COUNTY OF SONOMA PERMIT AND RESOURCE MANAGEMENT DEPARTMENT 2550 Ventura Avenue, Santa Rosa, CA (707) FAX (707)

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1 COUNTY OF SONOMA PERMIT AND RESOURCE MANAGEMENT DEPARTMENT 2550 Ventura Avenue, Santa Rosa, CA (707) FAX (707) DATE: TO: FROM: SUBJECT: May 15, 2012 at 2:10 p.m. Board of Supervisors Steve Padovan, Project Planner Public hearing on an application for a Use Permit for a Level II Medical Cannabis Dispensary previously approved by the Board of Zoning Adjustments; ; Republic Health Centers, applicant; Supervisorial District No. 3. Action Requested of the Board of Supervisors: The Board is requested to conduct a public hearing on an application for a Use Permit for a Level II Medical Cannabis Dispensary previously approved by the Board of Zoning Adjustments. At the conclusion of the hearing your Board can decide whether to approve or deny the Use Permit. Prior Actions: On December 15, 2011, the Board of Zoning Adjustments (BZA) conducted a public hearing and with a 5-0 vote, continued the item to January 26, Staff had originally recommended denial of the Use Permit because the dispensary was located within 100 feet of a residential zone district and the proposed fencing did not constitute enough of a physical separation to warrant a reduction in the 100 foot setback requirement. However, the BZA found that a solid wood fence and landscape screening, along with a separation of 90 to 100 feet between the dispensary and the nearest residence was an adequate physical separation. The item was thereby continued to allow staff to draft a resolution and conditions of approval along with a request for additional information from the applicant regarding security measures, possible relocation of a school bus stop and arrangement of a neighborhood meeting. On January 26, 2012, the Board of Zoning Adjustments reopened the public hearing and on a 4-1 vote, found the project exempt from CEQA and approved the request by Republic Health Center, Inc. for a Level II Medical Cannabis Dispensary. At the January 31, 2012 Board of Supervisors Meeting, the Board approved a request for a Direct Review of the previously approved Use Permit. On February 7, 2012, the Board of Supervisors adopted Ordinance No which limits the total number of medical marijuana dispensaries in the unincorporated County to nine. This dispensary was the eighth one approved by the County. Location, Zoning and Project Description: The subject property is a 2.05 acre parcel located at 4170 Santa Rosa Avenue, Santa Rosa; APN ; Supervisorial District No. 3. The base zoning is LC (Limited Commercial), M1 (Limited Urban Industrial), and RR (Rural Residential) with a combining zone district of VOH (Valley Oak Habitat) over the entire site. The project site is located within the Santa Rosa Urban Service Area at the northeast corner of Horn and Santa Rosa Avenues and the existing building is on a private well and septic system. Fleming Way, a private driveway that serves several residences to the east, crosses through

2 Page 2 the northerly portion of the property. The site is developed with a 1,561 square foot commercial building which is located on the LC designated portion at the southwestern corner of the lot. The mound septic system is located to the east of the building and the water well is located to the north. There are 10 on-site parking spaces with driveway access provided off South Santa Rosa Avenue. The proposal is for a Level II Medical Cannabis Dispensary, serving over 30 patients per day in an existing 1,561 square foot, recently remodeled commercial building. The dispensary will be operated by Republic Health Center, Inc., a California non-profit mutual benefit corporation and occupies.87 acres of the two acre parcel. The dispensary was approved to operate Monday through Saturday from 10:00 a.m. to 7:00 p.m. with three full-time and three part-time employees and private security. The floor plan consists of a defined lobby/display area at the front of the business with a counter where the patients are checked in to ensure that they have the proper identification and a California issued Medical Marijuana Identification Card. The non-public area beyond the counter includes an office, break room and staff restroom. There are 24-hour closed circuit cameras focused on the parking area, the main entry, the retail/display area and the office. Video will be maintained for a period of 30 days. A small amount of product is on display behind a glass counter in the sales/dispensing area with the majority of the product stored within a safe in the back office. No smoking or consumption of any tobacco, cannabis or alcohol is permitted on or around the premises and exterior modifications are minimal, consisting of a small exterior sign. The facility will operate in the following manner: - Dispensary members are met by security personnel when they enter the facility. - Once proper identification is