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<br />At a later date, the City Council will consider a ballot measure to place an excise tax on <br />cannabis business activity. The projected annual revenue of $175,000 does not include <br />the proceeds from an excise tax, only the value of the cost-recovery fees associated <br />with regulatory activity. <br /> <br />ENVIRONMENTAL REVIEW <br />Two CEQA exemptions relate to the proposed ordinances. Allowances for indoor <br />nurseries are statutorily exempt from the requirements of CEQA (Bus. & Prof. Section <br />26055(h)) because they will require a Conditional Use Permit. This section states that <br />CEQA does not apply to the adoption of an ordinance, rule or regulation by a local <br />jurisdiction that requires discretionary review and approval of other permits or licenses. <br />To qualify for this exemption, environmental review must be performed as part of the <br />discretionary permit. <br />In addition, it can be seen with certainty that the proposed ordinances as it relates to <br />Delivery Centers do not have the potential to cause a significant impact on the <br />environment. Delivery centers are substantially similar to warehousing and distribution <br />centers that are currently permitted by right in these zoning districts. Any potential <br />impacts, including traffic, water, energy or air pollution are substantially similar to what <br />is currently permitted by right. <br /> <br /> <br />CATHERINE RALSTON <br />ECONOMIC DEVELOPMENT MANAGER <br /> <br />MELISSA STEVENSON DIAZ <br />CITY MANAGER <br /> <br />ATTACHMENTS: <br />1. Ordinance Amending Chapter 59 of the Zoning Code (Cannabis Cultivation and <br />Commercial Cannabis Activity) <br />2. Ordinance Amending Municipal Code Chapter 32 by adding Division 7 <br />(Regulations of Cannabis Businesses) to Article V. <br />3. Zoning Map indicating potential sites for cannabis uses and current sensitive <br />receptor sites within 600 feet. <br />4. Staff report from April 9, 2018 City Council Meeting <br /> <br />6.4.A. - Page 6