Planning Commission — Thursday, September 23, 2021

MEMORANDUM STAFF REPORT TO: Planning Commission FROM: Carol Huchingson, Interim Community Development Director Prepared by: Sateur Ham, Assistant Planner II DATE: September 23, 2021 RE: Blue Oak Farms * Major Use Permit (UP 19-48) * Initial Study (IS 19-68) Supervisor District Bruno Sabatier Planning Commissioner Everardo Perez ATTACHMENTS: 1. Vicinity Map 2. Property Management Plan 3. Proposed Site Plans 4. Proposed Conditions of Approval 5. Initial Study 6. Agency Comments/Public Comments EXECUTIVE SUMMARY The applicant, Blue Oak Farms, LLC, is seeking approval for a Major Use Permit to allow Commercial Cannabis Cultivation located at 1756 Ogulin Canyon Road, Clearlake, California, on Lake County Assessor's Parcel Number 010-055-46. The parcel is surveyed as �51 acres and zoned "RL" Rural Lands. The parcel is located approximately 2.3 miles northeast of the intersection of State Highway 53 and Ogulin Canyon Road. Access to the parcel is by a recorded easement through a secured entry to a private driveway off of Ogulin Canyon Road. The applicant's proposal includes the following: * Two (2) A-Type 3: "Outdoor" licenses: Outdoor cultivation for adult-use cannabis without the use of light deprivation and/or artificial lighting in the canopy area at any point in time. The applicant proposes approximately 87,120 square feet (2.0 acres) of commercial cannabis canopy area within a cultivation area of approximately 2.65 acres (115,400 square feet). * One (1) A-Type 1C: "Outdoor Specialty Cottage" license: Outdoor cultivation for adult-use cannabis without the use of light deprivation and/or artificial lighting in the canopy area at any point in time. The applicant proposes 2,500 square feet of commercial cannabis canopy area within a cultivation area of approximately 2.65 acres. The applicant is also proposing cultivation accessory structures to include (Figure 1): * Portable toilets with handwashing station, * Two (2) 2,500-gallon water storage tanks, * Irrigation line from well to storage tanks, * 225 square feet trash enclosure, * 200 square feet stormproof chemical storage shed, * 100 square feet stormproof chemical storage shed, * Six (6) parking spaces, including one (1) ADA parking space, * Two (2) 320 square feet cargo containers for storage, * 3,825 square feet solar array, * Solar-powered security cameras, * Solar-powered motion-sensing security lights, * 6 feet high wire fencing surrounding cultivation area, and * Compost/soil storage area The applicant proposes full sun cultivation, with imported soil and amendments, either in tilled and amended native soil or in smart pots (grow bags) placed on top of the existing grade. Site preparation will include vegetation clearing, tree removal, and tilling, as well as grading for leveling out the cultivation accessory area to make room for portable toilets, water tanks, storage sheds and containers, and parking (Figure 1). The applicant shall apply for the applicable permits for review and approval for grading and tree removal. Security Access to the site will come from an existing driveway through a secured 14-foot wide (or larger) gate, thereby allowing for emergency vehicle access. The cultivation area will be secured by a 6-foot chain-link fence. The site will be equipped with security cameras that will monitor the cultivation site and ancillary areas, including the compost area, storage buildings, and all entrances and exits. The cameras will operate 24/7 at a minimum of 30 frames per second. Water Source and Usage Plants would be watered using an above-ground, drip-irrigation system. Water for cultivation activities would be supplied from the existing groundwater well. The well was drilled in March 2017, is approximately 372 feet in depth, and has an approximate yield of 50 gallons per minute (GPM). Water would be pumped from the well to two (2) 2,500-gallon water tanks adjacent to the cultivation area. According to the Property Management Plan, the expected annual water use would be 3,000 gallons per day per acre. This would equate to approximately 720,000 gallons (2.2 acre-feet) for 2.0 acres of outdoor canopy over an approximately 120 day cultivation season. The daily demand would be approximately 6,000 gallons. The total water storage would be 5,000 gallons. The well yield is approximately 50 GPM, which would produce the average daily demand of water in 2 hours. At an estimated 50 GPM, the annual yield is approximately 80.6 acre-feet, thus, the project would be utilizing approximately 2.7% of the well capacity. Water conservation practices will be implemented, including selection of plant varieties that are suitable for the climate of the region, the use of driplines and drip emitters (instead of spray