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HomeMy WebLinkAboutItem 6 - Murphy ReportADMINISTRATIVE APPEALS BOARD STAFF REPORT DATE: October 23, 2024 SUBJECT: APPEAL OF THE ADMINISTRATIVE FINE OF $5,000 TO LAUREN MURPHY FOR VIOLATION OF CHAPTER 5.55.060 OF THE PALM SPRINGS MUNICIPAL CODE BY: Office of Special Programs Compliance Department SUMMARY Lauren Murphy has requested an appeal of the administrative citation AB6014 and fine of $5,000.00 for operating an adult-use cannabis business and engaging in adult-use cannabis activity within the City of Palm Springs without first obtaining the applicable state and local adult- use cannabis business licenses. RECOMMENDATION: 1) Open the Appeal Hearing and accept public testimony. 2)Adopt Resolution No. ______, A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF ADMINISTRATIVE CITATION AB6014 AND FINE OF $5,000 TO LAUREN MURPHY FOR VIOLATION OF CHAPTER 5.55.060 OF THE PALM SPRINGS MUNICIPAL CODE BACKGROUND: In California, it is legal for individuals aged 21 and older to possess and cultivate cannabis, in accordance with the Health and Safety Code’s (HSC) Uniform Controlled Substances Act. Under HSC-11357 and HSC-11358, individuals aged 21 or older may possess up to 28.5 grams of cannabis or up to 8 grams of concentrated cannabis. Additionally, individuals in this age group are permitted to grow up to 6 cannabis plants for personal use. In the City of Palm Springs, Adult-Use Cannabis Related Businesses and Activities are regulated with Chapter 5.55 with the purpose and intent to regulate the cultivation, manufacturing, processing, testing, transportation, and distribution, of cannabis goods in a manner which is responsible, which protects the health, safety, and welfare of the residents of Palm Springs, and to enforce rules and regulations consistent with State Law under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). In part to meet these objectives, an annual permit shall be required in order to own and/or to operate an Adult-Use Cannabis Business within Item 7 - Page 1 Administrative Appeals Board Staff Report October 23, 2024 - Page 2 Cannabis Related Business and Activities Appeal – Murphy Palm Springs. Nothing in this Chapter is intended to authorize the possession, use, or provision of Cannabis for purposes that violate state or federal law. The provisions of this Chapter are in addition to any other permits, licenses, and approvals that may be required to conduct business in the City, and are in addition to any permits, licenses and approval required under state, county, or other law. On Monday, August 19, 2024, the Department of Special Program Compliance Director, Veronica Goedhart, informed Code Compliance Officer Johnathan Ingram that the California Department of Fish and Wildlife would be serving a search warrant at 2285 E. Tachevah Dr. for illegal cannabis cultivation and manufacturing of cannabis products and reached out to our department requesting our participation and assistance. Officer Ingram then contacted Susan Sanchez, Warden with the California Department of Fish and Wildlife Law Enforcement Division, Cannabis Enforcement Program. Officer Ingram coordinated with Susan to include himself and Code Compliance Supervisor Mitch Nabhan in attending alongside their strike team during the execution of the search warrant. On Wednesday, August 21, 2024, Code Compliance Supervisor Mitch Nabhan and Code Compliance Officer Johnathan Ingram arrived at the Bureau of Land Management office to meet with the California Department of Fish and Wildlife for a briefing on the strike team’s operations plan. After the briefing, Code Compliance Supervisor Nabhan and Code Compliance Officer Ingram dispatched with the strike team to the property and remained on standby while the team detained two subjects involved in operating an adult-use cannabis business without the required permits. Once the strike team secured the property Code Supervisor Nabhan and Code Officer Ingram were granted clearance to enter, where they conducted a thorough inspection of the premises. Photographs