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HomeMy WebLinkAboutCD Cannabis Zoning ____________________________________________________________________________________ FOR CITY CLERK ONLY File No.: 10-1 x 287 Council Meeting: 3/05/2018 Disposition: Passed Ordinance No. 1955 to print Agenda Item No: 6.c Meeting Date: March 5, 2018 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Community Development Prepared by: Raffi Boloyan, Planning Manager City Manager Approval: ______________ TOPIC: Cannabis - Zoning Ordinance Amendments SUBJECT: Ordinance amending San Rafael Municipal Code Title 14 (Zoning), specifically amending selected chapters and sections to incorporate regulations for cannabis uses, including: a) add/modify definitions; b) add/modify land use tables; c) delete and update obsolete provisions; d) amend site and use and home occupations regulations; and e) add parking regulation. Case No. ZO17-003 EXECUTIVE SUMMARY: In response to State legislation related to cannabis, which became effective on January 1, 2018, the City has been studying numerous options for regulating the cannabis industry in San Rafael. The City Council convened an Ad-Hoc Subcommittee to research the matter and over the past three months the Council: a) adopted an Ordinance for regulating and licensing certain cannabis-related businesses; and b) established a pilot program specifying the maximum number of licenses the City will initially issue for each type of allowable cannabis-related establishments. These actions approved a limited number of licenses in each of the following three business types in the entire Cannabis business chain: Cannabis testing/lab (4 licenses), manufacturing cannabis-infused products (8 licenses) and cannabis delivery (4 licenses). The Council has specified that the only businesses in these three facets that will be considered in San Rafael are medicinal, with the exception of testing/lab, which would allow testing of both medicinal and recreational adult use products. The Zoning Ordinance amendments are proposed to establish the zoning regulations for these uses. Following extensive research and review, staff recommends that: a) Cannabis testing/lab, product infusion and delivery businesses be allowed in the Industrial, Industrial Office and Core-Canal Industrial/Office zoning districts; b) Cannabis testing/lab and delivery be allowed in the Office and Commercial/Office zones; and c) Cannabis-infused products be allowed in the Commercial/Office zoning districts. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 The regulatory scheme that is proposed follows the structure of City’s Massage Ordinance, where the regulation/licensing of these uses would be administered through a separate license process contained in the Municipal Code (SRMC 10.96 adopted in Dec 2017), not a land use entitlement such as a Use Permit. The Zoning Ordinance would solely specify the zoning districts within which the uses would be permitted (e.g., no Use Permit required) and a potential business would then apply for license. Therefore, there are a series of proposed amendments to the Zoning Ordinance to add/modify definitions, amend the land use tables, establish parking standards for the new uses and modify/clarify other portions of the zoning ordinance (explained below). The Planning Commission reviewed and recommended approval of these amendments at its February 13, 2018 meeting. (Attachment 2.) RECOMMENDATION: Hold a public hearing and pass ordinance to print. BACKGROUND: Ballot initiatives and State law in 2016 have made both adult use and medicinal cannabis uses legal in California. Cities throughout the state have been considering their local regulations and whether to allow such uses in their communities. The Medical Cannabis Council Ad-Hoc Subcommittee (MC Subcommittee) as well as the City Council have been considering the City’s position since January 2017 and in the last three months, have adopted: • Ordinance No. 1949, adopted December 4, 2017, amending the City’s Municipal Code and adding a new Chapter (SRMC 10.96) regulating commercial cannabis activity in San Rafael city limits and identifying the three types of medicinal cannabis business that would be allowed in San Rafael. A copy of this Ordinance is provided as Exhibit 2 of the February 13, 2018 Planning Commission Staff Report (pages 27-39). • Resolution No. 14455, approved January 16, 2018, establishing a one-year pilot program and outlining the application process/requirements and establishing the number of licenses that will be allowed for each type of allowable cannabis-related business. A copy of this Resolution is provided as Exhibit 3 of the February 13, 2018 Planning Commission Staff Report (pages 28- 51). o Cannabis testing/lab (medicinal and recreational adult use) – 4 licenses o Cannabis infused products (medicinal) – 8 licenses o Cannabis delivery (medicinal) – 4 licenses A complete background on State law and the City’s actions in the past year is included in the background section of the attached February 13, 2018 Staff Report to the Planning Commission (see pages 2-4). PROJECT DESCRIPTION: The City must next establish the land use/zoning rules for allowing cannabis-related uses. Specifically, the land use/zoning regulations must establish the type of cannabis-related uses that will be allowed, where those uses will be allowed in the City, and whether land use permits are required for cannabis- related uses. The State law went into effect January 1, 2018, at which time the State commenced issuing licenses for cannabis uses. Therefore, the ordinance amendments to the City’s Zoning regulations are proposed to SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 provide a clear statement as to which commercial cannabis activities will be permitted in San Rafael. Therefore, edits proposed to SRMC Title 14 (Zoning Ordinance) include the following: ➢ Establish definitions for cannabis-related businesses; ➢ Identify commercial, office and industrial districts within which cannabis-related uses would be permitted; ➢ Add language clarifying prohibition of cannabis-related business in certain overlay districts and as home occupations; ➢ Amend prior zoning regulations pertaining to medical marijuana; and ➢ Add parking standards for cannabis businesses. The proposed code amendments are included as Exhibit A to Attachment 1, the Draft Ordinance. A summary of the specific Zoning Ordinance amendments by chapter, is provided as follows: 1. Chapter 14.03 Definitions - Chapter 14.03 presently includes a definition “Medical marijuana dispensary,” which is proposed to be deleted. Given that the Council and the MC Subcommittee have identified certain types of medical cannabis uses that will be considered for San Rafael, new land use classifications must be added to the Zoning Ordinance. Therefore, the following new definitions are proposed to be added to SRMC 14.03 (Definitions) related to cannabis uses. “Cannabis, “Cannabis Testing/lab”, “Cannabis Delivery”, “Cannabis Infused Products” “Dispensary” “and Medical cannabis/medicinal cannabis.” 2. Chapter 14.05.020 – Land Use Regulations (GC, NC, O, C/O, R/O, FBWC) - Modify the land use table for the Commercial Zoning Districts (Table 14.05.020) by adding the following land use classifications to allow “cannabis testing/lab” and “cannabis delivery” in the “Office (O)” and “Commercial/Office(C/O)” zoning districts. In addition, cannabis infused products are proposed to be added to the C/O District. • “Cannabis testing/lab” and “cannabis delivery” are proposed to be permitted by right (P), in the Office (O) and Commercial/Office (C/O) zones. That means that they can operate without a requirement to obtain a Use Permit, but will still have to comply with the licensing process established by Chapter 10.96 and City Council resolution which establishes a limit on number of cannabis businesses by each business type. • “Cannabis infused products” are proposed to be permitted in the Commercial/Office (C/O) District. There is a state requirement that any cannabis business be more than 600 feet away from a school (per state law) which would be disclosed under footnote 33 of the table. Staff is also proposing an additional separation requirement of 300 feet away from nearest residential zoning district (single family, medium density or high density residential districts), which is disclosed under footnote 32 of the table. Businesses that do not meet the separation requirements would otherwise be prohibited. • All proposed new cannabis-related uses would be prohibited in the General Commercial (GC), Neighborhood Commercial (NC), Residential/Office (R/O) and Francisco Blvd West (FBWC). 3. Chapter 14.06.020 – Land Use Regulations (I, LI/O, CCI/O, LMU) - Modify the land use table for the Industrial zoning districts (Table 14.06.020) by adding the following land use classifications to allow “cannabis testing/lab,” “cannabis delivery” and “cannabis infused products” in the “Industrial (I)”, “Light Industrial/Office (LI/O)” and “Core Canal Industrial/Office (CCI/O)” zoning SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 districts. The draft amendments also propose a “spacing requirement” that the cannabis-related use be more than 600 feet away from a school (per State law). • The new uses are proposed to be permitted by right (P), in the I, LI/O and CCI/O Districts. That means that they can operate without a requirement to obtain a Use Permit, but will still have to comply with the licensing process established by Chapter 10.96 and City Council Resolution which establishes a limit on number of cannabis businesses by each business type. • The new uses would be prohibited in the Lindaro Mixed Use (LMU) District, given that all of that District falls within 600 ft. of Davidson Middle School. 