irrigation), mulching to reduce evaporation, water application rates modified from data from soil moisture meters and weather monitoring, rooftop water collection (where feasible and permitted), shutoff valves on hoses and water pipes, daily visual inspections of irrigation systems, immediate repair of leaking or malfunctioning equipment, and water metering and budgeting. A mitigation measure has been added to the project requiring the installation of a meter on the well to monitor water use as proposed in the applicant's project management plan and as required by the local ordinance in Chapter 21, Article 27.11. The applicant shall also maintain a record of all data collected and shall provide a report of the data to the County annually. Fertilizer and Chemical Storage and Usage All fertilizers and chemicals will be stored in locked and secured stormproof sheds. Fertilizers and chemicals will be properly labeled and open containers sealed when stored. Personal protective equipment will be used by staff when handling fertilizers and other chemicals, such as safety glasses, gloves, dust mask or respirator, boots, and pants, and a long-sleeved shirt. Fertilizers and other chemicals will be stored, handled, and applied according to their instructions. Operation Operations would occur up to seven days per week with cultivation operations occurring approximately from April to November every year. Hours of operation for the proposed activities would typically be between approximately 6:00 a.m. and 10:00 p.m. daily. Deliveries and pickups for cannabis cultivation operations will be restricted to 9:00 a.m. to 7:00 p.m. Monday through Saturday and from 12:00 p.m. to 5:00 p.m. Sunday. Figure 1.Proposed Site Plans and Cultivation Area Staff is recommending approval of Major Use Permit, UP 19-48, and the adoption of a Mitigated Negative Declaration based on the environmental analysis (Initial Study, IS 19-68) with the incorporated Mitigation Measures and Conditions of Approval. RECOMMENDATION Staff recommends that the Planning Commission take the following actions: A. Adopt Mitigated Negative Declaration (IS 19-68) for Major Use Permit (UP 19-48) with the following findings found in Attachment 5: 1. Potential aesthetics impacts can be mitigated to less than significant levels with the inclusion of mitigation measures AES-1 through AES-2. 2. Potential air quality impacts can be mitigated to less than significant levels with the inclusion of mitigation measures AQ-1 through AQ-7. 3. Potential biological impacts can be mitigated to less than significant levels with the inclusion of mitigation measures BIO-1 through BIO-11. 4. 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. 5. Potential geology and soils can be mitigated to less than significant levels with the inclusion of mitigation measures GEO-1 through GEO-5. 6. Potential hazards and hazardous materials impacts can be mitigated to less than significant levels with the inclusion of mitigation measures HAZ-1 through HAZ-8. 7. Potential hydrology and water quality impacts can be mitigated to less than significant levels with the inclusion of mitigation measures HYD-1 through HYD-3. 8. Potential noise impacts can be mitigated to less than significant levels with the inclusion of mitigation measures NOI-1 through NOI-2. 9. This project is consistent with land uses in the vicinity. 10. This project is consistent with the Lake County General Plan, Shoreline Communities Area Plan, and Zoning Ordinance. 11. 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. 12. As mitigated through specific conditions of approval, this project will result in less than significant environmental impacts. B. Approve Major Use Permit UP 19-48 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, location, 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, Shoreline Communities 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 apply for the permit described in Chapter 21, Article 27, Section 1.ii.(g)(h). 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 19-48) applied for by Blue Oak Farms LLC on property located at 1756 Ogulin Canyon Road, further described as APNs: 010-055-46 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 September 23, 2021. Major Use Permit (UP 19-48) I move that the Planning Commission finds that the Major Use Permit (UP 19-48) applied for by Blue Oak Farms LLC on property located at 1756 Ogulin Canyon Road, further described as APNs: 010-055-46 does meet the requirements of Section 51.4 and Article 27, Section 1(at) [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 September 23, 2021. 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 fees must be submitted prior to 5:00 p.m. on or before the seventh calendar day following the Commission's final determination.

