Monday, January 31, :00 PM AGENDA

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APACHE JUNCTION CITY COUNCIL WORK SESSION CITY COUNCIL CHAMBERS 300 EAST SUPERSTITION BOULEVARD APACHE JUNCTION, ARIZONA 85219 Monday, January 31, 2011 7:00 PM AGENDA 1. CALL TO ORDER. 2. ROLL CALL. 3. PRESENTATION AND DISCUSSION ON THE FINDINGS AND RECOMMENDATIONS OF THE PINAL COUNTY TRANSIT FEASIBILITY STUDY. Presentation on and discussion by David Maestas, Transportation Planner for Pinal County Public Works Department, on all elements of regional transit, including projected transit demand and forms of governance and funding. 4. PRESENTATION AND DISCUSSION ON CASE AM-4-10, PROPOSED AMENDMENTS TO THE ZONING ORDINANCE TO ACCOMMODATE AND REGULATE MEDICAL MARIJUANA USES, INCLUDING DISPENSARIES, ON-SITE AND OFF-SITE CULTIVATION FACILITIES, AND AT-HOME CULTIVATION. Pursuant to the approval of Proposition 203 by the voters of Arizona in the last general election, the Arizona Medical Marijuana Act allows for the use, sale, cultivation and transport of medical marijuana for qualifying patients, their designated caregivers, dispensaries and dispensary agents. Cities are allowed to enact reasonable land use controls on these uses. 5. PRESENTATION ON CURRENT PUBLIC AND PRIVATE INVESTMENT PROJECTS HAPPENING IN DOWNTOWN APACHE JUNCTION. The Downtown Redevelopment and Implementation Strategy adopted by the city council with the approval of Resolution No. 10-34 recommends specific goals and strategies geared toward fostering revitalization in the downtown. There are a number of public and private investment projects currently underway and staff would like to provide the council with a highlight of these projects and the positive impact these investments will have on the downtown and community. 6. ADJOURNMENT. Copies of this agenda and additional information regarding any of the items listed above may be obtained from the City Clerk s office: 300 East Superstition Boulevard, Apache Junction, AZ Monday through Friday, 8:00 a.m. to 5:00 p.m., excluding holidays If any person with a disability needs any type of accommodation, please notify the Human Resources Office, at (480) 474-2617 or (480) 983-0095 (TDD) at least 72 hours prior to the scheduled time.

Print TO: City Manager's Office FROM: Giao Pham, P.E., City Engineer DATE: January 31, 2011 Agenda Type : Council Priority Focus Area: Work Session Agenda Community Development TITLE OF AGENDA ITEM: PRESENTATION AND DISCUSSION ON THE FINDINGS AND RECOMMENDATIONS OF THE PINAL COUNTY TRANSIT FEASIBILITY STUDY. ACTION REQUESTED: Presentation and Discussion DISCUSSION / BACKGROUND INFORMATION: Presentation on and discussion by David Maestas, Transportation Planner for Pinal County Public Works Department, on all elements of regional transit, including projected transit demand and forms of governance and funding. FISCAL IMPACT: OPTIONS / ALTERNATIVES: RECOMMENDATION: ATTACHMENTS: Click to download No Attachments Available

Print TO: City Manager's Office FROM: Rudy Esquivias, Senior Planner/Zoning Administrator DATE: January 31, 2011 Agenda Type : Council Priority Focus Area: Work Session Agenda Additional Item Outside Scope of Identified Council Priorities TITLE OF AGENDA ITEM: PRESENTATION AND DISCUSSION ON CASE AM-4-10, PROPOSED AMENDMENTS TO THE ZONING ORDINANCE TO ACCOMMODATE AND REGULATE MEDICAL MARIJUANA USES, INCLUDING DISPENSARIES, ON-SITE AND OFF-SITE CULTIVATION FACILITIES, AND AT-HOME CULTIVATION. ACTION REQUESTED: Presentation and Discussion DISCUSSION / BACKGROUND INFORMATION: Pursuant to the approval of Proposition 203 by the voters of Arizona in the last general election, the Arizona Medical Marijuana Act allows for the use, sale, cultivation and transport of medical marijuana for qualifying patients, their designated caregivers, dispensaries and dispensary agents. Cities are allowed to enact reasonable land use controls on these uses. FISCAL IMPACT: Budgetary Approval Not Required OPTIONS / ALTERNATIVES: Zoning Ordinance Requirement RECOMMENDATION: The Commission will hear and recommend on this case on January 25, 2011. Their recommendation will be presented to Council at their work session on January 31. ATTACHMENTS: Click to download AM-4-10 P&Z Report Draft Language DHS Schedule Public Input

