HomeMy WebLinkAboutCC_2017_08_29_Agenda Packet CC PC JointSpcMtg
SPECIAL JOINT MEETING
Atascadero City Council
Atascadero Planning Commission
Tuesday, August 29, 2017
6:00 P.M.
Atascadero City Hall Council Chambers, 4th Floor
6500 Palma Avenue, Atascadero, California
(Enter from Lewis Avenue)
AGENDA
ROLL CALL:
DISCUSSION:
1. Atascadero Cannabis Regulations Proposed Zoning Amendments
Fiscal Impact: Any potential amendments to the Zoning Code addressing adult
and medical use of cannabis may have impacts on staff resources. Any
revenue that may be associated with these amendments is currently unknown.
Recommendation: Council and Planning Commission discuss, and Council
provide direction, pertaining to amending Title 9, Planning and Zoning, of the
Atascadero Municipal Code in response to Proposition 64 and Senate Bill 94,
adult and medical use of cannabis. [Community Development]
ADJOURNMENT:
The City Council will adjourn to its next Regular Session on September 12, 2017; and the Planning
Commission will adjourn to its next Regular Session on September 5, 2017.
STATE OF CALIFORNIA )
COUNTY OF SAN LUIS OBISPO )
CITY OF ATASCADERO )
AMANDA MUTHER, being fully sworn, deposes, and says: That she is the Deputy City Clerk of the City of
Atascadero and that on August 23, 2017, she caused the above Notice to be posted at the Atascadero City Hall,
6500 Palma Avenue, Atascadero, California and was available for public review in the Customer Service Center at
that location.
AMANDA MUTHER, Deputy City Clerk
City of Atascadero
Page 1 of 24
ITEM NUMBER: 1
DATE: 08/29/17
Atascadero City Council
Staff Report - Community Development Department
Atascadero Cannabis Regulations
Proposed Zoning Amendments
RECOMMENDATION:
Council and Planning Commission discuss, and Council provide direction, pertaining to
amending Title 9, Planning and Zoning, of the Atascadero Municipal Code in response
to Proposition 64 and Senate Bill 94, adult and medical use of cannabis.
REPORT-IN-BRIEF:
At the April 25, 2017 City Council Meeting, the City Council evaluated community input
and discussed options towards a zoning code amendment to address Proposition 64,
also known as the Adult Use of Marijuana Act (“AUMA”). The City Council directed staff
to return with additional information towards the formulation of code revisions.
Since the City Council hearing, staff has continued to gather information from other
agencies, seminars, roundtable discussions and community input. The state has also
established a new website known as the California Cannabis Portal
(https://cannabis.ca.gov). The new website provides detailed information on the state’s
effort to regulate the cannabis industry. This website will continue to be updated to
provide information on each of the cannabis licenses that will be issued, starting in 2018,
in addition to links to a wide variety of important resources for consumers. The state has
also released a draft Environmental Impact Report that addresses the new licensing
process.
On June 27th, the Governor signed Senate Bill 94 (SB 94), repealing the 2015 Medical
Cannabis Regulation and Safety Act (“MCRSA”) but including certain provisions from
MCRSA, regarding medical marijuana, that can be found in Proposition 64. SB 94
renamed the AUMA as the Medicinal and Adult-Use Cannabis Regulation and Safety Act
(“MAUCRSA”). In addition to consolidating state laws regarding medical marijuana and
adult-use marijuana, SB 94 introduced more uniform terminology. SB 94 revised
references in existing law to refer to “marijuana” or “medical marijuana” as “cannabis” or
“medicinal cannabis”, and revised references of “nonmedical” to “adult-use.” Business
Page 2 of 24
ITEM NUMBER: 1
DATE: 08/29/17
and Professions Code section 26200, which is part of MAUCRSA, expressly recognizes
the ability of cities to completely prohibit all adult-use (recreational) cannabis businesses
or to regulate such businesses.
Preparation of a zoning code that responds to new state regulations starts by formulating
a set of new land use definitions that describe each of the local activities to be licensed
by the state (Attachment 1). In order to determine what activities will ultimately be allowed
in the City, each item must be defined, so that it is clear what will be allowed, conditionally
allowed, or prohibited in the City’s Zoning Code.
