CC 2018-06-12_12a AGMC_Cannabis Delivery ServicesMEMORANDUM
TO: CITY COUNCIL
FROM: JAMES A. BERGMAN, CITY MANAGER
SUBJECT: CONSIDERATION OF OPTIONS RELATING TO AMENDING THE
ARROYO GRANDE MUNICIPAL CODE REGARDING THE CITY
LICENSING OF CANNABIS DELIVERY SERVICES
DATE: JUNE 12, 2018
SUMMARY OF ACTION:
Review a case study of an effort to establish a cannabis delivery service in the City, and
consider various policy actions to improve the effectiveness of implementing City policy.
This includes a recommendation by staff to amend the Municipal Code to allow State
Licensed Cannabis retailers who have a business premises located outside of the City
of Arroyo Grande to deliver within the City of Arroyo Grande without the need of a City
Delivery License.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There has been considerable staff time devoted to processing local cannabis delivery
permits well above fees collected with arguably no achievement of a key Council policy
goal (access to medicinal cannabis for patients who are unable to travel to a
dispensary). There has also been much City Manager and City Attorney time spent
reviewing the concerns stemming from the case study application. Implementing staff’s
recommendation would require a small amount of time creating ordinance amendments,
but ultimately the repeal of the City’s Cannabis Delivery Services licensing procedures
will result in Police Department staff no longer having to spend its limited resources on
implementation of the City’s licensing process and instead transfer this process to the
State of California, resulting in increased access to medical cannabis by patients in their
homes.
RECOMMENDATION:
It is recommended that the City Council:
1. Provide direction related to the City Council’s intent to prohibit all commercial
cannabis activities in the City other than delivery from businesses that have a
legally established premises located outside of the City Limits; and
2. Provide staff direction to amend Chapter 16.62 of the Arroyo Grande
Municipal Code (AGMC) and repeal the City’s Cannabis Delivery Service
licensing provisions in AGMC Chapter 5.95 of Title 5, so that any State
licensed cannabis retailer with its physical premises located outside of the
City can deliver cannabis into the City.
Item 12.a. - Page 1
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 2
BACKGROUND:
Summary of the Issue
Since December 2017, City staff has been attempting to authorize a cannabis delivery
service in accordance with the procedures in Chapter 5.95 and Chapter 16.62 of the
AGMC and with new State cannabis laws. The simultaneous development of State
regulations related to commercial cannabis activities has created a dynamic policy
environment and has been a complicating factor.
The representatives of the business in this case study (Elite Care), the only delivery
service to have received a City Delivery License, have expressed frustration with the
process and staff. The representatives believe that the City’s Ordinance not only
permits but requires a non-discretionary approval of a Retail Non-storefront use at 1248
E. Grand Avenue, while staff believes that the use is prohibited by the AGMC.
After many hours of discussion, staff and Elite Care have an understanding of each
other’s position but still remain unable to resolve the issue and believe consultation with
the Council can assist in a better understanding for both parties. In addition, staff has
used this current issue as a catalyst to review the efficacy of specific cannabis
regulations in the City and suggest appropriate revisions.
Legislative Summary
On January 26, 2016, the City Council of the City of Arroyo Grande adopted Ordinance
No. 675 which added Chapter 16.62 to Title 16 of the Arroyo Grande Municipal Code,
prohibiting medical marijuana dispensaries, cooperatives and collectives, and deliveries
of medical marijuana, and the cultivation of marijuana within the City. The City Council
subsequently determined that it was appropriate to allow limited cultivation and strictly
regulated deliveries of medical marijuana and on June 28, 2016, adopted Ordinance
678, amending AGMC Chapter 16.62 to allow limited indoor cultivation of medical
marijuana and adding Chapter 5.95 relating to Delivery Services.
On November 9, 2016, the Adult Use of Marijuana Act (AUMA), also known as
Proposition 64, became effective, authorizing certain personal use and cultivation of
marijuana at a private residence and creating a state licensing and regulatory
framework for various commercial marijuana activities. Thereafter, on October 10,
2017, the City Council adopted Ordinance 687 to amend and clarify the provisions in the
AGMC relating to marijuana in order to continue to prohibit all commercial marijuana
activity within the City of Arroyo Grande, except for limited delivery as permitted by
Chapter 5.95, to ban outdoor marijuana cultivation and reasonably regulate indoor
marijuana cultivation. The Ordinance also changed the use of the word “marijuana” to
“cannabis” throughout, to be consistent with new State laws.