City of Apache Junction Development Services Department DATE: January 31, 2011 MEMO TO: THROUGH: FROM: SUBJECT: Honorable Mayor and City Council Members George Hoffman, City Manager Brad Steinke, Development Services Director Fred Baker, Planning Manager Rudy Esquivias, Senior Planner/Zoning Admin. Jan. 31, 2011, City Council Work Session Item: Case AM-4-10 - Proposed Text Amendments to Zoning Ordinance to Allow Medical Marijuana Uses. Summary At their meeting of December 7, 2010, the City Council directed Staff to process the necessary amendments to the Zoning Ordinance through the P&Z Commission, to accommodate and regulate marijuana uses in the city, pursuant to the voters approval of Proposition 203, the Medical Marijuana Act. P&Z Commission Meetings and Recommendation The Planning and Zoning Commission held a work session discussion on AM-4-10 on January 11 and their public hearing was held on January 25. At the time of submittal of this work session item to the Council, the Commission had not yet made its recommendation. Their recommendation shall be presented to Council at their work session on January 31. The Commission s staff report is presented to the Council for their review. It is imperative for the City to have its ordinance adopted and in effect before April 1, 2011, when the State Department of Health Services is expected to have their operating rules for dispensaries and cardholders in place. Otherwise, the city risks not being able to exercise land use controls over these proposed uses. If adjustments need to be made to our ordinance once the State establishes its final rules, those amendments may be made later on. Tonight s item is presented for discussion purposes only. Attached: AM-4-10 P&Z Report; Draft Language; DHS Schedule; State Statute; Input

City of Apache Junction Development Services Department DATE: JANUARY 25, 2011 MEMO TO: THROUGH: FROM: SUBJECT: PLANNING AND ZONING COMMISSION MEMBERS BRAD STEINKE, DEVELOPMENT SERVICES DIRECTOR FRED BAKER, PLANNING DIVISION MANAGER RUDY ESQUIVIAS, SENIOR PLANNER/ZONING ADMIN. JANUARY 25, 2011, PUBLIC HEARING ITEM: CASE AM-4-10, PROPOSED ZONING ORDINANCE TEXT AMENDMENT TO REGULATE MEDICAL MARIJUANA USES BACKGROUND: Proposition 203 is a ballot initiative approved during the general election on November 2, 2010. The initiative enacts a group of statutes titled the "Arizona Medical Marijuana Act," to include a new Chapter 28.1 in Title 36 and amendment of Arizona Revised Statutes (ARS) 43-1201. The new law decriminalizes possession, sale and cultivation of marijuana for certain purposes under state law and provides for the establishment of non-profit medical marijuana dispensaries and off-site cultivation locations. The law allows, on a statewide basis, one dispensary and off-site cultivation location for every 10 pharmacies; thus approximately 120 dispensaries could be established in Arizona, with at least one for every county in which an application has been approved. The law requires dispensaries to be at least 500 feet from a public or private school, but has no other requirements. Local communities can establish zoning requirements for the location of dispensaries and off-site cultivation locations. Many Arizona communities are in the process of adopting ordinance changes to accommodate these new uses. The law specifically permits cities, towns and counties to enact zoning regulations for such medical marijuana dispensaries, and the City has the authority to enact such zoning regulations pursuant to ARS Title 9, Article 6.1. The Arizona Medical Marijuana Act, allows a "qualifying patient" who has a "debilitating medical condition" to obtain an "allowable amount of marijuana" from a "non-profit medical marijuana dispensary" and to possess and use the marijuana to treat or alleviate the debilitating medical condition or symptoms associated with the condition. 1