The state’s licensing process will treat medical cannabis no differently than adult use
cannabis. Designing the City’s amended Zoning Code regulations, to respond to the new
state licensing process while also responding to local needs, will help avoid confusion
and overlap. The City’s Zoning Code should also be formulated this way to avoid
confusion and overlap. Staff has researched state licensing, and the draft codes of other
communities, to formulate draft regulations and options for each of the categories detailed
below. Following Council discussion, Zoning Code amendments will require Planning
Commission review followed by City Council review and adoption.
DISCUSSION:
Background:
At the April 25, 2017 City Council Meeting, the Council reviewed each of the land use
areas to address in response to Proposition 64. The City Council gave staff broad
direction on cannabis land uses activities that could occur in the City and asked staff to
return following research into these specific topic areas. The additional information
gathered and included in this report is designed to help Council formulate amendments
to the Zoning Code (Title 9, Planning and Zoning, of the Atascadero Municipal Code).
This report examines the state’s licensing process, and further explores suggested
Zoning Code amendments that would allow certain commercial uses such as cannabis
testing facilities, manufacturing, deliveries and other non -retail land uses. The suggested
Zoning Code amendment options would also refine the City’s regulations on private
cultivation.
Zoning Code Amendment Process:
The development of these important Zoning Code amendments is a gradual process that
relies on continuous community involvement. Four phases of the process, listed below,
were identified and presented to Council:
Phase 1 – Gather public feedback through a series of public workshops and
informational discussions. This phase is complete.
Phase 2 – Direction from the City Council on the formulation of local
Ordinances. This phase is complete.
Phase 3 – Provide refined information to the City Council based on
specific feedback. Introduce land use definitions and information
towards Zoning Code development while hearing additional input.
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ITEM NUMBER: 1
DATE: 08/29/17
Phase 4 - Hold required public hearings of the Planning Commission and
City Council to review final amended Zoning Code language, introduction
of ordinance on first reading and finally, adoption of ordinance on second
reading.
Analysis:
Section 1 – State Licensing
State Licensing Process – Commercial Activities
The primary governing authority for the regulation of cannabis is known as the Bureau of
Cannabis Control. Responsibility for licensing is given to:
A. Bureau of Cannabis Control (Testing, Retail, Distribution)
B. Department of Public Health (Manufacturing)
C. Department of Food and Agriculture (Cultivation)
The state authority known as “CalCannabis” (http://calcannabis.cdfa.ca.gov/) has
prepared the framework to establish 19 different types of commercial cannabis licenses.
Attachment 2 includes a FAQ from CalCannabis that describes each of the license types.
The types of licenses are as follows:
13 different types of commercial cultivation
2 manufacturing licenses pertaining to non -volatile / volatile solvents used for
processing
1 license for testing
1 license retail sales
1 license for wholesale distribution
1 license for what is considered a “microbusiness” (small retail and cultivation not
exceeding 10,000 sf in size)
Similar to alcohol licensing by ABC, the state licensing process for cannabis will provide
regulations that help to ensure public safety and neighborhood compatibility. The state
cannot issue licenses to applicants whose operations violate the provisions of any local
ordinances or regulations. The minimum requirements to obtain a state license for a
commercial operation include:
Originally, under Proposition 64, a license would not be issued to a business
licensed as a retailer of alcoholic beverages; however, SB 94 changes that and
will allow a license to be issued to an alcohol retailer.
A license will not be issued to a business that is within 600-feet of a school,
daycare, center, or youth center (a municipality may adopt a larger radius).
A license will not be issued if the business violates any local ordinance or state
regulations in effect prior at the time or prior to license issuance .
Page 4 of 24
ITEM NUMBER: 1
DATE: 08/29/17
Section 2 – Land Use Definitions
The City should have definitions that accommodate the categories of state licenses to
describe each potential land use. A detailed draft description of the below proposed
definitions are included in Attachment 1.
Cannabis
Cannabis Canopy
Commercial Cannabis Cultivation
Personal Cannabis Cultivation
Cannabis Delivery
Cannabis Dispensary
Mobile Delivery
Mobile Dispensary
Cannabis Distribution
Cannabis Edible Product
Section 3 – Draft Regulations
Staff has developed a set of Zoning Code amendment options for each of the categories
identified by City Council. Attachment 3 includes a map of commercial districts that fall
outside of the 600-foot buffer zone required by state licensing. The Downtown Commercial
Zone and the Retail Commercial Zone have been removed from the map as these zones
may not be appropriate for manufacturing, testing labs, or distribution centers.
