Planning Commission — Thursday, January 27, 2022

Memorandum Item 1 9:05 a.m. January 27, 2022 STAFF REPORT TO: Planning Commission FROM: Mary Darby, Community Development Director Prepared by: Eric Porter, Associate Planner DATE: January 13, 2022 (Continued from December 13,2021) RE: Sunny S Ranch; Modification (MMU 21-20) to a Use Permit (UP 18-43) for Commercial Cannabis Cultivation and Addendum to Initial Study (IS 18-58). APN: 014-004-20 Supervisor District 1 ATTACHMENTS: 1. Vicinity Map 2. Original Conditions of Approval 3. Modification Conditions of Approval 4. Agency Comments 5. Revised Site Plan 6. Water Analysis, prepared by Ryan Crawford, P.G. 7. Addendum to Initial Study (IS 18-58) EXECUTIVE SUMMARY On June 27, 2019, the Planning Commission approved Use Permit UP 18-43 on the subject site. The application was for 25,996 sq. ft. of 'mixed light' (greenhouse) cultivation area, and 21,996 sq. ft. of canopy area. The 20-acre site is allowed to have up to 22,000 sq. ft. of mature plant canopy area. On June 7, 2021, the County received an application for a modification to the cultivation area to enable the applicant to place four (4) 2,499 sq. ft. areas on the site for use as a nursery for immature plants. The addition of the nursery areas will not increase the measurable canopy area, but it will impact the rate of annual taxation, as nursery area is regarded as 'cultivation area', which is taxable. The project will not result in additional water usage. The four new proposed buildings are specifically intended to dry cannabis. Each building will be equipped with carbon filtration systems to keep odor from migrating beyond each building. The buildings are to be constructed in an area that had been burned in the Valley Fire in 2015; dead trees were removed, and the proposed expansion area was surveyed by the Biologist and Archaeologist prior to the 2018 use permit submittal. No additional impacts to any of the 21 California Environmental Quality Act (CEQA) categories were determined to occur with this project. The 20 acre subject site takes access from Butts Canyon Road, a paved, County-maintained road in this location. The road is relatively flat at this location, and there is good visibility entering and leaving the site. The original application included a Biological Survey and an Archeological Survey, both of which included the 'expansion area' proposed for the new nurseries. RECOMMENDATION: Staff is recommending Approval with Conditions of MMU 21-20. Sample Motions: Initial Study Addendum (IS 18-58) I move that the Planning Commission find that that the Addendum to the Initial Study (IS 18-58) applied for by Sunny S Ranch on a property located at 19424 Butts Canyon Road, Middletown, further described as APN: 014-004-20 will not have a significant effect on the environment, and that no new mitigation measures are necessary per the findings listed in the staff report dated January 13, 2022. Modification (MMU 21-20) I move that the Planning Commission find that the Modification (MMU 21-20) applied for by Sunny S Ranch on a property located at 19424 Butts Canyon Road, Middletown, further described as APN: 014-004-20 does meet the requirements of Section 60 of the Lake County Zoning Ordinance and the Modification be granted subject to the conditions and with the findings listed in the staff report dated January 13, 2022. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission's decision, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination.

