Resolution 15451CITY OF ALAMEDA RESOLUTION NO. 15451
AMENDING MASTER FEE RESOLUTION NO. 12191 TO ADD NEW CANNABIS
BUSINESS OPERATOR AND REGULATORY FEES
WHEREAS, the Alameda Municipal Code and the California Government Code
provide that the City Council shall set fees reasonable to recover the cost of providing
various services by resolution; and
WHEREAS, the City Council, at the August 27, 1991 Special City Council
meeting directed City staff to amend the Alameda Municipal Code to reflect that City
fees shall be set by City Council Resolution; and
WHEREAS, State law authorizes local governments to charge fees for services
based on the estimated reasonable cost of providing the service for which the fee is
charged; and
WHEREAS, the City Council is authorized to increase fees annually by the
percentage increase in consumer and/or construction price indices for the San
Francisco Bay Area; and
WHEREAS, the City Council established a regulatory regime by adopting various
ordinances regulating Cannabis Business Activities in the city of Alameda, effective
January 18, 2018, as amended from time to time; and
WHEREAS, the purpose of the regulatory regime is to ensure that the Cannabis
Businesses and their operations are conducted in a secure and safe manner consistent
with all applicable local and state laws, rules and regulations governing the cultivation,
possession, manufacture, distribution, processing, storing, laboratory testing, labeling,
transportation, research and development, delivery, sale, or provision of Cannabis or
Cannabis Products for commercial purposes, whether for profit or not, including
Proposition 64, known as the "Control, Regulate and Tax Adult Use of Marijuana Act"
("AUMA") and Senate Bill 94 (Medicinal and Adult-Use Cannabis Regulation and Safety
Act, or "MAUCRSA");
WHEREAS, the City is estimated to incur certain costs associated with accepting,
processing, reviewing, investigating, and formally considering the merits of each
submittal for all the requisite permits, approvals, and entitlements, including applications
for an operator's permit, use permit, and other approvals associated with the operation
of each type of Cannabis Business pursuant to any and all ordinances containing the
rules, regulations and procedures duly adopted by the City Council and the Implementing
Regulations adopted by the Planning, Building and Transportation Department, the
successor to the Community Development Department for implementation of cannabis
business ordinances adopted by Council, and thereafter amended from time to time,
effective January 18, 2018; and
WHEREAS, a study was commissioned and has been completed to determine the
reasonable cost for issuing and regulating various cannabis permits; and
WHEREAS, the City Council desires to recover the costs that the City will incur
with accepting, processing, reviewing, investigating, and formally considering the merits
of each submittal by each Cannabis Business applicant for all the requisite permits,
approvals, and entitlements, including applications for an operator's permit, use permit,
and other approvals associated with the operation of each type of Cannabis Business
and in performing certain regulatory activities associated with the operation of each type
of Cannabis Business facility in a manner permitted by applicable law; accordingly, the
City Council mandated that the cost of cannabis business activities shall be borne solely
by cannabis businesses.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Alameda
as follows:
Section 1. FINDINGS.
(a) That the foregoing recitals are true and correct statements of fact and are
incorporated into this Resolution by this reference.
(b) That the regulatory fees adopted by this resolution pursuant to the City's
adopted cannabis business regulatory regime, as evidenced by the adoption of various
ordinances regulating Cannabis Business Activities in the city of Alameda, effective
January 18, 2018, as amended from time to time, are fair, reasonable and equal to, or
less than, the reasonable costs the City will incur with accepting, processing, reviewing,
investigating, and formally considering the merits of each submittal by each Cannabis
Business applicant for all the requisite permits, approvals, and entitlements, including
applications for an operator's permit, use permit, and other approvals associated with the
operation of each type of Cannabis Business and in performing certain regulatory
activities associated with the operation of each type of Cannabis Business facility in a
manner permitted by applicable law, as evidenced by the "Cannabis Business Operator
Permit and Regulatory Fee Study," dated October 2018," which forms the basis of the
City Council's findings.
Section 2. ADOPTION OF FEE; AMENDMENT OF MASTER FEE SCHEDULE.
(a) Based on the foregoing, that Master Fee Resolution No. 12191 as to fees
for services provided by City Departments are adjusted as set forth in Exhibit A, which is
attached hereto, and are to be included in the Master Fee Schedule, which shall be
imposed on any Cannabis Business applicant for the reasonable estimated costs the City
will incur with respect to accepting, processing, reviewing, investigating, and formally
considering the merits of each submittal for all the requisite permits, approvals, and
entitlements, including applications for an operator's permit, use permit, and other
approvals associated with the operation of each type of Cannabis Business pursuant to
any and all ordinances containing the rules, regulations and procedures duly adopted by
the City Council and the Implementing Regulations adopted by the Planning, Building and
Transportation Department. These fees may be adjusted annually by the Bay Area
Consumer Price Index (CPI).
