City of Sacramento
Cannabis Stakeholder Meeting
Meeting Summary Notes
July 7, 2016
10:00 – 12:00 p.m.
Pannell Meadowview Community Center – 2450 Meadowview Road, Multi-purpose Room #103
I. Updates
 Non-Medical Tax Measure
o In November of 2016 the City is considering placing an up to 10% Business Tax
on the ballot for non-medical marijuana which would apply to retail sales only.
 Registration Forms
o The City received a total of 178 cultivation registration forms, however many of
them did supply adequate evidence of cultivating as of February 2, 2016.
o City staff has decided that at this time the registration forms will be for internal
information and reference.
o Submission of a registration form does not guarantee one will receive a
cultivation permit in the future
 Ordinance Updates and Staff Recommendations
o Title 17 Ordinance (Planning and Development Code)
 Any changes to the Planning and Development Code require review by
the Planning and Design Commission. The public hearing is scheduled
for July 21, 2016 at 6 pm in Historic City Hall, 2nd Floor.
 City Staff Recommendations (NOTE these are only the City staff
recommendations that will be presented to Planning and Design
Commission and City Council. These have NOT yet been
approved or adopted):
 FOR ALL ZONES (A, C-2, C-4, M-1, M1S, M-2 and M-2S)
o Conditional Use Permits will be required and will be
approved at the Planning and Design Commission level
o Cultivation must be within a fully enclosed building and
must not be visible from the public right-of-way
o Cultivation must comply with all applicable state and
local laws.
o Only one sign is allowed. The sign can be attached or
detached. The sign cannot be illuminated and cannot
exceed six square feet in area.
o The cultivation site may not be located within a 600 foot
radius of a school.
 FOR C-2 ZONE ONLY
o Cultivation operation cannot exceed 6,400 square feet in
area
o The cultivation site may not be located within a 300 foot
radius of a residential zone.
o The cultivation site may not be located within a 600 foot
radius of a school or a park.
o The cultivation site may not be located within a 1,000
foot radius of another premise with a marijuana
cultivation permit.
o Title 5 Ordinance (Operating Permit) Update
 City staff is still working on the details of the operating permit regulations
and application process and plan to propose recommendations to the
Law and Legislation Committee during the August 9th meeting.
 The concept of a Request For Proposal (RFP) process is being
considered for selecting cultivators.
o Manufacture and Delivery
 City staff is still working on regulations for manufacture and delivery with
details to come as soon as more information becomes available. Staff is
open to hearing input and recommendations.
II. Questions, Comments and Recommendations
 RECOMMENDATIONS and COMMENTS from audience with staff responses (NOTE: all
responses from staff are based on research and recommendations to City Council.
Answers are subject to change depending upon City Council action)
o Will Conditional Use Permits be needed for all zones?
 Yes a CUP will be needed for ALL cultivation sites in ALL zones. City
staff is recommending they be heard at the Planning and Design
Commission level.
o Will manufacture be limited to non-volatile?
 Yes for now. City Council has asked to limit manufacture to non-volatile.
o What will the fee structure for application process be?
 City Staff is still working out the details of the application process and
fee structure for the operation permit. Staff will recommend that the
Conditional Use Permit be approved at the Planning and Design
Commission level which carries a fee of $22,000.00.
o Will you be accepting applications for other business during the time of the
application process for cultivation?
 We will accept applications for cultivation once we have a Title 5
operating permit regulations and an application process in place. We
will not necessarily have a process in place for other marijuana business
at the same time as City staff is still working on the details.
o If the CUP stays with the land, what happens if the owner moves?
 A Conditional Use Permit is a land use permit and stays with the land. A
person must either be the property owner or have the property owner’s
permission to apply for a CUP. If the permit is approved, the use must
be established at that site within three years, unless otherwise stated by
the commission. If use of the site is discontinued, the same use is
permitted to operate that the site but must be established within two
years, unless otherwise stated by the commission.
o Do you have to have a CUP before you get an operating permit?
 No you do not necessarily have to have a CUP before an operating
permit. You can apply for one before the other, or simultaneously.
These are business decisions that will be left up to the applicant.
o Recommendation to take into consideration the cost of the delivery service vs.
cultivation. Delivery services will likely not gross as high as cultivation and
should not have to pay the same permit fee of $22,000.
 Delivery will not need a CUP unless brick and mortar. We do not yet
know the final application fees for the operational permit for delivery
and will depend on the amount of City staff time determined to process
each permit.
o What is the distinction between a nursery and a wholesale cultivation site when
it comes to the land use?
 According to State regulations, a nursery is a type 4 license. If a person
wishes to operate a nursery with marijuana, and apply for a Conditional
Use Permit, they will have to abide by the same zoning and distance
requirements as any other cultivation business.
o For delivery there is talk of have to be affiliated and working for a dispensary, will
this be for sure? Will you be able to only deliver in a specific area?
