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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 />5 <br />5 <br />8 <br />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 /> <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 Nuñez, City Manager