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SR 10-10-2023 10C City Council Report City Council Meeting: October 10, 2023 Agenda Item: 10.C 1 of 9 To: Mayor and City Council From: David Martin, Director, Administration Subject: Introduction and First Reading of an Interim Zoning Ordinance Amending the Text of the Zoning Ordinance to: (1) Replace the Term “Medical Marijuana Dispensary” with “Medicinal Cannabis Retailer”; (2) Remove Certain Requirements for Medicinal Cannabis Retailers for Consistency with State Law; and (3) Permit Medicinal Cannabis Retailers To Deliver, Cultivate, and Sell Adult-Use Cannabis or Adult-Use Cannabis Products to Persons 21 Years of Age and Over Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemption pursuant to Section 15061(b)(3) (Common Sense Exemption) of the California Environmental Quality Act (CEQA) Guidelines. 2. Introduce for first reading an Interim Zoning Ordinance amending the text of the Zoning Ordinance to replace the term “Medical Marijuana Dispensary” with “Medicinal Cannabis Retailer”, to remove certain requirements for Medicinal Cannabis Retailers for consistency with State law, and to permit Medicinal Cannabis Retailers to deliver, cultivate, and sell adult-use cannabis or adult-use cannabis products to persons 21 Years of Age and Over. 3. Introduce for first reading an Ordinance amending Section 6.203.010 of the Santa Monica Municipal Code to allow medicinal cannabis retailers with medicinal cannabis permits issued before October 10, 2023, to deliver, cultivate, and sell adult-use cannabis and adult-use cannabis products to persons 21 years of age and over, subject to Santa Monica Municipal Code Section 9.31.185. Summary On June 13, 2023, the City Council received a presentation on key policy considerations for allowing adult-use cannabis businesses and other non-retail cannabis business types within the City of Santa Monica. The City Council also discussed options for 10.C Packet Pg. 874 2 of 9 allowing adult-use cannabis sales and associated regulatory restrictions and provided the following direction to staff: • Return to Council with an Ordinance allowing for adult-use cannabis retail business and non-retail business types within the City. • Conduct an equity study and create a cannabis social equity program to help ensure that the communities most impacted by federal and state cannabis enforcement policies are provided an opportunity to benefit from the cannabis industry. • Begin by initially returning to Council with an Ordinance permitting the two previously approved Medicinal Cannabis Retailers to sell adult-use cannabis. Accordingly, the proposed Interim Zoning Ordinance would permit the two Medicinal Cannabis Retailers in the City with active Conditional Use Permits to sell adult-use cannabis or adult-use cannabis products to persons of 21 years of age or over. The Interim Zoning Ordinance would also replace the term “Medical Marijuana Dispensary” with “Medicinal Cannabis Retailer” and remove certain requirements for Medicinal Cannabis Retailers for consistency with State law. The proposed Ordinance amends Section 6.203.010 of the Santa Monica Municipal Code to allow medicinal cannabis retailers with active Conditional Use Permits issued before October 10, 2023, to engage in retail cannabis sales subject to Santa Monica Municipal Code Section 9.31.185. Background The City of Santa Monica first adopted regulations for medical marijuana (medicinal cannabis) in June of 2015 as a part of the City’s comprehensive Zoning Ordinance update (Article 9 of the Santa Monica Municipal Code) which enabled up to two medicinal cannabis retailers within the City subject to a regulatory permit and selection process. All other cannabis-related uses were prohibited. The dispensaries were allowed only along limited sections of Wilshire Boulevard and Santa Monica Boulevard within the Mixed-Use Boulevard Low (MUBL), Mixed-Use Boulevard (MUB) or General Commercial (GC) zones subject to a Conditional Use Permit. 10.C Packet Pg. 875 3 of 9 On October 24, 2017, the City Council adopted an Interim Zoning Ordinance (IZO) adding Section 6.200 to the Santa Monica Municipal Code, which established general regulations and definitions for commercial cannabis activities, including a regulatory permit process for medicinal cannabis retailers and light (non-volatile) manufacturing. The IZO also made other changes as needed including replacing the term “Medical Marijuana Dispensary” with “Medicinal Cannabis Retailer” and removing certain requirements for Medicinal Cannabis Retailers in SMMC Section 9.31.185 for consistency with State law. The ordinance prohibited all adult-use commercial cannabis activities including retail, cultivation, testing, distribution, and manufacturing. The IZO has subsequently expired. After a prolonged selection process, two medicinal cannabis retailers were selected. One of the retailers began operations recently at 925 Wilshire Boulevard. The second retailer located at 1416 Wilshire Boulevard is still in the permitting process. California’s cannabis regulations allow that cannabis can be sold commercially for either medicinal or recreational adult-use purposes. Medicinal cannabis is available only to persons 18 years or older who have a valid recommendation from a physician. Medicinal cannabis patients also have the option of obtaining a State-issued Medical Cannabis Identification Card (MMIC), but this is not required. Both the physician’s recommendation and the identification card are required to be renewed every year. Only 3,199 such cards were issued in all of California in 2022. Adult-use cannabis can be sold to anyone age 21 years or older without a physician’s recommendation. The State of California’s Department of Cannabis Control (DCC) may issue licenses for either medicinal (M) or adult-use (A), or for both medicinal and adult-use (M/A). Initially, California’s cannabis program required that all cannabis and cannabis products had to be designated for either the medicinal or adult-use market through all stages of the supply chain, but later revisions changed this so that product grown or manufactured for either market can be shifted to the other up until the point of sale. This makes the medicinal or adult-use designation largely meaningless for wholesale cannabis businesses as it does not predetermine how the product will eventually be sold. 10.C Packet Pg. 876 4 of 9 Of over 11,000 DCC business licenses in California, 1,360 are for medicinal cannabis only (12%). The rest are for either adult-use or for both medicinal and adult-use. Among the state’s 1,891 retailers (including retailing microbusinesses), only 31 are licensed for just medicinal cannabis sales. Medicinal cannabis is estimated to make up only around 9% of cannabis retail sales in California. The primary advantage for consumers to purchase cannabis through the medicinal market is an exemption from regular sales tax only for those qualifying patients who present a Medical Marijuana Identification Card at the time of purchase (a savings of 7.25% to 10.25%, depending on the jurisdiction). The small number of patients with valid MMIC cards makes their impact on tax revenues statistically insignificant. Expanding adult-use cannabis retail in the City can also help with economic recovery efforts. As a result of the COVID-19 Declaration of Emergency, the City of Santa Monica, County of Los Angeles, and State of California maintained public health measures that included, at differing times, strict limitations on public gatherings, required closures of certain businesses, and strict limitations and protocols for the operations of businesses permitted to remain open. The local, state, and federal emergency declarations have since concluded, but the economic impacts of the COVID- 19 closures of, and limitations on, businesses and resulting behavior changes continue to affect the local Santa Monica economy. As the commercial and economic landscape evolves, the City’s economic recovery and competitive advantage will depend on its ability to deliver on a diverse range of unique dining, retail, commercial, and entertainment uses and other revenue streams. The City has an important governmental interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses. Accordingly, on July 26, 2022, the City Council voted to place a cannabis business license tax measure (Measure HMP) on the November 2022 ballot, imposing a tax on all commercial cannabis activities at initial rates of 3% of gross receipts for adult-use cannabis retailers, 2% for medicinal cannabis retailers, and 1% on other cannabis 10.C Packet Pg. 877 5 of 9 business types. Measure HMP was approved by over 66% of voters in November 2022. The voter-approved rates are included in Santa Monica Municipal Code (SMMC) Chapter 6.204. At its June 13, 2023, study session, City Council considered various policy considerations for allowing adult-use cannabis businesses and other non-retail cannabis business types within the City and directed staff to return to Council with an Ordinance permitting the two previously approved Medicinal Cannabis Retailers to sell adult-use cannabis. Past Council Actions Meeting Date Description 10/24/17 (attachment A) Adoption of Interim Ordinance Replacing the Term "Medical Marijuana Dispensary" with "Medicinal Cannabis Retailer" Throughout the City's Zoning Ordinance, Chapter 9.01 Through Chapter 9.52 of Article 9 of the Santa Monica Municipal Code; Creating a Definition for "Medicinal Cannabis Retailer" to Replace the Definition for "Medical Marijuana Dispensary" to Conform With State Law; Removing Certain Requirements for Medicinal Cannabis Retailers for Consistency with State Law and to Allow for Separate Regulation and Rulemaking; and Modifying the Definition of "Industry, Limited" to Allow for Medicinal Cannabis Light Manufacturing 02/25/20 (attachment B) Adoption of Interim Zoning Ordinance Extending Interim Zoning Ordinances Number 2557 (CCS) and 2566 (CCS), Which Replaced the Term "Medical Marijuana Dispensary" with "Medicinal Cannabis Retailer" Throughout the City's Zoning Ordinance, Chapter 9.01 Through Chapter 9.52 of Article 9 of the Santa Monica Municipal Code; Created a Definition for "Medicinal Cannabis Retailer" to Replace the Definition for "Medical Marijuana Dispensary" to Conform with State Law; Removed Certain Requirements for Medicinal Cannabis Retailers for Consistency with State Law and to Allow for Separate Regulation and Rulemaking; and Modified the Definition of "Industry, Limited" to Allow for Medicinal Cannabis Light Manufacturing 06/13/23 (attachment C) Adult-Use Cannabis Study Session Discussion The Zoning Ordinance refers to a Medicinal Cannabis Retailer as a “Medical Marijuana Dispensary” and has the following broad definition: 10.C Packet Pg. 878 6 of 9 Medical Marijuana Dispensary. Any facility, building, structure, or fixed location where one or more qualified patients and/or persons with identification cards and/or primary caregivers cultivate, distribute, sell, dispense, transmit, process, exchange, give away, or otherwise make available marijuana for medical purposes. The terms “primary caregiver,” “qualified patient,” and “person with an identification card” shall be as defined in California Health and Safety Code Section 11362.5 et seq. This terminology and the definition of Medical Marijuana Dispensary had been changed in the 2017 IZO to be consistent with terminology used in adopted State law and the cannabis industry replacing the use of the word “dispensary” with “retailer”, using the term “cannabis” instead of “marijuana”, and using the term “medicinal” instead of “medical” when referring to permitted business activities. The new definition for Medicinal Cannabis Retailer in the 2017 IZO was changed as follows: Medicinal Cannabis Retailer. A licensed premises which is a physical location from which retail medicinal cannabis or medicinal cannabis products are intended to be sold for use, pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. The premises may be closed to the public; sales may be made exclusively by delivery. The IZO expired in January 2023 at which time the terminology, definition of Medicinal Cannabis Retailer, and other modified use standards in SMMC Section 9.31.185 reverted back to the outdated language in the Zoning Ordinance which references Medical Marijuana Dispensaries. The proposed IZO would make the same changes to the terminology, definition, and use standards as the prior 2017 IZO to be consistent with State law and the cannabis industry. In order to allow the two previously permitted Medicinal Cannabis Retailers to sell adult- use cannabis or cannabis products, staff is proposing a further modification to the definition of Medicinal Cannabis Retailer to include the following additional language: “Subject to the provisions of SMMC Section 9.31.185, Medicinal Cannabis Retailers shall be permitted to deliver, cultivate, or sell adult-use cannabis or adult-use cannabis 10.C Packet Pg. 879 7 of 9 products, as licensed and regulated by Business and Professions Code Section 26000 et seq, and as amended from time to time, to persons 21 years of age and over.” Santa Monica Municipal Code Section 9.31.185 provides a range of specific use standards for Medicinal Cannabis Retailers including a requirement that each of the two Medicinal Cannabis Retailers obtain a Conditional Use Permit which both Medicinal Cannabis Retailers have done. The proposed IZO includes new language in SMMC Section 9.31.185 to permit the delivery, cultivation, and sale of adult-use cannabis or adult-use cannabis products to persons 21 years of age and over only in locations with active Conditional Use Permits for Medicinal Cannabis Retailer uses as of October 10, 2023. The existing Conditional Use Permits would remain in effect, but conditions prohibiting the adult-use of cannabis will not be enforced. Certain regulations found in SMMC Section 9.31.185 regulating the operations of Medicinal Cannabis Retailers were written prior to the adoption of comprehensive State laws regulating cannabis. The proposed IZO removes sub-sections I, K, and L of Section 9.31.185 that address Staffing and Security, Required Patron Notification, and Prohibited Activities which are either addressed in State law or can be more effectively addressed through the regulatory ordinance and rules. SMMC Section 6.203.010 currently prohibits commercial nonmedicinal cannabis sales in the City. The proposed ordinance would create an exception to this general prohibition for the two entities that have been issued medicinal cannabis permits pursuant to Chapter 6.201 of the Santa Monica Municipal Code. A medicinal cannabis retailer that chooses to engage in nonmedicinal retail sales must comply with the provisions set forth in SMMC Section 9.31.185. The sales of adult-use cannabis products or adult-use cannabis products would be subject to the cannabis business tax regulations of SMMC Chapter 6.204. The cannabis business tax imposed upon any retailer of adult-use non-medicinal cannabis or adult-use non-medicinal cannabis products is three (3) percent of the gross receipts derived from the retail sale of adult-use non-medicinal cannabis or adult-use non- 10.C Packet Pg. 880 8 of 9 medicinal cannabis products. The tax rate may be adjusted by the City Council but shall not exceed the maximum tax rate of ten percent without voter approval. Environmental Analysis The proposed interim ordinance is categorically exempt from the provisions of California Environmental Quality Act (CEQA) pursuant to Section 15061(b)(3) of the State Implementation Guidelines (common sense exemption). Based on the evidence in the record, it can be seen with certainty that there is no possibility that the proposed interim ordinance may have a significant effect on the environment. The change in terminology from “Medical Marijuana Dispensary” to “Medicinal Cannabis Retailer” and the additional revisions to the requirements for Medicinal Cannabis Retailers within the City are consistent with recent changes to State law. The sale of adult-use cannabis or adult-use cannabis products at Medicinal Cannabis Retailers with active Conditional Use Permits are consistent with existing land uses and will not change the approved commercial land use for these locations. (See e.g., Lucas v. City of Pomona (2023) 92 Cal.App.5th 508 (holding that substantial evidence supported city’s determination that proposed commercial cannabis activities were exempt from CEQA as consistent with existing retail land uses and density covered by previous EIR). Therefore, no further environmental review under CEQA is required. Financial Impacts and Budget Actions There is no budget action necessary as a result of the recommended action. Staff has not included tax revenue projections associated with adult-use cannabis sales in the FY 2023-24 budget; however, the potential revenue anticipated from the currently authorized businesses is nominal. Future year revenues based on the upcoming ordinance will be included in future year budgets. 