(b) That the payment of any fees set forth in Exhibit A shall be due and
payable at the time of an application or request, including submittal of a proposal in
response to a RFP, is submitted to the City.
(c) That the City will not begin any review or investigation of any permits,
approvals, and entitlements, including applications for an operator's permit, use permit,
and other approvals associated with the operation of each type of Cannabis Business
until and unless the applicable fee has been paid in full.
(d) That the payment of any fees set forth in Exhibit A does not guarantee
approval of any permits, approvals, and entitlements, including applications for an
operator's permit, use permit, and other approvals associated with the operation of each
type of Cannabis Business.
(e) That the fees set forth in Exhibit A are solely for costs that will be incurred,
for activities described herein, and do not include any other fees due for, without
limitation, other permits, licenses, inspections, document preparation that may be
required by the City, including, building permits, environmental review, business
licensing, certificates of occupancy, or mandatory inspections (e.g., fire).
(f) That the fees set forth in Exhibit A shall be evaluated and updated from
time to time to ensure that they reflect the reasonable costs to administer the cannabis
regulatory regime, including without limitation, in the following instances: (i) when the
regulatory regime has been implemented for a period of time sufficient for the City to
have had an opportunity to review the actual costs incurred in administering the
program; (ii) if the ordinances, comprising the regulatory regime, have been substantially
amended such that the time and/or processes involved are substantially changed; or (iii)
at the expiration of 1 0 years, which is the period over which the Fee Study proposes
recovery of the implementation costs.
(g) That The City Manager and the Director of the Planning, Building, and
Transportation Department, their successors or designees, are authorized to implement
this Resolution.
(h) This Resolution is effective immediately upon its adoption.
*******
EXHIBIT A
SUMMARY OF PROPOSED CANNABIS BUSINESS OPERATOR APPLICATION AND PERMIT FEES
Fee Description Fee 1 Unit Figure
Cannabis Business Operator Permit LOI Review Fee $900 flat fee 3
Cannabis Business Operator Permit RFP Proposal Fee $4,400 flat fee 4
Cannabis Business Operator Permit RFP Decision Appeal Fee $6,600 deposit-based 5
Cannabis Business Operator Permit Application Fee $7,600 deposit-based 6
Cannabis Business Operator Perm it Renewal Fee $2,300 deposit-based 7
Notes:
1 Proposed fees are rounded down to the nearest hundred dollars.
SUMMARY OF CANNABIS BUSINESS REGULATORY PROGRAM FEES
Fee Description Fee 1 Unit Figure
Retail Dispensary $7,400 per perm it annually 9
Nusery Cultivation $4,500 per perm it annually 10
Testing Laboratory $4,500 per perm it annually 11
Manufacturing: Volatile $8,500 per perm it annually 12
Manufacturing: Non-Volatile $7,700 per perm it annually 13
Delivery-Only Dispensary $6,000 per perm it annually 14
Distribution (in conjunction V\ith Cultivation or Manufacturing only) $4,400 per perm it annually 15
Delivery (in conjunction V\ith Retail only) $3,700 per perm it annually 16
Notes:
1 Proposed fees are rounded down to the nearest hundred dollars.
CANNABIS BUSINESS OPERATOR PERMIT LOI REVIEW FEE
Department I Office
Base Reuse and Economic Development
and Planning and Building
Position
Calc
Director
Base Reuse and Economic Development
and Planning and Building
Economic Development Manager/
Planning Services Manager
Planning and Building
City Attorney's Office
Finance
Total Labor Costs
Planner II
Assistant City Attorney
Accounting Technician
Contracted Services, Supplies, and Other Expenses
Cost Recovery %:
Proposed Flat Fee per application 1
Notes:
1 Proposed fees are rounded do \Nil to the nearest hundred dollars.
Fully Burdened
Hourly Rate
a
$145
$106
$71
$121
$50
Billable Estimated
Hours Labor Costs
b a'b=c
0.50 $72.50
5.50 $583.00
1.50 $106.50
1.50 $181.50
0.25 $12.50
$956.00
$0.00
100%
$900.00
CANNABIS BUSINESS OPERATOR PERMIT RFP PROPOSAL REVIEW
Fully Burdened Billable Estimated
Department I Office Position Hourly Rate Hours Labor Costs
Calc a b a'b=c
Base Reuse and Economic Developmen~
and Planning and Building Director $145 1.00 $145.00
Base Reuse and Economic Development Economic Development Manager/
and Planning and Building Planning Services Manager $106 14.00 $1,484.00
City Attorney's Office Assistant City Attorney $121 2.00 $242.00
Finance Accounting Technician $50 1.00 $50.00
Selection Panel
Real Estate/Property Management Base Reuse and Economic Development $129 4.00 $516.00
Finance Financial Services Manager $123 4.00 $492.00
Recreation and Park Manager, Mastic Senior Center $150 4.00 $600.00
Planning Division Alameda ContracVPT Planner $111 4.00 $444.00
Public Works Public Works Director $102 4.00 $408.00
Total Labor Costs $4,381.00
Contracted Services, Supplies, and Other Expenses $100.00
Cost Recovery %: 100%
Proposed Flat Fee per application 1 $4,400.00
CANNABIS BUSINESS OPERATOR PERMIT RFP DECISION APPEAL FEE
Department I Office
Base Reuse and Economic Development,
and Planning and Building
Position
Calc
Director
Base Reuse and Economic Development,
and Planning and Building
Economic Development Manager/
Planning Services Manager
City Attorney's Office Assistant City Attorney
City Attorney's Office Paralegal
Contracted Services Hearing Officer
Total Labor Costs
Contracted Services, Supplies, and Other Expenses
Cost Recovery %:
Proposed Deposit-based Fee per application 1
Notes:
1Proposed fees are rounded do 'Nil to the nearest hundred dollars.
Fully Burdened
Hourly Rate
a
$145
$106
$121
$66
$300
BUSINESS OPERATOR PERMIT APPLICATION FEE
Department I Office
Base Reuse and Economic Development,
and Planning and Building
Base Reuse and Economic Development,
and Planning and Building
Police Department
Police Department
Police Department
City Attorney's Office
City Attorney's Office
Finance
Total Labor Costs
Position
Director
Economic Development Manager/
Planning Services Manager
Police Chief
Police Captain
Police Sergeant
Assistant City Attorney
Paralegal
Accounting Technician
Contracted Services, Supplies, and Other Expenses
Cost Recovery %:
Proposed Deposit-based Fee per application 1
Notes:
1Proposed fees are rounded do'M'l to the nearest hundred dollars.
Fully Burdened
Hourly Rate
Calc a
$145
$106
$223
$226
$166
$121
$66
$50
Billable Estimated
Hours Labor Costs
b a'b=c
1.00 $145.00
10.00 $1,060.00
15.00 $1,815.00
5.00 $330.00
10.00 $3,000.00
$6,350.00
$300.00
100%
$6,600.00
Billable Estimated
Hours Labor Costs
b a'b=c
2.00 $290.00
24.00 $2,544.00
1.00 $223.00
4.00 $904.00
10.00 $1,660.00
3.00 $363.00
1.00 $66.00
2.00 $100.00
$6,150.00
$1,500.00
100%
$7,600.00
CANNABIS BUSINESS OPERATOR PERMIT RENEWAL FEE
Billable Estimated
Department I Office Position
Fully Burdened
Hourly Rate Hours Labor Costs
Base Reuse and Economic Development,
and Planning and Building Director
Calc
Base Reuse and Economic Development,
and Planning and Building
Economic Development Manager/
Planning Services Manager
Police Department Police Chief
Police Department Police Captain
Police Department Police Sergeant
City Attorney's Office Assistant City Attorney
Finance Accounting Technician
Total Labor Costs
Contracted Services, Supplies, and Other Expenses
Cost Recovery %:
Proposed Fee per application 1
Notes:
1Proposed fees are rounded down to the nearest hundred dollars.
a b
$145 1.00
$106 4.00
$223 1.00
$226 2.00
$166 4.00
$121 2.00
$50 1.00
Allocation of Cannabis Business Development and Implementation Costs
Department I Office
Base Reuse and Economic Development,
and Planning and Building Departments
City Attorney's Office
City Clerk's Office
City Manager's Office
Finance Department
Police Department
Contracted Services, Supplies, and Other Expenses
Total Cost
Total Cost Recovery Per Year (10 Years)
Number of Permits
Annual Cost Recovery per Permit
Typical Cost Recovery per Inspection (based on 2 per
Notes:
1Proposed fees are rounded down to the nearest hundred dollars.
