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HomeMy WebLinkAboutD-1 Staff Report -Ordinance Amend Chapter 88.42 AMCSCHEDULED ITEM D-1 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER FROM: MARCO A. MARTINEZ, CITY ATTORNEY SAM GONZALEZ, CHIEF OF POLICE KURT CHISTIANSEN, AICP, ECONOMIC AND COMMUNITY DEVELOPMENT DIRECTOR DATE: JANUARY 5, 2016 SUBJECT: FIRST READING OF ORDINANCE NO. 2016-O1 AMENDING CHAPTER 88.42 TO PROHIBIT CANNABIS DISPENSARIES, CANNABIS MANUFACTURERS, CULTIVATION, AND DELIVERY OF CANNABIS WITHIN THE CITY SUMMARY: The California Legislature is requiring that all cities adopt regulations relating to medical marijuana by March 1, 2016 or cities will be subject only to state law on this issue. The City’s Municipal Code currently does not specifically regulate medical marijuana uses within the City. On December 16, 2015, the Planning Commission conducted a duly noticed public hearing, upon hearing all testimonies from the public, the Commission recommended approval to City Council of Code Amendment No. 239, which amends Chapter 88.42 of the Azusa Municipal Code prohibiting cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis within the City. This action approves for first reading by title only an ordinance amending Chapter 88.42 of the Azusa Municipal Code setting forth regulations prohibiting cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis within the City. RECOMMENDATION: Staff recommends that the City Council take the following actions: 1)Open the Public Hearing, receive public testimony, close the Public Hearing; and 2)Introduce for first reading, by title only, Ordinance No. 2016-O1; amending Chapter 88.42 to prohibit cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis in the City. APPROVED COUNCIL MEETING 1/5/2016 Ordinance No. 2016-O1 January 5, 2016 Page 2 BACKGROUND: The California Legislature recently adopted legislation identified as the Medical Marijuana Regulation and Safety Act (AB 243, AB 266, and SB 643) (the “MMRSA”) to comprehensively regulate medical marijuana (medical cannabis). The MMRSA recognizes and preserves local control to regulate or ban medical cannabis cultivation, transportation, and distribution. The MMRSA confirms and clarifies that, in addition to the complete land use control over retail dispensaries recognized in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal. 4th 729, municipalities have the power to regulate or ban the cultivation and distribution of medical marijuana. Although the MMRSA allows municipalities to regulate or ban cannabis cultivation, manufacturing, transportation, and distribution of medical cannabis within their jurisdictions, it requires some local enabling legislation to accomplish some aspects of this. If a city chooses to regulate these activities comprehensively, it must adopt an overlay of local regulatory standards that are at least as strict as the state’s default regulations. Specifically, the MMRSA provides that if a city has not banned or regulated cannabis cultivation by March 1, 2016, then cultivation in that city will be subject only to state law on this issue. DISCUSSION: The cultivation, transportation, and distribution of marijuana can create problems relating to public health and safety, crime, water and air quality, and energy consumption. Marijuana uses can create nuisance activity such as loitering and criminal activity in business and residential districts. Specifically, mobile delivery can create issues relating to responsibility and resources to monitor and enforce state law, questions of patient qualification, and risks relating to the high use of large sums of cash for mobile transactions. Historically, the City of Azusa has not permitted the establishment of a medical marijuana dispensary pursuant to our permissive zoning provisions. “Permissive Zoning” prohibits the uses of land unless they are expressly permitted as a primary use, or can be found to be accessory to a primary use. Although permissive zoning has been interpreted by courts to prohibit marijuana dispensaries, to some, the Riverside decision leaves open the following issues: • Whether a City’s “similar use determination” is potentially available to determine that marijuana dispensaries and cultivation are similar to other permitted uses and thus should also be permitted (i.e., listed marijuana uses as expressly prohibited and not subject to the similar use determination would remove all doubt); and • Whether transportation and non-retail distribution are regulated under existing municipal zoning codes. With the adoption of MMRSA, and consistent with current recommendations by the League of California Cities, staff is recommending that certain actions related to commercial medical marijuana activity should be expressly prohibited by the Municipal Code. This concept is consistent with the approach staff has used to address requests for medical marijuana dispensaries currently, but this amendment would expressly prohibit medical marijuana dispensaries, in addition to the cultivation, transportation and delivery of medical marijuana in all established zones in the City. Ordinance No. 2016-O1 January 5, 2016 Page 3 Under MMRSA provisions, the State of California will