were taken to document the findings. Inside the house, Code Compliance observed: (1) room set up for indoor cultivation (nursery). (1) room set up for drying harvested plants and packaging cannabis products. (2) rooms setup for cannabis manufacturing (19) packages of bulk cannabis, processed and trimmed in bundles of one-pound and half- pound bags. (25) harvested untrimmed cannabis plants Final form packaging materials including pre-printed graphic labels and containers The exterior backyard contained: Outdoor Cultivation areas containing mature cannabis plants rooted in the ground throughout the backyard. Outdoor Nursery area along the east side yard of the property containing immature plants. CO2 tanks, materials for indoor hydroponic growing stations. Item 7 - Page 2 Administrative Appeals Board Staff Report October 23, 2024 - Page 3 Cannabis Related Business and Activities Appeal – Murphy STAFF ANALYSIS: The property located at 2285 Tachevah Dr., (the property) is a single-family residence with zoning classification of R1C. R1C is one of five that has been established to provide a variety of low- density housing types and neighborhoods. Commercial activity is in general not a use permitted in residential zones. Specifically, cannabis cultivation, manufacturing and distribution are limited to manufacturing zones, with a respective conditional use permit. An adult-use cannabis permit was never issued to a tenant, or owner for adult-use cannabis related business and activities at the property prior to any zoning or regulation updates and would not be permitted with the current zoning regulations. The property is currently owned by Ross R. Melin with a mailing address in Indian Wells. Lauren Murphy is not an owner listed on title. Item 7 - Page 3 Administrative Appeals Board Staff Report October 23, 2024 - Page 4 Cannabis Related Business and Activities Appeal – Murphy Item 7 - Page 4 Administrative Appeals Board Staff Report October 23, 2024 - Page 5 Cannabis Related Business and Activities Appeal – Murphy The suspects in the investigation were found to be advertising and facilitating the operation of an adult-use cannabis business via the social media platform Instagram under the account name “new_york_dill”. The account description identifies “Dylan B” and describes association with cannabis cultivation and manufacturing. The images contained within this user account display both product and labeling that were later discovered on the premises. Item 7 - Page 5 Administrative Appeals Board Staff Report October 23, 2024 - Page 6 Cannabis Related Business and Activities Appeal – Murphy In the lead up to the service of the search warrant, the suspects identified that were associated with the subject location 2285 E Tachevah Dr were Dylan Murphy & Lauren Murphy During the execution of the search warrant at the premises Code Officer Johnathan Ingram and Code Supervisor Mitch Nabhan observed both cultivation activity, defined within PSMC 5.55 as any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Adult-Use Cannabis, and manufacturing activity within the interior of the property. Item 7 - Page 6 Administrative Appeals Board Staff Report October 23, 2024 - Page 7 Cannabis Related Business and Activities Appeal – Murphy Item 7 - Page 7 Administrative Appeals Board Staff Report October 23, 2024 - Page 8 Cannabis Related Business and Activities Appeal – Murphy Item 7 - Page 8 Administrative Appeals Board Staff Report October 23, 2024 - Page 9 Cannabis Related Business and Activities Appeal – Murphy Item 7 - Page 9 Administrative Appeals Board Staff Report October 23, 2024 - Page 10 Cannabis Related Business and Activities Appeal – Murphy Additionally, during the execution of the search warrant at the premises Code Officer Johnathan Ingram and Code Supervisor Mitch Nabhan observed cultivation activity, defined within PSMC 5.55 as any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of Adult-Use Cannabis within the exterior of the property. Item 7 - Page 10 Administrative Appeals Board Staff Report October 23, 2024 - Page 11 Cannabis