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HomeMy WebLinkAboutStaff Report 4.A 03/19/2018DATE: TO: FROM: SUBJECT: Agenda Item #4.A March 19, 2018 Honorable Mayor and Members of the City Council through City Manager Ingrid Alverde, Economic Development Manager Adoption of an Ordinance Amending the Text of the Implementing Zoning Ordinance to Accommodate Commercial Cannabis Businesses in Business Park and Industrial Zones RECOMMENDATION It is recommended that the City Council approve for second reading and adoption the attached Ordinance Amending the Text of the Implementing Zoning Ordinance, Ordinance No. 2643 N.C.S., to Accommodate Commercial Cannabis Businesses in Business Park and Industrial Zones. BACKGROUND On February 26, the City Council approved, by a vote of 6-1, the first reading of an ordinance amending the text of the Implementing Zoning Ordinance, Ordinance 2300 N.C.S., Chapter 4 Section 4.030 — Allowable land uses and permit requirements and Chapter 28 — Glossary to accommodate commercial cannabis businesses in Business Park and Industrial zones subject to and in accordance with chapter 10.15 of the Petaluma Municipal Code, the City of Petaluma Commercial Cannabis Permit Regulations, and other applicable law. DISCUSSION The vote on this ordinance was not unanimous and is required to be noticed in the Argus Courier 10 days prior to its second reading. The required public notice was published in the Argus Courier on March 8, 2018.The recommended action provides for a second reading and adoption of the ordinance. FINANCIAL IMPACTS There are no financial impacts from the recommended action other than the staff time and public notice costs associated with preparing this staff report. ATTACHMENTS 1. Cannabis Zoning Text Amendment Ordinance. ATTACHMENT 1 ORDINANCE NO. 2643 N.C.S. ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PETALUMA AMENDING THE TEXT OF THE IMPLEMENTING ZONING ORDINANCE, ORDINANCE 2300 N.C.S., CHAPTER 4 SECTION 4.030 — ALLOWABLE LAND USES AND PERMIT REQUIREMENTS AND CHAPTER 28 — GLOSSARY TO ACCOMMODATE COMMERCIAL CANNABIS BUSINESSES IN BUSINESS PARK AND INDUSTRIAL ZONES SUBJECT TO AND IN ACCORDANCE WITH CHAPTER 10.15 OF THE PETALUMA MUNICIPAL CODE, THE CITY OF PETALUMA COMMERCIAL CANNABIS PERMIT REGULATIONS, AND OTHER APPLICABLE LAW WHEREAS, in November, 2016, California voters approved the Control, Regulate and Tax Adult Use of Marijuana Act, referred to in ballot materials as the Adult Use of Marijuana Act ("AUMA"), which established a regulatory scheme for nonmedical marijuana similar to that established for medical marijuana under the Medical Marijuana Regulation and Safety Act (MMRSA); and WHEREAS, following its adoption by California voters, the AUMA was codified in various provisions of state law, including in Article 2 entitled "Cannabis" in the Uniform Controlled Substances Act within the California Health and Safety Code, and in Division 10 entitled the "Medicinal and Adult -Use Cannabis Regulation and Safety Act" of the California Business and Professions Code; and WHEREAS, as codified in the California Health and Safety Code and the California Business and Professions Code, the AUMA decriminalized for purposes of state law specified nonmedical cannabis uses pursuant to California Health and Safety Code section 11362.1, including, possession, processing, transporting, purchasing, obtaining and given away to persons 21 years old older, without compensation, not more than 28.5 grams of non - concentrated cannabis or not more than 8 grams of concentrated cannabis, including cannabis contained in cannabis products; possessing, planting, cultivating, harvesting, drying or processing not more than six living cannabis plants and possessing the cannabis produced by the plants; smoking or ingesting cannabis or cannabis products, and possessing, transporting, purchasing, obtaining, using, manufacturing, or giving away to persons 21 years of age or older without compensation cannabis accessories; and WHEREAS, in response to enactment of the AUMA, the City Council introduced on November 13, 2017 and subsequently adopted on December 4, 2017, Ordinance no. 2634 N.C.S. repealing and replacing former Chapter 10.15 of the Petaluma Municipal Code entitled "Medical Marijuana" with a new chapter 10.15 entitled "Cannabis" extending the City's cannabis regulations to non-medical cannabis uses in the City; and WHEREAS, section 10.15.010 of Ordinance 2634 N.C.S. provides that the purpose of Chapter 15 is to recognize and respect the will of the California voters in approving the AUMA 2 