Belmont City Council Meeting February 11, 2025: Cannabis Study, Financials, and Measure A Endorsement
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Belmont City Council Meeting Summary: February 11, 2025
The Belmont City Council held its regular meeting on Tuesday, February 11, 2025, at 6:00 PM (with the study session beginning at 6:30 PM) in the City Council Chambers at City Hall, One Twin Pines Lane. The meeting included a study session on cannabis retail community benefits, several administrative approvals, the adoption of the updated Sanitary Sewer Master Plan, a mid-year financial report, and a resolution endorsing San Mateo County's March 2025 Ballot Measure A. All motions passed unanimously (5-0) unless otherwise noted.
Consent Calendar
- Approved minutes for January 14, 2025, January 28, 2025, and February 4, 2025.
- Approved Council Intergovernmental Assignment Updates (with minor corrections noted).
- Authorized a 5-year Task Order with HdL Companies for Business License Tax administration services, not to exceed $625,000, subject to annual council appropriation.
- Affirmed the City of Belmont Investment Policy as submitted.
- Approved two resolutions authorizing the City Manager to execute an MOU with the City of San Bruno for FEMA Pre-Disaster Mitigation Grant No. LPDM-PJ-09-CA-2023-003 and two agreements for fuel reduction work reimbursed by FEMA and CAL FIRE (Grant No. 5GG21211), combined not to exceed $403,704. (Response to Councilmember McCune's question: fuel reduction activities have begun, including the chipping program for properties west of Alameda starting in March, and an RFP for treatment work will be published soon.)
- Approved the Second Revised and Restated JPA for the San Mateo County Operational Area Emergency Services Organization.
- Adopted the ordinance repealing provisions in Belmont City Code Chapters 12 and 19 pertaining to business licenses superseded by Measure DD and amending solicitor regulations.
- Authorized Task Order No. 3 with The Lew Edwards Group for communications outreach and consulting services, for $78,000 plus a 10% contingency, bringing the total not-to-exceed to $381,600.
- Approved the FY 2025-26 Budget Calendar.
- Adopted a resolution accepting the Bishop subdivision’s street improvements and fire road, releasing the subdivision improvement bond, accepting a maintenance and warranty bond, and accepting the dedication of open space.
Public Comments & Testimony
- Study Session (Cannabis): David Salguero expressed support for the 1397 El Camino Real site but opposed the 1538 El Camino Real location, citing proximity to his home on Fifth Avenue (about 200 feet) with several young children. He noted security concerns based on incidents at other dispensaries and requested the council approve only one store as a pilot. Mary Morrissey Parton voiced support for the cannabis project, raised concerns about the sunset provision on the 40% contribution to the Belmont Community Foundation, and suggested splitting that share between Parks and Recreation and the community advisory board.
- Public Comment (Non-Agenda): Tiffany, a 13-year Belmont resident, urged the city to install a pedestrian railing on Ralston Avenue along the sidewalk used by students, citing dangerous conditions with high-speed traffic and citing responses from staff indicating the need for a capital improvement project.
- Measure A Endorsement: Multiple speakers, including Rich Hedges (San Mateo resident), Charles Stone (Belmont), Sean Harper (San Mateo County Sheriff's Sergeant and board member of Organization of Sheriff Sergeants), Vanessa Lemos Tapia (Deputy Sheriff’s Association), Mike Nash (Correctional Officer), Julie Lind (San Mateo Labor Council), James Simons (Independent Advisory Commission to the Sheriff's Office), and Jackie Ragoni (Belmont resident and county employee speaking personally), urged the council to endorse Measure A, citing the findings of Judge Doris Cordell’s independent report, allegations of retaliation, misconduct, and the sheriff’s failure to address concerns.
- Sanitary Sewer Master Plan: Mary Morrissey Parton highlighted the discrepancy between commercial and residential sewer rates and urged a more equitable split, given that most new development is residential.
Discussion Items
- Cannabis Retail Businesses Community Benefit Terms (Study Session): Assistant City Manager Kathy? (likely) presented proposed Development Agreement (DA) terms for two cannabis retail applicants: Canabelle (1397 El Camino Real) and NUG (1538 El Camino Real, Suite C). Staff recommended allowing both applications to proceed. The council discussed the differences in the two businesses and the terms. Councilmember La Merlow opposed allowing both at this time, preferring a single pilot to gain experience and revisit later. Other councilmembers (Vice Mayor Pang Maganares, Councilmembers McCune, Jordan, and Mayor Mates) expressed support for both applications, citing market unpredictability and the diversity of offerings. The council provided direction to staff to proceed with both applications and continue with the next steps (Planning Commission hearing on March 4, 2025, and City Council first reading in March, with final readings in April).
- Adoption of Updated Sanitary Sewer Master Plan: Public Works consultants (Shamala and Gia from Adura) presented the 2025 plan, which included an update to sewer planning criteria, hydraulic modeling with flow calibration, CCTV defect analysis, and a prioritized 16-year capital improvement program (CIP). The total cost is estimated at $69 million over 16 years, with $36 million in the first five years, $22 million in the next five, and $11 million in the final five. The plan includes 16 capacity-related projects and one lift station project. Councilmember La Merlow appreciated the breakdown of capacity vs. condition related projects and asked about flow projections (from 1.44 million to 2.65 million gallons per day). The directors noted that funding would come from sewer rates and development connection fees. The plan was adopted unanimously.
- Mid-Year Financial Results: Finance Director Grace Castaneda presented the mid-year review for FY 2024-25. Highlights: General fund balance was $31.1 million at the half-year mark; revenue was slightly over budget due to a $1.1 million VLF reimbursement; expenditures were under budget. Sales tax revenue was projected to be lower than budget by about $110,000, and Measure I sales tax was also trending below trendline. Hotel tax (TOT) had recovered to pre-pandemic levels due to the rate increase, but occupancy had not fully recovered. The city has a structural revenue gap, with the lowest revenue per household among comparison cities)Skip. The VLF shortfall is $1.7 million for Belmont (countywide $114 million), and the state did not include the reimbursement in its January budget. The council adopted resolutions amending the City and BFPD budgets. Councilmember La Merlow asked about the likelihood of getting the VLF reimbursement and why sales tax and development were both slowing; staff explained the impacts of high interest rates and inflation. Mayor Mates suggested assuming the VLF will not be received and planning accordingly.
- Appointments to City Commissions: The council appointed two members to the Planning Commission for three-year terms: Brian Coolidge and Margaret Jidala (the latter receiving majority support). For the Parks and Recreation Commission, the council appointed three voting members for three-year terms (Dora Amkin, Ariana Cunha, and Avery Liefert) and two non-voting youth members for one-year terms (Itza Perez and Gia Vankates).
- Endorsement of San Mateo County’s March Ballot Measure A: Mayor Mates introduced the item, recommending the council adopt a resolution endorsing Measure A, which would allow the Board of Supervisors to remove the Sheriff for cause. The council heard public comment and discussed the merits, including concerns about setting a precedent but recognizing the direct impact on Belmont’s public safety due to mutual aid and shared services. The council voted 5-0 to adopt the resolution.
Key Outcomes
- Cannabis: Council directed staff to continue with both cannabis retail applications and develop the development agreements with the community benefit terms as proposed.
- Sanitary Sewer Master Plan: Adopted unanimously.
- Mid-Year Budget Resolutions: Adopted unanimously for both the City and Belmont Fire Protection District.
- Commission Appointments: Approved unanimously: Brian Coolidge and Margaret Jidala (Planning); Dora Amkin, Ariana Cunha, and Avery Liefert (Parks & Recreation); Itza Perez and Gia Vankates (youth members).
- Measure A Endorsement: Adopted resolution endorsing Measure A unanimously (5-0).
- Next Steps: The council will receive a report on the cannabis entitlements at the March 4, 2025 Planning Commission meeting and subsequent City Council meetings in March and April. The city will continue to advocate for VLF reimbursement from the state.
Meeting Transcript
Tonight is Tuesday, February 11th, 2025 at 6 p.m. We are here in the council chambers at City Hall, one Twin Pines Lane in Belmont. The council meetings, unless otherwise noted, are broadcast live to Belmont residents on Comcast Cable Channel 27. They're also streamed live via the city's website at Belmont.gov. We are also on Zoom at Belmont-gov.zoom.us, and there's a meeting ID that's uh printed on our published agenda. And the public may attend the meeting in the council chambers here at Belmont City Hall second floor. Uh this evening we have a study session. Uh so I'm sorry, first we'll do the call to order and roll call, please. Good evening, Councilmember Jordan. Here. Councilmember La Merlow. Here. Councilmember McCune. Present. Vice Mayor Pangwang and Euros. Present. And Mayor Maids. Present. We have a quorum. Thank you. Great. Item three is closed session. We do not have closed session this evening. Item four is the Pledge of Allegiance. Please rise if you're able. I pledge allegiance to the flag of the United States of America and to the Republic for which nation under God. Okay, thank you. Item five is a study session. 5A is the cannabis retail business community benefit terms, and I think we have assistant city manager. Fly involves with us this evening. Good evening, Madam Mayor and members of the council. I am also joined here tonight by representatives of both cannabis retail operations who are available in the audience if the council has any questions for them about their community benefit terms or their planned operations. So just to start out with some brief background, the city council approved a regulatory framework for retail cannabis in Belmont in October of 2023. Retail cannabis is only allowed on a small section of El Camino between O'Neill and F Street. The framework allows for up to two retail cannabis businesses and potentially one distribution business, although there has been no interest from that area, to go through a planning entitlement process to be rezoned to an S3 overlay district and also to get a conditional use permit. The businesses must be 600 feet away from each other as well as away from any sensitive receptors such as schools, including daycare centers. The businesses also must get a regulatory permit from the police department, which requires background checks on the ownerships and review of security and operational plans for the businesses. Staff created a pre-qualification process to vet potentially interested businesses. We received four proposals from businesses and invited two to apply for the entitlement process based on their qualifications and business operations. I also want to briefly go over the state regulatory environment for cannabis. It's a heavily regulated industry, and all cannabis businesses must obtain state licenses for cultivation, manufacturing, testing, as well as retail sales. There's also systems that monitor cannabis from its growth all the way to sale that prevent diversion into the illicit market for those that are permitted. The operators that are issued permits must meet stringent security standards, packaging, labeling requirements, and have child resistant packaging and warning labels on all their products. All the products that are sold in permitted retail outlets are tested for potency and the ingredients are required to be labeled according to sale. All this is to say is that cannabis that is purchased through these permitted retail locations is much safer for the general public than what is available on the black market. And therefore, there is some element of providing a service to the public by having these available through vetted retail locations. So the first site that the city has invited to apply is the Canabelle Business, which is proposing to locate locate at the Sumac Mediterranean Grill site at 1397 El Camino. I'm not going to be going over the planning applications and the design drawings for these projects. That'll be part of the entitlements, but I just want to give you a flavor of the locations and what some of the interiors of other operations look like for these businesses. So this next slide shows you some of the other businesses that are operated by the same owner.
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