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Home My WebLink About6/17/2015 - STAFF REPORTS - 2.M. �QALMS'04 A. iy fA V N 'r r •' O•ro.en°•• C4<IPost ' City Council Staff Report DATE: June 17, 2015 CONSENT CALENDAR SUBJECT: SECOND READING AND ADOPTION OF ORDINANCE NO. 1879 RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6) FROM: David H. Ready, City Manager BY: Office of the City Clerk SUMMARY: The City Council will consider adoption of Ordinance No. 1879. RECOMMENDATION: Waive the reading of the ordinance text in its entirety and adopt Ordinance No. 1879," AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.110 AND 5.35.120 OF, AND ADDING SUBSECTION C TO SECTION 5.35.340 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6)." STAFF ANALYSIS: On June 3, 2015, Ordinance No. 1879 was introduced for first reading, as noted below: ACTION: 1) Waive the reading of the ordinance text in its entirety and introduce Ordinance No. 1879, "AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.110 AND 5.35.120 OF, AND ADDING SUBSECTION C TO SECTION 5.35.340 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6);" amending the second sentence of Section 5.35.340(c)(1) to read "Nothing in this Section shall prohibit two or more permitted MCCCs from operating or maintain such MCCF, and Section 5.35.340(c)(2) to read 'one hundred percent (100%) of all Item No. 2 • ll • ADOPTION OF ORDINANCE NO. 1879 June 17, 2015 Page 2 of 2 cannabis or marijuana cultivated at MCCF shall be distributed solely to one or more MCCFs permitted pursuant to the provisions of this Chapter- and 2) Direct Staff the City Council preference to limit consideration to the applicants in the last process. Motion Councilmember Foat, seconded by Councilmember Hutcheson and carried 3-1 on a roll call vote. AYES: Councilmembers Foat, Hutcheson, and Mayor Pro Tem Lewin. NOES: Councilmember Mills. ABSENT: Mayor Pougnet. This report provides for the City Council to waive further reading and adopt the ordinance. The ordinance shall be effective 30-days from adoption. 6,4'annes Thompson David H. Ready, City Clerk City Manager /kdh Attachments: Ordinance No. 1879 02 ORDINANCE NO. AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.110 AND 5.35.120 OF, AND ADDING SUBSECTION C TO SECTION 5.35.340 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6). City Attorney Summary The City's existing comprehensive medical cannabis regulatory program limits the number of medical cannabis cooperatives or collectives in the city and only allows cultivation of cannabis within the location of each medical cannabis cooperative, or collective. This Ordinance increases the number of permitted medical cannabis cooperatives or collectives to 6 and allows permitted cooperatives and collectives to engage in cannabis cultivation at locations other than the locations of the collective or cooperative. The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.35.110 of the Palm Springs Municipal Code is amended by adding the following definition of "Medical Cannabis Cultivation Facility" to the Palm Springs Municipal Code: "Medical Cannabis Cultivation Facility' or "MCCF" means a fully enclosed building or portion of a building that is solely used for the purpose of planting, growing, harvesting, drying, processing, or storage of one or more cannabis or marijuana plants or any part thereof. SECTION 2. Section 5.35.120 of the Palm Springs Municipal Code is amended to read: 5.35.120 Maximum Number of Medical Cannabis Cooperatives and Collectives. No more than six (6) permitted MCCCs shall be maintained or operated in the City at any time. This maximum number or permitted MCCCs shall not include any MCCF approved pursuant to Section 5.35.340.0 of this Code. SECTION 3. Subsection C is added to Section 5.35.340 of the Palm Springs Municipal Code to read: C. Medical Cannabis Cultivation Facility. 03 Ordinance No. Page 2 1. Each permitted MCCC may operate and maintain one (1) MCCF, subject to the requirements of the City's Zoning Code. Nothing in this Section shall prohibit two or more permitted MCCCs from operating or maintaining such MCCF. 2. One hundred percent (100%) of all cannabis or marijuana cultivated at each MCCF shall be distributed solely to one or more MCCFs permitted pursuant to the provisions of this Chapter. 3. Each MCCF shall be used exclusively for cultivation and for no other use or purpose. This prohibition includes without limitation distribution or sales to patients. 4. No Person shall cultivate, plant, grow, harvest, dry, process, or store one or more cannabis or marijuana plants or any part thereof in the City unless such activity has been approved or authorized pursuant to the provisions of this Chapter. SECTION 4. Adoption of the proposed Ordinance is exempt from the provisions of the California Environmental Quality Act (California Public Resources Code Section 21000, et seq., "CEQA" and CEQA Regulations (14 California Code of Regulations, Section 15000, et seq.) "CEQA Guidelines') because it defines terms used in the Municipal Code, addresses uses permitted under the City zoning districts, and contemplates leasing of existing buildings in a manner allowed under the Code. This Ordinance is therefore categorically exempt from review under CEQA review under Ceqa Guidelines Section 15301. SECTION 5. 