HomeMy WebLinkAboutItem 6c. O-1740 Second Reading Approving Amendment to Table 2-1 in Title 17 (Zoning regulations) Item 6c
Department: Community Development
Cost Center: 4001
For Agenda of: 10/1/2024
Placement: Consent
Estimated Time: N/A
FROM: Timmi Tway, Community Development Director
Prepared By: Ivana Gomez, Cannabis Business Coordinator
SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1740 (2024
SERIES) APPROVING AN AMENDMENT TO TABLE 2-1 IN TITLE 17
(ZONING REGULATIONS) OF THE MUNICIPAL CODE TO ALLOW
CANNABIS RETAIL STOREFRONTS TO CONDUCT RETAIL SALES BY
DELIVERY WITH APPROVAL OF A CONDITIO
RECOMMENDATION
Adopt Ordinance No. 1740 (2024 Series) entitled, “An Ordinance of the City Council of
the City of San Luis Obispo, California, approving amendments to Table 2-1 (Uses
Allowed by Zone) in Title 17 (Zoning Regulations) to allow Cannabis Retail Storefronts to
conduct retail sales by delivery with approval of a Conditional Use Permit or by
amendment to an existing Conditional Use Permit. The project is exempt from
environmental review (CEQA) (CODE-0401-2024).”
POLICY CONTEXT
Per Chapter 17.124 (Amendments – Zoning Regulations and Zoning Map), the City
Council may review the proposed text amendment, including the Planning Commission’s
recommendation, and take action based on consistency with the General Plan and State
Law.
DISCUSSION
Previous Council and Advisory Body Action
On March 7, 2023, at the Annual Cannabis Business Program Update, the City Council
provided direction to staff to update the Cannabis Program to allow retail storefronts to
offer delivery services. As a result, staff revised the program’s administrative regulations
and application materials to allow retail storefronts to engage in delivery. These changes
required thorough internal review and approval by the City Manager via City Manager
Report.
On August 14, 2024, the Planning Commission reviewed the proposed text amendment
and recommended the City Council introduce and adopt the Ordinance approving the
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Item 6c
amendment to Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the
Municipal Code (Resolution No. PC-1089-24).
On September 3, 2024, the City Council voted 5 – 0 to introduce Ordinance No. 1740
(2024 Series) approving an amendment to Table 2 -1 (Uses Allowed by Zone) of Title 17
(Zoning Regulations) in the Municipal Code to allow retail storefronts to conduct retail
sales by delivery with the approval of a Conditional Use Permit, or by amendment to an
existing Conditional Use Permit
If Council adopts the Ordinance, it shall be effective 30 days after its final passage.
Public Engagement
Each public hearing associated with this item has been noticed in compliance with the
City’s notification requirements for a proposed text amendment. If the Ordinance is
adopted, existing retail storefronts who wish to engage in delivery may apply for an
amendment to their existing Conditional Use Permit, which is a discretionary review
process that requires legal notices and a public hearing for each development project .
Future retail storefronts in the City may apply for a Conditional Use Permit to establ ish
and operate a retail storefront and may opt to engage in storefront sales only or storefront
and delivery sales at the time of application.
CONCURRENCE
The City has a designated steering committee comprised of representatives from the City
Attorney’s Office, Police Department, Finance Department, Community Development
Department, and City Administration to support the City’s Cannabis Program. The
proposed amendments contained within this report have been reviewed and are
supported by the steering committee as consistent with previous Council direction.
ENVIRONMENTAL REVIEW
Adoption of the proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §
17.10.020) of the Municipal Code has been reviewed in accordance with the California
Environmental Quality Act (CEQA) Guidelines. It has been determined that the
amendments are exempt from environmental review under CEQA Guidelines Section §
15301(b)(3) (General Rule Exemption), which applies to activities that can be clearly seen
to have no potential for significant environmental impact. The proposed amendments
involve minor modifications to the regulations governing commercial cannabis retail
storefront operations and are not expected to have any significant effect on the
environment. However, project-specific environmental review will be required for any new
commercial cannabis activity. Any new or existing cannabis retail storefront seeking a
Conditional Use Permit or an amendment to an existing permit to engage in delivery
services will be required to comply with all applicable state and local laws, including CEQA
requirements.