The State has now implemented a new comprehensive licensing and regulatory system
based upon emergency regulations adopted in December 2017. These regulations
Item 12.a. - Page 2
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 3
include, among other things, extensive requirements for background checks of
licensees, requirements related to premises, testing and quality control of cannabis,
packaging and labeling, a “track and trace” system for all commercial cannabis activity,
and procedures relating to delivery. Additionally, the State has issued many licenses for
commercial cannabis activities and the industry has been evolving rapidly in the State
and the County. The Bureau of Cannabis Control (BCC) has issued temporary and
some permanent licenses for 600 retailers, 130 non-storefront retailers, 500 distributors,
50 distributors-transport only, 120 microbusinesses, 26 testing laboratories, and 42
event organizers throughout the State. Of these licenses, the State has issued the
following in the 805 area code (Monterey, San Luis Obispo, Santa Barbara, and Ventura
Counties): 11 Retailers, 5 Non-storefront retailers, 8 distributors, 2 distributors-transport
only, 1 microbusiness, 2 testing laboratories, 1 event organizer.
ANALYSIS OF ISSUES:
Review of the Application Process
The following is a review of the case study application and the dynamic regulatory
environment of the time.
June 28, 2016 – The Arroyo Grande City Council adopts Ordinance 678
amending AGMC Chapter 16.62 to allow limited indoor cultivation of medical
marijuana and adding Chapter 5.95 relating to Delivery Services.
November 30, 2016 - Elite Care applied to the Arroyo Grande Police Department
for a Medical Marijuana Delivery Service License and a Medical Marijuana
Delivery Service Driver’s License.
June 21, 2017 - Elite Care was issued a local delivery license by the City of
Arroyo Grande with a mailing address of a post office box at the UPS store at
1375 E. Grand Avenue. This license was issued according to Ordinance 678
which includes the following key components:
Item 12.a. - Page 3
16.62.010 -PU!J)OH and findings
A . It •is the .purpose and. intent of this chapter to prohibit medical marijuana
dispensaries, cooperatives and collectives, ancl limit cultivation of medical marijuana
pursuant to the City of Arroyo Grande's authority under Section 7 of Article XI of the
California Constitution, in order to promote the health, safety, and general welfare of the
residents and businesses within the City of Arroyo Grande and prevent adverse impacts
w ich sucn activities may nave on nearoy properties and residents, as recognized by
the Courts (~ference City of Riverside v. Inland Empire Patients Health & Wellness
Center., Inc., 56 Ca l.4th,29 (2013) ana Maral v. CilV<>f: Live Oak, 221 Cal.AppAth 975
(2013)) and as provided in the Medical Marijuana Regulation and Safety Act (AB 243
(Cflapter '688, Statutes of 2015),; AB 266 {Chapter 689, Statutes of 2015); and SB 643
(Chapter 719 Statutes of 2015)).
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 4
June 27, 2017 – At a City Council meeting staff recommends that the City
Council: 1) receive an analysis of issues including preliminary recommendations
from staff, 2) receive public comment, and 3) direct staff to develop an Ordinance
regulating personal indoor cultivation and restricted deliveries in a manner similar
to the City’s medical marijuana regulations and prohibit all other non-medical
marijuana related land uses at this time.
September 26, 2017 - The City Council considered and introduced a
recommended draft Ordinance (to become Ordinance 687) for land uses
associated with the adult use of non-medical marijuana as discussed at the City
Council meeting of June 27, 2017. The Council directed Ordinance was
developed to: 1) prohibit all outdoor cultivation, 2) prohibit all commercial uses
except limited delivery services, and 3) regulate personal cultivation for non-
medical marijuana consistent with existing City regulations for medical marijuana
but modified to be consistent with AUMA language.
October 10, 2017 - The City Council adopted Ordinance 687
November 9, 2017 - Ordinance 687 becomes effective.
December 7, 2017 - The State of California issued a NOTICE OF APPROVAL
OF EMERGENCY REGULATORY ACTION that created emergency regulations
of commercial cannabis activities.
The State’s Emergency Regulations require retailers, including Non-Storefront
Retailers, to have a physical “premises” from which they conduct their business
in order for the State to effectively control and regulate issues of Statewide
concern such as where the cannabis originated, where it was distributed, and to
establish State tax records. Two important and germane statements in the
emergency regulations are:
Item 12.a. - Page 4
16.62.070 -Deliveries
It shall be unlawful for !lny person to deliver med ical marijuana or medical cannabis
products or engage in activities that con stitute delivery of medical marijuana or medical
cannabis products anywhere wit hin the boundaries of in the City of Arroyo Grande
unless the medical marijuana delivery service and each delivery driver is licensed in
accordance with the pn)visions of Chapter 5.95 of this Code.
5.9 5.010 -Definitions
'Marijuana Delivery Service" means a person or persons engaged in the
business of owning, controlling or operating one or more marijuana delivery vehicles
which transport, carry, or deliver marijuana in such marijuana delivery vehicle, or
1manj uana delivery vehicles, anywhere within the City of Arroyo Grande.
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 5
§ 5025. Premises (a) Each license shall have a designated premises for
the licensee’s commercial cannabis activity, which is subject to inspection
by the Bureau.
§ 5033. (c) Each location where cannabis goods are stored must be
separately licensed.