1. Personal Cultivation – Indoors
The City Council asked staff to provide information on options for regulating personal
cultivation. The following are components that may be regulated:
Number of plants and size/location of planting area
Type of structure
Ensure a construction permit is obtained for new electrical, or other
construction
Ensure that sleeping rooms are not converted for cultivation use
Consider establishing a database of personal cultivation sites
Staff has considered the establishment of a database system for personal cultivation
sites. Although the idea has merit, it could be somewhat problematic because it may
create a potential security risk for those who wish to remain discreet and it is likely to
create an additional burden on staff. Staff would need to maintain, update and monitor
the list. At this time, there are no additional staff resources available to maintain nor
enforce such a list. Instead, it is recommended that performance standards , along with
firm code enforcement options (increased penalties, confiscation of plants), be
considered for those who violate personal cultivation allowances.
Given the evolution of state laws, it is important to treat personal medical cultivation and
personal adult cultivation the same. If not, the implementation and enforcement of
personal cultivation may be confusing and challenging for both the public and City staff
to understand. The proposed Zoning Code language below would cover both medical
and adult personal use cultivation.
Cannabis Hoop Structure
Cannabis Greenhouse
Cannabis Manufacturing Volatile
Cannabis Manufacturing Non-Volatile
Cannabis Nursery
Cannabis Testing Facility
Cannabis Transport
Industrial Hemp
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ITEM NUMBER: 1
DATE: 08/29/17
Suggested Zoning Code for Personal Indoor Cultivation
Suggested
code options
No more than six plants per residence may be allowed for both medical
and/or adult personal use whether indoors or outdoors.
No more than 120 square feet of indoor residential space, per residence,
may be utilized for personal cultivation.
More than six plants, up to a maximum of 15 plants per residence for
personal use may be allowed with approval of an administrative use permit
and site registration.
Cultivation may not be allowed within a room designed for sleeping.
Cultivation site shall not be visible to the public or from adjacent residences.
A construction permit shall be required for new electrical, plumbing, or other
construction that would otherwise be subject to a construction permit.
Hoop structures, transparent greenhouses, and similar transparent or
partial structures are considered outdoor cultivation.
Landlord approval required for personal cultivation on rental properties.
Violation of the personal cultivation standards shall be subject to a municipal
code violation.
2. Personal Cultivation- Outdoors
The City Council asked staff to bring back a reasonable regulation with protections
and conservative limits:
Set maximum number of plants for medical or adult use
Ensure screening, setbacks, protection from access
Consider registration system or database for personal cultivation
Ensuring neighborhood compatibility, minimize odor
Draft Regulations for Personal Outdoor Cultivation
Suggested
code
options
15-foot setback from property line required for personal outdoor
cultivation site. Shall be located 25 feet from nearest adjacent residence.
120 square foot maximum plant canopy coverage unless a greater
coverage is approved with an administrative use permit.
Landlord approval required for rental properties.
Six plants maximum per residence at any time
More than six plants (maximum of 15) may be allowed with approval of
an administrative use permit and site registration/approval.
Screening to consist of six foot tall solid wood fence or similar.
Plants shall not be visible to public or from adjacent residences.
Fencing shall not exceed six feet in height unless a fence height exception
is obtained
Prohibited on attached residential units within decks, balconies or
rooftops unless within a private yard area subject to screening and
setbacks.
3. Commercial Cultivation
The City Council asked that all commercial cultivation activities be prohibited at this
time. There will be 13 different types of licenses issued by the state for commercial
cultivation. The City is not required to allow commercial cultivation at this time and this
option may be explored at a later date as the industry matures.
Draft Regulations for Commercial Cultivation
Suggested
code options
Prohibit all commercial cultivation types, both indoor, outdoor and
nursery stock.
Page 6 of 24
ITEM NUMBER: 1
DATE: 08/29/17
4. Retail Sales of Cannabis / Medical Dispensaries / Distribution Center
The City Council asked staff to return with additional information on a retail use that
is delivery based only with no on -site retail sales. Delivery services currently operate
in other places within the County for medical use. Starting January 1, 2018, the state
will begin to offer licenses for delivery to adults (non-medical). Delivery services could
be based in the City or outside of the City. Those based in the City would keep
potential tax revenue in the City. A delivery service could be based out of a distribution
center, which is a small commercial office with no retail storefront. Any cultivation
associated with a delivery service would need to occur outside of the City.
