employee to refuse to allow, impede, obstruct or interfere with, or otherwise not allow an inspection, review or copy records, recordings or other documents required to be ma intained by a cannabis business under this Article or under state or local law. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this Article or under state or local law.. k. Restrictions on Access and Sale. No commercial cannabis retail facility shall cause or permit the access, sale, or exchange of cannabis to any person who is not 21 years of age or a qualified patient who is 18 years of age or older . No commercial cannabis manufacturer, distributor, testing laboratory, or cultivator shall cause, permit or allow any sale, distribution or exchange of cannabis to any person at the manufacturing, testing, distribution, or cultivation location, nor shall the manufacturer, testing laboratory, distributor, or cultivator permit any walk-ins or allow any person into the site, unless such person is authorized to engage in commercial cannabis business under State and local law.
1947

25 l. Visibility of Cannabis. No cannabis or cannabis products on the site of a commercial cannabis business shall be visible with the naked eye from any adjacent public or private property, nor shall commercial cannabis or commercial cannabis products be visible from the building exterior. No cultivation shall occur at the retail facility’s location unless the business owner has the appropriate local and State permits, and the area devoted to the cultivation is secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry, and has been inspected and approved by the Richmond Fire Prevention Services Division and Richmond Building Departments.
m. Age Restriction. Employees or persons retained by a permittee to work within or on a permitted premise or to handle cannabis goods shall be at least 21 years of age. No customer under the age of 21 shall be allowed at an adult-use cannabis business and no person under the age of 18 shall be allowed at a medicinal cannabis business. n. No Alcoholic Beverages or Tobacco Products . No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products at a commercial cannabis business or its parking area, except that employees of the commercial cannabis business and/or commercial cannabis permittee may consume tobacco products in outdoor areas designated in accordance with applicable prov isions of the Richmond Municipal Code and State law.
o. No Cannabis Consumption. No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the smoking, ingesting, or otherwise consuming cannabis on the premises of a commercial cannabis business or in its parking area.
p. Secure Storage. All cannabis and cannabis products shall be stored on - site in structures that are completely enclosed, in a locked vault or safe that is not bolted to the floor, or in any other secured storage structure.

No off-site storage is allowed.
q. No Retail Sales in Cultivation, Distribution, Testing or Manufacturing Facilities.

No commercial cannabis cultivator, distributor, manufacturer or tester shall allow or permit retail sale of its product at the facility location. r. Maintenance of Records. Records of commercial cannabis activity must be maintained in accordance with State and local law, be maintained in order to show compliance with this Section and be made available to the City upon request electronically as well as in hard copy if requested.

Failure to provide such records is grounds for revocation of the conditional use permit and Cannabis Business Permit . Records maintained must include but are not limited to the following. i. All commercial cannabis businesses must maintain:
1948
26 (1) Proof of a valid conditional use permit issued by the Planning Commission in conformance with this
Section. A copy of the CUP shall be displayed at all
times in a place visible to the public.
(2) Proof of a valid C BP issued by the Planning
Department in conformance with this Section. A copy
of t he CBP shall be displayed at all times in a place
visible to the public.
(3) The full name, address, and telephone number(s) of the owner, landlord and/or lessee of the property.
(4) The full name, address, and telephone number(s) of
each person engaged in the management of the
business and the exact nature of the participation in the management of the business, and for cultivators, the
full name, address, and telephone number(s) of each
employee engaged in the cultivation of cannabis at the
property.
(5) A written accounting of all cash and in -kind
contributions, revenues received, reimbursements, and
compensation to the business and all expenditures and
costs incurred by the business.
ii. A retail facility shall maintain the following records on the property:
(1) An inventory record documenting the dates and the
daily amounts of cannabis and cannabis products
stored on the property and an inventory record of all
cannabis shipments distributed to the facility, as
required by the State’s track and trace system.
(2) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by each manage r, under
penalty of perjury, that they read, understand and shall not engage in any prohibited activity.
(3) Evidence of: (a) verification that all manufactured products are manufactured, packaged, and labeled in
compliance with all applicable State and local laws; and (b) laboratory testing as required by State and local laws. iii. A manufacturer shall maintain the followin g records on the property:
(1) Evidence of: (a) verification that all cannabis products manufactured and packaged at the location are
manufactured, packaged, and labeled in compliance
with all applicable state and local laws; and (b)
laboratory testing as required by State and local laws. 1949

27 (2) A list of any commercial cannabis distributor that the manufacturer has provided or intends to provide its
product to. The list shall include the name of the
distributor, its address, the date the cannabis product was sold or transferred to the distributor, and the type and amount of the product tha t was distributed as
required by the State’s track and trace program.
iv. A cultivator shall maintain the following records on the property:
(1) The current address of all sites at which cannabis is cultivated.
(2) An inventory record documenting the dates and
amounts of cannabis cultivated at the property, the
daily amounts of cannabis stored on the property, and
an inventory record of all cannabis transferred to a
commercial cannabis distributor . The inventory
records shall include total plants grown and total
weight of cannabis cultivated by the cultivator, the total weight of all cannabis sold or transferred to a
distributor, and receipts and documents detailing the
sale or transfer of cannabis as required by the State’s track and trace program.
(3) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by the permittee(s) for the
cultivation site, under penalty of perjury, that they read, understand and shall not engage in a ny prohibited
activity.
(4) Evidence to verify that all cannabis is cultivated in compliance with all applicable state and local laws.
v. A distributor shall maintain the following records on the property:
(1) A list of any commercial cannabis businesses that the distributor has provided or intends to provide its
product to. The list shall include the name of the
cannabis business , its address, the date the cannabis
product was sold or transferred to the business, and
the type and amount of the product that was
distributed as required by the State’s track and trace
program.
vi. A commercial cannabis business that produces edible cannabis products shall maintain the following records on the property:
(1) Proof of inspections and approvals by Contra Costa Environmental Health Department and the County
Health Officer for food manufacturers, packagers
1950
28 and/or distributors , when such inspections or
approvals become required.
(2) Producers of edible cannabis products shall maintain a written or computerized log documenting:
(a) The source of the cannabis used in each batch
of product;
(b) The contaminant testing date; and
(c) The testing facility for the cannabis.
s. Use of Pesticides. No pesticides or insecticides that are prohibited by applicable law for fertilization or production of edible produce may be used on any cannabis cultivated, produced, or distributed by a commercial cannabis business. A commercial cannabis business shall comply with all applicable laws regarding use of pesticides. t. Disposal of Cannabis and Cannabis Byproducts. All cannabis and any product containing a usable form of cannabis must be made unusable and unrecognizable prior to removal from the business in compliance with all applicable State laws.
u. On-site Community Relations Contact. Commercial cannabis businesses must provide the Police Department and all residents, business es and property owners within 100 feet with the current name, phone number, secondary phone number and e -mail address of an on -site community relations contact person to whom notice of any operating problems associated with the commercial cannabis business may be reported.
v. On-Site Manager. All commercial cannabis businesses must have an on- site manager, at each commercial cannabis business, who is responsible for overall operation at all times that employees are conducting operations, and provide the Police Department with contact information for such person, including a telephone number and e-mail address.
w. Discouraging Nuisance. Commercial cannabis businesses must take all reasonable steps to discourage and correct objectionable conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys and areas surrounding the commercial cannabis business and adjacent properties. Such conditions include but are not limited to smoking, creating a noise disturbance, loitering, littering, and graffiti. x. State Licenses. Any commercial cannabis business that fails to obtain or qualify for the required State license, or is refused such license, shall immediately cease all operations in the City.
y. Testing and Labeling . All cannabis, cannabis products, and edible cannabis products, must be tested and labeled as follows and as required by State law.
1951

29 i. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products are still subject to testing for potency, as required for the label information, and must use cannabis or cannabis products that ha ve been tested for contaminants. All baked products must contain a list and warning of any known food allergens, like nuts, etc. and comply with CCR Title 17, Division 1, Chapter 13, §40254 and any other food safety requirement of local or State regulations.

2. Supplemental Standards for Retail Facilities . In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail; facilities.
a. Signage. A sign must be posted in a conspicuous location inside the commercial cannabis business and advise that:
i. You must be at least 21 years old or at least 18 years old with a valid physician’s recommendation to purchase, possess, or consume cannabis or cannabis products.
ii. The use of cannabis may impair a person's ability to drive a motor vehicle or operate heavy machinery;
iii. Loitering at the location of a cannabis retail facility for an illegal purpose is prohibited by California Penal Code Section 647(h); and
iv. This retail facility is permitted in accordance with the Municipal Code, and State law, including the MAUCRSA, and Bureau regulations.
b. Hours of Operation. A licensed cannabis retail facility or non-storefront retail facility may sell and deliver cannabis between the hours of 8:00 a.m. and 9:00 p.m.
c. Safety of Products. The retail facility must ensure that the cannabis, cannabis products, and edible cannabis it offers for sale are manufactured, packaged, tested, and labeled in compliance with all applicable state and local laws. No retail facility may obtain or distribute cannabis products from any commercial cannabis business unless such business has a valid permit or license issued by the Bureau and a California city or county.
d. Onsite Consumption. On-site consumption of cannabi s or cannabis products is specifically prohibited on the premises at all times.

3. Supplemental Standards for Cultivators. In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivators.
a. Outdoor Cultivation Prohibited. All cultivation must be done inside a fully enclosed structure, which may be a greenhouse, and the cultivation operation shall not be visible from the exte rior of the structure.