be implementing licensing procedures for all aspects of commercial medical marijuana businesses including cultivation, transportation, dispensing and mobile deliveries. It is estimated that the State's required licensing provisions will be formally implemented beginning in calendar year 2018. In the interim, the State, through numerous State agencies and overseen by Bureau of Medical Marijuana Regulation, will be developing licensing standards for separate categories related to medical marijuana cultivation, transportation, dispensing and delivery of medical marijuana. As noted previously, one important aspect of MMRSA is that for the State to acknowledge a local jurisdiction's regulation/prohibition of the cultivation of medical marijuana, such a law must be in effect prior to March 1, 2016. This deadline does not affect any other provision of MMRSA related to other aspects of commercial medical marijuana such as transportation or dispensing. One other aspect of MMRSA states that if a local jurisdiction desires to regulate or prohibit the mobile delivery of medical marijuana (dispensing through direct delivery of medical marijuana to a qualified patient), it must expressly regulate such activity by ordinance. Although there is not a stated effective date for delivery restrictions as there is for cultivation, a regulation would have to be adopted prior to the State's licensing procedures become effective. As part of this proposed amendment, mobile deliveries would be prohibited in the City. A public hearing notice was published on December 25, 2015, for this item. ENVIRONMENTAL REVIEW: The proposed Code Amendment is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) because the activity, which involves amending Chapter 88.42 of the City’s Municipal Code, will not result in a direct or reasonably foreseeable indirect physical change in the environment; and 15060(c)(3) because the activity is not a project as defined in Section 15378 of the CEQA Guidelines, California Code of regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. In addition, the project is exempt from environmental review per CEQA under the General Rule (Section 15061 (b)(3)). The project involves updates and revisions to existing regulations. It can be seen with certainty that the proposed code amendment will have no significant negative effect on the environment. ZONING CODE AMEDMENT FINDING OF FACTS: In order to approve the Zoning Code Amendment, the City Council must make the following Finding of Facts: That the proposed zoning code amendment is consistent with the goals, policies, and objectives of the General Plan, any applicable specific plan, development agreement, owner participation agreement or disposition and development agreement. General Plan Chapter 3: The Built Environment – Infrastructure Goals and Policies 1.4, call to “Minimize electrical consumption through site design, use of efficient system, and other techniques.” The indoor cultivation of cannabis requires large amount of energy to power the heat lamps. Therefore, the proposed code amendment would prohibit the cultivation of cannabis and minimize electrical consumption. Ordinance No. 2016-O1 January 5, 2016 Page 4 General Plan Chapter 3: The Built Environment – Infrastructure Goals and Policies 2.6, call to “Minimize water consumption through site design, use of efficient systems, and other techniques.” The cultivation of cannabis requires significant daily water consumption. Therefore, the proposed code amendment would prohibit the cultivation of cannabis and minimize water consumption. General Plan Chapter 3: The Built Environment – Building and Property Maintenance Goals and Policies 11.0, call to “Ensure the proper maintenance of buildings and properties.” Cultivation can impair building maintenance and safety. For example, the increased moisture necessary to grow indoors can create excessive mold growth and structural damage. Therefore, the code amendment would prohibit the cultivation of cannabis and diminish possible building and property maintenance. General Plan Chapter 4: Economy and Community – Public Services Goals and Policies 1.0, call to “Protect the community from criminal activity, reduce the incidence of crime, and provide other necessary services within the city.” The cultivation, transportation, and distribution of cannabis can create problems relating to public health and safety. This type of use can create nuisance activity such as loitering and criminal activity in business and residential districts. Specifically mobile delivery can create issues relating to responsibility and resources to monitor and enforce state law, questions of patient qualification, and risks relating to the high use of large sums of cash for mobile transactions. Therefore, the proposed code amendment would prohibit the cultivation, transportation, and distribution of cannabis and reduce crime. General Plan Chapter 5: Natural Government – Air Quality Goals and Policies 1.0, call to “Improve air quality in Azusa and reduce exposure to air pollutants.” The cultivation of cannabis can create air quality issues by the inadequate ventilation combined with the use of pesticides and fertilizers in an enclosed space. Therefore, the