PLANNING COMMISSION Staff Report

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1 PLANNING COMMISSION Staff Reprt Scenic Pacifica Incrprated Nv. 22, 1957 DATE: ITEM: 1 FILE: TA RZ SUBJECT: Planning Cmmissin Recmmendatin n Text Amendment TA and Rezning RZ , Initiated by the City f Pacifica, t Enact New Zning Regulatins, Amend Existing Zning Regulatins, and Establish New Overlay Zning Districts in the Zning Map, Related t the Operatin and Lcatin f Marijuana Businesses and Related Activities. The Text Amendment t be Discussed Wuld Affect Prperty Citywide; the Rezning t be Cnsidered Wuld Affect Specified Prperties. APPLICANT: PROJECT LOCATION: PUBLIC NOTICE: CEQA STATUS: REQUIRED APPROVALS: City f Pacifica Citywide Ntice f Public Hearing was published in the Pacifica Tribune n May 3 and May 24, 2017, and mailed t surrunding prperty wners and ccupants. The Planning Cmmissin cntinued the public hearing frm May 15, Exempt frm Califrnia Envirnmental Quality Act (CEQA) pursuant t CEQA Guidelines sectin 15061(b)(3) because rdinance will nt result in either a direct physical change in the envirnment, r a reasnably freseeable indirect physical change in the envirnment. Gvernment Cde Sectin et seq. requires the Planning Cmmissin t cnduct a public hearing and prvide a written recmmendatin t the City Cuncil n any new zning rdinance, Packet Pg. 3

2 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 2 amendment t a zning rdinance, r change in a prperty s zning designatin. Pacifica Municipal Cde Sectin et seq. similarly requires the Planning Cmmissin t cnduct a public hearing and t prvide a recmmendatin by reslutin t the City Cuncil n any zning text amendment r change in a prperty s zning designatin. The City Cuncil, as the legislative bdy f the City, must cnduct a public hearing and enact by rdinance any zning text amendment r change in a prperty s zning designatin befre it may take effect, with few exceptins. Public Resurces Cde Sectin additinally prvides that any rdinance enacted by the City Cuncil which amends the City s zning standards r zning map shall nt take effect within the Castal Zne until the Califrnia Castal Cmmissin certifies an amendment t the City s Lcal Castal Prgram. RECOMMENDED ACTION: Adpt attached reslutin initiating the amendments and recmmending apprval t City Cuncil (Attachment A). ALTERNATIVE ACTION: Amend the prpsed rdinance t impse 600-ft minimum buffers arund K-12 schls, day care centers, and yuth centers; revise the Marijuana Operatin Overlay District (MO) bundaries t remve areas within any 600-ft buffer; and, adpt the attached reslutin initiating the amendments and recmmending apprval t City Cuncil (Attachment A). DISCUSSION 1. Previus Public Hearing: The Planning Cmmissin held a public hearing n the prpsed text amendment and rezning n May 15, The Cmmissin received public cmment and deliberated n the items. Its discussin fcused n the fllwing tpics: Apprpriate lcatins fr marijuana retail peratins (i.e., medical dispensaries and nnmedical retailers); Packet Pg. 4

