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File Number: 13-545 <br />revenue from such operations. <br />On July 16, 2012, pursuant to an appellate court decision that prohibited local jurisdictions <br />from banning medical marijuana dispensary operations (County of Los Angeles v. <br />Alternative Medicinal Cannabis Collective (July 2, 2012) 207 Cal.App.4th 601 (2d Distr., <br />Div. 1), the City Council decided that it would allow the moratorium to expire. The City Council <br />also directed the City Council Rules and Communications Committee to develop an ordinance <br />and amendments to the Zoning Code to allow a limited number of dispensaries to operate in <br />the City. <br />The ordinance itself is modeled after the City of Oakland’s 2011 amendments to its medical <br />marijuana dispensary ordinance. The proposed ordinance also borrows from the City and <br />County of San Francisco Department of Public Health’s regulations related to edible cannabis <br />product handling, labeling, and distribution. The ordinance is in strict compliance with the <br />California Attorney General’s August 2008 Guidelines for the Security and Non-Diversion of <br />Marijuana Grown for Medical Use. Staff also believes that the ordinance complies with the <br />common law related to the establishment and operation of medical marijuana dispensaries. <br />The ordinance’s main provisions are as follows : <br />v 2 valid permits are allowed; <br />v The City Manager may impose separate conditions of approval, including allowing later <br />hours of operation; <br />v A public hearing on the approval of a conditional use permit must be held by the Board of <br />Zoning Adjustments for any dispensary permit that is approved by the City Council ; <br />v Operating, security, recordkeeping, facilities, and signage regulations are set in the <br />ordinance; <br />v Dispensaries may only be located in the City’s industrial and commercial zoning districts , <br />and cannot be within 1,000 feet of a school, library, youth center, park and recreation <br />facility, and another dispensary, and cannot be within 500 feet of a residential zone; <br />v On-site distribution of edible cannabis products will be allowed and regulated to prevent <br />the transmission of foodborne illnesses; and <br />v Payment of a non-refundable permit application fee, an annual permit renewal fee, and <br />annual business license fee will be required. Staff is analyzing what amounts those fees <br />should be, and will provide recommendations for City Council approval at a subsequent <br />meeting. <br />The City Council should note that staff is recommending a change that is new in this version <br />of the proposed ordinance related to the effective date of the ordinance , which will affect the <br />timing of its implementation. The City Council, through numerous comments at City Council <br />Rules & Communications Committee and full City Council meetings, exhibited a clear <br />legislative intent that medical marijuana dispensary operations should be a revenue source to <br />the City. The City Council was advised on multiple occasions that a ballot measure that <br />approves a tax on the percentage of gross receipts from the operations of such dispensaries, <br />approved by City voters, would need to occur in order for the City to realize significant <br />revenue from the operations of such dispensaries within City boundaries. As such, staff <br />recommends that Section III of the ordinance (Effective Date) provide that the ordinance will <br />take effect upon approval of a tax measure by the City electorate . Staff recommends that the <br />City Council place such a measure on the November 2014 ballot. No dispensary, in effect, <br />Page 2 City of San Leandro Printed on 10/30/2013