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6A.B. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />July 23, 2018 <br />SUBJECT <br />Adoption of an Ordinance Amending Zoning Ordinance Article 59 to Allow Cannabis <br />Businesses in the Commercial Office (CO) Zoning District. Adoption of an Ordinance <br />Amending Zoning Ordinance Article 59 to Allow Cannabis Businesses in the <br />Commercial Office (CO) Zoning District <br />RECOMMENDATION <br />Waive the Second Reading and Adopt an Ordinance Amending Zoning Ordinance <br />Article 59 (Cannabis Cultivation and Commercial Cannabis Activity) and an Ordinance <br />Amending Municipal Code, Chapter 32, Article V, Division 7 (Regulation of Cannabis <br />Businesses), and find that the projects are exempt from the requirements of CEQA <br />under Section 26055(h) of the Business and Professions Code <br />BACKGROUND <br />On June 25, 2018 the City Council introduced Ordinances amending the Zoning <br />Ordinance and Municipal Code. These new amendments conditionally permit Cannabis <br />Delivery Centers and Cannabis Nurseries in the CO Zoning District, revise the criminal <br />background process for cannabis businesses, and make minor clean-up changes. <br />Previously, in May of this year, Council authorized cannabis delivery centers and <br />nurseries in the City's four industrial zoning districts. The action on June 25 introduced <br />amendments adding one additional zoning district, the CO Zoning District, for potential <br />location. The June 25t staff report, which includes additional analysis, is attached to this <br />report. <br />ANALYSIS <br />In the City Council staff report, staff analyzed potential amendments to both the zoning <br />ordinance and the clarifying amendments to the Municipal Code (Attachment 3). The <br />City Council concurred with staff and Planning Commission recommendations and <br />introduced the ordinances. If City Council adopts the ordinances, they will become <br />effective on Wednesday, August 22, 2018. <br />