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Seconded by Supervisor__ G[~"Y€1L ______And Approved by the Following Vote, Ayes: Supervisors: ~

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Seconded by Supervisor__ G[~ 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'!<!i!,_'{'{)thJ9~.-~r~~?!,_ Q:. 9_qn,q_i! ?.fl.fl_ 9!1.§!Jr:n:i§.:IJ:l_QbL~~c!.- _____________________ _ Noes: Supervisors: ______________ None ______________________________________________________ _ Excused or Absent: Supervisors: _None ------------------------------------------------------- Abstaining: Supervisor: _________ N.Qne. _______________________________________________________ . 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
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