10.C Packet Pg. 881 9 of 9 Prepared By: Tony Kim, Principal Planner Approved Forwarded to Council Attachments: A. October 24, 2017 Council Meeting Cannabis Interim Zoning Ordinance (Web Link) B. February 25, 2020 Council Meeting Cannabis Interim Zoning Ordinance Extension (Web Link) C. June 13, 2023 Council Meeting Adult-Use Cannabis Study Session D. Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) E. Interim Zoning Ordinance to Allow Adult-Use Cannabis F. Written Comments 10.C Packet Pg. 882 1 City Council Meeting: October 10, 2023 Santa Monica, California ORDINANCE NUMBER _____ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTION 6.203.010 OF THE SANTA MONICA MUNICIPAL CODE TO ALLOW MEDICINAL CANNABIS RETAILERS WITH MEDICINAL CANNABIS PERMITS ISSUED BEFORE OCTOBER 10, 2023 TO DELIVER, CULTIVATE, AND SELL ADULT-USE CANNABIS OR ADULT-USE CANNABIS PRODUCTS TO PERSONS 21 YEARS OF AGE AND OVER, SUBJECT TO SANTA MONICA MUNICIPAL CODE SECTION 9.31.185 WHEREAS, the State of California has a long history of regulating cannabis uses within the State; and WHEREAS, in 1996, California voters approved Proposition 215 (codified at Health and Safety Code section 11362.5 and titled the “Compassionate Use Act of 1996”), which provides criminal immunity for patients and primary caregivers for the cultivation and possession of cannabis if a doctor has recommended the cannabis for medical purposes; and WHEREAS, in 2004, Senate Bill 420 was enacted (codified at Health and Safety Code section 11362.7 et seq. and titled the “Medical Marijuana Program Act”) to clarify the scope of the Compassionate Use Act of 1996; and WHEREAS, the Medical Marijuana Program Act allows cities and other governing bodies to adopt and enforce laws consistent with its provisions; and WHEREAS, in 2015, Assembly Bills 243 and 266 and Senate Bill 643 were enacted (codified at Business and Professions Code section 19300 et seq. and titled the “Medical Marijuana Regulation and Safety Act”) and provided for enhanced statewide marijuana regulations; and 10.C.d Packet Pg. 883 Attachment: Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use 2 WHEREAS, In November 2016, voters approved Proposition 64, the Adult Use of Marijuana Act (“AUMA”), which allows adults 21 years of age or older to legally grow, possess, and use cannabis for nonmedicinal purposes, with certain restrictions; and WHEREAS, beginning on January 1, 2018, AUMA authorizes the sale and distribution of cannabis for nonmedicinal purposes through a licensed business; and WHEREAS, in 2017, the State legislature enacted Senate Bill 94 which created the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) which establishes a robust set of regulations for the medicinal and adult use cannabis markets, aligns all permit types, and authorizes certain state agencies to establish rules governing cannabis operations and to implement the law; and WHEREAS, MAUCRSA continues to preserve local control over cannabis- related uses by: (1) requiring medicinal cannabis businesses to obtain both a state license and a local license or permit, if required, to operate legally in California, (2) terminating the ability of a medicinal cannabis business to operate if its local license or permit is terminated, (3) continuing to authorize local governments to enforce local cannabis-related laws, (4) providing for penalties for unlicensed activities, and (5) expressly protecting local licensing practices, zoning and business regulation laws, and local actions taken under the constitutional police power; and 10.C.d Packet Pg. 884 Attachment: Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use 3 WHEREAS, consistent with State actions, the City Council, when adopting its comprehensive update to its Zoning Ordinance in 2015, contemplated authorizing two medicinal cannabis retailers within the City to serve local needs; and WHEREAS, the City has commenced a prolonged medicinal cannabis retailer selection process and issued two permits for the operation of a medicinal cannabis retailers in the City; and WHEREAS, the City has an important governmental interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and WHEREAS, on May 10, 2022, City Council requested that the City Manager schedule a study session as soon as practicable regarding whether to allow for the sale of nonmedicinal cannabis in the City of Santa Monica; and WHEREAS, on July 26, 2022, in line with potential economic recovery efforts, the City Council voted to place a cannabis business license tax measure (Measure HMP) on the November 2022 ballot, imposing a tax on all commercial cannabis activities; and WHEREAS, in the November 2022 election, the voters approved Measure HMP; and WHEREAS, on June 13, 2023, City Council held a discussion session where it: (1) considered key policy considerations for allowing adult-use cannabis businesses and other non-retail cannabis business types within the City of Santa Moncia; (2) discussed options for allowing adult-use cannabis sales and 10.C.d Packet Pg. 885 Attachment: Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use 4 associated regulatory restrictions as may be appropriate; and (3) provided direction to staff on bringing back changes to the Municipal Code to allow for adult- use cannabis retail businesses and non-retail cannabis business types within the City; and WHEREAS, at the June 13, 2023, study session, City Council approved allowing the previously approved medicinal cannabis retailers to also sell, cultivate, and deliver adult-use cannabis while the permanent adult-use cannabis updates are pending; and WHEREAS, Section 6.203.010 of the Santa Monica Municipal Code currently prohibits commercial cannabis sales in the City; and WHEREAS, the City desires to amend Section 6.203.010 of the Santa Monica Municipal Code to allow medicinal cannabis retailers with medicinal cannabis permits issued before October 10, 2023 to deliver, cultivate, and sell adult-use cannabis or adult-use cannabis products to persons 21 years of age and over subject to the Santa Monica Municipal Code Section 9.31.185. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS (new text underlined, deleted text shown with strikethrough): SECTION 1. Commercial Nonmedicinal Cannabis Uses. Santa Monica Municipal Code Section 6.203.010 is amended as follows: 6.203.01 Commercial Nonmedicinal Cannabis Uses a. Except as provided in subsection b, below, it It shall be unlawful to undertake, establish, operate, maintain, or permit any commercial nonmedicinal cannabis use in the City. Except as provided in this subsection b, below, no No use permit, business license, variance, building permit, or any other entitlement, 10.C.d Packet Pg. 886 Attachment: Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use 5 license, or permit, whether administrative or discretionary, shall be approved or issued. The possession of a State license for commercial nonmedicinal cannabis use shall not be sufficient to authorize the operation of such a use within the City. b. Notwithstanding the prohibitions set forth in subsection a, above, a medicinal cannabis retailer that has been issued a medicinal cannabis permit pursuant to Chapter 6.203 of the Santa Monica Municipal Code prior to October 10, 2023, and subject to Santa Monica Municipal Code Section 9.31.185, shall be permitted to deliver, cultivate, or sell adult-use cannabis or adult-use cannabis products, as licensed and regulated by Business and Professions Code Section 26000 et seq. and as amended from time to time, to persons 21 years of age and over. SECTION 2. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. 10.C.d Packet Pg. 887 Attachment: Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use 6 SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective thirty days after its adoption. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN City Attorney 10.C.d Packet Pg. 888 Attachment: Ordinance Amending Section 6.203.010 09.27.23 (001) (clean) [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use 1 City Council Meeting: October 10, 2023 Santa Monica, California ORDINANCE NUMBER _____ (CCS) (City Council Series) AN INTERIM ZONING ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING THE TEXT OF THE ZONING ORDINANCE TO: (1) REPLACE THE TERM “MEDICAL MARIJUANA DISPENSARY” WITH “MEDICINAL CANNABIS RETAILER”; (2) REMOVE CERTAIN REQUIREMENTS FOR MEDICINAL CANNABIS RETAILERS FOR CONSISTENCY WITH STATE LAW; AND (3) PERMIT MEDICINAL CANNABIS RETAILERS TO SELL ADULT-USE CANNABIS OR ADULT-USE CANNABIS PRODUCTS TO PERSONS 21 YEARS OF AGE AND OVER WHEREAS, the State of California has a long history of regulating cannabis uses within the State; and WHEREAS, in 1996, California voters approved Proposition 215 (codified at Health and Safety Code section 11362.5 and titled the “Compassionate Use Act of 1996”), which provides criminal immunity for patients and primary caregivers for the cultivation and possession of cannabis if a doctor has recommended the cannabis for medical purposes; and WHEREAS, in 2004, Senate Bill 420 was enacted (codified at Health and Safety Code section 11362.7 et seq. and titled the “Medical Marijuana Program Act”) to clarify the scope of the Compassionate Use Act of 1996; and WHEREAS, the Medical Marijuana Program Act allows cities and other governing bodies to adopt and enforce laws consistent with its provisions; and WHEREAS, in 2015, Assembly Bills 243 and 266 and Senate Bill 643 were enacted (codified at Business and Professions Code section 19300 et seq. and titled the “Medical Marijuana Regulation and Safety Act”) and provided for enhanced statewide marijuana regulations; and 10.C.e Packet Pg. 889 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 2 WHEREAS, In November 2016, voters approved Proposition 64, the Adult Use of Marijuana Act (“AUMA”), which allows adults 21 years of age or older to legally grow, possess, and use cannabis for nonmedicinal purposes, with certain restrictions; and WHEREAS, beginning on January 1, 2018, AUMA authorizes the sale and distribution of cannabis for nonmedicinal purposes through a licensed business; and WHEREAS, in 2017, the State legislature enacted Senate Bill 94 which created the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) which establishes a robust set of regulations for the medicinal and adult use cannabis markets, aligns all permit types, and authorizes certain state agencies to establish rules governing cannabis operations and to implement the law; and WHEREAS, MAUCRSA continues to preserve local control over cannabis- related uses by: (1) requiring medicinal cannabis businesses to obtain both a state license and a local license or permit, if required, to operate legally in California, (2) terminating the ability of a medicinal cannabis business to operate if its local license or permit is terminated, (3) continuing to authorize local governments to enforce local cannabis-related laws, (4) providing for penalties for unlicensed activities, and (5) expressly protecting local licensing practices, zoning and business regulation laws, and local actions taken under the constitutional police power; and 10.C.e Packet Pg. 890 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 3 WHEREAS, consistent with State actions, the City Council, when adopting its comprehensive update to its Zoning Ordinance in 2015, contemplated authorizing two medicinal cannabis retailers within the City to serve local needs; and WHEREAS, on October 24, 2017, the City Council adopted an Interim Zoning Ordinance (IZO) which replaced the term “medical marijuana dispensary” with “medicinal cannabis retailer” throughout the Zoning Ordinance; created a definition for “medicinal cannabis retailer” to replace the definition for “medical marijuana dispensary” to conform with State law; removed certain requirements for medicinal cannabis retailers for consistency with State law and to allow for separate and more effective regulatory rulemaking; and modified the definition of “industry, limited” to allow for medicinal cannabis light manufacturing; and WHEREAS, that IZO initially prohibited all adult-use commercial cannabis activities, including retail, cultivation, testing, distribution, and manufacturing; WHEREAS, since then, the City has commenced a prolonged medicinal cannabis retailer selection process and issued two permits for the operation of medicinal cannabis retailers in the City; and WHEREAS, the IZO was extended on several occasions and has since expired, causing the terminology, definitions, and other modified use standards to revert back to the previous outdated language in the Zoning Ordinance; and WHEREAS, on March 13, 2020, the City Manager, as the Director of Emergency Services (“Director of Emergency Services”), proclaimed the existence of a local emergency pursuant to Chapter 2.16 of the Santa Monica Municipal 10.C.e Packet Pg. 891 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 4 Code to ensure the availability of mutual aid and effectuate the City’s response to the novel coronavirus (“COVID-19”), and this local emergency was restated on March 14, 2020, through a revised declaration of local emergency; and WHEREAS, on March 16, 2020, the Director of Emergency Services issued a Third Supplement to the Executive Order, requiring the closure of a wide range of businesses including bars, nightclubs, on-premises restaurant service, movie theatres, live performance venues, gyms, fitness centers, spas, hair salons, massage parlors, and nail salons; and WHEREAS, on March 19, 2020, California Governor Gavin Newsom issued Executive Order N-33-20 directing all residents of the State of California to heed directives issued by the State Health Officer on the same date instructing all Californians to stay home except as needed to maintain continuity of operations of the federal critical infrastructure sectors; and WHEREAS, on March 19, 2020, the Los Angeles County Department of Public Health issued an enhanced Health Officer Order, the Safer at Home Order for Control of COVID-19, amending and superseding its earlier March 16, 2020 Order, closing all nonessential businesses, and limiting gatherings; and WHERAS, after March 19, 2020, the Los Angeles Department of Public Health, on multiple occasions, amended and modified its Health Officer Order, recognizing the issues posed by community transmission of COVID-19 in Los Angeles County, and, in response, maintaining public health measures that have, at differing times, included strict limitations on public gatherings, required closures 10.C.e Packet Pg. 892 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 5 of certain businesses, and strict limitations and protocols for the operations of businesses permitted to remain open; and WHEREAS, the local, state, and federal COVID-19 emergency declarations have since concluded, but the economic impacts of the COVID-19 closures of, and limitations on, businesses have been and continue to be devastating to the local Santa Monica economy; WHEREAS, as the commercial and economic landscape evolves, the City’s economic recovery and competitive advantage will depend on its ability to deliver on a diverse range of unique dining, retail, commercial, and entertainment uses; and WHEREAS, the City has an important governmental interest in maintaining a thriving business