Memorandum
Date: April 27, 2021
To: The Honorable Bruno Sabatier, Chair, Lake County Board of Supervisors
From: Carol J. Huchingson, County Administrative Officer
Subject: a) Consideration of Resolution Adopting Cannabis Equity Assessment and Adopting the Local Equity Program and Program Manual Pursuant To the California Cannabis Equity Act Of 2018; and b) Consideration of motion to direct County Administrative Officer to sign Grant Agreement designated as Exhibit A
Executive Summary: (include fiscal and staffing impact narrative):
On March 15, 2021, the Governor’s Office of Business and Economic Development (GO-Biz) announced its intent to award $888,173.18 Type II Funding grant, with $844,138.18 available for program use, to Lake County to implement a Cannabis Local Equity Program. In order to complete, the grant agreement Go-Biz requires a slightly modified version of the resolution previously adopted by your Board.
Once this funding is made available, the County will be able to implement selected portions of the Local Equity Plan. The overall amount of funding made available by the State for these programs was approximately 50% less than last year, so given the size of the award and the grant requirements the authorized budget is allocated as follows:
Assistance with application, licensing and regulatory fees: $644,539.33
Fixtures and Equipment: $100,000.00
Capital Improvements: $100,000.00
While the broader criteria discussed in the adopted Local Equity Program (LEP) manual must be followed, there is some discretion regarding how to proceed, especially given the limited funds. The primary concern identified through the Equity Assessment process at this time is assisting applicants through the CEQA and permitting processes. With this funding allocation, targeting equity applicants that are awaiting a CEQA review process would be the highest priority. These funds can be distributed in the form of direct grants to applicants, and under this scenario the focus would be on providing funding that could be utilized to secure a 3rd party environmental review.
The County has allocated $100,000.00 in matching funds for FY 2021-2022, per your Board’s previous direction, to the Equity Program contingent upon the award of State funding. Given the timeframes involved, while these funds do have more discretion in their use than the State awarded dollars, staff recommends utilizing them within the existing grant allocations. In the alternative, other programs authorized in the LEP manual could be considered for development with these funds.
As future allocations permit, the LEP should be able to potentially expand to cover more authorized activities within the sphere of direct aid and technical assistance. The next expected opportunity for the County to apply for additional funding will be in January 2022.
The authorizing resolution is attached for your consideration.
If not budgeted, fill in the blanks below only:
Estimated Cost: ________ Amount Budgeted: ________ Additional Requested: ________ Future Annual Cost: ________
Consistency with Vision 2028 and/or Fiscal Crisis Management Plan (check all that apply): ☐ Not applicable
☐ Well-being of Residents ☐ Public Safety ☐ Infrastructure ☐ Technology Upgrades
☒ Economic Development ☐ Disaster Recovery ☐ County Workforce ☐ Revenue Generation
☒ Community Collaboration ☒ Business Process Efficiency ☐ Clear Lake ☐ Cost Savings
If request for exemption from competitive bid in accordance with County Code Chapter 2 Sec. 2-38, fill in blanks below:
Which exemption is being requested?
How long has Agreement been in place?
When was purchase last rebid?
Reason for request to waive bid?
Recommended Action: Approve Adopting Cannabis Equity Assessment and Adopting the Local Equity Program and Program Manual Pursuant To the California Cannabis Equity Act Of 2018 and provide direction to staff