Total Cost
$73,421.00
$25,205.00
$630.00
$3,627.00
$1,772.00
$34,856.00
$82,900.00
$222,411.00
$22,241.10
11
$2,021.92
$1,011.00
a'b=c
$145.00
$424.00
$223.00
$452.00
$664.00
$242.00
$50.00
$2,200.00
$100.00
100%
$2,300.00
ANNUAL REGULATORY PROGRAM FEE: RETAIL
General Tasks/Activities
Fully Burdened Hourly Rate
Inspection, Monitoring, Compliance
Oversight and Reporting
Proportionallmplentation Costs
Total per Inspection
Notes:
Director
$145
0.00
2.00
2.00
Economic
Development
Manager/
Planning
Services
Manager
$106
0.00
3.00
3.00
Police
Sergeant
$166
0.00
1.00
1.00
Labor
Hours
0.00
6.00
6.00
Contract
Services,
Supplies
Labor and Other Total
Costs Expenses Cost
$0.00 $1,957.50 $1,957.50
$774.00 $0.00 $774.00
$1,011.00
$774.00 $1,957.50 $3,742.50
Cost Recovery %: 100%
Proposed Annual Inspections: 2
Proposed Annual Fee:11 $7,400 I per permit annually
Permits Allowed: 2 permits
Estimated Annual Cost Recovery to City: $14,800
1Proposed fees are rounded down to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: NURSERY CULTIVATION
General Tasks/Activities
Fully Burdened Hourly Rate
Inspection, Monitoring, Compliance
Oversight and Reporting
Proportionallmplentation Costs
Total per Inspection
Director
$145
0.00
0.75
0.75
Economic
Development
Manager/
Planning
Services
Manager
$106
0.00
1.50
1.50
Police
Sergeant
$166
0.00
1.00
1.00
Labor
Hours
0.00
3.25
3.25
Cost Recovery %:
Labor
Cost
$0.00
$433.75
$433.75
100%
Proposed Annual Inspections: 2
Contract
Services,
Supplies and
Other
Expenses
$806.00
$0.00
$806.00
Total Cost
$806.00
$433.75
$1 ,011.00
$2,250.75
Proposed Annual Fee: 1r-,-$-4-,5-00--,jper perm it annually
Permits Allowed: 1 permits
Estimated Annual Cost Recovery to City: $4,500
Notes:
1Proposed fees are rounded down to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: TESTING
Economic
Development Contract
Manager/ Services,
Planning Supplies and
Services Police Labor Labor Other Total
General Tasks/Activities Director Manager Sergeant Hours Costs Expenses Cost
Fully Burdened Hourly Rate $145 $106 $166
Inspection, Monitoring, Compliance 0.00 0.00 0.00 0.00 $0.00 $846.00 $846.00
Oversight and Reporting 0.75 1.50 1.00 3.25 $433.75 $0.00 $433.75
Proportionallmplentation Costs $1 ,011.00
Total per Inspection 0.75 1.50 1.00 3.25 $433.75 $846.00 $2,290.75
Cost Recovery%: 100%
Proposed Annual Inspections: 2
Proposed Annual Fee: 11,... -$-4-,5-0-0 ~~per perm it annually
Permits Allowed: 2 permits
Estimated Annual Cost Recovery to City: $9,000
Notes:
1Proposed fees are rounded down to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: MANUFACTURING-VOLATILE
Economic
Development Contract
Manager/ Services,
Planning Supplies and
Services Police Labor Labor Other Total
General Tasks/Activities Director Manager Sergeant Hours Costs Expenses Cost
Fully Burdened Hourly Rate $145 $106 $166
Inspection, Monitoring, Compliance 0.00 0.00 0.00 0.00 $0.00 $2,492.00 $2,492.00
Oversight and Reporting 2.00 3.00 1.00 6.00 $774.00 $0.00 $774.00
Proportionallmplentation Costs $1,011.00
Total per Inspection 2.00 3.00 1.00 6.00 $774.00 $2,492.00 $4,277.00
Cost Recovery%: 100%
Proposed Annuallnspections:.-----,2
Proposed Annual Fee: 1j $8,500 jper perm it annually
Permits Allowed: 2 perm its
Estimated Annual Cost Recovery to City: $17,000
Notes:
1Proposed fees are rounded down to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: MANUFACTURING-NON-VOLATILE
General Tasks/Activities
Fully Burdened Hourly Rate
Inspection, Monitoring, Compliance
Oversight and Reporting
Proportional 1m pi entation Costs