3 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 3 Apprpriate buffer distances between marijuana retail peratins and ptentially sensitive uses such as schls, day care centers, and yuth centers; and Whether edible marijuana prducts shuld be sld nly at medical dispensaries r prhibited entirely. Staff s respnse t the Cmmissin s directin n these tpics is summarized belw. A. Lcatin Standards fr Marijuana Retail Operatins There was extensive discussin amng the Cmmissin n the subject f marijuana retail peratin lcatins, including minimum buffer distances frm sensitive uses and the lcatins f areas prpsed fr inclusin in a new Marijuana Operatin Overlay District (MO). There appeared t be cnsensus n the Cmmissin t reduce buffers frm certain sensitive uses belw the minimum 600-ft buffers frm K-12 schls, day care centers, and yuth centers prvided in state law. The Cmmissin appeared t draw a distinctin between day care centers and the ther sensitive uses in terms f the ages f children frequenting these sites and the manner f adult supervisin prvided t the children. The Cmmissin determined that typically parents will park near a day care center, escrt their very yung children in and ut f a day care center, and then depart in an autmbile. The ptential fr children visiting a day care center t unwittingly happen upn a marijuana retail peratin seemed lw in the Cmmissin s estimatin. By cmparisn, the Cmmissin seemed cncerned that schl-aged children wh may walk r bike themselves t and frm schl r yuth centers culd be expsed t marijuana retail peratins. Accrdingly, staff has revised the prpsed rdinance t prvide fr a 200-ft buffer frm day care centers while retaining the 600-ft minimum buffer frm K-12 schls and yuth centers. The reductin seemed necessary in the Cmmissin s view t ensure a sufficient number f sites culd be included within the MO Overlay District such that lcating multiple marijuana retail peratins in Pacifica wuld be viable. The reduced buffer surrunding day care centers has allwed staff t include additinal prperties within the prpsed MO Overlay District. Staff has prpsed the MO Overlay District in tw additinal neighbrhds Fairmnt and Park Pacifica and expanded the prperties included within the Sharp Park neighbrhd. Revised maps included as Attachment E reflect the changes. Packet Pg. 5

4 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 4 B. Edible Marijuana Prducts The directin frm a majrity f the Cmmissin was t permit sales f edible marijuana prducts in bth medical dispensaries and nn-medical retailers. Staff favrs this apprach because it believes the City wuld be unable t effectively enfrce a partial prhibitin n edible prduct sales. Such enfrcement wuld be extremely staff-intensive, if feasible at all, and wuld likely require either direct screening at the pint-f-sale r detailed audits f transactin recrds after-the-fact. 2. Backgrund: The Califrnia Legislature enacted the Medical Cannabis Regulatin and Safety Act (MCRSA) in 2015, and Califrnia vters, with passage f Prpsitin 64, enacted the Adult Use f Marijuana Act (AUMA) in Bth MCRSA and AUMA prvide fr lcal cntrl f medical and nn-medical marijuana businesses and certain related activities thrugh licensing and land use regulatins. The laws allw lcal jurisdictins t prhibit marijuana businesses and activities r t impse reasnable regulatins n them. The laws further restrict the state frm issuing a license t a marijuana business that wuld vilate a lcal rdinance. Hwever, in the absence f a lcal rdinance prhibiting r specifically regulating marijuana businesses, the state may issue a license t an peratr fr any type f marijuana business cntemplated by the AUMA. In additin t the May 15, 2017, public hearing summarized abve, staff sught directin frm the City Cuncil and Planning Cmmissin regarding which marijuana businesses and activities t prhibit r t regulate at a study sessin n March 6, Staff sught additinal feedback frm the Planning Cmmissin, specific t the lcatin f thse marijuana businesses and activities the City wuld cnsider permitting, n May 1, The Cuncil and Cmmissin indicated their desire t regulate mst types f marijuana businesses and activities, including utdr cultivatin fr persnal use in residential areas, and prvided clear directin nly t prhibit cmmercial cultivatin businesses and manufacturing businesses reliant n vlatile slvents. There was general supprt t allw marijuana testing facilities within the C-2 (Cmmunity Cmmercial) zning district, marijuana manufacturing facilities within the C-3 (Service Cmmercial) zning district, and medical and nn-medical dispensaries and retailers within a newly created verlay zning district. All marijuana-related businesses wuld be subject t apprval f a discretinary permit prir t peratin. Outdr cultivatin fr persnal use in residential areas wuld be permissible withut a permit subject t basic security, screening, and buffering requirements which include a slid six-ft tall fence, lckable gate, and prhibitin f cultivatin n prperties immediately abutting a schl prperty. Packet Pg. 6