December 8, 2017 - City staff receives correspondence from Meghan Zapata of
the BCC regarding an application for Retailer Non-storefront license at 1197
Highland Way, Grover Beach, CA (Elite Care Enterprises, Business License
Certificate No. BL17-000133 BCC Record ID Number M9-17-0000001-APP).
(Attachment 1)
December 8, 2017 - Correspondence from Meghan Zapata of the BCC regarding
an application for Medicinal Microbusiness license at 1197 Highland Way, Grover
Beach, CA (Cynthia Gonzalez, Medicinal Marijuana Delivery Service MJ0001
BCC Record ID Number M12-17-0000001-APP). (Attachment 2)
December 13 and 14, 2017 - A Letter of Intent and Property Owner’s
Authorization for a Non-Store Front Mobile Delivery Service Lease to Elite Care
Enterprises for a commercial lease of 1248 E. Grand Avenue Suite C, Arroyo
Grande is developed. [It should be noted that this document is in the file but there
are no corresponding documents that indicate why it was submitted or when.]
(Attachment 3)
December 14, 2017, 10:15 AM - Staff sends an e-mail reply to Meghan Zapata of
the BCC regarding Cynthia Gonzalez, (Medicinal Marijuana Delivery Service
MJ0001 BCC Record ID Number M12-17-0000001-APP and Elite Care
Enterprises, Business License Certificate No. BL17-000133 BCC Record ID
Number M9-17-0000001-APP) with two points of clarification – City staff reports
that the address of the use is located within the jurisdiction of the City of Grover
Beach and one address is a Post Office Box at a UPS Store in Arroyo Grande;
and second, Elite Care has a City issued license to conduct deliveries only in
Arroyo Grande. (Attachment 4)
December 19, 2017, 8:55 AM - Correspondence from Meghan Zapata of the
BCC regarding an application for Retailer Nonstorefront license at 1248 Grand
Avenue Suite C, Arroyo Grande (Elite Care Enterprises, Business License
Certificate No. BL17-000133 BCC Record ID Number M9-17-0000001-APP).
(Attachment 5)
December 19, 2017, 3:06 PM - Email response from City staff to Meghan Zapata
of the BCC (Elite Care Enterprises, Business License Certificate No. BL17-
Item 12.a. - Page 5
---
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 6
000133 BCC Record ID Number M9-17-0000001-APP) stating: “The application
for a Medicinal Retailer – Nonstorefront License, appears consistent with the
permit issued by the City to provide delivery services only in the City of Arroyo
Grande. We note that microbusiness activities are not allowed as the City
otherwise prohibits commercial cannabis activities.” (Attachment 6)
December 23, 2017, 1:56 PM (Saturday, two days before Christmas) - Email
correspondence from Veronica Daniel of the BCC inquiring about a Medicinal -
Retailer Nonstorefront Application BCC Record ID Number: M9-17-0000018-APP
at 1248 E. Grand Avenue Suite C. (Attachment 7)
January 3, 2018, 8:55 PM - Email correspondence from Megan Zapata of the
BCC (BCC Record ID Number: A9-18-0000095-APP) to Teresa McClish but
incorrectly addressed to Ebony Anderson [a person who is unknown to the City]
regarding a State temporary Adult-Use Retailer Nonstorefront license for 1248 E.
Grand Avenue Suite C. (Attachment 8)
January 4, 2018, 5:18 PM - Response from Matthew Downing to Megan Zapata
of the BCC stating that the temporary Adult-Use Retailer Nonstorefront license
(BCC Record ID Number: A9-18-0000095-APP) is not authorized due to the use
being classified as a Commercial Cannabis Activity which is prohibited by the
AGMC. (Attachment 9)
January 8, 2018 - Response from Teresa McClish to Veronica Daniel of the BCC
(BCC Record ID Number: M9-17-0000018-APP) that Medicinal - Retailer
Nonstorefront Application is not authorized due to the use being classified as a
Commercial Cannabis Activity which is prohibited by the AGMC. (Attachment 10)
As a result of the above communications between the State and the City, Elite Care was
issued a “Medicinal-Retailer Temporary Nonstorefront License” for the premises located
at 1248 E. Grand Avenue, with an expiration date of July 30, 2018. On June 5, 2018,
the State revoked the License based on information from the City to the State that Elite
Care is not authorized to conduct the commercial cannabis activity in the City for which
the Medicinal- Retailer Temporary Nonstorefront License had been issued.
Assessment of the City’s Cannabis Policy
The creation of good public policy requires a component that frequently assesses the
efficacy of adopted policy to achieve intended outcomes. Due to the difficulties
encountered in this case study, staff believes it is important to act on this opportunity.
After reviewing this case and participating in discussions to seek understanding, the
following comments are presented in an effort to help to improve the process:
Item 12.a. - Page 6
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 7
1. There is a disagreement in the meaning of the AGMC –
Staff believes that the plain language of the AGMC and the clear legislative
history prohibits commercial cannabis land uses in the City but allows legally
established cannabis retailers located outside the City to deliver cannabis
products into the City after receiving a local delivery license from the Arroyo
Grande Police Department.