FISCAL IMPACT
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Item 6c
Budgeted: N/A Budget Year: 2024-25
Funding Identified: N/A
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $0 $0 $0 $0
State
Federal
Fees
Other:
Total $0 $0 $0 $0
There is no fiscal impact associated with the proposed amendments to the Municipal
Code. There are many delivery services located outside of City limits that are able to
deliver within the City, so staff anticipates a minimal increase in tax revenue if the
Ordinance is approved.
ALTERNATIVES
1. Council may decide to modify the Ordinance before adoption. Depending on
changes proposed, modification of the Ordinance may require reintroduction and then
adoption during subsequent public hearing, which will delay implementation of the
Ordinance.
2. Council may decide not to adopt the Ordinance. This action is not recommended
because it the Ordinance is consistent with City Council direction to allow cannabis
retail storefronts to deliver.
ATTACHMENTS
A – Ordinance No. 1740 (2024 Series)
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O 1740
ORDINANCE NO. 1740 (2024 SERIES)
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, APPROVING AMENDMENTS TO TABLE 2-1
(USES ALLOWED BY ZONE) IN TITLE 17 (ZONING REGULATIONS) OF
THE MUNICIPAL CODE TO ALLOW CANNABIS RETAIL
STOREFRONTS TO CONDUCT RETAIL SALES BY DELIVERY WITH
APPROVAL OF A CONDITIONAL USE PERMIT OR BY AMENDMENT
TO AN EXISTING CONDITIONAL USE PERMIT. THE PROJECT IS
EXEMPT FROM ENVIRONMENTAL REVIEW (CEQA) (CODE-0401-2024)
WHEREAS, the Planning Commission of the City of San Luis Obispo conducted a
public hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on August 14, 2024, for the purpose of recommending an amendment to Table
2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code,
pursuant to a proceeding under CODE-0401-2024; City of San Luis Obispo, applicant;
and
WHEREAS, the City Council of the City of San Luis Obispo conducted a public
hearing in the Council Chamber of City Hall, 990 Palm Street, San Luis Obispo,
California on September 3, 2024, for the purpose of introducing an ordinance to amend
Table 2-1 (Uses Allowed by Zone) in Title 17 (Zoning Regulations) of the Municipal Code,
pursuant to a proceeding under CODE-0401-2024; City of San Luis Obispo, applicant;
and
WHEREAS, notices of said public hearing were made at the time and in the
manner required by law; and
WHEREAS, the City Council has duly considered all evidence, including the
testimony of interested parties and the evaluation and recommendation by staff,
presented at said hearing.
NOW, THEREFORE, BE IT ORDAINED by the Council of the City of San Luis
Obispo as follows:
SECTION 1. Findings. Based upon all the evidence, the City Council makes the
following findings:
1. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §
17.10.020) of the Municipal Code are consistent with the State of California’s
Department of Cannabis Control regulations.
2. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §
17.10.020) are consistent with previous City Council direction on March 7,
2023, to update the Cannabis Program to allow cannabis retail storefronts to
offer delivery services.
3. The proposed amendments to Table 2-1 (Uses Allowed by Zone, Section §
17.10.020) are consistent with the City Council's broader goals of regulating
cannabis businesses to ensure public safety and compliance with state laws.
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Ordinance No. 1740 (2024 Series) Page 2
O 1740
4. The proposed amendments to Table 2 -1 (Uses Allowed by Zone Section §
17.10.020) of the Municipal Code are consistent with the Major City Goal
(Financial Plan 2023-2025) to implement initiatives that reinforce a thriving and
sustainable local economy as well as to ensure fiscally responsible and
sustainable city operations by strengthening existing cannabis businesses,
promoting the economic well-being of the community.
5. The proposed amendments to Table 2 -1 (Uses Allowed by Zone Section §
17.10.020) of the Municipal Code are consistent with the purpose of the Retail
Commercial (C-R) Zone to serve the entire community and the region, as well
as tourists and travelers.