through adoption of less restrictive local cannabis regulations, while at the same time promoting the public health, safety and welfare of the Petaluma community; and WHEREAS, Section 10.15.040 of Ordinance 2634 N.C.S. authorizes certain limited commercial cannabis activity, subject to issuance of a City permit therefore, for manufacture and wholesale sale of topical or edible cannabis products, testing laboratories, and delivery - only retail sale at up to two locations in the City; and WHEREAS, Section 10.15.090 provides that the City Council shall adopt regulations or authorize the City Manager to promulgate regulations intended to implement the requirements of Ordinance 2634 N.C.S.; and WHEREAS, Section 10.15.040, paragraph (B) of Ordinance 2634 N.C.S. provides that the commercial cannabis activities authorized under that section may only be carried out while and to the extent the activity is conducted pursuant to and in accordance with a current, valid, unexpired, unrevoked, fully -paid, license, permit or other authorization or notice issued by an authorized city official, and pursuant to and in accordance with all other applicable state and local laws and regulation, including, but not limited to the regulations adopted or promulgated pursuant to section 10.15.090, and that such commercial cannabis activities may only be conducted in areas of the City where such uses are permitted in accordance with the City's zoning regulations; and WHEREAS, Section 25.010 of the City of Petaluma Implementing Zoning Ordinance (IZO) provides in pertinent part that no amendment that regulates matters listed in Government Code Section 65850, which matters include the use of buildings and structures, shall be made to the IZO unless the Planning Commission and City Council find the amendment to be in conformity with the General Plan and consistent with the public necessity, convenience and general welfare in accordance with Section 25.050(8) of the IZO; and WHEREAS, the City Council found that due to the negligible environmental impacts anticipated from enactment of new Chapter 10.15 of the Petaluma Municipal Code, Ordinance 2634 N.C.S. was exempt from CEQA pursuant to Sections 15061(b)(3), 15301and 15303 of the CEQA Guidelines; and WHEREAS, on December 18, 2017, the City Council adopted regulations addressing such matters as commercial cannabis permit eligibility, commercial cannabis business owner and employee requirements, cannabis business location Limitations, commercial cannabis permit applications, renewals, transfers, denials and revocations, commercial cannabis businesses operating requirements, and enforcement; and WHEREAS, the text amendments contained in this ordinance would modify the City's Implementing Zoning Ordinance, Chapter 4, Section 4.030 — Allowable Land Uses and Permit Requirements and Chapter 28 — Glossary to implement the requirements in Section 3 10.15.040(A) of the Petaluma Municipal Code, and the City of Petaluma Commercial Cannabis Permit Regulations; and WHEREAS, the text amendments contained in this ordinance involve uses that are subject to compliance with all applicable state laws including the AVMA and the provisions of the California Department of Toxic Substance Control; and WHEREAS, the text amendments contained in this ordinance direct commercial cannabis businesses to appropriate business park and industrial zones where similar uses are already permitted, by allowing cannabis manufacturing and cannabis testing uses where non - cannabis manufacturing and testing facilities are currently allowed; and WHEREAS, the text amendments contained in this ordinance would allow qualified commercial cannabis businesses to operate under City issued permits to 1: ) re -tenant existing commercial and industrial facilities designed to support such uses; 2) replace, modify or otherwise reconstruct existing commercial and industrial facilities with a new structure of substantially the same size, purpose and capacity; and/or 3) construct new small structures including fences, gates, greenhouses, and small scale commercial and industrial facilities; and WHEREAS, on January 25, 2018, public notice of the February 13, 2018 Planning Commission meeting to consider the amendments to the Implementing Zoning Ordinance, Chapter 4, Section 4.030 — Allowable Land Uses and Permit Requirements and Chapter 28 — Glossary was published in the Argus -Courier and sent to all members of the public on the interested parties list for this item; and WHEREAS, on February 13, 2018, the Planning Commission held a duly noticed public