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. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS _ DAY OF 2015. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK 04 Ordinance No. Page 3 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. is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the day of , 2015, and adopted at a regular meeting of the City Council held on the day of , 2015, by the following vote: AYES: NOES: ABSENT: ABSTAIN: JAMES THOMPSON, CITY CLERK City of Palm Springs, California 05 The Desert Sun Certificate of Publication 750 N Gene Autry Trail Palm Springs, CA 92262 RECEIVED 760-778-4578/Fax 760-778-4731 T OF PALM HIS AL -6 AM It 47 State Of California as: JAME$ TyOhlFSuH County of Riverside CITY CLERK Advertiser: CITY OF PALM SPRINGS/LEGALS PO BOX 2743 PALM SPRINGS CA 922632 2000727741 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 No Oe49 ORDINANCE No.1879 in said newspaper (set in type not smaller than non panel) AN ORDINANCE THE qCrTrYY OF PALM in each and entire issue of said newspaper and not in any SPRINGS, CALIF AMENDDIG SE E TIONS 5.55.110 AN 12o OF,AND ADDING supplement thereof on the following dates,to wit: gUBSECTION CTO ION9.�se00F THE Sull SPRINGS I PAL CODE REIA`AND TO MEDICAL CANNABIS (XA. ATN1N AND Newspaper: .The Desert Sun IN IN THE NUMB EFpq FtP E T,NAnS O COLLECTIVCE�,S�Ff� M FOUR(4)TO SIX(9): AlRoMy 6/27/2015 The City% pO medical mw ofa regtdatory PrOqUHTI Winter of 100d- m Cal cawbis Coops onlyand aRm axi dnn Din apawriaaUnn 1hw couacMe. TNe Ordinance alCreases DM namber medical Cannabis.maPeralM'es or Wis&vass tp 5 vM aand Coil to �agwaa n��H M hx rim oofhar aranian ibe bceaona Of gM ceilac ova of cooperative. I acknowledge that I am a principal clerk of the printer of CERTIFICATION _ The Desert Sun, printed and published weekly in the City STATE OF CALIFORNIA of Palm Springs, County of Riverside, State of California. COUNTYOFRIVERSIDE i CITY OF PALM SPRINGS The Desert Sun was adjudicated a newspaper of general I JAMES THOMPSON, Olerk of pia C of circulation on March 24, 1988 by the Superior Court of the F1akr1 gprXi fwrelw piat�O��v County of Riverside, State of California Case No. 187afeafu.1 an CO fof Palm Ing. dt 191236, C iced apo�nal0on ple �;�„ �1�uncg nd ad el a ia9Uler meetlnB go_the i and held on pie 17M day of am 2015,by sm- ing vole: I declare under penalty of perjury that the foregoing is true AYES; Cound.rnpbers Foat� HutChesme, LevAn and correct. Execu on the 27th day of June, 2015 in NOES: C�ouMars�me�a�berT�1, and Mayor PougMl Palm Springs,C if is, ASSENT: None Aa9TAIN: isms,i . JAMS THOMPSON CITY CLERK CpY of Paim Springs,Calllomle Publiew:el2TN6 De a nt's Signature CITY OF PALM SPRINGS NOTIFICATION City Council Meeting Date: June 17, 2015 Subject: Ordinance No. 1879 AFFIDAVIT OF PUBLICATION I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance Summary was published in the Desert Sun on June 27, 2015. 1 declare under penalty of perjury that the foregoing is true and correct. Kathie Hart, MMC Chief Deputy City Clerk • AFFIDAVIT OF POSTING I, Kathie Hart, Chief Deputy City Clerk, of the City of Palm Springs, California, do hereby certify that a copy of the attached Ordinance Summary and Ordinance 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 July 1, 2015. 1 declare under penalty of perjury that the foregoing is true and correct. 1� Kathie Hart, MMC Chief Deputy City Clerk • ORDINANCE NO. 1879 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.110 AND 5.35.120 OF, AND ADDING SUBSECTION C TO SECTION 5.35.340 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6). City Attorney Summary The City's existing comprehensive medical cannabis regulatory program limits the number of medical cannabis cooperatives or collectives in the city and only allows cultivation of cannabis within the location of each medical cannabis cooperative, or collective. This Ordinance increases the number of permitted medical cannabis cooperatives or collectives to 6 and allows permitted cooperatives and collectives to engage in cannabis cultivation at locations other than the locations of the collective or cooperative. 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. 