PLANNING COMMISSION AGENDA REGULAR MEETING · Robbie Waters, former Sheriff of Sacramento County and former Sacramento City Councilmember, spoke in support - agreed that the 209 name

C/O COMMUNITY DEVELOPMENT DEPARTMENT 345 NORTH EL DORADO STREET – PERMIT CENTER STOCKTON, CA 95202-1997 (209) 937-8266 PLANNING COMMISSION MEMBERS PLANNING COMMISSION MEMBERS Samuel E. Fant, Jr., Chair (Dist. 6) Randy Hatch, Vice Chair (At Large) Steve Lopez (Dist. 1) Sandra Davis (Dist. 2) Antonio R. Garcia (Dist. 3) Ed Surritt (Dist. 4) Christina Fugazi (Dist. 5)

PLANNING COMMISSION AGENDA REGULAR MEETING

DATE/TIME: THURSDAY, JULY 14, 2011 AT 6:00 P.M. LOCATION: COUNCIL CHAMBERS, SECOND FLOOR, CITY HALL, 425 NORTH EL DORADO STREET, STOCKTON, CA Agendas, staff reports and minutes can be viewed on the City of Stockton web site http: / /www.stocktongov.com/government/oMeetings/boardComMeetings.html DISCLOSURE OF CAMPAIGN CONTRIBUTIONS: State legislation requires disclosure of campaign contributions of $250 or more, made to any Planning Commissioner, by any person who actively supports or opposes any application pending before the Planning Commission, and such person has a financial interest in the decision. Active support or opposition includes lobbying a Commissioner and/or testifying for or against such an application. Any person having made a $250 or larger contribution within the preceding 12 months must disclose that fact during the public hearing or on said application. The official City Planning Commission policy is that applications pending before this Commission should not be discussed with the Commission members outside of a public hearing. If any representations are made privately, they must be identified and placed in the public record at the time of the hearing. If you challenge the proposed action in court, you may be limited to raising only those issues you or someone else raised at the public hearing described in this notice, or in written correspondence delivered to the Planning Commission, at, or prior to, the public hearing. NOTE: All proceedings before the City Planning Commission are conducted in English. The City of Stockton does not furnish interpreters and, if one is needed, it shall be the responsibility of the person(s) needing one.

CONSENT ITEMS: Information concerning the consent items have been forwarded to the Planning Commission prior to the meeting. Unless a Planning Commissioner or member of the audience has questions concerning a particular item and asks that it be removed from the Consent Calendar, the items are approved at one time by a roll call vote. Anyone wishing to speak on a consent item or public hearing item, please complete a “Request to Speak Card” and submit it to the Recording Secretary prior to the meeting.

1. PLEDGE TO THE FLAG 2. ROLL CALL 3. CONSENT ITEMS

3.01) Approval of the minutes for the meetings of May 26, 2011 4. PUBLIC HEARINGS/ENVIRONMENTAL ASSESSMENTS

4.01) Continued public hearing regarding the request of Val San Associates for a Use

Permit to establish a medical cannabis dispensary in an existing 10,000-square foot building in the Channel Area at 1220 West Fremont Street (P11-089).

5. OTHER BUSINESS 6. COMMUNICATION 7. COMMUNITY DEVELOPMENT DIRECTOR’S REPORT 8. COMMISSIONERS’ SUGGESTION 9. AUDIENCE PARTICIPATION

For any person wishing to address the Planning Commission on any planning matter not on the printed agenda - Chairperson may set time limit for individual speakers/groups.

10. COMMISSIONERS’ RESPONSE 11. ADJOURNMENT

The next meeting of the Planning Commission is scheduled for August 11, 2011

MICHAEL E. LOCKE, SECRETARY CITY PLANNING COMMISSION

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Roll Call 6:01 PM Present: Commissioner Fugazi Commissioner Garcia Commissioner Hatch Commissioner Lopez Commissioner Surritt Chair Fant Vice Chair Hatch Absent: Commissioner Davis.

Chair Fant recognized Christine Fugazi for serving as Chair of the Planning Commission for the last year and presented a plaque and gavel to Commissioner Fugazi. Community Development Director Mike Niblock expressed his appreciation and thanks for the service former Chair Fugazi provided.

The public hearing was declared open and the Affidavit of Mailing was filed. Deputy City Attorney Guy Petzold provided background information to the Commissioners. - Two items: Operators permit; Use permit - The role of the Commissioners is to determine the land use permit - The operators permit is not before the Commission tonight - Applicants have met all requirements Planning Manager Richard Larrouy provided the staff report and issues regarding all three Use Permit requests with the aid of a powerpoint presentation (filed). Commissioner’s comments and questions:

MINUTES SPECIAL PLANNING COMMISSION MAY 26, 2011

CITY HALL CITY COUNCIL CHAMBERS STOCKTON, CALIFORNIA

1. PLEDGE TO THE FLAG 6:00 PM

2. ROLL CALL 6:01 PM

3. PRESENTATION TO FORMER CHAIR FUGAZI 6:02 PM

4. PUBLIC HEARINGS/ENVIRONMENTAL ASSESSMENTS 6:06 PM

4.1) Public hearing regarding the request of Eastland Plaza, PTP for a Use Permit to establish a medical cannabis dispensary in an existing 2,217-square foot suite in an existing building at 678 North Wilson Way, Suite A-1 (P11-078). 6:06 PM

Special Planning Commission

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- why is the zoning designated as 300 feet from a residential zone?; Deputy City Attorney Guy Petzold responded, separation standards were discussed, City Council decided residentially "zoned" property, rather than residentially "used" property; 300 feet is a standard between uses; Director Niblock commented, this could be a short term use of the property, it allows more flexibility in terms of location for these facilities - edible cannabis products; Planning Manager Larrouy responded, no eating or drinking of consumable products on site, loose tea and tea bag products could be sold - Police calls for service; Deputy Director Meissner responded, can be addressed when the Commission is considering the specifics of each application - spoke to the request for a kitchen permit, is there cooking preparation at the site location; Planning Manager Larrouy responded, the permit is required by food preparation regulations for products that require refrigeration or heating Planning Manager Richard Larrouy provided the staff report for agenda item 4.1 with the aid of a PowerPoint presentation (filed). Commissioner’s comments and questions: - spoke to the Police calls for service; Planning Manager Larrouy responded, the calls for service are related to the existing shopping center, Commissioners are to consider the impact the proposed dispensary would have on the shopping center and the surrounding neighborhood. - clarify the land use permit and operators permit, both permits are required to operate a dispensary; Deputy Director Meissner responded, if the land use permit was approved and the operators permit was denied, the land use permit would remain for that location, unless revoked or relinquished -if the operators permit was denied, can a new operator apply for a land use permit at a different location; Director Niblock responded, the land use at the old site must be relinquished in order to do so - would there be a process of the land use expiring if the operators permit was denied and the land use permit was not in use - Planning Manager Larrouy responded: if the land use permit was approved and the operator failed to comply to the conditions of approval, and failed to initiate the land use permit within twelve months then the land use permit would no longer be valid; if the land use permit was approved, the use was initiated under all the conditions of approval and the operator stopped operating then the land use permit would remain with the land - Deputy Director Meissner responded - it would not preclude an additional dispensary from opening, but it would preclude another location from opening; a City certified operator next in line to operate a dispensary would be able to take over the site


