Agenda packet — Santee City Council, June 22, 2022 (part 1 of 2)

MEETING INFORMATION
Wednesday, June 22, 2022
6:30 p.m.

Council Chambers | Building 2
10601 Magnolia Ave • Santee, CA 92071
TO WATCH LIVE:

AT&T U-verse channel 99 (SD Market) | Cox channel 117 (SD County) www.cityofsanteeca.gov

IN-PERSON ATTENDANCE
Please be advised that current public health orders recommend that attendees wear face coverings while inside the Council Chambers.

LIVE PUBLIC COMMENT
Members of the public who wish to comment on matters on the City Council agenda or during Non-Agenda Public Comment may appear in person and submit a speaker slip, before the item is called. Your name will be called when it is time to speak.

PLEASE NOTE: Public Comment will be limited to 3 minutes and speaker slips will only be accepted until the item is called. The timer will begin when the participant begins speaking.

June 22, 2022 | 6:30 p.m.
2 ROLL CALL: Mayor John W. Minto
Vice Mayor Ronn Hall
Council Members Laura Koval, Rob McNelis and Dustin Trotter LEGISLATIVE INVOCATION: Village Church SD – Pastor Scotty James

PLEDGE OF ALLEGIANCE
PROCLAMATION: Proclaiming July 2022 as Parks Make Life Better Month in the City of Santee
CONSENT CALENDAR:

PLEASE NOTE: Consent Calendar items are considered routine and will be approved by one motion, with no separate discussion prior to voting. The public, staff or Council Members may request specific items be removed from the Consent Calendar for separate discussion or action. Speaker slips for this category must be presented to the City Clerk at the start of the meeting. Speakers are limited to 3 minutes.
(1) Approval of Reading by Title Only and Waiver of Reading in Full of Ordinances and Resolutions on the Agenda. (City Clerk – Ortiz)
(2) Approval of Payment of Demands as Presented. (Finance – McDermott) (3) Approval of the Expenditure of $69,244.83 for May 2022 Legal Services and Reimbursable Costs. (Finance – McDermott)
(4) Adoption of a Resolution Accepting the Santee Lakes Storm Drain Replacement (CIP 2020-24) Project as Complete. (Development Services – Engineering)
(5) Adoption of a Resolution Authorizing the Purchase of New Structural Firefighting Clothing (Turnouts) from Municipal Emergency Services, per Sourcewell Contract #032620-MES in an Amount Not to Exceed $36,001.90. (Fire – Garlow)
NON-AGENDA PUBLIC COMMENT (15 minutes):

Persons wishing to address the City Council regarding items not on the posted agenda may do so at this time. In accordance with State law, Council may not take action on an item not scheduled on the Agenda. If appropriate, the item will be referred to the City Manager or placed on a future agenda. This first Non-Agenda Public Comment period is limited to a total of 15 minutes. Additional Non-Agenda Public Comment is received prior to Council Reports.

June 22, 2022 | 6:30 p.m.
3 CONTINUED BUSINESS:
(6) Cannabis Workshop No. 5. (City Manager – Best)
Recommendation:

1. Receive the revised Regulatory Ordinance; and

2. Conduct the public workshop and provide direction to staff regarding the draft Tax Measure.
(7) Continued Review of the Proposed Operating Budget for Fiscal Year 2022-23, and Resolution Adopting the Operating Budget for Fiscal Year 2022-23 and Taking Related Actions. (Finance – McDermott)
Recommendation:

Adopt the Resolution adopting the Operating Budget for Fiscal Year 2022-23 and taking related actions, including any changes directed by the City Council.

NEW BUSINESS:
(8) Workshop on the Use of Remaining Community Development Block Grant Coronavirus (CDBG-CV) Funding. (Development Services – Engineering) Recommendation:

Consider funding options and amounts and provide direction to staff on recommended amounts in order to prepare the third Substantial Amendment to the Program Year 2019 Annual Action Plan.
(9) Authorize Improvements to Pickleball Courts at Big Rock Park as Donations are Obtained. (Community Services – Chavez)
Recommendation:

Authorize staff to proceed with pickleball court improvements at Big Rock Park as donations are obtained.

June 22, 2022 | 6:30 p.m.
4 (10) Resolution Authorizing the Award of a Contract for Street Sweeping Services to Sweeping Corporation of America (SCA). (Community Services – Chavez) Recommendation:

Adopt the Resolution:

1. Authorizing direct award of the contract for Street Sweeping Services to Sweeping Corp. of America (SCA) for an amount not to exceed $339,525.12 for Fiscal Year 2022-23; and

2. Authorizing the City Manager to approve up to three (3) additional twelve (12)- month options to renew and one (1) ninety (90)-day extension along with the corresponding purchase orders; and

3. Authorizing the City Manager to approve annual change orders up to ten percent (10%) of the then-current contract amount; and

4. Authorizing the Director of Community Services to execute a Notice of Completion and the City Clerk to file said Notice of Completion upon satisfactory completion of work for each contract term.
(11) Resolution Authorizing the City Manager to Execute a Professional Services Agreement with D-Max Engineering, Inc. for Storm Water Program As-Needed Staffing Services. (Development Services – Engineering) Recommendation:

Adopt the Resolution authorizing the City Manager to execute a Professional Services Agreement for as-needed Storm Water Program staffing services with DMax in an amount not to exceed $234,000.00 for FY 2022-23. (12) Resolution Authorizing the Expenditure of San Diego River Conservancy Grant Funds in Accordance with All Program Requirements and Finding in Support of and Authorizing an Open Market Purchase of One New 2023 Firematic Dodge 5500 STL Rally 500 Type 6 Wildland Brush Engine from South Coast Fire Equipment, Inc. (Fire – Garlow)
Recommendation:

Adopt Resolution:

1. Finding that open market purchasing is in the City’s best interest and authorizing such purchase of one (1) new 2023 Firematic Dodge 5500 STL Rally 500 Type 6 Wildland Brush Engine from South Coast Fire Equipment, Inc., in the amount of $295,676.41; and

2. Authorizing the City Manager to approve additional expenditures for unforeseen changes in an amount not to exceed $14,783.82 (5%); and

3. Finding that open market purchasing for select add-ons up to the amount of funds budgeted for this purpose is in the City’s best interest and authorize such purchasing; and

4. Authorizing the City Manager to execute all necessary documents.

June 22, 2022 | 6:30 p.m.
5 (13) Community Services Department Cancellation Refund Policy and Guidelines. (Community Services – Chavez)
Recommendation:

Approve the Community Services Department’s Cancellation Refund Policy and Guidelines as presented.

NON-AGENDA PUBLIC COMMENT (Continued):

All public comment not presented within the first Non-Agenda Public Comment period above will be heard at this time.

CITY COUNCIL REPORTS:

CITY MANAGER REPORTS:

CITY ATTORNEY REPORTS:

CLOSED SESSION:
(14) Conference with Labor Negotiators
(Government Code Section 54957.6)
City Designated Representative: City Manager
Employee Organization: Santee Firefighters Association
(15) Conference with Legal Counsel – Anticipated Litigation (Gov. Code section 54956.9(d)(2))
Significant Exposure to Litigation: One case related to a worker’s compensation claim
ADJOURNMENT:

June 22, 2022 | 6:30 p.m.
6 Jun 02 SPARC Council Chamber
Jun 13 Community Oriented Policing Committee Council Chamber Jun 08 Council Meeting Council Chamber
Jun 22 Council Meeting Council Chamber
Jun 30 District 2 – Community Meet and Greet City Hall Building 8 Jul 07 SPARC CANCELLED Council Chamber
Jul 11 Community Oriented Policing Committee CANCELLED Council Chamber Jul 13 Council Meeting CANCELLED Council Chamber
Jul 27 Council Meeting Council Chamber
The Santee City Council welcomes you and encourages your continued interest and involvement in the City’s decision-making process.

For your convenience, a complete Agenda Packet is
available for public review at City Hall and on the
City’s website at www.CityofSanteeCA.gov.

The City of Santee complies with the Americans with Disabilities Act. Upon request, this agenda will be made available in appropriate alternative formats to persons with disabilities, as required by Section 12132 of the American with Disabilities Act of 1990 (42 USC § 12132). Any person with a disability who requires a modification or accommodation in order to participate in a meeting should direct such request to the City Clerk’s Office at (619) 258-4100, ext. 112 at least 48 hours before the meeting, if possible.

BOARDS, COMMISSIONS & COMMITTEES

JUNE & JULY MEETINGS

PyBatch
06/01/2022 9:07:43AM
Org: santee Home Dept: 1601

EARNINGS SECTION
Type Hours/units Rate
Home Dept: 1601 - Human Resources
reth 0.00
Totals 0.00
Payroll Processing Report

CITY OF SANTEE
6/1/2022 to 6/30/2022-1 Cycle m

DEDUCTIONS SECTION
Amount Src Plan Base Wages Deduction Benefit/Cont LvPlan 5,824.00
5,824.00
Employees: 32
catax 5,824.00
fedtax 5,824.00

46.00 211.00
257.00 0.00
Page: 1
Status: Active Employees

LEAVE SECTION
Accrued
Gross:

Net:

Taken Banked
<< No Errors I No Warnings >>
Page: 1
Lost
vchlist Voucher List Page: 2
06/01/2022 12:41:10PM CITY OF SANTEE
Bank code: ubqen
Voucher Date Vendor Invoice PO# Description/Account Amount 130620 6/1/2022 12060 ACCOUNTING PRINCIPALS 12394394 53612 TEMPORARY ACCOUNTING SPECl1 1,665.20 Total: 1,665.20
130621 6/1/2022 10412 AT&T 301053963-JUNE22 MAST PARK 80.96 Total: 80.96
130622 6/1/2022 14573 AT&T EN20095A REFUNDABLE DEPOSIT EN20095A 78.95 Total: 78.95
130623 6/1/2022 14306 AZTEC LANDSCAPING, INC J1126 53493 CUSTODIAL SERVICES - PARKS 1,312.89 Total: 1,312.89
130624 6/1/2022 12951 BERRY, BONNIE F. June 1, 2022 RETIREE HEALTH PAYMENT 91.00 Total: 91.00
130625 6/1/2022 10033 CITY ELECTRIC SUPPLY COMPANY STE/079106 53623 ELECTRICAL SUPPLIES 226.28 Total: 226.28
130626 6/1/2022 10268 COOPER, JACKIE June 1, 2022 RETIREE HEALTH PAYMENT 91.00 Total: 91.00
130627 6/1/2022 12153 CORODATA RECORDS rs4764830 53565 RECORD STORAGE, RETRIEVEL & 436.26 rs4790916 53565 RECORD STORAGE, RETRIEVEL & 607.02
Total: 1,043.28
130628 6/1/2022 11862 CORODATA SHREDDING INC DN1347794 53566 SECURE DESCTRUCTION SERVICE 45.82 dn1351772 53566 SECURE DESCTRUCTION SERVICE 45.82
dn1359906 53566 SECURE DESCTRUCTION SERVICE 45.82
Total: 137.46
130629 6/1/2022 10486 COUNTY OF SAN DIEGO 05242022 COUNTY RECORDER FEE - NOi 50.00 Total: 50.00
130630 6/1/2022 10608 CRISIS HOUSE 683 53674 CDBG SUBRECIPIENT 522.75 Total: 522.75
130631 6/1/2022 14555 DEBTBOOK DB1021014 53817 ANNUAL DEBTBOOK SUBSCRIPTIC 6,500.00 Page: 2
vchlist
06/01/2022 12:41:10PM
Bank code: ubqen
Voucher Date Vendor
130631 6/1/2022 14555 14555 DEBTBOOK
130632 6/1/2022 11881 GOODEN, CHRIS
130633 6/1/2022 14423 GQ BUILDERS INC
130634 6/1/2022 10490 HARRIS & ASSOCIATES INC
130635 6/1/2022 12591 IMS INFRASTRUCTURE
130636 6/1/2022 12011 JAM SERVICES INC
130637 6/1/2022 14571 KAPPA SURVEYING & ENGINEERING
130638 6/1/2022 14570 M. GRANT CORPORATION
130639 6/1/2022 11947 MCCAIN INC
130640 6/1/2022 14499 NANCY J MARSHALL
130641 6/1/2022 12904 PAT DAVIS DESIGN GROUP, INC
130642 6/1/2022 12237 RAYON.KYLE
130643 6/1/2022 10606 S.D. COUNTY SHERIFF'S DEPT.

Voucher List

CITY OF SANTEE
Invoice PO#
(Continued)
G5353
CIP 2018-52
52599 53763
52600 53791
50390-5 (FINAL) 53639
156731 53765
BC21001A
GRD1281A
INV0266118 53798
June 1, 2022
6871 53460
June 1, 2022
SHERIFF MARCH 2022
Description/Account
Total:

WEARING APPAREL
Total:

RETENTION RELEASE
Total:

IS/MND - CANNABIS ORDINANCE

ESSENTIAL HOUSING PROJECT - E
Total:

PAVEMENT CONDITION REPORT U
Total:

POLARA PUSH BUTION SYSTEM
Total :

REFUNDABLE DEPOSIT BC21001A
Total:

REFUNDABLE DEPOSIT GRD1281A
Total:

TRAFFIC: 2070 CONTROLLER AND
Total:

RETIREE HEALTH PAYMENT
Total:

GRAPHIC DESIGN WORK
Total:

RETIREE HEALTH PAYMENT
Total:

LAW ENFORCEMENT
Total:

Page: 3
Amount
6,500.00
194.84
194.84
3,532.70
3,532.70
20,540.63
12,567.50
33,108.13
2,255.00
2,255.00
14,833.45
14,833.45
1,604.84
1,604.84
626.59
626.59
3,526.66
3,526.66

91.00 91.00
3,225.00
3,225.00

91.00 91.00
1,378,404.57
1,378,404.57
Page: 3
vchlist
06/01/2022 12:41:10PM
Bank code: ubqen
Voucher Date Vendor
130644 6/1/2022 10407 SAN DIEGO GAS & ELECTRIC
130645 6/1/2022 14569 SAN DIEGO SPICE COMPANY
130646 6/1/2022 10677 SANTEE CHAMBER OF COMMERCE
130647 6/1/2022 10110 SECTRAN SECURITY INC
130648 6/1/2022 14038 SINGH GROUP INC
130649 6/1/2022 12527 SOCIETY FOR HUMAN
130650 6/1/2022 10217 STAPLES ADVANTAGE
130651 6/1/2022 10121 SUPERIOR READY MIX LP
130652 6/1/2022 14572 TARPY PLUMBING, HEATING & AIR
130653 6/1/2022 11882 THOMPSON, ZANE
130654 6/1/2022 14388 TRAVIS STOUT
130655 6/1/2022 14463 TRUESDELL CORPORATION OF
Voucher List

CITY OF SANTEE
Invoice PO#
3422 380 562 8-MAY22
4394 020 550 9-MAY22
7990 068 577 7-MAY22
8509 742 169 4-MAY22
Ref000078920
2689 53758
22050505 53532
41074 53512
S01834657
3507514275 53513
279262 53505
22STE-00408
W08288
E4079353
CIP 2013-01
Description/Account

ROW / MEDIANS
LMD
PARKS

CITY HALL GROUP BILL
Total:

CORRECTED LICENSE TYPE REFU
Total:

SANTEE MAGAZINE - SUMMER ISS
Total:

FY 21/22 ARMORED CAR TRANSPC
Total:

DEAD ANIMAL REMOVAL SERVICE
Total:

SHRM MEMBERSHIP
Total:

OFFICE SUPPLIES - FINANCE
Total:

ASPHALT MATERIALS & SUPPLIES
Total:

REQUEST FOR REFUND; PERMIT 'II
Total:

WEARING APPAREL
Total:

PROFESSIONAL DEVELOPMENT
Total:

RETENTION RELEASE
Page: 4
Amount
226.67
2,405.26
17,003.17
9,778.48
29,413.58

43.00 43.00
2,160.00
2,160.00
141.67
141.67
1,334.30
1,334.30
229.00
229.00

45.51 45.51
1,022.54
1,022.54
254.94
254.94
194.84
194.84

85.00 85.00
51,618.49
Page: 4
vchlist
06/01/2022 12:41:10PM
Bank code : ubqen
Voucher Date Vendor
Voucher List

CITY OF SANTEE
Invoice
130655
130656
6/1/2022 14463 14463 TRUESDELL CORPORATION OF (Continued) 130657
130658
130659
130660
130661
6/1/2022 12480 UNITED SITE SERVICES
6/1/2022 13949 VENTEK INTERNATIONAL
6/1/2022 10136 WEST COAST ARBORISTS INC
6/1/2022 13996 WESTERN AUDIO VISUAL
6/1/2022 12930 WILLIAMS, ROCHELLE M.
6/1/2022 12641 WITIORFF, VICKY DENISE
42 Vouchers for bank code : ubgen
42 Vouchers in this report
Prepared by: �1 Y//7__..-
Date: �,, , I L·; � Approved by: ��)) ;=
Date: lt-'/"'m:2:=
114-13080222
114-13080223
114-13082059
131370
185328
185329
CIP2016-51R
June 1, 2022
June 1, 2022
------ PO#
53419
53419
53419
53776
53503
53503
Description/ Account
Total:

PORTABLE TOILETS, TEMP FENCE

PORTABLE TOILETS, TEMP FENCE
Total:

REPLACEMENT PRINTER
Total:

URBAN FORESTRY MANAGEMENT

URBAN FORESTRY
Total:

RETENTION RELEASE
Total:

RETIREE HEALTH PAYMENT
Page: 5
Amount
51,618.49
208.04
375.80
238.11
821.95
1,598.76
1,598.76
1,495.20
854.40
2,349.60
29,132.17
29,132.17

91.00 Total : 91.00
RETIREE HEALTH PAYMENT 31.00
Total : 31.00
Bank total : 1,573,860.90
Total vouchers : 1,573,860.90
Page: 5
vchlist
06/02/2022 10:11:37AM
Bank code: ubqen
Voucher Date Vendor
130662 6/2/2022 12724 AMERICAN FIDELITY ASSURANCE
130663 6/2/2022 12903 AMERICAN FIDELITY ASSURANCE CO
130664 6/2/2022 10208 ANTHEM EAP
130665 6/2/2022 10334 CHUC
130666 6/2/2022 14458 METROPOLITAN LIFE INSURANCE
130667 6/2/2022 10785 RELIANCE STANDARD LIFE
130668 6/2/2022 10424 SANTEE FIREFIGHTERS
130669 6/2/2022 10776 STATE OF CALIFORNIA
130670 6/2/2022 14467 TEXAS LIFE INSURANCE COMPANY
130671 6/2/2022 10001 US BANK
10 Vouchers for bank code : ubgen
10 Vouchers in this report
Voucher List

CITY OF SANTEE
Invoice
0459822
6052748
046580737742
3012034
72171352
June 22
PPE 05/25/22
PPE 05/25/22
SMOFOU20220515001
PPE 05/25/22
PO# Description/Account

VOLUNTARY LIFE INS-AM FIDELITY
Total:

FLEXIBLE SPENDING ACCOUNT
Total:

EMPLOYEE ASSISTANCE PROGRAI
Total:

HEALTH INSURANCE
Total:

DENTAL INSURANCE
Total:

VOLUNTARY LIFE INSURANCE
Total:

DUES/PEG/BENEVOLENT/BC EXP
Total:

WITHHOLDING ORDER
Total:

VOLUNTARY INS RIDERS
Total:

PARS RETIREMENT
Total:

Bank total:

Total vouchers :

Page:

Amount
4,802.44
4,802.44
2,069.64
2,069.64
286.38
286.38
185,671.76
185,671.76
11,565.28
11,565.28
501.16
501.16
3,220.35
3,220.35
449.53
449.53
110.35
110.35
682.34
682.34
209,359.23
209,359.23
Page: 6
6 vchlist
06/02/2022 10:11 :37AM
Bank code:

Voucher
ubqen
Date Vendor
Voucher List

CITY OF SANTEE
Invoice ------ PO# Description/ Account
Page: 7
Amount
Page: 7
PyBatch
05/31/2022 1:47:50PM

EARNINGS SECTION
Type Hours/units Rate Amount Src
vtkn 233.11 10,897.01
wcbf 74.67
web< 41.00 1,243.96
•'
Grand 14,531.75 592,953.78
Totals
--- Plan
sb-3
sffa
sffapc
st1 cs3
st2cs3
texlif
vaccpr
vaccpt
vcanpr
vcanpt
vgcipt
vision
voladd
voldis
vollad
vollif
Payroll Processing Report

CITY OF SANTEE
5/12/2022 to 5/25/2022-1 Cycle b

DEDUCTIONS SECTION
Base Wages
96,683.77
12,619.94
Deduction Benefit/Cont LvPlan

59.95 2,662.08
422.40
2,900.53
378.60

55.19 598.05
289.17
456.77
161.50

88.81 497.79

37.29 234.94
250.59
211,488.53
-2,900.53
-378.60
250.57
254,425.07
Page: 8

LEAVE SECTION
Accrued
Gross:

Net:

Taken Banked Lost
<< No Errors / 14 Warnings >>
Page: 8
vchlist
06/02/2022 9:06:43AM
Bank code : ubqen
Voucher
754964
754984
Date Vendor
6/2/2022 10959 VANTAGE TRANSFER AGENT/457
6/2/2022 10782 VANTAGEPOINT TRNSFR AGT/801801
2 Vouchers for bank code : ubgen
2 Vouchers in this report
Voucher List

CITY OF SANTEE
Invoice
PPE 05/25/22
PPE 05/25/22
------ PO# Description/Account
ICMA-457
Total:

RETIREE HSA
Total:

Bank total:

Total vouchers
Page: 9
Amount
33,211.39
33,211.39
4,243.23
4,243.23
37,454.62
37,454.62
Page: 9
vchlist
06/07/2022 9:23:42AM
Bank code : ubqen
Voucher
13098
13110
Date ----------------- Vendor
6/6/2022 10955 DEPARTMENT OF THE TREASURY
6/6/2022 10956 FRANCHISE TAX BOARD
2 Vouchers for bank code : ubgen
2 Vouchers in this report
Prepared by:�
Date: {1,2 · 3: · k-7
�:�;''"' �dtil_�
Voucher List

CITY OF SANTEE
Invoice
June 22 Retirees
PPE 05/25/22
June 22 Retirees
PPE 05/25/22
PO# Description/Account

FEDERAL WITHHOLDING TAX

FED WITHHOLD & MEDICARE
Total:

CA STATE TAX WITHHELD

CA STATE TAX WITHHELD
Total:

Bank total:

Total vouchers
Page: 10
Amount
211.00
84,148.27
84,359.27

46.00 27,990.20
28,036.20
112,395.47
112,395.47
Page: 10
vchlist
06/07/2022 9:43:41AM
Bank code : ubqen
Voucher
5224
Date Vendor
6/7/2022 10353 PERS
1 Vouchers for bank code : ubgen
1 Vouchers in this report
___ __,,
Prepared by:'-- .\du� =
Date: I.a .3::, 2 7
Appco,ed by, �k.lfdYdJ(,,j Date: �-7� 0
Voucher List

CITY OF SANTEE
Invoice
05 22 4
------ PO# Description/Account

RETIREMENT PAYMENT
Total:

Bank total:

Total vouchers
Page: 11
Amount
119,435.56
119,435.56
119,435.56
119,435.56
Page: 11
vchlist
06/08/2022 10:04:28AM
Bank code: ubqen
Voucher Date Vendor
130672 6/8/2022 12060 ACCOUNTING PRINCIPALS
130673 6/8/2022 13287 ANIXTER
130674 6/8/2022 10412 AT&T
130675 6/8/2022 10020 BEST BEST & KRIEGER LLP
130676 6/8/2022 10298 BLACKMAN, HAILE G
130677 6/8/2022 12136 BOB MURRAY & ASSOCIATES
130678 6/8/2022 12349 CHOICE LOCKSMITHING
130679 6/8/2022 12328 CINTAS FIRE 636525
130680 6/8/2022 12153 CORODATA RECORDS
130681 6/8/2022 10040 COUNTYWIDE MECHANICAL SYSTEMS
130682 6/8/2022 14322 CRIDER ENCOUNTERS
130683 6/8/2022 13129 DAVID TURCH AND ASSOCIATES
Voucher List

CITY OF SANTEE
Invoice PO#
12404179 53612
187407158 53732
000018233460
935317
7 53816
9600 53731
9601 53744
042022CH 53521
5108594928 53557
rs4773511 53565
50523 53436
350
5132022 53644
Description/Account

TEMPORARY ACCOUNTING SPECI,
Total:

FIBEROPTIC EQUIPMENT
Total:

TELEPHONE
Total:

REDISTRICTING SERVICES
Total:

SANTEE SUMMER CONCERTS
Total:

DIRECTOR OF COMMUNITY SERVII

DIRECTOR OF HUMAN RESOURCE
Total:

LOCKSMITH SERVICES
Total:

FIRST-AID KIT SERVICE
Total:

RECORD STORAGE, RETRIEVEL &
Total:

HVAC MAINT & REPAIRS
Total:

DAY CAMP PROGRAMMING
Total:

DAVID TURCH & ASSOCIATES AGR
Total:

Page: 12
Amount
1,665.20
1,665.20
4,073.86
4,073.86
799.91
799.91
42,200.00
42,200.00
2,000.00
2,000.00
176.88
207.69
384.57

99.50 99.50
235.12
235.12
474.09
474.09
533.40
. 533.40
275.00
275.00
5,000.00
5,000.00
Page: 12
vchlist
06/08/2022 10:04:28AM
Bank code : ubqen
Voucher Date Vendor
130684 6/8/2022 13442 EBBIN MOSER+ SKAGGS LLP
130685 6/8/2022 10057 SAFEBUILT, LLC LOCKBOX #88135
130686 6/8/2022 10251 FEDERAL EXPRESS
130687 6/8/2022 14425 FEHR&PEERS
130688 6/8/2022 10009 FIRE ETC
130689 6/8/2022 11911 GALLS LLC
130690 6/8/2022 10065 GLOBAL POWER GROUP INC
130691 6/8/2022 10066 GLOBALSTAR USA LLC
130692 6/8/2022 11875 HALL, RONN
130693 6/8/2022 11196 HD SUPPLY FACILITIES
130694 6/8/2022 14459 HMC GROUP
130695 6/8/2022 14370 HPS MECHANICAL, INC
130696 6/8/2022 11391 HUMPHREY, BREANNE
Voucher List

CITY OF SANTEE
Invoice PO#
4954 52777
4956 52777
04/2022
9-626-37288
154844 53675
167774 53443
021109629 53778
80414 53495
000000032193066
110
9202924320 53409
162490 53747
85578 53626
520
Description/Account

MSCP SUBAREA PLAN

MSCP SUBAREA PLAN
Total:

SHARE OF FEES
Total:

SHIPPING CHARGES
Total:

SANTEE SB 743 IMPLEMENTATION
Total:

SAFETY APPAREL
Total:

SAFETY EQUIPMENT
Total:

GENERATOR MAINT & REPAIRS
Total:

SATELLITE PHONE SERVICE
Total:

ICSC 2022 LAS VEGAS
Total:

STATION SUPPLIES
Total:

SANTEE COMMUNITY CENTER
Total:

PLUMBING REPAIRS
Total:

ICSC 2022 LAS VEGAS
Page: 13
Amount
10,127.50
9,453.75
19,581.25
73,746.95
73,746.95

6.76 6.76
5,617.50
5,617.50
323.25
323.25
17,413.18
17,413.18
100.00
100.00

92.68 92.68
868.10
868.10

45.19 45.19
83,140.75
83,140.75
772.00
772.00

52.80 Page: 13
vchlist
06/08/2022 10:04:28AM
Bank code : ubqen
Voucher Date Vendor
130696 6/8/2022 11391 11391 HUMPHREY, BREANNE
130697 6/8/2022 11807 IMPERIAL SPRINKLER SUPPLY
130698 6/8/2022 10120 KEARNY PEARSON FORD
130699 6/8/2022 13223 KOVAL, LAURA
130700 6/8/2022 10430 LEAGUE OF CALIFORNIA CITIES
130701 6/8/2022 10079 MEDICO HEALTHCARE LINEN
130702 6/8/2022 14208 MINUTEMAN PRESS EL CAJON
130703 6/8/2022 10507 MITEL LEASING
130704 6/8/2022 10083 MUNICIPAL EMERGENCY SERVICES
130705 6/8/2022 10105 MYERS & SONS HI-WAY SAFETY INC
130706 6/8/2022 12991 NATIONAL LIGHTING SUPPLY LLC
130707 6/8/2022 14366 PACIFIC PLAY SYSTEMS INC.

Voucher List

CITY OF SANTEE
Invoice PO#
(Continued)
5125968-00 53602
5136796-00 53602
1776769 53449
1777108 53449
2022
1680
20616415 53546
63627 53586
903716749 MAY 22
903716774 MAY22
903716814 MAY22
903716817 MAY22
IN1706255 53788
129345 53777
134523 53665
INV2022-859
Description/Account
Total:

IRRIGATION PARTS

IRRIGATION PARTS
Total:

VEHICLE REPAIR PART

VEHICLE REPAIR PART
Total:

ICSC 2022 LAS VEGAS
Total:

LEAGUE MEMBERSHIP DUES
Total:

MEDICAL LINEN SERVICE
Total:

BUSINESS CARDS - DDS
Total:

MONTHLY RENTAL 122670
MONTHLY RENTAL 124690
MONTHLY RENTAL 130737
MONTHLY RENTAL 131413
Total:

WEARING APPAREL
Total:

TRAFFIC MESSAGE BOARD
Total:

LIGHTING/ELECTRICAL SUPPLIES
Total:

PLAYGROUND EQUIPMENT PARTS
Page: 14
Amount

52.80 25.72
364.42
390.14

26.91 406.01
432.92
375.12
375.12
600.00
600.00

13.01 13.01

92.56 92.56
1,878.80
312.66
276.33
266.16
2,733.95
1,252.60
1,252.60
17,448.80
17,448.80
1,955.06
1,955.06
770.00
Page: 14
vchlist Voucher List Page: 15
06/08/2022 10:04:28AM CITY OF SANTEE
Bank code : ubqen
Voucher Date Vendor Invoice PO# Description/Account Amount 130707 6/8/2022 14366 14366 PACIFIC PLAY SYSTEMS INC. (Continued) Total: 770.00 130708 6/8/2022 14534 PELOTON INTERACTIVE, INC ng5dCQAQ 53830 FITNESS EQUIMENT 2,779.52 ng6LnQAI 53830 FITNESS EQUIPMENT 2,617.89
Total: 5,397.41
130709 6/8/2022 13669 PORTILLO CONCRETE, INC CIP 2021-05 #2 53773 CITYWIDE CONCRETE REPAIR AN[ 41,406.60 CIP 2021-05 #2R RETENTION -2,070.33
Total: 39,336.27
130710 6/8/2022 10095 RASA 5621 53630 MAP CHECK - LANTERN CREST RI[ 1,305.00 Total: 1,305.00
130711 6/8/2022 10109 SAN DIEGO COUNTY FIRE CHIEFS' 06022022 SDCFCA INSTALLATION MTNG 140.00 Total: 140.00
130712 6/8/2022 10407 SAN DIEGO GAS & ELECTRIC 0422 970 321 8 MAY22 STREET LIGHTS 43,756.24 2237 358 004 2 MAY22 TRAFFIC SIGNALS 6,310.11
Total: 50,066.35
130713 6/8/2022 13206 SHARP BUSINESS SYSTEMS 9003797790 53579 SHARP COPIES/MAIN 05/2022 932.80 Total: 932.80
130714 6/8/2022 12223 SITEONE LANDSCAPE SUPPLY LLC 1191467 48-001 53733 IRRIGATION PARTS 193.38 119326935-001 53733 IRRIGATION PARTS 1,623.26
119326935-002 53733 IRRIGATION PARTS 304.40
119607 4 78-001 53733 IRRIGATION PARTS 541.96
Total: 2,663.00
130715 6/8/2022 10213 SOUTH BAY FOUNDRY INC 0219906 53767 MEMORIAL PARK BENCH 2,260.60 Total: 2,260.60
130716 6/8/2022 11056 STANDARD ELECTRONICS S46547 53510 SECURITY SYS 808.00 Total: 808.00
130717 6/8/2022 10217 STAPLES ADVANTAGE 3507665475 53548 OFFICE SUPPLIES - DDS 33.87 3507665476 53467 STAPLES OFFICE SUPPLIES 9.27
3507735102 53631 AS NEEDED OFFICE SUPPLIES 90.68
Page: 15
vchlist Voucher List Page: 16
06/08/2022 10:04:28AM CITY OF SANTEE
Bank code: ubqen
Voucher Date Vendor Invoice PO# Description/Account Amount 130717 6/8/2022 10217 STAPLES ADVANTAGE (Continued)
3507735103 53467 STAPLES OFFICE SUPPLIES 66.84
3508083821 53513 OFFICE SUPPLIES - FINANCE 390.49
Total: 591.15
130718 6/8/2022 10119 STEVEN SMITH LANDSCAPE INC 49022 53502 A 3 LANDSCAPE SERVICES 1,907.03 49128 53502 A 3 LANDSCAPE SERVICES 11,365.42
49221 53502 A 3 LANDSCAPE SERVICES 1,006.94
49319 53502 A 3 LANDSCAPE SERVICES 11,940.16
49439 53502 A 3 LANDSCAPE SERVICES 755.20
49545 53502 A 3 LANDSCAPE SERVICES 11,365.42
49592 53417 A 1 LANDSCAPE SERVICES 14,870.57
49593 53417 A 1 LANDSCAPE SERVICES 4,118.85
Total: 57,329.59
130719 6/8/2022 14572 TARPY PLUMBING, HEATING & AIR 22STE-00408 REQUEST FOR REFUND; PERMIT# 203.95 Total: 203.95
130720 6/8/2022 10183 THE MIGHTY UNTOUCHABLES LLC 06092022 53821 SANTEE SUMMER CONCERTS 1,750.00 Total: 1,750.00
130721 6/8/2022 14169 TROTIER, DUSTIN 520 ICSC 2022 LAS VEGAS 515.88 Total: 515.88
130722 6/8/2022 10550 UNIFORMS PLUS INC 56060 53469 WEARING APPAREL 506.27 56080 53469 WEARING APPAREL 649.50
Total: 1,155.77
130723 6/8/2022 12480 UNITED SITE SERVICES 114-13095280 53419 PORTABLE TOILETS, TEMP FENCE 94.82 Total: 94.82
130724 6/8/2022 11194 USAFACT INC 2053314 BACKGROUND CHECK 55.56 Total: 55.56
130725 6/8/2022 14574 JAMIE THURMAN Ref000078955 CORRECTED LICENSE TYPE REFU 43.00 Total: 43.00
130726 6/8/2022 10136 WEST COAST ARBORISTS INC 185815 53503 URBAN FORESTRY 2,136.00 Page: 16
vchlist
06/08/2022 10:04:28AM
Bank code: ubqen
Voucher
130726
130727
Date ----------------- Vendor
6/8/2022 10136 WEST COAST ARBORISTS INC
6/8/2022 10232 XEROX CORPORATION
56 Vouchers for bank code : ubgen
56 Vouchers in this report
P,epaced by.��«-::

Date. _ ___.____________
Appro,ed by � u.,J.e_ J\AllL1\,'{1 Date: {jz � 'fs'. � ;)2:

Voucher List

CITY OF SANTEE
Invoice
(Continued)
186137
186138
590574717
PO#
53503
53503
53540
Description/Account

URBAN FORESTRY

URBAN FORESTRY MANAGEMENT
Total:

XEROX COPIES 12/2021
Total:

Bank total:

Total vouchers
Page: 17
Amount
3,417.60
854.40
6,408.00
209.63
209.63
456,832.00
456,832.00
Page: 17

LEGAL SERVICES BILLING SUMMARY Attachment 1
MAY 2022

CURRENT INVOICE

DESCRIPTION AMOUNT NUMBER
Retainer $ 15,743.00 937459
1001.00.1201.51020 15,743.00
Labor & Employment:

Labor & Employment 923.40 937477
Employee Benefits 194.40 937483
1001.00.1201.51020 1,117.80
Litigation & Claims:

Litigation & Claims 2,940.30 937478
Affordable Housing Coalition of San Diego County 2,405.90 937480 Parcel 4 Litigation 2,381.40 937461
Brooks Receivership 444.10 937465
1001.00.1201.51020 8,171.70
Special Projects (General Fund):

Community Oriented Policing 11,002.23 937479
Climate Action Plan 510.30 937481
CEQA Special Advice 2,284.20 937474
Water Quality 801.90 937482
Parcel 4 Hotel 1,765.30 937485
Housing Element 2,162.70 937460
Advanced Records Center Services for PRA 3,153.00 937466 Cannabis 9,258.30 937467
1001.00.1201.51020 30,937.93
Special Projects - CSA 69 (General Fund)
CSA 69 Dissolution 1,579.50 937468
1001.03.2203.51020
Special Projects (Other Funds):

Cuyamaca Street Right-of-Way Acquisition 3,970.50 937462 Town Center LMD Zone B (The Lakes) 850.50 937484
4,821.00
Third-Party Reimbursable:

Lantern Crest 75.40 937469
Castlerock (Weston) 62.40 937471
MSCP Subarea Plan 942.50 937472
HomeFed Project 5,070.50 937473
Fanita Ranch Referendum 534.60 937464
Redevelopment of Carlton Oaks Golf Course 188.50 937470 6,873.90
Total $ 69,244.83
LEGAL SERVICES BILLING RECAP Attachment 2
FY 2021-22
Adopted Revised Previously Spent Available Current Request Category Budget Budget Year to Date Balance Mo/Yr Amount General Fund:

General / Retainer $ 190,920.00 $ 190,920.00 $ 157,694.05 $ 33,225.95 May-22 $ 15,743.00 Labor & Employment 60,000.00 60,000.00 32,984.55 27,015.45 May-22 1,117.80 Litigation & Claims 275,000.00 275,000.00 87,574.30 187,425.70 May-22 8,171.70 Special Projects 271,000.00 271,000.00 282,707.62 (11,707.62) May-22 32,517.43 Total $ 796,920.00 $ 796,920.00 $ 560,960.52 $ 235,959.48 $ 57,549.93 Other City Funds:

MHFP Commission $ 5,000.00 $ 10,000.00 $ 12,368.70 $ (2,368.70) $ - Capital Projects 75,000.00 75,000.00 28,052.68 46,947.32 May-22 3,970.50 Highway 52 Coalition 5,000.00 5,000.00 801.90 4,198.10 - Town Center LMD - 2,000.00 558.90 1,441.10 May-22 850.50 Total $ 85,000.00 $ 92,000.00 $ 41,782.18 $ 50,217.82 $ 4,821.00 Third-Party Reimbursable:

Total $ 130,452.49 May-22 $ 6,873.90
`
Total Previously Spent to Date
Total Proposed for Payment
General Fund $ 560,960.52 General Fund $ 57,549.93
Other City Funds 41,782.18 Other City Funds 4,821.00
Applicant Deposits or Grants 130,452.49 Applicant Deposits or Grants 6,873.90 Total $ 733,195.19 Total $ 69,244.83
FY 2021-22

RESOLUTION NO.

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTEE, CALIFORNIA ACCEPTING THE SANTEE LAKES STORM DRAIN REPLACEMENT (CIP 2020-24)

PROJECT AS COMPLETE
WHEREAS, the City Council awarded the construction contract for the Santee Lakes Storm Drain Replacement (CIP 2020-24) project to Southland Paving, Inc. on April 14, 2021 in the amount totaling $1,961,597.80; and
WHEREAS, the City Council authorized staff to approve construction change orders in a total amount not to exceed $196,159.78; and WHEREAS, six change orders were approved in the amount totaling $54,097.97 for unforeseen items and additional work; and
WHEREAS, the construction contract was completed for a total contract amount of $2,015,695.77; and
WHEREAS, Southland Paving, Inc. has completed the project in accordance with the contract plans and specifications.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Santee, California, that the work for the construction of the Santee Lakes Storm Drain Replacement (CIP 2020-24) project is accepted as complete on this date and the City Clerk is directed to record a Notice of Completion.

ADOPTED by the City Council of the City of Santee, California, at a Regular meeting thereof held this 22nd day of June, 2022 by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

ANNETTE ORTIZ, CMC, CITY CLERK

RESOLUTION NO. _________

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTEE, CALIFORNIA,

AUTHORIZING THE PURCHASE OF NEW STRUCTURAL FIREFIGHTING CLOTHING (TURNOUTS) FROM MUNICIPAL EMERGENCY SERVICES PER SOURCEWELL CONTRACT #032620-MES
WHEREAS, the City of Santee’s (“City”) amended FY 2021-22 Fire and Life Safety Department operating budget includes funding for the purchase of structural firefighting clothing (turnouts); and
WHEREAS, Santee Municipal Code Section 3.24.130(A) authorizes the City to join with other public jurisdictions in cooperative purchasing plans or programs as determined by the purchasing agent to be in the City’s best interest; and WHEREAS, in May 2020, Sourcewell, a State of Minnesota local government agency and service cooperative, of which the City is a member, completed a competitive request for proposals process for the procurement of firefighting personal protective equipment, apparel and accessories; and
WHEREAS, based on evaluation criteria such as pricing, selection and variety of products offered, customer support and ability to meet the contract requirements, Municipal Emergency Services (MES) was awarded Contract #032620-MES for firefighting personal protective equipment, apparel and accessories for an initial term of four years plus one annual option to renew; and WHEREAS, staff has evaluated the pricing, products and support provided by Sourcewell Contract #032620-MES and desires to use Sourcewell Contract #032620-MES to purchase an additional nine (9) pairs of structural firefighting pants and ten (10) structural firefighting coats (turnouts) for the Fire and Life Safety Department to outfit the department’s newest firefighter with safety clothing and to replace existing gear that failed annual testing and cannot remain in service.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santee, California, that the City Council hereby:

1. Authorizes the purchase of an additional nine (9) pairs of structural firefighting pants and ten (10) structural firefighting coats (turnouts) from Municipal Emergency Services (MES) per Sourcewell Contract #032620-MES for an amount not to exceed $36,001.90, resulting in a total cost not to exceed $74,491.03 for FY 2021-22; and

2. Authorizes the City Manager to execute all necessary documents.

ADOPTED by the City Council of the City of Santee, California, at a Regular Meeting thereof held this 22nd day of June 2022, by the following roll call vote, to wit:

AYES:

NOES:

ABSENT:

APPROVED:
___________________________________
JOHN W. MINTO, MAYOR
ATTEST:
________________________________

ANNETTE ORTIZ, CMC, CITY CLERK

60139.00154\40153924.2
CANNABIS WORKSHOP NO. 5

STAFF REPORT
City Council Meeting
June 22, 2022
A. BACKGROUND
At the City Council Planning Retreat on March 9, 2021, the City Council established a priority to review economic development and regulatory options for possible cannabis businesses in Santee. This priority was confirmed by the City Council at the City Council meeting on March 24, 2021. The City of Santee currently does not allow cannabis businesses to operate within City boundaries. The cannabis industry is highly regulated, and the laws have evolved relatively quickly. Many cities across the state are like Santee, in that they have restricted cannabis businesses within the City and are now beginning to reconsider such restrictions.

At the City Council meeting on May 12, 2021, staff presented information on the status of the cannabis industry in California and within various local cities. Council directed staff to bring back additional information to assist in the consideration of allowing cannabis businesses to operate in Santee. The issue of retaining local control with informed decision making, as opposed to the threat of being subjected to State legislation or a voter initiative, was raised by several Council members.

At the City Council meeting on August 11, 2021, staff presented information and received Council direction regarding the specific types of cannabis businesses warranting further consideration, including retail (dispensary) uses, testing labs, and microbusinesses that contain at least three elements of the cannabis industry under one company (e.g., retail, distribution, cultivation and/or manufacturing).

At the City Council meeting on October 13, 2021, staff presented further information regarding state regulations as well as policy questions related to the location, license and revenue options for the industry segments selected by the City Council. Land use and CEQA considerations, best practices, and fiscal impacts / potential revenues were also discussed which informed the process of developing a Santee cannabis business ordinance.

At the City Council meeting on October 13, 2021, the City Council directed staff to develop a cannabis ordinance.

At the City Council meeting on March 9, 2022, staff presented for Council review a draft Cannabis Business Ordinance (referred to herein as the “Regulatory Ordinance”) that would permit certain types of cannabis businesses to operate in the City upon the issuance of a Cannabis Business Permit, and in accordance with the requirements set forth in the Regulatory Ordinance. Council directed staff to make certain revisions to the draft Regulatory Ordinance, as discussed in Section B below.
60139.00154\40153924.2
Staff Report, June 22, 2022
Cannabis Workshop No. 5

Page 2 ends

The purpose of this fifth workshop is (1) to present the revised Regulatory Ordinance; and (2) to present a draft cannabis tax measure (“Tax Measure”) for Council review and direction.

B. REVISED REGULATORY ORDINANCE
The redline included in the agenda materials indicates the revisions made to the Regulatory Ordinance since the last workshop. The following substantive revisions were made, as directed by Council:
• Increased the “buffer” zones from sensitive uses from 600 feet to 900 feet (§7.04.290(C)(2))
• Added parks and places of worship as sensitive uses (§7.04.290(C)(2)(c), (d)) • Clarified the land use zones in which each type of permitted cannabis business would be permitted to operate (§7.04.290(B))
o Specified that only storefront retail businesses and microbusinesses that include storefront retail (but do not include cultivation) are allowed in the General Commercial zone
• Clarified that the limit of four Cannabis Business Permits that may be issued to retailers includes microbusinesses that engage in storefront retail (§7.04.100(A)) • Clarified that the required background checks will be conducted annually (§§ 7.04.080(C); 7.04.340(K))
• Revised language to provide that when a new owner is added to a cannabis business but the original owners remain in place, an amendment to the Cannabis Business Permit is not required if the new owner owns less than 50% of the business (7.04.240(E))
• Increased insurance requirements to include specific limits (for example, $2 million per occurrence, $4 million aggregate for General Commercial Liability insurance) and to require that the City be named as an additional insured (§7.04.300(B)) • Made other minor revisions as directed by Council and shown in the redline Staff also made minor clerical and clarifying revisions, including expressly stating that outdoor cultivation is prohibited; revising the definition of “microbusiness” to include a list of the possible types of business activities in which a microbusiness may engage.

