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HomeMy WebLinkAbout2017-10-10 PUBLIC SAFETY, CODE ENFORCEMENT & NEIGHBORHOOD EMPOWERMENT CITY OF SANTA ANA CITY COUNCIL COMMITTEE ON PUBLIC SAFETY, CODE ENFORCEMENT & NEIGHBORHOOD EMPOWERMENT MINUTES SPECIAL MEETING October 10, 2017 CALL TO ORDER: Ross Annex, Room 1600 City Hall, 20 Civic Center Drive Santa Ana, California 5:44 PM ATTENDANCE: Council Committee members: Jose Solorio Juan Villegas Sal Tinajero MEMBERS ABSENT: N/A STAFF PRESENT: Cynthia Kurtz, CMO Robert Cortez, CMO Tamara Bogosian, CAO Candida Neal, PBA Jorge Garcia, CMO Alvaro Nunez, PBA Willard Holt, FMS Jason Viramontes, PD Yessenia Aspeitia, PD Elizabeth Plotnik, Recording Secretary PUBLIC SPEAKERS: Peter Katz, President of Corn-Link Chad Wanke, Land Use and Government Affairs Consultant Irma Macias, concerned resident Melahat Rafiei, Santa Ana Cannabis Association Jayson Quinones, Santa Ana Cannabis Association Jason Lilly, Kannabis Works Dispensary 1 AGENDA ITEMS 1. Proposed Ordinance Regarding Adult Use, Distribution, Cultivation, Manufacturing and Testing of Marijuana —Acting Executive Director Candida Neal, Planning & Building {Strategic Plan Goal No. 1, 1C} Recommended Action: Review the proposed ordinance and recommend adoption by the City Council at the October 17, 2017 City Council Meeting. Robert Cortez provides the Council Committee with a presentation of recommended modifications to the ordinance, sharing that the definition of and reference to delivery are consistent with Measure BB. Robert Cortez also explained that the limit of distribution licenses would be increased to 20, and that labor agreement verbiage that is in line with State requirement, would be added. As brought forward by the community, edits were made to the Operating Standards Section. In response to suggestions made at the previous meeting, Staff recommends continuing with the current location specific permits, and suggests additional items to be considered as part of the application/merit system process. Lastly, Robert explains that the in-lieu tax agreements will be based on square-footage and gross receipts tax of 8% on sales of goods. PUBLIC COMMENTS Peter Katz, concerned constituent, inquires about the Rohrbacher Amendment's upcoming expiration on October 31, 2017, and the potential affect it could have on the City's liability for dispensary raids. Tamara responds, stating that an indemnification provision was included to address the City's liability, given the uncertainty of the renewal of the Rohrbacher Amendment. Chad Wanke discusses the relocation permit, stating that the City should consider a method to transfer locations in case of a structure fire, to avoid businesses from having to start the application process again from the beginning, and to avoid loss of revenue. Chairman Solorio responds, clarifying that currently, businesses overseen by Alcoholic Beverage Control are required to reapply from the beginning in the instance of structure fire, and therefore the City will do the same. However, in the future, the possibility of relocation could be considered. He also added that since there is still a waiting list, it'd be better to go through it before allowing business locations to move. 2 Irma Macias, shares her opposition to the ordinance and the activities that it pertains to. She feels that the City can gain revenue in other ways. Melahat Rafiei, from the Santa Ana Cannabis Association, inquires about the timeline in the application process, and asks for more time to obtain operational status. She also asks Staff to consider allowing volatile manufacturing. Tamara Bogosian responds to the inquiry about operational status, stating that Staff is considering that a business could be deemed operational when license is granted, for that particular cannabis activity. Robert Cortez further clarifies that the intent is that the application process would start when the ordinance gets its second reading, which would allow sufficient time to approve licenses by January 2, 2018. Chairman Solorio asks Melahat her opinion about whether or not she envisions retail businesses wanting cultivation licenses, to which she suggests Jayson Quinones and Jason Lily provide a response. Jayson Quinones, President of Santa Ana Cannabis Association, states that it is dependent on the size of the location, in determining cultivation. Jason Lilly, of Kannabis Works, adds that 40 would be an ideal amount of distribution licenses, stating that if 20 cultivation and 20 manufacturing licenses are granted, each would need to be distributed. Melahat Rafiei shares her opinion about taxation, stating that if too expensive, the potential for black market activity increases, and asks that consideration be made for determining taxation. Chad Wanke warns that if manufacturing licenses are limited and become maxed out, other cities will potentially take advantage and in turn get the tax revenue. ACTION: Chairman Solorio: Asks Staff to provide more clarity on when applications are due, when considering the timeline of operational status, and amend the labor agreement to apply to businesses with two or more employees. Additionally, Chai,man Solorio directs Staff to consider permitting volatile manufacturing. Committee Member Tinajero: Prior to the October 17, 2017 City Council meeting, Committee Member Tinajero asks that research be conducted about volatile manufacturing and be proposed to City Council for consideration. Additionally, Committee Member Tinajero suggests consideration of increasing of the number of distribution licenses, to meet potential demand. 3 Chairman Solorio makes a recommendation that the draft ordinance be presented to Council, but requests that the labor agreement reflect what Long Beach's standard of 2 or more employees Committee Member Tinajero makes a motion to move this item to Council on October 17, 2017. MOTION: Solorio SECOND: Tinajero VOTE: AYES: Solorio, Tinajero NOES: Villegas Motion carries. COMMITTEE MEMBER COMMENTS Chairman Solorio suggests considering volatile manufacturing of cannabis be allowed in industrial zones only, with proper equipment and safety standards, as there are already a variety of manufacturing businesses in the industrial zones that are already using similar solvents. Additionally,he shares his appreciation of labor agreements being included. Co-Chair Villegas states that Medical Marijuana tax should be increased to 7% and that retail tax should be higher than 8%, to help with public safety and enforcement. Additionally, Co-Chair Villegas is concerned about the City's youth and wants to ensure after school programs are well- funded. Committee Member Tinajero recaps his involvement in creating Measure BB, stating that it was created to ensure dispensaries were built in industrial zones only, and not in commercial areas as Measure CC noted. As revenue comes in, Council can allocate funds accordingly to protect the kids. Additionally warns that if tax percentage is too high, it creates a"black market". FUTURE ITEMS ADJOURNMENT—6:41 P.M. DAVID VALENTIN Acting Chief of Police ep 4