CITY OF SIMI VALLEY
MEMORANDUM
February 28, 2022
TO: City Council
FROM: Office of the City Manager
SUBJECT: DISCUSSION AND POSSIBLE ACTION REGARDING CANNABIS IN THE
CITY OF SIMI VALLEY
STAFF RECOMMENDATION
Staff recommends that the City Council review and discuss the results of the 2018 City cannabis measures placed on the ballot and provide direction to staff.
BACKGROUND AND OVERVIEW
During the January 24, 2022, City Council meeting, the City Council requested to review and discuss the results of the cannabis measures that the City placed on the ballot in 2018.
FINDINGS AND ALTERNATIVES
During the 2018 General Municipal Election, the City Council placed three measures on the ballot related to cannabis. The first measure was to determine whether cannabis sales in the community should be taxed. This measure was in response to cannabis deliveries in the community and the expectation that future state law would preempt cities from prohibiting cannabis sales and retail locations in their respective jurisdictions. The other two measures were advisory measures to determine the community’s tolerance for legalized cannabis sales in the community.
Currently, state law allows cannabis retailers to deliver to a ny jurisdiction. Cannabis retailers delivering to Simi Valley must obtain a Business Tax Certificate and register with the City to ensure that the proper tax is collected. On average, the City collects approximately $15,000 annually through cannabis deliveries in the community.
The questions as they were posed to the voters are provided as follows:
AGENDA ITEM NO.
8A
2 Measure Q:
Shall the measure to fund , for
unrestricted general revenue purposes
such as public safety, infrastructure,
and streets, which taxes cannabis
(marijuana) businesses at annual rates
not to exceed $10.00 per canopy
square foot for cultivation (adjustable
for inflation), 6% of gross receipts for
retail cannabis businesses, and 4% or
less for all other cannabis businesses,
generating an unknown amou nt of
revenue and levied until repealed by the
voters or the City Council be adopted?
YES 31,171
NO 15,718
A total of 46,889 individuals weighed in on the question whether cannabis should be taxed in Simi Valley. In a margin of more than two to one, voters affirmed that if there are cannabis sales in the community, they should be taxed.
The following two questions were posed to the voters as a dvisory measures; a vote on an advisory measure is non-binding and will not change the law. It is a method to gauge voter support or opposition on a particular issue.
Measure R - Advisory:
Shall the City Council allo w marijuana related
businesses, such as cultivation, manufacturing,
distribution, testing facilities, and deliveries to operate in the City?
YES 23,609
NO 25,588
A total of 49,197 individuals voted on Measure R, with 23,609 “yes” votes and 25,588 “no” votes. The majority of voters (1,979 more voted “no”) did not support marijuana businesses being allowed to operate in the City.
Measure S - Advisory:
If the City allows marijuana related businesses to
operate in the future, should those businesses be
limited to operate only in the City’s Sexually Oriented Business Overlay Zone?
YES 21,663
NO 25,979
A total of 47,642 individuals voted on Measure S, with 21,663 “yes” votes and 25,979 “no” votes. The majority of voters (4,316 more votes) favored that, if the City allows marijuana related businesses to operate in the future, those businesses should not be limited to 3 operate only in the City’s Sexually Oriented Business Overlay Zone (Attachment A, page 6).
Should the City Council wish to receive community input on allowing cannabis in the City, an advisory measure may be placed on the November 8, 2022, ballot during the General Municipal Election. To do so, s taff would include language for the advisory measure in the resolution when the City officially calls for the election in June 2022. The cost to include the measures on the 2018 ballot were approximately $9,200 for each. Staff estimates the cost will be slightly higher to include a measure during the 2022 General Municipal Election due to increased printing and mailing costs.
While the 2018 ballot measures provided voter sentiment, there is no requirement to formally poll voters again on the issue prior to moving forward with allowing sales of cannabis in the community. The City Council could direct staff to return at a future meeting with a revision to the Municipal Code allowing for cannabis sales in the community. Alternatively, th e City Council could direct staff to present the issue to the Neighborhood Councils for feedback.
If the City Council elects to place an advisory ballot measure before the voters on the 2022 General Municipal Election, staff recommends the City Council direct staff to return with proposed language for a ballot measure to address the desired questions.
