HomeMy WebLinkAboutCOUNCIL - AGENDA ITEM - 03/03/2015 - SECOND READING OF ORDINANCE NO. 032, 2015, AMENDINAgenda Item 19
Item # 19 Page 1
AGENDA ITEM SUMMARY March 3, 2015
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
Don Vagge, Police Deputy Chief
SUBJECT
Second Reading of Ordinance No. 032, 2015, Amending Section 15-609 of Article XVII of the Code of the City
of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities to
Certain Retail Marijuana Stores or Retail Marijuana Product Manufacturing Facilities.
EXECUTIVE SUMMARY
Ordinance No. 032, 2015, adopted on First Reading on February 17, 2015, by a vote of 4-3 (nays: Campana,
Troxell, Weitkunat) removes the existing prohibition on the wholesale of marijuana between licensed
businesses, not limiting the sales to Fort Collins establishments. When the retail marijuana regulations were
adopted, they included a prohibition on any wholesaling of marijuana between businesses. This was included,
and recommended, as a disincentive for marijuana businesses to grow more than they could sell through their
licensed business. Fort Collins is the only community to have this restriction and local businesses are
interested in relaxing this regulation.
STAFF RECOMMENDATION
Staff recommends adoption of the Ordinance on Second Reading.
ATTACHMENTS
1. First Reading Agenda Item Summary, February 17, 2015 (w/o attachments) (PDF)
2. Ordinance No. 032, 2015 (PDF)
Agenda Item 15
Item # 15 Page 1
AGENDA ITEM SUMMARY February 17, 2015
City Council
STAFF
Ginny Sawyer, Policy and Project Manager
Don Vagge, Police Deputy Chief
SUBJECT
Items Relating to Marijuana Code Amendments.
EXECUTIVE SUMMARY
A. First Reading of Ordinance No. 029, 2015, Amending the Code of the City of Fort Collins to Regulate
Cultivation of Marijuana in Locations Other Than Retail Marijuana Establishments and Medical Marijuana
Businesses.
B. First Reading of Ordinance No. 030, 2015, Adding Section 17-194 to the Code of the City of Fort Collins to
Prohibit the Use of Flammable Gases, Flammable Solvents, Flammable Liquids, and/or Alcohol in the
Extraction of THC or Other Cannabinoids in Locations Other Than Licensed Medical and Retail Marijuana
Manufacturing Products Facilities and Deleting Subsection (b)(5) of Section 12-142 of the Code.
C. [OPTION A]
First Reading of Ordinance No. 031, 2015, Amending Section 15-609 of Article XVII of the Code of the City
of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation
Facilities to Certain Retail Marijuana Stores or Retail Marijuana Cultivation Facilities.
Or:
[OPTION B]
First Reading of Ordinance No. 032, 2015, Amending Section 15-609 of Article XVII of the Code of the City
of Fort Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation
Facilities to Certain Retail Marijuana Stores or Retail Marijuana Product Manufacturing Facilities.
The purpose of this item is to address safety and nuisance gaps in the existing codes and to offer options for
potential changes to the existing marijuana wholesale prohibition.
Ordinance No. 029, 2015, amends City Code to address non-licensed growing (caregivers or personal use) in
non-residential settings. It also allows for greater flexibility in determining what lighting is deemed safe for
residential growing.
Ordinance No. 030, 2015, prohibits the use of flammable gases and liquids, carbon dioxide, and alcohol in the
extraction of THC except in a licensed facility.
Ordinances Nos. 031 and 032, 2015, remove the existing prohibition on the wholesale of marijuana between
licensed businesses. Option A allows sales only to City-licensed establishments; Option B is not limited to Fort
Collins establishments.
ATTACHMENT 1
Agenda Item 15
Item # 15 Page 2
STAFF RECOMMENDATION
Staff recommends the adoption of Ordinances No. 029 and No. 030, 2015 on First Reading.
Should Council opt to remove the wholesale prohibition, staff recommends adoption of Ordinance No. 031,
2015.
BACKGROUND / DISCUSSION
Fort Collins has been on the leading edge of incorporating and regulating medical, retail, and personal
marijuana use and practices. Because this a new and developing arena, anticipating all practices, impacts,
and community desires has not been possible. Staff has continued to meet throughout the last year to consider
needed improvements and adjustments to our existing codes. The proposed Ordinances are a result of staff
experience or community dialogue.
Ordinance No. 029, 2015, Amending the Code of the City Of Fort Collins to Regulate Cultivation of
Marijuana in Locations Other than Retail Marijuana Establishments and Medical Marijuana Businesses.
While licensed grows are heavily regulated there currently are not any regulations in place for caregivers or
personal growers who choose to rent warehouse/industrial space for these grow operations. This ordinance
requires separate enclosures for each grow, identification on each enclosure identifying the responsible party
and providing proof of legal plant count, contents of each enclosure must be viewable, and requires control of
odors similar to licensed businesses.
This Ordinance also provides the opportunity to adjust to the changing grow-light industry. The current
cultivation ordinance regulates and limits the type of lighting allowed in residential units. Staff has received
pushback for not allowing high intensity (HID) lighting which runs very hot and requires fans to blow air across
them to keep them cool. The industry is rapidly changing so staff is recommending a language change that
would say only CFL/LED or lighting approved by the building official is allowed.
