The purpose of the Study Session is to provide the City Council and the Planning Commission:

• A broad overview of cannabis ordinances and regulations proposed for Union City;

• Proposed zoning ordinance for commercial cannabis uses and personal cultivation;  

• Types of permits that the City Council can issue for commercial cannabis operations; and

• Summary of resident attitudes toward cannabis. 

The City Council authorized the City Manager to enter into a contract with HdL Companies to educate the public, staff, and City Council on regulatory options for cannabis operations in Union City.  The City Attorney is drafting the proposed Regulatory and Zoning Cannabis Ordinances that will be presented to the Planning Commission and City Council September and October for proposed adoption. 

Staff presented a broad overview on cannabis regulatory policy to the City Council during a study session in August.  Staff conducted extensive outreach to inform the community of the study session and offered the public an opportunity to express its opinion through a web page question and answer format.  Community members who attended the City Council Study Session had the opportunity to express their viewpoint through a written survey.  Stakeholder Community Leaders, which consist of City Commissioners, Faith-based leaders, School District officials and Neighborhood Watch Captains were sent their own survey.  Staff published two Cannabis Information weekly briefings for the City Council that were posted on the City Cannabis web page that present the proposed cannabis regulatory policies in easy to understand segments using a question and answer format.   

Godbe Research conducted a scientific poll of 529 likely Union City voters in November 2020.  The survey examined voter attitudes toward the different types of cannabis business; regulations to protect public health, public safety, and the environment; and taxing cannabis operations.

California voters and the California Legislature approved key regulatory measures pertaining to both medicinal cannabis and adult use (recreation) of cannabis:

• Medicinal Cannabis Regulation and Safety Act, 2015 (“MCRSA”).  MCRSA established a comprehensive regulatory framework for the production, transportation, and sale of medicinal marijuana. The City currently prohibits medicinal cannabis dispensaries. 

   

• Voter approved Proposition 64 Adult Use of Marijuana Act, 2016 (“AUMA”).  AMUA allows for the adult use of cannabis products.  Proposition 64 passed by 55 percent of the California voters and 55 percent of the Union City voters.

   

• Trailer Bill SB 94: Medicinal and Adult Use Cannabis Regulation and Safety Act, 2017 AMUA established a broad, unified regulatory procedure for all aspects of medicinal, adult use, cultivation, manufacturing, distribution, dispensing, and sale of cannabis products.  The state will start to process permits for the various types of cannabis production on January 2, 2018.  Cities and counties retain the authority to regulate cannabis use in their community. 

Staff recommends that the City Council adopt strong regulations governing the types of cannabis businesses that can operate in Union City, the location of the businesses, the number of businesses, and the process for qualifying to operate a business.  City staff and the Police Department will have more tools and the financial resources to monitor and audit cannabis businesses through regulation, and to prosecute and shut down illegal cannabis sales pursuant to a regulatory ordinance.

60.8 percent of likely voters support environmental regulations on cannabis operations to ensure no discharge of pesticides or other hazardous materials during the cultivation and manufacturing of cannabis products.  58.4 percent of likely voters support the Police Department monitoring large commercial sales to ensure the product is not sold illegally by unlicensed dealers.  See Attachment 7 for the complete results of the scientific survey conducted by Godbe Research.  Bryan Godbe will present summary results of the poll to the City Council and Planning Commission during the Study Session.  See hyperlink unioncity.org\cannabis for a detailed report with cross tabs.

People attending the August 8 City Council Study Session supported adult use-sales by a 70 percent margin.  See Attachment 9.   

Stakeholder Community Leaders who include Commissioners, School District Officials, Faith based leaders, and Neighborhood Watch Captains are by far the most concerned about cannabis activity in Union City.  Of the 16 Stakeholder Community Leaders who responded to the survey, 62 percent had concerns about cannabis businesses.  See Attachment 10. 

See Appendix 8 for to view the comments submitted by 30 people who submitted comments on the City cannabis web page.

Staff recommends that the City Council set the broad regulatory framework through the adoption of a Regulatory Cannabis Ordinance.  The Cannabis Ordinance would allow for the cultivation, manufacturing, testing, medicinal retail sales, and adult use retail sales.  The Ordinance would allow the City Council to establish by Resolution the type, number, and process for soliciting and awarding cannabis licenses for the different types of cannabis businesses.  Adult Use would not be allowed unless the City Council allowed it by Resolution.  See Attachments 1 and 2, previously sent to the City Council for a more detailed summary on the types of cannabis business licenses and process for screening and awarding permits. Appendix 3, Draft Cannabis Ordinance, Chapter 5 contains the full text of a draft proposed ordinance governing cannabis licensing, operations, and the process for awarding business permits. Appendix 6 contains the Application Procedure to Operate Commercial Cannabis Businesses in Union City, the process for reviewing and scoring applications, and the background check application.

The Planning Commission would hold a public hearing to consider recommending to the City Council and the City Council would consider adopting the Zoning Ordinance Text Amendment for Personal Cultivation of Cannabis.  The proposed zoning text amendment would allow up to six plants per household for personal use as allowed by state law.  Cultivation would be limited to indoor use or an accessory structure. Outdoor use would be limited to a screened back yard or side yard.  A property owner would have the authority to prohibit tenants from personal cultivation on a rental property.  See Attachment 5 for the complete text of the Draft Zoning Text Amendment for Personal Cultivation.

The Planning Commission would hold a public hearing to consider recommending to the City Council, and the City Council would consider adopting the Zoning Ordinance Text Amendment for Commercial Cannabis.  The cultivation, manufacturing, and testing of cannabis products would be limited to the ML Zoning District.  The ML Zoning District includes the Horner Veasy Area, the Central Bay, Alvarado Business Park, and the Lincoln Business Park.  Medicinal sales, adult use sales, and testing would be limited to the ML Zoning District and the MS Zoning District.  The MS Zoning District includes the business parks along Alvarado-Niles Road, Union City Boulevard, and Whipple Road. 

Permit fees for cannabis businesses would be levied to enable the City to recover all regulatory and administrative costs by City staff.

Members of the City Council and Planning Commission are encouraged to ask questions of staff and to express any concerns they may have.

1.   The Planning Commission will consider two Zoning Text Amendments that identify where the different types of cannabis businesses may be located and where cannabis may be grown for personal use.  The Planning Commission will conduct a Public Hearing on the Zoning Text Amendments September 21, 2017.

2.  The City Council will consider conducting a First Reading of the Cannabis Regulatory Ordinance and the two Zoning Text Amendments on September 26, 2017 and consider the Second Reading and Public Hearing will be held on October 10, 2017.  The Ordinances establish where uses may be located; the regulatory structure that identifies all the safety, environmental, and security needed to operate a business; and the permit policy, the process for applying for and awarding operating permits to the different types of cannabis businesses.