Staff sees no evidence that the Council intended for a single, much less up to
three, brick and mortar operations for delivery services in the City. This concept
is supported by the complete lack of mention of non-storefront retail cannabis
uses in any land use tables such as Table 16.36.030(A) – “Uses Permitted Within
Mixed Use and Commercial Districts” or the presence of any general
development standards, performance standards, or specific use development
standards for cannabis uses that are known for safety and compatibility concerns
by the public and professional staff.
Further, Elite Care representatives assert that the State requirement for cameras,
security systems, and door locks address safety concerns adequately. Staff
disagrees due to the fact that the State regulations address issues of concern to
the State that occur inside of the premises and not issues that are left to local
control such as zoning and local safety.
2. Although thoroughly examined, the current parameters of the State Law and the
AGMC provide no compromise to this situation outside the lengthy and resource
intensive process of amending the AGMC.
The State requires that cannabis be stored at licensed premises, and the AGMC
does not allow storage of cannabis in the City.
3. The changing and evolving regulatory environment and a rush to January 1,
2018 presented problems for all involved.
The transition to legal recreational cannabis in California happened quickly with
little time between the passage of the Governor’s Trailer Bill and the effective
date of a State that openly accepts and regulates recreational cannabis. A review
of the timeline presented earlier in this staff report indicates the rapid pace of the
creation of the BCC, the development of emergency regulations and the chaotic
and duplicative communication process occurring near the end of December
2017. A close look at some of the correspondence from the BCC indicate they
occurred after business hours including the Saturday two days before Christmas
and by multiple BCC staff members in an uncoordinated manner.
Item 12.a. - Page 7
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 8
Another aspect of the changing regulatory environment includes the creation of
emergency regulations and the lack of ability to fully comprehend their meaning
on the part of the BCC and City staff. The response by City staff on December
14, 2017 attempts to clarify that “Elite Care has a City issued license to conduct
deliveries only in Arroyo Grande.” It is not outside the realm of possibilities that
the BCC or the applicant interpreted this as meaning that the use is required to
be physically located in the City of Arroyo Grande.
Lastly, City staff’s response to BCC on December 19, 2017, which states
apparent consistency with the AGMC is inconsistent with past interpretations.
Research into this action shows strong internal communication leading up to this
written comment. The response was generated without the full comprehension of
the State requirement that cannabis must be stored at the location.
Conversations at this time focused around the meaning of new terms and
definitions in the Emergency Regulations – Non-storefront Retailer and
Microbusiness as presented below:
§ 5414. Type 9- Non-Storefront Retailer (a) A Type 9-Non-
Storefront Retailer licensee shall be authorized to conduct retail
cannabis sales exclusively by delivery as defined in Business and
Professions Code section 26001(p). (b) A complete application for
a Type 9-Non-Storefront Retailer license shall include all the
information required in an application for a Type 10-Retailer
license. (c) A Type 9-Non-Storefront Retailer licensee shall comply
with all the requirements applicable to Type 10-Retailer licensees,
except for those provisions related to public access to the
premises. (d) The licensed premises of a Type 9-Non-Storefront
Retailer licensee shall be closed to the public. Authority: Section
26013, Business and Professions Code. Reference: Sections
26012 and 26070, Business and Professions Code.
§ 5500. Microbusiness (a) In order to hold a microbusiness license,
a licensee must engage in at least three (3) of the following
commercial cannabis activities: cultivation, manufacturing,
distribution, and retail sale.
When City staff was reviewing the correspondence from the BCC on December
19, it should be noted that “Type 9 – Non-Storefront Retailer” does not expressly
mention elements of commercial cannabis uses as defined by the AGMC, while
the definition of a microbusiness clearly does.
Item 12.a. - Page 8
---
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 9
Lastly, as part of the State process, City staff only received a general statement
about the proposed use that did not include a floor plan which staff was given
much later in the process by the applicant that would have clearly indicated
prohibited commercial cannabis activities per the AGMC. (Attachment 11)
It is unclear if staff’s response on December 19, 2017 led to the issuance of a
Temporary State License; however, a mistake in a determination, although
impactful to an applicant and to our credibility does not overrule our duty to
correctly follow the law once all information is known.
Moving Forward
Staff presents three options available to the City Council relating to the policy of
allowing the delivery of cannabis into Arroyo Grande and the concerns that have
developed with regard to this case study:
1. Maintain the prohibition on all commercial cannabis activities, with the exception
of delivery by Cannabis Delivery Services licensed by the City pursuant to
Chapter 5.95 of the Arroyo Grande Municipal Code.
2. Maintain the prohibition on all commercial cannabis activity, but modify the
AGMC to instead rely on the new State licensing and delivery regulations as it
relates only to delivery services.
