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City of San Leandro <br />Meeting Date: March 18, 2019 <br />Staff Report <br />Agenda Section:File Number:19-148 ACTION ITEMS <br />Agenda Number:10.B. <br />TO:City Council <br />FROM:Jeff Kay <br />City Manager <br />BY:City Council <br />FINANCE REVIEW:David Baum <br />Finance Director <br />TITLE:Staff Report for a City of San Leandro City Council Ordinance for Amendments <br />to the Medical Cannabis Dispensary Ordinance (4-37) and to the Permitted <br />Commercial Cannabis Activities Ordinance (4-39) to Facilitate Adult Use Sales <br />and to Establish a Time Limitation for Commencement of Operations <br />SUMMARY AND RECOMMENDATIONS <br />Consistent with the City Council’s policy direction that was provided at the February 19, 2019 City <br />Council meeting, staff recommends that the City Council review and adopt the proposed <br />amendments to the City’s Cannabis Dispensary Ordinances. The proposed changes are <br />designed to: 1) allow the City’s three previously permitted dispensaries to conduct retail sales of <br />cannabis for adult use; and 2) establish a December 31, 2019 deadline for dispensaries to <br />commence operations and begin serving customers; failure to meet this deadline would result in <br />automatic revocation, without prejudice or recourse, of a dispensary’s City issued operating <br />permit. Without such a permit, notwithstanding whether a dispensary has a valid State issued <br />permit, it may not legally operate in San Leandro. <br />BACKGROUND & ANALYSIS <br />At the February 19, 2019 City Council meeting, the City Council directed staff to bring forward <br />proposed amendments to the City’s adopted cannabis dispensary ordinance and permitted <br />commercial cannabis activity ordinance that would facilitate sales of cannabis for adult use at the <br />City’s three previously permitted dispensaries. <br />The City Council also directed staff to incorporate into the authorizing resolution language that <br />would concurrently impose a time limit, or “shot clock” that would automatically rescind the <br />operating permit of any previously permitted dispensary that fails to commence operations prior <br />to December 31, 2019. <br />Page 1 City of San Leandro Printed on 3/8/2019