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HomeMy WebLinkAbout2017-01-24 - AGENDA REPORTS - PROP 64 MORATORIUM EXTENSION (2)Agenda Item: 20 CITY OF SANTA CLARITA AGENDA REPORT PUBLIC HEARINGS CITY MANAGER APPROVAL: fill DATE: January 24, 2017 SUBJECT: EXTENSION OF PROPOSITION 64 MORATORIUM DEPARTMENT: Community Development PRESENTER: Joseph Montes RECOMMENDED ACTION City Council adopt an Ordinance entitled "AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, EXTENDING A TEMPORARY MORATORIUM PERTAINING TO PRIVATE MARIJUANA CULTIVATION AND NON -MEDICAL MARIJUANA FACILITIES." BACKGROUND: On December 13, 2016, the City Council adopted Urgency Ordinance No. 16-12, establishing a 45-day moratorium pertaining to private marijuana cultivation and non -medical facilities. The staff report for the meeting on December 13, 2016, without attachments, is attached for your reference. Since December 13, 2016, City of Santa Clarita (City) staff has investigated what provisions should be included in a permanent ordinance for non -medical marijuana with regard to marijuana businesses (including cultivation, manufacturing, distribution, testing, and retail sales), outdoor cultivation, indoor cultivation, and delivery of non -medical marijuana to residents of the City. The State of California is currently reviewing Proposition 64 for the purpose of drafting regulations relating to non -medical marijuana. Those regulations are expected to take several months to be drafted and approved by the State. Based on the latest information received from the State, marijuana licenses will not be ready to be issued until January 2018. Government Code Section 65858 provides that, after a notice pursuant to Government Code Section 65090 and public hearing, the City Council may extend the Urgency Ordinance for 10 months and 15 days. The City has complied with these notice and public hearing requirements. Here, an extension of the temporary moratorium until December 12, 2017, will allow the City to protect public health, safety, and welfare while the City Council evaluates its options for provisions to be included in a permanent marijuana ordinance. Page 1 Packet Pg. 117 The proposed Urgency Ordinance to extend the moratorium for 10 months and 15 days continues the following three temporary restrictions: 1. All commercial non -medical marijuana businesses that require a license under Proposition 64 will be prohibited while the Urgency Ordinance is in effect. This temporary prohibition will apply to recreational marijuana cultivation, manufacturing, distribution, testing, and retail sales. 2. All private marijuana cultivation will be prohibited except that an individual may cultivate no more than six marijuana plants inside his or her private residence, or inside an accessory structure to his or her private residence located upon the grounds of that private residence that is fully enclosed and secured against unauthorized entry, provided that: 1) the owner of the property provides written consent expressly allowing the marijuana cultivation to occur; 2) the person conducting the marijuana cultivation complies with all applicable Building Code requirements set forth in Title 18 of the Municipal Code; 3) there is no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of marijuana cultivation; and 4) the marijuana cultivation complies with Health and Safety Code Section 11362.2(a)(3). Health and Safety Code Section 11362.2(a)(3) provides that no more than six marijuana plants may be cultivated at or upon the grounds of a private residence at one time. 3. Non -medical marijuana businesses, including nonprofit businesses, are prohibited from delivering marijuana to people in the City. The Urgency Ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, Sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3) (the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment). The proposed Urgency Ordinance maintains the status quo and prevents changes in the environment, pending the completion of the contemplated Municipal Code review. Because there is no possibility that this Urgency Ordinance may have a significant adverse effect on the environment, its adoption is exempt from CEQA. This Urgency Ordinance requires a four -fifths vote for adoption. If approved by a four -fifths vote, the Urgency Ordinance will be effective for a period of 10 months and 15 days, until December 12, 2017. While the Urgency Ordinance is in effect, City staff will continue a comprehensive review of its policies and potential regulations regarding recreational marijuana businesses and private marijuana cultivation, in light of Proposition 64. ALTERNATIVE ACTION: None FISCAL IMPACT There is no fiscal impact associated with this item. Page 2 Packet Pg. 118 ATTACHMENTS Public Notice Urgency Ordinance Extension Staff Report - Dec. 13, 2016 Prop 64 Moratorium 10-Day Report (Marijuana Moratorium Extension) Page 3 Packet Pg. 119 20.a NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the City Council of the City of Santa Clarita will conduct a public hearing on Tuesday, January 24, 2017, at 6:00 p.m., in the Council Chambers, located at 23920 Valencia Blvd., Santa Clarita, California, to consider the following: ADOPTION OF AN ORDINANCE EXTENDING THE MORATORIUM ON PRIVATE