The Arizona Department of Health Services (DHS) would be required to adopt and enforce a regulatory system for the distribution of marijuana for medical use, including a system for approving, renewing and revoking the registration of qualifying patients, designated caregivers, non-profit dispensaries and dispensary agents. The costs of the regulatory system would be paid from application and renewal fees collected, civil penalties imposed and private donations received pursuant to the proposition. A "qualifying patient" is defined as a person who has been diagnosed by a physician (a doctor of medicine, osteopathy, naturopathic medicine or homeopathy) as having one of the following debilitating medical conditions: 1. Cancer. 2. Glaucoma. 3. Positive status for human immunodeficiency virus. 4. Acquired immune deficiency syndrome. 5. Hepatitis C. 6. Amyotrophic lateral sclerosis. 7. Crohn's disease. 8. Agitation of Alzheimer's disease. 9. A chronic or debilitating disease or medical condition or its treatment that produces any of the following: a. Cachexia or wasting syndrome. b. Severe and chronic pain. c. Severe nausea. d. Seizures (including those characteristic of epilepsy). e. Severe and persistent muscle spasms (including those characteristic of multiple sclerosis). 10. Any other medical condition or its treatment added by DHS through a public petition process. In order to register with DHS, a qualifying patient must submit a signed written certification issued by the physician that states the physician's professional opinion that the patient is likely to receive therapeutic or symptom-relieving benefits from the medical use of marijuana to treat or alleviate a debilitating medical condition. The certification must specify the debilitating medical condition and must be made in the course of a physician-patient relationship after the physician has completed a full assessment of the patient's medical history. If the qualifying patient is under 18 years of age, the patient's custodial parent or legal guardian must submit written certifications from two physicians and the custodial parent or legal guardian must consent in writing to control the patient's medical use of the marijuana. A qualifying patient who is registered with DHS (or a registered designated caregiver on behalf of the qualifying patient) may obtain up to 2.5 ounces of marijuana in a 14-day period from a registered non-profit medical marijuana dispensary. If the qualifying patient's home is located more than 25 miles from the nearest non-profit medical marijuana dispensary, the patient or designated caregiver may cultivate up to 12 marijuana plants in an enclosed, locked facility. 2

A registered non-profit medical marijuana dispensary must be operated on a not-forprofit basis, but may receive payment for all expenses incurred in its operation. DHS may not issue more than one non-profit medical marijuana dispensary registration certificate for every ten pharmacy permits issued by the Arizona State Board of Pharmacy under current law. The dispensary may cultivate marijuana only in an enclosed, locked facility and may acquire marijuana from a registered qualifying patient or designated caregiver if the patient or caregiver is not compensated for the marijuana. The proposition specifies various security, record-keeping and verification requirements relating to the operation of dispensaries. Proposition 203 generally provides that any person who acts in conformity with the requirements of the proposition is not subject to any governmentally imposed sanction relating to the medical use of marijuana. This proposition would prohibit certain discriminatory practices, including the following: 1. A school or landlord may not refuse to enroll or lease to a person registered pursuant to this proposition unless failing to do so would cause the school or landlord to lose a monetary or licensing benefit under federal law. 2. An employer may not discriminate against a person registered pursuant to this proposition in hiring, terminating or imposing employment conditions unless failing to do so would cause the employer to lose a monetary or licensing benefit under federal law. Further, an employer may not penalize a qualifying patient registered pursuant to this proposition for a positive drug test for marijuana, unless the patient used, possessed or was impaired by marijuana on the employment premises or during hours of employment. Proposition 203 would not: 1. Authorize a person to undertake any task under the influence of marijuana that constitutes negligence or professional malpractice. 2. Authorize possessing or using medical marijuana on a school bus, on the grounds of a preschool, primary school or high school or in a correctional facility. 3. Authorize smoking marijuana on public transportation or in a public place. 4. Authorize operating, navigating or being in actual physical control of a motor vehicle, aircraft or motorboat while under the influence of marijuana. A registered qualifying patient would not be considered to be under the influence of marijuana solely because of the presence of marijuana in the person's system that appears in a concentration insufficient to cause impairment. 5. Require a government medical assistance program or private health insurer to reimburse a person for costs associated with the medical use of marijuana. 6. Require an owner of private property to allow the use of marijuana on that property. 7. Require an employer to allow the ingestion of marijuana in the workplace. 3