Unless otherwise directed by Council, staff plans to present the final version of the Regulatory Ordinance at the July 27, 2022 Council meeting, with options for the Council to (1) place the Regulatory Ordinance on the ballot; (2) conduct the first reading of the Regulatory Ordinance and schedule the second reading for a subsequent meeting (resulting in adoption of the Regulatory Ordinance by Council); (3) take no further action (effectively placing the Regulatory Ordinance “on the shelf” for possible future action); or (4) provide other direction. 60139.00154\40153924.2
Staff Report, June 22, 2022
Cannabis Workshop No. 5

Page 3 ends

Development Agreements and CUPs
Some cities regulate cannabis businesses through Development Agreements or Conditional Use Permits (or similar land entitlements). In that case, the Development Agreement or CUP / entitlement sets forth community benefits to be provided by the business. This approach allows a city to develop an individual arrangement with each cannabis business and does not require voter approval. However, because these approaches may create vested rights that run with the property rather than the individual owner (making it potentially more difficult to address a problematic business), Council may wish to consider an approach that achieves the same community benefits but without creating potential vested rights. The Regulatory Ordinance as drafted includes a community benefit requirement (enforced through a Community Benefit Agreement) but decouples that contract from the land use permit, potentially avoiding the issue of vested rights.

C. SUMMARY OF DRAFT TAX MEASURE
Council has expressed an interest in considering a cannabis business tax that would apply in the event that cannabis businesses are permitted to operate in the City. The draft Tax Measure presented for Council consideration would establish a general tax on cannabis businesses (including hemp and hemp products).

The draft Tax Measure would impose certain maximum tax rates by cannabis business activity. The actual tax rates to be imposed may be established and subsequently modified by resolution or ordinance of the City Council at any time, within the following maximum tax rates.
• For commercial cultivation:
o $10 per square foot of canopy space (facilities exclusively using artificial lighting)
o $7 per square foot of canopy space (facilities using a combination of artificial and natural lighting)
o $4 per square foot of canopy space (facilities using no artificial lighting) o $2 per square foot of canopy space (nurseries as defined in the draft Tax Measure)
o These maximums would be subject to annual CPI based adjustment • For testing labs: 2% of gross receipts generated by that cannabis business activity • For retail: 6% of gross receipts generated by that cannabis business activity • For distribution: 3% of gross receipts generated by that cannabis business activity • For manufacturing: 4% of gross receipts generated by that cannabis business activity The draft Tax Measure would also allow the City Council to, by resolution or ordinance, increase or decrease the rate of the medicinal cannabis business tax, including the initial rate of the medicinal cannabis business tax, independent of other cannabis business tax activities, within the established maximum tax rates.
60139.00154\40153924.2
Staff Report, June 22, 2022
Cannabis Workshop No. 5

Page 4 ends

The draft Tax Measure includes specific provisions regarding the registration, reporting and remittance of tax. The filing of a tax statement and the remittance of tax owed would be required on a monthly basis on or before the last day of the month following the close of each month. Any person who fails or refuses to pay any cannabis business tax required on or before the due date would be subject to penalties and interest as follows:
• A penalty equal to 10% of the amount of the tax, plus interest on the unpaid tax at the rate of 1% per month
• If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to 25% of the amount of the tax, plus interest on the unpaid tax and on the unpaid penalties at the rate of 1% per month Section 4.27.190 of the draft Tax Measure includes audit and examination provisions whereby the City or its third-party designees will have the authority to inspect any location where commercial cannabis activity occurs and to audit and examine all books and records of person engaged in cannabis businesses.

The Tax Measure has been drafted to apply to each person who is engaged in business as a cannabis business, regardless of whether the person has been issued a commercial cannabis business permit to operate lawfully in the City or is operating unlawfully. It would apply to businesses based outside of the City that deliver cannabis products into the City, and could also provide additional leverage for the prosecution of businesses operating unlawfully in the City.

The Tax Measure is required by law to be approved by a majority of the voters before it can become effective. If Council desires to place the Tax Measure on the ballot for the November 8, 2022 election, the Council would need to adopt a resolution placing the Tax Measure on the ballot at the July 27, 2022 or August 10, 2022 Council meetings. Because the Tax Measure would impose a general tax, the adoption of the resolution placing the Tax Measure on the ballot would require a 2/3 vote of the Council.

D. CURRENT REGULATIONS IN OTHER JURISDICTIONS
The following table summarizes the maximum cannabis business tax rates for jurisdictions in San Diego County.
60139.00154\40153924.2
Staff Report, June 22, 2022
Cannabis Workshop No. 5

Page 5 ends

CITY RETAIL NON-RETAIL
Chula Vista 7% of gross receipts Cultivation: $25 per square foot Other Types: 7% of gross receipts
Encinitas Citizen initiative did not
include a cannabis business
tax. A tax measure will be
on the November 2022 ballot
with a range of 4% to 7% of
gross receipts.

Citizen initiative did not include a
cannabis business tax. A tax measure
will be on the November 2022 reflecting
the following tax rates.

Non-retail: 1% to 4% of gross receipts
Cultivation: $2 to $10 per square foot
La Mesa 4% of gross receipts Cultivation: $7 per square foot Laboratory Testing: 1% of gross receipts
Distribution: 2% of gross receipts
Manufacturing: 2.5% of gross receipts
Lemon Grove 5% of gross receipts Cultivation: 4% of gross receipts Laboratory Testing: 2% of gross receipts
Distribution: 3% of gross receipts
Manufacturing: 4% of gross receipts
Oceanside 5% of gross receipts Cultivation: 1.5% of gross receipts Distribution: 2% of gross receipts
Manufacturing: 2.5% of gross receipts
San Diego 8% of gross receipts 8% of gross receipts
Vista 7% of gross receipts Laboratory Testing: 1% of gross receipts Distribution: 2% of gross receipts
Manufacturing: 4% of gross receipts
60139.00154\40153924.2
Staff Report, June 22, 2022
Cannabis Workshop No. 5

Page 6 ends

County of San Diego
On January 27, 2021, the San Diego County Board of Supervisors approved the development of a cannabis business permitting program. On June 15, 2022, the County considered an ordinance establishing a tax on cannabis activities within the unincorporated areas of the County. The draft tax measure would set the following maximum tax rates:
• For commercial cultivation: $10 per square foot of canopy space or 3% of gross receipts generated by that cannabis business activity
• For testing labs: 2% of gross receipts generated by that cannabis business activity • For retail: 6% of gross receipts generated by that cannabis business activity • For distribution: 3% of gross receipts generated by that cannabis business activity • For manufacturing: 4% of gross receipts generated by that cannabis business activity At the June 28, 2022 Board meeting the Board will consider a resolution placing the tax measure on the November 2022 ballot.

E. STATUS OF CEQA ANALYSIS
On January 12, 2022, the City Council authorized a Professional Services Agreement with Harris & Associates to prepare an Initial Study / Mitigated Negative Declaration for the Regulatory Ordinance. On June 3, 2022, the City published a Notice of Intent to Adopt a Negative Declaration / Mitigated Negative Declaration for the Regulatory Ordinance and circulated the draft document for public review. The public review period will end on July 5, 2022. The City will work with Harris & Associates to respond to any comments that are received, and the final Initial Study / Mitigated Negative Declaration will be presented for adoption at the July 27, 2022 Council meeting.

F. NEXT STEPS AND TIMELINE
If Council desires to place the Regulatory Ordinance on the November 2022 ballot, the Regulatory Ordinance must be placed on the ballot at either the July 27, 2022 or August 10, 2022 Council meeting in order to be submitted prior to the deadlines established by the Registrar of Voters.

After receiving Council direction, staff will prepare a revised Tax Measure for consideration at the July 27, 2022 Council meeting. As discussed above, the Tax Measure cannot be adopted outright by the Council, it must be approved by voters in order to become effective. The Tax Measure would need to be placed on the ballot at the July 27, 2022 or August 10, 2022 Council meeting in order to be placed on the November 2022 ballot.

G. STAFF RECOMMENDATION

1. Receive the revised Regulatory Ordinance; and

2. Conduct the public workshop and provide direction to staff regarding the Tax Measure.

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Santee Cannabis Business Ordinance
Chapter 7.04 – Cannabis Businesses

7.04.010 Title.

This chapter shall be known as the Cannabis Business Permit Ordinance of the City of Santee.

7.04.020 Purpose and intent.

It is the purpose and intent of this chapter to implement the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”) to accommodate the needs of medically ill persons in need of cannabis for medicinal purposes as recommended by their health care provider(s), and to provide access to same. It is also the purpose and intent of this chapter to provide access to adult-use cannabis for persons aged 21 and over as authorized by the Control, Tax and Regulate the Adult Use Cannabis Act (“AUMA” or “Proposition 64”), while imposing sensible regulations on the use of land to protect City residents, neighborhoods, and businesses from disproportionately negative impacts. It is the purpose and intent of this chapter to regulate the commercial cultivation, processing, manufacturing, testing, sale, delivery, and distribution of cannabis and cannabis products in a responsible manner to protect the health, safety, and welfare of the residents of the City and to enforce rules and regulations consistent with state law and in a fair and equitable manner.

7.04.030 Legal authority.

Pursuant to Sections 5 and 7 of Article XI of the California Constitution, the provisions of MAUCRSA, any subsequent state legislation and regulations regarding same, the City is authorized to adopt ordinances that establish standards, requirements and regulations for the licensing and permitting of commercial medicinal and adult-use cannabis activity. Any standards, requirements, and regulations regarding health and safety, security, and worker protections established by the State of California, or any of its departments or divisions, shall be the minimum standards applicable in the City to all commercial cannabis activity.

7.04.040 Cannabis cultivation and cannabis activities prohibited unless specifically authorized by this chapter.

Except as specifically authorized by this chapter, the commercial cultivation, manufacture, processing, storing, laboratory testing, labeling, sale, delivery, distribution, or transportation of cannabis or cannabis products is expressly prohibited in the City. Violations of this chapter are subject to penalties under the Health and Safety Code and Penal Code in addition to the penalties set forth in Section 7.04.520. Outdoor cultivation is expressly prohibited within the City.

7.04.050 Compliance with state and local laws and regulations.

It is the responsibility of the owners, agents, employees, affiliates, and / or operators of any commercial cannabis business within the City limits to ensure that they operate in a manner compliant with this chapter, all applicable state and local laws, and any regulations promulgated thereunder, including but not limited to the MAUCRSA.
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7.04.060 Definitions.
“Applicant” means a person or entity that submits an application for a Cannabis Business Permit under this chapter.
“Cannabis” means all parts of the Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, 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 purpose of this Chapter, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the California Health and Safety Code.

Cannabis shall also have the same meaning as in Section 26001(f) of the Business and Professions Code, as same may be amended from time to time. “Cannabis Business Permit” or “Permit” means a regulatory permit issued by the City pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City. The issuance of the Cannabis Business Permit and annual renewal of a Cannabis Business Permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this chapter and any regulations adopted by the City governing the commercial cannabis activity at issue. “Cannabis Business Permittee” or “Permittee” means a person or entity that has received a Cannabis Business Permit from the City as authorized under this chapter. “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Health and Safety Code Section 11362.7.
“City Manager” means the City Manager or designee.
“Commercial cannabis business” means any business or operation which engages in medicinal or adult-use commercial cannabis activity.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. All references to cultivation allowed under this chapter mean indoor cultivation only.
“Director” shall mean the Director of Development Services or designee. “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
“Distributor” shall have the same meaning as that appearing in Business and Professions Code Section 26070.
“Enforcement Officer” means any designee authorized by the City Manager to enforce a violation of this chapter.
“Hearing Officer” shall mean an authorized hearing officer designated by the City Manager. 60139.00154\34785981.10
“Laboratory” means a laboratory, facility or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state; and (2) licensed by the State Department of Cannabis Control within the Business, Consumer Services, and Housing Agency.
“Limited-access area” means an area in which cannabis is stored or held and is only accessible to a licensee and authorized personnel.
“Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.
“Manufacturing site” means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid Cannabis Business Permit for manufacturing from the City and a valid state license as required for manufacturing of cannabis products. “Medicinal cannabis” means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. “Microbusiness” means a business that engages in at least three of the following activities at one location: indoor cultivation (up to 10,000 total square feet), manufacturing, distribution, or retail (storefront or non-storefront).
“Non-store front retailer” is a subset of “retailer” and is a licensed retail business that is closed to the public and provides product to customers solely by means of a delivery service which the retailer owns and controls.
“Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent as defined by state law. For purposes of this chapter, nonvolatile solvents include carbon dioxide, ethanol, and nonhydrocarbon-based or other solvents such as water, vegetable glycerin, vegetable oil, animal fat, and glycerin.
“Owner” means any of the following:

1. A person with an aggregate ownership interest of 10 percent or more in the commercial cannabis business, unless the interest is solely a security, lien, or encumbrance.

2. An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
(a) A member of the board of directors of a nonprofit.
(b) A general partner of a commercial cannabis business that is organized as a partnership.
(c) A non-member manager or manager of a commercial cannabis business that is organized as a limited liability company.
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(d) The trustee(s) and all persons who have control of the trust and / or the commercial cannabis business that is held in trust.
(e) An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.
(f) An individual with the authority to execute contracts on behalf of the commercial cannabis business.
“Patient” or “qualified patient” shall have the same meaning as that contained in California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which includes within its definition a person who is entitled to the protections of California Health and Safety Code Section 11362.22.
“Person” shall mean any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.
“Person with an identification card” shall have the same meaning as that contained in California Health and Safety Code Section 11362.7.
“Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and non-manufactured cannabis products. “Retailer” or “store front retailer” shall have the same meaning as that contained in Business and Professions Code Section 26070(a)(1), which defines a retailer as having a physical location form which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusive by delivery. “Sheriff” means the Sheriff of the County of San Diego. “State license” means a permit or license issued by the state of California, or one of its departments or divisions, under the MAUCRSA and any subsequent related state of California legislation, to engage in cannabis activity. A state license alone will not authorize the holder to operate a cannabis business, as state law also requires a permit or other authorization issued by a local jurisdiction.
“Topical cannabis” means a product intended for external application and / or absorption through the skin. A topical cannabis product is not considered a drug as defined by Health and Safety Code Section 109925.
“Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting cannabis activity authorized by the MAUCRSA which may be amended or repealed by any subsequent related state of California legislation. Transport can only be performed by licensed distributors and does not include deliveries of cannabis or cannabis products. “Volatile solvent” means a solvent as defined by Health and Safety Code Section 11362.3(b)(3) as of the effective date of this chapter and as subsequently amended. “Youth center” means any:
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1. Public or private facility that is primarily used to host recreation, academic, or social activities for minors, including, but not limited to:
a. Private youth membership organizations or clubs;
b. Social service teenage club facilities;
c. Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business; or d. Similar amusement park facilities.

2. Park, playground, or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball, or any similar facility located on a public or private school grounds, or on City, county, or state parks.
“Youth center” shall not include any private martial arts, yoga, ballet, dance, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children, or a location which is primarily utilized as an administrative office, or a facility for youth programs or organizations.

7.04.070 Cannabis Business Permit and City Business License required to engage in cannabis business.

No person may engage in any cannabis business within the City including cultivation, manufacture, processing, laboratory testing, distributing, dispensing, or sale of cannabis or a cannabis product unless the person meets all of the following requirements:

A. Possesses a valid Cannabis Business Permit from the City; B. Possesses a valid State of California seller’s permit, as applicable; and C. Is currently in compliance with all applicable state and local laws and regulations pertaining to the cannabis business and the cannabis activities, including the duty to obtain any required state licenses.

D. Possesses a City business license.

7.04.080 Evidence of cannabis owners and / or employees background check required.

A. Any person who is an owner, employee, agent, and / or who otherwise works within a cannabis business must be legally authorized to do so under applicable state law.

B. Cannabis business owners, operators, investors, managers, and employees shall be required to submit to a criminal background check for themselves and all persons in their employment.

C. The City Manager shall conduct or cause to be conducted annual criminal background checks which must at a minimum identify the following:

1. Whether the owners, operators, investors, managers, and employees applying for employment have ever been convicted of a violent felony as defined by California Penal Code 667.5 or equivalent offenses in other states;
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2. Whether the owners, operators, investors, managers, and employees have ever been convicted of a felony for hiring, employing, or in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor; or

3. Whether the owners, operators, investors, managers, and employees have ever been convicted of a felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.

D. Evidence of a conviction of any the offenses enumerated in subsection C of this section shall be grounds for denial of ownership or employment.

E. Violation of this section shall be grounds for immediate suspension of the business’s operating Cannabis Business Permit, pending a hearing before the City Manager within 30 days for a final determination of the status of the permit.

7.04.090 Personnel prohibited from holding a license or from employment with a Cannabis Business Permittee.

A. Any person, including, but not limited to, any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, in which any of the following actions or notices have been issued for noncompliance, shall not be eligible to obtain a Cannabis Business Permit from the City or employment with a Cannabis Business Permittee in the City:

1. The Applicant has been denied a cannabis permit (excluding an Applicant that did not receive a permit in another jurisdiction due solely to a limited and / or set number of permits and / or licenses), or has had a cannabis permit or license suspended or revoked by any city, county, city and county, or any other state cannabis licensing authority;

2. The Applicant was notified by the state, county, or city that it was conducting cannabis activity in violation of City ordinances, codes, and requirements, and failed to cure the violation in a timely manner;

3. Evidence that 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;

4. No person shall be issued a Cannabis Business Permit if such person enters or has entered into either a verbal or written agreement to lease, sublease, or any other agreement for any terms of use of a premises granted by a property owner, commercial broker, or any third party, that is in violation of Section 7.04.070 unless that property is leased at fair market value. Any such lease, sublease, or agreement shall not contain terms or conditions requiring the Cannabis Business Permittee to pay the property owner, commercial broker, or any third party a percentage of gross receipts, royalties, equity, or other unreasonable compensation as determined by the City. In addition, all leases, subleases, or other agreements must be based on a monthly rate.

7.04.100 Maximum number and type of authorized cannabis businesses permitted.

This section is only intended to create a maximum number and types of cannabis businesses that may be issued permits to operate in the City.
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A. After the effective date of this Ordinance, the City shall only issue Cannabis Business Permits (consistent with this chapter) for up to four Retailers, including microbusinesses that include storefront retail activities. There is no limit on the number of Cannabis Business Permits that the City may issue to testing laboratories or microbusinesses that do not include storefront retail.

B. Each year following the City Council’s initial grant of Permits (if any), or at any time in the City Council’s discretion, the City Council may reassess the number of Cannabis Business Permits which are authorized for issuance and may make changes to the number by resolution.

C. The City Council at its sole discretion may determine that the number and / or types of Cannabis Business Permits should remain the same or be modified.

7.04.110 Community benefits.

A. The application process for a Cannabis Business Permit shall include a component on community benefits, the terms of which shall be set out and memorialized in a community benefit agreement.

B. Any community benefits that a cannabis business agrees to provide shall be incorporated into the terms and conditions under which the cannabis business will operate with the City’s approval, if and when a Cannabis Business Permit is issued. Such terms and conditions shall be in addition to the requirements of this chapter.

C. Community benefits may include but will not be limited to: in-kind donations; sponsorship of select community events; financial support for special community events such as fairs, afterschool programs, youth centers, local schools (whether public or private); school athletic programs; school clubs; community centers, homeless shelters, senior centers and / or senior living facilities, and / or parks and recreation programs.

7.04.120 City’s reservation of rights.

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 person, party, firm, or organization, to the extent permitted under State law. Persons submitting applications assume the risk that all or any part of the request for applications, or any particular category of permit potentially authorized under this chapter, may 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 chapter, an application may be rejected for any of the following reasons:

A. The Cannabis Business Permit application was received after the designated time and date of the deadline.

B. The Cannabis Business Permit application did not contain the required elements, exhibits, or was not organized in the required format.

C. The Cannabis Business Permit application was considered not fully responsive to the request for a permit application – that is, the application was substantially incomplete as determined by the City Manager.
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7.04.130 Procedure guidelines and review criteria to evaluate Cannabis Business Permit applications.

A. By resolution, the City Council shall adopt procedures and review criteria for the City’s evaluation of Cannabis Business Permit applications. A Cannabis Business Permit application shall be required prior to review and approval of any land use entitlement, business license or other City authorization.

B. The procedures shall provide the process for soliciting applications including time frames, limitations, forms, and rules for completing applications.

C. Should the City Council, pursuant to authority granted under Section 7.04.100 of this Code, establish a maximum number of cannabis businesses that may be issued a Cannabis Business Permit, the review criteria shall include detailed instructions on the methodology to be used to evaluate applications on a point, or other evaluation system, tied to particular sets of criteria.

D. The scoring on review criteria shall be used to determine which candidates will be eligible to proceed to the final selection process as determined by City Council resolution.

E. The City Manager shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the procedures guidelines and review criteria.

F. At the time of filing, each Applicant shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the application process.

7.04.140 Exercise of a Cannabis Business Permit.

A Cannabis Business Permit shall be exercised within 12 months of issuance. “Exercised” shall mean when any of the following occur: 1. A certificate of occupancy has been issued;

2. The permitted use(s) has commenced on the site; or

3. A City building permit or grading permit is secured, and construction lawfully commenced.

7.04.150 Continuous Use Requirement.

A. Once the permitted cannabis use is legally established and operational, the use must remain in continuous operation or all use rights are subject to termination. If a permitted use ceases to operate for a period of four or more months, then the use shall be considered abandoned unless a mitigating circumstance occurred that was beyond the control of the Permittee and an extension is authorized by the City Manager.

B. The approval of a new use shall terminate all rights and approvals of a Cannabis Business Permit occupying the same site or location.

7.04.160 Term of a Cannabis Business Permit.

All Cannabis Business Permits issued under the provisions of this chapter shall be effective for a period not to exceed one year. The City Manager may renew a Permit through the procedures identified in section 7.04.180 of this Code.

7.04.170 Reapplying for a Cannabis Business Permit.

If an Applicant is denied a Cannabis Business Permit due to a disqualifying factor such as failing a background check or not complying with any state or local jurisdiction’s regulatory requirements in which legal or administrative action has been taken, a new application may not 60139.00154\34785981.10
be filed for two years from the date of the denial. This section shall not apply to an Applicant who passed the initial application screening process but was not granted a Cannabis Business Permit by the City Council.

7.04.180 Term and Renewal of Cannabis Business Permits.

A. All licenses issued under the provisions of this chapter shall be effective for a period not to exceed one year. The City Manager may renew a permit through the procedures identified in this section.

B. An application for renewal of a Cannabis Business Permit shall be filed at least 90 calendar days prior to the expiration date of the current Permit, but no earlier than 180 calendar days prior to the expiration date of the current Permit, unless a different time period is set forth by the City Manager.