Memorandum ITEM # 2 9:10 A.M. January 27, 2022 STAFF REPORT TO: Planning Commission FROM: Mary Darby, Community Development Director Prepared by: Victor Fernandez, Associate Planner DATE: January 13, 2022 RE: Mountain Green Farms, LLC * Major Use Permit (UP 20-74) * Initial Study (IS 20-87) Supervisor District 5 - Supervisor Pyska Planning Commissioner - Commissioner Field ATTACHMENTS: 1. Vicinity Map 2. Property Management Plan 3. Agency Comments 4. Proposed Conditions of Approval 5. Proposed Site Plans 6. Initial Study 7. Biological Assessment 8. Hydrology Report 9. Public Concerns 10. Letters of Support 11. Site Photos 12. Design Professional Site Plans EXECUTIVE SUMMARY Mountain Green Farms, LLC, is seeking approval for a Major Use Permit (UP 20-74) to cultivate commercial cannabis that includes 21,000 square feet (sq. ft.) of mixed-light canopy and 43,560 sq. ft. of outdoor canopy area that equates to a total of 64,560 sq. ft. of canopy area located within 67,080 sq. ft. of cultivation area (Figure 1). The project site is located at 7661 State Highway 29, Kelseyville, CA, 95451, further described as assessor's parcel number (APN) 009-022-33 (Attachment 1). According to the applicant the proposed project will include the following: * A-Type 3B: "Mixed-Light" license: cultivation for adult use cannabis in a greenhouse, glasshouse, conservatory, hothouse, or other similar structure using light deprivation and/or artificial lighting below a rate of 25 watts per square foot between 10,001 and 22,000 square feet, inclusive, of total canopy size on one premises. * A-Type 3: "Outdoor" license: Outdoor cultivation for medicinal cannabis without the use of light deprivation and/or artificial lighting in the canopy area at any point in time from 10,001 square feet to one acre, inclusive, of total canopy size on one premises. * Type 13 "Distributor Transport Only, Self-Transport Distribution" license: The transport of medicinal cannabis goods between entities licensed pursuant to California Code. The project also proposes the following: * Seven (7) 30' X 100' greenhouses. * A proposed 40' X 60' building for drying, trimming, and packaging with American's with Disabilities Act (ADA)-compliant restroom. * A proposed 120-sq. ft. shed for fertilizer and pesticide storage. * Four proposed 2,500-gallon water tanks, one being steel or fiberglass for fire suppression. * Two existing 10,000-gallon water storage tanks. * An existing on-site well for water use. * 20'-wide access driveway from the realigned State Highway 29. * Six employee parking spaces, including one ADA-compliant parking space. * A proposed loading zone. Perimeter fencing and security cameras RECOMMENDATION Staff recommends the Planning Commission take the following actions. A. Adopt Mitigated Negative Declaration (IS 20-87) for Major Use Permit (UP 20-74) with the following findings: 1. Potential environmental impacts related to aesthetics can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1 and AES-2. 2. Potential air quality impacts can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1, AQ-2, AQ-3, AQ-4, AQ-5, AQ-6, AQ-7, and AQ-8. 3. Potential environmental impacts related to cultural and Tribal resources can be mitigated to less than significant levels with the inclusion of mitigation measures CUL-1 and CUL-2. 4. Potential biological impacts can be mitigated to less than significant levels with the inclusion of mitigation measure BIO-1. 5. Potential energy impacts can be mitigated to less than significant levels with the inclusion of mitigation measure EN-1. 6. Potential geology and soils can be mitigated to less than significant levels with the inclusion of mitigation measures GEO-1, GEO-2, GEO-3, GEO-4, GEO-5, and GEO-6. 7. Potential hazards hazardous materials can be mitigated to less than significant levels with the inclusion of mitigation measures HAZ-1, HAZ-2, HAZ-3, HAZ-4, HAZ-5, HAZ-6, HAZ-7, and HAZ-8. 8. Potential hydrology and water quality impacts can be mitigated to less than significant levels with the inclusion of mitigation measures HYD-1, and HYD-2. 9. Potential noise impacts can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1, NOI-2, and NOI-3. 10. Potential wildfire impacts can be mitigated to less than significant levels with the inclusion of mitigation measures WILDFIRE-1, WILDFIRE-2, WILDFIRE-3, and WILDFIRE-4. 11. This project is consistent with land uses in the vicinity. 12. This project is consistent with the Lake County General Plan, Kelseyville Area Plan, and Zoning Ordinance. 13. Any changes to the project will require either an amended Use Permit or a new Use Permit unless the Community Development Director determines that any changes have no potential environmental impacts. 14. As mitigated through specific conditions of approval, this project will result in less than significant environmental impacts. B. Approve Major Use Permit UP 20-74 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not 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, or be detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. The site is adequate in size, shape, locations, and physical characteristics to accommodate the type of use and level of development proposed. 