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2011/01/18ANAHEIM CITY COUNCIL SPECIAL MEETING OF JA NUARY 18, 2011 The special City Council session of January 18, 2011 was called to order at 11:06 A.M. in the Chambers of Anaheim City Hall located at 200 South Anaheim Boulevard. A copy of the agenda was posted on January 14, 2011 on the kiosk outside City Hall. PRESENT: Mayor Tom Tait and Council Members: Gail Eastman, Lord Galloway, Kris Murray and Harry Sidhu. STAFF PRESENT: City Manager Tom Wood, City Attorney Cristina Talley, and City Clerk Linda Andal ADDITIONS /DELETIONS TO CLOSED SESSION: None PUBLIC COMMENTS ON CLOSED SESSION: None Council moved to closed session to consider the following item: CLOSED SESSION: 1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Subdivision (a) of Section 54956.9 of the Government Code) Name of Case: Qualified Patients v. City of Anaheim, et al, Orange County Superior Court, Case No. 07CC09524; 4 th District Court of Appeal, Case No. G040077 Council returned from closed session to reconvene the special meeting at 11:38 A.M FLAG SALUTE: Council Member Eastman Mayor Tait called to order the Special Meeting of the Anaheim Redevelopment Agency for a joint public comment session with the City Council. ADDITIONS /DELETIONS TO THE AGENDA: None PUBLIC COMMENTS (all agenda items except public hearings): Jill Kanzler, SOAR, explained this organization was a coalition of more than 10,000 Anaheim residents, community leaders and businesses that supported and advocated for the Anaheim resort district. She reaffirmed SOAR's full support of the ARTIC project as one of its key policy goals was to improve transportation in the City. Enrique Chavez, resident of West Chestnut Street, supported the emergency moratorium on medical pot dispensaries. He asked for clarification on the ordinance provisions, specifically how it impacted the dispensary located on his street. Ron Fisher, West Chestnut Street, was in agreement with the previous speaker and thanked Council for their swift response in drafting this ordinance. Kay Marie Couter, West Chestnut Street, also endorsed both speaker's comments and thanked staff and council for their immediate response. She remarked it was disturbing for her to see a marijuana dispensary located in her neighborhood that was 99 percent residential. Council Special Meeting Minutes of January 18, 2011 Page 2 of 5 Mayor Tait adjourned Council session at 11:46 A.M. to consider the Redevelopment Agency special meeting agenda, and reconvened the City Council special session at 12:23 P.M. CONSENT CALENDAR: Mayor Pro Tern Sidhu removed Item No. 14 from the consent calendar for further discussion. Council Member Galloway then moved to waive reading in full of all ordinances and resolutions and to adopt the balance of consent calendar in accordance with the reports, certifications and recommendations furnished each council member and as listed on the balance of the consent calendar, seconded by Council Member Eastman. Roll Call Vote: Ayes — 5: Mayor Tait and Council Members: Galloway, Eastman, Murray and Sidhu. Noes — 0. Motion Carried 8. RESOLUTION NO. 2011 -005 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and authorizing the execution of a Cooperation AGR -6631 Agreement (La Palma Park Public Improvements) by and between the Anaheim Redevelopment Agency and the City of Anaheim and making certain findings in connection therewith (related to Agency Item No. 01). 9. RESOLUTION NO. 2011 -006 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and authorizing the execution of a Cooperation AGR -6632 Agreement (Stadium Public Improvements) by and between the Anaheim Redevelopment Agency and the City of Anaheim and making certain findings in connection therewith (related to Agency Item No. 02). 10. RESOLUTION NO. 2011 -007 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and authorizing the execution of a Cooperation AGR -6633 Agreement (West Anaheim Public Improvements) by and between the Anaheim Redevelopment Agency and the City of Anaheim and making certain findings in connection therewith (related to Agency Item No. 03). 11. RESOLUTION NO. 2011 -008 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and authorizing the execution of Amendment No. 1 AGR -4183 to Cooperation Agreement (OCTA Go Local Program Study) by and between the Anaheim Redevelopment Agency and the City of Anaheim and making certain findings in connection therewith (related to Agency Item No. 04). 12. RESOLUTION NO. 2011 -009 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ANAHEIM approving and authorizing the execution of Amendment No. 1 AGR -3995 to Cooperation Agreement (Anaheim Colony Capital Improvements) by and between the Anaheim Redevelopment Agency and the City of Anaheim and making certain findings in connection therewith (related to Agency Item No. 05). 