Santee City Council
March 27, 2024

A. SITUATION AND FACTS

1. Requested by ............................. SSCW 22608 Rockville, LLC

2. Land Owner………………………. SSCW 22608 Rockville, LLC

3. Type and Purpose of Request …. Express Car Wash Facility

4. Location ………………………….. 8837 Magnolia Ave

5. Site Area …………………………. 1.26 acre

6. Number of lots …………………… One

7. Hillside Overlay ........................... No

8. Existing Zoning…………………… Light Industrial/General Commercial (IL/GC)

9. Surrounding Zoning ..................... North: General Commercial (GC) South: Light Industrial/General Commercial (IL/GC)
East: Light Industrial/General Commercial (IL/GC)
West: General Commercial (GC)

10. General Plan Designation ……… Light Industrial/General Commercial (IL/GC)

11. Existing Land Use........................ Recreational vehicle (RV) rentals and sales

12. Surrounding Land Use................. North: Church and Commercial Center South: Rockvill Street and Church
East: Commercial / Industrial Center
West: Mission Gorge Rd & Commercial Center

13. Terrain ......................................... Generally Flat

14. Environmental Status .................. The project is exempt from the California Environmental Quality Act (“CEQA”) pursuant to the
State CEQA Guidelines Section 15332, In-Fill
Development.

15. APN............................................ 384-470-33-00

16. Within Airport Safety Zone.......... Safety Zone 6. Airport Land Use Consistency Determination issued on February 2, 2024
Staff Report, March 27, 2024
Super Star Car Wash – CUP-2023-0002

B. BACKGROUND
Existing Conditions:

The 1.26-acre project site is located at 8837 Magnolia Avenue, at the northeast corner of Magnolia Avenue and Rockvill Street, approximately 600 feet south of Mission Gorge Road/Woodside Avenue. The site is currently occupied by an RV rental and sales agency and is adjacent to the Santee Church of Christ and a commercial center to the north, a commercial center (Santee Station) across Magnolia Avenue to the west, Sonrise Church across Rockvill Street to the south, and a commercial / industrial center to the east. The nearest residential property (Cameron’s Mobile Estates) is located to the west beyond the Santee Station.

C. PROJECT DESCRIPTION
Overview:

The proposed project involves the removal of the existing RV rental and sales agency and the construction and operation of an express car wash facility located on a project site that is zoned Light Industrial/General Commercial (IL/GC).

The project consists of 4,980-square-foot express car wash facility with a 140-foot wash tunnel, 34 parking spaces with 31 vacuum stations, and three queue lines with pay stations. Access to the site would be through two driveways: one full-access driveway along Rockvill Street to the south of the site and a cross-access agreement with the adjacent parcel to the north. However, it is anticipated that the majority of vehicles will enter the car wash through the southeastern driveway along Rockvill Street. Street improvements include removing the two driveways on Rockvill Street and replacing them with one new commercial driveway including concrete curb, gutter and sidewalk. The proposed project would also provide 18,600 square feet of landscaping within the site and along the perimeter which includes trees, shrubs, and grass.

D. ANALYSIS
General Plan and Zoning Ordinance Consistency:

The General Plan designation of the site is Light Industrial and General Commercial. The Light Industrial designation provides for a wide range of light manufacturing uses as well as limited commercial uses, including automotive uses. The General Commercial designation provides for a wide range of retail and service activities, including automotive uses.

Development Standards
SMC 13.04.020 states that when a property is developed in accordance with dual zones the least restrictive development, performance and maintenance standards shall apply.

Therefore, the General Commercial standards were applied to this project. The proposed project complies with the setbacks, building height, and parking requirements as summarized in Table 1 (next page).

Staff Report, March 27, 2024
Super Star Car Wash – CUP-2023-0002

Table 1: Development Standards Summary for the General Commercial (GC) zone Requirement Proposed Project
Maximum Height 40 feet 28 feet
Total Parking 9 spaces determined by a
parking demand study
36 spaces
Building Setbacks
Streets 10 feet Magnolia Ave: Approximately
60 feet
Rockvill Rd: 12 feet
Interior side 5 feet Approximately 116 feet
Rear 5 feet Approximately 130 feet
Landscaping:

The project would comply with the landscape requirements in SMC Section 13.36.100, specifically regarding the parking and general landscape standards. California native or drought-tolerant plants are proposed to the maximum extent feasible to minimize the need for irrigation. The development would include approximately 18,600-square-feet of landscaping throughout the project site, including shade and accent trees, a variety of shrubs and groundcover, and a bio-retention area.

On-Site Parking
The parking requirement for car wash facilities is determined by a parking demand study.

Therefore, a parking demand study was prepared by Y2K Engineering, LLC and the study concluded that the car wash land use is stated to obtain a maximum average of nine occupied parking spaces per wash stall at the peak time with a maximum of 15 vehicles to use the vacuum stalls only. Thirty-four parking spaces are proposed and 31 of those include vacuum stalls. Therefore, it is expected that the proposed parking stalls will be adequate. The project will also provide two electric vehicle charging stations.

Architecture
The one-story car wash facility has a maximum building height of 28 feet and would be designed with modern architectural materials, such as masonry, metal canopy and metal panes, concrete trim, stucco, and stone veneer.

Metal canopies, approximately 11 feet high, with fabric shade covers are proposed at the pay and vacuum stations. The project is conditioned to maintain and replace the fabric shade covers when dilapidated or deteriorated.

Compatibility with Adjacent Land Uses
The project site is currently developed with an RV rental and sales facility, including an approximately 2,100-square-foot office building and associated on-site parking. The Staff Report, March 27, 2024
Super Star Car Wash – CUP-2023-0002

project site is adjacent to Santee Church of Christ and a commercial center, including auto repair, to the north. Santee Station, a commercial shopping center, is located across Magnolia Avenue to the west, Sonrise Church is located across Rockvill Street to the south, and a commercial/industrial center is located to the east. The nearest residential property (Cameron’s Mobile Estates) is located to the west beyond the Santee Station.

The proposal would be compatible with existing auto-oriented uses in the vicinity including along Mission Gorge Road and around the intersection of Woodside Avenue/Mission Gorge Road and Magnolia Avenue.

Traffic
A full traffic study with Level of Service (LOS) analysis was not required because the daily trips generated by the project are under 1,000 trips per the parking demand study from Y2K Engineering. Therefore, the project is not expected to have a significant impact on the surrounding roadway network. Additionally, the project is considered a local serving project, therefore, a Vehicle Miles Traveled (VMT) analysis was not required.

According to Y2K Engineering, the car wash facility is anticipated to generate a total of 100 trips (entering and exiting) during the weekday PM peak hour and a total of 150 trips (entering and exiting) during the Saturday peak hour. Approximately 24 vehicles may queue within the three ordering lanes before impacting the internal drive aisle within the site. Significant queuing is not anticipated and is not expected to extend beyond the site at either access point.

Drainage
Surface runoff leaving the project site is directed towards Rockvill Street and Magnolia Avenue, both of which contain storm drain inlets adjacent to the project site. The project would continue to generate surface water runoff similar to existing conditions, and stormwater would be directed towards existing stormwater infrastructure currently serving the project site.

Noise
MD Acoustics prepared a Noise Study and concluded that the implementation of standard regulatory compliance and the project design features for the car wash equipment, would be compliant with the noise abatement requirements of Chapter 5.04 of the SMC and the Noise Element of the Santee General Plan. Therefore, both temporary constructionrelated noise and operational noise impacts would be considered less than significant in accordance with the noise requirements.

Development Impact Fees
The proposed development would trigger development impact fees as listed below:

Drainage .................$71,155.26 (estimated)
Traffic......................$48,410.58
Traffic Signal...........$ 7,808.64
Total $127,374.48
Staff Report, March 27, 2024
Super Star Car Wash – CUP-2023-0002

Environmental Status
The proposed project is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to Section 15332; Class 32 of the CEQA Guidelines (In-fill Development), because the project is consistent with the General Plan and Zoning Ordinance, is located in an urbanized area on property less than five acres, has no habitat value, would not result in any significant effects on traffic, noise, air quality or water quality, and can be served by all required utilities and public services.

E. STAFF RECOMMENDATION
1) Conduct and close the public hearing; and
2) Find Conditional Use Permit CUP-2023-0002 Categorically Exempt from the provisions of CEQA pursuant to Section 15332 of the CEQA Guidelines and authorize the filing of a Notice of Exemption; and
3) Approve Conditional Use Permit CUP-2023-0002 per the attached Resolution.

AERIAL VICINITY MAP
Super Star Car Wash – 8837 Magnolia Avenue
Conditional Use Permit CUP-2023-0002
Mission Gorge Road
Project Site
Item 10 Attachments
The Project Plans attachment is available via the
below link:
https://www.cityofsanteeca.gov/home/showpublished
document/24487/638466966219395079
The Class 32 CEQA Exemption Analysis is available
via the below link:
https://www.cityofsanteeca.gov/home/showpublished
document/24489/638466967271508528
RESOLUTION NO.
1 RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SANTEE, CALIFORNIA APPROVING CONDITIONAL USE PERMIT CUP-2023-0002 FOR AN EXPRESS CAR WASH FACILITY AND RELATED SITE IMPROVEMENTS ON A 1.26 ACRE SITE LOCATED AT 8837 MAGNOLIA AVENUE (APN 384-470-33-00) IN THE LIGHT

INDUSTRIAL/GENERAL COMMERCIAL (IL/GC) ZONE AND FINDING THE PROJECT

EXEMPT FROM THE CALIFORNIA ENVIRONMENTAL QUALITY ACT PURSUANT TO THE CLASS 32 INFILL EXEMPTION
APPLICANT: SSCW 22608 ROCKVILLE, LLC

WHEREAS, the project site is in the Light Industrial / General Commercial (IL / GC) zone districts; and
WHEREAS, Section 13.04.020 of the Santee Municipal Code (SMC) states that when a property is dual zoned, the least restrictive development, performance, and maintenance standards shall apply, and
WHEREAS, the GC zone district provides the least restrictive development standards and Table 13.12.030A of the SMC requires a Conditional Use Permit for express car wash facilities in the General Commercial; and WHEREAS, on January 24, 2024, SSCW 22608 Rockvill, LLC submitted a complete application for a Conditional Use Permit to establish an express car wash facility located at 8837 Magnolia Avenue; and
WHEREAS, the project consists of a 4,980-square-foot express car wash facility with a 140-foot wash tunnel, 34 parking spaces with 31 vacuum stations, and three queue lines with pay stations, and related site improvements; and WHEREAS, the project is consistent with the applicable general plan designation and all applicable general policies, and with the Zoning Ordinance land use regulations; and
WHEREAS, the proposed Project is located within Safety Zone 6 of the Gillespie Field Airport Land Use Compatibility Plan (ALUCP). On July 17, 2023, the Federal Aviation Administration determined that the Project, as designed, presented no hazard to air navigation, and the Airport Land Use Commission (ALUC) determined that the Project as consistent with the ALUCP pursuant to the ALUC determination letter dated February 2, 2024; and
WHEREAS, based on the environmental assessment, the City, as lead agency under the California Environmental Quality Act (“CEQA”), Public Resources Code Section 21000 et seq. has determined the project is categorically exempt from environmental review under State CEQA Guidelines and Section 15332, “Infill Development Projects” as the project is consistent with the General Plan Designation and zoning, includes a project area of less than five acres, is surrounded by urban uses, was previously developed and used, has no value as habitat for rare, endangered species, and is adequately served by utilities and public services; and
RESOLUTION NO.
2 WHEREAS, the Project is subject to the payment of development impact fees based on the Project’s commercial use classification and size; and WHEREAS, development impact fees ensure that new development will not burden the existing service population with the cost of facilities required to adequately support new development; and
WHEREAS, new development requires the construction of capital improvements, including, without limitation, drainage improvements, traffic improvements, traffic signals, public park facilities, community facilities and other public improvements, public services and community amenities; and
WHEREAS, the purpose of the development impact fees imposed on the subject Project is to provide a funding source from the Project to fund related capital improvements that serve the Project, specifically drainage improvements, traffic improvements and traffic signals; and
WHEREAS, it is in the interest of the public’s health, safety and welfare for the Project to pay the costs of constructing these public facilities that are reasonably related to the impacts of the Project; and
WHEREAS, a reasonable relationship exists between the use of the development impact fees and the Project as capital improvements funded by these fees are expected to provide a citywide network of drainage and traffic-related facilities beneficial to the Project; and
WHEREAS, the Project’s facilities need, specifically the need for drainage, traffic and traffic signal facilities, is based on the Project’s commercial classification and on the demand generated by the Project for those facilities and the Project’s corresponding fair share contribution toward funding of said needed facilities; and WHEREAS, the development impact fees established for the Project are based on the Project’s size to ensure a reasonable proportionality between the Project and the cost of the facilities attributable to the Project; and
WHEREAS, the Project is not subject to Measure N as the Project is not a General Plan amendment, Planned Development Area, or new Specific Planning Area, nor would it increase the residential density permitted by law, make changes to the General Plan Residential Land Use categories that would intensify use, make changes to the land use designation of any parcel in a manner that intensifies use, nor make changes to slope criteria, minimum parcel sizes, or lot averaging provisions of the General Plan that would permit increased density or intensity of use; and
WHEREAS, the Planning & Building Department scheduled Conditional Use Permit CUP-2023-0002 for public hearing on March 27, 2024; and RESOLUTION NO.
3 WHEREAS, on March 27, 2024, the City Council held a duly advertised public hearing on CUP-2023-0002; and
WHEREAS, the City Council considered the Staff Report, the CEQA In-fill Exemption, all recommendations by staff, public testimony, and all other relevant information contained in the administrative record regarding the Project.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Santee, California, after considering the evidence presented at the public hearing, as follows:

SECTION 1: Conditional Use Permit (CUP-2023-0002) is exempt CEQA Guidelines and Section 15332, “Infill Development Projects” as the project is consistent with the General Plan Designation and Zoning, includes a project area of less than 5 acres, is surrounded by urban uses, was previously developed and used, has no value as habitat for rare, endangered species, and is adequately served by utilities and public services. No further environmental review is required for the City to adopt this Resolution.

SECTION 2: The findings in accordance with Section 13.06.030 of the Santee Municipal Code for a Conditional Use Permit are made as follows:

A. That the proposed use is in accord with the General Plan, the objectives of the zoning ordinance, and the purposes of the district in which the site is located That the proposed use is in accordance with the Santee General Plan, the objectives of the Development Code, and the purpose of the district in which the site is located.

The site is located in the General Commercial (GC) and Light Industrial (IL) zoning districts which is intended to allow opportunities for development of light Industrial uses in combination with general commercial uses and activities. SMC 13.04.020 states that when a property is developed in accordance with dual zones the least restrictive development, performance and maintenance standards shall apply.

Therefore, the General Commercial standards were applied to this project. The proposed project, an express car wash facility, is permitted with an approved Conditional Use Permit within the GC land use designation and zoning district.

B. That the proposed use, together with the conditions applicable thereto, will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity.

The proposed use, together with the conditions applicable thereto, will not be detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity because 1) the proposed use is consistent with the General Plan and Zoning Ordinance; 2) the proposed use in consistent with surrounding commercial and industrial uses; 3) on-site circulation and queue design will provide vehicular safety and efficient utilization and 4) improvements to the property will enhance the appearance of the site.

RESOLUTION NO.
4 C. That the proposed use complies with each of the applicable provisions of the zoning ordinance.

The proposed use, as designed and conditioned, complies with applicable provisions of the zoning ordinance including setbacks, building heights, parking, and landscaping, and all proposed public improvements will meet the public works standards of the City.

SECTION 3: CUP-2023-0002 to establish a carwash facility located at 8837 Magnolia Avenue (APN 384-470-33) is hereby approved subject to the following conditions:

A. Following project approval, the applicant shall schedule with the City Project Planner a post approval meeting to discuss the project conditions of approval, timing of design and construction and implementation of the project conditions.

The meeting shall be scheduled within thirty days of project approval and prior to any plan submittals. The applicant should include their project design team including project architect, their design engineer, and their landscape architect. (Planning)
B. All construction shall be in substantial conformance with the project plans approved on March 27, 2024 and as amended by this Decision. (All Departments) C. Minor or Major Revisions to the Conditional Use Permit, such as but not limited to changes to the building elevations, site design, or landscape design, shall be approved by the Planning & Building Director, unless in the Planning & Building Director’s judgment, a Major Revision should be reviewed by the City Council. (Planning)
D. The project shall be compliance with the adopted California Building Standards Code at the time of building permit application and shall be subject to expirations for plan review per the City of Santee Municipal Code 11.04.030 and 11.06.030. (Building)
E. The applicant shall obtain building permits, as necessary, for the proposed work in compliance with all applicable SMC sections, Uniform Building Code, California Building Code, Uniform Plumbing Code, National Electric Code, Uniform Mechanical Code, Public Works Standards of the City of Santee, and all requirements of the Fire Department. (All Departments)
F. All building permits shall expire per the California Building Code Section 105. (Building)
G. The applicant shall comply with all applicable requirements of the Santee Municipal Code (SMC), Land Development Manual, and Public Works Standards of the City of Santee. (All Departments)
RESOLUTION NO.
5 H. Prior to issuance of Building Permit, the applicant shall:

1. The applicant shall include provisions in their design contract with their design consultants that following approval by the City, all construction drawings or technical reports accepted by the City, exclusive of architectural building plans, shall become the property of the City. Once accepted, these plans may be freely used, copied or distributed by the City to the public or other agencies, as the City may deem appropriate. A letter of acknowledgement of this requirement from each design consultant is required at the time of plan submittal. This letter shall be in a format acceptable to the Director of Engineering. (Engineering)

2. To coordinate with the City Geographic Information System, horizontal and vertical control for all construction drawings, grading plans, landscape plans, street improvement plans, plot plans, etc., shall be obtained from Record of Survey (ROS) 11252. All plans, exclusive of building plans, shall be prepared at an engineering scale of 1” =20’ unless otherwise approved by the project engineer. (Engineering)

3. Applicant shall ensure that all property corners are properly monumented.

If corners have been lost or do not exist, corners shall be set and a Record of Survey filed prior to issuance of a building permit. (Engineering)

4. Starting with the first plan check submittal, all plan sets shall be submitted concurrently to Padre Dam Municipal Water District (Padre Dam) for review and approval. The City does not coordinate the review process with Padre Dam. This is the responsibility of the design engineer and the landscape architect. Failure to properly coordinate this review may result in delay of issuance of permits required for construction. It is incumbent upon the applicant to oversee the plan submittals of their design consultants. (Engineering)

5. Street Improvement Plans shall be submitted to the Engineering Department for review and acceptance. Prior to the start of construction of any improvements, public or private, within the limits of the public right-ofway, the applicant shall have plans accepted, agreements executed, securities posted, and an encroachment permit issued. All improvements shall be installed in accordance with City standards and at the applicant's cost unless otherwise indicated. The following improvements are conditioned as part of this development (Engineering):
a. Remove two driveways on Rockvill Street and replace them with new concrete curb, gutter, and sidewalk. Construct one commercial driveway a minimum of 30 feet wide per the City of Santee Public Works standard drawing PW-38.