Delivery services would offer retail sales of cannabis products that would be delivered
to a home in an unmarked vehicle. Ordering would occur through the internet or by
phone. Delivery services may not use mail service since that is currently prohibited
by Federal law.
Some of the items that need to be considered include:
Provide specific zoning locations for distribution centers
Provide aesthetic and sign limitations for a distribution center to discourage an
attractive nuisance
Consider hours of operation
Consider safety and security for delivery vehicles
Provide information on local taxation of retail sales and the process to se t up
new fees, taxes, etc. and potential increase in City revenues
Draft Regulations for Cannabis Distribution Center
Suggested
code
options
A Cannabis distribution center with no on-site sales may be allowed with
a Major Conditional Use Permit (CUP) in CPK, CS and Manufacturing
Zones.
Use shall be at least 600 feet from schools, parks, and youth centers.
Use shall be at least 300 feet from another distribution center.
Building signs, and exterior treatment shall be subject to appearance
review standards for buildings.
Mobile dispensaries shall be prohibited.
All delivery sales shall originate from a state licensed facility that is
operating with a current business license.
Use shall be subject to local excise taxes / fees for retail sales or
dispensaries.
Distribution centers shall be subject to annual compliance review.
5. Testing Facilities for Cannabis
Testing facilities include medical research of cannabis, as well as labs that test for
pesticides, contaminants, TCH, CBD, the active chemical compound that determines
potency of cannabis and other types of tests. No retail or wholesale sales to the public
would be involved. Under the recent passage of SB 94, no storage of cannabis would
be allowed at a testing lab; cannabis distributors or cultivators will be required to store
their cannabis on site during testing. Testing lab employees would obtain small
Page 7 of 24
ITEM NUMBER: 1
DATE: 08/29/17
samples of cannabis from a distributor or cultivator and transport those samples to
the testing lab. A testing lab can typically fit into a small office building or small
warehouse site. Several employees, some of which would be qualified chemists,
would operate a lab. Some of the things to consider include:
Zoning location
Hours of operation
Appearance standards
Draft Regulations for Testing Labs
Suggested
code
options
Allow testing facilities with an Administrative Use Permit (CUP) in CPK,
CS, and Manufacturing zones. Allow in CR zone with Minor Conditional
Use Permit.
Shall be prohibited within 600-feet of schools, parks, and youth centers.
Design Review Committee review required for building signs, security,
and appearance.
No cannabis related advertising or association with cannabis shall be
allowed on exterior of building.
6. Manufacturing Facilities
Over the past couple of years, the cannabis manufacturing industry has become
mainstream and is playing an active role in the national financial market. A recent
article by Investopedia highlighted several major companies that are getting involved
in the manufacturing market. They specialize in items such as pharmaceuticals that
help chemotherapy patients, sclerosis and epilepsy. There are also many industries
that create topical lotions, edible products and even veterinary products. However,
industrial uses in this category are fairly new and there are no known local examples
to learn from.
There are two types of non-retail manufacturing facilities that are recognized by the
State Licensing Authority. The state utilizes the term Type 1 for non-volatile
manufacturing and Type 2 for volatile manufacturing. A Type 1 facility is a facility that
does not use hazardous or volatile solvents. Type 1 would typically consist of food
products, edible items and finish products for topical use that do not include the use
of solvents or heavy manufacturing.
A Type 2 manufacturing process uses flammable solvents and other more intensive
manufacturing processes similar to the City’s existing “Manufacturing and Processing
High Intensity”. Type 2 manufacturing is employed to create other product types
including extracts, oils, tinctures and topical applications. Currently, there are many
examples of these manufacturing operations that are operating in t he pacific
northwest in the states of Oregon and Washington. These manufacturing uses can
operate in a small warehouse space or even a bakery type space depending on level
of intensity and storage/operation needs.
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ITEM NUMBER: 1
DATE: 08/29/17
A cannabis manufacturing facility is a facility that could be locally taxed based on floor
area or based on sales. It may be premature to create and allow this land use prior to
establishing an appropriate tax that will assist the City in accommodating any
necessary planning, building, or law enforcement staffing that will be needed to help
regulate such businesses.