MARIJUANA CULTIVATION AND NON -MEDICAL MARIJUANA FACILITIES FOR A PERIOD OF 10 MONTHS AND 15 DAYS On December 13, 2016, the City of Santa Clarita considered and adopted by 4/5'" vote an interim urgency ordinance imposing a moratorium on non -medical marijuana facilities and private marijuana cultivation ("Moratorium"). The Moratorium is effective for a period of 45 days from its adoption, and is set to expire on January 27, 2017. The City of Santa Clarita will review any applicable studies by City staff concerning the conditions underlying the need for the Moratorium and consider whether to extend the Moratorium on non -medical marijuana facilities and private marijuana cultivation for a period of 10 months and 15 days, under Government Code section 65858(a). The proposed ordinance is exempt from the California Environmental Quality Act under State CEQA Guidelines sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment), 15060(c)(3) (the activity is not a project as defined in Section 15378), and 15061(b)(3), because the proposed ordinance will have no potential for resulting in any significant physical change to the environment, either directly or indirectly. For further information regarding this ordinance, you may contact James Chow, Senior Planner, at (661) 255-4916. Copies of the agenda report including the proposed ordinance will be available for review prior to the public hearing on the City's website at www.santa-clarita.com and at the City Clerk's Office at Santa Clarita City Hall located at 23920 Valencia Blvd., Suite 120, Santa Clarita, California. Any person interested in these matters is invited to attend and present testimony either for or against the above item. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice or in written correspondence delivered to the City Council at or prior to the public hearing. Mary Cusick, City Clerk Publish Date: January 13, 2017 a Packet Pg. 120 20.b ORDINANCE NO. AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, EXTENDING A TEMPORARY MORATORIUM PERTAINING TO PRIVATE MARIJUANA CULTIVATION AND NON -MEDICAL MARIJUANA FACILITIES THE CITY COUNCIL OF THE CITY OF SANTA CLARITA DOES ORDAIN AS FOLLOWS: SECTION 1. Findings. A. As set forth in Municipal Code Section 17.43.010.14, the City of Santa Clarita prohibits medical marijuana dispensaries in all City zones. Medical marijuana dispensaries are defined as "any site, facility, location, use, cooperative or business, including vending machines, which distributes, sells, exchanges, processes, delivers, gives away, or cultivates marijuana for medical purposes to qualified patients, health care providers, patients' primary caregivers, or physicians." B. On November 8, 2016, the voters of the State of California (State) approved Proposition 64, entitled the "Control, Regulate and Tax Adult Use of Marijuana Act." C. Proposition 64 legalizes and regulates recreational marijuana in California. Proposition 64 requires recreational marijuana businesses, including cultivators, manufacturers, distributors, retailers, and testing laboratories, to obtain a State license in order to operate lawfully. The State will not issue licenses if the proposed recreational marijuana business violates a local ordinance. The State anticipates that it will begin issuing licenses for recreational marijuana businesses on or about January 1, 2018. D. Business and Professions Code Section 26200, which is part of Proposition 64, expressly recognizes the ability of cities to completely prohibit all recreational marijuana businesses or to regulate such businesses. E. Under Proposition 64, individuals may possess and use specified amounts of marijuana and may cultivate up to six marijuana plants per private residence. Under Health and Safety Code Section 11362.2(b), cities may prohibit private outdoor marijuana cultivation, but may not prohibit completely private indoor cultivation of six marijuana plants or less. Cities, however, may reasonably regulate private indoor cultivation of six marijuana plants or less. F. It is imperative that the City maintain local control over all marijuana land uses to the fullest extent allowed by law. The City anticipates that Proposition 64 may encourage the establishment of various marijuana businesses within the City. The Municipal Code does not currently address recreational marijuana businesses. While no such business can operate in the City lawfully without a State license, express Municipal Code regulations regarding recreational marijuana dispensaries, cultivation facilities, manufacturing sites, transporters, distributors, testing laboratories, and micro -businesses are necessary to provide clear guidelines regarding the scope of prohibited conduct and minimize the potential for confusion regarding the City's policies. Packet Pg. 121 20.b G. Express Municipal Code regulations are also necessary to provide clear guidance regarding the scope of permissible private cultivation. The City anticipates that many individuals will begin to cultivate marijuana at their private residences following the passage of Proposition 64. H. The adoption of a comprehensive marijuana ordinance that addresses both private cultivation and commercial recreational marijuana businesses will take time and careful consideration, and