Board Of Supervisors — Thursday, March 15, 2018

Clerk’s notes: County Administrative Officer Carol Huchingson introduced the item to the Board. Community Development Director Bob Massarelli reported on the number of permits that were issued to date. Total Self Certifications received - a total of 41 applications, 25 are in compliance, 4 are undergoing site visits this week, 3 new applications. 9 have non- compliance issues which the applicants are working on. State level - email from state, 29 received. 22 medium outdoor, split between medical and outdoor grows. County Counsel Deputy Shanda Harry was present and reported on the emails from the state. 3 temporary licenses have been issued for Lake County. Management from Cal Cannabis are reviewing Lake County applications. County Counsel Anita Grant spoke regarding land use and Article 72. Finance Subcommittee Report : CAO Carol Huchingson, Chief Deputy Jeff Rein and Auditor Cathy Saderlund, Deputy Stephen Carter Jr. and gave a PowerPoint presentation. 4 meetings with a total of 40 hours. Projections from CDD. Consulted with DH with need for staffing. Mark Lovelace through HDL. Topics: Analysis of Tax measure C and impact, need for data and create a registry process, existing fee structure and the need for new fees, staffing, cash management, work flow. Definitive: Permit fee revenues-66 have a water board permit. CDD advises there is a backlog at the state, additional permits may increase. Cannot estimate revenue cannabis cultivation tax. driven by size of grows. $1 Outdoor, $2 Mixed light, $3 indoor cultivation. Obtain Data needs through a pre application process with CDD. Scheduled by appt only for the 66 permits. Revenue generations - Auditor Cathy Saderlund - permits cover the cost of doing business. Gravy would be the tax. Larger counties revenue - estimated issue of 263 interim permits and 100 regular type permits. Total bill - 1.2 billion , 5.7 million. 4.5 million would be interim. Smaller county that started in July - est. 1.7 million, $700,000 to date. CAO - Budget would be based on fees. Cultivation fees should be looked at again? Taxes -pre application data complied to come up with final numbers. Start up budget - CDD =Pre app fee $190, Minor Use permit fee $161, Major Use permit, 2721. CEQA $1425, compliance 760, Other departments - no additional fees necessary at this time. Total estimate: application revenues 17/18 -$275,000, compliance monitoring revenue 18/19 - $52,000. Start up staffing 8 full time positions needed by May 2018. CDD 5 staff, Treasurer 1 staff, Sheriff 1 staff and Ag 1 staff. $548,000 to cover this staffing. Three trucks will be needed for operations, consultant services will be required. $163,000 this year and $153,000 next year. Summary Budget - permit revenues $274,398 for 17/18. $51,680 for 18/19 with a deficit balance of -$618,326 by the end of that fiscal year. New budget and fund numbers for this purpose. Geo thermal similar, used to account for revenues and expenses. Staffing would be allocated for this fund. Oversight of the Admin office. Development agreements? Pay fees upfront. Provisions of Urgency Ordinance reported by County Counsel Anita Grant. Recommends a resolution to establish a timeline for the license and permit. Public Input: Eric Skalar, Mike Mitzel, Lina, Bob Skala, Noah Cornell, Chris Jennings, Bobby Dutcher, Michael Green, Richard Knoll, Bridgett King Meeting went into Recess Meeting Reconvened