PUBLIC HEARING MEETING AGENDA MONDAY, MAY 7, 2018-6 PM The City of Parksville recognizes the people of the Coast Salish Nations and their traditional territory upon which we gather with gratitude. The Council of the City of Parksville hereby gives notice that it will hold a Public Hearing: MONDAY, MAY 7, 2018, AT 6 PM In the Forum of the Parksville Civic and Technology Centre, 100 Jensen Avenue East, Parksville, BC V9P 2H3, to receive representations in connection with the following proposed amendments to "Zoning and Development Bylaw, 1994, No. 2000". 1. "ZONING AND DEVELOPMENT AMENDMENT BYLAW, 2018, NO. 2000.114" - Pages 3-12 In general terms, the purpose of the proposed amendment is to temporarily prohibit nonmedicinal cannabis related activities in the City of Parksville. This interim measure will allow Council to design a regulatory framework for the City that takes into consideration the results of the recent public engagement survey and recommendations from staff on a tailored approach to cannabis legalization. 2. ADJOURNMENT City of Parksville 100 Jensen Avenue East P O Box 1390, Parksville, BC V9P 2H3 Phone 250 248-6144 Fax 250 954-4685 www.parksville.ca
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FEBRUARY 5, 2018 REGULAR MEETING OF COUNCIL AGENDA PUBLIC HEARING May 7, 2018 DATE 6. REPORTS j) Director of Administrative Services - Strategy for Cannabis Regulation 18-041 Salter - Powell 1. THAT the report from the Director of Administrative Services dated January 12, 2018, entitled "City of Parksville Strategy for Cannabis Regulation" be received. 2. THAT staff be directed to amend the following bylaws to prohibit cannabis related activities, including retail sales of non-medicinal cannabis, until additional information is obtained from the Province of British Columbia on the regulatory framework and residents of Parksville have been provided an opportunity to submit comment for Council s consideration: a. "Business Licence Bylaw, 2012, No. 1483"; b. "City of Parksville Zoning and Development Bylaw, 1994, No. 2000"; c. "City of Parksville Nuisance Abatement Bylaw, 2013, No. 1489"; d. "Plan Parksville: A Vision for Our Future, Official Community Plan Bylaw, 2013, No. 1492". CARRIED. Page 3 of 12
January 12, 2018 r... ~--... _,,.,...,... T '1 t?, r, g. I 0!' 1 ' i ~.. ' : ~FE B -- - 05.. 201& --1. t. }, :... _.,..._,... ~,,...-oc-... ~~"" - -:_.,r.'l REPORT TO: FROM: SUBJECT: PURPOSE: D. COMIS, CHIEF ADMINISTRATIVE OFFICER K. KEHLER, DIRECTOR OF ADMINISTRATIVE SERVICES CITY OF PARKSVILLE STRATEGY FOR CANNABIS REGULATION To present Council with options to regulate the cannabis industry EXECUTIVE SUMMARY: The Government of Canada has announced legalization of cannabis 1 commencing in July 2018. In support of this initiative, Canada passed Bill C-45 (the Cannabis Act) and Bill C-46 (amendments to the Criminal Code specific to impaired driving). The legislation will make it legal to grow, sell and possess cannabis for recreational purposes. The Government of Canada will regulate quality and establish some baseline federal conditions, such as minimum age restrictions. The provinces and territories will be responsible for the distribution and retail system within their respective jurisdictions. The province of BC has made some announcements about the provincial framework, but significant uncertainty remains. The Union of BC Municipalities (UBCM) and several municipal law firms are advising municipalities to review their current regulations and prepare for legalization. This report seeks Council input on a legalization strategy for the City of Parksville. RECOMMENDATION: 1. THAT the report from the Director of Administrative Services dated January 12, 2018, entitled "City of Parksville Strategy for Cannabis Regulation" be received. 2. THAT staff be directed to amend the following bylaws to prohibit cannabis related activities, including retail sales of non-medicinal cannabis, until additional information is obtained from the Province of British Columbia on the regulatory framework and residents of Parksville have been provided an opportunity to submit comment for Council's consideration: a. "Business Li ce nce Bylaw, 2012, No. 1483"; b. "City of Parksville Zoning and Development Bylaw, 1994, No. 2000"; c. "City of Parksville Nuisance Abatement Bylaw, 2013, No. 1489"; d. "Plan Parksville: A Vision for Our Future, Official Community Plan Bylaw, 2013, No. 1492" 1 Please note, the federal government indicates the term cannabis is preferred over marihuana. Page 4 of 12