3. Provide direction to amend the City’s Municipal Code and allow Non-Storefront
cannabis retailers to locate their physical premises in the City. Direction related
to this course of action would require extensive work by staff to identify zones
and locations that would be appropriate for such uses, as well as the need to
address a multitude of regulatory issues. This process would require extensive
public outreach, involvement of the Planning Commission to review and
recommend a draft Ordinance and depending on a desired time-frame, require
rearranging and postponing some staff priorities or contracting with outside
professionals.
Staff is recommending the second option, which maintains the prohibition of all
commercial cannabis uses and repeals Chapter 5.95 and instead relies on the State’s
new comprehensive regulations and delivery procedures. This recommendation is
based on the following rationale:
1. Staff believes that the City’s licensing process is duplicative and no longer
necessary.
When the City adopted its Cannabis Delivery Services Ordinance in 2016,
concerns were expressed regarding issues related to background checks for
Item 12.a. - Page 9
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 10
operators of delivery services and drivers, the quality and source of cannabis
being delivered, and various other aspects of the delivery process. At that time,
State regulations had not been adopted, and the voters had not yet approved
Proposition 64.
Subsequently, State laws have been adopted to implement Proposition 64, and
in December 2017, the State adopted a 122 page long comprehensive set of
emergency regulations. This last Wednesday, June 6, 2018, the State adopted a
revised set of emergency regulations to further clarify the new regulatory process
for cannabis in California. A redlined version of the portion just adopted
emergency regulations relating to delivery is attached for City Council reference.
(Attachment 12)
Staff has reviewed the State licensing regulations and believes that they
adequately address the issues that were of concern that led to the initial adoption
of the City’s Cannabis Delivery Services regulations. This is especially true given
the new laws extensive application process, track and trace provisions, and
testing and packaging requirements, in addition to the protocols for deliveries.
As far as comparing the State delivery regulations to the City’s, the major
difference is that the City had been requiring that individual drivers get City
permits. The State regulations, however, have an extensive application process
requiring detailed submittals regarding applicant’s backgrounds and criminal
history, business formation documents, financial information related to the
business, security procedures, inventory procedures, transportation procedures,
and requirements relating to personnel records and employee training records.
They also include provisions requiring drivers to be at least 21 years old, requires
deliveries be to a physical address, contain vehicle requirements including use of
a dedicated GPS, address delivery routes, delivery receipts and related matters.
Employees are required to carry a copy of the retailer’s State license, and proper
identifications, and the retailer must also maintain an accurate list of its delivery
employees. A provision also expressly prohibits delivery employees from
consuming cannabis goods while making deliveries A retailer (both Storefront
and Non-Storefront) may only sell and deliver cannabis goods between the hours
of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Time.
2. A significant amount of Police Department and Community Development staff
time is required for implementing the City’s regulations.
3. The failure to achieve the policy goal of allowing access to cannabis to patients in
their homes with the use of a local licensing process which is currently limited to
a maximum of 3 providers.
Item 12.a. - Page 10
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 11
4. Access to all newly State licensed cannabis retailers who choose to provide
service to the City of Arroyo Grande. A review of the BCC’s list of licensed
retailers and internet searches reveal three likely services.
Accordingly, staff is recommending that the City’s cannabis regulations be amended to
allow deliveries to be made by any State licensed retailer located outside of the City of
Arroyo Grande by repealing the City’s local Cannabis Delivery Service licensing
provisions.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Review the forgoing options and staff’s recommendation and provide direction
regarding cannabis delivery in the City of Arroyo Grande; or
2. Provide other direction to staff.
ADVANTAGES:
Staff’s recommendation will maintain the prohibition on all commercial cannabis
activities but would:
1. Allow delivery of cannabis to patients by a larger pool of providers; and
2. Relieve the Police Department and the Community Development Department
from having to use its resources to implement the City’s Cannabis Delivery
Services licensing program.
DISADVANTAGES:
Repealing the City’s local Cannabis Delivery Services Licensing Ordinance will give up
some local control; however, it appears the City’s concerns are adequately addressed
by the State regulations.
ENVIRONMENTAL REVIEW:
This case review is exempt from the California Environmental Quality Act (“CEQA”)
pursuant to CEQA Guidelines Section 15061(b)(3), which is the general rule that CEQA
applies only to projects that have the potential for causing a significant effect on the
environment and CEQA does not apply where it can be seen with certainty that there is
no possibility that the activity may have a significant effect on the environment.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 12.a. - Page 11
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 12
Attachments:
1. Correspondence from Meghan Zapata of the BCC regarding an application for
Retailer Non-storefront license at 1197 Highland Way, Grover Beach, CA (Elite
Care Enterprises, Business License Certificate No. BL17-000133 BCC Record ID
Number M9-17-0000001-APP)
2. Correspondence from Meghan Zapata of the BCC regarding an application for
Medicinal Microbusiness license at 1197 Highland Way, Grover Beach, CA
(Cynthia Gonzalez, Medicinal Marijuana Delivery Service MJ0001 BCC Record
ID Number M12-17-0000001-APP).
