Loading...
HomeMy WebLinkAbout7/26/2017 - STAFF REPORTS - 3.A. EVALM$A iy a v � °4`'F°R"�P CITY COUNCIL STAFF REPORT DATE: July 26, 2017 LEGISLATION SUBJECT: AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REGARDING "MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" PURSUANT TO CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE (4/5T"s Vote Required) FROM: David H. Ready, City Manager BY: Edward Z. Kotkin, City Attorney SUMMARY The City is in the process of amending its cannabis ordinances, and expanding commercial cannabis activities, of both a present medical and future adult-use nature, in Palm Springs. Since the City began regulating medical cannabis business in 2014, it has had a limited number of Medical Cannabis Cooperatives and Collectives operating under a regulatory framework that is outdated and unduly restrictive. To a degree, this framework has limited their ability to generate sufficient revenues to meet the needs of qualified medical patients, ameliorate human suffering, promote health, safety and welfare, comply with all City regulations, and maintain appropriate security measures. Now that the City has updated Chapter 5.45 of the Palm Springs Municipal Code, staff presents the Council with the opportunity to remedy that situation on an almost immediate basis. RECOMMENDATION Waive the reading of the text in its entirety, read by title only, and adopt Ordinance No. , "AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REGARDING "MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" PURSUANT TO CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE" (4/5THS Vote Required) (See ATTACHMENT A) ITEM NO. ...3 - A . City Council Staff Report July 26, 2017-- Page 2 Interim Urgency Ordinance re Cannabis Collectives&Cooperatives Transitioning to Operation Under Chapter 5.45 STAFF ANALYSIS On July 19, 2017 the Council introduced amendments to Chapter 5.45 of the Palm Springs Municipal Code to regulate "Medical Cannabis Related Businesses and Activities." To raise revenue and facilitate the City's accommodation of the potential growth and evolution of the cannabis industry, the Council is considering a ballot measure that will create a tax on cannabis business activity. Chapter 5.45 has been amended so that no permits will issue pursuant to its provisions unless and until that tax is approved by the voters. The Council may wish to address the restrictions under which its permitted Medical Cannabis Cooperatives and Collectives have been operating for some time. With the evolution of State law since the adoption of Chapter 5.35, the original cannabis related ordinance that provides the regulatory environment pursuant to which the City's permitted Medical Cannabis Cooperatives and Collectives have operated to date, Chapter 5.35 has become outdated and unduly restrictive. According to representations by the owners/operators of the City's cooperatives/collectives to the Council ad hoc subcommittee for cannabis ordinances, the provisions of 5.35 are impacting the business of Palm Springs' cooperatives/collectives, quite literally preventing them from competing in the commercial medical cannabis marketplace up to their full potential to do so pursuant to California law. The proposed interim urgency ordinance changes that. If adopted, this interim urgency ordinance will: 1. Allow the City's cooperatives/collectives to secure a permit to operate under Chapter 5.45 and thereby significantly expand their sales of products in accord with applicable State law; 2. Provide for the continued payment by the cooperatives/collectives of the tax that they are currently paying by maintaining their 5.35 permits to the limited extent necessary to allow taxation under Chapter 3.35, the City's existing "Cannabis and Marijuana Tax," applicable to permittees under Chapter 5.35; and 3. Allow "early entry" into the regulatory environment of Chapter 5.45 for a limited time, until thirty days after the November 7, 2017 election. If the City's cannabis tax does not pass, the collectives/cooperatives will revert to their status as permittees under Section 5.35 until the Council decides what it wants to do in the long term with respect to the operational status of the cooperatives/collectives in an environment where the only cannabis tax available is that contained in Chapter 3.35, applicable only to "a cannabis or marijuana collective." ALTERNATIVES Reject this Interim Urgency Ordinance and continue the restrictions of Chapter 5.35 with respect to operations of the City's permitted collectives/cooperatives. 02 City Council Staff Report July 26, 2017 -- Page 3 Interim Urgency Ordinance re Cannabis Collectives &Cooperatives Transitioning to Operation Under Chapter 5.45 CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) DETERMINATION: 1 . The Ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This Ordinance authorizes additional cannabis business activity only by those lawfully engaged in medical cannabis activity in the City — a small and known number of operators. Authorizing new activities by these businesses cannot be anticipated to significantly change the impacts on the environment of their existing activities without speculation. Should any particular application involve such impacts, those impacts will be more easily analyzed in light of the specific facts of such an application. These medical and adult-use cannabis businesses will have impacts that are similar to the farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. Furthermore, the Ordinance contains requirements that prevent any potential impacts on the environment that may be unique to businesses involving adult-use or medical cannabis. For example, the Ordinance establishes prohibitions on nuisance odors, glare, excess energy usage, and establishes safety protections to prevent crime or deterioration of the business area, prohibition on usages of hazardous chemicals, and a prohibition on usage of excess water in violation of drought laws, etc. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not increase the number of businesses in the City, does not authorize construction or other related activities or any other activities that are not already permitted, except that the Ordinance allows the same activities but with a different material (adult-use or medical cannabis) that is being grown, sold, transported, or otherwise utilized in some form; there are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; 2. The Ordinance is also exempt under Section 15183 (projects consistent with a community plan, general plan, or zoning) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as farming, manufacture, and distribution of other agriculture products and/or products to be used as pharmaceuticals; 3. The Ordinance is also exempt under CEQA Guidelines Section 15301 (existing facilities) since permitted medical cannabis business under the Ordinance may locate in existing facilities, and any additions to structures would be expected to be also exempt under 15301; and 03 City Council Staff Report July 26, 2017 -- Page 4 Interim Urgency Ordinance re Cannabis Collectives & Cooperatives Transitioning to Operation Under Chapter 5.45 4. The Ordinance is exempt under Section 15303 (new construction or conversion of small structures). The businesses will be established in an urban area, and given the build out of the existing city, and sufficient existing leasable property, the amount of construction that would occur is minimal to non-existent, and any such construction would be less than the thresholds established in Section 15303. FISCAL IMPACT To the extent that the City's permitted collectives/cooperatives can achieve more profitable operation, the City's tax revenues, pending the adoption of a new cannabis tax by the voters, will grow by ten cents on every dollar of new profit. _sue r Edward Z. Kotkin, David H. Ready, Esq., Ph City Attorney City Manager Attachments: A. Interim Urgency Ordinance 04 ORDINANCE NO. AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REGARDING "MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" PURSUANT TO CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE City Attorney's Summary Another Ordinance to be adopted in conjunction with this Ordinance amends and updates Chapter 5.45 of the Palm Springs Municipal Code Regarding "Medical Cannabis Related Businesses and Activities" including dispensaries, transportation and distribution services, manufacturing, cultivation, and testing, to operate in the City subject to compliance with all applicable city and state laws. That Ordinance prohibits the issuance of permits for such activities unless and until a tax is approved by voters of the City on cannabis business activity. This Ordinance makes a temporary exception to that prohibition to allow existing lawful medical cannabis businesses in the City to be permitted under the Chapter 5.45 to do business in the City until the tax election is held. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and,pursuant to the authority granted the City by Sections 5 and 7 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations of the use of land and property within the City. B. Pursuant to Article XI, Section 7 of the California Constitution, the City of Palm Springs may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens. C. Sections 312 and 315 of the City Charter permit the City Council to adopt an ordinance on one reading and to make it immediately effective if declared to be necessary as an emergency measure for preserving the public peace, health or safety, and 182308.E 05 Ordinance No. Page 2 containing a statement of the reasons for its urgency, if passed by at least four affirmative votes. D. It is the purpose and intent of Chapter 5.45 of the Palm Springs Municipal Code to accommodate businesses allowing Medical Cannabis Related Businesses and Activities while protecting the health, safety, and general welfare of the residents and businesses within the incorporated areas of City of Palm Springs and comply with State law and Federal guidelines. E. It is the intent of the City Council to have a strong and effective regulatory and enforcement system with regard to Medical Cannabis Related Businesses and Activities that addresses threats to public safety, health and other law enforcement interests through robust controls and effective procedures. F. Chapter 5.45 of the Palm Springs Municipal Code is intended to establish criteria for issuing local permits pursuant to the MAUCRSA and to establish an effective regulatory and enforcement system consistent with the guidance issued by the United States Department of Justice. G. Existing medical cannabis businesses lawfully operating in the City pursuant to and consistent with Chapter 5.35 of the Palm Springs Municipal Code provide medical marijuana to qualified patients and their caregivers to ameliorate human suffering and to promote health, safety and welfare. Given that cannabis remains federally illegal, constitutes valuable and portable contraband, and such businesses are barred from banking systems by federal laws and regulations, such businesses have unique security risks and secondary effects on neighboring land uses. These require ample regulation and security measures for the protection of public health, safety and general welfare. Compliance with these regulations and such measures is costly. The City therefore has an interest in the ability of lawful medical cannabis businesses in the City to fund compliance with state and local regulations and to provide a secure and professional environment for those they serve. This requires the City to limit the number of permittees that the community can support, and to cooperate with those businesses to ensure their ability to generate sufficient revenues to meet the needs of qualified medical patients, comply with all City regulations, and maintain appropriate security measures. H. Neighboring communities have not restricted the number of permitted cannabis businesses and the proliferation of such businesses has undermined their financial wherewithal and pressured the ability of such businesses to comply with regulatory requirements and maintain a safe and lawful business environment. I. It is therefore imperative that the City allow its lawful cannabis businesses to engage in the activities authorized by Chapter 5.45 of the Palm Springs Municipal Code 2 182308.1 06 Ordinance No. Page 3 as soon as they may lawfully do so. Therefore the time required to allow two readings of this Ordinance and thirty (30) days for its effectiveness threatens the health, safety and welfare of Palm Springs and the City Council hereby finds this Ordinance to be an emergency measure for preserving the public peace, health or safety. NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. RECITALS INCORPORATED. The City Council hereby adopts the foregoing recitals and those in Ordinance No. _, which in relevant part amends and updates Chapter 5.45 of the Palm Springs Municipal Code, and incorporates all of said recitals here by this reference as findings in support of adoption of this Interim Urgency Ordinance. SECTION 2. LIMITED EXEMPTION FROM DEFERRED EFFECTIVENESS OF CHAPTER 5.55. Notwithstanding sections 5.45.055 of the Palm Springs Municipal Code as adopted by Ordinance No. _, any Applicant for a permit, license, or other authorization under Chapter 5.45 of the Palm Springs Municipal Code as adopted by that Ordinance who operated any permitted Medical Cannabis Cooperative and Collective in the City under the provisions of Chapters 5.35 of the Palm Springs Municipal Code may apply for, and City staff shall process and evaluate such application, and, if the other conditions of that Chapter 5.45 are satisfied, the City may issue such permit, license, or authorization for commercial cannabis activity authorized by that Chapter. Every word used in this Ordinance that is defined in Chapter 5.45 of the Palm Springs Municipal Code as adopted by Ordinance_shall have the meaning provided in that chapter unless the context plainly demonstrates another meaning was intended. SECTION 3. EXPIRATION. This Ordinance shall expire 30 days after the City Council certifies the results of the November 7, 2017 General Municipal Election unless the City Council acts by ordinance before that date to extend it. Upon expiration of this Ordinance, any permit, license, or authorization for commercial medical cannabis activity authorized by virtue of this Ordinance shall also expire, although the permittee, licensee or authorized person may continue to do business if in lawful compliance with another approval granted by the City under Chapters 5.35 of the Palm Springs Municipal Code. 3 07 182308.1 Ordinance No. Page 4 SECTION 4. SEVERABILITY. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. CONCURRENT LICENSING, CONTINUED LIMITED APPLICABILITY OF CHAPTER 3.35 re CANNABIS AND MARIJUANA TAX. The City requires the continued revenue generated by the City's permitted Medical Cannabis Cooperatives and Collectives pursuant to Chapter 3.35 of the Palm Springs Municipal Code during the effective date of this Ordinance. Accordingly, all permitted Medical Cannabis Cooperatives and Collectives shall remain permitted subject to Chapter 5.35, concurrent with any permit that they or any of them may secure pursuant to Chapter 5.45 during the effective period of this Interim Urgency Ordinance. However, Medical Cannabis Cooperatives and Collectives shall only remain concurrently permitted under 5.35 to the extent required to continue the uninterrupted applicability of Chapter 3.35 pending the expiration of this Ordinance. Furthermore, provisions of Chapter 5.35 inconsistent with operation pursuant to Chapter 5.45 are hereby suspended as to the City's permitted Medical Cannabis Cooperatives and Collectives during this Ordinance's period of effect. SECTION 6. REVERSION TO STATUS UNDER 5.35 IN THE EVENT OF FAILURE OF CANNABIS TAX. In the event that on November 7, 2017 the voters of the City for any reason fail to approve and adopt an "Ordinance of the City of Palm Springs Imposing a Tax on Cannabis Business Activity," to be codified in Chapter 3.42 of the Palm Springs Municipal Code, the City's permitted Medical Cannabis Cooperatives and Collectives shall revert to their permitted status under Chapter 5.35 and any permitted status achieved or secured pursuant to Chapter 5.45 shall expire on the expiration date of this Ordinance. SECTION 7. EXECUTION; CERTIFICATION. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect immediately. 4 08 182308.1 Ordinance No. Page 5 SECTION 8. CEQA. The City Council finds that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: 1. The Ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This Ordinance authorizes additional cannabis business activity only by those lawfully engaged in medical cannabis activity in the City — a small and known number of operators. Authorizing new activities by these businesses cannot be anticipated to significantly change the impacts on the environment of their existing activities without speculation. Should any particular application involve such impacts, those impacts will be more easily analyzed in light of the specific facts of such an application. These medical and adult-use cannabis businesses will have impacts that are similar to the farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. Furthermore, the Ordinance contains requirements that prevent any potential impacts on the environment that may be unique to businesses involving adult- use or medical cannabis. For example, the Ordinance establishes prohibitions on nuisance odors, glare, excess energy usage, and establishes safety protections to prevent crime or deterioration of the business area, prohibition on usages of hazardous chemicals, and a prohibition on usage of excess water in violation of drought laws, etc. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not increase the number of businesses in the City, does not authorize construction or other related activities or any other activities that are not already permitted, except that the Ordinance allows the same activities but with a different material (adult-use or medical cannabis) that is being grown, sold, transported, or otherwise utilized in some form;there are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; 2. The Ordinance is also exempt under Section 15183 (projects consistent with a community plan, general plan, or zoning) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as farming, manufacture, and distribution of other agriculture products and/or products to be used as pharmaceuticals; 5 182308.1 09 Ordinance No. Page 6 3. The Ordinance is also exempt under CEQA Guidelines Section 15301 (existing facilities) since permitted medical cannabis business under the Ordinance may locate in existing facilities,and any additions to structures would be expected to be also exempt under 15301; and 4. The Ordinance is exempt under Section 15303 (new construction or conversion of small structures). The businesses will be established in an urban area, and given the build out of the existing city, and sufficient existing leasable property, the amount of construction that would occur is minimal to non- existent,and any such construction would be less than the thresholds established in Section 15303. SECTION 8. FINDINGS. The adoption of this Interim Urgency Ordinance is necessary for the immediate protection of the public peace, health, and safety because of the City's interest in limiting the number of cannabis business permittees that the community can support, and to cooperate with those businesses to ensure their ability to generate sufficient revenues to meet their objectives. Failure to adopt this Interim Urgency Ordinance would reflect a lack of cooperation with the City's permitted Medical Cannabis Cooperatives and Collectives by ensuring their ability to generate sufficient revenues to meet the needs of qualified medical patients, ameliorate human suffering, promote health, safety and welfare, comply with all City regulations, and maintain appropriate security measures. In accordance with Section 312 of the Palm Springs City Charter, the City Council of the City of Palm Springs, California finds and determines that the adoption of this Interim Urgency Ordinance is necessary to ensure the immediate protection of the public peace, health, and safety, based upon these findings, and those reflected above in the true and correct recitals incorporated in this Interim Urgency Ordinance. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 261h DAY OF JULY, 2017. ROBERT MOON, MAYOR ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK 6 182308.1 `" Ordinance No. Page 7 CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby certify that Ordinance No. is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 2611, day of July, 2017 by the following vote: AYES: NOES: ABSENT: ABSTAIN: RECUSED: KATHLEEN D. HART, MMC INTERIM CITY CLERK 7 11 182308.1 Cindy Berardi From: Steven Lederman <stevenlederman@gmail.com> Sent: Wednesday,July 26, 2017 12:08 PM To: Robert Moon; David Ready, Edward Kotkin; CityClerk; Cindy Berardi; Christina Chartier Subject: Ordinance Proposals - Cannabis/Marijuana Attachments: PS City Council Ltr July 26 2017 Commercial Cannabis Ordinance.pdf Dear Palm Springs City Council, Mayor Moon, Mr. Ed Kotkin and staff, Attached you will find a 2 page letter regarding Palm Springs Cannabis/Marijuana proposed ordinances. There are several pages of attachments to support comments that I make. If any of you would like to discuss any aspect of this writing, please feel free to call. Thank you, Steven Steven Lederman Owner 1247 S. Gene Autry Trail i July 26,2017 To: Mayor Moon—City of Palm Springs via e-mail City Council Members—City of Palm Springs -via Christina.Chartier@palmspringsca.gov City Manager—City of Palm Springs via e-mail City Attorney- City of Palm Springs via e-mail City Clerk- City of Palm Springs via e-mail for Distribution to the City Council Members From: Steven Lederman Owner—1247 S Gene Autry Trail For the Owners of 1247 S Gene Autry Trail For Mail: 42222 Rancho Las Palmas#1772, Rancho Mirage, CA 92270 RE: ORDINANCE PROPOSALS FOR CITY COUNCIL VOTE JULY 26,2017 re: Cannabis Expansion Beyond What is Legal in the State of California To All: The City Council has expressed its' desires to maintain the First Class City Standards of the City of Palm Springs repeatedly and, in the same breath, has expressed the desire to have a First Class Cannabis/Marijuana program and,to that end,are generating Ordinances. Such a statement, First Class City/Marijuana Program cannot be true without also having in place proven First Class Accountability and Traceability of all aspects of the Cannabis/Marijuana City Program. This is missing. At this moment, in the City, if someone got sick from a cannabis product, how would you trace the source of the product/problem cannabis from the sick person back to its source? You have to be able to clearly identify and trace the movement of the product back to its source, as well as identify and locate all the participants and entities involved along the way. Without this,you cannot correct the issue. Accountability has nothing to do with Landlord/Tenant issues. Taking such a stance just manages confusion to cloud facts. For example, PS Organica or PSA Organica or by any other name,the 5`h MCCC Permittee,at this moment is being sued by their Landlord. One aspect of the lawsuit shows how difficult it is to find the people who are signing the lease and/or the names of the individuals,corporate entities who are intermingled in such a way that the tenant(entity and individuals) is not clear. Put this in the context of finding who made a product and who is responsible and you will see that you are allowing a system that makes that traceability next to impossible. 1 Any Quality Control/Standards Organization reviewing this entity and shown the confusion of the Corporate Names would not even allow tomatoes or strawberries to be grown or distributed. Yet,this appears through practice and incomplete regulation to be acceptable to the City of Palm Springs. Another Example: In 2014, 1 hired a Quality Control Firm to review our tenant's improvements. Off the blueprints,that Firm, NES Global,wrote a report explaining that the wall board in the grow rooms was of a type that would encourage mold and fungi growth. How did this happen? The Palm Springs Building Dept.approved those plans. Copy of that review is the last attachment. The City of Palm Springs' review process does not allow for accountability for this to be discovered. I am told that once a job is completed, other than the plans in the computer,the building permit and the job card, everything else is thrown away. How does that happen? The Certificate of Occupancy as a result of that 2014/2015 improvement lists the tenant as"Safe Access". This is not our tenant. This is not a legal entity. "Safe Access"was not even listed on the Building Permit Application. Therefore, again,where is the accountability—inside the walls of City Hall? In closing, I am going to attach a write-up of what"Clean Cannabis" is from an Oakland Medical Cannabis Company's website. I am no expert in this field, however, I do care and this write-up makes sense to me. If the Council Members do nothing else, please read this "Clean Cannabis"write-up. Until each Cannabis/Marijuana permittee in the City of Palm Springs can adhere to standards such as this (and verified by experts hired by the City in Quality Control regulation and cannabis)you have work to do to be able to stand behind the statement that Palm Springs is a First Class City with a First Class Cannabis/ Marijuana program. And, how will you monitor such a program? Who, inside the City of Palm Springs is going to be responsible? Have you thought this area through? I hope that the City Council will take this seriously. Please do not kid yourselves.You need real enforceable,accountability standards in place before you go ahead and release these Ordinances ahead of the State Regulations being in place. I can pretty much guarantee you that there is a reason that getting the State Regulations in place is taking so long. Accountability is key. My repeated request is that you NOT approve these Ordinances at this time, but rather you take the time to get it right. Sincere) 'li On Lederman Attachment: PSA Organica Lawsuit Case No. PSC 1770299 (111 page only) Purple Heart Patient Center—Clean Cannabis Program (4 pages) NES Letter July 13,2015 to Steven Lederman (4 pages) 2 I LEWIS BRISBOIS BISGAARD&SMITH LLP VINCENT R.WHITTAKER,SB#214007 2 E-Mail:Vincent.Whittaker@iewisbrisbois.com IA Highway 1 11,Ste. 200 IF Q L E D�3 Indian Wells,California 92210 SUP�o IFORNiATelephone: 760.771.6363 ftWuCWRocSuDH 4 Facsimile: 760,771,637 J� 17 2017 5 Joseph A.Gibbs,SB#82118 es3 LAW OFFICE OF JOSEPH A. GIBBS �/ LOPEZ 6 E-Mail:JGibbs@jagibbs.com 74-900 Highway 111,Ste.222 7 Indian Wells,CA 922I0 Telephone: 760.779.1790 8 Facsimile: 760.779-1780 Attorneys for JADE INVESTMENTS, LLC,and 9 ROXY INVESTMENT GROUP,INC. 10 SUPERIOR COURT OF THE STATE OF CALIFORNIA I COUNTY OF RIVERSIDE, RIVERSIDE JUDICIAL DISTRICT. 12 JADE INVESTMENTS, LLC,a California CASE NO. PSC_ limited liability company; ROXY 13 INVESTMENT GROUP, INC.,a California COMPLAINT FOR; corporation, (1) FRAUD AND DECEIT—PROMISE 14 Plaintiffs, MADE WITHOUT INTENTION TO PERFORM UNDER CIV.CODE.