Developing a Parkville Specific Cannabis Regime Page 2 of 9 BACKGROUND: The Government of Canada is legalizing cannabis for recreation and medicinal purposes as of July 2018. Thi s is a significant decision and will require extensive legislative and regulatory changes in a very short timeframe, posing cha llenges for municipal governments. Many of the regulations will be established by senior levels of government. At the municipal level it is anticipated changes will be required to local government zoning bylaw, business licence regulations, inspection requirements, human resource policies, financial policies and fire prevention strategies. At this point, it is unknown how far municipal regulations will be able to go in terms of prohibitions or additional restrictions. For example, if the Province determines an individual ca n grow up to three plants, it is uncertain whether cities can limit this to two. Council submitted recommendations to the Province of BC in October 2017 outlining its preferred mechanism for cannabis regulatory framework. The Province has established 19 years as the minimum age for possession, consumption and purcha se of ca nnabis and stated it will operate the wholesale distribution model through the BC Liquor Distribution Branch. Th e Province indicates it will likely create a hybrid retail model where recreational cannabis can be sold from public and private stores, similar to how liquor is sold in BC. Information is not yet available on whether there will be provincial licencing requirements or additional restrictions. It should be noted the regime for medicinal cannabis will be different due to the implications of Charter rights and constitutional law. This report focuses on recreational cannabis. Th e Province host ed a consultation process in September and October, 2017 and received over 48,000 comments. A summary of the submissions to the provincial consultation process is provided in Attachment 1. Council may note there is polarity in many of the answers, with a lack of public consensus on many issues surrounding cannabis legalization. For this reason, it is recommended Council engage the residents of Parksville to see what people would like to see at the local level in terms of cannabis regulation. Sample survey questions are provided in Attachment 2. Municipal solicitors in BC are recommending cities consider an outright ban on cannabis retail sales until communities are ready to develop customized loca l frameworks. There is a very tight timeline to adopt loca l bylaws and policies and many complexities to co nsider. The current definition of retail trade in Parksville is broad and would permit ca nnabis sales in many locations. The business licence bylaw does not contain specific operating requirements for cannabis stores or home based operations and a licence would be considered under the retail service category with a fee of $150.00. Th ere are no special inspections required by the building or fire departments for cannabis sales or production facilities. The City's bylaws do not contain provisions to specifically address potential nuisance factors associated with cannabis sales, growing or consumption. There are no policy stat ements in Plan Parksville, the City's official co mmunity plan, pertaining to cannabis or development permit provisions for stores or production faci lities. Several US states rece ntly legalized ca nnabis and there are useful resources and lessons learned available from observing the local governments' response. A summary of a case study from Denver, Colorado is provided in Attachment 3. Page 5 of 12
Developing a Parkville Specific Cannabis Regime Page 3 of 9 OPTIONS: 1. Council may receive the report for information. 2. Council may direct staff to conduct a public engagement exercise through the city's website and an online survey and immediately amend bylaws to prohibit the sale of recreational cannabis or cannabis related products until such time as Council is prepared to establish a tailored regulatory framework for the City of Parksville. 3. Council may provide alternative direction to staff. ANALYSIS: 1. Should Council decide to receive the report for information, the status quo will remain and cannabis retail sales will be permitted in all zones where 'retail trade' is a permitted use. This includes the Downtown Core, commercial zones along the Island Highway, the waterfront commercial properties, light industrial commercial zones along Stanford Avenue, the PCTC zone, Wembley Mall and several comprehensive development zones. The zoning bylaw was amended to comply with federal legislation for medical cannabis and currently prohibits retail sale of cannabis from industrial and agricultural properties, but allows for largescale licenced growing facilities for medica l cannabis in these two zones. There are no specific regulations for cannabis in the city's business licence bylaw and no prohibition or restriction on the use in any zone, including as a home based business. In other jurisdictions where can nabis is legal, health and safety regulations have been developed to determine what inspections are needed from a building safety, fire prevention and public health standpoint. Regulations have been enacted in Denver and