REGULAR MEETING OF THEFOSTER CITY PLANNING COMMISSION

Council Chambers620 FOSTER CITY BOULEVARD, FOSTER CITY, CA 94404

7:00 PM

Thursday, June 21, 2018

AGENDA

1 CALL TO ORDER

2 ROLL CALL

Noemi Avram, ChairDan Dyckman, CommissionerPaul C. Williams, Commissioner

Oliver "Ollie" Pattum, CommissionerRichard D. Wykoff, Commissioner

3 COMMUNICATIONS FROM THE PUBLIC

Under this agenda item, members of the public may bring items not already on the agenda. The Ralph M. Brown Act (the State local agency open meeting law) prohibits the Planning Commission from acting on any matter that is not on the agenda. Speakers are asked to fill out a "request to speak" card located on the table by the door and hand it to staff. Unless additional time is authorized by the Chair of the Planning Commission remarks should be limited to three minutes.

4 CONSENT CALENDAR

All matters listed under this item are considered to be routine by the Planning Commission and will be enacted by one motion in the form listed below. There will be no separate discussion of these items unless a citizen or a member of the Planning Commission so requests. If discussion is required, that item will be removed from the Consent Calendar and will be considered separately at the conclusion of the Consent Calendar. Vote may be by roll call.

4.1. MINUTES OF MAY 3, 2018 REGULAR MEETING

4.2. MINUTES OF MAY 17, 2018 REGULAR MEETING

5 CONTINUED PUBLIC HEARING

6 NEW PUBLIC HEARING

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6.1. RECOMMENDATION OF INTRODUCTION OF ALTERNATIVE ORDINANCES TO EITHER:(A) REPEAL INTERIM ORDINANCE NO. 609, ADD CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMEND THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING AND PROHIBIT MEDICAL CANNABIS DISPENSARIES AND COMMERCIAL CANNABIS ACTIVITIES IN ALL ZONING DISTRICTS; OR(B) REPEAL INTERIM ORDINANCE NO. 609, ADD CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMEND THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING AND PROHIBIT MEDICAL CANNABIS DISPENSARIES AND COMMERCIAL CANNABIS ACTIVITIES IN ALL ZONES EXCEPT FOR STATE­LICENSED TESTING FACILITIES IN CHAPTER 17.08 COMMERCIAL MIXED DISTRICTS (C­M) NORTH OF STATE ROUTE 92 AND CHAPTER 17.30 LIGHT INDUSTRIAL DISTRICTS (M­1), SUBJECT TO CONDITIONAL USE PERMIT; AND RECOMMENDATION OF CEQA EXEMPTION FOR BOTH (A) AND (B)

1. Open Public Hearing2. Staff Report3. Public Testimony4. Close Public Hearing5. Adopt Resolution No. P­ ­18 recommending City Council approval of Ordinance No. 609 prohibiting medical cannabis dispensaries and commercial cannabis activities in all zoning districts or Adopt Resolution No. P­ ­18 recommending City Council approval of Ordinance No. 609 prohibiting medical cannabis dispensaries and commercial cannabis activities in all zoning districts except for state licensed testing facilities in Commercial Mixed Districts (C­M) north of Highway 92 and Light Industrial Districts (M­1) or Adopt Resolution No. P­ ­18 recommending that the City Council not approve Ordinance 609 and allow medical cannabis dispensaries and commercial cannabis activities Project Planner: Curtis Banks, Community Development Director, 650­286­3239 or cbanks@fostercity.org

7 OLD BUSINESS

8 NEW BUSINESS

8.1. PLANNING COMMISSION REORGANIZATION

9 STUDY SESSION

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9.1. REVIEW SITE AND CONCEPTUAL PLANS FOR THE PROPOSED REDEVELOPMENT OF THE COSTCO SITE TO CONSTRUCT A ± 155,000 SQUARE­FOOT BUILDING WITH PARKING ON THE FIRST LEVEL TO REPLACE THE EXISTING ± 120,338 SQUARE­FOOT BUILDING AND ADD A NEW GAS STATION – COSTCO WHOLESALE CORPORATION – 1001 METRO CENTER BLVD. – TOWN CENTER NEIGHBORHOOD – APN 094­526­100 – UP2018­0010, RZ2018­0002 AND EA2018­0001

1. Staff Report2. Public Testimony3. Discussion Project Planner: Timothy Maier, Associate Planner, 650­286­3237 or tmaier@fostercity.org

10 COMMUNITY DIRECTOR REPORT

11 STATEMENTS AND REQUESTS FROM THE COMMISSIONER

12 ADJOURNMENT

NOTICES

Legal notices were posted in accordance with State law at City Hall, 610 Foster City Blvd.; Foster City Public Library, 1000 E. Hillsdale Blvd.; Foster City Recreation Center, 650 Shell Blvd. (near the south building entrance); Metro Center Sign Kiosks (between 921 and 987 E. Hillsdale Blvd.); Sea Cloud Park, Pitcairn Drive (on the snack shack/restroom building); and on those properties about which a public hearing was held; and published in a newspaper of general circulation. Additionally, owners of property within 300 feet were mailed Notice of Public Hearing a minimum of ten (10) days in advance. Agendas for Planning Commission Meetings are posted on cable television channel 27 and the City’s web site (www.fostercity.org) several days in advance of the meetings.

EVIDENCE

Quasi­judicial Matters

California law requires that quasi­judicial matters be based on evidence. Applications before the Planning Commission involve matters that are quasi­judicial and therefore decisions must be supported by evidence.

In General

All oral, written or pictorial evidence to be considered by the Planning Commission must be received prior to a decision being rendered by the Commission. Written, documentary, or pictorial evidence shall be collected and kept by the City for record purposes, and must be made available to an applicant, appellant or the public prior to a decision being rendered by the Commission. Evidence received or submitted during a public hearing or public meeting while an item is being discussed and evaluated by the Planning Commission shall be deemed to have met this requirement. Evidence submitted for the record and for Planning Commission consideration may take the form of oral testimony, written information, documents, pictures, video tapes, audio tapes, and similar information. All

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evidence submitted must be of a length that is practicable for use by Commission members, and depending on its length and how it must be accessed or the need for special equipment in order to access it, must be received in a timely manner so as to afford the Commission and the public a reasonable opportunity to evaluate it and to allow an applicant, appellant and/or the public an opportunity to discuss, question and rebut it.

Any written material, correspondence or documents provided to a majority of the Planning Commission regarding any item on this agenda after the agenda packet was distributed will be made available for public inspection in the Community Development Department at City Hall located at 610 Foster City Blvd., Foster City, 94404, during normal business hours and at the meeting.

Information not admitted into the formal record shall not be used in rendering a decision.

APPEALS

All actions of the Planning Commission are appealable to the City Council within ten (10) calendar days of the date the action was taken. All appeals must be submitted in accordance with Section 17.06.150, Appeal Procedure, of Title 17 of the Foster City Municipal Code (copies available at City Hall). The required appeal fee as adopted by the City Council must accompany an appeal to the City Council of a decision of the Planning Commission or it will be considered incomplete.

MEETINGS

Unless otherwise scheduled, the Planning Commission meets in Study Session on the first and third Tuesdays of each month and conducts regular business and Public Hearings on the first and third Thursdays of each month. Meetings begin at 7:00 p.m. and are held in the Council Chambers, 620 Foster City Boulevard.

Any attendee wishing special accommodations at the meeting should contact Becki Hanan, Management Coordinator, Community Development Department, at (650) 286­3225, or send an electronic mail request to bhanan@fostercity.org at least 48 hours in advance of the meeting or contact the staff at planning@fostercity.org per the Americans with Disabilities Act.

PLANNING COMMISSION AGENDAS AND MINUTES ARE POSTED ON LINE AT: WWW.FOSTERCITY.ORG

Regular meetings replay on FCTV Channel 27 at 1:00 p.m. on Friday and 5:00 p.m. on Sunday, following the meeting.

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PLANNING COMMISSION MINUTES MAY 3, 2018

REGULAR MEETING OF THE FOSTER CITY PLANNING COMMISSION Council Chambers – 620 Foster City Boulevard – Foster City M I N U T E S MAY 3, 2018 1. CALL TO ORDER

At 7:00 p.m. by Chair Avram

2. ROLL CALL

Present: Commissioners Dyckman, Pattum, Wykoff and Chair Avram Absent: Commissioner Williams Staff Present: Curtis Banks, Community Development Director; Marlene

Subhashini, Planning Manager

3. ORAL COMMUNICATIONS FROM THE PUBLIC

1. None 4. CONSENT CALENDAR

1. MINUTES OF APRIL 19, 2018 REGULAR MEETING

ACTION: Motion by Commissioner Pattum, seconded by Commissioner Dyckman to approving the Minutes of April 19, 2018 Regular Meeting, passed 4-0-0-1 (Williams)

5. CONTINUED PUBLIC HEARING

1. None 6. NEW PUBLIC HEARING

1. None 7. OLD BUSINESS

1. None 8. NEW BUSINESS

1. DISCUSS DESIGN OPTIONS FOR THE LEVEE WALL AND LANDSCAPING – THE LEVEE PROTECTION PLANNING AND IMPROVEMENTS PROJECT (CIP 301-657)

The Commissions were generally supportive of the options recommended by staff and had the following questions/comments:

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PLANNING COMMISSION MINUTES MAY 3, 2018

• Questions about future adaptation to the 2100 SLR to which staff responded that we would be using Off Shore Solutions

• Questions related to long term maintenance to which staff responded that the expected life of paint is 15 years, 80 years for Sheet piles and 20 years for topcoat

• Landscaping/Plants should be salt tolerant • Lightweight fill should be considered to minimize settlement • Importance of function than form/appearance and the use of textured wall at

various access points • Cost justification and paying for enhanced aesthetics should be kept in mind • Like the appearance of the block wall • Wall shouldn’t look the same and there should be variety as long as there is no

substantial increase in cost • Use relief treatment (different species and plants) • Use relief near the crossing at Beach Park Boulevard • The levee should have an identification/branding defined in a certain pattern • Minimize the monotony of the appearance (relief of wall representing species,

interesting kiosks) • Look into flooring changes by the bench rest areas/entry points to emphasize

sense of arrival, relaxation • Use articulation to create excitement – variation in wall height, treatment and

flooring changes 9. STUDY SESSION 1. None 10. ADMINISTRATIVE BUSINESS/REPORTS AND REFERRALS

1. None

11. STATEMENTS AND REQUESTS FROM THE COMMISSIONERS 1. None

12. ADJOURNMENT

Adjourned at 7:42 p.m. to a May 17, 2018 Regular Meeting, Council Chambers, 620 Foster City Boulevard, Foster City, California.

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PLANNING COMMISSION MINUTES MAY 3, 2018

PASSED AND ADOPTED by the Planning Commission of the City of Foster City at a Regular Meeting thereof held on June 21, 2018 by the following vote:

AYES, COMMISSIONERS: NOES, COMMISSIONERS: ABSTAIN, COMMISSIONERS: ABSENT, COMMISSIONERS:

______________________________ NOEMI AVRAM, CHAIR ATTEST: ______________________________ CURTIS BANKS, SECRETARY

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PLANNING COMMISSION MINUTES MAY 17, 2018

REGULAR MEETING OF THE FOSTER CITY PLANNING COMMISSION Council Chambers – 620 Foster City Boulevard -- Foster City M I N U T E S MAY 17, 2018 1. CALL TO ORDER

At 7:00 p.m. by Williams

2. ROLL CALL

Present: Commissioners Pattum, Williams and Wykoff

Absent: Commissioner Dyckman and Chair Avram

Staff Present: Curtis Banks, Community Development Director; Marlene Subhashini, Planning Manager; Monica Ly, Assistant Planner

3. COMMUNICATIONS FROM THE PUBLIC

1. None 4. CONSENT CALENDAR

1. None

5. CONTINUED PUBLIC HEARING

1. None 6. NEW PUBLIC HEARING

1. REVIEW AND DISCUSS SITE AND ARCHITECTURAL PLANS FOR A NEW 6-STORY PARKING GARAGE (PG-324) WITH 519 PARKING SPACES LOCATED AT THE NORTHWEST CORNER OF REEF DRIVE AND MARINERS ISLAND BLVD. – 324 LAKESIDE DR. – GILEAD SCIENCES, INC. – NEIGHBORHOOD VP – APN: 094-901-390 – UP2018-0008

ACTION: Motion by Commissioner Pattum, seconded by Commissioner Wykoff to close public hearing, passed 3-0-0-2 (Dyckman, Avram) ACTION: Motion by Commissioner Wykoff, seconded by Commissioner Pattum, to Adopt Resolution No. P-07-18, approving UP2018-0008, passed 3-0-0-2 (Dyckman, Avram)

2. USE PERMIT REQUEST TO ADD A PREFABRICATED BUILDING FOR USE AS AN ELECTRIC BOAT RENTAL CONCESSION FACILITY AND MAKE SITE MODIFICATIONS TO THE UNIMPROVED PORTION OF THE FOSTER CITY BOAT PARK LAND LOCATED AT THE INTERSECTION OF BOUNTY DR. & FOSTER CITY BLVD.– ESTERO MUNICIPAL IMPROVEMENT DISTRICT – APN: 094-472-030 – NEIGHBORHOOD 1 – UP2018-0019

ACTION: Motion by Commissioner Williams to close public hearing

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PLANNING COMMISSION MINUTES MAY 17, 2018

ACTION: Motion by Commissioner Williams, seconded by Commissioner Pattum, to Adopt Resolution No. P-08-18, approving UP2018-0019 with an amendment to the conditions of approval that for larger events, 25 or more people shall be changed to 30 or more people, passed 3-0-0-2 (Dyckman, Avram)

7. OLD BUSINESS

1. None 8. NEW BUSINESS

1. None 9. STUDY SESSION

1. TO REVIEW THE CONCEPTUAL SITE PLAN FOR PILGRIM TRITON PHASE C AS REVISED TO INCLUDE 22 UNITS OF WORKFORCE HOUSING AND 70 FOR-SALE TOWNHOUSE UNITS ON 4.78 ACRES TO REPLACE THE EXISTING ENTITLEMENT OF 225,943 SQ. FT. OF COMMERCIAL OFFICE AND 17 TOWNHOUSE UNITS IN THE PILGRIM TRITON MASTER PLAN DEVELOPMENT. THE 4.78 ACRE SITE INCLUDES 3.66 ACRES AT 551-565 PILGRIM DRIVE AND 1.12 ACRES AT 1159 TRITON DRIVE The Planning Commissioners had the following comments: • Some items still need work for the Use Permit, such as park design, building

articulation, appearance from Hillsdale • The applicant should try to find a compromise to address the loss of small business

space • Some Commissioners were not in favor of the exceptions to the parking

requirements • Some Commissioners were not in favor of the proposed change in land use

10. COMMUNITY DIRECTOR REPORT

1. None 11. STATEMENTS AND REQUESTS FROM THE COMMISSIONERS

1. None

12. ADJOURNMENT

Adjourned at 9:16 PM to a June 21, 2018 Regular Meeting, Council Chambers, 620 Foster City Boulevard, Foster City, California.