C. The renewal application shall contain all the information required for new applications.

D. 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 chapter.

E. An application for renewal of a Cannabis Business Permit shall be rejected if any of the following exists:

1. The application is filed less than 90 days before its expiration unless the City Manager, at the City Manager’s sole discretion, approves an extension of the deadline.

2. The Cannabis Business Permit is suspended or revoked at the time of the renewal application.

3. 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 City Manager.

4. The cannabis business has failed to conform to the requirements of the Cannabis Business Permit or this chapter or any regulations adopted pursuant to this chapter.

5. The Permittee fails or is unable to renew its State of California license.

6. 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.

F. The City Manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager 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. Appeals from the decision of the City Manager shall be conducted as prescribed by resolution of the City Council and shall be subject to a fee as established by resolution of the City Council. If a renewal Cannabis Business Permit application is denied, a person may file a new application pursuant to this chapter no sooner than one year from the date of the denial.
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7.04.190 Revocation of permits.

A Cannabis Business Permit may be revoked by the City Manager for any violation of any state or local laws, rules, standards, policies, procedures, or regulations in this chapter relating to cannabis, or any violation of the applicable community benefit agreement.

7.04.200 Effect of state license suspension.

Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the City until the State of California or its respective department or division reinstates or reissues the state license.

7.04.210 Effect of state revocation.

Revocation of a license issued by the State of California, or by any of its departments or divisions, shall immediately revoke the ability of a cannabis business to operate within the City until the State of California or its respective department or division takes appropriate action.

Should the State revoke a license, the cannabis business owner may reapply for a new Cannabis Business Permit at such time as it can demonstrate that the grounds for revocation of the license by the State no longer exist or that the underlying deficiency has otherwise been cured.

7.04.220 Appeals.

Appeals relating to denial of a Cannabis Business Permit application; denial of advancement to the final selection process; to revocation or suspension a Cannabis Business Permit; to denial of renewal of a Cannabis Business Permit; or the addition of conditions to a Cannabis Business Permit shall be conducted as prescribed by resolution of the City Council and shall be subject to a fee as established by resolution of the City Council.

7.04.230 Change in location – Updated application form.

A. Any time the business location specified in the Cannabis Business Permit is proposed to be changed, the Permittee and / or Applicant shall submit an updated application to the City Manager for approval prior to the change in location.

B. Within 15 calendar days of any other change in the information provided in the updated application form or any change in status of compliance with the provisions of this chapter, including any change in the cannabis business ownership or management members, the Applicant shall file an updated application with the City Manager for review along with an application fee.

7.04.240 Transfer of Cannabis Business Permit.

A. The owner of a Cannabis Business Permit shall not transfer ownership or control of the permit to another person or entity unless and until the transferee obtains a written and executed amendment to the permit from the City Manager stating that the transferee is now the Permittee.

Such an amendment may be obtained only if the transferee files a Cannabis Business Permit application with the City Manager in accordance with all provisions of this chapter (as though the transferee were applying for an original Cannabis Business Permit). The proposed transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee). The transferee’s application will be treated as a new application, and will be evaluated according to procedures 60139.00154\34785981.10
adopted by the City Manager, pursuant to Section 7.04.130, and / or by resolution of the City Council.

B. Cannabis Business Permits issued through the grant of a transfer by the City Manager shall be valid for a period of one year beginning on the day the City Manager approves the transfer of the permit. Before the transferee’s Permit expires, the transferee shall apply for a renewal Permit and pay the appropriate fee in the manner required by this chapter.

C. A Cannabis Business Permit shall not be transferred when the City has notified the Permittee in writing that the Permit has been or may be suspended or revoked.

D. Any attempt to transfer a Cannabis Business Permit either directly or indirectly in violation of this section is hereby declared a violation of the Permit and this ordinance. Such a purported transfer shall be deemed a ground for revocation of the Permit.

E. This section shall not apply to the extent the current owners are attempting to add a new and / or additional owner whose ownership interest is less than 50% of the business, but all other remaining owners shall remain in place. Any new and / or additional ownership, however, shall require written approval by the City Manager in accordance with procedures adopted by the City Manager and / or by resolution of the City Council. Failure to obtain such approval prior to adding a new owner will result in a violation of the permit and this chapter, and shall be deemed a ground for revocation.

7.04.250 City business license.

Prior to commencing operations, a cannabis business shall obtain a City business license as required under Chapter 4.02.

7.04.260 Building permits and inspections.

Prior to commencing operations, a Cannabis Business Permit shall be subject to a mandatory building inspection and must obtain all required permits and approvals which would otherwise be required for any business of the same size and intensity operating in that zone. This includes, but is not limited to, obtaining any required building permit(s), Fire Department approval, Code Enforcement approvals, Department of Development Services approval, Sheriff’s Department approval, County of San Diego health department approval, and any other applicable zoning and land use permit(s) and approvals.

7.04.270 Authorization from the Director.

Prior to commencing operations, a cannabis business must obtain authorization from the Director, certifying that the business is located on a site that meets all of the requirements of Sections 7.04.260, 7.04.280, and 7.04.290.

7.04.280 Right to occupy and to use property.

Prior to the City’s issuance of a Cannabis Business Permit pursuant to this chapter, any person intending to open and to operate a cannabis business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. Such evidence may include a notarized lease, notarized real estate records, and / or other notarized official records that demonstrate a legal right to occupy. If the proposed location will be leased from the property owner, the Applicant shall be required to provide a signed and notarized statement from the owner of the 60139.00154\34785981.10
property, acknowledging that the property owner has read this chapter and consents to the operation of the cannabis business on the owner’s property.

7.04.290 Zoning and location requirements for cannabis businesses.

Cannabis businesses permitted to engage in retail, distribution, manufacturing, testing labs, and microbusiness operations for cannabis and cannabis products are subject to the following zoning and locational requirements:

A. Distribution, manufacturing, testing laboratories and microbusiness that do not include storefront retail activities are only permitted in the following zone districts: IL (Light Industrial) and IG (General Industrial), and must satisfy all the applicable requirements set forth in Title 13 of this Code.

B. Retail businesses (including microbusinesses that include storefront retail activities but do not include cultivation) are only permitted in the following zone districts: IL (Light Industrial), IG (General Industrial), and GC (General Commercial), and must meet all the requirements pursuant to Title 13 of this code.

Land Use Designation
Land Use GC IL IG
Distribution, manufacturing -- P P
Microbusinesses with storefront retail and
without cultivation
P P P
Microbusinesses with
cultivation
-- P P
Storefront Retail P P P
Non-storefront Retail -- P P
Testing Labs -- P P
C. All Cannabis Business Permittees must also meet all of the following distance requirements:

1. The cannabis business shall be no closer than 900 feet from any zoned parcel in the City designated by the City and state law as a sensitive use, and pursuant to subsection C.2 of this section. The distance measured shall be the horizontal distance measured in a straight line from the property line of those parcels in subsection C.2 of this section to the closest property line of the lot on which the cannabis business is located. 60139.00154\34785981.10

2. It shall be no closer than 900 feet from any parcel containing any of the following that is in existence at the time the license is issued:
a. A school providing instruction in kindergarten or any grades one through 12 (whether public, private, or charter, including preschool, transitional kindergarten, and K – 12);
b. A commercial daycare center licensed by the state, county or City; c. A church or other religious institution; and
d. A youth center. A “youth center” means any public or private facility that is primarily used to host recreation, academic, or social activities for minors, including, but not limited to:
i. Private youth membership organizations or clubs;
ii. Social service teenage club facilities;
iii. Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business; or iv. Similar amusement park facilities.
“Youth center” shall also include a park, playground, or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball, or any similar facility located on a public or private school grounds, or on City, county, or state parks.
“Youth center” shall not include any private martial arts, yoga, ballet, dance, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children, or a location which is primarily utilized as an administrative office, or a facility for youth programs or organizations.

D. Each proposed cannabis business shall also:

1. Conform with the City’s General Plan, any applicable specific plan, master plan, and design requirements.

2. Comply with all applicable zoning and related development standards.

3. Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

4. Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development.

5. Be served by roadways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate.

6. Be provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose.
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7.04.300 Limitations on City’s liability.

To the fullest extent permitted by law, the City shall not assume any liability whatsoever with respect to having issued a Cannabis Business Permit pursuant to this chapter or otherwise approving the operation of any cannabis business. As a condition to the approval of any Cannabis Business Permit, the Applicant shall be required to meet all of the following conditions before they can receive the Cannabis Business Permit:

A. Execute an agreement, in a form approved by the City Attorney, agreeing to indemnify, defend (at Applicant’s sole cost and expense), release, and hold the City, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses which arise out of, or which are in any way related to, the City’s issuance of the Cannabis Business Permit, the City’s decision to approve the operation of the cannabis business or activity, the process used by the City in making its decision, or the alleged violation of any federal, state or local laws by the cannabis business or any of its officers, employees or agents.

B. Take out and maintain, at all times while operating the cannabis business, and in a form and with insurance companies acceptable to the City: (1) Commercial General Liability Insurance with a limit of no less than $2,000,000 per occurrence and $4,000,000 aggregate for bodily injury (including death), personal injury and property damage; and (2) if Permittee or Permittee’s employees use vehicles in the operation of the business, Automobile Liability Insurance for bodily injury (including death) and property damage including coverage for owned, non-owned and hired vehicles, with a limit of no less than $1,000,000 per occurrence. The City of Santee, its City Council and each member thereof, its officers, employees, and agents shall be named as an additional insured on the Commercial General Liability policy. If Permittee maintains higher limits than the minimum required above, the City requires and shall be entitled to coverage for the higher limits maintained by Permittee. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City. Insurance requirements may be adjusted from time to time by the City Manager.

C. Reimburse the City for all costs and expenses, including but not limited to legal fees and costs and court costs, which the City may be required to pay as a result of any legal challenge related to the City’s approval of the applicant’s Cannabis Business Permit or related to the City’s approval of a cannabis activity. The City, at its sole discretion, may participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed on Applicant hereunder.

7.04.310 Records and recordkeeping.

A. Each owner and operator of a cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a Cannabis Business Permit issued pursuant to this chapter), or at any time upon reasonable request of the City, each cannabis business shall file a sworn statement detailing the number of sales by the cannabis business during the previous 12-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’s 60139.00154\34785981.10
operations conducted by an independent certified public accountant. Each Permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City Manager.

B. Each owner and operator of a cannabis business shall maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in the cannabis business, and separately of all the officers, managers, employees, agents, and volunteers currently employed or otherwise engaged by the cannabis business. The register required by this subsection shall be provided to the City Manager upon a reasonable request.

C. All cannabis businesses shall maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing, production, manufacturing, retail, and laboratory testing processes (as applicable) until purchase as set forth in the MAUCRSA.

7.04.320 Security measures.

A. A Cannabis Business Permittee shall implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products and to deter and prevent the theft of cannabis or cannabis products at the cannabis business. Except as may otherwise be determined by the City Manager, these security measures shall include, but shall not be limited to, all of the following:

1. Perimeter fencing and exterior lighting systems (including motion sensors) for afterhours security as approved by the Director in collaboration with the Sheriff’s Department, as applicable.

2. Preventing individuals from remaining on the premises of the cannabis business if they are not engaging in an activity directly related to the permitted operations of the cannabis business; in cases in which the individual will not voluntarily leave the premises in violation of applicable law the cannabis employee shall contact the Sheriff’s Department.

3. Establishing limited access areas accessible only to authorized cannabis business personnel.

4. Except for limited amounts of cannabis or cannabis products being used for display purposes in retail areas, all finished goods at a commercial cannabis business shall be stored in a secured and locked vault or vault-equivalent during non-operating hours. All safes and vaults used to store cash and / or cannabis goods shall be compliant with Underwriters Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products, including live clone plants that are being sold, shall be kept in a manner as to prevent diversion, theft, and loss.

5. Installing 24-hour security surveillance cameras of at least high-definition (HD) quality to monitor all entrances and exits to and from the premises, all interior spaces within the cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash, or currency is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The cannabis business 60139.00154\34785981.10
shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the City Manager, and that it is compatible with the City’s software and hardware. In addition, if required by City, remote and real-time live access to the video footage from the cameras shall be provided to the Sheriff’s Department at the expense of the Permittee. Video recordings shall be maintained for a minimum of 120 days and shall be made available to the Sheriff’s Department upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis business and shall be capable of enlargement via projection or other means.

Internet protocol address information shall be provided to the Sheriff’s Department by the cannabis business, to facilitate remote monitoring of security cameras by the Sheriff’s Department. Each business shall have network security protocols that are certified by Underwriters Laboratories, LLC.

6. Sensors shall be installed to detect entry and exit from all secure areas and shall be monitored in real time by a security company licensed by the state of California Bureau of Security and Investigative Services.

7. Panic buttons shall be installed in all cannabis businesses with direct notification to the Sheriff’s Department dispatch and shall be configured to immediately alert dispatch for the Sheriff’s Department.

8. Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the state of California Bureau of Security and Investigative Services.

9. Any security measures, such as bars, installed on the windows or the doors of the cannabis business shall be installed only on the interior of the building.

10. Security personnel shall be on site 24 hours a day or alternative security as authorized by the City Manager and must have a verified response security patrol when closed.

Security personnel must be licensed by the state of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager, with such approval not to be unreasonably withheld.

11. Each cannabis business shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.

12. Entrance areas are to remain under the control of a designated responsible party that is either: (a) an employee of the cannabis business; or (b) a licensed security professional.

13. Each cannabis business shall have an accounting software system in place to provide point-of-sale data as well as audit trails for both product and cash, where applicable.

14. Each cannabis business shall demonstrate to the City Manager compliance with the state’s track and trace system for cannabis and cannabis products as soon as it is operational.

15. Each cannabis business shall have a professionally installed video surveillance system, access control and intrusion alarm systems designed to protect the inventory, facility, and employees. Each business shall have network security protocols that are certified by Underwriters Laboratories, LLC.
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16. Exterior vegetation shall be planted, altered, and maintained in a fashion that precludes its use as a hiding place for persons on the premises.

17. Emergency access and emergency evacuation plans that are in compliance with state and local fire safety standards.

18. Installation of “mosquitos” (high-pitch frequency devices) as a deterrent to vandalism / loitering.

B. Each cannabis business shall identify a designated security representative / liaison to the City, who shall be reasonably available to meet with the City Manager regarding any security related measures or operational issues. The designated security representative / liaison shall, on behalf of the cannabis business, annually maintain a copy of the current security plan on the premises of the business, to present to the City Manager upon request that meets the following requirements:

1. Confirms that a designated manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.

2. Identifies all managers of the cannabis business and their contact phone numbers.

3. Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.

4. Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.

5. Identifies a sufficient number of licensed, interior and exterior security personnel who will monitor individuals inside and outside the cannabis business, the parking lot, any adjacent property under the business’s control, and ensure that the parking lot is cleared of employees and their vehicles one-half hour after closing.

C. As part of the application and permitting process each cannabis business shall have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, any hazardous materials that may be used by the business, and any currency.

D. The cannabis business shall cooperate with the City whenever the City Manager makes a request, with or without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this chapter.

E. A cannabis business shall notify the City Manager within 24 hours after discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

2. Diversion, theft, loss, or any criminal activity involving the cannabis business or any agent or employee of the cannabis business.

3. The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the cannabis business.

4. Any other breach of security.
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F. Compliance with the foregoing requirements shall be verified by the City Manager prior to commencing business operations. Upon renewal, the City Manager or Sheriff’s Department may supplement these security requirements once operations begin, subject to review by the City Manager if requested by the business owner.

7.04.330 Fees and charges.

A. No person may commence or continue any cannabis activity in the City, without timely paying in full all fees and charges required for the operation of a cannabis activity. Fees and charges associated with the operation of a cannabis activity shall be established by resolution of the City Council which may be amended from time to time, and shall be subject to adjustment in accordance with the Consumer Price Index.

B. All cannabis businesses authorized to operate under this chapter shall pay all sales, use, business and other applicable taxes, and all license, registration, and other fees required under federal, state, and local law. Each cannabis business shall cooperate with City with respect to any reasonable request to audit the cannabis business’s books and records for the purpose of verifying compliance with this section, including but not limited to a verification of the amount of taxes or fees required to be paid during any period.

C. Prior to operating in the City and as a condition of issuance of a Cannabis Business Permit, the operator of each cannabis facility shall enter into an operational or community benefit agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of this chapter, including, but not limited to, public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety, and welfare.

7.04.340 General operating requirements.

A. Cannabis businesses may operate only during the hours specified in the Cannabis Business Permit issued by the City. No person under the age of 21 shall operate or be issued a permit for a cannabis business of any kind.

B. Restriction on Sales and Consumption. Cannabis shall not be consumed by any person on the premises of any cannabis business. No person shall cause or permit the sale, dispensing, or consumption of alcoholic beverages or tobacco on or about the premises of the cannabis business.

C. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a Cannabis Business Permit, or on any of the vehicles owned or used as part of the cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.

D. Reporting and Tracking of Product and of Gross Sales. Each cannabis business shall have in place a point-of-sale or management inventory tracking system to track and report on all aspects of the cannabis business including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the City. The cannabis business shall ensure that such information is compatible with the City’s recordkeeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the City Manager prior to being used by the Permittee. 60139.00154\34785981.10
E. All cannabis and cannabis products sold, distributed, or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the state and local regulations.

F. Emergency Contact. Each cannabis business shall provide the City Manager with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.

G. Signage and Notices.

1. In addition to the requirements otherwise set forth in this section, business identification signage for a cannabis business shall conform to the requirements of Chapter 13.32 (Signs) of this code, including, but not limited to, seeking the issuance of a City sign permit, if applicable.

2. No signs placed on the premises of a cannabis business shall obstruct any entrance or exit to the building or any window.

3. Each entrance to a cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, vaping, or otherwise consuming cannabis on the premises or in the areas adjacent to the cannabis business is prohibited. The sign shall be no larger than two feet by two feet.

4. Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. No cannabis business shall advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the cannabis business or elsewhere including, but not limited to, the public right-of-way.

5. Signage shall not depict any image of cannabis or cannabis products. No permanent banners, flags, temporary billboards, or other prohibited signs may be used at any time.

H. Minors.

1. Persons under the age of 21 years shall not be allowed on the premises of a cannabis business and shall not be allowed to serve as a driver for a mobile delivery service. It shall be unlawful and a violation of this chapter for any person to employ any person at a cannabis business who is not at least 21 years of age.

2. Notwithstanding subsection H.1 of this section, persons aged 18 to 20 years shall be allowed on the premises of a cannabis business if they can produce a valid physician’s recommendation or a medical marijuana card issued pursuant to Health and Safety Code Section 11362.71. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the valid physician’s recommendation.

3. The entrance to the cannabis business shall be clearly and legibly posted with a notice that no person under the age of 21 years of age is permitted to enter upon the premises of the cannabis business.

I. Odor Control. Odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off site. Cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated 60139.00154\34785981.10
inside the cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis business. As such, cannabis businesses must obtain a building permit and install and maintain the following equipment, or any other equipment which the Director determines is a more effective method or technology:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

2. An air system that creates negative air pressure between the cannabis business’s interior and exterior, so that the odors generated inside the cannabis business are not detectable on the outside of the cannabis business.

J. Display of Permit and City Business License. The original copy of the Cannabis Business Permit issued by the City pursuant to this chapter and the City-issued business license shall be posted inside the cannabis business in a location readily visible to the public.

K. Annual Background Check. Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), which authorizes City authorities to access state and local summary criminal history information for cannabis employment, licensing, or certification purposes and authorizes access to federal level criminal history information by transmitting fingerprint images and related information to the Department of Justice to be transmitted to the Federal Bureau of Investigation, every person listed as an owner, investor, manager, supervisor, employee, contract employee or who otherwise works in a cannabis business must submit fingerprints and other information deemed necessary by the Sheriff’s Department, Licensing Division for a background check by the Sheriff’s Department. Pursuant to California Penal Sections 11105(b)(11) and 13300(b)(11), which requires that there be a requirement or exclusion from cannabis employment, licensing or certification based on specific criminal conduct on the part of the subject of the record, no person shall be issued a permit to operate a cannabis business or be allowed to work in a cannabis business unless they have first cleared the background check, as determined by the Sheriff’s Department as required by this section. A fee for the cost of the background investigation, which shall be the actual cost to the City to conduct the background investigation as it deems necessary and appropriate, shall be paid at the time the application for a Cannabis Business Permit is submitted. Evidence of a conviction of any of the offenses enumerated in Business and Professions Code Section 26057(b)(4), absent a Certificate of Rehabilitation, shall be grounds for immediate disqualification of the applicant.

L. Loitering. The owner and / or operator of a cannabis business shall prohibit loitering by persons outside the facility both on the premises and within 100 feet of the premises. The cannabis business shall notify the Sheriff’s Department if anyone continues to loiter around the building or premises in violation of applicable law after all reasonable action has been taken to remove the individual(s) and the action has failed to do so in a timely manner.

M. Permits and Other Approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis 60139.00154\34785981.10
business intends to establish and to operate pursuant to Section 7.04.290 and all applicable requirements in this chapter.

N. Each cannabis operator shall establish minimum training standards for all employees. The City Manager shall have the discretion to require other training for the business operations should the City identify deficiencies or noncompliance issues with City or state requirements.

7.04.350 Amendments to general operating requirements.

The City Manager may develop other cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety, and welfare.

7.04.360 Operating requirements for retail store front facilities.

A. No more than the number of cannabis retailers adopted by City Council resolution may operate within the City at any one time and shall be issued a Cannabis Business Permit by the City.

B. Retailers shall verify the age and all necessary documentation of each individual to ensure the customer is not under the age of 18 years. If the potential customer is 18 to 20 years old, retailer shall confirm the customer’s possession of a valid doctor’s recommendation and / or Health and Safety Code Section 11362.71 identification card (medical marijuana card). For adult-use purchases, retailers shall verify that all customers are 21 years of age or older for the purchase of cannabis or cannabis products.

C. Individuals must show their government-issued identification, and, in the case of medical cannabis facilities, their physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71 in order to gain access into the retailer. The government-issued identification and, if applicable, doctor’s recommendation or cannabis card must also be shown at the point-of-sale station at the time of purchase. Doctor recommendations are not to be obtained or provided at the retail location.

D. Uniformed licensed security personnel shall be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. The security personnel shall be at least 21 years of age and shall be licensed by the Bureau of Security and Investigative Services and shall comply with Chapters 11.4 and 11.5 of Division 3 of the Business and Professions Code. Security personnel may be allowed to carry firearms if authorized by Bureau of Security and Investigative Services.

E. Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on site in the retail sales area of the retailer. Additional product may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

F. All restrooms used by the public shall remain locked and under the control of management.

G. Retailers authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this chapter.

1. The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.

2. Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.
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3. No cannabis goods shall be sold and / or delivered by any means or method to any person within a motor vehicle.

4. All cannabis goods sold by a retail business shall be contained in child-resistant packaging.

5. Retailers shall record point-of-sale areas and areas where cannabis goods are displayed for sale on the video surveillance system. At each point-of-sale location, camera placement must allow for the recording of the facial features of any person purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to determine identity.

