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6A.A. - Page 1 <br />REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br />August 27, 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 <br />RECOMMENDATION <br />Waive the Second Reading and Adopt an Ordinance Amending Zoning Ordinance <br />Article 59 (Cannabis Cultivation and Commercial Cannabis Activity) and find that the <br />project is exempt from the requirements of CEQA under Section 26055(h) of the <br />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 of cannabis businesses. The June 25th staff report, which includes additional <br />analysis, is attached to this report. <br />On July 23, 2018, a second reading was held for the two ordinances. Due to a clerical <br />error, several of the pages were missing from the Zoning Ordinance amendment. While <br />the Municipal Code Amendment was adopted, an additional second reading is required <br />for the Zoning Ordinance Amendment. <br />ANALYSIS <br />In the City Council staff report, staff analyzed potential amendments to the zoning <br />ordinance. The City Council concurred with staff and Planning Commission <br />recommendations and introduced the ordinance. If City Council adopts the zoning <br />ordinance amendment, it will become effective on Wednesday, September 26, 2018. <br />