AgdaPkt 2018-04-09 Joint SA PFA - Laserfiche WebLink

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Proposed City Regulations Current State Regulations the Police Department as meeting the City’s security criteria. point-of-sale areas and security personnel. Alarm systems, commercial grade locks, and secure storage Fees The City Council has directed staff to develop cannabis business regulations including nursery cultivation, and delivery. A need for robust cannabis business regulations and sufficient resources for effective enforcement and program management is required. As such, fees need to be established to cover both the administration and enforcement costs associated with cannabis business regulation. In January 2018, the City entered into a professional services agreement with Matrix Consulting Group (Matrix) to conduct a Fee Study in order to find the costs of providing services for Cannabis Business Permit. Between January and March 2018, Matrix held numerous meetings with staff and conducted interviews to confirm the estimated staff time anticipated to provide each specific service. Once the time estimate for a fee activity was determined, all applicable City costs were then considered in the calculation of the “full” cost of providing services including: 1) direct staff time and materials, 2) department and citywide overhead (based on the City’s Cost Allocation Plan), and 3) direct and indirect costs from other divisions to provide the service. The study also assisted in creating well-documented and defensible fees to meet cost recovery policy goals and objectives. The Fee Study completed by Matrix can be found on the City website at www.redwoodcity.org/cannabis or on file in the City Clerk’s Office. As part of the fee study, staff has estimated a reasonable amount of time to provide each-fee related service. As depicted in the attached Matrix Fee Study Report, the fees are expected to cover the costs of administering and enforcing the program. Fees are proposed at full cost-recovery levels, as consistent with the City’s goal of maintaining the long-term fiscal health and financial sustainability of City operations. The proposed Fee Schedule is included in Attachment 8. These fees would be set by Resolution of the City Council. Staff will return to the Council in two years with a recommendation to update fees as necessary. Pursuant to California Government Code Section 6062a, and 66018 notices of the public hearing were published at least ten days in advance and published twice in the newspaper with at least five days between publications. In addition, at least ten days prior to the public hearing, the City made data available to the public indicating the 7.B. - Page 10