proposed code amendment would prohibit the cultivation of cannabis and diminish possible air quality issues. FISCAL IMPACT: There is no fiscal impact associated with this item. Prepared by: Reviewed by: Marco A. Martinez Sam Gonzalez City Attorney Chief of Police Manuel Muñoz Kurt Christiansen, AICP Associate Planner Economic & Community Development Director Reviewed and Approved: Troy L. Butzlaff, ICMA-CM City Manager Attachments: 1. Exhibit A – Proposed Development Code Amendment 2. Exhibit B – Draft Ordinance ATTACHMENT 1 Exhibit “A” DEVELOPMENT CODE ADDITION Article 4 – Standards for Specific Uses Section 88.42.035 is added to the City of Azusa Municipal Code to read in full as follows: Section 88.42.035 Medical Marijuana Uses A. Purpose The purpose of this Section is to enact and enforce a ban on all cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis located within the City limits. Nothing in this Article shall preempt or make inapplicable any provision of state or federal law. B. Definitions For purposes of this Section, the following definitions shall apply: 1. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from marijuana. “Cannabis” also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. 2. “Cannabis dispensary” means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. 3. “Cannabis manufacturer” means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or relabels its container 4. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. 5. “Delivery” means the commercial transfer of cannabis or cannabis products, and includes origination or termination within the City as well as a delivery business. C. Prohibited Use. Cannabis dispensaries, cultivation, cannabis manufacturers, and delivery of cannabis, as defined herein, shall be considered prohibited uses in all zoning districts of the City. No use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, shall be approved or issued for the establishment or operation of a dispensaries, cannabis cultivation, cannabis manufacturers, and delivery of cannabis as defined herein in any zoning district, and no person shall otherwise establish such businesses or operations in any zoning district. D. Penalty for Violation. No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this Section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this Section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this Section, any condition caused or permitted to exist in violation of any of the provisions of this Section is declared a public nuisance and may be abated as provided in Sections 1-10 and 1-11 and/or under state law. ATTACHMENT 2 ORDINANCE NO. 2016-O1 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF AZUSA AMENDING THE CITY OF AZUSA DEVELOPMENT CODE CHAPTER 88.42 TO PROHIBIT CANNABIS DISPENSARIES, CANNABIS MANUFACTURERS, CULTIVATION, AND DELIVERY OF CANNABIS IN THE CITY WHEREAS, the City of Azusa, California (the “City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; and WHEREAS, in 1996, the voters of the State of California approved Proposition 215 (codified as Health & Safety Code Section 11362.5 et seq. and entitled "The Compassionate Use Act of 1996"); and WHEREAS, the intent of Proposition 215 was to enable seriously ill Californians to legally possess, use, and cultivate marijuana for medical use under state law; and WHEREAS, in 2003, the California Legislature adopted SB 420, the Medical Marijuana Program (“MMP”), codified as Health and Safety Code Section 11362.7 et seq., which permits qualified patients and their primary caregivers to associate collectively or cooperatively to cultivate marijuana for medical purposes without being subject to criminal prosecution under the Penal Code; and WHEREAS, neither the Compassionate Use Act (“CUA”) nor the MMP require nor impose an affirmative duty or mandate upon local governments to allow, authorize, or sanction the establishment of facilities that cultivate or process medical marijuana within its jurisdiction; and WHEREAS, in May 2013, the California Supreme Court issued its decision in City of Riverside v. Inland Empire Patients Health and Wellness Center, Inc. (2013) 56 Cal. 4th 729, holding that cities have the authority to regulate or ban outright medical marijuana land uses; and WHEREAS, under the Federal Controlled Substances Act, codified in 21 U.S.C. Section 801 et seq., the use, possession, and cultivation of marijuana are unlawful and subject to federal prosecution without regard to a claimed medical need; and WHEREAS, on October 9, 2015, Governor Jerry Brown signed the “Medical Marijuana Regulation and Safety Act” (“Act”) into law; and WHEREAS, the Act becomes effective January 1, 2016 and contains provisions which allow for local governments to regulate licenses and certain activities thereunder; and WHEREAS, the Act contains a provision which sets forth that the State shall become the sole authority for regulation under certain parts of the Act, unless local governments have “land use regulations or ordinances regulating or prohibiting the cultivation of marijuana…” (Health and Safety Code §11362.777(c)(4); and Ordinance No. 2016-O1 January 5, 2016 Page 2 of 6 WHEREAS, several California cities have reported