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  Regular-General Government   # 25.       
Board of Supervisors County Administrator  
Meeting Date: 03/20/2018  
Brief Title:    Cannabis Program Updates - Land Use Ord Outline & Ascent PEIR Work Authorization
From: Mindi Nunes, Assistant County Administrator, County Administrator's Office
Staff Contact: Susan Strachan, Senior Management Analyst, County Administrator's Office, x8170
Supervisorial District Impact:

Subject
Receive an update and public comment on the Cannabis Land Use Ordinance outline and approve a Work Authorization for $375,000 for Ascent Environmental to prepare the Programmatic Environmental Impact Report for the Cannabis Land Use Ordinance for the term March 2018 – May 2019. (No general fund impact) (Blacklock/Stachan)
Recommended Action
Receive an update and public comment and provide direction and action regarding the following County cannabis program items:
  1. Provide direction on the Cannabis Land Use Ordinance outline; and
     
  2. Approve a Work Authorization for $375,000 for Ascent Environmental to prepare the Programmatic Environmental Impact Report for the Cannabis Land Use Ordinance for the term March 2018 – May 2019.

  3.  
Strategic Plan Goal(s)
Operational Excellence
Thriving Residents
Safe Communities
Reason for Recommended Action/Background
On January 9, 2018, the Board approved a three-pronged strategy for the County’s cannabis program.  Although complementary and part of an integrated program approach, each strategy will operate on its own timeline.   The updated schedule for the comprehensive cannabis program is listed below. The schedule is also included in Attachment A:
 
  • June 2018 Tax Measure (Schedule: Board action on amended tax ordinance and resolution and Board direction on the composition of the Citizen’s Oversight Committee and scope of authority - Complete; Board action on resolution creating a Citizen’s Oversight Committee -TBD);
  • Development Agreements (Schedule: Board direction and/or approval of formal policy on early implementation development agreements for capital intensive cannabis projects – Complete; Letters of Intent due April 6, 2018; Applications due May 18, 2018);
  •  Development of the comprehensive land use regulations (Schedule: Approve the proposed alternatives and approach to the California Environmental Quality Act (CEQA) Programmatic Environmental Impact Report (PEIR) process and Cannabis Land Use Ordinance (CLUO or ordinance), including consideration of other license categories - Complete; Approval of project CEQA compliance consultant work authorization and contract with Ascent Environmental and Amec Foster Wheeler, respectively - Complete; Presentation of land use ordinance outline and approval of land use ordinance PEIR work authorization with Ascent Environmental – March 20, 2018; The schedule for the remainder of the development of the land use ordinance and CEQA PEIR schedule is included in Attachment A.
The focus of this staff report pertains to the development of the CLUO, specifically, the proposed ordinance outline and PEIR Work Authorization approval.
 
Outline of Proposed Cannabis Land Use Ordinance and Discussion of Approach
As discussed at the March 6, 2018 meeting, the PEIR will analyze the potential environmental effects of implementing a CLUO.  In order to begin the PEIR analysis, staff must have a draft CLUO that addresses each PEIR alternative.   As a precursor to writing the ordinance, staff wanted to demonstrate to the Board how the various PEIR alternatives authorized on March 6 will be reflected in the draft ordinance.  Staff will return in April with the first draft of the ordinance language for the Board’s review. However, it is important to note that the Board will not make a decision regarding adoption of an ordinance until early 2019 when the full PEIR analysis is available to provide a better understanding of the potential impacts of each alternative.
 
The proposed outline for the CLUO is provided in Attachment B (Ordinance Outline).  Attachment B has also been annotated to reflect how various sections will be modified for analysis in the Programmatic EIR based on the Board’s approval of proposed approach to the Programmatic EIR on March 6, 2018. At this meeting, the Board approved five alternatives which will be equally evaluated in the Programmatic EIR. This approach will enable the Board to adopt any one of the alternatives as is, mix and match them, and/or make additional modifications to them so long as the resulting level of impact does not exceed the range of what was analyzed in the EIR.
 
