HomeMy WebLinkAbout1DCITY COUNCIL STAFF REPORT
DATE: February 10, 2022 CONSENT CALENDAR
SUBJECT: ADOPTION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF PALM SPRINGS TO ENTER INTO AN AGREEMENT WITH THE
GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING FOR THE
FISCAL YEAR 21/22
FROM: Justin Clifton, City Manager
BY: Veronica Goedhart, Director Department of Special Program Compliance
SUMMARY:
Staff seeks authorization to enter into an agreement for grant funding in the amount of
$1,303,588 through the Governor’s Office of Business and Economic Development (GO-
BIZ) for State Cannabis Equity Grant funding for the fiscal year 21/22. Staff recommends
the City adopt the Resolution authorizing the City Manager to execute the agreement for
grant funds authorized by The California Cannabis Equity Act of 2018 established by
Senate Bill 1294 and as amended by Assembly Bill 97.
RECOMMENDATION:
1.Adopt Resolution No. _____, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF PALM SPRINGS, CALIFORNIA, TO ENTER INTO AN AGREEMENT
WITH THE GOVERNOR’S OFFICE OF BUSINESS AND ECONOMIC
DEVELOPMENT FOR CANNABIS EQUITY GRANT FUNDING FOR THE FISCAL
YEAR 21/22.”
2.Authorize the City Manager to execute all documents consistent with this
Resolution.
BACKGROUND:
On March 20, 2019, City Council adopted a Resolution authorizing the implementation of
the Cannabis Social Equity Program (“Program”). The Program as proposed was
contingent on funding by the Cannabis Equity Act of 2018 (“Act”). On October 9, 2019,
the City was notified of their approval for grant funding in the amount of $100,000. The
grant funds received from the Bureau of Cannabis Control are for the purpose of assisting
Item 1D - 1
City Council Staff Report
February 10, 2022 -- Page 2
Social Equity Grant Funding
local equity applicants and local equity licensees to gain entry to and successfully operate
in the State’s regulated cannabis marketplace. On April 15, 2020, the City was notified of
their approval for grant funding in the amount of $149,397. The grant funds received from
the Governor’s Office of Business and Economic Development are for further
development of the City’s cannabis equity program and to complete a cannabis equity
assessment. In February 2021, the City received a grant award of $869,540.18 to provide
direct assistance to qualified equity permittees and applicants.
On October 1, 2021, the Governor’s Office of Business and Economic Development
announced the release of the Grant Solicitation for the Cannabis Equity Grants Program
for local jurisdictions for the fiscal year 2021-22. The City applied for and received an
award of $1,303,588. Funds may be utilized to provide assistance with startup and
ongoing costs, including but not limited to rent, leases, local and state application and
licensing fees, regulatory adherence, testing of cannabis, equipment, capital
improvements, and training and retention of a qualified and diverse workforce.
More information about the Cannabis Equity Grant may be found at:
https://business.ca.gov/cannabis-equity-grants-program-for-local-jurisdictions/
STAFF ANALYSIS:
Palm Springs has been on the forefront of cannabis legalization. The City will utilize grant
funds to provide assistance to communities that have been disproportionately impacted
by cannabis prohibition. The goal of the program is to ensure inclusion of members of
these communities in the legal cannabis industry. To date, the City has approved two
social equity applicants; one has completed the local and state permitting process and is
operating. There have been numerous inquiries regarding additional equity assistance.
The ability to provide financial assistance to permittees creates a greater opportunity for
success in the legalized cannabis marketplace.
ENVIRONMENTAL IMPACT:
The requested City Council action is not a “Project” as defined by the California
Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the
whole of an action, which has a potential for resulting in either a direct physical change in
the environment, or a reasonably foreseeable indirect physical change in the environment.
According to Section 15378(b), a Project does not include: (5) Organizational or
administrative activities of governments that will not result in direct or indirect physical
changes in the environment.
FISCAL IMPACT:
The City’s Social Equity Program is solely funded by the grant funds from the State of
California. There is no required City match.
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City Council Staff Report
February 10, 2022 -- Page 3
Social Equity Grant Funding
REVIEWED BY:
Department Director: Veronica Goedhart
Assistant City Manager: Teresa Gallavan
City Manager: Justin Clifton
ATTACHMENTS:
A.Proposed Resolution.
Item 1D - 3
RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
PALM SPRINGS, CALIFORNIA, AUTHORIZING STATE OF
CALIFORNIA CANNABIS EQUITY GRANT FUNDING
THE CITY COUNCIL OF THE CITY OF PALM SPRINGS DOES HEREBY
RESOLVE AS FOLLOWS:
WHEREAS, the members of the California Legislature have recognized the need
for Cannabis Equity grant funding;
WHEREAS, funding has been provided to the Governor’s Office of Business
and Economic Development to provide grant funds to local governments;
WHEREAS, the City of Palm Springs has adopted and operates a local equity
program for commercial cannabis activity; and
WHEREAS, the City of Palm Springs has determined that it will use grant funds
from the Governor’s Office of Business and Economic Development to assist local
equity applicants and licensees through its local equity program for commercial
cannabis activity as described in its application for grant funds.
SECTION 1. NOW, THEREFORE, BE IT RESOLVED that Justin Clifton, City
Manager of the City of Palm Springs, is authorized to execute by electronic signature
on behalf of the City of Palm Springs the grant agreement with the Governor’s Office of
Business and Economic Development, including any extensions or amendments
thereof and any subsequent grant agreement with the Governor’s Office of Business
and Economic Development in relation thereto.
SECTION 2. IT IS AGREED that any liability arising out of the performance of
this grant agreement, including civil court actions for damages, shall be the
responsibility of the grant recipient and the authorizing agency. The Governor’s Office
of Business and Economic Development and the State of California disclaim
responsibility for any such liability.
ADOPTED THIS ___TH DAY OF FEBRUARY, 2022.
JUSTIN CLIFTON
CITY MANAGER
ATTEST:
ANTHONY J. MEJIA, MMC
CITY CLERK
Item 1D - 4
Resolution No. _____
Page 2
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE ) ss.
CITY OF PALM SPRINGS )
I, ANTHONY J. MEJIA, City Clerk of the City of Palm Springs, hereby certify that
Resolution No. ____ is a full, true and correct copy, and was duly adopted at a regular
meeting of the City Council of the City of Palm Springs on _______________________,
by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of Palm Springs, California, this ______ day of ______________, _________.
ANTHONY J. MEJIA, MMC
CITY CLERK
Item 1D - 5