H. Access to Retailer Premises.

1. Access to the premises of a retail Permittee shall be limited to individuals who are at least 21 years of age.

2. Notwithstanding subsection H.1 of this section, individuals who are at least 18 years of age and in possession of a valid physician’s recommendation shall be granted access to the premises of a retail Permittee for the sole purpose of purchasing medicinal cannabis consistent with the physician’s recommendation.

I. Authorized Sales. A retailer shall only sell adult-use cannabis and adult-use cannabis products to individuals who are at least 21 years of age. A retailer shall only sell medicinal cannabis or medicinal cannabis products to individuals who are at least 18 years of age, but not yet 21, if those individuals are in possession of a valid physician’s recommendation. Medicinal cannabis sales to individuals 21 years of age and older are unrestricted.

J. Limited Access Areas. A retailer shall establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by the retailer as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. All individuals granted access to the limited access area shall be at least 21 years of age, and if not employed by the retailer, shall be escorted at all times by an employee of the Permittee. A retailer shall maintain a log of all individuals who are not employees who are granted access to the limited access area. These logs shall be made available to the City Manager or the Sheriff’s Department upon request.

K. Operating hours of the store front retailer license shall be limited to the hours of nine a.m. through nine p.m., seven days a week.

L. Store front / Retail Security Requirements. All provisions incorporated within Section 7.04.320, Security measures, are directly applicable to and binding on all cannabis businesses, including all store front / retail businesses.

7.04.370 Retailer, non-store front retailer, and microbusiness delivery requirements.

A. Retailers, non-store front retailers (delivery), and microbusinesses owners and operators are required to verify the age and the necessary documentation of each customer. They must ensure that medical customers are at least 18 years of age and verify that the customer has a valid doctor’s recommendation. Doctor recommendations are not to be obtained or provided at the retail location. In the case of adult-use customers, they must verify that the customer is at least 21 years of age. Sales shall only be made to persons matching this criteria. 60139.00154\34785981.10
B. All store front retailers, non-store front retailers (delivery), and microbusinesses which conduct deliveries into or within the City of Santee shall be required to obtain a permit from the City of Santee in order to conduct retail sales regardless, if they are located in the City or another local jurisdiction.

C. Operating hours of the non-store front retailer Permittee or out of town retail delivery services shall be limited to the hours of nine a.m. through nine p.m., seven days a week.

7.04.380 Retailer, non-store front retailer and microbusiness delivery vehicle requirements.

Prior to commencing delivery operations, a cannabis retailer, cannabis non-store front retailer and microbusiness shall provide the following information to the City:

A. Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

B. The year, make, model, color, license plate number, and numerical vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

C. Proof of insurance as required in Section 7.04.300.B for any and all vehicles being used to deliver cannabis goods.

D. The Permittee shall provide the City with the information required by this section in writing for any new vehicle that will be used to deliver cannabis goods prior to using the vehicle to deliver cannabis goods.

E. The Permittee shall provide the City with any changes to the information required by this section in writing within 30 calendar days.

7.04.390 Operating requirements for distributors.

A. A distributor shall not store noncannabis products or noncannabis accessories that are to be sold to another party on any licensed or permitted premises. Additionally, a distributor shall not distribute noncannabis products or noncannabis accessories at a licensed premises. For the purposes of this section, noncannabis products are any goods that do not meet the definition of cannabis goods as defined in Title 16, Division 42, Section 5000(c) of the California Code of Regulations.

B. After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing. The determination of which cannabis goods are to be included in the sample for laboratory testing shall be left to the sole discretion of the laboratory employee.

C. A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor’s premises.

D. The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.

E. A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the 60139.00154\34785981.10
recording kept available to the state and the City for a minimum of 180 days, pursuant to Title 16, Division 42, Section 5305 of the California Code of Regulations.

F. A distributor shall not transport cannabis or cannabis products to a licensed retail facility until and unless it has verified that the cannabis or cannabis products have been tested and certified by a testing lab as being in compliance with state health and safety requirements pursuant to Title 16, Division 42, Sections 5705, 5710 and 5714 of the California Code of Regulations.

7.04.400 Operating requirements for testing labs.

A. Testing labs shall be required to conduct all testing in a manner pursuant to Business and Professions Code Section 26100 and shall be subject to state and local law. Each testing lab shall be subject to additional regulations as determined from time to time as more regulations are developed under this chapter and any subsequent state of California legislation regarding the same.

B. Testing labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.

C. All cannabis testing laboratories performing testing shall obtain and maintain ISO / IEC 17025 accreditation as required by the Bureau of Cannabis Control.

D. Testing labs shall destroy any harvest batch whose testing sample indicates noncompliance with health and safety standards required by the Bureau unless remedial measures can bring the cannabis or cannabis products into compliance with quality standards as specified by law and implemented by the Bureau.

E. Each operator shall ensure that a testing laboratory employee takes the sample of cannabis or cannabis products from the distributor’s premises for testing required by state law and that the testing laboratory employee transports the sample to the testing laboratory.

F. Except as provided by state law, a testing laboratory shall not acquire or receive cannabis or cannabis products except from a licensee in accordance with state law, and shall not distribute, sell, or dispense cannabis, or cannabis products, from the licensed premises from which the cannabis or cannabis products were acquired or received. All transfer or transportation shall be performed pursuant to a specified chain of custody protocol.

G. A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A testing lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received.

7.04.410 Operating requirements for cannabis manufacturing A. Cannabis manufacturing shall only be permitted pursuant to Section 7.04.070 or any subsequent created manufacturing state license as defined in MAUCRSA and may be permitted to operate only within those zone districts as defined in the Santee Municipal Code.

B. Any compressed gases used in the manufacturing process shall not be stored on any property within the City in containers that exceeds the amount which is approved by the Fire Department 60139.00154\34785981.10
and authorized by the regulatory permit. Each site or parcel subject to a Cannabis Business Permit shall be limited to a total number of tanks as authorized by the Fire Department on the property at any time.

C. Cannabis manufacturing facilities may use heat, screens, presses, steam distillation, ice water, ethanol, and other methods without employing solvents or gases to create keef, hashish, bubble hash, or infused dairy butter, or oils or fats derived from natural sources, and other extracts.

D. If an extraction process uses a professional grade closed loop CO2 gas extraction system every vessel must be certified by the manufacturer for its safe use as referenced in subsection F of this section. The CO2 must be of at least 99 percent purity.

E. Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.

F. Certification from an engineer licensed by the state of California, or by a certified industrial hygienist, must be provided to the City for a professional grade closed loop system used by any cannabis manufacturing manufacturer to certify 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:

1. The American Society of Mechanical Engineers (ASME);

2. American National Standards Institute (ANSI);

3. Underwriters Laboratories, LLC (UL); or

4. The American Society for Testing and Materials (ASTM).

G. The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.

H. Professional closed loop systems, other equipment used, the extraction operation, and facilities must be approved for their use by the Fire Department and meet any required fire, safety, and building code requirements specified in the California Building Reference Codes.

J. Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.

K. Any person using solvents or gases in a closed looped system to create cannabis extracts must be fully trained on how to use the system, have direct access to applicable material safety data sheets to handle, and store the solvents and gases safely.

L. Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested.
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7.04.420 Operating requirements for delivery services.

Prior to commencing operations, a cannabis out-of-City delivery service shall comply with the following requirements:

A. Obtain from the City a permit authorizing the delivery of cannabis and cannabis products within the City limits. A copy of this permit shall be retained by all drivers.

B. The retail business operating the delivery service shall provide the City Manager with evidence of a valid state license for a cannabis business on whose authorization the delivery service is performing the delivery function.

C. The retail business operating the delivery service shall furnish to the City Manager the year, make, model, license plate number, and numerical vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

7.04.430 Permissible delivery locations and customers.

Cannabis delivery businesses located outside of the City permitted to engage in delivery of cannabis and cannabis products inside the City are subject to the following requirements:

A. A licensed cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

B. A licensed cannabis business shall comply with all requirements of state and local law pertaining to the Cannabis Business Permit and all subsequent policies, procedures and regulations which may be amended by the City Manager from time to in order to enforce this chapter.

C. Any kiosk, iPad, tablet, smart phone, fixed location, or technology platform, whether manned or unmanned, other than a retail location permitted by the City, that facilitates, directs, or assists the retail sale or delivery of cannabis or cannabis products is prohibited and shall be a violation of this chapter.

7.04.440. Operating Requirements for Microbusinesses.

The requirements set forth in Sections 7.04.360 through 7.04.430 apply to microbusinesses, to the extent that the microbusiness is engaging in the specified activity.

7.04.450 Promulgation of regulations, standards and other legal duties.

A. In addition to any regulations adopted by the City Council, the City Manager is authorized to establish 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 chapter.

B. Regulations shall be published on the City’s website.

C. Regulations promulgated by the City Manager shall become effective upon date of publication. Cannabis businesses shall be required to comply with all state and local laws and regulations, including but not limited to any rules, regulations or standards adopted by the City Manager.
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7.04.460 Community relations.

A. Each cannabis business shall provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with the cannabis business can be provided. Each cannabis business shall also provide the above information to all businesses and residences located within 100 feet of the cannabis business.

B. During the first year of operation pursuant to this chapter, the owner, manager, and community relations representative from each cannabis business holding a permit issued pursuant to this chapter shall attend meetings with the City Manager, and other interested parties as deemed appropriate by the City Manager, to discuss costs, benefits, and other community issues arising as a result of implementation of this chapter. After the first year of operation, the owner, manager, and community relations representative from each such cannabis business shall meet with the City Manager when and as requested by the City Manager.

C. Cannabis businesses to which a Cannabis Business Permit is issued pursuant to this chapter shall develop a City approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction.

7.04.470 Fees deemed debt to the City.

The amount of any fee, cost or charge imposed pursuant to this chapter shall be deemed a debt to the City that is recoverable via an authorized administrative process as set forth in the City ordinance or in any court of competent jurisdiction.

7.04.480 Permit holder responsible for violations.

The person to whom a Cannabis Business Permit is issued pursuant to this chapter shall be responsible for all violations of the laws of the state of California or of the regulations and / or the ordinances of the City, whether committed by the Permittee or any employee or agent of the Permittee, which violations occur in or about the premises of the cannabis business whether or not said violations occur within the permit holder’s presence.

7.04.490 Inspection and enforcement.

A. The Enforcement Officer 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 chapter or under applicable provisions of state law.

B. It is unlawful for any person having responsibility over the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to allow the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this chapter 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 chapter or under state or local law.

C. The Enforcement Officer may enter the location of a cannabis business at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. Any samples obtained by the City shall be logged, recorded, and maintained in accordance with established procedures by the City Manager or these regulations. 60139.00154\34785981.10

7.04.500 Violations declared a public nuisance.

Each and every violation of the provisions of this chapter constitutes a misdemeanor and is hereby deemed unlawful and a public nuisance. The City reserves the right to pursue any available legal remedy to address violations of this chapter.

7.04.510 No vested rights.

No person(s) (including any Applicant, owner, and / or Permittee) shall have any vested rights to any permit, right, and / or interest under this chapter, regardless of whether such person(s) cultivated, sold, distributed, and / or otherwise engaged in acts related to the use of cannabis prior to the adoption of the ordinance codified in this chapter.

7.04.520 Civil penalties.

A. In addition to the enforcement and fines described herein, the City Attorney may bring a civil action for injunctive relief and civil penalties pursuant to Chapter 1.04 of this code against any owner who violates this chapter. In any civil action brought pursuant to this chapter, the court may award reasonable attorneys’ fees and costs to the prevailing party.

B. The City may pursue any other legal remedy to enforce or collect any fines or amounts owed as set forth herein.
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DRAFT Santee Cannabis Business Ordinance
Chapter 7.04 – Cannabis Businesses

7.04.010 Title.

This chapter shall be known as the Cannabis Business Permit Ordinance of the City of Santee.

7.04.020 Purpose and intent.

7.04.030 Legal authority.

7.04.040 Cannabis cultivation and cannabis activities prohibited unless specifically authorized by this chapter.

7.04.050 Compliance with state and local laws and regulations.

Cannabis shall also have the same meaning as in Section 26001(f) of the Business and Professions Code, as same may be amended from time to time. “Cannabis Business Permit” or “Permit” means a regulatory permit issued by the City pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the City. The issuance of the Cannabis Business Permit and annual renewal of a Cannabis Business Permit is made expressly contingent upon the business’ ongoing compliance with all of the requirements of this chapter and any regulations adopted by the City governing the commercial cannabis activity at issue. “Cannabis Business Permittee” or “Permittee” means a person or entity that has received a Cannabis Business Permit from the City as authorized under this chapter. “Caregiver” or “primary caregiver” has the same meaning as that term is defined in Health and Safety Code Section 11362.7.
“City Manager” means the City Manager or designee.
“Commercial cannabis business” means any business or operation which engages in medicinal or adult-use commercial cannabis activity.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. All references to cultivation allowed under this chapter mean indoor cultivation only.
“Director” shall mean the Director of Development Services or designee. “Dispensing” means any activity involving the retail sale of cannabis or cannabis products from a retailer.
“Distributor” shall have the same meaning as that appearing in Business and Professions Code Section 26070.
“Enforcement Officer” means any designee authorized by the City Manager to enforce a violation of this chapter.
“Hearing Officer” shall mean an authorized hearing officer designated by the City Manager. 60139.00154\34943557.134785981.10
“Laboratory” means a laboratory, facility or entity in the state that offers or performs tests of cannabis or cannabis products and that is both of the following: (1) accredited by an accrediting body that is independent from all other persons involved in commercial cannabis activity in the state; and (2) licensed by the State Department of Cannabis Control within the Business, Consumer Services, and Housing Agency.
“Limited-access area” means an area in which cannabis is stored or held and is only accessible to a licensee and authorized personnel.
“Manufactured cannabis” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, extraction or other manufactured product intended for internal consumption through inhalation or oral ingestion or for topical application.
“Manufacturing site” means a location that produces, prepares, propagates, or compounds cannabis or cannabis products, directly or indirectly, by extraction methods, independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis, and is owned and operated by a person issued a valid Cannabis Business Permit for manufacturing from the City and a valid state license as required for manufacturing of cannabis products. “Medicinal cannabis” means cannabis or a cannabis product, respectively, intended to be sold or donated for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found in Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation, or in compliance with any compassionate use, equity, or other similar program administered by a local jurisdiction. “Microbusiness” shall have the same meaning as that contained in Business and Professions Code Section 26001(aj).. Microbusinesses that engage in cultivation of cannabis may only engage in cultivation of cannabis on an area less thanmeans a business that engages in at least three of the following activities at one location: indoor cultivation (up to 10,000 total square feet), manufacturing, distribution, or retail (storefront or non-storefront). “Non-store front retailer” is a subset of “retailer” and is a licensed retail business that is closed to the public and provides product to customers solely by means of a delivery service which the retailer owns and controls.
“Nonvolatile solvent” means any solvent used in the extraction process that is not a volatile solvent as defined by state law. For purposes of this chapter, nonvolatile solvents include carbon dioxide, ethanol, and nonhydrocarbon-based or other solvents such as water, vegetable glycerin, vegetable oil, animal fat, and glycerin.
“Owner” means any of the following:

1. A person with an aggregate ownership interest of 10 percent or more in the commercial cannabis business, unless the interest is solely a security, lien, or encumbrance.

2. An individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:
(a) A member of the board of directors of a nonprofit.
(b) A general partner of a commercial cannabis business that is organized as a partnership.
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(c) A non-member manager or manager of a commercial cannabis business that is organized as a limited liability company.
(d) The trustee(s) and all persons who have control of the trust and / or the commercial cannabis business that is held in trust.
(e) An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.
(f) An individual with the authority to execute contracts on behalf of the commercial cannabis business.
“Patient” or “qualified patient” shall have the same meaning as that contained in California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which includes within its definition a person who is entitled to the protections of California Health and Safety Code Section 11362.22.
“Person” shall mean any individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit.
“Person with an identification card” shall have the same meaning as that contained in California Health and Safety Code Section 11362.7.
“Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis and nonmanufacturednon-manufactured cannabis products. “Retailer” or “store front retailer” shall have the same meaning as that contained in Business and Professions Code Section 26070(a)(1)., which defines a retailer as having a physical location form which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusive by delivery. “Sheriff” means the Sheriff of the County of San Diego. “State license” means a permit or license issued by the state of California, or one of its departments or divisions, under the MAUCRSA and any subsequent related state of California legislation, to engage in cannabis activity. A state license alone will not authorize the holder to operate a cannabis business, as state law also requires a permit or other authorization issued by a local jurisdiction.
“Topical cannabis” means a product intended for external application and / or absorption through the skin. A topical cannabis product is not considered a drug as defined by Health and Safety Code Section 109925.
“Transport” means the transfer of cannabis products from the permitted business location of one licensee to the permitted business location of another licensee, for the purposes of conducting cannabis activity authorized by the MAUCRSA which may be amended or repealed by any subsequent related state of California legislation. Transport can only be performed by licensed distributors and does not include deliveries of cannabis or cannabis products. 60139.00154\34943557.134785981.10
“Volatile solvent” means a solvent as defined by Health and Safety Code Section 11362.3(b)(3) as of the effective date of this chapter and as subsequently amended. “Youth center” means any:

7.04.070 Cannabis Business Permit and City Business License required to engage in cannabis business.

D. Possesses a City business license.

7.04.080 Evidence of cannabis owners and / or employees background check required.

A. Any person who is an owner, employee, agent, and / or who otherwise works within a cannabis business must be legally authorized to do so under applicable state law.

B. Cannabis business owners, operators, investors, managers, and employees shall be required to submit to a criminal background check for themselves and all persons in their employment.

C. The City Manager shall conduct or cause to be conducted annual criminal background checks which must at a minimum identify the following:
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D. Evidence of a conviction of any the offenses enumerated in subsection C of this section shall be grounds for denial of ownership or employment.

7.04.090 Personnel prohibited from holding a license or from employment with a Cannabis Business Permittee.

3. Evidence that 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;

7.04.100 Maximum number and type of authorized cannabis businesses permitted.

This section is only intended to create a maximum number and types of cannabis businesses that may be issued permits to operate in the City.

A. After the effective date of this Ordinance, the City shall only issue Cannabis Business Permits (consistent with this chapter) for up to four Retailers, including microbusinesses that include storefront retail activities. There is no limit on the number of Cannabis Business Permits that the City may issue to testing laboratories or microbusinesses that do not include storefront retail.

C. The City Council at its sole discretion may determine that the number and / or types of Cannabis Business Permits should remain the same or be modified.

7.04.110 Community benefits.

A. The application process for a Cannabis Business Permit shall include a component on community benefits, the terms of which shall be set out and memorialized in a community benefit agreement.

7.04.120 City’s reservation of rights.

A. The Cannabis Business Permit application was received after the designated time and date of the deadline.

B. The Cannabis Business Permit application did not contain the required elements, exhibits, or was not organized in the required format.
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C. The Cannabis Business Permit application was considered not fully responsive to the request for a permit application – that is, the application was substantially incomplete as determined by the City Manager.

7.04.130 Procedure guidelines and review criteria to evaluate Cannabis Business Permit applications.

B. The procedures shall provide the process for soliciting applications including time frames, limitations, forms, and rules for completing applications.

D. The scoring on review criteria shall be used to determine which candidates will be eligible to proceed to the final selection process as determined by City Council resolution.

E. The City Manager shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the procedures guidelines and review criteria.

F. At the time of filing, each Applicant shall pay an application fee established by resolution of the City Council to cover all costs incurred by the City in the application process.

7.04.140 Exercise of a Cannabis Business Permit.

A Cannabis Business Permit shall be exercised within 12 months of issuance. “Exercised” shall mean when any of the following occur: 1. A certificate of occupancy has been issued;

2. The permitted use(s) has commenced on the site; or

3. A City building permit or grading permit is secured, and construction lawfully commenced.

7.04.150 Continuous Use Requirement.

B. The approval of a new use shall terminate all rights and approvals of a Cannabis Business Permit occupying the same site or location.

7.04.160 Term of a Cannabis Business Permit.

7.04.170 Reapplying for a Cannabis Business Permit.

If an Applicant is denied a Cannabis Business Permit due to a disqualifying factor such as failing a background check or not complying with any state or local jurisdiction’s regulatory requirements in which legal or administrative action has been taken, a new application may not be filed for one yeartwo years from the date of the denial. This section shall not apply to an Applicant who passed the initial application screening process but was not granted a Cannabis Business Permit by the City Council.

7.04.180 Term and Renewal of Cannabis Business Permits.

C. The renewal application shall contain all the information required for new applications.

E. An application for renewal of a Cannabis Business Permit shall be rejected if any of the following exists:

1. The application is filed less than 90 days before its expiration unless the City Manager, at the City Manager’s sole discretion, approves an extension of the deadline.

2. The Cannabis Business Permit is suspended or revoked at the time of the renewal application.

3. 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 City Manager.

4. The cannabis business has failed to conform to the requirements of the Cannabis Business Permit or this chapter or any regulations adopted pursuant to this chapter.

5. The Permittee fails or is unable to renew its State of California license.

F. The City Manager is authorized to make all decisions concerning the issuance of a renewal permit. In making the decision, the City Manager 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. Appeals from the decision of the City Manager shall be conducted as prescribed by resolution of the City Council 60139.00154\34943557.134785981.10
and shall be subject to a fee as established by resolution of the City Council. If a renewal Cannabis Business Permit application is denied, a person may file a new application pursuant to this chapter no sooner than one year from the date of the denial.

7.04.190 Revocation of permits.

7.04.200 Effect of state license suspension.

7.04.210 Effect of state revocation.

7.04.220 Appeals.

7.04.230 Change in location – Updated application form.

7.04.240 Transfer of Cannabis Business Permit.

Such an amendment may be obtained only if the transferee files a Cannabis Business Permit application with the City Manager in accordance with all provisions of this chapter (as though the transferee were applying for an original Cannabis Business Permit). The proposed 60139.00154\34943557.134785981.10
transferee’s application shall be accompanied by a transfer fee in an amount set by resolution of the City Council (or if not set, shall be the same amount as the application fee). The transferee’s application will be treated as a new application, and will be evaluated according to procedures adopted by the City Manager, pursuant to Section 7.04.130, and / or by resolution of the City Council.

C. A Cannabis Business Permit shall not be transferred when the City has notified the Permittee in writing that the Permit has been or may be suspended or revoked.

7.04.250 City business license.

Prior to commencing operations, a cannabis business shall obtain a City business license as required under Chapter 4.02.

7.04.260 Building permits and inspections.

7.04.270 Authorization from the Director.

7.04.280 Right to occupy and to use property.

Prior to the City’s issuance of a Cannabis Business Permit pursuant to this chapter, any person intending to open and to operate a cannabis business shall first provide sufficient evidence of the legal right to occupy and to use the proposed location. Such evidence may include a notarized lease, notarized real estate records, and / or other notarized official records that demonstrate a 60139.00154\34943557.134785981.10
--
legal right to occupy. If the proposed location will be leased from the property owner, the Applicant shall be required to provide a signed and notarized statement from the owner of the property, acknowledging that the property owner has read this chapter and consents to the operation of the cannabis business on the owner’s property.