The proposed outline for the CLUO reflects a structure similar to other articles of the County Zoning Regulations.  The CLUO will be drafted to rely on other existing County (or State) regulations wherever possible in order to simplify the process for applicants and staff.  The outline reflects the direction of the Board as embodied in the “Final Guiding Principles for Proposed Cannabis Land Use Ordinance” adopted October 10, 2017 (Attachment C).  Attachment C has been annotated to reflect how each principle has been or will be addressed in the ordinance. 
 
The proposed outline identifies 12 sections.  A summary of each proposed section is provided below:
 
Section 8-2.1401, Relationship to Other Laws – This section will clarify the regulatory relationship between the proposed CLUO and other related regulations in County code.  We have identified four County code chapters that are relevant.  If more are identified they will be added.
 
Section 8-2.1402, Purpose – This section will elaborate on the purpose of the regulations.  This will establish County intent in implementing the code.  This section offers the opportunity to describe primary policy concerns and how they are to be balanced.
 
Section 8-2.1403, Applicability – This section will address various aspects of how the CLUO will be applied. For the various EIR alternatives presented to the Board on March 6th (Attachment D, Ordinance/EIR Alternatives), Section 8-2.1403 (G) related to Commercial Adult Use will be one of the variables we modify in the different alternatives.  For example, in Alternative 1 we will assume no adult use.  In the other alternatives, adult use will be assumed.
 
Section 8-2.1404, Cannabis Use Categories and Use Types – This section will identify each of the State license use types and categorize them for purposes of the CLUO.  Generally, the use types will be as defined in State law.  Sections 8-2.1404(C through E) related to various cannabis use categories and use types will be modified in the different EIR alternatives.  In Alternative 1 we will assume cultivation, nurseries, and processing only.  In Alternatives 2 and 3, we will assume all use types (except Special Events).  In Alternative 4 outdoor uses will be excluded.   In Alternative 5, we will assume the same use types as Alternative 2 with the exclusion of retail.
 
Section 8-2.1405, Cannabis Permit Requirements – This section will clarify the various license and permit requirements.  For purposes of the EIR, the alternatives assume different variations on numbers and locations of operations.  Alternative 1 will assume 80 licenses with no specific control on over-concentration.  Alternatives 2 and 4 will assume 132 licenses each and both will assume control on over-concentration.  Alternative 3 will assume 264 licenses with control on over-concentration.  Alternative 5 will assume 130 licenses with no control on over-concentration.
 
Section 8-2.1406, Table of Cannabis Development Requirements – This section will identify in table format which use types are allowed in which zone districts as well as other applicable development requirements, such as maximum canopy area and buffers from sensitive uses.  This table would be modified to reflect the differences between the alternatives in terms of use types and allowed zones.  Per the March 6, 2018 direction of the Board, special 1,000-foot buffers from identified sensitive uses including individual residences will be assumed for Alternatives 2, 3, and 5.  Alternatives 1 will assume 75-foot buffers from individual residences and Alternative 4 will assume only the 600-foot buffers from schools, day cares, and youth centers required by the State CDFA Emergency Regulations Section 8102(w).
 
Section 8-2.1407, Specific Use Requirements and Performance Standards -- This section will provide specific requirements and standards by topic to guide operations for all use types.  For EIR purposes, the same buffer variations by alternative as described above will be assumed in Section 8-2.1407(D), Buffers.
 
Section 8-2.1408, Definitions – At a minimum, this section will provide definitions that are not addressed in, or that differ from, other state or local regulations.
 
Section 8-2.1409, Special Cannabis Restrictions and Concerns – This section will identify and disclose restrictions and concerns unique to cannabis including the current federal framework, the potential for changes in the regulatory environmental at all levels, and limitations on County liability.
 
Section 8-2.1410, Application Submittal and Processing – This section will identify information required for the cannabis use permit application specific to the proposed site and operation.  This section will set general code compliance requirements and explain development agreement requirements specific to cannabis applications.  This section will also explain the intent to achieve project-specific CEQA coverage from the programmatic EIR.
 
Section 8-2. 1411, Reporting and Inspections – This section will identify annual reporting and inspection requirements, and describe how that information will be presented to the Planning Commission and Board.
 