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PLANNING COMMISSION MINUTES MAY 17, 2018

PASSED AND ADOPTED by the Planning Commission of the City of Foster City at a Regular Meeting thereof held on June 21, 2018 by the following vote:

AYES, COMMISSIONERS: NOES, COMMISSIONERS: ABSTAIN, COMMISSIONERS: ABSENT, COMMISSIONERS:

______________________________ NOEMI AVRAM, CHAIR ATTEST: ______________________________ CURTIS BANKS, SECRETARY

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DATE: JUNE 21, 2018 STAFF REPORT AGENDA ITEM NO. 6.1

TO: FOSTER CITY PLANNING COMMISSION PREPARED BY: CURTIS BANKS, COMMUNITY DEVELOPMENT DIRECTOR CASE NO.: RZ2018-0003 OWNER: CITY OF FOSTER CITY PROJECT LOCATION: CITYWIDE REQUESTED ACTION/PURPOSE To consider and adopt a Resolution recommending City Council approval to: 1. Amend the City of Foster City Municipal Code to add a new chapter 8.10 establishing

cannabis regulations for personal use, and banning all commercial cannabis activities in the city, and make corresponding changes to the zoning code by adding an exclusionary zoning provision and banning commercial cannabis activities in all zones; Or

2. Amend the City of Foster City Municipal Code to add a new chapter 8.10 establishing

cannabis regulations for personal use, and banning all commercial cannabis activities in the city, except for cannabis testing laboratories, and make corresponding changes to the zoning code by adding an exclusionary zoning provision, and to allow cannabis testing laboratories as conditional uses in the Commercial Mix District (C-M) north of State Route 92, and the Light Industrial District (M-1).

ENVIRONMENTAL REVIEW The proposed ordinance is exempt from the California Environmental Quality Act (CEQA) pursuant to the general rule in CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that it does not have the potential to cause a significant environmental impact. NOTICING / PUBLIC OUTREACH The public was advised of this Public Hearing in the following ways:

• 1/4 page ad in the Islander on June 6, 2018 • Foster City TV Channel June 7, 2018 to June 21, 2018 • Public Posting Places on June 1, 2018 • Marquee on June 14, 2018 through June 21, 2018 • Website posting on May 31, 2018

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BACKGROUND On November 8, 2016, California voters passed Proposition 64, the “Control, Regulate, and Tax Adult Use of Marijuana Act” (AUMA). AUMA legalized adult (ages 21 and older) use of cannabis, and established a State licensing and regulatory framework for the cultivation, manufacture, transportation, storage, distribution, sale, and taxation of adult-use cannabis. Since then, the State has passed legislation to consolidate the licensing and regulatory framework for medicinal and adult-use cannabis. On January 2, 2018, the State began issuing licenses for cannabis businesses. Under the new rules, local jurisdictions may regulate, but cannot ban, personal cultivation of up to six cannabis plants within a single private residence. A local jurisdiction may ban or regulate personal outdoor cultivation. Further, a local jurisdiction may ban or regulate all commercial cannabis activities, except for the lawful transportation of cannabis (or cannabis products) on public roads. On October 17, 2016, in anticipation of the passage of Proposition 64, the City Council enacted Interim Urgency Ordinance No. 603, which imposed a temporary ban on commercial cultivation and distribution of non-medical marijuana, as well as a ban on personal outdoor cultivation, to provide time to consider the impacts of the new legislation. The temporary ban was initially extended until October 6, 2017 to allow the Council time to consider whether it wanted to permanently adopt the ban or to adopt other local regulations. Council considered the matter again at its August 21, 2017 meeting, but decided to delay giving staff policy direction at that time because all members of Council were not present; Council did, however, extend the temporary ban until October 6, 2018. On March 5, 2018, Council considered the matter again. After discussion, the consensus of the Council was to prohibit all commercial cannabis businesses within the city but allow delivery through the city, to ban all outdoor cultivation, and to not require a permit for personal indoor growth, subject to some simple regulations to limit potential negative impacts. Since the March 5th meeting, the City Manager and Mayor have been approached by a member of the local business community requesting consideration of allowing cannabis testing laboratories. The existing business currently conducts other types of industrial testing, and would like to be able to conduct cannabis testing as well. State law establishes one license type pertaining to testing (Type 8). To assure integrity of the testing process, any entity or person that holds a Type 8 license is not allowed to have any connection or interest in any other type of cannabis business. An entity with a testing license would perform tests on cannabis or cannabis products to assess concentration and contamination, based on standards developed by the State. Based on the time constraints caused by the interim ordinance’s expiration date, staff has prepared two ordinances for consideration, in case the Commission is interested in recommending to the Council allowing testing laboratories. ANALYSIS Draft Ordinance “A” - Prohibition Staff has prepared a proposed ordinance (Draft Ordinance “A”) consistent with the direction expressed at the March meeting. The ordinance prohibits cannabis businesses (both medicinal and recreational) in the City. The prohibition is expressed as a health and safety regulation in proposed Foster City Municipal Code (“FCMC”) Chapter 8.1, Cannabis Regulations, and as a land use restriction in proposed FCMC Section 17.11.010. The ordinance does allow deliveries to be made from businesses outside the city to a direct recipient, and provides that anyone

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making deliveries is required to obtain a business license. In addition, the proposed ordinance updates FCMC Section 17.060.020 to directly state that the zoning code is exclusionary in the sense that any use not listed is intentionally excluded. Indoor personal cannabis cultivation is allowed under proposed FCMC Chapter 8.10, only if it is in compliance with the State rules established in Health and Safety Code Section 11362.2 and the following local requirements: (1) Odor from cultivation must not be detectible outside of the private residence in which it is

cultivated. (2) Cultivation must comply with and not contribute to violation of the State Housing Law and

the California Buildings Standards Codes as locally adopted and amended, the regulations for existing buildings in California Code of Regulations, Title 25, and city property maintenance standards applicable to residential property.

(3) Cultivation must at all times be a secondary use to an occupied private residence. The control of odor is intended to prevent personal cannabis cultivation from interfering with neighbors’ use and enjoyment of their properties, and to deter crime by not alerting thieves to the presence of cannabis. Conditioning cultivation on compliance with State housing and building laws and local property maintenance standards will help ensure cultivation complies with building, fire and electrical codes, and does not contribute to substandard housing conditions or property nuisance conditions. Draft Ordinance “B” – Cannabis Testing Laboratories allowed as conditional use Staff has also prepared a proposed ordinance (Draft Ordinance “B”) that would contain the same provisions related to personal cultivation, deliveries, and banning commercial cannabis activities, except that it would allow cannabis testing laboratories as a conditional use in that part of the Commercial Mix (C-M) District that is located north of State Route 92, and in the Light Industrial (M-1) District. The distinction between the portions of the C-M District located north and south of State Route 92 is that the southern portion contains residential mixed use projects, where the northern portion does not. The proposed ordinance would not allow testing laboratories in residential neighborhoods. Interested applicants would be required to comply with all State law licensing requirements, obtain a City business license and a conditional use permit from the Planning Commission. The ordinance contains additional regulations to ensure the public safety, as set forth in proposed ordinance Section 8.10.070, as follows: Section 8.10.070. Requirements for cannabis testing laboratories. A. Additional business license requirements.

1. A cannabis testing laboratory business license shall not be issued to an individual or a business entity associated with an individual who has violated the provisions of California Health and Safety Code Section 11590.

2. A cannabis testing laboratory business license shall be issued to the specific person or persons listed on the application.

3. A cannabis testing laboratory business license is not transferable and does not run with the land or with the business. Any change to the business location, organizational structure, or ownership requires a new application with associated fees.

4. A licensed testing laboratory shall comply with all State and local regulations. 5. The testing laboratory shall maintain all certifications required by the State. 6. A licensed testing laboratory business, its owners, and employees may not hold an

interest in any other cannabis business except another testing business. 7. Inspections by the city fire chief or designee may be conducted anytime during the

business’s regular business hours.

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B. Maintenance of Records and Reporting. All records of the following activities shall be maintained and available to the city for at least seven years. Records shall be produced within twenty-four hours of a request by an authorized city representative. Records shall be kept in a manner that allows the records to be produced for the city in either hard copy or electronic form, whichever the city requests. 1. Financial records, including, but not limited to: bank statements; transaction invoices;

receipts; tax records; audits; and all records required by the California State Board of Equalization, other State of California agencies, the city, and other local agencies.

2. Personnel records, including each employee’s full name, social security or individual tax payer identification number, date of beginning employment, confirmation of background check or Live Scan completion, and date of termination of employment, if applicable.

3. Training records, including, but not limited to, the content of the training provided and the names of the employees that received the training.

4. Contracts with other licensees regarding commercial cannabis activity. 5. Permits, licenses, and certifications to conduct the testing laboratory. 7. Proof of liability and workers’ compensation insurance. 8. Limited access area logs and copies of current versions of any applicable plans and

procedures required by state or local licensing authorities. C. Operational Standards for Cannabis Testing Laboratories.

1. Interior and exterior locations of the business property shall be monitored at all times by closed circuit cameras for security purposes. The cameras and recording system shall be of adequate quality, color rendition and resolution to allow the sufficient identification of any individual committing a crime on the location premises. Cameras shall record twenty-four hours a day at a minimum of twenty frames per second.

2. The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the local law enforcement. The business shall also provide the local law enforcement with the URL address of any on-site web-based video surveillance to monitor remotely at any time without a warrant, subpoena or court order.

3. All controlled access areas, security rooms, and points of ingress/egress to limited access areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty feet. Camera video recordings shall be maintained unaltered in a secure location for a period of not less than thirty calendar days and be available for inspection at any time.

4. Recorded images shall clearly and accurately display the time and date. Recordings shall be maintained, unaltered, for a period of not less than thirty calendar days and shall be stored digitally. The city or law enforcement may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the city or law enforcement may seek a warrant or court order for the recordings.

5. Testing laboratories shall create and maintain an active account within the state’s track and trace system prior to commencing any activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within twenty-four hours of the system being available.

6. No testing facility may be located within a six-hundred-foot radius from a school, day care home, recreational center, youth center, library, or public park as required by Section 11362.768 of the California Health and Safety Code.

7. All agents, employees, or persons acting for a licensee shall complete a Live Scan background check.

8. The testing laboratory shall have a centrally-monitored fire and burglar alarm system that shall include all perimeter entry points and perimeter windows.

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9. The business licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system. The alarm company shall obtain a city business registration.

10. During nonbusiness hours, cannabis shall be secured using a lockable storage system approved by local law enforcement.

D. Insurance Requirements and Indemnity.

1. The business licensee shall maintain comprehensive general liability and workers’ compensation insurance in amounts and of the types that are acceptable to the city manager or designee. The city of Foster City shall be named as additional insured on all city-required policies.

2. To the extent permitted by law, the business licensee shall indemnify, defend, and hold harmless the city, its city council, its officers, attorneys, employees and agents (“the indemnified parties”) from and against any claim, action or proceeding brought by a third party against the indemnified parties to attack, set aside or void, any approval authorized hereby for the testing laboratory activity, including, without limitation, reimbursing the city for its actual attorney fees and costs incurred in defense of the action. The city may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

Staff Comments/Recommendations The issue of testing was not raised during the City Council discussions regarding cannabis regulations. Testing of cannabis is similar to the verifications done for other products that already take place in Foster City such as food products that are tested to determine the levels of pesticides, mold or salmonella and other containments that is done to protect consumers. Labs must be independent and third-party. This means that a person who holds a license for a Cannabis testing lab cannot hold any other cannabis related license. This is important for ensuring that there won't be any conflict of interest between labs and certain clients they test for. Labs must achieve ISO 17025 accreditation. (In most major countries, ISO/IEC 17025 is the standard for which most labs must hold accreditation in order to be deemed technically competent.) Cannabis laboratories must hold both a local permit, as well as a state license, and are regulated by the Bureau of Cannabis Control. The local business interested in testing already does similar testing of other products. The sample size for testing is a few ounces. They anticipate testing 50 to 1,000 samples per month. Laboratories that test cannabis are required to develop and implement a chain-of-custody protocol to ensure accurate documentation of the transport, handling, storage, and destruction of cannabis samples. Laboratories are also required develop and implement security protocols that are capable of preventing diversion, theft, and loss of cannabis samples. Once the testing is complete, the samples are destroyed and kept secured until removed by licensed waste disposal company. The police department has reviewed the proposed regulations to allow testing facilities. They do not have any concerns about allowing cannabis testing. There is already a pharmaceutical presence in the City that is suitably secured and operating under certain safety conditions. As long as the very specific and detailed security operation conditions clearly listed in Draft Ordinance B are adhered to, they do not have any issues with testing taking place operating in the city. SUMMARY The attached Resolution, Exhibit A, contains new Chapter 8.10 establishing cannabis regulations for personal use, and banning all commercial cannabis activities in the city.

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Resolution Exhibit B contains new Chapter 8.10 establishing cannabis regulations for personal use, and banning all commercial cannabis activities in the city, except for cannabis testing laboratories, in the Commercial Mix District (C-M) north of State Route 92, and the Light Industrial District (M-1). Staff recommends that the Planning Commission recommend to the City Council approval by adoption of one of the attached Resolutions. NEXT STEPS The proposed Ordinance, with revisions as recommended by the Planning Commission, will be forwarded to the City Council for consideration at a noticed Public Hearing. INDIVIDUALS, ORGANIZATIONS, AND DOCUMENTS CONSULTED City Attorney Jean Savaree Deputy City Attorney Joan Borger Police Chief Joe Pieriucci California Code of Regulations Title 16 Division 42 Bureau of Cannabis Control California Code of Regulations, Title 25 California Health and Safety Code Proposition 64, the “Control, Regulate, and Tax Adult Use of Marijuana Act” City of Foster City Municipal Code City of Foster City General Plan Scott Japczynski of Quantum Analytics ATTACHMENTS Attachment 1: Resolution (3) Attachment 2: Draft Ordinance Attachment 3: Map of M1 and CM District (North of Highway 92)

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Resolution No. P- -18 RZ2018-0003

DRAFT “A” - PROHIBITION

RESOLUTION NO. P- -18 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF FOSTER CITY RECOMMENDING CITY COUNCIL ADOPTION OF AN ORDINANCE REPEALING INTERIM ORDINANCE NO. 609, ADDING CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMENDING THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING AND PROHIBIT ALL COMMERCIAL CANNABIS ACTIVITIES, INCLUDING MEDICINAL CANNABIS DISPENSARIES, IN ALL ZONING DISTRICTS — CITY OF FOSTER CITY — RZ2018-0003 CITY OF FOSTER CITY PLANNING COMMISSION

WHEREAS, the City of Foster City is proposing addition of an Ordinance to the Foster City Municipal Code, RZ2018-0003; and

WHEREAS, the proposed Ordinance would prohibit all commercial cannabis activities

within the City of Foster City, with the exception of deliveries from an outside jurisdiction, and WHEREAS, the city is authorized to enact this ordinance under authority granted by

California Constitution Article XI, Section 7, and reserved to the city by the “Medicinal and Adult Use Cannabis Regulation and Safety Act”, the “Compassionate Use Act”, and Health and Safety Code Section 11362.2; and

WHEREAS, the proposal has been determined by the Community Development Director

to be exempt from the California Environmental Quality Act (CEQA) pursuant to the general rule in CEQA Guidelines Section 15061(b)(3), which specifies that CEQA applies only to any project with the potential to cause a significant environmental impact; and

WHEREAS, a Notice of Public Hearing was duly posted, published, and mailed for

consideration at the Planning Commission hearing of June 21, 2018, and, on said date, the Public Hearing was opened, held, and closed.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission, based on facts

and analysis in the staff report, written and oral testimony, and exhibits presented, finds that:

1. The proposed amendments are consistent with the Foster City General Plan, specifically, the proposed amendment to the zoning code implements the City’s policy to ban all commercial cannabis activity with the City; and

2. The proposed Ordinance is necessary to achieve the purposes of banning commercial

cannabis activity within the City. BE IT FURTHER RESOLVED that the Planning Commission of the City of Foster City

hereby recommends that the City Council adopt the proposed Ordinance Repealing Interim Ordinance No. 609, Adding Chapter 8.10 “Cannabis Regulations” To Title 8 (Health And Safety)

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Resolution No. P- -18 RZ2018-0001

Of The Foster City Municipal Code, And Amending The Zoning Code To Clarify Exclusionary Zoning And Prohibit All Commercial Cannabis Activities, Including Medicinal Cannabis Dispensaries, In All Zoning Districts (RZ2018-0003) as presented in the attached draft ordinance, Exhibit A, attached hereto and incorporated herein.