Total per Inspection
Director
$145
0.00
2.00
2.00
Economic
Development
Manager/
Planning
Services Police Labor
Manager Sergeant Hours
$106 $166
0.00 0.00 0.00
3.00 1.00 6.00
3.00 1.00 6.00
Cost Recovery %:
Proposed Annual Inspections:
Contract
Services,
Supplies and
Labor Other
Costs Expenses
$0.00 $2,092.00
$774.00 $0.00
$774.00 $2,092.00
100%
2
Total
Cost
$2,092.00
$774.00
$1 ,011.00
$3,877.00
Proposed Annual Fee: 11 $7,700 I per permit annually
Permits Allowed: 2 permits
Estimated Annual Cost Recovery to City: $15,400
Notes:
1Proposed fees are rounded down to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: DELIVERY-ONLY DISPENSARY
Economic
Development Contract
Manager/ Services,
Planning Supplies
Services Police Labor Labor and Other Total
General Tasks/Activities Director Manager Sergeant Hours Costs Expenses Cost
Fully Burdened Hourly Rate $145 $106 $166
Inspection, Monitoring, Compliance 0.00 0.00 0.00 0.00 $0.00 $1,494.50 $1,494.50
Oversight and Reporting 1.00 2.00 1.00 4.00 $523.00 $0.00 $523.00
Proportionallmplentation Costs $1,011.00
Total per Inspection 1.00 2.00 1.00 4.00 $523.00 $1,494.50 $3,028.50
Cost Recovery %: 100%
Proposed Annual Inspections: 2
Proposed Annual Fee: 1
,..1 -$-6-,0-00---,lper permit annually
Permits Allowed: 2 permits
Estimated Annual Cost Recovery to City: $12,000
Notes:
'Proposed fees are rounded doWl to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: DISTRIBUTION
General Tasks/Activities
Fully Burdened Hourly Rate
Inspection, Monitoring, Compliance
Oversight and Reporting
Proportionallmplentation Costs
Total per Inspection
Notes:
Director
$145
0.00
0.25
0.25
Economic
Development
Manager/
Planning
Services
Manager
$106
0.00
1.00
1.00
Police
Sergeant
$166
0.00
1.00
1.00
Labor
Hours
0.00
2.25
2.25
Contract
Services,
Supplies
Labor and Other
Costs Expenses
$0.00 $903.00
$308.25 $0.00
Total
Cost
$903.00
$308.25
$1,011.00
$308.25 $903.00 $2,222.25
Cost Recovery %: 1 00%
Proposed Annual Inspections: 2
Proposed Annual Fee:1j $4,400 jper permit annually
Permits Allowed: 4 permits
Estimated Annual Cost Recovery to City: $17,600
'Proposed fees are rounded do'Ml to the nearest hundred dollars.
ANNUAL REGULATORY PROGRAM FEE: DELIVERY {W/RETAIL ONLY)
General Tasks/Activities
Fully Burdened Hourly Rate
Inspection, Monitoring, Compliance
Oversight and Reporting
Proportionallmplentation Costs
Total per Inspection
Notes:
Director
$145
0.00
0.25
0.25
Economic
Development
Manager/
Planning
Services
Manager
$106
0.00
3.00
3.00
Police
Sergeant
$166
0.00
1.00
1.00
Labor
Hours
0.00
4.25
4.25
Cost Recovery %:
Contract
Services,
Supplies
Labor and Other
Costs Expenses
$0.00 $351.50
$520.25 $0.00
Total
Cost
$351.50
$520.25
$1,011.00
$520.25 $351.50 $1,882.75
100%
Proposed Annuallnspections:...--__ ...,2
Proposed Annual Fee: 11 $3,700 I per permit annually
Permits Allowed: 2 permits
Estimated Annual Cost Recovery to City: $7,400
'Proposed fees are rounded do'Ml to the nearest hundred dollars.
I, the undersigned, hereby certify that the foregoing Resolution was duly and
regularly adopted and passed by the Council of the City of Alameda in a regular
meeting assembled on 16th day of October, 2018 by the following vote to wit:
A YES: Councilmembers Ezzy Ashcraft, Matarrese, Oddie, Vella
and Mayor Spencer-5.
NOES: None.
ABSENT: None.
ABSTENTIONS: None.
IN WITNESS, WHEREOF, I have hereunto set my hand and affixed the official
seal of said City this 17th day of October, 2018.
Approved as to form:
City of Alameda
Lara Weisiger, City
City of Alameda