3. The streets, highways and pedestrian facilities are reasonably adequate to safely accommodate the proposed use. 4. There are adequate services to serve the project. 5. This project is consistent with the Lake County General Plan, Kelseyville Area Plan, and Lake County Zoning Ordinance. 6. No violation of Chapter 5, 17, 21, 23 or 26 of the Lake County Code currently exists on this property, with a condition of approval implemented. 7. The proposed use complies with all development standards described in Chapter 21, Article 27, Section 1.i. 8. The applicant is qualified to make the application described in Chapter 21, Article 27, Section 1.ii.(g). 9. The application complies with the qualifications for a permit described in Chapter 21, Article 27, Section 1.ii.(i). Sample Motions: Mitigated Negative Declaration I move that the Planning Commission find that the Major Use Permit (UP 20-74) applied for by Mountain Green Farms, LLC on property located at 7661 State Highway 29, Kelseyville, further described as APN: 009-022-33 will not have a significant effect on the environment and therefore a mitigated negative declaration shall be approved with the findings listed in the staff report dated January 13, 2022. Major Use Permit (UP 20-74) I move that the Planning Commission find that the Major Use Permit (UP 20-74) applied for by Mountain Green Farms, LLC on property located at 7661 State Highway 29, Kelseyville, further described as APN: 009-022-33 does meet the requirements of Section 51.4 and Article 27, Section 1 [i,ii(g),i(ii)] of the Lake County Zoning Ordinance and the Major Use Permit be granted subject to the conditions and with the findings listed in the staff report dated January 13, 2022. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh

Memorandum Item 3 9:15 a.m. January 27, 2022 STAFF REPORT TO: Planning Commission FROM: Mary Darby, Community Development Director Prepared by: Eric Porter, Associate Planner DATE: January 27, 2022 SUBJECT: KLS-RBS LLC, MMU 20-11; IS 20-110 amending UP 18-25 APN: 011-004-60. Location: 9475 Bottle Rock Road, Kelseyville Supervisorial District 5 ATTACHMENTS: 1. Vicinity Map 2. Agency Comments 3. Site Plan, Elevations 4. Original Conditions of Approval 5. Original Public Comments 6. Initial Study IS 20-110 7. New Public Comments 8. Violation Site Visit Photos and Documentation This staff report includes seven sections (Sections I through VII). Section I provides an executive summary of the proposed project; Section II provides site specific details of the proposed project. Section III describes provides the findings for approval of a modification and a description of how this project responds to each. Section IV provides a summary of the potential environmental impacts and mitigation measures to reduce those impacts in compliance with the California Environmental Quality Act (CEQA), as covered in the initial study. Section V contains new public comments. Section VI includes recommendations on actions that the Planning Commission can take for the proposed project; and Section VII provides staff recommendations with sample motions. EXECUTIVE SUMMARY The prior property owner has received two use permits (UP 18-25 and MUP 19-09) for commercial cannabis cultivation on the subject site. The site originally consisted of three lots that were merged into one lot in year 2018 through file no. VM 18-15. The prior owner then constructed an 8100 sq. ft. 'drying building' without land use approval or building permits, then sold the property to the current owners. The new building is 'non-conforming'; it is within the Scenic Combining Overlay District, which limits accessory building heights to 15 feet (this building is 26 feet tall), and to a size of 5,000 sq. ft. (this building is 8,100 sq. ft. in size). The property was then red-tagged by the County Building Official in May 2020 because it was built with no building permits. (Attachment 8). The new property owners then applied for a building permit for the new building, however this building did not have land use approval, and Planning was unable to sign the building permit, which has sat idle since year 2020 to allow the property owner an opportunity to seek a land use remedy to the building. The current property owners ultimately applied for a minor modification to the Use Permit, UP 18-25, which was approved by the Lake County Planning Commission on February 14, 2019 in an attempt to bring the building into conformance, however the modification process does not offer any way of 'correcting' non-conforming buildings. The applicant could apply for a new use permit and a variance, however variances are not designed to correct situations such as this one. Minor modifications to approved land use action rely on Article 60.33, "Amendments" of the Lake County zoning ordinance allows for amendments to issued use permits through the amendment process. The Planning Commission now needs to decide whether to allow a building that does not comply with the height and size requirements found in Article 34, 'SC - Scenic Combining District' regulations for accessory buildings. RECOMMENDATION. Staff recommends the Planning Commission: A. Do Not Adopt Mitigated Negative Declaration (IS 20-110) for Modification MMU 20-11 based on the following findings: 1. The site is located in the Scenic Combining Overlay District (Article 34) of the Lake County Zoning Ordinance. The building does not comply with Article 34 in terms of height and size, and there does not appear to be any way of modifying the building in a manner that would make it compliant. 