13. Approve and authorize the City Manager to execute and administer the Cooperation Agreement with the Redevelopment Agency and find that the sale of certain real property provided for in the Agreement is in the best interest of the City (Anaheim Blvd. AGR -6634 Triangle (no site address); 1730 Anaheim Way; 106 S. Manchester; Utility Surplus Parcel (no site address); Substation Block Parcel (no site address); 1445 S. Anaheim Blvd.; and 915 S. State College Blvd) (related to Agency Item No. 06). Council Special Meeting Minutes of January 18, 2011 Page 3 of 5 END OF CONSENT: 14, ORDINANCE NO. 6202 (ADOPTION) AN URGENCY ORDINANCE OF THE CITY OF ANAHEIM to adopt an interim measure imposing a moratorium on the establishment M142 of medical marijuana dispensaries and declaring the ordinance as an emergency measure which shall take effect immediately ( A copy of the full text of the proposed Ordinance is available for review in the Office of the City Clerk) City Attorney Cristina Talley reported this item was to consider an interim urgency ordinance to impose a temporary moratorium on the establishment of medical marijuana dispensaries in the City. In 1996, she pointed out, the California voters, by initiative, approved Proposition 215, the Compassionate Use Act, which was codified into the Health and Safety Code. The purpose of that act was to allow seriously ill people to obtain and use marijuana under certain specific circumstances. In 2003, she stated, the State legislature enacted SB 420, the medical marijuana program act, which provided additional statutory guidance in terms of using marijuana and allowed cities to enact ordinances or rules and regulations to further regulate that use. One of the purposes of both laws was to encourage federal and state governments to implement a plan and to provide for the safe and affordable distribution of marijuana to all patients needing it for medicinal purposes. Currently, she explained, neither the federal nor the state government stepped forward to implement a plan and cities were left on their own to take any regulatory efforts needed. She reported the statutory scheme did not explicitly address the role of dispensaries nor did it require cities to provide for or allow the establishment of these uses. Anaheim then enacted an ordinance that prohibited establishment of these dispensaries within the city. Shortly thereafter, the City was sued and that matter was still pending in California Superior Court. She indicated Anaheim prevailed initially on the grounds federal law preempted state law, and that matter went to the court of appeals which disagreed and sent it back down to trial court. The City was now back in the Trial Court and awaiting a trial date to rule on the issue of whether or not state law preempted the City ordinance which reflected an absolute ban on the establishment of these dispensaries in the City. Before Council, Ms. Talley remarked, was consideration of a moratorium ordinance. There had also been substantial documentation gathered by the California Chiefs' of Police Association that provided anecdotal information showing various instances of the secondary effect of these establishments throughout the state and that information was provided to Council and submitted to the City Clerk for the administrative record. She ended her presentation explaining this 45 day moratorium would provide the City an opportunity to study the issue. She added that the ordinance would take effect immediately, and if adopted, would mean on a going forward basis, no establishment would be allowed to open for business during the period of this moratorium. It would not, however, effect any establishment legally operating in the City of Anaheim prior to the adoption of this moratorium ordinance. Police Chief Welter provided a brief report on the current pot dispensary establishments in the City. He reported there were 27 dispensary sites currently in the City plus about six that were mobile units. Currently, he remarked, the Department responded to any complaints which usually related to traffic, loitering, and noise. As of yet, he added, there were no serious crimes reported, however, he pointed out there was a wealth of information throughout the State regarding crime activity in dispensaries. Staff believed that many crimes were not reported by dispensary establishments due to fear of prosecuting on the part of establishments engaged in a covert industry whose sales could reach $20,000 a day. In response to a question about underage kids having access to marijuana, the Chief replied the dispensaries provided the name of a physician providing prescriptions and all that was required was a prescription and convince the dispensary staff the individual was 18 years of age. That presented another Council Special Meeting Minutes of January 18, 2011 Page 4 of 5 problem in that, unlike pharmaceutical medications, the dosage levels were not regulated. He added the Department had not been performing active investigations on these sites as it would require extensive manpower and hours of investigations. He explained that many agencies including the Orange County Sheriffs had done investigations which lasted close to a year, sent them to the District Attorney for prosecution which resulted in convictions and probation. At that time the dispensary could move, change operations slightly and keep on working, resulting in a not very productive investigation, unless there was a complainant who was a victim of a robbery or stated a son or daughter purchased marijuana under