RESOLUTION NO.
6 b. Install trash capture devices at existing downstream curb inlets from the project site located at the northwest corner of the site on Magnolia Avenue, and the southwest corner of the site on Rockvill Street. The device which shall be used for public inlets is the Advanced Drainage System (ADS) FlexStorm Connector Pipe Screen system or approved equal.
c. Remove the existing modified curb inlet and swale located on Magnolia Avenue. Install a private piped connection to the existing inlet. Restore the public right-of-way to a level backfill condition with a 2% grade. d. Street Improvement plans shall be one hundred percent (100%) complete at the time of plan check submittal, be prepared in accordance with City guidelines and the requirements set forth herein and be ready for acceptance by the City. Partial or incomplete submittals will not be accepted for plan check. The applicant shall make an electronic submittal via the City of Santee Permitting and Licensing Portal. The items to be submitted include but are not limited to the following:
1) 100% complete improvement plans.
2) Estimate for the cost of construction.
3) Resolution of Approval approving the project.

In addition to the above electronic submittal requirements, one hard copy of the full-sized improvement plans shall be provided to the project engineer.

Plan check and inspection fees shall be paid in accordance with the City Fee Schedule. The amount due will be determined by staff after the initial intake. To begin the review process, fees must be paid in full.

6. Precise Grading Plans shall be submitted to the Engineering Department for review and acceptance. (Engineering)
a. Horizontal and vertical control for all plans shall be obtained from ROS 11252 and shall be prepared at an engineering scale of 1 "=20' unless otherwise approved by the City Project Engineer.
b. All recommended measures identified in the approved geotechnical study shall be incorporated into the project design and construction. c. Provide a Flowage Easement and a Reciprocal Access Easement between the project site and the abutting northerly property. Easements shall be prepared in accordance with City standards and to the satisfaction of the City Engineer.
d. Grading plans shall include preliminary recommendations for all pavement design sections within the project limits. The pavement structural section shall be designed based on the “R” value method RESOLUTION NO.
7 using a minimum traffic index of 5.0. Structural sections shall consist of asphalt concrete over approved aggregate base material. Minimum concrete section shall be 5 ½ inches Portland Cement Concrete (PCC) over-compacted, non-expansive soil. Mix design shall be a minimum class 520-C-2500. R-value test data and design calculations shall be submitted for approval to the Engineering Department a minimum of seven days prior to placement of paving. The pavement design report shall conform to City of Santee Form 435 – PAVEMENT DESIGN AND R­VALUE TEST SUBMITTAL PROCEDURES.
e. Grading plans shall be one hundred percent (100%) complete at the time of plan check submittal, be prepared in accordance with City guidelines and be ready for acceptance by the City. Partial or incomplete submittals will not be accepted for plan check. The applicant shall make an electronic submittal via the City of Santee Permitting and Licensing Portal (EnerGov). The items to be submitted include but are not limited to the following:
1) 100% complete Grading, landscape, and irrigation plans. 2) A completed grading permit application.
3) Estimate for the cost of construction.
4) Drainage Study specified here within.
5) Storm Water Quality Management Plan specified here within. 6) Operation & Maintenance (O&M) plan specified here within. 7) Storm Water Pollution Prevention Plan specified here within. 8) Geotechnical Study specified here within.
9) Letters of permission from any adjoining property owners if grading is proposed off-site. Letters shall be in a form acceptable to the City.
10) Letters of acknowledgement signed and sealed, from each design consultant acknowledging City ownership of all
construction drawings following City approval as specified here within.
11) Resolution of Approval approving the project.

7. Provide a geotechnical study prepared in accordance with the Santee General Plan. All recommended measures identified in the approved study shall be incorporated into the project design. The Geotechnical/Seismic Hazard Study for the Safety Element of the Santee General Plan which details, in Table A-1, study criteria necessary to conform to the General Plan requirements, can be accessed from the City's website. (Engineering) a. The geotechnical report shall analyze any proposed infiltration techniques (trenches, basins, dry wells, permeable pavements with underground reservoir for infiltration) for any potential adverse geotechnical concerns. Geotechnical conditions such as: slope stability, expansive soils, compressible soils, seepage, groundwater depth, and RESOLUTION NO.
8 loss of foundation or pavement subgrade strength should be addressed, and mitigation measures provided.

8. Replace failed or inadequate pavement to the centerline and/or sidewalk adjacent to the site on Magnolia Avenue and Rockvill Street to the satisfaction of the Director of Engineer. (Engineering)

9. The applicant shall pay all development impact fees in effect at the time of issuance of building permits. At present, the fees are estimated to be as follows (Engineering):
a. Drainage . . . . . . . . . $ 71,155.26 (estimated)
calculated based on $ 1,452 / 1000 square feet of increased impermeable area.
b. Traffic . . . . . . . . . . . $ 48,410.58
calculated based on a fee rate of $ 9,721 / 1000 square feet of building area.
c. Traffic Signal . . . . . . $ 7,808.64
calculated based on a fee rate of $ 1,566 / 1000 square feet of building area.

Impact fee amounts shall be calculated in accordance with the City Fee Schedule and based on current fee ordinances in effect at issuance of building permit. The drainage fee shall be calculated based on the actual impermeable area created by the project including off-site street improvements or other improvements beyond the project boundary. The applicant shall provide certification of final site and building areas by their engineer of work to be approved by the City Engineer for use in calculating the final fee amounts. Fees shall be adjusted on an annual basis in accordance with the Municipal Code.

10. Following the issuance of a grading permit the applicant shall complete rough grading in accordance with the approved grading plans and the recommendations of the project’s geotechnical engineer. Following completion of the rough grading and prior to issuance of any building permits, provide three originals of the pad compaction certification from the geotechnical engineer and three originals of the pad elevation certification from the project civil engineer to the City Project Engineer. (Engineering)

11. Provide a drainage study prepared by a registered Civil Engineer, with demonstrated expertise in drainage analysis and experience in fluvial geomorphology and water resources management. Storm drainage shall be designed to adequately convey storm water runoff without damage or flooding of surrounding properties or degradation of water quality. (Engineering)
RESOLUTION NO.
9 a. The drainage study shall identify and calculate storm water runoff quantities expected from the site and upstream of the site and verify the adequacy of all on-site or off-site facilities necessary to discharge this runoff. The drainage system design shall be capable of collecting and conveying all surface water originating within the site, and surface water that may flow onto the site from upstream lands, and shall be in accordance with the latest adopted Master Drainage Plan, the requirements of the City of Santee Public Works Standards, including analysis of the 10-year, 50-year and 100-year frequency storms, and be based on full development of upstream areas.
b. The drainage study shall compute rainfall runoff characteristics from the project area including, at a minimum, peak flow rate, flow velocity, runoff volume, time of concentration, and retention volume. These characteristics shall be developed for the 10-year, 50-year and 100-year frequency six-hour storm during critical hydrologic conditions for soil and vegetative cover. Storm events shall be developed using isopluvial maps and in accordance with the San Diego County Hydrology Manual.

12. Provide a Storm Water Quality Management Plan (SWQMP) prepared in accordance with the City of Santee Storm Water Ordinance and in accordance with the City of Santee Best Management Practices (BMP) Design Manual dated February 2016. The SWQMP must include best management practices (BMPs) to address water quality and hydromodification. An Operation and Maintenance Plan describing maintenance requirements and costs for BMP maintenance and provision of maintenance verification shall be provided. (Engineering) The SWQMP shall include the following:
a. Develop and implement appropriate Best Management Practices (BMPs) to ensure that the project does not increase pollutant loads from the site. A combination of respective storm water BMPs, including Site Design, Source Control, and Structural Treatment Control shall be implemented in accordance with the approved SWQMP.
b. The project design shall incorporate Low Impact Development (LID) and site design BMPs to minimize directly connected impervious areas and to promote infiltration using LID techniques as outlined in the County of San Diego’s LID handbook. Parking areas shall be designed to drain to landscape areas. Private roads shall be designed to drain to vegetated swales or landscaped areas.
c. The site shall comply with full trash capture requirements by providing completely enclosed trash and recycling enclosures and fitting all storm drain inlets with a State certified grate/screen or trash rack. Said devices RESOLUTION NO.
10 must be designed to capture debris of 5 mm or greater, while preventing flooding potential. In addition, any adjacent public storm drain inlet structure to which the site discharges must also be retrofitted with trash capture devices. The device which shall be used for public inlets is the ADS FlexStorm Connector Pipe Screen system or approved equal. d. All inlets must be labeled with concrete stamp or equivalent - stating, "No Dumping - Drains to River". If work is performed on a public inlet, the public inlet must be labeled with the following standard specification:

Public storm drain inlet markers shall be 4” diameter, stainless steel, natural embossed, inlet marker as manufactured by Almetek Industries or approved equal. Marker shall contain/state “No Dumping” with “Fish w/Wave” symbol and “Drains to Waterways” legend. Marker shall contain 2” long x 1/4” diameter threaded rod and shall be installed flush and wet-set in top of inlet, centered on width of inlet opening. e. Down spouts and HVAC systems are not permitted to be connected to any storm drain conveyance system. All non-storm water discharges must either drain to landscaped areas or be plumbed to the sewer. f. Fire suppression systems must be designed to be able to discharge to a sewer clean out for all maintenance and testing activities, or otherwise captured and contained on-site.
g. California native/drought-tolerant plants shall be used to the maximum extent feasible to minimize the need for irrigation. Where irrigation is necessary, then the system shall be designed and installed to prevent overspray or irrigation runoff during normal operations and during a break in the line.
h. The final project submittal shall include a standalone Operation and Maintenance (O&M) Plan in accordance with the City of Santee BMP Design Manual.

13. Minimum best management practices for storm water and water quality will be incorporated into the project’s Storm Water Quality Management Plan (SWQMP). (Engineering)

14. Construction Site Storm Water Compliance (Engineering) a. Provide proof of coverage under the General Permit for Discharges of Storm Water Associated with Construction Activity (Construction General Permit, WQ 2022-0057-DWQ) prior to start of construction. This project disturbs one or more acres of soil or disturbs less than one acre but is part of a larger common plan of development that in total disturbs one or more acres. Construction activity subject to this permit includes RESOLUTION NO.
11 clearing, grading and disturbances to the ground such as stockpiling, or excavation.
b. Submit a copy of the draft project specific Storm Water Pollution Prevention Plan (SWPPP) to the City for review and approval. The Construction SWPPP should contain a site map(s) which shows the construction site perimeter, existing and proposed buildings, lots, roadways, storm water collection and discharge points, general topography both before and after construction, and drainage patterns across the project. The Construction SWPPP must list Best Management Practices (BMP’s) the applicant will use to protect storm water runoff and the placement of those BMP’s. Section XIV of the Construction General Permit describes the SWPPP requirements.

15.Prior to Occupancy:
a. Provide two print copies and a digital copy of both the final approved Storm Water Quality Management Plan and the Operation and Maintenance Plan. (Engineering)
b. Submit a print and digital copy of the BMP Certification package. The BMP certification package includes but is not limited to: ‘wet’ signed and stamped certification form(s), all BMP related product receipts and materials delivery receipts, an inspection and installation log sheet, and photographs to document each stage of BMP installation. (Engineering) c. Prior to issuance of the final phase of occupancy, an executed contract must be in place with a qualified storm water service provider and a copy of the SWQMP provided to the consultant and the property manager. (Engineering)

16. A Storm Water Facilities Maintenance Agreement accepting responsibility for all structural BMP maintenance, repair and replacement as outlined in said O&M plan binding on the land throughout the life of the project will be required prior to issuance of building permit. (Engineering)

17. Submit a current preliminary title report (dated within six months of plan submittal) and all documents listed in the title report. Copies of recorded documents must be clear and legible copies of the original recorded document. (Engineering)

18. The applicant shall comply at all times with the following work hour requirements: (Engineering)
a. No site work, building construction, or related activities, including equipment mobilization will be permitted to start on the project prior to RESOLUTION NO.
12 7:00 am and all work for the day shall be completed by 7:00 pm, no exceptions.
b. No work is permitted on Sundays or City Holidays.
c. No deliveries, including equipment drop off and pick-up, shall be made to the project except between the hours of 8:00 am and 6:00 pm, Monday through Saturday, excluding Sundays and City Holidays.

Deliveries of emergency supplies or equipment necessary to secure the site or protect the public are permitted.
d. If the applicant fails or is unable to enforce compliance with their contractors, subcontractors and material suppliers regarding the specified work hours, additional reduction of work hours may be imposed by the Engineering Department.

In addition to the above, the applicant shall erect one or more signs stating the work hour restrictions. Signs shall be installed as required, in the vicinity of the project construction trailer if a job site trailer is used, or at such other locations as may be deemed appropriate by the Engineering Department.

The sign shall be a minimum of 24” x 36” and shall be weather proofed. The sign content shall be provided by the Engineering Department. (Engineering)

19. Trench work when required within City streets shall be completed within two weeks of the initial start date, including placement of the final trench patch.

Trench plates or temporary pavement placement shall be installed at the end of each workday. Advance warning signs on lighted barricades notifying the public of trench plates and/or uneven pavement shall be placed and maintained until permanent pavement repairs are made. The maximum length of time including weekends and holidays that trench plates may remain on the street is 72 hours after which temporary or permanent asphalt paving shall be placed. (Engineering)

20. Vehicle access on Mission Gorge Road, Cuyamaca Street, Olive Lane, Town Center Parkway, Carlton Hills Boulevard, Woodside Avenue, and Riverview Parkway shall be maintained at all times and all work shall be done at night unless otherwise approved by the Director of Engineering.

When day work is permitted, work hours shall be from 8:30 am to 3:30 pm, including set up and break down of traffic control. No day work will be permitted during the holiday season, defined as beginning the Saturday before Thanksgiving Day and shall extend through New Year’s Day, unless otherwise approved by the Director of Engineering. (Engineering)

21. The project is subject to requirements for persons with disabilities per California Building Code (CBC) Title 24, Part 2, Sections 11B. This includes but is not limited to areas noted below. (Building)
RESOLUTION NO.
13 a. Accessible route to all facilities. 11B-206.2. Access to the trash enclosure is required.