§ 15 vs. 1710(4); AND 16 MICHAEL KING an individual;JULIETTE (2) DECLARATORY RELIEF; IVIONTANTE�an individual; PS ORGANICA. Trial Date: None Set 17 COOPERATIVE, INC.,' suspended California corporation;VEDA P fNC., 18 a dissolved California corpora6oGREN CONNECT dba PALM SPRINGS 19 ORGANICA,a business entity form unknown; and DOES 1 through 100,inclusive, 20 D fen 21 22 23 24 25 26 27 Lwis 28 BRISSOIS BISGAARo 4827-9677•2288.1 &SAHUP "' a�"" COMPLAINT 712612017 Purple He;, t Patient Center:Clean Medichir 1*44� PU R_PLE HEART Patient Center Ir ti.e cu mmunity t enu(New'j ' can :;anrabis 415 4th Street, Oakland,CA 94607 Purple Heart Patient Center (510) 625-7877 (patients or general Clean Cannabis Program inquiries), 9 (510) 681-4873 How Do We Compare? (vendors) We may be the safest and healthiest dispensary in Oakland and the East Bay. We verify physician Few labs or dispensaries in the Bay Area test for all three criteria: bacteria, mold/yeast, recommendations and pesticides. Most dispensaries that require safety testing only test for mold/yeast and possibly pesticides, but Purple Heart Patient Center is one of the few dispensaries that tests for bacteria. Flash ar . { Not only do we require more tests before we deem a product safe for our patients, we also chose 14 LMWKArrtt the lab that would help us implement the most stringent safety guidelines. In the absence of industry wide standards, each dispensary decides for themselves which guidelines are appropriate • DAILY Discounts for for their patients. seniors and veterans AOAC and Purple Heart Patient Center guidelines: Purple Heart Patient Center uses the • Price Breaks on same acceptable limits for APC, Mold,Yeast, Coliform, E. coll, and Pseudomonas that the FDA Multiple Purchases requires for raw food. These are the only standards that ensure safety for patients with AIDS Leukemia or any other immune compromising disease. While most flowers pass our mold/yeast • Superior customer and pesticide test,we turn away medicine every week for failing our APC limits on aerobic service bacteria. Most, if not all, of the flowers rejected by Purple Heart Patient Center could easily pass safety-testing standards of other dispensaries. The flowers that fail our APC testing are • High quality extremely dangerous to patients with compromised immune systems. While mostly harmless to medication healthy individuals, if bacteria on those flowers are breathed in by those with weak immune systems, the elderly, or those who have been hospitalized for long periods of time it could cause • Blocks from the patient to develop an infection. Those with cystic fibrosis,AIDS those who have undergone BART/AMTRAK chemotherapy, or are otherwise immunocompromised are at risk for developing bacterial infections. The bacteria can be Inhaled and infections can become especially deadly when present • Handicap accessible in the lungs or bloodstream. • Patient-Vendors American Herbal Products Association Guidelines: Some labs and dispensaries use the always welcome AHPA guidelines. These guidelines allow 100,000 CFU/G of Mold —this is ten times more mold than we allow.The AHPA guidelines allow 10,000,000 CFU/G of Aerobic Bacteria, 100 times more bacteria than we allow. Even if medicine passes the AHPA guidelines, it is still not clean enough for use by patients with AIDS, Leukemia, or any other immune compromising disease. Continue reading for details of all our testing protocols: All medicine at Purple Heart Patient Center are sent out to a third party lab and have passed the following tests: Microbiological Testing: -Bacterial testing (Aerobic Plate Count,APC)-This is a general test to survey the general numbers of bacteria present on a given sample. Aerobic bacteria are a general class of organisms that use atmospheric oxygen and are considered ubiquitous contaminants. In most cases,this is the only bacteriological test needed. Under normal hygienic conditions low colony numbers are http://www.purpleheartpe.org/CleanCannahis.html 1/4 7/26/2017 Purple Heart Patient Center:Clean Medicine recorded. In the event of a positive(large numbers of bacterial colonies being present)test, subsequent specific tests for collforms, and E. coli would be recommended. Keeping our cannabis free of bacteria is extremely important,as inhaling these bacterium is dangerous for immunocompromised patients. •Coliforms- Generally speaking, the spore-forming bacteria fall into the coliform bacteria group. These spore-forming bacteria are used as indicator organisms for poor hygiene conditions as they are commonly found in the gut of animals. •E. Coll-This test, specific for Escherichia soli, is only performed following high APC counts and is indicative of human and animal waste. -Pseudomonas-This test Is only performed following high APC counts. Pseudomonas is a highly dangerous type of antibiotic resistant bacteria. •Yeast/Mold -This is a very general test for the presence of a number of yeast and fungal species. This test provides a medium specific for variety yeast and fungal species and serves as an indicator based on total number growing colonies recorded. Under normal hygienic conditions low colony numbers are recorded. Since fungal species are somewhat more common on Cannabis flowers and some of them can be pathogenic to humans causing aspergillosis and other lung diseases, this test provides an important safeguard prior to patient consumption. Acceptable Limits: All medicine must meet the acceptable standards set by the AOAC(International Association of Analytical Communities)for bacteria, yeast and mold. The FDA also uses the AOAC standards. Screening Acceptable Limit Aerobic Bacteria (APC) <100,000 Mold and Yeast Count <10 Coliform Count <100 E. Coli Count <10 Pseudomonas Count 0 Chemical Residue(Pesticide)Testing: Insects and other pests are common in both indoor and outdoor cannabis cultivations. If left unchecked,these pests can infest and destroy entire crops, sometimes in a matter of days. As a result, many cultivators use toxic chemical pesticides to avoid potential crop loss. Unfortunately, most of these cultivators are either unaware of, or choose to ignore,the potential environmental and health consequences of their actions. Chemical pesticides are, by design, highly toxic and persistent. Many kill on contact and remain active for weeks, months, and even years. Human exposure to pesticides may lead to acute health problems, such as abdominal pain, dizziness, headaches, nausea,vomiting, as well as skin and eye problems. Many serious diseases, such as cancer, reproductive dysfunction, and asthma have been linked to pesticide exposure. Patients deserve to know whether or not the alternative medicines they choose contain harmful pesticide residues. It is bad enough that pesticides are used on many, if not most, of the foods sold at our local grocery stores. Our medicines should be clean! We currently test for some of the most commonly available pesticides, including pyrethrins and pyrethroids. These are the products that are found on the shelves of your local home and garden store. We also test for some less common but highly toxic pesticides, such as Avid. We use a combination of enzyme-linked immuno assays and gas chromatography to screen samples for pesticide residues. All samples are first subjected to three independent enzyme-linked immunosorbent assays to verify the absence or presence of pesticide classes.The three assays screen for organophosphate and carbamate pesticides, pyrethroid pesticides,and avermectins (Avid). http:Itwww.purpleheartpc.org/CleanCannabis.htmi 2/4 7126/2017 Purple Heart Patient Center:Clean Medicine Samples are then analyzed by gas chromatography/ mass spectrometry(GC/MS)to verify results and in some cases identify the actual pesticide residue detected by the immuno assays. Our GC/MS is calibrated regularly using known standards to ensure the accuracy of our test results. Residual solvent Testing We test all of our concentrates (Oils, Hash, Kief,Vapor Products, etc.)to ensure they do not contain trace amounts of residual solvents. Solvents like butane, alcohol, and hexane are used to extract the active ingredients of cannabis to make wax and oils. These solvents must completely evaporate from the concentrate before patients can safely use them. Every concentrate at PHPC has been sent to a third party lab to be tested for trace amounts of all flammable chemicals such as butane, alcohol, hexane, naphtha and toluene. PHPC's acceptable limit for residual solvents is 400 ppm. Unfortunately, there exists no data looking at the effects (positive or negative) of inhalation of various flammable solvents by smoking cannabis. The CDC sets a limit of 800 ppm for a safe exposure limit of these chemicals for an 8-hour period. Until toxicologists or medical doctors conduct research on safe limits on inhaling residual solvents in concentrates, we have taken the conservative approach with our detection limit. Please, consult with your doctor before using concentrates. Glossary of Microbiological Terms: CFU - Colony forming units, a measure of the viable bacterial or fungal cells found per gram of sample. AOAC guidelines dictate this number must fall below a certain threshold to be safe for consumption. APC -Aerobic plate count bacteria, an all-encompassing term for bacteria that require oxygen to survive.This test indicates the CFU's of oxygen consuming bacteria and is used as