8. Prevent a nursing care or other residential or inpatient healthcare facility from adopting reasonable restrictions on the provision, storage and use of marijuana by residents or patients. CITY COUNCIL DISCUSSION AND DIRECTION: This item was scheduled for work session discussion and direction to staff at the City Council meetings of December 6th and 7 th, respectively. At their regular meeting on December 7, the City Council directed staff to initiate a Zoning Code Text Amendment that included for consideration, the following items: 1. Limits the location of medical marijuana dispensaries and off-site cultivation locations to commercial and industrial zones; creates definitions for dispensaries and off-site cultivation locations; allows dispensaries with on-site cultivation to be located in commercial or industrial zones; allows off-site cultivation facilities (not co-located with a dispensary) to be only in industrial zones; prohibits medical marijuana dispensaries and/or off-site cultivation locations in any Planned Community District. 2. Requires a dispensary or off-site cultivation facility to be located in a permanent building, not in a cargo container, manufactured building of any kind, RV, trailer, or motor vehicle. 3. Requires a Conditional Use Permit approved by the Planning and Zoning Commission for a medical marijuana dispensary or medical marijuana off-site cultivation location. 4. Requires a Conditional Use Permit application for a dispensary or medical marijuana cultivation to include, at a minimum, the following supplemental information: Certification that the property owner is aware the property will be used for marijuana dispensing or cultivating and providing documentation that the applicant can meet DHS standards for approval; Requires a list of the operating organization's officers and board of directors and a certification that the operators comply with requirements in the law prohibiting criminal history; Application or acknowledgement to obtain a City Business or Operating License; Limit on floor area and hours of operation; Prohibition on drive-through pickup windows and delivery service; and Prohibition on outdoor seating areas at dispensaries and cultivation locations. 4

Required spacing requirements: At least 2,000 feet from other dispensaries and off-site cultivation locations; At least 1,000 feet from schools, day care centers and churches; At least 1,000 feet from drug and alcohol rehabilitation facilities; A least 1,000 feet from other sensitive land uses as determined by the Zoning Administrator on a case by case basis; and Allows the Planning and Zoning Commission to add permit conditions necessary to conserve and promote the public health, safety, convenience and general welfare. 5. Additional Requirements to consider: Security Plan including lighting, alarms, secure storage, and other necessary building safety measures; Prohibit on-site consumption; Limit to one dispensary per ten pharmacies in the City; No off-site cultivation without associated dispensary; and No more than one off-site cultivation location per dispensary. 6. In the event that a qualifying patient in the City limits is 25 miles or farther from a dispensary, said individual may apply for a CUP to cultivate no more than twelve (12) marijuana plants at their place of residency (with owner s permission) subject to the same types of appropriate applicable conditions and precautions as above for security, use and documentation. PLANNING AND ZONING COMMISSION WORK SESSION: Unlike other City-initiated amendments to our codes, this amendment case carries with it a certain sense of urgency insofar as getting it adopted in a timely manner. Under the law, DHS is required to have their operating rules in place within 120 days of the passage of the law (see DHS schedule attached). That means that DHS should have its rules in place around the beginning of April. After that, they will begin processing applications from dispensaries, agents, qualifying patients and caregivers. Apache Junction must have its land use regulations adopted and in effect before April 1 st as well, or else we risk not being able to regulate dispensaries in the City other than the minimum 500 foot rule from a school. At their work session on January 11, the P&Z Commissioners reviewed the 1 st draft language for the proposed text amendments. The Commissioners had many questions and suggested several changes to the proposed language. The changes discussed with Staff include: 5