7.04.290 Location and design ofZoning and location requirements for cannabis businesses.

A. Distribution, manufacturing, testing laboratories and microbusiness that do not include non-store frontstorefront retail activities are only permitted in the following zone districts: IL (Light Industrial) and IG (General Industrial), and must satisfy all the applicable requirements set forth in Title 13 of this Code.

B. Retail store front businesses (including microbusinesses that include storefront retail activities but do not include cultivation) are only permitted in the following zone districts: IL (Light Industrial), IG (General Industrial), and GC (General Commercial), and must meet all the requirements pursuant to Title 13 of this code.

P
Distribution, manufacturing
P
--
Storefront Retail P
P
P
Land Use
P
P
Non-storefront Retail --
GC
P
Microbusinesses with storefront retail and without
cultivation
P
P
Testing Labs
IL
--
P
P P
P
C. All Cannabis Business Permittees must also meet all of the following distance requirements:

1. The cannabis business shall be no closer than 600900 feet from any zoned parcel in the City designated by the City and state law as a sensitive use, and pursuant to subsection C.2 of this section. The distance measured shall be the horizontal distance measured in a IG
Land Use Designation
Microbusinesses with
cultivation
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straight line from the property line of those parcels in subsection C.2 of this section to the closest property line of the lot on which the cannabis business is located.

2. It shall be no closer than 600900 feet from any parcel containing any of the following that is in existence at the time the license is issued:
a. A school providing instruction in kindergarten or any grades one through 12 (whether public, private, or charter, including preschool, transitional kindergarten, and K – 12);
b. A commercial daycare center licensed by the state, county or City which is in existence at the time the license is issued unless the state licensing authority or the City specifies a greater radius.;
c. A church or other religious institution; and
cd. A youth center that is in existence prior to the submittal of the initial cannabis application or at the time the license is issued, unless the state licensing authority or the City specifies a greater radius. A “youth center” means any public or private facility that is primarily used to host recreation, academic, or social activities for minors, including, but not limited to:
i. Private youth membership organizations or clubs;
ii. Social service teenage club facilities;
iii. Video arcades where 10 or more video games or game machines or devices are operated, and where minors are legally permitted to conduct business; or iv. Similar amusement park facilities.
“Youth center” shall also include a park, playground, or recreational area specifically designed to be used by children which has play equipment installed, including public grounds designed for athletic activities such as baseball, softball, soccer, or basketball, or any similar facility located on a public or private school grounds, or on City, county, or state parks.
“Youth center” shall not include any private martial arts, yoga, ballet, dance, music, art studio or similar studio of this nature nor shall it include any private gym, athletic training facility, pizza parlor, dentist office, doctor’s office primarily serving children, or a location which is primarily utilized as an administrative office, or a facility for youth programs or organizations.

D. Each proposed cannabis business shall also:

1. Conform with the City’s General Plan, any applicable specific plan, master plan, and design requirements.

2. Comply with all applicable zoning and related development standards.

3. Be constructed in a manner that minimizes odors to surrounding uses, and promotes quality design and construction, and consistency with the surrounding properties.

4. Be adequate in size and shape to accommodate the yards, walls, fences, parking and loading facilities, landscaping and all items required for the development. 60139.00154\34943557.134785981.10

5. Be served by roadways adequate in width and improved as necessary to carry the kind and quantity of traffic such use will generate.

6. Be provided with adequate electricity, sewerage, disposal, water, fire protection and storm drainage facilities for the intended purpose.

7.04.300 Limitations on City’s liability.

B. Maintain insurance at coverage limits, and with conditions thereon determined necessary and appropriate from time to time by the City Manager.

7.04.310 Records and recordkeeping.

A. Each owner and operator of a cannabis business shall maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of a 60139.00154\34943557.134785981.10
Cannabis Business Permit issued pursuant to this chapter), or at any time upon reasonable request of the City, each cannabis business shall file a sworn statement detailing the number of sales by the cannabis business during the previous 12-month period (or shorter period based upon the timing of the request), provided on a per-month basis. The statement shall also include gross sales for each month, and all applicable taxes and fees paid or due to be paid. On an annual basis, each owner and operator shall submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each Permittee shall be subject to a regulatory compliance review and a gross receipts financial audit, where applicable, as determined by the City Manager.

7.04.320 Security measures.

1. Perimeter fencing and exterior lighting systems (including motion sensors) for after-hours security as approved by the Director in collaboration with the Sheriff’s Department, as applicable.

3. Establishing limited access areas accessible only to authorized cannabis business personnel.

5. Installing 24-hour security surveillance cameras of at least high-definition (HD) quality to monitor all entrances and exits to and from the premises, all interior spaces within the 60139.00154\34943557.134785981.10
cannabis business which are open and accessible to the public, all interior spaces where cannabis, cash, or currency is being stored for any period of time on a regular basis, and all interior spaces where diversion of cannabis could reasonably occur. All cameras shall record in color. All exterior cameras shall be in weather-proof enclosures, shall be located so as to minimize the possibility of vandalism, and shall have the capability to automatically switch to black and white in low light conditions. The cannabis business shall be responsible for ensuring that the security surveillance camera’s footage is remotely accessible by the City Manager, and that it is compatible with the City’s software and hardware. In addition, if required by City, remote and real-time live access to the video footage from the cameras shall be provided to the Sheriff’s Department at the expense of the Permittee. Video recordings shall be maintained for a minimum of 90120 days and shall be made available to the Sheriff’s Department upon request. Video shall be of sufficient quality for effective prosecution of any crime found to have occurred on the site of the cannabis business and shall be capable of enlargement via projection or other means.

8. Having a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the state of California Bureau of Security and Investigative Services.

9. Any security measures, such as bars, installed on the windows or the doors of the cannabis business shall be installed only on the interior of the building.

10. Security personnel shall be on site 24 hours a day or alternative security as authorized by the City Manager and must have a verified response security patrol when closed.

12. Entrance areas are to remain under the control of a designated responsible party that is either: (a) an employee of the cannabis business; or (b) a licensed security professional.

13. Each cannabis business shall have an accounting software system in place to provide point-of-sale data as well as audit trails for both product and cash, where applicable. 60139.00154\34943557.134785981.10

14. Each cannabis business shall demonstrate to the City Manager compliance with the state’s track and trace system for cannabis and cannabis products as soon as it is operational.

16. Exterior vegetation shall be planted, altered, and maintained in a fashion that precludes its use as a hiding place for persons on the premises.

17. Emergency access and emergency evacuation plans that are in compliance with state and local fire safety standards.

18. Installation of “mosquitos” (high-pitch frequency devices) as a deterrent to vandalism / loitering.

1. Confirms that a designated manager will be on duty during business hours and will be responsible for monitoring the behavior of employees.

2. Identifies all managers of the cannabis business and their contact phone numbers.

3. Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the manager’s office.

E. A cannabis business shall notify the City Manager within 24 hours after discovering any of the following:
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1. Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager.

2. Diversion, theft, loss, or any criminal activity involving the cannabis business or any agent or employee of the cannabis business.

3. The loss or unauthorized alteration of records related to cannabis, customers or employees or agents of the cannabis business.

4. Any other breach of security.

F. Compliance with the foregoing requirements shall be verified by the City Manager prior to commencing business operations. Upon renewal, the City Manager or Sheriff’s Department may supplement these security requirements once operations begin, subject to review by the City Manager if requested by the business owner.

7.04.330 Fees and charges.

7.04.340 General operating requirements.

C. No cannabis or cannabis products or graphics depicting cannabis or cannabis products shall be visible from the exterior of any property issued a Cannabis Business Permit, or on any of the 60139.00154\34943557.134785981.10
vehicles owned or used as part of the cannabis business. No outdoor storage of cannabis or cannabis products is permitted at any time.

E. All cannabis and cannabis products sold, distributed, or manufactured shall be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the state and local regulations.

G. Signage and Notices.

2. No signs placed on the premises of a cannabis business shall obstruct any entrance or exit to the building or any window.

5. Signage shall not depict any image of cannabis or cannabis products. No permanent banners, flags, temporary billboards, or other prohibited signs may be used at any time.

H. Minors.

2. Notwithstanding subsection H.1 of this section, persons aged 18 to 20 years shall be allowed on the premises of a cannabis business if they can produce a valid physician’s 60139.00154\34943557.134785981.10
recommendation or a medical marijuana card issued pursuant to Health and Safety Code Section 11362.71. In that event, such persons can lawfully purchase cannabis for the sole purpose of addressing the medical need that is the subject of the valid physician’s recommendation.

I. Odor Control. Odor control devices and techniques shall be incorporated in all cannabis businesses to ensure that odors from cannabis are not detectable off site. Cannabis businesses shall provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside the cannabis business that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the cannabis business. As such, cannabis businesses must obtain a building permit and install and maintain the following equipment, or any other equipment which the Director determines is a more effective method or technology:

1. An exhaust air filtration system with odor control that prevents internal odors from being emitted externally;

M. Permits and Other Approvals. Prior to the establishment of any cannabis business or the operation of any such business, the person intending to establish a cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such cannabis business intends to establish and to operate pursuant to Section 7.04.290 and all applicable requirements in this chapter.

7.04.350 Amendments to general operating requirements.

The City Manager may develop other cannabis business operational requirements or regulations as are determined to be necessary to protect the public health, safety, and welfare.

7.04.360 Operating requirements for retail store front facilities.

A. No more than the number of cannabis retailers adopted by City Council resolution may operate within the City at any one time and shall be issued a Cannabis Business Permit by the City.

E. Retailers may have only that quantity of cannabis and cannabis products to meet the daily demand readily available for sale on site in the retail sales area of the retailer. Additional product 60139.00154\34943557.134785981.10
may be stored in a secured, locked area to which customers, vendors, and visitors shall not have access.

F. All restrooms used by the public shall remain locked and under the control of management.

G. Retailers authorized to conduct retail activities shall only serve customers who are within the licensed premises, or at a delivery address that meets the requirements of this chapter.

1. The sale and delivery of cannabis goods shall not occur through a pass-through window or a slide-out tray to the exterior of the premises.

2. Retailers shall not operate as or with a drive-in or drive-through at which cannabis goods are sold to persons within or about a motor vehicle.

3. No cannabis goods shall be sold and / or delivered by any means or method to any person within a motor vehicle.

4. All cannabis goods sold by a retail business shall be contained in child-resistant packaging.

H. Access to Retailer Premises.

1. Access to the premises of a retail Permittee shall be limited to individuals who are at least 21 years of age.

K. Operating hours of the store front retailer license shall be limited to the hours of nine a.m. through nine p.m., seven days a week.
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L. Store front / Retail Security Requirements. All provisions incorporated within Section 7.04.320, Security measures, are directly applicable to and binding on all cannabis businesses, including all store front / retail businesses.

7.04.370 Retailer, non-store front retailer, and microbusiness delivery requirements.

B. All store front retailers, non-store front retailers (delivery), and microbusinesses which conduct deliveries into or within the City of Santee shall be required to obtain a permit from the City of Santee in order to conduct retail sales regardless, if they are located in the City or another local jurisdiction.

C. Operating hours of the non-store front retailer licensePermittee or out of town retail delivery services shall be limited to the hours of nine a.m. through nine p.m., seven days a week.

7.04.380 Retailer, non-store front retailer and microbusiness delivery vehicle requirements.

Prior to commencing delivery operations, a cannabis retailer, cannabis non-store front retailer and microbusiness shall provide the following information to the City:

A. Proof of ownership of the vehicle or a valid lease for any and all vehicles that will be used to deliver cannabis or cannabis products.

B. The year, make, model, color, license plate number, and numerical vehicle identification number (VIN) for any and all vehicles that will be used to deliver cannabis goods.

C. Proof of insurance as required in Section 7.04.300.B for any and all vehicles being used to deliver cannabis goods.

E. The Permittee shall provide the City with any changes to the information required by this section in writing within 30 calendar days.

7.04.390 Operating requirements for distributors.

B. After taking physical possession of a cannabis goods batch, the distributor shall contact a testing laboratory and arrange for a laboratory employee to come to the distributor’s licensed premises to select a representative sample for laboratory testing. The determination of which 60139.00154\34943557.134785981.10
cannabis goods are to be included in the sample for laboratory testing shall be left to the sole discretion of the laboratory employee.

C. A distributor shall ensure that all cannabis goods batches are stored separately and distinctly from other cannabis goods batches on the distributor’s premises.

D. The distributor shall ensure that the batch size from which the sample is taken meets the requirements of state law, specifically the testing provisions within the California Code of Regulations.

E. A distributor or an employee of the distributor shall be physically present to observe the laboratory employee obtain the sample of cannabis goods for testing and shall ensure that the increments are taken from throughout the batch. The sampling shall be video-recorded, and the recording kept available to the state and the City for a minimum of 180 days, pursuant to Title 16, Division 42, Section 5305 of the California Code of Regulations.

7.04.400 Operating requirements for testing labs.

B. Testing labs shall conduct all testing in a manner consistent with general requirements for the competence of testing and calibrations activities, including sampling using verified methods.

C. All cannabis testing laboratories performing testing shall obtain and maintain ISO / IEC 17025 accreditation as required by the Bureau of Cannabis Control.

G. A testing laboratory may receive and test samples of cannabis or cannabis products from a qualified patient or primary caregiver only if the qualified patient or primary caregiver presents the qualified patient’s valid physician’s recommendation for cannabis for medicinal purpose. A 60139.00154\34943557.134785981.10
testing lab shall not certify samples from a qualified patient or primary caregiver for resale or transfer to another party or licensee. All tests performed by a testing laboratory for a qualified patient or primary caregiver shall be recorded with the name of the qualified patient or primary caregiver and the amount of the cannabis or cannabis products received.

B. Any compressed gases used in the manufacturing process shall not be stored on any property within the City in containers that exceeds the amount which is approved by the Fire Department and authorized by the regulatory permit. Each site or parcel subject to a Cannabis Business Permit shall be limited to a total number of tanks as authorized by the Fire Department on the property at any time.

E. Closed loop systems for compressed gas extraction systems must be commercially manufactured and bear a permanently affixed and visible serial number.

1. The American Society of Mechanical Engineers (ASME);

2. American National Standards Institute (ANSI);

3. Underwriters Laboratories, LLC (UL); or

4. The American Society for Testing and Materials (ASTM).

G. The certification document must contain the signature and stamp of the professional engineer or industrial hygienist and serial number of the extraction unit being certified.

I. Cannabis manufacturing facilities may use non-volatile solvents, including carbon dioxide, ethanol, and nonhydrocarbon-based or other solvents such as water, vegetable glycerin, vegetable oil, animal fat, and glycerin to create or refine extracts. Ethanol should be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. 60139.00154\34943557.134785981.10
J. Cannabis manufacturing facilities creating cannabis extracts must develop standard operating procedures, good manufacturing practices, and a training plan prior to producing extracts for the marketplace.

L. Parts per million for one gram of finished extract cannot exceed state standards for any residual solvent or gas when quality assurance tested.

7.04.420 Operating requirements for delivery services.

Prior to commencing operations, a cannabis out-of-City delivery service shall comply with the following requirements:

A. Obtain from the City a permit authorizing the delivery of cannabis and cannabis products within the City limits. A copy of this permit shall be retained by all drivers.

7.04.430 Permissible delivery locations and customers.

Cannabis delivery businesses located outside of the City permitted to engage in delivery of cannabis and cannabis products inside the City are subject to the following requirements:

A. A licensed cannabis business shall not deliver cannabis goods to an address located on publicly owned land or any address on land or in a building leased by a public agency.

7.04.440. Operating Requirements for Microbusinesses.

The requirements set forth in Sections 7.04.360 through 7.04.430 apply to microbusinesses, to the extent that the microbusiness is engaging in the specified activity.

7.04.450 Promulgation of regulations, standards and other legal duties.

A. In addition to any regulations adopted by the City Council, the City Manager is authorized to establish any additional rules, regulations and standards governing the issuance, denial or renewal of Cannabis Business Permits, the ongoing operation of cannabis businesses and the 60139.00154\34943557.134785981.10
City’s oversight, or concerning any other subject determined to be necessary to carry out the purposes of this chapter.

B. Regulations shall be published on the City’s website.

7.04.460 Community relations.

7.04.470 Fees deemed debt to the City.

7.04.480 Permit holder responsible for violations.

7.04.490 Inspection and enforcement.

B. It is unlawful for any person having responsibility over the operation of a cannabis business, to impede, obstruct, interfere with, or otherwise not to allow the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a cannabis business under this chapter or under state or local law. It is also unlawful for a person to conceal, 60139.00154\34943557.134785981.10
destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a cannabis business under this chapter or under state or local law.

7.04.500 Violations declared a public nuisance.

7.04.510 No vested rights.

7.04.520 Civil penalties.

B. The City may pursue any other legal remedy to enforce or collect any fines or amounts owed as set forth herein.
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ORDINANCE NO. _____

AN ORDINANCE OF THE PEOPLE OF THE CITY OF
SANTEE, CALIFORNIA ADDING CHAPTER 4.27
(CANNABIS BUSINESS TAX) TO TITLE 4 OF THE SANTEE

MUNICIPAL CODE ESTABLISHING A TAX ON

CANNABIS AND HEMP BUSINESS ACTIVITIES WITHIN

THE CITY

NOW THEREFORE, THE PEOPLE OF THE CITY OF SANTEE DO ORDAIN AS FOLLOWS:

SECTION 1. CODE AMENDMENT. Subject to the approval of a majority of the voters of the City of Santee at the Regular Municipal Election so designated by the City Council in a separate resolution placing the proposal on the ballot for such election, Chapter 4.27 is added to Title 4 of the Santee Municipal Code to read as follows:

CHAPTER 4.27

4.27.010 Title.

4.27.020 Authority and purpose.

4.27.030 Intent.

4.27.040 Definitions.

4.27.050 Tax imposed.

4.27.060 Registration, reporting, and remittance of tax.

4.27.070 Payments and communications – timely remittance.

4.27.080 Payment – when taxes deemed delinquent.

4.27.090 Notice not required by City.

4.27.100 Penalties and interest.

4.27.110 Refunds and credits.

4.27.120 Refund procedures.

4.27.130 Personal cultivation not taxed.

4.27.140 Administration of the tax.

4.27.150 Appeal procedures.

4.27.160 Enforcement – action to collect.

4.27.170 Apportionment.

4.27.180 Constitutionality and legality.

4.27.190 Audit and examination of premises and records.

4.27.200 Other licenses, permits, taxes or charges.

4.27.210 Payment of tax does not authorize unlawful business.

4.27.220 Deficiency determinations.

4.27.230 Failure to report – nonpayment, fraud.

4.27.240 Tax assessment – notice requirements.

4.27.250 Tax assessment – hearing, application, and determination.

4.27.260 Relief from taxes – disaster relief.

4.27.270 Conviction for violation – taxes not waived.

4.27.280 Violation deemed misdemeanor.
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4.27.290 Severability.

4.27.300 Remedies cumulative.

4.27.310 Amendment or modification.

4.27.010 Title.

This ordinance shall be known as the Cannabis Business Tax Ordinance. This ordinance shall be applicable in the City of Santee, California which shall be referred to herein as “City.”

4.27.020 Authority and Purpose.

The purpose of this Ordinance is to adopt a tax, for revenue purposes, pursuant to the City Charter and Sections 37101 and 37100.5 of the California Government Code, upon cannabis and hemp businesses that engage in business in the City. The Cannabis Business Tax is levied based upon business gross receipts except for commercial cannabis cultivation or commercial industrial hemp cultivation which shall be taxed on square footage. It is not a sales and use tax, a tax upon income, or a tax upon real property and shall not be calculated or assessed as such. The Cannabis Business Tax shall not be separately identified or otherwise specifically assessed or charged to any member, customer, patient, or caretaker. The Cannabis Business Tax is a general tax enacted solely for general, governmental purposes of the City and not for specific purposes. All of the proceeds from the tax imposed by this chapter shall be placed in the City's general fund and be available for any lawful City purpose.

4.27.030 Intent.

The intent of this Ordinance is to levy a tax on all cannabis or industrial hemp businesses that operate in the City, regardless of whether such business would have been legal at the time this chapter was adopted. Nothing in this chapter shall be interpreted to authorize or permit any business activity that would not otherwise be legal or permissible under laws applicable to the activity at the time the activity is undertaken.

4.27.040 Definitions.

The following words and phrases shall have the meanings set forth below when used in this chapter:

A. An “arm’s length transaction” is a sale entered into in good faith and for valuable consideration that reflects the fair market value in the open market between two informed and willing parties, neither under any compulsion to participate in the transaction.

B. “Business” shall include all activities engaged in or caused to be engaged in within the City, including any commercial or industrial enterprise, trade, profession, occupation, vocation, calling, or livelihood, whether or not carried on for gain or profit, but shall not include the services rendered by an employee to his or her employer.

C. “Calendar year” means January 1 through December 31, of the same year. 60139.00154\40117339.5
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D. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” shall not include “industrial hemp,” unless otherwise specified.

E. “Cannabis product” means raw cannabis that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Cannabis product” also means cannabis products as defined by Section 11018.1 of the California Health and Safety Code and is not limited to medicinal cannabis products.

F. “Canopy” means all areas occupied by any portion of a cannabis or industrial hemp plant whether contiguous or noncontiguous on any one site. When plants occupy multiple horizontal planes (as when plants are placed on shelving above other plants) each plane shall be counted as a separate canopy area.

G. “Cannabis business” means any business activity involving cannabis or industrial hemp, including but not limited to cultivating, transporting, distributing, manufacturing, compounding, converting, processing, preparing, storing, packaging, delivering, testing, dispensing, retailing and wholesaling of cannabis, cannabis products, industrial hemp, industrial hemp products or of ancillary products and accessories, whether or not carried on for gain or profit.

H. Cannabis business permit” means a permit issued by the City to a person to authorize that person to operate a cannabis business or engage in business as a cannabis business within the City.

I. “Cannabis business tax” means the tax due pursuant to this chapter for engaging in a cannabis business in the City.

J. “Commercial cannabis cultivation” means cultivation of cannabis or industrial hemp undertaken in the course of conducting a cannabis business.

K. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis or industrial hemp and includes, but is not limited to, the operation of a nursery.

L. “Employee” means each and every person engaged in the operation or conduct of any business, whether as owner, member of the owner's family, partner, associate, agent, manager or solicitor, and each and every other person employed or working in such business for a wage, salary, commission, barter or any other form of compensation.

M. “Engaged in business as a cannabis business” means the commencing, conducting, operating, managing or carrying on of a cannabis business, whether done as owner, or by means of an officer, agent, manager, employee, or otherwise, whether operating from a fixed location in the City or coming into the City from an outside location to engage in such activities. A person shall be deemed engaged in business within the City if:
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1. Such person or person’s employee maintains a fixed place of business within the City for the benefit or partial benefit of such person;

2. Such person or person’s employee owns or leases real property within the City for business purposes;

3. Such person or person’s employee regularly maintains a stock of tangible personal property in the City for sale in the ordinary course of business;

4. Such person or person’s employee regularly conducts solicitation of business within the City; or

5. Such person or person’s employee performs work or renders services in the City.

The foregoing specified activities shall not be a limitation on the meaning of “engaged in business.”
N. “Evidence of doing business” means evidence such as, without limitation, use of signs, circulars, cards or any other advertising media, including the use of internet or telephone solicitation, or representation to a government agency or to the public that such person is engaged in a cannabis business in the City.

