Board of Supervisors — 2018-02-06

Cannabis Land Use Ordinances and Environmental Impact Report

• The board adopted amended ordinances for the LUDC, CZO, and MLUDC, setting a 750-foot buffer for cannabis operations and 600 feet for nurseries.
• Outdoor cultivation is prohibited on AG-1 lots of 20 acres or less and must be located at least 1,500 feet from residential zones or schools.
• A comprehensive odor abatement plan is required for most operators, with corrective action triggered by three verified complaints within a 365-day period.
• The board deleted the energy conservation plan requirement from the land use ordinance, deferring it to the licensing scheme.

Cannabis Tax Ballot Measure

• The board selected Option 1, a general tax requiring a majority vote, over a special tax requiring a two-thirds vote.
• Revenues from the general tax will be allocated through the annual budget process for any governmental purpose.
• The board approved the first reading of the ballot language and appointed members to draft the argument in favor of the measure.

Resolution of Commendation

• The board adopted a resolution honoring five county employees for their service during the Thomas Fire.
• The commendation recognized contributions including distributing N95 masks, providing animal shelter, and offering medical care at shelters.

National Children's Oral Health Month

• The board adopted a resolution proclaiming February 2018 as National Children's Oral Health Month in Santa Barbara County.
• The resolution highlighted the importance of oral health to overall well-being and the preventability of dental disease.

General Services Department - ERG Operating Company LLC

• The board adopted recommendations regarding the Fox and Petroleum Pipeline project in the Santa Maria area.
• Staff corrected the board letter to reflect the project's location in the third district and the correct RP file number.

Treasurer/Tax Collector - Housing Authority Bonds

• The board approved TEFRA hearings for the issuance of bonds by the Housing Authority of the County of Santa Barbara.
• The bond issuances finance the construction of 80 affordable units for special needs individuals and the rehabilitation of 48 senior units.
• Staff clarified that the Housing Authority, not the county, is responsible for debt repayment.

Closed Session

• The board discussed litigation involving the City of Goleta and anticipated litigation.
• Negotiations regarding submerged lands off Carpinteria and labor agreements for various bargaining units were addressed.
• No reportable actions were taken during the closed session.

Agenda Item: Cannabis Land Use Ordinances (LUDC, CZO, MLUDC) and Environmental Impact Report

Public Comment

• Public comments were received regarding the proposed cannabis land use ordinances, the Environmental Impact Report (EIR), and related zoning standards. Speakers represented labor unions, environmental groups, agricultural operators, residents, and municipal representatives.
• Labor and Industry Support: UFCW Local 770 supported the proposed taxation scheme and requested revenue allocation for labor law enforcement. SEIU Local 620 supported the ordinance and urged the placement of a general cannabis tax on the June 2018 ballot. Various agricultural operators and industry representatives supported cannabis cultivation as a viable agricultural commodity, requested streamlined permitting processes, and supported odor control requirements. Some speakers argued that cannabis is an agricultural commodity and that requiring Conditional Use Permits (CUPs) for all operations would overburden staff. Others supported the 600-foot buffer for retail to preserve commercial space in college towns.
• Environmental and Community Opposition: 350 Santa Barbara opposed the construction of a new oil pipeline, citing climate change goals. Residents and community groups expressed concerns regarding odor, traffic, property values, and public safety. Specific requests included one-mile buffer zones, prohibitions on outdoor/hoop cultivation near residential and school zones, and higher fines for non-compliance. The Carpinteria Valley Association and City of Carpinteria representatives requested a 1,000-foot buffer, caps on licenses/acreage, and prohibitions on volatile manufacturing in agricultural zones. The City of Goleta requested prohibitions on cultivation in Ag-1 lands, one-mile setbacks from residential zones, and major CUPs for cultivation near residential areas.
• Legal and Technical Perspectives: Legal counsel noted that the board operates under a "rational basis" review standard. Counsel advised that the board could adopt small changes immediately but recommended staff return for fuller analysis on larger changes to avoid unintended consequences in the environmental document. Counsel clarified the permit structure as a "three-valve" system: a county land use permit, a potential county business license, and a state cannabis license.