4. Chapter 14.13.030 – Land Use Regulations (-WO) - Proposed changes to the Wetland Overlay (-WO) District table would clarify that the current land use of “Agriculture, cultivation of crops” does not include cultivation of cannabis. This change consists of a new note that would be added under the “Additional Use Regulations” column which excludes cultivation of cannabis. 5. Section 14.16.245 – Prohibition on Medical Marijuana dispensaries - The current Zoning Ordinance includes a prohibition on medical marijuana dispensary (SRMC 14.16.245). This code was established in 1997, following the passage of SB 215, which allowed for medical marijuana use. This section is proposed for deletion. 6. Section 14.16.045 - Cannabis Uses - A new, more comprehensive statement, is proposed to be added as 14.16.045 to clarify the City’s zoning regulations pertaining to cannabis uses following the passage of the Proposition 64. 7. Section 14.16.220 - Home Occupations - San Rafael currently has a home occupation ordinance, which allows for home occupation businesses to occur within a residence, as long as the business is conducted as an accessory business use to the residence. 8. Chapter 14.18 (Parking Site and Use Regulations) - Given the introduction of new land use categories in the land use tables, there is also a need to establish a parking standard for those new land use types. Given that the types of cannabis related land uses that are proposed to be allowed in San Rafael are not retail based, parking requirements would be similar to other distribution or manufacturing or laboratory type of uses already contained in the zoning ordinance, which would be 1 space for every 500-sq. ft. of building area. Therefore, the new parking standards are proposed to be inserted in the location of Chart 14.18.040 ANALYSIS: San Rafael General Plan 2020 Consistency: The proposed Zoning Ordinance text amendment would be consistent with the applicable San Rafael General Plan 2020 policies contained in the Land Use and Economic Vitality Elements as noted in detail in the of the attached February 13, 2018 Staff Report to the Planning Commission (Page 11). Zoning Ordinance Consistency: As proposed, the text amendments to the Zoning Ordinance would be consistent with the San Rafael Zoning Ordinance (Title 14). Adding zoning regulations pertaining cannabis-related uses would further implement the State Law (Proposition 215) and the City’s Urgency Ordinance (Ord.1949) and would facilitate implementation of Resolution 14455 by identifying the districts within which cannabis-related uses would be allow in the City of San Rafael. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 5 The proposed Zoning Ordinance amendments would add definitions for these new uses; land use allowances identify Zoning Districts within which each of these uses would be allowed; establish parking requirements for these types of uses; and provide other clean up and clarifications. Once a business identifies an appropriate location based on the allowable uses and locations established by the proposed Zoning amendments, all businesses would still need to: comply with State laws and the State’s permitting process; comply with the local permitting and license process regulating cannabis; and be within the maximum number of licenses established by the Council (SRMC 10.96) and follow the recommendations of the MC Subcommittee and prior Council action. The regulatory scheme that is proposed is that the zoning would only establish areas these new businesses could operate. No land use permit (i.e. Use Permit) is proposed to be required. The application process and approval of businesses, licensing, and enforcement would be administered through a separate chapter regulating business operators in the Municipal Code. This sort of regulatory framework is similar to the City’s Massage Ordinance and is focused on licensing the operator, and not granting of a land based entitlement. The regulatory scheme is proposed since most of the regulation related to cannabis business is not land use related, but rather business specific and it is recommended that the best manner in which to regulate this is through the business ordinance, not zoning. Furthermore, if cannabis uses were regulated through a land use entitlement, the approval would run with the land, not the specific operator. Below is a summary of the proposed changes to the land use tables. The specific amendments to Zoning Ordinance are included as Exhibit A to the Draft Ordinance (Attachment 1): Industrial Zoning Districts, • Lab/testing, delivery and production infusion are types of businesses that would be similar to business types that are currently allowed in these districts. The only difference is that they include cannabis. For example, delivery of any products is already allowed in these districts, • All three of the use types are proposed to be allowed in the Industrial (I), Light Industrial/ Office (LI/O) and Core Canal Industrial/Office (CCI/O) Districts, but not in the Lindaro Mixed use permit (LMU). The reason they are not proposed for the LMU District is that State law prohibits any cannabis business to be located within 600 feet of a school, and all of the LMU District falls within that distance of Davidson Middle School. • In all cases, based on State law, any cannabis use in the I ,LI/O and CCI/O districts would be prohibited if located within 600 feet of a school and the separation requirement will be checked prior to providing any zoning clearance. Commercial Zoning Districts • All three of the use types are proposed to be allowed in the Commercial/Office (C/O) District, but delivery and testing/lab would only be allowed in the Office (O) District. The reason infused products is not proposed to be allowed in the O Districts is that the O District typically has office buildings, with multi-tenant spaces in an office setting, and infused products use would not be similar to other uses in those area. Infused products includes assembly or production of some sort of food, cream or other product and the assembly or making of products would not be compatible with typical office uses. In the C/O District, there are more commercial buildings, that would be more appropriate to have a use that makes a product and infuses it with cannabis. • In all cases, based on State law, any cannabis use is prohibited if located within 600 feet of a school and the separation requirement will be checked prior to providing any zoning clearance. In addition, given the potential odor and hours of operation impacts form a SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 6 cannabis infusing business, it may not be compatible with residential nearby. Since a majority of the C/O Districts are near residential districts, a requirement has also been included to prohibit the use if within 300 ft of a residential district. To visually understand the locations where these Zoning Districts proposed for cannabis uses are located, staff has included the applicable sections of the Zoning Map, which are Exhibit 4 to the February 13, 2018 Planning Commission Staff Report (pages 52-68). The limitations established by the Council on the number of licenses that can be issued in San Rafael for the three different cannabis uses (delivery, testing/laboratory and infused products) would prevent an onslaught of such uses and prevent overwhelming the City’s limited industrial and light industrial base to the detriment of the City. The key is that these three specific types of cannabis uses have been selected given that the function and nature of these uses is really no different than other businesses that may perform the same functions in those same districts. Staff notes that there is one extremely minor change that has been added to the draft Ordinance, which was not part of the Planning Commission review. A proposed footnote (footnote #33) to the Office and Commercial/Office zoning districts has since been added to the land use table to clarify that there is a 600 ft. separation requirement from schools. That footnote was contained in the Planning Commission’s review, but wasn’t noted in the land use table. PLANNING COMMISSION REVIEW AND RECOMMENDATION: The Planning Commission conducted a public hearing on February 13, 2018, to review the proposed amendments. The Commission accepted the staff report, and conducted a public hearing. One member of the public spoke at the hearing inquiring why the cannabis uses weren’t allowed in the Planned Development zoning districts, and noted that cannabis uses could displace light industrial uses given the economics of the cannabis industry. The Commission posed a variety of questions about both the proposed zoning amendments as well as