negative impacts of marijuana cultivation, processing, and distribution uses, including offensive odors, illegal sales, and distribution of marijuana, trespassing, theft, violent robberies and robbery attempts, fire hazards, and problems associated with mold, fungus, and pests; and WHEREAS, marijuana plants, as they begin to flower and for a period of two months or more, produce a strong odor, and detectable far beyond property boundaries if grown outdoors; and WHEREAS, the strong smell of marijuana creates an attractive nuisance, alerting persons to the location of the valuable plants, and creating a risk of burglary, robbery, or armed robbery; and WHEREAS, the indoor cultivation of marijuana has potential adverse effects to the health and safety of the occupants; including structural damage to the building due to increased moisture and excessive mold growth which can occur and can pose a risk of fire and electrocution; additionally, the use of pesticides and fertilizers can lead to chemical contamination within the structure; and WHEREAS, the Attorney General’s August 2008 Guidelines for the Security and Non- Diversion of Marijuana Grown for Medical Use recognizes that the cultivation or other concentration of marijuana in any location or premises without adequate security increases the risk that nearby homes or businesses may be negatively impacted by nuisance activity such as loitering or crime; and WHEREAS, based on the experiences of other cities, these negative effects on the public health, safety, and welfare are likely to occur, and continue to occur, in the City due to the establishment and operation of marijuana cultivation, processing, and distribution uses; and WHEREAS, the Azusa Municipal Code (“Code”) does not address the cultivation, processing, delivery and distribution of medical cannabis; and WHEREAS, based on the findings above, the potential establishment of cannabis dispensaries, cultivation, cannabis manufacturers and delivery of cannabis uses in the City without regulation poses a current and immediate threat to the public health, safety and welfare in the City due to the negative land use and other impacts of such uses as described above; and WHEREAS, the issuance or approval of business licenses, subdivisions, use permits, variances, building permits, or any other applicable entitlement for cannabis dispensaries, cultivation, cannabis manufacturers and delivery of cannabis will result in the aforementioned threat to public health, safety, or welfare. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF AZUSA DOES HEREBY ORDAN AS FOLLOWS: Ordinance No. 2016-O1 January 5, 2016 Page 3 of 6 SECTION 1. The City Council hereby finds and determines that it can be see with certainty that there is no possibility that this Resolution may have a significant adverse effect on the environment. This proposed ordinance does not result in any direct development of any parcel of land or direct physical changes to the environment. Thus, the adoption of this ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b) (3) of the CEQA Guidelines. SECTION 2. The City Council hereby recommends that Section 88.42.035 is added to the City of Azusa Municipal Code to read in full as follows: “Section 88.42.035 Medical Marijuana Uses A. Purpose The purpose of this Section is to enact and enforce a ban on all cannabis dispensaries, cannabis manufacturers, cultivation, and delivery of cannabis located within the City limits. Nothing in this Article shall preempt or make inapplicable any provision of state or federal law. B. Definitions For purposes of this Section, the following definitions shall apply: 1. “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from marijuana. “Cannabis” also means marijuana as defined by Section 11018 of the Health and Safety Code as enacted by Chapter 1407 of the Statutes of 1972. 2. “Cannabis dispensary” means a facility where cannabis, cannabis products, or devices for the use of cannabis or cannabis products are offered, either individually or in any combination, for retail sale, including an establishment that delivers cannabis and cannabis products as part of a retail sale. 3. “Cannabis manufacturer” means a person that conducts the production, preparation, propagation, or compounding of manufactured cannabis, or cannabis products either directly or indirectly or by extraction methods, or independently by means of chemical synthesis or by a combination of extraction and chemical synthesis at a fixed location that packages or repackages medical cannabis or cannabis products or labels or relabels its container 4. “Cultivation” means any activity involving the planting, growing, harvesting, drying, curing, grading, or trimming of cannabis. 