MEMORANDUM STAFF REPORT TO: Planning Commission FROM: Carol Huchingson, County Administrative Officer Prepared by: Eric Porter, Associate Planner DATE: September 23, 2021 SUBJECT: Flower Lady Farms Minor Use Permit (file no. MUP 20-27) Initial Study (IS/MND 20-112) Appeal of Early Activation (AA 21-03) Project Location: 12345 Seigler Canyon Rd., Middletown. APN: 012-024-43 Supervisor District 5 ATTACHMENTS: 1. Vicinity Map 2. Site Plans 3. Property Management Plan 4. Agency Comments 5. Proposed Conditions of Approval 6. Initial Study IS 20-112 7. Public Comments 8. Appeal (AA 21-03) Materials I. EXECUTIVE SUMMARY The applicant is proposing an "A-Type 2B - Small Mixed-Light" and an A Type 13 Self-Distribution license (which allows the transportation of cannabis from their operation site to a licensed cannabis distribution and manufacturing facilities throughout the State of California) to allow a commercial cannabis cultivation operation on a parcel approximately 22.99 acres in size. The 23+ acre property is located at 12345 Seigler Canyon Road, Lower Lake, and is known as APN 012-024-43. The applicant is proposing a three-phased project as follows: o Phase 1: The total cultivation area (as defined in Chapter 21, Article 27 of the Lake County Code) of the proposed cannabis cultivation operation will be 14,820 ft2, composed of twenty-seven (27) 6'x90' "Low Hoops" (mixed-light cultivation areas described below), a 120 ft2 Security Center/Shed, and a 120 ft2 Pesticides & Agricultural Chemicals Storage Area. o Phase II: The total cultivation area of the proposed cannabis cultivation operation during of site/project development, will be 14,400 ft2, composed of eighteen (18) 6'x90' "Low Hoops" (outdoor cultivation), a 1,440 ft2 Processing Building, a 3,000 ft2 greenhouse for immature plants, a 120 ft2 Security Center/Shed, and a 120 ft2 Pesticide & Agricultural Chemical Storage shed. o Phase III: The total cultivation area of the proposed cannabis cultivation operation will be 16,440 ft2, composed of five 3,000 ft2 greenhouses, a 1,440 ft2 Processing Building, a 120 ft2 Security Center/Shed, and a 120 ft2 Pesticides & Agricultural Chemicals Storage Area. The storage sheds are not taxable 'cultivation' areas. Background. The applicant had applied for and received Early Activation for this project on August 5, 2021. On August 13, 2021, a Notice of Intent to issue Early Activation was sent to neighboring property owners; the notice stated that there was a seven day appeal period for Early Activation that expired on August 23, 2021, 5:00 pm. On August 23, 2021, 4:30 pm, an appeal was filed (file no. AA 21-03) by Steve Zelusky, representing Coast Range Wetlands Inc., a company that is overseeing a nearby wetland restoration project that is grant funded. This hearing will not only decide the minor use permit and Initial Study, but will also resolve the appeal filed on the Early Activation for this project. Denial of the project would automatically approve the appeal. Early Activation will become moot after the Use Permit is either approved or denied by the Planning Commission, however a formal decision on the appeal will need to be reached by the Planning Commission during this public hearing. The appeal of the early activation has caused the cultivator to temporarily stop his activities including obtaining temporary approvals from the County and the State for commercial cannabis cultivation while the use permit is being processed. Cannabis Project Details Construction * The entire cultivation area will be enclosed within a six (6) foot-tall wire fence, with a privacy mesh along its eastern side to screen the cultivation operation from public view. * All construction activities, including engine warm-up, will occur from 9:00am to 6:00pm Monday through Saturday and is anticipated to take approximately three to five weeks (weather dependent). The applicant anticipates to generate the following trips (daily trips, delivery/pick-up, miscellaneous, etc.): o Anticipated to generate 50-80 trips over a two to three month period during each phase of project construction / site development Post Construction * On-site drying, trimming and packaging is proposed. * The applicant and has provided well data showing the adequacy of the water table in this location. * Fertilizer and Pesticides will be stored in their designated structure