SAN LEANDRO -- Nearly a year after the expiration of the city's moratorium on medical marijuana dispensaries, the City Council will decide Monday night whether to proceed with a plan to allow and regulate the shops, or ban them.

The city council issued a yearlong moratorium on dispensaries in 2010, and again in 2011, a prohibition that expired Sept. 30, 2012.

After an appellate court in Los Angeles County ruled last July that cities could not ban the shops, San Leandro began drafting a new city ordinance that would allow two highly regulated dispensaries in city limits. In May, the California Supreme Court ruled in a Riverside case that cities and counties may pass outright bans.

The City Council, which has been tracking legal precedent set elsewhere, must now decide which direction the city will go.

If the council approves the draft ordinance allowing dispensaries, the ordinance will go to the city's Board of Zoning Adjustments and Planning Commission before returning to the council for final approval as early as November.

The City Council will provide direction to city staff at a 7 p.m. meeting Monday at City Hall, located at 835 East 14th St.

Ashly McGlone covers San Leandro, San Lorenzo, San Ramon and the Washington Township Health Care District. Contact her at 510-293-2463. Follow her at Twitter.com/AshlyReports.