PASSED AND ADOPTED as a Resolution of the Planning Commission of the City of

Foster City at a Regular Hearing thereof held on June 21, 2018, by the following vote:

AYES, COMMISSIONERS:

NOES, COMMISSIONERS:

ABSTAIN, COMMISSIONERS:

ABSENT, COMMISSIONERS:

______________________________________ NOEMI AVRAM, CHAIR ATTEST: ________________________________ CURTIS BANKS, SECRETARY

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DRAFT “A” - PROHIBITION

ORDINANCE NO.____________

AN ORDINANCE OF THE CITY OF FOSTER CITY REPEALING INTERIM ORDINANCE NO. 609, ADDING CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMENDING THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING AND PROHIBIT ALL COMMERCIAL CANNABIS ACTIVITIES, INCLUDING MEDICINAL CANNABIS DISPENSARIES, IN ALL ZONING DISTRICTS

CITY OF FOSTER CITY THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES FIND AND

ORDAIN as follows:

WHEREAS, in 1996, California voters passed the Compassionate Use Act which allowed use of marijuana for medical purposes and permitted marijuana dispensaries under certain conditions. In 2015, the California Legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA), establishing a licensing and regulatory framework for medical cannabis; and WHEREAS, on February 16, 2016, the City Council of the City of Foster City (“City Council”) adopted Resolution No. 2016-20, confirming that the cultivation of medical marijuana (State legislation now refers to cannabis rather than marijuana) is prohibited under the City’s permissive zoning ordinance; and WHEREAS, on October 17, 2016, the City Council adopted interim urgency Ordinance No. 603, prohibiting outdoor cultivation of cannabis and prohibiting all commercial cannabis activities; the Ordinance was then extended until October 16, 2017; and WHEREAS, on November 8, 2016, California voters passed Proposition 64, known as the Adult Use of Marijuana Act (AUMA) which legalized the use, sale, and consumption of recreational cannabis by persons 21 years of age and older; and WHEREAS, in June 2017, the California Legislature passed SB 94, which consolidated the state regulation of medical and recreational cannabis into the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), superseding MCRSA; and WHEREAS, in August 2017, the City Council reviewed state and local actions related to cannabis, and directed staff to return at a later date with updated information; the City Council also extended the interim ordinance prohibiting cannabis businesses and outdoor growth until October 6, 2018; and

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WHEREAS, the MAUCRSA: provides base standards for personal cultivation of cannabis and allows local jurisdictions to legislate additional standards, including banning outdoor cultivation for personal use (Health and Safety Code §11362.2); and permits commercial cannabis activities subject to State licensing but preserves local governments’ authority to regulate or ban commercial cannabis activities; and WHEREAS, medical cannabis dispensaries and commercial cannabis dispensaries are not listed in the City’s zoning code as permitted or conditionally permitted land uses, making them prohibited under the principles or permissive zoning provisions. Notwithstanding, the state may not recognize the application of permissive zoning principles as to cannabis-related uses; and WHEREAS, on March 5, 2018, the City Council held a public hearing and determined, in order to protect the public health, safety and welfare, to exercise its authority to ban outdoor cultivation for personal use, to prohibit commercial cannabis activities, with the exception of deliveries, and to amend the zoning code to specifically prohibit medical cannabis dispensaries and commercial cannabis activities in all zoning districts. The City Council also desires to repeal interim ordinance No. 609, as it is superseded by this current action. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY, CALIFORNIA, DOES ORDAIN as follows: SECTION 1. Ordinance No. 609 is hereby repealed, effective on the date upon which this ordinance becomes effective. SECTION 2. ADDING CHAPTER 8.10 TO TITLE 8 OF THE FOSTER CITY MUNICIPAL CODE. A new Chapter 8.10, Cannabis Regulations, shall be added to Title 8, Health and Safety, of the Foster City Municipal Code as follows:

Chapter 8.10 Cannabis Regulations

Section 8.10.010 Purpose Section 8.10.020 Definitions Section 8.10.030 Prohibited Activities Section 8.10.040 Personal Cannabis Section 8.10.050 Enforcement Section 8.10.060 Severability Section 8.10.010. Purpose. (A) The purpose of this chapter is to promote the public health, safety, and welfare by:

(1) Protecting citizens from the secondary impacts associated with medicinal cannabis dispensaries and commercial cannabis activity, including, but not limited to, increased public consumption of cannabis and

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the potential for increased cannabis-related DUIs, illegal resale of medicinal cannabis obtained at low cost from dispensaries, robbery, assaults, and other crimes. (2) Protecting citizens from secondary impacts associated with cannabis cultivation and distribution, including, but not limited to, electrical fires and ignition of volatile chemical substances utilized in the cultivation process, crimes occurring at grow-sites, odors perceptible in neighborhoods, and related nuisances. (3) Preventing increased demands for police response resulting from activities at cannabis cultivation sites, storage facilities, dispensaries, and retail outlets, thereby avoiding reduction in the ability of the city’s public safety officers to respond to other calls for service.

(B) The city adopts this chapter under its authority granted by California Constitution Article XI, Section 7, and reserved to the city by the “Medicinal and Adult Use Cannabis Regulation and Safety Act”, the “Compassionate Use Act”, and Health and Safety Code Section 11362.2. Section 8.10.020. Definitions. The following words and terms as used in this chapter shall have the following meaning: (A) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the 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. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Title, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. (B) “Commercial cannabis activity” means cannabis business or activity licensed under the California Business and Professions Code, Division 10, Cannabis, sections 26000 et seq. (as amended from time to time), including cultivation, possession, manufacture, distribution, processing, storing, laboratory testing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, and any other activities which may be licensed. “Commercial cannabis activity” includes medical cannabis dispensaries. “Commercial cannabis activity” does not include personal uses allowed by Health and Safety Code sections 11362.1 and 11362.2 or personal medicinal uses allowed by sections 11362.765 and 11362.77, as amended from time to time.

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(C) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (D) “Medical cannabis dispensary” is a facility, whether mobile or fixed, where cannabis is made available for medicinal purposes in accordance with any provision of state law that authorizes the use of cannabis for medicinal purposes. Section 8.10.030. PROHIBITED ACTIVIES. (A) Prohibition of commercial activities and cultivation. All commercial cannabis activity and cultivation is prohibited within the city of Foster City. (B) Exception for qualified delivery services. Notwithstanding the prohibition in subdivision (A) above, delivery of cannabis from a business located outside the city of Foster City is permitted subject to the conditions of Business and Professions Code Section 26090, as amended from time to time. Any person or entity making deliveries pursuant to this subdivision must obtain a business license from the city. This section does not permit any temporary, persistent, or fixed physical presence used for commercial cannabis activities besides delivery vehicles in the active state of making a delivery to a specific person and location. (C) Outdoor Cultivation Prohibited. To the extent not already prohibited by this section, outdoor cannabis cultivation is expressly prohibited within the city’s jurisdiction. No person, including a qualified patient or primary caregiver, shall cultivate any amount of cannabis out of doors in the city, for any purpose, whether personal or commercial.

Section 8.10.040. PERSONAL CANNABIS. (A) It is not a violation of Section 8.10.030(A) for a person 21 years or older to possess, plant, cultivate, harvest, dry, or process (indoors only) not more than six living cannabis plants and possess the cannabis produced by the plants, in compliance with Health and Safety Code Section 11362.2, subd. (a), and the following local requirements: (1) Odor from cultivation must not be detectible outside of the private

residence in which it is cultivated. (2) Cultivation must comply with and not contribute to violation of the State Housing Law and the California Buildings Standards Codes as locally adopted and amended, the regulations for existing buildings in California Code of Regulations, Title 25, and city property maintenance standards applicable to residential property. (3) Cultivation must at all times be a secondary use to an occupied private residence.

(B) It is not a violation of Section 8.10.030(A) for a person described in Health and Safety Code Section 11362.1, subd. (a), to engage in the conduct described in Section 11362.1, subdivisions (a)(1-5).

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(C) This section is inoperative if Health and Safety Code Section 11362.1, subd.(a), is preempted by federal law or is otherwise unconstitutional.

Section 8.050. ENFORCEMENT. The city may enforce this chapter and its regulations in any manner permitted by law, and is entitled to recover all costs, including attorney fees, related to enforcement. The violation of this chapter is hereby declared to be a public nuisance and shall, at the discretion of the city, create a cause of action for injunctive relief. Section 8.060. SEVERABILITY. If any portion of this chapter is held to be invalid, unconstitutional, or unenforceable by a court of competent jurisdiction, that decision will not affect the validity of the remaining portions of this chapter. The city council declares that this chapter and each portion would have been adopted without regard to whether any portion of this chapter would be later declared invalid, unconstitutional, or unenforceable.

SECTION 3. ADDING SECTION 17.04.087 TO TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. A new Section 17.04.087, defining Cannabis and Commercial Cannabis Activities, shall be added to Title 17, Zoning, of the Foster City Municipal Code as follows:

Section 17.04.087. Cannabis; Commercial Cannabis Activity. “Cannabis” and “Commercial cannabis activity” have the same meanings as set forth in Chapter 8.10, Cannabis Regulations, Section 8.10.020, (A) and (B).

SECTION 4. AMENDING SECTION 17.06.020 OF TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. Foster City Municipal Code Title 17, Zoning, Chapter 17.06, Administration, Construction and Enforcement, Section 17.06.020, Permissible use determinations, shall be amended to clarify exclusionary zoning, as indicated below by strikethrough and interlineation:

Section 17.060.020. Exclusionary Zoning Permissible use determinations. When a use is not specifically listed as a primary or conditional use, it shall be assumed that such use is prohibited unless it is determined by the planning director that the use is similar to and not more objectionable or intensive than the uses listed. Requests for determinations for specific uses shall be submitted to the department of community development in writing with a detailed description of the proposed use, its proposed location, and intended hours of operation. Additional information may be required by the planning director in order to prepare the determination for individual uses. Any decision by the planning director regarding a requested determination shall be in writing and shall be final. The planning director It shall be the duty of the planning commission or planning director, as hereinafter provided, to determine whether or not the use of any property or any structure in any district is similar in character to the particular

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uses allowed in a district; the commission or director shall consider the following factors as criteria for their determination: A. Effect upon the public health, safety and general welfare of the neighborhood involved and the city at large; B. Effect upon the orderly development of the area in question and the city at large in regard to the Foster City general plan.

SECTION 5. ADDING CHAPTER 17.11 TO TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. A new Chapter 17.11, Prohibited Uses Generally, shall be added to Title 17, Zoning, of the Foster City Municipal Code as follows:

Chapter 17.11 Prohibited Uses Generally

Section 17.11.010. Commercial Cannabis Activity. The use of land for commercial cannabis activity, including any commercial cannabis activity requiring a license under Business and Professions Code Division 10, as may be amended from time to time, is prohibited in all zoning districts within the city.

SECTION 6. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council does hereby declare that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 7. ENVIRONMENTAL DETERMINATION. Introduction and adoption of the proposed ordinance is not a “project” within the meaning of the California Environmental Quality Act (CEQA), because it has no potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (CEQA guideline §15378.) In the event that this ordinance is found to be a project under CEQA, it is subject to the exemption found in CEQA Guideline 15061(b)(3), because it can be seen with certainty to have no possibility of a significant effect on the environment. SECTION 8. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days from and after its date of adoption. SECTION 9. POSTING. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council. /// ///

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This Ordinance was introduced and read on the ___day of ____, 2018, and passed and adopted on the …………… day of ………………., 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: SAM HINDI, MAYOR ATTEST: PRISCILLA TAM, CITY CLERK

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Resolution No. P- -18 RZ2018-0003

DRAFT “B” – CANNABIS TESTING LABORATORIES

RESOLUTION NO. P- -18 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF FOSTER CITY RECOMMENDING CITY COUNCIL ADOPTION OF AN ORDINANCE CITY REPEALING INTERIM ORDINANCE NO. 609, ADDING CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMENDING THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING; PROHIBIT COMMERCIAL CANNABIS ACTIVITIES, INCLUDING MEDICAL CANNABIS DISPENSARIES, IN ALL ZONING DISTRICTS, EXCEPT FOR STATE-LICENSED CANNABIS TESTING LABORATORIES IN COMMERCIAL MIXED DISTRICTS [C-M] NORTH OF STATE ROUTE 92 AND LIGHT INDUSTRIAL DISTRICTS [M-1], SUBJECT TO CONDITIONAL USE PERMIT— CITY OF FOSTER CITY — RZ2018-0003 CITY OF FOSTER CITY PLANNING COMMISSION

WHEREAS, the City of Foster City is proposing addition of an Ordinance to the Foster City Municipal Code, RZ2018-0003; and

WHEREAS, the proposed Ordinance would prohibit all commercial cannabis activities

within the City of Foster City, with the exception of deliveries from an outside jurisdiction; it would allow cannabis testing laboratories in certain zones, subject to a conditional use permit, and

WHEREAS, the city is authorized to enact this ordinance under authority granted by

California Constitution Article XI, Section 7, and reserved to the city by the “Medicinal and Adult Use Cannabis Regulation and Safety Act”, the “Compassionate Use Act”, and Health and Safety Code Section 11362.2; and

WHEREAS, the proposal has been determined by the Community Development Director

to be exempt from the California Environmental Quality Act (CEQA) pursuant to the general rule in CEQA Guidelines Section 15061(b)(3), which specifies that CEQA applies only to any project with the potential to cause a significant environmental impact; and

WHEREAS, a Notice of Public Hearing was duly posted, published, and mailed for

consideration at the Planning Commission hearing of June 21, 2018, and, on said date, the Public Hearing was opened, held, and closed.

