Agenda — Stanton City Council, November 22, 2022 (part 2 of 2)

URGENCY ORDINANCE NO. 1123

AN URGENCY ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, AMENDING SECTION 20.400.330 OF THE STANTON MUNICIPAL

CODE REGARDING ACCESSORY DWELLING UNITS AND JUNIOR ACCESSORY

DWELLING UNITS TO ENSURE CONSISTENCY WITH STATE REGULATIONS AND

FINDING THE ACTION TO BE EXEMPT FROM CEQA
WHEREAS, the City of Stanton, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, the Planning and Zoning Law authorizes cities to act by ordinance to provide for the creation and regulation of accessory dwelling units (“ADUs”) and junior accessory dwelling units (“JADUs”); and
WHEREAS, Government Code sections 65852.2 and 65852.22 (the “State ADU Laws”) impose limits on local authority to regulate ADUs and JADUs; and WHEREAS, the State ADU Laws require a local ordinance to comply with the ADU Laws or the local ordinance becomes null and void; and
WHEREAS, on January 11, 2022, the City Council adopted Ordinance No. 1114, which updated the City’s local ADU regulations to comply with the then-current State ADU Laws; and
WHEREAS, in September 2022, the California Legislature approved, and the Governor signed into law, a new bill (SB 897) that further amends the State ADU Laws; and WHEREAS, SB 897 takes effect January 1, 2023, and if the City’s ADU ordinance does not comply with the requirements imposed by SB 897 by that date, the City’s entire existing ADU ordinance becomes null and void as a matter of law; and WHEREAS, the City desires to amend its local regulatory scheme for the construction of ADUs and JADUs to comply with SB 897’s changes to the State ADU Laws; and WHEREAS, there is a current and immediate threat to the public health, safety, or welfare based on the passage of SB 897 because if the City’s ordinance does not comply with the amended laws as of January 1, 2023, and the City’s ADU ordinance becomes null and void, the City would thereafter be limited to applying the few default standards that are provided in Government Code sections 65852.2 and 65852.22 for the approval of ADUs and JADUs; and
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WHEREAS, the approval of ADUs and JADUs based solely on the default statutory standards, without local regulations governing height, setback, landscape, and architectural review, among other things, would threaten the character of existing neighborhoods, and negatively impact property values, personal privacy, and fire safety.

These threats to public safety, health, and welfare justify adoption of this ordinance as an urgency ordinance to be effective immediately upon adoption by a four-fifths vote of the City Council; and
WHEREAS, to protect the public safety, health, and welfare, the City Council may adopt this ordinance as an urgency measure in accordance with Government Code section 36937, subdivision (b).

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Incorporation of Recitals. The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2: CEQA. Under California Public Resources Code section 21080.17, the California Environmental Quality Act (“CEQA”) does not apply to the adoption of an ordinance by a city or county implementing the provisions of section 65852.2 of the Government Code, which is California’s ADU law and which also regulates JADUs, as defined by section 65852.22. Therefore, the proposed ordinance is statutorily exempt from CEQA in that the proposed ordinance implements the State’s ADU law.

SECTION 3: General Plan. This ordinance is, as a matter of law, consistent with the City’s General Plan pursuant to Government Code Section 65852.2(a)(1)(C).

SECTION 4: Code Amendments. Section 20.400.330 of the Stanton Municipal Code is hereby amended to read in its entirety as provided in Exhibit “A,” attached hereto and incorporated herein by reference.

SECTION 5: Effective Date. This ordinance takes effect immediately upon its adoption and shall become operative on January 1, 2023.

SECTION 6: Severability. If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this ordinance irrespective of the invalidity of any portion thereof.

SECTION 7: Certification and Publication. The City Clerk shall certify the passage and adoption of this ordinance and shall cause the same, or a summary thereof, to be published and/or posted in the manner required by law.

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SECTION 8: HCD Submittal. The City Clerk shall submit a copy of this ordinance to the Department of Housing and Community Development within 60 days after adoption.

SECTION 9: Notice of Exemption. The City Council hereby directs staff to prepare, execute, and file with the County of Orange Clerk a notice of exemption within five working days of the adoption of this Ordinance.

SECTION 10: Custodian of Records. The Custodian of Records for this Ordinance is the City Clerk and the records compromising the administrative record for this ordinance are located at 7800 Katella Avenue, Stanton, CA 90680.

PASSED, APPROVED, AND ADOPTED this 22nd day of November, 2022.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK

APPROVED AS TO FORM

HONGDAO NGUYEN, CITY ATTORNEY
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STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Urgency Ordinance No. 1123 was duly introduced and adopted at a regular meeting of the City Council held on the 22nd day of November, 2022, by the following rollcall vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

PATRICIA A. VAZQUEZ, CITY CLERK
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EXHIBIT “A”

ADU CODE AMENDMENTS
(Begins on following page)
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Section 20.400.330 Accessory Dwelling Units
A. Purpose. The purpose of this section is to allow and regulate accessory dwelling units (ADUs) and junior accessory dwelling units (JADUs) in compliance with California Government Code sections 65852.2 and 65852.22.

B. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:

1. Deemed to be inconsistent with the City’s General Plan and zoning designation for the lot on which the ADU or JADU is located.

2. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.

3. Considered in the application of any local ordinance, policy, or program to limit residential growth.

4. Required to correct a nonconforming zoning condition, as defined in subsection C(7) below. This does not prevent the City from enforcing compliance with applicable building standards in accordance with Health and Safety Code section 17980.12.

C. Definitions. As used in this section, terms are defined as follows:

1. “Accessory dwelling unit” or “ADU” means an attached or a detached residential dwelling unit that provides complete independent living facilities for one or more persons and is located on a lot with a proposed or existing primary residence. An accessory dwelling unit also includes the following:
a. An efficiency unit, as defined by Section 17958.1 of the California Health and Safety Code; and
b. A manufactured home, as defined by Section 18007 of the California Health and Safety Code.

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. Refer to Section 20.700.070.

3. “Complete independent living facilities” means permanent provisions for living, sleeping, eating, cooking, and sanitation on the same parcel as the single-family or multifamily dwelling is or will be situated.

4. “Efficiency kitchen” means a kitchen that includes all of the following:
a. A cooking facility with appliances.
b. A food preparation counter and storage cabinets that are of a ORDINANCE NO. 1123

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reasonable size in relation to the size of the JADU.

5. “Junior accessory dwelling unit” or “JADU” means a residential unit that satisfies all of the following:
a. It is no more than 500 square feet in size.
b. It is contained entirely within an existing or proposed single-family structure. An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the singlefamily structure. c. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure. d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling. e. It includes an efficiency kitchen, as defined in subsection C(4) above.

6. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

7. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

8. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.

9. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

10. “Public transit” means a location, including, but not limited to, a bus stop or train station, where the public may access buses, trains, subways, and other forms of transportation that charge set fares, run on fixed routes, and are available to the public.

11. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

D. Approvals. The following approvals apply to ADUs and JADUs under this section:

1. Building-permit Only. If an ADU or JADU complies with each of the general requirements in subsection E below, it is allowed with only a building permit in the following scenarios:

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a. Converted on Single-family Lot: One ADU as described in this subsection D(1)(a) and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
i. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
ii. Has exterior access that is independent of that for the singlefamily dwelling; and iii. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes; and
iv. The JADU complies with all the requirements of Gov. Code section 65852.22.
b. Limited Detached on Single-Family Lot. One detached, newconstruction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection D(1)(a) above), if the detached ADU satisfies the following limitations:
i. The side- and rear-yard setbacks are at least four-feet. ii. The total floor area is 800 square feet or smaller. iii. The peak height above grade does not exceed the applicable height limit provided in subsection E(2) below.
c. Converted on Multifamily Lot. One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection D(1)(c), at least one converted ADU is allowed within an existing multifamily dwelling, and up to a quantity equal to 25 percent of the existing multifamily dwelling units.

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d. Limited Detached on Multifamily Lot. No more than two detached ADUs on a lot that has an existing or proposed multifamily dwelling if each detached ADU satisfies the following limitations:
i. The side- and rear-yard setbacks are at least four-feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the City will not require any modification to the multifamily dwelling as a condition of approving the ADU.
ii. The peak height above grade does not exceed the applicable height limit provided in subsection E(2) below.

2. ADU Permit.
a. Except as allowed under subsection (D)(1) above, no ADU may be created without a building permit and an ADU permit in compliance with the standards set forth in subsections E and F below. b. The City may charge a fee to reimburse it for costs incurred in processing ADU permits, including the costs of adopting or amending the City’s ADU ordinance. The ADU-permit processing fee is determined by the Director and approved by the City Council by resolution.

3. Process and Timing.
a. An ADU permit is considered and approved ministerially, without discretionary review or a hearing.
b. The City must approve or deny an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the City has not approved or denied the completed application, the application is deemed approved unless either:
i. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or ii. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.

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c. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection D(3)(b) above.
d. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.

E. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under subsections D(1) or D(2) above:

1. Location.
a. An ADU or JADU subject only to a building permit under subsection D(1) above may be created on a lot in a residential or mixed-use zone.
b. An ADU or JADU subject to an ADU permit under subsection D(2) above may be created on a lot that is zoned to allow single-family dwelling residential use or multifamily dwelling residential use.

2. Height.
a. Except as otherwise provided by subsections E(2)(b) and E(2)(c) below, a detached ADU created on a lot with an existing or proposed single family or multifamily dwelling unit may not exceed 16 feet in height.
b. A detached ADU may be up to 18 feet in height if it is created on a lot with an existing or proposed single family or multifamily dwelling unit that is located within one-half mile walking distance of a major transit stop or a high quality transit corridor, as those terms are defined in Section 21155 of the Public Resources Code, and the ADU may be up to two additional feet in height (for a maximum of 20 feet) if necessary to accommodate a roof pitch on the ADU that is aligned with the roof pitch of the primary dwelling unit. c. A detached ADU created on a lot with an existing or proposed multifamily dwelling that has more than one story above grade may not exceed 18 feet in height.

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d. An ADU that is attached to the primary dwelling may not exceed 25 feet in height or the height limitation imposed by the underlying zone that applies to the primary dwelling, whichever is lower.

Notwithstanding the foregoing, ADUs subject to this subsection E(2)(d) may not exceed two stories.
e. For purposes of this subsection E(2), height is measured above existing legal grade to the peak of the structure.

3. Fire Sprinklers.
a. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.
b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing dwelling.

4. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created.

5. No Separate Conveyance. Subject to Government Code Section 65852.26, an ADU or JADU may be rented long-term, but no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).

6. Septic System. If the ADU or JADU will connect to an onsite watertreatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.

7. Owner Occupancy.
a. An ADU that is permitted after January 1, 2020, but before January 1, 2025, is not subject to any owner-occupancy requirement. b. Unless applicable law requires otherwise, all ADUs that are created on or after January 1, 2025, are subject to an owner-occupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person’s legal domicile and permanent residence.
c. As required by state law, all JADUs are subject to an owneroccupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary ORDINANCE NO. 1123

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dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement of this paragraph does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.

8. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Director. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that:
a. Except as otherwise provided in Government Code Section 65852.26, the ADU or JADU may not be sold separately from the primary dwelling.
b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code.
e. The deed restriction is enforceable by the Director or his or her designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

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9. Building & Safety.
a. Must comply with building code. Subject to subsection E(9)(b) below, all ADUs and JADUs must comply with all local building code requirements.
b. No change of occupancy. Construction of an ADU does not constitute a Group R occupancy change under the local building code, as described in Section 310 of the California Building Code, unless the building official or Code Enforcement Division officer makes a written finding based on substantial evidence in the record that the construction of the ADU could have a specific, adverse impact on public health and safety. Nothing in this subsection E(9)(b) prevents the City from changing the occupancy code of a space that was uninhabitable space or that was only permitted for
nonresidential use and was subsequently converted for residential use in accordance with this section.

F. Specific ADU Requirements. The following requirements apply only to ADUs that require an ADU permit under subsection D(2) above.

1. Maximum Size.
a. The maximum size of a detached or attached ADU subject to this subsection F is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms. b. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.
c. Application of other development standards in this subsection F, such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection F(1)(b) above or of an FAR, lot coverage, front setback, or openspace requirement may require the ADU to be less than 800 square feet.

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2. Floor Area Ratio (FAR). No ADU subject to this subsection F may cause the total FAR of the lot to exceed, subject to subsection F(1)(c) above:

FAR/Target Range General
GLMX
North Gateway
NGMX
South Gateway
SGMX
Target Density
Range
Density range for residential uses expressed as dwelling units per NET acre.

Residential Uses 25 - 45 du/ac 25 - 45 du/ac 30 - 60 du/ac Target Intensity
Range Floor area ratio (FAR) for nonresidential uses
Nonresidential
Uses (1)

1.0 - 2.0 1.0 - 2.0 1.5 - 3.0

3. Lot Coverage. No ADU subject to this subsection F may cause the total lot coverage of the lot to exceed the following coverage, subject to subsection F(1)(c) above.

Lot Coverage RE RL RM RH
Interior Lot 30% 40% 50% 65%
Corner Lot 35% 45% 50% 65%

4. Impervious surface coverage. Maximum percentage of the total gross lot area that may be covered by structures and impervious surfaces shall not exceed 70 percent, subject to subsection F(1)(c) above.

5. Setbacks.
a. Front-yard setback.
i. Subject to subsection F(5)(a)(ii), no part of any ADU subject to this subsection F may be located within 25 feet of the front property line.
ii. If the front yard setback is the only location on the lot where an ADU may be lawfully constructed, then the ADU may
encroach into the required front yard setback as necessary to enable the construction of an 800 square foot unit.
b. An ADU that is subject to this subsection F must conform to 4-foot side-and rear-yard setbacks.
c. No setback is required for an ADU that is subject to this subsection F if the ADU is constructed in the same location and to the same dimensions as an existing structure.

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6. Passageway. No passageway, as defined by subsection C(8) above, is required for an ADU.

7. Parking.
a. Generally. One off-street parking space is required for each ADU.

The parking space may be provided in setback areas or as tandem parking, as defined by subsection C(11) above.
b. Exceptions. No parking under subsection F(7)(a) is required in the following situations:
i. The ADU is located within one-half mile walking distance of public transit, as defined in subsection C(10) above.
ii. The ADU is located within an architecturally and historically significant historic district.
iii. The ADU is part of the proposed or existing primary residence (single-family converted ADUs, not multifamily converted) or an accessory structure under subsection D(1)(a) above.
iv. When on-street parking permits are required but not offered to the occupant of the ADU.
v. When there is an established car share vehicle stop located within one block of the ADU.
vi. When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections F(7)(b)(i) through F(7)(b)(v) above.
c. No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.

8. Architectural Requirements.
a. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling.

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b. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
c. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d. The ADU must have an independent exterior entrance, apart from that of the primary dwelling.
e. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet.

G. Fees. The following requirements apply to all ADUs that are approved under subsections D(1) or D(2) above.

1. Impact Fees.
a. No impact fee is required for an ADU that is less than 750 square feet in size. For purposes of this subsection G(1), “impact fee” means a “fee” under the Mitigation Fee Act (Gov. Code § 66000(b)) and a fee under the Quimby Act (Gov. Code § 66477). “Impact fee” here does not include any connection fee or capacity charge for water or sewer service.
b. Any impact fee that is required for an ADU that is 750 square feet or larger in size must be charged proportionately in relation to the square footage of the primary dwelling unit. (E.g., the floor area of the primary dwelling, divided by the floor area of the ADU, times the typical fee amount charged for a new dwelling.)

2. Utility Fees.
a. If an ADU or JADU is constructed with a new single-family home, a separate utility connection directly between the ADU or JADU and the utility and payment of the normal connection fee and capacity charge for a new dwelling are required.

b. Except as described in subsection G(2)(a), converted ADUs on a single-family lot, created under subsection D(1)(a) above, are not required to have a new or separate utility connection directly between the ADU and the utility. Nor is a connection fee or capacity charge required unless the ADU is constructed with a new single-family home.

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c. Except as described in subsection G(2)(a), all ADUs not covered by subsection G(2)(b) above require a new, separate utility connection directly between the ADU and the utility.
i. The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU based on either the floor area or the number of drainagefixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system.
ii. The portion of the fee or charge that is charged by the City may not exceed the reasonable cost of providing this service.

H. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.

1. Generally. The City will not deny an ADU or JADU application due to a nonconforming zoning condition, building code violation, or unpermitted structure on the lot that does not present a threat to the public health and safety and that is not affected by the construction of the ADU or JADU.

2. Unpermitted ADUs constructed before 2018.
a. Permit to Legalize. As required by state law, the City may not deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if denial is based on either of the following grounds:
i. The ADU violates applicable building standards, or
ii. The ADU does not comply with the state ADU law
(Government Code section 65852.2) or this ADU ordinance (section 20.400.330).
b. Exceptions.
i. Notwithstanding subsection H(2)(a) above, the City may deny a permit to legalize an existing but unpermitted ADU that was constructed before January 1, 2018, if the City makes a finding that correcting a violation is necessary to protect the health and safety of the public or of occupants of the structure. ii. Subsection H(2)(a) above does not apply to a building that is deemed to be substandard in accordance with California
Health and Safety Code section 17920.3.

I. Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in subsections A ORDINANCE NO. 1123

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though H(2) of this section may be allowed by the City with a use permit, in accordance with Chapter 20.550.

J. Restricted Areas. ADUs or JADUs shall not be allowed where roadways, public utilities and services are inadequate with reference to objective and published thresholds established by the utility or service provider. To ensure access by public safety vehicles, an ADU may not be located on a lot that fronts a roadway that is narrower than the minimum road width standards established by the Orange County Fire Authority’s Master Plans for Commercial and Residential Development (as the same may be amended from time to time), unless: (a) one on-site parking space is provided for each bedroom included in the ADU; and (b) replacement on-site parking spaces are provided for any parking spaces that are lost or converted to accommodate the ADU.

B. Effect of Conforming. An ADU or JADU that conforms to the standards in this section will not be:

1. Deemed to be inconsistent with the City’s General Plan and zoning designation for the lot on which the ADU or JADU is located.

2. Deemed to exceed the allowable density for the lot on which the ADU or JADU is located.

3. Considered in the application of any local ordinance, policy, or program to limit residential growth.

C. Definitions. As used in this section, terms are defined as follows:

2. “Accessory structure” means a structure that is accessory and incidental to a dwelling located on the same lot. Refer to Section 20.700.070.

4. “Efficiency kitchen” means a kitchen that includes eachall of the following:
a. A cooking facility with appliances.
b. A food preparation counter or counters that total at least 15 square Attachment: B
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feet in areaand storage cabinets that are of a reasonable size in relation to the size of the JADU.
c. Food storage cabinets that total at least 30 square feet of shelf space.