Staff Presentation

• Staff presented recommendations for the Cannabis Land Use Ordinances for the Land Use Development Code (LUDC), Coastal Zoning Ordinance (CZO), and Montecito Land Use Development Code (MLUDC).
• Zoning and Permit Levels: Cultivation and nurseries are proposed to be allowed in AG-1, AG-2, MRP, M1, and M2 zones, and prohibited in all commercial zoning districts. Other commercial cannabis activities (manufacturing, retail, distribution) are permitted in various zones with specific permit levels. Micro-businesses are allowed in AG-1, AG-2, C1, C2, C3, CS, M1, and M2 zones, with retail limited to delivery in agricultural zones.
• Buffers and Setbacks: The noticing buffer for property owners was increased from 300 feet to 1,000 feet. The buffer from sensitive receptors (schools, daycares, youth centers) was increased from the state mandate of 600 feet to 1,000 feet. Volatile manufacturing requires an additional buffer of 1,200 feet. Outdoor cultivation on AG-1 lots of 20 acres or less is prohibited. Outdoor cultivation on AG-1 lots must not be located within 1,500 feet of residential zones or schools. Cultivation in EDRN zones or accessed via EDRN roadways requires a Major CUP.
• Odor Abatement: A comprehensive odor abatement plan is required for all cultivators, nurseries, manufacturers, distributors, and micro-businesses, certified by a professional engineer or industrial hygienist. Systems must eliminate odor, not just mask it. Operators must designate a 24-hour local contact and maintain a complaint tracking system. Corrective action is required if three complaints are verified within a 365-day period. No odor abatement plan is required for AG-2 zoning unless a CUP is also required.
• Other Standards: Energy conservation plans were initially included but were deleted from the land use ordinance, with staff anticipating they would be included in the licensing scheme. A definition for "premise" was added, defined as the contiguous area occupied by one state license. The Agricultural Preserve Advisory Committee (APAC) recommended that cannabis not be treated as an agricultural product but as a compatible use for Williamson Act purposes.
• EIR Findings: Significant and unavoidable impacts were identified in air quality (odor), prime soils, traffic, noise, and visual resources. Mitigation measures would be applied, but effects would likely remain significant, particularly regarding odor.

Board Discussion and Amendments

• The Board discussed the staff recommendations and made several amendments to the proposed ordinances.
• Buffer Adjustments: The Board directed staff to change the buffer for cannabis operations from 1,000 feet to 750 feet, except for nurseries, which would retain a 600-foot buffer. The measurement was changed from "property line" to "premise."
• Volatile Manufacturing: The specific 1,200-foot buffer for volatile manufacturing was deleted, aligning it with the general 750-foot buffer.
• Energy Conservation Plan: The requirement for an energy conservation plan was deleted from the land use ordinance, to be addressed in the licensing scheme.
• Odor Abatement: A provision was added stating that no odor abatement plan is required for AG-2 zoning unless a CUP is required.
• Outdoor Cultivation Prohibitions: Language was added to prohibit outdoor cannabis cultivation (including hoop structures) on AG-1 lots of 20 acres or less, and on lots zoned AG-15 or AG-110.
• New Standards for AG-1: Outdoor cultivation on AG-1 lots shall not be located within 1,500 feet of residential zones or schools. Outdoor cultivation on AG-2 lots adjacent to EDRNs or urban boundaries requires a CUP.
• Definition of Premise: A definition for "premise" was added to the LUDC and CZO, specifying it as the contiguous area occupied by one state license.
• CZO Amendments: Similar changes were applied to the Coastal Zoning Ordinance, including the 750-foot buffer, 600-foot nursery buffer, 1,500-foot setback for outdoor cultivation from residential/schools, CUP requirement for AG-2 adjacent to EDRNs, deletion of energy conservation plan, and odor abatement exemption for AG-2 without CUP.
• Micro-businesses: Staff clarified that micro-businesses are allowed in AG-1, AG-2, C1, C2, C3, CS, M1, and M2 zones, with retail limited to delivery in agricultural zones.
• Complaint Threshold: Staff noted that the threshold for corrective action was changed from three verified complaints in 30 days to three verified complaints in 365 days to allow staff more leeway for corrective actions.

Motion and Vote

• A motion was made to adopt the amended Cannabis Land Use Ordinances for the LUDC, CZO, and MLUDC, incorporating the changes discussed.
• Outcome: The motion was passed.