1879 is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 3` day of June, 2015, and adopted at a regular meeting of the City Council held on the 17th day of June, 2015, by the following vote: AYES: Councilmembers Foat, Hutcheson, and Mayor Pro Tem Lewin NOES: Councilmember Mills and Mayor Pougnet ABSENT: None ABSTAIN: None MES THOMPSON, CITY CLERK City of Palm Springs, California ORDINANCE NO. 1879 AN ORDINANCE OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING SECTIONS 5.35.110 AND 5.35.120 OF, AND ADDING SUBSECTION C TO SECTION 5.35.340 OF, THE PALM SPRINGS MUNICIPAL CODE RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6). City Attorney Summary The City's existing comprehensive medical cannabis regulatory program limits the number of medical cannabis cooperatives or collectives in the city and only allows cultivation of cannabis within the location of each medical cannabis cooperative, or collective. This Ordinance increases the number of permitted medical cannabis cooperatives or collectives to 6 and allows permitted cooperatives and collectives to engage in cannabis cultivation at locations other than the locations of the collective or cooperative. The City Council of the City of Palm Springs, California, ordains: SECTION 1. Section 5.35.110 of the Palm Springs Municipal Code is amended by adding the following definition of "Medical Cannabis Cultivation Facility" to the Palm Springs Municipal Code: "Medical Cannabis Cultivation Facility" or "MCCF" means a fully enclosed building or portion of a building that is solely used for the purpose of planting, growing, harvesting, drying, processing, or storage of one or more cannabis or marijuana plants or any part thereof. SECTION 2. Section 5.35.120 of the Palm Springs Municipal Code is amended to read: 5.35.120 Maximum Number of Medical Cannabis Cooperatives and Collectives. No more than six (6) permitted MCCCs shall be maintained or operated in the City at any time. This maximum number or permitted MCCCs shall not include any MCCF approved pursuant to Section 5.35.340.0 of this Code. SECTION 3. Subsection C is added to Section 5.35.340 of the Palm Springs Municipal Code to read: C. Medical Cannabis Cultivation Facility. Ordinance No. 1879 Page 2 1. Each permitted MCCC may operate and maintain one (1) MCCF, subject to the requirements of the City's Zoning Code. Nothing in this Section shall prohibit two or more permitted MCCCs from operating or maintaining such MCCF. 2. One hundred percent (100%) of all cannabis or marijuana cultivated at each MCCF shall be distributed solely to one or more MCCFs permitted pursuant to the provisions of this Chapter. 3. Each MCCF shall be used exclusively for cultivation and for no other use or purpose. This prohibition includes without limitation distribution or sales to patients. 4. No Person shall cultivate, plant, grow, harvest, dry, process, or store one or more cannabis or marijuana plants or any part thereof in the City unless such activity has been approved or authorized pursuant to the provisions of this Chapter. SECTION 4. Adoption of the proposed Ordinance is exempt from the provisions of the California Environmental Quality Act (California Public Resources Code Section 21000, et seq., "CEQA" and CEQA Regulations (14 California Code of Regulations, Section 15000, et seq.) "CEQA Guidelines") because it defines terms used in the Municipal Code, addresses uses permitted under the City zoning districts, and contemplates leasing of existing buildings in a manner allowed under the Code. This Ordinance is therefore categorically exempt from review under CEQA review under Ceqa Guidelines Section 15301. SECTION 5. 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. PASSED, APPROVED, AND ADOPTED BY THE PALM SPRINGS CITY COUNCIL THIS 17T" DAY OF JUNE, 2015. STEPHEN P. POUGNET, MAYOR ATTEST: JAMES THOMPSON, CITY CLERK Ordinance No. 1879 Page 3 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. 1879 is a full, true and correct copy, and was introduced at a regular meeting of the Palm Springs City Council on the 3' day of June, 2015, and adopted at a regular meeting of the City Council held on the 17th day of June, 2015, by the following vote: AYES: Councilmember Foat, Councilmember Hutcheson, and Mayor Pro Tern Lewin. NOES: Councilmember Mills, and Mayor Pougnet. ABSENT: None. ABSTAIN: None. JAMES THOMPSON, CITY CLERK City of Palm Springs, California Cindy Berardi From: Douglas C. Holland Sent: Wednesday, June 17, 2015 2:54 PM To: Robert Van Roo; David Ready; Ginny Foat; Steve Pougnet; Chris Mills; Rick Hutcheson; CityClerk Subject: RE: PSSA suggestions for item 2M for June 17th Meeting Robert: The recent cultivation ordinance started as a process to allow each PS legal co-op to grow its own and reduce its reliance on outside "members' who cultivate are more often than not based outside of the city. We looked at the idea of a separate permit for grow facilities;where someone who does not have a co-op permit from the City could grow in the City and wholesale, if you will, medicine to legal co-ops or collectives elsewhere in the state. Quite frankly, I am concerned that such an arrangement is not contemplated under the existing laws of the State of California and could put not only the grower but the City at risk of violating H&S Code Section 11358. This law provides that"every person who