Page 1 of 9 14-H TO: ATTENTION: FROM: SUBJECT: Honorable Mayor and Members of the City Council Jeffrey L. Stewart, City Manager Mayra Ochiqui, City Clerk Consideration and possible action to approve the Minutes of the August 13, 2018, Special Meeting of the Bellflower City Council. DATE: September 10, 2018 EXECUTIVE SUMMARY None RECOMMENDATION TO CITY COUNCIL 1) Approve the August 13, 2018, Special Meeting Minutes; or 2) Alternatively, discuss and take other action related to this item. FISCAL IMPACT None ATTACHMENT Minutes of the August 13, 2018, Special Meeting... 2
Page 2 of 9 MINUTES CITY OF BELLFLOWER 16600 Civic Center Drive Bellflower, California 90706 (562) 804-1424 1 Call to Order SPECIAL MEETING OF THE BELLFLOWER CITY COUNCIL MONDAY, AUGUST 13, 2018, 3:30 P.M. Mayor Dunton called the Special Meeting to order at 3:34 p.m. in the Council Chambers at Bellflower City Hall, 16600 Civic Center Drive, Bellflower. 2 Roll Call The following members of the City Council responded present to roll call: Mayor Ray Dunton Mayor Pro Tem Sonny R. Santa Ines Council Member Dan Koops It was moved by Mayor Pro Tem Santa Ines, seconded by Council Member Koops, and carried without objection, to excuse the absences of Council Member Garza and Council Member Schnablegger (Note: Council Member Garza previously recused on this matter due to an Employer-Client relationship conflict). Staff Participants: 3 Public Comments Jeffrey L. Stewart, City Manager Karl H. Berger, City Attorney Mayra Ochiqui, City Clerk Randi Stover, Assistant to the City Manager Karen L. Avery, Deputy City Clerk For the record, Mayor Dunton requested that public testimony be provided as each Applicant makes their presentation. Page 1 of 8
Page 3 of 9 August 13, 2018 Page 2 of 8 4-A Consideration and possible action to conduct public hearings to consider issuing three Medical Cannabis Business Permits ( MCBP ) and one Conditional Use Permit ( CUP ) application for distribution or manufacturing uses. Following the public hearing, the City Council should consider adopting these Resolutions: Applicant: The Medicine Woman : Resolution No. 18-43(A) A Resolution denying Medical Cannabis Business Permit No. CU-CAN 17-12(A) to operate a medical cannabis distribution facility at 9058 Rose Street due to insufficient parking and insufficient drive aisle widths under the Bellflower Municipal Code (BMC); Applicant: Damian Collins (representing The Medicine Woman); OR Resolution No. 18-43(B) A Resolution approving Medical Cannabis Business Permit No. CU-CAN 17-12(A) to operate a medical cannabis distribution facility at 9058 Rose Street; Applicant: Damian Collins (representing The Medicine Woman); OR Resolution No. 18-43(C) A Resolution denying Medical Cannabis Business Permit No. CU-CAN 17-12(A) to operate a medical cannabis distribution facility at 9058 Rose Street due to exceedance of remaining MCBPs; Applicant: Damian Collins (representing The Medicine Woman); and Applicant: NC3 Systems, Inc. dba Caliva : Resolution No. 18-44(A) A Resolution denying Medical Cannabis Business Permit No. CU-CAN 17-14(A) to operate a medical cannabis distribution facility at 9535 Artesia Boulevard due to insufficient parking under the Bellflower Municipal Code (BMC); Applicant: Larry Thacker (representing NC3 Systems Inc. DBA Caliva); OR Resolution No. 18-44(B) A Resolution approving Medical Cannabis Business Permit No. CU-CAN 17-14(A) to operate a medical cannabis distribution facility at 9535 Artesia Boulevard; Applicant: Larry Thacker (representing NC3 Systems Inc. DBA Caliva); OR Resolution No. 18-44(C) A Resolution denying Medical Cannabis Business Permit No. CU-CAN 17-14(A) to operate a medical cannabis distribution facility at 9535 Artesia Boulevard due to exceedance of remaining MCBPs; Applicant: Larry Thacker (representing NC3 Systems Inc. DBA Caliva); and Applicant: EEL Holdings, LLC: Resolution No. 18-45(A) A Resolution approving Medical Cannabis Business Permit No. CU-CAN 17-16(A) to operate a medical cannabis manufacturing facility at 9032-9038 Artesia Boulevard; Applicant: Elliot Lewis (representing EEL Holdings, LLC); OR Resolution No. 18-45(B) A Resolution denying Medical Cannabis Business Permit No. CU-CAN 17-16(A) to operate a medical cannabis manufacturing facility at 9032-9038 Artesia Boulevard due to exceedance of remaining MCBPs; Applicant: Elliot Lewis (representing EEL Holdings, LLC); and