a screening measure for the general cleanliness of the sample. High CFU's(>100,000)found on the APC plate will trigger a Coliform/E. coli test,as it is likely that when there is a high bacterial load, some of the bacteria present may be pathogenic to humans. Yeast/Mold -A test to indicate the overall quality of the sample and the fungal load present on the sample. Common forms affecting Cannabis include Botrytis(commonly known as bud rot) and powdery mildew. More than 10 CFU's of either mold or yeast will cause the sample to fail this test. Total Coliforms -Total Coliforms include species of bacteria that may inhabit the intestines of warm-blooded animals or occur naturally in soil,vegetation, and water. In water supplies,these bacteria are often associated with disease outbreaks. Although they are not typically pathogenic themselves, their presence indicates the possible presence of pathogens. More than 100 CFU's will cause the sample to fail this test. E.Coll - Escherichia E. Coll is a coliform bacterium and is considered an indicator organism of fecal contamination. Some strains are pathogenic to humans. More than 10 CFU's will cause the sample to fail this test. Pseudomonas aeruginosa: This is a robust bacterium that can survive in a variety of environments, such as soil, water and on vegetation. While healthy individuals rarely have problems with Pseudomonas, it is much more dangerous to certain populations, including those who have weak immune systems, the elderly, and those who have been hospitalized for long periods of time. Those with cystic fibrosis,AIDS those who have undergone chemotherapy, or are otherwise immunocompromised are at risk for developing bacterial infections due to Pseudomonas aeruginosa. This bacteria can be inhaled and infections can become especially deadly when present in the lungs or bloodstream. http://www.purpleheartpe.org/CleanCannabis.htmi 3/4 7/26/2017 Purple Heart Patient Center:Clean Medicine © PURPLE HEART PATIENT CENTER http://www.purpleheartpc.org/CleanCannabis.html 4/4 CONFIDENTIAL 1141 Sibley Street, Folsom,CA 95630 (916)353-2360 Fax(916)353-2375(800)NES-ADVISE www.nescilobal.net x+.ranr�rloaeR�rr July 13, 2015 Mr. Steven Lederman VIA EMAIL:STEVEN.LEDERMAN @GMAIL.COM Property Owner 42-222 Rancho Las Palmas#1772 Rancho Mirage, CA 92264 SUBJECT: PROJECT A,PART 1—FILE/DOCUMENT/PROPERTY REVIEW OF FACILITY LOCATED AT 1247.SOUTH GENE AUTRY TRAIL—PALM SPRINGS,CA NES PROJECT NUMBER 764.IH2118.00 Dear Mr. Lederman: Network Environmental Systems, Inc., (NES) is in the process of conducting the review of existing site figures, permits, and other documentation related to your property at 1247 S. Gene Autry Trail in Palm Springs, California. While we have only just begun our review, a fact has been recognized that requires more immediate response in order to protect your facility from potential moisture issues. Specifically, under the "Scope of Work" specified on Sheet C/S.1 from Gioffi Architects, it is stated that: "All new and amended construction will be steel studs and 318" type x gypsum wallboard." The building drawings also specify that interior walls are required to be built to separate grow areas and the office / sales area. Thus, it can be assumed that the design includes demising waits constructed with steel studs and gypsum wallboard present within the grow areas of the facility. A specification sheet for "Sheetrock Gypsum Panels," published by United States Gypsum Corporation(see attached), specifies, under Item 2 in the Limitiations Section, that for the use of this type of wallboard "Avoid exposure to excessive, repetitive or continuous moisture before, during, and after installation." With respect to indoor horticulture operations it is our understanding that indoor relative humidity levels typically range between 50 — 70% in grow areas (AIHA Guideline 13 — 2010: Marijuana Grow Operations — Recognition, Assessment & Remediation Guidance). Without proper moisture controls and precautions, it is possible for the relative humidity to exceed this range, CONFIDENTIAL The definition of "excessive moisture" varies depending on the organization However, many organizations agree that sustained relative humidity at or above 60% can result in mold growth on the surface of the standard gypsum wallboard. The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), in their Standard 62.1-2013, recommends maintaining humidity levels below 65% to minimize problems associated with mold growth. OSHA maintains that, "relative humidity be maintained below 70% (25-60% if possible)" to reduce moisture and associated fungal problems (OSHA 3304-04N 2006: Preventing Mold-Related Problems in the Indoor Workplace). The American Industrial Hygiene Association (AIHA) posts their recommendation that, "dehumidifiers be used to maintain humidity levels below 60%"on their website. Based on the presence of water and the anticipated relative humidity levels inside the grow areas of the building (e.g. 50 — 70%), the potential exists that mold growth will develop on standard gypsum wallboard surfaces within the facility's grow areas. If elevated humidity persists, it is possible that moisture will be wicked into the gypsum wallboard resulting in mold proliferation throughout the area, damage to the constructed walls, impacts to indoor air quality, and potential mold contamination of the building ventilation system, As such, it is recommended that the construction specification for wall coverings in designated grow areas of the building be revised to include moisture and mold resistent wallboard materials (e.g., Georga-Pacific DensGlass® [fiberglass matte gypsum wallboard material], Ameriform GeoBoard (cementitious based interior wallboard material]). Moisture-resistant coatings are not recommended for this application as their effectiveness in this type of application is not known at this time. If you have any questions or would like additional information, please do not hesitate to call us at (916) 353-2360. �,� ,h� OF Sincerely, •� '••� .atoaria•.,,,.�i3' Brent Weisbrod, CIH, CSP, CAC •as �,'rAty ,pow! *00 Senior Industrial Hygienist •`•,�'rl ty Attachment: USG Spec Sheet—Type X Gypsum Wallboard Document/File Review 2 ; NES,Inc. Steven Lederman NES Pt15'ect N 764.IH21/8.00 1247 S. Gene Autry Trail -Palm Springs,CA Submittal Sheet Sheetroek®t)9250 Gypsum Panels ...................._....._........._._........................................................................................................................._......................................._.................... -6_1 regular and �w Firecode4L Cores Duality interior wall and ceiling panels at low cast — Fire-resistant dry construction — Quick Installation and decoration — Score and snap easily — Resist cracking and warping — Specialized types for all systems Description SHEemoc Ks brand gypsum panels are factory-fabricated,composed of a fire-resistant gypsum=a encased In heavy natural-finish face paper and strong liner paper on the back side.The face paper is folded arcund the long edges to reinforce and protect the core,and the ends are square-cut and finished smooth.Long edges of panels are tapered,allowing joints to be reinforced and concealed with a USG joint treatment system. 8HEErmcK gypsum panels are available with three core types for standard construction uses. Regular core With a regular core,available in three thkdmesses for specific purposes. tl8^Panels Recommended for single-layer application in residential construction. W Pareu Lightweight,applied principally In the double-wall system over wood framing,and in repair and remodeling. 1/4'Panels Lightweight,low-cost,utility gypsum panels,used as base layer for knproNng sound control in double- layer steel and wood-stud partitions,and for use over old wall and caging surfaces.Also for forming curved surfaces with short radii. Faus W core sw Type x Gypsum Panels Provide additional fire resistance over regular panels. Fuuu m C Core yr and WType c Gypsum Pands Specially formulated mineral core provides fire resistance superior to that offered by FrEmOE Core gypsum panels. Limitations 1.Avoid exposure to sustained temperatures exceeding 125 T(52'Q. 2.Avoid exposure to excessive;repetitive or continuous moistura before,during and after knstallatlon.Eliminate sources of moisture immediately. 3.Non-loadbearing: 4.Floe-resistance ratings achieved when assembled in accordance with UL designs. Finishing and For high-quality finishing results,USG recommends the following products Decorating —SHEEraocO ready-mixed joint compounds —SHEEmorKO setting-type joint compounds —SHmwac®joint tape —SHEEmocx®First Coat primer —SHEEmcck° paper-faced metal bead and trim —SHEErnovsTuFF-Hioe'"primer-surfacer Painting products and systems should be used which comply with recommendations and requirements in Appendixes of ASTM C840.For priming and decorating with paint texture or wall covering,follow manufacturer's directions for materials used. All surfaces,including applied joint compound,must be thoroughly dry,dust-free,and not glossy.Prime with SHEEmocK First Coat primer or%ft an undiluted,interior latex flat paint with high-solids content Allow to dry before decorating. To improve fastener concealment,where gypsum panel walls and ceilings will be subjected to severe artificial or natural side lighting and be decorated with a gloss paint(egg shell,semi-gloss or gloss),the gypsum panel 9M ............................................................................................................................................