HomeMy WebLinkAbout2020-40 - Calling Election Marijuana MeasureRESOLUTION NO. 2020-40
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, ORDERING THE SUBMISSION TO THE QUALIFIED ELECTORS OF
THE CITY OF A CERTAIN MEASURE RELATING TO RETAIL CANNABIS USES
TAX AND REGULATION AT THE GENERAL ELECTION TO BE HELD ON
TUESDAY, NOVEMBER 3, 2020, AS CALLED BY RESOLUTION NO.2020-25
WHEREAS, a General election on Tuesday, November 3, 2020 has been called
by Resolution No. 2020-25, adopted on June 16, 2020, and
WHEREAS, the City Council also desires to submit to the voters at the election a
question relating to retail cannabis uses, tax and regulation; and,
WHEREAS, on November 8, 2016 the electorate of the City of Costa Mesa voted
on and approved the Costa Mesa Medical Marijuana Measure, known as Measure X.
Measure X, codified as Ordinance 16-15, sets forth the specific area in the City within
which medical cannabis distributors, manufacturers, processors, research and
development laboratories, testing laboratories and transporters can be located;
provides for City regulation of these cannabis businesses in a manner consistent with
the statewide regulations; reaffirmed the existing ban on delivery, dispensaries and
cultivation within the City; and imposed a gross receipts tax on all cannabis distributors,
manufacturers, processors, testing laboratories, transporters, and research and
development laboratories, as well as any other marijuana or cannabis business; and
WHEREAS, pursuant to Ordinance 18-4, the City Council amended various code
sections adopted by Measure X to allow and permit adult use cannabis products to be
manufactured, distributed, transported, tested and developed in the same manner and
areas as medical cannabis uses pursuant to Measure X, to maintain the existing bans
on retail sales and delivery of cannabis and to otherwise revise provisions of the
Municipal Code to achieve consistency with state law; and
WHEREAS, Measure X provided that any future changes or amendments to
Ordinance 16-15, including any future changes or amendments any Municipal Code
section affected by the Measure or a reduction in the tax imposed by this Measure, may
Resolution No. 2020-40 Page 1 of 5
occur in the manner set forth in the Government Code and the City's Municipal Code,
and shall not require a vote of the people, except that any future change or amendment
to Ordinance 15-16 related to dispensaries and/or cultivation or the specific area within
the City where such businesses may be located shall require a vote of the people; and
WHEREAS, California voters approved the legalization of cannabis for adult use
in 2016. Allowing the legal sale of recreational cannabis in City of Costa Mesa is
estimated to generate up to $3 million for essential city services and infrastructure
maintenance and improvements; and,
WHEREAS, increasingly, the state of California has shifted responsibility for
many programs back to local cities, including Costa Mesa, without the funds necessary
to provide the services that local residents need. In fact, over the last five years, the
state has taken more than $21 million from Costa Mesa, in lost redevelopment funding
alone; and,
WHEREAS, after the effects of COVID-19 are considered, the City experienced
a revenue shortfall of nearly $30 million in funding for local services in the upcoming
year. Passage of this measure would add at least $1.3 million to the City's general fund
and limit and/or prevent cuts to basic services such as 911 emergency response and
road repairs, and support for small businesses to help our local economy recover; and,
WHEREAS, the intent of this measure is to allow the City Council to adopt one or
more ordinances that would amend Measure X and/or the Municipal Code sections
affected by Measure X, to allow for retail sale and delivery of cannabis and/or cannabis
products, in specified areas of the City, provided that such ordinances contain specified
minimum standards, and to impose a 4% to 7% gross receipts tax upon such uses;
and,
WHEREAS, the intent of this measure is also to limit the power of the City
Council to adopt and/or amend such ordinances, by requiring that any such ordinance
and/or amendment be adopted by a 2/3 vote of the entire City Council, and that it
specifically limit such uses to the Commercial and/or the Green Zones, contain
minimum standards, including specific distances from existing sensitive uses, labor
Resolution No. 2020-40 Page 2 of 5
peace agreements for such businesses; and that the proceeds of this tax be subject to
both an annual audit by an independent certified public accountant; and,
WHEREAS, this measure does not increase taxes on local Costa Mesa residents
or all businesses within the City; and,
WHEREAS, this measure includes strict accountability requirements to make
sure that funds are used effectively and as promised, including annual independent
financial audits which will be available online and public disclosure of all spending; and,
WHEREAS, the City of Costa Mesa, pursuant to the provisions of the California
Environmental Quality Act ("CEQA") (California Public Resources Code Sections 21000
et seq.) and State CEQA guidelines (Sections 15000 et seq.) has determined that the
Ordinance adopted by this measure is exempt pursuant to Section 15061(b)(3) of Title
14 the California Code of Regulations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF COSTA MESA,
CALIFORNIA, DOES HEREBY RESOLVE, DETERMINE, AND ORDER AS FOLLOWS:
SECTION 1. That the City Council, pursuant to its right and authority, does
order submitted to the voters at the General Municipal Election the following question:
Measure _: The City of Costa Mesa Retail Cannabis Tax
and Regulation Measure
Response
Vote
Shall an ordinance authorizing, regulating, taxing retail
sales/deliveries of cannabis; limiting locations of cannabis
Yes
establishments to protect neighborhoods, schools, children;
requiring security; imposing a gross receipts tax of 4% to 7%
No
on retail cannabis businesses until ended by voters; raising
approximately $3,000,000 annually for maintaining 911
response, fire/public safety protection, parks, youth/senior
services, addressing homelessness, retaining small
businesses, other general services; requiring public
disclosure, funds controlled locally; be adopted?
SECTION 2. That the proposed measure submitted to the voters is attached
hereto as Exhibit A.
SECTION 3. That the vote requirement for the measures to pass is a majority
Resolution No. 2020-40 Page 3 of 5
(50% +1) of the votes cast.
SECTION 4. That in all particulars not recited in this resolution, the election shall
be held and conducted as provided by law for holding municipal elections.
SECTION 5. That notice of the time and place of holding the election is given and
the City Clerk is authorized, instructed and directed to give further or additional notice of
the election, in time, form and manner as required by law.
SECTION 6. That the City Clerk shall certify to the passage and adoption of this
resolution.
PASSED AND ADOPTED this 21st day of July 2020.
yok-lz
K trina Foley, Mayor
ATTEST:
(-iy- Att/ -
Brenda Green, tity Clerk
APPROVED AS TO FORM:
imberly H Barlow, City Attorney
Resolution No. 2020-40 Page 4 of 5
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss
CITY OF COSTA MESA )
I, BRENDA GREEN, City Clerk of the City of Costa Mesa, DO HEREBY
CERTIFY that foregoing Resolution No. 2020-40 was duly passed and adopted by the
City Council of the City of Costa Mesa at a regular meeting held on the 21St day of July,
2020, by the following roll call vote, to wit:
AYES: COUNCIL MEMBERS: CHAVEZ, GENIS, MARR, REYNOLDS,
STEPHENS, AND FOLEY
NOES: COUNCIL MEMBERS: MANSOOR
ABSENT: COUNCIL MEMBERS: NONE
IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the
City of Costa Mesa this 22"d day of July 2020.
L - 14
M-A AM
Attachments:
1. Exhibit A — Proposed Ordinance: City of Costa Mesa Retail Cannabis Tax and
Regulation Measure
Resolution No. 2020-40 Page 5 of 5
CITY -SPONSORED MEASURE TO BE SUBMITTED DIRECTLY TO THE VOTERS
The City Council for the City of Costa Mesa submits the following measure to the
voters of the City for approval and enactment:
SECTION 1. Name.
This ballot measure shall be known and may be cited as "the City of Costa Mesa
Retail Cannabis Tax and Regulation Measure" and shall be referred to herein as the
"Measure."
SECTION 2. Purpose.
The purpose of the Measure is to amend Measure X to allow the City Council to
adopt, and thereafter amend, by a 2/3 vote of the entire membership of the City
Council, one or more ordinances to provide for the specific areas in the City within
which City and state licensed cannabis retail storefront (dispensary) and non -
storefront (delivery only) uses can be located; to provide mimimum standards for future
City regulation of these uses; and to impose a general tax on all retail and delivery
cannabis businesses within the City, as well as on businesses making deliveries into
the City if such delivieries are permitted by the City, at a rate of 4 to 7% of gross
receipts. Nothing contained in this Measure is intended to limit, curtail or abrogate the
City's power to impose greater restrictions or limitations on retail cannabis uses than
those set forth herein.
Now, therefore, the People of the City of Costa Mesa do ordain as follows:
AN ORDINANCE OF THE PEOPLE OF THE CITY OF COSTA MESA,
CALIFORNIA, TO AMEND MEASURE X BY AUTHORIZING THE CITY
COUNCIL TO ADOPT AN ORDINANCE PERMITTING, REGULATING
AND ESTABLISHING A GROSS RECEIPTS TAX OF BETWEEN 4 TO 7%
ON THE RETAIL SALE AND DELIVERY OF CANNABIS WITHIN THE
CITY AS EXPRESSLY LIMITED HEREIN.
SECTION 3. Uncodified ordinance.
The City Council of the City of Costa Mesa, pursuant to the procedures set forth in
the Government Code and the City's Municipal Code and without prior approval of the
electorate, may amend those provisions of Measure X that require a vote of the electorate
as set forth in Ordinance No. 16-15, Section 8, "Future Changes", as amended and as
codified in Chapters I and VI of Title 9 and/or Chapters IV and IX of Title 13 of the
Municipal Code, by the adoption or amendment of one or more ordinances to permit,
regulate and/or impose a gross receipts tax upon the retail sale, both storefront
(dispensaries) and non -storefront (delivery), of cannabis within the City, provided that
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Retail Cannabis Tax and Regulation Measure Page 1 of 3
such ordinance or amendment is adopted by a two-thirds vote of the entire membership
of the City Council and meets the following minimum standards:
a) the premises of retail storefront uses may be permitted in the commercial zone
only;
b) the premises of retail non -storefront (delivery) uses may be permitted in both the
commercial zone and in the Green Zone only;
c) the premises of retail storefront uses must be located a minimum of 1,000 feet from
existing and permitted child daycare locations, K-12 schools, playgrounds, and/or
homeless shelters, all as defined in the Zoning Code or as may otherwise be
defined by City regulation or ordinance;
d) security measures including but not limited to exterior lighting, video monitoring
and security guards;
e) for retail uses with two or more employees, a requirement for a labor peace
agreement;
f) imposes and/or maintains a gross receipts tax of no less than 4% and no more
than 7% on all retail cannabis uses, which shall be applicable to all retail uses with
physical premises in the City and, if so permitted by the City, to any retail non -
storefront (delivery) use located outside the City that delivers cannabis within the
City; and
g) to ensure accountability, public disclosure and transparency, requires that the
proceeds of this tax be subject to an annual audit by an independent certified public
accountant which shall be reported to the City Council in a document or documents
posted on the City's website and available for public inspection.
SECTION 4. Definitions.
The "Green Zone" means those portions of the manufacturing park (MP) and
planned development industrial (PDI) zones that are located both north of South Coast
Drive and west of Harbor Boulevard, excluding any portion of the South Coast Collection.
"Labor peace agreement" means an agreement as set forth in section 26001 of the
Business and Professions Code. "Retail storefront" and "retail non -storefront" shall mean
and include only those retailers operating in full compliance with all applicable state and
local laws and regulations, including but not limited to those set forth In Title 16, Division
24, Chapter 3 of the California Code of Regulations.
SECTION 5. Future Changes.
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Retail Cannabis Tax and Regulation Measure Page 2 of 3
SECTION 6. Inconsistencies.
Any provision of the Costa Mesa Municipal Code or appendices thereto
inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies
and no further, is hereby repealed or modified to that extent necessary to affect the
provisions of this Ordinance.
SECTION 7. Severability.
If any section, subsection, sentence, clause, or phrase of this ordinance is for any
reason held to be invalid or unconstitutional by the decision of any court of competent
jurisdiction, such decision shall not affect the validity of the remaining portions of this
ordinance. The People of the City of Costa Mesa hereby declares that they would have
adopted this ordinance, and each and every section, subsection, sentence, clause, or
phrase not declared invalid or unconstitutional, without regard to whether any portion of
the ordinance would be subsequently declared invalid or unconstitutional.
SECTIONS. Effective Date.
This ordinance shall take effect according to law ten days after certification of the
election at which it is a o
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