Loading...
HomeMy WebLinkAboutItem No. 01 - Required Annual Commercial Cannabis Business Permit Update Staff Report City of San Bernardino Request for Council Action Date: June 17, 2020 To: Honorable Mayor and City Council Members From: Teri Ledoux, City Manager By:Michael Huntley, Community & Economic Development Director Subject: Required Annual Commercial Cannabis Business Permit Update Recommendation It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Accept the annual commercial cannabis business permit update and litigation update; and 2. Discuss and provide direction to staff on whether to increase or modify permit categories and the number of permits, and direct staff to prepare a possible ordinance to increase the total number of permits and/or prepare a resolution to either adjust the distribution of permits by type or to eliminate the restriction altogether; and 3. Discuss and provide feedback on recommended amendments to the proposed commercial cannabis business permit application review criteria, procedures and fees; and 4. Adopt Resolution 2020-148 authorizing the transition of two current open and operating commercial cannabis businesses to alter their existing permits to transition to two commercial cannabis microbusiness permits. Discussion Annual Commercial Cannabis Business Permit Update San Bernardino Municipal Code Chapter 5.10 establishes the regulations and standards for Commercial Cannabis Business (CCB) activities in the City. The Mayor and City Council initially adopted Chapter 5.10 through Ordinance MC-1464 in March 2018. In October 2018, the Mayor and City Council amended Chapter 5.10 with Ordinance MC- 1503. The Mayor and City Council then adopted Resolution 2018-227 to place Ordinance MC-1503 on the November 2018 ballot for voter approval. In November 2018, the voters approved Ordinance MC-1503 as Measure X. Chapter 5.10 requires the Mayor and City Council to set forth procedures to govern the Page 1 6776 application process for CCB permits (SBMC, § 5.10.090 (a)). In April 2018, the Mayor and City Council adopted Resolution 2018-102, establishing the review criteria for CCB applications and authorizing the City Manager to prepare the necessary forms, establish the application process, solicit applications, conduct the initial evaluation, and ultimately provide a recommendation to the Mayor and City Council. The current Procedures and Guidelines, issued by the City Manager, are attached hereto (Attachment 1). Regulations and Process Under Chapter 5.10, to operate a commercial cannabis business in the City, a person must obtain a valid CCB Permit from the City and a valid license for the cannabis operation from the State (SBMC, § 5.10.060). The City offers six types of permits: cultivation, distribution, manufacturing, microbusiness, retail, and testing (SBMC, § 5.10.060). Chapter 5.10 currently initially caps the number of commercial cannabis business permits that the City may issue to one permit for every 12,500 residents based on population reports from the State Department of Finance (SBMC, § 5.10.080). The total cap is presently 17 permits, based on a January 2017 population report. This cap may be increased by Ordinance of the Mayor and City Council (SBMC, § 5.10.080). History and Current Status of Permits The application period for commercial cannabis business permits was open from May 2018 to June 2018. The City processed the applications and awarded sixteen permits in February 2019. As of the time this report was written, the status of the awarded permits is as follows: Currently the City has two open and operating commercial cannabis businesses, one retail business, and one distribution business, with a second retail business close to Page 2 6776 opening. Additionally, there are 9 businesses in various categories in the plan check process and two preparing to submit by the end of July. Staff has communicated with the last two applicants who have indicated that they are not ready to proceed to the next step and have not submitted for plan check. Various Recommendations: Permit Processing, Microbusinesses, and Relocations Under Chapter 5.10, the application process may be changed from time-to-time. Staff is recommending amending the application process to address modifications, changes or additions to existing license types and the expansion of an existing business footprint and preparations. This proposed expansion will allow for the two current operators (distribution and retail) to consider a transition to Microbusiness (Attachment 2). This will also allow for awarded but not yet operating and future cannabis businesses to modify their awarded permits to expand their operations and generate additional revenue. Staff is also recommending these amendments be processed administratively as part of the overall application process streamlining. As referenced in Section 5.10.200, awarded cannabis businesses may apply for relocation within the City using the established application process set forth in Section 5.10.090. The application process is currently set up in four phases consisting of an application submittal, review of the application, applicant interviews, and Mayor and City Council consideration. There are set fees established for each phase. Staff is recommending streamlining this process by combining Phase 1 and 2, eliminating Phase 3, and keeping Phase 4. As outlined in the proposed guidelines (see Attachment 4), the proposed process will consist of three steps: (1) application submittal; (2) staff review; and (3) Mayor and City Council consideration. By streamlining the process, an applicant wanting to relocate will be able to move forward in a simplified manner to the Mayor and City Council for consideration. Pursuant to Section 5.10.320 (Other Operational Requirements), as part of the Mayor , or his/her designee, has the ability to develop other commercial cannabis business operational requirements or regulations as are determined to be necessary to protect the health, safety, and welfare of the public. Staff would like direction from the Mayor and City Council on whether to require applicants to provide a Lease Agreement or Purchase Agreement as an additional operational requirement during the application process. If this is desired, staff will application. If, instead, it is preferred that such evidence be provided upon approval, staff will require the applicant to provide such documentation within 60 days as a condition of approval. Permit Processing Deadlines As illustrated in the Current Status table above, staff believes that it is in the best interest of the City and other perspective applicants