22. If fire protection is required for the building by the Fire Department, provide the location for all fire protection equipment, RPDA device, FDC, and riser room in the building with alarms and controls as these devices affect landscape area and access. (Building and Fire)

23. Address numbers shall be placed near the roofline of all structures visible from the street. Numbers shall be block style, 15” in height, black in color (or other approved color), in contrast with their background. (Fire and Sheriff)

24. The carwash tunnel is not required to be equipped with fire sprinklers. The equipment and any accessory rooms and/or closets are required to be constructed with an approved automatic fire sprinkler system installed by a licensed fire sprinkler contractor. A strobe shall be located below each address placement for indication of fire sprinkler activation. (Fire)

25. At least one fire hydrant is required. The hydrant shall have two, 2 1/2" ports and one, 4" port. Hydrants shall be of all bronze construction, painted “fire hydrant yellow” and be installed per Padre Dam Water District requirements. Exact location of required hydrants is to be determined by the Fire Code Official prior to installation. All underground utilities including fire mains, fire hydrants and fire service underground devices shall be installed and approved prior to the delivery of construction materials. (Fire)

26. Each building or address (equipped with an automatic fire sprinkler system) shall have a walk-in, enclosed, fire sprinkler riser room accessible from the outside of the building or address. The exact size and location of the riser room shall be approved by the Fire Department prior to construction. This room shall contain the fire sprinkler riser(s) for the building/address, pressure gauges for the system, applicable valves, sprinkler head box, “test and drain” inspectors test valve and any diagrams or documentation for the fire protection systems. These rooms shall have exterior locking hardware and a Knox Box shall be located at an approved location near the room for easy Fire Department access. The room shall be provided with lighting on the emergency circuit or have battery backup power. The rooms may be shared with other utilities. (Fire)

27. A Knox Box shall be located at the front of each building or other required location(s). Knox Box applications may be obtained from the Fire Department. Approval of the number and exact mounting location shall be determined by the Fire Department prior to installation. (Fire) RESOLUTION NO.
14 28. A minimum of one, 2A10BC fire extinguisher shall be located every 75’ of travel distance throughout the buildings. Exact extinguisher location to be determined by the Fire Department prior to installation. (Fire)

29. Trash receptacles shall comply with SMC Section 13.30.020(J) and shall be enclosed by a solid six-foot-high decorative block or stucco wall with view obstructing metal gates painted to match the proposed building. A solidcovered roof shall also be provided for the trash enclosure. (Planning)

30. Tubular steel fencing along the north and east property lines is required and shall comply with SMC Section 13.30.020(F). (Planning)

31. Landscape plans shall be certified by a licensed landscape architect for compliance with the Landscape and Irrigation Regulations set forth in SMC Chapter 13.36 and the California Model Water Efficient Landscape Ordinance. (Planning)

32. All new signs shall be approved separately through a Sign Permit subject to the requirements of SMC Chapter 13.32. (Planning)

33. Any equipment, whether on the roof, on the side of a building, or on the ground, shall be screened from view. The method of screening shall be architecturally integrated with the building design in terms of material, color, shape and size. All elevations submitted for building plan check shall show the method of screening of any proposed rooftop mechanical equipment. (Planning)

34. All construction plans shall include the following notes: (Planning) a. Operations shall conform to the SMC Section 5.04.090. b. All equipment shall be equipped with properly maintained mufflers. c. The construction contractor shall place noise-generating construction equipment and locate construction staging areas at the greatest possible distance from sensitive uses whenever feasible during all project construction.
d. The construction contractor shall use on-site electrical sources to power equipment rather than diesel generators where feasible. (Planning)

35. Two electric vehicle charging stations, Level 2 or higher, shall be provided.

36. Parking lot lighting shall comply with SMC Section 13.24.0309(A)(6) and shall not exceed 15 feet in height and shall be fully shielded to not cause glare on adjacent properties. (Planning)
RESOLUTION NO.
15 37. The project shall incorporate a 120 HP International Dryer Company dryer system or equivalent to meet the acoustical benchmarks. Any modification will require a re-evaluation. (Planning)
Prior to Grading

38.Construction, including tree removal, shall not occur during bird nesting season, which is generally between February 15 and August 15. If it is not feasible to avoid construction, including tree removal, during the bird nesting season, then a pre-construction survey shall be conducted by a qualified biologist no more than seven days prior to the start of construction to determine if active nests are present in trees to be removed. The qualified biologist conducting the survey(s) shall have, at a minimum, a bachelor’s degree in biology, ecology, zoology, or a related field of science, and at least two years of experience conducting biological field surveys, including surveys for nesting birds. (Planning)

39.At least 15 days prior to any grading activity all property owners and tenants 300 feet from the project site shall receive a notice of the slated grading activity that includes a project timeline and contact information for the site construction. (Planning)
During Construction:

40.Construction shall occur during the permissible hours as defined in SMC Section

5.04.090. (Planning)

41.The contractor shall ensure all construction equipment is equipped with appropriate noise attenuating devices. (Planning)

42.The contractor shall locate equipment staging areas that will create the greatest distance between construction-related noise / vibration sources and sensitive receptors nearest the project site during all project construction. (Planning)

43.Idling equipment shall be turned off when not in use. (Planning)

44.Equipment shall be maintained so that vehicles and their loads are secured from rattling and banging. (Planning)
Prior to Occupancy:

45. Applicant shall place all new utilities required to serve the project underground. No overhead facilities or extension of overhead facilities is permitted. (Engineering)
In addition, the applicant shall underground any existing overhead facilities on-site and underground any overhead facilities adjacent to the project to the satisfaction of the Director of Engineering. Adjacent facilities are defined RESOLUTION NO.
16 as existing overhead facilities in the abutting half street and may include extension of the undergrounding to either side of the project to the nearest existing utility pole.

46. Plant all new trees in and within 10 feet of the public right-of-way with root control barriers. (Engineering)

47. Construct all improvements within the public right-of-way and improvements as shown on the approved precise grading plans. Improvements shall be completed to the satisfaction of the Director of Engineering. (Engineering)

48. Prior to occupancy an AutoCAD site-plan drawing shall be provided on CD to the Fire Department for emergency response mapping. The site plan shall show all fire access roadways/driveways, buildings, address numbers, fire hydrants, fire sprinkler connections, and other details as required.

Please contact the Fire Department for exact details to be submitted for your project. (Fire)

49. A bond, equal to the cost of full landscape installation, shall be required and shall not be released for a minimum of one year until said landscaping is demonstrated to be fully viable. (Planning)
Upon establishment of the use pursuant to this Conditional Use Permit the following conditions shall apply:

50. All required landscaping shall be adequately watered and maintained in a healthy and thriving condition, free from weeds, trash, and debris. (Planning)

51. The parking areas and driveways shall be well maintained. (Planning)

52. All groundcover installed pursuant to an approved landscape plan shall provide 100 percent coverage within nine months of planting or additional landscaping, to be approved by the Planning & Building Department, shall be required in order to meet this standard. The developer shall be responsible for this planting even if their involvement in the project is otherwise complete. (Planning)

53. The car wash facility hours of operation shall be between 7:00 a.m. and 8:00 p.m., seven days a week. (Planning)

54. Dilapidated or deteriorated fabric shade covers shall be replaced within 48 hours. (Planning)
SECTION 4: The applicant shall defend, indemnify, and hold harmless the City of Santee and its officers, employees, and agents from any claim, action, or proceeding against the City and/or its officers, employees or agents to attack or set aside, void, or annul the RESOLUTION NO.
17 approval of the City of Santee concerning this Conditional Use Permit, or any action relating to or arising out of its approval.

SECTION 5: The terms and conditions of CUP-2023-0002 shall be binding upon the permittee and all persons, firms, and corporations having an interest in the property subject to this Conditional Use Permit and the heirs, executors, administrators, successors and assigns of each of them, including municipal corporations, public agencies and districts.

SECTION 6: The City of Santee Municipal Code, Chapter 1.08, provides for the issuance of administrative citations for Municipal Code violations. Should non-compliance with said terms and conditions of this Development Review Permit or any violation of the Municipal Code that includes the City’s Storm Water Ordinance, the City has the right to issue administrative citations containing an assessment of civil fines for each violation and collect administrative fines for violations.

SECTION 7: The approval of CUP-2023-0002 expires on March 27, 2027 at 5:00 p.m. except where substantial use has commenced prior to its expiration. If use of the development has not commenced within the three-year period, said expiration date may be extended pursuant to a request for time extension received 60 days prior to the original expiration date. The City Council expressly grants to the Planning & Building Director the authority to extend the expiration date of this approval pursuant to Section 13.04.090 of the Santee Municipal Code, when a request for an extension is filed 60 days prior to the original expiration date.

SECTION 8: Pursuant to Government Code Section 66020, the 90-day approval period in which the applicant may protest the imposition of any fees, dedications, reservations, or exactions imposed pursuant to this approval, shall begin on March 27, 2024.

SECTION 9: Staff is directed to file a Notice of Exemption for approval of the project with the San Diego County Clerk. The City of Santee hereby notifies the applicant that the County Clerk collects a documentary handling fee for the processing of CEQA documents. The applicant should remit to the City of Santee Planning & Building Department, within two (2) working days of the effective date of this approval (the "effective date" being the end of the appeal period, if applicable), a certified check payable to the "County Clerk" in the amount of $50.00. Failure to remit the required fee in full within the time specified above will result in a delay of the start of the thirty (35) day statute of limitations on court challenges to the approval under CEQA.

SECTION 10: The documents and materials that constitute the record of proceedings on which these findings have been based are located with the City Clerk at the City of Santee City Clerk’s office at 10601 Magnolia Avenue, Building #3, Santee, CA 92071.

RESOLUTION NO.
18 ADOPTED by the City Council of the City of Santee, California, at a Regular Meeting thereof held this 27th day of March 2024, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

ANNETTE ORTIZ, CMC, CITY CLERK
Item 11

STAFF REPORT

PUBLIC HEARING FOR THE ADOPTION OF THE COMMERCIAL CANNABIS

RETAIL BUSINESS APPLICATION PROCESS, INCLUDING PROCEDURES AND

FEES, AND FINDING THE ADOPTION OF THE COMMERCIAL CANNABIS BUSINESS RETAIL APPLICATION PROCESS IS NOT A “PROJECT” AS DEFINED BY THE CALIFORNIA ENVIRONMENTAL QUALITY ACT (“CEQA”) AND THEREFORE IS NOT SUBJECT TO CEQA.

APPLICANT: CITY OF SANTEE

CITY COUNCIL MEETING
MARCH 27, 2024
A. BACKGROUND
In August of 2022, the City Council enacted Ordinance 602, the Cannabis Business Permit Ordinance of the City of Santee (“City”), codified in Santee Municipal Code (“SMC) Section

7.04: Cannabis Businesses. Ordinance 602 permits the issuance of cannabis business permits for up to four (4) retailers, including microbusinesses with storefront retail activities.

Ordinance 602 also permits the issuance of cannabis business permits, with no limit on the number, for manufacturing, testing laboratories or microbusinesses that do not include storefront retail. Ordinance 602 prohibits all other types of cannabis business permits.

On November 9, 2022, City Council directed staff to develop an application process for the retail business licenses and appointed an Ad Hoc Subcommittee, consisting of Council Members Koval and McNelis, to assist in the development of the process. Since that time, staff and the Ad Hoc Subcommittee developed a four-phase evaluation process based on best practices observed in the cannabis industry.

On December 13, 2023, City Council reviewed the proposed Application Procedures and Review Criteria (“Procedures”) and directed staff to meet with the Ad Hoc Subcommittee to discuss outstanding questions.

On February 7, 2024, the Ad Hoc Subcommittee recommended that only one application be allowed per property, the points provided in the Procedures remain as presented in December of 2023, and that all development standards would need to be met for an application to be considered complete.

Staff has since incorporated the recommendations received and finalized the Procedures and related documents outlined in Attachments A-F.

B. SUMMARY
Application Process
The Procedures are attached for review and recommended for adoption. They provide guidance on the application process, including required application materials, limitations on Staff Report, Mach 27, 2024

multiple submissions and ownership interest, and the components of each of the four phases by which City Council will consider retail applications. These Procedures are consistent with Ordinance 602.

To start the process, after adoption by the City Council, staff will provide the Procedures on the City’s website for a short period. Then the City will open the application peroid, currently estimated for the Spring of 2024, for approximately 45 days. During that time, applicants will compile the required materials to be submitted through Santee’s Permitting and Licensing Portal and pay their application fee.

There are nine required application materials including the following:

1. Cannabis Business Permit Application, which includes:
a. Business Plan
b. Labor and Employment Plan
c. Security Plan
d. Qualification of Owners
e. Neighborhood Compatibility Plan
f. Community Benefits and Investment Plan
g. Proposed Site Plan;

2. Financial Responsibility, Indemnity and Consent to Inspection Agreement;

3. Agreement on Limitations of City’s Liability and Indemnification to City;

4. Verification of Live Scan Background Submittal;

5. Property Owner Consent/Landlord Affidavit;

6. Proof of Insurance or Letter of Insurability from the Insurance Company;

7. Proof of Capitalization;

8. Zoning Verification Letter;

9. Application Fee. (This fee will be submitted in person to the City.) The City is currently working with the County of San Diego Sheriff’s Department, License and Registration Division (“Sheriff’s Department”) for provision of their Live Scan background services. In the Procedures, there are blanks where the process as well as the fees will be added once determined with the Sheriff’s Department. After the materials are submitted via Santee’s Permitting and Licensing Portal, the applicant will need to pay the application fee of $ 25,711.

There are four phases to the application process, which are detailed in the Procedures. Below is a brief summary of the phases.

Phase I: Determination of Eligibility
After submittal of the applications, the City will move to Phase 1 where staff will review the applications to ensure that all materials were submitted and limitations on submittals have been met (e.g. no more than 10% ownership for more than one application and only one Staff Report, Mach 27, 2024

application per property).

Phase II: Application Evaluation and Review
Once applications are determined to be complete, staff will review and score each application using a merit-based system. Information about points available for scored items and what should be included in each document is provided in the Procedures. The top applicants from Phase II, as determined by the City Manager, may be eligible to advance to Phase III.

Phase III: Interviews
The top applicants from Phase II may be forwarded to the Staff Evaluation and Interview Committee, as designated by the City Manager. Using a merit-based system, the Committee will score the interviews and provide a ranking for the purpose of determining which applicants will move forward to Phase IV.

Phase IV: City Council Interviews and Final Decision
No more than ten qualifying applicants will advance from Phase III and be presented to the City Council for their consideration. The City Council will interview the applicants and make a final determination, which, if any applicants, would be awarded a permit.

Fees
The Cannabis Business Permit Ordinance established a commercial cannabis retail business application process, which must be completed prior to issuance of a cannabis business permit. A Fee Schedule has been developed for the implementation of the CCB Ordinance with the intent of full cost recovery. The fees are based on costs spent so far drafting the CCB Ordinance, Procedures, staff and consultant costs as well as anticipated costs for application review and interview, inspection, compliance, and other regulatory processes.

Cannabis Business Permit Fee Schedule
Fee Name/Type Fee
Application Fee $ 25,711
Zoning Verification Letter $ 267
Annual Renewal Fee $ 27,749
Annual Compliance Fee (pass through) Actual Cost
Change in Information Fee (deposit) $ 1,000
Transfer of Ownership Fee (deposit) $ 1,000
Appeal Fee $ 7,319
Criminal Background Investigation Fee
(pass through)
Actual Cost
Application Fee
The application fee covers the staff and consultant costs directly tied to the application process as well as the costs anticipated throughout the process itself. Costs associated with the design and implementation of the cannabis business permit application process include:
• Development of application forms and instructions
Staff Report, Mach 27, 2024

• Intake, processing, and review of application materials • Notification of missing materials and processing of supplemental information • Negotiation and execution of a community benefit agreement • Pre-permitting inspections
• Other general administrative functions
The total projected cost to the City for providing this service is $25,711 per applicant. In addition to the application fee, businesses will be expected to pay standard zoning, building permit, inspection and other fees normally associated with commercial construction in Santee.

Zoning Verification Letter
As part of a cannabis application packet, an applicant must obtain a Zoning Verification Letter from the Planning & Building Department. To secure this letter, an applicant must submit a written request to the Planning & Building Department specifying the intended use of the building and the proposed building location. Staff from the Planning & Building Department will review the information to verify the proposed location is eligible for a cannabis use, including measurement of minimum sensitive-use buffer distances. The total projected cost to the City for providing this service is $267 per applicant.

Annual Renewal Fee
Each issued Cannabis Business Permit will be required to be apply for renewal on an annual basis. Regulatory oversight of the cannabis business permits will involve staff from the City Manager’s Office, Planning & Building Department, Finance Department, City Attorney’s Office, Sheriff’s Department and other City departments.

Regulatory activities include, but are not limited to:
• Policy development and program management
• Public outreach and education
• Administrative enforcement
• Coordination with state agencies
• Fire safety
• Public safety
• Other oversight activities
The total projected cost for renewing Cannabis Business Permit and providing regulatory services for cannabis businesses is $27,749 per permittee. This cost is based upon the service provided by various City departments as well as a review of regulatory best practices by other cities in California.

Annual Compliance Fee
Annual inspections are required during operation of an active Cannabis Business Permit.

The total projected cost to the City for providing this service is not known at this time. It is expected that the City would procure outside professional services to provide this service and the actual cost will be passed down to the Permittee.

Staff Report, Mach 27, 2024

Change in Information Fee
Any time information specified in the Cannabis Business Permit is proposed to be changed (e.g. change in business floor plans or business operations), the permittee and/or applicant must submit an updated application for review approval. A deposit of $1,000 will be charged to the applicant and exact staff costs will be billed against that deposit. Any unused deposit will be returned to the Permittee.

Transfer of Ownership Fee
The owner of a Cannabis Business Permit may transfer ownership or control of the permit to another person or entity if they amend the Cannabis Business Permit to identify the transferee is now the permittee and the ownership interest is in accordance with the Ordinance. A deposit of $1,000 will be charged to the applicant and exact staff costs will be billed against that deposit. Any unused deposit will be returned to the Permittee.

Criminal Background Investigation Fee
The Cannabis Business Permit Ordinance requires that cannabis business owners complete a criminal background investigation as part of the business application process. Any person who has been convicted of a serious or violent felony may not operate, manage, control or own a cannabis business in Santee. Criminal background investigations are anticipated to be completed by the Sheriff’s Department. The total cost of providing this service is unknown at this time.

Appeal Process Fee
Applicants wishing to appeal throughout the application period will be charged a nonrefundable appeal fee in the amount of $7,319 to recover the City’s cost to administer the appeal process outlined in the following hearing report section.

Appeal Process
An applicant or permittee may appeal a decision to deny advancement in the selection process at each phase of the process leading to (but not including) the final selection phase by the City Council.

The appeal will be required to provide the following information along with the filing fee noted in the section above:
• The name, address, telephone number of the appellant; • A statement of whether the appellant is an applicant, owner, or permittee of a cannabis business;
• A true and correct copy of the notice of the decision or action issued that the appellant is appealing;
Staff Report, Mach 27, 2024

• A specific statement of all of the reasons and grounds for making the appeal in sufficient detail to enable the hearing officer to understand the nature of the controversy and the basis of the appeal; and
• All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer to consider at the hearing.

In order to ensure an unbiased evaluation, staff solicited proposals for a hearing officer to hear and timely resolve any appeals that are filed. No later than fifteen (15) calendar days following conclusion of the appeal hearing, and after considering all of the arguments and evidence submitted at the hearing, the hearing officer will make a final determination.

D. STAFF RECOMMENDATION
1) Conduct and close the public hearing; and
2) Find the adoption of the CCB Application Process is covered by the analysis in the 2022 Mitigated Negative Declaration and Mitigation Monitoring and Reporting Program for Ordinance 602 (State Clearinghouse No. 2022060058), and no subsequent environmental review is required as none of the circumstances in State CEQA Guidelines Section 15162 have occurred); and
3) Adopt the CCB Procedures, Fees and Appeal Process Resolution attached herein; and 4) Authorize the City Manager to make adjustments based on the background services provider agreement.

