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City of San Leandro <br />Meeting Date: September 19, 2016 <br />Staff Report <br />Agenda Section:File Number:16-473 ACTION ITEMS <br />Agenda Number:10.A. <br />TO:City Council <br />FROM:Chris Zapata <br />City Manager <br />BY:City Council <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for Amendments to the Medical Cannabis Dispensary Ordinance <br />to Facilitate the Issuance of a Third Dispensary Permit <br />SUMMARY AND RECOMMENDATIONS <br />Staff recommends that the City Council review and consider for adoption the proposed <br />amendments to the City’s Medical Cannabis Dispensary Ordinance. The proposed changes <br />are designed to achieve the following goals: 1) to allow a third dispensary permit to be <br />awarded by the City Council; and 2) to eliminate the requirement that dispensaries be located <br />at least 1,000 feet from another dispensary. <br />BACKGROUND & ANALYSIS <br />Following extensive dialogue with the community and numerous City Council discussions, on <br />December 16, 2013, the City Council approved a medical cannabis dispensary ordinance to <br />facilitate the approval, regulation and operation of medical cannabis dispensaries in San <br />Leandro. Contained within that ordinance was Section 4-33-200(c), which stated: “The City <br />shall issue no more than one (1) valid permit for the operation of dispensaries in the City.” On <br />September 8, 2015, the City Council subsequently awarded the City’s first dispensary permit <br />to Harborside San Leandro (HSL). <br />Based upon subsequent direction provided at the December 21, 2015 and February 16, 2016 <br />regular meetings, the City Council on June 6, 2016 adopted an amendment to the ordinance <br />to allow the award of a second dispensary permit. As part of that action, the Council also <br />adopted various other changes to align the ordinance with the Medical Marijuana Regulation <br />and Safety Act (MMRSA), and incorporate suggestions from the first permit awardee that <br />would better support the smooth operation of dispensaries once they open their doors to <br />patients, along with various other changes designed to ensure best practices. <br />Following an application vetting process, the City Council issued the City’s second medical <br />cannabis dispensary permit on July 18, 2016 to the Davis Street Wellness Center. <br />Page 1 City of San Leandro Printed on 9/13/2016