Outdoor cultivation of cannabis is not permitted in any zoning district. 1952
30 4. Supplemental Standards for Retail Facilities Engaged in Deliveries. a. Commercial cannabis deliveries may be made only from a commercial cannabis retail facility permitted by the City or from a State licensed retail facility outside of the City limits in compliance with this section, and in compliance with all State regulations.
b. All deliveries of cannabis goods shall be performed by a delivery employee of a retailer.
c. While carrying cannabis goods for delivery, a retailer’s delivery employee shall ensure the cannabis goods are not visible to the public. d. Persons engaged in delivery of cannabis or cannabis products on behalf of a licensed retailer , shall adhere to the delivery vehicle requirements and restrictions on the amount of cannabis and cannabis goods stored in the vehicle during delivery as set forth under State law. e. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement.

5. Supplemental Standards for Distributors.
a. A distributor shall not store or distribute non- cannabis goods on or from the premises permitted for distribution of cannabis goods. b. A distributor shall ensure a label with the following information is physically attached to each container of each batch:
i. The manufacturer or cultivator’s name and license number; ii. The date of entry into the distributor’s storage area; iii. The unique identifiers and batch number associated with the batch;
iv. A description of the cannabis goods with enough detail to easily identify the batch; and
v. The weight of or quantity of units in the batch.
c. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from the storage areas.
d. A distributor shall adhere to all requirements for transportation of cannabis goods as set forth in State law.

6. Supplemental Standards for Testing Laboratory Businesses. a. A permitted ca nnabis testing facility shall comply with all State regulations contained in California Code of Regulations Title 16, Division 42 and as it may be amended from time to time. b. Any cannabis testing facility must maintain all c ertifications required by the State.
c. A permitted cannabis testing facility business, its owners and its employees may not hold an interest in any other cannabis business except another testing business.
1953

31 7. Supplemental Standards for Commercial Cannabis Businesses Producing Edible Cannabis Products.
a. The manufacturer and seller of edible cannabis products must ensure that all cannabis products and edible cannabis products it manufactures and/or sells complies with the any applicable provisions of all Stat e and local laws, including regulations of the Contra Costa County Environmental Health Officer regarding the testing, preparation, distribution, labeling and sale of food.
b. Preparation of Edibles.
i. Individuals involved in the production or distribution of edible cannabis products must
thoroughly wash their hands before
commencing production and before handling the finished
product.
ii. Gloves
must be worn when packaging edible products
containing cannabis.
iii. In order to reduce the likelihood of foodborne disease transmission, individuals who are suffering from
symptoms
associated with acute gastrointestinal illness or are known to be infected with a communicable disease that is transmissible through foodstuffs are prohibited from preparing edible products containing cannabis until they are free of that illness or disease, or are incapable of transmitting the illness or disease
through foodstuffs. Individuals who have sores or
cuts on their hands must use gloves when preparing and
handling edible products containing cannabis.
iv. Edibles that are sold at a retail facility may only be prepared by a locally-permitted, and State-licensed manufacturing facility. v. Any and all persons who produce edible cannabis products must be a State-certified food handler. The valid certificate number of such persons must be on record at each
manufacturing facility where the edible product is distributed, and a copy of the certificate kept either on-site, or made available during inspections if kept off-site.
vi. Hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand- washing facilities shall be located in the facility in edible cannabis product preparation areas and where good sanitary practices require employees to wash and/or sanitize their hands and provide effective hand -cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.
c. Packaging of Edibles.
1954
32 i. Edible cannabis products shall comply with State packaging requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.
d. Labeling.
i. Edible cannabis products shall comply with State labeling requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.:

8. Prohibited Activity. On-site consumption of cannabis or cannabis products is specifically prohibited on all commercial cannabis premises at all times.

Cannabis may not be inhaled, smoked, eaten, ingested, or otherwise consumed anywhere on the property of a commercial cannabis business, in the parking areas of the business, or in those areas restricted under the provisions of California Health and Safety Code Section 11362.3.

L. Fees and Taxes . All commercial cannabis businesses shall pay applicable fees and taxes, which may include one or more of the following:

1. Application Fees. The applicant shall pay all fee s required by the master fee schedule to cover the cost s of processing commercial cannabis business permits, including but not limited to use, design review, building, fire, and CBP permits.

2. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all b usiness taxes required by the City of Richmond Municipal Code , including but not limited to those due under Richmond Municipal Code Section 7.04.139.

3. Commercial Cannabis Regulatory Fee. The business owner shall pay an annual regulatory fee to cover the cos ts of anticipated enforcement and inspections relating to the c annabis operation. The amount of the fee shall be set by Resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the c annabis operation.

The regulatory fee shall be due upon issuance of the CBP. The Regulatory Fee may be amended from time to time based upon actual costs.

4. All required taxes including sales and use taxes, business, payroll etc.

5. Additional cannabis -specific taxes approved by the voters of the City of Richmond.

M. Liability and Indemnification.

1. To the fullest extent permitted by law, any actions taken by a public officer or employee under the provisions of this Section shall not become a personal liability of any public officer or employee of the City.

33 attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called "action") against the City to attack, set aside, void or annual, any cannabis -related approvals and actions and stri ctly comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys' fees.

3. Within ten calendar days of the service of the pleadings upon the City of any action as specified in paragraph (H)(2) above, the permittee shall execute a letter of agreement with the City, acceptable to the Office of the City Attorney, which memorializes the above obligations. These obligations and the letter of agreement shall survive termination, extinguishment or invalidation of the cannabis-related approval. Failure to timely execute the letter of agreement does not relieve the applicant of any of the obligations contained in this section or any other requirements or performance or operating standards that may be imposed by the City.

N. Violations and Enforcement. In addition to Article 15.04.815 (Enforcement Provisions):

1. Any violation of this Section shall be subject to all Enforcement Provisions set forth in Article 15.04.815;

1.2. Any person violating any provision of this Section, including engaging in a commercial cannabis business without a CUP and CBP or knowingly or intentionally misrepresenting any material fact in procuring a CUP and CBP , shall be deemed guilty of a misdemeanor punishable by a fine of not more than $1,000.00 for each day or portion thereof of the violation or by imprisonment for not more than 12 months, or by both such fine and imprisonment;

2.3. Any violation of this Section shall be subject to injunctive relief, revocation of the certificate of occupancy for the property, disgorgement and payment to the City of any and all monies unlaw fully obtained, costs of abatement, costs of investigation, attorney fees, and any o ther relief or remedy available at law or equity; and

3.4. Any violation of any condition of a CUP or CBP for a commercial cannabis business, including failure to remit any fee s required to maintain the permits and/or failure to remit the quarterly gross receipt taxes, shall be grounds for permit suspension or revocation.

1956
EXHIBIT A: PROPOSED AMENDMENTS (CLEAN VERSION)

Page 1 of 33 ends

15.04.610.270 Marijuana/Cannabis Commercial Uses
Commercial Cannabis activities, including but not limited to cultivation, manufacturing, testing, distribution, and retail are subject to the standards and procedures of the Municipal Code, State Law, and the regulations set forth in these Zoning Regulations.

A. Applicability. These standards apply to all establishments that are involved in any commercial cannabis activity.

B. Definitions1. The following words or phrases, whenever used in this Section, have the following definitions:

1. A-license. A state license issued for cannabis or cannabis products that are intended for adults 21 years of age and over and who do not possess physician’s recommendations.

2. Attending Physician. An individual who possesses a license in good standing to practice medicine or osteopathy issued by the Medical Board of California or the Osteopathic Medical Board of California and who has taken responsibility for an aspect of the medical care, treatment, diagnosis, counseling, or referral of a patient and who has conducted a medical examination of that patient before recording in the patient's medical record the physician's assessment of whether the patient has a serious medical condition and whether the medical use of cannabis is appropriate.

3. Bureau of Cannabis Control (“the Bureau”). The bureau within the California Department of Consumer Affairs created to develop, administer and enforce comprehensive ru les for medicinal and adult -use cannabis in California. The Bureau is responsible for the regulation and licensing of all commercial cannabis retail, distribution, testing, microbusinesses and temporary cannabis events in California.

5. California Department of Public Health – Manufactured Cannabis Safety Branch (“the DPH”). A division of the California Department of Public Health, responsible for the regulation and licensing of all commercial cannabis manufacturing in California.

1 Additional terms, such as “applicant” and “person”, “permit” and “use”, are defined in Zoning and Subdivision Regulations, Series 100, General Provisions, and are not repeated here. 1957

2 manufacture, salt, derivative, mixture, or preparat ion of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purposes of these zoning regulations, "cannabis" does not include "industrial hemp" as defi ned by Section 81000 of the California Food and Agricultural Code or Section 11018.5 of the California Health and Safety Code.

7. Cannabis Business. Establishments, properties, parcels, and/or structures involved in any commercial cannabis activity, including retailers, storefront retailers, non-storefront retailers, cultivators, manufacturers, testers, and distributors.

Equity Applicants apply to the program via formal application. The program prioritizes granting new cannabis retailer licenses to Equity Applicants.

9. Cannabis Plant. Any immature, flowering, or dried flower in accordance with State Law. Immature cannabis plant means a cannabis plant that has a first true leaf measuring greater than one half inch long from base to tip (if started from seed) or a mass of roots measuring greater than one half inch wide at its widest point (if vegetatively propagated), but which is not flowering.

Flowing cannabis plant means that a cannabis plant has formed a mass of pistils measuring greater than one half inch wide at its widest point. Dried flower means all dead cannabis that has been harvested, dried, cured, or otherwise processed, excluding leaves and stems.

10. Cannabis Products. Cannabis that has undergone a process wher eby the plant material has been transformed into a concentrate, including, but not limited to, concentrated cannabis, or an edible or topical product containing cannabis or concentrated cannabis and other ingredients.

11. Canopy. The designated area(s) at a l icensed cultivation site that contain mature plants at any point in time.

12. Collective. See Retail Facility.

13. Commercial Cannabis Activity. The cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of adult-use or medicinal cannabis or cannabis products, as provided for in this Ordinance and in accordance with State Law.