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- are there security guards servicing the shopping center and how many other dispensaries have provided security guards; Police Sergeant Jim Chraska responded, security guards are already in place at this location - Director Niblock - there is existing security at the shopping center hired by the owners/operators of the shopping center; the security proposed with this use permit is additional security for the dispensary - the location is a suite within an existing building with multiple suites, can this site be expanded; Deputy Director Meissner responded, the dispensary is limited to the 2,217-square feet in the application request - could the operator petition to expand the site; the operator could apply to expand the site which would require the Planning Commission's approval - the calls for service are extensive, including homicide and kidnapping, how does this site compare to other similarly sized shopping areas in Stockton; Police Sergeant Chraska responded, there were 585 calls for service in this 25-acre location, he provided calls for service statistics for other similarly sized shopping areas - Hammer Ranch Center and Pacific Town Plaza combined is similar acreage; calls for service was 585 Chair Fant called for the applicant. Max Del Real, California Capitol Solutions representing the applicant - provided a report regarding Collective 209 with the aid presentation handouts and documents (filed) Commissioner's comments and questions: - what actions will the applicant take to address the crime and security issues; Mr. Del Real spoke to safety and security as listed on page 4 of the documents (filed); the facility will be accessible for any inspection by the Police and Fire Departments; letter from Jessica LePhan, Le Properties, the Fruitridge Health & Wellness Collective reduced crime in her office complex (filed) - any quantitative data supporting the claim that the dispensary decreased crime in the surrounding area; Mr. Del Real didn't have any supporting quantitative data - patients will be escorted into the dispensary, will there be one escort per patient; Mr. Del Real responded, the security guard stationed at the front door will escort the patient to the intake station, there is always one security in the lobby; the security guard outside will see, not escort, the patient to their car - how much of the parking area will be monitored by the security guards; Mr. Del Real responded, the guard will police the general area and provide security outside the immediate area; they are exploring a partnership with the other two security firms - concerned about the name Collective 209, the term 209 is associated to gang


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activity; Mr. Del Real responded, the original application was filed as the Stockton Patient Cooperative (SPC), a team came up with Collective 209 after consulting several local patients Public Comment: Anthony Barkett representing Eastland Plaza landlord - spoke to security concerns raised by the Commissioners: the amount of police calls are attributed to the success and business traffic of the shopping center; a well regulated original and a good operator reduces crime; the dispensaries bring more security to the center; preliminary discussions with the Police Department to hire police for a limited amount of time Chair Fant to Mr. Barkett - clarification regarding the preliminary discussions with the Police Department; hiring the Police Officer(s) specifically for the shopping center Brian Wendell, Collective 209 Director of Operations - no issues or calls for service at the company’s two Sacramento dispensaries in the past two years Stefanie Gernert, Collection 209 Executive Director - took the best practices of their operating dispensary in Sacramento to bring to their Stockton dispensary; spent time with Community Outreach in Stockton Peggy Dohlen, Collection 209 Community Outreach Director - spoke to safe access in Stockton Commissioner Fugazi to Ms. Dohlen - describe the Community Outreach activities; spoke with Stockton-based patients at the Fruitridge dispensary, patients and the community were invited to a stakeholders forum at Cibo de Vino on Pacific Avenue, will walk the neighborhoods - are you bilingual; Ms. Dohlen responded, she was not bilingual Robbie Waters, former Sheriff of Sacramento County and former Sacramento City Councilmember, spoke in support - agreed that the 209 name could be changed; spoke to the Sacramento Fruitridge Wellness Center; crime decreased with the increased private security James Anthony, Medical Cannabis activist and Land Use attorney, spoke in support - spoke to the Americans for Safe Access pamphlet, Medical Cannabis Dispensing Collectives and Local Regulation (filed); last year there were no calls for services for the 39 registered dispensaries No one else wished to speak in favor of the Use Permit The following spoke in opposition to the Use Permit: Kenneth Hatfield, property owner of 1215, 1217, 1225 and 1245 W. Fremont - not a proper use for the investment community; there is residential property across the street from the location; marijuana is a dangerous and addictive drug; Fremont


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street is a main corridor to Stockton; the Fremont Street applicants did not notify him or communicate with him - Mr. Hatfield was informed that comments are only for the Use Permit at 678 North Wilson Way; Mr. Hatfield will speak to agenda item 4.03 Deborah Gurley - opposed to marijuana dispensaries in general; "209" is a gang sign; concerned with Police reductions affecting security and safety issues; prostitution on Wilson Way; security and safety issues once a patient has left the dispensary’s immediate security area Mr. Del Real declined rebuttal No one else wishing to be heard, the public hearing was declared closed. Commissioner comments: - was a part of the Planning Commission that drafted the Medical Cannabis Ordinance; the Planning Commission wanted the dispensaries spread out in different areas of Stockton; the applicant has indicated they will address the issues and concerns for safety and security; in support - the location is good and faces inward toward the shopping center entrance; the applicant will be increasing security and the possibility of hiring police officers; in favor of the Use Permit - concerned of the following issues: "209" gang association in the name; bilingual Outreach is needed in this part of Stockton; and the current facility size is possibly not sufficient to service one-third the patient customers - concerned with the safety and security issues that will be provided and with the location; safety and security issues outside the shopping center parking lot; the applicant said they may seek hiring police officers, if it’s needed; security up to the immediate area of the dispensary; the community outreach was held at Pacific Avenue not near the site location - explained that the Council tasked the Planning Commission to develop a plan for marijuana dispensaries; concerned with the gang recognition "209" name; dispensary proponents were concerned about patients having access at different locations in Stockton; tonight the Commission will consider two locations on Fremont Street - the location has ample parking; the property owner has a proven track record for being proactive; in favor of the land use permit - Director Niblock informed Chair Fant that the Commission may ask for clarification from the applicant - the reference to "209" in the proposed neighborhood is highly inappropriate; strongly opposed to the "209" name The public hearing was declared reopened.