community and protecting the health, safety, and economic welfare of its citizens and businesses; and WHEREAS, on May 10, 2022, City Council requested that the City Manager schedule a study session as soon as practicable regarding whether to allow for the sale of nonmedicinal cannabis in the City of Santa Monica; and WHEREAS, on July 26, 2022, in line with potential economic recovery efforts, the City Council voted to place a cannabis business license tax measure (Measure HMP) on the November 2022 ballot, imposing a tax on all commercial cannabis activities; and WHEREAS, in the November 2022 election, the voters approved Measure HMP; and WHEREAS, on June 13, 2023, City Council held a study session where it: 10.C.e Packet Pg. 893 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 6 (1) considered key policy considerations for allowing adult-use cannabis businesses and other non-retail cannabis business types within the City of Santa Moncia; (2) discussed options for allowing adult-use cannabis sales and associated regulatory restrictions as may be appropriate; and (3) provided direction to staff on bringing back changes to the Municipal Code to allow for adult- use cannabis retail businesses and non-retail cannabis business types within the City; and WHEREAS, at the June 13, 2023, study session, City Council directed allowing the previously approved medicinal cannabis retailers to also sell adult-use cannabis while the permanent adult-use cannabis updates are pending, and the City desires to update the interim regulations in order to allow such use; and WHEREAS, the proposed IZO would also make the same changes to the terminology, definitions, and use standards as the prior 2017 IZO to be consistent with State law and the cannabis industry; and WHEREAS, the City Council finds and declares that there continues to exist a current and immediate threat to the public health, safety and general welfare that requires the proposed IZO to allow for economic recovery within the City by expanding permitted cannabis use and also to update the Zoning Ordinance to extinguish any inconsistencies with State law and the cannabis industry; and NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Interim Zoning Regulations. Santa Monica Municipal Code Chapters 9.01 through 9.52 are hereby amended as follows: 10.C.e Packet Pg. 894 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 7 (a) The term “Medical Marijuana Dispensary” shall be replaced with “Medicinal Cannabis Retailer” throughout. (b) Santa Monica Municipal Code Section 9.31.185 is hereby amended as follows: 9.31.185 Medicinal Cannabis Retailers Medical Marijuana Dispensaries A. Purpose. The purpose of this subsection is to ensure that the development of Medicinal Cannabis RetailersMedical Marijuana Dispensaries does not adversely impact adjacent parcels or the surrounding neighborhoods in which they are located and that they will be developed in a manner that protects the health, safety, and general welfare of nearby residents and businesses while providing for the needs of all segments of the community. Medicinal Cannabis RetailersMedical Marijuana Dispensaries shall be permitted, located, developed, and operated consistent with the following development standards: B. Conditional Use Permit. Each Medicinal Cannabis Retailer Medical Marijuana Dispensary shall be subject to the approval of a Conditional Use Permit by the Planning Commission, appealable to the City Council. C. Number and Location. A maximum of 2 Medicinal Cannabis Retailers Medical Marijuana Dispensaries no larger than 2,500 square feet shall be permitted. Medicinal Cannabis Retailers Medical Marijuana Dispensaries are prohibited within 600 feet of a Child Care and Early Education or Family Day Care Facility, park, school, library, Social Service Center, or other Medicinal Cannabis Retailer Medical Marijuana Dispensary. The distance shall be established on the date of application for the Conditional Use Permit. 10.C.e Packet Pg. 895 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 8 D. Hours of Operation. Medicinal Cannabis Retailers Medical Marijuana Dispensaries may be operated between the hours of 10:00 a.m. and 8:00 p.m. Monday through Saturday and 12:00 p.m. to 7:00 p.m. on Sundays. E. Recommendations. No recommendations for medicinal cannabis medicinal marijuana shall be issued on-site. F. Delivery. Delivery of medicinal cannabis medical marijuana to patients or primary care givers as defined in Health and Safety Code Section 11362.5 et seq. is permitted. G. Source Requirement. Only medicinal cannabis medical marijuana cultivated in California may be sold in a Medicinal Cannabis Retailer Dispensary. H. On-Site Cultivation. A maximum area of 15% of the total floor area may be used for on-site cultivation. medical marijuana. I. Staffing and Security. 1. Security Plan. The dispensary operator shall submit a security plan for review and approval by the Director of Planning with review and comment by the Police Department. The plan shall include but not be limited to provisions for qualified security staffing, alarms, video monitoring, securing cash, controlled customer access, and other similar elements the Director of Planning deems necessary to ensure the security of the site. 2. Alarm System. A centrally monitored alarm system shall be installed and maintained in good working order. 3. Staffing. a. An on-site supervisor must be present at all times that the 10.C.e Packet Pg. 896 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 9 Dispensary is in operation. b. Emergency Contact. The dispensary operator shall provide the Chief of Police and neighbors within 500 feet of the Dispensary with the name, phone number, and facsimile number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with the Dispensary. The Dispensary shall make a good faith effort to encourage members of the public to call this person to try to solve operating problems, if any, before calls or complaints are made to the City. c. Employees of the establishment shall be at least 21 years of age and patients a minimum of 18 years of age. IJ. Litter. Outdoor trash receptacles shall be available near the entrances to and exits from the establishment. The premises shall be continuously maintained in a safe, clean, and orderly condition with twice daily litter pick-up within 500 feet of the Medicinal Cannabis Retailer dispensary. K. Required Patron Notification. Dispensary staff shall notify patrons of the following verbally and through posting of a sign in a conspicuous location readily visible to persons entering the premises: 1. Use of medical marijuana shall be limited to the patient identified on the doctor’s recommendation. Secondary sale, barter, or distribution of medical marijuana is a crime and can lead to arrest. 2. Patrons must immediately leave the site and not consume medical marijuana until at home or in an equivalent private location. Dispensary staff shall 10.C.e Packet Pg. 897 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 10 monitor the site and vicinity to ensure compliance. 3. Forgery of medical documents is a felony crime. 4. Entry into the premises by persons under the age of 18 is prohibited unless they are a qualified patient and accompanied by a parent or legal guardian. L. Prohibited Activities. There shall be no on-site sales or consumption of alcohol or tobacco. JM. Inspections. A Medicinal Cannabis Retailer Dispensary owner shall authorize reasonable City inspection of the property by Santa Monica Code Enforcement and Police staff or other agents or employees of the City to ensure compliance with the conditions of approval imposed by the City in approving this project and will bear the reasonable cost of these inspections as established by Santa Monica Municipal Code Section 2.72.010 and Resolution No. 9905 (CCS) or any successor legislation thereto. These inspections shall be no more intrusive than necessary to ensure compliance with conditions of approval. KN. Enforcement Cooperation. A Medicinal Cannabis Retailer, and all employees thereof, Dispensary management shall use best efforts to assist the police in investigating and prosecuting any violations of this Chapter consistent with constitutional provisions. L. Sale of Adult-Use Cannabis or Adult-Use Cannabis Products. Notwithstanding anything to the contrary in this Section or Municipal Code, Medicinal Cannabis Retailers that have been issued a Conditional Use Permit as of October 10, 2023 shall be permitted to deliver and sell adult-use cannabis or adult-use cannabis products, as licensed and regulated by Business and 10.C.e Packet Pg. 898 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 11 Professions Code Section 26000 et seq. to persons 21 years of age and over. Only cannabis cultivated within California may be sold in accordance with this subsection. Cannabis shall not be consumed or used at the subject property. Conditions of a Conditional Use Permit issued to a Medicinal Cannabis Retailer eligible to sell adult-use cannabis or adult-use cannabis products under this subsection L that prohibit or otherwise interfere with the sale of adult-use cannabis or adult-use cannabis products shall not be enforced by the City in accordance with the permissions set forth in this subsection L. All remaining Conditional Use Permit conditions shall be subject to enforcement and will apply equally to adult- use cannabis. (c) SMMC Section 9.51.030 is hereby amended to read as follows: 9.51.030 Nonresidential Use Classifications A. Public and Semi-Public Use Classifications. 1. Adult Day Care. Establishments providing non-medical care for persons 18 years of age or older on a less than 24-hour basis licensed by the State of California. 2. Cemetery. Establishments primarily engaged in operating sites or structures reserved for the interment of human or animal remains, including mausoleums, burial places, and memorial gardens. 3. Child Care and Early Education Facility. Establishments providing non-medical care for persons less than 18 years of age on a less than 24-hour basis other than family day care (small and large). This classification includes commercial and nonprofit nursery schools, preschools, day care facilities 10.C.e Packet Pg. 899 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 12 for children, and any other day care facility licensed by the State of California. See Division 3, Section 9.31.120, Child Care and Early Education Facilities, for further details. 4. College and Trade School. Institutions of higher education providing curricula of a general, religious or professional nature, typically granting recognized degrees, including conference centers and academic retreats associated with such institutions. This classification includes junior colleges, business and computer schools, management training, technical and trade schools, but excludes personal instructional services such as music lessons. 5. Community Assembly. A facility for public or private meetings including community centers, banquet centers, religious assembly facilities, civic auditoriums, union halls, meeting halls for clubs and other membership organizations. This classification includes functionally related facilities for the use of members and attendees such as kitchens, multi-purpose rooms, and storage. It does not include gymnasiums or other sports facilities, convention centers, or facilities, such as day care centers and schools that are separately classified and regulated. See Division 3, Section 9.31.100, Community Assembly, for further details. 6. Community Garden. An area of land managed and maintained by a public or nonprofit organization or a group of individuals to grow and harvest food crops and/or ornamental crops, such as flowers, for personal or group use, consumption, or donation. Community gardens may be divided into separate plots for cultivation by one or more individuals or may be farmed collectively by members 10.C.e Packet Pg. 900 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 13 of the group and may include common areas maintained and used by group members. Community gardens may be accessory to public or institutional uses such as parks, schools, community centers, or religious assembly uses. This classification does not include gardens that are on a property in residential use when access is limited to those who reside on the property. Community gardens do not include medical marijuana collectives. 7. Cultural Facility. Facilities engaged in activities to serve and promote aesthetic and educational interest in the community that are open to the public on a regular basis. This classification includes performing arts centers for theater, music, dance, and events; spaces for display or preservation of objects of interest in the arts or sciences; libraries; museums; historical sites; aquariums; art galleries; and zoos and botanical gardens. It does not include schools or institutions of higher education providing curricula of a general nature. 8. Hospitals and Clinics. State-licensed public, private, and nonprofit facilities providing medical, surgical, mental health, or emergency medical services. This classification includes facilities for inpatient or outpatient treatment, including substance-abuse programs, as well as training, research, and administrative services for patients and employees. This classification excludes veterinary services and animal hospitals (see Animal Care, Sales, and Services). a. Hospital. A facility providing medical, surgical, mental health, or services primarily on an in-patient basis, and including ancillary facilities for outpatient and emergency treatment, diagnostic services, training, research, administration, and services to patients, employees, or visitors. 10.C.e Packet Pg. 901 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 14 b. Clinic. A facility providing medical, mental health, or surgical services exclusively on an out-patient basis, including emergency treatment, diagnostic services, administration, and related services to patients who are not lodged overnight. Services may be available without a prior appointment. This classification includes licensed facilities offering substance abuse treatment, blood banks, plasma, dialysis centers, and emergency medical services offered exclusively on an out-patient basis. This classification does not include private medical and dental offices that typically require appointments and are usually smaller scale (see Offices, Medical and Dental). 9. Park and Recreation Facility. Parks, playgrounds, recreation facilities, trails, wildlife preserves, and related open spaces, which are open to the general public. This classification also includes playing fields, courts, gymnasiums, swimming pools, picnic facilities, tennis courts, golf courses, and botanical gardens, as well as related food concessions or community centers within the facilities and restrooms within a primary structure or in an accessory structure on the same site. 10. Public Safety Facility. Facilities providing public-safety and emergency services, including police and fire protection and emergency medical services, with incidental storage, training and maintenance facilities. 11. School. Facilities for primary or secondary education, including public schools, charter schools, and private and parochial schools. 12. Social Service Center. Facilities providing a variety of supportive 10.C.e Packet Pg. 902 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 15 services for disabled and homeless individuals and other targeted groups on a less than 24-hour basis. Examples of services provided are counseling, meal programs, personal storage lockers, showers, instructional programs, television rooms, and meeting spaces. This classification is distinguished from licensed day care centers (see Adult Day Care and Child Care and Early Education Facility), clinics (see Clinic), and emergency shelters providing 24-hour or overnight care (see Emergency Shelter). B. Commercial Use Classifications 1. Adult-Oriented Business. See Sexually-Oriented Businesses. 