HomeMy WebLinkAboutReso 2023-111
RESOLUTION NO. 2023-111
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
CHULA VISTA APPROVING AN AGREEMENT BETWEEN
THE CITY AND THE PUN GROUP, LLC TO PROVIDE
CANNABIS EXCISE TAX AND INVENTORY AUDIT AND
CONSULTING SERVICES
WHEREAS, on November 6, 2018, the City of Chula Vista voters approved Measure Q by
64.32%, which imposes a Cannabis Business tax of $25 per square foot of canopy on Cannabis
Cultivators, and 7% of gross receipts of all other Cannabis Businesses including Storefront
Retailers, Non-Storefront Retailers, Manufacturers, Distributors, and Testing Laboratories, to fund
general City services, including but not limited to enforcement efforts against Cannabis Businesses
that are operating illegally; and
WHEREAS, Chula Vista Municipal Code
Cannabis Ordinance contain the local licensing and regulatory provisions governing Commercial
Cannabis Businesses in the City of Chula Vista; and
WHEREAS, currently, eleven licensed Cannabis Businesses are operating within the
Business will open during Fiscal Year 2024; and
WHEREAS, CVMC Section 5.21.150 allows the City to perform compliance audits and
examine all businesses locations, books, and records of cannabis businesses to certify tax
remittance and general operations are in accordance with the City of Chula Vista rules and
regulations; and
WHEREAS, to enhance Cannabis Excise Tax revenue collection efforts, program
oversight, and compliance with CVMC Chapter 5.21, the Finance Department requires the use of
a consultant to provide cannabis excise tax and inventory audit and consulting services; and
WHEREAS, request for proposal (RFP 23-09) was published in October 2022 by the City
of La Mesa in conjunction with the City of Chula Vista and Imperial County, to request cannabis
audit services to perform cash handling audits, on-site inventory audits, development of audit
policies and procedures, and track and trace systems evaluation; and
WHEREAS, five (5) proposals were received, staff from all three agencies evaluated the
proposals and selected The Pun Group, LLC; and
WHEREAS, staff recommends entering into an agreement with The Pun Group, LLC for
the above-described cannabis excise tax and inventory audit services for an initial term through
June 30, 2024, with four (4) one-year options to renew through Fiscal Year 2028; and
WHEREAS, the proposed agreement with The Pun Group, LLC shall become effective
upon adoption of this Resolution by the City Council.
Resolution No. 2023-111
Page No. 2
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chula Vista,
that it approves the agreement between the City and The Pun Group, LLC to provide cannabis
excise tax and inventory audit and consulting services, in the form presented, with such minor
modifications as may be required or approved by the City Attorney, a copy of which shall be kept
on file in the Office of the City Clerk, and authorizes and directs the Mayor to execute the same.
Presented by Approved as to form by
Sarah Schoen Jill D.S. Maland
Director of Finance/Treasurer Lounsbery Ferguson Altona & Peak
Acting City Attorney
PASSED, APPROVED, and ADOPTED by the City Council of the City of Chula Vista,
California, this 8th day of August 2023 by the following vote:
AYES: Councilmembers: Cardenas, Chavez, Gonzalez, Preciado, and McCann
NAYS: Councilmembers: None
ABSENT: Councilmembers: None
John McCann, Mayor
ATTEST:
Kerry K. Bigelow, MMC, City Clerk
STATE OF CALIFORNIA )
COUNTY OF SAN DIEGO )
CITY OF CHULA VISTA )
I, Kerry K. Bigelow, City Clerk of Chula Vista, California, do hereby certify that the foregoing
Resolution No. 2023-111 was duly passed, approved, and adopted by the City Council at a regular
meeting of the Chula Vista City Council held on the 8th day of August 2023.
Executed this 8th day of August 2023.
Kerry K. Bigelow, MMC, City Clerk