14. Cultivation. Any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis within an enclosed structure.

16. Cultivator. An individual or business that plants, grows, harvest, dries, cures, grades, or trims cannabis within an enclosed structure. 1958

3 17. Customer. A natural person 21 years of age or older, a natural person 18 years of age or older who poss esses a physician’s recommendation, or a qualified patient or a primary caregiver.

18. Delivery. The commercial transfer of cannabis or cannabis products from a retail or non-storefront retail facility to a customer.

19. Dispensary. See Retail Facility.

20. Distributor. A person or licensed entity engaged in the business of procuring, selling, storing, packaging, labeling, rolling and transporting cannabis or cannabis products from a licensed cultivator, manufacturer, or from any other State cannabis licensees for sale to any State Cannabis licensee, in accordance with State Law A distributor shall distribute only cannabis goods, cannabis accessories, and licensees’ branded merchandise or promotional materials.

21. Distribution. Means the procurement, sale, and transport of ca nnabis and cannabis products between licensees pursuant to Section 26000 of the California Business and Professions Code.

22. Edible Cannabis Products. Manufactured cannabis that is intended to be used, in whole or in part, for human consumption, including, bu t not limited to, chewing gum, but excluding products set forth in Division 15 (commencing with Section 32501) of the California Food and Agricultural Code.

23. Enclosure. An area fully surrounded by a fence, wall, or other solid barrier that prevents access to cannabis. Enclosures must be equipped with a locked gate or door.

24. Equity Applicant. An individual or business who makes a formal application to be admitted and is accepted into the City’s Cannabis Equity Program.

25. Equity Business . A cannabis business with not less than 51% ownership interests held by equity applicants.

26. Greenhouse. A building, room, or structure, usually chiefly of transparent material, used for cultivation of cannabis which meets State requirements for mixed-light cultivation.

27. Indoor cultivation. The cultivation of cannabis within a permanent structure using exclusively artificial light or within any type of stru cture using artificial light.

28. License. A state issued cannabis license, which includes both an A-license and an M-license, as well as a testing laboratory license.

29. Licensee. Any person or entity holding a state issued commercial cannabis A- license or an M-license, and includes the holder of a cannabis testing laboratory license.

30. M-license. A state license issued for commercial cannabis activity involving medicinal cannabis.

31. Manager. A person with responsibility for the establishment, organization, registration, supervision, or oversight of the operation of a cannabis business, including but not limited to persons who perform the functions of president, 1959

4 vice president, director, operating officer, financial officer, secretary, treasurer, or manager of the business.

32. Manufacturer. A State-licensee that manufactures cannabis by compounding, blending, extracting, infusing, or otherwise making or preparing cannabis products. “Manufacture” includes extraction, infusion, packaging or repackaging, and labeling or relabeling packages of cannabis products, in accordance with State Law.

33. Marijuana. See Cannabis.

34. Mixed-Light Cultivation. The cultivation of mature cannabis in a greenhouse, glasshouse, conservatory, or other similar structure using light deprivation and/or one of the artificial lighting models described below:
a. Mixed-light Tier 1. the use of artificial light at a rate of six watts per square foot or less;
b. Mixed-light Tier 2. the use of artificial light at a rate above six and below or equal to twenty-five watts per square foot.

35. Non-Storefront Retail Facility. A facility that is closed to the public where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale exclusively by delivery, in accordance with State Law.

36. Owner or Ownership interest. An interest held by a person who is an owner as defined by State of California commercial cannabis regulations or who has a financial interest in the commercial cannabis business of 5% or more.

37. Personal Cultivation. The cultivation of no more than six (6) cannabis plants conducted by an individual strictly for that individual’s personal use, possession, processing, transporting, or giving away without any compensation whatsoever in accordance with State law, including but not l imited to Health and Safety Code sections 11362.1 and 11362.2, as may be amended. Personal cultivation also means and includes cultivation of medic inal cannabis conducted by a qualified patient exclusively for his or her personal medic inal use, and cultiva tion conducted by a primary caregiver for the personal medicinal purposes of no more than five specified qualified patients for whom he or she is the primary caregiver, in accordance with State law, including Health and Safety Code sections 11362.7 and 11362.765, as may be amended.

38. Primary Caregiver. The individual, designated by a qualified patient or by a person with an identification card issued pursuant to California Health and Safety Code Section 11362.7, who has consistently assumed responsibility for the housing, health, or safety of that patient or person. The primary caregiver may be a licensed clinic, residential care facility, hospice, or home health agency.
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5 39. Private Residence . A house, apartment unit, mobile home, or any other similar dwelling.

40. Qualified Patient. A person who is entitled to the protections of California Health and Safety Code Section 11362.5, for patients who obtain and use cannabis for medic inal purposes upon the recommendation of an attending physician, whether or not that person applied for and received a valid identification card issued pursuant to State Law.

41. Retail Facility. A facility where cannabis, cannabis products, edible cannabis products, or devices for the use of cannabis or cannabis products are offered for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale.

42. Retailers. An individua l, retail facility , storefront retail facility, and non - storefront retail facility.

43. State. The State of California.

44. Storefront Retail Facility. A retail facility that has a physical location, including an address where commercial cannabis activities are conducted, and that sells cannabis goods to customers at its premises or by delivery.

45. Testing Laboratory. The facility where tests are performed on cannabis or cannabis products and that holds a valid certificate of accreditation and license from the Bureau, if required.

46. Testers. An individual or business that performs tests on cannabis or cannabis products and that holds a valid certificate or accreditation and license from the Bureau, if required.

47. Volatile Solvent . Is the same as defined by the California Department of Health in §40100 of the California Code of Regulations , as may be amended, and means any solvent that is or produces a flammable gas or vapor that, when present in the air in sufficient quantities, will create explosive or ignitable mixtures. Examples of volatile solvents include, but are not limited to, butane, hexane, and propane.

C. Permits Required. A Conditional Use Permit (CUP) and a Cannabis Business Permit (CBP) are both required for all commercial cannabis activities prior to operation.

Cannabis businesses shall first obtain a CUP by submitting an application pursuant to Section 15.04.610.270 (H) of this Article and any application forms and fees required in accordance with Article 15.04.803 as a requisite for obtaining a CBP. The provisions of Article 15.04.806 Use Permits apply, including but not limited to procedures for appeals, modifications, and approval. Once building permits are obtained and finaled, if required, the required State licenses are obtained, and City Regulatory fees paid, a CBP will be granted. CUPs and CBPs will only be granted to entities operating legally according to the Medic inal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), other applicable State Law, and the State regulations. Reasonable conditions of approval may be imposed, including but not limited to requirements for permits from the County for retail sales of edible cannabis products and from the State for food product manufacturing.
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6 D. Operating Without Permits. It shall be unlawful for any person as defined by this Article to engage in, conduct or carry on, in or upon any premises within the City any commercial cannabis business without a CUP and CBP. Persons operating in violation of this Article shall be given an amnesty period to come into compliance by submitting a complete CUP application within one hundred twenty (120) days of the effective date of this Article and securing both the required CUP and CBP within one hundred eighty ( 180) days of application submittal . Failure to submit a complete CUP application within the amnesty period will result in further enforcement. Any persons in violation of this subsection shall be prohibited from applying for a CUP for one year anywhere in the City of Richmond. In addition, commercial cannabis uses shall be prohibited on the subject property for one year.

E. Promulgation of Regulations, Standards and Other Legal Duties. In addition to any regulations adopted by the City Council, the Director is authorized to establish administratively any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of Cannabis Businesses and the City 's oversight, or concerning any other subject determined to be necessary to carry out the purposes of this Article. This authority extends to situations where modifications in State cannabis laws or changes in license types authorized by the State are deemed essential for the effective implementation of the objectives outlined in this Article.

F. Locations Where Allowed and Number Allowed.

1. Cultivators, Manufacturers, Mixed-light Cultivators, Testing Laboratories, and Distributors. All commercial cannabis cultivation, manufacturing, mixed-light cultivation, testing, and distributor operations shall be conditionally permitted as provided for in the City’s Land Use Regulations Tables in Chapter 15.04.

2. Retail Facilities.
a. Existing Retail Facilities. Existing retail facilities may expand at their current location subject to Planning Commission approval of a modified CUP, upon making the following findings:
i. The retail facility has operated in compliance with all local and state regulations; and
ii. The expanded use will not negatively impact the surroundin g community.
b. New Retail Facilities. Any new commercial cannabis retail and non- storefront retail facilities are only allowed to locate in a CR , Regional Commercial Zoning District with a conditional use permit unless, following a public hearing, the Planning Commission makes all of the following findings to authorize a retail facility to locate on a site in the CG General Commercial Zoning District:
i. The retail facility has demonstrated that it considered locations within the CR District and found no location meeting the requirements of this section that serves the needs of its customers; and
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7 ii. The proposed location within the CG District would complement the surrounding c ommunity while providing
necessary services to its customers; and
iii. The proposed location is not abutting a residential use.

3. Distance from Schools, Parks, Community Centers, Youth Center, Child-Care Center, or Nursery School.
a. All commercial cannabis activity must be located a minimum of 1,500 feet from any public or private high school and a minimum of 600 feet from any public or private kindergarten, elementary, middle or junior high school that is in existence at the time the permit is issued. b. All commercial cannabis activity shall be located a minimum of 600 feet from any park, community center, youth center, and public or private child-care center that is in existence at the time the permit is issued.
c. Following a public hearing, the Planning Comm ission may make exceptions to the distance requirements for all commercial activities if all of the following findings are made based on specific facts:
i. The location, design and proposed operating characteristics of the cannabis business is such that it i s highly improbable that persons on, in or travelling to or from nearby parks,
community centers, youth centers, or child-care centers would be able to view persons in, entering, or leaving the cannabis facility; and
ii. Allowing the cannabis business to locate within 1,500 feet of a public or private high school or within 600 feet of a park, community center, youth center, and public or private child - care center, will not grant the cannabis business a special privilege not available to other commercial cannabis
businesses within the City; and
iii. The cannabis business has demonstrated that it considered other locations and selected the location that would have the least negative impact on the surrounding community while providing necessary services to its customers.

