To: Board of Supervisors
From: Planning and Building Department
Agenda Section: Departmental
Vote Requirement: Majority
SUBJECT:
title
Resolution to Withdraw and Resign from the County of Humboldt (County) from the California Cannabis Authority (CCA) Joint Exercise of Powers Agreement (Agreement)
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RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Discuss withdrawal and resignation of the County from the California Cannabis Authority Joint Exercise of Powers Agreement; and
2. Adopt the attached Resolution; and
3. Direct the Clerk of the Board to provide a copy of this action to the Director of Planning and Building, to include a copy of signed resolution; and
4. Authorize the Director of Planning and Building to sign the letter to withdraw and resign and send to the CCA via USPS mail and email.
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STRATEGIC PLAN:
This action supports the following areas of your Board’s Strategic Plan.
Area of Focus: Core Services/Other
Strategic Plan Category: 9999 - Core Services/Other
DISCUSSION:
Executive Summary:
The Board of Supervisors is being asked to discontinue participation in the California Cannabis Authority, as there is a cost in participation, but there is not benefit in participation. The purpose of the organization is to develop and manage a statewide data platform that gathers, collects, and analyzes information from a myriad of data sources into one resource, to help local governments ensure cannabis regulatory compliance and provide necessary information to financial institutions that wish to work with the cannabis industry. The struggle is the CCA does not provide meaningful information to either the Treasurer-Tax Collector or to the Planning and Building Department. The annual membership fee is $28,000 which has been coming out of the Planning and Building Department Budget. The department seeks to end the membership and is providing a resolution to withdraw the county from the agreement (Attachment 1).
Background:
The California Cannabis Authority (CCA) is a Joint Powers Authority created by agreement between counties and sponsored by the California State Association of Counties. On March 13, 2018, your Board adopted Resolution 18-19 (Attachment 2) which approved, authorized, and directed the execution of a Joint Powers Authority agreement for the county’s membership and participation in the CCA. As part of the membership, the county has a designated official to serve on the CCA Board of Directors. Originally, former Supervisor Estelle Fennell was appointed to that role, then on Jan. 12, 2021, Supervisor Madrone was appointed. Most recently, on Feb. 8, 2022, your Board appointed Supervisor Bohn as the county’s designated official to the CCA, a role he still holds. Supervisor Bohn is presently listed on the CCA website as the CCA Secretary. Since executing the agreement and becoming a member of the CCA, designated officials, such as Supervisor Bohn have regularly attended and participated in the CCA meetings, joined at times by the county’s Treasurer-Tax Collector.
The CCA is an organization that relies on membership fees to fund its operations. Pursuant to the terms of the agreement (Attachment 3) each member agrees to pay such charges and fees as established by the CCA Board of Directors. Currently the base CCA Membership Fee is $7,000 per quarter. Originally, Per Board Resolution 18-19 (Attachment 2), “those membership fees paid to the CCA shall be paid from the General Fund, until such time as the Board of Supervisors modifies, changes, or otherwise amends the funding structure utilized to pay the membership fees”.
Pursuant to Article II, Section 6 of the agreement (Attachment 4), in order for a member to resign or be removed from the agreement, an instrument to that effect must be submitted to the Secretary of the CCA. In communications between department staff and the CCA Executive Director Greg Turner, staff confirmed that a signed resolution from your Board would meet that requirement. A letter of notification of withdrawal and resignation has been drafted (Attachment 5), and should be sent via USPS mail and electronically via email.
SOURCE OF FUNDING:
Currently funded by General Fund allocation to Current Planning, 1100277.
FINANCIAL IMPACT:
Cost savings of approximately $28,000 each fiscal year in membership fees, which does not include staff time for participation in CCA activities and processing of invoice payments.
OTHER AGENCY INVOLVEMENT:
County Administrative Office
Board of Supervisors
Treasurer-Tax Collector
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Your Board could choose not to approve staff recommendation and remain in the agreement and continue to have the department to pay the CCA membership fees. However, this is not recommended considering the cost savings that would result in resigning from the agreement.
Alternatively, Your Board could remain in the agreement and designate a funding source other than the Current Planning budget unit.
ATTACHMENTS:
1. Resolution of Resignation and Removal from CCA Agreement
2. Board Resolution 18-19
3. CCA Agreement
4. Original Staff Report
5. Letter to Withdraw and Resign from CCA JPA
PREVIOUS ACTION/REFERRAL:
Meeting of: March 13, 2018
File No.: 18-55