To: Honorable Mayor and Members of City Council
From: Vin Smith, Community Development Director
Prepared By: Vin Smith, Community Development Director
TITLE:
Title
Adult-Use Cannabis Ordinance.
LABEL
RECOMMENDED ACTION:
Recommendation
Adopt an Ordinance amending Napa Municipal Code Section 17.52.275 (Medicinal and Adult-Use Cannabis Regulation and Safety Ordinance) to authorize the issuance of cannabis clearances for adult-use cannabis retailers and manufacturers.
Body
DISCUSSION:
Background
In March of 2021, the City Council established a list of Priority Projects to direct limited staff resources on high priority projects. One of the priority projects is to amend the City’s current Cannabis Ordinance (Napa Municipal Code Section 17.52.275) to authorize City staff to issue cannabis clearances to allow retailers to sell cannabis to any individual who is at least 21 years old; referred to as “Adult Use.” Under the City’s current Cannabis Ordinance, clearances are limited to retail sales to a “qualified patient” or “primary caregiver” for medicinal uses of cannabis. The recommended ordinance attached to this report as Attachment 1 will authorize the issuance of clearances for retailers of Adult-Use cannabis in situations when the buyer does not have a physician’s recommendation or identification card for medicinal use of cannabis.
On October 19, 2021, Staff presented to the City Council draft language for an ordinance to allow for Adult-Use Retail Sales of Cannabis, requesting direction on completing the Zoning Ordinance amendment process. The City Council directed Staff to prepare the final ordinance and commence the public hearing process. On November 18, 2021, the Planning Commission held a noticed public hearing to consider the proposed amendments to Napa Municipal Code Section 17.52.275. (See Attachment 3 for the Planning Commission report; and see Attachment 2 for the minutes of the Planning Commission meeting.) This report highlights the proposed amendments to the City’s Cannabis Ordinance which would establish definitions, criteria, process and enforcement for the retail sale of Cannabis for Medicinal and Adult-Use purposes within the City of Napa.
Summary of Recommended Changes:
The version of the draft Cannabis Ordinance that was presented to the Planning Commission on November 18 was the same as the version presented to City Council on October 19, with minor corrections to conform with State Cannabis Laws (as shown in redlined format on Attachment 1, pages 23 - 36). Based on direction from the Planning Commission on November 18, the only additional substantive changes to the attached recommended version of the Cannabis Ordinance (as compared to what was previously presented to Council on October 19) are identified in the last three bullets in the list, below, including: (a) “impenetrable barriers,” (b) retention of security video, and (c) two foot-candles of illumination.
Upon consideration of the direction provided by the City Council on October 19, 2021, and by the Planning Commission during the public hearing on November 18, 2021, the Planning Commission and City staff recommend that the Council adopt the ordinance (ATCH 1) to amend Napa Municipal Code (“NMC”) Section 17.52.275 (the City’s Cannabis Ordinance) to include:
Ø Allow for sales of cannabis to adults who are at least 21 years old, without requiring a physician’s recommendation for medicinal use
Ø Establish a unique Adult-Use Cannabis Retailer clearance process. Current holders of a Medicinal Cannabis Clearance, if desired, would be required to apply for a separate Adult-Use Cannabis Clearance.
Ø Allow Adult-Use Cannabis Retailers to be located only in Zoning Districts which currently allow Medicinal Cannabis Retailers.
Ø Require any Adult-Use Cannabis Dispensary to follow the location and distance measurement standards established under the Medicinal Cannabis Dispensary Ordinance (i.e., distance from Youth Oriented Property).
Ø When identifying exceptions to the distance measurement standards, clarify the definition of an “impenetrable barrier” in NMC Section 17.52.275.E.4(a) to be limited to locations where there is no pedestrian crossing of a state highway or a watercourse.
Ø Clarify NMC Section 17.52.275.F.17 to rely solely on the 90-day State requirement for retaining on-site security video.
Ø Correct NMC Section 17.52.275.F.27 to read “minimum of two foot-candles” instead of “two candle foot”.
Simply stated, the recommended ordinance will allow for Adult-Use Cannabis Retailers wherever Medicinal Cannabis Retailers are currently allowed, and provide for a similar clearance process to authorize the Adult-Use Cannabis Retailers.
Public Input:
Staff provided a copy of the proposed modifications to the “Coalition of Local Dispensaries” in early September and received a letter of support from said Coalition on September 29, 2021 (Attachment 3). The letter supports the proposed changes to NMC 17.52.275 and requests that the City Council “adopt a two-year moratorium on any new retail applications in order to allow current operators and applicants a chance to stabilize financial, and the City time to decide if and how to enact a cap on the number of storefront dispensaries in Napa”.
Members of the Coalition of Local Dispensaries attended the November Planning Commission hearing and spoke in support of the proposed Municipal Code amendments.
Conclusion
Based on City Council direction, collaboration with the Coalition of Local Dispensaries, and input from Staff, the Planning Commission unanimously recommended approval of the proposed changes to Napa Municipal Code Section 17.52.275 to include the additional minor modifications discussed at the November 18, 2021 public hearing.
FINANCIAL IMPACTS:
Staff anticipates no significant negative financial impacts associated with the changes to NMC 17.52.275.
CEQA:
City Staff has determined that the proposed ordinance is not a project within the meaning of the California Environmental Quality Act (“CEQA,” as codified in the California Public Resources Code Division 13), because it has no potential for resulting in physical change in the environment, directly or ultimately (see CEQA Guidelines Section 15378). In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in California Business and Professions Code Section 26055(h) (adoption of an ordinance that establishes other authorizations to engage in commercial cannabis activity); and it is subject to the CEQA exemption contained in CEQA Guideline Section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. Finally, in the event that the ordinance is not exempt from CEQA, the potential environmental effects of the ordinance fall within the scope of, and were adequately examined by, the Environmental Impact Report (EIR) for Envision Napa 2020, the City’s General Plan (the “General Plan EIR”), certified on December 1, 1998, pursuant to CEQA Guidelines section 15168. Section 15168(c) states that if the City determines that, pursuant to CEQA Guidelines section 15162, no new effects could occur and no new mitigation measures would be required due to adoption of the ordinance, then the City can approve the ordinance as being within the scope of the impacts examined in the General Plan EIR. The City has made such a determination based on substantial evidence in the record, and therefore no subsequent environmental review is required.
DOCUMENTS ATTACHED:
ATCH 1 - Ordinance
ATCH 2 - November 18, 2021 Planning Commission Minutes
ATCH 3 - November 18, 2021 Planning Commission Staff Report and Attachments.
NOTIFICATION:
Notice of the public hearing was published in the Napa Valley Register Friday, January 7, 2022 and provided to interested parties who requested notification of meetings related to cannabis related regulations. Legal notice included a general explanation of the matter to be considered, a description of the date, time and place of the public hearing, the identity of the hearing body, and a statement consistent with the Code of Civil Procedure regarding the time limit to commence any legal challenge and matters that may be raised by such challenge.