4. Number of Commercial Cannabis Businesses.
a. No more than six (6) storefront retail facilities and two (2) non - storefront retail facilit ies shall be permitted or allowed to operate in the City. Of these retail facilities, two (2) storefront retail facilities and two (2) non-storefront retail facilities shall be designated to be owned by new Equity Applicants or Equity Businesses, who are not currently permitted to operate a retail cannabis facility in the City. The City has established a competitive selection process in Section 15.04.601.270 (J)(1) of this Article to objectively award permits for which there are a limited number of permits available, such as for retail facilities. All 1963

8 competitive-based considerations shall be incl uded with the application forms.
b. There shall be no limit on the number of commercial cannabis cultivators, distributors, testing laboratories, or manufacturing businesses in the City as long as they obtain v alid State and local permits and licenses, including CUP and CBP from the City of Richmond for each location.
c. This section is only intended to create a maximum number of commercial cannabis businesses that may be issued permits to operate in the City. Nothing in this Article creates a mandate that the City must issue any or all of the cannabis business permits.

G. Delivery of Commercial Cannabis and Cannabis Products. a. The delivery of commercial cannabis or cannabis products from a State licensed retail facility or non-storefront retail facility to a customer is permitted, provided such deliveries are conducted in accordance with this Article and State law , including obtaining a Richmond Business license. All other unpermitted and unlicensed delivery services within the City are prohibited.
b. Existing permitted retail cannabis businesses operating within the City are required to obtain a CUP modification before conducting delivery activities.

H. Conditional Use Permit Application Process.

1. Conditional Use Permit Applications. In addition to any application forms and fees required in accordance with Article 15.04.803, an application for a commercial cannabis business must provide specific information, as determined by the Zoning Director, based on this Section, Sta te law and regulations, and County input relative to edible cannabis products. This information includes, but is not limited to, the following:
a. Requirements for All Commercial Cannabis Businesses. A commercial cannabis business is required to provide the following information in support of its permit application.
i. Information Regarding the Proposed Property.
(1) The address of the property where the proposed
commercial cannabis business will operate.
(2) A site plan with fully dimensioned interior and exterior floor plans, including electrical, mechanical, plumbing, parking, and disabled access compliance pursuant to
Title 24 of the State of California Code of Regulations and the federal Americans with Dis abilities Act. For a retail facility , the site plan must show that there are separate rooms or partitioned areas within the retail
facility for the receipt of supplies and for the delivery of cannabis to customers.
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9 (3) Exterior photographs of the entrance(s), exit(s), street frontage(s), parking, front, rear and side(s) of the site. (4) Photographs depicting the entire existing interior of buildings on the site.
(5) If the site is being rented or leased or is being
purchased under contract, a copy of such lease or
contract.
(6) If the site is being rented or leased, written proof that the property owner, and landlord if applicable, were
given notice that the property will be used as a
commercial cannabis business, and that the property
owner, and landlord if applicable, agree(s) to said
operations. If the retail facility is to be a subtenant, then "landlord" shall mean the primary tenant.
ii. Information Regarding Each Business Applicant, Owner and Manager. For each business applicant, owner, and manager, the following information must be provided, to the extent applicable:
(1) The name, address, telephone number, title and
function(s);
(2) A fully legible copy of one valid government -issued form of photo identification, such as a driver's license; and
(3) A summary criminal history ("LiveScan") prepared by the Richmond Police Department not more than thirty
(30) days prior to the date of application.
iii. Background Investigation of Applicants, Owners and Managers. The applicant, each owner, and proposed manager shall undergo a criminal background investigation and shall submit the name, address, telephone number, title, primary responsibility(ies), and a valid government - issued form of identification, together with any other related information requested by the Chief of Police for the purpose of conducting mandatory background checks. This includes but is not limited to completing a LiveScan with the Richmond Police
Department no more than 30 days from the date of the
application. No person may be issued a CUP or CBP unless they have first cleared the background check and submitted LiveScan results that are clean and clear of any of the convictions listed below . Neither the applicant, each owner, nor any proposed or prospective manager shall have been convicted of:
(1) A serious or v iolent felony conviction, as specified in Penal Code Section 667.5(c) or Section 1192.7(c);
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10 (2) A felony conviction involving dishonesty, fraud or deceit, including but not limited to fraud, forgery, theft, or embezzlement as those offenses are defined in Cal.

Penal Code §§ 186.11, 470, 484, and 504a, respectively; or equivalent offenses in other states;
(3) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away,
preparing for sale, or peddling, any controlled
substance to a minor; or selling, offering to sell,
furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or
(4) A conviction of illegal use, possession, transportation, distribution, or similar activities related to con trolled substances, as defined in the Federal Controlled
Substances Act, not including cannabis -related
offenses for which the conviction occurred after the
passage of the Compassionate Use Act of 1996.

For purposes of this Section, conviction includes a p lea or verdict of guilty or a conviction following plea of nolo contendere. Any conviction under this section is grounds for denial of the CUP and CBP.
iv. Information Regarding the Commercial Cannabis Business. (1) Written confirmation as to whether the commercial
cannabis business, or a commercial cannabis business
with one or more owner or managers in common with
the applicant, previously operated in the City or any
other county, city or state under a similar
license/permit, and whether the business applicant
ever had such a license/permit revoked or suspended
and the reason(s) therefore.
(2) The name and address of the commercial cannabis
business’ current Agent for Service of Process.
(3) Information pertaining to a Notice of Violation for unpermitted cannabis operations or any cannabis
related enforcement violations or within the City.
v. Plan for U nsold Cannabis. A plan for the disposal of any unsold cannabis or cannabis product must be submitted that renders or prevents any portion thereof from being
recognizable and useable by any person or animal.
vi. Neighborhood Responsibility Plan. A neighborhood
responsibility plan that demonstrates how the business will fulfill its responsibilities to the neighborhood, including neighborhood outreach, methods for future communication, and dispute resolution.
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11 vii. Security Plan. A security plan indicating how the applicant will comply with the requirements of this Section and any other applicable law, rule, or regulation.
viii. Affirmation that the Application is True. A statement dated and signed by each management member, under penalty of
perjury, that the management member has personal knowledge of the information contained in the application, that the information contained therein is true and correct, and that the application has been completed under the supervision of the management member(s).
b. Supplemental Application Requirements for Retail Facilities. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis retail facilities. i. Security Plan. A retail facility’s security plan must include procedures for verifying identification of customers and primary caregivers both before entering the retail facility and again before receiving cannabis; the number, location and hours of security guards; and a theft prevention plan including a detailed description of all surveillance and video equipment, location and coverage of cameras and how law enforcement or their representatives will be given real-time and stored access. ii. Daily Customer Limits . A retail facility or non -storefront facility shall adhere to daily limits on adult -use and medicinal cannabis and cannabis products by its customers in accordance to State law.
c. Supplemental Application Requirements for Manufacturers. In addition to the standards applicable to all commercial cannabis businesses, the following apply to commercial cannabis manufacturing operations. i. Safety of Manuf acturing Process. A commercial cannabis manufacturer must demonstrate one or both of the following:
(1) The only manufacturing processes used are either
solventless or employ only nonflammable, nontoxic
solvents that are generally recognized as safe pursuant to the federal Food, Drug, and Cosmetic Act (21
U.S.C. Sec. 301 et seq.).
(2) The manufacturing processes only uses solvents
exclusively within a closed -loop system that meets all of the following requirements:
(a) The system uses only solvents that are generally
recognized as safe pursuant to the federal Food,
Drug, and Cosmetic Act (21 U.S.C. Sec. 301 et
seq.).
(b) The system is designed to recapture and
contain solvents during the manufacturing
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12 process and otherwise prevent the off -gassing
of solvents into the atmosphere to mitigate the
risks of ignition and explosion during the
manufacturing process.
(c) A licensed engineer certifies that the system
was commercially manufactured, is safe for its
intended use, and was built to codes of
recognized and generally accepted good
engineering practices, including, but not
limited to, the American Society of Mechanical
Engineers, the American National Standards
Institute, Underwriters Laboratories, the
American Society for Testing and Materials, or
OSHA Nationally Recognized Testing
Laboratories.
(d) The system has a certification document th at
contains the signature and stamp of a
professional engineer and the serial number of
the extraction unit being certified and that the
certification is renewed either annually or
according to the manufacturer’s
recommendations.
ii. Fire, Safety, and Building Code Requirements. The manufacturer must meet all State, county and locally required fire, safety, and building code requirements.
iii. Approval from Richmond Fire Prevention Services Division or designee . The commercial cannabis manufacturer must receive and maintain approval from the Richmond Fire
Prevention Services Division for the closed-loop system and for other equipment used for manufacturing and extraction operations, per guidelines adopted by the Richmond Fire Prevention Services Division.
iv. Edible Cannabis Products. Commercial cannabis
manufacturers that prepare edible cannabis products must demonstrate compliance with State, County and local
requirements regarding the preparation, distribution, labeling, and sale of food.
d. Supplemental Application R equirements for Cultivators and Manufacturers. In addition to the application requirements applicable to all commercial cannabis businesses, the following apply to commercial cannabis cultivation and manufacturing operations.
i. Plans for Use of Renewable El ectricity. All cultivation and manufacturing operations must submit detailed plans
demonstrating that the electricity used in the cultivation and manufacturing operations is from a renewable energy source or arrangements have been made to offset use of
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13 nonrenewable electrical energy with renewable energy from another source. If written evidence of enrollment in the Deep Green 100 percent renewable energy program administered by Marin Clean Energy (MCE) is provided, no further details need to be submitted wi th the application. Enrollment shall be maintained, and evidence provided annually in order to renew CBP.
ii. Plans for Water Conservation. All cultivation and
manufacturing operations must submit detailed plans
demonstrating strict water conservation methods will be instituted and maintained at all times, and such plans must include records of monthly water consumption. These plans also must show that the cultivation facility will be equipped with water collection and filtration systems to reduce irrigation water to the maximum extent possible as determined by the Zoning Director or the State, if its regulations are more restrictive.
iii. Plans fo r Wastewater. All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into the City’s wastewater system, as set forth in Richmond Municipal Code Chapter 12.18. This shall include the su bmittal of an Indust rial User Permit Application (Baseline Monitoring Report) to the Water Resource Recovery Department.
iv. Plans for Stormwater. All cultivation and manufacturing operations must demonstrate compliance with the limitations on discharge into t he City’s municipal separate storm sewer system (MS4), as set forth in Richmond Municipal Code
Chapter 12.22. This shall include any and all provisions required under the Municipal Regional Permit (NPDES Permit No. CAS612008.
v. Plans to Prevent Mold. All cultivation and manufacturing operations must submit a plan that specifies the methods to be used to prevent the growth of harmful mold.
vi. Ventilation Plan. All cultivation and manufacturing operations must submit det ailed information about the proposed
ventilation system, including technical specifications indicating that the system is capable of preventing the release into the atmosphere of cannabis odors from the cultivation or
manufacturing operation.

