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File Number: 12 -341 related to Medical Marijuana regulations. The material presented was a collaboration by various staff in the City Manager's and City Attorney's Offices, the Police Department and the Community Development Department. During the moratorium, staff surveyed various communities, including all cities in Alameda County and Alameda County itself. At that time, six cities had ordinances that prohibit dispensaries and cultivation: Alameda, Dublin, Emeryville, Fremont, Livermore and Pleasanton. The cities of Berkeley, Oakland and Albany, as well as Alameda County, had ordinances that allow for dispensaries. Since that time, Union City has enacted a moratorium and Newark has an ordinance prohibiting dispensaries and cultivation. The City of Hayward continues to have a de facto prohibition. (See attached Table) The medical marijuana facilities in the City of Oakland have come under considerable scrutiny, with various federal raids of facilities. Also, in March of 2012, the City of Oakland increased the total number of Medical Cannabis Dispensary Permits from four to eight permits citywide. Only one of the four received conditional permit approval at an approved site. The other three applicants were required to find sites within a specified period and must be in compliance with various safety requirements. City of Oakland staff now report that none of these four applicants have been able to execute a lease. Many property owners are now leery of renting to medical marijuana facilities because of recent federal raids. The City of Berkeley allows four dispensaries. One of these dispensaries, Berkeley Patients Group, closed its San Pablo Avenue location on May 1, 2012 after 12 '/2 years of operation. Although they will be looking for a new location, according to Berkeleyside.com, Berkeley Patients Group is closing the San Pablo dispensary because of federal government threats to seize the landlord's assets if cannabis operations continue. Berkeley Patients Group, with 13,000 members, is the largest and oldest dispensary to be impacted by U.S. Attorney's pursuit of cannabis operations throughout California. Conclusion A moratorium was established in the City of San Leandro in late 2010 for Medical Marijuana dispensaries and cultivation facilities; it was extended to September 30, 2012. Although there is still uncertainty with regard to direction from the California Supreme Court regarding the City of Riverside and City of Lake Forest cases coupled with the holding in County of Los Angeles, it appears that the most prudent course of action is to at least introduce for first reading an ordinance prohibiting dispensaries until the two California Supreme Court cases are decided. This approach prepares the City for a ban while addressing the imminent expiration of the moratorium, keeps open opportunities for future local legislation relative to medical marijuana, and does not commit the City for the next seven weeks while staff monitors and gathers information related to medical marijuana laws. Staff recommends the City Council introduce the proposed ordinance, schedule second reading for September 4, 2012, and also receive an update on the status of medical marijuana regulation by local jurisdictions. ATTACHMENTS Attachments were provided electronically and are available for review in the Community Development Department during normal business hours. Alameda County and Alameda County Cities' Approach to Medical Marijuana Dispensaries City of San Leandro Page 8 Printed on 711012012