REQUEST FOR COUNCIL ACTION

ORDINANCE:  O-2010-1

SUBJECT:  Ordinance regarding amendments to Title 5 and Title 17 of the Lakewood municipal Code relating to medical marijuana

RECOMMENDATION:  City Council approval of the proposed ordinance

FUNDING SOURCE:  General Fund – fees as described in the ordinance

SUMMARY AND BACKGROUND OF SUBJECT MATTER: 
On December 7, 2009 City Council and Planning Commission held a study session regarding a draft medical marijuana ordinance.  On January 6, the Planning Commission held a public hearing on those portions of the draft Ordinance that apply to the City’s Zoning Ordinance (Title 17) and adopted a resolution by a vote of 5 to 0 recommending that City Council adopt the zoning portions of the draft medical marijuana Ordinance.  In the same resolution, the Planning Commission recommended that City Council consider allowing medical marijuana Care-giver Facilities in the Neighborhood subdistrict of the Colfax Mixed Use zone district (CMU-N), whether throughout the CMU-N subdistrict or only on those parcels that front Colfax Avenue within the Neighborhood subdistrict.  Attached are the Planning Commission’s resolution and minutes and the staff report provided to the Commission.
The proposed Ordinance is attached in two forms dated January 19, 2010.  The first is the same document Council received for the December study session, but with several red-lined revisions.  The second is a clean version that incorporates all of the revisions from the red-lined version.
It is important to note that the red-lines in the attached Ordinance are clarifications rather than substantive changes, and that all of the revisions were either (a) suggested at or in connection with the December study session; or (b) recommended by staff as a result of further review or research related to this evolving issue.  Those red-lined changes made to Sections two through fifteen of the draft would affect the Zoning Ordinance (Title 17) and were therefore presented to the Planning Commission prior to its deliberations on January 6. 
The red-lined clarifications are as follows:

• Amending the definition of “Care-giver Facility” to include “preparing and processing” medical marijuana at Care-giver Facilities.
• Clarifying that the licensing requirements apply to all Care-giver Facilities, regardless of whether they opened before the adoption of the Ordinance.  The new paragraph allows Facilities that opened and submitted a complete sales tax license application before adoption of the Ordinance to continue operating pending final action by the City Clerk on a Care-giver Facility license application.
• Clarifying that those Facilities which received a valid sales tax license from the City but began operating in a zone district that would not allow Care-giver Facilities under the proposed Ordinance would be considered legal nonconforming uses (but would still be required to obtain a license).
• Clarifying that individuals who would be subject to a background investigation include shareholders of corporations, but only those individuals who own at least 10% of the company’s stock.
• Referencing the provision in Amendment 20 that allows individuals who have applied for but not received state registration cards to obtain medical marijuana.
• Clarifying that the background investigation conducted on applicants for Care-giver Facility licenses includes review of financial records.
• Clarifying that the “filing date” for an application shall be the date on which the Clerk accepts an application that is complete in every detail.
• Adding a paragraph documenting that complete license applications will be processed in the chronological order received by the City for purposes of applying the location restriction.
• Clarifying that an application may be denied based on the background investigation of any of the individuals who must be subjected to a background check, not just based on the investigation of the individual applicant.
• Amending the provision prohibiting the display of marijuana to be consistent with the treatment of “head” shops by prohibiting only the display of marijuana and products containing marijuana.
• Clarifying that the only location within the City of Lakewood where a Care-giver can lawfully cultivate, process or store medical marijuana is at the Care-giver Facility; the previous language could be read as attempting to regulate Care-giver activities outside of the City.
• Adding provision to allow Care-giver Facilities on parcels in the CMU-C and CMU-R sub-districts that do not front on Colfax.  These parcels have consistently been included on the map and in discussions of the draft Ordinance, but were inadvertently omitted from the text of the draft Ordinance that was presented at the study session.
• Revising all sections referencing the zone districts that would allow Care-giver Facilities for clarity to include the name of the zone district, thereby making it easier for the reader to understand which districts are being amended to allow Care-Giver Facilities; the previous draft referred only to the section numbers in the Municipal Code.
• Revising the language in the section regarding Planned Developments that had created some confusion, leading some to believe that Care-Giver Facilities would only be permitted in PD zone districts.  The revision is intended to make the section clearer without changing the substance.
• Revising the section regarding parking to include the title of the table that establishes minimum parking standards for Care-giver Facilities.

As mentioned above, Planning Commission has recommended that City Council consider allowing Care-giver Facilities in the Neighborhood subdistrict of the Colfax Mixed Use district, either throughout the subdistrict or only on those parcels that front Colfax Avenue within the Neighborhood subdistrict.  The attached ordinance has not been changed to include the Neighborhood subdistrict.  Rather, Staff has attached a map illustrating the two areas that are zoned CMU-N, with two different colors differentiating between those parcels in CMU-N that front Colfax and those that do not. Parcels that front Colfax are those that share a property line with the Colfax public right-of-way.  Whether a building is oriented toward Colfax or a side street does not determine whether a parcel fronts Colfax.
Discussion has occurred about whether to require a buffer between Care-giver Facilities and schools.  The draft Ordinance does not include such a buffer.  However, a map illustrating a 1000’ buffer from schools is attached for Council’s consideration should the issue arise at the public hearing.  The properties identified as “schools” on the map include:

• Public or private elementary, middle or high schools; and
• Athletic facilities affiliated with any of the included schools. 

The buffer would be measured from a property line of the schools and athletic facilities to a property line of a property on which a Care-giver Facility would be proposed.  The parcels shown in black on the attached map are those that would be allowed to have Care-giver Facilities without a school buffer but would not be allowed to have Care-giver Facilities with a 1000’ buffer.
At the time of Council’s second reading and public hearing of the proposed ordinance, staff will have available amendments, to implement any of the following should Council consider motions to make such amendments:

• Allow Care-giver Facilities in all of the CMU-N zone district;
• Allow Care-giver Facilities on those parcels in the CMU-N zone district that front Colfax; and
• Prohibit Care-giver Facilities on parcels located less than 1000’ from any parcel that contains a school, including private or public elementary, middle or high schools and athletic facilities affiliated with such schools.

DATE OF FIRST READING:  January 25, 2010

DATE OF SECOND READING:  February 8, 2010

ORIGINATED BY:  City Manager’s Office

STAFF PERSON RESPONSIBLE:  Kathleen E. Hodgson, City Manager

DOCUMENT(S) ATTACHED:
Ordinance 2010-1
Redline Version
Map illustrating zone districts proposed in the ordinance for Care-giver Facilities
Map illustrating properties in the CMU-N zone district
Map illustrating schools with 1000’ buffer
Planning Commission resolution
Planning Commission minutes of the January 6, 2010 meeting
Staff report to the Planning Commission

SUBMITTED BY:
Kathleen E. Hodgson, City Manager

REVIEWED BY:
Joni Inman, Director, Mayor and City Manager’s Office
Kathleen E. Hodgson, City Manager

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