Upon the initiation or filing of such petition for rezoning or upon the initiation of procedure for an amendment, the same shall be set for hearing before the planning commission by the planning director.

Notice of the time, place, and purpose of such hearing shall be given by the following method:

The city council, upon receipt of the recommendation of the planning commission on amendment or rezoning, shall set the same for hearing.

Notice of the time, place, and purpose of such hearing shall be given by causing a notice thereof to be published in at least one regular issue of the official newspaper of the city at least ten days before said hearing. No hearing shall be required for a planning commission denial on a rezoning; however, in the event of an appeal, Section 17.81.060 shall be the procedure for the city council in hearing an appeal on a recommendation of denial by the planning commission.

If the planning commission finds that the public health, safety, and general welfare warrant the change of regulations or zones, and such change is consistent with the applicable land use policies set forth in the coastal element of the general plan, the planning commission may recommend such change to the city council. The city council may, by ordinance, effect such change upon approval by state's Coastal Commission. The planning commission shall not be bound to recommend the identical change of regulations on are-as petitioned for or initiated but may recommend a more restrictive zone or regulation or an area smaller than that originally petitioned for or initiated if such change is warranted by the public health, safety, and general welfare and is consistent with the applicable land use policies set forth in the coastal element of the general plan. Such process shall not take less than six weeks.

If the planning commission finds that the public health, safety, and general welfare does not warrant the change of zones or regulation or such change is not consistent with the applicable policies set forth in the coastal element of the general plan, said determination of findings shall be final and conclusive unless an appeal is filed with the city council as provided in Section 17.81.060.

In the case of petitions to rezone, if the planning commission fails to make a determination of finding either disapproving or approving said petition within sixty days after the close of public hearing thereon, said failure shall constitute approval of said petition; provided, that this time limitation shall not apply in the event the petitioner agrees to the delay.

Any persons dissatisfied with any action of the planning commission on an amendment or rezoning may appeal therefrom to the city council at any time within ten days after rendition of the decision of the planning commission. The appeal is taken by filing a notice of appeal with the city and a copy thereof with the planning commission. Upon filing a notice of appeal, the planning director must, within ten days, transmit all exhibits, notices, affidavits, orders, and other papers and documents on file with the planning commission, together with the report of the commission to the city council.

The city council shall hold a hearing upon said appeal after mailing written notice to the appellant and all other and concerned and interested parties as established by their filing of the proper request, and by causing a notice to be published in at least one regular issue of the official newspaper of the city at least ten days prior to said hearings by the city council.

If the report and recommendation of the city planning commission should be unfavorable to the proposed amendment for rezoning, no such amendment or rezoning shall be adopted without four members of the city council voting in its favor.

The city council, prior to making any substantial changes to the planning commission's recommendation, shall return the matter to the planning commission for their consideration and report of the proposed substantial changes.