2. Animal Care, Sales and Services. Retail sales and services related to the boarding, grooming, and care of household pets, including: a. Grooming and Pet Store. Retail sales of animals and/or services, including grooming, for animals on a commercial basis. Typical uses include dog bathing and clipping salons, pet grooming shops, and pet stores and shops. This classification excludes dog walking and similar pet care services not carried out at a fixed location, and excludes pet supply stores that do not sell animals or provide on-site animal services (see General Retail Sales). b. Kennel. A commercial, nonprofit, or governmental facility for keeping, boarding, training, breeding or maintaining 4 or more dogs, cats, or other household pets not owned by the kennel owner or operator on a 24-hour basis. This classification includes animal shelters and animal hospitals that provide boarding-only services for animals not receiving 10.C.e Packet Pg. 903 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 16 services on the site but excludes the provision by shops and hospitals of 24-hour accommodation of animals receiving medical services on site. This classification also includes kennels that, in addition to 24-hour accommodation, provide pet care for periods of less than 24 hours but it does not include facilities that provide pet day care exclusively or predominantly. c. Pet Day Care Service. A commercial, nonprofit, or governmental facility for keeping 4 or more dogs, cats, or other household pets not owned by the kennel owner or operator primarily for periods of less than 24 hours. d. Veterinary Service. Veterinary services for domesticated animals. This classification allows 24-hour accommodation of animals receiving medical services but does not include kennels. 3. Automobile/Vehicle Sales and Services. Retail or wholesale businesses that sell, rent, and/or repair automobiles, boats, recreational vehicles, trucks, vans, trailers, and motorcycles, including the following: a. Alternative Fuels and Recharging Facility. A facility offering motor vehicle fuels not customarily offered by commercial refueling stations (e.g., LPG) as well as equipment to recharge electric-powered vehicles. This classification does not include facilities within public garages or other stations that are accessory to a permitted use. b. Automobile Rental. Rental of automobiles. Typical uses include car rental agencies. See Division 3, Section 9.31.050, Automobile 10.C.e Packet Pg. 904 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 17 Rental, for further details. c. Automobile Storage Parcel. Any property used for short- or long-term parking of vehicles for sale or lease at an automobile dealership or rental agency on a separate parcel from such agency or dealership. d. Automobile/Vehicle Sales and Leasing. Sale or lease, retail or wholesale, of new or used automobiles, light trucks, motorcycles, motor homes, and trailers, together with associated repair services and parts sales for vehicles sold or leased by the manufacturer associated with the dealership. (For auto repair, see Automobile/Vehicle Service and Repair, Major and Minor.) This classification includes on-site facilities for maintaining an inventory of vehicles for sale or lease but excludes buildings and property on a separate site that are used for storing vehicles (see Automobile Storage Parcel). Typical uses include automobile dealers and recreational vehicle sales agencies. This classification also includes minor on-site preparation, washing, buffing, waxing, and detailing of vehicles for sale or vehicles repaired at the facility. Any outdoor preparation, washing, buffing, waxing, and detailing of vehicles shall comply with the standards of Section 9.31.080(C), (D), (M), (N), (P), and (Q). This classification does not include automobile brokerage and other establishments that solely provide services of arranging, negotiating, assisting, or effectuating the purchase of automobiles for others. See Division 3, Section 9.31.070, Automobile/Vehicle Sales, Leasing, and Storage, for further details. e. Automobile/Vehicle Repair, Major. Repair of automobiles, 10.C.e Packet Pg. 905 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 18 trucks, motorcycles, motor homes, boats and recreational vehicles, including the incidental sale, installation, and servicing of related equipment and parts. This classification includes auto repair shops, body and fender shops, transmission shops, wheel and brake shops, auto glass services, vehicle painting, tire sales and installation, and installation of car alarms, sound, telecommunications, and navigation systems, but excludes vehicle dismantling or salvaging and tire retreading or recapping. See Division 3, Section 9.31.060, Automobile/Vehicle Repair, Major and Minor, for further details. f. Automobile/Vehicle Service and Repair, Minor. The service and repair of automobiles, light-duty trucks, boats, and motorcycles, including the incidental sale, installation, and servicing of related equipment and parts. This classification includes the replacement of small automotive parts and liquids as an accessory use to a gasoline sales station or automotive accessories and supply store, as well as smog check quick- service oil, tune-up and brake and muffler shops where repairs are made or service provided in enclosed bays and no vehicles are stored overnight. This classification excludes disassembly, removal or replacement of major components such as engines, drive trains, transmissions or axles; automotive body and fender work, vehicle painting or other operations that generate excessive noise, objectionable odors or hazardous materials, and towing services. It also excludes repair of heavy trucks, limousines or construction vehicles. See Division 3, Section 9.31.060, Automobile/Vehicle 10.C.e Packet Pg. 906 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 19 Repair, Major and Minor, for further details. g. Automobile/Vehicle Washing. Washing, waxing, or cleaning of automobiles or similar light vehicles, that are the principal use of a building, structure, or site, including self-serve washing facilities. See Division 3, Section 9.31.080, Automobile/Vehicle Washing, for further details. h. Large Vehicle and Equipment Sales, Service, and Rental Sales, servicing, rental, fueling, and washing of large trucks, trailers, tractors, and other equipment used for construction, moving, agricultural, or landscape gardening activities. Includes large vehicle operation training facilities. i. Service Station. Establishments primarily engaged in retailing automotive fuels or retailing these fuels in combination with activities, such as providing minor automobile/vehicle repair services; selling automotive oils, replacement parts, and accessories; and/or providing accessory food and retail services. See Division 3, Section 9.31.320, Service Stations, for further details. j. Towing and Impound. Establishments primarily engaged in towing light or heavy motor vehicles, both local and long distance. These establishments may provide incidental services, such as vehicle storage and emergency road repair services (for automobile dismantling, see Salvage and Wrecking). This classification includes parcels used for storage of impounded vehicles. 10.C.e Packet Pg. 907 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 20 4. Banks and Financial Institutions. a. Bank and Credit Union. Financial institutions providing retail banking services. This classification includes only those institutions engaged in the on-site circulation of money, including credit unions, but excluding check-cashing businesses. For administration, headquarters, or other offices of banks and credit unions without retail banking services/on- site circulation of money (see Offices, Business and Professional). b. Check Cashing Business. Establishments that, for compensation, engage in the business of cashing checks, warrants, drafts, money orders, or other commercial paper serving the same purpose. This classification also includes the business of deferred deposits, whereby the check casher refrains from depositing a personal check written by a customer until a specific date pursuant to a written agreement as provided in Civil Code 1789.33. Check Cashing Businesses do not include State or Federally chartered banks, savings associations, credit unions, or industrial loan companies. They also do not include retail sellers engaged primarily in the business of selling consumer goods, such as consumables to retail buyers that cash checks or issue money orders incidental to their main purpose or business. 5. Bar. See Eating and Drinking Establishments. 6. Business Service. Establishments providing goods and services to other businesses on a fee or contract basis, including printing and copying, blueprint services, mailbox services, equipment rental and leasing, office security, 10.C.e Packet Pg. 908 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 21 custodial services, film processing, model building, and delivery services with 2 or fewer fleet vehicles on-site. (For 3 or more fleet vehicles, see Light Fleet-Based Services.) 7. Commercial Entertainment and Recreation. Provision of participant or spectator entertainment. This classification may include restaurants, snack bars, and other incidental food and beverage services to patrons. a. Cinema. Facilities for indoor display of films and motion pictures. b. Theater. Facilities designed and used for entertainment, including plays, comedy, and music, which typically contain a stage upon which movable scenery and theatrical appliances or musical instruments and equipment are used. c. Convention and Conference Centers. Facilities designed and used for conventions, conferences, seminars, trade shows, product displays, and other events in which groups gather to promote and share common interests. Convention centers typically have at least one auditorium and may also contain concert halls, lecture halls, meeting rooms, and conference rooms, as well as accessory uses such as facilities for food preparation and serving and administrative offices. For conference facilities accessory to hotels, see Hotel and Motel. d. Large-Scale Facility. This classification includes large outdoor facilities such as amusement and theme parks, sports stadiums and arenas, racetracks, amphitheaters, drive-in theaters, driving ranges, and 10.C.e Packet Pg. 909 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 22 golf courses. It also includes indoor facilities with 5,000 square feet or more in building area such as fitness centers, gymnasiums, handball, racquetball, or large tennis club facilities; ice or roller skating rinks; swimming or wave pools; miniature golf courses; bowling alleys; archery or indoor shooting ranges; and riding stables. e. Small-Scale Facility. This classification includes small, generally indoor facilities that occupy less than 5,000 square feet of building area, such as billiard parlors, card rooms, game arcades, dance halls, small tennis club facilities, poolrooms, and amusement arcades. f. Fortunetelling. An establishment where a person or persons provide fortunetelling services and demand or receive, directly or indirectly, a fee or reward, or accept any donation for the exercise or exhibition of fortunetelling services, or give an exhibition of fortunetelling services at any place where a fee, donation or reward is charged or received, directly or indirectly as a condition of entry. Fortunetelling services shall include, but not be limited to, the telling of fortunes, forecasting of futures, or furnishing of any information not otherwise obtainable by the ordinary process of knowledge, by means of any occult or psychic power, faculty or force, psychic reading, occult reading, clairvoyance, clairaudience, cartomancy, psychometry, phrenology, spirits, mediumship, seership, prophecy, augury, astrology, palmistry, necromancy, mindreading, tarot card readings, tea leaves, telepathy or other craft, art, science, cards, talisman, charm, potion, magnetism, magnetized article or substance, crystal gazing, or magic of any 10.C.e Packet Pg. 910 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 23 kind or nature. 8. Eating and Drinking Establishments. Businesses primarily engaged in selling and serving prepared food and/or beverages for consumption on or off the premises. a. Bar/Night Club/Lounge. Businesses that are licensed by the State to serve alcoholic beverages, including beer, wine and mixed drinks for consumption on the premises from a liquor service facility that is physically separate from the dining area and may be operated during hours when food is not served. See Division 3, Section 9.31.040, Alcoholic Beverage Sales, for further details. b. Restaurant, Full-Service. Restaurants providing food and beverage services to patrons who order and are served while seated and pay after eating. Takeout service may also be provided. See Division 3, Section 9.31.040, Alcoholic Beverage Sales, where applicable, for further details. c. Restaurant, Limited-Service and Take-Out. Establishments where food and beverages may be consumed on the premises, taken out, or delivered. This classification includes cafes, cafeterias, coffee shops, delicatessens, fast-food restaurants, sandwich shops, limited-service pizza parlors, self-service restaurants, ice cream and frozen yogurt shops, and snack bars with indoor or outdoor seating for customers. This classification includes bakeries that have tables for on-site consumption of products. It excludes catering services that do not sell food or beverages for on-site 10.C.e Packet Pg. 911 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 24 consumption (see Commercial Kitchen). See Division 3, Sections 9.31.040, Alcoholic Beverage Sales, and 9.31.280, Restaurants, Limited Service and Take Out Only, where applicable, for further details. d. Food Hall. Establishments consisting of three or more individually licensed businesses within an enclosed building where food and beverages may be consumed on the premises, taken out, or delivered, and may also include small retail venues. Patrons may be served while seated and pay after eating, or orders may be made at a walk-up window, counter, machine, or remotely, and payment made prior to food consumption. Characteristics of food halls include but are not limited to: shared entrance/lobby areas, compartmentalized spaces for individually licensed businesses, shared eating areas, shared restrooms, and shared “back of house” areas (e.g., storage, dishwashing, food preparation). Each compartmentalized space may have access to the exterior of the building, along with outdoor dining and seating areas, which may be shared with other businesses within the establishment. e. With Drive-Through Facility. Establishments providing food and beverage services to patrons remaining in automobiles. Includes drive- up service. f. With Outdoor Dining and Seating Area. Provision of outdoor dining facilities on the same property or in the adjacent public right-of-way. See Division 3, Section 9.31.200, Outdoor Dining and Seating, for further details. 10.C.e Packet Pg. 912 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 25 9. Equipment Rental. Establishments whose primary activity is the rental of equipment, such as medical and party equipment, to individuals and business, and whose activities may include storage and delivery of items to customers. 