Attachments:

A. Application Procedures and Review Criteria
B. Cannabis Business Permit Application
C. Financial Responsibility, Indemnity and Consent to Inspection Agreement D. Property Owner Consent/Landlord Affidavit
E. Zoning Verification Letter
F. Resolution Adopting Cannabis Business Permit Procedures, and Fees 1 Attachment A
City of Santee
10601 Magnolia Ave
Santee, CA 92071
Email: [email protected]

APPLICATION PROCEDURES AND REVIEW CRITERIA

FOR A COMMERCIAL CANNABIS BUSINESS PERMIT
(RETAIL APPLICATIONS)
Application Period (45 Days)
OPENS – TBD
CLOSES – TBD

NUMBER OF PERMITS
During this application period, the City of Santee (City) will allow up to four (4) cannabis retail permits under this process.

RETAIL BUSINESS
 “Retailer” is defined as having a physical location from which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusive by delivery. (See Section 26070(a)(1) of the California Business and Professions Code and Santee Municipal Code (SMC) Section 7.04.060).

CONTACT
If you have any questions prior to submitting your application or would like an update on the status of your application, please email your questions to [email protected].

APPLICABLE REGULATIONS AND FORMS
Information regarding the Commercial Cannabis Retail Business (CCB) application process can be found on the City’s website at https://www.cityofsanteeca.gov/business/cannabis-business.

To be considered for issuance of a CCB Permit, applications must be submitted through the City’s online permitting system by the deadline. There will be no exceptions. These Application Procedures and Review Criteria (hereafter referred to as “Procedures”) constitute the City Council’s adopted Procedures to be used for the City’s evaluation of CCB Permit applications pursuant to SMC Section 7.04.130.

These Application Procedures and Review Criteria apply solely to Cannabis Retail applications. Applicants wishing to operate a Microbusiness with Retail are required to apply for a Cannabis Retail permit, prior to being considered for a Microbusiness permit.

Additional information regarding Microbusiness permits is provided in Appendix A. 2 Applicants should monitor the City’s web page
(https://www.cityofsanteeca.gov/business/cannabis-business) for information on the process. It is the responsibility of the Applicant to stay informed of all information provided on the webpage.

LIMITATIONS ON MULTIPLE SUBMISSIONS
Persons possessing an individual or cumulative ownership interest of ten percent (10%) or more in a retail cannabis business shall be limited to being a part of only one retail application during this application period. Any applications that share an owner of ten percent (10%) or more will be deemed incomplete.

In addition, the City will only accept one application per property. If the City receives more than one application per property, the City will notify the property owner and the property owner will need to notify the City, in writing, which application is authorized.

Without exception, only one retail permit will be issued per property.

CITY’S RESERVATION OF RIGHTS
The City reserves the right to reject any and/or all applications in accordance with these Procedures. The City may modify, postpone, or cancel the opportunity to submit an application for a CCB permit without liability, obligation, or commitment to any Applicant, person, owner, party, firm, organization or other entity of whatever form related to the process. In addition, the City reserves the right to request and obtain additional information from any Applicant in order to conduct a complete review of the application or an investigation into the truthfulness of the statements set forth in the application or provided at any stage of the application process.

APPLICATION SUBMITTAL REQUIREMENTS
Applications must adhere to the requirements in SMC Chapter 7.04.130 and respond to all requirements of these Procedures. Applicants must submit the required application materials (except the application fee) listed below to the City’s online permitting system. As noted below, the application fee must be submitted in person to the City before the application deadline.

1. Cannabis Business Permit Application;
A. Business Plan
B. Labor and Employment Plan
C. Security Plan
D. Qualification of Owners
E. Neighborhood Compatibility Plan
F. Community Benefits and Investment Plan
G. Proposed Site Plan

2. Financial Responsibility, Indemnity and Consent to Inspection Agreement;

APPLICATION PROCESS
3 3. Agreement on Limitations of City’s Liability and Indemnification to City;

4. Verification of Live Scan background submittal;

5. Property Owner Consent/Landlord Affidavit;

6. Proof of Insurance or Letter of Insurability from the Insurance Company;

7. Proof of Capitalization;

8. Zoning Verification Letter;

9. Application fee. (This fee shall be submitted in person to the City.) Please note that responses to the Evaluation Criteria, Sections A-G of #1 above and as further described in Appendix A of the Procedures, shall be limited to 125 pages. If the response exceeds 125 pages, points will be deducted. Responses pertaining to Items #2-8 above shall not be included in the 125-page limitation.

The electronic application portal will ask for each of the items (not including the application fee) listed above to be provided as PDF files. Please compile the PDF files as noted above.

Responses shall be saved in separate PDF files.

Applicant responses to the Evaluation Criteria (Sections A-G) must be provided in the section order identified in Appendix A. Each section shall be clearly labeled, with responses provided in the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section may receive a deduction in points.

CRIMINAL BACKGROUND CHECK
Each owner, operator, investor, manager, and employee of the proposed CCB will be required to pass a criminal history background check as required by SMC Section 7.04.080. For the purposes of this application process, only owners as defined in SMC Section 7.04.060 will be required to submit verification that they have applied for their background verification.

Evidence of a conviction by an owner of any the offenses enumerated below shall be grounds for rejection of the application:

1. A violent felony as defined by California Penal Code 667.5 or equivalent offenses in other states;

2. 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;

3. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

4. A crime involving dishonesty, fraud or deceit, including, but not limited to, fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, or equivalent offenses in other states.

This process will be required to meet the minimum threshold qualifications pursuant to SMC Section 7.04.080.

Live Scans will be performed by the San Diego County Sheriff’s Department (SDCSD) by appointment only. A copy of the Live Scan form is required as part of the application materials. 4 Applicants shall complete all blank fields provided in the “Request for Live Scan Service” form under the “Applicant Information” section. Applicants shall not alter the pre-completed sections of the Live Scan request form, as any modification may result in Live Scan rejection and/or delay by the DOJ or FBI. A separate form shall be filled out for each owner of the business receiving a Live Scan. The bottom portion of the “Request for Live Scan” form must be filled out by the person conducting the Live Scan. Live Scan results will be sent directly to the SDCSD. If, at any point, the SDCSD background investigation determines that one or more of the owners is ineligible pursuant to the SMC, the application will be denied.

ZONING VERIFICATION LETTER (ZVL)
As part of a complete application packet, an Applicant must obtain a Zoning Verification Letter from the Planning & Building Department. To secure this letter, an Applicant must make a written request to the Planning & Building Department, which shall specify the intended use of the building (for example, retail only or part of a microbusiness proposal) and the proposed building location with its assessor’s parcel number.

The issuance of a ZVL does not constitute written evidence of permission given by the City or any of its officials to operate a cannabis business, nor does it establish a “permit” within the meaning of the Permit Streamlining Act, nor does it create an entitlement under the Zoning or Building Code. A regulatory permit for a CCB does not constitute a permit that runs with the land once a cannabis business is established.

FEES
All applicants will be required to submit a fee of $25,711. Payment must be made by a certified check, cashier’s check or money order made payable to the City of Santee by 4pm on TBD.

Please note that application fees are non-refundable once the City has begun reviewing the application.

A separate fee for the Zoning Verification Letter (ZVL) of $267 per application must be paid upon submittal of the request to the Planning and Building Department. The Live Scan fee of the actual cost will be assessed by TBD at time of application for the background check by TBD.

Additional Live Scan fees will be applicable if the application is approved.

SUBMITTAL DEADLINE
Applications must be submitted through the City’s online permitting system by 4:00 pm on Date.

Late applications will not be accepted. Furthermore, applications may be rejected for the following, but not limited to, reasons:

1. It does not meet the requirements of the Procedures.

2. The issuance of the Cannabis Business Permit for the proposed location does not comply with State law or SMC.

INTEGRITY GUIDELINES
The following Integrity Guidelines (“Guidelines”) shall be operative from the start of the adoption of the application procedures, until the completion of Phase IV: City Council Interviews and Final Selection. Each applicant is individually and solely responsible for ensuring compliance with the 5 Guidelines. This responsibility extends to the applicant’s employees, agents, consultants, lobbyists, affiliates, and all other parties or individuals engaged for purposes of developing or supporting the application.

1. Collusive activities among applicants are expressly forbidden and may result in immediate disqualification of any involved parties.

2. Applicants are prohibited from offering promotional outreach, hospitality, gifts, or other like activities directed toward City staff, elected or appointed officials, application reviewers, or consultant(s) hired by the City to assist with the application process (collectively referred to as “City Officials”).

3. All communication related to Phases II – IV cannabis application process with City Officials must be directed to the City designated contact, listed on page 1 of these Procedures. Any attempt to communicate with other City Officials regarding Phases II – IV of the cannabis application process may result in disqualification of the application.

4. Notwithstanding the restrictions on communications set forth in point 3 above, nothing in these Guidelines is intended to restrict or prohibit applicants from communicating with City staff and officials during interviews in Phase III or during an open and public City Council or Commission meeting.

5. Any evidence which indicates an applicant has failed to comply with the Guidelines may result in that applicant’s disqualification. Any questions regarding the Guidelines shall be in writing and shall be transmitted by email to City designated contact.

PHASE I: DETERMINATION OF ELIGIBILITY
During Phase I, applications will be reviewed by City staff for completeness and compliance to meet the minimum submittal requirements of the Procedures. The determination of eligibility will be based on the criteria outlined in these Procedures. City staff may issue clarifications of these Procedures in writing, and any such clarifications will be posted on the City’s webpage (https://www.cityofsanteeca.gov/business/cannabis-business) and shall go into full effect immediately upon being posted on the website. A determination that an application is not eligible for advancement from Phase I to Phase II is subject to appeal in the manner and within the time frame prescribed by resolution of the City Council in accordance with SMC 7.04.220.

PHASE II: APPLICATION EVALUATION AND REVIEW (1,200 points) During Phase II, City staff will review and score each application using a merit-based system.

Applicants will be scored and ranked using the following evaluation criteria identified in Appendix A:
 Section A – Business Plan (400 points)
 Section B – Labor and Employment Plan (400 points)
 Section C – Security Plan (400 points)
The top applicants from Phase II, as determined by the City Manager, may be eligible to advance to Phase III. The decision as to how many applicants will advance will be determined in the City Manager’s sole discretion based on the quantity and the quality of applications the City receives. Notice of the individual application results of Phase II will be provided via email to the primary contact listed on the application. After the conclusion of Phase II, the points

APPLICATION REVIEW, SCORING, AND APPROVAL PROCESS
6 assigned to each applicant will be reset. A determination that an application is not eligible for advancement from Phase II to Phase III is subject to appeal in the manner and within the time frame prescribed by resolution of the City Council in accordance with SMC 7.04.220.

PHASE III: INTERVIEWS (1,600 points)
During Phase III, a Staff Evaluation and Interview Committee (Committee) designated by the City Manager will conduct a merit-based interview process. Applicants will be scored using the following evaluation criteria identified in in Appendix A:
• Section D – Qualifications of Owners (500 Points)
• Section E – Neighborhood Compatibility (400 Points)
• Section F – Community Benefits and Investments Plan (450 Points) • Section G – Proposed Site Plan (250 Points)
The City reserves the right to impose requirements on the interview process prior to conducting the interviews, and the City may issue written instructions regarding the manner in which the interviews are conducted.

Upon the completion of Phase III, the Committee will tabulate the scores of all Applicants from Phase III to create a preliminary ranking, which will form the basis for determining who will be invited to participate in Phase IV. The ranking will only be based upon the scores received during Phase III. No more than ten applicants will advance to Phase IV with the final number of applicants (i.e., ten or less) determined at the City Manager’s sole discretion based on the overall quantity and quality of Applicants under consideration. After the conclusion of Phase III, the points assigned to each applicant will be reset.

Prior to the tabulation of scores in Phase III, the City reserves the right to request and obtain additional information from any applicant, for purposes of clarifying or validating information provided during Phase III interviews. The City Manager may review the totality of the information received, including any additional information received, to determine which applicants are authorized to participate in Phase IV. A determination that an application is not eligible for advancement from Phase III to Phase IV is subject to appeal in the manner and within the time frame prescribed by resolution of the City Council in accordance with SMC

7.04.220.

PHASE IV: CITY COUNCIL INTERVIEWS AND FINAL DECISION
Upon the completion of Phase III, the City Manager will present to the City Council, at a properly noticed public meeting, the qualifying Applicants that advanced from the Phase III process. The presentation of Applicants by the City Manager shall exclude the Phase I-III scores and rankings. However, the information provided by the Applicants in Phase I-III will be made available to the City Council for purposes of its interviews and final decision.

During Phase IV, the City Council will interview Applicants and make a final determination as to which Applicant(s) will be awarded a CCB permit. In making this decision, the City Council has full discretion over which Applicant(s), if any, will be awarded a CCB permit, consistent with the purposes and intent of the City’s Cannabis Business Permit Ordinance. In making this decision, the City Council shall not be limited by the specific Evaluation Criteria identified in Appendix A or these Procedures. Each Applicant should be prepared to conduct a brief presentation and answer questions from the City Council. 7 Further details as to the date, time, place, and length of presentation will be provided prior to the date of public meeting.

In addition to reserving all of its rights, the City Council expressly reserves the right to consider microbusinesses for purposes of making final determination as to whether to award a CCB permit. In addition, the City also expressly reserves the right to award a lesser number of CCB Permits than the maximum allowed under the application process, or to award no permits at all.

Any decision made by the City Council to award or not to award a cannabis permit shall be final and shall not be subject to appeal. Notice of the individual application results of Phase IV will be provided in writing via email to the primary contact listed on the application.

After the City Council has made a determination as to which, if any, Applicants may be awarded a CCB permit, the selected Applicants shall enter into a Community Benefit Agreement with the City setting forth the terms and conditions under which the cannabis business will operate that are in addition to the requirements of the SMC within 30 days of being notified of the City Council’s intent to issue the CCB permit. The Community Benefit Agreement must be approved by the City Council before the CCB permit may be issued.

Any Applicant wishing to appeal final completeness or selection determination made in Phases I through III of the application Process may file an appeal with the City Clerk’s Office within ten (10) days of the Applicant receiving a notice that they will not move forward in the application process. Such appeals shall comply with the requirements of SMC Section 7.04.220 or procedures established thereunder and is subject to an appeal fee. Any decision made by the City Council during Phase IV to award or not award a cannabis permit shall be final and shall not be subject to appeal.

NOTE: Being awarded a CCB permit does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for all construction including: electrical, plumbing, fire, Planning & Building Department permits or reviews, and any other permits, licenses, or reviews as deemed necessary by the relevant departments or governmental entities in charge of said permits. Nor does the award of a CCB permit guarantee that the plans submitted via the CCB application process meet the standards or requirements in SMC Titles 11 and 13 and any other permit requirements from other City departments or agencies. Those awarded a CCB permit will be required to demonstrate compliance with all development standards outlined in SMC Title 13.
8 APPENDIX A: EVALUATION CRITERIA
Public Records Act
The City of Santee is a public agency subject to the California Public Records Act (“CPRA”).

Subject to review by a court of competent jurisdiction, the City shall make all determinations under the CPRA regarding when any record is required to be disclosed under the CPRA or when a record may be non-disclosable because an exemption to disclosure under the CPRA or other law applies. Depending on the circumstances, a particular record may be disclosable, permanently non-disclosable or may be non-disclosable at a particular phase of the application process and then disclosable during a later phase. By submitting any application, an Applicant acknowledges the applicability of the CPRA to this process, and agrees that the City, subject to judicial review, is the sole decision maker regarding compliance with the CPRA. Applicants should assume that anything submitted to the City as part of this process may become a disclosable public record.

Microbusiness Applicants
Responses to Evaluation Criteria Sections A-G shall focus primarily on storefront retail operations. Applicants intending to operate cannabis microbusiness operation shall communicate this intent through the Commercial Cannabis Business Permit Application form, under the section entitled “Applicant (Entity) Information.” No additional information regarding proposed microbusiness operation is required in Applicant written responses to Sections A-G of the Evaluation Criteria. Nothing within the Procedures prohibits an Applicant from providing information relating to their microbusiness operations in their written responses. However, Applicants should be aware that no additional points will be awarded during Phase II to Applicants who provide information related to proposed microbusiness operation in their written responses. For Applicants selected to progress to Phase III interviews, the City reserves the right to ask questions related to proposed microbusiness operation, if the Applicant selected one or both of these options on the application form.

PHASE II EVALUATION
Important Instructions:
• Evaluation Criteria identified in Sections A-C will be scored based upon Applicant written response. Points may be deducted for responses that fail to meet State/local regulatory requirements, or best practices for the cannabis industry. • Applicant responses to the Evaluation Criteria must be provided in the same order identified in Sections A-C below. Each section shall be clearly labeled, with responses provided within the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section will receive a deduction in points. • Any commitments made by an Applicant during the evaluation process will become terms and conditions under which the cannabis business must operate. Applicants awarded a permit that fail to meet commitments made during the evaluation process may have their cannabis business license suspended or revoked by the City.

SECTION A: BUSINESS PLAN (400 points)

1. Finances – Application includes a budget for construction, operations, maintenance, compensation of employees, equipment, property lease, security equipment and staff, City fees, state fees, utility costs, product purchases and other anticipated contingency 9 costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds. The application must also address the following:

A. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. (Note: Proof of Capitalization shall be submitted in a separate PDF file. See “Application Process” section for more information.)
B. A pro forma for at least three years of operations.

C. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

D. A letter from a bank, credit union, or similar financial institution stating that the cannabis applicant has, or will be provided, access to banking services. This letter should be within the last calendar month.

2. Daily Operations – The application describes the day-to-day operations of the proposed retail business. This shall include, at a minimum, a description of the following criteria:

A. Customer check-in procedures.

B. Location(s) and procedures for receiving deliveries during business hours.

C. The Point-of-Sale system, including the name of the system, to be used and how it will interact with the state’s mandated track and trace system. Locate and identify the number of Point-of-Sales terminals to be used when the business is at full capacity.

D. The expected number of customers to be served per hour/day.

E. The proposed product line, including brand names, to be sold at the business, and estimate the percentage of sales of flower and manufactured products.

F. How the Cannabis Business will conform to local and state laws. See SMC Section 7.04.360 for local requirements pertaining to retail establishments in the City of Santee.

G. How cannabis and cannabis products will be tracked and monitored to prevent diversion.

H. The proposed waste management plan, including waste disposal locations and security measures.

SECTION B: LABOR AND EMPLOYMENT PLAN (400 points)

1. Number of Employees – The application identifies the number of employees at initial opening and the maximum number of employees when the business is at full capacity.

2. Employee Responsibilities – The application identifies all positions to be employed at the proposed business, their responsibilities, and the salary ranges for those employment positions.

3. Employee Benefits – The application identifies the benefits provided to employees, including health care, vacation, and medical leave, to the degree they are offered as part of employment.

SECTION C: SECURITY PLAN (400 points)

1. Qualified Security Professional – The application includes a security plan prepared by a qualified professional that meets or exceeds all the security requirements of SMC 10 Section 7.04.320 and state law. The security plan can be prepared with in-house staff or a third-party security consultant but must clearly demonstrate that it meets the professional standards requested to receive the appropriate points for each criterion in this section. The qualifications of the person(s) preparing the security plan must be provided, for verification that they are able to meet these standards.

2. Premises Diagram – The application includes a Premise Diagram in the Security Plan that meets the following requirements:

A. The diagram meets all of the standards identified in Department of Cannabis Control (DCC) California Code of Regulations (CCR) Title 4, Division 19, §15006 Premises Diagram.

B. The diagram shows the boundaries of the property and the proposed location to be licensed, showing all dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and includes a brief statement or description of the principal activity to be conducted therein.

C. The diagram shows and identifies commercial cannabis activities that will take place in each area of the premises and identifies all limited-access areas.

D. The diagram shows where all cameras are located and assigns a number to each camera for identification purposes.

E. If the proposed location consists of only a portion of a property, the diagram is labeled indicating which part of the property will be used for the licensed premises and what activities will be used for the remaining property.

3. Operational Security – The application includes a description of operational security, including but not limited to general security for access/visitor control and inventory control.

4. Cash Handling – The application includes a description of cash handling procedures, including the process for receiving, tracking, storing and transporting cash generated by the retail business.

5. Perimeter Security – The application includes a description of perimeter security, exterior lighting, on-site security guards, proposed guard hours and their responsibilities.

6. Employee Training and Policies – The application includes a description of employee training and general security policies.

PHASE III EVALUATION
Important Instructions:
• During Phase III Interviews, Applicants will be asked questions related to some or all of the Evaluation Criteria Sections D-G.
• Due to the time limitation of interviews, Phase III questions may not address all of the criteria identified within each Section D-G, and the City reserves the right to develop Phase III questions in its sole discretion.
• Scoring for this phase will be based upon information conveyed verbally by Applicants, in response to the questions asked. Any scoring for Section G may also consider photographs, site plans, and other visual depictions provided by Applicants. 11 • All Applicants will be asked the same questions and be provided the same amount of time for response.
• Any commitment made by an Applicant during the Phase III Interview process may, in the City’s sole discretion, become a condition on the business permit, if issued. • Phase III scoring is independent of results from Phase II. Phase II scoring resets to zero when Phase III commences.

SECTION D: QUALIFICATION OF OWNERS (500 points)

1. Describe the business owner’s prior experience in owning, managing, and operating a legally permitted or licensed retail cannabis business in the United States. For purposes of this section, owner has the definition provided in SMC Section 7.04.060.

2. Describe the owner and/or team’s overall knowledge of the cannabis industry, including identification of how industry best practices and State regulations have been incorporated in existing/prior legal businesses outside the City of Santee.

3. Describe the involvement of the ownership team in the day-to-day operation and management of the proposed business.

SECTION E: NEIGHBORHOOD COMPATIBILITY PLAN (400 points)

1. Describe how the business will take proactive steps to avoid becoming a nuisance or having negative impacts on its neighbors or surrounding community. Additionally, describe how the business will react and respond to complaints specifically related to noise, light, odor, public consumption, loitering, littering, and vehicle and pedestrian traffic, including the business’s plan for the use of social media to monitor and respond to complaints.

2. Describe the policies that you would implement, and how you would enforce these policies, to ensure your cannabis products do not end up in the hands of underage youth.

SECTION F: COMMUNITY BENEFITS AND INVESTMENT PLAN (450 points)

1. Describe the benefits that the business will provide to the local community, for example by directly aiding, participating in, or funding the work of local non-profits, communitybased organizations, civic organizations, or social services organizations (“Community Organizations”). Note: Applicants should not identify any specific Community Organization at this time/or provide commitment letter(s) from local Community Organizations in the application submittal. This section is only intended to capture the overall commitment of Applicants to fund or support local community-based activity in general.

2. Identify the minimum wage that will be offered to employees of the proposed business, excluding tips and gratuities. If entry-level employees are salaried, the Applicant shall divide the minimum annual salary by 2,087 hours to arrive at an hourly rate.

3. Describe the Applicant’s plans for local outreach to City of Santee residents for open positions, and any other actions proposed by the Applicant that are intended to benefit 12 the local workforce and/or Applicant’s local employees. Identify the anticipated minimum percentage of total annual payroll hours that will be performed at the business by City of Santee residents.

4. The Community Benefits and Investment Plan shall also include a description of the direct fee that will be offered to the City, expressed as a percentage of annual gross receipts. The City anticipates a minimum of 5% of annual gross receipts.

SECTION G: PROPOSED SITE PLAN (250 points)

1. Provide the following information about the existing site:

A. Physical address;
B. Narrative description of the existing site, including building(s), parking spaces, driveways, pedestrian sidewalks/rights-of-way,
C. Photographs of the existing property and building(s); i. Note: Photographs of building interior are not required.

D. Description of how the site is currently being used; E. Description of any businesses currently operating on the parcel (if any), and any parcels directly adjacent to the existing site.

2. Provide the following information about the proposed site:

A. A site plan, drawn to scale, of the proposed business showing perimeter fencing, driveways, streets, property lines, buildings, parking areas, and outdoor areas.

B. A narrative description of proposed site improvements, including façade rehabilitation, building expansion, parking, landscaping, fencing, or other exterior site improvements;
i. Note: Descriptions of interior site improvements are not a requirement of this section.

C. Visual depictions of the proposed exterior of the cannabis business.

3. Describe how the proposed modifications and utilization of the site for cannabis retail activity will impact the public health, safety, welfare, environmental quality, and/or quality of life in the surrounding area.

COMMERCIAL CANNABIS

BUSINESS PERMIT

APPLICATION
(Retail Applications)
City of Santee
10601 Magnolia Ave
Santee, CA 92071
Email:
[email protected]
SANTEE COMMERCIAL CANNABIS BUSINESS APPLICATION Page 1 of 3 Attachment B

APPLICANT (ENTITY) INFORMATION
Applicant (Entity) Name: DBA:

Physical Address:

Street City State Zip
Primary Contact: Title:

Mailing Address:

Street City State Zip
Phone Number: Email:

HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF SANTEE? ☐ Yes ☐ No Indicate whether you intend to operate a Microbusiness with Retail. ☐ Yes ☐ No Business Formation: Describe how the business is organized. ☐ Sole Partnership ☐ Corporation ☐ S-Corporation ☐ Limited Partnership ☐ Limited Liability Company ☐ Other (please describe):

PROPOSED LOCATION
Property Owner Name:

Proposed Location
Address:

Street City State Zip
Property Owner Phone
Number: Email:

Zoning Clearance Letter : ☐ Yes ☐ No
Assessor’s Parcel Number (APN):

APPLICATION SUBMITTAL CHECKLIST
Applications must be submitted online via the City of Santee’s Permitting and Licensing Portal. Applicants failing to submit any of the following will be deemed incomplete and will not move forward in the application process:
 A complete and signed Commercial Cannabis Business Permit Application form and Evaluation Criteria. The evaluation criteria response is limited to 125 pages.
 A signed Financial Responsibility, Indemnity and Consent to Inspection Agreement form.  A signed Agreement to Limitations of City Liability and Indemnification to City form.  Verification of Live Scan background submittal
 A signed and notarized Property Owner Consent/Landlord Affidavit.  Proof of Insurance or Letter of Insurability from the Insurance Company  Proof of Capitalization
 Zoning Verification Letter.
 Application Fee. (Note that this fee should be submitted in person to the City).

SANTEE COMMERCIAL CANNABIS BUSINESS APPLICATION Page 2 of 3

OWNER INFORMATION
For the purpose of this section, “owner” shall have the same meaning as the word “owner” set forth Santee Municipal Code Section

7.04.060, which includes 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) 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 nonmember 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.

Ownership percentages should total 100%. If any individual(s) own(s) less than 10%, list the number of individuals who own less than 10% and the total percentage to reach 100%. For example, If John Doe owns 5%, Joe Smith owns 8%, and Mary Jones owns 9% state at the bottom of this form that three individuals own 22% so that the total will equal 100% once you individually include all those who own 10% or more.

I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %
Background information is
included as required? ☐ Yes ☐ No
Owner Name: Title:

Address:

Street City State Zip
Signature: Date:

I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %
Background Information is
included as required? ☐ Yes ☐ No
Owner Name: Title:

Address:

Street City State Zip
Signature: Date:

I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %
Background Information is
included as required? ☐ Yes ☐ No
Owner Name: Title:

Address:

Street City State Zip
Signature: Date:

I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %
Background information is
included as required? ☐ Yes ☐ No
Owner Name: Title:

Address:

Street City State Zip
Signature: Date:

Add more pages as necessary to accommodate all Commercial Cannabis Business Owners SANTEE COMMERCIAL CANNABIS BUSINESS APPLICATION Page 3 of 3

SUPPORTING INFORMATION
List all fictitious business names the applicant is operating under including the address where each business is located:

Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time in the previous five (5) years? If so, please list and explain:

Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction(s)? If so, which jurisdiction(s)?

APPLICATION CERTIFICATION
I hereby certify, under penalty of perjury, on behalf of myself and all owners, corporate officers, partners, and managersidentified in this application that the statements and information furnished in this application and the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued.

In addition, I understand that the filing of this application grants the City of Santee permission to reproduce submitted materials for distribution to staff, Commissions, Boards and City Council Members, and other Agencies to process the application. Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits, and photographs for any purpose unrelated to the City's consideration of this application.

Furthermore, by submitting this application, I understand and agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of Santee Municipal Code and State law.

Under penalty of perjury, I hereby declare that the information contained in within and submitted with the application is true, complete, and accurate. I understand that a misrepresentation of the facts is cause for rejection of this application, denial of a license or revocation of an issued license. I further authorize the City, its agents, and employees to seek verification of the information contained in the application.

Name Signature
Title Date
For information required as part of the application process, see the Application Procedures and Review Criteria, City of Santee Municipal Code Chapter 7.04. All documents can be found online at https://www.cityofsanteeca.gov/business/cannabis-business. For questions, please email:
[email protected].

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-1
Attachment C

CITY OF SANTEE

COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION
(RETAIL APPLICATIONS)

FINANCIAL RESPONSIBILITY, INDEMNITY AND

CONSENT TO INSPECTION TERMS
(Must be completed by all owners)
Dated: _____________________, 2024
I hereby agree to the following terms:

1. I herewith pay the sum of $25,711 for the application fee for the review and processing of an application for commercial cannabis business permit.

2. The entire fee amount paid to the City of Santee (“City”) is non-refundable. There is no guarantee - expressed or implied - that by submitting the application or paying the application fee that I will obtain a permit to operate a commercial cannabis business.

3. All costs incurred by the City in processing said application, including staff time, attorney’s fees, Consultant’s fees and overhead, shall be funded from the fees paid. This is a personal obligation and shall not be affected by sale or transfer of the property subject to the application, changes in business organization, or any other reason.

4. I acknowledge and agree to the defense, waiver, and indemnification obligations stated in the attached “Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties and Indemnification to City”, incorporated herein by reference.

5. The City will promptly notify the Applicant(s) and Owner(s) of any claim, action, or proceeding that is or may be subject to this Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. The City may, within its unlimited and sole discretion, participate in the defense of any such claim, action, orproceeding.

6. I will fund a deposit account (“Fund”) to reimburse the City’s cost, including attorney’s fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an initial sum of $20,000 to the Fund to reimburse the appropriate portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months’ worth of budgeted expenditures by the City relating to the City’s defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. Once all remaining Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-2
and outstanding reimbursements have been paid to the City by me, City shall return any remaining unused portion of the deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed to defend the City. To the extent the City uses any of its resources to respond to such claim, action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney’s time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

8. I consent and expressly allow, authorize, and permit the City, all its departments, agents, and employees, to enter upon and inspect the subject property identified in the application, with or without prior notice, for the purposes of processing this application or inspection or photographing for compliance with all laws, regulations, and conditions placed on land use approvals or the cannabis business permit. No additional permission or consent to enter upon the property is necessary or shall be required. By signing this agreement, I further certify and warrant I am authorized to, and hereby do, consent, and allow such inspections on behalf of each and all Owners of the property and Applicants.

9. I understand that all materials submitted in connection with the application are public records that the City may in accordance with applicable law determine are subject to inspection and copying by members of the public. By filing an application, I agree that the public may, if the City determines the law requires it, inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City’s website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the California Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hardcopy or electronic format.

10. This Agreement shall constitute a separate agreement from any cannabis business permit approval, and that if the cannabis business permit, in part or in whole, is revoked, invalidated, rendered null or set aside by a court of competent jurisdiction, I agree to be bound by the terms of this Agreement, which shall survive such invalidation, nullification or setting aside.

11. This Agreement shall be construed and enforced in accordance with the laws of the State of California and in any legal action or other proceeding brought by either party to enforce or interpret this Agreement; the appropriate venue is the San Diego County Superior Court.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached “Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties and Indemnification to City”.

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-3
Applicant(s)/Owner(s):

Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-4
Agreement on Limitations of City’s Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Santee (“City”) and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to the application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business’ operations.

I hereby waive, release and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to: (1) any repeal or amendment of any provision of the Santee Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the cannabis business’ owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its City Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney’s fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City’s approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City’s approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City’s drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City’s drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to the cannabis business, x) the operation of the cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, the cannabis business permit or any related land use entitlement, or the appeal of either, xii) City’s compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-5
local laws by the cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant’s sole cost and expense. I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorney’s fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge (“Costs”), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

C. OBLIGATIONS INDEPENDENT OF AWARD OF PERMIT, LICENSE, OR ENTITLEMENTS The obligations under this Agreement shall apply regardless of whether a cannabis business permit or any related permits or entitlements are issued.

D. OBLIGATIONS SURVIVE EXPIRATION OF PERMIT, LICENSE, OR ENTITLEMENTS The obligations under this Agreement shall survive the expiration of any cannabis business permit or related permit or entitlement issued by the City. No modification of the permit, other approval, change in applicable laws and regulations, or change in processing methods shall alter the applicant’s indemnity obligation.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City F-6
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Santee.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Santee Municipal Code, Chapter 7.04, and all other applicable sections of the Municipal Code.

Applicant Signature Printed Name and Title
Name of Business Entity Address of Permitted Location
Date
Applicant Signature Printed Name and Title
Name of Business Entity Address of Permitted Location
Date
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of ______________
Subscribed and sworn to (or affirmed) before me on this _____ day of ____________________, 2024, by ____________________________________, proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature ____________________________. (Seal)
City of Santee
10601 Magnolia Ave
Santee, CA 92071
Email: [email protected]
Attachment D

PROPERTY OWNER CONSENT/LANDLORD AFFIDAVIT
Property Owner Consent/Landlord Affidavit is required for all Applications. If the business owner is the same person/entity as the property owner, the business owner must complete, sign and notarize the Property Owner Consent/Landlord Affidavit form. If the property is owned by an entity, the entity owner must complete, sign, and notarize the Property Owner Consent/Landlord Affidavit.

I certify that I am/we are the record owner(s) of the property at:
____________________________________________________________________________________ Street City State Zip
____________________________________________________________________________________, Accessor Parcel Number (APN)
and that the information filed is true and correct to the best of my (our) knowledge. I/We, as the owner(s) of the subject property, consent to the filing of this application and use of the property for the purposes described herein. I/We further consent and hereby authorize City representative(s) to enter upon my property for the purpose of examining and inspecting the property in preparation of any reports and/or required environmental review for the processing of the application(s) being filed.

BY MY SIGNATURE BELOW, I CERTIFY TO EACH OF THE FOLLOWING:

I am the property owner or am authorized to act on the property owner's behalf, and the information I have provided above is correct. I acknowledge that I have read and understand the information contained herein.

I acknowledge that the proposed commercial cannabis business ________________________________ Tenant (Corporation/LLC/Partnership/Sole Owner) has the legal right to occupy the property, and consent to the business conducting the following commercial cannabis activity at the Property:

Retail (Storefront)
Retail (Storefront with Deliver)
Microbusiness (with Retail)
I agree to comply with all applicable City Ordinances and State Laws.