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Mr. Del Real spoke to changing their name back to the Stockton Patient Cooperative - will act on the name change this evening if necessary; there was a stakeholders forum held in the Eastland Plaza directly across the parking lot of the proposed location; will employ a bilingual staff member; they have engaged the spanish-speaking community; trust the leadership of the Council The public hearing was declared closed. Motion: Approve the request of Eastland Plaza, PTP for a Use Permit establishing a medical cannabis dispensary in an existing 2,217-square foot suite in an existing building at 678 North Wilson Way, Suite A-1 (P11-078). WITH ADDED CONDITIONS: - remove the "209" from the name of the cooperative. - hire a bilingual staff member. Moved by Vice Chair Hatch, seconded by Commissioner Surritt Commissioner Fugazi to staff - after the Commission ’s action tonight will this item go before the Council; Director Niblock responded, the Commission is the final decision making body unless there is an appeal of the Use Permit, as for the second added condition, it is not a typical condition that can be imposed by the Commission but in this case the applicant volunteered the proposal; Deputy Director Meissner informed the Commission, per the ordinance there will be no signs on the building other than the address in 10-inch block letters, no signs will be visible from the outside naming the establishment Vote: Motion carried 4-2 Yes: Commissioner Fugazi, Commissioner Surritt, Vice Chair Hatch, and Chair Fant. No: Commissioner Garcia, and Commissioner Lopez. Absent:Commissioner Davis.

Chair Fant declared a break at 8:05 p.m., the meeting resumed at 8:11 p.m.

The public hearing was declared open and the Affidavit of Mailing was filed. Planning Manager Richard Larrouy provided a staff report and background information regarding the location with the aid of a powerpoint presentation (filed). Commissioner’s comments and questions: - clarification on the separation standards of the two proposed dispensaries on Fremont Street and the path of travel measurement; the separation meets the standard

4.2) Public hearing regarding the request of Channel Bank North, PTP for a Use Permit to establish a medical cannabis dispensary in an existing 5,000-square foot suite in an existing 44,000-square foot building in the Channel Area at 1550 West Fremont Street (P11-080). 8:15 PM


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- Director Niblock responded - it was the Council’s intent to use path of travel measurement to provide flexibility, based on walking or driving - calculating the parking requirements from office use to retail use - Planning Manager Larrouy responded, the entire building was originally approved as office use and parking requirements for 160 spaces was in compliance; the code has changed and the use is now legally nonconforming in respect to parking; current practice is to focus evaluations only on the area proposed to change use; the 5,000-square foot suite requires 20 parking spaces for retail use as opposed to 25 spaces for office use; the location meets the standards of the code - a single entrance to the parking lot Chair Fant called for the applicant. Howard Seligman, attorney, spoke on behalf of the applicant - operators are Stockton residents; in support of the staff report’s findings and conditions; facility location and accessibility; provided pictures of the building and the surrounding area (filed); hours of operation; gated facility, one entrance; separation of the two proposed dispensaries on Fremont Street meets the standards of the ordinance; provided sketches of Sacramento dispensaries located in close proximity of each other (filed); communicated with nearby commercial facilities, a facility tenant is the California Department of Corrections Tony Hermosillo, Port City Health and Wellness Executive Director and Port City Health and Wellness Cooperative, Inc. Board of Directors President - met with Stockton Police Department to review the dispensary’s safety and security plans; alarmed security and monitoring system; secure vault room storage of currency and medicinal products; controlled access and entry; contract a Stockton Police Department approved local security service to guard and patrol exterior activity; 30-day audit trail of all security systems Mr. Seligman - 24 calls for service in 12 months, two potential criminal violations; no conflicts with any unrelated uses; site is suitable for the proposed use; isolated location; no adverse impact that would affect the integrity of the neighborhood Commissioner's comments and questions: - is there a dock on the channel side of the building; Mr. Hermosillo responded, a dock is located to the west of the facility, not a part of the property - will the same security guard provide security of the front door and the parking lot; Mr. Hermosillo responded, there is an exterior security guard and there are security guards in the interior - the exterior security guard is the Stockton Police Department approved security service - are these armed guards; Mr. Hermosillo responded, no, the code does not allow armed guards


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No one else wishing to be heard, the public hearing was declared closed. Motion: Approve the request of Channel Bank North, PTP for a Use Permit establishing a medical cannabis dispensary in an existing 5,000-square foot suite in an existing 44,000-square foot building in the Channel Area at 1550 West Fremont Street (P11-080). Moved by Commissioner Surritt, seconded by Chair Fant Vote: Motion carried 5-1 Yes: Commissioner Garcia, Commissioner Hatch, Commissioner Surritt, Vice Chair Fant, and Chair Fugazi . No: Commissioner Lopez. Absent:Commissioner Davis.

The public hearing was declared open and the Affidavit of Mailing was filed. Planning Manager Richard Larrouy provided a staff report and background information regarding the location with the aid of a powerpoint presentation (filed). Planning Manager Larrouy - explained the land use and zoning of the property; there are two single-family residents across the street from the subject parcel, zoned CG (general commercial); code requires separation of the proposed dispensary and residential zoned property, not residential uses; the residential zoned properties, RM (medium density residential), north and east of the project site meet the code separation - spoke to Condition 18, the onsite parking and circulation plan; applicant proposed retaining the fence which will impair the circulation of the increased foot and vehicle traffic to the facility; the separation from residential property will not be met if the fence is removed; Planner Manager responded, staff reviewed the proposed configuration and determined it would meet minimum standards Chair Fant called for the applicant. James Anthony, attorney, spoke on behalf of the applicant, submitted documents to the Commission (filed) and spoke to the following: - Planning Commission and Council pass the Medical Cannabis Dispensaries Ordinance - application selection process; top three selected; the applicant, Stockton Non-Profit Collective, was ranked number one - highlighted key points of the application - calls for service (CFS) are lower than the other two dispensary locations - parking plan provides 40 spaces for the site, which is more than the 20 spaces

4.3) Public hearing regarding the request of Val San Associates for a Use Permit to establish a medical cannabis dispensary in an existing 10,000-square foot building in the Channel Area at 1220 West Fremont Street (P11-089). 8:46 PM


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approved with the previous applicant - the proposed fence helps provide separate space so that the Head Start Kitchen will have their own parking and entrance/exit - stand-alone building of adequate size; bus stop nearby; 8-foot high wrought iron fence encircles the entire property - operations; the cannabis products; alternative healing services; peer counseling; free products and discounts for qualified patients Nicholas Street, Stockton Non-Profit Collective Executive Director, spoke to the following: - name changed from Port of Stockton Wellness Center - community meeting of residents within 1,000 feet of the project site; number of residents in high support of the proposed dispensary, one resident concerned with dispensaries in general - security and video surveillance; a membership agreement and code of conduct - donations to community charitable organizations; resource services which provides a variety of information of transportation, assistance and aid - the one entrance/exit is soley for security reasons Suneet Azarwal, Stockton Non-Profit Collective General Manager, spoke to the following: - security; prevent crime and nuisance activity; the same security policies and procedures employed at their Sacramento dispensary is recognized by local officials as a safe and secure facility; reduced crime in the neighborhood - the security system: biometric fingerprint, card and buzzer access control; license plate/facial recognition capable video surveillance system; interior and exterior security guards; community relations personnel to field calls - met with Stockton Police Lieutenant Eric Ingersoll to review the security plans and procedures Courtney Sheats, Community Laison for Americans for Safe Access, spoke in support of the Use Permit - patient services provided at the dispensary: chiropractic therapy; acupressure; art and music therapy; resource services - patient services are developed by reaching out to the community The following spoke in opposition to the Use Permit: Kenneth Hatfield, property owner of 1215, 1217, 1225 and 1245 W. Fremont Street - properties on 1215 and 1217 are currently occupied by residents; not utilized as commercial units - marijuana is a dangerous and addictive drug; safety concerns with patients consuming or smoking the products in the nearby parking lots - Fremont street is a main corridor to Stockton; it’s store front location presents Stockton as a pot house - there are two businesses currently at the project site; what happens to those businesses - the two dispensaries are a block apart from each other, rather than spread out in Stockton