Oregon to mitigate odour, light pollution and security concerns where plants are being grown onsite and to restrict visibility of the product by underage people where products are sold. 2. If Council wishes to create a specific regulatory regime for cannabis, it should consider directing staff to prepare amendments to the current bylaws and policies to prohibit cannabis retail sales and associated activities until such time as a detailed governance and regulatory framework can be developed. In part, this requires more information from the province as to what steps it will be taking to regulate the activities, but there is also a benefit from seeking community input about the desired elements of a local regulatory environment. Specifically, Council may wish to direct staff to review the definitions and regulatory provisions in the zoning, business licence, building inspection, nuisance abatement and official community plan bylaws to ensure cannabis sale, production, co nsumption and warehousing is prohibited immediately until more information is available to Council. When this information is available, Council can consider new bylaws or amendments to facilitate a cannabis regime suited to the needs of local residents and businesses. Page 6 of 12
Developing a Parkville Specific Cannabis Regime Page 4 of 9 Council may wish to seek formalized input from the community before determining what cannabis regulations to enact. Staff could create a website containing background information and resources for the public and including an online survey for interested residents to complete. Residents would also be invited to submit comments to Council to inform future decisions on the regulations. Formal public notice and opportunities to speak at hearings would form part of any future bylaw amendments. It is recommended the consultation take place for at least one month to provide sufficient time for interested parties to consider the options and provide informed comments. FINANCIAL IMPACT: There are many unknown elements at this time but recreational cannabis production, distribution and sale will impact municipal finance through tax revenues, inspection costs, licence and permit fees and potentially rezoning fees. Staff resources will undoubtedly be impacted although it is too premature to fully understand the implications. Engaging in public consultation has no direct financial implications and would be incorporated into existing departmental budgets. Staff resources in administration and communications will be most directly affected, with lesser impacts for staff in community planning and building, human resources and finance. STRATEGIC PLAN IMPLICATIONS: Maintain or Enhance Quality of life - the legalization of recreational cannabis possession, cultivation and use is a significant change for all Canadians. While many of the regulations will be formed at the senior levels, cities have a role to play in the land use, licencing and public use of cannabis. It is considered beneficial to seek input from residents about how they see cannabis being regulated at the local level. Renewal and Maintenance of Infrastructure - no perceived implications. Maintain or Enhance Levels of Service - depending on the provincial regulations and the ability of local governments to regulate the use, the implications for service levels is still uncertain. Large US cities like Denver Colorado experienced significant impacts to their resource levels and hired an additional 55 employees, including 16 law enforcement personnel and 39 others in fire services, inspection and licensing roles. Denver, with a population of about 600,000, has 1122 active cannabis licences, including about 160 store fronts for non-medicinal cannabis. Maintain or Reduce Actual Property Tax Burden - at this early stage, there is no ability to accurately assess implications for taxation. Environmentally Sustainable - there are environmental implications associated with solvent and pesticide use for growing cannabis in addition to waste considerations. Odour and light pollution have been cited as issues in other jurisdictions where cannabis is legal. Consultation with the community will provide information to Council on local concerns and the province may provide additional guidance on Page 7 of 12
Developing a Parkville Specific Cannabis Regime Page 5 of 9 the regulation of these issues so as to reduce potential land use conflicts when cannabis is legalized later this year. Economic Development - the legalization of cannabis is a significant economic change. Denver, Colorado has over 1122 active licences associate with cannabis growing, processing and sales. There is potential for large economic benefits and job creation loca lly, but this remains largely unknown at this point. Some employment opportunities presented by the legalization of the cannabis sector are likely to be higher paying, skilled jobs, such as marketing professionals, scientists, and horticulturalists. REFERENCES: "City of Parksville Comments on Cannabis Regulation", staff report to Council, October 16, 2017 Province of BC, "Cannabis Regulation in BC - What we Heard: Public and Stakeholder Engagement, September 25 - November 1, 2017" Respectfully submitted, KEEVA KEHLER Director of Administrative Services CHIEF ADMINISTRATIVE OFFICER COMMENTS: DEBBIE COMIS Chief Administrative Officer Page 8 of 12
