Report Prepared by: Kenneth Rozell, Senior Deputy City Attorney, City Attorney’s Office, and Kim Espinosa, Planning Manager, Development Services Department
Title
SUBJECT: Zoning Ordinance Amendment #16-02 Regarding Medical Marijuana Dispensaries, Deliveries, and Cultivation for Qualified Patients
REPORT IN BRIEF
Consider adoption of an ordinance authorizing medical marijuana dispensaries (subject to specific conditions and requirements), delivery of medical marijuana from licensed dispensaries, and limited indoor cultivation of medical marijuana for qualified patients.
RECOMMENDATION
City Council - Adopt a motion to:
A. Adopt a Negative Declaration and Introduce Ordinance 2464 that would allow medical marijuana dispensaries in the Professional/Commercial Office (C-O) zone with a conditional use permit once the City Council adopts additional regulations; allow delivery of medical marijuana from licensed dispensaries; and allow limited indoor growth of medical marijuana (up to 6 plants per lot) for qualified patients under specific circumstances:
“An Ordinance of the City Council of the City of Merced, California, Amending Chapter 20.84, “Medical Marijuana and Cultivation” and amending Sections 20.20.040 “Conditional Uses,” of the Merced Municipal Code regarding the zoning of medical marijuana dispensaries as conditional uses”.
AND
B. Approving a supplemental appropriation in Fund 017 in the amount of $2,260 to pay for State filing fees for the Negative Declaration and allowing the Finance Officer to make the necessary budget adjustments.
Body
ALTERNATIVES
1. Deny the request; or,
2. Refer back to staff for reconsideration of specific items (specific items to be addressed in City Council motion); or,
3. Continue to a future City Council meeting (date and time to be specified in City Council motion).
AUTHORITY
City of Merced Charter, Section 200.
CITY COUNCIL PRIORITIES
Not Applicable.
DISCUSSION
At the meeting of July 18, 2016, the City Council by a 4 to 3 vote adopted a motion directing that an ordinance be drafted for consideration at the August 1, 2016 meeting that would:
1. Allow medical marijuana dispensaries as a conditional use in the C-O (Commercial Office) District;
2. Allow the indoor growth of six marijuana plants for qualified patients; and
3. Allow deliveries of medical marijuana from licensed dispensaries.
The motion also included language stating that the applications for medical marijuana dispensaries would not be allowed until specific regulations regarding the dispensaries had been adopted by the City Council. This draft ordinance is included as Attachment 1 for consideration by the City Council.
Background
The July 18, 2016 motion was the culmination of a number of meetings regarding medical marijuana. The City Council held its first study session and public hearing on medical marijuana issues on January 4, 2016 in response to 2015 changes in state law regarding medical marijuana. The City Council held subsequent study sessions regarding medical marijuana on March 1, 2016 and April 20, 2016.
At the April 20, 2016 meeting, the City Council directed that staff prepare an ordinance relating to medical marijuana dispensaries, delivery of medical marijuana and limited cultivation of medical marijuana (both indoors and outdoors) under specific circumstances.
After extensive public testimony and discussion by the City Council, the City Council directed staff to prepare an ordinance regarding medical marijuana. This draft ordinance was presented to the Planning Commission on May 18, 2016. At that public hearing, the Planning Commission recommended that the ordinance be amended to only allow indoor growth and to limit the number of plants to six per lot.
Both the ordinance drafted in response to the City Council direction on April 20, 2016 and the modifications recommended by the Planning Commission at its May 18, 2016 meeting were presented to the City Council at a public hearing on July 5, 2016. After extensive discussions by the City Council, two motions were made to modify the proposed medical marijuana regulations. Both motions failed by 3-3 votes, with Councilmember Lor absent. Given the failure of both motions, the City Council then voted to continue the public hearing to July 18, 2016 for further deliberation.
At the July 18, 2016 public hearing, the City Council took further public testimony and then deliberated regarding the medical marijuana regulations. One motion was made regarding proposed medical marijuana regulations, but was withdrawn prior to being voted on by the City Council. A second motion was made by Council Member Belluomini regarding medical marijuana regulations. This motion passed on a 4-3 vote. The provisions of this motion were incorporated into the ordinance that is currently before the City Council.
IMPACT ON CITY RESOURCES
There is $2,260 in FY 2015-16 savings to carry over into FY 2016-17 for the supplemental appropriation.
ATTACHMENTS
1. Draft Ordinance
2. Agenda Packet from July 18, 2016 meeting.