NOW, THEREFORE, BE IT RESOLVED that the Planning Commission, based on facts

and analysis in the staff report, written and oral testimony, and exhibits presented, finds that:

1. The proposed amendments are consistent with the Foster City General Plan, specifically, the proposed amendment to the zoning code implements Policy LUC-C-12 and LUC-D; and

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Resolution No. P- -18 RZ2018-0003

2. The proposed Ordinance is necessary to achieve the purposes of banning commercial cannabis activity, such as sales, distribution and cultivation, within the City but allowing cannabis testing laboratories in certain zones as conditional uses which is consistent with testing of other substances that already occurs in Light Industrial (M-1) zone and CM-PD zone (North of Highway 92). BE IT FURTHER RESOLVED that the Planning Commission of the City of Foster City

hereby recommends that the City Council adopt the proposed Ordinance Repealing Interim Ordinance No. 609, Adding Chapter 8.10 “Cannabis Regulations” to Title 8 (Health and Safety) of The Foster City Municipal Code, and Amending The Zoning Code to Clarify Exclusionary Zoning; Prohibit Commercial Cannabis Activities, including Medical Cannabis Dispensaries, in all Zoning Districts, Except for State-Licensed Cannabis Testing Laboratories in Commercial Mixed Districts [C-M] North of State Route 92 and Light Industrial Districts [M-1], Subject to Conditional Use Permit (RZ2018-0003) as presented in the attached draft ordinance, Exhibit B, attached hereto and incorporated herein.

PASSED AND ADOPTED as a Resolution of the Planning Commission of the City of

Foster City at a Regular Hearing thereof held on June 21, 2018, by the following vote:

AYES, COMMISSIONERS:

NOES, COMMISSIONERS:

ABSTAIN, COMMISSIONERS:

ABSENT, COMMISSIONERS:

______________________________________ NOEMI AVRAM, CHAIR ATTEST: ________________________________ CURTIS BANKS, SECRETARY

27

DRAFT “B” - CANNABIS TESTING LABORATORIES

ORDINANCE NO.____________

AN ORDINANCE OF THE CITY OF FOSTER CITY REPEALING INTERIM ORDINANCE NO. 609, ADDING CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMENDING THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING; PROHIBIT COMMERCIAL CANNABIS ACTIVITIES, INCLUDING MEDICAL CANNABIS DISPENSARIES, IN ALL ZONING DISTRICTS, EXCEPT FOR STATE-LICENSED CANNABIS TESTING LABORATORIES IN COMMERCIAL MIXED DISTRICTS [C-M] NORTH OF STATE ROUTE 92 AND LIGHT INDUSTRIAL DISTRICTS [M-1], SUBJECT TO CONDITIONAL USE PERMIT

THE CITY COUNCIL OF THE CITY OF FOSTER CITY DOES FIND AND

ORDAIN as follows:

WHEREAS, in 1996, California voters passed the Compassionate Use Act which allowed use of marijuana for medical purposes and permitted marijuana dispensaries under certain conditions. In 2015, the California Legislature passed the Medical Cannabis Regulation and Safety Act (MCRSA), establishing a licensing and regulatory framework for medical cannabis; and WHEREAS, on February 16, 2016, the City Council of the City of Foster City (“City Council”) adopted Resolution No.2016-20, confirming that the cultivation of medical marijuana (State legislation now refers to cannabis rather than marijuana) is prohibited under the City’s permissive zoning ordinance; and WHEREAS, on October 17, 2016, the City Council adopted interim urgency Ordinance No. 603, prohibiting outdoor cultivation of cannabis and prohibiting all commercial cannabis activities; the Ordinance was then extended until October 16, 2017; and WHEREAS, on November 8, 2016, California voters passed Proposition 64, known as the Adult Use of Marijuana Act (AUMA) which legalized the use, sale, and consumption of recreational cannabis by persons 21 years of age and older; and WHEREAS, in June 2017, the California Legislature passed SB 94, which consolidated the state regulation of medical and recreational cannabis into the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA), superseding MCRSA; and WHEREAS, in August 2017, the City Council reviewed state and local actions related to cannabis, and directed staff to return at a later date with updated information; the City Council also extended the interim ordinance prohibiting cannabis businesses and outdoor growth until October 6, 2018; and

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WHEREAS, the MAUCRSA provides base standards for personal cultivation of cannabis and allows local jurisdictions to legislate additional standards, including banning outdoor cultivation for personal use (Health and Safety Code §11362.2); and WHEREAS, the MAUCRSA permits commercial cannabis activities subject to State licensing but preserves local governments’ authority to regulate or ban commercial cannabis activities; and WHEREAS, medical cannabis dispensaries and commercial cannabis dispensaries are not listed in the City’s zoning code as permitted or conditionally permitted land uses, making them prohibited under the principles or permissive zoning provisions. Notwithstanding, the state may not recognize the application of permissive zoning principles as to cannabis-related uses; and WHEREAS, on March 5, 2018, the City Council held a public hearing and determined, in order to protect the public health, safety and welfare, to exercise its authority to ban outdoor cultivation for personal use, to prohibit commercial cannabis activities, with the exception of deliveries, and to amend the zoning code to specifically prohibit medical cannabis dispensaries and commercial cannabis activities in all zoning districts. The City Council now desires to allow cannabis testing laboratories in certain zones in the city as a conditional use, and also desires to repeal interim ordinance No. 609, as it is superseded by this current action. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF FOSTER CITY, CALIFORNIA, DOES ORDAIN as follows: SECTION 1. Ordinance No. 609 is hereby repealed, effective on the date upon which this ordinance becomes effective. SECTION 2. ADDING CHAPTER 8.10 TO TITLE 8 OF THE FOSTER CITY MUNICIPAL CODE. A new Chapter 8.10, Cannabis Regulations, shall be added to Title 8, Health and Safety, of the Foster City Municipal Code as follows:

Chapter 8.10 Cannabis Regulations

Section 8.10.010 Purpose. Section 8.10.020 Definitions. Section 8.10.030 Prohibited Activities. Section 8.10.040 Cannabis Testing Laboratory Permitted. Section 8.10.050 State Cannabis Testing Laboratory License Required. Section 8.10.060 Cannabis Testing Laboratory Business License Required. Section 8.10.070 Requirements for Cannabis Testing Laboratories. Section 8.10.080 Personal Cannabis. Section 8.10.090 Enforcement. Section 8.10.100 Severability.

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Section 8.10.010. Purpose. Proposition 64, or the “Control, Regulate, and Tax Adult Use of Marijuana Act” (AUMA) took effect on November 9, 2016, and made it legal for persons 21 years of age or older to smoke or ingest marijuana or marijuana products; possess, process, transport, purchase, obtain or give away to persons of 21 years of age or older 28.5 grams of marijuana or eight grams of concentrated marijuana; and possess, plant, cultivate, harvest, dry or process up to six living marijuana plants for personal use. Senate Bill 94 took effect on June 27, 2017 and blended the non-medical marijuana regulations in the AUMA with the regulations in the Medical Cannabis Regulation and Safety Act, to create the “Medicinal and Adult-Use Cannabis Regulation and Safety Act” (MAUCRSA). Pursuant to these laws, local agencies may impose reasonable regulations on indoor cultivation, and regulate or ban outdoor cultivation and other cannabis-related activities. The purpose of this Chapter is to prohibit outdoor cultivation and commercial cannabis businesses, except for state-licensed testing laboratories, to protect the health, safety and welfare of the city. Section 8.10.020. Definitions. The following words and terms as used in this chapter shall have the following meaning: (A) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the 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. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this Title, “cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code. (B) “Commercial cannabis activity” means cannabis business or activity licensed under the California Business and Professions Code, Division 10, Cannabis, sections 26000 et seq. (as amended from time to time), including cultivation, possession, manufacture, distribution, processing, storing, packaging, labeling, transportation, delivery or sale of cannabis and cannabis products, and any other activities which may be licensed, except cannabis testing laboratories, which are expressly not included in this definition. “Commercial cannabis activity” includes medical cannabis dispensaries. “Commercial cannabis activity” does not include personal uses allowed by Health and Safety Code sections 11362.1 and 11362.2 or personal medicinal uses allowed by sections 11362.765 and 11362.77, as amended from time to time.

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(C) “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. (D) “Medical cannabis dispensary” is a facility, whether mobile or fixed, where cannabis is made available for medicinal purposes in accordance with any provision of state law that authorizes the use of cannabis for medicinal purposes. (E) “Cannabis testing laboratory” means a facility, entity or site that offers or performs tests of cannabis or cannabis products, and which has obtained a Type 8 license from the State, in accordance and in compliance with licensing requirements set forth in the Business and Professions Code. Section 8.10.030. Prohibited activities. (A) Prohibition of commercial activities and cultivation. All commercial cannabis activity and cultivation is prohibited within the city of Foster City. (B) Exception for qualified delivery services. Notwithstanding the prohibition in subdivision (A) above, delivery of cannabis from a business located outside the city of Foster City is permitted subject to the terms conditions of Business and Professions Code Section 26090, as amended from time to time. Any person or entity making deliveries pursuant to this subdivision must obtain a business license from the city. This section does not permit any temporary, persistent, or fixed physical presence used for commercial cannabis activities besides delivery vehicles in the active state of making a delivery to a specific person and location. (C) Outdoor cultivation prohibited. To the extent not already prohibited by this section, outdoor cannabis cultivation is expressly prohibited within the city’s jurisdiction. No person, including a qualified patient or primary caregiver, shall cultivate any amount of cannabis out of doors in the city, for any purpose, whether personal or commercial. Section 8.10.040. Cannabis testing laboratories permitted. Testing laboratories shall be permitted within the city, subject to compliance with zoning requirements, issuance of a Cannabis Testing Laboratory Business License, and compliance with this chapter. Section 8.10.050. State cannabis testing laboratory license required. It shall be unlawful for any cannabis testing laboratory to operate within the city unless that facility has obtained and maintains, in full force and effect, a testing laboratory license from the Bureau of Cannabis Control. A copy of the license shall be kept on the premises at all times, and a copy of the license shall be filed with the city.

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Section 8.10.060. Cannabis testing laboratory business license required. A. Application. Cannabis testing laboratory businesses shall apply for and furnish the information necessary to obtain a business license as required by Chapter 5.04. No cannabis testing laboratory business license shall be issued until zoning clearance is obtained. The cannabis testing laboratory business license shall be issued once a complete application for a license is properly submitted, and all other conditions of this section are satisfied. B. Required information. An application for a cannabis testing laboratory business license shall include all the information required by the State of California Cannabis Testing Laboratory Application: https://www.bcc.ca.gov/clear/testing_lab_application.pdf. C. Fees. The filing of an initial application and/or application for renewal of a cannabis testing laboratory business license shall be accompanied by payment of such fees as the city council may establish to recover cost of administration and enforcement of this chapter. Such fees are non-refundable. Applicants and licensees are responsible for the costs of inspections, investigations, and any other activity required pursuant to this chapter. All fees and costs specified by this chapter shall be established by resolution of the city council and may be amended from time to time. D. Issuance. Before issuance of the cannabis testing laboratory business license, the foregoing documentation shall be reviewed and approved by the chief of police or designee. Upon approval and zoning clearance, city shall issue a cannabis testing laboratory business license, which shall enable applicant to commence operations. A cannabis testing laboratory business license shall be valid for one year from the date of issuance. No reapplication will be accepted within one year after an application or renewal is denied or a license is revoked. E. Amendment. A testing laboratory business shall apply to the city to amend its business registration within thirty days after any change in the information listed in the application. F. Renewal. A testing laboratory shall apply to the city to renew its cannabis testing laboratory business license at least thirty days prior to the expiration. If an application for renewal and all required information is not timely received and the license expires, no right or privilege to operate a testing laboratory shall exist. G. Suspension or revocation. A cannabis testing laboratory’s business license may be suspended or revoked by the tax collector for any act that violates any provision of this section, or any city or state law, statute, rule or regulation relating to the testing laboratory, business’s permitted activity. Any appeal related to a suspension or revocation or restriction shall be conducted in accordance with Section 1.04.110. Section 8.10.070. Requirements for cannabis testing laboratories. A. Additional business license requirements.

1. A cannabis testing laboratory business license shall not be issued to an individual or a business entity associated with an individual who has violated the provisions of California Health and Safety Code Section 11590.

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2. A cannabis testing laboratory business license shall be issued to the specific person or persons listed on the application. 3. A cannabis testing laboratory business license is not transferable and does not run with the land or with the business. Any change to the business location, organizational structure, or ownership requires a new application with associated fees. 4. A licensed testing laboratory shall comply with all State and local regulations. 5. The testing laboratory shall maintain all certifications required by the State. 6. A licensed testing laboratory business, its owners, and employees may not hold an interest in any other cannabis business except another testing business. 7. Inspections by the city fire chief or designee may be conducted anytime during the business’s regular business hours.

B. Maintenance of Records and Reporting. All records of the following activities shall be maintained and available to the city for at least seven years. Records shall be produced within twenty-four hours of a request by an authorized city representative. Records shall be kept in a manner that allows the records to be produced for the city in either hard copy or electronic form, whichever the city requests.

1.Financial records, including, but not limited to: bank statements; transaction invoices; receipts; tax records; audits; and all records required by the California State Board of Equalization, other State of California agencies, the city, and other local agencies. 2.Personnel records, including each employee’s full name, social security or individual tax payer identification number, date of beginning employment, confirmation of background check or Live Scan completion, and date of termination of employment, if applicable. 3. Training records, including, but not limited to, the content of the training provided and the names of the employees that received the training. 4. Contracts with other licensees regarding commercial cannabis activity. 5. Permits, licenses, and certifications to conduct the testing laboratory. 7. Proof of liability and workers’ compensation insurance. 8. Limited access area logs and copies of current versions of any applicable plans and procedures required by state or local licensing authorities.

C. Operational Standards for Cannabis Testing Laboratories.

1. Interior and exterior locations of the business property shall be monitored at all times by closed circuit cameras for security purposes. The cameras and recording system shall be of adequate quality, color rendition and resolution to allow the sufficient identification of any individual committing a crime on the location premises. Cameras shall record twenty-four hours a day at a minimum of twenty frames per second.

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2. The surveillance system storage device or cameras shall be transmission control protocol/TCP capable of being accessed through the internet by the local law enforcement. The business shall also provide the local law enforcement with the URL address of any on-site web-based video surveillance to monitor remotely at any time without a warrant, subpoena or court order. 3. All controlled access areas, security rooms, and points of ingress/egress to limited access areas shall have fixed camera coverage capable of identifying activity occurring within a minimum of twenty feet. Camera video recordings shall be maintained unaltered in a secure location for a period of not less than thirty calendar days and be available for inspection at any time. 4. Recorded images shall clearly and accurately display the time and date. Recordings shall be maintained, unaltered, for a period of not less than thirty calendar days and shall be stored digitally. The city or law enforcement may request the recordings in connection with an investigation. If the recordings are not voluntarily provided, the city or law enforcement may seek a warrant or court order for the recordings. 5. Testing laboratories shall create and maintain an active account within the state’s track and trace system prior to commencing any activity. In the event of system failure, the business shall keep a hard copy record and transfer the information to the track and trace system within twenty-four hours of the system being available. 6. No testing facility may be located within a six-hundred-foot radius from a school, day care home, recreational center, youth center, library, or public park as required by Section 11362.768 of the California Health and Safety Code. 7. All agents, employees, or persons acting for a licensee shall complete a Live Scan background check. 8. The testing laboratory shall have a centrally-monitored fire and burglar alarm system that shall include all perimeter entry points and perimeter windows. 9. The business licensee shall ensure a licensed alarm company operator or one or more of its registered alarm agents installs, maintains, monitors, and responds to the alarm system. The alarm company shall obtain a city business registration. 10. During nonbusiness hours, cannabis shall be secured using a lockable storage system approved by local law enforcement.

