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Home My WebLink About15 - PH-3 - Fees to Process Applications for Medical - 4/18/2017CITY COUNCIL AGENDA REPORT MEETING DATE: APRIL 18, 2017 ITEM NUMBER: PH -3 SUBJECT: FEES TO PROCESS APPLICATIONS FOR MEDICAL MARIJUANA BUSINESSES ALLOWED PURSUANT TO MEASURE X DATE: APRIL 6, 2017 FROM: CITY MANAGER'S OFFICE PRESENTATION BY: RICK FRANCIS, ASSISTANT CITY MANAGER FOR FURTHER INFORMATION CONTACT: Rick Francis (714) 754-5688 Rick.francis(ab_costamesaca.gov RECOMMENDATION: Adopt the attached resolution setting fees for the following applications required to allow medical marijuana businesses pursuant to Measure X: • Medical Marijuana Business Permit: • Conditional Use Permit: • Appeal regarding Conditional Use Permit: • Medical Marijuana Business Background Check ANALYSIS: On November 8, 2016, the voters approved Measure X, the City of Costa Mesa Medical Marijuana Measure. Measure X allows medical marijuana distributors, manufacturers, processors, research and development laboratories, testing laboratories and transporters to be located in those portions of the Manufacturing Park (MP) and Planned Development Industrial (PDI) zones located both north of South Coast Drive and west of Harbor Blvd., excluding any portion of the area commonly referred to as the South Coast Collection. In addition, such businesses may not be conducted on any lot within 500 feet of Moon Park. Measure X prohibits the sale or cultivation of marijuana. Measure X requires these businesses to obtain a Medical Marijuana Business Permit, a Conditional Use Permit, and a Business License before they may conduct business in the City. In addition, Measure X sets forth operational requirements for these businesses, and requires the City Manager to develop Administrative Regulations to establish the procedures by which this measure shall be implemented and enforced. The City has retained the services of HdL Consulting to assist in developing permitting requirements. HdL presently performs audits of the City's sales tax. HdL has significant experience implementing marijuana business regulations in Colorado and other communities that have allowed marijuana businesses. HdL will also be assisting the City in reviewing applications for medical marijuana businesses. City staff has drafted Administrative Regulations that outline the application and review processes for the Medical Marijuana Business Permit and the Conditional Use Permit. Processing these permits will require a significant amount of staff time, as well as the consultant's time. Staff believes it is appropriate to establish fees that apply only to medical marijuana businesses, given the amount of time and expenses incurred for consulting review. Estimates of the time to be spent by HdL and city staff to process these applications have been prepared. Fees for each permit have been developed based on these estimates. Staff expects to keep logs of the actual time spent processing these applications and may return to the Council to modify the fees in the future. LEGAL REVIEW: The draft resolution has been reviewed and approved as to form by the City Attorney's Office. CONCLUSION: The proposed fees represent estimates of the time required by staff and a consultant to process the applications that will allow medical marijuana businesses to be established and operated pursuant to Measure X. RICHARD L. FRANCIS Assistant City Manager ATTACHMENTS: 1. Resolution establishing fees for Medical Mariivana Business applications Attachment 1 RESOLUTION NO. 17-xx A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA, CALIFORNIA, ESTABLISHING AND ADOPTING FEES TO PROCESS APPLICATIONS FOR MEDICAL MARIJUANA BUSINESSES ALLOWED PURSUANT TO MEASURE X THE CITY COUNCIL OF THE CITY OF COSTA MESA HEREBY RESOLVES AS FOLLOWS: WHEREAS, the City Council of the City of Costa Mesa has heretofore established various schedules of rates, fees, and charges for services provided by the City including, but not limited to, processing conditional use permits and business permits; and WHEREAS, pursuant to the provisions of the California Constitution and the laws of the State of California, the City of Costa Mesa is authorized to adopt and implement rates, fees, and charges for municipal services; provided, however, that such rates, fees, and/or charges do not exceed the estimated reasonable cost of providing such services; and WHEREAS, California Government Code Section 66016 requires notice to be given and data made available at specified times prior to the adoption of increases in existing rates, fees, and charges, or the adoption of new rates, fees, and charges for use permits and building inspections sometime hereinafter at a public meeting of this City Council; and WHEREAS, California Government Code Section 66018 requires notice to be published in accordance with California Government Code Section 6062a and data made available concerning rates, fees, and charges prior to conducting a public hearing with respect to the adoption of increases in rates, fees, and charges, or the adoption of new rates, fees, and charges for which no other procedure is provided by law; and WHEREAS, pursuant to California Government Code Section 66016, this City Council has held at least one public hearing and received oral and written presentations thereat with respect to "user fees" prior to the adoption of this Resolution; and WHEREAS, pursuant to California Government Code Section 66018, this City Council has conducted and concluded a duly noticed public hearing with respect to the rates, fees, and charges prior to the adoption of this Resolution; and WHEREAS, this City Council desires to establish fees associated with the review of applications for medical marijuana businesses by the City of Costa Mesa as set forth herein; and WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred; NOW, THEREFORE, BE IT RESOLVED as follows: Section 1: This City Council hereby finds and determines that based upon the data, information, analysis, oral and written documentation presented to this City Council concerning the rates, fees, and charges described in Exhibit "A" attached hereto and by this reference incorporated herein, the rates, fees, and charges set forth in said Exhibit "A" do not exceed the established reasonable cost of providing the service for which the rates, fees, or charges are levied. Section 2: The rates, fees, and charges set forth in Exhibit "A" as further described below, are hereby adopted and approved as the rates, fees, and charges for the services identified for each such rate, fee, and/or charge: Exhibit "A"— Medical Marijuana Business Fees Section 3: The rates, fees, and charges set forth in Exhibit "A" shall be effective and shall be implemented commencing April 19, 2017, except for the Conditional Use Permit fee, which will take effect on June 19, 2017, which is at least 60 days after Council adoption. Section 4: The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. PASSED, APPROVED AND ADOPTED ON April 18, 2017. Katrina Foley, Mayor ATTEST: APPROVED AS TO FORM: Brenda Green, City Clerk Thomas Duarte, City Attorney STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss CITY OF COSTA MESA ) I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY CERTIFY that foregoing Resolution No. 17-xx was duly passed and adopted by the City Council of the City of Costa Mesa at a regular meeting held on April 18, 2017, by the following roll call vote, to wit: AYES: COUNCIL MEMBERS: NOES: COUNCIL MEMBERS: ABSENT: COUNCIL MEMBERS: IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa on April 18, 2017. BRENDA GREEN, CITY CLERK EXHIBIT A FEES TO PROCESS APPLICATIONS FOR MEDICAL MARIJUANA BUSINESSES Adopted by the Costa Mesa City Council April 18, 2017 Medical Marijuana Business Permit $ 21,525.00 • Required background checks are not included; additional fee required as noted below Individual Background Check $ 341.00 Police Dept. LiveScan fees $ 59.00 Optional Fee Imposed at City's discretion if State and/or Federal $ 300.00 Background Checks not available based on cost to City to have background check performed by City consultant Medical Marijuana Conditional Use Permit** $27,508.00 Appeal of Conditional Use Permit** $ 3,915.00 **Fee will not be effective until June 19, 2017