THE BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS BOARD ACTION SUMMARY

DEPT: Chief Executive Office BOARD AGENDA:7.3 AGENDA DATE: May 11, 2021

SUBJECT: Public Hearing to Introduce and Waive the First Reading of an Ordinance to Establish New Fees and Eliminate Existing Fees for Commercial Cannabis Activities

BOARD ACTION AS FOLLOWS: RESOLUTION NO. 2021-0194

On motion of Supervisor _f3_. _GQOdiL ______Seconded by Supervisor__ _G[~"Y€1L ______and approved by the following vote, Ayes: Supervisors: ~:. 9_~1'!

1) X Approved as recommended 2) __ Denied 3) __ Approved as amended 4) __ Other: MOTION:

INTRODUCED AND WAIVED THE FIRST READING OF ORDINANCE C.S. 1297

File No. ORD-57-F-3 THE BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS AGENDA ITEM

DEPT: Chief Executive Office BOARD AGENDA:7.3 AGENDA DATE: May 11, 2021 CONSENT □ CEO CONCURRENCE: YES 4/5 Vote Required: No

SUBJECT: Public Hearing to Introduce and Waive the First Reading of an Ordinance to Establish New Fees and Eliminate Existing Fees for Commercial Cannabis Activities

STAFF RECOMMENDATION: 1. Conduct a Public Hearing to introduce and waive the first reading of an ordinance to establish new fees and eliminate existing fees for Commercial Cannabis Activities.

DISCUSSION: On December 5, 2017, the Board adopted ordinances related to regulating Commercial Cannabis Activities, which included establishing new fees related to the regulation. Fees were established for processing cannabis business applications, background investigations, live scanning, security plan inspections performed by the Sheriff’s Department, business permits, and track and trace program fees.

The Planning and Community Development Department collects a fee for new Development Agreements that charge actual cost with a minimum charge/deposit amount of $6,504. This fee includes staff time for Planning, Public Works, Environmental Resources, Clerk of the Board, and various other County activities related to the Development Agreement. The Chief Executive Office has received requests to make amendments to the approved Development Agreements related to Commercial Cannabis Activities such as adding additional owners or requesting to renegotiate flat rate fees established. Chief Executive Office and County Counsel staff time associated with the original negotiation of the fees included in the Development Agreement are captured with the applicant’s original application processing fee. The Cannabis Program does not currently have a fee associated with amendments to approved Development Agreements.

Staff associated with non-land use related amendments to approved Development Agreements include Chief Executive Office, County Counsel, and Clerk of the Board. It is recommended to add a new fee for Development Agreement amendments, non-land use related, charging actual costs with a minimum charge/deposit similar to the Planning and Community Development fee schedule. Using weighted labor weights of associated staff, it is estimated that a minimum of 16 staff hours would be needed to amend approved Development Agreements for a total minimum charge/deposit of $2,082. Under the California statutes and regulations, County Agricultural Commissioners have the authority to conduct inspections of agricultural production operations throughout the county and within city limits. At program inception, the Agricultural Commissioner was tasked with overseeing the countywide track and trace program. Fees were established to implement an effective track and trace program. The California Business and Professions Code allows the California Department of Food and Agriculture Secretary to enter into a cooperative agreement with a County Agricultural Commissioner to perform inspections pertaining to compliance with State Cannabis licensing requirements.

The State computer inventory system known as Metrc tracks all commercial cannabis and cannabis products from cultivation to sale. On May 14, 2019, the Board of Supervisors approved the Agricultural Commissioner to enter into a cooperative agreement with the California Department of Food and Agriculture to conduct compliance inspections of cannabis cultivators, nurseries and processors. The County Agricultural Commissioner is reimbursed at a rate of $400 per inspection. As a result, the County track and trace fees previously adopted by the Board have not been implemented. It is recommended to eliminate these fees from the County Cannabis Program. POLICY ISSUE: A scheduled Public Hearing and Board of Supervisor’s approval is required to add or amend fees per Government Code Section 54985 et seq. FISCAL IMPACT: Commercial Cannabis Activity Fees support the County’s Commercial Cannabis Program. The Development Agreement amendment fee of $2,082 is an actual cost minimum charge/deposit fee and will support actual staff time spent amending approved Development Agreements. Amendments to Development Agreements are considered at the request of the approved Commercial Cannabis Business. BOARD OF SUPERVISORS’ PRIORITY: The recommended action supports the Board’s priorities of A Strong Local Economy, Efficient Delivery of Public Services, and A Safe Community by regulating cannabis activities in the unincorporated area of Stanislaus County. STAFFING IMPACT: Staff from the Chief Executive Office, County Counsel, Department of Environmental Resources, District Attorney’s Office, Planning and Community Development Department, and Sheriff’s Department continue to support the overall goals of the County Cannabis Program CONTACT PERSON: Tera Chumley, Sr. Management Consultant (209) 573-1398

