HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 07/02/2013 - FIRST READING OF ORDINANCE NO. 088, 2013, APPROPRIDATE: July 2, 2013
STAFF: Wanda Nelson
AGENDA ITEM SUMMARY
FORT COLLINS CITY COUNCIL 10
SUBJECT
First Reading of Ordinance No. 088, 2013, Appropriating Unanticipated Revenue in the General Fund to Fund the
Costs Associated with the Medical Marijuana Licensing Authority.
EXECUTIVE SUMMARY
The purpose of this Ordinance is to appropriate medical marijuana application and licensing fees to fund the services
provided by a contractual Medical Marijuana Licensing Authority.
BACKGROUND / DISCUSSION
On November 6, 2012, the registered electors of Fort Collins approved Initiative 301, reestablishing medical marijuana
businesses in Fort Collins and creating licensing provisions for such businesses. The licensing provisions included
the creation of a Medical Marijuana Licensing Authority (the “Authority”), consisting of a person appointed by the City
Manager. To fulfill the need for this service, the City solicited proposals from individuals interested in providing the
services required of the Authority, and subsequently entered into a professional services agreement with the law firm
of Widner Michow & Cox, LLP, in Centennial, Colorado, for services to be performed by Kathie Guckenberger at a rate
of $175 per hour. This rate is consistent with the rate paid for other types of hearing officers serving the City. Widner
Michow & Cox dedicates its practice to the representation of Colorado local governments, special districts, and quasi-
governmental authorities, and provides other hearing officer services for the City of Fort Collins.
When the 2013-2014 budget was developed, Initiative 301 had not yet been placed on the November ballot. Upon
approval of the initiative by the voters, staff began to develop a licensing process, fees, and rules and regulations to
provide clarity to some of the provisions in the initiative. The City began accepting applications for medical marijuana
business licenses, along with application and licensing fees, in late January 2013, with only previously licensed medical
marijuana businesses being allowed to apply for the first 90 days. The City received applications for 14 centers, 12
cultivation facilities, and two infused-products manufacturers. Application and licensing fees collected equal $63,000.
FINANCIAL / ECONOMIC IMPACTS
This Ordinance appropriates $63,000 of unanticipated revenue in the General Fund to cover the cost of services
provided by a contractual Medical Marijuana Licensing Authority. Because the City has no prior experience with the
time needed to adequately review license applications and conduct enforcement hearings (if needed), it is difficult to
project costs for 2013. As of June 14, the Authority has invoiced $8,142 for an initial meeting with staff, research and
a legal opinion on the ability of the Authority to grant conditional licenses, consultation with staff and creation of a staff
report form for license applications, the drafting of hearing procedures, and other administrative expenses associated
with establishing the Authority and its regulatory processes. As of the publication of this agenda, six application files
have been submitted to the Authority for review. By law, the Authority has 30 days to render a decision. The
Authority’s decision on the first two application files submitted are due on or before July 5. Until such time as the
Authority has completed an application file review, and invoiced the City for that review, it is difficult to estimate costs
for the remainder of 2013.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on First Reading.
ORDINANCE NO. 088, 2013
OF THE COUNCIL OF THE CITY OF FORT COLLINS
APPROPRIATING UNANTICIPATED REVENUE IN THE GENERAL FUND
TO FUND THE COSTS ASSOCIATED WITH THE MEDICAL
MARIJUANA LICENSING AUTHORITY
WHEREAS, on November 6, 2012, the registered electors of Fort Collins approved
Initiative 301, reestablishing medical marijuana businesses in Fort Collins and creating licensing
provisions for such businesses; and
WHEREAS, Initiative 301 provided for a Medical Marijuana Licensing Authority (the
“Authority”), to be a person appointed by the City Manager whose operations will be overseen
by the City Clerk’s department ; and
WHEREAS, the City began accepting applications for medical marijuana business
licenses and collecting application and licensing fees in January 2013; and
WHEREAS, in February 2013, the City solicited proposals from individuals interested in
providing the services required of the Authority; and
WHEREAS, one response to the Request for Proposals was received, and upon review
and consideration, the City entered into an agreement with the respondent to perform such
service; and
WHEREAS, funding is needed to cover the costs of the Authority's services for the
remainder of 2013; and
WHEREAS, Article V, Section 9 of the City Charter permits the City Council to make
supplemental appropriations by ordinance at any time during the fiscal year, provided that the
total amount of such supplemental appropriations, in combination with all previous
appropriations for that fiscal year, does not exceed the current estimate of actual and anticipated
revenues to be received during the fiscal year; and
WHEREAS, application and licensing fees in the amount of $63,000 have been collected
to date, and are available to cover the costs associated with establishing and operating the
Authority.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that there is hereby appropriated from unanticipated revenue in the General
Fund the sum of SIXTY-THREE THOUSAND DOLLARS ($63,000) to the City Clerk’s
Department to fund the services provided by the Medical Marijuana Licensing Authority.
Introduced, considered favorably on first reading, and ordered published this 2nd day of
July, A.D. 2013, and to be presented for final passage on the 16th day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on the 16th day of July, A.D. 2013.
_________________________________
Mayor
ATTEST:
_____________________________
City Clerk