REPORT TO COUNCIL
SUBJECT
Title
Adoption of Ordinance No. 2018 Amending Zoning Code Chapter 18.102 - Regulation of Marijuana (Cannabis) [Council Pillar: Enhance Community Engagement and Transparency]
Report
BACKGROUND
At the April 28, 2020 Council meeting, proposed Ordinance No. 2018 was introduced and passed for the purpose of publication. Pursuant to City Charter Sections 808 and 812, a summary of proposed Ordinance No. 2018 was published on May 6, 2020, and copies were posted in three public places.
DISCUSSION
The proposed ordinance would amend two sections of Chapter 18.102 (“Regulation of Marijuana”) of Title 18 (“Zoning”) of “The Code of the City of Santa Clara, California”. The proposed amendment to Section 18.102.010 (“Commercial Marijuana Activity Prohibited”) would prohibit all commercial cannabis activity in Santa Clara. The proposed amendment to Section 18.102.030 (“Transport and Delivery of Marijuana”) would also prohibit marijuana delivery services originating in Santa Clara. The amendment would also modify references in these sections and the chapter to use the term “Cannabis” in place of “Marijuana”, consistent with current practices, and add a definition of “Cannabis” to Chapter 18.06 (“Definitions”).
ENVIRONMENTAL REVIEW
The action being considered does not constitute a “project” within the meaning of the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15378(b)(5) in that it is a governmental organizational or administrative activity that will not result in direct or indirect changes in the environment.
FISCAL IMPACT
There is a potential loss of tax revenue by creating a ban on commercial cannabis activity in the city. As a general estimate, in the past, municipalities expected to generate $10-$20 per capita on an annual basis. Applying this factor to Santa Clara, a local cannabis tax measure was projected to generate $1.2 to $2.4 million annually. However, it should be noted that the amount of revenue generated for local jurisdictions with relatively new commercial cannabis programs has been less than their original projections.
As part of the updated Ten-Year General Fund Forecast presented to the City Council in January 2020, the ongoing revenue estimate of $1.2 million from Cannabis Tax was removed from the Forecast.
COORDINATION
This report has been coordinated with the Community Development Department and the Police Department.
PUBLIC CONTACT
A summary of proposed Ordinance No. 2018 was published to the Santa Clara Weekly on May 6, 2020, and copies were posted in three public places and made available for public inspection at the City Clerk’s Office.
Public contact was made by posting the Council agenda on the City’s official-notice bulletin board outside City Hall Council Chambers. A complete agenda packet is available on the City’s website and in the City Clerk’s Office at least 72 hours prior to a Regular Meeting and 24 hours prior to a Special Meeting. A hard copy of any agenda report may be requested by contacting the City Clerk’s Office at (408) 615-2220, email clerk@santaclaraca.gov <mailto:clerk@santaclaraca.gov>.
RECOMMENDATION
Recommendation
Adopt Ordinance No. 2018 amending Chapters 18.06 (“Definitions”) and 18.102 (“Regulation of Marijuana”) of Title 18 (“Zoning”) of “The Code of the City of Santa Clara, California” to prohibit all commercial cannabis activity.
Staff
Reviewed by: Andrew Crabtree, Director of Community Development
Approved by: Deanna J. Santana, City Manager
ATTACHMENTS
1. Ordinance