5 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 5 Staff has prepared the attached marijuana regulatins rdinance (Attachment B), Marijuana Operatins Overlay District (MO) rdinance (Attachment C), crrespnding amendments t varius zning regulatins t ensure cnsistency with the marijuana regulatins rdinance (Attachment D), and zning map amendment (Attachment E) based n its understanding f feedback received frm the City Cuncil and Planning Cmmissin, and the requirements f state law. The City retains brad discretin t regulate r prhibit marijuana-related activities, and staff is prepared t advise the Cmmissin n any changes it may desire within the attached draft rdinance. 3. Definitins: The rdinance wuld create definitins t guide its implementatin and administratin. Ntable definitins include the fllwing: Day Care Center: Any child day care facility ther than a family day care hme, and includes infant centers, preschls, extended day care facilities, and schl age child care centers. [Health and Safety Cde sectin ] Marijuana Manufacturing Operatin: Any building, business, entity, facility, establishment, prperty, site r lcatin that packages r repackages marijuana prducts, labels r relabels marijuana prduct cntainers, and/r prduces edible prducts r tpical prducts using infusin prcesses, r ther types f medical cannabis prducts ther than extracts r cncentrates, and des nt utilize vlatile slvents. Marijuana Retail Operatin: A building, business, entity, facility, establishment, prperty, site r lcatin that dispenses, sells, and/r delivers Marijuana and/r Marijuana Prducts and which requires a Type 10 State license fr medical and/r nn-medical marijuana sales and deliveries. Marijuana Testing Operatin : Any labratry, building, business, entity, facility, establishment, prperty, site, r lcatin that requires a Type 8 State license fr medical and/r nn-medical marijuana testing. Packet Pg. 7

6 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 6 Schl: An institutin f learning fr minrs, whether public r private, ffering a regular curse f instructin required by the Califrnia Educatin Cde. This definitin includes an elementary schl, middle, r junir high schl, senir high schl, r any special institutin f educatin fr persns under the age f eighteen years, whether public r private. Yuth center: Any public r private facility that is primarily used t hst recreatinal r scial activities fr minrs, including, but nt limited t, private yuth membership rganizatins r clubs, scial service teenage club facilities, vide arcades, r similar amusement park facilities. [Health and Safety Cde sectin ] 4. Uses Allwed: The rdinance wuld allw persnal cultivatin in residential areas subject t certain standards withut a permit. The rdinance wuld allw a marijuana retail peratin, marijuana manufacturing peratin, and marijuana testing peratin in certain lcatins within the City subject t lcatinal standards and apprval f a discretinary permit. All ther uses nt explicitly allwed within the rdinance wuld be expressly prhibited. 5. Lcatin Standards: Standards gverning the lcatin f marijuana businesses and activities will rely n a cmbinatin f prvisins currently in state law, regulatins t be develped by state licensing authrities, and standards cntained in the rdinance. A. Residential Marijuana Cultivatin The rdinance cntains permissive standards fr cultivatin f marijuana fr persnal use in residential areas. The rdinance wuld allw cultivatin f nt mre than six plants in ttal, whether indrs, utdrs, r sme cmbinatin theref. Under state law, the City must permit cultivatin within a residence r accessry structure but may impse reasnable regulatins n such cultivatin. The City retains full discretin whether t allw utdr cultivatin. The rdinance wuld allw utdr cultivatin in the rear yard subject t five-ft minimum setbacks frm the side and rear prperty lines. Outdr cultivatin wuld require a six-ft tall slid fence and lckable gate, require that utdr cultivatin nt be visible frm a public place, and wuld prhibit utdr cultivatin frm utilizing artificial light. Outdr cultivatin wuld be prhibited n any residential prperty immediately abutting prperty cntaining a schl, day care center, r yuth center. Packet Pg. 8