State law, the pilot program, and what other communities are doing on this topic. In conclusion, the Commission found that the proposed amendments were appropriate and voted to adopt Resolution No. 18-03 (Attachment 2), recommending approval of the zoning amendments to the City Council. The vote was 5-1-1 (Commissioner Paul voting no and Commissioner Loughran absent). Commissioner Paul dissented, finding that the proposed, one-year pilot program (which has no renewal clause) would severely limit potential new businesses from realistically being able to find a lease and opening. Commissioner also expressed concern that it was premature to make any changes to zoning until a decision on the local tax is made and election results are received. Video proceedings from this meeting can be viewed here. COMMUNITY OUTREACH: Over the past year, there has been significant discussion by the City about the development of a cannabis policy. Notice of this hearing, and the prior Planning Commission hearing were published in the Marin IJ, 15 days before each hearing. A copy of the public hearing notice for this hearing is attached (Attachment 3). To date, staff has not received any inquiries or comments about the proposed amendment to the Zoning Ordinance. FISCAL IMPACT: These zoning amendments incorporate appropriate land use regulations for cannabis businesses could have fiscal impact, both potential for revenue and additional staff costs to regulate the businesses. Those fiscal impacts are part of additional considerations by the Council, and not part of this action SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 7 This action before the Council is one step in the city’s overall process to develop regulations for cannabis businesses. The fiscal impact from this action is limited to the staff time to analyze the potential zoning edits and prepare the draft ordinance and this report. OPTIONS: The City Council has the following options to consider on this matter: 1. Pass the Ordinance to Print. 2. Pass the Ordinance to print with modifications. 3. Direct staff to return with more information. 4. Refer the Ordinance to the Planning Commission for consideration of further revisions. RECOMMENDED ACTION: It is recommended that the City Council hold a public hearing and pass the Ordinance to print. ATTACHMENTS: 1. Draft Ordinance 2. Planning Commission Resolution No 18-03, recommending approval of the amendments to the City Council 3. Public Hearing Notice published in Marin IJ for City Council hearing ORDINANCE NO. 1955 ORDINANCE OF THE CITY OF SAN RAFAEL CITY COUNCIL AMENDING SAN RAFAEL MUNICIPAL CODE (SRMC) TITLE 14 -ZONING, SPECIFICALLY AMENDING SELECTED CHAPTERS AND SECTIONS TO INCORPORATE ZONING REGULATIONS FOR CANNABIS USES, INCLUDING: 1) ADD DEFINITIONS (SRMC 14.03), LAND USE PROVISIONS (SRMC 14.05 AND 14.06) AND PARKING REQUIREMENTS (SRMC 14.18) FOR CANNABIS BUSINESSES WITHIN THE CITY LIMITS, SPECIFICALLY MEDICAL CANNABIS DELIVERY, MEDICAL CANNABIS PRODUCT INFUSION, AND CANNABIS TESTINGILAB USES; 2) PROHmIT ALL OTHER MEDICINAL AND ADULT USE CANNABIS BUSINESSES, INCLUDING CULTIVATION (SRMC 14.16 AND 14.13); AND 3) UPDATE THE HOME OCCUPATION STANDARDS AND SITE AND USE STANDARDS (SRMC 14.16) TO REFLECT THE PROPOSED CANNABIS REGULATIONS; (FILE NO. ZOI7-003) WHEREAS, the City of San Rafael has prohibited medical cannabis dispensaries since 1997, in response to the passing of the 1996 Compassionate Use Act, a ballot initiative known as Proposition 215. Since that time, no cannabis businesses have been permitted in City limits; and WHEREAS, on November 8, 2016, the voters of the State of California enacted Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) to allow for nonmedical/recreation adult-use. Cities and counties throughout California are revisiting local cannabis regulations to address a legal cannabis regulatory landscape; and WHEREAS, Proposition 64 allows for nonmedical/recreation adult-use. The developing regulatory framework in AUMA establishes a comprehensive system to legalize, control and regulate the cultivation, processing, manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis; and WHEREAS, Proposition 64 reserves to local jurisdictions the right to impose additional local regulations on medical and nonmedical/recreation adult-use commercial activities, and to prohibit them entirely if they choose to do so. WHEREAS, in January 2017, San Rafael City Council reviewed the statutory law of AUMA and instructed staff to form a City Council ad-hoc subcommittee to review San Rafael's cannabis policies. The Medical Cannabis Council Ad-Hoc Subcommittee (MC Subcommittee) included Council member Kate Colin and Councilmember John Gamblin and City staff from various departments; and WHEREAS, In July 2017, the Governor signed Senate Bill 94, entitled the Medical and Adult- Use Cannabis Regulation and Safety Act (MAUCRSA), which took effect immediately; and WHEREAS, over the course of several months, the MC Subcommittee reviewed all license types available under the State's medical cannabis framework Medical Cannabis Regulation and Safety Act of 2015 (MCRSA) to develop a set of recommendations for full Council consideration; and WHEREAS, the MC Subcommittee reviewed federal and state regulatory milestones to understand the evolution of legal medical and nonmedical/recreational adult use cannabis and the implications for the City of San Rafael. The MC Subcommittee decided to only focus on medical, while prohibiting nonmedical/recreational adult-use commercial cannabis activities for now. Consensus was reached on exploring a limited number of medical cannabis permits in San Rafael and was to be forwarded to the full Page 1 \ City Council for review and action. The consensus was to meet the following objectives: a) Discreet, low impact and minimal public interface; b) Provide safe patient access, c) Improve transparency and reduce public safety risks; d) Add new revenue to support city infrastructure and services; e) Create new jobs, produce artisan products; and t) Promote a diversified economy; and WHEREAS, on December 4, 2017, the Council conducted a public hearing to consider an Urgency Ordinance. In conclusion, the Council adopted Ordinance No. # 1949, amending the San Rafael Municipal Code (SRMC) to add a new Chapter (SRMC 10.96) regulating commercial cannabis activity in San Rafael city limits, as an Urgency Ordinance, in order to advance local regulations before the State of California begins accepting commercial cannabis applications on January 2, 2018; and WHEREAS, Urgency Ordinance No. 1949 was adopted for the immediate preservation of the public peace, health or safety, because without a clear statement as to which commercial cannabis activities will be permitted in San Rafael, there is a possibility that state law will issue licenses for a much wider variety of commercial cannabis activities in the City than the MC Subcommittee has recommended. The urgency Ordinance established the following: Permitted Medical Cannabis Commercial Operations Authorize a limited number of commercial medical cannabis operator licenses: • Medical cannabis delivery (State License Type 9) • Medical cannabis product manufacturing, ie infused products (State License -Class N) • Cannabis testing lab (State License -Type 8). The State of California will only be providing cannabis testing labs with one license to service both medical and nonmedical/recreational adult-use for public safety reasons. Prohibited Medical Cannabis Commercial Operations The new ordinance prohibits the following commercial medical cannabis activities: • Cultivation, processing and some manufacturing activities • Dispensaries Prohibited NonmedicallRecreation Adult-use Cannabis Commercial Operations The new ordinance also prohibits: • All commercial nonmedical/recreation adult-use cannabis activities allowed under AUMA pending further staff reviews of the State's new MA UCRSA regulations. WHEREAS, on January 16, 2018, the Council conducted a public hearing and considered a Resolution outlining the application process/requirements and establishing the number of licenses; and. WHEREAS, on January 16, 2018, the City Council adopted Resolution No. 14455, which approved the application process/form and established the following number of licenses: a) Four (4) licenses for Cannabis testing/lab (medicinal and adult use); b) Eight (8) licenses or Cannabis infused products (medicinal); and c) Four (4) licenses for Cannabis delivery (medicinal); and WHEREAS, following the Council's adoption of Ordinance No. 1949 to establish SRMC 10.96 for the regulation and licensing of medicinal Cannabis businesses and the adoption of Resolution No. 14455 to create a pilot program with license limits, the City must next establish the land use/zoning rules for allowing cannabis-related uses, specifically the type of cannabis-related uses that will be allowed, where those uses will be allowed in the city and whether land use permits are required for cannabis uses; and .,. ..... Page 2 WHEREAS, City staff initiated amendments to SRMC Title 14 (Zoning Ordinance) to implement the prior actions and outline appropriate Zoning Districts for the new uses and public notice for the amendments to the Zoning Ordinance were noticed in the