Related Business and Activities Appeal – Murphy Item 7 - Page 11 Administrative Appeals Board Staff Report October 23, 2024 - Page 12 Cannabis Related Business and Activities Appeal – Murphy PSMC 5.55.060, titled Adult-Use Cannabis Permit Required to Engage in Adult-Use Cannabis Business clearly states: No person may engage in any Adult-Use Cannabis Business or in any Adult-Use Cannabis Activity within the City of Palm Springs including Cultivation, manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of Cannabis goods unless the person: (1) has a valid Adult-Use Cannabis Permit from the City of Palm Springs; and (2) is currently in compliance with all applicable state and local laws and regulations pertaining to the Adult-Use Cannabis Business Item 7 - Page 12 Administrative Appeals Board Staff Report October 23, 2024 - Page 13 Cannabis Related Business and Activities Appeal – Murphy and the Adult-Use Cannabis Business activities, including the duty to obtain any required state licenses. Persons with a valid Adult-Use Cannabis Permit shall only operate under the name and/or "doing business as" or "DBA" provided in the permit application. Staff finds that based on the findings observed by the Code Compliance Officers, along with the supporting documentation investigated by the CA Department of Fish and Wildlife that adult-use cannabis activity as defined with the Palm Springs Municipal Code occurred at the property without City of Palm Springs approval and required permits. The findings support the violation identified, citation issuance and applicable penalty. Mitchell Nabhan, Code Compliance Supervisor Special Program Compliance Attachments: Resolution no. _____ Decision of the Administrative Appeals Board 1 Notice of Appeal Hearing 2 Administrative Citation Appeal Letter 3 Notice of Violation 4 Code Officer Report 5 Item 7 - Page 13 ATTACHMENT 1  Item 7 - Page 14 RESOLUTION NO. ___ A RESOLUTION OF THE ADMINISTRATIVE APPEALS BOARD OF THE CITY OF PALM SPRINGS, CALIFORNIA, ON THE APPEAL OF ADMINISTRATIVE CITATION AB0614 AND FINE OF $5,000 TO LAUREN MURPHY FOR VIOLATION OF CHAPTER 5.55.060 OF THE PALM SPRINGS MUNICIPAL CODE Jurisdiction: This administrative hearing is conducted in accordance with Palm Springs Municipal Code 2.50 which confers jurisdiction upon the Administrative Appeals Board. WHEREAS, Lauren Murphy does not currently hold a valid Adult-Use Cannabis Permit from the City of Palm Springs; WHEREAS, No person may engage in any Adult-Use Cannabis Business or in any Adult-Use Cannabis Activity within the City of Palm Springs including Cultivation, manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of Cannabis goods unless the person has a valid Adult-Use Cannabis Permit from the City of Palm Springs; WHEREAS, No person may engage in any Adult-Use Cannabis Business or in any Adult-Use Cannabis Activity within the City of Palm Springs including Cultivation, manufacture, processing, laboratory testing, transporting, dispensing, distribution, or sale of Cannabis goods unless the person is currently in compliance with all applicable state and local laws and regulations pertaining to the Adult-Use Cannabis Business and the Adult-Use Cannabis Business activities, including the duty to obtain any required state licenses. WHEREAS, On Wednesday, August 21, 2024, The California Department of Fish and Wildlife Law Enforcement Division executed a search warrant for illegal cannabis cultivation and manufacturing of cannabis products at the property located at 2285 E. Tachevah Dr., Palm Springs, WHEREAS, On Wednesday, August 21, 2024, the Department of Special Program Compliance, Code Compliance Division accompanied The California Department of Fish and Wildlife Law Enforcement Division during the execution of a search warrant for illegal cannabis cultivation and manufacturing of cannabis products at the property located at 2285 E. Tachevah Dr., Palm Springs, WHEREAS, the City investigated and determined that Lauren Murphy, residing at 2285 E. Tachevah, engaged in Adult-Use Cannabis Business Activity within the City of Palm Springs