6. The proposed amendments to Table 2 -1 (Uses Allowed by Zone Section §
17.10.020) of the Municipal Code are consistent with the purpose of the Service
Commercial (C-S) Zone to provide services to meet local needs and demands
of the region, including services and limited retail.
SECTION 2. Environmental Determination. Adoption of the proposed amendments
to Table 2-1 (Uses Allowed by Zone, Section § 17.10.020) of the Municipal Code has
been reviewed in accordance with the California Environmental Quality Act (CEQA)
Guidelines. It has been determined that the amendments are exempt from environmen tal
review under CEQA Guidelines Section § 15301(b)(3) (General Rule Exemption), which
applies to activities that can be clearly seen to have no potential for significant
environmental impact. The proposed amendments involve minor modifications to the
regulations governing commercial cannabis retail storefront operations and are not
expected to have any significant effect on the environment. However, project -specific
environmental review will be required for any new commercial cannabis activity. Any new
or existing cannabis retail storefront seeking a Conditional Use Permit or an amendment
to an existing permit to engage in delivery services will be required to comply with all
applicable state and local laws, including CEQA requirements.
SECTION 3. Action. The City Council hereby adopts an ordinance to amend the
Land Use section entitled, “Cannabis Activity” of Table 2-1 (Uses Allowed by Zone,
Section § 17.10.020) in Title 17 (Zoning Regulations) of the City of San Luis Obispo
Municipal Code to allow cannabis retail storefronts to conduct retail sales by delivery with
approval of a Conditional Use Permit or by amendment to an existing Conditional Use
Permit as set forth and incorporated herein.
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Ordinance No. 1740 (2024 Series) Page 3
O 1740
Table 2-1: Uses Allowed By Zone
Key:
A = Allowed; MUP = Minor Use Permit approval required; CUP = Conditional
Use Permit approval required
M/A = Minor Use Permit approval required on ground floor along street
frontage, allowed on second floor or above
Land Use Permit Requirement by Zoning District Specific Use
Regulations AG C/OS R-1 R-2 R-3 R-4 PF O C-N C-C C-R C-D C-T C-S M BP
CANNABIS ACTIVITY
Cannabis See Section 17.86.080
Specialty Cultivator MUP MUP MUP
Small Cultivator MUP MUP MUP
Nursery MUP MUP MUP
Manufacturing MUP MUP MUP
Distributor MUP MUP MUP
Microbusiness CUP MUP/
CUP MUP/
CUP MUP/
CUP
See Sec.
17.86.080(E)(12) for
specific requirements per
zone.
Testing CUP A A A Director’s action required.
See also Sec.
17.86.080(E)(9).
Retailer (Delivery
Only) MUP MUP MUP
Retailer (Storefront
with or without Delivery) CUP CUP
Existing retail storefronts
that wish to provide
delivery services shall
modify their existing
Conditional Use Permit to
include delivery.
SECTION 4. Severability. If any subdivision, paragraph, sentence, clause, or
phrase of this Ordinance is, for any reason, held to be invalid or unenforceable by a court
of competent jurisdiction, such invalid or unenforceability shall not affect the validi ty or
enforcement of the remaining provisions of this Ordinance, or any other provisions of the
City’s rules and regulations. It is the City’s express intent that each remaining portion
would have been adopted irrespective of the fact that any one or more subdivisions,
paragraphs, sentences, clauses, or phrases be declared invalid or unenforceable.
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Ordinance No. 1740 (2024 Series) Page 4
O 1740
SECTION 5. A summary of this ordinance, together with the names of Council
members voting for and against, shall be published at least five (5) days prior to i ts final
passage, in The New Times, a newspaper published and circulated in this City. This
ordinance shall go into effect at the expiration of thirty (30) days after its final passage.
INTRODUCED on the 3rd day of August 2024, AND FINALLY ADOPTED by the
Council of the City of San Luis Obispo on the ____ day of ____, 2024, on the following
vote:
AYES:
NOES:
ABSENT:
_____________________
Mayor Erica A. Stewart
ATTEST:
_________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of
the City of San Luis Obispo, California, on ______________________.
_____________________
Teresa Purrington
City Clerk
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