5. “Junior accessory dwelling unit” or “JADU” means a residential unit that all of the following:
a. It is no more than 500 square feet in size,.
b. It is contained entirely within an existing or proposed single-family structure, . An enclosed use within the residence, such as an attached garage, is considered to be a part of and contained within the single-family structure.
c. It includes its own separate sanitation facilities or shares sanitation facilities with the existing or proposed single-family structure, and. d. If the unit does not include its own separate bathroom, then it contains an interior entrance to the main living area of the existing or proposed single-family structure in addition to an exterior entrance that is separate from the main entrance to the primary dwelling. e. d. It includes an efficiency kitchen, as defined in subsection C(4) above.

6. “Living area” means the interior habitable area of a dwelling unit, including basements and attics, but does not include a garage or any accessory structure.

7. “Nonconforming zoning condition” means a physical improvement on a property that does not conform with current zoning standards.

8. “Passageway” means a pathway that is unobstructed clear to the sky and extends from a street to one entrance of the ADU or JADU.

9. “Proposed dwelling” means a dwelling that is the subject of a permit application and that meets the requirements for permitting.

11. “Tandem parking” means that two or more automobiles are parked on a driveway or in any other location on a lot, lined up behind one another.

D. Approvals. The following approvals apply to ADUs and JADUs under this section:

1. Building-permit Only. If an ADU or JADU complies with each of the general requirements in subsection E below, it is allowed with only a building permit in the following scenarios:
a. Converted on Single-family Lot: One ADU as described in this subsection D(1)(Aa) and one JADU on a lot with a proposed or existing single-family dwelling on it, where the ADU or JADU:
i. Is either: within the space of a proposed single-family dwelling; within the existing space of an existing single-family dwelling; or (in the case of an ADU only) within the existing space of an accessory structure, plus up to 150 additional square feet if the expansion is limited to accommodating ingress and egress; and
ii. Has exterior access that is independent of that for the singlefamily dwelling; and iii. Has side and rear setbacks sufficient for fire and safety, as dictated by applicable building and fire codes; and
iv. The JADU complies with all the requirements of Gov. Code section 65852.22.
b. Limited Detached on Single-Family Lot. One detached, newconstruction ADU on a lot with a proposed or existing single-family dwelling (in addition to any JADU that might otherwise be established on the lot under subsection D(1)(Aa) above), if the detached ADU satisfies the following limitations:
i. The side- and rear-yard setbacks are at least four-feet. ii. The total floor area is 800 square feet or smaller. iii. The peak height above grade is 16 feet or lessdoes not exceed the applicable height limit provided in subsection E(2) below.
c. Converted on Multifamily Lot. One or more ADUs within portions of existing multifamily dwelling structures that are not used as livable space, including but not limited to storage rooms, boiler rooms, passageways, attics, basements, or garages, if each converted ADU complies with state building standards for dwellings. Under this subsection D(1)(Cc), at least one converted ADU is allowed within an existing multifamily dwelling, and up to a quantity equal to 25 percent of the existing multifamily dwelling units.
d. Limited Detached on Multifamily Lot. No more than two detached ADUs on a lot that has an existing or proposed multifamily dwelling if each detached ADU satisfies the following limitations:
i. The side- and rear-yard setbacks are at least four-feet. If the existing multifamily dwelling has a rear or side yard setback of less than four feet, the City will not require any modification to the multifamily dwelling as a condition of approving the ADU.
ii. The peak height above grade is 16 feet or lessdoes not exceed the applicable height limit provided in subsection E(2) below.

3. Process and Timing.
a. An ADU permit is considered and approved ministerially, without discretionary review or a hearing.
b. The City must act onapprove or deny an application to create an ADU or JADU within 60 days from the date that the City receives a completed application. If the City doeshas not act uponapproved or denied the completed application within 60 days, the application is deemed approved unless either:
i. The applicant requests a delay, in which case the 60-day time period is tolled for the period of the requested delay, or ii. When an application to create an ADU or JADU is submitted with a permit application to create a new single-family or multifamily dwelling on the lot, the City may delay acting on the permit application for the ADU or JADU until the City acts on the permit application to create the new single-family or multifamily dwelling, but the application to create the ADU or JADU will still be considered ministerially without discretionary review or a hearing.
c. If the City denies an application to create an ADU or JADU, the City must provide the applicant with comments that include, among other things, a list of all the defective or deficient items and a description of how the application may be remedied by the applicant. Notice of the denial and corresponding comments must be provided to the applicant within the 60-day time period established by subsection D(3)(b) above.
d. A demolition permit for a detached garage that is to be replaced with an ADU is reviewed with the application for the ADU and issued at the same time.

E. General ADU and JADU Requirements. The following requirements apply to all ADUs and JADUs that are approved under subsections D(1) or D(2) above:

3. 2. Fire Sprinklers.
a. Fire sprinklers are required in an ADU if sprinklers are required in the primary residence.
b. The construction of an ADU does not trigger a requirement for fire sprinklers to be installed in the existing dwelling.

4. 3. Rental Term. No ADU or JADU may be rented for a term that is shorter than 30 days. This prohibition applies regardless of when the ADU or JADU was created.

5. 4. No Separate Conveyance. Subject to Government Code Section 65852.26, an ADU or JADU may be rented long-term, but no ADU or JADU may be sold or otherwise conveyed separately from the lot and the primary dwelling (in the case of a single-family lot) or from the lot and all of the dwellings (in the case of a multifamily lot).

6. 5. Septic System. If the ADU or JADU will connect to an onsite watertreatment system, the owner must include with the application a percolation test completed within the last five years or, if the percolation test has been recertified, within the last 10 years.

7. 6. Owner Occupancy.
a. All ADUs created before January 1, 2020, are subject to the owneroccupancy requirement that was in place when the ADU was created.
a. b. An ADU that is createdpermitted after that dateJanuary 1, 2020, but before January 1, 2025, is not subject to any owner-occupancy requirement.
b. c. AllUnless applicable law requires otherwise, all ADUs that are created on or after January 1, 2025, are subject to an owner- occupancy requirement. A natural person with legal or equitable title to the property must reside on the property as the person’s legal domicile and permanent residence.
c. d. AllAs required by state law, all JADUs are subject to an owneroccupancy requirement. A natural person with legal or equitable title to the property must reside on the property, in either the primary dwelling or JADU, as the person’s legal domicile and permanent residence. However, the owner-occupancy requirement of this paragraph does not apply if the property is entirely owned by another governmental agency, land trust, or housing organization.

8. 7. Deed Restriction. Prior to issuance of a building permit for an ADU or JADU, a deed restriction must be recorded against the title of the property in the County Recorder’s office and a copy filed with the Director. The deed restriction must run with the land and bind all future owners. The form of the deed restriction will be provided by the City and must provide that:
a. TheExcept as otherwise provided in Government Code Section 65852.26, the ADU or JADU may not be sold separately from the primary dwelling.
b. The ADU or JADU is restricted to the approved size and to other attributes allowed by this section.
c. The deed restriction runs with the land and may be enforced against future property owners.
d. The deed restriction may be removed if the owner eliminates the ADU or JADU, as evidenced by, for example, removal of the kitchen facilities. To remove the deed restriction, an owner may make a written request of the Director, providing evidence that the ADU or JADU has in fact been eliminated. The Director may then determine whether the evidence supports the claim that the ADU or JADU has been eliminated. Appeal may be taken from the Director’s determination consistent with other provisions of this Code. If the ADU or JADU is not entirely physically removed but is only eliminated by virtue of having a necessary component of an ADU or JADU removed, the remaining structure and improvements must otherwise comply with applicable provisions of this Code.
e. The deed restriction is enforceable by the Director or his or her designee for the benefit of the City. Failure of the property owner to comply with the deed restriction may result in legal action against the property owner, and the City is authorized to obtain any remedy available to it at law or equity, including, but not limited to, obtaining an injunction enjoining the use of the ADU or JADU in violation of the recorded restrictions or abatement of the illegal unit.

F. Specific ADU Requirements. The following requirements apply only to ADUs that require an ADU permit under subsection D(2) above.

1. Maximum Size.
a. The maximum size of a detached or attached ADU subject to this subsection F is 850 square feet for a studio or one-bedroom unit and 1,000 square feet for a unit with two or more bedrooms. b. An attached ADU that is created on a lot with an existing primary dwelling is further limited to 50 percent of the floor area of the existing primary dwelling.
c. Application of other development standards in this subsection F, such as FAR or lot coverage, might further limit the size of the ADU, but no application of the percent-based size limit in subsection F(1)(b) above or of an FAR, lot coverage, front setback, or openspace requirementsrequirement may require the ADU to be less than 800 square feet.

2. Floor Area Ratio (FAR). No ADU subject to this subsection F may cause the total FAR of the lot to exceed, subject to subsection F(1)(Cc) above:

FAR/Target Range General
GLMX
North Gateway
NGMX
South Gateway
SGMX
Target Density
Range
Density range for residential uses expressed as dwelling units per NET acre.

Residential Uses 25 - 45 du/ac 25 - 45 du/ac 30 - 60 du/ac Target Intensity
Range Floor area ratio (FAR) for nonresidential uses
Nonresidential
Uses (1)

1.0 - 2.0 1.0 - 2.0 1.5 - 3.0

3. Lot Coverage. No ADU subject to this subsection F may cause the total lot coverage of the lot to exceed the following coverage, subject to subsection F(1)(Cc) above.

Lot Coverage RE RL RM RH
Interior Lot 30% 40% 50% 65%
Corner Lot 35% 45% 50% 65%

5. Height. No ADU subject to this subsection F may exceed 16 feet in height above grade, measured to the peak of the structure.

5. 6. Setbacks.
a. An ADU that is subject to this subsection F must conform to a 25-foot front-yard setback.
a. Front-yard setback.
i. Subject to subsection F(5)(a)(ii), no part of any ADU subject to this subsection F may be located within 25 feet of the front property line.
ii. If the front yard setback is the only location on the lot where an ADU may be lawfully constructed, then the ADU may
encroach into the required front yard setback as necessary to enable the construction of an 800 square foot unit.
b. An ADU that is subject to this subsection F must conform to 4-foot side-and rear-yard setbacks.
c. No setback is required for an ADU that is subject to this subsection F if the ADU is constructed in the same location and to the same dimensions as an existing structure.

6. 7. Passageway. No passageway, as defined by subsection C(8) above, is required for an ADU.

7. 8. Parking.
a. Generally. One off-street parking space is required for each ADU.

The parking space may be provided in setback areas or as tandem parking, as defined by subsection C(11) above.
b. Exceptions. No parking under subsection F(87)(Aa) is required in the following situations:
i. The ADU is located within one-half mile walking distance of public transit, as defined in subsection C(10) above.
ii. The ADU is located within an architecturally and historically significant historic district.
iii. The ADU is part of the proposed or existing primary residence (single-family converted ADUs, not multifamily converted) or an accessory structure under subsection D(1)(Aa) above. iv. When on-street parking permits are required but not offered to the occupant of the ADU.
v. When there is an established car share vehicle stop located within one block of the ADU.
vi. When the permit application to create an ADU is submitted with an application to create a new single-family or new multifamily dwelling on the same lot, provided that the ADU or the lot satisfies any other criteria listed in subsections F(7)(b)(i) through F(7)(b)(v) above.
c. No Replacement. When a garage, carport, or covered parking structure is demolished in conjunction with the construction of an ADU or converted to an ADU, those off-street parking spaces are not required to be replaced.

8. 9. Architectural Requirements.
a. The materials and colors of the exterior walls, roof, and windows and doors must match the appearance and architectural design of those of the primary dwelling.
b. The roof slope must match that of the dominant roof slope of the primary dwelling. The dominant roof slope is the slope shared by the largest portion of the roof.
c. The exterior lighting must be limited to down-lights or as otherwise required by the building or fire code.
d. The ADU must have an independent exterior entrance, apart from that of the primary dwelling. The ADU entrance must be located on the side or rear building façade, not facing a public-right-of-way. e. The interior horizontal dimensions of an ADU must be at least 10 feet wide in every direction, with a minimum interior wall height of seven feet.
f. Windows and doors of the ADU may not have a direct line of sight to an adjoining residential property. Fencing, landscaping, or privacy glass may be used to provide screening and prevent a direct line of sight. g. All windows and doors in an ADU are less than 30 feet from a property line that is not a public right-of-way line must either be (for windows) clerestory with the bottom of the glass at least six feet above the finished floor, or (for windows and for doors) utilize frosted or obscure glass.

G. G. Fees.Fees. The following requirements apply to all ADUs that are approved under subsections D(1) or D(2) above.

b. Except as described in subsection G(2)(Aa), converted ADUs and JADUs on a single-family lot, created under subsection D(1)(Aa) above, are not required to have a new or separate utility connection directly between the ADU or JADU and the utility. Nor is a connection fee or capacity charge required unless the ADU or JADU is constructed with a new single-family home.
c. Except as described in subsection G(2)(Aa), all ADUs and JADUs not covered by subsection G(2)(Bb) above require a new, separate utility connection directly between the ADU or JADU and the utility. i. The connection is subject to a connection fee or capacity charge that is proportionate to the burden created by the ADU or JADU, based on either the floor area or the number of drainage-fixture units (DFU) values, as defined by the Uniform Plumbing Code, upon the water or sewer system.
ii. The portion of the fee or charge that is charged by the City may not exceed the reasonable cost of providing this service.

H. Nonconforming Zoning Code Conditions, Building Code Violations, and Unpermitted Structures.

I. H. Nonconforming ADUs and Discretionary Approval. Any proposed ADU or JADU that does not conform to the objective standards set forth in subsections A though GH(2) of this section may be allowed by the City with a use permit, in accordance with Chapter 20.550.

J. I. Restricted Areas. ADUs or JADUs shall not be allowed where roadways, public utilities and services are inadequate with reference to objective and published thresholds established by the utility or service provider. To ensure access by public safety vehicles, an ADU may not be located on a lot that fronts a roadway that is narrower than the minimum road width standards established by the Orange County Fire Authority’s Master Plans for Commercial and Residential Development (as the same may be amended from time to time), unless: (a) one (1) on-site parking space is provided for each bedroom included in the ADU; and (b) replacement on-site parking spaces are provided for any parking spaces that are lost or converted to accommodate the ADU.

CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 22, 2022
SUBJECT: PUBLIC CABLE TELEVISION AUTHORITY LEASE
REPORT IN BRIEF:

The Public Cable Television Authority (PCTA) is a joint powers agency representing the Cities of Stanton, Fountain Valley, and Westminster. The City of Fountain Valley has provided the PCTA with notice to terminate the existing lease agreement at City facilities. At the direction of the PCTA Board of Directors, PCTA staff was directed to identify potential office space within member cities or in the commercial market. The Council will consider authorizing the Mayor to enter into a lease agreement for a oneyear term with the PCTA, effective January 1, 2023.

RECOMMENDED ACTION:

1. City Council find that this item is not subject to California Environmental Quality Act (“CEQA”) pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment); and

2. Authorize the Mayor to enter into a lease agreement for a one-year term with the PCTA, in a form approved by the City Attorney.

BACKGROUND:

The PCTA is responsible for monitoring federal and state video service provider customer service standards in Stanton. PCTA assists subscribers with billing, service, and other unresolved issues with their video service provider, including:
• Prompt phone connection times and courteous service from video service providers;
• Clear and itemized service billing;
• On time appointments by video service provider technicians; • Response to service interruptions within 24 hours; and • Credit for interrupted service upon subscriber request.

Item: 12A
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The PCTA also manages and produces original programming for Stanton’s government access television station.

ANALYSIS AND JUSTIFICATION:

At its October 19, 2022 meeting, the PCTA Board of Directors instructed PCTA staff to focus on securing office space within the City of Stanton. The City has identified the approximately 1,080 square foot Dotson Park facility, located within the grounds of Dotson Park at 10350 Fern Ave, as currently vacant and viable for a short-term lease.

Staff worked with the City Attorney’s office to draft the proposed lease agreement, which includes the following provisions:
• Use of the Dotson Park facility in “as-is” condition solely for business office purposes during the primary operating hours of 5:00 a.m. to 6:00 p.m. with occasional use during the hours of 6:00 p.m. to 5:00 a.m.; • An initial term of one calendar year commencing as of January 1, 2023 and terminating December 31, 2023, unless mutually extended in writing; • A rental amount of $1,200 per month, due on the first day of each month, to include electricity and water costs; and
• Responsibility by the PCTA for all routine custodial services within the facility with the option to utilize the City’s janitorial contract with pass-through rates.

FISCAL IMPACT:

Annual rental revenues of $14,400 at $1,200 per month. Annual utility expenditures for electricity and water estimated at $3,600 at $300 per month. One time move in cleaning cost of $350. Rental revenues will be deposited into the City’s General Fund.

ENVIRONMENTAL IMPACT:

In accordance with the requirements of the California Environmental Quality Act (CEQA), this item is not subject to CEQA pursuant to Sections 15378(b)(5)(Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment).

PUBLIC NOTIFICATION:

Public notification provided through the regular agenda process.

LEGAL REVIEW:

Reviewed by the City Attorney.

STRATEGIC PLAN OBJECTIVE ADDRESSED:
6 – Maintain and promote a responsive, high quality and transparent government.

Prepared by: Hannah Shin-Heydorn, City Manager
Reviewed by: HongDao Nguyen, City Attorney
Fiscal Impact Reviewed by: Michelle Bannigan, Finance Director Approved by: Hannah Shin-Heydorn, City Manager
Attachment:

A. Rental Agreement and License

RENTAL AGREEMENT AND LICENSE
City of Stanton and Public Cable Television Authority
This Rental Agreement and License (hereinafter “Agreement”) is made and entered into this _______ day of _______ 2022, by and between the CITY OF STANTON (hereinafter “Licensor”), a municipal corporation, and the PUBLIC CABLE TELEVISION AUTHORITY (hereinafter “Licensee”), a California joint power agency, each of which is referred to herein individually as “Party” and collectively referred to as “Parties.”

1. Recitals.
(a) Licensor owns property commonly known as Harry M. Dotson Park located at 10350 Fern Ave, Stanton, California 90680 (hereinafter “Property”). There is a building, commonly referred to as the “Dotson Park House” (hereinafter “Building”), located in the northwest quadrant on the northern property line on the Property.
(b) Licensee desires to obtain a license from the Licensor to use the Building as office space within the Property, and Licensor is willing to provide Licensee a license to use such office space subject to the terms and conditions described herein.

2. License Agreement. Licensor hereby grants a revocable license to Licensee to use the Building, consisting of approximately 1,080 square feet, which includes two rooms and associated common areas, walkways, restrooms, driveways, parking spaces and other areas appurtenant thereto (collectively the “Premises”) subject to the terms provided herein.