and in accordance with all applicable laws and regulations. * The cannabis operations will occur from 8:00 AM to 6:00 PM, Monday through Saturday. All gates will be closed and locked during non-operational hours and/or when authorized personnel is not present. The operation is not open to the public. * The operation anticipates the following number of employees and trips generation. o Non-Harvest Season: Two (2) shifts with up to +/- 2 employees during peak shift. o Harvest Season: Three (3) shifts with up to +/- 3 employees during peak shift. o Anticipated Trips during Non-Harvest Season is 14-24 trips per day o Anticipated Trips during Harvest season +/- 24 trips per day o 1-2 deliveries/pickups per week from April 1st through November 15th o Approximately +/- 2 miscellaneous trips per week. * The operation will implement and maintained Best Management Practices (BMPs) in accordance with all applicable Federal, State and local agency requirements, in Chapter 29 and 30 of the Lake County Code. All BMPs will be maintained for life of the project. Staff recommends conditional approval of MUP 20-27, adoption of Initial Study IS 20-112, and denial of Appeal AA 21-03 for the reasons contained within this staff report. II. RECOMMENDATION Staff recommends the Planning Commission: A. Adopt Mitigated Negative Declaration (IS 20-112) for Minor Use Permit MUP 20-27 with the following findings: 1. Potential environmental impacts related to aesthetics have been mitigated to less than significant levels by mitigation measures AES-1 and AES-2. 2. Potential environmental impacts related to air quality have been mitigated to less than significant levels by mitigation measures AQ-1, AQ-2, AQ-3, AQ-4, AQ-5, AQ-6 and AQ-7. 3. Potential environmental impacts related to biological resources have been mitigated to less than significant levels by mitigation measures BIO-1, BIO-2, BIO-3 and BIO-4. 4. Potential environmental impacts related to cultural / tribal cultural resources have been mitigated to less than significant levels by mitigation measures CUL-1 and CUL-2. 5. Potential environmental impacts related to hydrological resources have been mitigated to less-than-significant levels by mitigation measures HYD-1, HYD-2 and HYD-3. 6. Potential environmental impacts related to Noise have been reduced to less than significant with the inclusion of mitigation measures NOI-1, NOI-2 and NOI-3. 7. All potential impacts have been reduced to less than significant levels with incorporation of mitigation measures and specific conditions of approval. 8. 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. Approve Minor Use Permit MUP 20-27 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, Cobb 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. 7. The proposed use complies with all development standards described in Section 1.i 8. The applicant is qualified to make the application described in Section 1.ii.(g) 9. The application complies with the qualifications for a permit described in Section 1.ii.(i) Deny appeal no. AA 21-03 with the following finding: 1. Approval of minor use permit MUP 20-27 has the effect of causing the appeal to become void since the appeal specifically applies to Early Activation of use. Sample Motions: Mitigated Negative Declaration (IS 20-112) I move that the Planning Commission find that that the Initial Study (IS 20-112) prepared for the project by Flower Lady Farms, LLC on a property located at 12345 Seigler Springs Drive, Lower Lake, further described as APN: 012-024-43 on a property located 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 September 23, 2021. Minor Use Permit (MUP 20-27) I move that the Planning Commission find that the Minor Use Permit (MUP 20-27) applied for by Flower Lady Farms, LLC on a property located at 12345 Seigler Springs Drive, Lower Lake, further described as APN: 012-024-43 does meet the requirements of Section 50.4 of the Lake County Zoning Ordinance and the Minor Use Permit be granted subject to the conditions and with the findings listed in the staff report dated September 23, 2021. Appeal (AA 21-03) I move that the Planning Commission deny appeal no. AA 21-03, which exclusively applied to Early Activation of Use, and which is no longer applicable due to the decision made to approve minor use permit MUP 20-27. 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.