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- Stockton’s crime is rate up 40%; will this dispensary increase crime - how many of the Sacramento dispensaries are a block apart from each other Joe Scottorosano - residential property across the street from project site; find another location for this dispensary Bob Larson, commercial property owner of 1325 W. Fremont - concerned that Fremont Street will become cannabis row - spread the dispensaries apart - California Safety Code uses line of sight separation; the two dispensaries project sites are 538 feet apart - the project is on the main thorough fare to the arena and the ballpark - attended the applicant’s open house; applicant stated there is no benefit to the neighborhood, only a benefit to patients - the location is in a marine area; the dispensary is not oriented to improving the waterways and marine activity - the City leasing property in the arena area Edward Correa, 40-year neighborhood resident - project is on the same property of the Head Start kitchen - residential property across the street - an upcoming State Bill requiring a 600-foot separation - supports safe access to medical cannabis - concerned with children so closely exposed to the sale of cannabis Mary Hirsch, 30-year neighborhood resident - concerned with two dispensaries affecting security and safety - police response is poor, area security guards are not patrolling the parking lots - large foot traffic in the area - housing for registered sex offenders located on the west end of Fremont Street - place the dispensary in another location - police staffing is stretched thin; police won't respond to low priority calls such as loitering or smoking cannabis in public Mr. Anthony spoke on rebuttal and addressed the concerns raised by the opponents: - mix of uses in the location; not all marine related - patients loitering or smoking cannabis outside; notify the dispensary and security will handle the issue and Stockton Police Department will be notified; if the activity involves the dispensary’s patient, the patient will be terminated - no guarantee that the dispensary will solve all the safety and security concerns of the neighborhood; will do everything they can do to improve neighborhood safety and security - the dispensary’s patient rules and regulations; the applicant will not risk revocation for any violation by patients - the fenced parking and single entrance, exit, is easier to secure; the parking has enough room for two lanes of travel - the impact to the neighborhood: improve the quality of life; improve security; and increase traffic for neighboring businesses - willing to meet with neighbors; will hold other community meetings, and meet


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now to meet with the community if the Commission wished to continue the public hearing - the facility’s previous business owner is moving out - there are residential properties across the street from some Sacramento dispensaries - children will only be exposed to vehicles going in and out of the parking out; improved security and a cleaner, safer neighborhood; and a better quality of life Chair Fant declared the public hearing closed. Chair Fant declared the public hearing reopened. Commissioners' comments and questions: - is there street parking in front of the facility; Mr. Anthony responded, there is street parking and a bus stop; Mr. Meissner responded, there is street parking available in this area - how security police the streets 200 feet from the facility if they are only in the parking lot; Mr. Anthony responded, security will patrol the parking lot and the surrounding area Chair Fant declared the public hearing closed. Commissioners’ comments and questions: - is the land use permit attached to the operation permit; Director Niblock responded, the use permit is attached to the physical address - Deputy City Attorney Petzold spoke to the operation permit: if the use permit is denied, the applicant has 12 months from the date of the selection committee to find a new location; applicant would apply for a new land use permit - the facility does not fit with the surrounding neighborhood; the facility would be better in a different location - the number of parking spaces; Mr. Larrouy responded, including the 20 spaces in the vicinity of the Head Start building, there are approximately 49 parking spaces; the site will accommodate 46 parking spaces subject to proposed condition #18 - this would require removal of the fence; the path of travel and separation changes; Mr. Larrouy responded, if the Use Permit was approved with the proposed site plan, the fence would remain in place - can not count the parking spaces for the entire facility if the fence separates the site - there are parking problems with this site; it’s a technical issue - high rating during the selection process; good project, wrong site - concerned with the parking; project offers great services; opposed to this facility in this neighborhood


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- heard the comments of the citizens; not comfortable with the dispensary Director Niblock - suggested a meeting date of July 14, 2011 if the Commission wished to continue the public hearing Chair Fant - directed staff to come back with findings for denial for the meeting of July 14, 2011 Chair Fant declared the public hearing reopened. Motion: Approve continuing the public hearing of the request of Val San Associates for a Use Permit to establish a medical cannabis dispensary in an existing 10,000-square foot building in the Channel Area at 1220 West Fremont Street (P11-089) to a date certain of July 14, 2011. Moved by Vice Chair Hatch, seconded by Commissioner Fugazi Vote: Motion carried 6-0 Yes: Commissioner Garcia, Commissioner Hatch, Commissioner Lopez, Commissioner Surritt, Vice Chair Fant, and Chair Fugazi . Absent:Commissioner Davis.

None

None

None

None

None

5. OTHER BUSINESS 9:57 PM

6. COMMUNICATION 9:57 PM

7. COMMUNITY DEVELOPMENT DIRECTOR’S REPORT 9:57 PM

8. COMMISSIONERS’ SUGGESTION 9:57 PM

9. AUDIENCE PARTICIPATION 9:58 PM

10. COMMISSIONERS’ RESPONSE

11. ADJOURNMENT 9:58 PM


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May 19, 2011 ::ODMA\GRPWISE\COS.CDD.CDD_Library:84098.1

PLANNING COMMISSION STAFF REPORT JULY 14, 2011

ITEM 4.01

MEMORANDUM July 14, 2011 TO: Planning Commission FROM: Michael E. Locke, Deputy City Manager/ Interim Director Community Development Director SUBJECT: UPDATE REGARDING THE PROPOSED USE PERMIT TO ESTABLISH

A MEDICAL CANNABIS DISPENSARY IN AN EXISTING 10,000-SQUARE FOOT BUILDING IN THE CHANNEL AREA AT 1220 WEST FREMONT STREET (APN 135-250-44; P11-089)

The public hearing for this proposal was initially held at the May 26, 2011 Planning Commission meeting. After considering all written and oral testimony, the Commission continued the hearing to July 14, 2011, and directed staff to prepare findings for denial of the project based on potential adverse impacts related to on-site parking and circulation, compatibility with the surrounding neighborhood uses, the concentration of medical cannabis dispensaries in the area, and public safety. Based on the Commission’s action, staff has developed the following findings: Recommendation: Denial, based on the following findings:

1. The subject site is not physically suitable for the proposed medical cannabis dispensary, because the fence that divides the site’s existing parking lot adversely affects on-site circulation and precludes access to parking between the two commercial buildings on the site, thereby increasing congestion and demand for on-street parking on Fremont and Argonaut Streets and the surrounding neighborhood. Removal of the fence, which is necessary to correct access and circulation problems on the subject site, would result in the proposed dispensary not meeting the Development Code’s minimum separation from existing residentially-zoned property in the surrounding neighborhood.