Page 4 of 9 August 13, 2018 Page 3 of 8 Applicant: CaliMed Cooperative : Resolution No. 18-46(A) A Resolution approving Conditional Use Permit No. CUP CU-CAN 18-07 and approving a Medical Cannabis Business Permit to operate a medical cannabis distribution and manufacturing facility at 15106 Clark Avenue and 9426 Somerset Boulevard; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative); OR Resolution No. 18-46(B) A Resolution approving Conditional Use Permit No. CUP CU-CAN 18-07 and approving a Medical Cannabis Business Permit to operate a medical cannabis distribution facility at 15106 Clark Avenue and 9426 Somerset Boulevard; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative); OR Resolution No. 18-46(C) A Resolution approving Conditional Use Permit No. CUP CU-CAN 18-07 and a Medical Cannabis Business Permit to operate a medical cannabis manufacturing facility at 15106 Clark Avenue and 9426 Somerset Boulevard; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative); OR Resolution No. 18-46(D) A Resolution approving a Conditional Use Permit No. CUP CU-CAN 18-07 and denying a Medical Cannabis Business Permit to operate a medical cannabis distribution and manufacturing facility at 15106 Clark Avenue and 9426 Somerset Boulevard due to exceedance of MCBPs; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative); OR Resolution No. 18-46(E) A Resolution approving Conditional Use Permit No. CUP CU-CAN 18-07 and denying a Medical Cannabis Business Permit to operate a medical cannabis distribution facility at 15106 Clark Avenue and 9426 Somerset Boulevard due to exceedance of remaining MCBPs; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative); OR Resolution No. 18-46(F) A Resolution approving Conditional Use Permit No. CUP CU-CAN 18-07 and denying a Medical Cannabis Business Permit to operate a medical cannabis manufacturing facility at 15106 Clark Avenue and 9426 Somerset Boulevard due to exceedance of remaining MCBPs; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative). City Manager Stewart introduced the item. City Clerk Ochiqui administered the Oath to those wishing to present public testimony. Assistant to the City Manager Stover 1) introduced Tony Locacciato and Victoria Boyd, Consultants with Meridian Consultants, LLC; and 2) for the record and with regard to a typographical error on the Staff Report and Agenda, noted that the Medical Cannabis Business Permit number for EEL Holdings, LLC, should be CU-CAN 17-17(A) for both Resolution No. 18-45(A) and Resolution No. 18-45(B).
Page 5 of 9 August 13, 2018 Page 4 of 8 Consultant Locacciato gave a PowerPoint presentation providing a general overview of the Staff Report and, along with City Manager Stewart, City Attorney Berger, Assistant to the City Manager Stover, and Consultant Boyd, responded to Council Members questions throughout the consideration of this matter. At the request of Mayor Pro Tem Santa Ines, City Attorney Berger 1) clarified that a) although the City has not adopted operating standards for distribution permittees, they must comply with the conditions imposed by state law; b) the City can require permittees to adhere to state law and any other conditions it deems appropriate; c) if needed in the future, the City could review operations permits and impose additional conditions with notice to the permittee; and 2) informed applicants/permittees that, as part of a requirement of previously adopted City Council Resolution No. 18-05, they are required to sign the standard conditions of approval on the draft resolutions as they come forward to provide their presentations. At the request of Council Member Koops, 1) Consultant Locacciato clarified that a) Caliva did not submit an update regarding the removal of a portion of their building in order to reduce their parking, but could address that issue during their presentation; and b) Caliva is currently proposing a non-retail dispensary (i.e., not selling to the end-user) and delivery system instead of the previously approved dispensary; and 2) City Manager Stewart clarified that at the previous public hearing Caliva agreed to remove 1,600 square feet of the building in order to meet the parking demand for the dispensary use. At the request of Mayor Dunton, 1) City Attorney Berger clarified that a) the permits are valid for one year after issuance, noting that the City Council has broad discretion to impose any conditions appropriate on these types of permits (e.g., current permits could expire at the same time as previously-approved permits); and b) the pro-rated fee is for the administrative fee and not the permit fee; and 2) City Manager Stewart clarified that manufacturing facilities are subject to the standards imposed by State regulations and not County regulations. City Clerk Ochiqui 1) read aloud each Applicant s name as they were placed in a clear bowl to conduct the random drawing; and 2) randomly drew the Applicants names in the following order for the purposes of presentations: a) EEL Holdings, LLC; b) CaliMed Cooperative; c) Caliva; and d) The Medicine Woman. It was moved by Mayor Dunton, seconded by Council Member Koops, and carried without objection (Garza and Schnablegger absent), to open the public hearing. Applicant Elliot Lewis, EEL Holdings, LLC, addressed the City Council, provided a verbal presentation, and responded to Council Members questions.