ATTACHMENT(S): 1. Proposed Commercial Cannabis Activity Fee Ordinance and Schedule

Page 2 of 2 ORDINANCE NO C.S. __

AN ORDINANCE ADOPTING NEW FEES AND ELIMINATING EXISTING FEES TO BE CHARGED SPECIFICALLY FOR COMMERCIAL CANNABIS ACTIVITIES

THE BOARD OF SUPERVISORS OF THE COUNTY OF STANISLAUS, STATE OF CALIFORNIA, ORDAINS AS FOLLOWS:

Section 1. Fees to be collected by the County are adopted as set forth in the Fee Schedule attached hereto as Attachment A and incorporated by reference, a copy of which is on file with the Clerk of the Board of Supervisors and is available for public inspection and copying in that office in accordance with the California Public Records Act.

Section 2. This ordinance shall take effect 30 days from and after the date of its passage and before expiration of fifteen (15) days after passage, it shall be published once, with the names of the members voting for and against the same, in the Modesto Bee, a newspaper published in the County of Stanislaus, State of California.

Upon motion of Supervisor ______, seconded by Supervisor ______, the foregoing resolution was passed and adopted at a regular meeting of the Board of Supervisors of the County of Stanislaus, State of California, the __ day of ______2021, by the following called vote:

AYES: Supervisors:

NOES: Supervisors:

ABSENT: Supervisors:

Vito Chiesa, Chairman of the Board of Supervisors County of Stanislaus, State of California ATTEST: ELIZABETH A. KING, Clerk of the Board of Supervisors of the County of Stanislaus, State of California By ______Kelly Rodriguez, Assistant Clerk

APPROVED AS TO FORM: THOMAS E. BOZE County Counsel COMMERCIAL CANNABIS ACTIVITIES FEES Cannabis Application Fees Actual Cost* Actual Cost Min Cannabis Business Application Processing Fee Charge/Deposit $8,500 per registration Actual Cost Min Background Investigation Charge/Deposit $680 per person

Live Scan $317 per person

Live Scan Rolling Fee $15 per person

Security Plan Inspection

Development Agreement Amendments

* Fees described above that require a deposit and are charged at "actual cost". Staff costs and expenses will be billed at fully burdened welghtled labor rates at the time of services rendered.

Attachment A STANISLAUS COUNTY PUBLIC NOTICE

NOTICE IS HEREBY GIVEN that on May 25, 2021, at 9:00 a.m., or as soon thereafter as the matter may be heard, the Stanislaus County Board of Supervisors will meet in the Basement Chambers, 1010 10th St., Modesto, CA, to consider the adoption and the waiving of the second reading of the following ordinances:

A. Ordinance C.S. 1296 to adopt new fees and amend or eliminate existing fees and fee adjustments for the Department of Environmental Resources as follows: • Increased Weighted Labor Rate of the Department • A 3.5% surcharge will be added to any fee collected by credit card • Hazardous Materials: Increase in Underground Storage Tank, Farm Disclosure and Conditionally Exempt Small Quantity Generator (CESQG) Fees, and new CESQG fee categories • Environmental Health: Increase in Temporary Food Facilities and Mobile Food Facility Plan or Operational Procedure Review Fees, and changes to Food Program Fees; New Well Permit Modification/Transfer/Cancellation Fee, and increases and changes to Well Construction Program Fees; Increase and changes to Groundwater Ordinance Permit Issuance Appeal Fees; Increase and changes to Septic Pumper Truck Fees; New Liquid Waste Modification/Transfer/Cancelation Fee, and increase and changes to Liquid Waste Program Fees; New Detention Facility Inspection/Report Fee and New Organized Camp Fees • Landfill: Increase in Ash Tipping; Increase and changes in Appliance Fees (white goods waste), and add new Microwave Fee

For further information, contact Julie Mendoza at (209) 525-6700, [email protected] or at 3800 Cornucopia Way, Suite C, Modesto, CA.

B. Ordinance C.S. 1299 to amend existing fees for Planning Services. For further information, contact Planning and Community Development at (209) 525-6330, [email protected] or at 1010 10th Street, Suite 3400, Modesto, CA.