7 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 7 B. Nn-residential Marijuana Operatins i. State Standards There are tw prvisins in state law bth frm Sectin f the Health and Safety Cde which establish a baseline frm which the rdinance will further regulate the lcatin f marijuana peratins: A marijuana peratin shall nt als be licensed as a retailer f alchlic beverages r f tbacc prducts. A marijuana business may nt be lcated within a 600-ft radius f any f the fllwing uses in existence at the time the license is issued, unless a licensing authrity r a lcal jurisdictin specifies a different radius: i) a schl prviding instructin in kindergarten r any grades 1 thrugh 12; ii) a day care center; r, iii) a yuth center. Refer t the map in Attachment F fr the state buffer areas. As nted abve, based n feedback frm the public hearing n May 15, 2017, staff has revised the prpsed rdinance t prvide fr a 200-ft buffer frm day care centers. The prpsed rdinance retains the 600-ft buffer surrunding K-12 schls and yuth centers. The reference map in Attachment E reflects the reduced buffer. The abve prvisins in Sectin wuld be generally applicable t all marijuana peratins in the City. The rdinance wuld prhibit a marijuana peratin n a parcel, any prtin f which is lcated within a buffer area. ii. City Standards The rdinance addresses each f the three allwable types f marijuana peratins by requiring apprval f a discretinary permit and restricting their lcatins as fllws: Retail Operatins (includes Medical Dispensaries and Nn-medical Retailers) Allwable within the newly-created Marijuana Operatin Overlay District (MO), which is prpsed utside f the buffers described abve. The maps in Attachment E demnstrate the lcatins where the verlay znes are prpsed. The text in Attachment C establishes the standards fr the verlay Packet Pg. 9

8 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 8 znes. The rdinance wuld allw up t tw retail peratins within each verlay zne, but limit t six the ttal number f retail peratins in Pacifica. Manufacturing Operatins Allwable within the C-3 (Service Cmmercial) zning district, except thse areas within the buffers described abve. Testing Operatins Allwable within the C-2 (Cmmunity Cmmercial) and C-3 (Service Cmmercial) zning districts, except thse areas within the buffers described abve. 6. Marijuana Use Permit Requirement and Prcedures: Any marijuana peratin wuld be required t btain a Marijuana Use Permit (MUP) in rder t perate (except cultivatin fr persnal use in a residential area, which is nt cnsidered a marijuana peratin ). The MUP wuld be a discretinary permit subject t review and apprval by the Planning Cmmissin at a nticed public hearing. The MUP wuld be subject t appeal t the City Cuncil. A Marijuana Public Safety License (MPSL) wuld als be required as a cmpanin t the MUP. Bth the MPSL and MUP wuld be cntingent upn the cntinued validity f the ther. A. Applicatin Prcedures An applicant fr an MUP wuld first be required t apply t the Plice Department fr an MPSL. The purpse f requiring an initial applicatin fr an MPSL is t ensure an applicant is qualified under the City s standards related t prir criminal cnvictins and has btained preliminary authrizatin frm a Pacifica prperty wner t pursue City apprvals fr a marijuana peratin at a qualifying lcatin. Once an applicant has satisfied preliminary MPSL requirements, he r she wuld make an applicatin t the Planning Department fr an MUP. An MUP applicatin wuld require detailed infrmatin n the prpsed marijuana peratin, including a Plice Department-apprved security plan. In the event the City has received mre applicatins fr a particular type f marijuana peratin than may be permitted under any numerical limitatin in effect, the City wuld cnduct a lttery drawing t determine which applicants wuld be permitted t prceed frm the initial MPSL applicatin the MUP applicatin phase. Packet Pg. 10

