REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Al Zelinka, City Manager
VIA: Jennifer Villasenor, Acting Director of Community Development
PREPARED BY: Hayden Beckman, Senior Planner
Subject:
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Adopt Resolution No. 2023-39 authorizing the acceptance of $325,000 in grant funds from the California Department of Cannabis Control (DCC) to assist in the development of a cannabis retail access program.
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Statement of Issue:
The Huntington Beach Community Development Department applied for and received a $325,000 DCC Retail Access Grant award to help fund the continued development of a cannabis retail access program, including land use controls and administrative regulations. A resolution adopted by the City Council is required to accept and receive the grant award.
Financial Impact:
A new grant fund will be established, and the $325,000 grant award will be appropriated upon approval by the City Council.
Recommended Action:
recommendation
A) Adopt Resolution No. 2023-39, “A Resolution of the City Council of the City of Huntington Beach Authorizing the Acceptance of Funds from the Department of Cannabis Control (DCC) from the Cannabis Local Jurisdiction Retail Access Grant” and appropriate the $325,000 grant award; and
B) Assign authority to the Community Development Director as the official to execute and sign for the award and to approve amendments and extensions as needed; and
C) Formally dissolve the City Council Cannabis Ad-Hoc Committee.
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Alternative Action(s):
Do not approve and direct staff accordingly.
Analysis:
City staff and Councilmembers have been developing a potential cannabis license program for both retail and non-retail cannabis activities since December 2021. More recently, Huntington Beach voters approved Measure O in the November 2022 General Election, thereby enabling the City Council to establish a general excise tax on future cannabis businesses, providing the base infrastructure for a local cannabis retail license program.
On April 11, 2023, the Council’s Cannabis Subcommittee met with staff and discussed the status of the City’s efforts to date regarding the development of draft land use controls for potential cannabis retail and non-retail uses. The Subcommittee identified the subject DCC grant as a priority effort for staff, and subsequently the application was prepared and submitted for review by the DCC. On June 20, 2023, staff was notified that the City of Huntington Beach has been tentatively awarded grant funds in the amount of $325,000 to assist the effort of creating a local cannabis retail license program.
Pursuant to the grant guidelines, expenses to develop and implement a cannabis retailer licensing program, including salary and benefits for staff directly involved, software costs, stakeholder outreach or community engagement expenses, and technical support for applicants and licensees are eligible costs. In the event that a future cannabis ordinance is not adopted, grant guidelines require that any remaining funds be returned to the Department of Cannabis Control in a timely manner. Reimbursement of all funds expended is not a requirement of the funding agreement.
Upon adoption of the Resolution to accept the grant award funds, staff intends to return to the full Council for consultation in a Study Session to discuss next steps. As such, staff is recommending the Council subcommittee be dissolved, and staff work directly with the full Council on cannabis policy as needed moving forward. Staff will create a work plan to develop land use controls and administrative regulations, community/stakeholder outreach and a critical path timeline to place the decision to permit cannabis activities on a future ballot.
Environmental Status:
Pursuant to CEQA Guidelines Section 15378(b)(5), administrative activities of governments that will not result in direct or indirect physical changes in the environment do not constitute a project.
Strategic Plan Goal:
Non Applicable - Administrative Item
Attachment(s):
1. Resolution No. 2023-39
2. Grant award letter received and dated June 20, 2023