Cannabis Community Benefit Committee

Current Committee Members

Benjamin Hawthorne - Public Member

Catherine Silvester - Public Member

Chief of Police (or designee)

City Manager (or designee)

Director of Community Services

Cannabis Business Representative (2 - one from each business) 


City of Placerville

Cannabis Business

Community Benefit Program

Re-Adopted October 25, 2022

Purpose:

In 2018 the City adopted an ordinance to allow Cannabis Retail businesses to operate in the City of Placerville. Since that time the City has completed an application process and selected three applicants to operate in the City of Placerville. Section 5-28-9 of the ordinance, requires each cannabis business to provide a community benefits component as part of their business. This program outlines the process for funding the community benefit and selection of projects to be funded.

Funding:

1. Each licensed cannabis business shall be required as part of their permit to contribute 1% of Gross revenues to a Community Benefit Fund established by the City.

2. In year one of the program, contributions will increase incrementally to the full 1% contribution as follows:

  a. Quarter 1: .25%

  b. Quarter 2: .5%

  c. Quarter 3: .75%

  d. Quarter 4: 1%

3. Following the completion of the first year, funds shall be paid at the rate of 1% of Gross Revenues.

4. Upon the mutual agreement of the City and permittee, this amount can be renegotiated on an annual basis.

5. Funds shall be paid to the City in the same manner and on the same frequency as the City Cannabis Taxes are submitted as agreed to by both the City and the Cannabis Business.

6. 2.00% of the total annual proceeds shall be retained by the City to cover the cost of administering the program.

7. Failure to make the required payments shall constitute good cause for rev revocation of the permittees Cannabis business license permit.

8. Funds shall only be expended within the City limits of the City of Placerville.

Eligible Projects/Programs:

Projects or programs eligible for funding shall be as follows:

  a. Public Safety Equipment

  b. City Youth Assistance Fund Program

  c. Placerville Police Department Cadet Program

  d. Community Clean-Up Costs

  e. Student Scholarships

  f. Drug Outreach Education Materials and Program

  g. Habitat for Humanity Senior Assistance Program

  h. Youth Programs (ie. Boys and Girls Club)

  i. Other

Project Selection Process:

1. The City Council shall establish a committee to determine eligibility of projects and make recommendations to the City Council for funding.

2. The Committee shall be a seven member committee consisting of the following:

  a. Chief of Police ( or designee) (1)

  b. City Manager (or designee) (1)

  c. Director of Community Services (1)

  d. Public Member (selected by the City Council) (2)

  e. Cannabis Business Representative (three – One from each business) (2)

3. The Committee will meet as necessary as called by the City Manager.

4. The Committee will develop and implement a selection process. This process may include but shall not require an application process

5. Selected project(s) shall be recommended to the City Council for approval. No project shall be approved without first being reviewed by the Committee.

6. Funding may be carried over for multiple years if necessary to fund a larger project.

Responsibility:

The City of Placerville shall be responsible for implementation of the program.