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HomeMy WebLinkAboutItem 09 - Second Reading Ordinance Amending the Cannabis Public Benefit Fund Finance and Management Services www.santa-ana.org/finance Item # 10 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report September 7, 2021 TOPIC: Second Reading Ordinance Amending the Cannabis Public Benefit Fund AGENDA TITLE: Second Reading and Adoption of Ordinance Amending the Cannabis Public Benefit Fund Restricted Uses for Additional Youth Services RECOMMENDED ACTION Place Ordinance on second reading and adopt. DISCUSSION On July 20, 2021, the City Council introduced the attached Ordinance amending Article XX of Chapter 13 of the Santa Ana Municipal Code to authorize discretionary allocations between youth services and enforcement services from the Cannabis Fund (Exhibit 1). The July 20 staff report included summary spending information for the Cannabis Public Benefit Fund. However, the City Council requested staff return with detailed spending information. The detailed spending plan for the FY21-22 budget follows, and detailed actual spending to date for FY19-20 and FY20-21 is attached (Exhibit 2). Department Spending Description FY21-22 Budget Parks & Recreation 3 full-time Recreation Leaders and 10 part-time Program Coordinators to provide recreation programs. 2 full-time Zoo Education Specialists for zoo programs + Support equipment, training & overhead $1,074,660 71,610 Parks & Recreation Zoo Exhibit 250,000 Parks & Recreation Contracted aquatics program operator 169,500 Parks & Recreation Anti-drug program 60,000 Parks & Recreation “Zoo and You” program 50,000 Parks & Recreation Teen excursions 43,200 Parks & Recreation Program Supplies for “Zoo and You” and Teen Excursion programs. 93,200 Second Reading Ordinance Amending the Cannabis Public Benefit Fund September 7, 2021 Page 2 1 9 7 1 Parks & Recreation Splash pads, Thornton Park Lighting, Santa Anita Parking Lot and Playground 5,343,520 Parks & Recreation Summer Youth Internship Program at WORK Center 382,000 Parks & Recreation DACA Support 100,000 Library Library PT Staff: 3 Library Assistants; 8 Tutors, 1 Library Clerk and 1 Page 228,010 Library Wi-Fi Hot Spot service 137,400 Library Digital content 70,000 Library Contracted youth services 37,000 Library Bookmobile/Mobile Outreach Vehicle 100,000 Library Materials and supplies, including books and technology 139,600 Library Additional improvements at Newhope Library 1,287,990 Total Youth Spending Appropriation $9,637,690 Department Spending Description FY21-22 Budget City Attorney’s Office 1 Assistant City Attorney + Support overhead $189,080 15,560 City Attorney’s Office Contract legal services 300,000 City Attorney’s Office IT overhead allocation to be corrected (reduced) at mid-year. 214,300 Planning & Building 1 Code Enforcement Supervisor 6 Code Enforcement Officers 1 Senior Office Assistant + Support equipment, training & overhead 808,120 99,150 Planning & Building Contract services for board-ups & security 71,700 Police Department 6 Police Officers + Support equipment/vehicles/training/overhead 1,399,930 208,580 Finance 85% of 1 Business License Inspector/Collector + Support overhead 95,230 9,180 Finance Contract Services for audit 255,550 Total Enforcement Spending Appropriation $3,666,380 ENVIRONMENTAL IMPACT There is no environmental impact associated with this action. FISCAL IMPACT There is no fiscal impact at this time. Any fiscal impact will come from future City Council action to amend the current year budget or adopt the budget in future years. Second Reading Ordinance Amending the Cannabis Public Benefit Fund September 7, 2021 Page 3 1 9 7 1 EXHIBIT(S) 1. Ordinance No. NS-XXX, an Ordinance of the City of Santa Ana, California, amending Article XX of Chapter 13 of the Santa Ana Municipal Code to authorize discretionary allocations between youth services and enforcement services from the Cannabis Fund 2. Actual Cannabis Public Benefit Fund spending to date for FY19-20 and FY20-21 Submitted By: Kathryn Downs, FMSA Executive Director Approved By: Kristine Ridge, City Manager Ordinance No. NS-XXX Page 1 of 2 ORDINANCE NO. NS-XXX AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA ANA , CALIFORNIA, AMENDING ARTICLE XX OF CHAPTER 13 OF THE SANTA ANA MUNICIPAL CODE TO AUTHORIZE DISCRETIONARY ALLOCATIONS BETWEEN YOUTH SERVICES AND ENFORCEMENT SERVICES FROM THE CANNABIS FUND THE CITY COUNCIL OF THE CITY OF SANTA ANA DOES HEREBY ORDAIN AS FOLLOWS: Section 1. Section 13-203 of Article XX of Chapter 13 of the Santa Ana Municipal Code is hereby amended to read as follows: Sec. 13-203. - Cannabis Revenue