provided, patients are allowed to proceed into the medical cannabis dispensing area. - A security guard maintains surveillance of all patients and the parking area. - Once the sale is completed, the customer exits through the same door as they entered. Only one visit per day per customer is permitted. As per the Zoning Code, Use Permits for Medical Cannabis Dispensaries are issued for a maximum period of one year and are subject to revocation or modification following a public hearing if the approving body finds that there has been a violation or noncompliance with the Operating Plan or any of the Use Permit conditions, or if the use constitutes a nuisance. In addition, the Use Permit shall expire upon change of tenancy or sale or transfer of the business or property. Furthermore, any Use Permit for a medical cannabis dispensary that is abandoned for a period of 6 months shall automatically expire and become null and void with no further action required on the part of the County. The issues surrounding the project are summarized below. Additional background on the project, site, and issues related to the original proposal can be found in the attached December 15, 2011 and January 26, 2012 Board of Zoning Adjustments staff reports. ISSUES DISCUSSED AT THE BOARD OF ZONING ADJUSTMENTS PUBLIC HEARING Issue #1: General Plan and Zoning Consistency The current General Plan (GP2020) land use designation and zoning for the portion of the property where the dispensary is located is Limited Commercial (LC). As stated in GP2020, the Limited Commercial designation is intended to accommodate retail sales and services for the daily self sufficiency of local rural or urban neighborhoods or communities. This category is also intended to

3 Page 3 provide opportunities for a mix of residential and commercial uses in Urban Service areas. Permitted uses range from retail stores to offices to medical clinics. The subject property is currently developed with a 1,561 square foot commercial building, is located within the Santa Rosa Urban Service area, and has convenient access to an arterial street (Santa Rosa Avenue). It is not connected to a public sewer or water services with the exception of public water for fire suppression systems. With regard to zoning consistency, Section (pp) of the Zoning Code allows for Level II Cannabis Dispensaries in the LC zone if they are located within designated urban service areas and obtain a Use Permit. The LC zoning designation allows for retail sales and services for the daily selfsufficiency of urban and rural areas and allows for a full range of commercial operations. Permitted commercial uses include retail stores, repair services, offices, and restaurants. A medicinal marijuana dispensary most closely resembles a retail operation, in that the service provided is the display and sale of a product (medicinal marijuana) and the site is located within an Urban Service Area. Therefore, the proposed dispensary use would be consistent with the LC zoning district, subject to the dispensary criteria and Use Permit approval. See discussion of criteria compliance below. Medical Cannabis Dispensary Criteria Compliance: The Zoning Code was amended in July of 2007 (through Ordinance No. 5715) to include development criteria for the establishment of Medical Cannabis Dispensaries. The definitions section of the Zoning Code was also updated to include the following definition for a Medical Cannabis Dispensary: A Medical Cannabis Dispensary includes any association, cooperative, affiliation, or collective of 4 or more persons where the primary purpose is to provide the lawful distribution of medical cannabis that has been recommended by a licensed physician, in strict accordance with Health and Safety Code Section et seq. A Level II Cannabis Dispensary is further defined as:...a dispensary which has over 299 patients, and/or which is located in a facility of greater than 1,000 square feet, and/or which serves more than 20 patients per business day. Based on the applicant s proposal statement, the proposed facility is a Level II Medical Cannabis Dispensary and the following criteria (as set forth in the Zoning Regulations) must be met in order to establish the facility: (1) The building in which the dispensary is located shall comply with all applicable local, state and federal rules, regulations, and laws including, but not limited to, building codes and accessibility requirements. The building housing the proposed dispensary was recently modified with Building Permits in 2011 and complies with the building code in effect at the time of construction. The applicant has stated that no interior walls will be added and the only improvements needed to accommodate the dispensary will be paint and furniture. No additional electrical or plumbing fixtures are necessary. Furthermore, the project conditions of approval require compliance with all building and fire codes including handicap accessibility requirements.