The Premises are a self-contained area within the Property, located in the northwest quadrant of the Property. This Agreement creates no estate in real property but only creates a revocable license to use said Premises for the purposes specified on terms described herein.

3. Use.
(a) The Premises shall be used by Licensee solely for business office purposes and during the primary operating hours of 5:00 a.m. to 6:00 p.m. with occasional use during the hours of 6:00 p.m. to 5:00 a.m. Licensee shall be entitled to use said office space for office use, including the right to have a desk, telephone and meet customers, provided the same does not interfere with Licensor’s operations. (b) The Premises includes unreserved parking for Licensee’s staff. Licensee will not use the parking lot in such a way as to impair Licensor’s ability to park and hold events.
(c) The Premises shall not be used for any purpose other than official business purposes without first obtaining the written consent of Licensor, which consent Licensor may grant or withhold in its sole discretion.

Attachment: A
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4. Term.
(a) The Term of this Agreement shall be for a period of one (1) calendar year commencing as of January 1, 2023 and terminating December 31, 2023, unless mutually extended in writing.
(b) Any holding over by Licensee after the expiration of said term shall be deemed a month-to-month tenancy.
(c) Both Licensor and Licensee shall have the right to terminate this Agreement prior to the expiration of the Agreement with or without cause by providing thirty (30) days’ written notice to the other party.

5. Rent. Licensee shall pay the sum of ONE THOUSAND TWO HUNDRED DOLLARS ($1,200.00) per month on the first day of each month to Licensor for the use of the Premises. The Rent shall be inclusive of Licensee’s electricity and water costs. Upon the expiration of the term of this Agreement, License hereby agrees to pay rent on a month-tomonth basis, in which the rent shall be due on the first day of each subsequent month and may be subject to an adjustment based on the Consumer Price Index – Orange County (All Items) each year which shall take effect on January 1st.

6. Tenant Improvements/Office Furniture and Equipment. The Premises are provided in “As-Is” condition, with no additional improvements, furniture, or equipment provided by Licensor.

7. Custodial Services. Licensee shall be responsible for all routine custodial services within the Building. Custodial services will be provided to the level of quality required by Licensor.

8. Building Systems Maintenance and Services. Licensor shall maintain all core building services such as plumbing, electrical and HVAC in the Building and the Premises.

Licensee shall be responsible if any required maintenance or repair of core Building systems is a result of misuse by Licensee. Licensee shall also be responsible for any additional services such as maintenance of individual cooling for computer/server technology closet or other systems that result from Licensee’s improvements to the Premises. Services will be provided to the level of quality required by Licensor. If Licensee requests additional service beyond this level, the provisions of Paragraph 14 will apply.

9. Building Maintenance/Repairs. Except as otherwise set forth herein, Licensor shall maintain the exterior (including the roof and exterior surfaces) of the Building in good working order and repair and shall maintain interior surfaces of the Premises unless such maintenance is required as a result of misuse by Licensee. Services will be provided to the level of quality required by Licensor. If Licensee requests additional service beyond this level, the provisions of Paragraph 14 will apply.

10. Site Maintenance and Services. Licensor shall maintain all site landscaping, including parking and property facilities.
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11. Utilities. Licensee shall provide and pay for telephone, communication and data services.

12. Access. Licensor shall be responsible for access to the Premises and Building. Licensor shall provide Licensee a master key to access the Premises and Building door, including locks providing access to the Building and the Premises. Licensee will comply with all security requirements established by Licensor during the term of the Agreement, however Licensee agrees and acknowledges that Licensor shall not be obligated to provide any other security to the Premises.

13. Support Effort. At no cost to Licensee, Licensor will provide reasonable support to Licensee during the occupancy period. Thereafter, Licensee may request technical, administrative, or other support of Licensor staff, contractors, or agents for various purposes. Licensor will provide those services on a “time and materials” cost basis.

Licensor staff time will be based on labor plus overhead rates established by Licensor.

Other costs will be established by cost of materials (for example, replacement keys or badges) or cost for vendors (special requests or projects). Such services/support after hours will be billed at overtime rates. Licensor retains the right to prioritize and schedule response to requests as Licensor deems appropriate.

14. Rights of Licensor. Licensor, through its authorized representatives, shall have the right to enter the Premises for the purpose of inspecting, monitoring and evaluating the obligations of Licensee hereunder and for the purpose of doing any and all things which it is obligated or has a right to do under this Agreement. Ninety (90) days prior to the expiration of the term, Licensor shall have the right to enter the Building and show the Premises to prospective tenants; provided, however, that such right of entry will occur during normal business hours and upon prior notice to and coordination with Licensee.

15. Insurance. Licensee shall during the term of this Agreement:
(a) Procure and maintain Workers’ Compensation Insurance as prescribed by the laws of the State of California.
(b) Procure and maintain comprehensive general liability, and coverage that shall protect Licensee from claims for damages for personal injury, including, but not limited to, accidental and wrongful death, as well as from claims for property damage, which may arise from Licensee’s use of the Premises or the performance of its obligations hereunder, whether such use or performance be by Licensee, by any subcontractor, or by anyone employed directly or indirectly by either of them.

Such insurance shall name Licensor as an Additional Insured with respect to this Agreement and the obligations of Licensee hereunder. Such insurance shall provide for limits of not less than $1,000,000.00 per occurrence. (c) Cause its insurance carriers to furnish Licensor by direct mail with certificate(s) of insurance showing that such insurance is in full force and effect, and that Licensor is named as an Additional Insured with respect to this Agreement and the obligations of Licensee hereunder. Further, said Certificate(s) shall contain the covenant of the insurance carrier(s) that thirty (30) days’ written notice shall be given to Licensor prior to modification, cancellation or reduction in coverage of such insurance. In the event of any such modifications, cancellation or reduction -4-
in coverage and on the effective date thereof, Licensor shall have the right to cancel this Agreement with thirty (30) days’ advanced notice in writing to Licensee, unless Licensor receives prior to such effective date another certificate from an insurance carrier of Licensee’s choice that the insurance required herein is in full force and effect.
(d) The insurance requirements of Paragraphs (a) and (b) above may be provided through self-insurance, in conjunction with a Joint Powers Authority, or a combination of both.

16. Hold Harmless.
(a) Indemnification by Licensee. Licensee shall indemnify and hold Licensor, its officers, agents, employees, and independent contractors free and harmless from any claim or liability whatsoever, based or asserted upon any act or omission of Licensee, its Trustees, officers and agents, employees, volunteers, subcontractors, or independent contractors, for property damage, bodily injury or death, or any other element of damage of any kind or nature, occurring in the performance of this Agreement; and Licensee shall defend at its expense, including attorney fees, Licensor, its officers, agents, employees, and independent contractors in any legal action of any kind based upon such alleged acts or omissions. (b) The specified insurance limits required in Paragraph 15 above shall in no way limit or circumscribe Licensee’s obligations to indemnify and hold Licensor free and harmless herein.

17. Assignment. Licensee shall not assign, sublet, mortgage, hypothecate or otherwise transfer in any manner any of its rights, duties or obligations hereunder to any person or entity without the written consent of Licensor being first obtained, which consent shall be in the absolute discretion of Licensor. In the event of any such transfer, Licensee shall remain liable with respect to any and all of the Licensee obligations and duties contained in this Agreement.

18. Free from Liens. Licensee shall pay, when due, all sums of money that may become due for any labor, services, material, supplies, or equipment, alleged to have been furnished or to be furnished to Licensee, in, upon, or about the Premises, and which may be secured by a mechanics’, materialman’s or other lien against the Premises, the Property or Licensor’s interest therein, and will cause each such lien to be fully discharged and released at the time the performance of any obligation secured by such lien matures or becomes due; provided, however, that if Licensee desires to contest any such lien, it may do so, but notwithstanding any such contest, if such lien shall be reduced to final judgment, and such judgment or such process as may be issued for the enforcement thereof is not promptly stayed, or if so stayed, and said stay thereafter expires, then and in such event, Licensee shall forthwith pay and discharge said judgment.

19. Employees and Agents of Licensee. All persons hired or engaged by Licensee shall be considered to be employees or agents of Licensee and not of Licensor. -5-

20. Binding on Successors. Licensee, its permitted assigns, and successors in interest, shall be bound by all the terms and conditions contained in this Agreement, and all of the parties thereto shall be jointly and severally liable hereunder.

21. Waiver of Performance. No waiver by Licensor at any time of any of the terms and conditions of this Agreement shall be deemed or construed as a waiver at any time thereafter of the same or of any other terms and conditions contained herein or of the strict and timely performance of such terms and conditions.

22. Severability. The invalidity of any provision in this Agreement as determined by a court of competent jurisdiction shall in no way affect the validity of any other provision hereof.

23. Venue. Any action at law or in equity brought by either of the parties hereto for the purpose of enforcing a right or rights provided for by this Agreement shall be tried in a court of competent jurisdiction in the County of Orange, State of California, and the parties hereby waive all provisions of law providing for a change of venue in such proceedings to any other county.

24. Attorneys’ Fees. In the event of any litigation between Licensee and Licensor to enforce any of the provisions of this Agreement or any right of either party hereto, the unsuccessful party to such litigation agrees to pay to the successful party all costs and expenses, including reasonable attorneys’ fees, incurred therein by the successful party, all of which shall be included in and as a part of the judgment or award rendered in such litigations or arbitration.

25. Notices. Any notices required or desired to be served by either party upon the other shall be addressed to the respective parties as set forth below:

Licensor
City of Stanton
Attn: City Manager
7800 Katella Ave, Stanton, CA 90680
Licensee:

PUBLIC CABLE TELEVISION

AUTHORITY
Attn: Supervising Manager
10350 Fern Ave Stanton, CA 90680

26. Licensor and Licensee’s Representative. Licensor hereby appoints the City Manager or her designee as its authorized representative to administer this Agreement. Licensee hereby appoints the Supervising Manager as its authorized representative to administer this Agreement.

27. Entire Agreement. This Agreement is intended by the parties hereto as a final expression of their understanding with respect to the subject matter hereof and as a complete and exclusive statement of the terms and conditions thereof and supersedes any and all prior and contemporaneous leases, agreements, and understandings, oral or written, in connection therewith. This Agreement may be changed or modified only upon the written consent of the parties hereto.
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28. Authority. Each Party to this Agreement represents and warrants that each person whose signature appears hereon is duly authorized and has the full authority to execute this Agreement on behalf of the entity that is a Party to this Agreement.

29. Approval. This Agreement shall not be binding or consummated until its approval by the Licensor’s City Council.

Dated: Public Cable Television Authority
(Licensee)
By:
[INSERT NAME, TITLE]
Dated: CITY OF STANTON
(Licensor)

By:
[INSERT NAME, TITLE]
1 CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 22, 2022
SUBJECT: AMENDMENTS TO STANTON MUNICIPAL CODE CHAPTER 5.77 –

COMMERCIAL CANNABIS BUSINESSES
REPORT IN BRIEF:

The Council will consider an amended and restated version of Chapter 5.77 of Title 5 of the Stanton Municipal Code related to commercial cannabis businesses. The proposed amendments clarify portions of the chapter as well as provide more recent best practices in processing, permitting, and regulating such businesses.

RECOMMENDED ACTIONS:

1. City Council consider and introduce for first reading Ordinance No. 1124, titled:
“AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON AMENDING AND RESTATING CHAPTER 5.77 (COMMERCIAL
CANNABIS BUSINESSES) OF TITLE 5 (BUSINESS LICENSES AND

REGULATIONS) OF THE STANTON MUNICIPAL CODE AND

DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA
PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15061(B)(3) AND 15378(b)(5)”; and

2. Set Ordinance No. 1124 for second reading at the regular City Council meeting of December 13, 2022.

BACKGROUND:

On November 5, 2019, the City Council adopted Ordinance No. 1091 adding Chapter

5.76 to Title 5 of the Stanton Municipal Code establishing a tax on cannabis businesses operating within the City of Stanton. The purpose of Ordinance No. 1091 was to adopt a tax, for revenue purposes, applicable to cannabis businesses pursuant to Sections 37101 and 37100.5 of the California Government Code.

Item: 12B
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2 Following the adoption of Ordinance No. 1091, on June 23, 2020, the City enacted Ordinance No. 1100, which established Chapter 5.77 authorizing the permitting and regulating of commercial cannabis businesses within the City. The ordinance set forth, among other things, definitions, application procedures, permit and operation requirements, and zoning and land use. The City went through a first round of applications and awarded a number of permits in or around November 2021. The majority of the current permittees are scheduled to be operational by the second quarter of 2023.

Through implementing Ordinance No. 1100, the City has found ways to improve the process. It now wishes to clarify and update portions of Chapter 5.77 to include current best practices.

ANALYSIS AND JUSTIFICATION:

The following is a summary of the substantive amendments that are proposed for Chapter

5.77:
• Section 5.77.030 – Definitions
o The definitions have been updated for clarity and consistency with the City’s Cannabis Business Tax (Chapter 5.76), which already contains many of the definitions necessary for implementation of Chapter 5.77. Definitions have also been updated to reflect consistency with State Law governing cannabis in the Business and Professions Code.
o Notably, the amendments expand the definition of “Owner” to reflect the evolution of cannabis business ownership. Expanding the definition will ensure the City is able to continue capturing the increasingly sophisticated ways cannabis businesses are owned and operated.
• Section 5.77.070 – Application Procedure
o Staff has found that the application fee does not adequately capture the City’s costs in permitting a cannabis business. Therefore, in addition to an application fee, a refundable deposit is now going to be required to help address costs incurred by the City as a permittee moves through the administrative process of establishing their cannabis business. Staff will also be bringing an updated fee resolution sometime in the future to more accurately reflect the costs associated with processing an application. o Staff has found that some applicants that were awarded permits had difficulty finding locations within the City in which they could operate their business. The amendments will require, as part of the application, a notarized letter of intent by the applicant and property owner demonstrating that, if awarded a permit, the applicant may use the property for a commercial cannabis business.
3 o With recent legalization, staff is sensitive to the fact that the City needs to be proactive to ensure that minors and the general public are protected from a nascent industry such as cannabis. The amendments formalize current practices by requiring that applicants set forth how they will provide benefits to the local community, such as offsetting secondary nuisance issues or improving public safety. Those businesses selected for a permit must enter into an agreement with the City prior to the issuance of the permit, which is memorialized as a requirement in Section 5.77.090.
o The amendments update and strengthen the City’s indemnification by applicants.
• Section 5.77.080 – Review of Application and Grounds for Denial o The amendments flesh out and streamline the review process. The review committee provisions have now been expanded to provide that committee members must have no pecuniary interest in cannabis applications. Other review criteria may be adopted by the City Council as desired. o Background check requirements have been expanded so that the applicant, owner, and any proposed manager must complete a background check as part of the application process.
o The grounds for denying a permit have been expanded, including the addition of convictions for abuse, neglect, exploitation, and willful harming of a minor as well as convictions for human trafficking. • Section 5.77.100 – Permit Validity and Expiration
o The amendments clarify the grounds for when a permittee may ask for an extension of the permit expiration. It also provides that permittees that were awarded in November 2021 shall have until May 2023 to become operational.
• Section 5.77.110 – Renewal of Permits
o The amendments make more explicit and clarify the process for renewing a permit.
• Section 5.77.120 – Appeals
o During the first round of awarding permits, the City received one appeal, which was later withdrawn. After going through the process, staff found that there were ways in which to clarify and streamline the appeal process, including how the hearings are to be conducted.
• Section 5.77.150 – Transfer or Assignment of Permit
o The current ordinance prohibits any transfer or assignments of the permit.

However, staff has found that there are situations in which an assignment or transfer may be proper. Based upon market experience and the increasing complexity in cannabis ownership, an amendment was necessary to consider a process in which a permittee, in limited situations, could assign or transfer a permit.
4 o Staff also found that there may be situations in which a business needs to change physical locations. The amendments include a narrow process in which a permitted may seek a transfer to a new address. • Section 5.77.170 – General Operating Requirements
o The amendments also add regulations to marketing and advertising cannabis, including a prohibition on marketing designed to appeal to children.
• Section 5.77.195 – Discourage Illegal, Criminal, or Nuisance Activities o As noted above, the amendments are intended, in part, to ensure the health and safety of the general public is protected. The amendments address a number of situations in which a permittee is responsible for taking certain steps to ensure community safety.

FISCAL IMPACT:

The changes proposed in this ordinance will help the City recoup its costs in processing applications and permits.

ENVIRONMENTAL IMPACT:

In accordance with the requirements of the California Environmental Quality Act (CEQA), this item is not subject to CEQA pursuant to Sections 15060(c)(2), 15061(b)(3), and 15378(b)(5). Commercial cannabis uses developed pursuant to Ordinance No. 1124 would be independently reviewed and evaluated pursuant to CEQA.

PUBLIC NOTIFICATION:

Public notification provided through the regular agenda process.

LEGAL REVIEW:

Ordinance No. 1124 was drafted through the City Attorney’s office in consultation with the City Manager’s Office, Community Development, Public Safety, and Police Services. The agenda item has been reviewed and approved by the City Attorney.

STRATEGIC PLAN OBJECTIVES ADDRESSED:

Objective 1 – Provide a safe community.

Objective 2 – Promote a strong local economy.

Objective 5 – Provide a high quality of life.
5 PUBLIC NOTIFICATION:

Through the normal agenda process.

Prepared by: HongDao Nguyen, City Attorney
Reviewed by: Hannah Shin-Heydorn, City Manager
Attachments:

A. Proposed Ordinance No. 1124
B. Redlined Ordinance
ORDINANCE NO. 1124
PAGE 1 OF 4
ORDINANCE NO. 1124

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF STANTON AMENDING AND RESTATING CHAPTER 5.77 (COMMERCIAL CANNABIS BUSINESSES) OF TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE STANTON

MUNICIPAL CODE AND DETERMINING THE ORDINANCE TO BE EXEMPT FROM CEQA PURSUANT TO STATE CEQA GUIDELINES SECTIONS 15060(C)(2), 15061(B)(3) AND 15378(b)(5)
WHEREAS, the City of Stanton, California (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, on November 5, 2019, the City Council adopted Ordinance No. 1091 adding Chapter 5.76 to Title 5 of the Stanton Municipal Code establishing a tax on cannabis businesses operating within the City of Stanton; and
WHEREAS, on June 23, 2020, the City Council adopted Ordinance No. 1100, which added Chapter 5.77 Commercial Cannabis Businesses to Title 5 of the Stanton Municipal Code and amended Title 20 (Zoning), section 20.220.020.A Allowed Land Uses, Table 2- 7 to permit and regulate Commercial Cannabis Business uses; and WHEREAS, following the passage of Ordinance No. 1100, the City accepted applications for commercial cannabis businesses, processed and scored them, and thereafter awarded a number of commercial cannabis permits in or around November 2021; and WHEREAS, since the initial implementation of Ordinance No. 1100, the City has found that there are ways to revise Chapter 5.77 to make the provisions more clear or to otherwise implement best practices; and
WHEREAS, for example, as part of the initial application process, applicants offered community benefits to the City to help offset any secondary, nuisance effects that accompanied operating a commercial cannabis business within the City. The proposed revisions clarify that permittees shall, as a condition of their permit, enter into an agreement with the City to memorialize such community benefits that they will provide.