2. The proposed dispensary is potentially incompatible with land uses in the

mixed use neighborhood, more specifically the existing marine use businesses, nearby residential neighborhood and legal nonconforming

Stockton Non-Profit Collective, Inc. Staff Report P11-089 July 14, 2011 Page 2 of 3

residential uses located across Fremont Street from the proposed dispensary. Further, the proposed dispensary has the potential to adversely affect the character and integrity of the surrounding mixed use neighborhood, because clients of the facility may congregate in the area before or after the business’ hours of operation or may consume cannabis in the neighborhood to avoid security personnel monitoring the required 200-foot minimum buffer around the dispensary. In addition, the 7:00 a.m. to 8:00 p.m. hours of operation that are authorized by the Development Code have the potential to result in noise-related impacts on nearby residential uses.

In the event that the Planning Commission, after considering all written and oral testimony at the continued public hearing, wishes to approve the project, it may do so using the findings for approval and proposed conditions of approval that were included in the original staff report for this item and which have been attached to this memorandum. Upon further review of those conditions staff is recommending that, if the Planning Commission approves the project, the following additional Condition of Approval be placed on the approval: Additional Proposed Condition of Approval for Use Permit No. P11-089: 23. The wrought iron fence that separates the 10,000-square foot structure

containing the subject use from the detached 4,000-square foot structure in the northeast corner of the subject site shall be retained. A twenty-foot wide emergency access gate with a Fire Department-approved knox lock shall be constructed in the fence. The gate shall remain closed at all times, except as required by emergency services personnel.

In response to comments from staff, the applicant has submitted a revised parking lot layout plan. The revised plan (attached) contains a total of 56 parking spaces: 22 spaces for the 4,000-square foot structure in the northeast corner of the site and 34 spaces for the 10,000-square foot structure that is proposed to contain the medical cannabis dispensary. The Use Permit that was approved for the project site in 1981 contained a total of only 46 parking spaces: 20 spaces for the smaller structure and 26 for the larger structure. As noted in the original staff report for this project, the site is considered legally nonconforming with respect to on-site parking, because the current Development Code would require more parking for the two commercial structures than was required by the previously effective Zoning Code. Because both the previously approved and currently proposed uses are commercial in nature, no additional parking is required for the proposed dispensary in accordance with the Development Code’s provisions for legal nonconforming uses. The applicant has also submitted a revised “separation-zoning survey” (attached) to illustrate that the proposed dispensary meets the Development Code’s minimum separation standards.

Stockton Non-Profit Collective, Inc. Staff Report P11-089 July 14, 2011 Page 3 of 3 Finally, the staff has been given 41 letters (attached) in support of the proposed dispensary: one from one of the principals of the proposed principals of the dispensary, nine from local businesses and the remainder from individuals. MEL:RL:sis Attachments ::ODMA\GRPWISE\COS.CDD.CDD_Library:91616.1

EXHIBIT 1

STAFF REPORT P. C. Agenda May 26, 2011

STAFF REPORT Item 4.03: PUBLIC HEARING – Use Permit Case No. P11-089, Val San Associates Data: Val San Associates on behalf of Stockton Non-Profit Collective, Inc. is requesting a

Use Permit to establish a medical cannabis dispensary in an exiting 10,000-square foot building at 1220 West Fremont Street. The approximately 0.90-acre site contains a vacant 4,200-square foot building in the northeast corner of the site that is occupied by a Head Start program kitchen and an approximately 10,000-square foot building in the southwest corner of the site. The latter is partially-occupied by a retail furniture store that will vacate the premises if the dispensary is approved. The site is located within the boundaries of the Channel Area Overlay District, is zoned IG (Industrial, General) and is bounded to the:

north across Fremont Street by a laundromat, two single-family residences,

an auto repair business and a awning sales and repair business zoned CG (Commercial, General);

east across Argonaut Street by a construction company and a veterinary

office zoned IG; and

south and west by a boat brokerage and marine sales business zoned IG (see attached exhibits).

General Plan: The General Plan designates this site for Commercial uses. Environmental Clearance: The project is categorically exempt under the California

Environmental Quality Act (CEQA) (Section 10.1, Class 1, of the City of Stockton Guidelines for the Implementation of CEQA and Section 15301, Class 1, of the State CEQA Guidelines).

Discussion: On August 24, 2010, the City Council adopted ordinances to allow medical

cannabis dispensaries in selected zoning districts and to regulate the operations and employee permit requirements for such dispensaries. In addition, the Council

Stockton Non-Profit Collective, Inc. Staff Report P11-089 May 26, 2011 Page 2

adopted resolutions to implement administrative guidelines for the selection of dispensaries and to amend the City Fee Schedule to incorporate related fees. The intent of the ordinances is to provide standards for medical cannabis dispensaries and to regulate medical cannabis dispensaries in order to promote the health, safety and general welfare of the residents and businesses within the City.

In accordance with the noted administrative guidelines, a committee was appointed to review the applications that had been submitted by a number of prospective dispensary operators and to rank the operators’ applications. The ranking of the prospective operators was completed in March of this year. The top-ranked prospective operators were allowed to submit Use Permit applications to the Planning Division. The rankings were based upon each operator’s resume/experience, proof of assets available, prior code violations, type of organization, business plan, staffing plan, and security plan. If the specific sites are approved by the Planning Commission, those operators would, in turn, be able to establish medical cannabis dispensaries at their identified sites in the City. In addition, all employees of dispensaries must secure a City-issued work permit before the start of their employment. The applicant submitted the subject Use Permit application on March 28 to establish a dispensary at the project site. In addition to the normal submittal requirements for determining the completeness of a Use Permit application, staff had to determine whether the project site for the subject application met the following minimum separation standards, with specified means of measurement, that were adopted by the City Council and incorporated into the Stockton Municipal Code (SMC) as Section 16.80.185.B, “Medical Cannabis, Separation Standards:”

1. No person, whether an owner, principal, agent, clerk, or employee either for him or herself or any other person, or an officer of a corporation shall place, maintain, own, or operate a Medical Cannabis Dispensary in the following locations:

a. Within 300 feet of a residentially zoned property or religious institution;

b. Within 500 feet of a transitional housing facility; and

c. Within 600 feet of any other Medical Cannabis Dispensary, school (K-12), park, library, child care facility, community center that is attended by minors, adult-related use, on-sale bar with general alcohol (Type 48).

2. The distance between a Medical Cannabis Dispensary and the above-listed uses shall be measured along the path of travel from the front door of the Dispensary to the front door of the building or structure, or portion of the building or structure, in which the above-listed uses occur or are located. In addition to this measurement, no Medical Cannabis Dispensary can be located within 300 feet of the above-listed uses as measured in a straight line


from the front door of the Dispensary to the nearest property line of the other use.

Based upon an analysis of surrounding land uses and zoning designations, staff found that the project site met the noted separation standards and determined the application to be complete for processing on May 9, 2011, and initiated both the application referral and public notice processes.

In addition to the noted minimum separation standards, the Development Code also states that there can be no more than three (3) valid Use Permits initially permitted in the City (based upon its current population) and that there can be no more than two (2) facilities in any single City Council district (SMC Section 16.80.185.A). The subject site is located within the boundaries of Council District No. 5. The subject site for Item No. 4.02 on this agenda is also located within the boundaries of Council District No. 5. In accordance with the noted Code Section, the Planning Commission is not precluded from approving both of these projects, subject to being able to make the required findings for approval and adopting appropriate conditions of approval. SMC Section 16.80.195.C, “Security Standards,” (Exhibit 8) contains specific security measures that must be provided for all medical cannabis dispensaries. The required measures include controlled access to the dispensaries (e.g. electronic/mechanical entry systems), a video surveillance system, on-site security during hours of operation, providing the names and phone numbers of on-site community relations staff to the neighborhood, a centrally-monitored alarm system, adequate levels of interior and exterior lighting, providing reasonable access to City staff for inspection of the dispensary and providing a Fire Department-approved lock box at the entrance to facilitate Fire and Police Department access in case of an emergency. Information contained in the applicant’s Permit to Operate application was thoroughly reviewed by the qualifying committee, as well as by staff from the Police and the Planning Division, and appears to adequately address the noted SMC requirements. Given the highly sensitive nature of security measures that will be incorporated into the subject dispensary, staff has not included the applicant’s security plan in the Commission’s staff report. SMC Section 16.80.195.D, “Operational Standards,” (Exhibit 9) contains specific operational standards for dispensaries. Those standards restrict the “consumption” of cannabis within 200 feet of the premises; require compliance with applicable State food, drug and cosmetic regulations; prohibit the consumption of alcohol on the premises of the dispensary; require an air filtration system; prohibit the presence of medical personnel on the premises in order to preclude medical advice or prescriptions to customers; restrict the presence of minors on the premises; limit the hours of operation to between 7:00 a.m. and 8:00 p.m.; restrict the display or sales of drug paraphernalia and the cultivation of cannabis; limit the display and storage of product; and prohibit cultivation products. Based upon a review of the operational standards of the applicant’s Permit to Operate, staff has determined that it appears to meet the noted requirements.

Stockton Non-Profit Collective, Inc. Staff Report P11-089 May 26, 2011 Page 4 The Planning Commission’s pervue with respect to the proposed use is limited to potential land use impacts on the City in general and to the neighborhood that surrounds the project site. Those impacts could potentially include, but not be limited to, traffic, public health and safety and noise. The Commission should also consider the suitability of the site for the proposed use and the compatibility of the proposed use on existing and future land uses on the subject site and in the vicinity of the site. As is the case with all discretionary planning applications, including Use Permits, the proposed use must be in compliance with applicable provisions of the California Environmental Quality Act (CEQA). However, the Planning Commission can not base its decision on this matter on the identity of the property owner, proposed operator or any employees or agents of the proposed dispensary. The Commission is reminded that the Use Permit, if approved and activated, will “run with the land” and continue to be valid upon any change of ownership of the land or business. With respect to findings, SMC Section 16.168.050.A, “Findings and Decision, General Findings,” contains seven specific findings of fact that must be made in writing whether approving or denying the subject Use Permit. For the Planning Commission’s information, a medical cannabis dispensary is not included in the Development Code’s list of problem uses, and, therefore, is not subject to the additional findings contained in SMC Section 16.168.050.B, “Problem Uses.” With respect to parking, the project site contains approximately 46 parking spaces, which met the on-site parking standards required by the previously-effective Zoning Code for the new 10,000-square foot commercial building that was authorized by an approved Use Permit (UP86-81) in 1981 and the already-existing 4,000-square foot commercial building on the site. The site is now considered legally nonconforming with respect to parking, because the currently-applicable Development Code requires more on-site parking than was required in 1981. Because both the previously-approved and currently-proposed uses are commercial in nature, no additional parking is required for the proposed dispensary in accordance with the Development Code’s provisions for legal nonconforming uses. In response to the application referral, the Police Department began compiling and analyzing calls for service in the vicinity of the proposed dispensary. The analysis had not be been completed by the time the staff report was finalized. Upon receipt of the Police Department’s formal comments, staff will forward those comments to the Planning Commission under a separate memorandum. In its response to the application referral, the San Joaquin County Environmental Health Department (EHD) indicated that neither statewide standards nor guidelines currently provide specific sanitation requirements for the dispensing of medical cannabis in food products (known as “edibles”). Due to concerns regarding possible public health risks related to foodborne illness associated with unregulated dispensing of medical cannabis edibles, EHD staff have developed six specific requirements that are being treated as an interim policy for this type of use. Those six requirements have been incorporated into the staff report’s recommended Conditions of Approval for this dispensary, as well as the two other dispensaries on this agenda.

Stockton Non-Profit Collective, Inc. Staff Report P11-089 May 26, 2011 Page 5 The Police Department, Fire Department, Engineering Section, Economic Development Department, the Attorney’s Office and other City departments, the San Joaquin County Environmental Health Department, the Stockton Unified School District, the San Joaquin County Office of Education and the surrounding neighborhood have been notified of this request. As of the writing of this staff report, no objections have been received concerning this request. The recommended conditions that were submitted by the reviewing departments have been incorporated into the staff report’s recommended Conditions of Approval. Recommendation: Approval based on the following findings:

1. The proposal is categorically exempt under the California Environmental Quality Act (CEQA) (Section 10.1, Class 1, of the City of Stockton Guidelines for the Implementation of CEQA and Section 15301, Class 1, of the State CEQA Guidelines).

2. The subject medical cannabis dispensary is allowed within the IG (Industrial,

General) zoning district, subject to the approval of a Use Permit and compliance with all applicable provisions of the Development Code, including Chapter 16.80.195, “Medical Cannabis.”

3. The subject use is not expected to adversely affect the integrity or character

of the neighborhood and zoning district in which it is located, because its security and operational characteristics are in compliance with the Development Code’s required minimum standards for these components of its business and operation plan.

4. The subject use is expected to be consistent with the general land uses,

objectives, policies and programs of the General Plan, including Land Use Goal No. LU-1, which is intended to limit land use conflicts (Policy 7) and promote safe development (Policy 11), and Public Facilities and Services Goal No. PFS-7, “Law Enforcement,” which is intended to promote public safety programs (Policy 4).

5. The subject site is physically suitable for the type and density/intensity of use

being proposed, including the provision of services (e.g., sanitation and water), public access and the absence of physical constraints (e.g., earth movement, flooding, etc.), because it is served by public services, meets applicable coverage standards and has an adequate amount of on-site parking to accommodate both the proposed and existing uses on the subject site.

6. The establishment, maintenance or operation of the subject use at the

subject site and for the specified hours of operation are not expected to endanger, jeopardize or otherwise constitute a hazard to the public convenience, health, interest, safety or general welfare of persons residing or


working in the neighborhood of the proposed use, because the use will comply with the Development Code’s Safety and Operational Standards, as well as with the adopted Conditions of Approval.

7. The location, size and operating characteristics of the subject use are not

expected to be incompatible with existing and future land uses on the subject site and in the vicinity of the subject site, because it is a retail use operating in a previously-approved commercial structure (approved by Use Permit No. UP86-81) and it will comply with the Development Code’s Safety and Operational Standards, as well as with the adopted Conditions of Approval.

8. Approval of the subject medical cannabis dispensary is not expected to

adversely affect existing or future buildings, signs or other structures within the Stockton Channel Area, because the subject dispensary will be located in an existing structure that was the subject of a previously-approved Use Permit for a new structure in the Channel Area.

Proposed Conditions for Use Permit No. P11-089:

1. Comply with all applicable Federal, State, County and City codes, regulations and adopted standards and pay all applicable fees.

2. In the event that the operation of the subject use or the sale of medical

cannabis prove detrimental to the health, safety, peace or general welfare of the surrounding neighborhood, this Use Permit shall be subject to revocation or modification as provided in the Development Code.

3. The owners, developers and/or successors-in-interest (ODS) shall be

responsible for the City's legal and administrative costs associated with defending any legal challenge of the approvals for this project or its related environmental document.

4. All required elements of the mandatory Security Plan shall be approved by

the Police Department and be in place prior to initiation of the subject use and all security guards employed at the subject dispensary shall be approved by the Police Department prior to the start of their employment.

5. The applicant shall post the name and phone number of the required on-site

community relations staff on the exterior of the business, near the public entrance to the dispensary. An answering machine or similar device shall be operational during all times that the business is closed. The posting shall also state that the Police Department may be contacted for emergency problems associated with the subject use and that the Code Enforcement Division may be contacted to report non-emergency problems associated with the subject use. The notice should include 24-hour phone numbers for


the Police Department and the Code Enforcement Division. A log of calls received by the dispensary’s community relations staff/phone answering system shall be maintained and submitted to the Community Development Department as a part of all required reviews.

6. “No Loitering” signs shall be posted on the exterior of the business, in

accordance with the Stockton Municipal Code.

7. Any pay phones shall be restricted to outgoing calls only and located inside the business.

8. The operator of the business shall monitor the area surrounding the store to

prevent customers from congregating outside the premises and to prevent parking and noise problems.

9. All existing landscaping areas, planters and tree wells shall be planted and

maintained in accordance with applicable provisions of SMC Chapter 16.56, “Landscaping Standards.” Landscaping plans shall be submitted by the applicant or operator within 30 days of the effective date of the Use Permit to the Planning Division for approval. All approved landscaping shall be installed by the applicant/operator within 90 days of staff’s approval of the Landscaping Plan.

10. Any signage related to the subject use shall be in compliance with the

provisions of SMC Section 16.80.195.E and subject to prior approval by the Community Development Director or Planning Commission.

11. This Use Permit and any required permits and licenses shall be posted in a

conspicuous place within the interior of the premises and be immediately made available to City personnel upon inspection of the premises.

12. Prior to the initiation of the subject use, the applicant shall submit a

completed “Service Request Form” to EHD staff requesting a kitchen inspection. The storage, handling, sanitation and preparation of edibles will be evaluated during the inspection. The inspection will be assessed at the Department’s current hourly rate.

13. No edible cannabis products that require refrigeration or hot-holding shall be

manufactured for sale or distribution at the dispensary. Other edible cannabis products produced at the dispensary shall be limited to non-potentially hazardous foods, such as cookies, brownies and candies.

14. Cannabis edibles shall not be produced, prepared or stored in private

residences.

15. To prevent cross-contamination, food facilities that are regulated under the


California Retail Food Code (CalCode) shall not be use for the production, preparation or storage of cannabis edibles.

16. Edibles shall be clearly labeled with a warning that the item contains medical

cannabis and is medication, not food. The package label shall be opaque (not clear) and shall be clearly labeled with a warning to keep the product away from children. The package label shall not be attractive to children or resemble candy.

17. Employees that are suffering from symptoms associated with acute

gastrointestinal illnesses or are known to be infected with a communicable disease that is transmissible through food are prohibited from preparing edibles.

18. Prior to initiating the subject use, the applicant/developer shall prepare and

submit an on-site parking and circulation plan that demonstrates compliance with all applicable City development standards and is subject to the approval of the Community Development Director. Any proposed fencing or gates to be used in conjunction with the onsite parking and circulation area shall additionally be shown on the plan. Subsequent to the approval of said plan, all necessary on-site improvements, including but not limited to, paving and re-striping, shall be completed prior to initiation of the use.

19. The westerly gate along Fremont Street shall remain open during normal

business hours. Additionally, the gate shall be opened one-half hour before and remain open one-half hour after normal business hours. Gates shall remain manually operated, no electric gates are permitted.

20. The Fire Department shall be allowed to inspect the subject dispensary at

any reasonable time to ensure compliance with the all applicable provisions of the Fire Code, as well as other applicable codes, laws and provisions, and is authorized to enforce those standards, as necessary.

21. The use of any open flame device, including, but not limited to, decorative

candles, torches and cigarette lighters, shall be prohibited within the dispensary.

22. The subject use shall be subject to review six (6), 12, 18, 24 and 36 months

after initiation of the approved use. At least one (1) month prior to the required review, the operator shall submit a Compliance Report to the Planning Division. The document shall, at a minimum, report on compliance with all of the adopted Conditions of Approval and the Security Plan, as well as with the required elements contained in SMC Section 16.80.195.D, “Operations Standards.”


May 18, 2011 Note: Staff reports are prepared well in advance of the Planning Commission consideration of the proposal and reflect the staff’s view based on the best available information at the time the report was formulated. Evidence submitted during the course of the public hearing may require a re-evaluation of the staff’s position. This staff report was prepared by Planning Manager Richard Larrouy. ::ODMA\GRPWISE\COS.CDD.CDD_Library:90852.1

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Exhibit 8 Page 1

P11-089

Stockton Municipal Code Section 16.80.195.C, “Security Standards”

Dispensaries shall provide for security as follows:

1. The entrance into a Dispensary building shall be locked at all times with entry strictly controlled; e.g., a “buzz-in” electronic/mechanical entry system is highly encouraged. A viewer shall be installed in the door that allows maximum angle of view of the exterior entrance.

2. Prior to initiation of the Dispensary, a video surveillance system, with at least a seven (7) day continuous recording capability and approved by the Police Department, shall be in place and archived for at least 30 days. The video surveillance system shall cover the exterior of the premises, including parking areas and all entrances to the building.

3. The operator of the Dispensary shall provide an on-site, Police Department-approved and permitted, State-licensed, uniformed security guard during hours of operation.

4. A Dispensary shall provide the Community Development Department and the Police Department with the name, phone number, e-mail address, and facsimile number of an on-site community relations staff person to whom one can provide notice if there are operating problems associated with the use. The Dispensary shall make every good faith effort to encourage neighborhood residents to call this person to try to solve operating problems, if any, before any calls or complaints are made to the City. This number shall be available to the public upon request.

5. Prior to initiation, the location shall have a centrally-monitored alarm system subject to the approval of the Stockton Police Department.

6. Interior building lighting, exterior building lighting and parking area lighting must be in compliance with the City of Stockton Municipal Code and must be of sufficient foot-candles and color rendition to allow the ready identification of any individual committing a crime on-site at a distance of no less than 40 feet (a distance that should allow a person reasonable reaction time upon recognition of a viable threat).

Exhibit 8 Page 2

P11-089

7. The Stockton Community Development Department, Stockton Fire Department, and Stockton Police Department may inspect every Dispensary at any reasonable time to ensure compliance with the provisions of the Stockton Municipal Code (SMC) and, within their respective jurisdictions, are authorized to enforce the provisions of the SMC. Patient records shall remain confidential in compliance with State law.

8. A Fire Department lock box shall be installed at the entrance to each facility. A key for the business shall be placed in the lock box for Police and Fire Department personnel to use in case of an emergency.

Exhibit 9 Page 1

P11-089

Stockton Municipal Code Section 16.80.195.D, “Operational Standards”

1. No cannabis shall be smoked, ingested or otherwise consumed on or within 200 feet of the premises.

2. Edible cannabis products shall comply with the following standards and shall be in compliance with the California Food, Drug, and Cosmetic regulations:

a. No edible cannabis products requiring refrigeration or hot-holding shall be manufactured for sale or distribution at a Cannabis Dispensary, due to the potential for food-borne illness.

b. Baked medicinal products (i.e., brownies, bars, cookies, cakes), tinctures and other non-refrigerated type items are acceptable for manufacture and distribution at Cannabis Dispensaries.

c. Preparation of edibles may only be completed in a commercial kitchen inspected by and in compliance with the regulations of the County Environmental Health Department that has jurisdiction at the location of the kitchen.

d. All items shall be individually wrapped at the original point of preparation. Labeling must include a warning if nuts or other known allergens are used, and must include the total weight (in ounces) of cannabis in the package or the weight equivalent of dried cannabis used to manufacture the product. If more than one dose unit is in a package, each unit must be individually labeled. A warning that the item is a medication and not a food must be distinctly and clearly legible on the front of the package and on each unit if more than one unit is contained in the package. The package label must have a warning clearly legible emphasizing that the product is to be kept away from children. The label must also state that the product contains medical cannabis.

e. Packaging that makes the product attractive to children or imitates candy is not allowed. Any edible cannabis product that is made to resemble a typical food product (i.e., brownie, cake) must be in an opaque (non-see-through) package.

Exhibit 9 Page 2

P11-089

f. Individuals conducting the manufacturing or sale of products shall thoroughly wash their hands before commencing production and before handling the finished product.

g. In order to reduce the likelihood of foodborne disease transmission, individuals who are suffering from symptoms associated with acute gastrointestinal illness or are known to be infected with a communicable disease that is transmissible through foodstuffs are prohibited from preparing edible cannabis products until they are free of that illness or disease, or are incapable of transmitting the illness or disease through foodstuffs. Anyone who has sores or cuts on their hands must use gloves when handling edible products.

h. Edible cannabis products for sale or distribution in a Cannabis Dispensary shall have been prepared by a member of that Cannabis Dispensary. No non-member edible cannabis products are allowed for sale or distribution at a Cannabis Dispensary. A business entity that produces edible cannabis products and sells them to a dispensary is not allowed, as a business entity cannot be a member of a dispensary.

3. A Dispensary shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages, or operate a business that sells alcoholic beverages. Consumption of alcoholic beverages on the grounds of the dispensary, both interior and exterior, shall be prohibited.

4. A Dispensary shall have an approved air filtration system to filter odors from the facility, ensuring off-site odors shall not result. No cannabis odors shall be evident exterior to the facility.

5. No medical personnel shall be permitted onsite for the purposes of providing written or verbal recommendations stating the need for the use of medical cannabis to customers of the facility.

6. Minors.

a. It is unlawful for any permittee, operator, or other person in charge of any Dispensary to employ any person who is not at least 18 years of age.

Exhibit 9 Page 3

P11-089

b. Persons under the age of 18 shall not be allowed on the premises of a Dispensary unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or guardian.

c. The entrance to a Dispensary shall be clearly and legibly posted with a notice indicating that person under the age of 18 are prohibited from entering the premises unless they are a qualified patient or a primary caregiver and they are in the presence of their parent or guardian.

7. The hours of operation shall be limited to between 7:00 a.m. and 8:00 p.m.

8. There shall be no display or sales of drug paraphernalia as defined in California Health and Safety Code Section 11362.5.

9. Cultivation, as defined in SMC Section 16.240.020, shall not be permitted within a Medical Cannabis Dispensary.

10. No product shall be visible from the exterior of the building.

11. All product is to be locked and secured at all times.

12. The storage or sale of cultivation products (i.e., fertilizers, germicides, plant feeds, etc.) shall be not be allowed.

13. The retail sale of medical cannabis clones may be permitted provided that no cultivation of the clones takes place at the Dispensary.

::ODMA\GRPWISE\COS.CDD.CDD_Library:90928.1


EXHIBIT 10 PAGE 1

PH: 06-14-11

REVISED PARKING LOT LAYOUT



EXHIBIT 10 PAGE 2

PH: 06-14-11

REVISED PARKING LOT LAYOUT



PH: 06-14-11

SEPERATION-ZONING SURVEY


EXHIBIT 11

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