Here’s what you need to know:
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Dustin Moore emphasized the glut in the cannabis industry throughout the state. Last year, wind and rain damaged over 5 acres of unharvested cannabis in Boca Del Rio, resulting in a $7 million loss.
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The Council (5-0) approved Resolution No. 22-12, approving the City of Mendota’s Local Road Safety Plan included in the Multijurisdictional Local Safety Plan.
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Last month, Mendota Police Department issued 35 arrests and 89 citations and stated a 76 percent decline in theft.
The Scene
According to its website, The City Council consists of 5 council members. The members’ terms are staggered and are set at four years in length, meaning that two or three council members are elected every other year. The meeting was in-person on Tuesday, Feb. 22, 2022, at 6 pm.
Officials Present:
Mayor Rolando Castro
Mayor Pro Tem Jesus Mendoza
Councilmember Jose Alonso
Councilmember Joseph R. Riofrio
Councilmember Oscar Rosales
City Manager Cristian Gonzalez
City Attorney John Kinsey
Others Present:
Charles Wolf
Chris Lefkovitz
Dustin Moore
Joel Lozano
Jonathan David
Michael Jensen
Michael Osborn
Mychal Loomis
Tyler Rey
Jennifer Lekumberry
Jon David
Joseph Amador
Discussions/Actions
Dustin Moore updated the council on the state of the local cannabis industry from Boca Del Rio Agriculture, LLC, and Odyssey Agricultural Development, LLC.
He emphasized the glut in the cannabis industry throughout the state.
Cities and counties eyeing a tax reform in the cannabis industry are the following:
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Adelanto, California City, Desert Hot Springs, Humboldt, Long Beach, Monterey, Salinas, San Diego, San Francisco, and Sonoma.
In California, tax measures on the cannabis industry include:
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Cannabis Tax Reform (Governor’s Budget)
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Elimination of Cultivation Tax (SB 1074, AB 2792, SB 1281)
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Elimination or Reduction of Excise Tax (SB 1074, AB 2792, SB 1281)
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Grant Funding (Governor’s Budget)
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Enforcement (Governor’s Budget)
He noted the reduction or pause in issuing new cultivation licenses, reducing or eliminating California cultivation tax, and increasing retail licenses as key levers to drive market recovery.
The glut has strong similarities with Oregon’s 2018 wholesale market crash since overproduction led to a 50 percent decline in prices and took 2-3 years to recover.
Dustin Moore gave an update from Boca Del Rio Agriculture, LLC, on the state of its business.
Last year, wind and rain damaged over 5 acres of unharvested cannabis in Boca Del Rio, resulting in no revenue and loss of $7 million.
Despite the setback, he rejected a suspension of the tax. He remained optimistic that the industry could turn seasonal jobs to career-appealing to Mendota residents.
Jon David gave an update of Odyssey Agricultural Development, LLC, on the state of its business.
In its income statement, Odyssey has spent on the following:
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$8.2 million on capital expenses, which covers grading and site prep, electrical/plumbing infrastructure, greenhouses/temp structures, and soil
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$3.4 million on operating expenses such as fertilizer, plants, water, labor, and packaging
– $1.5 million on state cultivation taxes due based on 9,000 pounds harvested.
– $600,000 on public benefits fee.
Odyssey has a gross revenue of 462,391 to date, with a net loss of $13,237,609.
Council (5-0) unanimously approved items #1-6 of the consent agenda.
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Minutes of the regular City Council meeting of February 8, 2022.
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February 2, 2022, through February 14, 2022, Warrant List Check Nos. 51376 Through 51449 Total For Council Approval= $308,983.17
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Proposed adoption of Resolution No. 22-09, proclaiming a continued local emergency, ratifying the governor’s proclamation of a state of emergency on March 4, 2020, and authorizing remote teleconference meetings of the City of Mendota’s legislative bodies for thirty days under the Brown Act.
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Proposed adoption of Resolution No. 22-10, approving the American Rescue Plan Act of 2021 State Local Fiscal Recovery Funds Subrecipient Certifications and Commitment of Responsibility.
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Proposed adoption of Resolution No. 22-11, approving the submittal of a proposal for the 2022 Senate District 12 Budget Request to the Office of State Senator Anna Caballero.
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Discussion and consideration of Resolution No. 22-12, approving the City of Mendota’s Local Road Safety Plan included in the Multijurisdictional Local Safety Plan.
Mychal Loomis from Kittleson presented Mendota’s Local Road Safety Plan included in the Multijurisdictional Local Safety Plan.
The Local Road Safety Plan (LRSP) consists of:
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Analyzing historical crash patterns and trends
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Identifies engineering, education, emergency response, and enforcement countermeasures and strategies.
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Prioritizing safety improvements based on crash data and stakeholder engagement
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Meeting federal safety plan guidance and CalTrans LRSP requirements.
The LRSP is built from the Fresno Council of Governments (COG) Regional Safety Plan and funded by the CalTrans grant program.
The plan enables Mendota to apply for Highway Safety Improvement Program (HSIP) grant funding.
LRSP has 13 safety partners ranging from California Highway Patrol to the Mendota Public Safety Subcommittee.
Existing roadway safety performance stated 348 crashes from 2015 to 2019, with 3 fatal crashes and 3 severe injury crashes. Compared to the statewide average, Mendota has a higher share of pedestrian crashes.
The Council will continue coordinating with regional and local safety partners, especially CalTrans, for State Route improvements.
The HSIP Pedestrian Set-aside has identified four locations as follows:
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Sorenson/Gregg, 7th/ Unida, 7th/ Tule, and 9th/ Quince
The pedestrian crossing improvements involve high visibility crossings, advanced yield and warning signs, median refuge areas, and stop ahead and stop bar markings.
Council considered Resolution No. 22-12 for adoption.
Last month, Mendota Police Department issued 35 arrests and 89 citations and stated a 76 percent decline in theft.
The closed sessions focused on:
Conference With Legal Counsel – Existing Litigation
Ongoing litigation under paragraph (1) of subdivision (d) of Government Code section 54956.9 (one case).
City of Mendota v. Evelyn Kramer, et al., Fresno County Superior Court, Case No. 21 CECG02410.
Conference With Legal Counsel – Existing Litigation
Ongoing litigation under paragraph (1) of subdivision (d) of Government Code section 54956.9 (one case).
Case name unspecified: Disclosure would jeopardize existing settlement negotiations.
The meeting ended at 8:17 pm. On Wednesday, March 9, 2022, the next regular meeting will be at 6:00 pm on YouTube.
If you believe anything in these notes is inaccurate, please email us at Documenters-admin@thefresnoland.com with “Correction Request” in the subject line.