will require input from various community stakeholders and the general public. Until that process is complete, an Urgency Ordinance, under Government Code Section 65858(a), is necessary to protect the public health, safety, and welfare. I. Marijuana establishments and activities often present public health, safety, and welfare issues for cities. Several California cities and counties have experienced serious adverse impacts associated with and resulting from marijuana dispensaries, delivery services, and cultivation sites. According to these communities and according to news stories widely reported, marijuana land uses have resulted in and/or caused an increase in crime, including burglaries, robberies, violence, and illegal sales and use of marijuana in the areas immediately surrounding such marijuana activities. There have also been large numbers of complaints of odors related to marijuana cultivation and storage. Marijuana cultivation sites are often associated with illegal construction, unsafe electrical wiring, excessive water use, and fire hazards. J. A California Police Chiefs Association compilation of police reports, news stories, and statistical research regarding crimes involving medical marijuana businesses and their secondary impacts on the community is contained in a 2009 white paper report, which was Attachment 1 to the staff report presented to the City Council on December 13, 2016, when the City Council voted to adopt an Urgency Ordinance establishing a 45-day temporary moratorium pertaining to private marijuana cultivation and non -medical marijuana facilities. The report details numerous violent crimes that occurred throughout the state in and around medical marijuana establishments. K. The Santa Clara County District Attorney's Office issued a May 2014 memorandum entitled "Issues Surrounding Marijuana in Santa Clara County," which outlined many of the negative secondary effects resulting from marijuana cultivation; a copy of this memorandum was Attachment 2 to the staff report presented to the City Council on December 13, 2016. According to the memorandum, marijuana cultivation sites were often associated with illegal construction, haphazard electrical wiring, electricity theft, fires, mold and fungus problems, diversion of public water, pollution of waterways, firearm violations, crimes, and organized crime and street gang involvement. L. Manufacturing of cannabis products can involve the use of chemicals and solvents and, as a result, carries a significant risk of explosion due to the distillation process utilized to extract tetrahydrocannabinol. Major burn treatment centers at two hospitals in Northern California reported in 2015 that nearly 10 percent of severe burn cases were attributed to butane hash oil explosions, which was more than burn cases from car accidents and house fires combined. M. News stories regarding adverse impacts of marijuana businesses, including dispensaries, cultivation sites, and delivery services, were included in Attachment 3 to the staff report Packet Pg. 122 20.b presented to the City Council on December 13, 2016. As detailed in these stories, marijuana establishments and cultivation sites are frequent targets of violent crimes, including robberies and assaults, in part because banking institutions will not accept credit card payments for illegal drugs under federal law, forcing such businesses to be cash -only. There is also significant evidence that marijuana delivery services are targets of violent crime and pose a danger to the public. N. Marijuana processing has led to explosions across the country because the processing of marijuana -related products, such as cannabis oils, often involves the use of butane gas flames. O. In 2015, there reportedly were at least five marijuana -related wildfires linked to marijuana growing operations. P. In 2016, a New York firefighter died in an explosion at a residential marijuana cultivation site. Q. It is reasonable to conclude that marijuana businesses and private cultivation under Proposition 64 would cause similar adverse impacts on the public health, safety, and welfare in Santa Clarita. R. In order to protect the public health, safety, and welfare, the City Council desires to amend the Municipal Code to address, in express terms, recreational marijuana businesses, marijuana deliveries, and private marijuana cultivation. The City Council hereby determines that the Municipal Code is in need of further review and possible revision to protect the public against potential negative health, safety, and welfare impacts, and to address private marijuana cultivation and the new marijuana business models recognized under Proposition 64. S. Government Code Section 65858 authorizes the adoption of an Urgency Ordinance for a period of 45 days to protect the public health, safety, and welfare, and to prohibit land uses that may conflict with land use regulations that a city's legislative bodies are considering, studying, or intending to study within a reasonable time. T. On December 13, 2016, the City Council adopted Ordinance No. 16-12 establishing a 45-day moratorium pertaining to private marijuana cultivation and non -medical facilities. U. Since December 13, 2016, City staff has investigated what provisions should