including Cultivation, manufacturing, processing, transporting, and distribution, Item 7 - Page 15 Resolution ____ Page 2 WHEREAS, Administrative Citation No. AB0614 was issued to Lauren Murphy for violation of Palm Springs Municipal Code 5.55.060 titled Adult-Use Cannabis Permit Required to Engage in Adult-Use Cannabis Business WHEREAS, Lauren Murphy, filed an administrative appeal of the Administrative Citation No. AB0614 for with the City Clerk and paid the appeal fee; and WHEREAS, the Administrative Appeals Board opened and conducted a duly noticed Administrative Appeal Hearing on October 23, 2024 and WHEREAS, the Administrative Appeals Board was presented prima facie evidence that Lauren Murphy violated Section 5.55.060 of the Palm Springs Municipal Code; and WHEREAS, the Administrative Appeals Board has carefully reviewed and considered all the evidence presented in connection with said appeal on October 23, 2024; and THE ADMINISTRATIVE APPEALS BOARD HEREBY FINDS, after due consideration given to the relevancy, weight and credibility of testimony and evidence, and based upon a preponderance of the evidence in accordance with the Board’s procedures, as follows: SECTION 1. The Appellant is in violation of Palm Springs Municipal Code 5.55.060. The Administrative Appeals Board upholds the Administrative Citation and Fine of $5,000.00 to Lauren Murphy. The Appellant is not in violation of Palm Springs Municipal Code 5.55.205 (A)(2) and 5.55.110. The Administrative Appeals Board overturns the Administrative Citation and Fine of $5,000.00 to Lauren Murphy. Item 7 - Page 16 Resolution ____ Page 3 SECTION 2. The Administrative Appeals Board directs the City Clerk to deliver a copy of this Resolution to each party and to file a disposition report with the Palm Springs City Council. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS ADMINISTRATIVE APPEALS BOARD THIS DAY OF 2024. Patrick Basille Chair ATTEST: Brenda Pree, MMC, CERA City Clerk STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, Brenda Pree, Interim City Clerk of the City of Palm Springs, do hereby certify that Resolution No. ____ is a full, true and correct copy, and was duly adopted at a meeting of the Administrative Appeals Board of the City of Palm Springs on the day of , by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSE: BRENDA PREE, MMC, CERA City Clerk Item 7 - Page 17 ATTACHMENT 2  Item 7 - Page 18 NOTICE OF ADMINISTRATIVE HEARING CITY OF PALM SPRINGS, CALIFORNIA BEFORE THE ADMINISTRATIVE APPEALS BOARD TO: Lauren Murphy 2285 E. Tacheva Dr. Palm Springs, CA. 92262 NOTICE IS HEREBY GIVEN, pursuant to Palm Springs Municipal Code §2.50.080(d), of the Appeal Hearing before the Administrative Appeals Board, on the decision of the Department of Special Program Compliance, Violation of the Palm Springs Municipal Code 5.55, with respect to adult use cannabis related businesses and activities located at 2285 E. Tacheva Dr., Palm Springs, CA. 92262. Hearing Date: Hearing Time: October 23, 2024 5:30 p.m. Location: City Hall Large Conference Room 3200 E. Tahquitz Canyon Dr, Palm Springs, CA. 92262 The Administrative Appea ls Board requests that if you have supplementa l documentation/evidence, that you provide such documentation 24-hours in advance of the hearing. You may submit your documentation in person or via email at CityClerk@palmspringsca.gov . Documentation submitted at the meeting will be accepted; however. if the Board does not think it has adequate time to re viev. your documentation, your appeal hearing may be continued to a future meeting. A bilingual and/or ASL interpreter will be made available, at no cost, upon request at least 48-hours in advance of the hearing. Please contact the Office of the City Clerk at (760) 323-8204 or via email at CityClerk@palmspringsca.go v. State of California ) County of Riverside ) ss. City of Palm Springs ) AFFIDAVIT OF MAILING I, Cassandra Edney, Deputy City Clerk of the City of Palm Springs, California, do hereby certify that the Notice of Hearing before the Administrative Appeals Board was emailed to the parties at the