Developing a Parkville Specific Cannabis Regime Page 6of9 Attachment 1 Summary of Comments received by the Province on Cannabis Regulation The province used two methods for engaging with the public 2 : the first was an online survey form with written questions and the seco nd was a telephone interview with very similar questions. There were quite different responses from each group for some topics. Generally speaking the respondents to the telephone interview favoured more restrictions compared to the online respondents. 800 people were interviewed via telephone. Over 48,000 responses were completed via the on line form and 141 stakeholder submissions, including 37 comments from loca l governments, were received. The table below summarizes the submissions from the larger samp le size (online feedback form). Topic Support for legalizing cannabis for recreational use Minimum Age set at 19 years Personal possession limit of 30g Feedback Form Response 79% strongly/ somewhat support 76% in favour 57% support/ strongly support Public Consumption Consumption in Licensed cafes or lounges Some use outside of the home is permitted Limits on public use should equal those for tobacco Public cannabis smoking should be al lowed where tobacco smoking is allowed 75% totally agree/ 16% totally disagree 74% totally agree/ 23% totally disagree 52% totally agree/ 37% totally disagree 64% totally agree/ 31% totally disagree Drug-impaired Driving More people will drive impaired when cannabis is legal 27% agree/ 55% disagree Personal Cultivation BC should set additional restrictions on where and how people 34% strongly/ somewhat agree/ 55% can grow recreational cannabis at home strongly/ somewhat disagree Distribution: who should be responsible for distribution of recreational cannabis? Government owned distribution 22% Private distribution 21% Mix of both public and private 53% Where should non-medicinal cannabis be sold? Government owned and operated retail stores 20% Private retail stores 22% Mix of public and private 54% Mail order only 2% Cannabis should be sold in liquor stores - do you support this model? Strongly support/ somewhat support 41% Strongly oppose/ somewhat oppose 43% Don't know/ no opinion 16% 2 The full repo1t on the results of the public consultation hosted by the Province can be viewed here: https://engage.gov.bc.ca/app/uploads/sites/217/20 17/ 12/Cannabis-Regulation-in-B.C.-What-We-Heard.pdf Page 9 of 12
Developing a Parkvill'e Specific Cannabis Regime Page 7of9 Attachment Two: Sample Survey Questions Public Engagement on Cannabis Regulation 1. Where do you think cannabis retail sales should be permitted? a. Downtown Core b. Anywhere retail sales are currently permitted c. Industrial park d. Sit e specific zones only upon approval of Council e. Other location - please specify 2. Should the City prohibit mobile ca nnabis businesses, including mail order and delivery of ca nnabis and cannabis related products? 3. Where do you think cannabis growing, processing and packaging should be permitted? a. Downtown Core b. Anywhere retail sales are currently permitted c. Industrial park d. Agricultural zones only e. Industrial and Agricultural zones f. Site specific zones only upon approval of Council g. Other - please specify 4. Should the City establish distance requirements from other uses? 5. If you answered yes, which uses should the City establish setbacks from? {please tick all uses that should have a setback distance) a. Schools b. Daycares c. Care facilities for seniors d. Other outlets selling ca nnabis products e. Other uses? 6. If you believe setback distances should be established, what should they be? a. 100 metres b. 300 metres c. Other - please specify 7. Should the City prohibit cannabis processing, growing or retails sales as a Home Based Business? 8. Should the City prohibit outdoor growing of cannabis? 9. Should the City restrict outdoor growing of ca nnabis? 10. If you answered yes: How should the City restrict outdoor growing of cannabis? a. Establish setbacks of 3 metres from all property lines; b. Permit outdoor growing only on properties exceeding 1000 m 2 in area; c. Establish visibility requirements that require no plants are visible from off the property; d. Require plants to be grown in a contained structure, shed or greenhouse; Page 10 of 12
