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  Time Set   # 23.       
  
Meeting Date: 09/14/2021  
Brief Title:    Cannabis Land Use Ordinance
From: Taro Echiburu, Director, Department of Community Services
Staff Contact: Leslie Lindbo, Chief Assistant Director, Department of Community Services, x8581

Subject
Hold a public hearing to consider adoption of the Cannabis Land Use Ordinance (CLUO) and take final action on related matters, including a General Plan amendment, ordinances amending County subdivision and zoning regulations, and certification of an Environmental Impact Report. (No general fund impact) (Echiburu/Lindbo)
Recommended Action
  1. Receive a staff report on the final Cannabis Land Use Ordinance (CLUO) and Final Environmental Impact Report (Final EIR), and related matters.
     
  2. Conduct a public hearing on the final CLUO to consider final actions as described below:
     
    1. Adopt a resolution certifying the CLUO Final EIR as complete and adequate under CEQA, which will allow for potential future CEQA streamlining by cannabis use permit applicants. (Attachments B and C)
       
    2. Adopt a resolution amending the General Plan to revise the text of Policy LU-1.1 and Table LU-4, modify Policies LU-2.3 and AG-1.3, and add new Policies LU-1.4 and AG-3.21.  This Resolution would also adopt the CLUO EIR Mitigation Monitoring and Reporting Program (MMRP).  (Attachments D and E)
       
    3. Adopt an Ordinance approving the final CLUO, by amending the County Code to add Article 14 (Cannabis Land Use Ordinance) to Chapter 2, Zoning Regulations, of Title 8. (Attachments F and G)
       
    4. Adopt an Ordinance amending the Subdivision Regulations in Section 8-1.802 (Streets) of the County Code to comport to CLUO Section 8-2.1408(K) (Driveway Access) to include standards related to access for new private driveways and encroachments. (Attachment H)
       
    5. Adopt an Ordinance making two additional amendments to the County Zoning Regulations to comport to the CLUO by eliminating Section 8-2.116 which prohibits medical marijuana dispensaries and by amending Section 8-2.217 (Use Permits) to clarify and expand the process for revocation or modification of a use permit.  (Attachments I and J)
       
  3. Direct staff to file a CEQA Notice of Determination.
     
  4. Direct staff, following adoption of the CLUO, to bring two additional clean up actions forward to the Board of Supervisors as soon as feasible:
    1. Adoption of an ordinance amending the County Marijuana Cultivation Ordinance to conform to the CLUO and moving it to Chapter 4 (Cannabis Licenses) in Title 12 (Business Licenses).
       
    2. Adoption of additional clean up amendments to the County Zoning Regulations to add allowed cannabis use types to each zone district table of permit and development requirements.
       
  5. Direct staff, following adoption of the CLUO, to immediately begin implementation of the CLUO.
Strategic Plan Goal(s)
Flourishing Agriculture
Robust Economy
Reason for Recommended Action/Background
At the meeting held July 27, 2021, the Board of Supervisors:
  • Received a presentation on the proposed final Cannabis Land Use Ordinance (CLUO);
  • Provided clarification and direction to staff on a handful of remaining items (see Attachment A, July 27, 2021 Board of Supervisors Minutes); and
  • Directed staff to return September 14, 2021, to conduct a final public hearing and take final action to certify the EIR and adopt the CLUO, and other related matters.
Revised Final CLUO
As compared to the version of the ordinance presented at the July 27, 2021 meeting, the revised final CLUO (Attachment G) includes the following key changes:
  • Revisions to Section 8-2.1404(B) to explain the transition process from the current annual licensing system to the requirements for Cannabis Use Permits.  A more detailed explanation is provided below.
     
  • Revisions to Section 8-2.1406(G) to reflect the possible use of a lottery for allocation of Cannabis Use Permits and limited license types outside of the Capay Valley, and clarify that rights to licenses in the Capay Valley cannot be transferred or sold to another licensee and if not exercised will be returned to the allocation pool for use outside of the Capay Valley.
     
  • Revisions to Section 8-2.1406(H) to clarify over-concentration as occurring in Capay Valley and nowhere else at this time, and establish an over-concentration threshold for new/relocated cannabis operators of no more than seven Cannabis Use Permits in any six-mile diameter area.
     
  • Revisions to Section 8-2.1408(E) to clarify buffers from residentially zoned land.
     
  • Revisions to Section 8-2.1410(A) to clarify the use of batch processing for Existing Licensees in the Capay Valley, and to clarify the appeals process for the Capay Valley.
     
  • Addition of Section 8-2.1410(H) to explain the process for determining application completeness, consistent with state law.
     