Staff surveyed the cities in Ventura County to determine where cannabis related activities are permitted. The results are provided below.
• The City of Port Hueneme not only allows for recr eational cannabis sales in the city, but on Monday, February 7, 2022, the City Council approved four, two- day cannabis events in 2022 where sales and consumption will be permitted. In fiscal year 2020, the city collected $2.2 million from cannabis dispensaries. In December 2021, the City Council directed staff to revise the city’s cannabis ordinance to allow for consumption in designated lounges.
• The City of Ojai allow s for recreational cannabis dispensaries. According to the Ventura County Star, as of November 2021, Ojai had three dispensaries operating in the city and two manufacturing businesses going through the permitting process.
Currently, dispensaries are permitted in Manufacturing Districts and are not permitted in General Commercial Districts.
• In the C ity of Oxnard, the city set a deadline of January 2021 for businesses to apply for a cannabis retail permit. By the deadline, 51 businesses applied and 16 were selected to apply for a special use permit t o begin selling cannabis in the City. As of February 23, 2022, the Planning Commission has approved special use permits for fourteen applicants.
4 • During its November 17, 2021, meeting, the City of Moorpark adopted an ordinance that permits industrial hemp businesses, including testing labs, and CBD retailers in the city.
• The City of Ventura has adopted a regulatory and zoning ordinance for cannabis in the city. On February 8, 2021, the City Council adopted a resolution for the maximum number of businesses and buffers from sensitive uses. The maximum number of storefront and non- storefront retailers and microbusinesses is five.
There is a maximum of 10 manufactures, distributors, and testing labs. The city received 25 applications for consideration and according to the timeline listed on the city’s website, the City Manager will make his final s election by June 2022 following evaluations, interviews, scoring and a public meeting.
• The City of Thousand Oaks allows for medical cannabis dispensaries in industrial zones and has two locations.
• The City of Santa Paula currently allows testing but bans all other commercial cannabis activities. Santa Paula voters approved a cannabis tax in 2018.
• The City of Camarillo currently prohibits cannabis businesses of any type in the City, including cultivators, manufacturers, distributors, retailers , and testing laboratories.
• The City of Fillmore prohibits the sale of recreational and medical marijuana and commercial cultivation.
The following alternatives are available to the City Council:
1. Direct staff to return with language for an advisory cannabis measure(s) to be included during the November 2022 General Municipal Election;
2. Direct staff to return with a revision to the Municipal C ode allowing for the sale of medical and/or recreational cannabis in the City;
3. Direct staff to poll the Neighborhood Councils regarding the sales of cannabis in the City;
4. Receive and file this report.
Staff has no recommendation.
5 SUGGESTED CITY COUNCIL MOTION
I move to:
Direct staff to return with language for advisory cannabis measure(s) to be included during the November 2022 General Municipal Election;
OR
Direct staff to return with a revision to the Municipal Code allowing for the sale of medical and/or recreational cannabis in the City;
OR
Direct staff to poll the Neighborhood Councils regarding the sales of cannabis in the City;
OR
Receive and file this report.
SUMMARY
During the January 24, 2022, City Council meeting, the City Council requested to review and discuss the results of the cannabis measures that the City placed on the ballot in 2018. Staff recommends that following the City Council’s review and discussion, the Council provide direction to staff.
____________________________________
Samantha Argabrite
Deputy City Manager
Prepared by: Samantha Argabrite, Deputy City Manager
INDEX Page
Attachment A .................................................................................... 6 118 FWY EB 118 FWY WB
COCHRAN
ROYAL
ALAMO
FIRST
TAPO
MADERA SEQUOIA
EASY
ERRINGER
YOSEMITE
SINALOA
FITZGERALD
TAPO CANYON
SYCAMORE
LOST CANYONS
KUEHNER
TOWNSHIP
WOOD RANCH
STOW
STEARNS
LONG CANYON
LOS ANGELES
COTTONWOOD
GALENA
SIMI TOWN CENTER
GUARDIAN
RESERVOIR
LOS ANGELES
Legend
Public & Private Schools and Commercial Day Care Centers 1000-foot Buffer
SB Overlay District
Commercial Zones
Industrial Zones
0 1 20.5 Miles
µ
City of Simi Valley
Sensitive Uses Overlay
6 ATTACHMENT A