5. “Delivery” means the commercial transfer of cannabis or cannabis products, and includes origination or termination within the City as well as a delivery business. Ordinance No. 2016-O1 January 5, 2016 Page 4 of 6 C. Prohibited Use. Cannabis dispensaries, cultivation, cannabis manufacturers, and delivery of cannabis, as defined herein, shall be considered prohibited uses in all zoning districts of the City. No use permit, variance, building permit, or any other entitlement or permit, whether administrative or discretionary, shall be approved or issued for the establishment or operation of a dispensaries, cannabis cultivation, cannabis manufacturers, and delivery of cannabis as defined herein in any zoning district, and no person shall otherwise establish such businesses or operations in any zoning district. D. Penalty for Violation. No person, whether as principal, agent, employee or otherwise, shall violate, cause the violation of, or otherwise fail to comply with any of the requirements of this Section. Every act prohibited or declared unlawful, and every failure to perform an act made mandatory by this Section, shall be a misdemeanor or an infraction, at the discretion of the City Attorney or the District Attorney. In addition to the penalties provided in this Section, any condition caused or permitted to exist in violation of any of the provisions of this Section is declared a public nuisance and may be abated as provided in Sections 1-10 and 1-11 and/or under state law.” SECTION 3. That in accordance with Section 88.51.060 of the Azusa Development Code, the City Council hereby approves said Ordinance No. 2016-O1 based on the following findings: That the proposed zoning code amendment is consistent with the goals, policies, and objectives of the General Plan, any applicable specific plan, development agreement, owner participation agreement or disposition and development agreement. General Plan Chapter 3: The Built Environment – Infrastructure Goals and Policies 1.4, call to “Minimize electrical consumption through site design, use of efficient system, and other techniques.” The indoor cultivation of cannabis requires large amount of energy to power the heat lamps. Therefore, the proposed code amendment would prohibit the cultivation of cannabis and minimize electrical consumption. General Plan Chapter 3: The Built Environment – Infrastructure Goals and Policies 2.6, call to “Minimize water consumption through site design, use of efficient systems, and other techniques.” The cultivation of cannabis requires significant daily water consumption. Therefore, the proposed code amendment would prohibit the cultivation of cannabis and minimize water consumption. General Plan Chapter 3: The Built Environment – Building and Property Maintenance Goals and Policies 11.0, call to “Ensure the proper maintenance of buildings and properties.” Cultivation can impair building maintenance and safety. For example, the increased moisture necessary to grow indoors can create excessive mold growth and structural damage. Therefore, the code amendment would prohibit the cultivation of cannabis and diminish possible building and property maintenance. Ordinance No. 2016-O1 January 5, 2016 Page 5 of 6 General Plan Chapter 4: Economy and Community – Public Services Goals and Policies 1.0, call to “Protect the community from criminal activity, reduce the incidence of crime, and provide other necessary services with the city.” The cultivation, transportation, and distribution of cannabis can create problems relating to public health and safety. This type of use can create nuisance activity such as loitering and criminal activity in business and residential districts. Specifically mobile delivery can create issues relating to responsibility and resources to monitor and enforce state law, questions of patient qualification, and risks relating to the high use of large sums of cash for mobile transactions. Therefore, the proposed code amendment would prohibit the cultivation, transportation, and distribution of cannabis and reduce crime. General Plan Chapter 5: Natural Government – Air Quality Goals and Policies 1.0, call to “Improve air quality in Azusa and reduce exposure to air pollutants.” The cultivation of cannabis can create air quality issues by the inadequate ventilation combined with the use of pesticides and fertilizers in an enclosed space. Therefore, the proposed code amendment would prohibit the cultivation of cannabis and diminish in possible air quality issues. SECTION 4. Based on the entire record before the City Council, all written and oral evidence presented to the City Council, and the findings made in this Ordinance, the City Council of the City of Azusa hereby adopts the code amendment, as set forth in the attached Exhibit “A” to this Resolution. SECTION 5. The Secretary shall certify to the adoption of this Ordinance. PASSED, APPROVED and ADOPTED the 5th day of January, 2016. ___________________________________________ Joseph Romero Rocha Mayor ATTEST: ___________________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) ss. CITY OF AZUSA ) Ordinance No. 2016-O1 January 5, 2016 Page 6 of 6 I HEREBY CERTIFY that the foregoing Ordinance No. 2016-O1, was duly introduced and placed upon first reading at a regular meeting of the Azusa City Council on the 5th day of January, 2016, and that thereafter, said Ordinance was duly adopted and passed at a regular meeting of the Azusa City Council on the ___ day of ___, ___ by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ___________________________________________ Jeffrey Lawrence Cornejo, Jr. City Clerk APPROVED AS TO FORM: ___________________________________________ Best Best & Krieger, LLP City Attorney