14 in ownership, management, sources of electricity, or operations, from those described in the original application.

3. Expiration and Extension . A commercial cannabis CUP is subject to the expiration and extension procedures in RMC Section 15.04.803.110.

4. Modification of Permit Conditions. Modifications to the permit or the conditions of approval may be requested in accordance with Section

15.04.803.110 and with prior notification and approval from the appropriate State cannabis regulatory agency.

5. Denial, Revocation or Suspension , and Renewal of Conditional Use Permit.
a. The procedures in Article 15.04.803 (Common Procedures) apply. b. The CUP for a commercial cannabis business may be denied, revoked, suspended, or not renewed if it is determined that one or more of the following circumstances exist:
i. The State denies or revokes a State license for the operation of commercial cannabis business;
ii. The CUP application contains a false or misleading statement or omission of material fact;
iii. The commercial cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopted pursuant to this Article, or any permit conditions;
iv. The applicant, owner, permittee or any of its managers has any unpaid and overdu e administrative penalties imposed for violations of this Article;
v. The applicant, owner, or permittee has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked;
vi. The state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit;
vii. The applicant, owner, or permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate
agencies;
viii. The applicant, permittee, owner, or any of its managers have failed to comply with the requirements provided in Section

15.04.610.270(C);
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15 ix. The applicant, permittee, owner, or any managers fail to submit supplemental applications required for certain types o f commercial cannabis businesses; or
x. The Livescan/background investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
c. Additional Provisions For Revocation.
i. The procedures and grounds for revocation provided in RMC Section 15.04.803.130 (Revocation) apply.
ii. The CUP for a commercial cannabis business may be revoked if it is determined that one or more of the following
circumstances exist:
(1) After the business is operational, the business ceases to be in regular and continuous operation for ninety (90)
days.
d. Timing of Consideration After Revocation or Suspension of CUP. Whenever a CUP for a commercial cannabis business has been revoked or suspended, no permit application by any of the owners or managers of that commercial cannabis business shall be considered for a period of three years from the date that the notice of the revocation or suspension was mailed to the business owner.

I. Cannabis Business Permit (CBP) Application Process.

16 vi. A copy of the cannabis business operating con ditions, containing a statement dated and signed by each owner and manager, under penalty of perjury, that they have read, understand, and shall ensure compliance with all Operating Standards set forth in this Article.
vii. A statement dated and signed by each owner and manager, under the penalty of perjury, that the information regarding each business owner and manager submitted with the CUP
application is current and accurate, or proof that Zoning Administrator approval has been obtained for any change s in management or ownership.
viii. A valid seller's permit from the California Department of Tax and Fee Administration or successor agency.
ix. Proof that payment of all City of Richmond fees and taxes is current.
x. Documents required under 15.04.610.270(H)(1)(a)(ii) and (iii).

4. Denial of Cannabis Business Permit. If the Director determines in the initial screening that an application does not meet minimum eligibility requirements, the applicant shall be notified in writing that the application has been denied. Within 5 business days of the date of the decision, an applicant may file a request for immediate reconsideration. The Director shall schedule a meeting with the applicant within 10 business days of the r equest for reconsideration at which time the applicant may submit information demonstrating that the applicant meets the minimum eligibility requirements.

17 d. The applicant has not received a conditional use permit from the City for the corresponding cannabis business;
e. The applicant or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article; f. Applicant has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked; g. The applicant was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violation in a timely manner;
h. The applicant fails or is otherwise unable to obtain its State of California license;
i. The applicant is delinquent in payment of Federal, State or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies;
j. Operation of the proposed cannabis business site, as represented in the application, is a threat to the public health, safety, or welfare; k. The applicant has failed to comply with the requirements provided in Section 15.04.610.270(C);
l. The Livescan/background investigation results indicate that one or more of the criteria for denial set forth in Section

15.04.610.270(H)(1)(a)(iii) exists;
m. The applicant has failed to comply with the terms and conditions of their CUP; or
n. The applicant has refused to allow or otherwise fail ed to make the cannabis business available for City inspection.

5. Cannabis Business Permit Annual Renewal. Applications for the renewal of a permit shall be filed with the Zoning Administrator or designee at least sixty (60) calendar days before the expiration of the current permit. Any cannabis business allowing their permit to lapse, or which permit expired during a suspension shall be required to submit a new application, pay the corresponding application fees.
a. The renewal application shall contain all the information required for Cannabis Business Permit applications. The applicant shall pay a fee in an amount to be set by the City Council to cover the costs of processing the renewal permit application, together with any costs incurred by the City to administer the program created under this Article.
b. As part of the rene wal process, upon the City’s receipt of a renewal application, the City h as the right to conduct a City inspection . The purpose of this inspection is to ensure that the cannabis business 1973

18 remains in compliance with all local and state regulations, as well as the terms and conditions specified in the Conditional Use Permit (CUP).

The inspection findings will be taken into account during the permit renewal decision-making process and inspection findings may serve as a ground for rejection of the renewal application.
c. An application for renewal of a cannabis business permit shall be rejected if any of the following exists:
i. The application is incomplete, filed less than 60 days before its expiration or for a shorter time period which shall be at the discretion of the Director, or is not responsive to the requirements of this Article.
ii. The application contains a false or misleading statement or omission of material fact.
iii. The permittee refuses to allow or otherwise fails to make the cannabis business available for City inspection upon
submission of the CBP renewal application.
iv. The Director determines that the inspection findings are grounds for rejection.
v. The CBP is suspended or revoked at the time of the
application.
vi. The cannabis business has not been in regular and continuous operation in the four months prior to the renewal application or the approved extension of the deadline from the Director. vii. The commercial cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopted pursuant to this Article, or any permit conditions.
viii. The permittee was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
ix. The permittee or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article.
x. The permittee has had a State or local cannabis-related land use or business permit revoked; or any of its managers were associated with a cannabis business that had its cannabis - related permit(s) revoked.
xi. The permittee fails or is unable to renew its State of California license.
xii. If the state has determined, based on substantial evidence, that the permittee or applicant is in violation of the requirements 1974

19 of the state rules and regulations and the state has determined that the violation is grounds for termination or revocation of the cannabis business permit.
xiii. The permittee is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the
delinquency when notified by the appropriate agencies.
xiv. The permittee has failed to comply with the requirements provided in Section 15.04.610.270(C).
xv. The Livescan/backgro und investigation results indicate that one or more of the criteria for set forth in Section

15.04.610.270(H)(1)(a)(iii) exists.
xvi. The permittee has failed to comply with the terms and conditions of their CUP.
d. The Director is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the Director is authorized to impose additional conditions to a renewal permit, if it is determined to be necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety, or welfare. e. If a renewal application is denied, a person may file a new application pursuant to this Article not sooner than one year from the date of the denial.

6. Transfer of Cannabis Business Permit/ Business Modifications. A CBP does not run with the land or business. A CBP is not transferable or assignable to another person or owner, except as approved by the Zoning Administrator.

Notwithstanding the foregoing, the Zoning Administrator may administratively approve any changes in management or ownership or change in business name or structure and may require additional background check(s) or additional information for such approvals.