be included in a permanent ordinance for non -medical marijuana with regard to marijuana businesses (including cultivation, manufacturing, distribution, testing, and retail sales), outdoor cultivation, indoor cultivation, and delivery of non -medical marijuana to residents of the City of Santa Clarita. The State is currently reviewing Proposition 64 for the purpose of drafting regulations relating to non -medical marijuana. Those regulations are expected to take several months to be drafted and approved by the State. These regulations will be reviewed by City staff in connection with drafting proposed provisions for a permanent ordinance to address the issues involved with non -medical marijuana. V. City staff needs additional time to review the potential provisions for a permanent non- medical marijuana ordinance, to review the proposed State regulations which are expected to be issued in 2017, and to recommend a course of action to the City Council, Packet Pg. 123 20.b while avoiding the potential adverse impacts of non -medical marijuana facilities and private marijuana cultivation that may arise as the City develops permanent regulations. W. Government Code Section 65858 provides that, after a notice pursuant to Government Code Section 65090 and public hearing, the City Council may extend the Urgency Ordinance for 10 months and 15 days. The City has complied with the notice and public hearing requirements of Government Code Sections 65858(a) and 65090. Government Code Section 65858(d) requires that prior to adoption of the Urgency Ordinance extending the moratorium, a report is required to be submitted to the City Council describing the measures taken to alleviate the condition which led to the adoption of the Urgency Ordinance. That report has been made available to the public at the City Clerk's Office. In addition, the agenda report accompanying this Urgency Ordinance provides the information required under Government Code Section 65858(d). X. Failure to adopt this Urgency Ordinance extending the moratorium would impair the orderly and effective implementation of contemplated amendments to the Municipal Code. Y. The City Council further finds that the extension of this moratorium is a matter of local and City-wide importance, and is not directed towards any particular person or entity that seeks to cultivate marijuana in Santa Clarita. SECTION 2. Environmental Findings. The City Council exercises its independent judgment and finds that this ordinance is not subject to the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, Sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3) (the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment). The Urgency Ordinance maintains the status quo and prevents changes in the environment pending the completion of the contemplated Municipal Code review. Because there is no possibility that this Urgency Ordinance may have a significant adverse effect on the environment, its adoption is exempt from CEQA. SECTION 3. Imposition of Moratorium. In accordance with Government Code Section 65858(a), and pursuant to the findings stated herein, the City Council: (1) finds that there exists a current and immediate threat to the public health, safety, and welfare requiring this Urgency Ordinance; (2) finds that this Urgency Ordinance is necessary for the immediate preservation of the public peace, health, and safety as set forth herein; and (3) declares and imposes a temporary moratorium for the immediate preservation of the public health, safety, and welfare as set forth below: A. In accordance with the authority granted the City of Santa Clarita under Government Code Section 65858(a), and pursuant to the findings stated herein, for a period of 10 months and 15 days from the expiration date of January 27, 2017: 1. Non -medical marijuana facilities are prohibited in all zoning districts in the City and shall not be established or operated anywhere in the City. Packet Pg. 124 20.b 2. No person or entity may cultivate marijuana at any location in the City, except that a person may cultivate no more than six living marijuana plants inside his or her private residence, or inside an accessory structure to his or her private residence located upon the grounds of that private residence that is fully enclosed and secured against unauthorized entry, provided that the owner of the property provides: 1) written consent expressly allowing the marijuana cultivation to occur; 2) the person conducting the marijuana cultivation complies with all applicable Building Code requirements set forth in Title 18 of the Municipal Code; 3) there is no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of marijuana cultivation; and 4) the marijuana cultivation complies with Health and Safety Code Section 11362.2(a)(3). 3. A non -medical marijuana facility may not deliver marijuana from any fixed or mobile location, either inside or outside the City, to any person in the City. B. For purposes of this ordinance, the following definitions apply: "Cultivate" means to plant, grow, harvest, dry, cure, grade, and/or trim marijuana. "Cultivation" means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of marijuana. "Marijuana" shall have the meaning set forth in Health and Safety Code Section 11018. "Non -medical marijuana facility" means any building, property, business, establishment, or location where any person or entity establishes, commences, engages in, conducts, or carries on, or permits another person or entity to establish, commence, engage in, conduct, or carry on, any activity that requires a State license or nonprofit license under Business and Professions Code Sections 26000 and following, including but not limited to marijuana cultivation, marijuana distribution, marijuana transportation, marijuana storage, manufacturing of marijuana products, marijuana processing, the sale of any marijuana or marijuana products, and the operation of a marijuana microbusiness. C. City staff is directed to study appropriate modifications to the City's ordinances regarding non -medical marijuana facilities and marijuana cultivation. D. Pending the completion of such studies and the adoption of an ordinance to establish appropriate operational and zoning regulations, it is necessary for the immediate preservation of the public health, safety, and welfare that this ordinance takes effect immediately. In the absence of immediate effectiveness, such uses in the City may conflict with existing regulations or requirements. E. This Urgency Ordinance will take effect immediately upon adoption by a four -fifths vote of the City Council. SECTION 4. Severability. If any section, subsection, sentence, clause, or phrase of this ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this Packet Pg. 125 20.b ordinance. The City Council declares that it would have passed this ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. Effective Date and Duration. This Urgency Ordinance, enacted under California Government Code Section 65858(a), will take effect on January 27, 2017, upon adoption by a four fifths vote of the City Council. This Urgency Ordinance will remain in effect for 10 months and 15 days from the effective date, and will expire on December 12, 2017, unless extended. SECTION 6. Study. City Staff is directed to continue to study and analyze issues related to the establishment or operation of recreational marijuana businesses and private marijuana cultivation within the City, including but not limited to, reviewing State regulations which are expected to be drafted and adopted in 2017, evaluating conflicts in State and federal law concerning the validity of the legislation, the potential impacts of such facilities or activities on public health, safety, and welfare of the community, the desirability of such facilities or activities in various zones, and the extent of regulatory controls, if any, to impose on such facilities or activities. SECTION 7. Report. Staff is directed to provide a written report to the City Council at least ten days prior to the expiration of this Urgency Ordinance, describing the study conducted of the conditions that led to the adoption of this Urgency Ordinance, in accordance with State law. SECTION 8. Publication. The City Clerk is directed to certify this ordinance and cause it to be published in the manner required by law. PASSED, APPROVED, AND ADOPTED January 24, 2017. Mayor Attest: City Clerk Packet Pg. 126 20.b STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF SANTA CLARITA ) I, Mary Cusick, City Clerk of the City of Santa Clarita, do hereby certify that the foregoing Ordinance No. 17- was duly passed and adopted at a regular meeting of the City Council held on January 24, 2017, by the following vote: AYES: Councilmembers: NOES: Councilmembers: ABSENT: Councilmembers: AND I FURTHER CERTIFY that the foregoing is the original of Ordinance 17-- and was published in The Signal newspaper in accordance with State Law (G.C. 40806). City Clerk Packet Pg. 127 Agenda Item• 21 CITY OF SANTA CLARITA AGENDA REPORT NEW BUSINESS CITY MANAGER APPROVAL: bn , 4�410 DATE: December 13, 2016 SUBJECT: PROPOSITION 64 MORATORIUM DEPARTMENT: Community Development PRESENTER: Joseph Montes RECOMMENDED ACTION City Council adopt an Ordinance entitled "AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA CLARITA, CALIFORNIA, ADOPTING A MORATORIUM PERTAINING TO PRIVATE MARIJUANA CULTIVATION AND NON- MEDICAL MARIJUANA FACILITIES." BACKGROUND On November 8, 2016, California voters approved Proposition 64, known as the "Control, Regulate and Tax Adult Use of Marijuana Act." Proposition 64 allows individuals to possess, use, and cultivate recreational marijuana in certain amounts. An individual may possess up to 28.5 grams of non -concentrated marijuana or eight grams of marijuana in a concentrated form, such as marijuana edibles. In addition, an individual may cultivate up to six marijuana plants at his or her private residence, provided that no more than six plants are being cultivated on the property at one time. Proposition 64 also establishes a regulatory system for commercial businesses that is very similar to the medical marijuana regulatory system the state legislature created last year. Under Proposition 64, recreational marijuana cultivators, manufacturers, distributors, retailers, and testing laboratories may operate lawfully if they obtain a state license to operate, and they comply with local ordinances. Proposition 64 does not limit local police power authority over commercial marijuana business and land uses. Cities may prohibit such businesses completely if they so choose. However, with regard to private cultivation, there is one important limitation on local police power: Cities may ban private outdoor marijuana cultivation, but they may not completely ban private indoor cultivation of six marijuana plants or less. Proposition 64 provides that private indoor cultivation of six marijuana plants or less is lawful under both state and local law, and is only subject to "reasonable" local regulations. Page 1 LJ Packet Pg. 128 Under Proposition 64, the California Department of Consumer Affairs, Department of Food and Agriculture, and Department of Public Health are responsible for issuing state licenses to commercial recreational marijuana businesses. No marijuana business can operate without a state license from one of these agencies, who are drafting regulations that will govern their respective areas of responsibility. Based on the latest information from the state, these agencies will not be ready to issue any state marijuana licenses until January 2018. Despite that lengthy time -frame for state marijuana licenses, there is a need for urgent action by the City Council. Municipal Code Section 17.43.010.14 currently prohibits all medical marijuana businesses and all marijuana cultivation in the City of Santa Clarita (City), but the Municipal Code does not expressly address recreational marijuana businesses. Staff anticipates that Proposition 64 will encourage the establishment of various recreational marijuana businesses in the City. While unlicensed marijuana businesses would be unlawful under state law and therefore prohibited under the City's general public nuisance standards, express regulations will make enforcement easier and will minimize the potential for confusion regarding the City's marijuana policies. This will decrease the potential for unnecessary nuisance abatement litigation. This is significant because many California cities have experienced negative secondary effects from medical marijuana businesses, including dispensaries, cultivation facilities, and delivery services, as demonstrated by the attached 2009 White Paper from the California Police Chiefs Association (Attachment 1), the 2014 memorandum from the Santa Clara County District Attorney (Attachment 2), and various news stories from throughout the country (Attachment 3). In addition, express Municipal Code regulations are necessary to provide clear guidance to the public regarding the scope of permissible private cultivation. Proposition 64 took effect immediately upon voter approval.. Staff anticipates that many individuals will now begin to cultivate marijuana at their private residences. In light of Proposition 64, the City can no longer enforce its existing marijuana cultivation ban against private indoor cultivation of six marijuana plants or less. Such unregulated conduct could have significant adverse impacts for the City. As demonstrated in the attachments to this staff report, indoor marijuana cultivation sites are often associated with illegal construction, haphazard and unsafe electrical wiring, electricity theft, fires, mold and fungus problems, diversion of public water, pollution of waterways, and excessive water use. Permanent regulations will take time. Based on existing case law, the City Council should treat the regulation of marijuana businesses and cultivation as a land use issue. The City, therefore, must follow Government Code Section 65853, which requires a noticed public hearing before the Planning Commission and a noticed public hearing before the City Council for the consideration of all proposed marijuana businesses. During the time it takes to complete this process, the City could experience significant adverse impacts from unlicensed recreational marijuana businesses and unregulated private marijuana cultivation. Therefore, an Urgency Ordinance is appropriate. Government Code Section 65858 authorizes the adoption of an Urgency Ordinance to protect the public health, safety, and welfare, and to prohibit land uses that may conflict with land use regulations that a city's legislative bodies are considering, studying, or intending to study within a reasonable time. An Urgency Ordinance will allow the City to protect public health, safety, and welfare while the City Council evaluates Page 2 Packet Pg. 129 20.c 21 its options for permanent marijuana regulations. , The proposed Urgency Ordinance imposes the following three temporary restrictions: All commercial non -medical marijuana businesses that require a license under Proposition 64 will be prohibited while the Urgency Ordinance is in effect. This temporary prohibition will apply to recreational marijuana cultivation, manufacturing, distribution, testing, and retail sales. • All private marijuana cultivation will be prohibited, except that an individual may cultivate no more than six living marijuana plants inside his or her private residence, or inside an accessory structure to his or her private residence located upon the grounds of that private residence that is fully enclosed and secured against unauthorized entry, provided that: 1) the owner of the property provides written consent expressly allowing the marijuana cultivation to occur; 2) the