plants, cultivates, harvests,dries,or processes any marijuana or part thereof, except as otherwise provided by law,shall be punished by imprisonment . . .." The critical language is the "except as otherwise provided by law." This means that some law must expressly allow the activity. The case authority has narrowly construed the scope of activities covered under this language. A cultivator cannot grow more marijuana than necessary to supply the current medical needs of the cultivator's co-op or collective. To do so would expose the cultivator to criminal liability. Limiting cultivation to each legal co-op and to provide the opportunity for a co-op to provide for its respective patients I believe qualifies as an activity"otherwise provided" under the provisions of H&S Sec 11358 and should help insulate each of the City's legal co- ops or collectives from possible criminal prosecution. Doug Holland From: Robert Van Roo [mailto:robert@psaccess.org] Sent: Tuesday, June 16, 2015 9:18 PM To: David Ready; Douglas C. Holland; Ginny Foat; Steve Pougnet; Chris Mills; Rick Hutcheson; CityClerk Subject: PSSA suggestions for item 2M for June 17th Meeting Dear Honorable Members of the Palm Springs City Council and Staff- My apologies for the late nature of this message. I've been slammed at PSSA (which i suppose is a good thing). I'm writing to you today in relation to the City Council meeting on June 17, 2015 in regards to 2.M. SECOND READING AND ADOPTION OF ORDINANCE NO. 1879 RELATING TO MEDICAL CANNABIS CULTIVATION AND INCREASING THE NUMBER OF PERMITTED MEDICAL CANNABIS COOPERATIVES OR COLLECTIVES FROM FOUR (4) TO SIX (6) I'm writing specifically with regard to the subject of off-sight cultivation. As a permitted facility, Palm Springs Safe Access, we believe that this is a great concept and will enhance the program here in the City. The proposed language in the draft ordinance, however, is too limiting and needs to be expanded upon. The ordinance's proposed "closed system" quite simply does not work. Keeping products produced in Palm Sprigs exclusively in Palm Springs is nearly impossible. I'm not about to give my proprietary strains to the dispensary next door. When growing there is no way to quantify an exact harvest for your needs, as we are literally dealing with Mother Nature. Some harvests are better then others. If my collective is unable to t �f»/s dispense all of one strain with this "closed system" language am I expected to destroy excess medicine?This will only make medicine more expensive and less readily available. Frankly, this takes a revenue opportunity away from both the City as well as permitted collectives. If there were a provision allowing the permitted facilities to disperse unused medicine to other licensed facilities added tax revenue would be generated under Measure B, more medicine would be available and market dynamic would lower the cost of medicine across the board. I believe there should be a process enabled through the City ordinance allowing permitted facilities to create transparent alliances with licenced facilites that are not in direct conflict with local market. Additionally, language should be added to allow facilities to process the cannabis in a number of ways, including: CO2 extraction (perhaps following guidelines that are in practice in Colorado and Washington State), and on site marijuana infused product (MIPs) production such as edibles,tinctures, creams, salves, concentrates, ect. . These activities should be listed as allowed additional use to the proposed offsite facilities. Again, this will only help reduce the cost of medicine to the patients in Palm Springs. PSSA wants to be as forward thinking as possible and create world-class products for the patients utilizing our facility and to have the opportunity to share those medical products with other established and licensed facilities in an effort to keep costs in control and enhance the overall experience for the Palm Springs patient. This is a huge opportunity for both the patients of Palm Springs and for the City of Palm Springs Measure B tax program. The Following elements are what I would propose be considered for addition to the proposed ordinance as to Off Site Cultivation Facility: *Offsite facility is allowed to produce MIN subject to local oversight and jurisdiction (no doubt including permit and inspection fees) *Off-site facility is allowed to use CO2 Extraction (Under same guidelines of Colorado State Program —and again subject to permitting and inspection) this is absolutely essential extractions are 50% of the medical cannabis market. *Licensed facilities are able to take excess medicine to other licensed facilities (as contemplated hY existing State law) outside of 50-mile radius of Palm Springs City limits. All relationships with additional facilities must meet City approval and guidelines (to be determined). Please feel free to reach out to me with any questions. Truly Robert Van Roo 415-694-3754 2