prohibiting a Designated Caregiver from cultivating marijuana plants at their home in the City of Apache Junction, for a person in his or her care who lives 25 miles from a dispensary, if a dispensary is located within 25 miles of the Caregiver s home; use the appropriate term non-profit or not-for-profit consistently through-out the text; limit dispensaries and on-site or off-site cultivation facilities to industrial zoned properties only, or at least keep them off of Apache Trail; require greenhouses where marijuana is being cultivated to have opaque walls and/or that lighting for greenhouses complies with dark sky and light trespass regulations; allow manufactured buildings (such as steel buildings) to be used for marijuana cultivation; allow for a manufactured home or RV to be used for home marijuana cultivation by a Designated Caregiver or a Qualifying Patient who lives more than 25 miles from a dispensary; get property owner s signature/consent on a CUP application form and require that all board of directors members and dispensary agents register with our Police Department; require a minimum separation distance of ¼ mile (1320 feet) between dispensaries and off-site cultivation facilities, and allow the Commission 50% reduction discretion in the spacing requirement if needed; require that security systems at dispensaries and off-site cultivation facilities be Police and/or professionally monitored; allow dispensaries to also sell infused products; prohibit the marijuana leaf symbol from being used on any exterior signage; specify that 1 dispensary and its associated on-site or off-site cultivation facility shall be allowed in the city presently, and that another dispensary may be allowed when the City has at least 20 pharmacies, and 1 for every 10 pharmacies after that; require that a Qualifying Patient or Caregiver proposing to cultivate marijuana at home comply with any building code requirements for electric, plumbing and other improvements. The attached draft language, proposing to amend the Definitions and General Provisions and Exceptions sections of the zoning Ordinance to accommodate medical marijuana uses is presented tonight for the Commission s review and recommendation. As usual, the proposed changes to the first draft are shown in strike-throughs and highlights. Staff will go through each item with the Commission. PLANNING DIVISION RECOMMENDATION: The Planning Division recommends approval of the proposed text amendments. It is very important for the City to have its ordinance adopted and in effect prior to the DHS 6

having its operating procedures in place. The City can always amend the first version of the ordinance later if needed. RECOMMENDED MOTION: I move that the Planning and Zoning Commission recommend to the Apache Junction City Council the (APPROVAL/DENIAL) of case AM-4-10, proposed Zoning Ordinance text amendments to regulate medical marijuana uses, amending the Apache Junction City Code, Volume II, Land Development Code, Chapter 1, Zoning Ordinance, Article 1-5 Definitions and Article 1-6 General Provisions and Exceptions, in accordance with the following recommended language: Attachments: - Proposed Text Amendment Language; - DHS Schedule; - Public Input; - AZ Medical Marijuana Act; 7

Print TO: City Manager's Office FROM: Bryant Powell, Assistant City Manager DATE: January 31, 2011 Agenda Type : Council Priority Focus Area: Work Session Agenda Community Development TITLE OF AGENDA ITEM: PRESENTATION ON CURRENT PUBLIC AND PRIVATE INVESTMENT PROJECTS HAPPENING IN DOWNTOWN APACHE JUNCTION. ACTION REQUESTED: Information Only (No discussion) DISCUSSION / BACKGROUND INFORMATION: The Downtown Redevelopment and Implementation Strategy adopted by the city council with the approval of Resolution No. 10-34 recommends specific goals and strategies geared toward fostering revitalization in the downtown. There are a number of public and private investment projects currently underway and staff would like to provide the council with a highlight of these projects and the positive impact these investments will have on the downtown and community. FISCAL IMPACT: Budgetary Approval Not Required OPTIONS / ALTERNATIVES: RECOMMENDATION: ATTACHMENTS: Click to download No Attachments Available