4 Page 4 (2) The dispensary shall provide adequate security on the premises, including lighting and alarms, to insure the safety of persons and to protect the premises from theft. The Operational Plan shall include the approved security measures. Patients are required to bring their valid doctor s recommendation and valid identification to the facility and to present these documents to dispensary staff to verify that they are a qualified patient. The dispensary will be under full 24-hour camera surveillance and cameras will be placed throughout the interior of the building to monitor the retail/display area, the main entry, and the back offices. In addition, cameras will monitor the parking lot and the exterior of the building. The cameras record all customers who enter and the transactions that occur within the tenant space and the video will be preserved for a 30 day period. The building has existing exterior lighting to illuminate the parking areas and the front entry which shall be required to operate correctly. No loitering shall be permitted in the parking area, around the building or at the building entrance. Based on concerns raised at the Board of Zoning Adjustments, the applicant has contracted with a private security service for one uniformed, unarmed security person to be on-duty during operating hours. Along with the security presence, the facility will be fully alarmed. (3) The site plan, circulation, parking, lighting, facility exterior, and any signage shall be subject to design review committee review and approval. The Planning Director may waive this requirement where the applicant can demonstrate that existing facilities, including parking, lighting and landscaping, already meet the requirements of this Section. The applicant is proposing a dispensary within an existing building on a site that allows retail uses. There is a designated parking area at the front of the building which contains adequate parking to accommodate the use and existing exterior lighting illuminates the parking area and the front entry. After hours, the lighting shall be on motion sensors. The site has not been landscaped and conditions of approval include requirements for additional landscaping and removal of the barbed wire fencing along the street frontage consistent with Design Review Guidelines, the South Santa Rosa Area Plan landscape requirements and the Water Efficient Landscape Ordinance. Landscape and irrigation plans will be reviewed and approved by staff prior to the issuance of any building or operational permit. (4) No exterior signage or symbols shall be displayed which advertises the availability of cannabis, nor shall any such signage or symbols be displayed on the interior of the facility in such a way as to be visible from the exterior. No sign plans have been submitted with this application and the existing building does not appear to have any advertising of the product sold, any mention of the word cannabis or any symbols alluding to a cannabis dispensary on the building. The conditions of approval require that any new monument or wall sign shall conform to the zoning code. (5) A dispensary shall have no operators or employees who are not qualified patients or primary caregivers meeting all terms and conditions of applicable law. The applicant indicates that all operators and employees are either qualified patients or primary caregivers. The submission packet includes a doctor s recommendation and the applicant s medical marijuana identification card.

5 Page 5 (6) A dispensary may possess cannabis at its facility only in the collective amount that each qualified patient or primary caregiver served is allowed to possess under Health and Safety Code section , as may be amended from time to time. The amount of medical cannabis that one may possess without criminal enforcement at the State and local level is governed by State law in the California Health & Safety Code and as set forth by local regulation. Pursuant to Health and Safety Code section , the County of Sonoma adopted Resolution No on September 26, 2006, to establish medical marijuana guidelines which allow qualified medical marijuana patients or their primary caregivers to exceed the default threshold of the State of California. For this proposed dispensary, the on-site safe will contain no more than 1 to 2 pounds of cannabis and less than 15 ounces will be on display at any one time. Furthermore, the conditions of approval require that the dispensary not possess cannabis at the facility in collective or individual amounts greater than that allowed by state and local law. (7) No person shall be allowed onto the premises unless they are a primary caregiver and/or a qualified patient, in strict accordance with California Health and Safety Code Section et seq. No person under the age of 18 shall be allowed on the dispensary site. All persons entering the site shall present a photo identification and shall establish proof of doctor s recommendation. The Operating Plan submitted as a part of the Use Permit application shall specify how this provision will be complied with and enforced. All persons entering the facility