to establish and impose deadlines on applicants who were awarded a permit, but who have been slow to establish their Page 3 6776 business. There may be various reasons why some of the permittees have been slow to proceed; however, staff contends that a performance provision should have been rrent applicants that were awarded a CCB in February 2019 of three (3) months from the time any ordinance expanding the number of permits goes into effect. If the awarded applicant is not able to secure a location and submit tenant improvement plans to the City for review within the allotted time frame, the applicant will forfeit their permit. The intent of this proposed provision is to move stalled applicants along, and if they cannot proceed in a reasonable time frame, open the available permits up to other prospective applicants who have the ability to secure a location and establish a commercial cannabis business. Additionally, staff is also proposing a new 12-month deadline for new applicants awarded a permit by Mayor and City Council. The 12-month deadline begins from the date the permit is awarded. This is intended to provide ample time for a permittee to proceed with securing a location and submitting for their tenant improvements as outlined in the proposed guidelines (see Attachment 4). Moreover, the timeframe emphasizes to applicants that they must diligently pursue the establishment of their commercial cannabis business, or risk losing their permit. The lack of a performance provision has impacted the projected cannabis tax revenue that the City was expecting to receive as a result by permitting commercial cannabis businesses in the City. Award Existing Operators the Opportunity to Operate as Microbusinesses The City awarded five microbusiness permits in February 2019. To date, not a single microbusiness is in operation. One microbusiness applicant experienced a delay due to relocation and is now in plan check. The two operators who are open for business and generating tax revenue (distribution & retail) have demonstrated the ability to open, operate, and do business. The City can further its goals by offering each of the two businesses the opportunity to operate as microbusinesses. The City has awarded a total of 16 commercial cannabis business permits in various categories so expanding this one category will require the adoption of a Resolution pursuant to Chapter 5.10 of the Municipal Code. The Mayor and City Council will also need to adopt an administrative process to facilitate the changes should the operators desire to take advantage of the opportunity. The operators would be required to pay a $4,618 Application Submittal and Review Fee, but will not go through an entirely new the full formal review process. Should the Mayor and City Council desire to move forward with the various policy recommendations set forth in this report, it will need to adopt a resolution updating the Procedures and Guidelines. Some of those policy amendments are set forth in the attached draft Guidelines (Attachment 4). The City can further the goal of implementing the voters desire to see cannabis businesses operating in the City by providing greater flexibility to make changes to the various categories and for the maximum number of permits. Under Chapter 5.10, some of these changes must be adopted by resolution and others by ordinance. The voter Page 4 6776 approved Chapter 5.10 provides that the City will start with one cannabis permit for every 12,500 in population, but it also authorizes the City to increase the number of permits by ordinance. For various reasons, it can take many months for operators to open for business. The City may want to consider increasing the number of permits, realizing that ultimately there will be fewer operators than the number of awarded permits. Increasing the number of permits will also be essential to resolving litigation as discussed in the litigation section below. Commercial Cannabis Litigation Update and Recommendations Below is a brief summary with expenses, to date, of each of the cases involving San itting of commercial cannabis businesses: A. Washington, et al. (CIVDS 1905710, filed 2/25/2019) Opposing Counsel: Ben Eilenberg (Please note: though the court has suspended) Plaintiffs: Washington, LLC (microbusiness applicant, denied); MTV Holdings, LLC (affiliation unknown); Bubba Likes Tortillas, LLC (affiliation unknown) Defendants: City; Andrea Miller Format of Complaint: Complaint and Petition for Writ of Mandate (Government Waste/Government Corruption) Allegations: Issuance of permits to groups without approved Zoning Verification Letters and to groups whose projects conflict with the SB General Plan was illegal; all permits were issued illegally because Phase III interviews constitute meetings in violation of the Brown Act; all permits were issued illegally procedures; all permits were issued illegally because the process was tainted by illegal campaign contributions. Application Problems/Score: Phase 2: 67.07% (15th out of 17 for microbusiness); Phase 3: 77.92% (17/17); Combined: 73.85% (16/17). $141,704.35 (Please note: all work applicable to all cases jointly-including creation of the administrative record-has been billed to this matter) B. EEL Holdings, LLC (CIVDS 1906467, filed 3/1/2019) Opposing Counsel: Jeff Augustini Plaintiff: EEL Holdings, LLC (Elliot Lewis with Connected Cannabis Co., Page 5 6776 retail applicant, denied) Defendants: City; Andrea Miller Format of Complaint: Verified Petition for Writ of Mandamus and Complaint for Peremptory Writ of Mandate and Injunctive Relief Allegations: The City violated 5.10.090, 180, 250(c), and Resolution 2018-102 by permitting applicants whose application did not comply with the General Plan, by altering adopted application procedures of May 2018 without a Resolution as required by 5.10.090(a) and 5.10.180(a), by failing to apply and assess objective review criteria as required by 5.10.090(a) and Resolution 2018- 102 and by abusing discretion under 5.10.090(a) to formulate and implement criteria, and by permitting a late-filed application to proceed and ultimately to award that applicant a license in violation of 5.10.090(d). The City also cost Plaintiff at least $100,000 in failing to permit the Connected Cannabis Co. Application Problems/Score: Phase 2: 82.73% (Tied 8th out of 18 for retail); Phase 3: 82.32% (13/18); Combined: 82.48% (12/18). $92,186.17 C. Ashe Society SB LLC (CIVDS 1911952, filed 4/19/2019) Opposing Counsel: Tin Westen of Westen Law Plaintiff: Ashe Society SB LLC (two permit applications: 590 S. E St (retail) and 785 S. Lugo Ave (retail), both