Ordinance No. 030, 2015, Adding Section 17-194 to the Code of the City of Fort Collins to Prohibit the
Use of Flammable Gases, Flammable Solvents, Flammable Liquids, and/or Alcohol in the Extraction of
THC or Other Cannabinoids in Locations Other Than Licensed Medical and Retail Marijuana
Manufacturing Products Facilities and Deleting Subsection (b)(5) of Section 12-142 of the Code.
Fort Collins has seen an increase in explosions as a result of marijuana extraction. This operation is heavily
regulated in licensed businesses but not at all in residential units by personal growers/users. Banning
flammable gases was originally included in the cultivation ordinance but evidence shows people are extracting
with flammable gases and other hazardous materials without actually growing. This Ordinance addresses this
activity in Chapter 17 (so police can enforce) and removes it from the cultivation ordinance. Language has also
been expanded to include gases, solvents, alcohol, and carbon dioxide.
Ordinance No. 031, 2015, Amending Section 15-609 of Article XVII of the Code of the City of Fort
Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities
to Certain Retail Marijuana Stores or Retail Marijuana Cultivation Facilities. (Option A)
or
Ordinance No. 032, 2015, Amending Section 15-609 of Article XVII of the Code of the City of Fort
Collins to Allow the Sale or Distribution of Retail Marijuana from Retail Marijuana Cultivation Facilities
to Certain Retail Marijuana Stores or Retail Marijuana Product Manufacturing Facilities. (Option B)
When the retail marijuana regulations were adopted, they included a prohibition on any wholesaling of
marijuana between businesses. This was included, and recommended, as a disincentive for marijuana
businesses to grow more than they could sell through their licensed business. Fort Collins is the only
Agenda Item 15
Item # 15 Page 3
community to have this restriction and our local businesses are interested in relaxing this regulation. Options
and considerations are listed in the table below.
ACTION CONSIDERATIONS
No Change Provides disincentive for businesses to grow more than they
can sell.
Tightest control on tracking of plants and products.
May put local businesses at a disadvantage.
Sales between local businesses Gives greater flexibility and options to local businesses.
Maintains straightforward plant and product tracking.
Currently, local law enforcement does not have access to the
State tracking system. By only having local sales, law
enforcement can more readily contact local businesses to
ensure legal sales.
Sales between all licensed
businesses in Colorado
Puts local businesses on even playing field statewide.
Difficult for law enforcement without access to State tracking
system. Would be reliant on out-of-town agencies.
PUBLIC OUTREACH
The City Code amendments in Ordinance Nos. 029 and No. 030, 2015, were shared with the community at the
October 4, December 12, and February 9 open houses. Wholesale options were presented at the February 9
open house. The amendment included in Ordinance No. 029, 2015 is a direct result of open house feedback.
ATTACHMENTS
1. Powerpoint presentation (PPTX)
- 1 -
ORDINANCE NO. 032, 2015
OF THE COUNCIL OF THE CITY OF FORT COLLINS
AMENDING SECTION 15-609 OF ARTICLE XVII OF THE CODE OF THE
CITY OF FORT COLLINS TO ALLOW THE
SALE OR DISTRIBUTION OF RETAIL MARIJUANA FROM RETAIL MARIJUANA
CULTIVATION FACILITIES TO CERTAIN RETAIL MARIJUANA STORES OR RETAIL
MARIJUANA PRODUCT MANUFACTURING FACILITIES
WHEREAS, the City Code currently restricts the sale of retail marijuana from a retail
marijuana cultivation facility to a retail marijuana store or retail marijuana products
manufacturing facility that is owned and operated in the City by the licensee of the retail
marijuana cultivation facility; and
WHEREAS, staff has evaluated the possible removal of this restriction so as to allow
licensees to sell retail marijuana from their retail marijuana cultivation facilities to retail
marijuana stores or retail marijuana products manufacturing facilities anywhere in Colorado; and
WHEREAS, the City Council has determined that the proposed amendments to the City
Code are in the best interests of the City.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
FORT COLLINS that Chapter 15 of the Code of the City of Fort Collins is hereby amended to
read as follows:
Sec. 15-609. Retail marijuana cultivation facilities.
(a) Only a licensed retail marijuana store or retail marijuana products manufacturing
facility may be licensed as, or may operate, a retail marijuana cultivation facility in the
City.
(b) All retail marijuana cultivation facilities shall have their harvest and production
batches tested for labeling purposes prior to any sale of marijuana or marijuana product.
(c) Retail marijuana cultivation facilities may sell or otherwise distribute retail
marijuana only to licensed retail marijuana stores or licensed retail marijuana products
manufacturing facilities that are in good standing with no pending violation(s) or current
suspended sentence as a result of a violation(s) of Article XVII, Chapter 15 of the City
Code, or other applicable local regulatory provisions; Article XVIII, Section 16 of the
Colorado Constitution; the Colorado Retail Marijuana Code; and the Colorado Retail
Marijuana Enforcement Division Rules and Regulations.
- 2 -
Introduced, considered favorably on first reading, and ordered published this 17th day of
February, A.D. 2015, and to be presented for final passage on the 3rd day of March, A.D. 2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk
Passed and adopted on final reading on this 3rd day of March, A.D. 2015.
__________________________________
Mayor
ATTEST:
_____________________________
City Clerk