Agenda Item: Cannabis Tax Ballot Measure

Staff Presentation

• Staff presented two options for the cannabis tax measure to be placed on the June 5 ballot:
• Option 1: General Tax. Requires a majority vote of the board and a majority vote of the electorate. Revenues would be used for any governmental purpose and allocated through the annual budget process.
• Option 2: Special Tax. Requires a two-thirds vote of the board and a two-thirds vote of the electorate. Revenues would be restricted to specific purposes, including enforcement, investigation, and prosecution of cannabis operations, as well as services for the Sheriff, District Attorney, Public Defender, Behavioral Wellness, Public Health, Planning and Development, and the Agricultural Commissioner’s Office.
• Staff noted that both options were drafted to apply only to the unincorporated area of the county, but alternative language for a county-wide tax was available. Staff outlined the timeline: First reading today, second reading and resolution adoption next week (February 13), subcommittee draft of the argument in favor due February 27, and submission to the Elections Division by February 28. Staff noted the 75-word limit for the ballot description and the requirement to include rates, estimated revenue, and duration (no end date).

Board Discussion and Motion

• The board discussed the choice between the general and special tax options. Supervisor Lavinino proposed selecting Option 1 (General Tax). A motion was made to: 1. Select Option 1 (General Tax). 2. Adopt the amended ballot language. 3. Appoint board members to draft the argument in favor of the measure.
• The motion was seconded.
• Outcome: The motion to select the General Tax option and proceed with the first reading passed.

Agenda Item: Resolution of Commendation (Item A11)

Discussion

• Supervisor Williams presented a resolution of commendation honoring Stacey Rosenberger, Jen Adame, Nancy Silva, Norman Villegas, and Hortensia Cruz as the Santa Barbara County Employees of the Month for February 2018. The resolution recognized their work during the Thomas Fire, including distributing N95 masks, providing animal shelter, providing medical care at shelters, and providing information in English and Spanish.

Motion and Vote

• A motion was made to adopt the resolution. The motion was seconded.
• Outcome: The resolution passed.

Agenda Item: National Children's Oral Health Month (Item A12)

Discussion

• Supervisor Hartman presented a resolution proclaiming February 2018 as National Children's Oral Health Month in Santa Barbara County. The resolution highlighted the importance of oral health to overall health and the preventability of dental disease.

Motion and Vote

• A motion was made to adopt the resolution. The motion was seconded.
• Outcome: The resolution passed.

Agenda Item: General Services Department - ERG Operating Company LLC (Item A6)

Public Comment

• Public comment was received from Emiliano Campobello, Noel McGivern, Emily Williams, and Helena Simon. Noel McGivern, a resident of Rancho Del Ciervo, expressed concern about the impact of cannabis cultivation on nearby residential areas, citing odor, traffic, and safety issues.

Board Discussion

• The board discussed the recommendations regarding the ERG Operating Company LLC Fox and Petroleum Pipeline project in the Santa Maria area. Staff noted corrections to the board letter: the project is in the third district, not the second, and the RP file number should be 003552, not 003779. Staff noted an addendum was posted adding a case of significant exposure to litigation to the closed session agenda.

Motion and Vote

• A motion was made to adopt the recommendations. The motion was seconded.
• Outcome: The motion passed.

Agenda Item: Treasurer/Tax Collector - Housing Authority Bonds (Items 1 and 2)

Discussion

• Staff presented TEFRA hearings for the issuance of bonds by the Housing Authority of the County of Santa Barbara.
• Item 1: Financing the new construction of 80 units of affordable multi-family housing for individuals and families with special needs at Depot Street.
• Item 2: Financing the acquisition and rehabilitation of 48 units of affordable multi-family housing for seniors at Parkside Gardens Apartments.
• Staff clarified that the issuer (Housing Authority) is responsible for debt repayment, not the county.

Motion and Vote

• A motion was made to hold the TEFRA hearings and approve the bond issuances. The motion was seconded.
• Outcome: The motion passed.

Closed Session

• The board entered closed session to discuss: 1. Litigation: Beverage v. City of Goleta. 2. Anticipated litigation. 3. Real property negotiations regarding submerged lands off Carpinteria. 4. Labor negotiations for various bargaining units. No reportable actions were taken in closed session.