hearing in accordance with Chapter 25 of the Implementing Zoning Ordinance to consider the amendments; WHEREAS, after the conclusion of said public hearing, the Planning Commission adopted Resolution No. 2018-05, recommending that the City Council adopt the amendments; and WHEREAS, on February 15, 2018, 2017, a public notice of the February 26, 2018 public hearing before the City Council to consider the amendments was published in the Argus - Courier; and, WHEREAS, on February 26, 2018, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments; and WHEREAS, on March 8, 2018, a public notice of the March 19, 2018 public hearing before the City Council to consider second reading of the Ordinance; and 0 WHEREAS, on March 19, 2018, the City Council of the City of Petaluma held a duly noticed public hearing to consider the amendments; and NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF PETALUMA AS Ife7wdAw Section 1. FINDINGS, The City Council of the City of Petaluma herebyfinds: 1. In accordance with Sections 25.010 and 25.050(B) of the City's Implementing Zoning Ordinance, Ordinance no. 2300N.C.S., ("IZO"), that the provisions amending the IZO, Table of Contents, Chapter 4, Section 4.030 — Allowable Land Uses and Permit Requirements and Chapter 28 — Glossary, as hereinafter set forth, (collectively, "the amendments"), are in general conformity with the Petaluma General Plan 2025 in that these changes do not change the type of uses allowed in the Business Park and Industrial Areas. 2. In accordance with Section 25.050(B) of the IZO, the proposed amendments are consistent with the public necessity, convenience and welfare in that they: a. Ensure Petaluma's land use and zoning regulations provide safe and appropriate locations where testing, manufacturing and sale by delivery of Adult and Medical Cannabis can occur consistent with Chapter 10.15 of the Petaluma Municipal Code, and the City of Petaluma Commercial Cannabis Permit Regulations adopted December 18, 2017; b. Comply with the Adult Use of Marijuana Act approved by California voters in November, 2017 and codified in California law as the MMRSA; c. Comply with California Business and Professions Code sections 26000 — 26231.2 which regulate the cultivation, distribution, transport, storage of adult use and medicinal cannabis products for patients with valid physician's recommendations and adults 21 years of age and over; and d. Provide for buffers to assure that establishments testing, manufacturing or selling cannabis products are a safe distance from schools, child care centers, parks, and residential land uses. 3. The proposed zoning text amendments are exempt from CEQA pursuant to CEQA Guidelines Sections 15061(b)(3), 15183, 15301, 15302, and 15303, in that commercial cannabis uses are only permitted in locations that already allow for similar non -cannabis uses, are subject to issuance of a commercial cannabis permit by the City of Petaluma Police Department, and are obligated to operate in accordance with State Law, Chapter 10.15 of the Petaluma Municipal Code and the City of Petaluma Commercial Cannabis Permit Regulations adopted December 18, 2017. 5 Section 2. Section 4.030 — Allowable Land Uses and Permit Requirements, Table 4.4 Allowed Land Uses and Permit Requirement for Commercial Business Park and Industrial Zones, City of Petaluma IZO, Ordinance No. 2300 N.C.S. is hereby amended to read as follows: Commercial, Business Park, and Industrial Zones TABLE 4.4 Allowed Land Uses and Permit Requirements for Commercial, Business Park, and Industrial Zones P(16) Permitted Use CUP Conditional Use Permit Required S Permit Requirement in Specific Use Regulations A Accessory Use — Use Not Allowed LAND USE TYPE (1) Permit Required by Zone Specific Use Regulations Cl- C2 BP i INDUSTRY, MANUFACTURING & PROCESSING Artisan/craft product manufacturing — — P P Catering service, as a primary use P(6) P(6) P P Furniture and fixtures manufacturing, cabinet shop — — — P Laboratory–Medical, analytical — — P P Laboratory - Cannabis — — P(18, 19) P(18, 19) Muni Code Chapter 10.15 Laundry, dry cleaning plants — — — P Manufacturing/processing – Light — — P P Manufacturing/processing–Medium intensity — — — P Manufacturing/processing– Cannabis — P(18, 19) P(18, 19) Muni Code Chapter 10.15 Media Production — — P P Petroleum product storage and distribution — — P CUP Printing and publishing — — P P Recycling facility — — P(11) P(11) Recycling facility– Scrap and dismantling yard — — — — Research and development — — P P Retail Sale and Delivery - Cannabis — P(18, 19) P(18, 19) Muni