D. Insurance Requirements and Indemnity. 1. The licensee shall maintain comprehensive general liability and workers’ compensation insurance in amounts and of the types that are acceptable to the city manager or designee. The city of Foster City shall be named as additional insured on all city-required policies. 2. To the extent permitted by law, the licensee shall indemnify, defend, and hold harmless the city, its city council, its officers, attorneys, employees

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and agents (“the indemnified parties”) from and against any claim, action or proceeding brought by a third party against the indemnified parties to attack, set aside or void, any approval authorized hereby for the testing laboratory activity, including, without limitation, reimbursing the city for its actual attorney fees and costs incurred in defense of the action. The city may, in its sole discretion, elect to defend any such action with attorneys of its own choice.

Section 8.10.080. PERSONAL CANNABIS. (A) It is not a violation of Section 8.10.030(A) for a person 21 years or older to possess, plant, cultivate, harvest, dry, or process (indoors only) not more than six living cannabis plants and possess the cannabis produced by the plants, in compliance with Health and Safety Code Section 11362.2, subd. (a), and the following local requirements:

(1) Odor from cultivation must not be detectible outside of the private residence in which it is cultivated. (2) Cultivation must comply with and not contribute to violation of the State Housing Law and the California Buildings Standards Codes as locally adopted and amended, the regulations for existing buildings in California Code of Regulations, Title 25, and city property maintenance standards applicable to residential property. (3) Cultivation must at all times be a secondary use to an occupied private residence.

(B) It is not a violation of Section 8.10.030(A) for a person described in Health and Safety Code Section 11362.1, subd. (a), to engage in the conduct described in Section 11362.1, subdivisions (a)(1-5). (C) This section is inoperative if Health and Safety Code Section 11362.1, subd.(a), is preempted by federal law or is otherwise unconstitutional.

Section 8.10.090. ENFORCEMENT. The city may enforce this chapter and its regulations in any manner permitted by law, and is entitled to recover all costs, including attorney fees, related to enforcement. The violation of this chapter is hereby declared to be a public nuisance and shall, at the discretion of the city, create a cause of action for injunctive relief. Section 8.10.100. SEVERABILITY. If any portion of this chapter is held to be invalid, unconstitutional, or unenforceable by a court of competent jurisdiction, that decision will not affect the validity of the remaining portions of this code. The city council declares that this chapter and each portion would have been adopted without regard to whether any portion of this chapter would be later declared invalid, unconstitutional, or unenforceable.

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SECTION 3. ADDING SECTION 17.04.087 TO TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. A new Section 17.04.087, defining Cannabis, Commercial Cannabis Activity, and Cannabis Testing Laboratory shall be added to Title 17, Zoning, Chapter 17.04, Definitions, of the Foster City Municipal Code as follows:

Section 17.04.087. Cannabis; Commercial Cannabis Activity; Cannabis Testing Laboratory. “Cannabis” and “Commercial cannabis activity” and “Cannabis Testing Laboratory” have the same meanings as set forth in Chapter 8.10, Cannabis Regulations, Section 8.020, (A) and (B).

SECTION 4. AMENDING SECTION 17.06.020 OF TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. Foster City Municipal Code Title 17, Zoning, Chapter 17.06, Administration, Construction and Enforcement, Section 17.06.020, Permissible use determinations, shall be amended to clarify exclusionary zoning, as indicated below by strikethrough and interlineation:

Section 17.060.020. Exclusionary Zoning Permissible use determinations. When a use is not specifically listed as a primary or conditional use, it shall be assumed that such use is prohibited unless it is determined by the planning director that the use is similar to and not more objectionable or intensive than the uses listed. Requests for determinations for specific uses shall be submitted to the department of community development in writing with a detailed description of the proposed use, its proposed location, and intended hours of operation. Additional information may be required by the planning director in order to prepare the determination for individual uses. Any decision by the planning director regarding a requested determination shall be in writing and shall be final. The planning director It shall be the duty of the planning commission or planning director, as hereinafter provided, to determine whether or not the use of any property or any structure in any district is similar in character to the particular uses allowed in a district; the commission or director shall consider the following factors as criteria for their determination: A. Effect upon the public health, safety and general welfare of the neighborhood involved and the city at large; B. Effect upon the orderly development of the area in question and the city at large in regard to the Foster City general plan.

SECTION 5. ADDING CHAPTER 17.11 TO TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. A new Chapter 17.11, Prohibited Uses Generally, shall be added to Title 17, Zoning, of the Foster City Municipal Code as follows:

Chapter 17.11 Prohibited Uses Generally

Section 17.11.010. Commercial Cannabis Activity.

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The use of land for commercial cannabis activity, including any commercial cannabis activity requiring a license under Business and Professions Code Division 10, as may be amended from time to time, is prohibited in all zoning districts within the city; cannabis testing laboratories may be permitted in accordance with chapters 17.28 and 17.30.

SECTION 6. AMENDING SECTION 17.28.030 OF TITILE 17 OF THE FOSTER CITY MUNICIPAL CODE. Foster City Municipal Code Title 17, Zoning, Chapter 17.28, C-M Commercial Mix District, Section 17.28.030, Permitted Uses, shall be amended as indicated below by strikethrough and interlineation:

17.28.030 Permitted uses. (A) The uses permitted within the C-M district are only those uses specified within the use permit required in connection with such district. Other uses may be approved from time to time by the planning commission and found to be similar to the uses previously approved. (B) Cannabis testing laboratories may be an allowable use within the required use permit only in that portion of the C-M District that is located north of California State Highway Route 92, subject to the requirements of Chapter 8.10 and subject to the requirements of this chapter. (BC) [renumbered.] No use shall be established on a parcel of land which causes the amount of parking required by this title for that parcel to exceed the number of parking spaces provided. Where combined use of parking is requested, the number of parking spaces provided shall not be reduced below the number of spaces required by the maximum user.

SECTION 7. ADDING SUBDIVISION (D) TO SECTION 17.30.030 OF TITLE 17 OF THE FOSTER CITY MUNICIPAL CODE. Section 17.30.030 shall be corrected and a new subdivision (D) shall be added to Title 17, Zoning, Chapter 17.30, M-1 Light Industrial District, Section 17.30.030, Conditional Uses, of the Foster City Municipal Code as follows:

17.30.030 Conditional uses. The following uses shall be permitted only when authorized by a conditional use permit issued in accordance with Chapter 17.0617.72: A. All other manufacturing, processing, assembling or storage of products and materials, including institutes and laboratories, conducted within a completely enclosed building, provided that such uses are not or will not be offensive by reason of the emission of dust, gas, smoke, noise, fumes, odors or vibrations, or other causes, and provided further that prior to the issuance of a building permit, the building official may require evidence that adequate controls, measures or devices have been provided to insure and protect the public interest, health, comfort, convenience, safety and general welfare from such nuisances; B. Outdoor storage areas:

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1. No materials, supplies or equipment, including company-owned or operated trucks and motor vehicles, shall be stored in any area on a site except inside a closed building or behind a visual barrier screening such areas from view of adjoining properties, which barrier shall be at least six feet but not more than eight feet in height, 2. Storage areas screened by visual barriers shall be located on the rear portions of the site. No storage area shall extend closer than twenty-five feet to a street property line; C. Automobile agencies including outside display of new and used vehicles; D. Cannabis Testing Laboratories, subject to the requirements of Chapter 8.10 and subject to the requirements of this chapter. ED. Incidental and accessory structures and uses located on the same site with and necessary to the operation of a conditional use.

SECTION 8. SEVERABILITY. If any section, subsection, sentence, clause or phrase of this Ordinance is for any reason held to be invalid, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council does hereby declare that it should have adopted the Ordinance and each section, subsection, sentence, clause or phrase thereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. SECTION 9. ENVIRONMENTAL DETERMINATION. Introduction and adoption of the proposed ordinance is not a “project” within the meaning of the California Environmental Quality Act (CEQA), because it has no potential to result in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. (CEQA guideline §15378.) In the event that this ordinance is found to be a project under CEQA, it is subject to the exemption found in CEQA Guideline 15061(b)(3), because it can be seen with certainty to have no possibility of a significant effect on the environment. SECTION 10. EFFECTIVE DATE. This Ordinance shall take effect and be in force thirty (30) days from and after its date of adoption. SECTION 11. POSTING. Within fifteen (15) days after the adoption of this Ordinance, the City Clerk shall have it posted in three (3) public places designated by the City Council. /// /// /// ///

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This Ordinance was introduced and read on the ___day of ____, 2018, and passed and adopted on the …………… day of ………………., 2018, by the following vote: AYES: NOES: ABSENT: ABSTAIN: SAM HINDI, MAYOR ATTEST: PRISCILLA TAM, CITY CLERK

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STAFF WILL PREPARE THE LEGAL LANGUAGE FOR THE FINDINGS AFTER THE COMMISSION STATES ITS CONCERNS OR POSITION REGARDING THE APPLICATION AND THE FINDINGS IT WISHES TO MAKE

RESOLUTION NO. P- -18 RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF FOSTER CITY RECOMMENDING THAT THE CITY COUNCIL DENY AN ORDINANCE OF THE CITY OF FOSTER CITY REPEALING INTERIM ORDINANCE NO. 609, ADDING CHAPTER 8.10 “CANNABIS REGULATIONS” TO TITLE 8 (HEALTH AND SAFETY) OF THE FOSTER CITY MUNICIPAL CODE, AND AMENDING THE ZONING CODE TO CLARIFY EXCLUSIONARY ZONING AND PROHIBIT ALL COMMERCIAL CANNABIS ACTIVITIES, INCLUDING MEDICINAL CANNABIS DISPENSARIES, IN ALL ZONING DISTRICTS RZ2018-0003

CITY OF FOSTER CITY PLANNING COMMISSION

WHEREAS, the City of Foster City is proposing addition of an Ordinance to the Foster City Municipal Code, RZ2018-0003; and

WHEREAS, the proposed Ordinance would prohibit all commercial cannabis activities

within the City of Foster City, with the exception of deliveries from an outside jurisdiction, and WHEREAS, the city is authorized to enact this ordinance under authority granted by

California Constitution Article XI, Section 7, and reserved to the city by the “Medicinal and Adult Use Cannabis Regulation and Safety Act”, the “Compassionate Use Act”, and Health and Safety Code Section 11362.2; and

WHEREAS, the proposal has been determined by the Community Development Director

to be exempt from the California Environmental Quality Act (CEQA) pursuant to the general rule in CEQA Guidelines Section 15061(b)(3), which specifies that CEQA applies only to any project with the potential to cause a significant environmental impact; and

WHEREAS, a Notice of Public Hearing was duly posted, published, and mailed for

consideration at the Planning Commission hearing of June 21, 2018, and, on said date, the Public Hearing was opened, held, and closed. NOW, THEREFORE, BE IT RESOLVED that the Planning Commission, based on facts and analysis in the staff report, written and oral testimony, and exhibits presented, finds that: A. The proposed ordinance is not consistent with the Foster City General Plan, because,

______________________________________________________________________ ______________________________________________________________________

______________________________________________________________________

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Resolution No. P- -18 RZ2018-003

B. That the proposal would, under the circumstances of the particular case, be detrimental

to the health, safety, morals, comfort and general welfare of the persons residing or working in the neighborhood of such proposed use, and will be injurious or detrimental to property and improvements in the neighborhood, property values in the area, or the general welfare of the City because _________________________________________ ______________________________________________________________________ ______________________________________________________________________

BE IT FURTHER RESOLVED that the Planning Commission of the City of Foster City hereby recommends that the City Council deny the proposed Ordinance Repealing Interim Ordinance No. 609, Adding Chapter 8.10 “Cannabis Regulations” To Title 8 (Health And Safety) Of The Foster City Municipal Code, And Amending The Zoning Code To Clarify Exclusionary Zoning And Prohibit All Commercial Cannabis Activities, Including Medicinal Cannabis Dispensaries, In All Zoning Districts (RZ2018-0003). PASSED AND ADOPTED as a Resolution of the Planning Commission of the City of Foster City at a Regular Hearing thereof held on June 21, 2018, by the following vote: AYES, COMMISSIONERS: NOES, COMMISSIONERS: ABSTAIN, COMMISSIONERS: ABSENT, COMMISSIONERS:

______________________________________ NOEMI AVRAM, CHAIR

ATTEST: ________________________________ CURTIS BANKS, SECRETARY

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DATE: JUNE 21, 2018 STUDY SESSION STAFF REPORT

AGENDA ITEM NO. 9.1

TO: FOSTER CITY PLANNING COMMISSION PREPARED BY: TIMOTHY MAIER, ASSOCIATE PLANNER CASE NO.: UP2018-0010, EA2018-0001, AND RZ2018-0002 OWNER: COSTCO WHOLESALE CORPORATION PROJECT LOCATION: COSTCO WHOLESALE - 1001 METRO CENTER BOULEVARD

(NEIGHBORHOOD TC)

REQUESTED ACTION/PURPOSE The purpose of this Study Session is to introduce to the Planning Commission the proposed redevelopment of the Costco site, located at 1001 Metro Center Boulevard. The applicant proposes to construct a +153,452 square-foot building, elevated above surface parking, to replace the existing +120,338 square-foot building and add a gas station to the subject site. It is requested that the Planning Commission provide direction regarding the general acceptability of the project concept and site plan. Listed at the end of this report are questions of the Commission, prepared by staff, related to the proposal.

GENERAL INFORMATION GENERAL PLAN DESIGNATION: Town Center Commercial EXISTING ZONING DISTRICT: General Business/Planned Development (C-2/PD) with up

to 124,000 square feet of wholesale retail PROPOSED ZONING DISTRICT: General Business/Planned Development (C-2/PD) with up

to 155,000 square feet of wholesale retail and addition of a gas station

ZONING HISTORY: On August 1, 1988, the City Council approved Resolution

88-136, certifying a Negative Declaration of Environmental Impact and authorizing amendment to the Metro Center General Development Plan (Rezoning) to revise the allowable land use from office to specialty retail on lots 26 and 27 of Tract Map No. 91-83 (Metro Center) – EA-3-87.

On August 15, 1988, the City Council adopted Ordinance

348, including a recommendation in support of a rezoning of lots 26 and 27 of Tract Map No. 91-83 (Metro Center)

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from a designation of C-2/PD (General Business/Planned Development) District previously approved for 250,000 square feet of office space to a C-2/PD (General Business/Planned Development) District with General Development Plan allowing approximately 106,000 square feet of specialty retail use – RZ-3-87.

On May 6, 1993, the Planning Commission adopted

Resolution P-20-93, approving a Use Permit to allow a 123,686-square-foot membership retail store (Costco Wholesale) on lots 26 and 27 of Tract Map 91-83 (Metro Center) – UP-93-001.

On May 17, 1993, the City Council approved Resolution

93-60, certifying a Negative Declaration of Environmental Impact for construction of a membership retail store (Costco Wholesale) of up to 124,000-square feet in size on lots 26 and 27 of Tract Map 91-83 (Metro Center) – EA-93-001).

On May 26, 1993, the City Council adopted Ordinance

400, approving a Rezoning and amendment to the General Development Plan for lots 26 and 27 of Tract Map 91-83 (Metro Center) from C-2/PD (General Business/Planned Development) District with a General Development Plan allowing 106,000 square feet of Specialty Retail Use, to C-2/PD (General Business/Planned Development) District with a General Development Plan allowing 123,700 square feet of retail use – RZ-93-001.