10. Food and Beverage Sales. Retail sales of food and beverages for off-site preparation and consumption. Typical uses include food markets, groceries, and liquor stores. a. Convenience Market. Retail establishments that sell a limited line of groceries, prepackaged food items, tobacco, magazines, and other household goods, primarily for off-premises consumption. These establishments typically have long or late hours of operation and occupy a relatively small building. This classification includes small retail stores located on the same parcel as or operated in conjunction with a Service Station but does not include delicatessens or specialty food shops. It excludes establishments that offer a sizeable assortment of fresh fruits and vegetables or fresh-cut meat (see General Market). See Division 3, Section 9.31.040, Alcoholic Beverage Sales, for further details. b. Farmers Market. A location where the primary activity is the sale of agricultural products by producers and certified producers. Sales of ancillary products may occur at the location. An open air farmers market may only be operated by a local government agency. c. General Market. Retail food markets of food and grocery items primarily for offsite preparation and consumption. Typical uses include 10.C.e Packet Pg. 913 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 26 supermarkets and specialty food stores such as retail bakeries; candy, nuts and confectionary stores; meat or produce markets; vitamin and health food stores; cheese stores; and delicatessens. This classification may include small-scale specialty food production with retail sales such as pasta shops. See Division 3, Sections 9.31.040, Alcoholic Beverage Sales, and 9.31.150, General Markets in Residential Districts, where applicable, for further details. d. Liquor Store. Establishments primarily engaged in selling packaged alcoholic beverages for off-site consumption. See Division 3, Section 9.31.040, Alcoholic Beverage Sales, for further details. 11. Funeral Parlor and Mortuary. An establishment primarily engaged in the provision of services involving the care, preparation, or disposition of human remains and conducting memorial services. Typical uses include a crematory, columbarium, mausoleum, or mortuary. 12. Home Occupation. A use that is incidental and secondary to the primary residential use of a dwelling and compatible with surrounding residential uses. These uses include business, professional, and creative offices, food production, limited personal services, and urban agriculture. See Division 3, Section 9.31.160, Home Occupations for further details. 13. Instructional Services. Establishments that offer specialized programs in personal growth and development, typically in a classroom setting. Typical uses include classes or instruction in music, health, athletics, art, or academics. Instructional Services may include rehearsal studios as an accessory 10.C.e Packet Pg. 914 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 27 use. This use type excludes Colleges and Trade Schools and facilities that offer instructional services (see General Personal Services). This use type also excludes gyms, exercise clubs, or studios offering performing arts, martial arts, physical exercise, or yoga training and similar types of instruction. See Personal Services-Physical Training. 14. Live-Work. A unit that combines a work space and incidental residential space occupied and used by a single household in a structure that has been constructed for such use or converted from commercial or industrial use and structurally modified to accommodate residential occupancy and work activity in compliance with the Building Code. The working space is reserved for and regularly used by one or more occupants of the unit. See Division 3, Section 9.31.170, Live-Work Units, for further details. 15. Lodging. An establishment providing overnight accommodations to transient patrons who maintain a permanent place of residence elsewhere for payment for periods of 30 consecutive calendar days or less. a. Bed and Breakfast. A residential structure that is in residential use in which the property owner or manager lives on site and within which up to 4 bedrooms are rented for overnight lodging and where meals may be provided. See Division 3, Section 9.31.090, Bed and Breakfasts, for further details. b. Hotel and Motel. An establishment providing temporary lodging to transient patrons. These establishments may provide additional services, such as conference and meeting rooms, restaurants, bars, or 10.C.e Packet Pg. 915 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 28 recreation facilities available to guests or to the general public. This use classification includes motor lodges, motels, apartment hotels, hostels and tourist courts, but does not include rooming houses, boarding houses, or private residential clubs, single-room occupancy housing, or bed and breakfast establishments within a single-unit residence. c. Vacation Rental. A property with a dwelling unit or guest house intended for permanent occupancy that is available for rent or hire for any person other than the primary owner for transient use for 30 days or less or is otherwise occupied or utilized on a transient basis for 30 days or less. Vacation rental does not include a Bed and Breakfast as defined above. 16. Maintenance and Repair Service. Establishments engaged in the maintenance or repair of office machines, household appliances, furniture, and similar items. This classification excludes maintenance and repair of motor vehicles or boats (see Automotive/Vehicle Sales and Services) and personal apparel (see Personal Services). 17. Mobile Food Truck Off-Street Venue. A location where the commercial vending of food occurs from parked vehicles. 18. Nursery and Garden Center. Establishments primarily engaged in retailing nursery and garden products—such as trees, shrubs, plants, seeds, bulbs, and sod—that are predominantly grown elsewhere. These establishments may sell a limited amount of a product they grow themselves. Fertilizer and soil products are stored and sold in packaged form only. 10.C.e Packet Pg. 916 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 29 19. Offices. Offices of firms, organizations (for-profit and nonprofit), and public agencies providing professional, executive, management, administrative or design services, such as accounting, architectural, computer software design, engineering, graphic design, interior design, investment, insurance, and legal offices, excluding banks and savings and loan associations with retail banking services (see Banks and Financial Institutions). This classification also includes offices where medical and dental services are provided by physicians, dentists, chiropractors, acupuncturists, optometrists, and similar medical professionals, including medical/dental laboratories within medical office buildings but excluding clinics or independent research laboratory facilities (see Research and Development) and hospitals (see Hospital and Clinic). a. Business and Professional. Offices of firms, organizations, or agencies providing professional, executive, management, administrative, financial, accounting, or legal services, but excluding those that primarily provide direct services to patrons that visit the office (see Offices, Walk-In Clientele). b. Creative. Offices, production spaces, and work spaces of establishments that are in the business of the development, publishing, production, or distribution of creative property, including, but not limited to, advertising, architectural services, broadcasting, communications, computer software design, media content, entertainment, engineering, fashion design, film distribution, graphic design, interior design, internet content, landscape design, photography, and similar uses. 10.C.e Packet Pg. 917 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 30 c. Medical and Dental. Offices providing consultation, diagnosis, therapeutic, preventive, or corrective personal treatment services by doctors and dentists; medical and dental laboratories that see patients; and similar practitioners of medical and healing arts for humans licensed for such practice by the State of California. Incidental medical and/or dental research within the office is considered part of the office use if it supports the on-site patient services. d. Walk-In Clientele. Offices predominantly providing direct services to patrons or clients and do not require appointments. This use classification includes employment agencies, insurance agent offices, real estate offices, travel agencies, utility company offices, and offices for elected officials. It does not include banks or check-cashing facilities, which are separately classified and regulated (see Banks and Financial Institutions). 20. Parking, Public or Private. Structures and surface lots offering parking for a fee when such use is not incidental to another on-site activity. 21. Personal Service. a. General Personal Services. Provision of recurrently needed services of a personal nature. This classification includes barber shops and beauty salons, seamstresses, tailors, dry cleaning agents (excluding large- scale bulk cleaning plants), shoe repair shops, self-service laundries, video rental stores, photocopying and photo finishing services, and travel agencies mainly intended for the consumer. This classification also includes 10.C.e Packet Pg. 918 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 31 massage establishments that are in full compliance with the applicable provisions of Chapter 6.104, Massage Regulations, of the Santa Monica Municipal Code, and in which all persons engaged in the practice of massage are certified pursuant to the California Business and Professions Code Section 4612. This classification does not include gyms, exercise clubs, or studios offering performing arts, martial arts, physical exercise, or yoga training and similar types of instruction. See Division 3, Section 9.31.230, Personal Service, for further details. b. Personal Services, Physical Training. Gyms, exercise clubs, or studios less than 5,000 square feet offering martial arts, physical exercise, yoga training and similar types of instruction to classes and groups. This classification also includes exclusively youth-serving studios of less than 3,000 square feet offering performing arts, dance, martial arts, physical exercise, and similar types of instruction to classes and groups of more than 5 persons. c. Tattoo or Body Modification Parlor. An establishment whose principal business activity is one or more of the following: (i) using ink or other substances that result in the permanent coloration of the skin through the use of needles or other instruments designed to contact or puncture the skin; or (ii) creation of an opening in the body of a person for the purpose of inserting jewelry or other decoration. See Division 3, Section 9.31.230, Personal Service, for further details. 22. Retail Sales 10.C.e Packet Pg. 919 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 32 (a) Building Materials and Services. Retail sales or rental of building supplies or equipment. This classification includes lumberyards, tool and equipment sales or rental establishments, and includes establishments devoted principally to taxable retail sales to individuals for their own use. This definition does not include Construction and Material Yards, hardware stores less than 10,000 square feet or establishments engaged in the business of selling, leasing, or otherwise transferring any firearm or ammunitions. (b) General Retail Sales, Small-Scale. The retail sale or rental of merchandise not specifically listed under another use classification. This classification includes retail establishments with 25,000 square feet or less of sales area; including department stores, clothing stores, furniture stores, pet supply stores, small hardware and garden supply/nurseries stores (with 10,000 square feet or less of floor area), and businesses retailing goods including, but not limited to, the following: toys, hobby materials, handcrafted items, jewelry, cameras, photographic supplies and services (including portraiture and retail photo processing), medical supplies and equipment, pharmacies, electronic equipment, sporting goods, kitchen utensils, hardware, appliances, antiques, art galleries, art supplies and services, paint and wallpaper, carpeting and floor covering, office supplies, bicycles, video rental, and new automotive parts and accessories (excluding vehicle service and installation). Retail sales may be combined with other services such as office machine, computer, electronics, and 10.C.e Packet Pg. 920 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 33 similar small-item repairs. See Division 3, Sections 9.31.210, Outdoor Newsstands, and 9.31.220, Outdoor Retail Display and Sales, where applicable, for further details. (c) General Retail Sales, Medium-Scale. The retail sale or rental of merchandise not specifically listed under another use classification. This classification includes retail establishments with more than 25,000 square feet but not more than 80,000 square feet of sales area. (d) General Retail Sales, Large-Scale. Retail establishments with over 80,000 square feet of sales area that sell merchandise and bulk goods for individual consumption, including membership warehouse clubs, where sales of grocery items do not occupy more than 25% of the floor area. (e) Medicinal Cannabis Retailer. A licensed premises which is a physical location from which retail medicinal cannabis or medicinal cannabis products are intended to be sold for use, pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code, by a medicinal cannabis patient in California who possesses a physician’s recommendation. The premises may be closed to the public; sales may be made exclusively by delivery. Subject to the provisions of SMMC Section 9.31.185 Medicinal Cannabis Retailers shall be permitted to deliver, cultivate, or sell adult-use cannabis or adult-use cannabis products, as licensed and regulated by Business and Professions Code Section 26000 et seq. and as amended from time to time, to persons 21 years of age and over. Medical Marijuana Dispensary Any 10.C.e Packet Pg. 921 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 34 facility, building, structure, or fixed location where one or more qualified patients and/or persons with identification cards and/or primary caregivers cultivate, distribute, sell, dispense, transmit, process, exchange, give away, or otherwise make available marijuana for medical purposes. The terms “primary caregiver,” “qualified patient,” and “person with an identification card” shall be as defined in California Health and Safety Code Section 11362.5 et seq. i. A Medical Marijuana Dispensary shall not include the following uses, as long as the location of such uses are otherwise regulated by applicable law and as long as any such use complies strictly with applicable law including, but not limited to, California Health and Safety Code Section 11362.5 et seq.: (1) A clinic licensed pursuant to Chapter 1 of Division 2 of the California Health and Safety Code. (2) A health care facility licensed pursuant to Chapter 2 of Division 2 of the California Health and Safety Code. (3) A residential care facility for persons with chronic life- threatening illness licensed pursuant to Chapter 3.01 of Division 2 of the California Health and Safety Code. (4) A residential care facility for the elderly licensed pursuant to Chapter 3.2 of Division 2 of the California Health and Safety Code. 10.C.e Packet Pg. 922 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 35 (5) A residential hospice, or a home health agency licensed pursuant to Chapter 8 of the California Health and Safety Code. ii. A Medical Marijuana Dispensary shall also not include any dwelling unit where qualified patients or persons with an identification card permanently reside and collectively or cooperatively cultivate marijuana on-site for their own personal medical use and does not include the provision, cultivation, or distribution of medical marijuana at this dwelling unit by primary caregivers for the personal medical use of the qualified patients or persons with an identification card who have designated the individual(s) as a primary caregiver, in accordance with California Health and Safety Code Sections 11362.5 and 11362.7 et seq. (f) Pawn Shop. Establishments engaged in the buying or selling of new or secondhand merchandise and offering loans in exchange for personal property. (g) Swap Meet. Any indoor or outdoor place, in an approved location, or for an approved activity where new or used goods or secondhand personal property is offered for sale or exchange to the general public by a multitude of individual licensed vendors, usually in compartmentalized spaces. The term swap meet is interchangeable with and applicable to: flea markets, auctions, open air markets, outdoor sales activities, or other similarly named or labeled activities; but does not include 10.C.e Packet Pg. 923 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 36 supermarket or department store retail operations. See Division 3, Sections 9.31.360, Swap Meets, and 9.31.220, Outdoor Retail Display and Sales, for further details. SECTION 2. Any provision of the Santa Monica Municipal Code or any appendix thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective thirty days after its adoption. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN 10.C.e Packet Pg. 924 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 37 City Attorney 10.C.e Packet Pg. 925 Attachment: Interim Zoning Ordinance to Allow Adult-Use Cannabis (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at 1 Xavier Mota From:Steven Rice <steventrice@yahoo.com> Sent:Saturday, October 7, 2023 7:49 PM To:councilmtgitems Subject:Opposition to a non medicinal marijuana only dispensary at 1416 Wilshire Boulevard EXTERNAL  Dear council ‐   I strongly oppose the efforts to open this dispensary so close to Lincoln Middle School & Lincoln child development  center. As a longtime resident, growing up in this community, attending both Lincoln Junior High ( at its time ) and then  graduating from Samohi. Now my wife and I are raising young daughters who currently attend Roosevelt elementary  school. To have this recreational shop so close to our kids is a horrible idea.   We understand the importance of ensuring access to medical marijuana for those in genuine need, but my family is  deeply concerned that eliminating these restrictions without first establishing a clear and comprehensive municipal code  subsection for (Adult‐use) recreational marijuana retailers would be premature and potentially harmful.  We commend the Council for its thoughtful approach on the selection of retailers and the establishment of local  ordinances pertaining to Medicinal Cannabis Dispensaries in our city. In light of this, I respectfully urge the Santa Monica  City Council to continue its diligent efforts and prioritize the development and implementation of a comprehensive  municipal code specifically tailored to regulate (Adult‐use) recreational marijuana retailers before any consideration is  given to the removal of medical‐only restrictions. This code should address essential issues such as proximity to  schools, advertising regulations, and stringent measures to prevent underage access. The impacts of Medical‐only  Dispensaries vs. Adult‐use Recreational Dispensaries on a community are not equal, so the code defining them should  not be the same.  Let us ensure that the interests of our children and the safety of our community are at the forefront of any decisions  made regarding marijuana retail in Santa Monica. I kindly request that you carefully consider the potential ramifications  of this proposal on our children's well‐being and education.  Thank you for your continued unwavering commitment to our community.  Sincerely,  Steve Rice  Sent from my iPhone  ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 926 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Steven Rice <steventrice@yahoo.com> Sent:Saturday, October 7, 2023 7:52 PM To:councilmtgitems Subject:Re: Opposition to a non medicinal marijuana only dispensary at 1416 Wilshire Boulevard ## to be clear medicinal only not recreational EXTERNAL    Please be clear in the email just sent seconds ago No Recreational Use to be sold only medically recommended is what  we support  Sent from my iPhone      On Oct 7, 2023, at 7:48 PM, Steven Rice <steventrice@yahoo.com> wrote:      Dear council ‐     I strongly oppose the efforts to open this dispensary so close to Lincoln Middle School & Lincoln child  development center. As a longtime resident, growing up in this community, attending both Lincoln  Junior High ( at its time ) and then graduating from Samohi. Now my wife and I are raising young  daughters who currently attend Roosevelt elementary school. To have this recreational shop so close to  our kids is a horrible idea.     We understand the importance of ensuring access to medical marijuana for those in genuine need, but  my family is deeply concerned that eliminating these restrictions without first establishing a clear and  comprehensive municipal code subsection for (Adult‐use) recreational marijuana retailers would be  premature and potentially harmful.    We commend the Council for its thoughtful approach on the selection of retailers and the establishment  of local ordinances pertaining to Medicinal Cannabis Dispensaries in our city. In light of this, I  respectfully urge the Santa Monica City Council to continue its diligent efforts and prioritize the  development and implementation of a comprehensive municipal code specifically tailored to regulate  (Adult‐use) recreational marijuana retailers before any consideration is given to the removal of medical‐ only restrictions. This code should address essential issues such as proximity to schools, advertising  regulations, and stringent measures to prevent underage access. The impacts of Medical‐only  Dispensaries vs. Adult‐use Recreational Dispensaries on a community are not equal, so the code defining  them should not be the same.    Let us ensure that the interests of our children and the safety of our community are at the forefront of  any decisions made regarding marijuana retail in Santa Monica. I kindly request that you carefully  consider the potential ramifications of this proposal on our children's well‐being and education.    Thank you for your continued unwavering commitment to our community.    Sincerely,  ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 927 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 2   Steve Rice    Sent from my iPhone  ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 928 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Wendy Meyer <takenoteon@yahoo.com> Sent:Monday, October 9, 2023 12:34 PM To:councilmtgitems Subject:City Clerk Re: Adult-Use Cannabis IZO EXTERNAL    Hello, I would like to submit a public comment to the Oct. 10, 2023 City Council member meeting. Dear City Council Members, I would like the council to oppose amending the Interim Zoning Ordinance, until it can establish a clear and comprehensive municipal code subsection for (adult-use) recreational marijuana retailers. As a member of the community and a parent of underage students, I am concerned about recreational marijuana being sold in close proximity to the middle school. Thank you, Wendy Meyer ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 929 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Esther Hickman <estherheidi@gmail.com> Sent:Tuesday, October 10, 2023 9:50 AM To:councilmtgitems; Council Mailbox Subject:Agenda Item 10.C_Cannabis Label Warnings EXTERNAL    Dear Honorable Council Members,     Please ask staff to work on facilitating prominent health warnings on all the possible health risks associated with  cannabis consumption.  Not everyone metabolizes the properties in these products equally and kids should especially understand this.    Unfortunately, I have too many personal family stories about mental illness to share around this.    Being a 30 year patient of ankylosing spondylitis which requires a constant pain management regimen, I can tell you that  medical marijuana is not for everyone to dabble in and should come with prominent warnings.      Also, have you driven through Van Nuys and North Hollywood lately?  Not a pretty sight.  Let's keep it professional,  medical and with lots of prominent warning labels.  It would be terrible if this initiative created new problems.     ‐‐   Esther Hickman  Pico Neighborhood Resident  SMMUSD Alumni and Parent  310.600.7306  ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 930 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Peter Borresen <pbosen@yahoo.com> Sent:Tuesday, October 10, 2023 10:19 AM To:councilmtgitems; Council Mailbox; Esther Hickman Subject:Agenda Item 10.C. City council 10/10/2023. Public written comment. Cannabis warning labels. EXTERNAL    Prominent, tobacco style, cannabis warning labels. Dear City Council, The US Center for Disease Control (the CDC) and the National Institute of Health (NIH) state that marijuana is proven to increase the risks of serious mental illness, including schizophrenia, and that it affects brain development, and causes many other serious harms. It is astonishing that none of the city staff reports that I have seen discuss the health risks of cannabis. This is remiss of staff and must be addressed before going further. I ask the council to pause further action regarding cannabis, and give staff time to look at requiring prominent health warnings at points of sale, on retail packaging and exterior signage. Pot appears much more harmful to mental health than tobacco. As shown by many scientifically rigorous, peer reviewed studies, as referenced by the CDC, the NIH and many other health agencies, We have health warnings for tobacco. To not have health warnings for pot is absurd. Consumers have a right to know the risks they take when using a city-permitted, recreational drug. And even for FDA medicines we require a list of side-effects and risks. By not warning of the risks, we open up the city to potential future expensive lawsuits from those who suffer psychosis and harm, when the risks are well known and proven. To say nothing of the harm to the individuals and to society regarding the increasing violence and homelessness resulting from rising cases of schizophrenia and psychosis. As we see every day on our streets. Using the CDC and NIH websites as sources, I ask the council to send the staff report back and to ask staff to analyze the known health risks, and to study requiring prominent, tobacco style health warnings on retail packaging, and at the point of sale and outside stores. I urge everyone to visit the CDC and NIH websites to read more about the health consequences of marijuana use. Yours sincerely, Peter Borresen, Santa Monica ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 931 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Nicole villanova-price <nicolevillanova@gmail.com> Sent:Tuesday, October 10, 2023 10:27 AM To:councilmtgitems Subject:NO to Dispensary location near Lincoln Middle School EXTERNAL    We, as the people of Santa Monica have felt ignored and not the top of our city's priority for quite some time. And now  this. The thought of our council and city approving a non‐medical dispensary location less than 800 feet from our  community middle school is unconscionable. The fact that a medical one went up under the cloud of Covid was already  disturbing. Please make this right and refuse Medicinal Cannabis Retailers anywhere near our schools. It took years for  the city to decide on where we stand and to land here is just an embarrassment.    My 8th grader at Lincoln already shares with me stories of kids being high everyday and getting high in the bathrooms.  We do not need to make this reality even easier for teenagers.      ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 932 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Trinedy Kru <trinedy@proton.me> Sent:Tuesday, October 10, 2023 11:04 AM To:councilmtgitems Subject:Agenda Item 10: City Clerk Re: Adult-Use Cannabis IZO EXTERNAL    Subject: City Clerk Re: Adult-Use Cannabis IZO  Dear Santa Monica City Council,  I am writing to you as a concerned parent, with three children currently attending schools in Santa Monica. I would like to express my strong opposition to the proposed removal of medical-only restrictions on marijuana retailers at this time. If this proposal is approved too hastily, it will fail to adequately consider the potential repercussions on our local community, particularly on Lincoln Middle School and Lincoln Child Development Center, which are situated less than 800 feet away from the proposed location of the previously granted Conditional Use Permit at 1416 Wilshire Blvd.  While I wholeheartedly understand the importance of ensuring access to medical marijuana for those in genuine need, I am deeply concerned that eliminating these restrictions without first establishing a clear and comprehensive municipal code subsection for (Adult-use) recreational marijuana retailers would be premature and potentially harmful.  I commend the Council for its thoughtful approach to the selection of retailers and the establishment of local ordinances pertaining to Medicinal Cannabis Dispensaries in our city. In light of this, I respectfully urge the Santa Monica City Council to continue its diligent efforts and prioritize the development and implementation of a comprehensive municipal code specifically tailored to regulate (Adult-use) recreational marijuana retailers before any consideration is given to the removal of medical-only restrictions. This code should address essential issues such as proximity to schools, advertising regulations, and stringent measures to prevent underage access. The impacts of Medical-only Dispensaries vs. Adult-use Recreational Dispensaries on a community are not equal, so the code defining them should not be the same.  Let us ensure that the interests of our children and the safety of our community are at the forefront of any decisions made regarding marijuana retail in Santa Monica. I kindly request that you carefully consider the potential ramifications of this proposal on our children's well-being and education.  Thank you for your unwavering commitment to our community.  Sincerely,  Trinedy Krusell  Santa Monica Resident, Parent, Volunteer, Voter, Business Owner  ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 933 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Sabrina Sin <sabrina.sin@gmail.com> Sent:Tuesday, October 10, 2023 11:48 AM To:councilmtgitems Subject:City Clerk Re: Adult-Use Cannabis IZO EXTERNAL    Dear Santa Monica City Council,    I'm asking the City Council to oppose amending the Interim Zoning Ordinance, until it can establish a clear and  comprehensive municipal code subsection for (adult‐use) recreational marijuana retailers.  It is both premature and  potentially harmful to do so without adequate review.  The location (1416 Wilshire Blvd) of the dispensary had already  raised concerns with parents, residents, neighbors when issued as a medicinal retailer within 800 feet away from both a  preschool and middle school.    I would like to express my strong opposition to the proposed removal of medical‐only restrictions on marijuana retailers  at this time. If this proposal is approved too hastily, it will fail to adequately consider the potential repercussions on our  local community, particularly on Lincoln Middle School and Lincoln Child Development Center.    This code should address essential issues such as proximity to schools, advertising regulations, and stringent  measures to prevent underage access. The impacts of Medical‐only Dispensaries vs. Adult‐use Recreational  Dispensaries on a community are not equal, so the code defining them should not be the same.    Let us ensure that the interests of our children and the safety of our community are at the forefront of any decisions  made regarding marijuana retail in Santa Monica. I kindly request that you carefully consider the potential ramifications  of this proposal on our children's well‐being and education.    A Concerned Parent,  Sabrina Sin  Santa Monica Resident  ‐‐‐  ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 934 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal Subject: Re: Agenda Item #10 Adult-Use Cannabis IZO Dear Santa Monica City Council, I hope this message finds you well. I am writing to express my deep concerns about the proposed removal of medical-only restrictions on marijuana retailers, particularly with regard to the establishment at 14th & Wilshire, known as “Harvest." Dispensaries are intended to serve individuals with serious medical conditions, I am concerned about the agenda item proposing the removal of the medical use restriction for a local dispensary. I applaud the initial responsible approach of the City Council in ensuring that the proposed store at 14th & Wilshire, "Harvest," operated exclusively for medicinal purposes. It is essential to recognize that the existing legislation does not prohibit a city from adopting ordinances or policies that further restrict the location or establishment of medicinal cannabis cooperatives, collectives, dispensaries, operators, establishments, or providers. Therefore, I urge you NOT to remove the medicinal use restriction for this dispensary. Given the well-documented detrimental mental and physical health effects associated with cannabis and related products, the existence of such stores should be approached with caution. 

