City Council Agenda and Packet 2019 08 06

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City Council Meeting Minutes July 23, 2019 Page 4 of 14 could be by voter approval of the second ballot question or by some other Council or voter action in the future. • Revenues from the tax can be used for the following purposes: (1) to pay or reimburse the City for direct and indirect costs incurred or expended by the City for training, enforcement, and administration of all applicable marijuana laws and regulations; (2) to support local drug and alcohol programs and facilities; and (3) for other general purposes of the City. • Staff estimates for the first year revenue would be $100,000. Staff doubled the estimate to avoid underestimation and potential refund and rate reduction under TABOR. • Second reading amendments are proposed to revise the ballot title to reflect the basis for the imposition of tax will be the average market rate rather than the price paid by the purchaser. Staff proposes some additional second reading amendments to capture the available excise tax revenue for all marijuana transferred by a cultivation facility. Cultivation Facility Ordinance No. 1777 The second ordinance addresses retail marijuana cultivation facilities. Specifically, it: • Refers to voters the question of whether retail marijuana cultivation facilities should be allowed within the Industrial zone districts of the City. • Cultivation facilities will be allowed only if the voters also approve the excise tax on cultivation facilities. • Makes corresponding amendments to Titles 5 and 17 of the City Code. • The following two changes were made to the ordinance after Council reviewed it on June 11: o Provides that the total combined square footage of all licensed retail marijuana cultivation facilities operating in the City will not exceed 150,000 square feet of building area. o Added a requirement that plants be organized in orderly rows and include aisles of sufficient size to provide clear access to exits. • Requires cultivation occur within a locked and enclosed space. • As part of the license application, a cultivation facility will be required to submit a ventilation plan describing how odors are prevented from leaving the premises. • The prohibition against odor emissions City Council adopted as part of Ordinance No. 1769 in February, 2019 will also apply to cultivation facilities. Specifically, cultivation facilities (along with stores, manufacturers and testing facilities) are prohibited from emitting detectable odors that leave the premises and that interfere with the reasonable and comfortable use and enjoyment of another's property. Mayor Muckle opened the public hearing and asked the City Attorney's remarks be included in the public hearing. He called for Council questions. Mayor Pro Tem Lipton asked if the start date could be extended to April to allow for further regulations being imposed by Council. City Attorney Kelly noted Council wanted 21