—.........................__.............................................................................................. surface should be skim coated with joint compound.This equalizes sucBon and texture differences between the drywall face paper and the finished joint compound before painting.As an alternative to skim coating,or when a Level 5 finish is required,use SNEFmocx TuFF NmE"primer-surfacer. Product Data size:114",3/80,1/2"and 5/8"x 48"wide;B'-14'long.1/2"and 5/B"also available in 54"wide. weight 1/4"—1.2 Ibs/st;3/8"—1.4 Ibs/sf;1/2"-1.6 Ibs/sf;5/8"-2.2 Ibs/sf. Thermal Resistance"R":For 1/2"thickness:0,45°F x ft.'x 11/Btu(0.08 K x W/M. Thermal Coefficient of Expansion:Unrestrained:40.100"F(4.38°C): 9.0 x 104 in.AnJ°F (16.2 x 104 mm/mm/QQ(16.2 pm/m/°C), Hygrometric Coefficient of Expausiom.Unrestrained:5-90%r.h. 7.2 x 10 in./mA r.h. (7.2 x 10-6 mm/mm/%r.h.)(7.2 pm/m/eh ch.). Packaging:2 panels per bundle. Test Data surface Burning characteristics:Flame spread 15,smoke developed 0. Maximum Frame Spacing DirectApplicatien Panel thicknessnl Location Applicationmetimdn+ Max.frame spacing ex. Drywall Construction In, Imin I In. nun Simple-layer 316 9,5 celiags PKWOW 16 406 ......................................._.4.................. pNa9efG 16 06 112 12.7 ceilings perpendicular 2400 610 pemdarb i6 406 sidnraih p"!!k p!rpendkular 24 610 ...... ................................ parallaf" 16 406 518 15.9 ceilings perpendicular 24 610 ..................._......................................,........_............. 5klewalis paralletaperpendladar 24 610 DoJee.tayer 318 915 ceilingsm perpendicular 16 406 ...................................................._.... 244.............. 6....' 16............. sidevalls pepandlcularapatalhl 610 112 and 5y9 12.7 and 15,9 ceilings perpendicular a parallel 24M 610 ............................................................................................... sidewalk popadicular 244 610 (1154?'IhiclmCys IF rKomnxmdW to the finest siogle•layer emsbuctlos,providing incressedresishnce to fire and transmission G sound:I/C for file-layer application in now residential wnsmuctiorl aM reoodeling;and 3/6'fo ropak and ramidg g otsr O VIV svttaces.fO Wrp edge p4alimrdalhe N hentg, P Nal recommended below t0eated spaces,(4)Not rommmwdtd if nata besed texturing miledel is to be applied.la hlex spaang l6'dwbto•.bwed texbrdng Were Is tube 110060.M p Ire Sleapa•interior ceiling bond III used N place a gypatm pmah,max.spacing h 24"ox kr i epen&mWr aoplbatim vbtli vre'ged unsuppatad Insuhaon wt emceeding 1.3 psi„16'a6 veVt weight DI Waappnled insuhbon tut eaxednp 28 cad.f>1 ABtOsiue mast be wed 10 4lnpnale 3/6'hood br doude•Iryer udlnps.I6j rJax apaGing 16^o.c.8 like 2ting tapered. Compliance Meets ASTM C1396. Submittal Job Name Approvals: Contractor oaf Trademarks Note Notice Our liability is expressly Ranked Safety Flyd The following trademarks Products described here we shall not be liable for to replacement of defective Fallow good safety and used herein are ovmed may riot be available in all inddertal and oomsequential goods.Any claim shall be industrial hygleie practices by Untied States Gypsum geographic markets.consult damages,directly or indirectly deemed waived untess made during handling and installation Company or a related your U.S.Gypsum Company sustained.nor for any lass in writing to us within parry of all products company:Dunnseo,(SsY sales of tee or representative caused by application of these (30)days from data h was or and systems.Take necessary Sw,FnEcom,S4E mocx, for information. goods not In accordance with reason*should have been precautions and wear the Tug Noe. Current printed Instructions or discinefed, appropriate pan.=]protective for other man the Intended use. equipment as needed.Read material safety data sheets and related literature on products before specification and/or installation. 94 Manufactured by SOD US114YOU(574496% Win 4731W1-o7 United States Gypsum Company M.com 02per,Wm Stu Gypsm company 550 West Adams street Printed in USA Chicago,IL 60661 RECEIVED 7 JF Pf,LM SPiR IM 2111 OCT -2 AM 8: 51 STATE OF CALIFORNIA-THE RESOURCES AGENCY v- rICE Or -,I DEPARTMENT OF FISHAND GAME ENVIRONMENTAL FILING FEE CASH RECEIPT Receipt#: 17-267498 State Clearinghouse#(if applicable): Lead Agency: CITY OF PALM SPRINGS Date: 0 812 1/2 01 7 CountyAgency ofFihng: RIVERSIDE /axwmnNn. E-201701066 Project Title: ORDINANCE NO 1933- MEDICAL CANNABIS&ADULT-USE CANNABIS BUSINESS REGULATIONS Project ApphoantNam: CITY OF PALM SPRINGS Pi..mnnbm (760)323-8211 Project Applicant Address: 3200 E. TAHQUITZ CANYON WAY, PALM SPRINGS, CA 92262 Project Appllccmc LOCAL PUBLIC AGENCY CHECKAPPLLCABLE PEES. ❑Environmemal Impact Report Q hegaitve Declaratlm QApplication Fee WaterDivetsion(State WaterResoarcesControl Board Only) ❑Project Subject to Certified RegulwotyPrograms ❑CouriNA&nh istrationFee $0.00 ❑Project that is exempt from fees(DFG No Elect Determination (FormAttcehed).) ®Project ilia isexemptfinmfees(.Notice ofExemption) Total Received $50.00 Signature and title ofperson receiving payment Deputy Notes: • Print Form Notice of Exemption Appendix E To: Office of Planning and Research From: (Public Agency): City of Palm Springs P.O. Box 3044, Room 113 3200 E. Tahquitz Canyon Way Sacramento, CA 95812-3044 County Clerk Palm Springs, CA 92262 County of: Riverside (Address) PO Box 751 Riverside, CA 92502-0751 Project Title: Ordinance No. 1933 - Medical Cannabis and Adult-Use Cannabis Business Regulations Project Applicant: City of Palm Springs Project Location -Specific: The ordinance applies to all cannabis-related businesses in commercial and industrial zoning districts citywide. Project Location -City: Palm Springs Project Location-County: Riverside Description of Nature, Purpose and Beneficiaries of Project: The ordinance makes minor revisions to existing regulations for medical cannabis businesses and establishes regulations for adult-use cannabis businesses. The ordinance implements the provisions of the Medical Cannabis Regulation and Safety Act(MCRSA)and the Adult-Use of Marijuana Act(AUMA). Name of Public Agency Approving Project: City of Palm Springs Name of Person or Agency Carrying Out Project: City of Palm Springs Exempt Status: (check one): ❑ Ministerial (Sec. 21080(b)(1); 15268); ❑ Declared Emergency (Sec. 21080(b)(3); 15269(a)); ❑ Emergency Project(Sec. 21080(b)(4); 15269(b)(c)); ❑ Categorical Exemption. State type and section number: El Statutory Exemptions. State code number: Section 15061(b)(3) Reasons why project is exempt: The ordinance is exempt under Section 15061(b)(3)of the CEQA Guidelines because it can be seen with certainty that there is no possiblity that the activity in question may have a significant effect on the environment. The ordinance prohibits activities that have may have the potential to cause impact,and does not authorize construction or other activities which are not already permitted. Lead Agency Edward Kotkin Contact Person: Area Code/Telephone/Extension: 760-323-8211 If filed by applicant: 1. Attach certif' ment gAexemption finding. 2. Has ice9 een filed by the public agency approving the project? ❑Yes ❑ No Signature: r� ate: 08/17/17 Title: City Attorney O Signed by Lead Agency❑ Signed by Applicant FILED / POSTE D Authority cited:Sections 21083 and 21110. Public Resources Code. Date County of Riverside Reference:Sections 21108,21152,and 21152.1,Public Resources Code. peter Aldana Assessor-County Clerk-Recorder E-201701056 08/2211q/200177 008:g22 AM Fee: $ 0.00 Pag J.ICf fI{�/ru�1'1y��L''0�■17�L{Illiii �}y■■ Removed: I� ITllltl ■I 1 ��1�� 'I IIItY The Desert Sun 750 N Gene Autry Trail Certificate of Publication Palm Springs, CA 92262 RECEIVED 760-778-4578/Fax 760-778-4731 1 Y O F t+L N State of California ss: 2111 AUG 15 AM 9' 08 County of Riverside Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 92263 Order# 0002324938 1 am over the age of 18 years old, a citizen of the United States and not a party to, or have interest in this matter. I hereby certify that the attached advertisement appeared in said newspaper(set in type not smaller than non panel) in each and entire issue of said newspaper and not in any supplement thereof on the following dates,to wit: Newspaper. The Desert Sun 8/5/2017 NO 1108: ORDINANCE No.1935 . 