  • Revisions throughout the CLUO to establish the Planning Commission as the final decision-making authority, subject to appeal to the Board of Supervisors.
     
  • Various non-substantive clarifications and corrections.
Application Process and Schedule
The table below provides the Board with an updated task schedule for program implementation. This differs from the preliminary version shared with the Board on July 27, 2021 in the following ways:
  • The schedule overall is compressed by six months.
     
  • Existing Licensees may apply for permits between January and June of next year (2022) rather than January through December.
     
  • The target date for County action on all applications is now December 30, 2022, rather than June 30, 2023.
     
  • The target date for allocation of non-cultivation license types is now the first quarter of 2023 rather than the third quarter.
     
  • The target date for opening up the process to New Licenses is now April of 2023 rather than January of 2024.
     
  • The deadline for closure of Existing Licensees on residentially zoned land (previously shown as March 2022) is aligned with the deadline established for all other Existing Licenses (March 2023).
 YEAR  TASK
2021 October -- Assumed effective date for CLUO

October to December -- Program implementation
2022 January -- Existing Licensees may apply for use permits

June 30 -- Existing Licensees that do not apply will not be renewed for 2023

December 20 -- Target date for final action on CUPs for Existing Licensees
2023 January to March -- Target date for allocation of non-cultivation license types to approved use permits

March -- Existing Licensees on residentially zoned land must cease operations

March -- Existing licensees that do not apply must cease operation. Licensees in permit process may continue to operate (with valid license) through March 2024

April -- Target date for New Licensees to apply if allocations remain; license applications pending on June 29, 2021 have priority for first three months

October -- Two-year effectiveness assessment for CLUO

October -- Retail storefront applications may be accepted
2024 March -- Licensees without a use permit must cease operation

Responses to May 17, 2021 Sierra Club Letter
The County received a comment letter from the Sierra Club Yolano Group on the CLUO EIR on May 17, 2021, almost 17 months after the close of the extended 60-day comment period (October 25, 2019, to December 23, 2019) on the Draft EIR and more than eight months after release of the Final EIR (August 28, 2020).  Pursuant to Section 15088(a) of the CEQA Guidelines, the County is not required to respond to late comments.  The County nevertheless chooses to do so.  The letter and responses are provided in Attachments K and L, respectively.
Collaborations (including Board advisory groups and external partner agencies)
Since the July 27 Board of Supervisors hearing on this item, staff worked with internal departments to address Board direction. Staff has already started working on the regulatory transition process including specific administrative procedures. An internal team has been assembled and coordination with key departments, such as the Agricultural Commissioner’s Office, has begun. Online resources such as a Frequently Asked Questions (FAQs) web page are under development. Template application forms and instructions for applicants will be released in the first week of December 2021.  Two operator workshops are scheduled for December 8 and 16, 2021.  Cannabis Use Permit applications will be accepted starting January 3, 2022, subject to forms and instructions developed for that purpose.

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $  
Amount budgeted for expenditure:    $  
Additional expenditure authority needed:    $  
On-going commitment (annual cost):    $  
Source of Funds for this Expenditure
$0
Attachments
Att. A. July 27, 2021 Board of Supervisors Minutes
Att. B. CLUO EIR Certification Resolution
Att. C. EIR Certification Findings/Statement of Overriding Considerations (Exh. 1 to Att. B)
Att. D. CLUO GPA Resolution
Att. E. CLUO EIR MMRP (Exh. 1 to Att. D)
Att. F. CLUO Adoption Ordinance No. 1541
Att. G. Final CLUO (Exh. 1 to Att. F)
Att. H. CLUO Subdivision Ordinance No. 1542 Amendment
Att. I. Zoning Ordinance No. 1543 Amendment (Including Use Permit Enforcement)
Att. J. Use Permit Enforcement Ordinance Amendment (Exh. 1 to Att. I)
Att. K. Sierra Club May 17, 2021 Letter
Att. L. Sierra Club May 17, 2021 Responses
Att. M. Supp Doc 1 v 3 - Errata
Att. N. Supp Doc 2 v 3- Recommended Action
Att. O. Presentation

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Form Review
Inbox Reviewed By Date
Leslie Lindbo Leslie Lindbo 09/08/2021 08:54 AM
Phil Pogledich Phil Pogledich 09/09/2021 10:04 AM
Taro Echiburu Julie Dachtler 09/09/2021 10:37 AM
Eric Will Eric Will 09/09/2021 10:43 AM
Form Started By: Jeff Anderson Started On: 08/02/2021 12:52 PM
Final Approval Date: 09/09/2021

    

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