7. Revocation or Suspension of Cannabis Business Permit. Any CBP issued under this section may be immediately suspended or not renewed for any of the reasons listed below or above in Section 15.04.610.270(I)(5)(c)(i). Any CBP issued under this ordinance may be revoked by the City following notice and opportunity for a hearing before the Zoning Administrator or designee for any of the following reasons:
a. A cannabis business fails to comply with the requirements of this Article or any conditions of approval of CUP.
b. A cannabis business’s State license for commercial cannabis operations is revoked, terminated or not renewed.
c. The cannabis business’s State license for commercial cannabis operations is suspended. The City shall not reinstate the CBP until documentation is received showing that the State license has been reinstated or reissued. It shall be up to the City’s discretion whether the City reinstates any permit.
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20 d. The cannabis business fails to become operative within one year of obtaining its CBP.
e. Once operational, the business ceases to be in regular and continuous operation for ninety (90) days unless given prior approval by the City for extenuating and unusual circumstances.
f. State law permitting the use for which the license was issued is amended or repealed resulting in the prohibition of such use, or the City receives cre dible information that the federal government will commence enforcement measures against such businesses and/or local governments that permit them.
g. Circumstances under which the CBP was granted have significantly changed and the public health, safety and w elfare require the suspension, revocation, or modification.
h. The CBP was granted, in whole or part, on the basis of a misrepresentation or omission of a material statement in the permit application.
i. The cannabis business is not current on City taxes or Fees. j. The cannabis business is delinquent in payment of Federal, State, or local taxes and/or fees, and took no steps to cure the delinquency when notified by the appropriate agencies
k. The owner was found to operate another cannabis facility illegally within the City.
l. The owner or any managers refuse to allow or otherwise fail to make the cannabis business available for City inspection.
m. The cannabis business has failed to conform to the requirements of this Article, this Code, State law, any regulations adopte d pursuant to this Article, or any permit conditions.
n. The owner or any manager was notified that it was conducting commercial cannabis activity in violation of this Article or any other City of Richmond ordinances, codes and requirements, and failed to cure the violations in a timely manner.
o. The owner or any of its managers has any unpaid and overdue administrative penalties imposed for violations of this Article. p. The owner has had a State or local cannabis -related land use or business permit revoked; or an y of its managers were associated with a cannabis business that had its cannabis-related permit(s) revoked. q. The owner or any of its managers have failed to comply with the requirements provided in Section 15.04.610.270(C).
r. The Livescan/background investiga tion results indicate that one or more of the criteria for set forth in Section 15.04.610.270(H)(1)(a)(iii) exists.
1976

21 J. Competitive Selection Process. The City has established a competitive selection process to objectively award permits for which there is a limited number of permits available, such as for retail facilities.

1. Application Procedures and Requirements. By resolution the City Council shall adopt procedure guidelines and review criteria for the City's evaluation of cannabis business permit applications.
a. The procedure guidelines shall provide the process for soliciting applications including time frames, limitations, requirements, forms, and rules for completing applications.
b. The review criteria shall include detailed objective review criteria to be evaluated on a point system or equivalent quantitative evaluation scale tied to particular sets of criteria.
c. The Director shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the procedures guidelines and review criteria.
d. The City reserves the right to reject any or all applications for a cannabis business permit. Prior to such permit issuance, the City may modify, postpone, or cancel any request for applications, at any time without liability, obligation, or commi tment to any party, firm, or organization, to the extent permitted under California law. Persons submitting applications assume the risk that all or any part of the program, or any particular category of permit potentially authorized under this Article, ma y be cancelled at any time prior to permit issuance. The City further reserves the right to request and obtain additional information from any candidate submitting an application.

In addition to a failure to comply with other requirements in this Article, an application may be rejected for any of the following reasons:
i. The application was received after the designated time and date of the deadline.
ii. The application did not contain the required elements, exhibits, or was not organized in the required format.
iii. The application was considered not fully responsive to the request for a permit application.

2. Competitive Application Period. In the event that a permit for a commercial cannabis activity with a limited permit number becomes available, the Director shall open the competitive application period and make permit applications available.
a. Notice of the competitive selection period shall be published by means determined necessary by the Director to provide public notice of the opportunity to apply.
b. The competit ive application period shall be a minimum thirty (30) calendar days from the date the applications are released. Should the 1977

22 last day fall on a day when City Hall is closed, the application period shall be extended to the next open day.
c. Following the appl ication period, the Director or designee shall stop accepting applications and review all applications received.

3. Initial Application Review. The Director or designee shall determine whether each application demonstrates compliance with minimum requirements required in the permit application and be entered into a pool of applicants for the Final Application Review and Scoring. These requirements include but are not limited to:
a. Application was submitted during the application period. b. Application forms are fil led out completely and demonstrate compliance with minimum requirements required in the permit application.
c. Any application forms required in accordance with Article 15.04.803 are completed and required fees per master fee schedule are paid. d. A signed state ment that the proposed location of the commercial cannabis business on the application meets the zoning criteria established in this Article including, but not limited to, any and all sensitive use separation criteria required by this Article.

4. Final Applic ation Review and Scoring. The Director or designee, after reviewing the applications approved in the Initial Application Review shall convene a Selection Panel composed of the Fire, Police, Finance and Planning, or their designees, to make the final decision, based on the priority point system to objectively award the top applicant(s). A complete description of the priority point system and all priority point considerations shall be included with the application forms.

23 relevant State and local laws and County regulations regarding the preparation, distribution, labeling and sale of such items. d. Job Opportunities for Richmond Residents. All commercial cannabis business shall provide maximum feasible opportunities for Richmond residents to apply for jobs through outreach, advertising, and contacts with local job centers. The City encourages “local hires” whenever possible, consistent with General Plan policies and State and federal employment law. Commercial cannabis businesses shall coordinate hiring opportunities with the City’s Employment and Training Department.
e. Exterior Lighting. Exterior building and parking area lighting at the commercial cannabis businesses must be in compliance with all applicable provisions of Article 15.04.604.
f. Roof Hatches. The commercial cannabis business’ windows and roof hatches shall be secured so as to prevent unauthorized entry; equipped with latches that may be released quickly from the inside to allow exit in the event of emergency; and comply with all applicable Building and Fire Code provisions.
g. Ventilation. The commercial cannabis business must provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the property is not detected outside the property, anywhere on adjacent property or public rights -of-way, or within any other unit located within the same buil ding as the cannabis retail facility, cultivation site, cannabis product manufacturer or any other subsequently approved cannabis business.
h. Video Surveillance System . The commercial cannabis business must be monitored at all times by digital surveillance system for security purposes. The digital surveillance system must be of adequate quality, color rendition and resolution in accordance to State Law. The cameras shall record continuously 24 hours per day at a minimum of 15 frames per second and shall be maintained at the property for a minimum of 90 calendar days. Failure to maintain the cameras in good working condition at all times is a violation of this Section and cause for permit revocation or suspension.
i. Alarm System. A permittee shall maintain an alarm system as defined in Business and Professions Code section 7590.1(n) at the licensed premises an in accordance with California Code of Regulations Title 16, Division 42.
j. Consent to Inspection. Authorized City, County, and State representatives may enter the location of a cannabis business at any time, without notice, and inspect the location of any cannabis business as well as any recordings and records required to be maintained pursuant to this Article or under applicable provisions of state law. It is unlawful and cause for immediate suspension or revocation of the CBP for any property owner, landlord, lessee, commercial cannabis business, 1979

24 and/or its owner, agent, employee to refuse to allow, impede, obstruct or interfere with, or otherwise not allow an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this Article or under state or local law. It is also unlawful for a person to conceal , destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this Article or under state or local law.
k. Restrictions on Access and Sale. No commercial cannabis retail facility shall cause or permit the access, sale, or exchange of cannabis to any person who is not 21 years of age or a qualified patient who is 18 years of age or older. No commercial cannabis manufacturer, distributor, testing laboratory, or cultivator shall cause, permit or allow any sale, distribution or exchange of cannabis to any person at the manufacturing, testing, distribution, or cultivation location, nor shall the manufacturer, testing laboratory, distributor, or cultivator permi t any walk-ins or allow any person into the site, unless such person is authorized to engage in commercial cannabis business under State and local law.
l. Visibility of Cannabis. No cannabis or cannabis products on the site of a commercial cannabis business s hall be visible with the naked eye from any adjacent public or private property, nor shall commercial cannabis or commercial cannabis products be visible from the building exterior. No cultivation shall occur at the retail facility’s location unless the business owner has the appropriate local and State permits, and the area devoted to the cultivation is secured from public access by means of a locked gate and any other security measures necessary to prevent unauthorized entry, and has been inspected and ap proved by the Richmond Fire Prevention Services Division and Richmond Building Departments.
m. Age Restriction. Employees or persons retained by a permittee to work within or on a permitted premise or to handle cannabis goods shall be at least 21 years of ag e. No customer under the age of 21 shall be allowed at an adult-use cannabis business and no person under the age of 18 shall be allowed at a medicinal cannabis business. n. No Alcoholic Beverages or Tobacco Products . No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco products at a commercial cannabis business or its parking area, except that employees of the commercial cannabis business and/or commercial cannabis permittee may consume tobacco products in outdoor areas designated in accordance with applicable provisions of the Richmond Municipal Code and State law.
o. No Cannabis Consumption. No commercial cannabis business and/or commercial cannabis permittee shall cause or permit the smoking, 1980

25 ingesting, or otherwise consuming cannabis on the premises of a commercial cannabis business or in its parking area.
p. Secure Storage. All cannabis and cannabis products shall be stored on - site in structures that are completely enclosed, in a locked vault or safe that is not bolted to the floor, or in any other secured storage structure.

No off-site storage is allowed.
q. No Retail Sales in Cultivation, Distribution, Testing or Manufacturing Facilities.