Other clarifications include revisions to the application review process, as well as the appeal and hearing procedures; and
WHEREAS, best practices that the City wishes to implement include, without limitation, providing for a refundable deposit to cover cannabis application or permit-related expenses that are not otherwise covered by the nonrefundable fee. This is to ensure that the City is made whole for the time it spends reviewing, analyzing, scoring, and processing applications and permits. Moreover, applicants will now be required to include a letter of intent with a property owner that tentatively secures a location for a proposed business so that the City and the public have a better idea of where such businesses may be located if an applicant is awarded a permit; and
Attachment: A
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ORDINANCE NO. 1124
PAGE 2 OF 4
WHEREAS, on November 22, 2022, the City Council held a hearing that was noticed pursuant to the City’s normal agenda noticing procedures and considered the staff report, recommendations by staff, and public testimony concerning the proposed ordinance to amend and restate Chapter 5.77 (Commercial Cannabis Businesses) of the Stanton Municipal Code and determine the ordinance to be exempt from CEQA.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF STANTON DOES ORDAIN AS FOLLOWS:

SECTION 1: The recitals above are each incorporated by reference and adopted as findings by the City Council.

SECTION 2: The City Council hereby finds that the Ordinance is not subject to the California Environmental Quality Act (“CEQA”) pursuant to State CEQA Guidelines sections 15060(c)(2), 15061(b)(3), and 15378(b)(5). The activity is not subject to CEQA because it will not result in a direct or reasonably foreseeable physical change in the environment; and the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment.

Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, the activity is not subject to CEQA. Commercial cannabis uses developed pursuant to Ordinance No. 1124 would be independently reviewed and evaluated pursuant to CEQA.

SECTION 3: Chapter 5.77 (Commercial Cannabis Business) of Title 5 (Business Licenses and Regulations) of the Stanton Municipal Code is hereby amended and restated in its entirety, as provided in Exhibit “A,” attached hereto and incorporated herein by reference.

SECTION 4: This ordinance shall take effect 30 days following its adoption.

SECTION 5: The City Clerk shall either: (a) have this ordinance published in a newspaper of general circulation within 15 days after its adoption or (b) have a summary of this ordinance published twice in a newspaper of general circulation, once five days before its adoption and again within 15 days after its adoption.

SECTION 6: The City Council hereby directs staff to prepare, execute and file with the Orange County Clerk a Notice of Exemption within five working days of the approval and adoption of this ordinance.

SECTION 7: If any provision of this ordinance or its application to any person or circumstance is held to be invalid, such invalidity has no effect on the other provisions or applications of the ordinance that can be given effect without the invalid provision or application, and to this extent, the provisions of this resolution are severable. The City Council declares that it would have adopted this resolution irrespective of the invalidity of any portion thereof.

ORDINANCE NO. 1124
PAGE 3 OF 4
SECTION 8: The documents and materials that constitute the record of proceedings on which this Ordinance and the above findings have been based are located in the City Clerk’s Department, 7800 Katella Avenue, Stanton, California.

PASSED, APPROVED, AND ADOPTED this 13th day of December, 2022.

DAVID J. SHAWVER, MAYOR
ATTEST:

PATRICIA A. VAZQUEZ, CITY CLERK
APPROVED AS TO FORM:

HONGDAO NGUYEN, CITY ATTORNEY
ORDINANCE NO. 1124
PAGE 4 OF 4

STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.

CITY OF STANTON )
I, Patricia A. Vazquez, City Clerk of the City of Stanton, California, do hereby certify that the foregoing Ordinance No. 1124 was introduced at a regular meeting of the City Council of the City of Stanton, California, held on the 22nd day of November, 2022 and was duly adopted at a regular meeting of the City Council held on the 13th day of December, 2022, by the following roll-call vote, to wit:

AYES: COUNCILMEMBERS:

NOES: COUNCILMEMBERS:

ABSENT: COUNCILMEMBERS:

ABSTAIN: COUNCILMEMBERS:

PATRICIA A. VAZQUEZ, CITY CLERK

EXHIBIT A
Chapter 5.77 Commercial Cannabis Businesses (Restated and Amended) (follows this page)
Exhibit: A
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1 EXHIBIT “A”
AMENDED AND RESTATED CHAPTER 5.77 (CLEAN)
Chapter 5.77 COMMERCIAL CANNABIS BUSINESSES

5.77.010 Purpose and intent.

5.77.020 Severability.

5.77.030 Definitions.

5.77.040 Permit requirement—Maximum number of permits.

5.77.050 Authority to enforce chapter.

5.77.060 Service requirements.

5.77.070 Application procedure.

5.77.080 Review of applications—Grounds for denial—Right to appeal—Notice of denial.

5.77.090 Permit issuance.

5.77.100 Permit—Validity—Expiration.

5.77.110 Renewal of cannabis business permits.

5.77.120 Grounds for suspension, revocation, and nonrenewal.

5.77.130 Appeals.

5.77.150 Transfer and Assignment of cannabis business permit.

5.77.160 Fees.

5.77.170 General operating requirements.

5.77.180 Specific operating requirements.

5.77.190 Permittee responsibility.

5.77.195 Discourage Illegal, Criminal, or Nuisance Activities.

5.77.200 Inspection and enforcement.

5.77.010 Purpose and intent.

It is the purpose and intent of this chapter for the city council to exercise its police powers derived from Section 7 of Article XI of the California Constitution and state law to promote the health, safety, and general welfare of the residents and businesses of the city of Stanton by regulating cannabis within the city’s jurisdictional limits, unless preempted by state law.

5.77.020 Severability.

If any provision of the ordinance codified in this chapter is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity will not affect the remaining provisions of the ordinance and chapter, which can be implemented without the invalid provisions, and to this end, the provisions of this ordinance are declared to be severable.
2 5.77.030 Definitions.

The definitions in this Chapter shall be as defined in Section 5.76.040 of the Municipal Code. All definitions pertaining to cannabis regulation that do not appear in this Section or Section 5.76.040 shall be governed by Business and Professions Code Section 26001, which are hereby incorporated by reference. Additionally, the following definitions apply to this Chapter:
“Applicant” means person applying for a permit under this chapter, including any officer, director, partner, or other duly authorized representative applying on behalf of an entity.
“Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code. “City manager” means the Stanton city manager, or designee. “Commercial cannabis activity” means possession, manufacture, distribution, processing, storing, laboratory testing, cultivating, compounding, packaging, labeling, transportation, dispensing, research and development, delivery, or sale of cannabis or cannabis products for commercial purposes, whether for profit or nonprofit. “Commercial cannabis business permit” or “Permit” means a regulatory permit issued by the city of Stanton pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the city.

The initial permit and annual renewal of a commercial cannabis business is made expressly contingent upon the business’s ongoing compliance with all of the requirements of this chapter and any regulations adopted by the city governing the commercial cannabis activity at issue.
“Continual operation” shall mean the Cannabis Business operates continuously and does not have a closure of operations for more than sixty (60) consecutive days, except for closures that result from mandatory government closures, earthquakes, weather, civil unrest, global pandemics, and other factors beyond the business’s control. "Manager" means any person(s) designated by a Cannabis Business to act as the representative or agent of the Cannabis Business in managing day-to-day operations with corresponding liabilities and responsibilities, and/or the individual in apparent charge of the permitted premises of the Cannabis Business. Evidence of management includes, but is not limited to, evidence that the individual has the power to direct, supervise, or hire and dismiss employees, control hours of operation, creates policy rules, or purchases supplies.
"Owner" means any of the following:
(a) Any person with an ownership interest of ten percent (10%) or more in the Cannabis Business applying for a Permit pursuant to this Chapter; 3 (b) The chief executive officer of an entity, including nonprofits; (c) A member of the board of directors of a for-profit or non-profit entity; (d) All persons within an entity that have a financial interest of ten percent (10%) or more in the proposed Cannabis Business, including but not limited to:
(1) A general partner of a Cannabis Business that is organized as a partnership;
(2) A non-member manager or managing member of a Cannabis Business that is organized as a limited liability company; (3) Any person holding a voting interest in a partnership, association, or limited liability company;
(4) All officers or directors of a Cannabis Business that is organized as a corporation and all shareholders who individually own more than ten percent (10%) of the issued and outstanding stock of the corporation.
“Patient” or “qualified patient” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health and Safety Code Section 11362.22. “State license” means a permit or license issued by the state of California, or one of its departments or divisions, under MAUCRSA and any subsequent state of California legislation regarding the same to engage in commercial cannabis activity. A state license alone will not authorize the holder to operate a cannabis business, as state law also requires a permit or other authorization issued by a local jurisdiction.

5.77.040 Permit requirement—Maximum number of permits.

A. Permit Required. Except as specifically authorized in this chapter, all commercial cannabis activity is expressly prohibited in the city of Stanton. Any commercial cannabis business seeking to operate within the city must first apply for and be issued a commercial cannabis business permit to operate within the city. It is unlawful for any person to engage in, conduct, or carry on any commercial cannabis business or any commercial cannabis activity within the city of Stanton without a commercial cannabis business permit from the city.

B. Maximum Number of Commercial Cannabis Businesses. The city council may set by resolution the maximum number of each type of commercial cannabis businesses that may be permitted to operate at one time in the city. The city council, in its sole discretion, may amend the maximum number at any time. Nothing in this chapter creates a mandate that the city council must issue any or all of the commercial cannabis business permits.
4 5.77.050 Authority to enforce chapter.

The city manager has the authority to administer and enforce this chapter. The city manager may adopt supplemental regulations or policies to implement and interpret this chapter.

5.77.060 Service requirements.

Except as otherwise provided, any notice required to be served on an applicant or permittee under this chapter must be completed by either personal delivery or first class mail. Service by mail is deemed complete at the time of deposit in the mail. Any notice issued to an applicant or permittee may be sent to the mailing address as listed on the application submitted to the city. Failure of any applicant or permittee to receive a properly-addressed notice by mail shall not invalidate any action, decision, determination, or proceeding under this chapter

5.77.070 Application procedure.

A. Application Required. Any person seeking to obtain a permit to operate a commercial cannabis business must submit a written application, signed under penalty of perjury, to the city using a form adopted by the city for that purpose.

B. Application Fee and Refundable Deposit. At the time of filing, each applicant must pay:

1. A nonrefundable application fee established by resolution of the city council to defray the costs incurred by the city in the application process. The application and fee required under this section shall be in addition to any other license, permit, or fee required by any other section or chapter of this code; and,

2. A refundable deposit as established by resolution of the City Council to allow the City access to additional funds, as necessary, to recover administrative fees and costs including but not limited to fees and costs associated with processing an application, processing a permit, and background checks.

C. Application Insufficient to Operate. Submission of an application for a permit does not authorize the operation of a commercial cannabis business unless and until such permit has been properly granted by the city.

D. Application Contents. The city manager may adopt procedures governing applications for commercial cannabis business permits, including requiring certain information and documentation. At minimum, the application for a commercial cannabis business permit must contain or be accompanied by the following information:

1. The name and address for each commercial cannabis activity business owner and an explanation of the legal form of business ownership (e.g., individual, partnership, corporation, limited liability company, etc.). 5 2. If the applicant is not a natural person, its operative governing documents and any fictitious business statement.

3. The proposed hours of operation.

4. A description of any specific state cannabis license that the business either has obtained or plans to obtain. The business must describe how it will meet the state licensing requirements, and provide supporting documentation as required by the city manager.

5. The proposed address for the commercial cannabis business.

6. The name and address of the owners of the real property where the proposed commercial cannabis business is to be located, including unit or suite number, if applicable. In the event the applicant is not the owner of the property, the application must be accompanied by a notarized letter of intent from the owner of the proposed property for the Cannabis Business demonstrating the property owner’s (1) acknowledgement that a Cannabis Business is being proposed as the business for the property; (2) consent for a Cannabis Business to operate at the property if awarded a Permit; and (3) acknowledgement that the property owner accepts any and all risks and liabilities, including but not limited to any Federal law enforcement action, associated with permitting a Cannabis Business to operate at the property.

7. Whether the applicant has had any license or permit relating to cannabis denied, suspended, or revoked by any agency, board, city, county, territory or state.

8. Proposed community benefits that will be provided to the City. Such community benefits shall be to offset secondary, nuisance issues related to cannabis and should be provided to improve or further public safety and/or qualify of life for Stanton businesses and residents, as may be determined by the City.

9. Authorization for the city, its agents, and employees to seek verification of the information contained in the application.

10. The applicant and each cannabis business owner, as well as each employee who makes or will make operational or management decisions that directly impact the business, must undergo a background check for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests to be considered as set forth in this chapter. No person may be issued a commercial cannabis business permit unless they have first cleared the background check.

11. Such other identification and information as the city may reasonably require in order to verify the truth of the matters herein specified and as required to be set forth in the application.
6 12. Security Plan. A description and documentation of how the applicant will secure the premises twenty-four hours per day, seven days per week, and how waste derived from any cannabis commercial activity will be disposed of in a manner to ensure it may not be utilized for unlawful purposes. The security plan shall include, but is not limited to, the following:
a. Confirming that burglar alarms are operational and monitored by a licensed security company at all times and providing contact information for each licensed security company;
b. Identifying a sufficient number of licensed security personnel who will monitor the interior and exterior of the commercial cannabis business; c. Confirming that the licensed security personnel will regularly monitor the parking lot and adjacent exterior of the property to ensure that these areas are free of individuals loitering or causing a disturbance and are cleared of employees and their vehicles one-half hour after closing;
d. Establishing limited access areas accessible only to authorized personnel including security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products;
e. Storing all finished cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, immediate sale, if applicable based on the type of business;
f. Providing tamper-proof and tamper-evident packaging for finished cannabis products;
g. Preventing off-site impacts to adjoining or near properties; and h. Limiting the amount of cash on the premises.

13. For commercial cannabis businesses applying for a permit to operate a delivery service:
a. Listing of all vehicles and devices to be used for delivery of cannabis or cannabis product within the city, which includes the vehicle’s make, model, year, license plate number and vehicle identification number. b. Identifying all persons who will deliver cannabis or cannabis product in the city. Such individuals must be at least twenty-one years of age at the time of submittal of the application.

14. An executed release of liability and hold harmless in the form as approved by the City Attorney, which shall include, but not be limited to, the following; 7 a. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any Permit pursuant to this Chapter or the operation of any property on which a Cannabis Business is located pursuant to this Chapter. Before obtaining a Permit and as a condition to the Permit, the Applicant or its legal representative shall execute an agreement that provides the following, without limitation:
(i) Indemnifying the City from any claims, damages,
injuries or liabilities of any kind associated with the operation of the Cannabis Business or the prosecution of the Applicant or Permittee or its Managers or Employees for violation of Federal or State laws;
(ii) Agreeing to defend, at its sole expense and with legal representation selected by the City, any action against the City, its elected officials, agents, officers, and employees in any way related to or in connection with the processing or approval of Permit;
(iii) Agreeing to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to or in connection with the City’s approval of a Permit. Agreeing that the City’s participation in the defense of any such action shall not relieve the Applicant or Permittee of its obligation hereunder; and,
(iv) Acknowledging that the application, scoring, and
potential awarding of a Permit may be subject to challenge by other Applicants based upon the administrative appeal procedure, as set forth in this Chapter. Acknowledging that by nature of the City having administrative appeals, the appeal procedure may necessarily affect the Permittee’s licensing process, including, but not limited to, scoring, ranking, and ultimate ability to obtain a Permit, and that the Permittee acknowledges and accepts the risks with accepting a Permit. Further acknowledging that by being selected and qualifying as a top Applicant for a Permit in no way creates any rights in or entitlement to the Permit, which is subject to suspension or revocation as provided in this Chapter.

15. A statement in writing and dated and signed by the person providing the information that he or she certifies under penalty of perjury that all information contained in the application is true and correct

5.77.080 Review of applications—Grounds for denial—Right to appeal—Notice of denial.

B. Review Committee Established. Once an application has been deemed complete, the application shall be reviewed, analyzed, and scored by the Cannabis Application Review Committee. The Cannabis Application Evaluation Committee shall be composed of at a minimum three individuals with no pecuniary interest in any application. Other criteria for the Evaluation Committee may be adopted by the City Council via Resolution. Members of a Cannabis Application Evaluation Committee shall be appointed by the City Manager to review and score each application based on the general criteria identified in this Chapter.

C. Review Criteria Established. The City Manager shall be responsible for developing and proposing objective review criteria, which, at a minimum, demonstrates an applicant’s ability to operate safely and in a responsible manner that reflects the community and needs of the City, and demonstrates an applicant’s financial longevity and profitability. The objective review criteria shall be submitted to and approved by the City Council through the adoption of a resolution. The specific criteria and weighting (points per criteria) for each Permit type will be determined prior to the commencement of the application period and posted publicly.

1. The following general criteria shall be used to rank applications, including, but not limited to the following:
a. Previous adult-use retail experience that was subject to state cannabis regulation, or experience in a similarly state-regulated activity (by way of example and not limitation, alcohol sales).
b. Longevity and profitability in other jurisdictions in which the Applicant operates a Cannabis Business, if applicable.
c. Community engagement in terms of provision of providing meaningful community benefits.
d. Incorporating social equity into the Cannabis Business, such as, including, without limitation, providing a living wage, collective bargaining rights, comprehensive employee benefits and trainings, hiring practices ensuring promotion of diversity of employees, inclusionary programs which support a diverse work force, and compliance with local, state, and federal employee non-discrimination policies.

2. Each application will be independently scored by the Cannabis Application Review Committee. At any time during the application review process, the City shall have the right, but shall not be required, to verify the accuracy of any portion or all of the information provided in the application, through any reasonable means. The scores awarded by the Cannabis Application Evaluation Committee shall be totaled and averaged for each Applicant. The Applicants shall then be ranked from highest to lowest based on their final averaged scores. The final scores issued by Cannabis Application Evaluation Committee are final.
9 3. The top ranked Applicants that have passed the comprehensive background checks will be reviewed and considered for the issuance of a Permit by the City Manager (in this specific instance, the term “City Manager” does not include their designees and is limited to the individual who is actually appointed as the City Manager).

However, nothing herein requires the City to approve any Permits or to approve the maximum number of Permits. The decision of the City Manager is final, unless appealed as set forth in this Chapter.

4. Issuance of a Permit under this Chapter is subject to compliance with the California Environmental Quality Act (“CEQA”). Applicants shall be responsible for all costs associated with CEQA compliance, including but not limited to environmental analysis and studies, preparation of the appropriate CEQA documents, and City review time of the environmental document, including but not limited to any attorney review.

D. Grounds for Denial. After the completion of the city’s investigation, the city manager shall deny the issuance a commercial cannabis business permit if any of the following findings are made:

1. The requirements of this chapter have not been satisfied, including if the applicant failed to submit a complete application or failed to pay the requisite application fee.

2. The applicant, any Owner, or any proposed manager has had any cannabis-related or any other type of business, or professional license or permit denied, suspended, or revoked for cause by any agency, board, city, county, territory, or state.

3. The applicant, any Owner, or any proposed manager has been convicted of a violent felony as defined by California Penal Code Section 667.5, or equivalent offenses in other states.

4. The applicant, any Owner, or any proposed manager has been convicted of a crime involving dishonesty, fraud or deceit, including, but not limited to, fraud, forgery, theft, or embezzlement as those offenses are defined in California Penal Code Sections 186.11, 470, 484, and 504a, or equivalent offenses in other states.

5. The applicant, any Owner, or any proposed manager has been convicted of any felony offense involving the illegal sale, distribution, or possession of a controlled substance, not including cannabis-related offenses.

6. The applicant, any Owner, or any proposed manager has been convicted of any offense involving the abuse (in any manner including physical, sexual, or emotional), neglect, exploitation, or the willful harming or injuring of a child or a minor, including, but not limited to those acts as defined in the Child Abuse and Neglect Reporting Act (Penal Code section 11164 et seq.).

7. The applicant, any Owner, or any proposed manager has been convicted of any offense involving human trafficking.
10 8. The applicant, any Owner, or any proposed manager has made a false, misleading or fraudulent statement or omission of fact to the city in the application, or in the permit application process.

9. The commercial cannabis business does not comply with all applicable state and local laws and regulations, including, but not limited to, health, building and safety, zoning, and fire requirements and standards.

10. The applicant, any Owner, or any proposed manager is a natural person under twenty-one years of age.

E. Denial of Application. If the city manager determines that an applicant does not fulfill the requirements as set forth in this chapter, the city manager must deny the application.

F. Right to Appeal. An applicant may appeal the city manager’s decision denying an application for a commercial cannabis business permit in accordance with the procedures set forth in this chapter.

G. Notice of Denial. The city must serve the applicant with a written notice of denial. The notice must state the reasons for the denial, the right of the applicant to appeal the decision, and that the city manager’s decision is final if no written appeal is timely submitted to and received by the city, pursuant to Section 5.77.130 of this chapter.

5.77.090 Permit issuance.

A. Issuance of a commercial cannabis business permit is conditioned upon the applicant first obtaining all required land use approvals, a city business license, and, if applicable, Orange County fire authority approval. Before issuing any permit, the city manager must determine that all other permits, licenses, and conditions of approval have been met or are in good standing. Issuance of a commercial cannabis business permit does not create a land use entitlement.

B. Community Benefit Agreement. As a condition to being issued a Permit, within forty-five (45) days of being issued a Permit, the Permittee shall enter into a community benefit agreement with the City contractually memorializing the community benefits they shall provide to the City, as noted in their applications, as well as a schedule of implementation. Permittees may provide a greater level of community benefit than noted in their applications; whether the benefit is a “greater level” shall be determined by the City in its sole and absolute discretion. The City also has the discretion to accept an in-lieu fee from a Permittee to satisfy the community benefit requirement. Implementation of such community benefits shall be required within sixty (60) days of being issued a Permit and shall continue throughout the term of the Permit and any renewal thereof. The City shall use any in-lieu fees to improve or further public safety and/or qualify of life for Stanton businesses and residents, in its sole and absolute discretion. 11 Permittee’s required implementation of the community benefits shall be required notwithstanding whether a Permittee is operating a cannabis business or not. A Permittee’s failure to abide by any of the terms of its community benefit agreement with the City shall constitute grounds for suspension or revocation of the Permit.

C. Zone Clearance. Applicants approved for a Permit shall submit a zone clearance application in accordance with the following procedure:

1. Community Development Director Action. The Community Development Director may issue a zone clearance only after determining that the request complies with all applicable standards and provisions for the category of use in the zoning district of the subject parcel, in compliance with this Zoning Ordinance.

2. All interior and exterior building improvements, including façade improvements, shall be reviewed for substantial conformance with the Permittee’s application and proposal. Minor deviations may be approved by the City Manager.

3. All interior and exterior building improvements, including façade improvements, shall be reviewed for substantial compliance with the findings in the City’s site plan and design review chapter of this Code prior to issuance of a zone clearance.

The zone clearance for the location does not excuse compliance with any other requirement in the Zoning Ordinance or Building Code and any additional permits required may be obtained after the Permit is issued but before operation.

4. Separate Cannabis Businesses may be located within the same building so long as they have independent suites and the City finds that multiple Cannabis Businesses located in the same building are not detrimental to the health, safety, or welfare of the surrounding neighborhood. The City may impose conditions as deemed reasonably necessary to ensure compliance with the requirements of this Chapter.

5. A Cannabis Business may be located within multiple buildings so long as the applicant obtains all entitlements and approvals necessary from all state and local agencies. Any other use that is connected to a Cannabis Business shall be ancillary to the retail use. At a minimum, the City will require the buildings to be immediately adjacent to each other and exist on one lot. To ensure compliance with this Chapter, the City may require the applicant to obtain additional entitlements, including, but not limited to a lot tie. In no instance may an applicant occupy multiple buildings and/or lots not in compliance with this Section.

5.77.100 Permit—Validity—Expiration.

A. A commercial cannabis business permit is valid upon issuance and continues in effect until it expires automatically twelve (12) months after the date of its issuance, unless extended or sooner suspended, or revoked under this chapter.

B. If a Permittee has not opened its respective Cannabis Business and become operational within twelve (12) months of securing City Manager approval of a 12 Permit, all rights to the Permit shall terminate and shall be forfeited. However, in the sole discretion of the City Manager, upon a showing by Permittee of significant and diligent progress towards opening the Cannabis Business (e.g., evidence demonstrating substantial funds invested into the Cannabis Business opening, applications submitted for any necessary licenses or permits, and/or substantial steps taken towards obtaining all necessary approvals), the City Manager may provide one, six-month extension of time to become operational.

The City may also provide up to one, six-month extension of time to become operational if there is an ongoing local emergency or force majeure that results in substantial delay in processing any of the necessary approvals for the Permit. For purposes of this chapter, “force majeure” is an unforeseeable circumstance that was outside of the Permittee’s control that the Permittee could not reasonably anticipate, including, without limitation, acts of God, war, pandemics, and strikes. It does not include issues such as, without limitation, problems with financing. The total time of any extension provided pursuant to this subsection shall not exceed a maximum of two years after the City Manager’s original approval of the Permit. Failure to receive any extension shall render the Permit expired.

C. Notwithstanding the foregoing, any Permittee that received a Permit in November 2021 shall be required to be operational by May 31, 2023. Failure to become operational by May 31, 2023 shall result in the automatic expiration of the Permit, except that a Permittee may apply for an additional six-month extension due to an ongoing local emergency or force majeure, as provided above. For purposes of this section, “operational” means that the business is regularly and consistently open for retail business for a substantial portion of the month (i.e., at least 120 hours a month).

D. Waitlist rule. If any of the issued Permits have expired, terminated or become forfeited as provided in subsections (A), (B), or (C) above, the City has the sole and absolute discretion to consider the next ranked Applicant from the most recent screening application process; however, once the maximum number of Permits has been issued by the City, the waitlist shall expire two years thereafter.

E. Nothing herein requires the City to draw from a waitlist; the City has the sole and absolute discretion to forego a waitlist and re-open the application period to accept new applications at any time.

5.77.110 Renewal of cannabis business permits.

Failure to submit a renewal application prior to the expiration date of the permit will result in the automatic expiration of the permit on the expiration date. Permittees that were issued permits in November 2021 shall submit their application for renewal by March 31, 2023. Any permittee allowing his or her permit to lapse or expire shall be required to submit a new application and pay the corresponding initial application fees. The City is 13 not required to send a renewal notice to any person subject to the provisions of this Section. Failure to send such notice shall not relieve nor excuse the Cannabis Business from complying with its obligations under this Section.

B. Renewal Application Requirements. A permittee may apply for renewal of a permit by submitting a written application, under penalty of perjury, to the city manager, who must conduct an investigation. The city manager may adopt renewal application forms and procedures for this purpose. The applicant must pay a fee in an amount to be set by the city council to defray the costs of processing the renewal permit application. A permittee submitting a renewal application is required to update the information contained in the original permit application and provide any new or additional information as may be reasonably required by the city manager in order to determine whether the permit should be renewed, including but not limited to documentation evidencing that the Permittee has paid all applicable taxes and fees, including any taxes and fees set forth in Chapter 5.76, and that Permittee has fulfilled its community benefit obligations.

C. Decision on Renewal Application. The city manager must investigate the renewal application and render a decision no later than the date of expiration of the permit.

D. Renewal. The city manager will renew a permit if he or she confirms the permittee has been and remains in current compliance with all conditions of the permit, with all provisions of this chapter, and with all state and local laws applicable to cannabis businesses.

E. Conditions. The city manager may impose additional conditions to a renewal permit, if he or she determines it to be reasonably necessary to ensure compliance with state or local laws and regulations or to preserve the public health, safety or welfare.

F. The decision of the City Manager is final, unless appealed as set forth in this Chapter.

5.77.120 Grounds for suspension, revocation, and nonrenewal.

A. The city manager may suspend, revoke, or refuse to renew a commercial cannabis business permit in any of the following circumstances:

1. The city manager makes any findings necessary to deny a permit under Section 5.77.080 of this chapter.

2. Except for permittees that received their permits in November 2021, the commercial cannabis business has not been in regular and continuous operation in the four months before the renewal application is submitted.

3. A permittee failed to comply with the requirements of this chapter or of any regulations adopted pursuant to this chapter, or any term or condition imposed on the permit.
14 B. Decision Appealable. A permittee may appeal the city manager’s decision denying a renewal
application, or suspending or revoking a permit, in accordance with the procedures set forth in this chapter.

C. Notice. The city manager must serve the permittee with a written notice of nonrenewal, suspension, or revocation. The notice must state the reasons for the action, the effective date of the decision, the right of the applicant to appeal the decision, and that the city manager’s decision will be final if no written appeal is timely submitted to and received by the city, pursuant to Section 5.77.130 of this chapter. This notice is effective ten calendar days following the date of service of the notice. If an appeal is timely and properly filed in accordance with this chapter, then the effective date of the notice is stayed.

5.77.130 Appeals.

Any appeal right provided for in this chapter must be conducted as set forth in this section.

A. Submission of Appeal.

1. An applicant or permittee may appeal the decision of the city manager to a hearing officer to suspend, revoke, or deny, or impose conditions upon a commercial cannabis business permit, by filing with the city clerk a written notice of appeal within fifteen calendar days from the date of service of the notice.

2. The notice of appeal shall be in writing and signed by the person making the appeal, or his or her legal representative, and shall contain the following:
a. The name, address, telephone number of the appellant; b. A statement of whether the appellant is an applicant or permittee of a commercial cannabis business;
c. A true and correct copy of the notice of the decision or action issued by the city manager that the appellant is appealing; d. A specific statement of the reasons and grounds for making the appeal in sufficient detail to enable the hearing officer to understand the nature of the controversy, the basis of the appeal, and the relief requested; and e. All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer to consider at the hearing.

3. At the time of filing the appellant must pay the designated appeal fee, which may be established by resolution of the city council.

4. In the event a written notice of appeal is timely filed, the suspension, revocation, denial, or nonrenewal is not effective until a final order has been rendered and 15 issued by the hearing officer. If no timely, proper appeal is filed in the event of a decision of denial, the permit expires at the conclusion of the term of the permit. If no timely, proper appeal is filed in the event of a suspension or revocation, the suspension or revocation is effective upon the expiration of the period for filing a written notice of appeal.

5. Failure of the applicant or permittee to file a timely and proper appeal, or the requisite fee, is a waiver of the right to appeal the decision of the city manager and a failure to exhaust all administrative remedies. In this event, the city manager’s decision is final and binding.

B. Hearing Procedure.

1. Administrative hearing officers must be selected in a manner that avoids the potential for pecuniary or other bias.

2. Upon receipt of the written appeal, the city clerk, in their sole discretion, shall choose the date and set the matter for a hearing before a hearing officer.

Once set, the hearing date shall only be continued upon a written showing for good cause by the requestor. For purposes of this subsection, the term "good cause" shall mean the hearing date must be continued due to circumstances outside of the requestor's control.

The appeal must be held within a reasonable time after date of filing. The City must notify the appellant of the date, time, and location of the hearing at least ten calendar days before the date of the hearing.

3. Upon selection of a hearing officer and date, the City Clerk will submit to the hearing officer the appellant’s appeal and documentation, if any. This shall constitute appellant’s written submittal to the hearing officer. The City may submit its own written response to the appeal along with any evidence it wishes the hearing officer to consider, if any, at least three (3) calendar days before the hearing.

4. The hearing officer will preside over the appeal in accordance with the rules of this Chapter. The hearing officer conducts their review of the decision to determine whether there was an abuse of discretion. Abuse of discretion is established if the City has not proceeded in the manner required by law, the decision is not supported by the findings, or the findings are not supported by the evidence. The hearing officer reviews the decision to make sure there is substantial evidence that reasonably supports the decision, is credible, and of solid value. The hearing officer does not substitute their judgment for that of the Evaluation Committee or re-weigh the evidence or rescore the application. If the hearing officer determines that there was an abuse of discretion, the decision shall be deemed cancelled.

5. The hearing shall be conducted as follows:
a. No new matter or evidence shall be received or considered by the hearing officer that was not addressed or identified in the appeal unless the appellant can show why such new matter or evidence could not with due diligence have been argued or produced at the time of filing the appeal.
16 b. Appellant bears the burden of proof to establish that the City abused its discretion by issuing the decision.
c. At the hearing, the parties may present argument, witnesses and evidence relevant to the decision appealed. Formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. However, rules of privilege are applicable to the extent they are permitted by law; and irrelevant, collateral, and repetitious evidence may be excluded.

C. Hearing Officer’s Decision.

4. A copy of the hearing officer’s decision must be served by first class mail on the appellant. Failure of a person to receive a properly addressed hearing officer’s decision does not invalidate any action or proceeding by the city pursuant to this Chapter.

5.77.150 Transfer or Assignment of cannabis business permit.

A. A commercial cannabis business permit issued under this chapter is valid only as to the permittee and approved location.

B. Multiple operating locations for the same cannabis business require separate permits.

C. No cannabis business permit may be sold, transferred, or assigned by a permittee, or by operation of law, to any other person or entity, except as provided in this Chapter. Any such sale, transfer, or assignment, or attempted sale, transfer, or assignment is deemed to constitute a voluntary surrender of such permit and such permit shall thereafter be null and void.

D. The assignment of or attempt to assign any Permit issued pursuant to this Chapter is unlawful until a Permittee has been in continual operation for four years, and any such assignment or attempt to assign a Permit before that time shall render the Permit null and void, unless approved by the City Manager, or by variance as outlined in subsections (E) and (F) below. Assignment shall be defined as a cumulative sale or 17 transfer of fifty-one percent or more equity interest in the permitted entity. For permissible transfers of ownership before or during the four-year period, the Owners shall maintain a comparable level of cannabis experience as conveyed in the Permittee’s application. The City Manager shall review changes in the level of the Owners’ cannabis experience, and may approve the changes. After the four years of continual operation, assignment is permitted; provided however that any such assignment that exceeds ninety percent of interest in the permitted entity shall require review by the City Manager to ensure maintenance of the same standard of operation.

E. Assignments prior to compliance with the required four years of continual operation may be approved by the City Manager in the event of the death, disability, marriage, divorce, or domestic partnership of one of the Owners named on the Permittee’s application. The City Manager shall review these requested assignments to ensure maintenance of the same standard of operation, and may approve the changes.

F. Variance Process. Notwithstanding the above, a Permittee may apply to the Planning Department for approval of a prohibited assignment not to exceed a cumulative assignment or transfer of up to eighty-five percent of interest in the Permit for the first two years of continual operation, and one hundred percent cumulative assignment or transfer after two years of continual operation, or as otherwise allowed by this Chapter. Following a public hearing on the proposed assignment or transfer, the City Manager may approve the request if it finds that:

1. The same standard of business operation will be maintained;

2. The ownership shall maintain a comparable level of cannabis experience as conveyed in the Permittee’s application;

3. The assignment would promote the public interest and maintain the integrity of the City’s Commercial Cannabis Permit application scoring and licensing process; and

4. The findings that supported issuance of the Permit can still be made, including requiring any new Owner to pass the comprehensive background check as set forth in this Chapter.

G. The decisions of the City Manager are final.

H. Merger or Consolidation with Publicly Traded Companies. With the understanding that publicly traded companies have notably different regulations, operational structure, and ownership structure, compared to privately held companies, the merger into, consolidation with, or transfer of ownership to a publicly traded company shall not be considered a prohibited assignment of a Permit under this section as long as the following conditions are met.

1. At the time the merger, consolidation, or transfer occurs, the Permit Owners listed on the Permit or application, whichever is most recent (“Permit Owners”), 18 prior to the merger, consolidation, or transfer shall be required to hold at least three and one-half percent of the shares of the publicly traded company.

2. The Permit Owners prior to the merger, consolidation, or transfer shall be substantially involved in the operations of the company for the first four years of continual operation, unless authorized through the variance process above.

3. At the time the merger, consolidation, or transfer occurs, at least one of the Permit Owners prior to the merger, consolidation, or transfer shall hold a seat on the board of directors of the publicly traded company. If that board member steps down or is no longer a member of the board of directors, the company shall notify the City Manager of this change, and to the extent possible, one of the other Permit Owners prior to the merger, consolidation, or transfer shall be appointed to the board of directors.

4. After merger, consolidation, or transfer, the Cannabis Business shall continue to adhere to the business plan, security plan, and design concept sections included in the applicable application for the Permit.