denied) Defendants: City; Andrea Miller Format of Complaint: Verified Petition for Peremptory Writ of Mandate and Complaint for Declaratory Relief Allegations: The City violated 5.10.180, among other sections, in failing to adhere to requirements to select applicants who would move forward with the permitting process at a public hearing. The City published the May 21, 2018 guidelines without adoption by Resolution as required. Scoring was inconsistent, Approving permits on February 21, 2019 represents a misinterpretation and failure to comply with the mandates of 5.10. Application Problems/Score: S. E Street: Phase 2: 81.07% (11th out of 18 for retail); Phase 3: 83.52% (16/18); Combined: 82.60% (11/18) Atto $6,077.04 Page 6 6776 D. SB Pharma Holdings, Inc. (CIVDS 1914576, filed 5/14/2019) Opposing Counsel: Nancy Minkler of Ad Astra Law Group Plaintiff: SB Pharma Holdings, Inc. dba The Row House (retail applicant, denied) Defendant: City Format of Complaint: Petition for Writ of Mandate (CCP §§ 1085, 1094.5) and Complaint for Injunctive Relief Allegations: The City violated 5.10 and the Application Procedure Guidelines by allowing applicants who did not comply with the cannabis Ordinance, comply with the General Plan, pay the required fees, submit required materials, or obtain the required Zoning Verification Letter to proceed through the process. Selection was inconsistent with scoring, with the highest scoring applicants not selected for permits. Application Problems/Score: Phase 2: 82.73% (Tied 8th out of 18 for retail); Phase 3: 83.56% (7/18); Combined: 83.25% (9/18). $32,445.86 E. Kahros, et al. (CIVDS 1830325, filed 11/20/2018) Opposing Counsel: John Jay Lebron Plaintiffs: Kostadinos Kahros, Athina Kahros, Leonard Paul Alba Defendants: City; Jarrod Burguan (Chief of Police); Jeffrey Bloom (Interim Director of the Community Development Department) Format of Complaint: Complaint for Declaratory Relief, Inverse Condemnation, Petition for Writ of Mandate and Injunctive Relief Allegations: (1/18/18) and signing the judgment repealing Measure O (2/28/18), Defendants obtained and served search warrants against all 50 operating marijuana Department of Building and Safety accompanied police and entered the premises of cannabis businesses and inspected for compliance with building and safety hearing is a taking. What the Plaintiff Wants: Money damages and an order enjoining SB Page 7 6776 electrical service to close down marijuana businesses. $2,132.87 F. KP Investment Group, LLC (CIVDS 1909577, filed 3/29/2019) Opposing Counsel: Robert Freeman Plaintiffs: KP Investment Group, LLC (microbusiness applicant, denied) Defendants: City; Andrea Miller Format of Complaint: Complaint and Petition for Writ of Mandate Allegations: Businesses which did not receive approved Zoning Verification Letters improperly received permits (Luke, LLC \[Organtix Orchards\]; AM-PM MGMT, Inc. \[Cold Creek Organics\]; Ashe Society SB, LLC; Red Brick Industries, LLC). SB failed to provide a full scoring rubric, and certain scores seem nonsensical; for example, AM-PM was denied a Zoning Verification Letter and had eight sensitive uses within 600 feet, but received a 165/200 Neighborhood Compatibility score and a 160/200 Location score. Applicants who were noncompliant with the General Plan received scores higher than those who were compliant; e.g., Orange Show Cultivators was deemed noncompliant but received a Neighborhood Compatibility score of 178.75/200 and a Location score of 167.5/200. Further, SB violated its own procedures and the Municipal Code. Application Problems/Score: Phase 2: 73.67% (11th out of 17 for microbusiness); Phase 3: 82.48% (8/17); Combined: 79.18% (11/17). $1,659.95 G. Washington II (CIVDS 1922151, filed 7/26/2019) Opposing Counsel: Ben Eilenberg (Please note: though the court has suspended) Plaintiffs: Washington, LLC (microbusiness applicant, denied) Defendants: City Format of Complaint: Complaint and Petition for Writ of Mandate (Government Waste/Government Corruption) Allegations: The City Council of the City of San Bernardino lacked the authority to reduce the setback requirement in Section 5.10.250 of the San Page 8 6776 Bernardino Municipal Code. Application Problems/Score: Phase 2: 67.07% (15th out of 17 for microbusiness); Phase 3: 77.92% (17/17); Combined: 73.85% (16/17). $16,770.78 H. Interveners in Open Litigation These are businesses which either received a commercial cannabis business permit or participated in the process, but were not awarded, and are concerned that the outcome of the lawsuits may adversely impact them. Name Type Phase 3 Status Counsel Score 4th Street Microbusiness 2018/2500 Not awarded Unknown Dispensary (80.72%) Blunt Brothers, Distribution 2080/2500 Awarded; Open Dana Inc. (83.20%) Cisneros Central Avenue Microbusiness 2067/2500 Awarded; In plan James Nursery, LLC (82.68%) check Penman ECS Labs, Inc. Microbusiness 2051/2500 Not awarded Matt Harrison (82.04%) Nibble This, Microbusiness 2119/2500 Awarded; Permits Jacqueline LLC (S. E St.) (84.76%) pulled, under Vinaccia construction Microbusiness 2121/2500 Awarded; In plan (S. H St.) (84.84%) check Orange Show Microbusiness 2223/2500 Awarded; Not Jason Cultivators, Inc. (88.92%) submitted for plan Thompson check I. Captain Jacks - Yi v. City of San Bernardino (Measure O Related Litigation) Opposing Counsel: Roger Diamond The City recently prevailed on an appeal. The Court found the issue of the validity of Measure O to be moot and ordered the case dismissed. The issue of the validity of the Measure O permits has not been decided and the attorney has indicated a willingness to continue to litigate. Page 9 6776 J. Recommendation Should these lawsuits proceed to trial (seven trials total as cases have been consolidated for discovery purposes only), Plaintiffs have expressed great desire to aggressively pursue discovery, including but not limited to depositions of council members. We can also anticipate dispositive motions on just about every case, though as always, summary judgment is a very difficult bar to clear. Without any settlement, we would estimate each trial to cost approximately $75,000, for a total of somewhere in the neighborhood of $500,000. Given the preliminary nature of the cases, however, it is important to remember that this figure is subject to revision upon learning new information. Given that all but one applicant (Washington) exceeded the 80% score threshold, we would recommend engaging in settlement discussions with each viable applicant/plaintiff to move in the direction of issuing permits where possible. Regulation of Cannabis Deliveries Chapter 5.10 that regulates