26 cannabis shipments distributed t o the facility, as
required by the State’s track and trace system.
(2) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by each manage r, under
penalty of perjury, that they read, understand and shall not engage in any prohibited activity.
(3) Evidence of: (a) verification that all manufactured products are manufactured, packaged, and labeled in
compliance with all applicable State and local laws; and (b) laboratory testing as required by State and local laws. iii. A manufacturer shall maintain the following records on the property:
(1) Evidence of: (a) verification that all cannabis products manufactured and packaged at the location are
manufactured, packaged, and labeled in compliance
with all applicable state and local laws; and (b)
laboratory testing as required by State and local laws. (2) A list of any commercial cannabis distributor that the manufacturer has provided or intends to provide its
product to. The list shall include the name of the
distributor, its address, the date the cannabis product was sold or transferred to the distributor, and the type and amount of the product that was distributed as
required by the State’s track and trace program.
iv. A cultivator shall maintain the following records on the property:
(1) The current address of all sites at which cannabis is cultivated.
(2) An inventory record documenting the dates and
amounts of cannabis cultivated at the proper ty, the
daily amounts of cannabis stored on the property, and
an inventory record of all cannabis transferred to a
commercial cannabis distributor . The inventory
records shall include total plants grown and total
weight of cannabis cultivated by the cultivator, the total weight of all cannabis sold or transferred to a
distributor, and receipts and documents detailing the
sale or transfer of cannabis as required by the State’s track and trace program.
(3) Copies of the prohibited activity checklist, available from the Richmond Police Department, containing a
statement dated and signed by the permittee(s) for the
cultivation site, under penalty of perjury, that they read, 1982

27 understand and shall not engage in a ny prohibited
activity.
(4) Evidence to verify that all cannabis is cultivated in compliance with all applicable state and local laws.
v. A distributor shall maintain the following records on the property:
(1) A list of any commercial cannabis businesses that the distributor has provided or intends to provide its
product to. The list shall include the name of the
cannabis business , its address, the date the cannabis
product was sold or transferred to the business, and
the type and amount of the product that was
distributed as required by the State’s track and trace
program.
vi. A commercial cannabis business that produces edible cannabis products shall maintain the following records on the property:
(1) Proof of inspection s and approvals by Contra Costa Environmental Health Department and the County
Health Officer for food manufacturers, packagers
and/or distributors , when such inspections or
approvals become required.
(2) Producers of edible cannabis products shall maintain a written or computerized log documenting:
(a) The source of the cannabis used in each batch
of product;
(b) The contaminant testing date; and
(c) The testing facility for the cannabis.
s. Use of Pesticides. No pesticides or insecticides that are prohibited by applicable law for fertilization or production of edible produce may be used on any cannabis cultivated, produced, or distributed by a commercial cannabis business. A commercial cannabis business shall comply with all applicable laws regarding use of pesticides. t. Disposal of Cannabis and Cannabis Byproducts. All cannabis and any product containing a usable form of cannabis must be made unusable and unrecognizable prior to removal from the business in compliance with all applicable State laws.
u. On-site Community Relations Contact. Commercial cannabis businesses must provide the Police Department and all residents, business es and property owners within 100 feet with the current name, phone number, secondary phone number and e -mail address of an on -site community relations contact person to whom notice of any operating problems associated with the commercial cannabis business may be reported.
1983

28 v. On-Site Manager. All commercial cannabis businesses must have an on- site manager, at each commercial cannabis business, who is responsible for overall operation at all times that employees are conducting operations, and provide the Police Department with contact information for such person, including a telephone number and e-mail address.
w. Discouraging Nuisance. Commercial cannabis businesses must take all reasonable steps to disc ourage and correct objectionable conditions that constitute a public or private nuisance in parking areas, sidewalks, alleys and areas surrounding the commercial cannabis business and adjacent properties. Such conditions include but are not limited to smoking, creating a noise disturbance, loitering, littering, and graffiti. x. State Licenses. Any commercial cannabis business that fails to obtain or qualify for the required State license, or is refused such license, shall immediately cease all operations in the City.
y. Testing and Labeling . All cannabis, cannabis products, and edible cannabis products, must be tested and labeled as follows and as required by State law.
i. Baked goods, such as cookies and brownies, shall be exempt from testing for contaminants. These products are still subject to testing for potency, as required for the label information, and must use cannabis or cannabis products that ha ve been tested for contaminants. All baked products must contain a list and warning of any known food allergens, like nuts, etc. and comply with CCR Title 17, Division 1, Chapter 13, §40254 and any other food safety requirement of local or State regulations.

29 b. Hours of Operation. A licensed cannabis retail facility or non-storefront retail facility may sell and deliver cannabis between the hours of 8:00 a.m. and 9:00 p.m.
c. Safety of Products. The retail facility must ensure that the cannabis, cannabis products, and edible cannabis it offers for sale are manufactured, packaged, tested, and labeled in compliance with all applicable state and local laws. No retail facility may obtain or distribute cannabis products from any commercial cannabis business unless such business has a valid permit or license issued by the Bureau and a California city or county.
d. Onsite Consumption. On-site consumption of cannabi s or cannabis products is specifically prohibited on the premises at all times.

Outdoor cultivation of cannabis is not permitted in any zoning district.

4. Supplemental Standards for Retail Facilities Engaged in Deliveries. a. Commercial cannabis deliveries may be made only from a commercial cannabis retail facility permitted by the City or from a State licensed retail facility outside of the City limits in compliance with this section, and in compliance with all State regulations.
b. All deliveries of cannabis goods shall be performed by a delivery employee of a retailer.
c. While carrying cannabis goods for delivery, a retai ler’s delivery employee shall ensure the cannabis goods are not visible to the public. d. Persons engaged in delivery of cannabis or cannabis products on behalf of a licensed retailer , shall adhere to the delivery vehicle requirements and restrictions on the amount of cannabis and cannabis goods stored in the vehicle during delivery as set forth under State law. e. No cannabis delivery vehicle shall display signs, decals or any other form of advertisement.

30 iii. The unique identifiers and batch number associated with the batch;
iv. A description of the cannabis goods with enough detail to easily identify the batch; and
v. The weight of or quantity of units in the batch.
c. Employee breakrooms, eating areas, changing facilities, and bathrooms shall be completely separated from the storage areas.
d. A distributor shall adhere to all requirements for transportation of cannabis goods as set forth in State law.

6. Supplemental Standards for Testing Laboratory Businesses. a. A permitted cannabis testing facility shall comply with all State regulations contained in California Code of Regulations Title 16, Division 42 and as it may be amended from time to time. b. Any cannabis testing facility must maintain all c ertifications required by the State.
c. A permitted cannabis testing facility business, its owners and its employees may not hold an interest in any other cannabis business except another testing business.

7. Supplemental Standards for Commercial Cannabis Businesses Producing Edible Cannabis Products.
a. The manufacturer and seller of edible cannabis products must ensure that all cannabis products and edible cannabis products it manufactures and/or sells complies with the any applicable provisions of all State and local laws, including regulations of the Contra Costa County Environmental Health Officer regarding the testing, preparation, distribution, labeling and sale of food.
b. Preparation of Edibles.
i. Individuals involved in the production or distribution of edible cannabis products must thoroughly wash their hands before commencing production and before handling the finished
product.
ii. Gloves must be worn when packaging edible products
containing cannabis.
iii. In order to reduce the likelihood of foodborne disease transmission, individuals who are suffering from symptoms associated with acute gastrointestinal illness or are known to be infected with a communicable disease that is transmissible through foodstuffs are prohibited from preparing edible products containing cannabis until they are free of that illness or disease, or are incapable of transmitting the illness or disease through foodstuffs. Individuals who have sores or 1986

31 cuts on their hands must use gloves when preparing and handling edible products containing cannabis.
iv. Edibles that are sold at a retail facility may only be prepared by a locally-permitted, and State-licensed manufacturing facility. v. Any and all persons who produce edible cannabis products must be a State-certified food handler. The valid certificate number of such persons must be on record at each
manufacturing facility where the edible product is distributed, and a copy of the certificate kept either on-site, or made available during inspections if kept off-site.
vi. Hand-washing facilities shall be adequate and convenient and be furnished with running water at a suitable temperature. Hand- washing facilities shall be located in the facility in edible cannabis product preparation areas and where good sanitary practices require employees to wash and/or sanitize their hands and provide effective hand -cleaning and sanitizing preparations and sanitary towel service or suitable drying devices.
c. Packaging of Edibles.
i. Edible cannabis products shall comply with State packaging requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.
d. Labeling.
i. Edible cannabis products shall comply with State labeling requirements contained in California Code of Regulations Title 17, Division 1, as it may be amended.

8. Prohibited Activity. On-site consumption of cannabis or cannabis products is specifically prohibited on all commercial cannabis premises at all times.

L. Fees and Taxes . All commercial cannabis businesses shall pay applicable fees and taxes, which may include one or more of the following:

1. Application Fees. The applicant shall pay all fees required by the master fee schedule to cover the cost s of processing commercial cannabis business permits, including but not limited to use, design review, building, fire, and CBP permits.

2. Business License Fee. The business owner shall at all times maintain a current and valid business license and pay all business taxes required by the City of Richmond Municipal Code , including but not limited to those due under Richmond Municipal Code Section 7.04.139.
1987

32 3. Commercial Cannabis Regulatory Fee. The business owner shall pay an annual regulatory fee to cover the costs of anticipated enforcement and inspections relating to the cannabis operation. The amount of the fee shall be set by Resolution of the City Council and be supported by the estimated additional costs of enforcement and monitoring associated with the cannabis operation.

The regulatory fee shall be due upon issuance of the CBP. The Regulatory Fee may be amended from time to time based upon actual costs.

4. All required taxes including sales and use taxes, business, payroll etc.

5. Additional cannabis -specific taxes approved by the voters of the City of Richmond.

M. Liability and Indemnification.

2. To the maximum extent permitted by law, the permittee(s) under this Section shall defend (with counsel acceptable to the City), indemnify and hold harmless the City, the City Council, and its respective officials, officers, employees, representatives, agents and volunteers (hereafter collectively called "City") from any liability, damages, actions, claims, demands, litigation, loss (direct or indirect), causes of action, proceedings, or judgment (including legal costs, attorneys' fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) (collectively called "action") against the City to attack, set aside, void or annu al, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, if any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse th e City for its reasonable legal costs and attorneys' fees.