O. “Gross Receipts,” except as otherwise specifically provided, means, whether designated as a sales price, royalty, rent, membership fee, ATM service fee, delivery fee, slotting fee, any other fee, commission, dividend, or other designation, the total amount (including all receipts, cash, credits, services and property of any kind or nature) received or payable for sales of goods, wares or merchandise, or for the performance of any act or service of any nature for which a charge is made or credit allowed (whether such service, act or employment is done as part of or in connection with the sale of goods, wares, merchandise or not), without any deduction therefrom on account of the cost of the property sold, the cost of materials used, labor or service costs, interest paid or payable, losses or any other expense whatsoever. In the event the business is involved in a “non-arm’s length transaction” the gross receipts will be subject to the fair market value using a methodology approved by the Tax Administrator. However, the following shall be excluded from Gross Receipts:

1. Cash discounts where allowed and taken on sales;

2. Any tax required by law to be included in or added to the purchase price and collected from the consumer or purchaser;

3. Such part of the sale price of any property returned by purchasers to the seller as refunded by the seller by way of cash or credit allowances or return of refundable deposits previously included in gross receipts;

4. Receipts derived from the occasional sale of used, obsolete or surplus trade 60139.00154\40117339.5
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fixtures, machinery or other equipment used by the taxpayer in the regular course of the taxpayer's business;

5. Cash value of sales, trades or transactions between departments or units of the same business located in the City of Santee and if authorized by the Tax Administrator in writing in accordance with Section 4.27.140 (B);

6. Whenever there are included within the gross receipts amounts which reflect sales for which credit is extended and such amount proved uncollectible in a subsequent year, those amounts may be excluded from the gross receipts in the year they prove to be uncollectible; provided, however, if the whole or portion of such amounts excluded as uncollectible are subsequently collected they shall be included in the amount of gross receipts for the period when they are recovered;

7. Receipts of refundable deposits, except that such deposits when forfeited and taken into income of the business shall not be excluded;

8. Retail sales of non-cannabis products, such as t-shirts, sweaters, hats, stickers, key chains, bags, books, posters, rolling papers, cannabis accessories such as pipes, pipe screens, vape pen batteries (without cannabis or industrial hemp) or other personal tangible property which the Tax Administrator has excluded in writing by issuing an administrative ruling per Section 4.27.140 shall not be subject to the cannabis business tax under this chapter.

9. Payments made by the tax-reporting cannabis business (Seller) to a cannabis business (Buyer) for the difference in the original acquisition price and subsequent renegotiated or finalized selling price of products or services sold to a specific end customer. This type of transaction is referred to as a “Billback”. The tax-reporting cannabis business must provide supporting documentation to substantiate the transaction in order to be eligible for an exemption.

10. Any business which sells industrial hemp and/or hemp products or offers services or activities related to industrial hemp or hemp products and/or which is not required to obtain a cannabis or industrial hemp permit or license from the City or the State for the purpose of cultivating, growing, drying, curing, manufacturing, processing, packaging, transporting, distributing, testing or selling of industrial hemp either wholesale or retail shall be exempt from the cannabis tax provided that such business does not generate more than 50% of their total gross receipts in the reporting period from the business from industrial hemp activities. However, the exemption may be amended by the City Council by resolution or ordinance pursuant to Section 4.27.050 (B) to increase or decrease the percentage of the business’s hemp and/or hemp products gross receipts reporting from zero to one hundred percent. To the extent the gross receipts from the hemp activities do not meet the relevant percentage to be included, this exclusion shall reduce the gross receipts to zero for the sole purpose of calculating the cannabis tax.

P. “Industrial hemp” means a crop that is limited to types of the plant Cannabis sativa L. having no more than three-tenths of one percent (0.3%) tetrahydrocannabinol (“THC”) 60139.00154\40117339.5
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contained in the dried flowering tops, whether growing or not; the seeds of the plant; the resin extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin produced therefrom. However, should the federal or state legislative body increase or decrease the percentage of THC then this new limit shall be applicable to the tax unless modified by resolution or ordinance of the City Council pursuant to Section 4.27.310.

Q. “Industrial hemp products” means any raw hemp that has undergone a process whereby the raw agricultural product has been transformed into a concentrate, an edible product, or a topical product. “Hemp product” also means hemp products as defined by Section 11018.5 of the California Health and Safety Code.

R. “Lighting” means a source of light that is primarily used for promoting the biological process of plant growth. Lighting does not include sources of light that primarily exist for the safety or convenience of staff or visitors to the facility, such as emergency lighting, walkway lighting, or light admitted via small skylights, windows or ventilation openings.

S. “Medicinal cannabis” or “medicinal cannabis product” means cannabis or a cannabis product, intended to be sold or sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, for a medicinal cannabis patient in California who possesses a physician’s recommendation, or a cannabis card issued pursuant to Health and Safety Code Section 11362.71.

T. “Microbusiness” means a business that engages in at least three of the following activities at one location: indoor cultivation (up to 10,000 total square feet), manufacturing, distribution, or retail (storefront or non-storefront).

U. “Nursery” means a facility or part of a facility that is used only for producing clones, immature plants, seeds, and other agricultural products used specifically for the planting, propagation, and cultivation of cannabis or industrial hemp.

V. A “non-arm's length transaction” is a transaction that does not meet the definition of an “arm’s length transaction.” In other words, the transaction is not a sale that reflects fair market value in the open market. One example of a non-arm's length transaction would be when a cultivator sells cannabis goods to a cannabis distributor at a sales price that is lower than what the same cultivator would charge to other cannabis distributors, or which does not reflect the fair market value in the open market.

W. “Person” means an individual, firm, partnership, joint venture, association, corporation, limited liability company, estate, trust, business trust, receiver, syndicate, or any other group or combination acting as a unit, whether organized as a nonprofit or for-profit entity, and includes the plural as well as the singular number.

X. “Processing” means a cultivation site that conducts only trimming, drying, curing, grading, packaging, or labeling of cannabis, industrial hemp and non-manufactured cannabis products.

Y. “Retailer” means a person or business as defined in Section 4.27.040 (W) who sells 60139.00154\40117339.5
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cannabis, cannabis products, hemp and/or hemp products at their place of business or by delivery to an end user or customer for use or consumption rather than to another person or business for resale.

Z. “Sale” “Sell” and “to sell” means and includes any sale, exchange, or barter either as a retailer or wholesaler by a person or business as defined by Section 4.27.040 (W). It shall also mean any transaction whereby, for any consideration, title to cannabis, cannabis products, industrial hemp and/or industrial hemp products are transferred from one person to another and includes the delivery of cannabis, cannabis products, industrial hemp and/or industrial hemp products pursuant to an order placed for the purchase of the same, but does not include the return of cannabis, cannabis products, industrial hemp and/or industrial hemp products to the licensee from whom the cannabis, cannabis product, industrial hemp and/or industrial hemp product was purchased.

AA. “State” means the State of California.

AB. “State license,” “license,” or “registration” means a state license issued pursuant to California Business & Professions Code Section 26050, and all other applicable state laws, required for operating a cannabis business.

AC. “Tax Administrator” means the Finance Director of the City of Santee or his or her designee.

AD. “Testing Laboratory” means a cannabis business that (i) offers or performs tests of cannabis, cannabis products, industrial hemp and/or industrial hemp products (ii) offers no service other than such tests, (iii) sells no products, excepting only testing supplies and materials, (iv) is accredited by an accrediting body that is independent from all other persons involved in the cannabis industry in the state and (v) is registered with the Department of Cannabis Control or other state agency.

4.27.050 Tax Imposed.

A. Beginning January 1, 2023, there is imposed upon each person who is engaged in business as a cannabis business a cannabis business tax. Such tax is payable regardless of whether the person has been issued a commercial cannabis business permit to operate lawfully in the City or is operating unlawfully. The City’s acceptance of a cannabis business tax payment from a cannabis business operating illegally shall not constitute the City’s approval or consent to such illegal operations.

B. The City Council may, by resolution or ordinance, increase or decrease the rate of the cannabis business tax, including the initial rate of cannabis business tax. The City Council may, by resolution or ordinance, increase or decrease the rate of the medicinal cannabis business tax, including the initial rate of the medicinal cannabis business tax, independent of other cannabis business tax activities. In addition, the City Council may, by resolution or ordinance, increase or decrease the rate of the 60139.00154\40117339.5
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cannabis business tax on hemp or hemp products, including the initial rate of the tax on hemp or hemp products independent of other cannabis activities.

Notwithstanding the foregoing, in no event shall the City Council repeal this tax or set any adjusted rate that exceeds the maximum rates calculated pursuant to this chapter.

C. The maximum rate of the cannabis business tax shall be calculated as follows:

1. For every person engaged in commercial cannabis cultivation, including cultivation of industrial hemp, in the City:
a. Through January 1, 2026, the maximum annual rate shall be:
i. Ten dollars ($10.00) per square foot of canopy space in a facility that uses exclusively artificial lighting.
ii. Seven dollars ($7.00) per square foot of canopy space in a facility that uses a combination of natural and supplemental artificial lighting as defined in Section 4.27.040 (R) of this chapter. iii. Four dollars ($4.00) per square foot of canopy space in a facility that uses no artificial lighting.
iv. Two dollars ($2.00) per square foot of canopy space for any nursery. b. On January 1, 2026 and on each January 1, thereafter, the maximum annual tax rates specified in Subsection 4.27.050(C)(1)(a), shall increase by the percentage increase in the Consumer Price Index (“CPI”) for consumers in the Western Region as published by the United States Government Bureau of Labor Statistics. However, no CPI adjustment resulting in a decrease of any tax imposed by this subsection shall be made.

2. For every person engaged in the operation of a testing laboratory for cannabis, cannabis products, industrial hemp and/or industrial hemp products the person shall be subject to the maximum tax rate not to exceed two percent (2%) of gross receipts generated by that cannabis business activity.

3. For every person engaged in retail sales of cannabis, cannabis products, industrial hemp, and/or industrial hemp products, including as a retailer (dispensary) or non-storefront retailer (retail delivery business), or microbusiness, the person shall be subject to the maximum tax rate not to exceed six percent (6%) of gross receipts generated by that cannabis business activity.

4. For every person engaged in distribution of cannabis, cannabis products, industrial hemp and/or industrial hemp products, the person shall be subject to the maximum tax rate not to exceed three percent (3%) of gross receipts 60139.00154\40117339.5
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generated by that cannabis business activity.

5. For every person engaged in manufacturing or processing of cannabis, cannabis products, industrial hemp and/or industrial hemp products, or any other type of cannabis business not described in Section 4.27.050 (C) (1), (2), (3), or (4) the person shall be subject to the maximum tax rate not to exceed four percent (4%) of gross receipts generated by that cannabis business activity.

D. Persons subject to the cannabis business tax shall register with the City and if applicable pay the registration fee pursuant to Section 4.27.060 and in accordance with Section 4.03.010.

4.27.060 Registration, reporting and remittance of tax.

A. Registration of Cannabis Business. All cannabis businesses shall be required to annually register as follows:

1. All persons engaging in business as a cannabis business, whether an existing, newly established or acquired businessshall register with the Tax Administrator within thirty (30) days of commencing operation and shall annually renew such registration within 30 days of the business registration anniversary date of each year thereafter. In registering, such persons shall furnish to the Tax Administrator a sworn statement, upon a form provided by the Tax Administrator, setting forth the following information:
i. The name of the business;
ii. The names and addresses of each owner;
iii. The exact nature or kind of business;
iv. The place where such business is to be carried on; and v. Any additional information which the Tax Administrator may require.

B. An annual registration fee in accordance with the current and approved City fee schedule shall be presented with the sworn statement submitted under this chapter.

This fee shall not be considered a tax and may be adjusted by resolution of the City Council.

C. The cannabis business tax imposed by this chapter shall be paid, in arrears, on a monthly basis. Each person owing a cannabis business tax shall on or before the last day of the month following the close of each month file with the Tax Administrator a statement (“tax statement”) of the tax owed for that calendar month and the basis for calculating that tax. The Tax Administrator may require that the tax statement be submitted on a form prescribed by the Tax Administrator. The tax for each calendar month shall be due and payable on the same date that the tax statement is due.
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D. Upon cessation of a cannabis business, tax statements and payments shall be immediately due for all calendar months up through the calendar month during which cessation occurred.

E. In the event that there is a complete change in ownership of any cannabis business:
a. The new owner is required to submit an updated registration form to the Tax Administrator;
b. The new owner is subject to an audit by the Tax Administrator; and c. Unless otherwise provided by law, it is the joint and several liability of both the seller and buyer to remit any taxes, interest, penalties, and fees due up until the date of sale; otherwise, enforcement action may be taken pursuant to Section

4.27.160 of this chapter against both the seller and/or buyer in an amount to be determined by the Tax Administrator.

F. The Tax Administrator may, at his or her discretion, establish alternative reporting and payment periods for any taxpayer as the Tax Administrator deems necessary to ensure effective collection of the cannabis business tax. The Tax Administrator may also require that a deposit, to be applied against the taxes for a calendar month, be made by a taxpayer at the beginning of that calendar month. In no event shall the deposit required by the Tax Administrator exceed the tax amount he or she projects will be owed by the taxpayer for the calendar month. The Tax Administrator may require that a taxpayer make payments via a cashier’s check, money order, wire transfer, or similar instrument.

4.27.070 Payments and communications – timely remittance.

Whenever any payment, statement, report, request or other communication is due, it must be received by the Tax Administrator on or before the final due date. A postmark will not be accepted as timely remittance. If the due date would fall on a Saturday, Sunday or a holiday observed by the City, the due date shall be the next regular business day on which the City is open to the public.

4.27.080 Payment - when taxes deemed delinquent.

Unless otherwise specifically provided under other provisions of this chapter, the taxes required to be paid pursuant to this chapter shall be deemed delinquent if not received by the Tax Administrator on or before the due date as specified in Sections 4.27.060 and 4.27.070.

4.27.090 Notice not required by the City.

The City may as a courtesy send a tax notice to the cannabis business which owes the City a cannabis business tax. However, the Tax Administrator is not required to send a delinquency or other notice or bill to any person subject to the provisions of this chapter. Failure to send such 60139.00154\40117339.5
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notice or bill shall not affect the validity of any tax or penalty due under the provisions of this chapter.

4.27.100 Penalties and interest.

A. Any person who fails or refuses to pay any cannabis business tax required to be paid pursuant to this chapter on or before the due date shall pay penalties and interest as follows:

1. A penalty equal to ten percent (10%) of the amount of the tax, in addition to the amount of the tax, plus interest on the unpaid tax calculated from the due date of the tax at the rate of one percent (1%) per month.

2. If the tax remains unpaid for a period exceeding one calendar month beyond the due date, an additional penalty equal to twenty-five percent (25%) of the amount of the tax, plus interest at the rate of one percent (1%) per month on the unpaid tax and on the unpaid penalties.

3. Interest shall be applied at the rate of one percent (1%) per month on the first day of the month for the full month and will continue to accrue monthly on the tax and penalty until the balance is paid in full.

B. Whenever a check or electronic payment is submitted in payment of a cannabis business tax and the payment is subsequently returned unpaid by the bank for any reason, the taxpayer will be liable for the tax amount due plus any fees, penalties and interest as provided for in this chapter, and any other amount allowed under state law.

C. The Tax Administrator may waive the penalties imposed upon any person under this Section 4.27.100 if:

1. The person requests a waiver of penalties by submitting a written request for waiver to the Tax Administrator no later than June 30 of the second fiscal year following the fiscal year in which the tax became delinquent; and

2. The person provides evidence satisfactory to the Tax Administrator that the failure to pay timely was due to circumstances beyond the control of the person and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect; and the person paid the delinquent taxes, penalties, accrued interest, and fees owed prior to applying to the Tax Administrator for a waiver.

D. The waiver provisions specified in Section 4.27.100 (C) shall not apply to interest accrued on the delinquent taxes and a waiver shall be granted only once during any twenty-four month period. The Tax Administrator’s decision on a request for a waiver of penalties is final and conclusive and not subject to appeal under Section 4.27.150.

4.27.110 Refunds and credits.

A. No refund shall be made of any tax collected pursuant to this chapter, except as 60139.00154\40117339.5
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provided in Section 4.27.120.

B. No refund of any tax collected pursuant to this chapter shall be made because of the discontinuation, dissolution, or other termination of a business.

4.27.120 Refund procedures.

A. Whenever the amount of any cannabis business tax, penalty or interest has been overpaid, paid more than once, or has been erroneously collected or received by the City under this chapter, it may be refunded to the claimant who paid the tax provided that a written claim for refund signed under the penalty of perjury is filed with the Tax Administrator within one (1) year of the date the tax was originally due or paid, whichever came first. A person may only file a claim for refund if the person paid the tax. No person shall be entitled to a refund unless the person can support the claim by written records sufficient to show entitlement thereto. The Tax Administrator's decision on a claim for refund is final and conclusive and not subject to appeal under Section 4.27.150.

B. The Tax Administrator, his or her designee which may include a third party or any other City officer charged with the administration of this chapter shall have the right to examine and audit all the books and business records of the claimant in order to determine the eligibility of the claimant to the claimed refund. No claim for refund shall be allowed if the claimant refuses to allow such examination of claimant's books and business records after request by the Tax Administrator to do so. The Tax Administrator may collect a fee adopted by resolution by the City Council to pay for the cost of examination and audit should the books and records be provided in a form insufficient to allow the Tax Administrator to make a determination on the claim for refund.

C. In the event that the cannabis business tax was erroneously paid in an amount in excess of the tax due, and the error is attributable to the City, the City shall refund the amount of tax erroneously paid; provided that (i) a claim for refund has been timely filed with the Tax Administrator; and (ii) the refund cannot exceed, under any circumstance, the amount of tax overpaid during the twelve months preceding the last month for which the claim states the tax was overpaid.

4.27.130 Personal Cultivation Not Taxed.

The provisions of this chapter shall not apply to personal cannabis cultivation or personal use of cannabis, to the extent those activities are authorized in the “Medicinal and Adult Use Cannabis Regulation and Safety Act,” and the Santee Municipal Code, as either may be amended.

This chapter shall not apply to personal use of cannabis that is specifically exempted from state licensing requirements, that meets the definition of personal use or equivalent terminology under state law, and provided that the individual receives no compensation whatsoever related to that personal cultivation or use.

4.27.140 Administration of the tax.

A. It shall be the duty of the Tax Administrator to collect the taxes, penalties, fees, and perform the duties required by this chapter.
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B. For purposes of administration and enforcement of this chapter generally, the Tax Administrator may from time to time promulgate such administrative interpretations, rules, and procedures consistent with the purpose, intent, and express terms of this chapter as he or she deems necessary to implement or clarify such provisions or aid in enforcement.

C. The Tax Administrator may take such administrative actions as needed to administer the cannabis business tax, including but not limited to:

1. Provide to all cannabis business taxpayers forms for the reporting of the tax;

2. Provide information to any taxpayer concerning the provisions of this chapter;

3. Receive and record all taxes remitted to the City as provided in this chapter;

4. Maintain records of taxpayer reports and taxes collected pursuant to this chapter;

5. Assess penalties and interest to taxpayers pursuant to this chapter;

6. Determine amounts owed under and enforce collection pursuant to this chapter.

4.27.150 Appeal procedures.

A taxpayer aggrieved by a decision of the Tax Administrator with respect to the amount of tax, interest, penalties, and fees, if any, due under this chapter may appeal only if a hearing was requested and attended pursuant to Section 4.27.250. An appeal may be made by filing a notice of appeal with the City Clerk within thirty (30) calendar days of the serving or mailing of the Tax Administrator’s decision of the amount due. Upon receipt of a timely notice of appeal, the City Clerk, or his or her designee, shall fix a time and place for hearing such appeal with a hearing officer or other person appointed by the City Manager. The City Clerk, or his or her designee, shall give at least ten (10) calendar days’ notice of the appeal hearing in writing to such taxpayer at the last known place of address. The hearing officer shall render a written decision that shall be served on the taxpayer at the last known place of address. The decision of the hearing officer shall be final and conclusive. Any amount found to be due by the hearing officer shall be immediately due and payable upon the service of the decision. If no notice of appeal is filed within the time prescribed in this Section, the Tax Administrator’s decision with respect to the amount of tax, interest, penalties, and fees due is final and conclusive.

4.27.160 Enforcement - action to collect.

Any taxes, interest, penalties, and/or fees required to be paid under the provisions of this chapter shall be deemed a debt owed to the City. Any person owing money to the City under the provisions of this chapter shall be liable in an action brought in the name of the City for the recovery of such debt. The provisions of this chapter shall not be deemed a limitation upon the right of the City to bring any other action including criminal, civil and equitable actions, based upon the failure to pay the tax, interest, penalties, and/or fees imposed by this chapter or the failure to comply with any of the provisions of this chapter.
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4.27.170 Apportionment.

If a person subject to the tax is operating both within and outside the City, it is the intent of the City to apply the cannabis business tax so that the measure of the tax fairly reflects the proportion of the taxed activity actually carried on in the City. To the extent federal or state law requires that any tax due from any taxpayer be apportioned, the taxpayer may indicate said apportionment on his or her tax return. The Tax Administrator may promulgate administrative procedures for apportionment as he or she finds useful or necessary.

4.27.180 Constitutionality and legality.

This tax is intended to be applied in a manner consistent with the United States and California Constitutions and state law. None of the tax provided for by this chapter shall be applied in a manner that causes an undue burden upon interstate commerce, a violation of the equal protection or due process clauses of the Constitutions of the United States or the State of California or a violation of any other provision of the California Constitution or state law. If a person believes that the tax, as applied to him or her, is impermissible under applicable law, he or she may request that the Tax Administrator release him or her from the obligation to pay the impermissible portion of the tax.

4.27.190 Audit and examination of premises and records.

A. For the purpose of ascertaining the amount of cannabis business tax owed or verifying any representations made by any taxpayer to the City in support of his or her tax calculation, the Tax Administrator or his/her designees, which may include a third party, shall have the power to inspect any location where commercial cannabis activity occurs and to audit and examine all books and records (including, but not limited to bookkeeping records, access to METRC data, and/or point-of-sale data, state and/or federal income tax returns, excise tax returns, space utilized for cannabis related activities, and other records relating to the gross receipts of the business) of persons engaged in cannabis businesses. In conducting such investigation, the Tax Administrator, or his/her designees, which may include a third party, shall have the power to inspect any space utilized for cannabis business related activities, equipment or software, such as computers, software systems, platforms, and databases (including METRC), and/or point of sale systems, to include any keys or access codes for access to and use of the equipment and/or software, that may contain such records.

B. It shall be the duty of every person liable for the collection and payment to the City of any tax imposed by this chapter to keep and preserve, for a period of at least three (3) years, all records as may be necessary to determine the amount of such tax as he or she may have been liable for the collection of and payment to the City, which records the Tax Administrator or his/her designee, which may include a third party, shall have the right to inspect at all reasonable times.