age. Mayor Pro Tem Sidhu was supportive of the moratorium to give the City some time to study the issues. Council Member Murray asked why the initial time period was selected for 45 days and Ms. Talley responded it was a statutory requirement however it could be extended up to a period of two years. Council Member Murray asked what enforcement was available for establishments operating without a business license with Ms. Talley responding, under this moratorium, if a business was operating without a license, action could be taken and the operator could not then apply for a license until the moratorium ended. Additional discussion on various concerns related to pot dispensaries occurred. Ms. Talley also pointed out Anaheim Code did not list medical marijuana dispensaries as a use in the zoning code and needed to determine how to classify that use during the moratorium. Sheri Vander Dussen, Planning Director, reported staff would be working closely with the City Attorney's office and Police Department to identify any medical marijuana dispensaries that do not have business licenses. In addition, some of those businesses had licenses but for other permitted uses, such as sale of candies or herbal supplements, and staff would look into them. Currently there were no licensed medical marijuana dispensaries in the City, but the issue staff would have to work most closely with was if those establishments were doing some legitimate business in addition to the sale of medical marijuana. A list of all of those facilities was available and she reported staff was prepared to move on that right away. Council Member Murray stated it was her understanding that SB 420 was to provide medical marijuana as medicinal use only for critical care patients. As such, she added, she was at a loss to see that the City's hands were tied at the local government level to properly regulate it for that purpose. That was something she would like to continue to help advocate for from a policy standpoint. She felt the state should provide for the safe and affordable distribution of marijuana for medicinal purposes only and it should be regulated through the medical community through a licensed pharmacy and not through boutique businesses which were popping up around the City with little to no regulation or oversight. For City management, the Chief of Police, and all those responsible for regulating businesses within the city, she hoped to see every single mechanism at their disposal used to make sure the community was protected. Council Member Eastman asked where that puts the City in the process of putting dispensaries out of business. Ms. Talley responded staff would be in a position to bring back to the Council an option to seek civil injunctive relief to prevent these businesses from going forward. This would take time to determine the status of the various businesses operating in the city, any licenses under which they were operating and to implement a code update before returning to Council for further direction or authorization. Other recommendations and /or suggestions were offered. Mayor Tait recommended that Council allow staff time to study this issue in full and bring options back to Council at a future date. Mayor Pro Tern Sidhu moved to approve Ordinance No. 6202, AN URGENCY ORDINANCE OF THE CITY OF ANAHEIM to adopt an interim measure imposing a moratorium on the establishment of medical marijuana dispensaries and declaring the ordinance as an emergency measure to take effect immediately, seconded by Council Member Murray. Roll Call Vote: Ayes Council Special Meeting Minutes of January 18, 2011 Page 5of5 — 5: Mayor Tait and Council Members: Eastman, Galloway, Murray and Sidhu. Noes — 0. Motion Carried Report on Closed Session Actions: None Council Communications: Council Member Murray thanked staff for their comprehensive and thorough efforts in addressing critical issues before the City. She announced the following upcoming events: the Mayor's State of the City on January 25, the Miss America Pageant on January 30 and YMCA 100 Year Kick -off on February 24. Council Member Galloway wished the Mayor the best on his first State of the City to be held on January 25 Mayor Pro Tern Sidhu thanked the residents for coming to the meeting and expressing their concerns regarding marijuana dispensaries on such short notice. He announced Youth Leadership America would be hosting their annual program honoring graduates on January 27 and invited the community to attend. Council Member Eastman also thanked the residents for expressing their concerns regarding marijuana dispensaries taking time out of their day to attend the special meeting. She also appreciated staff's time and efforts to allow Council to take care of the business at hand. Mayor Tait thanked staff spoke of the budget workshop scheduled for January 25, 2011 and invited all employee associations as well as the public to attend. The purpose of the workshop was for all to understand the depth of the City's economic problems with the aim of coming up with solutions. Adjournment: At 12:57 P.M., Mayor Tait adjourned the January 11, 2011 Special Meeting of the City Council. R pec ully subm' ted, in Linda N. Andal, CIVIC City Clerk