Things to consider:
Tax structure
Zoning
Distance separation
No-retail sales, no storefront
Appearance and security
Neighborhood compatibility and protection from odors
Draft Regulations for Manufacturing Uses
Suggested
code
options
Type 1 manufacturing facilities allowed with a Conditional Use Permit
(CUP) in CPK, CS and Manufacturing Zone.
Type 2 manufacturing facilities allowed with a Conditional Use Permit in
the CPK, CS and Manufacturing zone.
Manufacturing facilities shall be prohibited within 600 feet from schools,
parks, and youth centers.
Manufacturing facilities shall not include retail sales in the City unless by
delivery service.
Manufacturing facilities shall be subject to an annual compliance review.
Design Review Committee review shall be required for all facilities.
All manufacturing facilities shall be subject to local excise taxes / fees.
7. Cannabis Delivery Services
Delivery services consist of a personal delivery vehicle that distributes retail deliveries
to adults in a discreet manner. Delivery services allow for the delivery of cannabis for
medical or adult use. Delivery services could have a distribution center within
Atascadero or come from a nearby community. In order to avoid mobile sales such
as from an “ice cream” truck, the Zoning Code option suggests that all deliveries shall
originate from a state licensed facility and that mobile deliveries shall be prohibited.
The state will require specific licensing for a delivery service. A delivery service with
its origin in the City can have its sales taxed by the City.
Draft Regulations for Delivery Services
Suggested
code
options
Deliveries to retail customers shall be prohibited between the hours of
11PM and 7AM.
Delivery services shall be provided by unmarked vehicles.
Out of town vendors and local vendors shall be subject to a City business
license. Business licenses shall be reviewed/renewed annually.
Mobile dispensaries shall be prohibited.
All delivery sales shall originate from a state licensed facility that is
operating with a current business license.
City could require deliveries to be from a brick and mortar
distribution site that is located within the City or County.
Page 9 of 24
ITEM NUMBER: 1
DATE: 08/29/17
8. Smoking and Consumption
Proposition 64 prohibits public consumption of cannabis. However, the state does not
provide a definition of “public” therefore it is up to the courts, or each local jurisdiction,
to define what is considered a public place. Based on alcohol consumption, the courts
have generally ruled that any place freely accessible by your mail carrier or friendly
neighborhood solicitor, is public. Therefore, a public sidewalk, street, a front porch,
driveway, or other space directly exposed to the public right of way may be considered
“public” for the purposes of cannabis consumption.
Based on feedback from residents, the overwhelming majority wanted cannabis
smoking in public prohibited. The City’s Zoning Code should provide for a prohibition
on public cannabis consumption, including vaping, smoking and consumption of
edible products even through the state already prohibits such consumption. New
definitions have been crafted to carefully describe public spaces where smoking,
vaping, and ingesting of both tobacco and cannabis products shall be prohibited.
Draft Smoking Regulations
Suggested
Code
Options
Smoking, vaping, and ingesting of tobacco and cannabis products shall
be prohibited in public places.
Public spaces includes the following:
Any public or private park that may be utilized by the public, including but
not limited to Atascadero Lake Park, Sunken Gardens, Centennial Bridge
and Plaza, Paloma Park, Colony Park, and at any City sponsored public
event, including but not limited to Hot El Camino Nights, Dancing in the
Streets, Colony Days, Winter Wonderland, and the Holiday Lighting
Ceremony.
Public Spaces include “outdoor recreation areas” to include public trails,
and City and Non-City maintained open space areas.
Public spaces shall include public sidewalks and public spaces at or
within 100 feet of schools, parks, and youth centers.
Public spaces shall include all those spaces that may be directly visible
or accessible to the public even if those spaces are within private property
(i.e a front porch, front yard, driveway etc).
Section 4 – Taxation
The state has combined medical and adult use cannabis for the purposes of taxation and
local excise taxes. To get a better understanding of taxation, Prop 64 authorizes the State
of California to collect the following excise taxes on medical and non-medical cannabis:
15% state excise tax on gross retail receipts for medical dispensaries and non-
medical retail outlets
$9.25 per dry weight ounce on cannabis flower state excise tax for medical and
non-medical cultivation
$2.75 per dry weight ounce on cannabis leaves state excise tax for medical and
non-medical cultivation
Sales tax to be collected on all non-medical retail sales
Personal cultivation of both medical and non-medical cannabis is exempt from cultivation
taxes imposed by the state.
