14-A
TO: Honorable Mayor and Members of the City Council
ATTENTION: Ryan Smoot, City Manager
FROM: Wangsu Lee, Assistant to the City Manager
SUBJECT: Consideration and possible action to provide direction to the City Manager regarding authorization of a fifth Cannabis Business Permit for dispensary use.
DATE: July 13, 2026
EXECUTIVE SUMMARY
At the June 22, 2026 City Council Meeting, Mayor Pro Tem Sanchez requested that staff return with an item for the City Council’s consideration regarding the authorization of a fifth cannabis business permit (“CBP”) for dispensary use. At the November 2025 cannabis study session, the City Council reviewed and discussed the authorized number of CBPs for dispensary use and for reasons discussed during the study session directed staff to maintain the current limit of four dispensary-use CBPs. The City Council also requested that staff evaluate the potential impacts of expanding the number of authorized CBPs for dispensary use. The City is currently working with RSG, Inc. to conduct a comprehensive cannabis study, which will include an analysis of the potential impacts of additional dispensaries. The City Manager is requesting City Council’s direction regarding whether to expand the number of authorized cannabis dispensary permits from four to five. Direction from the City Council would allow staff to determine whether to proceed with the necessary steps to amend the City’s current Cannabis Regulations, as applicable, and return with an updated cannabis Resolution for the City Council’s consideration.
RECOMMENDATION TO CITY COUNCIL
1) Provide direction to the City Manager regarding authorization of a fifth Cannabis Business Permit for dispensary use; or
2) Alternatively, discuss and take other action related to this item.
FISCAL IMPACT
None.