Title
Consider draft ordinances amending Monterey County Code (Zoning Ordinances) to create a
pilot program establishing permit requirements and regulations for limited outdoor commercial
cannabis cultivation in the Big Sur, Carmel Valley, and Cachagua Planning areas.
(Outdoor Pilot Program - REF150048)
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors Cannabis Committee:
1. Receive a report regarding public outreach and feedback on the Pilot Program for
outdoor cannabis cultivation.
2. Receive a report regarding projected staffing resources and estimated tax revenue.
3. Consider and provide input to staff on a draft ordinance amending Title 20 of the
Monterey County Code (coastal areas) to create a pilot program establishing land use
regulations for limited outdoor commercial cannabis cultivation in the Big Sur Land
Use Plan area. Once accepted, similar language will be applied to Title 21, Non-
Coastal ordinance for the Carmel Valley and Cachagua Planning areas.
4. Provide direction to staff.
SUMMARY:
Based on direction from the Board of Supervisors and the Cannabis Committee, Resource
Management Agency (RMA) staff prepared a draft ordinance amending Title 20 of the Monterey
County Code (Coastal Zoning) to establish a pilot program for permitting limited outdoor
cannabis cultivation in the Big Sur Land Use Plan area (Exhibit B). Due to the need for early
consultation with Coastal Commission staff on the draft ordinance and to avoid repetition in
early review, staff is presenting only the draft coastal ordinance at this time. An inland
ordinance, substantially the same as the coastal ordinance, will be prepared for the Carmel
Valley and Cachagua planning areas following Cannabis Committee review and direction on this
first draft. This report addresses both inland and coastal regulations and describes where material
differences may occur between the two. Draft ordinances are subject to change pending a more detailed review by the Office of County Counsel, and comments received through the public hearing process.
The draft ordinances would establish a 5-year pilot program for permitting and regulation of
limited outdoor cannabis cultivation only in the Big Sur Land Use Plan area, Carmel Valley
Master Plan area, and Cachagua Area Plan area of unincorporated Monterey County. The
purpose of the pilot program is to gather data and gain experience for future consideration of
long-term regulations for outdoor cultivation at the end of the 5-year period.
As drafted, the ordinances require an Administrative Permit (Inland - Carmel Valley and
Cachagua) or Coastal Administrative Permit (Coastal- Big Sur) to allow commercial outdoor
cannabis cultivation up to 10,000 square feet of canopy on “Qualified properties.”
Administrative Permits and Coastal Administrative Permits are noticed to neighbors and the
public, providing opportunity for public involvement in permitting of individual properties under
this pilot program in each case. Qualified properties include:
1. Location in the Big Sur Land Use Plan area (coastal), Carmel Valley Master Plan area
(Inland), or Cachagua Area Plan area (Inland)
2. Location in one of the following zoning districts:
a. Big Sur Land Use Plan - Rural Density Residential (RDR) or Watershed and
Scenic Conservation (WSC) zoning districts.
b. Carmel Valley Master Plan area - Rural Density Residential (RDR) zoning
district; and
c. Cachagua Area Plan - Rural Density Residential (RDR) and Resource
Conservation (RC) zoning districts,
3. The property must be at least 10 acres in size; and
4. The property must have been legally cultivated with medical cannabis prior to January 1,
2016.
In addition to the property qualifications summarized above, the draft pilot program ordinance
establishes regulations to minimize nuisances, protect neighborhood character, and protect the
environment. Draft qualifications and regulations have been developed with feedback from
industry representatives, Land Use Advisory Committees (LUAC) comments, public comments,
and with guidance form County staff involved in permitting and enforcement. Based on these criteria, staff estimates that the pilot program would up to 50 outdoor grow sites. Staff is seeking input and direction from the Cannabis Committee on the draft ordinance. Based on that direction, staff will make necessary updated and ask counsel for a more detailed legal review. That draft will be used as the basis for drafting an inland ordinance for Carmel Valley and Cachagua areas. Both ordinances will be presented to the Planning Commission for a recommendation to the Board of Supervisors. In the Coastal Zone (Big Sur), the pilot program ordinance will need to be certified by the Coastal Commission before it can take effect but the Board must take action prior to July 1, 2019 in order for the ordinance to qualify for a CEQA exemption.
DISCUSSION:
Comments on the pilot program ranged from strong support to strong opposition.
