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Zoning Ordinance Amendment No. 2026-01 and Fee Resolution (Smoke Shop Ordinance <br /> and Inspection Fee Resolution) <br /> March 3, 2026 <br /> Page 9 <br /> FISCAL IMPACT <br /> The proposed smoke shop ordinance is expected to generate revenue that offsets any <br /> administrative costs. Existing mandatory fees for CUP applications will recover the <br /> administrative cost to process applications. <br /> In addition, adoption and implementation of the ordinance requires the establishment of <br /> new fees to allow the City to recover expenses incurred for staff time spent preparing for, <br /> conducting, and reporting on inspections. City departments required to administer the <br /> inspections include the Planning and Building Agency and the Police Department. <br /> The proposed ordinance has a net neutral fiscal impact, as the passage of the ordinance <br /> would generate fiscal impacts to the City in the form of additional expenditures offset by <br /> new revenues. A new smoke shop CUP application would generate a base cost of <br /> $13,691. Application fees include those for processing a Conditional Use Permit, <br /> Development Project Review, and an Environmental Review. In 2026, staff estimates <br /> conducting 38 inspections for existing smoke shops operating with permits and <br /> Certificates of Occupancy, resulting in approximately $47,000 in total inspection fees. <br /> EXHIBITS <br /> 1. Ordinance <br /> 2. Fee Resolution <br /> 3. February 9, 2026 Planning Commission Staff Report and Exhibits <br /> 4. Copy of Public Hearing Notice <br /> Submitted By: Ali Pezeshkpour, AICP, Executive Director, Planning and Building <br /> Agency <br /> Approved By: Alvaro Nunez, City Manager <br /> City Council 21 — 9 3/3/2026 <br />