9 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 9 B. Planning Cmmissin Review The Planning Cmmissin s review f a MUP applicatin will be guided by the specific findings required fr apprval f the permit. The rdinance prvides that the Planning Cmmissin must make the fllwing findings in rder t apprve an MUP: All Marijuana Operatins The Marijuana Operatin Applicant has been placed n the Marijuana Qualified Registratin List, as defined in PMC Title 4, Chapter 16. The Marijuana Use Permit applicatin is cmplete and the Applicant has submitted all infrmatin and materials required by PMC sec (c). The prpsed lcatin f the Marijuana Operatin is nt likely t have a ptentially adverse effect n the health, peace, r safety f persns due t the Marijuana Operatin s prpsed prximity t a schl, day care center, yuth center, public park, playgrund, recreatinal center, schl bus stp, premises frequented by children, religius establishment, r ther similar uses. The prpsed lcatin f the Marijuana Operatin is nt likely t have a ptentially adverse effect n the health, peace, r safety f persns due t the Marijuana Operatin s prpsed prximity t anther existing r permitted Marijuana Operatin. The design f the strefrnt r structure within which the Marijuana Operatin will perate is architecturally-cmpatible with surrunding strefrnts and structures in terms f materials, clr, windws, lighting, sund, and verall design. The prpsed size f the Marijuana Operatin is apprpriate t meet the needs f the lcal Pacifica cmmunity fr access t marijuana and that the size cmplies with all requirements f the City s Zning Regulatins. The lcatin is nt prhibited under the prvisins f this Article r any lcal r state law, statute, rule, r regulatin, and n significant nuisance issues r prblems are likely r anticipated, and that cmpliance with ther applicable requirements f the City s Zning Regulatins will be accmplished. The Marijuana Operatin s Operatins Plan, prpsed hurs f peratin, and security plan have incrprated features necessary t assist in reducing ptential Packet Pg. 11

10 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 10 crime-related prblems. These features may include, but are nt limited t, nsite security; prcedure fr allwing entry; penness t surveillance and cntrl f the premises, the perimeter, and surrunding prperties; reductin f pprtunities fr cngregating and bstructing public ways and neighbring prperty; and illuminatin f exterir areas. The Marijuana Operatin is nt likely t have an adverse effect n the health, peace, r safety f persns living r wrking in the surrunding area, verly burden a specific neighbrhd, r cntribute t a public nuisance, and will generally nt result in repeated nuisance activities including disturbances f the peace, illegal drug activity, marijuana use in public, harassment f passerby, excessive littering, excessive litering, illegal parking, excessive lud nises(especially late at night r early in the mrning hurs), lewd cnduct, r plice detentins r arrests. The Marijuana Operatin is nt likely t vilate any prvisin f the Pacifica Municipal Cde r cnditin impsed by a City-issued permit, r any prvisin f any ther lcal r state law, regulatin, r rder, r any cnditin impsed by permits issued in cmpliance with thse laws. The Applicant has nt made a false statement f material fact r mitted a material fact in the applicatin fr a Marijuana Use Permit, as knwn at the time f determinatin n the applicatin. The Marijuana Operatin s Site Plan has incrprated features necessary t assist in reducing ptential nuisance and crime-related prblems. These features may include, but are nt limited t, prcedures fr allwing entry; reductin f pprtunities fr cngregating and bstructing public ways and neighbring prperty; and limiting furnishings and features that encurage litering and nuisance behavir. Supplemental Findings Manufacturers The Manufacturing Operatin, as prpsed, will nt utilize any vlatile r nnvlatile slvents fr purpses f extracting cannabinids. The Manufacturing Operatin includes adequate quality cntrl measures t ensure any Marijuana Prduct manufactured at the site meets industry standards. Packet Pg. 12