Marin Independent Journal on January 30, 2018; and WHEREAS, on February 13,2018, the Planning Commission held a duly-noticed public hearing on the proposed amendments to the San Rafael Municipal Code, Title 14, accepting all public testimony and the written report of the Department of Community Development; and WHEREAS, on February 13, 2018, the Planning Commission adopted Resolution No. 18-03, recommending approval ofthe Zoning Ordinance amendments to the City Council by a vote of 5-1-1, with Commissioner Paul dissenting and Commission Loughran absent; and WHEREAS, on March 5, 2018, the City Council held a duly-noticed public hearing through a public notice published the Marin Independent Journal on February 17,2018. The Council considered the proposed amendments to SRMC Title 14 (Zoning Ordinance), accepting all public testimony and the written report of the Community Development Department; and WHEREAS, the amendments to the SRMC Title 14, do not propose any changes to City policies or regulations that would result in a direct or indirect physical, environmental impact; therefore it has been determined that this ordinance amendment is covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and is not subject to environmental review; and WHEREAS, the City Council makes the following findings, pursuant to SRMC Section 14.27.060 for adoption of the amendments to SRMC, Title 14 (Zoning Ordinance), as outlined in Exhibit A: 1. The amendments to SRMC, Title 14 (Zoning Ordinance) are consistent with the policies and programs of the San Rafael General Plan 2020 in that: a. As proposed, the amendments would update the Zoning Ordinance to 1) incorporate the definitions, land use allowances and parking requirements for cannabis uses into the Zoning Ordinance; 2) delete or update obsolete provisions; 3) update existing Site and Use regulation related to cannabis-related uses; and 4) update Home Occupations regulations to clarify the City's intent for cannabis uses as home occupations. This action would be consistent with General Plan Program LU-23a (Zoning Ordinance Amendments), which encourages periodic updates to the Zoning Ordinance in order to maintain a current and internally consistent code; and reflect the prior actions by the Council. b. As proposed, the amendments would be consistent with Land Use (LU) Policies LU-J4 (Land Use Compatibility), LU-J6 (Building and Automotive Services) and LU-J7 (Limited Retail and Service Uses in industrial and Office Areas) and LU-22 (Odor Impacts). The Zoning Ordinance amendments to allow certain cannabis-related uses in the Industrial and limited commercial area would be compatible with other testing, manufacturing and delivery types of uses in those area. Additional regulations specific to cannabis-related business would assure limited interface with residential or school uses. In addition, the limitations that will be established on the number of licenses through adoption of a separate City Council Resolution will minimize the potential for cannabis uses to take over the City's limited industrial and light industrial areas or to impact certain important uses such as building and automotive services. Furthermore, no retail uses of cannabis are proposed Page 3 to be allowed, therefore, the amendments will not impact the City's limited industrial areas. Although the three types of cannabis uses proposed to be allowed in San Rafael would include certain office areas, specifically the CommerciaVOffice land use designation, the City does have an overabundance of office space and high vacancies that can absorb the limited number of cannabis uses. Lastly, any potential odor impacts from cannabis uses would be regulated through the licensing process and the types and quantities of cannabis that can be stored in these uses will be minimal. c. As proposed, the amendments would be consistent with Economic Vitality Element (EV) Policies EV-J (Economic Health and Quality of Life), EV-2 (Seek, Retain and Promote Business that Enhance San Rafael), EV-6 (Shop Locally) and EV-8 (Diversity of our Economic Base). With the passage of the new state law, there is significant demand and interest in a wide range of cannabis uses throughout the State. Each City and county is evaluating this topic and evaluating options for how their communities will address cannabis uses. The cannabis industry and the potential for taxation can bring significant financial benefits to a community. In addition to establishing the regulatory framework and the types of cannabis uses that will be allowed in the City of San Rafael, the City is also exploring options to modify the City's taxing authority to collect taxes on the businesses within the City of San Rafael. It is likely that a ballot initiative will be considered to establish a local cannabis excise tax in the near future. These proposed amendments would open the City to accommodate a few types of uses in the cannabis business chain, in limited numbers. The addition of these businesses will diversify the city's economic base, especially at a time where the retail industry is changing, and thereby affecting the City' tax base. 2. The public health, safety and general welfare are served by adoption of the proposed Zoning Ordinance amendments, in that they would: a) correct errors and inconsistencies and delete obsolete code provisions; b) incorporate new code provisions to address a State-wide voter initiative to allow for nonmedicaVrecreation adult-use cannabis activities; c) Reflect the San Rafael City Council's prior actions to allow certain cannabis-related uses; c) implement policies and programs in the San Rafael General Plan 2020 that encourage periodic update to the Zoning Ordinance and ensure consistency with the General Plan; and d) promote existing and new businesses and industry to serve residents of San Rafael and Marin County. NOW, THEREFRORE, THE CITY COUNCIL OF TEHE CITY OF SAN RAFAEL DOES HEREBY ORDAIN AS FOLLOWS: DIVISION 1. Findings The City Council of the City of San Rafael hereby determines and finds that all of the facts and statements contained in the recitals herein and the finding of Planning Commission Resolution 18-03, Page 4 adopted February 13, 2018, recommending to the City Council adoption of this Ordinance are true and correct. DIVISION 2. Approval The City Council of the City of San Rafael hereby approves and adopts the amendments to SRMC Title 14 (Zoning Ordinance), as presented in Exhibits "A", attached hereto and incorporated herein by reference. DIVISION 3 . Publication A summary of this Ordinance shall be published and a certified copy of the full text of this Ordinance shall be posted in the office of the City Clerk at least five (5) days prior to the Council meeting at which it is adopted. This Ordinance shall be in full force and effect thirty (30) days after its final passage, and the summary of this Ordinance shall be published within fifteen (15) days after the adoption, together with the names of those Council members voting for or against same, in the Marin Independent Journal , a newspaper of general circulation published and circulated in the City of San Rafael, Marin County, State of California. Within fifteen (15) days after adoption, the City Clerk shall also post in the office of the City Clerk a certified copy of the full text of this Ordinance, along with the names 0 those Councilmembers voting for or against the Ordinance. ATTEST: LINDSAY LARA, City Clerk The foregoing Ordinance No. 1955 was read and introduced at a regular meeting of the City Council of the City of San Rafael on Monday, March 5, 2018 and was ordered passed to print by the following vote, to wit: AYES: Councilmembers: Bushey, Colin, Gamblin, McCullough & Mayor Phillips NOES: Councilmembers: None ABSENT: Councilmembers: None And will come up for adoption as an Ordinance of the City of San Rafael at a Regular Meeting of the Council to be held on the 19 th day of March 2018. Exhibit A- LINDSAY LARA, City Clerk Amendments to San Rafael Municipal Code (S RMC) -Title 14 (Zoning Ordinance) Page 5 Attachment 1 -Exhibit A Amendments to San Rafael Municipal Code (SRMC) Title 14 -Zoning The following sections of the San Rafael Municipal Code (SRMC) Title 14 -Zoning are hereby amended as follows: Chapter 14.03 -Definitions 1. Amend the list of definitions in Section 14.03.030 by inserting new definitions, as identified by underline/italics, in alphabetical order, as follows: "Cannabis" means all parts of the plam 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 oUhe plant. its seeds, or resin. "Cannabis" also means the separated resin, whether crude or purified. obtained from cannabis. "Cannabis" does not include the mature stalks oUhe plant. fiber produced from the stalks, oil or cake made from the seeds of the plant. any other compound, manufacture. salt, derivative, mixture. or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil. or cake. or the sterilized seed oUhe plant which is incapable of germination. For the purpose of this division, "cannabis" does not mean "industrial hemp" as defined by Section 11018.5 oUhe Health and Safety Code. "Cannabis Testing/lab" means a laboratory. facility. or entity in the state that offers or performs tests of cannabis or cannabis products (either medicinal