On April 28, 2006, a Use Permit Modification (UP-93-

001G) application was submitted, proposing a 23,040 square-foot addition to the existing Costco building, in addition to demolition and expansion of the existing tire center and siting of a new food-service center along the building’s entry façade. The project was not pursued.

SURROUNDING LAND USE: North: State Route 92 (CA-92), including entry and exit

ramps/six-story Crowne Plaza hotel/recreational vehicle (RV) and boat storage lot

South: Metro Center Boulevard/Vintage Park Drive/nine- story Visa office building and two-level parking

structure/six-story Visa office building and four-level parking garage

East: State Route 92 (CA-92) entry and exit ramps/Metro Center Boulevard/Shell Boulevard/nine-story Visa

office building and four-level parking structure/vacant site/retail center/commercial child care center/Orchard Supply Hardware

West: State Route 92 (CA-92)/six-story Visa office building and four-level parking garage/six-story

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Crowne Plaza hotel and two-level parking structure/ five-story TownePlace Suites hotel

LOT SIZE: Approximately 11.6 acres

KEY PLANNING OR DESIGN ISSUES

Site layout, including location of fueling facility

Site access and on-site circulation

Off-site traffic impacts

Placement of building on raised podium over surface parking

Access for Fire and Police services

BACKGROUND On February 16, 2018, an application for Use Permit, Environmental Assessment, and Rezoning was submitted for proposed redevelopment of the Costco site, including replacement of the existing 120,338 square-foot warehouse store with a new +153,452 square-foot warehouse store elevated above ground-level parking, and addition of a new gas station, at 1001 Metro Center Boulevard (see attached conceptual plans dated February 26, 2018). The C-2/PD zoning designation allows for automobile service stations as conditionally permitted uses, subject to approval by the Planning Commission. Under the Municipal Code, vehicular fuel sales facilities fall within the definition of “automobile service stations.” The project would reorient the approximately 11.6-acre site through placement of the new warehouse building at the southwesterly portion of the site, while the existing building is situated at the northeasterly corner. As proposed, a new eight (8)-lane fuel facility (and a ninth lane for future expansion) with sixteen (16) fuel pumps is sited adjacent to Metro Center Boulevard and the State Route 92 (CA-92) off-ramp. A tire installation facility would be located beneath the raised podium, and elevated delivery docks would allow for access to the building’s finished floor via ramps leading from ground level. The existing vehicular entry and exit points to the site are proposed to be reconfigured but remain in their present locations. Costco Wholesale is a membership-only retailer of bulk goods. The proposed redevelopment would expand on-site parking capacity to 825 parking spaces from 663 parking spaces and provide sufficient warehouse retail area to offer products and services, including a gas station, comparable to those of other Costco warehouses in surrounding jurisdictions and similar markets. See the attached project description letter provided by the applicant, which describes factors prompting the proposed redevelopment, presents the anticipated site operations and features, and explains the rationale directing the conceptual site plan (Attachment 1). While Costco warehouses elevated over ground-level parking have been constructed in locations abroad, the proposed raised-podium Costco store would be the first of its kind in the United States. On February 27, 2018, members of the City’s Interdepartmental Evaluation Committee (IDEC) reviewed the proposed project and provided comments. On March 6, 2018, formal written comments of the IDEC were sent to the applicant. The project was introduced to the City Council for preliminary review on May 7, 2018; the Minutes and Staff Report are attached for reference (Attachments 3 and 4). No formal action was taken at the meeting. The Council expressed concerns regarding the proposed placement of the fuel facility and likelihood for queuing of vehicles inbound to the site, as well as impact to

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traffic flow on City streets and adjacent State Route 92 resulting from the submitted site layout. Several members of the Council directed the applicant to explore site-plan alternatives to address the anticipated traffic-related impacts and consider omission, or relocation, of the fuel facility. The submitted application remains incomplete; however, preliminary feedback from the Commission on the project, as currently proposed, is requested so that the applicant may consider comments from both the City Council and Planning Commission prior to revising the site plan. PROJECT ENTITLEMENTS REQUIRED The proposed development would require a number of entitlements from the City, as follows:

Environmental Assessment (Filed as: EA2018-0001) o Preparation and Certification of an Environmental Impact Report (EIR)

Amendment to the General Development Plan, required for approval of an amendment to rezone lots 26 and 27 of Tract Map 91-83 (Metro Center) from C-2/PD (General Business/Planned Development) District with a maximum 124,000 square feet of wholesale club/membership retail to C-2/PD (General Business/Planned Development) District with a maximum 155,000 square feet of wholesale club/membership retail and a new gas station.

o General Development Plan/Rezoning (Filed as: RZ2018-0002)

Consideration of a Use Permit request for site, parking, floor, landscape and architectural elevation plans for an approximately 153,452-square-foot wholesale membership retail store including concurrent design review.

o Specific Development Plan/Use Permit (Filed as: UP 2018-0010) STUDY SESSION PUBLIC NOTICING The public was advised of the Study Session in the following ways:

¼ page ad in the Foster City Islander – June 6, 2018

Electronic mailing to the property applicants, owners and persons who expressed interest in receiving project updates – May 31, 2018

Mailing to property owners who own property within a 500-foot radius – May 31, 2018

Foster City Website: www.fostercity.org – May 31, 2018

Foster City TV Channel 27 – June 7, 2018 to June 21, 2018

Electronic Marquee Sign in Leo Ryan Park – June 14, 2018 through June 21, 2018

Public Posting Places – June 1, 2018

ANALYSIS LAND USE AND ZONING General Plan: The Land Use Map of the General Plan designates 1001 Metro Center Boulevard as “Town Center Commercial.” The City’s General Plan describes the Town Center Commercial land use category as follows:

“This designation is reserved for the area located northwest of East Hillsdale Boulevard, bounded by Foster City Boulevard to the north and State Route 92 to the west. The area includes a 100-acre development known as Metro Center, in addition to Parkside Towers and other office developments. Metro Center is intended to serve as Foster

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City’s downtown core. The highest intensity uses in the City would be allowed, with Floor Area Ratios (FAR) for office developments ranging from .55 to 2.0 FAR. Town Center office developments located outside Metro Center, have lower FARs which range from .18 to 1.5 FAR.”

Relevant General Plan Goals and Policies include the following:

Goal LUC-B: Promote Proper Site Planning, Architectural Design and Property Maintenance. Ensure high quality site planning and architectural design for all new development, renovation or remodeling and require property maintenance to maintain the long- term health, safety, appearance and welfare of the community. Goal LUC-C: Maintain a Variety of Land Uses. Maintain land designated for a variety of residential, commercial, light industrial, recreational and public institutional purposes which: (1) provide a mix of housing types, densities and tenure; (2) ensure that a variety of commercial and industrial goods, services and employment opportunities are available in Foster City; (3) offer a range of recreational and public facilities to meet the needs Foster City's residents; and (4) maintain availability of commercial and retail services. Goal LUC-G: Provide Adequate Parking. Ensure that adequate off-street parking is incorporated into new and modified projects, and designed for safe and effective circulation. Goal LUC-I: Provide for Economic Development. Provide for economic development which: (1) maintains the City's ability to finance City services and construction and maintenance of public improvements; (2) offers local employment opportunities for Foster City residents so that inter-city commuting can be reduced; (3) assures the availability and diversity of resident-serving goods and services; and (4) allows for specialized commercial uses, such as automobile service stations, water-oriented commercial uses and day care facilities. Policy LUC-C-12: Density and Intensity of Uses. Allow and encourage change that responds to the current and potential market and employment needs of businesses and that result in greater density and intensity of land uses and broad array of land uses including multi-family housing, commercial, retail, office, biotechnology and light industrial uses, and compatible uses, but prohibiting uses that would be incompatible with any of these uses, such as low-density housing, schools, day care and other uses serving primarily children. Policy LUC-E-5: Access to New Commercial and Industrial Projects. New commercial and industrial developments shall be designed so that, wherever necessary and possible, entrance to the projects can be gained by way of left- or right-turn only lanes. Only the minimum number of entrance or exit points shall be allowed as are needed to ensure safe and efficient internal traffic flow and to reduce through traffic delays on public roads serving the project. Policy LUC-K-1: Redevelopment Opportunities. The City will continue to look for opportunities for potential redevelopment properties and proactively work with property owners on options for site reuse or redevelopment.

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Zoning: The zoning designation of the subject site is C-2/PD, General Business/Planned Development District. The C-2, General Business, District is intended to host land uses of a scale and character serving residents throughout Foster City. The PD, or Planned Development, combining district is meant to accommodate a range of development types while offering flexibility by allowing tailoring of City standards to specific uses (Section 17.36.010, Foster City Municipal Code). The current zoning designation is established as part of the Metro Center General Development Plan (GDP), which in turn is a component of the zoning map for the site and allows a maximum of 124,000 square feet of wholesale club/membership retail. The proposed project would not require a change in zoning designation of the subject property; however, a GDP Amendment/Rezoning is needed to modify the Metro Center GDP to increase the proposed area of wholesale retail to a maximum 155,000 gross square feet and support the addition of a gas station. ENVIRONMENTAL REVIEW In accordance with the California Environmental Quality Act (CEQA), an Environmental Analysis (EA-2018-0001) will be conducted. The Environmental Analysis will evaluate the proposal in light of CEQA Guidelines and disclose potentially significant environmental impacts. The applicant intends to pursue preparation of an EIR. The EIR will incorporate a robust analysis of potentially significant impacts related to the project, include a discussion of alternatives, and provide the opportunity for review and comment by the public. The City expects to retain consultant Urban Planning Partners, Inc. for preparation of the EIR. The findings of the Environmental Analysis will be made available for public review prior to rendering of a final decision on the proposed project. A scoping session to introduce the proposed Environmental Analysis and CEQA process will take place at a noticed hearing of the Planning Commission. The scoping session will provide the opportunity for the Planning Commission to offer feedback, and for the public to comment, about the nature of information and breadth of analysis to be included in the Environmental Impact Report. A Notice of Preparation (NOP) will be prepared and circulated in advance of the Scoping Session. SITE PLAN Site Layout and Building Orientation The subject site is roughly rectangular, bounded by the Metro Center Boulevard/CA-92 interchange to the northeast, CA-92 to the northwest, Metro Center Boulevard to the southeast, and an existing office building and parking garage as well as Vintage Park Drive to the southwest. Currently, the warehouse building is sited at the northeast end of the property, with surface parking and perimeter landscaping. The existing main entry to the building and the tire installation facility front the parking lot, while employee parking, a truck delivery area, and loading docks are located at the rear of the building, facing the CA-92 interchange beyond. Patrons currently access the main building entry via a marked pedestrian path that traverses the parking lot and crosses the vehicular drive aisle providing primary access to the site from Metro Center Boulevard. The proposed project includes demolition of the existing approximately 123,686 square-foot warehouse building and 663 surface parking spaces and construction of a new 153,452 square-

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foot building at the southwest quadrant of the lot. As proposed, the building will be elevated above at-grade parking, with additional surface parking extending across the lot. A tire installation facility would also be located beneath the raised podium. A new gasoline station with thirty-two (32) fueling positions would be located at the northeasterly quadrant of the site adjacent to the CA-92 off-ramp and Metro Center Boulevard. Circulation As part of the proposed redevelopment, the existing primary access point, located at the intersection of Metro Center and Shell boulevards, will be retained but would be reconfigured. Currently, the primary access includes two (2) lanes providing ingress to the site and two (2) lanes for egress; the existing outbound lanes are comprised of a left-turn-only lane and a combined through-/right-turn lane. As proposed, the number of inbound lanes would be reduced from two (2) to one (1), with one existing ingress lane converted to an egress lane. The three (3) exit lanes would allow for a dedicated left-turn turn lane onto eastbound Metro Center Boulevard; a through lane to Shell Boulevard; and a right-turn-only lane onto westbound Metro Center Boulevard. The existing two (2) driveways along Metro Center Boulevard would also remain in place, although both altered to accommodate vehicular ingress and egress. The driveway closer to the SR-92 off-ramp presently allows for one-way movement only, permitting delivery vehicles and employees to exit the site onto westbound Metro Center Boulevard. As proposed, this driveway would be modified to allow right-in/right-out movements, providing vehicular access to the gas station located in the northeasterly quadrant of the site. The gas station would offer fuel for purchase by Costco members only. The proximity of the gas station to the CA-92 interchange allows for easy access by motorists exiting the freeway. The existing driveway located nearest the Vintage Park overcrossing currently provides all-way access into and out of the lot; that entry would be reconfigured to provide exclusive right-in/right-out traffic flow, allowing entry to, and exit from, the below-podium parking. Per the submitted site plan, the gas station would be located in the northeasterly quadrant of the site. Customers would access the fuel pumps via the drive aisle extending from the northeasterly entry and exit the gas station in the corner of the site adjacent to the CA-92 off-ramp, turning left to travel along the perimeter of the site and then to drive aisles beyond. General vehicular circulation throughout the site would be provided via drive aisles continuing from each entry point, then branching into a network of lanes situated between rows of parking flanked by landscape islands. Parking Although the site provides 663 parking stalls, in excess of the 481 stalls minimally required by the City’s Municipal Code, the applicant reports that the facility experiences intermittent parking shortages, particularly during hours of peak demand. Occasional obstructions to traffic flow occur due to queuing of vehicles attempting to access the site as patrons drive around the lot in search of parking stalls. The applicant states that a desire to expand parking capacity has, in part, motivated the proposed redevelopment of the site. Per Municipal Code Section 17.62.060(B)(1), one parking stall is required for each two hundred fifty (250) square feet gross floor area for commercial uses, while three (3) parking stalls and two (2) spaces per service bay are required for gasoline stations, resulting in a minimum

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required parking count for a 153,452 square-foot building and gas station of six hundred twenty-seven (627) stalls. The proposed site plan includes 825 parking stalls (each 10’ x 20’), including seventeen (17) accessible parking spaces. Per the applicant, the larger stall sizes are preferred by patrons to accommodate loading/unloading of large items associated with Costco’s product offerings. As depicted in the submitted site plan, nearly half of the stalls are proposed to be located below the new building (Attachment 5). Loading and Service Areas Municipal Code Section 17.62.090(A) requires that freestanding commercial, office or service uses greater than five thousand (5,000) square feet gross leasable area provide loading/unloading spaces at a ratio of one (1) space per fifty thousand (50,000) square feet of gross leasable area, up to a maximum of five (5) spaces; per Code, each loading/unloading space is required to measure thirty-five feet (35’) in length by twelve feet (12’) in width. The submitted site plan incorporates five (5) loading/unloading spaces, each 50’ long by 12’ wide, within a truck dock and maneuvering area on a raised podium, permitting freight conveyance at-grade with the store. The loading dock would be accessed via a ramp situated adjacent and parallel to the southwest property line along Highway 92. Hours of Operation The proposed hours of operation would remain unchanged from the current operating hours, which are Monday through Friday, 10:00 AM to 8:30 PM; Saturday, 9:30 AM to 6:00 PM; and Sunday, 10:00 AM to 6:00 PM. Fueling facility hours of operation are presently anticipated as 5:00 AM to 10:00 PM daily. Truck Deliveries An estimated ten (10) truck deliveries would occur each weekday, with an average of 80 to 100 per week, equivalent to the existing number of deliveries. Receiving hours range from 2:00 a.m. to 1:00 p.m., with most deliveries completed before store opening. The gas station is anticipated to receive two (2) to three (3) fuel deliveries per day. Building Entry The building’s single patron-accessible entry would be situated at the northwest corner of the building in the approximate midpoint of the lot, facing the parking field and freeway. Customers would gain access to and from the surface parking and surrounding pedestrian walkways through a series of escalators, an elevator, and stairs. Combined cart/patron escalators are proposed as shown in the third page of submitted plans (Attachment 5). KEY ISSUES TO CONSIDER Based on the comments received at the IDEC meeting, the goals and vision of the General Plan and based on the project description and conceptual plans submitted to date, City Staff has identified the following key issues which would need to be considered during analysis and evaluation of the project.