Page 6 of 9 August 13, 2018 Page 5 of 8 At the request of Mayor Pro Tem Santa Ines, City Attorney Berger clarified that every person engaged in the business of commercial cannabis must pay an annual commercial cannabis tax (5% tax on gross receipts), noting that there is no distinction between manufacturing, distribution, dispensary, or cultivation. The following individual did not state a position in favor or against adopting Resolution Nos. 18-45(A) or 18-45(B), but made comments and asked questions generally related to the Public Hearing: Peter Hirezi City Clerk Ochiqui administered the Oath to Applicant Eugenio A. Gonzales to present public testimony as he did not previously take the Oath when it was administered to all. Applicant Eugenio A. Gonzalez, CaliMed Cooperative, Land Use Consultant for the Applicant Kirk Cartozian, and Architect for the Applicant Rand Kruse, addressed the City Council, provided a PowerPoint presentation, and responded to Council Members questions. At the request of Mayor Dunton and Council Member Koops, Applicant Gonzalez clarified that 1) his current manufacturing operation generates a little over $1 million per month ($12 million per year) and if a manufacturing permit were to be approved, he would move that whole operation to the City; and 2) if a distribution permit were to be approved, all of the products manufactured in the City would also be distributed from the same location. The following individuals spoke against adopting Resolution Nos. 18-46(A), 18-46(B), 18-46(C), 18-46(D), 18-46(E), or 18-46(F): April Manor, Somerset Boulevard Juanita Moses, 9444 Somerset Boulevard Ken Zimmerman Yvette Velasco, 15124 Clark Avenue The following individual did not state a position in favor or against adopting Resolution Nos. 18-46(A), 18-46(B), 18-46(C), 18-46(D), 18-46(E), or 18-46(F), but made comments and asked questions generally related to the Public Hearing: Lucy Sorensen Applicant Eugenio A. Gonzalez, CaliMed Cooperative, responded to Council Members questions and provided a rebuttal to public testimony.
Page 7 of 9 August 13, 2018 Page 6 of 8 Applicant Larry Thacker, NC3 Systems Inc. DBA Caliva, 1) introduced General Counsel Royce Suba and Vice President of Governmental Affairs Rand Martin; 2) addressed the City Council, noting that, based on their parking issues and further determination of the scope of the project, Caliva is proposing to operate only a delivery and distribution facility (and not the retail lock-up facility previously requested); 3) provided a PowerPoint presentation; and 4) responded to Council Members questions. Rand Martin, Vice President of Governmental Affairs, NC3 Systems Inc. DBA Caliva, in reference to a required traffic study that was prepared as part of their application, 1) stated that it was determined that Caliva needed only seven spaces and not the required fourteen spaces; 2) requested that the City Council amend their parking requirement for this location; and 3) responded to Council Members questions. In response to Caliva s request for amended use and parking requirements, City Manager Stewart 1) clarified that offsite parking at Caliva s secondary site is not an approved use and the parking lot has a shared-use arrangement; and 2) inquired as to Caliva s intent to amend their original dispensary permit and obtain a separate permit for a different use. City Attorney Berger clarified that 1) the original dispensary permit approved in December 2017 was based upon the understanding of the layout of the property; and 2) any amendment to the layout of the property would require an amendment to the Conditional Use Permit (CUP) for the dispensary and should be properly vetted by the Planning Department and not acted upon from the dais. Discussion ensued amongst Applicant Thacker, Mr. Rand, City Manager Stewart, City Attorney Berger, and Council Members regarding the original CUP and MCBP permit approved for a dispensary use and the proposed amendments. Following lengthy discussion, Applicant Thacker informed the City Council that Caliva will withdraw their application for a distribution permit at this time, noting that they will look to readdress their existing retail dispensary permit. Applicant Damian Collins, The Medicine Woman, addressed the City Council, provided a verbal presentation, and responded to Council Member s questions. Discussion ensued amongst Applicant Collins, City Manager Stewart, City Attorney Berger, and Council Members regarding insufficient parking and drive aisle widths, a mutual parking agreement with a neighboring property, and a request for a waiver of a parking covenant for off-site parking requirements. Following discussion it was the consensus of the City Council (Garza and Schnablegger absent) to add a requirement for off-site parking to the Conditions of Approval. City Attorney Berger read aloud the following amendment to the Conditions of Approval (Condition No. 59): This Permit will not become effective until the Applicant submits a document in accordance with BMC 17.88.090(c) to the satisfaction of the City Manager, in a form approved by the City Attorney, that off-site parking meets the requirements of the BMC. Such documentation must be submitted within 60 days.