and adult use) as further defined in SRMC 10.96.040. This sort of use is regulated by the State of California as a Type 8 Cannabis license. "Cannabis Delivery" means the commercial transfer of medicinal cannabis or cannabis products to a cllstomer. "Delivery" also includes the use by a retailer of any technology platform. This sort of use is regulated by the State of California as a Type 9 Cannabis license. "Cannabis Infused Products" means producing edible or topical products that include pre extracted cannabis oils. to create edibles. beverages. capsules. vape cartridges tinctures or topical for medicinal purposes. This sort of use is regulated by the State of California as a Class N (Infusions) Cannabis license. Cannabis infused products may also include shared use ofa facility by multiple businesses that perfoml cannabis infused products. (similar to a commercial kitchen). Shared product infusion is regulated by the State of California as Type S Cannabis license. Distribution and transport of cannabis infused products as part of normal operations of the business is considered an ancillary use to this category and therefore allowed Attachment 1-Exhibit A Page 1 of6 "Dispensmy" means a storefront or 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. "Medical cannabis" or "medicinal cannabis" means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), as further defined by SRMC 10.96.040. 2. Amend the list of definitions in Section 14.03.030 by deleting the following existing definition in it's entirety, as noted by strikethrough text, as follows: "A1edical marijuana dispensary" which is means a facility where marijuana is made availahle far medical purpeses in accerdtillce with Health and Se,fety Cede SectielZ 11362.5 (Prepesitiell 215). Chapter 14.05.020 -Land Use Regulations (GC, NC, 0, C/O, RIO, FBWC) 3. Amend Table 14.05.020 by inserting new land use classifications, land use allowance and additional use regulations, as noted by underline/italics, in the location specified below, as indicated below: Table 14.05.020 Type of Land Use GC NC 0 C/O RIO FB Additional WC Use * Regulations Printing shops P P P CZ Cannabis Related Uses Cannabis P (331 P (331 *Subiect to Testingllab additional regulations and pennitting (See SRMC Chapter 10.961 Attachment 1-Exhibit A Page 2 of6 Cannabis P (331 P(331 *Subiect to Delivery additional regulations and l2.ermitting (See SRMC Clwl2.ter 10.961 Cannabis P(32 Infused & 331 Products Card rooms See Chapter 10.36 4. Amend the footnotes to the Table 14.05.020 by inserting new footnotes, noted by underline/italics. in numerical order specified below, as indicated below: (321 Shall not be located within three hundred (3001 feet away of a residential zoning district (R. DR or HR1. as measured from the property lines of each parcel. Ifwithin 300 ft. then use is l2.rohibited. (331 Shall not be located within 600 feet from schools (eublic and l2.rivate 1. as measured from the l2.r0l2.erty lines of each l2.aJ"Cel. Chapter 14.06.020 -Land Use Regulations (I, LIIO, CCIIO, LMU) 5. Amend the Table 14.06.020 by inserting new land use classifications, permitting authority and additional use regulations, as noted by underline/italics, in the location specified below, as indicated below: Table 14.06.020 Types of Land 1 LIIO CCIIO LMU Additional Use Use Regulations Printing P P P P Shops Cannabis Related Uses Attachment 1-Exhibit A Page 3 of6 Cannabis PU1 PU1 J!..11l *Subiect to Testing! additional lab regulations and eermitting (See SRMC ChaQter 10.961 Cannabis J!..11l PU1 P (11 *Subiect to Delivery additional regulations and Qennitting (See SRMC ChaQter 10.961 Cannabis PU1 PU1 P (11 *Subiect to Infused additional Products regulations and Qennitting (See SRMC ChaRter 10.961 Card Rooms C See Chapter 10.36 6. Amend the footnotes Table Section 14.05.020 by inserting a new footnote, noted by llllderlille/italics. as specified below, as indicated below: (11 Shall not be located within 600 feet from schools wublic and erivate 1. as measured from the QroQerty lines of each earcel. Chapter 14.13.030 -Land Use Regulations (-WO) 7. Amend the land use table in Section 14.13.030 by inserting new language under the "Additional Use Regulations" column, noted by llIzderlille/italics, as indicated below: Table 14.13.030 Type of Land Use WO Additional Use Regulations Agriculture, cultivation of crops C Excludes cultivation o[ cannabis, which is Qrohibited throughout the Citv o[San Ra[ael Attachment 1-Exhibit A Page 4 of6 Chapter 14.16.245 -Prohibition on Medical Marijuana dispensaries 8. Delete Section 14.16.245 in its entirety, as noted by slrikethr8ugh, as indicated below: 14.16.245 Medical marijuaRa dispeRsary. A medical marijuaRa dispeRsary is Rot aR allowable use withiR aRY district of the city. Chapter 14.16.045 -Cannabis Uses 9. Add a new Section 14.16.045, by inserting new title and text, as noted by ullderlille/italics, as indicated below: 14.16.045 -Cannabis Uses Specific medical cannabis uses are allowed by the Zoning Ordinance. as specified in the land use tables and as defined by the definition chapter. including and limited to cannabis testingllab (both medicinal and recreational adult use). cannabis infused products (medicinal only) and cannabis delivery (medicinal only). All other medicinal or recreational medical cannabis uses. such as dispensaries. cultivation. and processing are prohibited. The land use regulations contained pertaining to cannabis in this Title do not apply to personal cultivation or use of cannabis. Personal cultivation and use of cannabis shall be subject to State law and any limitation imposed by state law. Chapter 14.16.220 -Home Occupations 10. Amend the section to delete and replace subsection I, as noted by striliethrnugh ullderlille/italics, as indicated below: F. Uses that are Prohibited. The following uses by the nature of the business or operation have a pronounced tendency once started to rapidly increase beyond the limits permitted for home occupations or cannot operate in compliance with applicable licensing requirements or the home occupation performance standards and thereby substantially impair the use and value of a residential area for residence purposes (e.g., the use would generate impacts on the surrounding neighborhood that are more frequent than that usually experienced in an average residential occupancy in the district under normal circumstances wherein no home occupation exists. This may include but not be limited to a home occupation that would generate traffic associated with the business outside of normal daytime business hours or on Sundays, or other impacts not typically associated with a home occupation use such as excess vehicle parking or storage of materials or equipment). Therefore the uses specified below, and any use determined by the community development director to be similar in its operations or potential impacts, shall not be permitted as home occupations: a. Animal keeping for commercial purposes (such as commercial pet sitting, boarding or animal training); Attachment 1-Exhibit A Page 5 of6 b. Auto repair, minor or major; c. Auto sales; d. Carpentry; e. Dance instruction; f. Dental or medical offices; g. Painting of vehicles, trailers or boats; h. Photo-developing or photo studios; 1. Private schools with organized classes; J. Upholstering; k. Fortunetelling. 1. Any cannabis related business (personal use and cultivation are permitted subject to limitations o(state law) Medical marijuana dispensary, which is not permitted in any district ',,,,ithin the city of San Rafael; m. Firearms dealer; n. Taxi service, dispatch, or vehicle tow service. Chapter 14.18.40 (Parking Requirements): 11. Amend the Chart 14.18.040 by inserting new land use classifications and parking requirements, noted by underline/italics in the location specified below, as indicated below: Chart 14.18.040 Use Classification Off-Street Parking Required Wholesale and distribution 1 space per 500 sq. ft. gross building sq. ft. Cannabis testingllab, cannabis 1 space per 500 gross building sq. fl.. inllised products and cannabis delivery Marinas 3 spaces for every 4 boat slips. Plus parking for support uses in the marina, such as restaurants or retail uses. Attachment 1-Exhibit A Page 6 of6 Attachment 2COPY.f RESOLUTION NO. 18-03 RESOLUTION OF THE CITY OF SAN RAFAEL PLANNING COMMISSION RECOMMENDING TO THE CITY COUNCIL ADOPTION OF AN ORDINANCE OF THE CITY OF SAN RAFAEL AMENDING SAN RAFAEL MUNICIPAL CODE TITLE 14 -ZONING, SPECIFICALLY AMENDING SELECTED CHAPTERS AND SECTIONS TO INCORPORATE ZONING REGULATIONS FOR CANNABIS USES, INCLUDING: A) ADDIMODIFY DE'FINIT10NS; B) ADDIMODIFY LAND USE TABLES; C) DELETE AND UPDATED OBSOLETE PROVISIONS; D) AMEND SITE AND USE AND HOME OCCUPATIONS REGULATIONS; AND E) ADD PARKING REGULATIONS; CITYWIDE (FILE NO. ZOI7-003) WHEREAS, the City of San Rafael has prohibited medical ::cannabis dispensaries since 1997, in resp,~nse to the passing of the 1996 Compassionate Use Act; a ballot initiative hown as Proposition 215. Since that time, no cannabis businesses have been permitted in City limits; and WHEREAS, on November 8, 2016, the voters of the State o'f California enacted Proposition 64, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) to allow for nonmedical/recreation