1 acknowledge that I am a principal clerk of the AH INTERIM URGENCY ORDINANCE of THE CITY OF PALM SPRINGS, of The Desert Sun, Tinted and CALIFORNIA.REGARDING-MEDICAL CANNABIS RELATED BUSINESSES AND AC- printerP TIVITIES' PURSUANT TO CHAPTER SAS OF THE.PALM SPRINGS MUNICIPAL Published weekly in the City of Palm Springs, CODE To BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND P Y YCOLLECTIVES PERMITTED PURSUANT To CHAPTER S.35 OF THE CODE County of Riverside, State of California.The CNyateumeYasmnmary amends 1 P P ;d tupe1dams CnapCete s.as mt o e Pdalm conjunction nju s municipaal th Codis eRe 'IHed- rdlnenI Desert Sun was adjudicated a Newspaper er of icaiCannabis Relatee sulnasaM+Aels"mtludmg diwensarlex o-+n:por" general circulation on March 24, 1988 by the ration and distribution servkes manufacturing, cu/dvation,and tesbng ro op Superior Court of the County of Riverside, orate in the City su6/ect ro co pliance vdth all appplicable c ty antl state laws That Ordinance prohlbNs the issuance of hermits for such activities unless and State of California Case No. 191236. undl a tax is approved by voters of the City on carmabis bus ness adiv ty.,Thng is Ordinance makes a temporary exception to that prohibrt �fo�adllror . lawWl medics/cannabis businesses m the City ro be Penn ter:5:45 to do business in the City anti!the tax election[s held CERTIFICATION STATEOFCALIFORNIA 1 I declare under penalty of perjury that the COUNTY OF RIVERSIDE ) 11. P Y P l Y Cr Y OF PALM SPRINGS) foregoing IS true and correct. Executed on 1,KATHLEEN D.HART,Interim City Clerk of the City of Palm Springs,her cer. this 5th da f `AU ST, 2017 in Palm tHy that Urgency Ordinance No.1935 is a full,true and correct copy.• was adopted at an ad1burned uiar and special meeting of the Palm Springs City Springs, C rfornia. council on the 26th day of lu ,2017 by the following vote: AYES: Coumilmembers Km,Mills,Roberts,.Mayor Pro Tem Foat,and Mayor Moon NOES: None ABSENT: None ABSTAIN: None - RECUSED: None KATNLEEN D.HART,M C Published:8MI2017 INTERIM CITY CLERK / I eclarant CITY OF PALM SPRINGS PUBLIC NOTIFICATION 0 Date: August 7, 2017 Subject: Ordinance 1935 AFFIDAVIT OF PUBLICATION I, Cynthia A. Berardi, Interim Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice was published in the Desert Sun on August 5, 2017. 1 declare under penalty of perjury that the foregoing is true and correct. Cyn� Berardi, CMC Interim Chief Deputy City Clerk AFFIDAVIT OF POSTING I, Cynthia A. Berardi, Interim Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Notice was posted at City Hall, 3200 E. Tahquitz Canyon Drive, on the exterior legal notice posting board, and in the Office of the City Clerk on or before August 9, 2017. 1 declare undpr penalty of perjury that the foregoing is true and correct. Cynthia A. Berardi, CMC Interim Chief Deputy City Clerk ORDINANCE NO. 1935 AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REGARDING "MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" PURSUANT TO CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE CityAttorney's Summary Another Ordinance to be adopted in conjunction with this Ordinance amends and updates Chapter 5.45 of the Palm Springs Municipal Code Regarding "Medical Cannabis Related Businesses and Activities"including dispensaries, transportation and distribution services, manufacturing, cultivation, and testing, to operate in the City subject to compliance with all applicable city and state laws. That Ordinance prohibits the issuance of permits for such activities unless and until a tax is approved by voters of the City on cannabis business activity. This Ordinance makes a temporary exception to that prohibition to allow existing lawful medical cannabis businesses in the City to be permitted under the Chapter 5.45 to do business in the City until the tax election is held. CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. 1935 is a full, true and correct copy, and was adopted at an adjourned regular and special meeting of the Palm Springs City Council on the 26'h day of July, 2017 by the following vote: AYES: Councilmembers Kors, Mills, Roberts, Mayor Pro Tern Foat, and Mayor Moon NOES: None ABSENT: None ABSTAIN: None RECUSED: None II KATHLEEN D. HART, MMC INTERIM CITY CLERK ORDINANCE NO. 1935 AN INTERIM URGENCY ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, REGARDING "MEDICAL CANNABIS RELATED BUSINESSES AND ACTIVITIES" PURSUANT TO CHAPTER 5.45 OF THE PALM SPRINGS MUNICIPAL CODE TO BE UNDERTAKEN BY MEDICAL CANNABIS COOPERATIVES AND COLLECTIVES PERMITTED PURSUANT TO CHAPTER 5.35 OF THE CODE CityAttorney's Summary Another Ordinance to be adopted in conjunction with this Ordinance amends and updates Chapter 5.45 of the Palm Springs Municipal Code Regarding "Medical Cannabis Related Businesses and Activities"including dispensaries, transportation and distribution services, manufacturing, cultivation, and testing, to operate in the City subject to compliance with all applicable city and state laws. That Ordinance prohibits the issuance of permits for such activities unless and until a tax is approved by voters of the City on cannabis business activity. This Ordinance makes a temporary exception to that prohibition to allow existing lawful medical cannabis businesses in the City to be permitted under the Chapter 5.45 to do business in the City until the tax election is held. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS FINDS: A. The City of Palm Springs is a charter city organized pursuant to Article XI of the California Constitution and, pursuant to the authority granted the City by Sections 5 and 7 of Article XI, the City has the power to make and enforce within its limits all ordinances and regulations in respect to municipal affairs not in conflict with general laws and its own charter. Such police powers include without limitation the ability to adopt comprehensive zoning regulations and regulations of the use of land and property within the City. B. Pursuant to Article XI, Section 7 of the California Constitution, the City of Palm Springs may adopt and enforce ordinances and regulations not in conflict with general laws to protect and promote the public health, safety, and welfare of its citizens. C. Sections 312 and 315 of the City Charter permit the City Council to adopt an ordinance on one reading and to make it immediately effective if declared to be necessary as an emergency measure for preserving the public peace, health or safety, and containing a statement of the reasons for its urgency, if passed by at least four affirmative votes. Ordinance No. 1935 Page 2 D. It is the purpose and intent of Chapter 5.45 of the Palm Springs Municipal Code to accommodate businesses allowing Medical Cannabis Related Businesses and Activities while protecting the health, safety, and general welfare of the residents and businesses within the incorporated areas of City of Palm Springs and comply with State law and Federal guidelines. E. It is the intent of the City Council to have a strong and effective regulatory and enforcement system with regard to Medical Cannabis Related Businesses and Activities that addresses threats to public safety, health and other law enforcement interests through robust controls and effective procedures. F. Chapter 5.45 of the Palm Springs Municipal Code is intended to establish criteria for issuing local permits pursuant to the MAUCRSA and to establish an effective regulatory and enforcement system consistent with the guidance issued by the United States Department of Justice. G. Existing medical cannabis businesses lawfully operating in the City pursuant to and consistent with Chapter 5.35 of the Palm Springs Municipal Code provide medical marijuana to qualified patients and their caregivers to ameliorate human suffering and to promote health, safety and welfare. Given that cannabis remains federally illegal, constitutes valuable and portable contraband, and such businesses are barred from banking systems by federal laws and regulations, such businesses have unique security risks and secondary effects on neighboring land uses. These require ample regulation and security measures for the protection of public health, safety and general welfare. Compliance with these regulations and such measures is costly. The City therefore has an interest in the ability of lawful medical cannabis businesses in the City to fund compliance with state and local regulations and to provide a secure and professional environment for those they serve. This requires the City to limit the number of permittees that the community can support, and to cooperate with those businesses to ensure their ability to generate sufficient revenues to meet the needs of qualified medical patients, comply with all City regulations, and maintain appropriate security measures. H. Neighboring communities have not restricted the number of permitted cannabis businesses and the proliferation of such businesses has undermined their financial wherewithal and pressured the ability of such businesses to comply with regulatory requirements and maintain a safe and lawful business environment. I. It is therefore imperative that the City allow its lawful cannabis businesses to engage in the activities authorized by Chapter 5.45 of the Palm Springs Municipal Code as soon as they may lawfully do so. Therefore the time required to allow two readings of this Ordinance and thirty (30) days for its effectiveness threatens the health, safety and welfare of Palm Springs and the City Council hereby finds this Ordinance to be an emergency measure for preserving the public peace, health or safety. Ordinance No. 1935 Page 3 NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. RECITALS INCORPORATED. The City Council hereby adopts the foregoing recitals and those in Ordinance No. 1933, which in relevant part amends and updates