3. Letter of Intent and Property Owner’s Authorization for a Non-Store Front Mobile
Delivery Service Lease to Elite Care Enterprises for a commercial lease of 1248
E. Grand Avenue Suite C, Arroyo Grande
4. Correspondence from Meghan Zapata of the BCC regarding an application for
Retailer Nonstorefront license at 1248 Grand Avenue Suite C, Arroyo Grande
(Elite Care Enterprises, Business License Certificate No. BL17-000133 BCC
Record ID Number M9-17-0000001-APP).
5. Correspondence from Meghan Zapata of the BCC regarding an application for
Retailer Nonstorefront license at 1248 Grand Avenue Suite C, Arroyo Grande
(Elite Care Enterprises, Business License Certificate No. BL17-000133 BCC
Record ID Number M9-17-0000001-APP)
6. Email response from City staff to Meghan Zapata of the BCC (Elite Care
Enterprises, Business License Certificate No. BL17-000133 BCC Record ID
Number M9-17-0000001-APP)
7. Email correspondence from Veronica Daniel of the BCC inquiring about a
Medicinal - Retailer Nonstorefront Application BCC Record ID Number: M9-17-
0000018-APP at 1248 E. Grand Avenue Suite C.
8. Email correspondence from Megan Zapata of the BCC (BCC Record ID Number:
A9-18-0000095-APP) to Teresa McClish but incorrectly addressed to Ebony
Anderson [a person who is unknown to the City] regarding a State temporary
Adult-Use Retailer Nonstorefront license for 1248 E. Grand Avenue Suite C.
9. Response from Matthew Downing to Megan Zapata of the BCC stating that the
temporary Adult-Use Retailer Nonstorefront license (BCC Record ID Number:
A9-18-0000095-APP)
Item 12.a. - Page 12
CITY COUNCIL
CONSIDERATION OF OPTIONS RELATING TO AMENDING THE ARROYO
GRANDE MUNICIPAL CODE REGARDING THE CITY LICENSING OF CANNABIS
DELIVERY SERVICES
JUNE 12, 2018
PAGE 13
10. Response from Teresa McClish to Veronica Daniel of the BCC (BCC Record ID
Number: M9-17-0000018-APP)
11. Floor Plan of 1248 E. Grand Avenue
12. State of California Emergency Regulations for Cannabis
Item 12.a. - Page 13
Cl Bureau of Cannabis Control
1625 North Market Blvd, Suite S-202, Sacramento, CA 95834
P (800) 952-52101 www.bcc.ca.gov
December 8, 2017
Teresa McClish
Community Development Director
300 E. Branch Street
Arroyo Grande, CA 93420
RE.: Cynthia Gonzalez, Medicinal Marijuana Delivery Service, MJ0001
BCC Record ID Number: M12-17-0000001-APP
Dear Ms. McClish:
The Bureau of Cannabis Control (Bureau) has received an application from Cynthia
Gonzalez for a state temporary Medicinal Microbusiness license. The proposed license
premises located at 1197 Highland Way Grover Beach, CA 93433, is within your
jurisdiction.
The applicant has provided to the Bureau a copy of a permit. Please confirm whether
the authorization provided by the applicant is valid. If the Bureau does not receive
notification that the authorization is invalid within 10 calendar days of the date on this
correspondence, the Bureau shall consider the authorization valid.
Please send your response to this notification to Meghan.Zapata@dca.ca.gov. If you
have any questions, please do not hesitate to contact me at the email address above or
by phone at (916) 574-7525.
Sincerely,
Meghan Zapata
Licensing Manager
ATTACHMENT 1
Item 12.a. - Page 14
3USJt1ESS# CONSUMER SERVfGES, At~D HOUSING AG!::~CY • GOVERNOR 2Dr11,UND G. 3ROWN JR.
ATTACHMENT 2
Item 12.a. - Page 15
~.~~ ~.~{
3USJNESS: CONSUMEr! SCRV!CSS 1 A\\ID HOUSING AGENCY ~ GOVERNOR EDMUND G. BROWN Jfi_
Bureau of Cannabis Control
1625 North Market Blvd, Suite S-202, Sacramento, CA 95834
P (800) 952-52101 www.bee.ca.gov
December 8, 2017
Teresa McClish
Community Development Director
300 E. Branch Street
First and Second Floors
Arroyo Grande, CA 93420
RE: Elite Care Enterprise, Business License Certificate No. BL 17-000133
BCC Record ID Number: M9-17-0000001-APP
Dear Ms. McClish:
The Bureau of Cannabis Control (Bureau) has received an application from Elite Care
Enterprise, for a state temporary Medicinal -Retailer Nonstorefront license. The
proposed license premises located at 1197 Highland Way Grover Beach, CA 93433, is
within your jurisdiction.
The applicant has provided to the Bureau a copy of a permit. Please confirm whether
the authorization provided by the applicant is valid. If the Bureau does not receive
notification that the authorization is invalid within 10 calendar days of the date on this
correspondence, the Bureau shall consider the authorization valid.