SIGNATURE OF PROPERTY OWNER(S):

PRINTED NAME OF PROPERTY OWNER(S) SIGNATURE OF PROPERTY OWNER(S)

PRINTED NAME OF PROPERTY OWNER(S) SIGNATURE OF PROPERTY OWNER(S) Subscribed and sworn to before me this day of , 20 , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me _____________________________________. *NOTARIZATION REQUIRED. This authorization form will not be valid without notarization. The authorization contained in this form automatically expires upon sale or transfer of title to the Property. If sale or transfer of the Property occurs prior to obtaining a business license, the applicant must resubmit this notarized form with approval of the new legal owner(s) of the Property as well as pay any applicable fees. Property Owner authorization must be signed by all Property Owners of the property identified in the Application. Attach additional pages if necessary.

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

Attachment E

CANNABIS ZONING VERIFICATION LETTER
Date: _____________

Business Name: ________________________________________ Name of Applicant: ______________________________________ Proposed Location:

Address: ______________________________________________________ Accessor Parcel Number (APN): ____________________________________

Proposed Land Use: Retail
Microbusiness

Current Zoning of Proposed Location: ____________________ Does the proposed location meet:

The 900-foot buffer from sensitive use locations in the City of Santee: Yes No The 600-foot buffer from sensitive use locations outside of the City of Santee: Yes No

Director of Planning and Building/City Planner Signature _______________________ Date ________________
Note: The issuance of a ZVL does not constitute written evidence of permission given by the City or any of its officials to operate a cannabis business, nor does it establish a “permit” within the meaning of the Permit Streamlining Act, nor does it create an entitlement under the Zoning or Building Code. Commercial Cannabis Retail Businesses (CCBs) are required to comply with all applicable development standards outlined in Santee Municipal Code. A regulatory permit for a CCB does not constitute a permit that runs with the land once a cannabis business is established.

RESOLUTION NO.

Attachment F

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

ADOPTING THE COMMERCIAL CANNABIS RETAIL BUSINESS APPLICATION

PROCESS, INCLUDING PROCEDURES, FEES AND APPEAL PROCESS, AND

FINDING THE ACTION IS COVERED BY THE PREVIOUSLY ADOPTED MITIGATED

NEGATIVE DECLARATION FOR THE SANTEE CANNABIS BUSINESS ORDINANCE

PURSUANT TO THE CALIFORNIA ENVIRONMENTAL QUALITY ACT
WHEREAS, in August of 2022, the City Council enacted Ordinance 602, the Cannabis Business Permit Ordinance of the City of Santee (City), codified as Chapter

7.04 of the Santee Municipal Code; and
WHEREAS, at a hearing was held on December 13, 2023, staff presented the draft Commercial Cannabis Retail Business (CCB) Application Process, including Application Procedures and Review Criteria (“Procedures”), fees and related documents to City Council; and
WHEREAS, Santee Municipal Code Section 7.04.130 provides that the Procedures for the City’s evaluation of CCB applications shall be established by resolution of the City Council; and
WHEREAS, the Procedures shall provide the process for soliciting applications including time frames, limitations, forms, and rules for completing applications; and WHEREAS, 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; and
WHEREAS, the scoring on review criteria shall be used to determine which candidates will be eligible to proceed to the final selection process as established by resolution of the City Council; and
WHEREAS, the City Manager shall be authorized to prepare any necessary forms and adopt any necessary rules to implement the Procedures; and WHEREAS, 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; and
WHEREAS, Santee Municipal Code Section 7.04.180 provides that an Annual Renewal Fee shall be established by resolution of 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; and WHEREAS, Santee Municipal Code Section 7.04.230 provides that a Change in RESOLUTION NO.

Information Fee may be established to cover the cost of reviewing an updated application; and
WHEREAS, Santee Municipal Code Section 7.04.240 provides that a Transfer of Ownership Fee shall be established by resolution of the City to cover the cost of reviewing an updated application; and
WHEREAS, Santee Municipal Code Section 7.04.220 provides that a CCB Appeal Fee shall be established by resolution of the City Council to cover all costs incurred by the City in the appeal process; and
WHEREAS, Santee Municipal Code Section 7.04.330 provides that all fees and charges associated with the operation of a cannabis activity shall be established by resolution of the City Council and shall be subject to adjustment in accordance with the Consumer Price Index; and
WHEREAS, Santee Municipal Code Section 7.04.220 provides that appeals relating to denial of a cannabis business permit application; denial of advancement to the final selection process; revocation or suspension of a cannabis business permit; 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; and WHEREAS, the City Council desires to adopt the Santee Procedures, fees and appeal process attached to this Resolution and incorporated herein.

NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Santee, California, as follows:

SECTION 1: The Recitals provided above are true and correct and are hereby incorporated into this Resolution.

SECTION 2: The Santee CCB Procedures attached as Exhibit “A” is hereby adopted.

SECTION 3: The Santee CCB Fee Schedule attached as Exhibit “B” is hereby adopted.

SECTION 4: The Santee CCB Appeals Process attached as Exhibit “C” is hereby adopted.

SECTION 5: Pursuant to the requirements of the California Environmental Quality Act (“CEQA”), the City Council adopted a Mitigated Negative Declaration (“MND”) and Mitigation Monitoring and Reporting Program for the Santee Cannabis Business Ordinance in July 2022 (State Clearinghouse No. 2022060058), and adopted Ordinance 602 in August 2022. The CCB Application Process involves the adoption of the Procedures and fees for the implementation of the CCB Ordinance of the City of Santee, and is therefore covered by the analysis in the 2022 MND. No subsequent environmental review is required as none of the circumstances in State CEQA Guidelines Section 15162 RESOLUTION NO.
have occurred. Further, adoption of the CCB Procedures and fees does not have the potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment and therefore the CCB Application Process is not a “project” as defined by CEQA (Public Resources Code section 21065; CEQA Guidelines section 15378). Any necessary compliance with CEQA for individual projects would be required prior to construction authorization.

SECTION 6: This Resolution shall take effect immediately upon its passage.

ADOPTED by the City Council of the City of Santee, California, at a Regular meeting thereof held this ____ day of _______, 2024 by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

ANNETTE ORTIZ, CMC, CITY CLERK
Exhibit “A” – Santee CCB Procedures
Exhibit “B” – Santee CCB Fee Schedule
Exhibit “C” – Santee CCB Appeals Process
RESOLUTION NO.

Exhibit “A”
Santee CCB Procedures
City of Santee
10601 Magnolia Ave
Santee, CA 92071
Email: [email protected]

APPLICATION PROCEDURES AND REVIEW CRITERIA

FOR A COMMERCIAL CANNABIS BUSINESS PERMIT
(RETAIL APPLICATIONS)
Application Period (45 Days)
OPENS – TBD
CLOSES – TBD

NUMBER OF PERMITS
During this application period, the City of Santee (City) will allow up to four (4) cannabis retail permits under this process.

RETAIL BUSINESS
 “Retailer” is defined as having a physical location from which commercial cannabis activities are conducted. A retailer’s premises may be closed to the public. A retailer may conduct sales exclusive by delivery. (See Section 26070(a)(1) of the California Business and Professions Code and Santee Municipal Code (SMC) Section 7.04.060).

CONTACT
If you have any questions prior to submitting your application or would like an update on the status of your application, please email your questions to [email protected].

APPLICABLE REGULATIONS AND FORMS
Information regarding the Commercial Cannabis Retail Business (CCB) application process can be found on the City’s website at https://www.cityofsanteeca.gov/business/cannabis-business.

To be considered for issuance of a CCB Permit, applications must be submitted through the City’s online permitting system by the deadline. There will be no exceptions. These Application These Application Procedures and Review Criteria apply solely to Cannabis Retail applications. Applicants wishing to operate a Microbusiness with Retail are required to apply for a Cannabis Retail permit, prior to being considered for a Microbusiness permit. Additional information regarding Microbusiness permits is provided in Appendix A.

RESOLUTION NO.

Procedures and Review Criteria (hereafter referred to as “Procedures”) constitute the City Council’s adopted Procedures to be used for the City’s evaluation of CCB Permit applications pursuant to SMC Section 7.04.130.

Applicants should monitor the City’s web page
(https://www.cityofsanteeca.gov/business/cannabis-business) for information on the process. It is the responsibility of the Applicant to stay informed of all information provided on the webpage.

LIMITATIONS ON MULTIPLE SUBMISSIONS
Persons possessing an individual or cumulative ownership interest of ten percent (10%) or more in a retail cannabis business shall be limited to being a part of only one retail application during this application period. Any applications that share an owner of ten percent (10%) or more will be deemed incomplete.

In addition, the City will only accept one application per property. If the City receives more than one application per property, the City will notify the property owner and the property owner will need to notify the City, in writing, which application is authorized.

Without exception, only one retail permit will be issued per property.

CITY’S RESERVATION OF RIGHTS
The City reserves the right to reject any and/or all applications in accordance with these Procedures. The City may modify, postpone, or cancel the opportunity to submit an application for a CCB permit without liability, obligation, or commitment to any Applicant, person, owner, party, firm, organization or other entity of whatever form related to the process. In addition, the City reserves the right to request and obtain additional information from any Applicant in order to conduct a complete review of the application or an investigation into the truthfulness of the statements set forth in the application or provided at any stage of the application process.

APPLICATION SUBMITTAL REQUIREMENTS
Applications must adhere to the requirements in SMC Chapter 7.04.130 and respond to all requirements of these Procedures. Applicants must submit the required application materials (except the application fee) listed below to the City’s online permitting system. As noted below, the application fee must be submitted in person to the City before the application deadline.

1. Cannabis Business Permit Application;
A. Business Plan
B. Labor and Employment Plan
C. Security Plan
D. Qualification of Owners
E. Neighborhood Compatibility Plan
F. Community Benefits and Investment Plan

APPLICATION PROCESS
RESOLUTION NO.

G. Proposed Site Plan

2. Financial Responsibility, Indemnity and Consent to Inspection Agreement;

3. Agreement on Limitations of City’s Liability and Indemnification to City;

4. Verification of Live Scan background submittal;

5. Property Owner Consent/Landlord Affidavit;

6. Proof of Insurance or Letter of Insurability from the Insurance Company;

7. Proof of Capitalization;

8. Zoning Verification Letter;

9. Application fee. (This fee shall be submitted in person to the City.) Please note that responses to the Evaluation Criteria, Sections A-G of #1 above and as further described in Appendix A of the Procedures, shall be limited to 125 pages. If the response exceeds 125 pages, points will be deducted. Responses pertaining to Items #2-8 above shall not be included in the 125-page limitation.

The electronic application portal will ask for each of the items (not including the application fee) listed above to be provided as PDF files. Please compile the PDF files as noted above. Responses shall be saved in separate PDF files.

Applicant responses to the Evaluation Criteria (Sections A-G) must be provided in the section order identified in Appendix A. Each section shall be clearly labeled, with responses provided in the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section may receive a deduction in points.

CRIMINAL BACKGROUND CHECK
Each owner, operator, investor, manager, and employee of the proposed CCB will be required to pass a criminal history background check as required by SMC Section 7.04.080. For the purposes of this application process, only owners as defined in SMC Section 7.04.060 will be required to submit verification that they have applied for their background verification.

Evidence of a conviction by an owner of any the offenses enumerated below shall be grounds for rejection of the application:

1. A violent felony as defined by California Penal Code 667.5 or equivalent offenses in other states;

2. 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;

3. A felony for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code; or

4. A crime involving dishonesty, fraud or deceit, including, but not limited to, fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, or equivalent offenses in other states.

This process will be required to meet the minimum threshold qualifications pursuant to SMC Section 7.04.080.

RESOLUTION NO.

Live Scans will be performed by the San Diego County Sheriff’s Department (SDCSD) by appointment only. A copy of the Live Scan form is required as part of the application materials.

Applicants shall complete all blank fields provided in the “Request for Live Scan Service” form under the “Applicant Information” section. Applicants shall not alter the pre-completed sections of the Live Scan request form, as any modification may result in Live Scan rejection and/or delay by the DOJ or FBI. A separate form shall be filled out for each owner of the business receiving a Live Scan. The bottom portion of the “Request for Live Scan” form must be filled out by the person conducting the Live Scan. Live Scan results will be sent directly to the SDCSD. If, at any point, the SDCSD background investigation determines that one or more of the owners is ineligible pursuant to the SMC, the application will be denied.

ZONING VERIFICATION LETTER (ZVL)
As part of a complete application packet, an Applicant must obtain a Zoning Verification Letter from the Planning & Building Department. To secure this letter, an Applicant must make a written request to the Planning & Building Department, which shall specify the intended use of the building (for example, retail only or part of a microbusiness proposal) and the proposed building location with its assessor’s parcel number.

The issuance of a ZVL does not constitute written evidence of permission given by the City or any of its officials to operate a cannabis business, nor does it establish a “permit” within the meaning of the Permit Streamlining Act, nor does it create an entitlement under the Zoning or Building Code. A regulatory permit for a CCB does not constitute a permit that runs with the land once a cannabis business is established.

FEES
All applicants will be required to submit a fee of $25,711. Payment must be made by a certified check, cashier’s check or money order made payable to the City of Santee by 4pm on TBD.

Please note that application fees are non-refundable once the City has begun reviewing the application.

A separate fee for the Zoning Verification Letter (ZVL) of $267 per application will be paid upon submittal of the request to the Planning and Building Department. The Live Scan fee of the actual cost will be assessed by TBD at time of application for the background check by TBD. Additional Live Scan fees will be applicable if the application is approved.

SUBMITTAL DEADLINE
Applications must be submitted through the City’s online permitting system by 4:00 pm on Date.

Late applications will not be accepted. Furthermore, applications may be rejected for the following, but not limited to, reasons:

1. It does not meet the requirements of the Procedures.

2. The issuance of the Cannabis Business Permit for the proposed location does not comply with State law or SMC.

RESOLUTION NO.

INTEGRITY GUIDELINES
The following Integrity Guidelines (“Guidelines”) shall be operative from the start of the adoption of the application procedures, until the completion of Phase IV: City Council Interviews and Final Selection. Each applicant is individually and solely responsible for ensuring compliance with the Guidelines. This responsibility extends to the applicant’s employees, agents, consultants, lobbyists, affiliates, and all other parties or individuals engaged for purposes of developing or supporting the application.

1. Collusive activities among applicants are expressly forbidden and may result in immediate disqualification of any involved parties.

2. Applicants are prohibited from offering promotional outreach, hospitality, gifts, or other like activities directed toward City staff, elected or appointed officials, application reviewers, or consultant(s) hired by the City to assist with the application process (collectively referred to as “City Officials”).

3. All communication related to Phases II – IV cannabis application process with City Officials must be directed to the City designated contact, listed on page 1 of these Procedures. Any attempt to communicate with other City Officials regarding Phases II – IV of the cannabis application process may result in disqualification of the application.

4. Notwithstanding the restrictions on communications set forth in point 3 above, nothing in these Guidelines is intended to restrict or prohibit applicants from communicating with City staff and officials during interviews in Phase III or during an open and public City Council or Commission meeting.

5. Any evidence which indicates an applicant has failed to comply with the Guidelines may result in that applicant’s disqualification. Any questions regarding the Guidelines shall be in writing and shall be transmitted by email to City designated contact.

PHASE I: DETERMINATION OF ELIGIBILITY
During Phase I, applications will be reviewed by City staff for completeness and compliance to meet the minimum submittal requirements of the Procedures. The determination of eligibility will be based on the criteria outlined in these Procedures. City staff may issue clarifications of these Procedures in writing, and any such clarifications will be posted on the City’s webpage (https://www.cityofsanteeca.gov/business/cannabis-business) and shall go into full effect immediately upon being posted on the website. A determination that an application is not eligible for advancement from Phase I to Phase II is subject to appeal in the manner and within the time frame prescribed by resolution of the City Council in accordance with SMC 7.04.220.

PHASE II: APPLICATION EVALUATION AND REVIEW (1,200 points) During Phase II, City staff will review and score each application using a merit-based system.

Applicants will be scored and ranked using the following evaluation criteria identified in Appendix A:
 Section A – Business Plan (400 points)
 Section B – Labor and Employment Plan (400 points)
 Section C – Security Plan (400 points)

APPLICATION REVIEW, SCORING, AND APPROVAL PROCESS
RESOLUTION NO.

The top applicants from Phase II, as determined by the City Manager, may be eligible to advance to Phase III. The decision as to how many applicants will advance will be determined in the City Manager’s sole discretion based on the quantity and the quality of applications the City receives.

Notice of the individual application results of Phase II will be provided via email to the primary contact listed on the application. After the conclusion of Phase II, the points assigned to each applicant will be reset. A determination that an application is not eligible for advancement from Phase II to Phase III is subject to appeal in the manner and within the time frame prescribed by resolution of the City Council in accordance with SMC 7.04.220.

PHASE III: INTERVIEWS (1,600 points)
During Phase III, a Staff Evaluation and Interview Committee (Committee) designated by the City Manager will conduct a merit-based interview process. Applicants will be scored using the following evaluation criteria identified in in Appendix A:
• Section D – Qualifications of Owners (500 Points)
• Section E – Neighborhood Compatibility (400 Points)
• Section F – Community Benefits and Investments Plan (450 Points) • Section G – Proposed Site Plan (250 Points)
The City reserves the right to impose requirements on the interview process prior to conducting the interviews, and the City may issue written instructions regarding the manner in which the interviews are conducted.

Upon the completion of Phase III, the Committee will tabulate the scores of all Applicants from Phase III to create a preliminary ranking, which will form the basis for determining who will be invited to participate in Phase IV. The ranking will only be based upon the scores received during Phase III. No more than ten applicants will advance to Phase IV with the final number of applicants (i.e., ten or less) determined at the City Manager’s sole discretion based on the overall quantity and quality of Applicants under consideration. After the conclusion of Phase III, the points assigned to each applicant will be reset.