are required to provide a valid photo identification and a valid doctor s recommendation. Every recommendation is verified by the staff prior to being granted admittance into the sales room. No one under the age of 18 shall be allowed on the dispensary site. (8) No dispensary shall hold or maintain a license from the State Department of Alcoholic Beverage Control (ABC) to sell alcoholic beverages, or operate a business that sells alcoholic beverages. No alcoholic beverages shall be allowed or consumed on the premises. The applicant has stated that they do not hold or maintain a license from ABC to sell alcohol. The conditions of approval also state that no alcoholic beverages will permitted at the dispensary. (9) An exhaust and ventilation system shall be utilized to prevent off-site odors. The building is equipped with a heating, ventilation, and air conditioning system. The cannabis will be stored in a glass display case in self sealing containers. (10) No dispensary shall conduct or engage in the commercial sale of any product, good or service unless otherwise approved by the Use Permit. In addition to the sale of medical cannabis, the dispensary was requesting several additional services including special events, farmer s market, seminars, counseling, etc. However, PRMD Project Review Health reviewed the proposed uses and found that the existing septic system was not designed for this type of loading and recommended denial of the proposal. Based on that, the applicant withdrew the additional activities and will only dispense medical cannabis. Based on the limited septic capacity at the site, the dispensary will be restricted to the sale of medicinal marijuana only. No additional growing operations, classes, or sale of pipes, smoking devices or other

6 Page 6 paraphernalia associated with the smoking, growing or preparation of tobacco or cannabis shall be allowed. Off-site delivery is also prohibited. (11) No cannabis shall be smoked, ingested or otherwise consumed on the premises. The term "premises" includes the actual building, as well as any accessory structures, parking areas, or other immediate surroundings. The proposed Operational Plan indicates that the smoking of tobacco or cannabis is not permitted in or around the facility. In addition, no loitering is permitted at the dispensary site and all clients are strongly encouraged not to open their medicinal cannabis until they are home. The dispensary is highly visible from public roads which allow for adequate surveillance of the business by the County Sheriff and tends to prevent loitering. (12) Parking must meet the requirements of Section which is as follows: 2 spaces, including at least 1 van-accessible space; plus 1 additional space for every 200 square feet of gross floor area, plus 1 additional space for each employee on maximum shift; but in no case less than 5 off-street parking spaces. Based on this requirement, a total of 14 parking spaces are needed for the lobby/seating area, sales area and storage areas (9 for the 1,560 square feet of gross floor area, 3 for employees and 2 additional spaces). There are 10 paved spaces on the north side of the building and large graveled areas directly adjacent to the parking area that could easily accommodate four additional spaces. (13) Operating days and hours shall be limited to Monday through Saturday from 7:00 a.m. to 7:00 p.m., or as otherwise allowed by the Use Permit. Operating hours may be further restricted through the Use Permit process where needed to provide land use compatibility. The facility had proposed to operate seven days a week from 10:00 a.m. to 8:00 p.m., exceeding the hours in the zoning code. Staff has found no viable reason to allow the dispensary to exceed the hours stated in the code and the Board of Zoning Adjustments agreed. Therefore, the conditions of approval limit operating hours to Monday through Saturday from 10:00 a.m. to 7:00 p.m. Resolution The Level II Medical Cannabis Dispensary meets all thirteen development standards and operational criteria listed under Section of the Zoning Ordinance, as conditioned. The operational plan conforms to the criteria with regard to types of patients, amount of product for sale, on-site operations and security personnel. In addition, the site plan and floor plan are consistent with the development standards regarding adequate lighting, parking and security measures. Furthermore, the hours of operation have been conditioned to comply with the Zoning Ordinance. Issue #2: Location Requirements A primary concern with medicinal cannabis dispensaries is the location of the facility and its proximity to land uses that may be incompatible with its operations. The medical cannabis ordinance outlines four criteria to be used to determine the appropriate location for a dispensary. These criteria are described below (note: distances are measured from the property lines, consistent with past practices):