cannabis businesses was adopted by the voters as Measure X. If the Mayor and City Council desire to formally amend Chapter 5.10, it will have to propose a new measure to the voters. The City Council does not have the authority to amend the Ordinance without voter approval. By way of example only, some cities have enacted cannabis delivery ordinances containing the following provisions related to cannabis deliveries: A City Business License is required (and an associated $293 fee); A Cannabis Delivery Service Permit is required; Delivery is permitted to residential addresses only; Delivery is permitted only during the hours of 9:00 a.m. and 9:00 p.m. Cannabis or cannabis goods delivered to residential properties located within 600 feet of a public or private K-12 school cannot occur during school hours (8:00 a.m. to 3:00 p.m. weekdays); "Dash Cams" are required in delivery vehicles; Delivery service business must include public education materials (i.e., negative health impacts to youth and DUI prevention) Background checks are required by the City. If the Mayor and City Council wants to enact similar regulations on cannabis delivery businesses, staff can prepare a report guiding the Mayor and City Council on the steps to do so. In the meantime, staff plans to ensure that the Guidelines make clear that deliveries are subject to the permitting scheme (all CCBs are) and no delivery service to locations within the City is permitted absent a permit. Of course, deliveries that simply go through the City may continue so long as they are not picked up or dropped off within City limits. Page 10 6776 Financial Impact Commercial cannabis business permit applicants were required to pay an application hat once commercial cannabis business permits are issued and businesses are operating, it is anticipated the City will receive revenues related to the business activities, however, maximum revenues have not been achieved, and the City has incurred and will continue to incur litigation related costs. If the City were to continue with the litigation, costs may be as high as half a million dollars or more. The City may be able to resolve certain cases without any monetary payments. 2020-2025 Key Strategic Targets and Goals The annual commercial cannabis update and proposed changes to the existing guidelines is consistent with Key Target No 1: Financial Stability. Specifically, improving the commercial cannabis business procedures and the code provisions that regulate commercial cannabis, should improve the process thereby allowing the City to capture cannabis revenue. Conclusion It is recommended that the Mayor and City Council of the City of San Bernardino, California: 1. Receive and file the annual commercial cannabis business permit update and litigation update; and 2. Discuss and provide direction to staff on whether to increase or modify permit categories and the number of permits, and direct staff to prepare a possible ordinance to increase the total number of permits and/or prepare a resolution to either adjust the distribution of permits by type or to eliminate the restriction altogether; and 3. Discuss and provide feedback on recommended amendments to the proposed commercial cannabis business permit application review criteria, procedures and fees; and 4. Adopt Resolution 2020-148 authorizing the transition of two current open and operating commercial cannabis businesses to alter their existing permits to transition to two commercial cannabis microbusiness permits. Attachments Attachment 1 Guidelines (Issued by City Manager per Resolution 2018-102) Attachment 2 Resolution 2020-148 Attachment 3 Draft Resolution to Amend Established Commercial Cannabis Permit Application Review Criteria, Procedures and Fees Attachment 4 Draft New Procedures & Guidelines, Application Review Criteria and Proposed Fees Ward: All Page 11 6776 Synopsis of Previous Council Actions: March 7, 2018 Mayor and City Council Ordinance-1464 Adopting Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities. April 4, 2018 Mayor and City Council Adopted Resolution 2018-101 Establishing the Maximum Number of Commercial Cannabis Business Types. April 4, 2018 Mayor and City Council Adopted Resolution 2018-102 Establishing Commercial Cannabis Permit Application Review Criteria and Procedures. April 4, 2018 Mayor and City Council Adopted Resolution 2018-103 Establishing Commercial Cannabis Application Review and Appeal Fees. September 5, 2018 Mayor and City Council Adopted Ordinance-1503 Amending Chapter 5.10 of the San Bernardino Municipal Code related to the Regulation of Commercial Cannabis Activities. Page 12 ¸ ¸ ¸ ¸ ¸ Dpnnfsdjbm!Dboobcjt!Cvtjoftt!€!Hvjefmjoft!Sfwjtfe!1204202:! .!2!€! ¸ p p ¸ ¸ p ¸ p p ¸ Dpnnfsdjbm!Dboobcjt!Cvtjoftt!€!Hvjefmjoft!Sfwjtfe!1204202:! .!3!€! p p p ¸ ¸ p p ¸ ¸ p p p p p ¸ ¸ Dpnnfsdjbm!Dboobcjt!Cvtjoftt!€!Hvjefmjoft!Sfwjtfe!1204202:! .!4!€! ¸ p ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ p p ¸ p p Dpnnfsdjbm!Dboobcjt!Cvtjoftt!€!Hvjefmjoft!Sfwjtfe!1204202:! .!5!€! ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ ¸ Dpnnfsdjbm!Dboobcjt!Cvtjoftt!€!Hvjefmjoft!Sfwjtfe!1204202:! .!6!€! ¸ ¸ ¸ ¸ ¸ ¸ ¸ p p p Dpnnfsdjbm!Dboobcjt!Cvtjoftt!€!Hvjefmjoft!Sfwjtfe!1204202:! .!7!€! RESOLUTION NO. 2020-148 RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING TWO CURRENT OPEN AND OPERATING COMMERCIAL CANNABIS BUSINESSES TO ALTER THEIR EXISTING PERMITS TO TRANSITION TO TWO COMMERCIAL CANNABIS MICROBUSINESS PERMITS WHEREAS, Chapter 5.10 (Commercial Cannabis Activities) of the San Bernardino Municipal Code provides that the various categories of cannabis business types may be set by Resolution; and WHEREAS, the Mayor and City Council previously authorized five (5) cannabis Microbusiness business license types; and WHEREAS, the Mayor and City Council awarded sixteen (16) commercial cannabis business (CCB) permits on February 21, 2019 and to date only two (2) of the sixteen (16) are open and operating; and WHEREAS, the Mayor and City Council desires to increase revenue from cannabis operations, as the City had anticipated more cannabis businesses that had been awarded permits would be operating and generating revenue; and WHEREAS, the two (2) businesses that are open and operating have demonstrated that they can professionally manage and operate their businesses and it may be beneficial to the City to authorize these two (2) operators to alter their existing permits to transition to Microbusinesses; and WHEREAS, by allowing the two (2) businesses that are open and operating to alter their existing permits to provide for Microbusiness, would not allow for the replacement of their currently held license types; and WHEREAS, the City Council desires for staff to take all additional actions necessary, such as amending the cannabis Application Review Criteria and Procedure Guidelines to provide for a permit fee and processing to accommodate a transition to a Microbusiness should the two (2) current cannabis business operators desire to apply. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The City Manager is hereby authorized to permit two (2) additional cannabis Microbusiness categories and to prepare all necessary amendments to the cannabis Application Review Criteria and Procedure Guidelines to be adopted by Resolution. Resolution No. 2020-148 SECTION 3. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. SECTION 4. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 5. Effective Date. This Resolution shall become effective immediately. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney Resolution No. 2020-148 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk FOR REVIEW ONLY Resolution No. ___ RESOLUTION NO.______ RESOLUTION OF THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AMENDING ESTABLISHED COMMERCIAL CANNABIS PERMIT APPLICATION REVIEW CRITERIA, PROCEDURES, AND FEES PURSUANT TO SAN BERNARDINO MUNICIPAL CODE SECTIONS 5.10.090 5.10.180, AND 5.10.300. WHEREAS, on March 7, 2018, the Mayor and City Council adopted Ordinance MC- 1503, thereby adopting Chapter 5.10 (Commercial Cannabis Activities) to the Municipal Code; and WHEREAS, on April 4, 2018, the Mayor and City Council adopted Resolution No. 2018-102 and Resolution 2018-103 establishing Application Review Criteria, Procedures, and Fees for the implementation of Chapter 5.10 (Commercial Cannabis Activities) of the Municipal Code; WHEREAS, on February 21, 2018, the Mayor and City Council made a final selection and awarded sixteen (16) Commercial Cannabis Business (CCB) Permits, pursuant to section 5.10.180 (Commercial Cannabis Business Permittee Selection Process) of the Municipal Code; and WHEREAS, on June 4, 2020, the Mayor and City Council further reviewed the Application Review Criteria, Procedures, and Fees and directed City staff to modify the Application Review Criteria, Procedures, and Fees in order to streamline the application evaluation, review, selection and determination procedures; and WHEREAS, pursuant to Section 5.10.090 (Initial Application Procedure) 5.10.180 (Commercial Cannabis Business Permittee Selection Process), and 5.10.300 (Fees and Charges) the Mayor and City Council may amend by Resolution the Application Review Criteria, Procedures, and Fees; WHEREAS, the Mayor and City Council desire to establish modified Application Review Criteria and Procedures from a policy perspective, and fees reflective the modified Application Review Criteria and Procedures based upon the best information available such that the City fully recovers the cost of service. BE IT RESOLVED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. SECTION 2. The Mayor and City Council authorize the City Manager to amend the necessary forms, application process and fees, solicit applications, conduct initial review of FOR REVIEW ONLY Resolution No. ___ applications for completeness, and to ultimately provide a complete, signed application to the Mayor and City Council for final consideration, as set forth in the attached Exhibit A. SECTION 3. The Commercial Cannabis Business Application Review Criteria to be amended as follows: A. Qualifications of Owners/Principals: Describe any special business or professional qualifications or licenses of the Owners/Principals that would add to the number or quality of services, such as scientific or health care fields. B. Location: The application should include the following: Physical address and detailed description of the proposed/final location. Proof of ownership, or a notarized willingness to lease. Description of all known nearby sensitive use areas. C. Neighborhood Compatibility Plan: The application should include the following: Describe how the business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. Additional factors for consideration are religious institutions or libraries located within a six-hundred (600) foot radius of the proposed CCB. D. Environmental Impact Mitigation: relating to energy and climate, water conservation, and materials and waste management. E. Local Enterprise: Describe to what extent the CCB will adhere to heightened pay and benefits standards and practices. Specific practices that are subject to consideration include the following: Providing compensation to and opportunities for continuing education and training of employees/staff; The application should state the extent to which the CCB will be a locally managed enterprise whose Owners/Principals reside within the City and/or within San Bernardino County. F. Business Plan: The Business Plan shall be as detailed as necessary to fully describe the operations, including: Description of day-to-day operations. SBMC Section 5.10.310. How the CCB will conform to local and state laws per SBMC Section 5.10.280 Security and Non-Diversion of Marijuana Grown for Medicinal Use. FOR REVIEW ONLY Resolution No. ___ How cannabis inventory will be tracked and monitored to preventdiversion. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation 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. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. A pro forma for at least three years of operation. Business Purpose Statement G. Enhanced Product Safety: Describe how the CCB will ensure enhanced consumer safety as required by State or local law. H. Safety Plan: The application should include the following: A detailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. I. Security Plan: The application should include the following: A detailed security plan. This plan should include a description and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed. The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale FOR REVIEW ONLY Resolution No. ___ 1 (mi/ 2 acre parcel but must be printed on not larger than an 11 X 17 sheet of paper. J. Community Benefits: Describe the benefits that the CCB would provide to the local community, such as employment for local residents of the City, community contributions, or economic incentives to the City. Specific items that are subject to consideration include the following: How does the type of license requested benefit the community and assure an appropriate mix of license types Citywide? Does the applicant provide an effective community outreach plan for nearby owners and operators? Does the applicant