 The City is open to looking into other models with regard to independent
delivery services and companies not associated with a dispensary, until
such time that we are ready to bring to City Council for approval.
MMRSA however currently restricts delivery to being connected with a
dispensary. If you have further recommendations, please e-mail them to
rkawasaki@cityofsacramento.org and they will be reviewed. At this time,
we have not decided any area restrictions with regard to delivery.
o How can you get a presentation to bring to City Council on delivery and
recommend stand‐alone delivery service?
 You can schedule a meeting with Joy, Brad and Randi in order to discuss
any delivery service models. You can do this by e‐mailing Ranelle
Kawasaki at rkawasaki@cityofsacramento.org.
o Will you be allowed to have multiple cultivation sites on one cultivation premise?
 Yes, as long as the canopy of the individual cultivation site is less than
22,000 square feet. For example, you can have a building (a premise)
that is 40,000 square feet, and have two cultivation sties, each 20,000
square feet of canopy or four cultivation sites on the premise, each
10,000. Other restrictions will mostly likely be added.
o What is the definition of parks?
 There is only recommendation to have a distance requirement for parks
in a C-2 zone. Parks will be defined as per Sacramento City Code
section 17.108.170, which states that a park means “all publicly owned
and operated parks that are used, operated or maintained for recreations
purpose”.
o If cultivation will be considered wholesale, what is considered wholesale and
what is considered retail?
 Wholesale entails those that there are no members of the general
public going to cultivation sites. Only dispensaries will be permitted to
sell to the public.
o What is the estimated cost of the operating permit?
 City staff does not yet have an estimate of the operating permit?
Operating permits for dispensaries is $12,600 annually however it will
depend on the amount of staff time it takes to process cultivation
operating permits.
o Will there be any advantage or priority given to those that handed in a
registration form? With those who handed in a registration form be given any
leeway with regard to sensitive uses or will City Council be able to consider the
restrictions that were not in place before they registered?
 There will be no advantages given to those who previously registered a
cultivation site and everyone will have the same opportunity and will
have to abide by the same land use and distance requirements. Having
been a registered cultivation site will not give you any priority.
o Will there be any restrictions to the type of growing medium used for
cultivation.
 No. City staff is open to seeing what is proposed in the RFP process with
regard to how cultivation sites are run. Types of soil used will likely be
regulated at some point by the Department of Food and Agriculture.
o As wholesale grower, must you only sell or do business in the City or can you
expand?
 We do not yet know if there will be any restriction on where you can
sell or distribute.
o If you own an industrial building and you get a CUP, you can lease you building
out to those who have an operating permit?
 Yes. You can partner up with someone who has an operating permit if
you own a building with a CUP.
o Will there be any opportunity for any new dispensaries? Concern that if not
there will be more product than what the current dispensaries and sell and this
will lead to illegal product on the street.
 At this time no, we have no direction from City Council to open the
process up for new dispensaries. We do not plan to have restrictiosn in
terms of legal distribution outside of the City.
o Any thought on zones for manufacture?
 City staff does not yet know what zones manufacture will be allowed
and this will be addressed once City staff completes looking into
regulation for manufacture operations and permits. Staff is still in need
of conducting more research and are open to hearing recommendations
from stakeholders.
o Will manufacturing and delivery proposals be fully finished by the time of the
Law and Legislation meeting?
 No. City staff expects to only have recommendations on the operating
permit and application process at this time. Manufacture and delivery
will be to follow at a later time.
o Can you apply as one business for different permits?
 According to MMRSA, State of California will only allow two permits in
two different areas. The City is deferring to the State on how many
permits on entity or business can hold.
o How long does the CUP process take?
 Approximately 6 months.
o Having the CUP fee set at $22,000 for most growers who will likely on be a 1,000
square feet lot or less, is expensive. Can you have different fees the CUP based
on level of permit/size of grow?
 No. The amount of the CUP is based on the level of its approval. Staff is
recommending approval at the Planning and Design level which carries a
fee of $22,000.
o West Sacramento allows distribution. Concern that if we do not allow
distribution we will lose the opportunity.
 We may look into distribution but at this time, we’ve been directed to
look at cultivation, manufacture and delivery. West Sacramento is not
allowing cultivation, dispensaries and other marijuana business so not
allowing distribution in the City of Sacramento right now should not
have a large impact on our competitiveness in the cannabis industry.
o Will people still be able to grow for personal use in a residential zone?
 Nothing will change with regard to cultivation in a residential zone for
growing for personal use.
III. Work plan and upcoming dates
 Planning and Design Commission public hearing – July 21, 2016
o Will be hearing amendment to Title 17 (Planning and Development Code
regarding land use only)
 Law and Legislation Meeting – August 9, 2016
 City Council – August 16,2016