Title
Public Hearing to Consider Introduction of Ordinance Amending the Alameda Municipal Code by Repealing Section 30-5.15 (Medical Marijuana Dispensaries and Cultivation) in Its Entirety and Adding a New Section 30-10 (Cannabis) to Conditionally Permit Specific Types of Cannabis Businesses in Certain Zoning Districts. (City Manager 1010)
Body
To: Honorable Mayor and Members of the City Council
From: Jill Keimach, City Manager
Re: Public Hearing to Consider Introduction of Ordinance to Amend the Alameda Municipal Code to Conditionally Permit Specific Types of Cannabis Businesses in Certain Zoning Districts
BACKGROUND
Over the past year, the City Council approved two referrals directing staff to study updated regulations for, and potential taxation of, commercial cannabis activities. The referrals directed staff to propose regulations to permit convenient and safe cannabis businesses in Alameda including dispensaries, cultivation, manufacturing, purity and potency testing labs and quality control facilities.
On September 5, 2017, the City Council held a public meeting to review draft amendments to the Alameda Municipal Code (AMC) to implement the Council referrals. On October 21, 2017, the City Council held a special public meeting to continue review and discussion of the proposed amendments. At that meeting, the Council requested a series of changes to the draft amendments and directed staff to prepare final ordinances incorporating those changes for adoption.
On November 7, 2017, the City Council introduced on first reading two ordinances:
• An ordinance amending the AMC to add a new Article XVI (Cannabis Businesses) to Chapter VI (BUSINESSES, OCCUPATIONS, AND INDUSTRIES). This new article covers all aspects of regulating the operations of cannabis businesses (“regulatory ordinance”).
• An ordinance amending AMC Sections 24-11 (Smoking Prohibitions in Places of Employment and Unenclosed Public Places) and 24-12 (Smoking Prohibitions in Housing) to address smoking of cannabis in the City of Alameda.
On November 13, 2017, the Planning Board held a public hearing to consider staff’s recommendation to amend AMC Chapter XXX (the Zoning Code) to repeal the current prohibition on cannabis business activities and to specify the zones where certain types of cannabis businesses may locate in the City. Upon considering the draft amendments, public comment, and all other documents in the administrative record, including a staff-initiated amendment to the draft ordinance, the Planning Board unanimously recommended (6-0, with Mitchell absent) the draft amendments, with several recommended modifications, for City Council consideration. This staff report constitutes the report and recommendation from the Planning Board as required by section 30-22.6 of the AMC. The Planning Board’s specific comments are described below.
DISCUSSION
The proposed ordinance amending the Zoning Code deletes the current prohibition on cannabis business activities and requires such permitted businesses to obtain a Use Permit.
The proposed ordinance amending the Zoning Code allows medicinal cannabis dispensaries (up to two) to apply for a Use Permit in the following zoning districts:
• C-C, Community Commercial Zoning District (Park Street and Webster Street commercial districts);
• NP-G, North Park Street Gateway District (Park Street from Lincoln to Blanding Street);
• NP-W, North Park Street Workplace District (e.g., properties along Blanding Street from Oak Street to Tilden Way, including the Park Street Plaza and the Blanding Shopping Center); and
• AP-AR, Alameda Point Adaptive Reuse District.
A Use Permit for a nursery (1), a manufacturing business (no more than four), or a testing laboratory (up to two) may be approved in the following zoning districts:
• C-M, Commercial Manufacturing District (e.g., Harbor Bay Business Park, Wind River Campus);
• AP-E1, AP-E2, Alameda Point Enterprise Districts 1 and 2;
• AP-AR, Alameda Point Adaptive Reuse District; and
• Office, Research and Development, and Light Industrial zones in the Marina Village Master Plan area.
Exhibit 1 depicts the location of the zones where allowable cannabis businesses may be located in Alameda. It should be noted that:
• The regulatory ordinance, which the Council introduced on first reading on November 7, 2017, prohibits approval of a Use Permit on federal land or City-owned land. Currently, most of the land at Alameda Point is still federal land or City-owned land;
• State Tidelands limitations would prohibit use of the Ballena Isle C-M zoned lands for cannabis businesses; and
• The regulatory ordinance prohibits dispensaries and nurseries from locating within 1,000 feet of a sensitive use. Manufacturing facilities and testing labs are prohibited from locating within 600 feet of a sensitive use.
