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Home My WebLink About6/1/2016 - STAFF REPORTS - 2.J. a0�V P L M Sp4 iy c V N c C 04b4<4fo °mm 4I( Re�P CITY COUNCIL STAFF REPORT DATE: JUNE 1, 2016 CONSENT CALENDAR SUBJECT: SECOND READING OF ORDINANCE NO. 1892 RELATING TO HOURS OF OPERATION AND MEDICAL CANNABIS CULTIVATION FACILITIES FOR PERMITTED MEDICAL CANNABIS COLLECTIVES AND COOPERATIVES. FROM: David H. Ready, City Manager BY: Chief of Staff/City Clerk SUMMARY Under the current provisions of the Palm Springs Municipal Code, Medical Cannabis Collectives or Cooperatives (MCCCs) can operate between the hours of 9:00 a.m. and 7:00 p.m. and to engage in cultivation activities at their respective dispensing location and one off-site Medical Cannabis Cultivation Facility (MCCF). This Ordinance will allow each MCCC to operate between the hours of 9:00 a.m. and 10:00 p.m. or such hours as the Council may establish. This Ordinance also will allow an MCCC that does not cultivate at its dispensing location to operate an additional MCCF. This Ordinance also corrects certain municipal code references in Chapter 3.35 of the Palm Springs Municipal Code. RECOMMENDATION: Waive the reading of the ordinance text in its entirety and adopt Ordinance No. 1892, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.210.D.2, 5.35.340.C.1, AND CHAPTER 3.35 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO HOURS OF OPERATION AND MEDICAL CANNABIS CULTIVATION FACILITIES FOR PERMITTED MEDICAL CANNABIS COLLECTIVES AND COOPERATIVES." STAFF ANALYSIS: On May 18, 2016, Ordinance No. 1892 was introduced for first reading, as noted below: ACTION: 1) Waive the reading of the ordinance text in its entirety; and 2) introduce for first reading Ordinance No. 1892, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, ITEM NO. 2-T, City Council Staff Report June 1, 2016-- Page 2 Hours of Operation for MCCC and MCCF facilities CALIFORNIA, AMENDING SECTIONS 5.25.210.D.2, 5.35.240.C.1 , AND CHAPTER 3.35 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO HOURS OF OPERATION AND MEDICAL CANNABIS CULTIVATION FACILITIES FOR PERMITTED MEDICAL CANNABIS COLLECTIVES AND COOPERATIVES." Motion Councilmember Foat, seconded by Councilmember Roberts and carried 4-1 on a roll call vote; Mayor Moon voting NO. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30-days from adoption. FISCAL IMPACT: No significant change to City revenue or expenditures is expected as a result of adopting the proposed ordinance. 4MES THOMPSON DAVID H. READY Chief of Staff/City clerk City Manager Attachment: Ordinance No. 1892 02 ORDINANCE NO. 1892 AN ORDINANCE OF CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.210.D.2, 5.35.340.C.1, AND CHAPTER 3.35 OF THE PALM SPRINGS MUNICIPAL CODE, RELATING TO HOURS OF OPERATION AND MEDICAL CANNABIS CULTIVATION FACILITIES FOR PERMITTED MEDICAL CANNABIS COLLECTIVES AND COOPERATIVES. City Attorney's Summary Under the current provision of the Palm Springs Municipal Code, Medical Cannabis Collectives or Cooperatives (MCCCs) can operate between the hours of 9:00am and 7:00pm and to engage in cultivation activities at their respective dispensing location and one off-site Medical Cannabis Cultivation Facility (MCCF). This Ordinance will allow each MCCC to operate between the hours of 9:00am and 10:00pm or such hours as the Council may establish. This Ordinance also will allow an MCCC that does not cultivate at its dispensing location to operate an additional MCCF. This Ordinance also corrects certain municipal code references in Chapter 3.35 of the Palm Springs Municipal Code. THE CITY COUNCIL OF THE CITY OF PALM SPRINGS ORDAINS: SECTION 1. Section 5.35.210.D.2 off the Palm Springs Municipal Code is amended to read: 2. The MCCC shall only be open between the hours of 9:00a.m. and 10:00p.m., or during such hours as the City Council may allow by ordinance or resolution. SECTION 2. Section 5.35.340.C.1 of the Palm Springs Municipal Code is amended to read: 1. Each permitted MCCC may operate and maintain one (1) MCCF, subject to the requirements of the City's Zoning Code. In the event a permitted MCCC does not engage in cultivation operations at its Location as allowed under Subsection A of this Section, and only for so long as the permitted MCCC does not so engage in cultivation at its Location, such MCCC may operate and maintain one (1) additional MCCF as allowed under this Subsection C. Nothing in this Section shall prohibit two or more permitted MCCCs from operating or maintaining an MCCF. SECTION 3. All references to Palm Springs Municipal Code Section 93.23.15 in Palm Springs Municipal Code Chapter 3.35 are hereby amended to refer to and read as "Chapter 5.35 of this Code." C3 Ordinance No. 1892 Page 2 SECTION 4. 