describe credible benefits to the overall community, local economy, and any community or non-profit contributions or affiliations? Does the applicant propose to include one or more of the following business types: i. Coffee Shop ii. Art Studio iii. Museum SECTION 3. The amended fees providing services related to the review, evaluation and final disposition of the Commercial Cannabis Applications, as set forth in the attached Exhibit B. SECTION 4. The establishment of Application Review Criteria, Procedures, and Fees related to the provision of City services under the Commercial Cannabis Ordinance MC- 1503 is exempt under the California Environmental Quality Act (CEQA) and the CEQA Guidelines Section 15061 (b)(3) , 15378, and 15273(a)(1) (Rates, Tolls, Fares and Charges. CEQA only applies to an activity that there is no possibility for causing a significant effect on the environment. It can be seen that there is no possibility that this activity will have a significant effect on the environment and it is therefore exempt from CEQA. SECTION 6. Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable. SECTION 7. Effective Date. APPROVED and ADOPTED by the City Council and signed by the Mayor and attested by the Acting City Clerk this ___ day of __________ 2020. John Valdivia, Mayor City of San Bernardino Attest: FOR REVIEW ONLY Resolution No. ___ Genoveva Rocha, CMC, Acting City Clerk Approved as to form: Sonia Carvalho, City Attorney FOR REVIEW ONLY Resolution No. ___ CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF SAN BERNARDINO) ss CITY OF SAN BERNARDINO ) I, Genoveva Rocha, CMC, Acting City Clerk, hereby certify that the attached is a true copy of Resolution No. 2020-___, adopted at a regular meeting held on the ___ day of _______ 2020 by the following vote: Council Members: AYES NAYS ABSTAIN ABSENT SANCHEZ _____ _____ _______ _______ IBARRA _____ _____ _______ _______ FIGUEROA _____ _____ _______ _______ SHORETT _____ _____ _______ _______ NICKEL _____ _____ _______ _______ RICHARD _____ _____ _______ _______ MULVIHILL _____ _____ _______ _______ WITNESS my hand and official seal of the City of San Bernardino this ___ day of ____________ 2020. Genoveva Rocha, CMC, Acting City Clerk Exhibit A Draft Application Procedure Guidelines Draft Application with Appendix A Chw w9L9‘ hb\[— Community & Economic Development Department Planning Division rd Office: 201 North E Street, 3 Floor Mail: 290 North D Street San Bernardino, CA 92401 P: (909) 384-5357 F: (909) 384-5155 www.sbcity.org COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION Applications may be filed Monday through Thursday between the hours of 7:30 a.m. and 5:00 p.m. and Friday between the hours of 7:30 a.m. and 4:00 p.m. Project Address / Location: Zoning District: General Plan Designation: APPLICANT NAME: Address: Phone: City: State: Zip Code: Email: PROPERTY OWNER NAME: Address: Phone: City: State: Zip Code: Email: (Note: If the applicant or property owner is a trust, partnership, corporation, or LLC, on a separate sheet, provide a list of all persons that make up the trust, partnership, corporation, or LLC) APPLICATION TYPE: New Business Amended Application Business Renewal Change of Location Change of Ownership COMMERCIAL CANNABIS BUSINESS PERMIT TYPE (Please select from one of the following categories): Cultivation Distribution Manufacturer Retailer Retailer Non-Storefront Testing Microbusiness (Please identify all business activities): DESCRIPTION OF PROJECT: Commercial Cannabis Business Permit Application 1 06/2020 Chw w9L9‘ hb\[— PROJECT INFORMATION FORM Property Information: Square footage of subject property: Square footage of building/tenant space: Hours of operation (proposed): Total number of employees (proposed): Business Information: Business Name: Business Address: Website Address (if applicable): Business E-mail Address (if applicable): Community Relations Contact: Name: Phone: Title: Email: Environmental Information (Attach additional sheets as necessary): an energy and climate, water conservation, and materials and waste management): Will the project use, store, or dispose of potentially hazardous chemicals, materials, toxic substances, flammables or explosives: OFFICE USE ONLY Date Filed: Previous Case: Case Number: Receipt Number: Fees Paid: Submitted To: Commercial Cannabis Business Permit Application 2 06/2020 Chw w9L9‘ hb\[— PROJECT INFORMATION FORM (Continued) Other Required Information (Attach additional sheets as necessary): List any person(s) who will be engaging in the proposed commercial cannabis business that have been convicted of a felony or have engaged in misconduct that is substantially related to the qualifications, functions or duties of a commercial cannabis business activity. Please keep in mind that a conviction within this section means a plea or verdict of guilty, or a conviction following a plea of no contest: List whether, the applicant(s) has other licenses and/or permits issued to and/or revoked from the applicant, in the three years prior to the year of the permit application, such other licenses and or permits relating to similar business activities as in the permit application. If yes, please list the type, current status, issuing/denying for each license/permit: Provide the name and address of the closest school(s) to proposed business location: Provide the name and address of the closest existing alcohol related establishment(s) to proposed business location: Description of neighborhood around the proposed location (surrounding uses, nearby sensitive uses (such as schools, youth centers churches, parks, daycare centers, or libraries), transit access to site, etc.): Commercial Cannabis Business Permit Application 3 06/2020 Chw w9L9‘ hb\[— APPLICATION SUBMITTAL REQUIREMENTS The following items shall be submitted with all applications (1 physical copy and 1 electronic copy): Copy of the completed Verification of Proposed Cannabis Site (VPC) Form issued by the City Completed Application Form Filing Fee Notice of Intent to Lease / Purchase Property Site Plan (see below for requirements) Floor Plan (see below for requirements) Elevations (photographs may be provided) Photographs of existing site Area Map (see below for requirements) Live Scan Payment Business Owner(s) Background Information Forms Supplemental Evaluation Criteria (see below for requirements and Appendix A) Mailing list identifying all owners of property located within 600 feet of the proposed business location Mailing labels identifying all owners of property located within 600 feet of the proposed business location Community Relations submittal requirement: Mailing