Section 8-2.1412, Enforcement – This section will describe the enforcement process and related topics, including violations, abatement, and appeals. If other sections of the County code are determined to adequately address this topic, this section may be unnecessary.
 
As a part of bringing forward the proposed CLUO we will propose amendments to the General Plan as appropriate.  We will also identify other County regulations that require modification to ensure consistency. 
 
We request the Board’s concurrence to move forward with the CLUO outline and approach described above. When staff returns to the Board in April with the first draft of the ordinance, we will also seek direction from the Board regarding which alternative to assume as the proposed project for PEIR purposes.  While this is a requirement for the PEIR, it is important to note that this will not restrict the Board’s ability to ultimately adopt a different alternative.  Moreover, staff wants to clarify that the Board will not make a decision regarding adoption of the ordinance until we return after the first of the year and have the full EIR analysis to provide background information.
 
Work Authorization – Ascent Environmental for Programmatic EIR
On December 6, 2017, Community Services issued a Request for Qualifications (RFQ) to qualified environmental consulting firms for preparation of the PEIR for the CLUO. A total of five proposals were received. The proposal submitted by Ascent Environmental, Inc (“Ascent”) was evaluated and determined to meet all the required qualifications necessary to successfully prepare the PEIR.
 
The County has an On-Call Consultant Services agreement with Ascent which is valid through June 30, 2020. Staff is seeking Work Authorization approval for Ascent to prepare the PEIR for the CLUO. The specific scope of work for the PEIR is included in Attachment E. To ensure that specific issues of concern for Yolo County are thoroughly addressed in the PEIR, the Ascent team includes KD Anderson to provide the CEQA traffic and circulation impact analysis and Trinity Consultants which will provide input on odor mitigation and performance standards. Trinity Consultants has staff with extensive odor experience, including odor sampling, monitoring, modeling, and complaint response projects. They have assisted a variety of industries on odor related matters, including: agriculture processing, landfills and waste disposal operators, and animal and food processing.
 
Based on the proposal received from Ascent, the PEIR cost is $362,070. The cost breakdown is included in Attachment E. This cost reflects the scope of the PEIR approved by the Board March 6th, which will include five alternatives to be evaluated equally, allowing the board to adopt any one of the alternatives as is, mix and match them, and/or make additional modifications to them so long as the resulting level of impact does not exceed the range of what was analyzed in the EIR.
 
The cost of the PEIR is in keeping with the cost of cannabis PEIRs prepared for other counties. Specifically, staff contacted Calaveras, Humboldt, Santa Barbara, and Santa Cruz counties and obtained the costs of the PEIRs prepared for their cannabis land use ordinances. The PEIR costs ranged from $218,000 - $450,000, with the average cost being $292,250.  It is important to note that Ascent’s cost for the PEIR includes the preparation of five alternatives to be equally evaluated, as approved by the Board on March 6th. Whereas, the PEIR alternative analyses for the aforementioned counties consisted of a comparative assessment of each alternative in relation to the preferred project. This type of analysis is substantively less time consuming and costly compared to evaluating each alternative equally, as Ascent will do.
 
The Work Authorization for which staff is seeking approval is for $375,000, which includes a $12,930 contingency. The cost of the PEIR would be charged to the cannabis fund and a recovery fee will be imposed on cannabis cultivation use permits once the land use ordinance has been approved. The period of performance under the Work Authorization is March 2018 – May 2019.
Collaborations (including Board advisory groups and external partner agencies)
County Counsel, Cannabis Task Force, Department of Community Services, Department of Financial Services, County Administrator's Office

Fiscal Impact
No Fiscal Impact
Fiscal Impact (Expenditure)
Total cost of recommended action:    $   0
Amount budgeted for expenditure:    $   0
Additional expenditure authority needed:    $   0
On-going commitment (annual cost):    $  
Source of Funds for this Expenditure
$0
Attachments
Att. A. Cannabis Program Schedule
Att. B. Ordinance Outline
Att. C. Guiding Principle Annotated
Att. D. Ord/PEIR Alternatives
Att. E. Ascent PEIR Scope & Budget
Att. F. Presentation

Form Review
Form Started By: sstrachan Started On: 03/07/2018 12:56 PM
Final Approval Date: 03/15/2018

    

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