Page 8 of 9 August 13, 2018 Page 7 of 8 The following individual spoke in favor of adopting Resolution Nos. 18-43(A) and 18-43(B): Unknown Speaker The following individual spoke against adopting Resolution Nos. 18-43(A) and 18-43(B): Darlene Palacios Marilyn Olof In response to comments made by Darlene Palacios relative to the neighboring business owner (party in the mutual parking agreement) parking employee/company vehicles on the street and currently causing parking concerns, Mayor Dunton and City Manager Stewart stated that staff would visit the site tomorrow to verify that the parking agreement would be sufficient. There being no one else in the audience wishing to present public testimony, it was moved by Mayor Pro Tem Santa Ines, seconded by Council Member Koops, and carried without objection (Garza and Schnablegger absent), to close the public hearing. For the record, 1) Council Members handed their Forced Ranking Sheets to City Clerk Ochiqui; and 2) City Clerk Ochiqui assessed the Forced Ranking Sheets and determined the order of the ranking as follows: a) EEL Holdings, LLC; b) The Medicine Woman; c) CaliMed Cooperative [Manufacturing]; and d) CaliMed Cooperative [Distribution]. City Attorney Berger 1) read into the record the standard Condition of Approval to be added to any approved permit as follows: Unless renewed in accordance with the BMC, this Permit will expire on December 31, 2018. The Cannabis Permit Fee required by BMC 14.08.080 and Condition No. 27 will be prorated to $9,730. Any renewal will require payment in full of the Cannabis Permit Fee required by the BMC, noting that the $9,730 is a break-down for 140 days, which is the total length of time for this permit duration; and 2) noted the additional Condition of Approval that was previously discussed and read into the record to be added to The Medicine Woman application if that permit is approved. Following discussion, it was moved by Mayor Pro Tem Santa Ines, seconded by Mayor Dunton, and carried by the following roll call vote, to adopt Resolution No. 18-45(A), as amended, approving Medical Cannabis Business Permit No. CU-CAN 17-17(A) to operate a medical cannabis manufacturing facility at 9032-9038 Artesia Boulevard; Applicant: Elliot Lewis (representing EEL Holdings, LLC): AYES: Council Members - Santa Ines, Koops, and Mayor Dunton ABSENT: Council Members - Garza and Schnablegger
Page 9 of 9 August 13, 2018 Page 8 of 8 It was moved by Council Member Koops, seconded by Mayor Dunton, to adopt Resolution No. 18-46(A), as amended, approving Conditional Use Permit No. CUP CU-CAN 18-07 and approving a Medical Cannabis Business Permit to operate a medical cannabis distribution and manufacturing facility at 15106 Clark Avenue and 9426 Somerset Boulevard; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative). This motion was subsequently withdrawn after clarification of the results of the forced ranking by the City Council. It was moved by Mayor Pro Tem Santa Ines, seconded by Mayor Dunton, and carried by the following roll call vote, to adopt Resolution No. 18-43(B), as amended, approving Medical Cannabis Business Permit No. CU-CAN 17-12(A) to operate a medical cannabis distribution facility at 9058 Rose Street; Applicant: Damian Collins (representing The Medicine Woman): AYES: Council Members - Santa Ines and Mayor Dunton NOES: Council Member - Koops ABSENT: Council Members - Garza and Schnablegger It was moved by Mayor Dunton, seconded by Council Member Koops, and carried by the following roll call vote, to issue to adopt Resolution No. 18-46(C), as amended, approving Conditional Use Permit No. CUP CU-CAN 18-07 and a Medical Cannabis Business Permit to operate a medical cannabis manufacturing facility at 15106 Clark Avenue and 9426 Somerset Boulevard; Applicant: Eugenio A. Gonzalez (representing CaliMed Cooperative): 5 Adjournment AYES: Council Members - Santa Ines, Koops, and Mayor Dunton ABSENT: Council Members - Garza and Schnablegger Without objection, Mayor Dunton adjourned the Special Meeting at 5:47 p.m. Ray Dunton, Mayor City of Bellflower Attest: Mayra Ochiqui, City Clerk Approved: September 10, 2018