7 Page 7 (1) A medical cannabis dispensary shall not be established on any parcel containing a dwelling unit used as a residence, nor within one hundred feet (100 ) of a residential zoning district. (2) A Medical Cannabis Dispensary shall not be established within 1,000 feet of any other Medical Cannabis Dispensary, nor within 500 feet from a smoke shop or similar facility selling drug paraphernalia. (3) A Medical Cannabis Dispensary shall not be established within 1,000 feet from any public school, park, or an establishment, public or private, that caters to or provides services primarily to persons under eighteen (18) years of age. (4) Notwithstanding, the above provisions (1 and 2) may be waived by the decision-maker when the applicant can show that an actual physical separation exists between land uses or parcels such that no off-site impacts could occur. Criteria #1. The dispensary site directly abuts properties zoned Rural Residential along the north and east property lines and abutting parcels contain single-family dwellings. Criteria #4 allows for a waiver to the 100 foot setback requirement from a residential zone district if a physical separation exists between land uses such that no off-site impacts could occur. However, the Zoning Code does not define what constitutes a physical separation. The Board of Zoning Adjustments (BZA) has recently approved three dispensaries within 100 feet of a residential zone district based on physical barriers that were unique to each site. Generally, if the use was oriented toward an arterial roadway, there was no direct access between the parcels, and there was some type of fencing and driveway/roadway separating the dispensary from the residential use, then the BZA made the findings for the waiver. In the case of this dispensary, the site abuts Santa Rosa Avenue, an arterial roadway, the area occupied by the dispensary is separated from the residential uses by 100 feet and the applicant has agreed to install fencing and landscaping along Fleming Way and on the perimeter of the property to provide visual screening of the dispensary from the dwellings. Criteria #2. The proposed dispensary is not located within 1,000 feet of another dispensary, nor within 500 feet of another smoke or drug paraphernalia shop. Organicann, an approved and operating dispensary on Todd Road near Santa Rosa Avenue, is approximately 4,500 feet to the north. The other approved and operational dispensary, Sonoma Medicinal Herbs at 3403 Santa Rosa Avenue, is 6,600 feet north of the site. PRMD also conducted a visual inspection of the surrounding roads and commercial properties (within 1,000 feet of the subject property) in October 2011 and found no businesses that would be categorized as a dispensary, smoke shop or similar business selling drug paraphernalia. In addition, PRMD has not approved any Use Permits for these types of businesses or for another medical cannabis dispensary within 1,000 feet of the subject property. Criteria #3. The proposed dispensary is not located within 1,000 feet of a public school, public park, library, church, day care center or any other youth oriented use. Staff conducted an extensive windshield survey of all roads in the surrounding area and found no evidence of any park, school or playground nor any signage related to a day care facility or other youth oriented use. Staff also reviewed aerials of the surrounding neighborhood and found no evidence of any parks or playgrounds. There is a public school bus that stops at the corner of Fleming Way and Santa Rosa Avenue to drop off children who live up the street. However, the drop-off area is not a marked stop, there are no

8 Page 8 physical improvements on the ground, and children do not congregate at the stop location. Based on these characteristics, the BZA found that the bus stop would not be considered a youth oriented facility. Resolution The Level II Medical Cannabis Dispensary is not located on a property with an existing residence and the Board of Zoning Adjustments determined that there is adequate physical separation between the dispensary and the adjacent residential zone district to waive the 100 foot required setback. The dispensary is located along a major arterial roadway and is located at the southwest corner of the lot at the furthest point from adjacent existing residentially zoned properties. In addition, the dispensary will be fenced and landscaped to provide screening from the dwellings. Based on these circumstances, the Board of Zoning Adjustments determined that off-site impacts to the residential uses are not likely to occur. Furthermore, the dispensary is over 1,000 feet from any other medical cannabis dispensary, over 500 feet from a smoke shop or similar facility selling drug paraphernalia, and over 1,000 feet from any public school, park, or an establishment, public or private, that caters to or provides services primarily to persons under eighteen (18) years of age. This is based on a visual inspection of the surrounding area by staff and a review of the County's Use Permit records. Issue #3: Responses from Interdepartmental Staff and the Sheriff Referral responses were received from PRMD Health, Department of Transportation and Public Works, and the County Sheriff. Due to the limitations of the existing septic system, the applicant modified their proposal statement