4.27.200 Other licenses, permits, taxes, fees or charges.

A. Nothing contained in this chapter shall be deemed to repeal, amend, be in lieu of, replace or in any way affect any requirements for any cannabis business permit, City license, permit, or other certificate required by, under or by virtue of any provision of any other Chapter 60139.00154\40117339.5
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of this code or any other ordinance or resolution of the City, nor be deemed to repeal, amend, be in lieu of, replace or in any way affect any tax, fee or other charge imposed, assessed or required under any other Chapter of this code or any other ordinance or resolution of the City. Any references made or contained in any other Chapter of this code to any licenses, permits, certificates, taxes, fees, or charges, or to any schedule of license, permit, certificate, or fees, shall be deemed to refer to the licenses, permits or certificates, and their respective taxes, fees or charges, or schedule of license fees, provided for in other Chapters of this code.

B. The Tax Administrator may revoke or refuse to renew the business license required by Chapter 4.27 and / or the Cannabis Business Permit required by Chapter 7.04 of this code for any business that is delinquent in the payment of any tax due pursuant to this chapter or that fails to make a deposit required by the Tax Administrator pursuant to Section 4.27.060.

A cannabis business permit issued under the Santee Municipal Code may be revoked, suspended or not renewed in the event that the business holding that permit has failed to (i) make a deposit required by the Tax Administrator pursuant to Section 4.27.060 or (ii) timely pay all taxes, interest and penalties owed by that business under this chapter.

4.27.210 Payment of tax does not authorize unlawful business.

A. The payment of a cannabis business tax required by this chapter, and its acceptance by the City, shall not entitle any person to carry on any cannabis business unless the person has complied with all of the requirements of this code and all other applicable state laws.

B. No tax paid under the provisions of this chapter shall be construed as authorizing the conduct or continuance of any illegal or unlawful business, or any business in violation of any local or state law.

4.27.220 Deficiency determinations.

If the Tax Administrator is not satisfied that any statement filed as required under the provisions of this chapter is correct, or that the amount of tax is correctly computed, he or she may compute and determine the amount to be paid and make a deficiency determination upon the basis of the facts contained in the statement or upon the basis of any information in his or her possession or that may come into his or her possession within three (3) years of the date the tax was originally due and payable. One or more deficiency determinations of the amount of tax due for a period or periods may be made. When a person discontinues engaging in a cannabis business, a deficiency determination may be made at any time within three (3) years thereafter as to any liability arising from engaging in such cannabis business whether or not a deficiency determination is issued prior to the date the tax would otherwise be due. Whenever a deficiency determination is made, a notice shall be given to the person concerned in the same manner as notices of assessment are given under Section 4.27.240 and 4.27.250.

4.27.230 Failure to report—nonpayment, fraud.

A. Under any of the following circumstances, the Tax Administrator may make and give notice of an assessment of the amount of tax owed by a person under this chapter at any time:
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1. If the person has not filed a complete statement required under the provisions of this chapter;

2. If the person has not paid the tax due under the provisions of this chapter;

3. If the person has not, after demand by the Tax Administrator, filed a corrected statement, or furnished to the Tax Administrator adequate substantiation of the information contained in a statement already filed, or paid any additional amount of tax due under the provisions of this chapter; or

4. If the Tax Administrator determines that the nonpayment of any cannabis business tax due under this chapter is due to fraud, a penalty of twenty-five percent (25%) of the amount of the tax shall be added thereto in addition to penalties and interest otherwise payable under this chapter and any other penalties allowed by law.

B. The notice of assessment shall separately set forth the amount of any tax known by the Tax Administrator to be due or estimated by the Tax Administrator, after consideration of all information within the Tax Administrator's knowledge concerning the business and activities of the person assessed, to be due under each applicable provision of this chapter and shall include the amount of any penalties or interest accrued on each amount to the date of the notice of assessment.

The notice shall state that the person has thirty (30) calendar days from the date of the notice to make a written request for an informal hearing before the Tax Administrator. The notice shall also state that if the person fails to timely request an informal hearing within the time allowed, the amount determined by the Tax Administrator is final and conclusive and is immediately due and payable.

4.27.240 Tax assessment - notice requirements.

The notice of assessment shall be served upon the person either by personal delivery, by overnight delivery by a nationally-recognized courier service, or by a deposit of the notice in the United States mail, postage prepaid thereon, addressed to the person at the address of the location of the business or to such other address as he or she shall register with the Tax Administrator for the purpose of receiving notices provided under this chapter; or, should the person have no address registered with the Tax Administrator for such purpose, then to such person's last known address.

For the purpose of Section 4.27.240, a service by overnight delivery shall be deemed to have occurred one (1) calendar day following deposit with a courier and service by mail shall be deemed to have occurred three (3) days following deposit in the United States mail.

4.27.250 Tax assessment - hearing, application and determination.

Within thirty (30) calendar days after the date of service of the notice of assessment the person may apply in writing to the Tax Administrator for an informal hearing on the assessment.

If application for an informal hearing is not made within the time herein prescribed, the tax assessed by the Tax Administrator shall become final and conclusive. Within thirty (30) calendar days of the receipt of any such application for an informal hearing, the Tax Administrator shall cause the matter to be set for an informal hearing before him or her, or his/her designee, no later than thirty (30) calendar days after the receipt of the application, unless a later date is agreed to by 60139.00154\40117339.5
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the Tax Administrator and the person requesting the informal hearing. Notice of such informal hearing shall be given by the Tax Administrator to the person requesting such informal hearing no later than five (5) calendar days prior to such informal hearing. A hearing under this section shall be informal and need not follow any formal rules of evidence. At such hearing said applicant may appear and offer evidence why the assessment as made by the Tax Administrator should not be confirmed and fixed as the tax due. After such hearing the Tax Administrator shall determine and reassess (if necessary) the proper amount of tax, interest, penalties, and fees to be charged and shall give written notice of the decision to the person in the manner prescribed in Section 4.27.240 for giving notice of assessment. No appeal of a notice of assessment may be made under Section

4.27.150 unless an informal hearing is timely requested and the person attends the hearing. If the person fails to appear at the informal hearing, the amount due determined by the Tax Administrator in the notice of assessment is final and conclusive.

4.27.260 Relief from taxes – disaster relief.

A. If a person is unable to comply with any tax requirement imposed under this chapter due to a disaster impacting its cannabis business, the person may notify the Tax Administrator of its inability to comply and request relief from the tax requirement. For purposes of this chapter, “disaster” means fire, flood, storm, tidal wave, earthquake, or similar public calamity resulting in physical damage to real property, whether or not resulting from natural causes.

B. The person shall provide any information required by the Tax Administrator including, without limitation, why relief is requested, the time period for which the relief is requested, and the reason relief is needed for the specific amount of time. The person agrees to grant the Tax Administrator or his/her designee access to the location where the cannabis business has been impacted due to a disaster.

C. The Tax Administrator, in his/her sole discretion, may provide relief from the cannabis business tax requirement for businesses whose operations have been impacted by a disaster if such tax relief does not exceed ten thousand ($10,000) dollars. Such temporary relief may be granted for a reasonable amount of time, in the Tax Administrator’s sole discretion, and the amount and duration of relief should be based upon how long it would reasonably take for the cannabis business to recover from the disaster. The Tax Administrator may require that the cannabis business follow certain conditions to receive temporary relief from the cannabis business tax requirement. The Tax Administrator's decision on a request for relief and the conditions that may be imposed for relief under this section are final and conclusive and not subject to appeal under Section 4.27.150.

4.27.270 Conviction for violation - taxes not waived.

The conviction and punishment of any person for failure to pay the required tax shall not excuse or exempt such person from any civil action for the tax debt unpaid at the time of such conviction. No civil action shall prevent a criminal prosecution for any violation of the provisions of this chapter or of any state law requiring the payment of all taxes.

4.27.280 Violation deemed misdemeanor.
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Any person violating any of the provisions of this chapter shall be guilty of a misdemeanor.

4.27.290 Severability.

If any provision of this chapter, or its application to any person or circumstance, is determined by a court of competent jurisdiction to be unlawful, unenforceable, or otherwise void, that determination shall have no effect on any other provision of this chapter or the application of this chapter to any other person or circumstance and, to that end, the provisions hereof are severable.

4.27.300 Remedies cumulative.

All remedies and penalties prescribed by this chapter or which are available under any other provision of this code and any other provision of law or equity are cumulative. The use of one or more remedies by the City shall not bar the use of any other remedy for the purpose of enforcing the provisions of this chapter.

4.27.310 Amendment or modification.

Except as set forth in this section, this chapter, or any section of this chapter, may be amended, modified, or temporarily suspended, but not repealed by the City Council without a vote of the people. However, as required by Article XIII C of the California Constitution, voter approval is required for any amendment that would expand, extend, or increase the rate or methodology of any tax levied pursuant to this chapter beyond the maximums set forth in this chapter. The people of the City of Santee affirm that the following actions shall not constitute an increase of the rate or methodology of a tax:

A. The restoration or adjustment of the rate of the tax to a rate that is no higher than that allowed by this chapter, in those circumstances where, among others, the City Council has previously acted to reduce the rate of the tax or is incrementally implementing an increase authorized by this chapter;
B. An action that interprets or clarifies (i) the methodology of applying or calculating the tax or (ii) any definition applicable to the tax, so long as the interpretation or clarification (even if contrary to some prior interpretation or clarification) is not inconsistent with the provisions of this Chapter 4.27; or
C. The collection of the tax imposed by this chapter even if the City had, for some period of time, suspended or failed to collect the tax.

SECTION 2. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this ordinance. The people of the City of Santee hereby declare that they would have passed this ordinance and each section, subsection, sentence, clause and phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses, or phrases be declared invalid.
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SECTION 3. ENVIRONMENTAL COMPLIANCE. The people of the City of Santee hereby find and determine that this ordinance relates to organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment, and therefore is not a project within the meaning of the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, section 15378(b)(5). In addition, the tax submitted to the voters is a general tax that can be used for any governmental purpose; it is not a commitment to any particular action or actions.

As such, under CEQA Guidelines Section 15378 (b)(4), the tax is not a project within the meaning of CEQA because it creates a government funding mechanism that does not involve any commitment to any specific project that may result in a potentially significant physical impact on the environment. If revenue generated by the tax were used for a purpose that would have such an effect, the City of Santee would undertake the required CEQA review for that particular project.

Therefore, pursuant to CEQA Guidelines Section 15060 CEQA analysis is not required.

SECTION 4. EFFECTIVE DATE. Pursuant to the California Constitution, Article XIIIC(2)(b) and California Elections Code 9217, if a majority of the voters voting in the election on Measure “[Insert]” vote in favor of the adoption of such measure, this ordinance shall be deemed valid and binding and shall be considered adopted upon the date that the vote is declared by the City Council and shall go into effect ten (10) days after that date.

This Ordinance was approved and adopted by the People of the City of Santee at the City’s November 8, 2022 General Municipal Election.

This Ordinance was approved by Declaration of the vote by the City Council of the City of Santee on ______________.
____________________________________
John W. Minto, Mayor
ATTEST:
____________________________
Annette Ortiz, CMC, City Clerk

Attachment 1
RESOLUTION NO. _____
1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTEE,

CALIFORNIA, ADOPTING THE
OPERATING BUDGET FOR FISCAL YEAR 2022-23 AND TAKING RELATED ACTIONS WHEREAS, on June 8, 2022 and June 22, 2022 public meetings were held by the City Council to review the Proposed Operating Budget for Fiscal Year 2022-23; and WHEREAS, the City Council considered all recommendations by staff and public testimony; and
WHEREAS, the City Council desires to adopt the Operating Budget for Fiscal Year 2022-23 incorporating any and all changes directed by the City Council during the public meeting held on June 22, 2022.

NOW, THEREFORE, BE IT RESOLVED the City Council of the City of Santee, California does hereby find, determine and declare as follows:

Section 1
The Operating Budget for Fiscal Year 2022-23, including all changes directed by the City Council, is hereby adopted.

Section 2
The monies necessary to offset the expenditures in the Operating Budget for Fiscal Year 2022-23 as adopted by the City Council pursuant to Section 1 hereof are authorized by this section to be appropriated out of the funds available to the City during said fiscal year.

Section 3
A. The City Manager is authorized to implement salary and benefits adjustments for General, Management and Santee Firefighters’ Association (SFFA) employee groups as approved and directed by the City Council.

B. The following adjustments are made to the salary and benefit plan for SFFA employees for fiscal year 2022-23.
1) 3.5% salary increase effective July 7, 2022
2) A stipend in the total amount of 2.0% of base pay to be paid in two payments to all SFFA members employed on July 20, 2022 (1.0% of base pay) and then on January 4, 2023 (1.0% of base pay)
Attachment 1
RESOLUTION NO. _____
2 C. The following adjustments are made to the salary and benefit plan for General and Management employees including Executive Management for fiscal year 2021-22.
1) 3.5% salary increase effective July 7, 2022
2) A stipend in the total amount of 2.0% of base pay to be paid in two payments to all General and Management employees employed on July 20, 2022 (1.0% of base pay) and then on January 4, 2023 (1.0% of base pay)
D. The Salary Schedules effective July 7, 2022 as presented as Exhibit “A” are approved and adopted.

E. The following personnel changes are hereby approved:
1) Add one Marketing Manager position with an annual salary band of $95,497.09 to $128,951.27
2) Reduce the salary band for one Marketing Coordinator position from an annual salary band of $85,826.99 to $115,867.17 to an annual salary band of $68,223.18 to $97,461.70
3) Add one Management Analyst position (Finance Department) with an annual salary range of $74,456.86 to $90,502.77
4) Eliminate one Management Analyst position (Community Services Department) with an annual salary range of $74,456.86 to $90,502.77 5) Reclassify one Confidential Accountant position with an annual salary range of $74,456.86 to $90,502.77 to a Senior Accountant position with an annual salary range of $88,505.56 to $107,579.48
F. The City Manager is authorized to execute agreements between the City of Santee and appropriate insurance companies for the purpose of providing health, life, long-term disability insurance and dental coverage for the eligible officers, active, retired and terminated employees of the City of Santee and their eligible dependents.

Section 4
A. The City Manager is authorized to adjust operating budget line items during fiscal year 2022-23 as may from time to time be deemed desirable, not to exceed the authorized departmental totals.

B. Unencumbered balances remaining at June 30, 2022 for operating accounts, excluding salaries and benefits, may be carried forward at the discretion of the City Manager or designee to the subsequent fiscal year.

C. For contract building inspection services which are funded by permit fees collected, the City Manager is hereby authorized to increase the expenditure appropriation proportionately as increased revenues are received.

Attachment 1
RESOLUTION NO. _____
3 D. For Recreation Revolving Fund program expenditures that are funded from program revenues, the City Manager is hereby authorized to increase the expenditure appropriation as additional revenues are realized or if funds are available in the unappropriated balance of the Recreation Revolving Fund.

E. In accordance with the terms of the Agreement for City Attorney Legal Services with Best Best & Krieger, the consumer price index adjusted rates effective July 1, 2022 will be as follows:
1) Monthly Retainer $16,530
2) Special Services
i. Attorney $255 per hour
ii. Non-Attorney $209 per hour
3) Third Party Reimbursable Services
i. Partner/Of Counsel $396 per hour
ii. Associate $328 per hour
iii. Non-Attorney $209 per hour

F. The City Manager is authorized to execute the following professional service contract renewals provided for in the Operating Budget for Fiscal Year 2022-23 without further Council action:
1) David Turch and Associates (legislative advocacy-federal) $60,000 G. The City Manager is authorized to execute an amendment to the Agreement Between the City of Santee and Grossmont Union High School District for School Resource Officer Cost Sharing at Santana and West Hills High Schools in an amount for FY 2022-23 consistent with the City Council adopted budget.

H. Grant funds awarded to the City of Santee, based on an application of these funds approved or accepted by the City Council, shall be appropriated as required.

I. All fire benefit fee receipts shall be used exclusively to provide fire suppression services, with any funding shortfall made up from other General Fund sources.

Section 5
The General Fund Reserve Policy is hereby continued by this resolution that a minimum reserve of 20% of annual General Fund operating expenditures be maintained.

Section 6
The Balanced General Fund Budget Policy is hereby continued by this resolution that, generally, ongoing revenues shall cover ongoing operating expenditures, allowing for use of General Fund reserves if the General Fund Reserve Policy is met.

Attachment 1
RESOLUTION NO. _____
4 PASSED, APPROVED AND ADOPTED by the City Council of the City of Santee, California, at a regular meeting thereof held this 22nd day of June, 2022, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

ANNETTE ORTIZ, CMC, CITY CLERK
EXHIBIT A: Salary Schedules Effective July 7, 2022
Exhibit A
Classification A B C D E
Fire Captain / PM Hourly 34.35 36.07 37.87 39.76 41.75
Base salary Annual 100,027.62 105,030.12 110,281.30 115,794.56 121,584.96 Educational Incentive
Fire Captain / PM Hourly 34.87 36.61 38.44 40.36 42.38
31-45 units = 1.5% over base Annual 101,527.82 106,605.59 111,935.62 117,531.64 123,408.77 Fire Captain / PM Hourly 35.38 37.15 39.01 40.96 43.01
46 units and over = 3.0% over base Annual 103,028.34 108,181.03 113,589.93 119,268.09 125,232.24 Fire Captain / PM Hourly 35.90 37.69 39.58 41.55 43.63
A.A. Degree = 4.5% over base Annual 104,528.86 109,756.17 115,243.89 121,005.17 127,056.01 Fire Captain / PM Hourly 36.41 38.23 40.14 42.15 44.26
Bachelor Degree = 6% over base Annual 106,029.05 111,331.61 116,898.21 122,742.28 128,880.16

CITY OF SANTEE

SANTEE FIREFIGHTERS' ASSOCIATION SALARY SCHEDULE
EFFECTIVE JULY 07, 2022

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Exhibit A

CITY OF SANTEE

SANTEE FIREFIGHTERS' ASSOCIATION SALARY SCHEDULE
EFFECTIVE JULY 07, 2022
Classification A B C D E
Fire Captain Hourly 32.87 34.51 36.24 38.05 39.95
Base salary Annual 95,720.07 100,506.97 105,532.05 110,808.09 116,348.51 Educational Incentive
Fire Captain Hourly 33.36 35.03 36.78 38.62 40.55
31-45 units = 1.5% over base Annual 97,155.82 102,014.36 107,115.36 112,470.25 118,093.78 Fire Captain Hourly 33.86 35.55 37.33 39.19 41.15
46 units and over = 3.0% over base Annual 98,591.89 103,522.07 108,698.01 114,132.09 119,839.05 Fire Captain Hourly 34.35 36.07 37.87 39.76 41.75
A.A. Degree = 4.5% over base Annual 100,027.62 105,029.80 110,280.99 115,794.56 121,584.32 Fire Captain Hourly 34.84 36.59 38.41 40.34 42.35
Bachelor Degree = 6% over base Annual 101,463.37 106,537.21 111,864.28 117,456.42 123,329.57

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Exhibit A

CITY OF SANTEE

SANTEE FIREFIGHTERS' ASSOCIATION SALARY SCHEDULE
EFFECTIVE JULY 07, 2022
Classification A B C D E
Fire Engineer/PM Hourly 29.47 30.91 32.43 34.09 35.70
Base salary Annual 85,809.85 90,021.24 94,442.37 99,260.43 103,961.77 Educational Incentive
Fire Engineer / PM Hourly 29.91 31.38 32.92 34.60 36.24 31-45 units = 1.5% over base Annual 87,097.23 91,371.40 95,858.68 100,749.41 105,521.06 Fire Engineer / PM Hourly 30.35 31.84 33.41 35.11 36.77 46 units and over = 3.0% over base Annual 88,384.30 92,721.93 97,275.61 102,238.00 107,080.42 Fire Engineer / PM Hourly 30.79 32.30 33.89 35.62 37.31 A.A. Degree = 4.5% over base Annual 89,671.34 94,072.11 98,692.21 103,726.96 108,640.06 Fire Engineer / PM Hourly 31.24 32.77 34.38 36.13 37.84 Bachelor Degree = 6% over base Annual 90,958.72 95,422.63 100,108.81 105,215.93 110,199.40

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Exhibit A

CITY OF SANTEE

SANTEE FIREFIGHTERS' ASSOCIATION SALARY SCHEDULE
EFFECTIVE JULY 07, 2022
Classification A B C D E
Fire Engineer Hourly 28.06 29.44 30.88 32.46 33.99
Base salary Annual 81,706.23 85,715.38 89,925.73 94,513.40 98,990.40 Educational Incentive
Fire Engineer Hourly 28.48 29.88 31.34 32.94 34.50
31-45 units = 1.5% over base Annual 82,931.93 87,001.25 91,274.77 95,931.12 100,475.20 Fire Engineer Hourly 28.90 30.32 31.81 33.43 35.01
46 units and over = 3.0% over base Annual 84,157.60 88,286.83 92,623.49 97,348.86 101,960.38 Fire Engineer Hourly 29.32 30.76 32.27 33.92 35.52
A.A. Degree = 4.5% over base Annual 85,382.96 89,572.70 93,972.50 98,766.60 103,445.19 Fire Engineer Hourly 29.74 31.20 32.73 34.40 36.03
Bachelor Degree = 6% over base Annual 86,608.95 90,858.25 95,321.21 100,184.35 104,930.00

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Exhibit A

CITY OF SANTEE

SANTEE FIREFIGHTERS' ASSOCIATION SALARY SCHEDULE
EFFECTIVE JULY 07, 2022
Classification A B C D E F G H
Firefighter Paramedic Hourly 25.25 26.29 27.37 28.50 30.18 31.40 32.67 33.99 Base salary Annual 73,538.44 76,559.44 79,706.09 82,981.65 87,892.90 91,443.60 95,138.00 98,990.40 Educational Incentive (after completing 3 1/2 years of employment) G H Firefighter Paramedic 33.16 34.50
31-45 units = 1.5% over base 96,564.89 100,475.20
Firefighter Paramedic 33.65 35.01
46 units and over = 3.0% over base 97,991.81 101,960.38 Firefighter Paramedic 34.14 35.52
A.A. Degree = 4.5% over base 99,419.37 103,445.19
Firefighter Paramedic 34.63 36.03
Bachelor Degree = 6% over base 100,846.27 104,930.00

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Exhibit A

CITY OF SANTEE

SANTEE FIREFIGHTERS' ASSOCIATION SALARY SCHEDULE
EFFECTIVE JULY 07, 2022
Classification A B C D E F G H
Firefighter Hourly 21.43 22.50 23.52 24.81 26.05 27.35 28.72 30.15 Base salary Annual 62,398.04 65,516.54 68,501.89 72,232.91 75,844.83 79,637.40 83,618.38 87,800.28 Educational Incentive (after completing 3 1/2 years of employment) G H Firefighter 29.15 30.60
31-45 units = 1.5% over base 84,872.84 89,117.25
Firefighter 29.58 31.06
46 units and over = 3.0% over base 86,127.01 90,434.21
Firefighter 30.01 31.51
A.A. Degree = 4.5% over base 87,381.45 91,751.51
Firefighter 30.44 31.96
Bachelor Degree = 6% over base 88,635.60 93,068.14

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Santee City CouncilJune 22, 2022

Santee City Council
June 22, 2022