HomeMy WebLinkAbout2018/02/27 Item 11 - Written Communication (3) /r► II
Sheree Kansas tIUM
From: Kerry Bigelow
Sent: Tuesday, February 27, 2018 8:10 PM
To: Sheree Kansas
Subject: FW: 2 of 2 Ordinance notes
Attachments: CV Ordinance Suggestions LW CaligrownT" 2.26.2018.docx;ATT00001.htm_
Can you please add these to the item?
Kerry Bigelow, mMc City Clerk I Office of the City Clerk
276 Fourth Avenue Chula Vista, CA 191910 1 (619) 407-3590 1 kbigelow@chulavistaca.gov
Please note that email correspondence with the Cityof Chula Vista,along with attachments,may be subject to the California Public Records Act,
and therefore may be subject to disclosure unless
From: Leslie Wolf Branscomb
Sent:Tuesday, February 27, 2018 8:09 PM
To: Kerry Bigelow<KBigelow@chulavistaca.gov>
Subject: FW: 2 of 2 Ordinance notes
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From: Laura Wilkinson Sinton [ ]
Sent: Tuesday, February 27, 2018 10:37 AM
To: Patricia Aguilar; Leslie Wolf Branscomb
Subject: 2 of 2 Ordinance notes
Councilwoman Aguilar,
As promised, I am attaching my thoughts and suggestions surrounding the ordinance (I pulled the latest version
- DFF98 - as Leslie sent it to me as an email attachment). While I am less than happy with the new requirement
to secure property prior to applying I can live with it . It doesn't require a negotiated signed lease - burdensome
prior to assurance of a license but sadly still allows land grab actors to flourish. The strongest objection I have is
the process of including a lottery as "selection criteria". I will explain why I feel so strongly about that.
With only eight (8) storefront dispensaries, you have a"government enforced scarcity". When government
entities regulate and reduce to scarce few outlets for a high demand product/service, it arti ccially suppresses
supply. That suppression of supply is what allows for"leakage" - or demand to be met outside of government
regulated and controlled channels. That leakage, in this case, is the black market that has plagued Chula Vista of
late. Until dispensaries are up across the region, that may continue to on a smaller scale, i.e. they are not driving
to San Diego to buy legally as we know.
Issuing storefront licenses will mitigate some (but likely not all) of that - until the city decides to let the supply
and demand equation works itself out without the enforced scarcity( libertarian-types are likely in favor of that
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for other more established "trusted"business categories). While that is at least a few years away, you will have
several applicants vying for these licenses. With a lottery you will get the luck(or bad luck) of the draw. You
are not guaranteed a great operator,just someone who may appear great on paper meeting the minimum
qualifications to hurdle over the Chief of Police and City Finance Director/City Manager. And gaming the
lottery with multiple applications.
With enforced scarcity comes privilege and with privilege comes responsibility. A merit based system -point
scoring like that done in other cities to glean the best of the best applicants, as Grover Beach and several other
California cities have done - will make sure that the privileged operators will be the most responsible, law
abiding, community focused additions to the city of Chula Vista. With something that has such perceived
risk attached, why would you leave this to chance? Why wouldn't the council and city personnel have more of a
say than pulling a name out of a hat like a raffle?
I know HdL has done dozens of these merit based award processes. They gain confidence in the community
knowing their elected officials are truly vetting each and every one to allow only the best for the community to
operate there. I urge you in the strongest terms to consider that course of action.You have time to make these
changes.
The regulations as a whole are very thoughtful and written right and tight.
2
Ordinance of The City of Chula Vista Adding Chapter 5.19 of The Chula Vista Municipal Code
To Regulate Commercial Cannabis 2.26.2018 (suggestions by Laura Wilkinson/CaligrownT")
Under "Definitions"
Owner means any of the following:
In "A." and "B." for both Business and Premise ownership, I would include language that would include
all members of any Corporation or LLC regardless of shareholder/member aggregate ownership. Better
to know "who" and every "who" upfront. This is not burdensome unless a publicly traded corporation.
Page 13.
(C) f. Documentation showing$250K in liquid assets. This is too much for a delivery business, and too
little for storefront (was someone trying to split the difference?). Delivery can be $150,000 and
Dispensary$400,000 which may be more realistic.
Page 16.
7. "Phase Two Lottery System". I strongly suggest you convert this to a merit based system. Don't
leave a decision like this to random chance. Choose the best for Chula Vista to gain public trust. There
are consultants (HdL) with experience with merit based selection process who can assist you with this
to select the best possible outcomes for Chula Vista. Please consider this.
Page 17.
It is good that a felony disqualifies anyone from owning or renting to a cannabis business. Rewarding
law breakers sets a bad precedent— I am sure these individuals have likely asked you to soften this
qualification. Don't.
Page 25.
5.19.080 D. This addresses the tracking systems for POS and inventory—California requires this same
technology and access to it. Perhaps the city can help coordinate to prevent multiple systems tracking
redundantly-this may be more for the regs than the ordinance. An API would accomplish this to the
city's systems.
Page 26.
H. I would add a great deal to these posting requirements. They should include the following for public
safety:
"DO NOT operate a motor vehicle or heavy machinery under the influence of cannabis. Keep all
cannabis products strictly out of the reach of children." Make sure in the regulations the font size of
the warning (size of sign) and area of display is clearly defined so it doesn't get typed in too small type
to see and posted somewhere less than visible to all.
Page 28.
Posting requirements are clear here for resale, etc.
If you tie the lab requirements and security requirements specifically to state regulations, they will
exceed what you have written in the ordinance. Those are suggestions for improvement. Thank you.
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