N. Violations and Enforcement.

1. Any violation of this Section shall be subject to all Enforcement Provisions set forth in Article 15.04.815;

2. Any person violating any provision of this Section, including engaging in a commercial cannabis business without a CUP and CBP or knowingly or intentionally misrepresenting any mate rial fact in procuring a CUP and CBP, shall be deemed guilty of a misdemeanor punishable by a fine of not more than 1988

33 $1,000.00 for each day or portion thereof of the violation or by imprisonment for not more than 12 months, or by both such fine and imprisonment;

3. Any violation of this Section shall be subject to injunctive relief, revocation of the certificate of occupancy for the property, disgorgement and payment to the City of any and all monies unlawfully obtained, costs of abatement, costs of investigation, attorney fees, and any o ther relief or remedy available at law or equity; and

4. Any violation of any condition of a CUP or CBP for a commercial cannabis business, including failure to remit any fees required to maintain the permits and/or failure to remit the quarterly gross receipt taxes, shall be grounds for permit suspension or revocation.

1989

Page 1 of 2 ends

November 7, 2023

City Council

DATE: November 7, 2023
TO: Mayor Martinez and Members of the City Council
FROM:

Mayor Martinez
Councilmember Jimenez

Subject:

Status of Pacific Gas & Electric Projects in Richmond
FINANCIAL IMPACT: N/A

PREVIOUS COUNCIL
ACTION:

Pacific Gas & Electric representatives have presented to the Richmond City Council in the past to provide
information and answer questions on projects or issues.

STATEMENT OF THE
ISSUE:

Overview of key PG&E efforts in the City of Richmond
RECOMMENDED ACTION:

RECEIVE a presentation from Pacific Gas & Electric on
projects in Richmond – Mayor Eduardo Martinez (510-
620-6503) and Councilmember Jimenez (510-620-
6565).

DISCUSSION:

The presentation will include an overview of key PG&E projects in the community, Wildfire Risk Mitigation Efforts, Vegetation Management, Enhanced Powerline Safety Settings (EPSS), Public Safety Power Shutoffs (PSPS), Customer Resources for PSPS outages and EPSS.

DOCUMENTS ATTACHED:

AGENDA
REPORT
1990

Page 2 of 2 ends

November 7, 2023
Attachment 1 – PowerPoint
1991
Public
Pacific Gas and Electric Company
City of Richmond Local Government Forum
November 7, 2023
1992
Public
Safety
Preparedness Tips
Always be prepared in case of a
natural disaster or an emergency
Build a disaster supply kit for you,
your family or your business
Be sure to include food, water,
medication, flashlights, first aid kits, a
list of emergency contacts and more
Visit safetyactioncenter.pge.com to
help prepare for an emergency
1993
Public
3Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Topics For Discussion
1 PG&E Projects In Your Community
2 Identifying and Reducing Wildfire Risk
3 Vegetation Management
4 Enhanced Powerline Safety Settings
5 Public Safety Power Shutoffs
6 Customer Resources
7 Open Discussion
1994
Public
PG&E Projects
In Your Community
1995
Public
Identifying and Reducing
Wildfire Risk
1996
Public
6Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Wildfire Risk in the City of Richmond
PG&E’s high fire-risk area
map helps us target wildfire
mitigation efforts in the
areas and communities at
highest risk.

High fire-risk area
City of Richmond
1997
Public
7Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Layers of Wildfire Protection
Using the latest technologies
and equipment
Keeping trees and branches
away from powerlines
Installing stronger powerlines
and poles
Ensuring safety with enhanced
protection and temporary outages
Undergrounding 10,000 miles of
powerlines in highest fire-risk areas
Together,
These layers
reduce wildfire
risk from
equipment
1998
Public
8Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Situational Awareness in the City of Richmond
3 High-definition cameras
installed through 2022
Data as of 09/15/2023. Locations are approximate and may overlap.

To better predict and respond to
wildfire risk and severe weather
around the clock, we built the
largest utility-owned weather
monitoring network in the country.

Customers can view our interactive
weather map at pge.com/weather
High fire-risk area
Weather stations
City of Richmond
1999
Public
Vegetation Management
2000
Public
10Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Keeping Trees Away from Powerlines
When trees are too close
to powerlines, they can cause
a power outage or a wildfire.

That’s why each year we:

Inspect ~100,000 miles of powerlines
Trim or cut down more than 1 million
trees that pose a safety concern
Address dead, dying or hazard trees
2001
Public
11Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Tree Work in Your Community
Non-High
Fire-Threat Districts
High
Fire-Threat Districts
Work
Year-round vegetation
work to meet state
standards
Year-round work plus
additional inspections,
tree-trimming/removals
and clearance
Safety
Clearance
Minimum of 1.5-feet
around the line
Minimum of 4-feet
around the line
Powerline
Miles* 349 16
High Fire-Threat District (HFTD) Map
The California Public Utilities Commission’s (CPUC) High Fire-Threat District (HFTD) map designates areas most at risk for wildfire.

Tier 3 – Extreme
Tier 2 – Elevated
The City of Richmond
*Data is approximate
2002
Public
12Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Sending advance notifications to impacted
property owners before work begins
Inspecting for potential safety concerns
Trimming or cutting down trees as needed
for safety
Chipping small debris and placing larger
wood in a safe location on site
Conducting safety and quality checks
through follow-up inspections
What to Expect During this Work
1 2
3 4
5 2003
Public
Enhanced Powerline Safety Settings
2004
Public
14Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

How It Works
Turning off power within one-tenth of a second if
a tree branch or other object strikes the line.

Why We Do It
Stopping wildfires
before they have a
chance to start.

SAFETY SETTINGS IN ACTION IN NAPA COUNTY
Enhanced Powerline Safety Settings: A Technology To Prevent Wildfires Data is approximate; *Based on 2022 performance for CPUC-reportable ignitions in HFTD compared to 2018-2020 weather-normalized performance; **Relative to the 2018-2020 average
68%
99%
reduction in
fire size**
68%
reduction in
ignitions*
2005
Public
15Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Safety Settings, Step-By-Step
2006
Public
16Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

What Customers Can Expect
Customers can find information on the status of an outage and the restoration process at pge.com/outages 2007
Public
Public Safety Power Shutoffs
2008
Public
18Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

What is a Public Safety Power Shutoff?
High winds can cause tree
branches and debris to contact
energized electric lines,
damage our equipment and
cause a wildfire.

To prevent wildfires, we may
need to turn off power as a
last resort.
2009
Public
19Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

What Conditions Could Lead to a PSPS?
Low humidity
levels of 30%
and below
Forecasted high
winds above
19 mph and gusts
above 30-40 mph
Condition of dry
material on the
ground and low
moisture content
of vegetation
A Red Flag
Warning issued
by the National
Weather Service
On-the-ground,
real-time
observations
2010
Public
20Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Warning
Watch
How Are Customers Notified for a PSPS?
Automated calls, texts and emails
(available in 16 languages).

We will also use pge.com, social media and
will inform local news and radio.

How We’ll Notify
@pacificgasandelectric
@PGE4Me
@pacificgasandelectric
Enroll at: pge.com/addressalerts
How To Receive Notifications
For Any Address
Annual registration is required.

Anyone can sign up for address
alerts in 16 languages to receive
PSPS notifications for any location,
such as their work or child’s school.

When We’ll Notify
48-24 hours before power is turned off
4-1 hours before power is turned off
When power is turned off
After weather has passed
If estimated restoration time changes
Daily until power has been restored
2011
Public
21Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Differences Between Safety Settings and PSPS
Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Updates and information for both planned and unplanned outages: pge.com/outages Enhanced Powerline
Safety Settings (EPSS)
Public Safety Power
Shutoffs (PSPS)
WHY
Automatically turning off power within one-
tenth of a second if a problem is detected on
the line
Proactively turning off power to prevent tree
branches and debris from contacting
energized lines
WHEN
Elevated wildfire risk is present, most likely
from May to November, but can occur
year-round
During times of high winds, low humidity and
dry vegetation

NOTIFICATIONS
Regular updates after the outage occurs;
advance notice cannot be provided because
these are reactive and automatic settings
In advance through automated calls, texts,
and emails with updates provided until power
is restored
vs.
2012
Public
Customer Resources
2013
Public
23Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Portable Battery Program
Supporting eligible customers with fully subsidized portable battery solutions pge.com/portablebattery Generator and Battery Rebate Program
Rebates for eligible customers to purchase a qualified generator or battery pge.com/backuppower Self-Generation Incentive Program
Rebates to help customers save on energy storage systems for their business pge.com/sgip Disability Disaster Access and Resources
Emergency preparedness planning, portable batteries, and support for customers requiring additional accommodations
pge.com/ddar
Fixed Power Solutions
Permanent, long-term backup power solutions for the most impacted customers pge.com/residentialstorageinitiative Customer Resources and Support for PSPS Outages and EPSS

EXPANDED ACCESS

EXPANDED ACCESS
2014
Public
24Some of the measures included in this presentation are contemplated as additional precautionary measures intended to further reduce the risk of wildfires.

Customer Resources
Dedicated wildfire safety contacts: Hotline: 1-866-743-6589 | Email: [email protected] Information on wildfire
prevention efforts
Wildfire Safety
pge.com/wildfiresafety
Free and confidential
support and resources via
calls or texts to 211
California
Network of 211
211ca.org
Submit photos of
non-emergency potential
safety concerns
Report It App
pge.com/reportit
Create an emergency
safety plan to keep you
and your family safe
Safety Action Center
safetyactioncenter.pge.com
2015
Public
Open Discussion
2016
Public
Thank You
2017

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Richmond City CouncilNovember 7, 2023

Richmond City Council
November 7, 2023