2. The 26' height of the accessory building is 11 feet taller than the 15' tall accessory building height allowed in the Scenic Combining Overlay District. 3. The structure cannot be mitigated to comply with the Aesthetics portion of the CEQA evaluation or with Article 34 of the Lake County Zoning Ordinance unless the building height is reduced to 15 feet. B. Deny the Modification, MMU 20-11 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will under the circumstances of the particular case, will 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 detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. That the project is not in conformance with the applicable provisions and policies of Articles 7, 34 and 60.33 of the Lake County Zoning Ordinance. SAMPLE MOTIONS: Mitigated Negative Declaration (IS 20-110) I move that the Planning Commission find that that the Initial Study (IS 20-110) prepared for the project submitted by KLS-RBS LLC on a property located at 9475 Bottle Rock Road, Kelseyville, further described as APN: 011-004-60 will have a significant effect on the environment, and therefore a mitigated negative declaration shall not be adopted based on the findings listed in the staff report dated January 27, 2022. Modification (MMU 20-11) I move that the Planning Commission find that the Modification (MMU 20-11) applied for by KLS-RBS LLC on a property located at 9475 Bottle Rock Road, Kelseyville, further described as APN: 011-004-60 does not meet the requirements of Articles 34 and 60.33 of the Lake County Zoning Ordinance and the Modification MMU 20-11 be denied with prejudice based on the findings listed in the staff report dated January 27, 2022. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission's decision, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Planning Commission's final determination.

Memorandum Item # 4 9:20 AM January 27, 2022 STAFF REPORT TO: Planning Commission FROM: Mary Darby, Community Development Director Prepared by: Eric Porter, Associate Planner DATE: January 27, 2022 RE: Pillsbury Family Farms; Major Use Permit (UP 20-50) and Initial Study (IS 20-62). APN: 001-030-36 Supervisor District 3 ATTACHMENTS: 1. Vicinity Map 2. Site Plans 3. Property Management Plan 4. Agency Comments 5. Conditions of Approval 6. Initial Study IS 20-62 7. Water Analysis, McEdwards Group, dated May 9, 2021 8. Public Comments This staff report includes eleven sections (Sections I through XI). Section I provides an executive summary of the proposed project; Section II provides site specific details of the proposed project, and the surrounding uses and zoning. Section III provides site details. Section IV recaps the water analysis that was submitted for this project. Section V provides the project analysis and conformance with the General Plan, Lake Pillsbury Area Plan, and the applicable sections of the Zoning Ordinance. Section VI provides a summary of the potential environmental impacts and mitigation measures to reduce those impacts in compliance with the California Environmental Quality Act (CEQA), as covered in the initial study. Section VII evaluates compliance with required findings for a major use permit as found in Article 51.4 of the Zoning Ordinance. Section VIII evaluates compliance with findings for commercial cannabis cultivation projects as found in Article 27(at). Section IX lists the public comments that were received for this project. Section X includes recommendations on actions that the Planning Commission can take for a decision of a major use permit. Section XI provides recommended motions for an approval decision of the proposed project. I. EXECUTIVE SUMMARY The applicant is requesting approval of a major use permit for: � Three (3) A-Type 3 "medium outdoor" cultivation licenses consisting of 124,270 square feet (sq. ft.) of cultivation area using no artificial lighting, and, � One (1) A-Type 13 Self Distribution license I. The property is located at 26102 19N16 Road, Lake Pillsbury, and is Assessor's Parcel Number (APN) 001-030-36. PROJECT SETTING Existing Uses and Improvements: The parcel is about 96.48 acres in size, large enough for the proposed three (3) A-Type 3 "medium outdoor" licenses consisting of 2.9 acres (124,270 sq. ft.) of cultivation area, and an estimated 2.5 acres (about 110,000 sq. ft.) of plant canopy (see Attachment 2, Site Plans). The property contains a pasture, a house, a permitted groundwater well, and a permitted