Prior to the tabulation of scores in Phase III, the City reserves the right to request and obtain additional information from any applicant, for purposes of clarifying or validating information provided during Phase III interviews. The City Manager may review the totality of the information received, including any additional information received, to determine which applicants are authorized to participate in Phase IV. A determination that an application is not eligible for advancement from Phase III to Phase IV is subject to appeal in the manner and within the time frame prescribed by resolution of the City Council in accordance with SMC 7.04.220.

PHASE IV: CITY COUNCIL INTERVIEWS AND FINAL DECISION
Upon the completion of Phase III, the City Manager will present to the City Council, at a properly noticed public meeting, the qualifying Applicants that advanced from the Phase III process. The presentation of Applicants by the City Manager shall exclude the Phase I-III scores and rankings.

However, the information provided by the Applicants in Phase I-III will be made available to the City Council for purposes of its interviews and final decision.

During Phase IV, the City Council will interview Applicants and make a final determination as to which Applicant(s) will be awarded a CCB permit. In making this decision, the City Council RESOLUTION NO.
has full discretion over which Applicant(s), if any, will be awarded a CCB permit, consistent with the purposes and intent of the City’s Cannabis Business Permit Ordinance. In making this decision, the City Council shall not be limited by the specific Evaluation Criteria identified in Appendix A or these Procedures. Each Applicant should be prepared to conduct a brief presentation and answer questions from the City Council. Further details as to the date, time, place, and length of presentation will be provided prior to the date of public meeting.

In addition to reserving all of its rights, the City Council expressly reserves the right to consider microbusinesses for purposes of making final determination as to whether to award a CCB permit.

In addition, the City also expressly reserves the right to award a lesser number of CCB Permits than the maximum allowed under the application process, or to award no permits at all. Any decision made by the City Council to award or not to award a cannabis permit shall be final and shall not be subject to appeal. Notice of the individual application results of Phase IV will be provided in writing via email to the primary contact listed on the application.

After the City Council has made a determination as to which, if any, Applicants may be awarded a CCB permit, the selected Applicants shall enter into a Community Benefit Agreement with the City setting forth the terms and conditions under which the cannabis business will operate that are in addition to the requirements of the SMC within 30 days of being notified of the City Council’s intent to issue the CCB permit. The Community Benefit Agreement must be approved by the City Council before the CCB permit may be issued.

Any Applicant wishing to appeal final completeness or selection determination made in Phases I through III of the application Process may file an appeal with the City Clerk’s Office within ten (10) days of the Applicant receiving a notice that they will not move forward in the application process.

Such appeals shall comply with the requirements of SMC Section 7.04.220 or procedures established thereunder and is subject to an appeal fee. Any decision made by the City Council during Phase IV to award or not award a cannabis permit shall be final and shall not be subject to appeal.

NOTE: Being awarded a CCB permit does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for all construction including: electrical, plumbing, fire, Planning & Building Department permits or reviews, and any other permits, licenses, or reviews as deemed necessary by the relevant departments or governmental entities in charge of said permits. Nor does the award of a CCB permit guarantee that the plans submitted via the CCB application process meet the standards or requirements in SMC Titles 11 and 13 and any other permit requirements from other City departments or agencies.

Those awarded a CCB permit will be required to demonstrate compliance with all development standards outlined in SMC Title 13.

RESOLUTION NO.

APPENDIX A: EVALUATION CRITERIA
Public Records Act
The City of Santee is a public agency subject to the California Public Records Act (“CPRA”).

Subject to review by a court of competent jurisdiction, the City shall make all determinations under the CPRA regarding when any record is required to be disclosed under the CPRA or when a record may be non-disclosable because an exemption to disclosure under the CPRA or other law applies. Depending on the circumstances, a particular record may be disclosable, permanently non-disclosable or may be non-disclosable at a particular phase of the application process and then disclosable during a later phase. By submitting any application, an Applicant acknowledges the applicability of the CPRA to this process, and agrees that the City, subject to judicial review, is the sole decision maker regarding compliance with the CPRA. Applicants should assume that anything submitted to the City as part of this process may become a disclosable public record.

Microbusiness Applicants
Responses to Evaluation Criteria Sections A-G shall focus primarily on storefront retail operations.

Applicants intending to operate cannabis microbusiness operation shall communicate this intent through the Commercial Cannabis Business Permit Application form, under the section entitled “Applicant (Entity) Information.” No additional information regarding proposed microbusiness operation is required in Applicant written responses to Sections A-G of the Evaluation Criteria.

Nothing within the Procedures prohibits an Applicant from providing information relating to their microbusiness operations in their written responses. However, Applicants should be aware that no additional points will be awarded during Phase II to Applicants who provide information related to proposed microbusiness operation in their written responses. For Applicants selected to progress to Phase III interviews, the City reserves the right to ask questions related to proposed microbusiness operation, if the Applicant selected one or both of these options on the application form.

PHASE II EVALUATION
Important Instructions:
• Evaluation Criteria identified in Sections A-C will be scored based upon Applicant written response. Points may be deducted for responses that fail to meet State/local regulatory requirements, or best practices for the cannabis industry. • Applicant responses to the Evaluation Criteria must be provided in the same order identified in Sections A-C below. Each section shall be clearly labeled, with responses provided within the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section will receive a deduction in points. • Any commitments made by an Applicant during the evaluation process will become terms and conditions under which the cannabis business must operate. Applicants awarded a permit that fail to meet commitments made during the evaluation process may have their cannabis business license suspended or revoked by the City.

SECTION A: BUSINESS PLAN (400 points)

1. Finances – Application includes a budget for construction, operations, maintenance, compensation of employees, equipment, property lease, security equipment and staff, City fees, state fees, utility costs, product purchases and other anticipated contingency costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of RESOLUTION NO.
funds. The application must also address the following:

A. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. (Note: Proof of Capitalization shall be submitted in a separate PDF file. See “Application Process” section for more information.)
B. A pro forma for at least three years of operations.

C. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

D. A letter from a bank, credit union, or similar financial institution stating that the cannabis applicant has, or will be provided, access to banking services. This letter should be within the last calendar month.

2. Daily Operations – The application describes the day-to-day operations of the proposed retail business. This shall include, at a minimum, a description of the following criteria:

A. Customer check-in procedures.

B. Location(s) and procedures for receiving deliveries during business hours.

C. The Point-of-Sale system, including the name of the system, to be used and how it will interact with the state’s mandated track and trace system. Locate and identify the number of Point-of-Sales terminals to be used when the business is at full capacity.

D. The expected number of customers to be served per hour/day.

E. The proposed product line, including brand names, to be sold at the business, and estimate the percentage of sales of flower and manufactured products.

F. How the Cannabis Business will conform to local and state laws. See SMC Section

7.04.360 for local requirements pertaining to retail establishments in the City of Santee.

G. How cannabis and cannabis products will be tracked and monitored to prevent diversion.

H. The proposed waste management plan, including waste disposal locations and security measures.

SECTION B: LABOR AND EMPLOYMENT PLAN (400 points)

1. Number of Employees – The application identifies the number of employees at initial opening and the maximum number of employees when the business is at full capacity.

2. Employee Responsibilities – The application identifies all positions to be employed at the proposed business, their responsibilities, and the salary ranges for those employment positions.

3. Employee Benefits – The application identifies the benefits provided to employees, including health care, vacation, and medical leave, to the degree they are offered as part of employment.

SECTION C: SECURITY PLAN (400 points)

1. Qualified Security Professional – The application includes a security plan prepared by a qualified professional that meets or exceeds all the security requirements of SMC Section

7.04.320 and state law. The security plan can be prepared with in-house staff or a thirdparty security consultant but must clearly demonstrate that it meets the professional RESOLUTION NO.
standards requested to receive the appropriate points for each criterion in this section.

The qualifications of the person(s) preparing the security plan must be provided, for verification that they are able to meet these standards.

2. Premises Diagram – The application includes a Premise Diagram in the Security Plan that meets the following requirements:

A. The diagram meets all of the standards identified in Department of Cannabis Control (DCC) California Code of Regulations (CCR) Title 4, Division 19, §15006 Premises Diagram.

B. The diagram shows the boundaries of the property and the proposed location to be licensed, showing all dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and includes a brief statement or description of the principal activity to be conducted therein.

C. The diagram shows and identifies commercial cannabis activities that will take place in each area of the premises and identifies all limited-access areas.

D. The diagram shows where all cameras are located and assigns a number to each camera for identification purposes.

E. If the proposed location consists of only a portion of a property, the diagram is labeled indicating which part of the property will be used for the licensed premises and what activities will be used for the remaining property.

3. Operational Security – The application includes a description of operational security, including but not limited to general security for access/visitor control and inventory control.

4. Cash Handling – The application includes a description of cash handling procedures, including the process for receiving, tracking, storing and transporting cash generated by the retail business.

5. Perimeter Security – The application includes a description of perimeter security, exterior lighting, on-site security guards, proposed guard hours and their responsibilities.

6. Employee Training and Policies – The application includes a description of employee training and general security policies.

PHASE III EVALUATION
Important Instructions:
• During Phase III Interviews, Applicants will be asked questions related to some or all of the Evaluation Criteria Sections D-G.
• Due to the time limitation of interviews, Phase III questions may not address all of the criteria identified within each Section D-G, and the City reserves the right to develop Phase III questions in its sole discretion.
• Scoring for this phase will be based upon information conveyed verbally by Applicants, in response to the questions asked. Any scoring for Section G may also consider photographs, site plans, and other visual depictions provided by Applicants. • All Applicants will be asked the same questions and be provided the same amount of time for response.
• Any commitment made by an Applicant during the Phase III Interview process may, in the City’s sole discretion, become a condition on the business permit, if issued.

RESOLUTION NO.
• Phase III scoring is independent of results from Phase II. Phase II scoring resets to zero when Phase III commences.

SECTION D: QUALIFICATION OF OWNERS (500 points)

1. Describe the business owner’s prior experience in owning, managing, and operating a legally permitted or licensed retail cannabis business in the United States. For purposes of this section, owner has the definition provided in SMC Section 7.04.060.

2. Describe the owner and/or team’s overall knowledge of the cannabis industry, including identification of how industry best practices and State regulations have been incorporated in existing/prior legal businesses outside the City of Santee.

3. Describe the involvement of the ownership team in the day-to-day operation and management of the proposed business.

SECTION E: NEIGHBORHOOD COMPATIBILITY PLAN (400 points)

1. Describe how the business will take proactive steps to avoid becoming a nuisance or having negative impacts on its neighbors or surrounding community. Additionally, describe how the business will react and respond to complaints specifically related to noise, light, odor, public consumption, loitering, littering, and vehicle and pedestrian traffic, including the business’s plan for the use of social media to monitor and respond to complaints.

2. Describe the policies that you would implement, and how you would enforce these policies, to ensure your cannabis products do not end up in the hands of underage youth.

SECTION F: COMMUNITY BENEFITS AND INVESTMENT PLAN (450 points)

1. Describe the benefits that the business will provide to the local community, for example by directly aiding, participating in, or funding the work of local non-profits, communitybased organizations, civic organizations, or social services organizations (“Community Organizations”). Note: Applicants should not identify any specific Community Organization at this time/or provide commitment letter(s) from local Community Organizations in the application submittal. This section is only intended to capture the overall commitment of Applicants to fund or support local community-based activity in general.

2. Identify the minimum wage that will be offered to employees of the proposed business, excluding tips and gratuities. If entry-level employees are salaried, the Applicant shall divide the minimum annual salary by 2,087 hours to arrive at an hourly rate.

3. Describe the Applicant’s plans for local outreach to City of Santee residents for open positions, and any other actions proposed by the Applicant that are intended to benefit the local workforce and/or Applicant’s local employees. Identify the anticipated minimum percentage of total annual payroll hours that will be performed at the business by City of Santee residents.

RESOLUTION NO.

4. The Community Benefits and Investment Plan shall also include a description of the direct fee that will be offered to the City, expressed as a percentage of annual gross receipts. The City anticipates a minimum of 5% of annual gross receipts.

SECTION G: PROPOSED SITE PLAN (250 points)

1. Provide the following information about the existing site:

A. Physical address;
B. Narrative description of the existing site, including building(s), parking spaces, driveways, pedestrian sidewalks/rights-of-way,
C. Photographs of the existing property and building(s); i. Note: Photographs of building interior are not required.

D. Description of how the site is currently being used; E. Description of any businesses currently operating on the parcel (if any), and any parcels directly adjacent to the existing site.

2. Provide the following information about the proposed site:

A. A site plan, drawn to scale, of the proposed business showing perimeter fencing, driveways, streets, property lines, buildings, parking areas, and outdoor areas.

B. A narrative description of proposed site improvements, including façade rehabilitation, building expansion, parking, landscaping, fencing, or other exterior site improvements;
i. Note: Descriptions of interior site improvements are not a requirement of this section.

C. Visual depictions of the proposed exterior of the cannabis business.

3. Describe how the proposed modifications and utilization of the site for cannabis retail activity will impact the public health, safety, welfare, environmental quality, and/or quality of life in the surrounding area.

RESOLUTION NO.

Exhibit “B”
Santee CCB Fee Schedule
Cannabis Business Permit Fee Schedule
Fee Name/Type Fee
Application Fee $ 25,711
Zoning Verification Letter $ 267
Annual Renewal Fee $ 27,749
Annual Compliance Fee (pass through) Actual Cost
Change in Information Fee (deposit) $ 1,000
Transfer of Ownership Fee (deposit) $ 1,000
Appeal Fee $ 7,319
Criminal Background Investigation Fee (pass through) Actual Cost RESOLUTION NO.

Exhibit “C”
Santee CCB Appeals Process
Santee Cannabis Business Permit Appeals Process ____________________________________________________________________________ Any appeal right provided for in Santee Municipal Code Section 7.04.220 must be conducted as set forth below. This Appeals Process does not govern appeal rights set forth in other sections or chapters of the Santee Municipal Code.

I. Submission of Appeal.
a. An applicant or permittee may appeal a decision to deny advancement in the selection process at each phase of the process leading to (but not including) the final selection phase by the City Council; to revoke or suspend a cannabis business permit; to deny the renewal of a cannabis business permit; or to add conditions to a cannabis business permit by filing with the City Clerk a written appeal within 10 calendar days from the date of service of the notice of decision or action.
b. The appeal shall be in writing and signed by the person making the appeal, or the person’s legal representative, and shall contain the following:
i. The name, address, telephone number of the appellant; ii. A statement of whether the appellant is an applicant, owner, or permittee of a cannabis business;
iii. A true and correct copy of the notice of the decision or action issued that the appellant is appealing;
iv. A specific statement of all of the reasons and grounds for making the appeal in sufficient detail to enable the hearing officer to understand the nature of the controversy and the basis of the appeal; and v. All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer to consider at the hearing. c. At the time of filing, the appellant must pay the designated appeal fee, which shall be established by resolution of the City Council. d. In the event a written appeal is timely filed, the denial, revocation, suspension, nonrenewal, or addition of conditions is not effective until a final order has been rendered and issued by the hearing officer in accordance with and in the timeframes established by this resolution. e. If no timely, proper written appeal is filed in the event of a decision of denial (i.e., relating to a new application or renewal application, or advancement RESOLUTION NO.
to the final selection process), the decision is final. In the event the renewal is denied and no timely, proper written appeal is filed, the permit, and any associated rights, terminates at the end of the permit's term. f. If no timely, proper written appeal is filed in the event of a suspension or revocation, the decision is final. The suspension or revocation is effective upon the date of the expiration of the period for filing a written notice of appeal.
g. If no timely, proper written appeal is filed in the event of the addition of conditions to a cannabis business permit, the decision to add the conditions is final. The additional conditions are effective upon the date of the approval of the permit.
h. Failure of the applicant or permittee to file a timely and proper appeal, or pay the requisite fee, is a waiver of the right to appeal the decision and a failure to exhaust all administrative remedies. In this event, the decision is final and binding.

II. Hearing Procedure.
a. The City will retain a hearing officer(s) through a request for proposal process to hearing all appeals commenced under the procedures established by this resolution.
b. Upon receipt of the written appeal, the City Clerk, in their sole discretion, shall choose the date and set the matter for a hearing before the hearing officer. The City Clerk’s notice will inform the appellant of the date, time, and location of the hearing. Once set, the hearing date shall only be continued by the hearing officer upon a written showing for good cause by the requestor. For purposes of this subsection, the term “good cause” means the hearing date must be continued due to circumstances outside of the requestor’s control. The appeal must be held within a reasonable time after the date of filing of the appeal.
c. Upon selection of a hearing officer and date, the City Clerk will submit to the hearing officer the appellant’s appeal and documentation, if any. This shall constitute appellant’s written submittal to the hearing officer. The City may submit its own written response to the appeal along with any evidence it wishes the hearing officer to consider, if any, at least three (3) calendar days before the hearing.
d. The hearing officer will preside over the appeal in accordance with the rules stated herein. The hearing officer will conduct its review of the decision to determine whether there was an abuse of discretion. Abuse of discretion is established if the City has not proceeded in a manner required by law. The hearing officer does not substitute their judgment for that of any application reviewer, evaluator, or scorer, nor re-weigh the evidence or rescore an RESOLUTION NO.
application. If the hearing officer determines that there was an abuse of discretion, the decision shall be deemed canceled.
e. The hearing shall be conducted as follows:
i. No new matter or evidence shall be received or considered by the hearing officer that was not addressed or identified in the appeal unless the appellant can show why such new matter or evidence could not with due diligence have been argued or produced at the time of filing the appeal.
ii. Appellant bears the burden of proof to establish that the City abused its discretion by issuing the decision.
iii. At the hearing, the parties may present arguments and evidence relevant to the decision appealed. Formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing.