C. Ordinance C.S. 1298 to amend existing fees for Building Services. For further information, contact Planning and Community Development at (209) 525-6330, [email protected] or at 101 O 10th Street, Suite 3400, Modesto, CA.

D. Ordinance C.S. 1295 to amend existing fees for the Department of Public Works as they relate to development permits, grading permits, building permits, encroachment permits, and other projects involving construction activities in Stanislaus County.

For further information, contact Frederic Clark, Public Works Department Deputy Director, at (209) 525-4302, [email protected] or at 1010 10th Street, Suite 4204, Modesto, CA.

E. Ordinance C.S. 1297 to establish new fees and eliminate existing fees for Commercial Cannabis Activities. For further information, contact Tera Chumley in the Chief Executive Office at (209) 525-6333, or at 1010 1oth Street, Suite 6800, Modesto, CA. ADDITIONAL NOTICE IS GIVEN that the proposed ordinances and fee schedules are available for review in the Clerk of the Board Office, 1010 10th Street, Suite 6700, Modesto, CA.

REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the Clerk of the Board at (209) 525-4494. Notification 72 hours prior to the meeting will enable the County to make reasonable arrangements to ensure accessibility to this meeting.

BY ORDER OF THE BOARD OF SUPERVISORS

DATED: May 11, 2021

ATTEST: ELIZABETH A. KING, Clerk of the Board of Supervisors of the County of Stanislaus, State of California Beaufort Gaz.ette • Reck Hill . Miami Sun Ne<""s - Myrtle Beach Belleville News-Demccrat Herald Sun • Durham Modesto Bee Tacoma Bellingham Herald Raleigh Ne-.vs & Observer The Telegrapn • Macon Bradenton Herald Island Packet San Luis Obispo Tribune h""-.MCCLATCHY Centre Daily Time5 Kansas City Star Sacramento~ Tri-City Herald Chartotte Observer Lexington Herald--L=der Fort Worth Star-Telegram Wichita Eagle Columbus Ledger-Enquirer Ne.-ced Sun-Star - Columbia Fresno Bee - Biloxi AFFIDAVIT OF PUBLICATION Account # Order Number Identification Order PO Amount Cols Depth 36857 65908 Print Legal Ad - IPL0023757 $530.45 2 5.41

Attention: Liz King Declaration of Publication CO STAN BOARD OF SUPERVISORS C.C.P. S2015.5 1010 10TH ST STE 6700 STATE OF CALIFORNIA ) MODESTO, CA 95354 ) ss. County of Stanislaus )