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 thirty (30) days after passage. ADOPTED THE 1ST DAY OF JUNE, 2016. DAVID H. READY, CITY MANAGER ATTEST: JAMES THOMPSON, CITY CLERK CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Ordinance No. 1892 is a full, true and correct cop ty, and was introduced at a regular meeting of the Palm Springs City Council on the 18t day of May, 2016, and adopted at a regular meeting of the City Council held on the 1st day of June, 2016, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 04 Tuesday,May 31,2016 Dear Palm Springs City Council Members- I'm writing today in regards to the second reading of 2J.ORDINANCE NO. 1892 RELATING TO HOURS OF OPERATION AND MEDICAL CANNABIS CULTIVATION FACILITIES FOR PERMITTED MEDICAL CANNABIS COLLECTIVES AND COOPERATIVES,taking place tomorrow evening. First,I would like to thank the City Council for acknowledging and addressing the important hours of operation issue.I have countless Palm Springs patients regularly approach me stating that they do not get off work until after 7pm and that they are forced to go to an illegal facility or travel outside of the City to get their medicine. The language specifically addressing operational hours is necessary.Thank you for addressing the needs of Palm Springs residents. The second part of this ordinance,however,as it relates to extending an additional one(1)off site cultivation permit to,in essence a select number of permitted facilities,allowing them a total of two(2)offsite facilities is ill advised,unfair,and unacceptable. Unfortunately,I was unable to attend the prior City Council meeting to comment on this item as I was working at my facility that closes at 7pm. The proposed ordinance's language does not bring fairness to our Medical Cannabis regulatory scheme.In fact,it does the opposite. The City's existing regulatory scheme and submittals by applicants specifically required a closed loop system(vertically integrated model)and therefore on-site cultivation by permittecs.The language as proposed would require PSSA to do all cultivation that PSSA is legally allowed with just one(1)offsite,while rewarding some non-compliant peanittecs with two allowed off site facilities. It is extremely cost prohibitive for PSSA's operation,which has onsite cultivation in compliance with our permit,to proceed with the full capacity of its rights under this ordinance and the new State laws with just one(I)offsite. As a small business owner,this forces PSSA to have to find one off-site location that meets all our unique patient needs. This is effectively as prohibitive,if not more so,as the very first ordinance that forced PSSA into its current location-spending seven figures to make the space usable for PSSA and to comply with City requirements. The original ordinance forced PSSA into its current location and forced PSSA to absorb excessive costs of modifying the space to meet the requirements of the City's restrictive zoning rules(now lifted), including on site cultivation. This proposed language requires PSSA to find one lump sum of funding to meet the needs of developing that one unusually large capacity off-site location. This additional burden is imposed on compliant permitteees,while giving competing permitted locations(some of which were suppose to have onsite cultivation per their applications),to spread their investment over two smaller facilities at much lower rental rates(really spreading their costs over three locations including what can now be a much smaller dispensary operation). I urge you to look at this language and sec its damaging affects on operations and growth for three of the City's six facilities. As drafted,this not only rewards non-complaint behavior but also provides an unfair competitive advantage-which ultimately may limit the choices of the patients in Palm Springs and negatively affect price competitiveness for those patients. I believe the language to be unfair and it gives the appearance of intentionally promoting the financial benefit of a few selected operators to the potential detriment of the patients we all aim to serve. This highly restrictive language seems to attempt to put a stranglehold on some operators while lifting three specific facilities capabilities to exceed that of the others. Seemingly allowing the Council to engage in the picking of winners and losers and creates potential liability for the City of Palm Springs. I urge the Council to drop this proposed ordinance outright,refer the matter to the existing sub-committee for review and present a re-drafted ordinance amendment for discussion and a vote at a future meeting. /Truly, RoberRPresident Palm Springs Safe Access ASS I I «;;kV x,= rrs�a��v