5. After merger, consolidation, or transfer, the branding of the Cannabis Business, including the name of the business as it operates in the City, shall be required to be the same as identified in the applicable application for the Permit. At no time, unless after four years of continual operation, unless approved by City Manager, shall the branding, including the name of the Cannabis Business, be allowed to deviate from what was identified in the application for the Permit

6. Documentation of the satisfaction of the above-referenced conditions shall be provided to the City when the change occurs. If the change occurs prior to the issuance of a Permit, documentation of the satisfaction of the above-referenced conditions shall be provided at the time a Permit is applied for.

7. No Permittee shall operate, conduct, manage, engage in, or carry on a Cannabis Business under any name other than the name of the Cannabis Business specified in the permit and/or any "doing business as" or "DBA" provided in the permit application, unless specified in this Chapter.

I. All assignments under this Section shall be subject to an non-refundable assignment fee adopted by the City Council by resolution. The fee shall be sufficient to defray the costs incurred by the City for the application and reviewing process. J. The City may approve the transfer of a Cannabis Business to another location in the City as long as the locational and zoning requirements of this Chapter and State law are met, and the new location meets or exceeds the standards and operational characteristics of the current location. The City Manager may approve or deny requests to transfer the Permit to another location, which decision shall be final, subject to a right to appeal as provided in this chapter.
19 5.77.160 Fees.

The city council may establish by resolution, and from time to time may amend, the fees for the administration of this chapter, including, but not limited to, original application, renewal application, inspection fees, assignment fees, and appeal fees. Fees required by this chapter are in addition to any other fees that may be required under any other section, provision, or chapter of this code. No person may commence or continue any commercial cannabis activity in the city without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. The amount of any fee, cost or charge imposed pursuant to this chapter is a debt to the city of Stanton that may be recovered by any means authorized by law.

5.77.170 General operating requirements.

All commercial cannabis businesses in the city must operate in conformance with the following general operating requirements:

A. Hours of Operation. Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the city.

B. Restriction on Consumption. No person may consume, or permit others to consume, any cannabis on the premises of any commercial cannabis business.

Despite the prior provision, a commercial cannabis business holding a state license for commercial cannabis activity involving medicinal cannabis may allow on the premises and sell cannabis or cannabis products to any person eighteen years of age or older who possesses a valid government-issued identification card, and either a valid county-issued identification card under Section 11362.712 of the Health and Safety Code or a valid physician’s recommendation for himself or herself or for a person for whom he or she is a primary caregiver.

D. Alcohol and Tobacco Sales. A commercial cannabis business may not sell alcoholic beverages or tobacco products on or at any premises permitted under this chapter.

F. Outdoor Cultivation. A permittee may not cultivate cannabis outdoors. No permit may be issued pursuant to this chapter for outdoor commercial cannabis cultivation.
20 G. Display and Storage. No cannabis, cannabis products, or graphics depicting cannabis or cannabis products may be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted.

H. Tracking of Product and of Gross Sales. Each commercial cannabis business must implement a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business, including such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed reasonably necessary by the city. Each commercial cannabis business must ensure that such information is compatible with the city’s recordkeeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the city’s consultant before being used by the permittee.

I. Compliance with State Laws and Regulations. All cannabis and cannabis products sold, distributed, or manufactured must be cultivated, manufactured, and transported by licensed facilities that maintain operations in full conformance with the state and local regulations.

J. Emergency Contact. Each commercial cannabis business shall provide the city manager or designee(s) with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day.

K. Security Measures. All cannabis businesses shall maintain a commercial burglar alarm monitoring system, and install a video surveillance system, as approved by police services, which shall continuously surveil the immediate exterior of the site as well as all areas of the interior (excepting the restroom(s)), including all locations where points of sale occur, twenty-four (24) hours. Footage from such surveillance shall be retained for at least forty-five (45) days.

L. Security Breach. A cannabis business shall notify the Orange County sheriff’s department as soon as possible, and no later than twenty-four hours, after discovering any of the following:

1. Diversion, theft, loss, or any criminal activity involving the cannabis or cannabis product or any agent or employee of the permittee;

2. The loss or unauthorized alteration of records related to cannabis or cannabis product, registered qualifying patients, primary caregivers or employees or agents;

3. Significant discrepancies identified during inventory; or

4. Any other material breach of security.
21 M. Background Checks.

2. Owner and Manager. Prior to the addition of a new or additional Manager or Owner (when permitted by this Chapter), Permittee must conduct a comprehensive background check demonstrating compliance with the requirements of Section 5.77.080(D). For each new or additional potential Manager and Owner, Permittee must submit the results of the comprehensive background check to the City. The City will have twenty-one (21) days to review and approve the background check for compliance with this Chapter.

N. Odor Control. Odors must be contained on the property on which the commercial cannabis activity is located. If the city receives any odor complaints, the cannabis business is required to cooperate with the city to correct odor concerns. This may include, without limitation, paying for a third party consultant, as selected by the City, to measure the level of odor at the business and/or make findings and/or a plan on how to address such odor issues. The city may require, among other things, installation of odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility if reasonably necessary. Unresolved or repeated odor complaints may be basis for suspension, revocation, denial, or nonrenewal of a permit.

O. Display of Permit and City Business License. Each business must maintain a business license from the city. The original copy of the commercial cannabis business permit issued by the city pursuant to this chapter and the city-issued business license must be prominently displayed inside the commercial cannabis business in a location readily-visible to the public.

P. Records and Recordkeeping. Each business must maintain for a minimum of three years a written accounting or ledger of all cash, receipts, credit card transactions, and reimbursements (including any in-kind contributions), as well as records of all operational expenditures and costs incurred by the permittee, in accordance with generally accepted accounting practices and standards typically applicable to business records, which shall be made available to the city during business hours for inspection as provided for in this chapter.

Q. Other Permits and Approvals. Before the establishment of any commercial cannabis business or the operation of any such business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency 22 which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.

1. All applications submitted to the City for any entitlements required under this Chapter shall be, at a minimum, in substantial compliance with the application for a Permit, its contents, and any attachments thereto. The City Manager, in their sole discretion, may grant an exception to the substantial compliance standard if it can be shown by the applicant why there is good cause to grant the exception. For purposes of this subsection, the term "good cause" shall mean the hearing date must be continued due to circumstances outside of the requestor's control. The City may obtain all information and documentation from the applicant necessary to determine whether good cause exists.

R. Changes to Premises. Permittee shall not make a physical change, alteration, or modification of the permitted premises without the prior written approval of the City. If a permitted premises is to be changed, modified, or altered, the Permittee is responsible for applying for and securing all necessary City approvals, project plan approvals, and permits.

S. Insurance. Maintain commercial general liability insurance, at coverage limits and with conditions thereon determined reasonably necessary by the city manager.

T. Indemnity. By accepting the permit, each permittee agrees to indemnify, defend (at permittee’s sole cost and expense), and hold the city of Stanton, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses that arise out of, or which are in any way related to, the city’s issuance of the commercial cannabis business permit, the city’s decision to approve the operation of the commercial cannabis business or activity, the process used by the city in making its decision, or the alleged violation of any federal, state, or local laws by the commercial cannabis business or any of its officers, employees, or agents.

U. Changes to Application Information. If, during the term of a permit, the permittee proposes any change in information submitted on the original or renewal application, the permittee must notify the city in writing of any such proposed change, and same must be approved by the city manager before the change takes place. This includes, without limitation, any change to the people or vehicles used for a delivery service and any change to the security plan.

V. Marketing and Advertising.

1. All advertisements and marketing, including off-site advertising signs, on-premises signs, labels, and billboards by Permittee shall comply with this Chapter and any regulations implemented by the State or any of its divisions or departments, and California Business and Professions Code Chapter 15 of Division 10, as may be amended from time to time.
23 2. Advertisements and marketing may not be designed to appeal to children or encourage children to consume cannabis goods, contain any false or misleading statements, or make any misrepresentations.

W. Additional Operating Requirements. The city manager may impose additional operational requirements upon any permit as determined to be reasonably necessary to protect the public health, safety, and welfare of the community.

5.77.180 Specific operating requirements.

A. Storefront Retailers. Each storefront retailer in the city must operate in conformance with the following operating requirements:

1. Entrances into a storefront retailer must be locked with entry strictly controlled. Sally port doors with automated locking systems must be used to separate the reception area from the retail area.

2. Uniformed licensed security personnel must be employed to monitor site activity, control loitering and site access, and to serve as a visual deterrent to unlawful activities. Security personnel may be allowed to carry firearms if authorized by the county sheriff.

3. All cultivation, manufacturing, distribution, and retail activities performed by a permittee under a Type 12-microbusiness state license shall occur on the same permitted premises. areas of the premises for manufacturing and cultivation shall be separated from the distribution and retail areas by a wall and all doors between the areas shall remain closed when not in use.

B. Delivery Retailers. All delivery retailers in the city must operate in conformance with the following operating requirements:

1. Any person who delivers cannabis to a customer must have in possession a copy of the permit, which must be made available upon request to law enforcement.

2. Delivery vehicles may not advertise any activity related to cannabis nor may they advertise the name of the permittee.

3. All orders to be delivered shall be packaged by the names of the customer.

4. The Permittee shall maintain a current list of all vehicles and devices to be used for delivery of cannabis or cannabis product within the city, which includes the vehicle’s make, model, year, license plate number and vehicle identification number. This list shall be available for City inspection upon request. 24 5. The Permittee shall maintain a current log of all persons who deliver cannabis or cannabis products in the city. This log shall be available for City inspection upon request.

C. Cultivation Facilities. Each cultivation facility in the city must operate in conformance with the following operating requirements:

1. Outdoor commercial cultivation is prohibited;

2. Cannabis plants may not be visible from a public or private road, sidewalk, park, any common public viewing area, or adjacent private property.

5.77.190 Permittee responsibility.

It is the responsibility of the permittees to ensure that a commercial cannabis business complies with all applicable state and locals laws, and any regulations promulgated thereunder, at all times. In construing and enforcing this chapter and any regulations promulgated under this chapter, the act, omission, or failure of an agent, officer, representative, or other person acting for or employed by a permittee, within the scope of his or her employment or office, shall in every case be deemed the act, omission, or failure of the permittee.

5.77.195 Discourage Illegal, Criminal, or Nuisance Activities.

A. For purposes of this Section, "illegal, criminal, or nuisance activities" includes, but is not limited to, disturbances of the peace, public intoxication, drinking alcoholic beverages in public or on the site of the permitted premises, smoking or ingesting cannabis goods in public or on the site of the permitted premises, illegal drug activity, vandalism, obstruction of the operation of a another business, harassment of passersby, gambling, prostitution, public urination, lewd conduct, drug trafficking, excessive loud noise, litter, or any other behavior that adversely affects or detracts from the quality of life for adjoining residents, property owners, or businesses.

B. Every Permittee shall take reasonable steps to discourage persons on the site of the Cannabis Business, and within any parking areas under the control of the Permittee, from engaging in illegal, criminal, or nuisance activities.

C. Property maintenance. The Cannabis Business site, building, premises, and all associated parking areas, including the adjacent area under the control of the Permittee and any sidewalk or alley, shall be maintained in an attractive condition and shall be kept free of obstruction, trash, litter, and debris.

D. Graffiti. Permittee shall remove graffiti from the premises within forty-eight (48) hours of its occurrence.

E. Nuisances. Commercial cannabis activity shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, vibration, or other negative impacts, and shall not be hazardous due to use or storage of 25 materials, processes, products, chemicals, or wastes. Commercial Cannabis Activity shall not adversely affect health, safety, or welfare of any persons engaged in the operation of the Cannabis Business.

5.77.200 Inspection and enforcement.

A. Violations Unlawful. It is unlawful and declared a public nuisance for any person to operate, conduct, or maintain a commercial cannabis business contrary to the provisions of this chapter.

B. Right of Entry. Personnel of the city’s public safety department, community development department and administrative services and finance department or other agents or employees of the City, as well as the police department and fire department (“Inspecting Authorities”), have the right to enter the location of all interior and exterior portions of any commercial cannabis business, and all rooms, buildings, structures, and portions thereof, during regular business hours, for the purpose of making reasonable unscheduled inspections to verify and enforce compliance with this chapter and to ensure that the business is safe, clean, sanitary, and in good repair. These Inspecting Authorities shall also have unimpeded access to inspect all on-site locations, records, reports, documents, points of sale, product, surveillance footage, and any other access deemed necessary to ensure compliance with this Chapter.

C. Interference with Inspection. It is unlawful for any person having responsibility over the operation of a commercial cannabis business, to impede, obstruct, interfere with, or otherwise not to allow, the city to conduct an inspection and, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this chapter or under state or local law. Failure to cooperate with or refuse an inspection is subject to suspension, revocation, or nonrenewal of a permit. It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this chapter.

D. Criminal Penalties. Any person who violates any provision of this chapter is guilty of a misdemeanor punishable by a fine of up to one thousand dollars, or by imprisonment in the County Jail not exceeding six months, or by both such fine and imprisonment, except the city attorney may prosecute a violation of this chapter as an infraction, in his or her discretion, subject to the penalties in Chapter 1.10 of this code.

E. Administrative Citations. Administrative citations may be issued for violations of the provisions of this chapter, as set forth in Chapter 1.12 of this code; provided, however, that each violation is punishable by a fine of one thousand dollars.

F. Civil or Equitable Enforcement. The city attorney may bring a civil or equitable action, at his or her discretion, to seek the abatement of any violation of this code.
26 G. Aiding, Abetting, and Omissions. Whenever in this chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

H. Ongoing Violations. Each and every day a violation is maintained, caused, aided, abetted, concealed, suffered, or permitted is a separate offense.

I. Remedies Cumulative. The remedies, procedures, and penalties provided by this chapter are cumulative to each other and to any other available under city, state, or federal law.
1 EXHIBIT “A” AMENDED AND RESTATED CHAPTER 5.77 (REDLINE) Chapter 5.77 COMMERCIAL CANNABIS BUSINESSES

5.77.010 Purpose and intent.

5.77.020 Severability.

5.77.030 Definitions.

5.77.040 Permit requirement—Maximum number of permits.

5.77.050 Authority to enforce chapter.

5.77.060 Service requirements.

5.77.070 Application procedure.

5.77.080 Review of applications—Grounds for denial—Right to appeal—Notice of denial.

5.77.090 Permit issuance.

5.77.100 Permit—Validity—Expiration.

5.77.110 Renewal of cannabis business permits.

5.77.120 Grounds for suspension, revocation, and nonrenewal.

5.77.130 Appeals.

5.77.150 Transfer and Assignment of cannabis business permit.

5.77.160 Fees.

5.77.170 General operating requirements.

5.77.180 Specific operating requirements.

5.77.190 Permittee responsibility.

5.77.195 Discourage Illegal, Criminal, or Nuisance Activities.

5.77.200 Inspection and enforcement.

5.77.010 Purpose and intent.

5.77.020 Severability.

If any provision of the ordinance codified in this chapter and this chapter is found to be unconstitutional or otherwise invalid by any court of competent jurisdiction, that invalidity will not affect the remaining provisions of the ordinance and chapter, which can be implemented without the invalid provisions, and to this end, the provisions of this ordinance are declared to be severable.

5.77.030 Definitions.

Additionally, the following definitions apply to this Chapter:Definitions appearing in this chapter are either those that are not covered by state law, predate the Medicinal and Adult Use Cannabis Regulation and Safety Act (California Business and Professions Code, Division 10, Section 26000 et seq.) (“MAUCRSA”), or are outside the scope of Section 26001. When used in this chapter, the following words shall have the meanings ascribed to them:
“Applicant” means person applying for a permit under this chapter, including any officer, director, partner, or other duly authorized representative applying on behalf of an entity.

Attachment: B
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2 “Cannabis” means marijuana and means any or all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not, the seeds thereof, the resin or separated resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds or resin. It does not include industrial hemp, as defined in Health and Safety Code Section 11018.5, or cannabidiol (CBD) derived from industrial hemp. “Cannabis business” means any business or operation that engages in medicinal or adult-use commercial cannabis activity.
“Caregiver” or “primary caregiver” has the same meaning as that term is defined in Section 11362.7 of the California Health and Safety Code.
“City manager” means the Stanton city manager, or designee. “Commercial cannabis activity” means possession, manufacture, distribution, processing, storing, laboratory testing, cultivating, compounding, packaging, labeling, transportation, dispensing, research and development, delivery, or sale of cannabis or cannabis products for commercial purposes, whether for profit or nonprofit.
“Commercial cannabis business permit” or “Permit” means a regulatory permit issued by the city of Stanton pursuant to this chapter, to a commercial cannabis business and is required before any commercial cannabis activity may be conducted in the city. The initial permit and annual renewal of a commercial cannabis business is made expressly contingent upon the business’s ongoing compliance with all of the requirements of this chapter and any regulations adopted by the city governing the commercial cannabis activity at issue.
“Continual operation” shall mean the Cannabis Business operates continuously and does not have a closure of operations for more than sixty (60) consecutive days, except for closures that result from mandatory government closures, earthquakes, weather, civil unrest, global pandemics, and other factors beyond the business’s control.
“Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, trimming, or processing of cannabis.
"Manager" means any person(s) designated by a Cannabis Business to act as the representative or agent of the Cannabis Business in managing day-to-day operations with corresponding liabilities and responsibilities, and/or the individual in apparent charge of the permitted premises of the Cannabis Business. Evidence of management includes, but is not limited to, evidence that the individual has the power to direct, supervise, or hire and dismiss employees, control hours of operation, creates policy rules, or purchases supplies. "Owner" means any of the following:
(a) Any person with an ownership interest of ten percent (10%) or more in the Cannabis Business applying for a Permit pursuant to this Chapter; (b) The chief executive officer of an entity, including nonprofits; (c) A member of the board of directors of a for-profit or non-profit entity; (d) All persons within an entity that have a financial interest of ten percent (10%) or more in the proposed Cannabis Business, including but not limited to:
3 (1) A general partner of a Cannabis Business that is organized as a partnership;
(2) A non-member manager or managing member of a Cannabis Business that is organized as a limited liability company;
(3) Any person holding a voting interest in a partnership, association, or limited liability company;
(1) (4) All officers or directors of a Cannabis Business that is organized as a corporation and all shareholders who individually own more than ten percent (10%) of the issued and outstanding stock of the corporation.“Owner” means any of the following:

1. Each person having an ownership interest in the commercial cannabis business other than a security interest, lien, or encumbrance on property that will be used by the commercial cannabis business;

2. If the commercial cannabis business is a publicly traded company, the chief executive officer or any person or entity with an aggregate ownership interest of five percent or more; or

3.1. Each person who participates in the direction, control, or management of, or has a financial interest in, the commercial cannabis business.
“Patient” or “qualified patient” shall have the same definition as California Health and Safety Code Section 11362.7 et seq., as it may be amended, and which means a person who is entitled to the protections of California Health and Safety Code Section 11362.22. “State license” means a permit or license issued by the state of California, or one of its departments or divisions, under MAUCRSA and any subsequent state of California legislation regarding the same to engage in commercial cannabis activity. A state license alone will not authorize the holder to operate a cannabis business, as state law also requires a permit or other authorization issued by a local jurisdiction.