Page 10 of 24
ITEM NUMBER: 1
DATE: 08/29/17
A local municipality has the ability to impose excise taxes in addition to state excise
taxes which include:
New Business license taxes for cultivation, dispensaries, retail sales,
manufacturing, and delivery services
Business regulatory fees to recover cost of implementing both medical and non -
medical commercial operations
These additional taxes would require voter approval and would need 2/3 voter approval
if the tax is utilized for a specific reason (i.e. law enforcement services / roads) versus a
general tax that goes into the General Fund. Local taxes will need to be maintained at
lower level (less than 8%) to ensure that the industry is not driven to the black market.
If the City proceeds with amendments to the Zoning Code towards some form of cannabis
manufacturing distribution center(s) or delivery, a process to adopt appropriate taxes and
business license fees will need to be brought back to Council for approval. The City may
tax cannabis sales from a local distribution or manufacturing center. Additionally, the City
may adopt a different fee structure for the permitting and licensing of cannabis facilities.
Allocation of State Taxes
The State Legislative Analysis estimates that retail sales of cannabis will exceed the wine
industry at 44 billion dollars each year. Currently, the wine industry is reaching 33 billion
dollars annually. The tax revenue from the legalization of non-medical cannabis will range
from the high hundreds of millions of dollars to over $1 billion dollars annually. State law
has allocated where those monies are to be expended.
Section 5 – State Regulations
All state-licensed commercial cannabis activities will be subject to state regulations that
are being drafted by the various state licensing authorities. The Department of Food and
Agriculture, Department of Public Health, and Department of Consumer Affai rs circulated
draft regulations pertaining to medicinal cannabis activities. With the passage of SB 94,
these regulations will require revisions. It is anticipated that further draft regulations will
be released this fall.
Youth programs,
substance abuse,
education etc.
60%
Enviornmental Clean
Up & Remediation
20%
Law Enforcement
/ Health Impacts
20%
Percentage Allocation
Page 11 of 24
ITEM NUMBER: 1
DATE: 08/29/17
Conclusion:
This is a new industry with both local and federal legal complexities. With additional time,
the industry will be refined, and state and federal law may get closer aligned. Currently,
cannabis is still federally prohibited, therefore its long term future i s unknown. However,
the City has no choice but to respond to Proposition 64 and SB 94, as the voters of the
state have chosen to allow adult use. Although the City does not have to allow all forms
of the retail cannabis industry, defining it and regulating it in moderation will reduce the
illegal market and will create the potential for a tax revenue that can assist enforcement
and regulation. It is easier to start with stricter regulations, then later explore options as
warranted, than it is to allow all forms of cannabis then attempt to roll back ordinances.
Furthermore, since this industry is new, many of its land use implications and revenue vs
cost implications are not known. Based on this fact, many local communities are choosing
to wait until the industry matures before adopting codes to allow commercial business.
It is the City’s goal to adopt regulations prior to January 1, 2018. Since the Zoning Code
is part of Title 9, it requires review and action by both the Planning Commission and City
Council. To allow time for the second reading and the 30 day time period for code
adoption, final action by the City Council will need to take place on or prior to the October
24, 2017 City Council meeting.
There are five primary considerations that need to be taken into consideration prior to
allowing commercial cannabis business in the City. At this time, staff continues to work
on Stage 2 of this process:
1. Community Research and Outreach (Completed)
2. Land Use Regulations (Currently in process)
3. Full Cost Recovery (Application, use permit and regulatory fees)
4. Revenue (Taxation Ballot Measure)
5. Monitoring and Compliance (As defined by ordinance)
Following the completion of land use regulations, which is the primary discussion of this
report, the City will need to shift the discussion towards application fees and taxation
(should commercial activities be allowed). The earliest that a tax measure could be
placed on the ballot would be November 2018.