Additionally, I implore you to take proactive steps to strengthen the Santa Monica ordinances and policies governing Cannabis shops. We must prioritize the health and well-being of Santa Monicans, especially our children. To this end, I urge you to develop robust ordinances and policies aimed at preventing children from accessing marijuana and non-smoking marijuana products such as edibles, to restrict advertising and promotion targeting children and youth in any form, whether it be through smoking, edibles, liquids, or vaping/electronic delivery systems. Moreover, I recommend introducing restrictions on the marketing of cannabis flavors and flavored additives that could appeal to youth. These measures are crucial to discourage cannabis use among adolescents and protect their health. Looking forward, I propose that you consider a minimum proximity requirement of 1000 feet between cannabis storefronts and schools, in alignment with drug-free school zones. This step would further safeguard our youth and educational institutions from the potential influence of marijuana dispensaries, as proximity correlates to increased youth cannabis use. Thank you for your dedication and service to our city. Your efforts are greatly appreciated. I trust that you will carefully consider these concerns and ensure that we have the necessary policies in place to responsibly move forward. Let us work together to protect the physical and mental well- being of Santa Monicans for years to come. Sincerely, Danielle Litak ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 935 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal 1 Xavier Mota From:Erika Bell <erikabell@rocketmail.com> Sent:Tuesday, October 10, 2023 3:58 PM To:councilmtgitems; Gleam Davis; Phil Brock; Lana Negrete; Christine Parra; Jesse Zwick; Caroline Torosis; Oscar de la Torre Subject:City Clerk Re: Adult-Use Cannabis IZO EXTERNAL  Dear Santa Monica City Council, I am writing to you as a concerned parent, with two children currently attending schools in Santa Monica. I would like to express my strong opposition to the proposed removal of medical-only restrictions on marijuana retailers at this time. If this proposal is approved too hastily, it will fail to adequately consider the potential repercussions on our local community, particularly on Lincoln Middle School and Lincoln Child Development Center, which are situated less than 800 feet away from the proposed location of the previously granted Conditional Use Permit at 1416 Wilshire Blvd. While I wholeheartedly understand the importance of ensuring access to medical marijuana for those in genuine need, I am deeply concerned that eliminating these restrictions without first establishing a clear and comprehensive municipal code subsection for (Adult-use) recreational marijuana retailers would be premature and potentially harmful. I commend the Council for its thoughtful approach to the selection of retailers and the establishment of local ordinances pertaining to Medicinal Cannabis Dispensaries in our city. In light of this, I respectfully urge the Santa Monica City Council to continue its diligent efforts and prioritize the development and implementation of a comprehensive municipal code specifically tailored to regulate (Adult-use) recreational marijuana retailers before any consideration is given to the removal of medical-only restrictions. This code should address essential issues such as proximity to schools, advertising regulations, and stringent measures to prevent underage access. The impacts of Medical-only Dispensaries vs. Adult-use Recreational Dispensaries on a community are not equal, so the code defining them should not be the same. Let us ensure that the interests of our children and the safety of our community are at the forefront of any decisions made regarding marijuana retail in Santa Monica. I kindly request that you carefully consider the potential ramifications of this proposal on our children's well-being and education. Thank you for your unwavering commitment to our community. Take care, Erika Bell ITEM 10.C. October 10, 2023 ITEM 10.C. October 10, 2023 10.C.f Packet Pg. 936 Attachment: Written Comments [Revision 1] (5909 : Interim Zoning Ordinance to Allow Adult-Use Cannabis Sales at Existing Medicinal City Council Report City Council Meeting: October 10, 2023 Agenda Item: 10.D 1 of 6 To: Mayor and City Council From: Rick Valte, Public Works Director, Public Works, Water Resources Subject: Introduction and First Reading of Water and Wastewater Capacity Study Ordinances Recommended Action Staff recommends that the City Council: 1. Adopt a finding of Categorical Exemption pursuant to Section 15061 (b)(3) and Section 15308 of the California Environmental Quality Act (CEQA) Guidelines. 2. Introduce for first reading the attached ordinance to amend Santa Monica Municipal Code 7.12.180 to require water capacity studies for new developments. 3. Introduce for first reading the attached ordinance to amend Santa Monica Municipal Code 7.04 to require wastewater capacity studies for new developments. Summary The City of Santa Monica’s Water Resources Division within the Public Works Department operates and maintains an expansive domestic water and sanitary sewer network that consists of over 200 miles of water mains and over 150 miles of wastewater collection pipes that collectively serve over 93,000 residents and 2,700 businesses in the city. In its current configuration, the city’s water and wastewater infrastructure may not be able to accommodate future high-density developments that replace existing lower density land uses. To ensure reliable water and wastewater services are maintained, water and wastewater capacity studies have been required by the City for new developments to analyze the development’s impact and verify if those impacts can be accommodated by the City’s water and wastewater infrastructure. However, the City’s utility ordinances have not been updated since the 1990s and do 10.D Packet Pg. 937 2 of 6 not reflect the need for clarity as to the City’s utility review process for new development, so that (i) developers can take into account adequate water and sewer capacity to service their developments and impacts to all other properties that share local infrastructure, and (ii) developers can have an opportunity early in the planning and design process to understand the City’s level of service requirements and verify available capacity to serve the development. Early input is critical due to the anticipated increase in by-right Planning approvals for housing development, in accordance with state housing laws and the City’s 6th Cycle Housing Element and implementing ordinances. Staff therefore seeks to modify Santa Monica Municipal Code Chapter 7.12 and 7.04 to clarify requirements for conducting a water capacity study and wastewater capacity study, respectively, for new developments. Discussion The City’s Water Resources Division is a retail water agency that provides potable and recycled water throughout the city for single and multi-family residential, commercial, and industrial uses, as well as landscape irrigation and fire protection. The Water Resources Division is also responsible for all facilities that support the collection and conveyance of wastewater for safe collection and final treatment at the City of Los Angeles’s Hyperion Treatment Plant. The City’s water and wastewater infrastructure is largely built-out, therefore, the domestic water supply and wastewater collection infrastructure is already in place and generally fixed in nature. The City, to the extent practical, will provide water and wastewater service when: 1) sufficient water supply and distribution capacity and/or wastewater collection capacity is available to accommodate the new development’s water and wastewater demand and 2) the proposed development can be provided water and its wastewater can be safely collected in a manner that meets the City’s requirements. Per state law, water and sewer service is prioritized for new housing development over new commercial and industrial development. Water and wastewater capacity studies (Capacity Studies) are required for new developments to analyze the development’s impact on the City’s water and wastewater infrastructure and verify if the existing infrastructure can accommodate the proposed 10.D Packet Pg. 938 3 of 6 development. Development projects have the potential to overtax the City’s wastewater and water systems, which could lead to sanitary sewer overflows and loss of pressure, or even loss of supply, in the water distribution system. Capacity Studies are vital to safeguard public health and maintain reliable service. The location and/or size of new development determines if the new development is required to implement off-site improvements (e.g., increasing the size of the wastewater collection pipe) to accommodate the increased water and/or wastewater service from the new development. This determination is based upon engineering hydraulic models and do not involve subjective determination by the City (e.g., any contribution from new development that would cause a sewer line to exceed 85% capacity during wet weather flow or water pressure to be outside of the range of 40 to 100 psi). Because the capacity determination is based upon locality and/or size of new development, it is possible that even a small development could impact local infrastructure. The only way to confirm available water/wastewater capacity to serve the development is to conduct a Capacity Study. Currently, the requirement to conduct Capacity Studies and consequential off-site improvements is determined at the time of the Building Permit Plan Check when 100% plans of the proposed development are submitted for review. This may potentially delay the approval process as well as require additional design effort to incorporate off-site improvements. The proposed ordinance would support the new streamlined entitlement and Building Permit Plan Check process by 1) determining if Capacity Studies are required before the planning application is deemed complete by the City and 2) if deemed required, the Capacity Studies and design of consequent off-site improvements to be completed before building plans are submitted for Building Permit Plan Check. This process will provide early determination, at the planning stage, if Capacity Studies are required for the new development. The developer would have sufficient time to conduct the Capacity Studies, confirm capacity and off-site improvements needed, and incorporate off-site improvements in the development’s overall plans as it is being designed. 10.D Packet Pg. 939 4 of 6 Any local off-site improvements identified through the Capacity Studies are the responsibility of the developer and are not covered by capital facility fees. Capital facility fees (or capacity fees) are to ensure future customers, or existing customers requesting additional service, would enter as equal participants as existing customers. The capital facility fee is calculated based on existing assets and planned capital improvements projects to maintain current level of service since the city’s water/wastewater infrastructure is built-out. In other words, planned capital improvements (e.g., replacing a 70 year old 8-inch water main with a new 8-inch water main) are to maintain current level of service, or existing capacity, and not to increase service capacity that is triggered by new developments. In the past five years, there have only been two to three developments where off-site improvements have been required (e.g., 710 Broadway development). The City’s water neutrality fees are intended to ensure no net new water use by any new development at the time a building permit is issued, but do not limit actual water use and/or wastewater discharged after a new development has obtained a certificate of occupancy. Furthermore, any water neutrality in-lieu fees are used to install water efficiency fixtures throughout the City to offset the increase in water demand of the development and do not correlate to impacts of new development on localized infrastructure. Consequently, the City’s water neutrality ordinance, while serving to limit increased water demand caused by new development, cannot be relied upon when making a technical determination as to sufficient water or sewer capacity for new development. As a practical matter, a Capacity Study consists of data collected by monitoring water pressure and wastewater flows in the existing infrastructure in the vicinity of new proposed development as determined by Water Resources staff before new development is constructed to understand the baseline capacity of that infrastructure being used already. Guidelines for the Capacity Studies will be published by the Water Resources Division and posted on the City’s website. 10.D Packet Pg. 940 5 of 6 A proposed draft of SMMC 7.12.180 to require water capacity studies for new developments is included in Attachment A. A proposed draft of SMMC 7.04.880 to require wastewater capacity studies for new developments is included in Attachment B. Environmental Review The ordinances to require water and wastewater capacity studies for new developments are categorically exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3) and Section 15308 of the CEQA Guidelines. The ordinances are covered by the common sense exemption which states that CEQA does not apply, “where it can be seen with certainty that there is no possibility that the activity in question may have significant effect on the environment.” Section 15308 of the CEQA Guidelines exempts actions taken by regulatory agencies, as authorized by state or local ordinance, to assure the maintenance, restoration, enhancement, or protection of the environment where the regulatory process involves procedures for protection of the environment. The ordinance changes would establish requirements to conduct water and wastewater capacity studies to ensure that existing water and wastewater infrastructure would not be adversely impacted by new developments. Therefore, the ordinances are exempt pursuant to Section 15061(b)(3) and Section 15308 of the CEQA guidelines. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action. Staff will return to Council if specific budget actions are required in the future. 10.D Packet Pg. 941 6 of 6 Prepared By: Dinaz Kureishy, Civil Engineering Assistant Approved Forwarded to Council Attachments: A. Draft Ordinance - SMMC 7.12.180 Water Capacity Study B. Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study C. Written Comments 10.D Packet Pg. 942 1 of 6 City Council Meeting October 10, 2023 Santa Monica, California ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA AMENDING SECTION 7.12.180 OF THE SANTA MONICA MUNICIPAL CODE TO REQUIRE WATER CAPACITY STUDIES FOR NEW DEVELOPMENTS WHEREAS, the City’s Department of Public Works- Water Resources Division is a retail water agency that provides potable water for New Development, as well as landscape irrigation and fire protection; and WHEREAS, the City and its water infrastructure are largely built out, therefore, the domestic water supply infrastructure is already in place and generally fixed in nature; and WHEREAS, the City, to the extent practical, provides water service when sufficient water supply and distribution capacity is available to accommodate demand approved within the service area; and WHEREAS, the City’s Water Resources seeks to amend this section of code to require all New Development in the City to conduct a Water Capacity Study to confirm that the available water infrastructure (e.g., the size of the water service laterals directly serving the property or adjacent water mains) has sufficient capacity to deliver water to the New Development or does not adversely impact existing users; identify what additional infrastructure is needed to provide adequate service for the New Development; 10.D.a Packet Pg. 943 Attachment: Draft Ordinance - SMMC 7.12.180 Water Capacity Study [Revision 6] (5832 : Water and Wastewater Capacity Study Ordinance (20 2 of 6 and ensure that the applicant for the New Development pays for the study as well as the additional infrastructure, if needed. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 7.12.180 is hereby amended to read as follows: 7.12.180 Reserved Water Capacity Study Required for New Development. (a) Applicability. Except as provided in subparagraph (g), below, an applicant for New Development in the City shall conduct a Water Capacity Study to determine whether and to what extent additional local off-site water infrastructure improvements are necessary to serve the development. (b) Definitions. i. “New Development”. For the purposes of implementing this Section, New Development means any new construction with water fixtures; any increase in gross floor area of an existing development with new water fixtures; and any subdivision of land, including lot splits. Without limiting the generality of the foregoing definition, new development includes the addition of an accessory dwelling unit, as defined in Section 9.31.025, but does not include the addition of a junior accessory dwelling unit, as defined in Section 9.31.025; 10.D.a Packet Pg. 944 Attachment: Draft Ordinance - SMMC 7.12.180 Water Capacity Study [Revision 6] (5832 : Water and Wastewater Capacity Study Ordinance (20 3 of 6 ii. “Adverse Impact” means the inability to provide adequate potable water service due to the size of the existing infrastructure compared with the demand for potable water service required to serve existing and/or New Development. iii. “Water Capacity Study” means a hydraulic analysis of the City’s water distribution system to determine if the existing infrastructure could maintain reliable service to the New Development or if off-site improvements are required to serve the New Development. (c) Timing for Submittal of Study. i. The need to conduct a Water Capacity Study for the New Development shall be confirmed before the planning application, including but not limited to Administrative Approval Application or application for Development Review Permit, is deemed complete by the City. The Water Capacity Study, if required, shall be completed based upon the guidelines published by the City’s Water Resources Manager and posted on the Water Resources Division website. ii. If a Water Capacity Study is required for the New Development, the capacity study, findings of the capacity study, and the plans for any local off-site improvements required to serve the New Development shall be 10.D.a Packet Pg. 945 Attachment: Draft Ordinance - SMMC 7.12.180 Water Capacity Study [Revision 6] (5832 : Water and Wastewater Capacity Study Ordinance (20 4 of 6 completed before building plans are submitted for Building Permit Plan Check. (d) Requirements for Off-Site Improvements. If the City’s Water Resources Manager or designee determines, based upon the Water Capacity Study results, that additional off-site infrastructure is required to satisfy the additional demand created by the New Development, then the applicant for the New Development shall be required to construct off-site infrastructure as necessary to accommodate the New Development. Required off-site improvements shall be confirmed at the time of Building Permit Plan Check. (e) The applicant for the New Development shall be responsible for paying all administrative fees (e.g., Water Study Review Fee) incurred by the City to review the Water Capacity Study. (f) The Water Resources Manager may refuse water service in areas where the New Development will cause or contribute to creation of an Adverse Impact on the City’s water distribution infrastructure. (g) Exemptions. i. The City’s Director of Public Works may exempt an applicant or New Development from the requirements of this Section, upon showing by the 10.D.a Packet Pg. 946 Attachment: Draft Ordinance - SMMC 7.12.180 Water Capacity Study [Revision 6] (5832 : Water and Wastewater Capacity Study Ordinance (20 5 of 6 applicant that the requirements of this Section would cause undue hardship. ii. For purposes herein, an “undue hardship” shall be found where imposition of the water capacity study and local off-site improvement requirements would deprive the applicant or New Development of all economically beneficial use of that site or otherwise be prohibited by applicable State or Federal law. iii. An undue hardship application shall include all information necessary for the Director to make a finding of undue hardship, including, but not limited to, documentation showing the factual support for the claimed undue hardship. iv. The Director may approve the undue hardship exemption application, in whole or in part, with or without conditions. v. Any exemption granted by the Director is effective immediately. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed 10.D.a Packet Pg. 947 Attachment: Draft Ordinance - SMMC 7.12.180 Water Capacity Study [Revision 6] (5832 : Water and Wastewater Capacity Study Ordinance (20 6 of 6 this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN City Attorney 10.D.a Packet Pg. 948 Attachment: Draft Ordinance - SMMC 7.12.180 Water Capacity Study [Revision 6] (5832 : Water and Wastewater Capacity Study Ordinance (20 1 of 6 City Council Meeting October 10, 2023 Santa Monica, California ORDINANCE NUMBER _________ (CCS) (City Council Series) AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SANTA MONICA ADDING SECTION 7.04.880 TO THE SANTA MONICA MUNICIPAL CODE TO REQUIRE WASTEWATER CAPACITY STUDIES FOR NEW DEVELOPMENTS WHEREAS, the City’s Department of Public Works- Water Resources Division is responsible for all facilities that support the collection and conveyance of wastewater for safe collection and treatment; and WHEREAS, the City and its wastewater infrastructure are largely built out, therefore, the wastewater collection infrastructure is already in place and generally fixed in nature; and WHEREAS, the City, to the extent practical, will provide wastewater service when: 1) sufficient collection capacity is available to accommodate the demand approved by the City’s Water Resources Division within the service area and 2) the proposed development can be provided with wastewater collection services in a fashion that meets the City’s criteria as well as the City of Los Angeles’ criteria; and WHEREAS, the City currently collects and convey its wastewater to the City of Los Angeles’ Hyperion Treatment Plant as part of City of Los Angeles’ Amalgamated System; and 10.D.b Packet Pg. 949 Attachment: Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study [Revision 5] (5832 : Water and Wastewater Capacity Study Ordinance 2 of 6 WHEREAS, the City’s Water Resources Division seeks to add a new section of code to require all new multi-family, mixed-use, institutional, and commercial development in the City to conduct a wastewater capacity study to confirm available capacity and identify local off-site water infrastructure improvements that the applicant/developer is responsible for to serve the development. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SANTA MONICA DOES HEREBY ORDAIN AS FOLLOWS: SECTION 1. Santa Monica Municipal Code Section 7.04.880 is hereby added to read as follows: 7.04.880 Wastewater Capacity Study Required for New Development. (a) Applicability. Except as provided in subparagraph (g), below, an applicant for New Development in the City shall conduct a Wastewater Capacity Study to determine whether and to what extent additional local off-site wastewater infrastructure improvements are necessary to serve the development. (b) Definitions. i. “New Development”. For the purposes of implementing this Section, New Development means any new construction with water fixtures; any increase in gross floor area of an existing development with new water fixtures; and any subdivision of land, including lot splits. Without limiting the generality of the foregoing definition, new development includes the addition of an accessory dwelling unit, as defined in Section 9.31.025, but 10.D.b Packet Pg. 950 Attachment: Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study [Revision 5] (5832 : Water and Wastewater Capacity Study Ordinance 3 of 6 does not include the addition of a junior accessory dwelling unit, as defined in Section 9.31.025; ii. “Adverse Impact” means the inability to provide adequate wastewater collection service due to the size of the existing infrastructure compared with the demand for wastewater service required to serve existing and/or New Development. iii. “Wastewater Capacity Study” means a hydraulic analysis of the City’s wastewater collection system to determine if the existing infrastructure could maintain reliable service to the New Development or if off-site improvements are required to serve the New Development. (c) Timing for Submittal of Study. i. The need to conduct a Wastewater Capacity Study for the New Development shall be confirmed before the planning application, including but not limited to Administrative Approval Application or application for Development Review Permit, is deemed complete by the City. The Wastewater Capacity Study, if required, shall be completed based upon the guidelines published by the City’s Water Resources Manager and posted on the Water Resources Division website. 10.D.b Packet Pg. 951 Attachment: Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study [Revision 5] (5832 : Water and Wastewater Capacity Study Ordinance 4 of 6 ii. If a Wastewater Capacity Study is required for the New Development, the capacity study, findings of the capacity study, and the plans for any local off-site improvements required to serve the New Development shall be completed before building plans are submitted for Building Permit Plan Check. (d) Requirements for Off-Site Improvements. If the City’s Water Resources Manager or designee determines, based upon the Wastewater Capacity Study results, that additional off-site infrastructure is required to satisfy the additional demand created by the New Development, then the applicant for the New Development shall be required to construct off-site infrastructure as necessary to accommodate the New Development. Required off-site improvements shall be confirmed at the time of Building Permit Plan Check. (e) The applicant for the New Development shall be responsible for paying all administrative fees (e.g., Sewer Study Review Fee) incurred by the City to review the Wastewater Capacity Study. (f) The Water Resources Manager may refuse water service in areas where the New Development will cause or contribute to creation of an Adverse Impact on the City’s wastewater collection infrastructure. 10.D.b Packet Pg. 952 Attachment: Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study [Revision 5] (5832 : Water and Wastewater Capacity Study Ordinance 5 of 6 (g) Exemptions. i. The City’s Director of Public Works may exempt an applicant or New Development from the requirements of this Section, upon showing by the applicant that the requirements of this Section would cause undue hardship. ii. For purposes herein, an “undue hardship” shall be found where imposition of the water capacity study and local off-site improvement requirements would deprive the applicant or New Development of all economically beneficial use of that site or otherwise be prohibited by applicable State or Federal law. iii. An undue hardship application shall include all information necessary for the Director to make a finding of undue hardship, including, but not limited to, documentation showing the factual support for the claimed undue hardship. iv. The Director may approve the undue hardship exemption application, in whole or in part, with or without conditions. v. Any exemption granted by the Director is effective immediately. SECTION 2. Any provision of the Santa Monica Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to that extent necessary to effect the provisions of this Ordinance. 10.D.b Packet Pg. 953 Attachment: Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study [Revision 5] (5832 : Water and Wastewater Capacity Study Ordinance 6 of 6 SECTION 3. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the ordinance would be subsequently declared invalid or unconstitutional. SECTION 4. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within 15 days after its adoption. This Ordinance shall become effective 30 days from its adoption. APPROVED AS TO FORM: _________________________ DOUGLAS SLOAN City Attorney 10.D.b Packet Pg. 954 Attachment: Draft Ordinance - SMMC 7.04.880 Wastewater Capacity Study [Revision 5] (5832 : Water and Wastewater Capacity Study Ordinance 1 Xavier Mota From:Marc Verville <ml.verville@verizon.net> Sent:Saturday, October 7, 2023 6:03 PM To:Gleam Davis; Caroline Torosis; Jesse Zwick; Phil Brock; Oscar de la Torre; Christine Parra; Lana Negrete Cc:councilmtgitems Subject:SMCC 10-10-2023 Item 10.D. - Introduction and First Reading of Water and Wastewater Capacity Study Ordinances EXTERNAL  Dear City Council,  The staff report for this item does not menƟon any process to incorporate pending state water  usage cutbacks that will be especially substanƟal in Southern California.    The AssociaƟon of California Water Agencies’ (ACWA) “Making ConservaƟon a California Way  of Life” (MCACWOL) program implemented under the 2018 statutes AB 1668 and SB 606,  would require urban retail water suppliers to meet an agency‐specific urban water use  objecƟve starƟng in 2025.  In total, about 80% of water agencies in California will be forced to  cut back within the next 12 years, according to state esƟmates.  It is esƟmated that larger  proporƟonal cuts will be required in Southern California, where a drier climate generally  yield greater water use.  In some cases in the state, reducƟons of more than 50% will be  mandated by 2035.  This means that the City’s Water Neutrality ordinance will require ongoing adjustment to  account for the state‐mandated cuts.  Cuts to Citywide usage to comply with the MCACWOL  program will severely restrict, if not eliminate, the amount of water available for incremental  new developments.  And these cuts will be phased in over Ɵme, compounding the problem of  meeƟng the new lower standards as thousands of new housing units hit the city every  year.  None of these issues are addressed in the staff report.  Moreover, the DraŌ Ordinance ‐ SMMC 7.04.880 Wastewater Capacity Study notes in §1.g.ii  ExempƟons that if the requirements would stop development, then it can be approved  regardless under “hardship”.  This effecƟvely negates any developer restricƟons.  Since the city has not objected to the nominal RHNA allocaƟon of 8,895 units, and since an  overwhelming number of projects are being approved with an effecƟve 10% inclusionary rate,  the actual number of units being contemplated by the city is 50,000 or more.  Water neutrality  will be impossible by definiƟon.  ExisƟng residents will be required to substanƟally subsidize  development’s impact on water demands by even steeper cuts than the state mandates.    ITEM 10.D. October 10, 2023 ITEM 10.D. October 10, 2023 10.D.c Packet Pg. 955 Attachment: Written Comments (5832 : Water and Wastewater Capacity Study Ordinance (20 mins)) 2   The absence of mechanisms in this item to address both the coming mandated state  reducƟons and the effecƟve number of units the city is effecƟvely approving makes no sense.      This item must be reworked to provide clarity on how these significant risk issues will be  addressed.     Respecƞully,    Marc Verville  Sunset Park    ITEM 10.D. October 10, 2023 ITEM 10.D. October 10, 2023 10.D.c Packet Pg. 956 Attachment: Written Comments (5832 : Water and Wastewater Capacity Study Ordinance (20 mins))