STANISLAUS COUNTY PUBLIC NOTICE I am a citizen of the United States; I am over the age of NOTICE IS HEREBY GIVEN that on May 25, 2021, at 9:00 am., or as soon there­ after as the matter may be heard, the Stanislaus County Board of Supervisors eighteen years, and not a party to or interested in the will meet in the Basement Chambers, 1010 10th St., Modesto, CA, to oonsider above entitled matter. I am the principal clerk of the the adoption and the waiving of the seoond reading of the following ordinances: A. Ordinance C.S. 1296 to adopt new fees and amend or eliminate existing fees printer of the Modesto Bee, a newspaper of general and fee adjustments for the Department of Environmental Resources as follows: circulation, printed and published in the city of • Increased Weighted Labor Rate of the Department • A 3.5% surcharge will be added to any fee collected by credit card Modesto, County of Stanislaus, and which newspaper • Hazardous Materials: Increase in Underground Storage Tank, Farm Disclosure has been adjudged a newspaper of general circulation and Conditionally Exempt Small Quantity Generator (CESQG) Fees, and new CESQG fee categories by the Superior Court of the County of Stanislaus, State • Environmental Health: Increase in Temporary Food Facilities and Mobile Food of California, under the date of February 25, 1951 Action Facility Plan or Operational Procedure Review Fees, and changes to Food Pro­ gram Fees: New Well Permit Modification/Transfer/Cancellation Fee, and in­ No. 46453 that the notice, of which the annexed is a creases and changes to Well Construction Program Fees; Increase and changes printed copy, has been published in each regular and to Groundwater Ordinance Permit Issuance Appeal Fees; Increase and changes to Septic Pumper Truck Fees; New Uquid Waste Modification/Transfer/Cancel­ entire issue of said newspaper and not in any ation Fee, and increase and changes to Liquid Waste Program Fees: New Deten­ supplement thereof on the following dates, to wit: tion Facility Inspection/Report Fee and New Organized Camp Fees • Landfill: Increase in Ash Tipping; Increase and changes in Appliance Fees (white goods waste), and add new Microwave Fee. For further information, oon­ No. of Insertions: 1 tact Julie Mendoza at (209) 525-6700, [email protected] or at 3800 Cornu­ copia Way, Suite C, Modesto, CA. 8. Ordinance C.S. 1299 to amend existing fees for Planning Services. For further Beginning Issue of: 05/18/2021 information, oontact Planning and Community Development at (209) 525-6330, [email protected] or at 1010 10th Street, Suite 3400, Modesto, CA. Ending Issue of: 05/18/2021 C. Ordinance C.S. 1298 to amend existing fees for Building Services. For further information, contact Planning and Community Development at (209) 525-6330. planning @stancounty.com or at 1010 10th Street, Suite 3400, Modesto, CA. D. Ordinance C.S. 1295 to amend existing fees for the Department of Public Works as they relate to development permits. grading permits, building permits. encroachment permijs, and other projects involving construction activijies in Stanislaus County. For further information, contact Frederic Clark, Public Works Department Dep­ uty Directo r, at (209) 525-4302, clarkf @stancounty.com o r at 1010 10th Street. Suite 4204, Modesto, CA. E. Ordinance C.S. 1297 to establish new fees and eliminate existing fees for I certify (or declare) under penalty of perjury that the Commercial Cannabis Activijies. For further information, contact Tera Chumley in the Chief Executive Office at (209) 525-6333, or at 1010 10th Street, Suite foregoing is true and correct and that this declaration 6800, Modesto, CA. was executed at Dallas, Texas on: ADDITIONAL NOTICE IS GIVEN that the proposed ordinances and fee schedules are available for review in the Clerk of the Board Office, 1010 10th Street, Suite Date: 9th, day of June, 2021 6700, Modesto, CA. REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act ~ you need specia l assistance to participate in this meeting, please contact the Clerk of the Board at (209) 525-4494. Notification 72 hours prior to the meeting will enable the County to make reasonable arrangements to ensure accessib ility to this meeting. BY ORDER OF THE BOARD OF SUPER­ VISORS. DATED: May 11, 2021 . ATTEST: Elizabeth A. King, Clerk of the Board of Supervisors of the County of Stanislaus, State of California. IPL0023757 May 18 2021 Notary Public in and for the state of Texas, residing in Dallas County MW&\~..,..,.,, GRIHM ... ,.., ...... Extra charge for lost or duplicate affidavits. Legal document please do not destroy! COMMERCIAL CANNABIS ACTIVITIES FEE UPDATE

TERA CHUMLEY, SR. MANAGEMENT CONSULTANT CHIEF EXECUTIVE OFFICE COMMERCIAL CANNABIS ACTIVITIES FEES

 December 5, 2017, Board adopted ordinances related to regulating Commercial Cannabis Activities  Established new fees  Cannabis Application Processing  Background Investigation and Live Scan  Security Plan Inspection  Regulatory Cannabis Business Permit  Track and Trace TRACK AND TRACE PROGRAM FEES

 State implementation of Metrc. Track and Trace Program Fees Rate  The Agricultural Track & Trace Stamps $0.15 per stamp Commissioner entered into a cooperative agreement with Track & Trace Delivery $25 per order CDFA to conduct compliance Track & Trace Set up/Training $400 per session inspections, approved by the Track & Trace Account Fee $1,080/year Board on May 14, 2019.  The Agricultural Commissioner is reimbursed $400 per inspection.  Eliminate County Track and Trace Fees. DEVELOPMENT AGREEMENT AMENDMENT FEE

 The Chief Executive Office has received requests to make amendments to approved Development Agreements.  The Development Agreement Fee in the Planning & Community Development Department fee schedule does not address Chief Executive Office and County Counsel staff time.  It is recommended to add a fee to the Commercial Cannabis Program to address staff costs associated with Development Agreement amendments.  Weighted Labor Rates and estimated total of sixteen staff hours were calculated to determine a minimum charge/deposit;  Chief Executive Office, County Counsel, and Clerk of the Board staff  Minimum charge/deposit of $2,802.37  Time spent beyond the estimate will be charged actual costs. Hold Public Hearing to Introduce and Waive the First Reading of an Ordinance to Establish New Fees and Eliminate Existing Fees for Commercial Cannabis Activities

Tera Chumley, Sr. Management Consultant QUESTIONS Chief Executive Office