Funding. A.Automatic Deposit of Cannabis Tax Revenues into the Cannabis Fund. The Cannabis Fund shall be funded by an automatic deposit of two- thirds (2/3) of all cannabis tax revenues generated each year, commencing with the Fiscal Year Budget for 2019-2020 and continuing thereafter in the budget for each Fiscal Year, from all of the following: 1) Operating Agreements for Commercial Cannabis businesses and 2) Any newly adopted Cannabis Business License Tax. For purposes of this subsection, in addition to the descriptions provided directly above in this paragraph, the phrase “cannabis tax revenues” means all revenues generated from any new or increased cannabis tax which has been approved by the voters of the City on or after the effective date of this Chapter and any increase of the cannabis tax authorized by the Santa Ana Municipal Code and approved by the City Council. Tax revenue from Medicinal/Medical Cannabis shall not go into the Cannabis Fund. Funds in the Cannabis Fund shall be carried over from year-to-year. B. Discretionary Deposits into Cannabis Fund not Prohibited. Nothing in this Chapter shall prohibit the City Council, as part of the budgeting process, from contributing additional revenues to the Cannabis Fund, as determined in the City Council’s sound legislative discretion. C. Expenditures from the Cannabis Fund. Funds in the Cannabis Fund shall be restricted to 1) Youth Services: expenditures for new, additional or enhanced, as of the date the Cannabis Fund is created, for Youth Services for City of Santa Ana residents and 2) Enforcement Services: expenditures for Enforcement Services to enforce cannabis regulations and other nuisance laws to improve the quality of life of residents. Specific allocations for Youth Services and Enforcement Services shall be made at the sole discretion of the City Council. EXHIBIT 1 Ordinance No. NS-XXX Page 2 of 2 2 Section 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Santa Ana hereby declares that it would have adopted this ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses, phrases, or portions be declared invalid or unconstitutional. ADOPTED this _______ day of ___________, 2021. _________________________ Mayor APPROVED AS TO FORM __//Sonia R. Carvalho//__ SONIA R. CARVALHO City Attorney AYES: Councilmembers: _________________________________ NOES: Councilmembers: _________________________________ ABSTAIN: Councilmembers: _________________________________ NOT PRESENT: Councilmembers: _________________________________ CERTIFICATE OF ATTESTATION AND ORIGINALITY I, DAISY GOMEZ, Clerk of the Council, do hereby attest to and certify that the attached Ordinance No. NS-XXX to be the original ordinance adopted by the City Council of the City of Santa Ana on ______________, 2021, and that said ordinance was published in accordance with the Charter of the City of Santa Ana. Date: ______________________ ________________________________ Clerk of the Council City of Santa Ana CANNABIS PUBLIC BENEFIT FUND EXHIBIT 2 Actual Spending to Date Employee Supplies Overhead Capital FY19‐20 Compensation Contracts & Equipment & Support Improvements Totals Parks & Recreation Youth 197 4,145          4,341             City Manager's Office Enforcement 848 2,088            2,935             City Attorney's Office Enforcement 263,109                39,599         302,707         Finance Enforcement 100,567                100,567         Code Enforcement Enforcement 144,432                2,286 18,912         165,629         Police Department Enforcement 1,133,444             53,100        6,561 61,927         1,255,031     Totals 1,642,596$           57,244$      8,847$                122,525$     ‐$ 1,831,212$   Employee Supplies Overhead Capital FY20‐21 YTD JULY (1)Compensation Contracts & Equipment & Support Improvements Totals Parks & Recreation Youth 116,696                435,113      113,053       213,803                 878,664         Library Youth 19,763 269,471      27,608                471,663       57,773 846,276         City Attorney's Office Enforcement 401,389                29,947        27,270         458,605         Finance Enforcement 89,590 89,590           Code Enforcement Enforcement 172,617                34,954        38,578                20,215         266,364         Police Department Enforcement 1,281,069             51,509        16,744                8,948            1,358,271     Totals 2,081,123$           820,993$    82,930$             641,149$     271,575$              3,897,770$   (1)Staff will continue to pay FY20‐21 invoices through the end of August, and final audited expenditures for FY20‐21 will increase.