To: Board of Supervisors
From: County Administrative Office
Agenda Section: Consent
SUBJECT:
title
Project Trellis: Bureau of Cannabis Control Local Equity Program (LEP) 1.0 Spending Plan
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve the Project Trellis: Bureau of Cannabis Control Local Equity Program (LEP) Spending Plan 1.0.
Body
SOURCE OF FUNDING:
1120-275 Economic Development Equity Program (1120-275-422)
DISCUSSION:
On March 12, 2019, your Board adopted a framework for Project Trellis, the County of Humboldt’s Cannabis Micro-grant, Marketing, and Local Equity Program. Later, on March 19, your Board passed Ordinance 2623 creating a cannabis local equity program for the County of Humboldt, and Resolution 19-24 adopting the County Local Equity Program Manual (LEP). After input from state funding agencies, the LEP was later amended October 8, 2019, by Resolution 19-1392 titled “Modification to Humboldt County Local Equity Program Manual”.
After the passage of the aforementioned ordinance and resolutions creating and modifying the County Local Equity Program the county entered into a grant agreement with the Bureau of Cannabis Control (BCC) for equity funding and later received a payment in the amount of $1,338,683.13. The receipt of these funds and the LEP governing their usage are hereinafter referred to as the County of Humboldt Local Equity Program 1.0.
A second distribution of $2.4 million in state equity funds have also subsequently been received. These funds are attached to a separate set of guidelines and restrictions and are administered by a separate state funding agency. A spending plan for these funds, and a new LEP, will be brought to your Board for review and approval at a future date and will be referred to as the County of Humboldt Local Equity Program 2.0.
Since the receipt of the first distribution of state funding from the BCC, staff have been engaged with local community partners and other county agencies to lay the groundwork for program implementation of version 1.0 of the County’s Local Equity Program.
Therefore, in order to proceed with the program, staff recommends that your Board review and approve the spending plan for the County of Humboldt Local Equity Program 1.0 and direct staff to launch and administer the program according to the spending plan. This spending plan identifies $1,204,814.82 in startup and ongoing operating costs to assist local equity applicants, $41,207.94 in staff salaries, $75,000 for sub-contracting a Cannabis Business Direct Technical Assistance Program, and $17,660.37 in other administrative and overhead costs.
FINANCIAL IMPACT:
Your Board previously approved 10% allocation of Measure S funds for Project Trellis which included a 15% allocation to County’s Local Equity Program. In addition to the local allocation, the Local Equity Program will be funded by two different State funding awards. The first award of $1.3 million from the Bureau of Cannabis Control (County of Humboldt Local Equity Program 1.0) and the second award of $2.4 million from the Governor’s Office of Business (County of Humboldt Local Equity Program 2.0). The attached spending plan gives greater clarity for $1.3 million and adoption of this plan does not adversely impact the overall Project Trellis budget nor the General Fund.
STRATEGIC FRAMEWORK:
This action supports your Board’s Strategic Framework by supporting business, workforce development and creation of private-sector jobs .
OTHER AGENCY INVOLVEMENT:
N/A
ALTERNATIVES TO STAFF RECOMMENDATIONS:
Board Discretion
ATTACHMENTS:
Project Trellis Bureau of Cannabis Control Local Equity Program Spending Plan
Ordinance 2623
Resolution 19-24
Resolution 19-23
PREVIOUS ACTION/REFERRAL:
Board Order No.: I1; I1
Meeting of: March 12th, 2019; March 19th 2019
File No.: N/A