Concurrences:
Staff has reviewed the proposed code options with each of the City departments. Police
Department staff are concerned about impacts to staffing levels and the need for
additional law enforcement with the implementation of new land uses that include
cannabis businesses. Since the industry is n ot legal federally, and utilizes cash for all of
its transactions, the potential for criminal activity may be higher than that of other
business types. Police staff are concerned that an increase in cannabis related business
will directly result in an increase in criminal activity which will directly result in an increase
in law enforcement that cannot be accommodated under current staffing. The unknown
cost vs revenue of the industry along with the relatively poor perception of cannabis
businesses may be reason to postpone implementation of land use policies that allow for
anything other than testing labs or personal cultivation.
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CEQA Determination:
The action within this Staff Report and City Council direction is not a project within the
meaning of the California Environmental Quality Act (California Public Resources Code
§§ 21000, et seq., “CEQA”) and CEQA Guidelines (Title 14 California Code of
Regulations §§ 15000, et seq.) Section 15378 and is therefore exempt from CEQA. It will
not result in any direct or indirect physical change in the environment because the
administrative activities of the City of Atascadero (government ) will not result in direct or
indirect physical changes in the environment.
Currently, the State of California has drafted an Environmental Impact Report (EIR) that
addresses the implementation of the new state licensing process. The EIR is designed
to address the potential impacts of licensing all the way down to the local level. A copy of
the draft EIR can be viewed on the state website at CalCannabis.
FISCAL IMPACT:
Any potential amendments to the Zoning Code, addressing adult and medical use of
cannabis, may have impacts on staff resources. Code enforcement, law enforcement
and planning application activities are likely to increase with the passage of Proposition
64 and SB 94, but not directly as a result of amendment to the Zoning Code. The passage
of a revised Zoning Code is intended to reduce the illegal activities associated with
cannabis, and therefore reduce law enforcement activities over time. However, there will
be an increase in planning applications and code enforcement activities especially within
the first year or two as the new regulations are put into place. It is anticipated that the
increased funding from state revenue and the potential increased local tax revenue will
offset local fiscal impacts. However, at this time, the balance between increased revenue
and increased impacts to staff resources are unknown.
A recent analysis completed by SCI consulting group (August 14, 2017) found that the
average general fund revenue that will be generated by cannabis sales in a community
that allows for both commercial cultivation and sales will be $15 per capita. In other words,
for a community with a population of 100,000 the average revenue is 1.5 Million. In
Atascadero, this calculator would project a revenue of approximately $450,000 annually,
assuming commercial sales and cultivation.
ATTACHMENTS:
1. Draft land use definitions
2. Q & A from Cal Cannabis state licensing
3. Buffer map identifying schools, youth centers etc. and allowable commercial
zones
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ITEM NUMBER: 1
DATE:
ATTACHMENT:
08/29/17
1
Attachment 1: Land Use Definitions
Cannabis. “Cannabis” or “cannabis product” means all parts of the plant Cannabis
sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not;
the seeds thereof, the resin, whether crude or purified, extracted from any part of
the plant; and every compound, manufacture, salt, derivative, mixture, or
preparation of the plant, its seeds, or resin. “Cannabis” also means the separated
resin, whether crude or purified, obtained from marijuana. “Cannabis” also means
marijuana as defined by Section 11018 of the Health and Safety Code. For the
purposes of this Title, “cannabis” does not include “industrial hemp” as defined by
Section 81000 of the Food and Agricultural Code or Section 11018.5 of the Health
and Safety Code (See “Industrial Hemp”).
Cannabis Canopy. All areas occupied by any portion of a cannabis plant,
encompassing all vertical planes (i.e. stacking of plants), whether contiguous or
noncontiguous on any one site. Cannabis Canopy” shall be measured by taking
the longest length and widest width of existing plants (including all gaps and open
areas between plants) and multiplying the length and width to get square footage.
Cannabis Cultivation “commercial” Any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of cannabis for the sale, trade or
exchange to others for money, services or other goods.
Cannabis Cultivation “personal” Any activity involving the planting, growing,
harvesting, drying, curing, grading, or trimming of cannabis for personal Adult use
only.
Cannabis Delivery. The commercial transfer of cannabis or cannabis products
from a licensed dispensary, up to an amount allowed by the Bureau of Marijuana
Control or its successor, to a primary caregiver, qualified patient, or Adult individual
as defined in Section 11362.7 of the California Health and Safety Code, a licensed
cannabis dispensary, or a licensed testing laboratory.