Please send your response to this notification to.Meghan.Zapata@dca.ca.gov. If you
have any questions, please do not hesitate to contact me at the email address above or
by phone at (916) 574-7525. ·
Sincerely,
Meghan Zapata
Licensing Manager
ATTACHMENT 3
Item 12.a. - Page 16
December 13, 2017
Re: Letter of Intent and Property Owner's Authorization for a Non-Store Front
Mobile Delivery Service Lease to Elite Care Enterprises
To Whom It May Concern:
Pacific Coast Investments is the legal owner of 1248 B. Grand Ave. Suite C,
Arroyo Grande, CA 93420 (APN· 077-082-040). .
By execution of this Letter of Intent, Elite Care Enterprises hereby agrees to lease
. the property for con~ business as a Non-Store Front Mobile Delivery
Senice, subjectto (A) Elite Care Enterprises shall remain in complet.e compliance
with the State of California Bureau of Cannabis Control licensing policies and (B)
Elite Care Eateq>rises shall remain in complete compliance with Arroyo Grande's
Police Department pemut to operate and .(C) all City and State Laws.
Title
(u-tt-7017
Date
/Sl,./$.n
Date
ATTACHMENT 4
Item 12.a. - Page 17
Teresa McClish
From:
Sent:
To:
Subject:
Attachments:
Dear Ms. Mcclish,
Zapata, Meghan@DCA <Meghan.Zapata@dca.ca.gov>
-Tuesday, December 19, 2017 8:55 AM
Teresa McClish
RE: Elite Care Enterprise, Business License Certificate No. Bll?-000133
-0000001-APP Elite Care Enterprise 2nd local letter.xlsx .pdf
Please see the attached letter in regards to an application t the Bureau of Cannabis Control received from Elite Care
Enterprise requesting a license for a Medicinal Retailer -Nonst . ont. The applicant has provided an updated address
that is located in Arroyo Grande.
Please contact me if you have any questions .
Thank you,
Meghan Zapata
Licensing Manager
Bureau of Cannabis Control
BCC Record ID Number: M9-17-0000001-APP
From: Teresa Mcclish [mailto:tmcclish@arroyogrande.org]
Sent: Thursday, December 14, 2017 10:15 AM
To: Zapata, Meghan@DCA <Meghan.Zapata@dca.ca.gov>
Cc: Heather Whitham (hwhitham@carnaclaw.com) <hwhitham@carnaclaw.com>; Beau Pryor
<bpryor@arroyogrande.org>; Jim Bergman <jbergman@arroyogrande.org>
Subject: RE: Elite Care' __ Enterprise, Business License Certificate No. BL17-000133
Dear Ms. Zapata,
Pl~ase see the attached letter and permit for Elite Care Enterprise. Thank you for your contact. Please let me know if
_ you need any further information.
Teresa lvkClish, .AI CP
Director of Community Development
City of Arroyo Grande
300 E. Branch Street .
,-\rroyo Grande, C..,\ 93421
(805) 473-5420
fax (805) 473-0386
tmcclish@arroyogrande.org
From: Zapata, Meghan@DCA [mailto:Meahan.7aoata@dca.ca.aov]
Sent: Friday, December 08, 2017 4:20 PM
To: Teresa Mcclish
Subject: Elite care Enterprise, Business License Certificate No. B
1
Item 12.a. - Page 18
1.-,,/. ~£ -CITY OF
: }~~~ ... -. . -.
'
. _. -r.,1·,?':.-:•:~~;,:,,."~"· · , , , .
' <;,,
:f,J.#! ';.A L I F O R !Q~.,fif' ~ '.r~"'~'$
. CITY OF AR 1ROYOt. GRAN;D~E,
December 14, 2017
Meghan Zapata
Licensing Manager
Bureau of Cannabis Control
1625 North Market Blvd, Suite S-202
Sacramento, CA 95834
CALIFORNIA
RE: 1) Cynthia Gonzalez, Medicinal Marijuana Delivery Service, MJ0001,
BCC Record ID Number: M12-17-0000001-APP; and
2) Elite Care Enterprise, Business License Certificate No. BL 17-000133, BCC
Record ID Number: M9-17-0000001-APP
Dear Ms. Zapata:
The City has received two letters from you dated December 8, 2017 requesting
verification of City cannabis licenses concerning the subject applications for 1) a
temporary Medicinal Microbusiness license; and 2) a temporary Medicinal -Retailer
Nonstorefront license. We have two clarifications regarding the proposed applications .
.
The first clarification is that the premises address identified in your letter for ~ach
proposed license (1197 Highland Way, Grover 13each, CA 93433) is not located within
the jurisdiction of the City of Arroyo Grande. The address identified on the City permit
(1375 Grand Ave. Suite 105, Arroyo Grande, CA 93420) is for a UPS business in
Arroyo Grande (please see attached). Secondly, in accordance with the provisions in
the Arroyo Grande Mun,icipal Code, the City has issued one license to Elite Care, to
conduct deliveries only in Arroyo Grande. Otherwise, the City of Arroyo Grande has
adopted an ordinance that prohibits any other commercial cannabis activities in the City.