However, rules of privilege are applicable to the extent they are permitted by law; and irrelevant, collateral, and repetitious evidence may be excluded.

III. Hearing Officer’s Decision.
a. No later than fifteen (15) calendar days following conclusion of the appeal hearing, and after considering all of the arguments and evidence submitted at the hearing, the hearing officer will determine whether the issuance of the decision constituted an abuse of discretion.
b. The hearing officer must issue a written decision containing findings and analysis supporting their decision to uphold or reverse the decision, and any other finding that is relevant or necessary to the subject matter of the appeal.
c. The decision of the hearing officer is final. The decision must contain the following statement: “The decision of the hearing officer is final. Judicial review of this decision is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6.”
d. A copy of the hearing officer’s decision must be served by first class mail on the appellant. Failure of a person to receive a properly addressed hearing officer’s decision does not invalidate any action or proceeding by the City pursuant to the rules stated herein.

Item 12

DRAFT POLICY

GENERAL FUND RESERVE POLICY

CITY COUNCIL MEETING
MARCH 27, 2024

PURPOSE
The General Fund accounts for all resources except for those where a separate fund is necessary for legal and administrative purposes. The primary sources of income for the City’s General Fund include property tax, sales tax, charges for services, and franchise fees. The primary uses include public safety, public works, and other salaries and benefits.

Unrestricted fund balance is the accumulation of excess revenue collected over a period of time that is not otherwise committed or assigned. The General Fund Reserve is a measure of the unrestricted fund balance that is held and not available for operating expenses. A General Fund Reserve Policy assists the City in mitigating risk by providing a back-up for revenue shortfalls or unexpected expenditures as needed. It is a City Council commitment to prudent fiscal management and provides the framework for how and when the reserve can be used. A General Fund Reserve Policy is also helpful in providing liquidity and is important for a city’s credit rating.

POLICY
General Fund Operating Reserve
The General Fund Operating Reserve represents unrestricted resources available for appropriations by the City Council to address unanticipated, extraordinary needs. It is City Council’s intention to maintain twenty percent (20%) of the annual General Fund budgeted operating expenditures in this reserve. The calculation will be based on budgeted operating expenditures and will be calculated each time an updated budget is presented to City Council.

Supplemental General Fund Operating Reserve
The Supplemental General Fund Operating Reserve is in addition to the General Fund Operating Reserve. This reserve is to be utilized for unexpected non-budgeted items that fall outside the current City Council priorities. This reserve will be funded by up to a one percent (1%) assignment of surplus unrestricted fund balance that is greater than twenty-two percent (22%) of General Fund budgeted operating expenditures (depending on availability). The 1% assignment will continue until the reserve reaches five percent (5%) of General Fund budgeted operating expenditures.

Other Funds
Other funds that have an unrestricted fund balance for the purpose of actuarial calculations and emergency fiscal situations include, but are not limited to, Worker’s Compensation, Risk Management, Vehicle Replacement, and Technology Replacement. The unrestricted fund balances within these funds are committed for the use described by the fund.

Use of Reserves
General Fund reserve allocations are eligible for use at the discretion of the City Council at a time of unforeseen fiscal need. Such determinations will be made by the City Council on a caseby-case basis. Authorized use of reserves will require a City Council majority vote.

All fund balances of funds other than the General Fund that are not legally restricted for a specific purpose, also are eligible for use at the discretion of the City Council at a time of unforeseen fiscal need. Authorized use of reserves will require a City Council majority vote.

Calculation of Reserves
In determining whether General Fund reserves meet the goals of this policy, they will be measured as a percentage of General Fund budgeted operating expenditures. For this purpose, operating expenditures will exclude transfers to other funds, prior year carried forward appropriations, as well as special projects that by their nature would not be considered ongoing operational expenditures.

Replenishment of Reserves
When reserve funds are used and the levels fall below the policy levels as described herein, a plan will be developed to replenish the reserves to their prior levels. This plan will seek to return the reserves to their policy level within one (1) to three (3) years. If the reduction of the General Fund Operating Reserve is more than can be replenished within three years, the City Manager and the Director of Finance will present a plan to incrementally replenish the reserve back to the minimum 20% level. Funds will be replenished through the budget process.

Unrestricted Fund Balance Diagram – (percentage based on budgeted operating expenditures) Up to 20%
• Operating
Reserve
20% - 22%
• Surplus -
available for
appropriation
22% - 23%
• Supplemental
Reserve (up to
a total of 5%)
Greater than 23%
• Surplus -
available for
appropriation

STAFF REPORT

GENERAL FUND RESERVE POLICY DISCUSSION

CITY COUNCIL MEETING
FEBRUARY 28, 2024

PURPOSE
The General Fund accounts for all resources except for those where a separate fund is necessary for legal and administrative purposes. The primary sources of income include property tax, sales tax, charges for services, and franchise fees. The primary uses include public safety and public works and other salaries and benefits.

Unrestricted fund balance is the accumulation of excess revenue collected over a period of time that is not otherwise committed or assigned. The General Fund Reserve is a measure of the unrestricted fund balance that is held and not available for operating expenses. It assists the City in mitigating risk by providing a back-up for revenue shortfalls or unexpected expenditures as needed. A General Fund Reserve is also helpful in providing liquidity and is important for a city’s credit rating.

What is a Reserve policy? A Reserve Policy is a City Council commitment to prudent fiscal management. It provides the framework for how and when the reserve can be used.

The General Fund Reserve is intended to help the City when faced with the challenges of a changing economic environment or to cover unanticipated cost or fund one-time unbudgeted necessary costs. It is also a safety net in the event of a circumstance requiring an immediate response, such as a natural disaster or other catastrophic event.

The Government Finance Officers Association (GFOA), an international organization that promotes the professional financial management of governments for the public interest, recommends that governments establish a formal policy defining the level of unrestricted fund balance to be held. The adequacy (amount) of unrestricted fund balance should take into account each government’s own unique circumstances. Things to consider when determining adequacy include revenue volatility, infrastructure risks, natural disasters/extreme events, expenditure volatility, and liquidity.

Revenue Volatility - The City of Santee has experienced steady revenue growth over the years in its two major revenue sources, property tax and sales tax. The two revenue sources make up 72% of General Fund revenues. Because of this, the City has exposure if either, or both, revenue sources were to experience a decline.

Infrastructure - Infrastructure risks in Santee include bridges, corrugated metal pipe (CMP) failures, storm drains, roads and road safety, and city buildings. A major failure would likely require significant amounts of money to be available for immediate repairs.

Natural Disasters/Extreme Events- The City of Santee is vulnerable to natural disasters such as earthquakes, wildfires, flooding, civil disorder, terrorism threats, and drought. These situations could result in the interruption of critical services, infrastructure repairs, as well as the need to provide shelter for the City’s citizens.

Expenditure Volatility – The City is also subject to expenditure volatility, primarily with CalPERS pension costs, the San Diego County Sheriff’s public safety contract, and potential lawsuits.

Liquidity – It is important for the City to have access to cash in case of an emergency. By having a reserve, this cash is set aside and is available for use if needed.

GFOA best practices also recommend, at a minimum, that general-purpose governments, regardless of size, maintain an unrestricted fund balance of no less than two months of regular general fund operating revenues or expenditures. Two months translates to

16.67% in reserves. Other best practices include defining the requirements warranting the use of reserves, such as a Council majority vote. In addition, a general fund policy should have a solid replenishment plan if it falls below the threshold, typically a one-tothree-year plan to replenish.

BACKGROUND
The City of Santee currently holds a 20% reserve. This is not a formal policy but approved each year in the budget resolution. Amounts over the 20% threshold are then available for Council appropriation, typically for one-time uses.

The City of Santee also holds excess funds in other areas that act as reserves, the Worker’s Compensation Fund, the Risk Management Fund, and the Vehicle Replacement Fund. These informal reserves help to protect the General Fund from unforeseen emergencies and provide solid financial planning. The City has made solid efforts to maintain these reserve balances and replenish them as needed.

DISCUSSION
There are several benefits to having a reserve policy. Some benefits include stable service delivery, availability for meeting future needs, protection from financial instability, liquidity, and its importance for the City’s credit rating.

There are several types of “standard” reserves. The main type is an Operating Reserve.

This reserve mitigates financial and service delivery risk due to unexpected revenue shortfalls or unanticipated critical expenditures. This reserve is typically used for onetime, emergency needs.

An Economic Contingency Reserve is another type of reserve, typically in conjunction with an Operating Reserve, that specifically provides further protection from catastrophic economic situations. This reserve would be available for use in extraordinary circumstances, typically when an “economic trigger” is satisfied, such as a large drop in sales or property tax, State takeaways, or large expenditure items. If needed and as a last result, this type of reserve is there to help fund City services through poor economic cycles.

A Catastrophic Event Reserve would be similar to the previous Economic Contingency Reserve but restricted for unanticipated expenses from a natural disaster or other unforeseen event.

Another type of reserve worth mentioning is an “assignment.” Assignments are rules applied to excess fund balance. Typically, these funds are used to build up funding for a project or program. Assignments can be part of the budget or a percentage of the surplus.

For example, a common assignment is to assign 25-50% of surplus fund balance to fund certain CIP projects, or to pay down a city’s CalPERS unfunded liability. It should be noted that adding a “rule” to budget preparation could be detrimental during times of lower-than-normal revenues or higher-than-normal expenditures by limiting the development of the budget by restricting flexibility. Assignments are different than reserves in that they are a mechanism for building up funds with the intention of using the funds at a later date. There are countless types of assignments. The most common include pension cost, information technology replacement, facilities maintenance, and capital projects.

As mentioned previously, the City holds a 20% reserve that is adopted during the budget process. It is structured to encompass any event because it is not restricted to a type of situation. The current reserve can be accessed through a majority vote by the City Council. The City’s 20% reserve amount is also greater than GFOA’s minimum best practice amount of 16.67%.

RECOMMENDATION
The City would benefit by establishing a formal policy, stating its intention to protect the City if an unforeseen situation occurred. Staff would like to highlight the following topics for City Council discussion and will come back to City Council with a written policy(s) if that is the direction given.

1. Discuss levels of risk and determine what type and level of reserve the City should have. The City’s current 20% operating reserve functions well and is flexible to use for any extreme situation. Increasing the minimum operating reserve or adding an additional type of reserve would enhance the City’s fiscal management and further protect the City from unforeseen events. As discussed earlier, the City is exposed to risk in many areas. The largest risk would be devastation from a natural disaster or the failure of certain infrastructure. While funding might be available through a federal emergency declaration, this stands out as a significant risk due to the potential cost to rebuild and the immediate need of funds.

2. Discuss what circumstances warrant the use of funds. This can be formalized within the policy or not. Typically, for specific types of reserves, there is a quoted trigger. For example, with an Economic Contingency Reserve, a 5% decrease in both property tax and sales tax would equate to $2.1 million ($1.25 million and $861,853, respectfully). This would be a reasonable trigger. Along with reducing budgets, the City might need assistance from this type of reserve to continue to provide services to its citizens on a temporary basis until other measures can be established. For an Emergency Reserve, the condition might be as simple as City Council declaring an emergency. For a general Operating Reserve, having a formal trigger might be difficult to determine based on the general nature of this type of reserve.

3. Determine a replenishment plan for when reserve funds are depleted. GFOA recommends that when funds are taken out of a reserve that they are replenished based on an already established timeline determined by the Council policy. This protects the reserve and provides focus for future funding. An example of a replenishment plan might be a one-to-three-year timeline, depending on the severity of the situation. For an Economic Contingency Reserve, this could also include wording that states the timeline is not activated until revenues return to their amounts prior to the economic downturn. For large catastrophes, the timeline could be extended.

4. Discuss any requested “assignments” and how they may be used to assist the City in reaching its goals. As mentioned, the recommended use of a formal assignment would be to identify a percentage, or dollar amount, of excess unrestricted fund balance to be set aside for a certain project or program.

Item 13

RESOLUTION NO. __________

RESOLUTION AUTHORIZING THE TRANSFERS AND APPROPRIATIONS OF VARIOUS FUNDS TO THE TOWN CENTER COMMUNITY PARK – ARTIFICIAL TURF REPLACEMENT

PROJECT, AND AWARD OF A CONTRACT FOR SYNTHETIC TURF REPLACEMENT AT TOWN CENTER COMMUNITY PARK EAST TO FIELDTURF USA, INC. – A TARKETT

SPORTS COMPANY, UTILIZING THE MASTER AGREEMENT BETWEEN THE COOPERATIVE COUNCIL OF GOVERNMENTS, INC. (“CCOG”), FIELDTURF USA, INC.,

AND EQUALIS GROUP LLC
WHEREAS, the synthetic turf installed as part of Phase 2 of the development Town Center Community Park has exceeded its useful life and is in need of replacement; 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 when determined by the purchasing agent to be in the City’s best interest; and WHEREAS, the City of Santee is a member of Equalis Group LLC, which is a cooperative purchasing plan or program; and
WHEREAS, on behalf of Equalis Group participants, in May 2020, the Cooperative Council of Governments, Inc., an Ohio nonprofit corporation, issued request for proposal (RFP) #2020.05.2 seeking proposals for sports resurfacing products and related services and solutions and subsequently awarded a contract, in effect through August 31, 2025 to FieldTurf USA, Inc. as the lowest responsive and responsible bidder;(the “CCOG” Contract); and WHEREAS, the purchasing agent finds the City’s participation in the Equalis Group and access to the vendors selected through a competitive process on their behalf to be in the best interests of the City; and FieldTurf USA, Inc. – A Tarkett Sports Company, is able and willing to provide the Synthetic Turf Replacement materials the City requires pursuant to the terms of the CCOG Contract in an amount not to exceed $976,452.06; and WHEREAS, the City has funds available from various sources described herein to meet this contractual commitment; and
WHEREAS, the City received a Neighborhood Reinvestment Program grant from County Supervisor Joel Anderson’s office in the amount of $100,000.00 to be used towards the replacement of synthetic turf on two fields at Town Center Community Park East; and WHEREAS, the City has received donations from sports user groups in the amount of $31,000; and
WHEREAS, on February 28, 2024, City Council approved an amendment to the FY 2023- 24 Operating Budget, which included an additional $620,000.00 to fully fund the replacement of synthetic turf on two fields at Town Center Community Park East; and WHEREAS, there is savings of $134,380.00 in the Community Services Department operating budget; and
WHEREAS, staff recommends transferring $85,000.00 from the Sports Field & Court Improvement CIP to the Artificial Turf Replacement CIP; and RESOLUTION NO. __________
WHEREAS, staff recommends transferring $3,500.00 from the General Park Improvement CIP to the Artificial Turf Replacement CIP; and
WHEREAS, there is savings on $3,350.00 in the Recreation Revolving Fund operating budget; and
WHEREAS, staff recommends appropriating $26,000.00 from the Recreation Revolving unrestricted fund balance; and
WHEREAS, as additional donations are received, the funds will be used to offset the Recreation Revolving unrestricted fund balance up to $26,000.00; and WHEREAS, staff recommends authorizing the City Manager to execute a Synthetic Turf Replacement contract with FieldTurf USA, Inc. – A Tarkett Sports Company, utilizing the above mentioned CCOG contract for an amount not to exceed $976,452.06; and WHEREAS, staff recommends authorizing the City Manager to approve change orders up to $26,777.66 for potential nailer board replacements; and WHEREAS, staff recommends authorizing the Director of Community Services to execute Notices of Completion and authorizing the City Clerk to file said notices upon satisfactory completion of work; and
WHEREAS, this item is categorically exempt from the California Environmental Quality Act (“CEQA”) pursuant to Section 15301 of the CEQA Guidelines (maintenance of existing structures, facilities, or mechanical equipment).

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

SECTION 1. Authorizes the appropriation of donated funds in the amount of $31,000.00 to the FY 2024-28 Capital Improvement budget for Town Center Community Park – Artificial Turf Replacement.

SECTION 2. Authorizes the transfer and appropriation of $134,380.00 from the General Fund, Community Services Department operating budget to CIP Town Center Community Park – Artificial Turf Replacement.

SECTION 3. Authorizes the transfer and appropriation of $85,000.00 from CIP Sports Field & Court Improvements to CIP Town Center Community Park – Artificial Turf Replacement.

SECTION 4. Authorizes the transfer and appropriation of $3,500.00 from CIP General Park Improvements to CIP Town Center Community Park – Artificial Turf Replacement.

SECTION 5. Authorizes the transfer and appropriation of $3,350.00 from the Recreation Revolving Fund operating budget to CIP Town Center Community Park – Artificial Turf Replacement.

RESOLUTION NO. __________
SECTION 6. Authorizes the transfer and appropriation of $26,000.00 from the Recreation Revolving unrestricted fund balance to CIP Town Center Community Park – Artificial Turf Replacement.

SECTION 7. Authorizes additional donations received to be credited back to the Recreation Revolving unrestricted fund balance.

SECTION 8. Awards a contract for Synthetic Turf Replacement to FieldTurf USA, Inc. – A Tarkett Sports Company for an amount not to exceed $976,452.06.

SECTION 9. Authorizes the City Manager to execute the contract for Synthetic Turf Replacement with FieldTurf USA, Inc. – A Tarkett Sports Company for an amount not to exceed $976,452.06.

SECTION 10. Authorizes the City Manager to approve change orders up to $26,777.66 for potential nailer board replacements.

ADOPTED by the City Council of the City of Santee, California, at a Regular Meeting thereof held this 27th of March, 2024, by the following roll call vote to wit:

AYES:

NOES:

ABSENT:

APPROVED:

JOHN W. MINTO, MAYOR
ATTEST:

ANNETTE ORTIZ, CMC, CITY CLERK