5.77.040 Permit requirement—Maximum number of permits.

5.77.050 Authority to enforce chapter.

The city manager has the authority to administer and enforce this chapter. The city manager may adopt supplemental regulations or policies to implement and interpret this chapter.

5.77.060 Service requirements.
4 Except as otherwise provided, any notice required to be served on an applicant or permittee under this chapter must be completed by either personal delivery or first class mail. Service by mail is deemed complete at the time of deposit in the mail. Any notice issued to an applicant or permittee may be sent to the mailing address as listed on the application submitted to the city. Failure of any applicant or permittee to receive a properly-addressed notice by mail shall not invalidate any action, decision, determination, or proceeding under this chapter

5.77.070 Application procedure.

B. Application Fee and Refundable Deposit. At the time of filing, each applicant must pay:

1. Aa nonrefundable application fee established by resolution of the city council to defray the costs incurred by the city in the application process. The application and fee required under this section shall be in addition to any other license, permit, or fee required by any other section or chapter of this code; and,

1.2. .A refundable deposit as established by resolution of the City Council to allow the City access to additional funds, as necessary, to recover administrative fees and costs including but not limited to fees and costs associated with processing an application, processing a permit, and background checks.

B.C. Application Insufficient to Operate. Submission of an application for a permit does not authorize the operation of a commercial cannabis business unless and until such permit has been properly granted by the city.

C.D. Application Contents. The city manager may adopt procedures governing applications for commercial cannabis business permits, including requiring certain information and documentation.

At minimum, the application for a commercial cannabis business permit must contain or be accompanied by the following information:

2. If the applicant is not a natural person, its operative governing documents and any fictitious business statement.

3.1. The proposed address for the commercial cannabis business.

4.3. The proposed hours of operation.

5.4. A description of any specific state cannabis license that the business either has obtained or plans to obtain. The business must describe how it will meet the state licensing requirements, and provide supporting documentation as required by the city manager.

5. The proposed address for the commercial cannabis business. 5 6. The name and address of the owners of the real property where the proposed commercial cannabis business is to be located, including unit or suite number, if applicable. In the event the applicant is not the owner of the property, the application must be accompanied by a notarized letter of intent from the owner of the proposed property for the Cannabis Business demonstrating the property owner’s (1) acknowledgement that a Cannabis Business is being proposed as the business for the property; (2) consent for a Cannabis Business to operate at the property if awarded a Permit; and (3) acknowledgement that the property owner accepts any and all risks and liabilities, including but not limited to any Federal law enforcement action, associated with permitting a Cannabis Business to operate at the propertya copy of the lease and a notarized affidavit from the owner of the property providing consent for a commercial cannabis business to be located on the property.

7. Whether the applicant has had any license or permit relating to cannabis denied, suspended, or revoked by any agency, board, city, county, territory or state.

8.9. Authorization for the city, its agents, and employees to seek verification of the information contained in the application.

9.10. The applicant and Eeach cannabis business owner, as well as each employee who makes or will make operational or management decisions that directly impact the business, must undergo a background check submit electronic fingerprint images (e.g., LiveScan) and related information required by the sheriff’s department for the purpose of obtaining information as to the existence and content of a record of state or federal convictions and arrests to be considered as set forth in this chapter. No person may be issued a commercial cannabis business permit unless they have first cleared the background check.

10.11. Such other identification and information as the city may reasonably require in order to verify the truth of the matters herein specified and as required to be set forth in the application.

11.12. Security Plan. A description and documentation of how the applicant will secure the premises twenty-four hours per day, seven days per week, and how waste derived from any cannabis commercial activity will be disposed of in a manner to ensure it may not be utilized for unlawful purposes. The security plan shall include, but is not limited to, the following:
a. Confirming that burglar alarms are operational and monitored by a licensed security company at all times and providing contact information for each licensed security company; b. Identifying a sufficient number of licensed security personnel who will monitor the interior and exterior of the commercial cannabis business; c. Confirming that the licensed security personnel will regularly monitor the parking lot and adjacent exterior of the property to ensure that these areas are free of individuals loitering or causing a disturbance and are cleared of employees and their vehicles one-half hour after closing;
d. Establishing limited access areas accessible only to authorized personnel including security measures to both deter and prevent unauthorized entrance into areas containing cannabis or cannabis products and theft of cannabis or cannabis products; 6 e. Storing all finished cannabis and cannabis products in a secured and locked room, safe, or vault, and in a manner as to prevent diversion, theft, and loss, except for limited amounts of cannabis used for display purposes, samples, immediate sale, if applicable based on the type of business;
f. Providing tamper-proof and tamper-evident packaging for finished cannabis products; g. Preventing off-site impacts to adjoining or near properties; and h. Limiting the amount of cash on the premises.
132. For commercial cannabis businesses applying for a permit to operate a delivery service:
a. Listing of all vehicles and devices to be used for delivery of cannabis or cannabis product within the city, which includes the vehicle’s make, model, year, license plate number and vehicle identification number.
b. Identifying all persons who will deliver cannabis or cannabis product in the city. Such individuals must be at least twenty-one years of age at the time of submittal of the application. 143.An executed release of liability and hold harmless in the form as approved by the City Attorney, which shall include, but not be limited to, the following; a. To the fullest extent permitted by law, the City shall not assume any liability whatsoever, with respect to approving any Permit pursuant to this Chapter or the operation of any property on which a Cannabis Business is located pursuant to this Chapter. Before obtaining a Permit and as a condition to the Permit, the Applicant or its legal representative shall execute an agreement that provides the following, without limitation:
(i) Indemnifying the City from any claims, damages, injuries or liabilities of any kind associated with the operation of the Cannabis Business or the prosecution of the Applicant or Permittee or its Managers or Employees for violation of Federal or State laws;
(ii) Agreeing to defend, at its sole expense and with legal representation selected by the City, any action against the City, its elected officials, agents, officers, and employees in any way related to or in connection with the processing or approval of Permit;
(iii) Agreeing to reimburse the City for any court costs and attorney fees that the City may be required to pay as a result of any legal challenge related to or in connection with the City’s approval of a Permit. Agreeing that the City’s participation in the defense of any such action shall not relieve the Applicant or Permittee of its obligation hereunder; and,
(iv) Acknowledging that the application, scoring, and potential awarding of a Permit may be subject to challenge by other Applicants based upon the administrative appeal procedure, as set forth in this Chapter. Acknowledging that by nature of the City having administrative appeals, the appeal procedure may necessarily affect the Permittee’s licensing process, including, but not limited to, scoring, ranking, and ultimate ability to obtain a Permit, and that the Permittee acknowledges and accepts the risks with accepting a Permit. Further acknowledging that by being selected and qualifying as a top Applicant for a Permit in no way creates any rights in or entitlement to the Permit, which is subject to suspension or revocation as provided in this Chapter. 7 15. A statement in writing and dated and signed by the person providing the information that he or she certifies under penalty of perjury that all information contained in the application is true and correct

5.77.080 Review of applications—Grounds for denial—Right to appeal—Notice of denial.

A. Investigation. After receipt of an application, City staff shall review applications for completeness of the application requirements and general compliance with the City’s Municipal Code, including a preliminary zone check to ensure the proposed location of the Cannabis Business is located in an authorized zone, or any other applicable laws and any adopted resolutions or regulations, and shall reject any application that does not meet such requirements. Rejected applications shall not be scored. Notwithstanding the foregoing, in accordance with this Chapter and any adopted resolutions or regulations, the City may allow Applicants to cure insubstantial defects in a defective application. Upon receipt of a complete and signed written application for a commercial cannabis business permit, the city must conduct an investigation of facts with the appropriate government agencies. This review process must ensure that the proposed commercial cannabis business and the contents and information in the application are consistent with the requirements of this chapter.

A.B. Review Committee Established. Once an application has been deemed complete, the application shall be reviewed, analyzed, and scored by the Cannabis Application Review Committee.

The Cannabis Application Evaluation Committee shall be composed of at a minimum three individuals with no pecuniary interest in any application. Other criteria for the Evaluation Committee may be adopted by the City Council via Resolution. Members of a Cannabis Application Evaluation Committee shall be appointed by the City Manager to review and score each application based on the general criteria identified in this Chapter.

C. Review Criteria Established. The city manager must evaluate each application, based upon objective review criteria, on a point system or equivalent quantitative evaluation scale tied to each set of review criteria. After the initial review, ranking, and scoring under the review criteria, the city manager will make a final determination in accordance with this section.The City Manager shall be responsible for developing and proposing objective review criteria, which, at a minimum, demonstrates an applicant’s ability to operate safely and in a responsible manner that reflects the community and needs of the City, and demonstrates an applicant’s financial longevity and profitability. The objective review criteria shall be submitted to and approved by the City Council through the adoption of a resolution. The specific criteria and weighting (points per criteria) for each Permit type will be determined prior to the commencement of the application period and posted publicly.

1. The following general criteria shall be used to rank applications, including, but not limited to the following:
a. Previous adult-use retail experience that was subject to state cannabis regulation, or experience in a similarly state-regulated activity (by way of example and not limitation, alcohol sales).
b. Longevity and profitability in other jurisdictions in which the Applicant operates a Cannabis Business, if applicable.
c. Community engagement in terms of provision of providing meaningful community benefits.
8 d. Incorporating social equity into the Cannabis Business, such as, including, without limitation, providing a living wage, collective bargaining rights, comprehensive employee benefits and trainings, hiring practices ensuring promotion of diversity of employees, inclusionary programs which support a diverse work force, and compliance with local, state, and federal employee non-discrimination policies.

1.3. The top ranked Applicants that have passed the comprehensive background checks will be reviewed and considered for the issuance of a Permit by the City Manager (in this specific instance, the term “City Manager” does not include their designees and is limited to the individual who is actually appointed as the City Manager). However, nothing herein requires the City to approve any Permits or to approve the maximum number of Permits. The decision of the City Manager is final, unless appealed as set forth in this Chapter.

2.4. Issuance of a Permit under this Chapter is subject to compliance with the California Environmental Quality Act (“CEQA”). Applicants shall be responsible for all costs associated with CEQA compliance, including but not limited to environmental analysis and studies, preparation of the appropriate CEQA documents, and City review time of the environmental document, including but not limited to any attorney review.

B.D. Grounds for Denial. After the completion of the city’s investigation, the city manager shall deny the issuance a commercial cannabis business permit if any of the following findings are made:

1. The requirements of this chapter have not been satisfied, including if the applicant failed to submit a complete application or failed to pay the requisite application fee.

2. The applicant, any Owner, or any proposed manager has had any cannabis-related or any other type of , business, or professional license or permit denied, suspended, or revoked for cause by any agency, board, city, county, territory, or state.

3. The applicant, any Owner, or any proposed manager has been convicted of a violent felony as defined by California Penal Code Section 667.5, or equivalent offenses in other states.

6.8. The applicant, any Owner, or any proposed manager or any Owner has made a false, misleading or fraudulent statement or omission of fact to the city in the application, or in the permit application process.

7.9. The commercial cannabis business does not comply with all applicable state and local laws and regulations, including, but not limited to, health, building and safety, zoning, and fire requirements and standards.

8.10. The applicant, any Owner, or any proposed manager is a natural person under twentyone years of age.

D. Denial of Application. If the city manager determines that an applicant does not fulfill the requirements as set forth in this chapter, the city manager must deny the application.

E. Right to Appeal. An applicant may appeal the city manager’s decision denying an application for a commercial cannabis business permit in accordance with the procedures set forth in this chapter.

F. Notice of Denial. The city must serve the applicant with a written notice of denial. The notice must state the reasons for the denial, the right of the applicant to appeal the decision, and that the city manager’s decision is final if no written appeal is timely submitted to and received by the city, pursuant to Section 5.77.130 of this chapter.

5.77.090 Permit issuance.

Permittees may provide a greater level of community benefit than noted in their applications; whether the benefit is a “greater level” shall be determined by the City in its sole and absolute discretion. The City also has the discretion to accept an in-lieu fee from a Permittee to satisfy the community benefit requirement. Implementation of such community benefits shall be required within sixty (60) days of being issued a Permit and shall continue throughout the term of the Permit and any renewal thereof. The City shall use any in-lieu fees to improve or further public safety and/or qualify of life for Stanton businesses and residents, in its sole and absolute discretion.

Permittee’s required implementation of the community benefits shall be required notwithstanding whether a Permittee is operating a cannabis business or not. A Permittee’s failure to abide by any of the terms of its community benefit agreement with the City shall constitute grounds for suspension or revocation of the Permit. 10 C. Zone Clearance. Applicants approved for a Permit shall submit a zone clearance application in accordance with the following procedure:

1.3. All interior and exterior building improvements, including façade improvements, shall be reviewed for substantial compliance with the findings in the City’s site plan and design review chapter of this Code prior to issuance of a zone clearance. The zone clearance for the location does not excuse compliance with any other requirement in the Zoning Ordinance or Building Code and any additional permits required may be obtained after the Permit is issued but before operation.

2.5. A Cannabis Business may be located within multiple buildings so long as the applicant obtains all entitlements and approvals necessary from all state and local agencies. Any other use that is connected to a Cannabis Business shall be ancillary to the retail use. At a minimum, the City will require the buildings to be immediately adjacent to each other and exist on one lot. To ensure compliance with this Chapter, the City may require the applicant to obtain additional entitlements, including, but not limited to a lot tie. In no instance may an applicant occupy multiple buildings and/or lots not in compliance with this Section.

5.77.100 Permit—Validity—Expiration.

B. If a Permittee has not opened its respective Cannabis Business and become operational within twelve (12) months of securing City Manager approval of a Permit, all rights to the Permit shall terminate and shall be forfeited. However, in the sole discretion of the City Manager, upon a showing by Permittee of significant and diligent progress towards opening the Cannabis Business (e.g., evidence demonstrating substantial funds invested into the Cannabis Business opening, applications submitted for any necessary licenses or permits, and/or substantial steps taken towards obtaining all necessary approvals), the City Manager may provide one, six-month extension of time to become operational.

The City may also provide up to one, six-month extension of time to become operational if there is an ongoing local emergency or force majeure that results in substantial delay in processing any of the necessary approvals for the Permit. For purposes of this chapter, “force majeure” is an unforeseeable circumstance that was outside of the Permittee’s 11 control that the Permittee could not reasonably anticipate, including, without limitation, acts of God, war, pandemics, and strikes. It does not include issues such as, without limitation, problems with financing. The total time of any extension provided pursuant to this subsection shall not exceed a maximum of two years after the City Manager’s original approval of the Permit. Failure to receive any extension shall render the Permit expired.

A.E. Nothing herein requires the City to draw from a waitlist; the City has the sole and absolute discretion to forego a waitlist and re-open the application period to accept new applications at any time.

5.77.110 Renewal of cannabis business permits.

A. Renewal Application Deadline. Except for permits that were issued in November 2021, an application for renewal of a commercial cannabis business permit must be filed at least sixty calendar days before the expiration date of the current permit. Failure to submit a renewal application prior to the expiration date of the permit will result in the automatic expiration of the permit on the expiration date. Permittees that were issued permits in November 2021 shall submit their application for renewal by March 31, 2023. Any permittee allowing his or her permit to lapse or expire shall be required to submit a new application and pay the corresponding initial application fees. The City is not required to send a renewal notice to any person subject to the provisions of this Section. Failure to send such notice shall not relieve nor excuse the Cannabis Business from complying with its obligations under this Section.

The applicant must pay a fee in an amount to be set by the city council to defray the costs of processing the renewal permit application. A permittee submitting a renewal application is required to update the information contained in the original permit application and provide any new or additional information as may be reasonably required by the city manager in order to determine whether the permit should be renewed, including but not limited to documentation evidencing that the Permittee has paid all applicable taxes and fees, including any taxes and fees set forth in Chapter 5.76, and that Permittee has fulfilled its community benefit obligations.

C. Decision on Renewal Application. The city manager must investigate the renewal application and render a decision no later than the date of expiration of the permit. 12 D. Renewal. The city manager must will renew a permit if he or she confirms the permittee has been and remains in current compliance with all conditions of the permit, with all provisions of this chapter, and with all state and local laws applicable to cannabis businesses.

E.F. The decision of the City Manager is final, unless appealed as set forth in this Chapter.

5.77.120 Grounds for suspension, revocation, and nonrenewal.

A. The city manager may suspend, revoke, or refuse to renew a commercial cannabis business permit in any of the following circumstances:

1. The city manager makes any findings necessary to deny a permit under Section

5.77.080 of this chapter.

3. A permittee failed to comply with the requirements of this chapter or of any regulations adopted pursuant to this chapter, or any term or condition imposed on the permit.

B. Decision Appealable. A permittee may appeal the city manager’s decision denying a renewal application, or suspending or revoking a permit, in accordance with the procedures set forth in this chapter.

5.77.130 of this chapter. This notice is effective ten calendar days following the date of service of the notice. If an appeal is timely and properly filed in accordance with this chapter, then the effective date of the notice is stayed.

5.77.130 Appeals.

Any appeal right provided for in this chapter must be conducted as set forth in this section.

A. Submission of Appeal.

2. The notice of appeal shall be in writing and signed by the person making the appeal, or his or her legal representative, and shall contain the following:
a. The name, address, telephone number of the appellant; 13 b. A statement of whether the appellant is an applicant or permittee of a commercial cannabis business;
c. A true and correct copy of the notice of the decision or action issued by the city manager that the appellant is appealing;
d. A specific statement of the reasons and grounds for making the appeal in sufficient detail to enable the hearing officer to understand the nature of the controversy, the basis of the appeal, and the relief requested; and
e. All documents or other evidence pertinent to the appeal that the appellant requests the hearing officer to consider at the hearing.

3. At the time of filing the appellant must pay the designated appeal fee, which may be established by resolution of the city council.

4. In the event a written notice of appeal is timely filed, the suspension, revocation, denial, or nonrenewal is not effective until a final order has been rendered and issued by the hearing officer. If no timely, proper appeal is filed in the event of a decision of denial, the permit expires at the conclusion of the term of the permit. If no timely, proper appeal is filed in the event of a suspension or revocation, the suspension or revocation is effective upon the expiration of the period for filing a written notice of appeal.