person conducting the marijuana cultivation complies with all applicable Building Code requirements set forth in Title 15 of the Municipal Code; 3) there is no use of gas products (CO2, butane, propane, natural gas, etc.) on the property for purposes of marijuana cultivation; and 4) the marijuana a and cultivation complies with Health and Safety Code Section 11362.2(a)(3). Safety Code Section 11362.2(a)(3) provides that no more than six marijuana plants may be cultivated at or upon the grounds of a private residence at one time. Non -medical marijuana businesses, including nonprofit businesses, are prohibited from delivering marijuana to people in the City. If approved by a four -fifths vote, the Urgency Ordinance will be effective for 45 days. After providing notice and holding a public hearing, the City Council, upon a four -fifths vote, may extend the Urgency Ordinance for 10 months and 15 days. The City Council may subsequently extend the Urgency Ordinance for an additional year. While the Urgency Ordinance is in effect, the City will undertake a comprehensive review of its policies and potential regulations regarding recreational marijuana businesses and private marijuana cultivation in light of Proposition 64. The Urgency Ordinance is not subject to the California Environmental Quality Act (C Chapter pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Sections: 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3) (the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment). The proposed Urgency Ordinance maintains the status quo and prevents changes in the environment, pending the completion of the contemplated Municipal Code review. Because there is no possibility that this Urgency Ordinance may have a significant adverse effect on the environment, its adoption is exempt from CEQA. ALTERNATIVE ACTION 1. Direct further modifications to the Urgency Ordinance. 2. Other action as directed by City Council. Page 3 Packet Pg. 157 Packet Pg. 130 20.c 21 FISCAL IMPACT There is no fiscal impact associated with this item. ATTACHMENTS 2009 White Paper from the California Police Chiefs Association 2014 Memorandum from the Santa Clara County District Attorney Various News Stories from Throughout the Country Urgency Ordinance Page 4 ��Packet 158 Pg. 131 20.d 10-DAY REPORT ON THE CITY OF SANTA CLARITA'S MORATORIUM ON PRIVATE MARIJUANA CULTIVATION AND NON -MEDICAL MARIJUANA FACILITIES BACKGROUND On December 13, 2016, pursuant to Government Code Section 65858, the City Council of the City of Santa Clarita, California, enacted Urgency Ordinance No. 16-12, imposing a 45-day moratorium on private marijuana cultivation and non -medical marijuana facilities. The Urgency Ordinance prohibits non -medical marijuana facilities City-wide, prohibits any person or entity from cultivating marijuana at any location in the City (with a limited exception for personal indoor cultivation of six marijuana plants or less), and prohibits non -medical marijuana facilities from delivering to any person in the City. Government Code Section 65858 allows an initial 45-day moratorium to be extended for up to 10 months and 15 days after a noticed public hearing is held. A second extension for up to an additional 12 months is also allowed. As required by Government Code Section 65858(d), the City must produce a report 10 days prior to extending a moratorium that describes the measures taken since the adoption of the Urgency Ordinance. UPDATE ON THE MEASURES TAKEN TO ALLEVIATE THE CONDITIONS THAT LED TO THE ADOPTION OF THE URGENCY ORDINANCE 1. The City is currently considering its options for regulating private marijuana cultivation and non -medical marijuana facilities and businesses. With regard to private marijuana cultivation, the City must evaluate the extent to which it wants to regulate private indoor cultivation of six marijuana plants or less, and the extent to which it wants to allow and regulate other forms of private cultivation. With regard to non -medical marijuana businesses, the City must analyze a range of regulatory options and their potential impacts on the community, and the enforceability of non -medical marijuana regulations. 2. The City is analyzing the potential negative impacts that could stem from private cultivation and/or non -medical marijuana businesses, including but not limited to property crimes, loitering, drugged driving, business displacement, nuisance conditions, and fire hazards. This analysis includes an evaluation of issues that other cities have faced or are facing with regard to marijuana land uses, and how the City could avoid or minimize negative secondary effects that may occur if the City were to allow non -medical marijuana facilities. 3. The adoption of a comprehensive marijuana ordinance that addresses both private cultivation and commercial recreational marijuana businesses will take time and careful consideration, and will require input from various community stakeholders and the general public. There has been insufficient time since the adoption of Urgency Ordinance No. 16-12 to complete this process. The City, therefore, needs additional time, as allowed under Government Code Section 65858, to fully address the conditions that led to the adoption of Urgency Ordinance No. 16-12. Packet Pg. 132