Cannabis Dispensary. A facility where cannabis, cannabis products, or devices
for the use of cannabis or cannabis products are offered, either individually or in
any combination, for retail sale, including an establishment that delivers cannabis
and cannabis products as part of a retail sale.
Mobile Delivery. The commercial transfer of cannabis or cannabis products from
a dispensary, up to an amount allowed by the Bureau of Marijuana Control or its
successor, to a primary caregiver, qualified patient, or Adult customer. “Mobile
Delivery” also includes the use by a dispensary of any technology platform owned
and controlled by the dispensary, or independently licensed under this chapter,
that enables a primary caregiver, qualified patient, or customer to arrange for or
facilitate the commercial transfer by a licensed dispensary of cannabis or products.
Mobile Dispensary. The commercial transfer of cannabis or cannabis products
from an outdoor location or mobile structure (e.g. food truck or food cart), up to an
amount allowed by the Bureau of Marijuana Control or its successor, to a primary
caregiver, qualified patient, or customer.
Cannabis Distribution. The procurement, sale, and transport of cannabis and
cannabis products between entities authorized pursuant to this chapter.
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Cannabis Edible Product. Manufactured cannabis that is intended to be used, in
whole or in part, for human consumption. An edible medical cannabis product is
not considered food as defined by Section 109935 of the Health and Safety Code
or a drug as defined by Section 109925 of the Health and Safety Code.”.
Cannabis Greenhouse. A fully enclosed permanent structure that is clad in
transparent material. For the purposes of this Title, cannabis cultivation within an
enclosed, non-transparent greenhouse is considered indoor cultivation.
Cannabis Hoop Structure. A readily removable plastic covered hoop structure
without in-ground footings or foundations, which are not more than 12 feet in height
and do not have vertical sides that exceed 4 feet in height. Cannabis hoop
structures are accessory uses on residential land use categories which shall not
exceed 120 square-feet. For the purposes of this Title, cannabis cultivation within
hoop structures is considered outdoor cultivation.
Cannabis Manufacturing. The production, preparation, propagation, or
compounding of cannabis or cannabis products either directly or indirectly or by
extraction methods, or independently by means of chemical synthesis or by a
combination of extraction and chemical synthesis, using volatile or non -volatile
organic compounds, at a fixed location, that packages or repackages cannabis or
cannabis products, or labels or relabels its containers.
Cannabis Nursery. A licensee that produces only clones, immature plants, seeds,
and other agricultural products used specifically for the planting, propagation, and
cultivation of cannabis. No finished products or mature flowering plants are
available at a Cannabis Nursery.
Cannabis Testing Facility. A facility, entity, or site in the state that offers or
performs test of cannabis or cannabis products and that is both accredited by an
accrediting body that is independent from all other persons involved in the
cannabis industry in the state, and registered with the California State Department
of Public Health.
Cannabis Transport. Transfer of cannabis or cannabis products from the
permitted business location of one licensee to the permitted business location of
another licensee, for the purposes of conducting commercial cannabis activity
authorized pursuant to the California Business & Professions Code Sections
19300, et seq. and 26000, et seq.
Industrial Hemp. A fiber or oilseed crop, or both, that is limited to nonpsychoactive
types of the plant Cannabis sativa L. and the seed produced therefrom, having no
more than three-tenths of 1 percent etrahydrocannabinol (THC) contained in the
dried flowering tops, and that is cultivated and processed exclusively for the
purpose of producing the mature stalks of the plant, fiber produced from the stalks,
oil or cake made from the seeds of the plant, or any other compound, manufactu re,
salt, derivative, mixture, or preparation of the mature stalks, except the resin or
flowering tops extracted therefrom, fiber, oil, or cake, or the sterilized seed, or any
component of the seed, of the plant that is incapable of germination.
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Attachment 2: Cal Cannabis Q & A
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Attachment 3: Buffer Zone Maps: These maps illustrate commercial
zones that are at least 600 feet from sensitive land uses that could
accommodate Commercial uses such as manufacturing, testing labs, or
delivery service businesses.
600 foot buffer map: Traffic Way Area
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600 foot buffer map: Morro Road/Downtown
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600 foot buffer map: West Morro Road
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600 foot buffer map: North El Camino Real
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600 foot buffer map: Mid El Camino Real
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600 foot buffer map: South El Camino Real
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