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1 Community & Economic Development
Department
City Council
October 24, 2023
Public Hearing - Storefront Retail
Commercial Cannabis Business Permit Fees
RiversideCA.gov
2 1. Public Hearing to adopt an Ordinance amending Chapter
3.30 – adding a Cannabis Sales Permit Fee
2. Adopt a Resolution amending the City Fees & Charges
Schedule
3. Direct staff to return to City Council to consider proposed amendments to established fees:
o Annual Renewal Fee
o Appeal Fee
o Change of Business Location
o Transfer Permit
INTRODUCTION
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Date: 10-24-23
Item No.: 16
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3 1. March 14, 2023 – Ordinance adopted:
o Established the application process
o Established an application fee
2. October 17, 2023 – Resolution adopted:
o Established Guidelines and Criteria
BACKGROUND
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4 DISCUSSION
1. Establish fees to recover staff time and costs
2. Engaged Consultant (MGT) to prepare fee study
3. Approach to establish fees
o Review and analyze other city’s fees
o Identify staff time and other costs
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5 FEE ANALYSIS AND SURVEY
• Better understanding of costs
• Cannabis permit process is relatively new
• Cities have taken various approaches
• Fees often amended overtime
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6 CITY COMPARISONS
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7 FEE OPTIONS
• Flat Fee*
o Time and materials approach
o Reduced administrative impacts
• Deposit Method:
o Time/fees charged against deposit
o Requires - tracking time, processing refunds
• Agreements, Tax or CUP:
o Additional fee tool to address community issues
o Additional time, process and varying results
Recommended Option*
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8 FLAT FEE
Use Guidelines to identify tasks
Calculate direct costs using hourly rates
Determine other operational costs
Determine indirect or “overhead” costs
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9 PROPOSED FEES
Phase 1: Application Review: $13,842
• Fee submitted with each application
• Application review, evaluation (ranking)
• Application Form, Business Proposal, Operations,
Safety/Security Plan
Phase 2: Site Selection: $17,864
• 14 highest ranked applicants
• Preferred location
• Zoning Verification
• Site Improvements/Certificate of Occupancy
• Local and State Licenses
• Operational Agreements
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10 NEXT STEPS
Additional Fees
• Annual Renewal Fee
• Appeal Fee
• Change of Business Location
• Transfer Permit
Application Review Fee and Site Selection Fee Evaluation • New program
• Evaluate and reanalyze after one year
• Consider increases or decreases based on time studies 9 10
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11 STRATEGIC PLAN ALIGNMENT
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability &
Resiliency
#5 High Performing Government
#3 Economic Opportunity
Envision Riverside 2025 Strategic Plan Priorities
Cross-Cutting Threads
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12 RECOMMENDATIONS
Staff recommends that the City Council:
1. Hold a public hearing to adopt an ordinance amending Chapter 3.30 Section 3.30.030IV of the Riverside Municipal Code to add an additional category to the Schedule of Regulations, Products and Services Titled IV.
Community & Economic Development - Planning;
2. Adopt a Resolution amending the City’s Fees and Charges Schedule providing for two Storefront Retail C ommercial Cannabis Business Permit fees: (1) an Initial Application Fee and (2) a Site Review Fee; and
3. Provide direction to staff to return at a later date for Council to consider the amendments to the Ordinance to establish fees related to Annual Renewal, Appeal, Change of Business Location, and Transfer of Permit. 11 12