Chapter 5.45 of the Palm Springs Municipal Code, and incorporates all of said recitals here by this reference as findings in support of adoption of this Interim Urgency Ordinance. SECTION 2. LIMITED EXEMPTION FROM DEFERRED EFFECTIVENESS OF CHAPTER 5.55. Notwithstanding sections 5.45.055 of the Palm Springs Municipal Code as adopted by Ordinance No. 1933, any Applicant for a permit, license, or other authorization under Chapter 5.45 of the Palm Springs Municipal Code as adopted by that Ordinance who operated any permitted Medical Cannabis Cooperative and Collective in the City under the provisions of Chapters 5.35 of the Palm Springs Municipal Code may apply for, and City staff shall process and evaluate such application, and, if the other conditions of that Chapter 5.45 are satisfied, the City may issue such permit, license, or authorization for commercial cannabis activity authorized by that Chapter. Every word used in this Ordinance that is defined in Chapter 5.45 of the Palm Springs Municipal Code as adopted by Ordinance 1933 shall have the meaning provided in that chapter unless the context plainly demonstrates another meaning was intended. SECTION 3. EXPIRATION. This Ordinance shall expire 30 days after the City Council certifies the results of the November 7, 2017 General Municipal Election unless the City Council acts by ordinance before that date to extend it. Upon expiration of this Ordinance, any permit, license, or authorization for commercial medical cannabis activity authorized by virtue of this Ordinance shall also expire, although the permittee, licensee or authorized person may continue to do business if in lawful compliance with another approval granted by the City under Chapters 5.35 of the Palm Springs Municipal Code. SECTION 4. SEVERABILITY If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision will not affect the validity of the remaining portions of this ordinance. The City Council declares that it would have passed this Ordinance and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional. SECTION 5. CONCURRENT LICENSING, CONTINUED LIMITED APPLICABILITY OF CHAPTER 3.35 re CANNABIS AND MARIJUANA TAX. The City requires the continued revenue generated by the City's permitted Medical Cannabis Cooperatives and Collectives pursuant to Chapter 3.35 of the Palm Springs Municipal Code during the effective date of this Ordinance. Accordingly, all permitted Medical Ordinance No. 1935 Page 4 Cannabis Cooperatives and Collectives shall remain permitted subject to Chapter 5.35, concurrent with any permit that they or any of them may secure pursuant to Chapter 5.45 during the effective period of this Interim Urgency Ordinance. However, Medical Cannabis Cooperatives and Collectives shall only remain concurrently permitted under 5.35 to the extent required to continue the uninterrupted applicability of Chapter 3.35 pending the expiration of this Ordinance. Furthermore, provisions of Chapter 5.35 inconsistent with operation pursuant to Chapter 5.45 are hereby suspended as to the City's permitted Medical Cannabis Cooperatives and Collectives during this Ordinance's period of effect. SECTION 6. REVERSION TO STATUS UNDER 5.35 IN THE EVENT OF FAILURE OF CANNABIS TAX. In the event that on November 7, 2017 the voters of the City for any reason fail to approve and adopt an "Ordinance of the City of Palm Springs Imposing a Tax on Cannabis Business Activity," to be codified in Chapter 3.42 of the Palm Springs Municipal Code, the City's permitted Medical Cannabis Cooperatives and Collectives shall revert to their permitted status under Chapter 5.35 and any permitted status achieved or secured pursuant to Chapter 5.45 shall expire on the expiration date of this Ordinance. SECTION 7. EXECUTION; CERTIFICATION. The Mayor shall sign and the City Clerk shall certify to the passage and adoption of this Ordinance and shall cause the same, or the summary thereof, to be published and posted pursuant to the provisions of law and this Ordinance shall take effect immediately. SECTION 8. CEQA. The City Council finds that the adoption of this Ordinance is exempt from environmental review under the California Environmental Quality Act ("CEQA") pursuant to the following provisions of the CEQA Guidelines, 14 Cal. Code of Regulations, Chapter 3: 1. The Ordinance is exempt under Section 15061(b) (3) because it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment. This Ordinance authorizes additional cannabis business activity only by those lawfully engaged in medical cannabis activity in the City — a small and known number of operators. Authorizing new activities by these businesses cannot be anticipated to significantly change the impacts on the environment of their existing activities without speculation. Should any particular application involve such impacts, those impacts will be more easily analyzed in light of the specific facts of such an application. These medical and adult-use cannabis businesses will have impacts that are similar to the farming, manufacturing, distribution, laboratory, and transportation and distribution activities already authorized within the City. Furthermore, the Ordinance contains requirements that prevent any potential impacts on the environment that may be unique to businesses involving adult- use or medical cannabis. For example, the Ordinance establishes prohibitions on nuisance odors, glare, excess energy usage, and establishes safety protections to prevent crime or deterioration of the business area, prohibition on Ordinance No. 1935 Page 5 usages of hazardous chemicals, and a prohibition on usage of excess water in violation of drought laws, etc. Further, there is no possibility that this Ordinance would create cumulative impacts that are significant because this Ordinance does not increase the number of businesses in the City, does not authorize construction or other related activities or any other activities that are not already permitted, except that the Ordinance allows the same activities but with a different material (adult-use or medical cannabis) that is being grown, sold, transported, or otherwise utilized in some form; there are no other significant impacts that could occur as a result of this ordinance, and there are no unusual circumstances that would cause any such significant impacts; and 2. The Ordinance is also exempt under Section 15183 (projects consistent with a community plan, general plan, or zoning) since the types of businesses permitted by the Ordinance are consistent with those contemplated by general plan and zoning, such as farming, manufacture, and distribution of other agriculture products and/or products to be used as pharmaceuticals; and 3. The Ordinance is also exempt under CEQA Guidelines Section 15301 (existing facilities) since permitted medical cannabis business under the Ordinance may locate in existing facilities, and any additions to structures would be expected to be also exempt under 15301; and 4. The Ordinance is exempt under Section 15303 (new construction or conversion of small structures). The businesses will be established in an urban area, and given the build out of the existing city, and sufficient existing leasable property, the amount of construction that would occur is minimal to non-existent, and any such construction would be less than the thresholds established in Section 15303. SECTION 9. FINDINGS. The adoption of this Interim Urgency Ordinance is necessary for the immediate protection of the public peace, health, and safety because of the City's interest in limiting the number of cannabis business permittees that the community can support, and to cooperate with those businesses to ensure their ability to generate sufficient revenues to meet their objectives. Failure to adopt this Interim Urgency Ordinance would reflect a lack of cooperation with the City's permitted Medical Cannabis Cooperatives and Collectives by ensuring their ability to generate sufficient revenues to meet the needs of qualified medical patients, ameliorate human suffering, promote health, safety and welfare, comply with all City regulations, and maintain appropriate security measures. In accordance with Section 312 of the Palm Springs City Charter, the City Council of the City of Palm Springs, California finds and determines that the adoption of this Interim Urgency Ordinance is necessary to ensure the immediate protection of the public peace, health, and safety, based upon these findings, and those reflected above in the true and correct recitals incorporated in this Interim Urgency Ordinance. Ordinance No. 1935 Page 6 PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 261h DAY OF JULY, 2017. ROBERT MOON, MAYOR ATTEST: KATHLEEN D. HART, MMC INTERIM CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, KATHLEEN D. HART, Interim City Clerk of the City of Palm Springs, hereby certify that Urgency Ordinance No. 1935 is a full, true and correct copy, and was adopted at an adjourned regular and special meeting of the Palm Springs City Council on the 26th day of July, 2017 by the following vote: AYES: Councilmembers Kors, Mills, Roberts, Mayor Pro Tern Foat, and Mayor Moon NOES: None ABSENT. None ABSTAIN: None RECUSED: None KATHLEEN D. HART, MMC INTERIM CITY CLERK