septic system. The applicant has also applied for an A-Type 13 self-distribution license, which has no property size requirements associated and allows for legal transportation of cannabis to and from the property. Surrounding Uses and Zoning (see Attachment 1, Vicinity Map) * North: "RL" - Rural Lands, 19 acres and 40 acres; both are undeveloped. * South and West: "RL" - Rural Lands; 80 and 100 acres in size; both are undeveloped. * East: "O"; Open Space. Lot is 400 acres (BLM Land) and is undeveloped. Topography/Slope: Varied; the cultivation areas are less than 10% slope; the southern and western portions of the lot are very steep (over 30%). Soils: The cultivation area contains soil type 187-Neuns-Sanhedrin-Deadwood complex, 50 to 75 percent slopes. This map unit is on mountains. The vegetation is mainly mixed conifers and hardwoods with some shrubs. Elevation is 3,000 to 5,000 feet. Water Supply: Permitted Existing Groundwater Well Sewage Disposal: Existing Permitted On-Site Septic Fire Protection: Northshore Fire Protection District Vegetation: Several varieties of oak trees, grass and some manzanita brush X. RECOMMENDATION Staff recommends that the Planning Commission: A. Adopt mitigated negative declaration (IS 20-62) for Use Permit (UP 20-50) with the following findings: 1. Potential environmental impacts related to air quality can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1, AQ-2, AQ-3, AQ-4, AQ-5 and AQ-6. 2. Potential environmental impacts related to biological resources can be mitigated to 'less than significant' levels with the inclusion of mitigation measures BIO-1, BIO-2, BIO-3 and BIO-4. 3. Potential environmental impacts related to Cultural Resources can be mitigated to less than significant impacts with the inclusion of mitigation measures CUL-1. 4. Potential environmental impacts related to Noise can be mitigated to less than significant impacts with mitigation measures NOI-1, NOI-2 and NOI-3. 5. As mitigated through specific conditions of approval, this project will result in less than significant environmental impacts. 6. Any changes to the project will require either an amended Use Permit and/or a new Use Permit unless the Community Development Director determines that any changes have no potential increased environmental impacts. B. Approve Use Permit UP 20-50 with the following findings: 1. That the establishment, maintenance, or operation of the use applied for will not 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, or be detrimental to property and improvements in the neighborhood or the general welfare of the County. 2. The site is adequate in size, shape, locations, and physical characteristics to accommodate the type of use and level of development proposed. 3. The streets, highways and pedestrian facilities can be mitigated to be reasonably adequate to safely accommodate the proposed use. 4. That there are adequate public or private services, including but not limited to fire protection, water supply, sewage disposal, and police protection to serve the project. 5. That the project is in conformance with the applicable provisions and policies of this Code, the General Plan and any approved zoning or land use plan. 6. That no violation of Chapters 5, 17, 21, 23 or 26 of the Lake County Code currently exists on the property, unless the purpose of the permit is to correct the violation, or the permit relates to a portion of the property which is sufficiently separate and apart from the portion of the property in violation so as not to be affected by the violation from a public health, safety or general welfare basis. 7. The proposed use complies with all applicable development standards. 8. The applicant is qualified to make the application. 9. The application complies with the qualifications for a commercial cannabis permit. Sample Motions (Approval): Mitigated Negative Declaration I move that the Planning Commission find that the Initial Study (IS 20-62) applied for by Pillsbury Family Farms, Inc. on property located at 26102 19N16 Road, Lake Pillsbury, and further described as APN: 001-030-36 will not have a significant effect on the environment and therefore a mitigated negative declaration shall be approved with the findings listed in the staff report dated January 13, 2022. Major Use Permit (UP 20-50) I move that the Planning Commission find that the Use Permit (UP 20-50) applied for by Pillsbury Family Farms, Inc. on property located at 26102 19N16 Road, Lake Pillsbury, and further described as APN: 001-030-36 does meet the requirements of Section 51.4 of the Lake County Zoning Ordinance and the Major Use Permit be granted subject to the conditions and with the findings listed in the staff report dated January 13, 2022. NOTE: The applicant or any interested person is reminded that the Zoning Ordinance provides for a seven (7) calendar day appeal period. If there is a disagreement with the Planning Commission, an appeal to the Board of Supervisors may be filed. The appropriate forms and applicable fee must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination.