HomeMy WebLinkAboutOrd2016-005 Sponsored by: Hunt
Introduction: June 13, 2016
Public Hearing: June 27, 2016
Enactment: June 27, 2016
CITY OF SEWARD,ALASKA
ORDINANCE 2016-005
AN ORDINANCE OF THE CITY COUNCIL OF SEWARD, ALASKA,
AMENDING PORTIONS OF SEWARD CITY CODE TITLES 8, 9, AND
15, REGARDING REQUIREMENTS AND STANDARDS FOR
COMMERCIAL MARIJUANA ESTABLISHMENTS IN THE CITY OF
SEWARD
WHEREAS, during the November 4, 2014 general election, Alaska voters approved
initiative Ballot Measure 2, an Act to Tax and Regulate the Production, Sale and Use of
Marijuana, which provided for the State development of regulations and requirements for
commercial marijuana establishments, and legalized possession and personal use of marijuana by
persons 21 years of age or older; and
WHEREAS, Ballot Measure 2 allows municipalities in the State, including the City of
Seward ("City"), to prohibit and/or implement regulations governing the number, time, place and
manner of marijuana cultivation facilities, marijuana testing facilities, marijuana product
manufacturing facilities, and retail marijuana stores (marijuana establishments); and
WHEREAS, the State of Alaska has developed laws and regulations, codified as Alaska
Statute 17.38 and 3 AAC 306.005-3 AAC 306.990, for marijuana establishments requiring,
among other things, public notices and hearings for license applications, security plans, site-
specific plans, and the privileges of and prohibitions for each of the types of license; and
WHEREAS, at the Seward City Council March 14, 2016 work session, the City
administration was directed to draft regulations that complemented but did not duplicate State
regulations, and that to the extent practical worked within the existing framework of land uses,
zones and classifications rather than creating new ones; and
WHEREAS, the City's current Building, Fire and Mechanical Codes are considered
adequate to address these establishments with the exception that additional controls are needed in
the Fire Code regarding extraction systems at manufacturing facilities; and
WHEREAS, the United States Department of Justice has issued guidance (the "Cole"
memoranda dated February 14, 2014, and August 29, 2013) describing marijuana-related federal
enforcement priorities, including "Preventing the distribution of marijuana to minors" and
"Preventing drugged driving and the exacerbation of other adverse public health consequences
associated with marijuana use;"and
CITY OF SEWARD, ALASKA
ORDINANCE 2016-005
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WHEREAS, the City Council finds that the goal of protecting the public health, safety and
welfare, and those priorities in the Cole memo, are furthered by increasing the buffer zone
around schools and by limiting the hours of operation beyond the minimum buffer zones and
maximum hours of operation set forth in State Statute.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, HEREBY ORDAINS that:
Section 1. Seward City Code Title 8 is amended by adding a new chapter as follows:
(Deletions are ; Additions are Bold Italic Underline)
Chapter 8.25 —Marijuana establishments
8.25.010. -Definitions.
As used in this chapter, unless the context otherwise requires, the following terms shall have
the meanings defined herein:
(a) "Marijuana" means "marijuana" as that term is defined in AS 17.38.900 and any
amendments thereto.
(b) "Marijuana establishment" means a "marijuana establishment" as that term is
defined in AS 17.38.900 and any amendments thereto but includes a marijuana
cultivation facility, a marijuana testing facility, a marijuana product manufacturing
facility, or a retail marijuana store as those terms are defined in AS 17.38.900 and an_y
amendments thereto.
8.25.015 Compliance with state laws and regulations
No person may own or operate a marijuana establishment within the City without first being
licensed by the State of Alaska, and the establishment license must be maintained in force
continuously throughout the time the establishment operates. All marijuana establishments
shall be operated in full compliance with state laws and regulations. It shall be the owners'
and/or operators' responsibility to be aware of and to comply with any and all laws, rules and
regulations adopted by any duly authorized agency of the State and the City.
CITY OF SEWARD,ALASKA
ORDINANCE 2016-005
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8.25.020 Local regulatory authority established.
The City Council shall be the Local Regulatory Authority, as that term is used in Alaska
Statutes Chapter 17.38. As the local regulatory authority, Council is authorized to:
(a) Review and submit recommendations to any federal or state agency regarding
marijuana establishment license applications;
(b) Designate a body, entity or person to review or comment upon marijuana
establishment license applications;
(c) Draft laws, regulations, and policies regarding marijuana establishments and
marijuana use within the City.
8.25.025. -Marijuana establishment application review.
(a) Once the City receives notification from a state agency that a marijuana
establishment application is complete: Council may recommend approval, denial, or
approval with conditions of any application for a marijuana establishment.
(b) Council shall not recommend approval of any marijuana establishment
application unless the following conditions have been satisfied:
(1) The City Finance Department confirms that all accounts for utilities, taxes and
assessments for the persons or corporate entity named in the application are
current; and
(2) The Kenai Peninsula Borough verifies that all sales and property tax accounts
for the persons or corporate entity named in the application are current.
(3) The applicant shall be in compliance with all city safety requirements.
8.25.030. —Hours of operation
Retail marijuana establishments shall not conduct any business on, or allow consumers or
customers access to the establishment's licensed premises between the hours of 2:00 a.m. and
10:00 a.m. of any day.
CITY OF SEWARD, ALASKA
ORDINANCE 2016-005
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Section 2. Seward City Code Title 9 is amended by adding a new chapter as follows:
(Deletions are ; Additions are Bold Italic Underline)
Chapter 9.30 —Marijuana extraction equipment
9.30.010. - General provisions.
All licensed marijuana processing facility extraction equipment using hazardous materials
must be approved by the City prior to operation within the City.
9.30.015. —Listed equipment.
A list of pre-engineered and approved systems is kept at the Seward Fire Department and
available during business hours.
9.30.020. —Equipment approval.
(a) When no equipment listing criteria exists and for non-listed extractions systems,
equipment manufacturers may submit a Master Engineering Report to the Seward Fire
Department for approval of their equipment.
(b) An Alaska licensed Professional Engineer is required to prepare a site-specific
report. The report shall include the following information:
1. The proposed or existing address of the location where the equipment will be
operated, the make and model, serial number, and any other pertinent
information specific to that equipment as requested by the city;
2. The installation of the equipment will meet all applicable AME and NFPA
standards for the operating pressures it will be subjected to;
3. The equipment has pressure relief valves on any trapped gas sections;
CITY OF SEWARD, ALASKA
ORDINANCE 2016-005
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4. That all hose fittings, vacuum pumps, and all other ancillary components of
the equipment are compatible with the specific flammable gas used in the
equipment;
(c) The engineering report is required by the 2012 International Fire Code, adopted as
the Seward Fire Code, and shall be signed and sealed by a responsible Alaska licensed
Professional Engineer. All equipment shall be operated strictly in accordance with the
manufacturer's instructions.
(d) Prior to the operation of the equipment, the City shall issue written approval of the
en2ineeri,z report required under this section.
9.30.025. —Modification of equipment.
Any modification of listed or approved equipment other than routine maintenance or
replacement of an identical replacement part voids the approval of the extraction equipment
unless the modification is approved by the City in writing. Modifications that require approval
include but are not limited to re-piping the system, addition of pumps, replacing components
with non-identical components, and using unapproved gases.
Section 3. Seward City Code Title 15 is amended by adding to the Definitions and Land
Uses Allowed sections and renumbering as appropriate, as follows:
(Deletions are Beld-Striket ; Additions are Bold Italic Underline)
15.10.140 -Definitions.
A. General interpretation.
1. Words used in the present tense include the future tense.
2. The singular number includes the plural.
3. The word "person" includes a corporation as well as an individual.
4. The word "lot" includes the word "plot" or "parcel."
5. The term "shall" is always mandatory.
6. The word "used" or "occupied" as applied to any land or building shall be construed to
include the words "intended," "arranged," or "designed to be used or occupied."
CITY OF SEWARD,ALASKA
ORDINANCE 2016-005
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B. Specific definitions. (Parenthetical references are for cross-reference only.) In this chapter,
unless otherwise provided or the context otherwise requires:
1. Accessory building. A detached structure that:
a. Is clearly incidental to and customarily found in connection with a principal
building or use;
b. Is subordinate to and serves a principal building or use;
c. Is subordinate in area, extent or purpose to the principal building or use served;
d. Contributes to the comfort, convenience or necessity of occupants, business or
industry in the principal building or use served; and
e. Is located on the same or adjacent lot under the same ownership as the principal
building or use served.
An accessory building shall be considered to be a part of the main building when
joined by a common wall or connected by a breezeway to the main building.
Accessory building means any structure regardless of type of foundation or base
support, including skid-mounted or other moveable structures.
(Accessory or mother-in-law apartment. See Dwelling, Efficiency apartment)
2. Agriculture. Commercial farming, dairying, pasturage, horticulture, floriculture,
viticulture, or animal and poultry husbandry including buildings used to shelter farm
implements, hay, grain, poultry, livestock or other farm produce in which there is no
human habitation and which is not used by the public.
>
51. Manufacturing, heavy. A use engaged in the basic processing and manufacturing of
materials or products predominately from extracted or raw materials; or a use
engaged in storage of or manufacturing processes using flammable or explosive
materials; or storage or manufacturing processes that potentially involve hazardous
or commonly recognized offensive conditions.
52. Manufacturing, light. A use engaged in the manufacture, predominantly from
previously prepared material, of finished products or parts, including processing,
fabrication, assembly, treatment, packaging, incidental storage, sales and distribution
of such products,but excluding basic industrial processing.
53. Marijuana. Marijuana means "marijuana" as that term is defined in Alaska
Statute 17.38.900 and any amendments thereto.
CITY OF SEWARD, ALASKA
ORDINANCE 2016-005
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54. Marijuana establishment. Marijuana establishment means a marijuana cultivation
facility, a marijuana testing facility, a marijuana product manufacturing facility, or a
retail marijuana store as those terms are defined in AS 17.38.900 and any
amendments thereto.
a. Marijuana cultivation facility. Marijuana cultivation facility means an
entity registered to cultivate, prepare, and package marijuana and to sell
marijuana to retail marijuana stores, to marijuana product manufacturing
facilities, and to other marijuana cultivation facilities, but not to consumers.
1. Limited marijuana cultivation facility. A limited marijuana
cultivation facility has the privileges set forth at 3 AAC 305.405(a)
and (b), and is subject to the prohibitions at 3 AAC 306.405(c),
except that it must have fewer than 500 square feet under cultivation.
b. Marijuana product manufacturing facility. Marijuana product
manufacturing facility means an entity registered to purchase marijuana;
manufacture, prepare, and package marijuana products; and sell marijuana
and marijuana products to other marijuana product manufacturing
facilities and to retail marijuana stores, but not to consumers.
c. Marijuana testing facility. Marijuana testing facility means an entity
registered to analyze and certify the safety and potency of marijuana.
d. Retail marijuana store. Retail marijuana store means an entity registered to
purchase marijuana from marijuana cultivation facilities, to purchase
marijuana and marijuana products from marijuana product manufacturing
facilities, and to sell marijuana and marijuana products to consumers.
55. Marijuana products. Marijuana products means concentrated marijuana products
and marijuana products that are comprised of marijuana and other ingredients and
are intended for use or consumption, such as, but not limited to, edible products,
ointments, and tinctures.
(***Clerk's Note: subsequent sections will be renumbered accordingly***)
15.10.225. - Land uses allowed.
(a) Table 15.10.225, land uses allowed, is incorporated herein by reference and the restrictions
contained therein are mandatory unless otherwise modified by this chapter. (See tables at
the end of this title.)
CITY OF SEWARD, ALASKA
ORDINANCE 2016-005
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(b) Lodging as defined in section 15.10.140B. is allowed in accordance with table
15.10.225 of this chapter and subject to the following conditions:
(h) Marijuana establishments as defined in section 15.10.140.8.53 are allowed in
accordance with table 15.10.225 of this chapter subject to the following:
(1) The facility owner or operator has submitted a license application to the State of
Alaska for the corresponding type of marijuana establishment prior to operation,
and maintains a current license from the State at all times the facility is in
operation.
(2) Marijuana establishments shall not to be located within five hundred (500) feet of
the entrance of any building where religious ceremonies are regularly held, a
correctional faculty, recreational facility or youth center licensed by the State or
local government, or within one thousand (1000) feet of any school. The distance
specified in this subsection must be measured by the shortest pedestrian route from
the public entrance of the building in which the licensed premises would be located
to the outer parcel boundaries of the school, recreation or youth facility or to the
main public entrance of the building in which religious services are regularly held,
or the correctional facility. The burden of proof demonstrating that the facility
meets the required separation distances is the responsibility of the marijuana
establishment owner or operator.
(3) In this Title, Standard or Limited Marijuana Cultivation Facility meeting all other
criteria in this Code and in Alaska Statutes and Administrative Codes are classified
as a Greenhouse(s)/Commercial, except that a Limited Marijuana Cultivation
Facility as an accessory use secondary to a residence may be classified as a Home
Occupation use.
(4) In this Title, a Marijuana Testing Facility meeting all other criteria in this Code
and in Alaska Statutes and Administrative Codes is classified as an Office -
Business or Professional use.
(5) In this Title, a Marijuana Product Manufacturing Facility or a Marijuana
Concentrate Manufacturing Facility using hazardous materials in the
manufacturing process and meeting all other criteria in this Code and in Alaska
Statutes and Administrative Codes is classified as a Manufacturing - Heavy use.
Facilities not using hazardous materials in the manufacturing process are classified
as a Manufacturing, Light use.
CITY OF SEWARD,ALASKA
ORDINANCE 2016-005
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(6) In this Title, a Retail Marijuana Store meeting all other criteria in this Code and in
Alaska Statutes and Administrative Codes is classified as a Business - Retail Sales
and Service use.
Section 4. This ordinance shall take effect ten days following its enactment.
ENACTED by the City Council of the City of Seward, Alaska,this 27th day of June, 2016.
THE CITY OF SEWARD, ALASKA
irc2&1/4)
can Bardarson, Mayor
AYES: Casagranda, Keil, Butts, Squires, McClure, Altermatt, Bardarson
NOES: None
ABSENT: None
111 ABSTAIN: None
ATTEST:
J hanna ' ey, CMC
ity Clerk
(City Seal)
,sss4a s•as�♦
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• SEAL
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• FOF A-
Council Agenda Statement
Meeting Date: June 13, 2016, June 27, 2016 "MI°"Is'
From: Jim Hunt, City Manager qrp
Ron Long, Assistant City Manager .�
Agenda Item: Commercial Marijuana Establishments Ordinance
BACKGROUND & JUSTIFICATION:
Alaska voters approved initiative Ballot Measure 2 at the November, 2014 general election, an
Act to Tax and Regulate the Production, Sale and Use of Marijuana. (The measure also legalized
the personal use and possession of marijuana by persons 21 years of age and older, but this
ordinance deals only with the commercial aspects of the measure.) Since passage the State has
formed a Marijuana Control Board (MCB) and has promulgated regulations for the industry,
found at Alaska Statute 17.38, consistent with the ballot measure. The work done by the State is
detailed and comprehensive; persons holding an interest in the proposed business and the site-
specific business proposal are vetted by the MCB after a public notification, posting and public
hearing process conducted by the State.
It would be difficult or impossible for the Sate to adopt regulations that uniformly satisfy local
land use requirements across the state, and the ballot measure specified certain levels of control
be reserved for the local jurisdictions as applicable. Therefore some choices can be made by
Seward, including whether or not to prohibit some or all commercial marijuana enterprises by
ordinance or initiative, whether to act as the Local Regulatory Authority, and whether to add
time place, manner or number restrictions to enterprises licensed by the State.
The City Council held a work session March 14, 2016, with direction for administration to draft
regulations that to the extent practical complement but do not duplicate the State regulations,
names the City Council as the Local Regulatory Authority, expands buffer zones around schools
to 1,000' and limits hours of operation for retail establishments, and that would if possible work
within the existing land use classification and zoning regulations of the City.
Code changes will be needed in order to accomplish these goals. Title 8, Business Regulations
and Licensing, describes the City's role and authority as regards alcohol establishments, which
aligns with the Ballot Measure 2 intent to "regulate marijuana like alcohol", would establish
similar authorities for the City and regulations specific to State-licensed marijuana
establishments, including hours of operation.
Proposed changes to Title 9, Health and Safety, would address hazardous substances and
equipment that might be used at a marijuana product manufacturing facility by allowing only
equipment previously engineered, tested and approved in other states that have legalized
commercial marijuana establishments. Or, an applicant may submit a Master Engineering Report
for their system and then have the installation approved by an Alaska licensed engineer.
Title 15, Planning and Land Use Regulations, is sufficiently scalable and adaptable to
accommodate these enterprises with minimal amendment, adding definitions and a land use
classification, which includes the expanded buffer zone,as drafted in the ordinance.
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CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan: X
2. Strategic Plan: X
3. Other(list):
ATTORNEY REVIEW: Yes X No
FISCAL NOTE:
These proposed revisions do not result in immediate or measurable additional costs to the City,
or additional revenues.
Approved by Finance Department: ,YA.6t„,.Amit �
RECOMMENDATION:
Council enact Ordinance 2016-005, approving modifications to Seward City Code Titles 8, 9 and
15, regarding requirements and standards for commercial marijuana establishments.
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