Labels identifying all businesses and owners of property located within 100 feet of the proposed business location (Note: Incomplete applications will not be accepted) Supplemental Evaluation Criteria (See Appendix A): (All information shall be provided as required in Application Procedure Guidelines for Commercial Cannabis Businesses) Business Plan Location Neighborhood Compatibility Plan Safety Plan Security Plan Cultivation and operations plan that meets or exceeds minimum legal standards for water usage, conservation and use; drainage, runoff, and erosion control; watershed and habitat protection; and proper storage of fertilizers, pesticides, and other regulated products to be used on the parcel, and a description of the cultivation activities (indoor, mixed-light) and schedule of activities during each month of growing and harvesting, or explanation of growth cycles and anticipated harvesting schedules for all-season harvesting (indoor, mixed-light) Description of a legal water source, irrigation plan, and projected water use Identification of the source of electrical power and plan for compliance with applicable Building Codes and other related codes Plan for addressing odor and other public nuisances that may derive from the cultivation site Commercial Cannabis Business Permit Application 4 06/2020 Chw w9L9‘ hb\[— APPLICATION SUBMITTAL REQUIREMENTS (Continued) Site (shall contain a minimum of the following information): North arrow, drawing scale, date of preparation and name of plan preparer Dimensions of subject property including square footage Dimensions and names of all adjacent streets and public rights-of way Location and dimensions of all buildings and structures including square-footage Location and dimensions of landscaped areas Location of all parking areas and driveways and means of ingress and egress Location and dimensions of all handicap parking spaces, ramps, curb ramps and signs Location and dimensions of handicap-accessible Path of Travel to building entrance, sidewalks and interior walks Uses for all buildings and structures indicated on the site plan (shall contain a minimum of the following information): North arrow, drawing scale, date of preparation and name of plan preparer Location and dimensions for means of ingress and egress Square footage of all interior spaces Proposed uses of all interior spaces Area Map (shall contain a minimum of the following information): Location of subject property Location of all highways, streets and alleys within a distance of 600 feet from the exterior boundaries of the subject property Location of all lots and parcels of land within a distance of 600 feet from the exterior boundaries of the subject property The Area Map shall identify the existing uses of all lots and parcels of land within a distance of 600 feet from the exterior boundaries of the subject property on the map All sets of plans must be collated and no larger than Commercial Cannabis Business Permit Application 5 06/2020 Chw w9L9‘ hb\[— AUTHORIZATION FORM APPLICANT CERTIFICATION I hereby certify, under penalty of perjury, on behalf of myself and all persons identified in this application that the statements and information furnished in this application and in 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 San Bernardino permission to reproduce submitted materials, including but not limited to, plans, exhibits, and photographs, for distribution to staff, Commission, Board, and City Council Members, and other Agencies in order 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 that agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of San Bernardino Municipal Code and state law. Name Signature Title Date Commercial Cannabis Business Permit Application 6 06/2020 AUTHORIZATION FORM (Continued) PROPERTY OWNER CONSENT If applicant is other than the property owner(s), the owner(s) must provide a signed and notarized statement consenting to filing pursuant to Section 5.10.240 of the City of San Bernardino Municipal Code. Additional sheets may be attached if necessary. Original signatures only. 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. 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. Name Signature Title Date A notary public or other officer completing this certificate verifies only the identity of the induvial who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document. 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. Notary Public Commercial Cannabis Business Permit Application 7 06/2020 FOR REVIEW ONLY APPENDIX A DESCRIPTION OF EVALUATION CRITERIA Location: The application should include the following: Physical address and detailed description of the proposed/final location. Proof of ownership, or anotarized willingness to lease. Description of all known nearby sensitive use areas. Neighborhood Compatibility Plan: The application should include the following: Describe how the business, including its exterior areas and surrounding public areas, will be managed so as to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. Additional factors for consideration are religious institutions or libraries located within a six-hundred (600) foot radius of the proposed CCB. Business Plan: The Business Plan shall be as detailed as necessary to fully describe the operations, including: Description of day-to-day operations. SBMC Section 5.10.310. How the CCB will conform to local and state laws per SBMC Section 5.10.280 and SBMC Section 5.10.420 and the Non-Diversion of Marijuana Grown for Medicinal Use. How cannabis inventory will be tracked and monitored to prevent diversion. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion. A budget for construction, operation, maintenance, compensation of employees, equipment costs, utility costs, and other operation 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. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets. A pro forma for at least three yearsof operation. Business Purpose Statement Safety Plan: The application should include the following: Adetailed safety plan. This plan should describe the fire prevention, suppression, HVAC and alarm systems the facility will have in place. It should include an fire safety by a qualified fire prevention and suppression consultant. An appropriate plan will have considered all possible fire, hazardous material, and inhalation issues/threats and will have both written and physical mechanisms in place to deal with each specific situation. FOR REVIEW ONLY Security Plan: The application should include the following: Adetailed security plan. This plan should include adescription and detailed schematic of the overall facility security. It should have details on operational security, including but not limited to general security policies for the facility, employee specific policies, training, sample written policies, transactional security, visitor security, 3rd party contractor security, and delivery security. In particular, applications should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for access (area specific), types of security systems (alarms and cameras), and security personnel to be employed.The security plan shall also include an assessment of site security by a qualified security consultant. Security plans will not be made public. A floor plan showing existing building conditions. If changes are proposed as part of the project, then a proposed floor plan should also be submitted. The floor plan(s) should be accurate, dimensioned and to-scale (minimum 1 smaller if it exceeds more than a / acre parcel but must be printed on not 2 larger than an 11 X 17 sheet of paper. FOR REVIEW ONLY Community Development Department - Planning Division rd Office: 201 North E Street, 3 Floor Mail: 290 North D Street San Bernardino, CA 92401 P: (909) 384-7272 F: (909) 384-5155 www.sbcity.org APPLICATION PROCEDURE COMMERCIAL CANNABIS BUSINESS (CCB) The City reserves the right to reject any and/or all applications, with or without cause or reason. The City may also modify, postpone, or cancel the request for permit applications without liability, obligation, or commitment to any party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any candidate submitting an application. Late or incomplete applications MAY BE REJECTED. Furthermore, an application RISKS BEING REJECTED for the following reasons: 1.It is considered not fully responsive to this request for a permit application. 2.It contains excess or extraneous material not called for in the request for CCB permit application. 3.Being awarded a CCBpermit does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for any and all construction including electrical, plumbing, fire, planning permits or reviews, and any other permits, licenses, or reviews as may be necessary by the relevant departments or governmental entities in charge of said permits. Nor does it guarantee that the plans submitted via the CCB application process meet the standards or requirements of those permitting departments. All permit awardees will still be required to complete all the permitting processes for the proposed construction or occupation of the facility. Prior to submitting a CCB application: Verification of Proposed Commercial Cannabis Site (VPC), or MCC Prefer: Cannabis Zoning Verification Letter (ZVL) o The Business Owner must obtain an approved Verification of Proposed Commercial Cannabis Site (VPC) from the Community & Economic Development Department, located at 201 North E Street, prior to submitting a CCBapplication, to ensure that the proposed CCB requirements pursuant to Section 5.10.025 of the Municipal CodeVPC takes approximately ten (10) working days and will not be completed over the counter since it may require additional research and review. Application Submittal and Evaluation (Fee: $5,915 + $600 Background Check per Business Owner + $132 LiveScan per Business Owner) ($2,647 + $2,034 + $1,237 = Application Fee including evaluation and Mayor and City Council (MCC) selection and determination.) An Application shall be required for a new business, business renewal, and new location (i.e. relocation to a new property/site/address) o The Application has an outline of all the submittal requirements, review the application to include Appendix A and submit a complete, signed application. o Application will be evaluate based on completeness of Application and the identified items in Appendix A. o Those applicants that submit a complete, signed application and meet all the submittal requirements as identified in the Application and Appendix A, will move to the Mayor and City Council for Consideration. MCC Selection and Consideration o Mayor and City Council will consider every application and determine which applicants will be awarded CCB permit. FOR REVIEW ONLY o Prior to MCC meeting or immediately after MCC determination (if awarded), the applicant shall submit the following (What does MCC Prefer?): Proof of property ownership or lease agreement. o Pursuant to Section 5.10.080 of the Municipal Code and as established by Resolution, MCC may select applicants for permits, depending on the number of permits provided for in each category. o If awardeda CCB Permit by MCC, the applicant shallcomplete and submit theIndemnification Agreementas provided. Deadline to Complete Commercial Cannabis Businesses awarded February 21, 2019 Any Commercial Cannabis Business that has been granted approval pursuant to (Section 5.10.180), but is not in operation prior to the effective date of adopted Resolution 20-XXX, shall be granted a period not to exceed three months from the effective date of the Resolution to secure a final business location and submit plans to the City for improvements. These Improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. New Commercial Cannabis Business Applicants For all business granted approval after the effective date of Resolution 20-XXX, a final business location shall be secured and submittal of improvement plans shall occur within a period not to exceed twelve months from the date of approval. These Improvements may include electrical, plumbing, fire, planning permits or reviews, and any other permits or licenses, or reviews as may be necessary by the relevant departments or government entities in charge of said permits. Amendments to Applications (Fees: 4,681) ($2,647 + $2,034 = Amendment Fee) Amendments to applications must be submitted using the application submittal process and will be reviewed administratively by city staff.Amendments to applications may include but are not limited to a Modification,Change or Addition to aLicense Type or Expansion of Existing Business Footprint & Operations. Exhibit B Application Fees Chw w9L9‘ hb\[— EXHIBIT B COMMERCIAL CANNABIS APPLICATION REVIEW AND APPEAL FEES PURSUANT TO SBMC CHAPTER 5.10 Service Provided: Required Fee: 1. Zoning Verification Letter $183.00 2. Live Scan $132.00/Owner (SBMC 5.10.050) 3. Background Review $600.00/Owner (SBMC 5.10.050) 4. Commercial Cannabis Application a. Application Submittal Fee $2,647.00 b. Application Review Fee $2,034.00 c. Mayor and City Council Consideration $1,237.00 5. Appeal Fee $3,217.00 All fees are non-refundable and are due and payable at the time the application or similar request is submitted to the City