Code Chapter 10.15 Storageyard– outdoor — — — CUP Storage –warehouse, indoor storage — — — P Wholesaling and distribution — — P P Key to zone symbols: C1- Commercial 1 C2 – Commercial 2 BP – Business Park – Industrial Notes: (1) See Glossary for land use definitions (2) Home Occupation Permit and Business License Required (3) business License Required (4) business License & Compliance with Section 7.060 Required (5) Site Plan and Architectural Review Required & Compliance with Section 7.040 Required (6) Permitted use on an upper floor or behind a ground floor street fronting use; use in other locations allowed subject to a CUP (7) Permitted use (P) if limited to a maximum of 5,000 square feet on the ground floor (8) A CUP is required for overnight board and care (9) Neighborhood serving and open at lunch (10) Allowed only on floors above the ground floor (11) CUP required for overnight board and care (12) Urgent Care facilities may be located on the ground floor as a street fronting use (13) Allowed only in a shopping center (14) Permitted only on APN 137-061-019 & APN 048-080-036 (Corona Rd. at North McDowell Blvd.) (15) Use permitted on Lakeville Highway between Baywood Drive and Casa Grande Road (16) See section 21.30 (Residential Uses Abutting No -Residential Uses) (17) Short-term vacation rental permit, business license and transient occupancy tax certificate required (see section 7.110 of Implementing Zoning Ordinance) (18) Use must be at least 600 feet from a school or a childcare center, at least 200 feet from parks, youth centers, or the library, and 100 feet from residential districts as measured from property line to property line (19) All Cannabis Businesses must obtain an annual Commercial Cannabis Permit Section 3. Chapter 28, Glossary of the Implementing Zoning Ordinance, Ordinance No. 2300 N.C.S., definitions of ""Laboratory — Cannabis," and "Manufacturing — Cannabis," are hereby added to read as follows: • Laboratory — Cannabis —testing laboratories that offer or perform testing of cannabis or cannabis products in accordance with Petaluma Municipal Code sections 10.15.020 and 10.15.040, and the current City of Petaluma Commercial Cannabis Permit Regulations. • Manufacturing — Cannabis - businesses that manufacture and sell topical or edible cannabis products using cannabis infusions, infusion processes, or cannabis concentrates only business to business (non -retail) in accordance with Petaluma Municipal Code section 10.15.040 and the current City of Petaluma Commercial Cannabis Permit Regulations. Excludes manufacture of cannabis products involving volatile solvents, and repackaging cannabis or cannabis products or re -labeling cannabis or cannabis product containers. Retail Sale and Delivery — Cannabis — businesses that sell cannabis and cannabis products using a delivery -only method at a maximum of two different locations in the City, with no sale of cannabis or cannabis products to customers, primary care givers or qualified patients occurring at the business location, no customers, primary care givers or qualified patients permitted at the business location at any time and no signage at the business location or on the delivery vehicles indicating the presence of cannabis or cannabis products or that the seller sells cannabis or cannabis products in accordance With Petaluma Municipal Code sections 10.15.040 and 10.15.060, and the current City of Petaluma Commercial Cannabis Permit Regulations. Section 4. Except as amended herein, the City of Petaluma IZO, Ordinance No. 2300 N.C.S. remains unchanged and in full force and effect. 7 Section 5. Severability. If any section, subsection, sentence, clause, phrase or word of this ordinance is for any reason held to be unconstitutional, unlawful or otherwise invalid by a court of competent jurisdiction or preempted by state legislation, such decision or legislation shall not affect the validity of the remaining portions of this ordinance. The City Council of the City of Petaluma hereby declares that it would have passed and adopted this ordinance and each and all provisions thereof irrespective of the fact that any one or more of said provisions be declared unconstitutional, unlawful or otherwise invalid. Section 6. Effective Date. This ordinance shall become effective thirty (30) days after the date of its adoption by the Petaluma City Council. Section 7. Posting/Publishing of Notice. The City Clerk is hereby directed to publish or post this ordinance or a synopsis for the period and in the manner provided by the City Charter and other applicable law.