Traffic and Circulation At the May 7, 2018 Preliminary Review meeting, members of the City Council expressed some concerns regarding the proposed site layout and potential traffic-related impacts. In particular,

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they expressed concerns regarding placement of the gas station at the northeast quadrant of the lot, immediately adjacent to the CA-92 exit ramp. They noted that the placement of the gas station in the proposed location may result in vehicles’ queuing, which would impair traffic flow along westbound Metro Center Boulevard and extending to eastbound Highway 92. Members of the Interdepartmental Evaluation Committee had the same concerns. Currently, as noted by the applicant, the site experiences occasional queuing of vehicles at the primary entry point. Enlargement of the store and the addition of the new gas station is likely to generate a slight increase in the numbers of vehicles accessing the site. It has been suggested that Costco review the proposed orientation of the fuel pumps and positioning of fuel lane access, providing for greater line-up distances so that vehicular queuing would be contained on-site and not extend to Metro Center Boulevard and the CA-92 exit ramp. Vehicular access to the site has been raised as a potential concern. A proposed reduction in the number of ingress lanes in the main entry at Metro Center and Shell boulevards presents the potential to impact traffic flow inbound to the project site. Conflicts between westbound motorists attempting to turn right into the property and vehicles provided signalized access, turning left from eastbound Metro Center Boulevard, would be reasonably expected. Further, the reconfigured right-in/right-out movements on the driveway nearest Vintage Park Drive could potentially result in required revision to the existing lanes on Metro Center Boulevard to preclude left turns onto eastbound Metro Center Boulevard. Based on the issues identified above, staff has provided comments encouraging the applicant to consider options which would minimize impacts to on-site circulation and pedestrian and vehicular traffic on surrounding rights-of-way. Suggestions include rearrangement of lanes at the main entry to provide for adequacy of access and reduction of expected queuing onto City streets; relocation of the gas station to the northwest quadrant or elsewhere on-site further from Metro Center Boulevard; reorientation of the fuel pumps and fuel lane access to provide for greater queuing distances; and thoughtful analysis of pedestrian travel patterns to minimize pedestrian-vehicular conflict and prevent obstruction of the traffic flow resulting from drop-off/pickup near the main entry. Due to the proposed reconfiguration of the site and addition of a gas station, a traffic study will be prepared as part of the Environmental Analysis. The traffic study will evaluate ingress/egress, internal vehicular and pedestrian circulation, as well as traffic safety and impacts to Level of Service (LOS) Standards on City Streets and their immediate surroundings.

Fire and Police Services The Fire and Police departments will require access around the building that will need to be incorporated into the site design. The applicant is reviewing options to address staff comments related to law-enforcement and emergency vehicle access.

Opportunity to Enhance Site Aesthetics and the Metro Center Boulevard Corridor The existing site features a building which is nearing twenty-five (25) years in age. The lot currently presents views of a delivery dock, employee parking, as well as trash compactors and recycling bins as the first visual impression that motorists exiting CA-92 onto Foster City Boulevard experience upon arrival to Foster City. The proposed redevelopment presents the opportunity to improve the appearance of the existing site and create a welcoming gateway to Foster City.

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The subject site is highly visible, given its proximity to CA-92 and adjacency to the heavily-traveled Metro Center Boulevard corridor. Design review will likely emphasize the appearance and level of visual interest provided to the proposed building’s street-facing façade, and particularly to the architectural treatment of the entries to the below-building parking field. The new Costco warehouse store would be located across Metro Center Boulevard from Visa Global Headquarters, which features two large parking garages fronting Metro Center Boulevard and the subject site. Aesthetic considerations will factor the proximity of the building to Metro Center Boulevard and its compatibility with the adjacent Visa site and surrounding land uses.

Potential Financial Impacts The proposed shutdown of the existing Costco warehouse store through the duration of demolition and construction would result in a reduction in funds generated from sales-tax revenue. However, this reduction is projected to be offset after a period of several years, resulting from enhanced revenues generated from improved sales associated with expanded product offerings and vehicular fuel sales derived from site redevelopment.

SUMMARY Staff is requesting direction from the Planning Commission regarding the conceptual layout, building orientation/siting, and parking and circulation of the proposed development. The following questions have been identified to help staff and the applicant receive direction from the Planning Commission. 1. Is the overall site plan concept, including placement of the warehouse at the

southeasterly portion of the lot, elevated above at-grade parking, acceptable? 2. Does the Commission agree that the fueling facility should be relocated? 3. Are there any other issues, concerns, or general matters that the Commission would like

to discuss or ask staff to review?

NEXT STEPS Based on direction received from the Planning Commission, as well as any public comments from this Study Session, the project applicant will coordinate with staff to develop and refine plans and schedule future study sessions with the Planning Commission as part of the planning review process.

INDIVIDUALS, ORGANIZATIONS AND DOCUMENTS CONSULTED David Babcock and Jeff Berberich, David Babcock and Associates Ed Galliway, MG2 Architects City’s adopted General Plan Title 17, Zoning of the Foster City Municipal Code ATTACHMENTS Attachment 1: Project Description Letter/Narrative Attachment 2: Vicinity Map Attachment 3: Minutes from May 7, 2018 City Council Regular Meeting (Preliminary Review) Attachment 4: Staff Report of May 7, 2018 City Council Regular Meeting (Preliminary Review) Attachment 5: Project Plans

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CITY OF FOSTER CITY/ESTERO MUNICIPAL IMPROVEMENT DISTRICT

REGULAR MEETING OF MAY 7, 2018

MINUTES

CALL TO ORDER OF CITY COUNCIL/EMID BOARD OF DIRECTORS

The Regular Meeting of May 7, 2018 of the City Council of the City of Foster City, sitting as said Council and as ex officio the Board of Directors of the Estero Municipal Improvement District (EMID), was called to order at 6:30 p.m. in the Council Chambers, 620 Foster City Boulevard, Foster City, San Mateo County, California, by Mayor/President Sam Hindi.

ROLL CALL

The Communications Director/City Clerk/District Secretary called the roll:

PRESENT: Councilmembers/ex officio Directors Charlie Bronitsky, Catherine Mahanpour, Herb Perez, Gary Pollard and Mayor/President Sam Hindi.

ABSENT: None.

STAFF PRESENT: Kevin M. Miller, City/District Manager; Jean Savaree, City Attorney/District Legal Counsel; Dante Hall, Assistant City Manager; Joe Pierucci, Police Chief; John Healy, Fire Chief; Jeff Moneda, Public Works Director/District Engineer; Curtis Banks, Community Development Director; Ann Ritzma, Human Resources Director; Jennifer Liu, Parks and Recreation Director; Martin Ticas, Police Captain; Norm Dorais, Public Works Maintenance Manager; Rob Lasky, IT Manager; Timothy Maier, Associate Planner; Yelena Cappello, Deputy City Clerk; Shuli Chen, Video Technician; and Priscilla Tam, Communications Director/City Clerk/District Secretary/Recording Secretary.

SPECIAL PRESENTATIONS

PROCLAMATION DECLARING "NATIONAL POLICE WEEK” AND “PEACE OFFICERS’ MEMORIAL DAY.”

Mayor/President Hindi presented the proclamation declaring the week of May 13-19 as “National Volunteer Week” and May 15, 2018 as “Peace Officers’ Memorial Day" to Officer Voung Fan, Officer Josiah Sergerquist, and Officer Mayra Valdivia.

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PRESENTATION FROM THE LIONS CLUB DONATING A CHECK TO THE FOSTER CITY FOUNDATION.

Jeanne Gallagher, Art Kiesel, Patrick Sullivan, and Mary True on behalf of the Lions Club, presented a check in the amount of $30,000.00 to the Foster City Foundation for a shade structure at Shorebird Park.

PUBLIC

Ansh Gupta, 1017 Apt #2 Catamaran Street, representing Brahma Kumaris Silicon Valley, addressed the City Council regarding Sister Shivani’s motivational talks on June 2 held at the Santa Clara Convention Center and June 3 held at the San Ramon Marriott.

Without objection from the City Council/EMID Board, Mayor/President Hindi took “Information Technology Advisory Committee's 2017 Year End Report, Review of Mission Statement, and Goals for 2018” and “Consideration of Preliminary Review of the Proposed Redevelopment of the Costco Site at 1001 Metro Center Boulevard to Construct a +155,000 Square-Foot Building with Parking on the First Level to Replace the Existing +120,338 Square-Foot Building, and Addition of a New Gas Station” out of agenda order.

REPORTS

INFORMATION TECHNOLOGY ADVISORY COMMITTEE’S 2017 YEAR END REPORT, REVIEW OF MISSION STATEMENT, AND GOALS FOR 2018. MINUTE ORDER NO. 1542.

Information Technology Advisory Committee member Richa Aswathi presented the Information Technology Advisory Committee’s 2017 Year End Report, Review of Mission Statement, and Goals for 2018.

Motion by Vice Mayor Pollard, seconded by Councilmember Bronitsky, and carried unanimously, 5-0-0, to adopt Minute Order No. 1542, receiving and accepting the Information Technology Advisory Committee’s 2017 Year End Report, Review of Mission Statement, and Goals for 2018.

NEW BUSINESS

PRELIMINARY REVIEW OF THE PROPOSED REDEVELOPMENT OF THE COSTCO SITE AT 1001 METRO CENTER BOULEVARD TO CONSTRUCT A +155,000 SQUARE-FOOT BUILDING WITH PARKING ON THE FIRST LEVEL TO REPLACE EXISTING +120,338 SQUARE-FOOT BUILDING, AND ADDITION OF A NEW GAS STATION.

Mayor Hindi recused himself from this item due to a potential conflict of interest based on his ownership of a gas station in Foster City. Mayor Hindi indicated that he had

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requested an opinion on this question from the Fair Political Practices Commission (FPPC) but the FPPC had not yet issued its opinion.

Mayor Hindi left the meeting at 6:48 p.m.

Community Development Director Banks and Associate Planner Maier presented the staff report.

No public testimony was received.

David Babcock, Principal, representing David Babcock and Associates, Ed Galloway, Architect, representing MG2 Architects, and Kim Katz, Director of Real Estate Development, representing Costco, addressed the City Council.

Discussion ensued.

No action taken.

Mayor Hindi returned to the meeting at until 7:32 p.m.

RECESS. The Mayor/President recessed the meeting from 7:32 p.m. to 7:40 p.m.

CONSENT CALENDAR

Motion by Councilmember/Director Bronitsky, seconded by Vice Mayor/Vice President Pollard, and carried unanimously, 5-0-0, approving the following items on the City/District Consent Calendar:

City/EMID Consent Calendar

1. City/EMID Regular Meeting of April 16, 2018;2. City Resolution No. 2018-28, “A Resolution of the City Council of the City of

Foster City Accepting the Work by Salt River Construction Corporation for the Dredging at the Lagoon Intake Structure Project (CIP 301-629) and Directing the City Clerk to File the Notice of Completion;”

3. City Resolution No. 2018-29, “A Resolution of the City Council of the City of Foster City Authorizing Staff to Issue a Request for Proposals for Mobile Data Computer (MDC) Replacements for Police Patrol Cars;”

4. City Resolution No. 2018-30, “A Resolution of the City Council of the City of Foster City Authorizing Receipt of a $30,000 Donation From the Foster City Lions Club to be Deposited Into the Foster City Foundation Fund for the Purchase of a Shade Structure for Shorebird Park, Authorizing the Remaining Amount of $19,397.01 to be Funded from the Park-In-Lieu Fund and Authorizing the Purchase of Shade Structure from USA Shade for Shorebird Park Using the Lions Club Donation and Park-In-Lieu Fund in the Amount of $49,397.01;”

5. City Resolution No. 2018-31, “A Resolution of the City Council of the City of Foster City Appropriating $30,174.76 from the General Fund to Account No.

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001-0680-421-4255 for Police Department Training and the Gang Resistance Education and Training (G.R.E.A.T.) Program;”

6. City Resolution No. 2018-32, “A Resolution of the City Council of the City of Foster City Changing the Name of the Information Technology Advisory Committee to the Innovation and Technology Advisory Committee and Approving an Amended Policy Statement for the Innovation and Technology Advisory Committee;”

7. City Resolution No. 2018-33, “A Resolution of the City Council of the City of Foster City Approving an Expenditure in the Amount of $93,912.40, and Approving Payment to Rosas Brothers Construction for Emergency Sidewalk Repairs and Curb Ramp Installations at Various Locations Within the City;” and

8. EMID Resolution No. 3411, “A Resolution of the Board Of Directors of the Estero Municipal Improvement District Approving the Updated Water Shortage Contingency Plan.”

PUBLIC HEARINGS

ADOPTING CHAPTER 8.59, RESTRICTIONS ON WASTEFUL WATER PRACTICES, AND AMENDING CHAPTER 8.60, WATER CONSERVATION AND RATIONING, OF TITLE 8, WATER AND SEWER SERVICE, OF THE ESTERO MUNICIPAL IMPROVEMENT DISTRICT CODE. EMID RESOLUTION NO. 3412. EMID ORDINANCE NO. 136.

President Hindi opened a public hearing to hear and consider public comments regarding an ordinance of the Estero Municipal Improvement District adopting Chapter 8.59, Restrictions on Wasteful Water Practices, and Amending Chapter 8.60, Water Conservation and Rationing, of Title 8, Water and Sewer Service, of the Estero Municipal Improvement District Code.

Public Works Maintenance Manager Dorais presented the staff report.

No public testimony was received.

Without objection from the EMID Board of Directors, President Hindi closed the public hearing.

Discussion ensued. Motion by Director Bronitsky, seconded by Director Mahanpour, and carried unanimously, 5-0-0, to adopt EMID Resolution No. 3412, “A Resolution of the Board of Directors of the Estero Municipal Improvement District Rescinding Resolutions No. 3260 and 3275, Which Authorized the Implementation of Water Conservation Measures as Defined in Section 8.60.050 A, B, C, E, F, and L of Chapter 8.60 of the District Code, Establishing Fines for Violations of the Declaration of Water Shortage Emergency, Amending the Master City/District Fees and Service Charges Schedule for FY 2014-2015.”

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Motion by Director Bronitsky, seconded by Director Mahanpour, and carried unanimously, 5-0-0, to introduce the ordinance by title and waive further reading of “An Ordinance of the Estero Municipal Improvement District Adopting Chapter 8.59, Restrictions on Wasteful Water Practices, and Amending Chapter 8.60, Water Conservation and Rationing, of Title 8, Water and Sewer Service, of the Estero Municipal Improvement District Code.”