adult-use. Cities and counties throughout California are revisiting Jocal cannabis regulations to address· a legal carinabis regulato'ry landscape; and \ WHEREAS, Proposition 64 allows for nonmedical/~ecreation adult-use. The developing regulatory framework in AUMA establishes a comp'rehensive system to legalize, control and regulate the cultivation, processing, 'manufacture, distribution, testing and sale of nonmedical/recreation adult-use cannabis; and WHEREAS, Proposition 64 reserves to local jurisdictions the right to impose add~tional local regulations on medical and nonmedical/recreation adult-use commercial activities, and. to prohibit them entirely if they choose to do so. WHEREAS, in January 2017, San Rafael City Council reviewed the statutory law of AUMA andlinstructed staff to form a City Council ad-hoc'subcomrhittee to review San Rafael's cannabis policies. The Medical Cannabis Council Ad-Hoc Subcommittee (MC Subcommittee) included Councilmember Kate Colin and Councilmember John Gamblin ,and City staff from v:arious departments; and WHEREAS, In July 2017, the Governor signed Senate Bill 94, entitled the Medical and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), which took effect immediately; and WHEREAS, over the course of several months, the MC Subcommittee reviewed all license types 'avail~ble under the State's medical cannabis framework Medical Cannabis Regulation and Safety Act of20 15 (MCRSA) to develop a set of recommendations for full Council consideration; and Page 1 Attachment 2COPYWHEREAS, the MC Subcommittee reviewed federal and state regulatory milestones to understand the evolution of legal medical cannabis and the implications for the City of San Rafael. The MC Subcommittee. decided to only focus on medical, while prohibiting nonmedical/recreational adult-use commercial cannabis activities for now. Consensus was reached on exploring a limited number of medical cannabis permits in San Rafael and was to be forwarded to the full City Council for review and action. The consensus was to meet the following objectives: a) Discreet, low impact and minimal public interface; b) Provide safe patient access, c}. Improve transparency and reduce public safety risks; d) Add new revenue to support city infrastru~ture and services; e) Create new jobs, produce artisan products; and f) Promote a diversified economy; and WHEREAS, on December 4, 2017, the Council conducted a public hearing to consider an Urgency Ordinance. In conclusion, the Council adopted Ordinance No. # 1949, amending the l:itv's Mlmir.inBl l:orlp. Bnrl Brlrlina B np.w l:hBntp.r {~RMr. 1 n Qf)l rp.a11btina ('.()rnmp.r("l~l ---r:I --·--.. ----r------------------.....---0 -. -~_., -------r ... --\'''------.... -.--./ .... -o~ .... .....,.v ..... #oo -_ .................... _ ... _ ... _ ... cannabis activity in San Rafael city limits, as an Urgency Ordinance, in order to advance local regulations before the State of California begins accepting commercial cannabis applications on January 2,2018; and WHEREAS, Urgency Ordinance # 1949 was adopted for the immediate preservation of the public peace, health or safety, because without a clear statement as to which commercial cannabis activities will be permitted in San Rafael, there is a possibility that state law will issue licenses for a much wider variety of commercial cannabis activities in the' City than the Me Subcommittee has recommended. The urge~cy Ordinance established thelfollowing: Permitted Medical Cannabis Commercial Operations Authorize a limited number of commercial medical cannabis operator licenses: • Medical cannabis delivery (State License Type 9) • ·Medical cannabis product manufacturing; ie infused products (State License -Class N) • Cannabis testing lab (State License -Type 8). The State of California will only be providing' cannabis testing labs with one license to service both medical and nonmedical/recreational adult-use for public safety reasons. Prohibited Medical Cannabis Commercial Operations The new ordinance prohi~its the following commercial medical cannabis &ctivities: • Cultivation, processing and some manufacturing activities • Dispensaries Prohibited Nonmedical/Recreation Adult-use Cannabis Commercial Operations The new ordinance also prohibits: ' • All commerGial nonmedical/recreatjon adult-use cannabis activities allowed under AUMA pertding further staff reviews of the State's new MAUCRSA regulations. WHEREAS, on January 16, 2018, the Council conducted a publi<; hearing and c'onsidered ,a Res.Qlutjol).,Qutlinjng th~ applic~tion pro<;e~~/requirerpents ~d es.tablishing the nUil1Qer of licenses; and. ' Page 2 Attachment 2COPYWHEREAS, on January 16; 2018,. the City Council adopted Resolution No 14455, which approved the application process/form and established the following number of licenses: a) Four (4) licenses for Cannabis testing/lab (medicinal and adult use); b) Eight' (8) licenses or Cannabis infused products (medicinal); and c) Four (4) licenses for Cannabis delivery (medicinal); and WHEREAS, following the Council's adoption of an Ordinance No. 1949 to establish a Municipal Code Section (SRMC 10.96) for the regulation and licensing of medicinal Cannabis businesses and the adoption of Resolution No 14455 to create a pilot program with license limits, the City must next establish the land use/zoning rules for allowing cannabis-related uses, specifically the type of cannabis-related use~ that will be allowed, where those uses will be allowed in the city and whether land use permits are required' for cannabis uses; and WHEREAS, City staff initiated amendments to San Rafael Municipal Code (SRMC) Title 14-Zoning (Zoning Ordinance) to implement the prior actions and outline' appropriate Zoning Districts for the new uses and public notice for the amendments to the Zoning Ordinance were noticed in t4e Marin Independent Journal on January 30, 2018; and . . WHEREAS, the amendments to the San Rafael Municipal Code, Title 14, do not propose any changes to City pO,licies or regulations that .would! result in, a direct or indirect physical, environmental impact; therefore it has been determined that this ordinance amendment is covered by the general rule that the California Environmental Quality Act (CEQA) applies only to projects which have the potential for causing a significant effect on the environment pursuant to CEQA Guidelines Section 15061(b)(3), and is not subject to environmental review; and . WHEREAS, on February 13, 2018, the Planning Commission held a duly-noticed public, hearing on the proposed amendments to the San Rafael Municipal Code, Title 14, accepting all public testimony and the written report of the Department of Community' Development, and recommended to the City Council the approval of the amendments; and NOW', THEREFORE, BE IT RESOLVED, that the Planning Commission recommends to the City Council adoption of the amendments to the San Rafael Municipal Code Title 14, Zoning, as outlined in the attachment "Attachment 1", based on the following findings as required under Zoning Code Section '14.27.060: 1. The amendments to San Rafael Municipal Code Title 14 -Zoning are consistent with the policies and programs of the San Rafael General Plan 2020 in that: a. As proposed, the amendments would update the Zoning Ordinance to, 1) incorporate , the definitions, land use allowances and parking requirements for cannabis uses into the Zoning Ordinance; 2} delete or update obsolete provisions; 3) update existing Site and Use regulation related to cannabis-related uses; and 4) update H~me Occupations regulations to clarify the City's intent for cannabis uses as home . occupations. This action would be consistent with General Plan Program LU-23a (Zoning Ordinance Amendments), which encourages periodic updates to the .... 'Zolling Ordinance iii ordert6 maintaiii a current and iriiernal1y consistenfcode; and'" . reflect the prior actions by the Council. Page 3 Attachment 2COPYb. As proposed, the amendments would be consistent with Land Use (LU) Policie's LU-14 (Land Use Compatibility), LU-16 (Building and Automotive Services) and LU-17 (Limited Retail and Service Uses in industrial and Office Areas) ~d , LU-22 (Odor Impacts). The Zoning Ordinance amendments to allow certain cannabis-related <pses in'l the Industrial and limited commercial area would be compatible with other testing, manufacturing and delivery types of uses in those area. Additional regulations specific to cannabis-related business would assure limited interface with residential or school uses. In addition, the limitations that will be established on the number of licenses through adoption of a separate City Council Resolution will minimize the potential 'for cannabis uses to take over the City's limited industrial and light industrial areas or to impact certain ln1nnril=lnt l1~P.C;! l.;mC'h ~c;! hllilrlina ~nrl ~l1t()1'n{'\tl'UP CPl""lTl(,PC' PllrthPl"rYHYr;'" nA't"At'::lil ............... r'-".L~-.&,.&.'" """"~_).J tJ __ ........ vs..L..I ~1A-...... ,.",.....L ........ b """.L.L,-,," L.4-~"''-'''''',&,.I,'-'''',l.VV UV'&' l".I.Y'-""-JI • .L ~l,..J.