Developing a Parkville Specific Cannabis Regime Page 8of9 e. Require growers to prove there is no detectable odour at the property lines; f. Require the grower to register with the City; g. All of the above h. Other restrictions 11. Should the City prohibit growing of recreational cannabis in non-commercial zones? 12. If you answered no, should the City restrict where cannabis can be grown for personal recreational use? a. Prohibit growing (indoor and outdoor) in multi-family residential zones b. Prohibit all growing in all exclusively residential zones c. Allow growing only in the industrial and agricultural zones 13. Should the City restrict the extraction of cannabis oil, which uses solvents with a risk of combustion, to industrial and agricultural zones? 14. Should the city limit the hours of operation of cannabis sales outlets? 15. If yes, what should the hours be? a. Same as for liquor sales; b. No sale before 9 am or after 9 pm daily; c. No sale before 9 am or after 6 pm daily; d. Other hours 16. Additional regulations -yes/ no a. Should the City prohibit onsite consumption, including the provision of samples to consumers? b. Should the City ban all public consumption of recreational cannabis (smoking/ vaping)? c. Should the City establish zones where consumption (smoking/ vaping) is prohibited, e.g. near playgrounds, public parks, public buildings? i. If you answered yes, please specify areas where consumption should be banned. d. Should the City prohibit the sale of edibles? e. Should the City establish rules, similar to those for tobacco, to restrict visibility of the products by minors - e.g. separate store location with no minors permitted to enter, rules on display and advertising outside of established areas? Page 11 of 12
Developing a Parkville Specific Cannabis Regime Page 9 of 9 Attachment Three Case Study from Denver, Colorado Denver, Colorado - population: 600,000 A multi-jurisdictional task force was created with state and local authorities represented. There are many guidance documents and templates available for local governments to use when creating their own regime, including sample ordinances (bylaws) with definitions and regulatory provisions. Cannabis has been legal in Denver since 2012 with retail sales commencing in 2014. Local governments have taxation authority with approval of electors and in November 2013 Denver residents voted to approve an additional 3.5% sales tax on cannabis to cover the costs of regulating the sector. Total sales tax (state and local) on cannabis is 21.15%. Denver created a setback of 300 metres for cannabis businesses from schools, daycares, drug treatment centres and other cannabis businesses, enforced through business licencing. There are 1122 licensed cannabis businesses in Denver in four categories including medical centres, retail stores, infusing stores (edibles) and cultivation, and testing facilities. In 2016 the cannabis sector represented 3% of Denver's revenue at $36.8 million, which includes revenue from licence fees and Denver sales taxes of $18.6 million. The state shares some of its 10% cannabis sales tax revenues with cities and cities also collect money from standard sales taxes (applicable to all sa les). Denver allocated $11 million in 2016 to enforcement, education, regulation and affordable housing. The remaining funds are allocated to general revenue. In 2014, 55 new FTEs were created in the regulatory and enforcement departments (this includes positions in the police force, inspections, planning and licencing departments). From 2014 to 2017, Denver has spent $7.5 million on youth education and drug prevention. In the absence of state or federal regulations, Denver has taken the le ad to address pesticide protocols and consumer health, including the recall of over 30 products to date due to pesticide contamination, unclean equipment and shelf stability issues. Bylaws adopted under public health jurisdiction regulate the use of pesticides. Denver has an Odour Control Ordinance which requires businesses to submit a detailed odour control plan and all new businesses require a public hearing prior to operating. The City monitors and enforces the odour control plan to maintain quality of life in neighbourhoods. Denver has developed best practices for sustain able growing, including managing wa ste products which can be hazardous or toxic. Residents can grow up to 12 plants per household and enforcement is increasing due to complaints about people exceeding these limits. In 2016 the city issued 772 tickets for public consumption of cannabis. Denver has banned cannabis oil extraction outside of industrially certified growing facilities. Business licencing is used to create Time/ Place/ Manner regulations, which include hours of operation, buffer zones from other uses, type and number of inspections from the building and fire departments, odour control, lighting and security requirements, including criminal record checks for applicants. Page 12 of 12