Industry: Primary concerns from the Big Sur Farmers Association (BSFA) are that the
regulations maintain flexibility in order to allow significant participation. Specifically, the BSFA
requests the County consider removal of the 10 acre lot size requirement and replacement with
setbacks and reduced maximum canopy area on lots less than 10 acres. BSFA also requests a
transfer of cultivation credit program that would allow those who have moved from the
previously cultivated site since 2016. The credit transfer program would also allow those who
don’t qualify under the regulations to relocate onto a larger qualifying property, increasing the
maximum total canopy area on the larger parcel and providing the grower with an opportunity to
cultivate under the pilot program.
Internal County staff: Some concerns still remain that the existing cannabis regulations are not
fully settled. Specific feedback on how to make permitting and enforcement more effective was
provided and has been incorporated in the draft ordinance.
LUAC: The Big Sur, Carmel Valley, and Cachagua LUACs all unanimously supported the pilot
program, provided the concerns raised at those meetings are addressed. Suggestions from the
LUACs include but are not limited to:
• Develop performance criteria from which to measure pilot program success or failure
(staff is in the process of developing goals and measurement criteria)
• Provide robust security and enforcement. Sheriff presence in these areas is limited
• Invest cannabis revenues in affected communities including increased emergency
response, road repairs, playgrounds, fields, and other amenities
• Develop a plan to address odors and other potential nuisances
• Consider impacts on water, electricity, private roads, night sky, and important
environmental resources in the area; and
• Consider a residency requirement to minimize influence from out-of-town interests who
may not be as respectful to the community and environment as locals.
This list of comments is not exhaustive. For more information on public comments refer to the
detailed discussion in Exhibit A, the LUAC recommendations in Exhibit C, and correspondence
received on the pilot program in Exhibit D.
California Environmental Quality Act (CEQA):
Direction from the Cannabis Committee on December 18, 2018 was to take advantage of an
exemption in California Business and Professions Code section 26055(h) which provides a
statutory exemption from CEQA for the adoption cannabis ordinances when the ordinance
requires discretionary review of individual permits pursuant that are themselves subject to
environmental review under CEQA. The statutory exemption provided in the Business and
Professions Code section 26055(h) expires on July 1, 2019 so the Pilot Program must be
considered and approved by the Board of Supervisors prior to that date in order to apply the
exemption to the ordinance. The draft pilot program would require discretionary review of
individual applications that would each be subject to CEQA review.
See Exhibit A for a more detailed discussion.
OTHER AGENCY INVOLVEMENT:
The following Departments or Agencies have been involved:
- Resource Management Agency
- Environmental Health Bureau
- Agricultural Commissioner
- Treasurer/Tax Collector
- Sheriff’s Office
- District Attorney’s Office
- County Counsel’s Office
- Economic Development
- CAO’s Office
FINANCING:
Funding for staff time associated with development of the pilot program is included in the FY18-
19 Adopted Budget for each of the involved Departments/Agencies. Implementation of new
regulations is anticipated to impact services, which staff believes will necessitate additional staff.
If the pilot program regulations are adopted, large upfront costs that will impact the General Fund are anticipated.
The County Administrative Office (CAO), will provide an overview of finances for the Cannabis
Committee consideration.
Based on preliminary estimates of approximately 50 permits that may qualify under the pilot
program and a maximum canopy area of 10,000 square feet, outdoor grows would generate about
$500,000 in taxes at a tax rate of$1/square foot of canopy. Initial resource and staffing cost
estimates from each County Department involved in permitting and enforcement total
approximately $1,000,000, meaning that if adopted, the pilot program will require supplemental
funding from cannabis revenues or the general fund to implement and enforce. These estimates
are preliminary and options are available to the Board of Supervisors including increasing the
permissible canopy area allowed in the pilot program or setting the tax rate higher than $1/square
foot to increase potential tax revenue and working with County Department heads to cut costs
from the initial estimates. Reductions in funding to County Departments may result in less
effective or efficient permitting and enforcement.
Prepared by: Craig W. Spencer, Interim Planning Manager, ext. 5233
Reviewed by: Brandon Swanson, Interim Chief of Planning
Approved by: Carl Holm, AICP, Director, RMA
Attachments:
Exhibit A Detailed Discussion
Exhibit B Draft ordinance adding Chapters 20.69 (coastal pilot program)
Exhibit C Land Use Advisory Committee recommendations
C-1 - Big Sur
C-2 - Carmel Valley
C-3 - Cachagua
Exhibit D Correspondence
Exhibit E Land Use Maps
E-1 - Big Sur
E -2 - Camel Valley
E-3 - Cachagua