B. Hearing Procedure.

1. Administrative hearing officers must be selected in a manner that avoids the potential for pecuniary or other bias.

2. Upon receipt of the written appeal, the city clerk, in their sole discretion, shall choose the date and set the matter for a hearing before a hearing officer. Once set, the hearing date shall only be continued upon a written showing for good cause by the requestor. For purposes of this subsection, the term "good cause" shall mean the hearing date must be continued due to circumstances outside of the requestor's control. The appeal must be held within a reasonable time after date of filing. The City must notify the appellant of the date, time, and location of the hearing at least ten calendar days before the date of the hearing. The hearing officer will preside over the appeal, hear the matter de novo, and conduct the hearing pursuant to the procedures set forth in this chapter. The city bears the burden of proof to establish the grounds for the suspension, revocation, denial, or nonrenewal by a preponderance of the evidence. The issuance of the city manager’s notice of decision constitutes prima facie evidence of grounds for the suspension, revocation, denial, or nonrenewal.

2.4. The hearing officer will preside over the appeal in accordance with the rules of this Chapter. The hearing officer conducts their review of the decision to determine whether there was an abuse of discretion. Abuse of discretion is established if the City has not proceeded in 14 the manner required by law, the decision is not supported by the findings, or the findings are not supported by the evidence. The hearing officer reviews the decision to make sure there is substantial evidence that reasonably supports the decision, is credible, and of solid value. The hearing officer does not substitute their judgment for that of the Evaluation Committee or reweigh the evidence or rescore the application. If the hearing officer determines that there was an abuse of discretion, the decision shall be deemed cancelled.

3. The appeal must be held within a reasonable time after date of filing, but in no event later than thirty calendar days from that date. The city must notify the appellant of the date, time, and location of the hearing at least ten calendar days before the date of the hearing.

5. At the hearing, the appellant may present witnesses and evidence relevant to the decision appealed. Appeal hearings are informal, and the formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. However, rules of privilege are applicable to the extent they are permitted by law; and irrelevant, collateral, and repetitious evidence may be excluded.The hearing shall be conducted as follows:
a. No new matter or evidence shall be received or considered by the hearing officer that was not addressed or identified in the appeal unless the appellant can show why such new matter or evidence could not with due diligence have been argued or produced at the time of filing the appeal.
b. Appellant bears the burden of proof to establish that the City abused its discretion by issuing the decision.
a.c. At the hearing, the parties may present argument, witnesses and evidence relevant to the decision appealed. Formal rules of evidence and procedure applicable in a court of law shall not apply to the hearing. However, rules of privilege are applicable to the extent they are permitted by law; and irrelevant, collateral, and repetitious evidence may be excluded.

C. Hearing Officer’s Decision.

1. No later than fifteen (15) calendar days following conclusion of the appeal hearing, and after considering all of the testimony and evidence submitted at the hearing, the hearing officer will determine whether the issuance of the decision constituted an abuse of discretionNo later than fifteen calendar days following conclusion of the appeal hearing, and after considering all of the testimony and evidence submitted at the hearing, the hearing officer will determine if any ground exists for the suspension, revocation, denial, or nonrenewal of the commercial cannabis business permit.

2. The hearing officer must issue a written decision containing findings and analysis supporting their decision to uphold or reverse the decision, and any other finding that is relevant or necessary to the subject matter of the appealIf the hearing officer determines that no grounds for the suspension, revocation, denial, or nonrenewal exist, the city manager’s notice of decision shall be deemed cancelled.

3. The decision of the hearing officer is final. The decision must contain the following statement: “The decision of the hearing officer is final. Judicial review of this decision is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6.”If the hearing officer determines that one or more of the reasons or grounds enumerated in the city manager’s notice of decision exists, the hearing officer must issue a written decision containing a finding and description of each reason or ground to uphold the city manager’s decision, and any other finding that is relevant or necessary to the subject matter of the appeal. 15 4. A copy of the hearing officer’s decision must be served by first class mail on the appellant. Failure of a person to receive a properly addressed hearing officer’s decision does not invalidate any action or proceeding by the city pursuant to this ChapterA written decision must be issued to the appellant.

5. The decision of the hearing officer is final. The decision must contain the following statement: “The decision of the hearing officer is final. Judicial review of this decision is subject to the time limits set forth in California Code of Civil Procedure Section 1094.6.”

6. A copy of the hearing officer’s decision must be served by first class mail on the appellant. Failure of a person to receive a properly addressed hearing officer’s decision does not invalidate any action or proceeding by the city pursuant to this chapter.

5.77.150 Transfer or Assignment of cannabis business permit.

A. A commercial cannabis business permit issued under this chapter is valid only as to the permittee and approved location, and is therefore nontransferable to other persons or locations.

B. Multiple operating locations for the same cannabis business require separate permits.

D. The assignment of or attempt to assign any Permit issued pursuant to this Chapter is unlawful until a Permittee has been in continual operation for four years, and any such assignment or attempt to assign a Permit before that time shall render the Permit null and void, unless approved by the City Manager, or by variance as outlined in subsections (E) and (F) below. Assignment shall be defined as a cumulative sale or transfer of fifty-one percent or more equity interest in the permitted entity. For permissible transfers of ownership before or during the four-year period, the Owners shall maintain a comparable level of cannabis experience as conveyed in the Permittee’s application. The City Manager shall review changes in the level of the Owners’ cannabis experience, and may approve the changes. After the four years of continual operation, assignment is permitted; provided however that any such assignment that exceeds ninety percent of interest in the permitted entity shall require review by the City Manager to ensure maintenance of the same standard of operation.

1. The same standard of business operation will be maintained; 16 2. The ownership shall maintain a comparable level of cannabis experience as conveyed in the Permittee’s application;

3. The assignment would promote the public interest and maintain the integrity of the City’s Commercial Cannabis Permit application scoring and licensing process; and

4. The findings that supported issuance of the Permit can still be made, including requiring any new Owner to pass the comprehensive background check as set forth in this Chapter.

G. The decisions of the City Manager are final.

1. At the time the merger, consolidation, or transfer occurs, the Permit Owners listed on the Permit or application, whichever is most recent (“Permit Owners”), prior to the merger, consolidation, or transfer shall be required to hold at least three and one-half percent of the shares of the publicly traded company.

7. No Permittee shall operate, conduct, manage, engage in, or carry on a Cannabis Business under any name other than the name of the Cannabis Business specified 17 in the permit and/or any "doing business as" or "DBA" provided in the permit application, unless specified in this Chapter.

A. I. All assignments under this Section shall be subject to an non-refundable assignment fee adopted by the City Council by resolution. The fee shall be sufficient to defray the costs incurred by the City for the application and reviewing process.

J. The City may approve the transfer of a Cannabis Business to another location in the City as long as the locational and zoning requirements of this Chapter and State law are met, and the new location meets or exceeds the standards and operational characteristics of the current location. The City Manager may approve or deny requests to transfer the Permit to another location, which decision shall be final, subject to a right to appeal as provided in this chapter.

5.77.160 Fees.

No person may commence or continue any commercial cannabis activity in the city without timely paying in full all fees and charges required for the operation of a commercial cannabis activity. The amount of any fee, cost or charge imposed pursuant to this chapter is a debt to the city of Stanton that may be recovered by any means authorized by law.

5.77.170 General operating requirements.

All commercial cannabis businesses in the city must operate in conformance with the following general operating requirements:

A. Hours of Operation. Commercial cannabis businesses may operate only during the hours specified in the commercial cannabis business permit issued by the city.

B. Restriction on Consumption. No person may consume, or permit others to consume, any cannabis on the premises of any commercial cannabis business.

C. Minors. A commercial cannabis business may not sell cannabis or cannabis products to persons under twenty-one years of age, allow any person under twenty-one years of age on its premises, or employ or retain persons under twenty-one years of age. Despite the prior provision, a commercial cannabis business holding a state license for commercial cannabis activity involving medicinal cannabis may allow on the premises and sell cannabis or cannabis products to any person eighteen years of age or older who possesses a valid government-issued identification card, and either a valid county-issued identification card under Section 11362.712 of the Health and Safety Code or a valid physician’s recommendation for himself or herself or for a person for whom he or she is a primary caregiver.

D. Alcohol and Tobacco Sales. A commercial cannabis business may not sell alcoholic beverages or tobacco products on or at any premises permitted under this chapter.

E. Distance Requirements. A premises permitted under this division may not be located within a six-hundred-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the permit is issued, or within a four-hundred-foot radius of a property zoned residential. 18 F. Outdoor Cultivation. A permittee may not cultivate cannabis outdoors. No permit may be issued pursuant to this chapter for outdoor commercial cannabis cultivation.

G. Display and Storage. No cannabis, cannabis products, or graphics depicting cannabis or cannabis products may be visible from the exterior of any property issued a commercial cannabis business permit, or on any of the vehicles owned or used as part of the commercial cannabis business. No outdoor storage of cannabis or cannabis products is permitted.

H. Tracking of Product and of Gross Sales. Each commercial cannabis business must implement a point-of-sale or management inventory tracking system to track and report on all aspects of the commercial cannabis business, including such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed reasonably necessary by the city. Each commercial cannabis business must ensure that such information is compatible with the city’s record-keeping systems. In addition, the system must have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the city managercity’s consultant before being used by the permittee.

Footage from such surveillance shall be retained for at least forty-five (45) days.

L. Security Breach. A cannabis business shall notify the Orange County sheriff’s department as soon as possible, and no later than within twenty-four hours, after discovering any of the following:

1. Diversion, theft, loss, or any criminal activity involving the cannabis or cannabis product or any agent or employee of the permittee;

2. The loss or unauthorized alteration of records related to cannabis or cannabis product, registered qualifying patients, primary caregivers or employees or agents;

3. Significant discrepancies identified during inventory; or

4. Any other material breach of security.

M. Background Checks.

1. Employees. Prior to hiring, all potential employees must submit to a comprehensive background check by Permittee. Permittee must ensure that each potential employee meets the requirements of Section 5.77.080(D). For each potential employee, before beginning employment, Permittee must submit a sworn affidavit attesting (1) that a comprehensive background check was conducted in conformance with this Chapter and (2) the potential employee is in compliance with Section 5.77.080(D).
19 2. Owner and Manager. Prior to the addition of a new or additional Manager or Owner (when permitted by this Chapter), Permittee must conduct a comprehensive background check demonstrating compliance with the requirements of Section 5.77.080(D). For each new or additional potential Manager and Owner, Permittee must submit the results of the comprehensive background check to the City. The City will have twenty-one (21) days to review and approve the background check for compliance with this Chapter.

M.N. Odor Control. Odors must be contained on the property on which the commercial cannabis activity is located. If the city receives any odor complaints, the cannabis business is required to cooperate with the city to correct odor concerns. This may include, without limitation, paying for a third party consultant, as selected by the City, to measure the level of odor at the business and/or make findings and/or a plan on how to address such odor issues. The city may require, among other things, installation of odor absorbing ventilation and exhaust system so that odor generated inside the commercial cannabis business that is distinctive to its operation is not detected outside of the facility if reasonably necessary. Unresolved or repeated odor complaints may be basis for suspension, revocation, denial, or nonrenewal of a permit.

N.O. Display of Permit and City Business License. Each business must maintain a business license from the city. The original copy of the commercial cannabis business permit issued by the city pursuant to this chapter and the city-issued business license must be prominently displayed inside the commercial cannabis business in a location readily-visible to the public.

O.P. Records and Recordkeeping. Each business must maintain for a minimum of three years a written accounting or ledger of all cash, receipts, credit card transactions, and reimbursements (including any in-kind contributions), as well as records of all operational expenditures and costs incurred by the permittee, in accordance with generally accepted accounting practices and standards typically applicable to business records, which shall be made available to the city during business hours for inspection as provided for in this chapter.

Q. Other Permits and Approvals. Before the establishment of any commercial cannabis business or the operation of any such business, the person intending to establish a commercial cannabis business must first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate.

P.R. Changes to Premises. Permittee shall not make a physical change, alteration, or modification of the permitted premises without the prior written approval of the City. If a permitted premises is to be changed, modified, or altered, the Permittee is responsible for applying for and securing all necessary City approvals, project plan approvals, and permits.

Q.S. Insurance. Maintain commercial general liability insurance, at coverage limits and with conditions thereon determined reasonably necessary by the city manager. 20 R.T. Indemnity. By accepting the permit, each permittee agrees to indemnify, defend (at permittee’s sole cost and expense), and hold the city of Stanton, and its officers, officials, employees, representatives, and agents, harmless, from any and all claims, losses, damages, injuries, liabilities, or losses that arise out of, or which are in any way related to, the city’s issuance of the commercial cannabis business permit, the city’s decision to approve the operation of the commercial cannabis business or activity, the process used by the city in making its decision, or the alleged violation of any federal, state, or local laws by the commercial cannabis business or any of its officers, employees, or agents.

V. Marketing and Advertising.

1.2. Advertisements and marketing may not be designed to appeal to children or encourage children to consume cannabis goods, contain any false or misleading statements, or make any misrepresentations.

S.W. Additional Operating Requirements. The city manager may impose additional operational requirements upon any permit as determined to be reasonably necessary to protect the public health, safety, and welfare of the community.

5.77.180 Specific operating requirements.

A. Storefront Retailers. Each storefront retailer in the city must operate in conformance with the following operating requirements:

B. Delivery Retailers. All delivery retailers in the city must operate in conformance with the following operating requirements:

1. Any person who delivers cannabis to a customer must have in possession a copy of the permit, which must be made available upon request to law enforcement. 21 2. Delivery vehicles may not advertise any activity related to cannabis nor may they advertise the name of the permittee.

3. All orders to be delivered shall be packaged by the names of the customer.

3.5. The Permittee shall maintain a current log of all persons who deliver cannabis or cannabis products in the city. This log shall be available for City inspection upon request.

C. Cultivation Facilities. Each cultivation facility in the city must operate in conformance with the following operating requirements:

1. Outdoor commercial cultivation is prohibited;

2. Cannabis plants may not be visible from a public or private road, sidewalk, park, any common public viewing area, or adjacent private property.

5.77.190 Permittee responsibility.

5.77.195 Discourage Illegal, Criminal, or Nuisance Activities.

D. Graffiti. Permittee shall remove graffiti from the premises within forty-eight (48) hours of its occurrence.

A.E. Nuisances. Commercial cannabis activity shall not adversely affect the health or safety of the nearby residents by creating dust, glare, heat, noise, smoke, vibration, or other negative impacts, 22 and shall not be hazardous due to use or storage of materials, processes, products, chemicals, or wastes. Commercial Cannabis Activity shall not adversely affect health, safety, or welfare of any persons engaged in the operation of the Cannabis Business.

5.77.200 Inspection and enforcement.

A. Violations Unlawful. It is unlawful and declared a public nuisance for any person to operate, conduct, or maintain a commercial cannabis business contrary to the provisions of this chapter.

B. Right of Entry. Personnel of the city’s public safety department, community development department and administrative services and finance department or other agents or employees of the City, as well as the sheriff’s police department and fire Ddepartment (“Inspecting Authorities”), have the right to enter the location of all interior and exterior portions of any commercial cannabis business, and all rooms, buildings, structures, and portions thereof, during regular business hours, for the purpose of making reasonable unscheduled inspections to verify and enforce compliance with this chapter and to ensure that the business is safe, clean, sanitary, and in good repair. These Inspecting Authorities shall also have unimpeded access to inspect all on-site locations, records, reports, documents, points of sale, product, surveillance footage, and any other access deemed necessary to ensure compliance with this Chapter.

It is also unlawful for a person to conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by a commercial cannabis business under this chapter.

F. Civil or Equitable Enforcement. The city attorney may bring a civil or equitable action, at his or her discretion, to seek the abatement of any violation of this code.

G. Aiding, Abetting, and Omissions. Whenever in this chapter any act or omission is made unlawful, it shall include causing, permitting, aiding, abetting, suffering, or concealing the fact of such act or omission.

H. Ongoing Violations. Each and every day a violation is maintained, caused, aided, abetted, concealed, suffered, or permitted is a separate offense.

I. Remedies Cumulative. The remedies, procedures, and penalties provided by this chapter are cumulative to each other and to any other available under city, state, or federal law. 1 CITY OF STANTON

REPORT TO THE CITY COUNCIL
TO: Honorable Mayor and Members of the City Council
DATE: November 22, 2022
SUBJECT: PURCHASING POLICY AND PROCEDURES
REPORT IN BRIEF:

The City’s Purchasing Policy and Procedures (Policy) were last updated in 2018.

Pursuant to the Stanton Municipal Code, the Policy establishes guidelines surrounding the purchase and procurement of supplies, services, and equipment on behalf of the City. The City Council will consider updates to the Policy.

RECOMMENDED ACTION:

2. Provide direction to staff on desired updates to the Policy.

BACKGROUND:

The City Council last updated the City’s purchasing ordinance and policies in 2018. The update increased the City’s existing local vendor preference as follows:

2.56.75 Local Vendor Preference
Local vendors are granted a two percent differential in lieu of sales and transactions tax loss for the purchase of materials, supplies, equipment and personal property. Prices, fitness, quality, delivery and service being equal, preference will be given to the local vendor, in the purchase of supplies and equipment, as provided for in a purchasing policy adopted by the city council by resolution. Local vendor preference shall not be granted for contracts involving public works, personal, professional, and consultant services, or as otherwise prohibited by law. For the purposes of this section, “local vendor” means a business having its principal place of operation within the jurisdictional boundaries of the city and a valid business license. For purposes of this chapter, Item: 17A
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2 when the city considers a local vendor’s bid in connection with the purchase of supplies and equipment, the local vendor’s bid shall be the bid amount after the applicable percent differential is applied.

ANALYSIS AND JUSTIFICATION:

The City’s Municipal Code states the purpose of the purchasing system as follows:

In order to establish efficient procedures for the purchase of supplies and equipment, to secure for the city supplies and equipment at the lowest possible cost commensurate with quality needed, to exercise positive financial control over purchases, to clearly define authority for the purchasing function and to assure quality of purchases, a purchasing system is hereby adopted.

In addition, the City Manager as the Purchasing Officer is charged to • Keep informed of current developments in the field of purchasing, prices, market conditions and new products; and
• Prescribe and maintain such forms as are reasonably necessary to the operation of this chapter and any other rules and regulations.

As such, staff has reviewed the existing Policy and prepared proposed updates for the Council’s consideration.

FISCAL IMPACT:

There is no fiscal impact associated with the recommended action.

ENVIRONMENTAL IMPACT:

PUBLIC NOTIFICATION:

Public notification provided through the regular agenda process.

LEGAL REVIEW:

Reviewed by the City Attorney.
3 STRATEGIC PLAN OBJECTIVE ADDRESSED:

Obj. 4 – Ensure fiscal stability and efficiency in governance.

Obj. 6 – Maintain and promote a responsive, high quality and transparent government.

Prepared by: Hannah Shin-Heydorn, City Manager

Stanton City CouncilNovember 22, 2022

Stanton City Council
November 22, 2022