~VJ-A.J...1.V.l.V, ~L'-' LvLt.,.l..L.1. uses of cannabis are proposed to be allowed, therefore, wiH not ~ impact the City's limited I industrial areas. Although the three types of cannabis uses J proposed to be allowed in San Rafael would include certain o~fice areas, specifically the Commercial/Office land use designation. The City'does have an overabundance of office space and high vacancies that can absorb thelimited number of cannabis uses. Lastly, any potential odor impacts from cannabis uses would be regulated through the licensing process and the types and quantities of cannabis I that cCl;n be stored in these uses will be minimal. c. As proposed, the amendments would be consistent with Economic Vitality Element (EV) Policies EV-l (Economic Health 'and Quality of Life), EV-2 (Seek, Retain and Promote Business that Enhance San Rafael), EV-6 (Shop Locally) and EV-8 (Diversity of our Economic Base). With the passage of the new state law, there is significant de¢and and interest in a wide range of cannabis uses throughout the State. Each City and county is evaluating this topic and evaluating options for how their communities will address cannabis uses. The cannabis industry and the potential fOr taxation can bring significant financial benefits to a community. In addition'to establishing the regulatory framework and the types of cannabis uses that will be allowed in the City of San Rafael, we are also exploring options to modify the City's taxing authority to collect taxes on the businesses within the City of San Rafael. It is likely that a ballot initiative will be considered to' establish a local cannabis, excise tax in the near future. These proposed aniendmertts would open the City to ac~ommodate a few types of uses in the cannabis business chain, in limited numbers. The addition of these businesses will diversify the city's economic base, especially at a time where the retail ,industry is changing; and ~hereby effecting the City' tax base. 2. The public health, safety arid general welfare are served by adoptiol) of the proposed Zoning Ordinance amendments, in that they would: a) correct errors and inconsistencies' and delete obsolete code provisions; b) incorporate new code provisions to address a State-wide voter initiative to allow for nonmedical/recreation adult:'use;' c) Reflect'the San 'Rafael -City Council's 'prior actions to 'allow ceTtahi cannabis-related uses; c) implement policies and programs in the San Rafael General Page 4 Attachment 2COPYPlan 2020 that encourage periodic update. to the Zoping Ordinance and ensure consistency with the General Plan; and d) promote existing and new businesses and' Industry to' serve resid~nfs of San Rafael ana Marin CountY. ---The foregoing Resolution was adopted at the regular City of San Rafael Planning Commission meeting held on the 13t~ day of February 2018. . \ Moved by Commissioner Lubamersky and seconded by Commissioner Schoppert. AYES: COMMISSIONERS Luhamersky, Robertson, Schaeffer, Schoppert & Chair Davidson . NOES: COMMISSIONERS Paul ABSENT: COMMISSIONERS Loughran SAN RAFAEL PLANNING COMMISSION ATTEST(94uLa~ Paul Jen n, Secretary Attachment 1 -Amendments to San Rafael Municipal Code (SRMC) Title 14 -Zoning Page 5 _ Attachment 2COPYAttachment 1 Amendments to San Rafael Municipal Code (SRMC) Title 14 -Zoning The following sections of the San Rafael Municipal Code (SRMC) Title 14 -Zoningi, are hereby amended as follows: Chapter 14.03 -Definitions I 1. Amend the list of definitions in Section 14.03.030 by inserting new definitions, as identified by underline/italics, in alphabetical order, as follows: f( Cannabis" means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereot 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 cannabis. ((Cannabis" does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the' mature stalks (except the resin. extracted therefro,m), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, ((cannabis J) does not'mean ((industrial hemp" as defined by . Section 11018.5 of the Health and Safety Code. ((Cann.abis Testing/lab" means a laboratory, facility; or entity in' the state that offers or performs tests of cannabis or cannabis products (either medicinal and adult use) as further defined in SRMC 10.96. 040. This sort of use is regulated by the State of California as a Type 8 Cannabis license. ((Cannabis Delivery" means the commercial transfer of medicinal cannabis or cannabis products to a customer. ((Delivery". also inciudes the use by a retailer o(any technology platform: This sort of use is regulated by the State of California as a Type '9 C,annabis license. I ((Cannabis Infused Products" means producing edible or topical products -that include pre extracted cannabis oils, to create edibles; beverages, capsules, vape cartridges tinctures or topical for medicinal purposes. This sort of use is regulated by the State of California as a Class N (Infusions) Cannabis license. Cannabis manufacturing may also include shared use of a facility by multiple ~usinesses that perform cannabis infused products, (similar to a commercial kitchen). Shared manufacturing is regulated by the State of California as Type S Cannabis license. Distribution and transport of cannabis infused products as part of normal . operations ·of the' business is considered an ancillary use to this category and· ·therefore allowed . Attachment 1 Page 1 of7 Attachment 2COPY((Dispensary" means a storefront or facility where cannabis, cannabis products, or devices f9r the use of. cannabis , or cannabis products are offered, either -{ndividualiy -or {n any-comb7nation,-19r retaz{sale.' ((Medical cannabis" or ((medicinal cannabis)) means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of1996 (proposition 215), as further defined bJ( SRMC 10.96.040. 2. Amend the list of definitions in Section 14.03.030 ,by deleting the following existing definition in it's entirety, as noted by strikethrough text, as follows: ((Aledical marijuana dispensary)) which is means a facility where marijuana is made available for I rnedical purposes in accordance )1dth Health and Sqfety Code Section 11362.5 (Proposition 215). ' , Chapter 14.05.020 -Land Use Regulations (GC, NC, 0, C/O, RIO, FBWC) 3. Amend Table 14.05.020 by inserting new land use cIassific~tions, land use allowance and additional use regulations,! as noted by underline/italics, in the location specifi,ed below, as indicated 'below: Table 14.05.020 Type of La'n,d Use GC NC 0 C/O RIO FBW Additional C* Use Regulations : Printing shops P P . P CZ Cannabis Related Uses Cannabis -.E -.£ *Subiect to Testing/lab additional regulations and permitting (See SRMC Cha12ter 10.96) Attachment 1 Page 2 of7 ' Attachment 2COPYCannabis ---.£ Delivery Cannabis Infused Products I C~drooms I I I ---.£ ---.£ (32) I I I *Subiect to additional regulatfons and 12.ermitting ,(See SRMC Chal2ter 10.962 I See Chapter 10.36 4. Amend the footnotes to the Table 14.05.020 by inserting new footnotes, noted by underline/italics, in numerical order specified below, as indicated below: (3 2 2 Shall not be located within three hundred (3002 feet away of a residential zoning , district (R. DR or HR2. as measured from the property lines of each parcel. Ifwithin 300 ft. then use is l2rohibited. (33) Shall not be located within 600 feet from schools (public and l2rivate2. as measured from the property lines of each l2arcel. Chapter 14.06.020 -Land Use Regulations (I, LIla, CCIIO, LMU) . 5. Amend the Table 14.06.020 by inserting new land use classifications, permitting authority and additional' use regulations, as noted by underline/italics, in the location specified below, as indicated below:' Table 14.06.020 Types of Land I LIla CCIIO, LMU Additional Use Use Regulations Printing P P P .p Shops Cannabis Related .. _. .. ' . . .. Uses Attachment 1 Page 3 of7 Attachment 2COPYCannabis -Ull -Ull -Ull *Subiect to -Testing/la . -additional f2 regulations and 12ermitting [See SRMC Cha{2ter 10.962 Cannabis -Ull -Ull -Ull *Subiect to Deliver)!. additional -, regulations and 12ermitting [See SRMC. ChapJer .10.962 Cannabis -Ull -Ull -Ull *Subiect to In titse d additional Products regulat!ons and 12ermitting [See SRMC Cha12ter ., 10.962 Card Rooms C See Chapter 10.36 6. Amend the footnotes Table Section 14~05.020 by inserting a new footnote, noted by underline/italics, as specified below, as irtdicated below: U 2 Shall not be located within 600 feet from schools (public and private), as measured from the property lines of each parcel. Attachment 1 Page 4of7 -\' Attachment 2COPYChapter 14.13.030 -Land Use Regulations (-WO) 7. Am_cl!d the land ::us~ table in Section 14.13.030 by inserting _new language und.er the. "Additional Use Regulations" column, noted by underline/italics, as indicated below: Table 14.13.030 Type of Land Use WO Additional Use Regulations .Agriculture, cultivation of crops C Excludes cultivation o[cannabis! which is erohibited throughout the CitJ!. o[San Rafael Chapter 14.16.245 -Prohibition on Medical Marijuana dispensaries 8. Delete Section 14.16.245 in its entirety, as noted by strikethrough, as indicated below: 14 .16 .~4 5 ~4edical marijuana dispensary. : A medical marijuana dispensary is riot an allo'vvable usc.'vvithin any district of the' city. Chapter 14.16.045 -Cannabis Uses 9. Add a new Section 14.16.045, by inserting new title and text, as noted by underline/italics, as indicated below: 14.16.045 -Cannabis Uses Seecific medical cannabis uses are allowed by the Zoning Ordinance! as specified 'in the land use tables and as defined by the definition chaeter! including and limlted fo cannabis testing/lab (both medicinal and recreational adult use)! cannabis in[used products (medicinal onlJd and cannabis delivery "[medicinal only). All other medicinal or recreational medical cannabis uses! such as dispensaries, cultivation and processing are prohibited' The land use regulations contained pertaining to cannabis in this Title do not apply to eersonal cultivation or use o[cannabis. Personal cultivation and use o[cannabis shall be subject to State law and any limitation imposed by state law. Chapter 14.16.220 -Home Occupations 10. Amend the section to delete and replace subsection I, as .noted by stril"ethroagh underline/italics, as indi~ated below: F. Us~s that ~r~ ?ro.hj1Jit~~. The follovying us.~s ~y !he nature of~he b~si~es.s ()r . operation have a pronounced tendency once started to rapidly increase beyond the limits permitted for home occupations or cannot operate in compliance with Attachment 1 Page 50f7 Attachment 2COPYI, applicable licensing requirements ,or the home occupation performance standards and thereby substantially impair the use and value of a residential area for residence purposes (e~g.-, the use w6uld generate impacts -on the surrounding neighborhood -" that are more frequent than that usually experienced in an average residential occupancy in the district under normal circumstances wherein no home occupation exists. This may include but not be limited to a home occupation' that wou~d generate traffic associated with the business outside of normal daytime business hours or on Sundays', or other impacts not typically associated with a home occupation use such as excess vehicle parking or storage of materials or equipment). Therefore the uses specified below;' and any use determined by the community , development director, to be similar in its operations or potential impacts, shall not be permitted as home occupations: a. Animal keeping for commercial purposes (such as commercial pet sitting, boarding or animal training); b. Auto repair, minor or major; c. Auto sales; d. Carpentry; e. Dance instruction; f. Dental or medical offices; . g. Painting of vehicles, trailers or boats; h. Photo-developing or photo studios; i. Private schools, with organized .classes; J; , Upholstering; k. Fortunetelling. 1. Any cannabis related'business (personal use and cultivation are permitted subject to limitations ofstate law) I\4edical marijuana dispensary; lyvhich is not permitted in any district \vithin the city of San ,Rafael; m. Firearms deal~r; n. Taxi service, dispatch, or vehiGle tow service. Chapter 14.18.40 (Parking Requirements): 11. Amend the Chart 14.18.040 by inserting new land -use classifications and parking requirements, noted by underline/italics in the location specified below, as indicated below: Chart 14.18.040 Use Classification Off-Street Parking Required Wholesale and distribution 1 space per 500 sq. ft. gross building sq. ft. ,,, ' -' , Attachment 1 Page 6 of7 I Attachment 2COPYCannabis testing/lab! cannabis 1 s12ace 12er 500 gross building Sf[. ft. in[used12roducts, and cannabis deliver)!. Marinas. 3 spaces for every 4 boat slips. Plus' I parking for support uses in the marina, I such as restaurants or retail uses. .\ Attachment 1 Page 10f7 Marin Independent Journal 4000 Civic Center Drive, Suite 301 San Rafael, CA 94903 415-382-7335 legals@marinij.com 2070419 CITY OF SAN RAFAEL CITY OF SAN RAFAEL CITY CLERK, ROOM 209 1400 FIFTH AVENUE, SAN RAFAEL, CA 94901 SAN RAFAEL, CA 94915-1560 PROOF OF PUBLICATION (2015.5 C.C.P.) STATE OF CALIFORNIA County of Marin ATT I am a citizen of the United States and a resident of the County aforesaid: I am over the age of eighteen years, and not a party to or interested in the above matter. I am the principal clerk of the printer of the MARIN INDEPENDENT JOURNAL, a newspaper of general circulation, printed and published daily in the County of Marin, and which newspaper has been adjudged a newspaper of general circulation by the Superior Court of the County of Marin, State of California, under date of FEBRUARY 7, 1955, CASE NUMBER 25566; that the notice, of which the annexed is a printed copy (set in type not smaller than nonpareil), has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit: 02/17/2018 I certify (or declare) under the penalty of perjury that the foregoing is true and correct. Dated this 20th day of February, 2018. Signature PROOF OF PUBLICATION CHMENT 3 Legal No. 0006107509 CITY OF SAN RAFAEL NOTICE OF PUBUC HEARING You are Invited to attend the City Council hearing on the following project: DATE/TIME/PLACE: Monday, March So 2018 at 7:00 P.M. City Hall COuncil Chambers, 1400 Fifth Avenue, San Rafael PROJECT: cannabis Zoning Ordinance Amendments - Proposed amendments to Title 14 of the San Rafael Municipal Code (Zoning Ordinance) to: 1) add definitions (sRMC 14.03), land use provi· sions (sRMC 14.05 and 14.06) and parking reo quirements (sRMC 14.18) for cannabis busi· nesses within the city limits, specifically medi· cal cannabis delivery, medical cannabis prod· uct infusion, and cannabis testing/lab uses; 2) prohibit all other medicinal and adult use can- nabis bUSinesses, including cultivation (sRMC 14.16 and 14.13); and 3) update the home occu· pation standards and site and use standards (sRMC 14.16) to reflect the proposed cannabis regulations; File No : Z0l7-003. State law (California Environmental Quality Act) requires that this project be reviewed to determine if a study of potential environmen- tal effects is required. It has been determined that this project will not have a significant ef· fect on the environment and no environmental review will be completed. This project qualifies for a Categorical Exemption from the provi· sions of the California Environmental Quality Act Guidelines under 14 CRR Section 15061(b)3 (General Rule) which exempts projects where it can be seen with certainty that there is no possibility that the activity in question may have a significant eHect on the environment). If the Planninll Commission determines that this project Is In an environmentally-sensitive area, further study may be required. WHAT WILL HAPPEN: You can comment on the project. The City Council will consider all public testimony and decide whether to approve the proposed zon- ing ordinance amendments. IF YOU CANNOT ATTEND: You may send a letter to Lindsay Lara. Interim City Clerk, City of San Rafael, P.O. Box 151560, San Rafael. CA 94915-1560. You may also hand deliver a letter to the City Clerk prior to the meeting. FOR MORE INFORMATION: Contact Raffi Boloyan, Project Planner at (415) 485-3095 or raffi.boloyan@cityofsanrafael.org. You can also come to the Planning Division of· fice. located in City Hall, 1400 Fifth Avenue, to look at the file for the proposed project. The office is open from 8:30 a.m. to 4:30 p.m. on Monday. Tuesday and Thursday and 8:30 a.m. to 1:30 p.m. on Wednesday and Friday. You can also view the staH report after 5:00 p.m. on the Friday before the meeting at http://www.cityo fsanrafael.org/meetings SAN RAFAEL CITY COUNCIL lsi Lindsay Lara Lindsay Lara INTERIM CITY CLERK NO . 225 FEB . 17. 2018 STAFF REPORT APPROVAL ROUTING SLIP Staff Report Author: Raffi Boloyan Date of Meeting: 03/05/2018 Department: Community Development Topic: Cannabis - Zoning Ordinance Amendments Subject: Ordinance amending San Rafael Municipal Code Title 14 (Zoning), specifically amending selected chapters and sections to incorporate regulations for cannabis uses, including: a) add/modify definitions; b) add/modify land use tables; c) delete and update obsolete provisions; d) amend site and use and home occupations regulations; and e) add parking regulation. Case No. ZO17-003 Type: (check all that apply) ☐ Consent Calendar ☒ Public Hearing ☐ Discussion Item ☐ Resolution ☒ Ordinance ☐ Professional Services Agreement ☐ Informational Report *If PSA, City Attorney approval is required prior to start of staff report approval process Was agenda item publicly noticed? ☒ Yes ☐No Date noticed: 2/17/18 ☐Mailed ☐Site posted ☒Marin IJ Due Date Responsibility Description Completed Date Initial / Comment DEPARTMENT REVIEW FRIDAY noon 2/16 Director Director approves staff report is ready for ACM, City Attorney & Finance review. 2/19/18 ☒ PJ CONTENT REVIEW MONDAY morning 2/19 Assistant City Manager City Attorney Finance ACM, City Attorney & Finance will review items, make edits using track changes and ask questions using comments. Items will be returned to the author by end of day Wednesday. Click here to enter a date. 2/26/2018 ☐ ☐ ☒ MM DEPARTMENT REVISIONS FRIDAY noon 2/23 Author Author revises the report based on comments receives and produces a final version (all track changes and comments removed) by Friday at noon. Click here to enter a date. ☐ ACM, CITY ATTORNEY, FINANCE FINAL APPROVAL MONDAY morning Assistant City Manager ACM, City Attorney & Finance will check to see Click here to enter a date. ☐ 2/26 City Attorney Finance their comments were adequately addressed and sign-off for the City Manager to conduct the final review. Click here to enter a date. Click here to enter a date. ☐ ☐ TUES noon 2/27 City Manager Final review and approval Click here to enter a date. ☐