Motion by Director Bronitsky, seconded by Director Mahanpour, and carried unanimously, 5-0-0, to adopt EMID Ordinance No. 136, “An Ordinance of the Estero Municipal Improvement District Adopting Chapter 8.59, Restrictions on Wasteful Water Practices, and Amending Chapter 8.60, Water Conservation and Rationing, of Title 8, Water and Sewer Service, of the Estero Municipal Improvement District Code.”

NEW BUSINESS

WORKFORCE HOUSING PROPOSAL FOR PHASE C OF PILGRIM TRITON PROJECT. MINUTE ORDER NO. 1543.

City Manager Miller and Community Development Director Banks presented the staff report.

Discussion ensued.

Motion by Councilmember Perez, seconded by Councilmember Bronitsky, and carried, 4-1-0, Councilmember Mahanpour voted “no,” to adopt Minute Order No. 1543, receiving and accepting the Workforce Housing Proposal for Phase C of Pilgrim Triton Project report.

COMMUNICATIONS

CITY/DISTRICT WARRANT OF DEMANDS. NO ACTION TAKEN.

The City/District Warrant of Demands were processed and issued on April 11, 2018, April 18, 2018, and April 23, 2018 were listed on the agenda for information purposes only. No action was taken.

COUNCIL/BOARD STATEMENTS AND REQUESTS, COUNCIL LIAISON REPORTS, AND CITY/DISTRICT MANAGER REPORTS

City/District Manager Miller asked the City Council if they would be interested in a future agenda item to consider a resolution to commit up to $10 million for the Levee Protection Planning and Improvements Project cost overruns. He also stated that Foster City is pursuing grant opportunities and submitting an application for a state grant. The grant will be submitted for $3 million in September for the Levee Protection Planning and Improvements Project. He brought awareness to the bid environment and how it has changed. He reminded everyone about the special meetings coming up on May 14 at 5:30 p.m. for the Community Wall of Fame Inductees and at 6:30 p.m. for the Budget

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Study Session. He stated there is a Business Roundtable on May 10 held at the Community Center’s Wind Room.

Councilmember/Director Mahanpour stated she attended the Friends of the Library Board Meeting on April 17. She stated there is a membership drive coming up and asked anyone who is interested to contact the librarian. She also attended the Peninsula Clean Energy (PCE) Board Meeting on behalf of Vice Mayor Pollard, on April 26. She stated an interim CEO was hired as they continue to look for a full-time CEO. She also stated that Visa opted up to ECO100. The board will be forming a legislative policy ad-hoc committee and she will be part of the committee. She and the Mayor attended a kick-off meeting with Burks Toma to discuss the timeline and concepts for the Recreation Center on May 3. She also attended the Polynesian Festival on May 5 and said it was well attended and that the performances were great.

Councilmember/Director Perez stated he visited Kids Connection Private School on May 7. He stated there will be a Champions Day event at Kids Connection on May 23.

Councilmember/Director Bronitsky stated he attended the South Bayside Waste Management Authority (SBWMA) meeting on April 26. He also stated that 8 agencies voted and approved the contract extension with Recology.

Vice Mayor/Vice President Pollard stated he attended the Youth Advisory Committee (YAC) Spaghetti Feed on April 26. He also noted that the Information Technology Advisory Committee has changed their name to Innovation and Technology Advisory Committee.

Mayor/President Hindi reminded the City Council about the Special Meetings on May 14 and also invited the public to join. He also stated there is a Business Roundtable on May 10. On April 26, he met with 3rd graders from Ronald C. Wornick Jewish Day School. He reminded everyone of the election coming up on June 5. Everyone will be receiving a ballot and he urged everyone to exercise their right to vote. He asked the public to seek information from staff regarding the Levee Protection Planning and Improvements Project so that they can make an informed decision.

ITEM REMOVED FROM THE AGENDA.

CLOSED SESSION FOR CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION GOVERNMENT CODE §54956.9(B): ONE POTENTIAL CASE.”

The Communications Director/City Clerk/District Secretary announced that at the request of staff, the Conference with Legal Counsel - Anticipated Litigation (Government Code §54956.9(b)): One Potential Case was removed from the agenda.

ADJOURNMENT

Hearing no objection from the City Council/EMID Board, Mayor/President Hindi adjourned the meeting. Meeting adjourned at 8:45 p.m.

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DATE: May 7, 2018 TO: Mayor and Members of the City Council VIA: Kevin M. Miller, City Manager FROM: Curtis Banks, Community Development Director

Tim Maier, Associate Planner SUBJECT: COSTCO SITE REDEVELOPMENT – DEVELOPMENT PROJECT

PRELIMINARY REVIEW

PURPOSE/RECOMMENDATION

Pursuant to Chapter 17.72, Development Project Preliminary Review Procedures, of Title 17, Zoning, of the Foster City Municipal Code, the purpose of this meeting is to introduce the proposed Costco site redevelopment proposal to the City Council and public and receive feedback prior to initiating the entitlement process. No formal action will be taken at this meeting.

EXECUTIVE SUMMARY

The proposed Costco project includes replacing the existing 120,338 square-foot building with a new 153,452 square-foot warehouse, elevated above ground-level parking, and the addition of a new gas station, at 1001 Metro Center Boulevard. The project would reorient the approximately 11.6-acre site through placement of the new building at the southwesterly portion of the site, while the existing building is situated at the northeasterly corner. As proposed, a new eight (8)-lane fuel facility (and a ninth lane for future expansion) with sixteen (16) fuel pumps would be placed adjacent to Metro Center Boulevard and the State Route 92 (CA-92) off-ramp. The existing entry and exit points would be reconfigured but remain in their present locations.

The proposed redevelopment would provide 825 parking spaces and sufficient building to allow the applicant to provide products and services comparable to those of other Costco warehouses in surrounding jurisdictions and similar markets, including a gas

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station. While Costco warehouses elevated over ground-level parking have been constructed in locations abroad, the proposed raised-podium Costco store would be the first of its kind in the United States. See Attachment 2 for photographs of Costco stores developed in a manner similar to that proposed. Please note, the purpose of the plans is to show how the concept functions and is not the proposed building design for Foster City.

NOTICING / PUBLIC OUTREACH

The public was advised of this meeting in the following ways:

• ¼ page ad in the Islander on April 25, 2018 • Foster City TV Channel from April 25, 2018 to May 7, 2018 • Public Posting Places on April 25, 2018 • Electronic marquee at Leo J. Ryan Park from April 25, 2018 to May 7, 2018

BACKGROUND/HISTORY

In 1987, the Metro Center General Development Plan (GDP) was approved, allowing for a 106,000 square-foot specialty retail center and at-grade parking at the subject site. The Metro Center GDP was amended in 1993, allowing for rezoning of the site from C-2/PD (General Business/Planned Development) to C-2/PD (General Business/Planned Development) District with up to 124,000 square feet of wholesale retail. The Costco warehouse and associated site improvements were entitled in 1993 through a Use Permit (UP-93-001) and Negative Declaration of Environmental Impact (EA-06-002). In 2006, a Use Permit Modification (UP-93-001G) was received, which proposed a 23,040 square-foot addition to the building, expansion of the existing tire center, and siting of a new food-service center along the building’s entry façade; that proposal was not pursued.

The C-2/PD zoning designation allows for consideration of automobile service stations through a request for a conditional use permit, subject to approval by the Planning Commission.

PROJECT/SITE DESCRIPTION

On February 16, 2018, City staff received an application for a General Development Plan/Rezone, Environmental Assessment, and Specific Development Plan/Use Permit for the proposed redevelopment of the Costco site.

The proposed conceptual plan for redevelopment of the site includes the following:

1. Demolition of the existing 120,338 square-foot warehouse building and

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construction of a new approximately 153,452 square-foot warehouse building with loading docks elevated on a raised podium over surface parking;

2. A tire installation facility located beneath the raised podium;3. Demolition of the existing 663 surface parking stalls and replacement with 825

new at-grade parking stalls; and4. Addition of a new eight (8)-lane fueling station with sixteen (16) pumps and

thirty-two (32) fueling positions.

A project description received February 16, 2018 has been submitted by the applicant and is attached to this report (Attachment 1). A detailed description of the proposed project follows.

Project Site

Costco is located on Metro Center Boulevard, adjacent to Shell Boulevard. Surrounding land uses include the State Route 92 (CA-92) interchange to the northeast; six (6)-story Visa office building, and four (4)-level parking garage to the southwest; adjacent nine (9)-story Visa office building, retail center, and Orchard Supply Hardware to the southeast; and CA-92 to the northwest.

The proposed redevelopment of the site would provide a larger building to accommodate goods, services, and amenities consistent with Costco stores in surrounding locales.

Circulation

As proposed, the existing primary point of entry at the intersection of Metro Center Boulevard and Shell Boulevard will be retained but would be reconfigured. Currently, the primary entry to the site includes two (2) lanes providing ingress to the site and two (2) lanes for egress; the existing outbound lanes are comprised of a left-turn-only lane and a combined through-/right-turn lane. As proposed, the number of inbound lanes would be reduced from two (2) to one (1), with one existing ingress lane converted to an egress lane. The three (3) exit lanes would allow for: a dedicated left-turn turn lane onto eastbound Metro Center Boulevard, a through lane to Shell Boulevard, and a right-turn-only lane onto westbound Metro Center Boulevard.

The existing two (2) driveways along Metro Center Boulevard would also remain in place, although both altered to accommodate vehicular ingress and egress. The driveway nearest the CA-92 off-ramp currently allows for one-way movement only, permitting delivery vehicles and employees to exit from the site onto westbound Metro Center Boulevard. As proposed, this driveway would be converted to allow right-in/right-out movements, providing vehicular access to the gas station located in the northeasterly quadrant of the site.

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Revisions to the circulation plan for the site would be reviewed as part of the traffic study that will be prepared for the project.

Parking

Per Municipal Code Section 17.62.060(B)(1), one parking stall is required for each two hundred fifty (250) square feet gross floor area for commercial uses, while three (3) parking stalls and two (2) spaces per service bay are required for gasoline stations, resulting in a minimum required parking count of six hundred twenty-seven (627) stalls. The proposed site plan includes 825 parking stalls (10’ x 20’), including seventeen (17) accessible parking spaces. Per the applicant, the larger stall sizes are preferred by patrons to accommodate loading/unloading of large items associated with Costco’s product offerings.

Building Entry

The building’s single patron-accessible entry would be situated at the northwest corner of the building in the approximate midpoint of the lot, facing the parking lot and freeway. Customers would gain access to and from the surface parking field and surrounding pedestrian walkways through a series of escalators, an elevator, and stairs. Combined cart/patron escalators are proposed as shown on the third page of submitted plans (Attachment 2).

LAND USE

General Plan: The Land Use Map of the General Plan designates 1001 Metro Center Boulevard as “Town Center Commercial.” The City’s General Plan describes the Town Center Commercial land use category as follows:

“This designation is reserved for the area located northwest of East Hillsdale Boulevard, bounded by Foster City Boulevard to the north and State Route 92 to the west. The area includes a 100-acre development known as Metro Center, in addition to Parkside Towers and other office developments. Metro Center is intended to serve as Foster City’s downtown core. The highest intensity uses in the City would be allowed, with Floor Area Ratios (FAR) for office developments ranging from .55 to 2.0 FAR. Town Center office developments located outside Metro Center, have lower FARs which range from .18 to 1.5 FAR.”

Zoning: The zoning designation of the subject site is C-2/PD General Business/Planned Development District. The PD, or Planned Development, combining district is intended to accommodate a range of development types while offering flexibility by allowing tailoring of City standards to specific uses (Section 17.36.010, Foster City Municipal

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Code).

The current zoning designation is established as part of the Metro Center GDP, which is part of the zoning map for the site which allows a maximum of 124,000 square feet of wholesale club/membership retail. Although the proposed project would not require a change in zoning designation, a GDP Amendment/Rezoning is required to amend the Metro Center GDP to allow a maximum 155,000 gross square feet of wholesale retail as well as accommodate the proposed addition of a gas station.

ENVIRONMENTAL REVIEW

In accordance with the California Environmental Quality Act (CEQA), an Environmental Analysis (EA2018-0001) will be conducted for the project. The Environmental Analysis will evaluate the proposal in light of CEQA Guidelines, disclose potentially significant environmental impacts, and determine the type of environmental document to be prepared.

The steps in the environmental review process are as follows:

1. Agreement for Professional Services will need to be entered with the chosen environmental consulting firm2. Notice of Preparation issued (Staff)3. Public Scoping Session (Planning Commission)4. Preparation of the Environmental Analysis (Staff/Consultant)5. Public Review Period (Public and Interested Agencies/Organizations)6. Adequacy Hearing on the Draft EIR, in the event that an EIR will be required or pursued (Planning Commission)7. Response to Comments/Final EIR, in the event that an EIR will be required or pursued (Staff/Consultant)

The findings of the Environmental Analysis will be made available for public review prior to the rendering of a final decision on the proposed project.

APPROVAL ACTIONS REQUIRED

In order to review and ultimately approve the proposed Costco redevelopment project, the following entitlements are required:

Environmental Assessment (Filed as: EA2018-0001) o Preparation and Certification of an Environmental Impact Report

General Development Plan/Rezoning (Filed as: RZ2018-0002) o Amendment to the Metro Center GDP from C-2/PD (General Business/Planned Development) district with a maximum 124,000 square feet of

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wholesale club/membership retail to C-2/PD (General Business/Planned Development) district with a maximum 155,000 square feet of wholesale club/membership retail and new gas station

Specific Development Plan/Use Permit (UP2018-0010) o Design review concurrent with the General Development Plan/Rezoning

KEY ISSUES TO CONSIDER

The Interdepartmental Evaluation Committee (IDEC), composed of staff representing various City departments, reviewed the project on February 27, 2018. City staff has identified the following key issues which would need to be considered during analysis and evaluation of the project.

Traffic and Circulation

Due to the proposed reconfiguration of the site and addition of a gas station, a traffic study will be required to evaluate ingress/egress, internal vehicular and pedestrian circulation, as well as traffic safety and impacts to Level of Service (LOS) Standards on City Streets and their immediate surroundings.

The gas station is proposed to be located at the northeast quadrant of the lot, immediately adjacent to the CA-92 interchange. It has been suggested that Costco review the proposed orientation of the fuel pumps and positioning of fuel lane access to provide for greater queuing distances so that vehicle queuing would be contained on-site and not extend to Metro Center Boulevard and the CA-92 exit ramp.

Fire and Police Services

The Police and Fire Departments will require access around the building that will need to be incorporated into the site design. The applicant is reviewing options to address City staff comments related to law-enforcement and emergency vehicle access.

QUESTIONS

1. Is the overall site plan concept, including placement of the warehouse at the southeasterly portion of the lot, elevated above at-grade parking, acceptable by the City Council?

2. Are there any other issues, concerns, or general matters that the City Council would like to discuss or ask City staff to review?

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Pursuant to Chapter 17.72, Development Project Preliminary Review Procedures, the City Council’s comments are advisory and non-binding and do not constitute either an approval or denial of the project; therefore, no formal action will be taken at this meeting.

NEXT STEPS

Following this Development Project Preliminary Review meeting, the applicant will have the opportunity to consider the comments provided by the City Council and the public and, if desired, move forward to a Planning Commission Study Session.

Attachments:

Attachment 1 – Project Description Attachment 2 – Conceptual Plans

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