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HomeMy WebLinkAbout19 - CC-14 - Second Reading and Adoption of an Ord - 6/15/20211 CITY COUNCIL AGENDA REPORT MEETING DATE: JUNE 15, 2021 ITEM NUMBER: CC-14 SUBJECT: SECOND READING AND ADOPTION OF AN ORDINANCE TO ADOPT CODE AMENDMENT CO-2021-01 TO AMEND TITLE 13 (PLANNING, ZONING, AND DEVELOPMENT) AND AN ORDINANCE TO AMEND TITLE 9 (LICENSES AND BUSINESS REGULATIONS) OF THE COSTA MESA MUNICIPAL CODE REGARDING THE TAXATION, REGULATION, OPERATING REQUIREMENTS AND STANDARDS FOR CANNABIS USES INCLUDING RETAIL CANNABIS STOREFRONT AND NON- STOREFRONT USES TO IMPLEMENT THE CITY OF COSTA MESA RETAIL CANNABIS TAX AND REGULATION MEASURE (MEASURE Q) DATE: JUNE 3, 2021 FROM: DEVELOPMENT SERVICES DEPARTMENT/PLANNING DIVISION PRESENTATION BY: NANCY HUYNH, SENIOR PLANNER FOR FURTHER INFORMATION CONTACT: NANCY HUYNH (714) 754-5609 nancy.huynh@costamesaca.gov RECOMMENDATION: Staff recommends that the City Council give second reading to and adopt:  Ordinance No. 2021-08 to adopt Zoning Code Amendment CO-2021-01 amending Title 13, Chapter IX, Article 21 and Chapter IV, Table 13-30 of the Costa Mesa Municipal Code; and  Ordinance No. 2021-09 to amend Title 9, Chapter I, Article 5, Chapter II, Article 1, and Chapter VI of the Costa Mesa Municipal Code regarding the taxation and regulation for retail cannabis uses including storefronts and non-storefronts. ANALYSIS: At its regular meeting of April 20, 2021, the City Council gave first reading to and introduced Ordinance No. 2021-08 and Ordinance No. 2021-09 by a 5-2 vote (Councilmembers Harper and Reynolds voting no). The agenda report and video for the April 20, 2021 City Council meeting can be found at the following links: 2 April 20 Agenda Report: http://ftp.costamesaca.gov/costamesaca/council/agenda/2021/2021-04-20/PH-1.pdf April 20 Meeting Video: https://costamesa.granicus.com/player/clip/3705?view_id=10&redirect=true At the proposed second reading of the Ordinances on May 4, 2021, the City Council moved to approve the Ordinances on a 5-2 vote with one revision – to include private playgrounds as a sensitive use. Due to this revision, the City Council’s action was considered another first reading. The agenda report and video for the May 4, 2021 City Council meeting can be found at the following links: May 4 Agenda Report: http://ftp.costamesaca.gov/costamesaca/council/agenda/2021/2021-05-04/CC-5.pdf May 4 Meeting Video: https://costamesa.granicus.com/player/clip/3712?view_id=10&redirect=true At its regular meeting of June 1, 2021, City Council reviewed the proposed Ordinances with the revised definition of playground in Section 9-485 which addressed private playgrounds and clarified the ineligibility provision in Section 9-490. City Council voted to give first reading to and introduce the Ordinances by a 6-1 vote (Councilmember Harper voting no). The agenda report and video for the June 1, 2021 City Council meeting can be found at the following links: June 1 Agenda Report: http://ftp.costamesaca.gov/costamesaca/council/agenda/2021/2021-06-01/PH-2.pdf June 1 Meeting Video: https://costamesa.granicus.com/player/clip/3726?view_id=10&redirect=true The Ordinances are being presented for second reading and final adoption. If approved, the Ordinances would become effective 30 days after the second reading. The proposed Ordinance No. 2021-08 and Ordinance 2021-09 are included as Attachments 1 and 2 to this agenda report. PUBLIC NOTICE: Pursuant to Government Code 36933, a summary of the proposed Ordinances was published once in the newspaper no less than 5 days prior to the June 15, 2021 second 3 reading. A summary of adopted ordinances will be published within 15 days after the adoption. As of this report, no additional written public comments have been received. Any additional written comments received will be forwarded under separate cover. ALTERNATIVES: The City Council may give second reading and adopt the Ordinances as proposed, modify the Ordinances, or not adopt the Ordinances. If the City Council chooses to make substantive modifications to one or both of the Ordinances after introduction, the modified Ordinance(s) would need to be brought back at a future meeting for second reading and adoption. FISCAL REVIEW: Fiscal impacts were discussed in detail in the April 20, 2021 City Council agenda report. LEGAL REVIEW: The subject Code Amendment has been prepared by the City Attorney’s Office. CITY COUNCIL GOALS & PRIORITIES: Achieve long-term fiscal sustainability. CONCLUSION: Staff recommends that the City Council give second reading to and adopt Ordinance No. 2021-08 (Code Amendment CO-2021-01) and Ordinance No. 2021-09. The adoption of the proposed Ordinances would establish a process for the City to regulate, review, and tax cannabis retail businesses pursuant to Measure Q. If approved, the Ordinances would become effective 30 days after the second reading by City Council. ________________________________ _________________________________ NANCY HUYNH JENNIFER LE Senior Planner Director of Economic and Development Services ________________________________ _________________________________ CAROL MOLINA KIMBERLY HALL BARLOW Finance Director City Attorney 4 Attachments: 1. Ordinance No. 2021-08 (Title 13) 2. Ordinance No. 2021-09 (Title 9)