to eliminate previously proposed special events and some additional services. However, the Sheriff opposes the project on the grounds that dispensaries are contrary to State and Federal law, that there is a reasonable likelihood for increased crime and negative impacts to the neighborhood, and there are traffic related issues. At the December 2011 hearing, the Board of Zoning Adjustments asked the applicant to contact the Sheriff to address their concerns. The applicant provided the Sheriff with a revised security plan (on-site professional security personnel and 24-hour, fully monitored security alarms) in an effort to reduce potential impacts to the neighborhood. Resolution The Sheriff s office did not respond to the applicant. However, PRMD had previously requested data on crime statistics from the Sheriff related to specific dispensary locations around the county and their crime analyst came to the following conclusions: 1) Reports for the areas surrounding all dispensaries are down 25% compared to the previous period. 2) Call For Service (CFS) Events and Officer Initiated (OI) Events for the areas surrounding all dispensaries are down 10% compared to the previous period. The majority of that is attributed to a decrease in Officer Initiated Events. 3) Most all areas showed a decrease in activity with the following exceptions: a) The area around Marvin Gardens Herbal Alliance (Guerneville) experienced a 12% increase in calls but had a 17% decrease in reports written. b) The area around Valley of the Moon Collective experienced an increase in calls from 6 to 16 and an increase in reports from 0 to 1.

9 Page 9 Note: Method of Analysis: - Events and Reports were searched by the Sheriff s office within 1000 feet of the parcel for each dispensary days is the length of time that had occurred between the last permit approval and the data query. - To account for seasonal variation data was compared against the same date range a year prior. In summary, the Sheriff s crime analyst found that crime around existing dispensaries does not appear to increase. Also, anecdotal evidence suggests that the dispensaries currently operating in the County have had few if any security issues due to the increased security measures that have been required at those sites. Staff is not aware of any substantial incidents occurring at dispensaries that have been operating with a Use Permit. Further evidence was provided in comments from a neighbor at the Board of Zoning Adjustments hearing for the Valley of the Moon Collective who stated that the increased security presence at the retail center provided by the dispensary had reduced incidents of vandalism, loitering and graffiti. Based on this information, it appears that a dispensary providing security guards and 24-hour surveillance is not likely to cause increased crime in the surrounding area. Issue #4: Neighborhood Concerns At the December 15 th Board of Zoning Adjustments hearing, several neighbors of the dispensary spoke in opposition to the project. Their concerns ranged from the location of the bus stop for children of the public elementary school, to the potential for increased crime, to project screening and security. The BZA asked that the applicant hold a neighborhood meeting to address their concerns. Resolution The applicant met with neighbors at the project site on January 7, A summary of the meeting and its results is attached to the BZA staff report of January 26, The neighbors wanted to limit the fencing to privacy slats on the existing chain link fence along Fleming Way, to place a hedge along the north and east property lines, require 24-hour security system monitoring and motion detection lighting, and have the applicant add signage to indicate that Fleming Way is a private roadway. The applicant agreed to install these improvements. As for the relocation of the school bus stop, the applicant contacted Mike Rea of the West County Transportation Agency (his response is also included in the BZA report) and he recommended that the school bus stop remain at the corner of Horn and Santa Rosa Avenue since the children live up the street. It should also be noted that the bus stops more frequently just north of the dispensary at Connely so children living on Fleming Way could get off there and walk up Fleming without passing the dispensary. In any event, the driver usually stops the school bus at the base of each street that the children live on which minimizes the chance of any children walking by the dispensary. Furthermore, the proposed fencing, landscaping, restriction on outdoor loitering, and minimized signage should reduce the physical presence of the dispensary and help to integrate the use into the commercial corridor, making it less conspicuous. List of Attachments: Draft Board of Supervisors Resolution EXHIBIT A Conditions of Approval

10 Page 10 Separate Attachment for the Board of Supervisors and On File with the Clerk: Board of Zoning Adjustments Resolution No ; Board of Zoning Adjustments Minutes dated December 15, 2011 and January 26, 2012; Board of Zoning Adjustments Staff Reports dated December 15, 2011 and January 26, 2012.