11 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 11 The Manufacturing Operatin des nt pse a significant threat t the public r t neighbring uses frm explsin r frm the release f harmful gases, liquids, r substances. C. Cnditins f Operatin In additin t any unique cnditins f apprval impsed by the Planning Cmmissin, every marijuana peratin wuld be subject t the fllwing standard cnditins f peratin: All Marijuana Operatins A Marijuana Public Safety License shall be maintained at all times during peratin f the Marijuana Operatin. Failure t maintain a Marijuana Public Safety License shall be the basis fr immediate terminatin f the right t perate a Marijuana Operatin under a Marijuana Use Permit. Restrictins n minr access t the premises. Hurs f peratin clearly displayed. Prhibitin f alchl sales, distributin, and cnsumptin. Prhibitin f tbacc sales. Cmpliance with parking standards required. Prhibitin f n-site cnsumptin f marijuana. Cmpliance with apprved peratins plan, security plan, and site plan required. Cmpliance with sign standards required. Supplemental Cnditins Retailers Prhibitin n sales f drug paraphernalia and implements except where such sales cmply with state law. Packet Pg. 13

12 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 12 Deliveries permitted t lawful custmers nly. Increases in flr area subject t City apprval. Sales f medical marijuana restricted t qualified patients and caregivers with State-issued Identificatin Card. Hurs f peratin limited t 7:00 AM thrugh 10:00 PM daily, unless further restricted by Planning Cmmissin. Prhibitin f n-site physician evaluatins fr use f medical marijuana. Maintenance f seller s permit fr cllectin f sales tax. Supplemental Cnditins Manufacturers Prhibitin f n-site retail sales f marijuana r marijuana prducts. Prhibitin f cannabinid extractin by any means. Requirement fr prper fd prcessing, handling, and strage. Supplemental Cnditins Testers Prhibitin f n-site retail sales f marijuana r marijuana prducts. D. Nn-transferability The rdinance wuld prvide that an MUP is nn-transferrable t any ther peratr. The effect f this restrictin wuld be t eliminate an aftermarket fr sale f MUPs, and t require every prspective marijuana peratr t underg the City permitting prcess. Additinally, the rdinance wuld require an applicant t annually renew the MPSL. E. Suspensin and Revcatin The rdinance wuld prvide that any MUP wuld be subject t a revcatin prcedure cnducted by the Planning Cmmissin. Ptential causes fr initiatin f a revcatin prcedure culd include, but nt be limited t, the fllwing: Packet Pg. 14

13 PC Staff Reprt Public Hearing - Marijuana Zning Regulatins and Overlay Znes Page 13 Failure t maintain a valid Marijuana Public Safety License Failure t cmply with any cnditin f peratin r cnditin f apprval Causing a public nuisance Additinally, the rdinance wuld prvide that revcatin f a MPSL wuld autmatically cnstitute revcatin f a MUP, withut requiring a MUP revcatin hearing. 7. Existing Marijuana Businesses: There wuld be n vested right under the rdinance t cntinued peratin r issuance f a MUP t any marijuana activity which cmmenced peratin in vilatin f the Pacifica Municipal Cde prir t the effective date f this rdinance. Therefre, based n the prvisins in the rdinance and in state law, it is pssible that sme r all existing marijuana dispensaries within Pacifica may be unable t cntinue their peratin nce the rdinance takes effect. 8. Areas Affected by the Ordinance: The areas f the City affected by the rdinance wuld include the fllwing: All residential zning districts (persnal cultivatin) C-2 (Cmmunity Cmmercial) and C-3 (Service Cmmercial) zning districts (testing peratin) C-3 (Service Cmmercial) zning district (manufacturing peratin) Newly-created Marijuana Operatin Overlay District MO (retail peratin medical and nn-medical) 9. Staff Recmmendatin: Staff recmmends adptin f the attached reslutin initiating the text amendment and rezning, and recmmending apprval f bth t the City Cuncil. ATTACHMENT LIST: Attachment A - Reslutin - TA and RZ (DOCX) Attachment B - Marijuana Zning Regulatins (DOCX) Attachment C - Article Marijuana Operatin Overlay Districts (DOCX) Attachment D - Varius Ordinances t Amend (PDF) Attachment E - Zning Map Amendments - Marijuana Operatin Overlay Znes (PDF) Attachment F ft. buffer frm K-12 schls, day care centers, and yuth centers (PDF) Packet Pg. 15

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