address above, on October I, 2024. I declare under penalty of perjury that the foregoing is true and correct. �e y Deputy City Clerk Item 7 - Page 19 ATTACHMENT 3  Item 7 - Page 20 Item 7 - Page 21 Item 7 - Page 22           City of Palm Springs            FINANCE DEPARTMENT               PO Box 2743       Palm Springs, CA 92263-2743            +1 (760) 323-8299           Like No Place Else! 09/18/2024 03:05PM Shahriar  003352-0015 MISCELLANEOUS   OTHER CHARGE CURRENT   SVC (OTHCHG)   2025    Item: OTHCHG    1 @ $195.0000   Balance unpaid: -$195.00     OTHER CHARGE CURRENT     SVC (OTHCHG)                $195.00                           --------------                                  $195.00  Subtotal                        $195.00  Total                           $195.00  EERP TYLER PAYMENTS CC          $195.00   ************5536 Ref=0e5c45e5-0ac0-4467-86a3-7aa24494d48f Auth=000775                          --------------  Change due                        $0.00  Paid by: MURPHY/LAUREN I        Thank you for your payment        City of Palm Springs COPY            DUPLICATE RECEIPT Item 7 - Page 23                     ATTACHMENT 4  Item 7 - Page 24 Item 7 - Page 25 Item 7 - Page 26 Item 7 - Page 27 Item 7 - Page 28 Item 7 - Page 29                     ATTACHMENT 5  Item 7 - Page 30 Cannabis Officer Event Report Date of Report Submission Wednesday, August 21, 2024 Time of Report Submission 1:22 PM Type of Report Search Warrant Date of the Event Wednesday, August 21, 2024 Property Address 2285 E Tachevah Dr 92262 Time arrived at the facility: 8:40 PM Please Select Items Inspected (select all that apply): Exterior Facility Requirements Interior Facility Requirements Please briefly summarize the inspection and detail any corrective action taken. On Monday, August 19, my Director Veronica Goedhart informed me that the California Department of Fish and Wildlife was serving a search warrant at the property located at 2285 E Tachevah Dr for the illegal cultivation and manufacturing of cannabis. Following this, I contacted Susan Sanchez from the California Department of Fish and Wildlife Law Enforcement Division, Cannabis Enforcement Program. I coordinated with her to include myself and Code Compliance Supervisor Mitch Nabhan to attend the strike team as they executed the search warrant. On Wednesday, August 21, Code Compliance Supervisor Mitch Nabhan and I arrived at the Bureau of Land Management to meet with the California Department of Fish and Wildlife for a briefing on the strike team’s operations plan. After the briefing, we followed the strike team to the property and remained on standby while the team apprehended two subjects involved in operating an adult-use cannabis business without the required permits. Once the strike team secured the property and granted us clearance to enter, Mitch and I conducted a thorough inspection of the premises. I took photographs to document our findings. Inside the house, we observed several rooms set up for cannabis cultivation, along with numerous apparent code violations. There were designated areas for cloned plants, a room for drying mature plants and packaging cannabis products. We also observed bags of clipped and trimmed marijuana in bundles of one-pound and half-pound bags. The exterior backyard contained mature marijuana plants rooted in the ground and a makeshift greenhouse along the side of the house which had immature plants being harvested. We also found CO2 tanks, materials for indoor hydroponic growing stations, and labeled packaging materials with printed labels that appeared to be used for product distribution. 1 Item 7 - Page 31 Code Compliance Officer submitting the form: Johnathan Ingram Code Compliance Officer Email: johnathan.ingram@palmspringsca.gov Number of Code Officers responding to the event: 2 Code Officer Name #1: Johnathan Ingram Code Officer Name #2: Mitch Nabhan 2 Item 7 - Page 32 Cannabis Drop-In Inspection Event Report Businesses Name New York Dill 0000 Business Type: Cultivation Manufacturing Distribution Time departed from the facility: 12:40 PM 3 Item 7 - Page 33