The draft ordinance amending the Zoning Code revises the current City of Alameda regulations related to cultivation of cannabis for personal use by:
• Maintaining the existing provisions allowing for 100 square feet of cultivation for personal adult use and a maximum of 500 square feet for personal medicinal use (the 100-square foot limit applies to an adult 21 years of age or older or a qualified patient), but requiring any cultivation area to be located indoors (outdoor cultivation for personal use is prohibited). The term adult use is used interchangeably with recreational use;
• Establishing a six-plant maximum, where no maximum currently exists, for adult and medicinal use alike;
• A primary caregiver may cultivate for up to five patients and up to 30 plants for the medical needs of the patients. This 30-plant maximum applies even though a qualified patient may have a physician’s recommendation granting limited immunity from criminal prosecution for possession and use of more than this threshold; and
• The cultivation limits for adult and medicinal use cannot be combined to exceed the 6-plant and 30-plant maximums.
The Planning Board had several additional recommendations that have been incorporated into the draft ordinance that is being considered by the City Council this evening. These include:
• Adding recitals to the ordinance making the required findings pursuant to section 30-22.6 of the AMC that the proposed amendment to the Zoning Ordinance maintains the integrity of the General Plan, supports the general welfare of the community, and is equitable;
• Re-working several definitions dealing with cannabis cultivation and nursery uses to ensure consistency internally and across both ordinances;
• Removing the definition of sensitive uses and buffer zones in the separation distances (“operational radius”) section, and, instead referencing the regulatory ordinance so that if those definitions change in the future only one ordinance will need to be amended.
• Revising the language regarding personal use cultivation for medicinal and recreational use so that the language is consistent for both adult-use and medicinal use of personal cultivation.
• Because the policies and concerns contained in the “Special Findings to Approve a Cannabis Use Permit” section of the proposed ordinance are already addressed in the regulatory ordinance, the Planning Board recommended removing that section. The “Special Findings” section would have required the Planning Board to make the following findings before issuing a use permit: (a) a cannabis business would abide by the applicable separation distances (referred to as “Operational Radius” in the regulatory ordinance), (b) operation of the cannabis business would not be detrimental to public health, safety, or welfare, (c) adoption of measures to deal with nuisance impacts, (d) and operation of the cannabis business would not disproportionately impact public services (police, fire, building, etc.). By removing this section, the possibility of creating conflicting findings between the regulatory ordinance and the zoning ordinance is eliminated.
As noted above, the Planning Board’s recommended changes have been incorporated into the ordinance that is before the City Council. Staff recommends that the Council introduce the ordinance as reviewed and commented upon by the Planning Board.
FINANCIAL IMPACT
The regulation of cannabis businesses in Alameda will be supported by a new fee structure and business license tax designed to ensure that the introduction of these new businesses will not have a financial impact on the General Fund. In furtherance of this effort, on November 7, 2017, City Council authorized staff to undertake a fee study to determine the cost of administering the regulatory process for cannabis businesses. Once the fee study is completed, the approved fees will be added to the City’s Master Fee Schedule.
MUNICIPAL CODE/POLICY DOCUMENT CROSS REFERENCE
The proposed amendment to the Zoning Code supports General Plan economic development policy objectives to increase access to services and products on-island for Alameda residents.
ENVIRONMENTAL REVIEW
Adoption of the ordinance amending the Zoning Code is exempt from the California Environmental Quality Act (“CEQA”) pursuant to Business and Professions Code section 26055(h) as discretionary review and approval, which shall include any applicable environmental review pursuant to Division 13 (commencing with Section 21000) of the Public Resources Code, shall be required in order to engage in commercial cannabis activity within the City of Alameda under such amendment to the Zoning Code. Adoption of the ordinance amending the Zoning Code is additionally exempt from CEQA pursuant to section 15061(b)(3) of the State CEQA Guidelines because it can be seen with certainty that there is no possibility that the adoption of such an ordinance would have a significant effect on the environment.
RECOMMENDATION
Hold a public hearing and introduce an ordinance to amend the Alameda Municipal Code to conditionally permit specific types of cannabis businesses in certain Zoning Districts.
Respectfully submitted,
Debbie Potter, Community Development Director
Financial Impact section reviewed,
Elena Adair, Finance Director
Exhibit:
1. Proposed Zones for Permitted Cannabis Business Activities