Thank you for your request for confirmation in order to ensure only the authorized
delivery services occur in our City. Please do not hesitate to contact me with any
questions (805) 473-5422 .
. Sincerely,
(-ff rn t:.L-----
Teresa J. Mcclish
Director of Community Development
City of Arroyo Grande
tmcclish@arroyogrande.org
COMMUNITY DEVELOPMENT DEPARTMENT • 300 E. Branch Street • Arroyo Grande, California 93420
Phone: (805) 473-5420 • FAX: (805) 473-0386 • E-mail: agcity@arroyogrande.org • Website: www.arroyogrande.org
/
Item 12.a. - Page 19
Page 2 of 2
Attachment -Arroyo Grande Police Department Medical Marijuana Delivery Services -
Permit MJ0001
Cc: City Ajtorney
City Manager
Police Chief
Item 12.a. - Page 20
\
\
ARROYO GRANDE PoLiCE DEPARTMENT
200 North Halcyon Road. Arroyo Grande, CA 93420
Phone (805) 473-5100 111 FAX (805) 473--2198
Website: wi,w1.agpd.org
t ot,/\H,.J!CZ£Slit;;l$ti$,U::£1..dN44$£JCS&ZJiifl!b.!l¥:Mi¥S4W W ;;::; 4 AA,15 M.QJJiti9W A QJ#¥Mi;V <&UW4l»l Z ~I
Medical Mariiuana Deliverx Service Perrnit-MJ0001
Business Nim\e: Ellle Cam Enterprises
Business Owner(s): Tarrii Peluso & Cyhthla Gonzalez
Business Address: !375 E. Grand Avenue, Suite 105, Arroyo Grande, CA 93420
Date Issued 06/21/17 Expiration Dale 12/31/18 __ .. ___ (-"••·•~-.. ,
St✓~>~<•<,,· --... -~~~ ··· I t~;• _________ _
Beau Pryor, NChief of Police
ATTACHMENT 5
Item 12.a. - Page 21
Jim Bergman
From:
Sent:
To:
Cc:
Subject:
Dear Ms. Zapata,
Teresa McClish
Tuesday, December 19, 2017 3:06 PM
'Zapata, Meghan@DCA'
Jim Bergman; Beau Pryor, Heather Whitham (hwhitham@carnaclaw.com); David H.
Hirsch (dhirsch@carnaclaw.com)
RE: Elite Care Enterprise, Business License Certificate No. BL 17-000133
Regarding your letter dated December 19, 7 for Elite Care Enterprise, Business License Certificate No.
BL 17-000133 BCC Record ID Number: M9-17-
The application for a Medicinal Retailer -Nonstorefron · ense, appears consistent with the permit issued by
the City to provide delivery services only in the City of Arra rande. We note that microbusiness activities
are not allowed as the City otherwise prohibits commercial can ·
Thank you for providing notification and requiring corrected address.
Teresa McClish ·
'Teresa Mcdish, AIO'
Director of Community Development
Gty of Arroyo Grande ·
300 E. Branch Street
Arroyo Grande, CA 93421
(805) 473-5420
fax (805) 473-0386
tmcclish@arroyogrande.o~
From: Zapata, Meghan@DCA [mailto:Meghan.Zapata@dca.ca.gov]
Sent: Tuesday, December 19, 2017 8:55 AM ·
To: Teresa Mcclish
Subject: RE: Elite Care Enterprise, Business License Certificate. No. BL17-000133
Dear Ms. McClish, ·
Please see the attached letter in regards to an application that the Bureau of Cannabis Control received from Elite Care
Enterprise requesting a license for a Medicinal Retailer -Nonstorefront. The applicant has provided an updated address
that is located in Arroyo Grande.
Please contact me if you have any questions.
Thank you,·
Meghan Zapata
Licensing Manager
Bureau of Cannabis Control
BCC Record ID _Number: M9-17-0000001-APP
1
• I
Item 12.a. - Page 22
OT.ATCi OP CA,t.lFOANIA oca
UEPIIRTMENT CF CCNSUMliR AFFAIRS
BUSINESS, CONSUMER SERVICES, AND HOUSING AGENCY • GOVERNOR EDMUND 0. BROWN JR.
Bureau of Cannabis Control
1625 North Market Blvd, Suite S-202, Sacramento, CA 95834
P (800) 952-52101 www.bcc.ca.gov
December 19, 2017
Teresa McClish
Community Development Director
300 E. Branch Street
First and Second Floors
Arroyo Grande, CA 93420
RE: Elite Care Enterprise, Business License Certificate No. BL 17-000133
BCC Record ID Number: M9-17-0000001-APP
Dear Ms. McClish:
The Bureau of Cannabis Control (Bureau) has received an application from Elite Care
Enterprise, for a state temporary Medicinal -Retailer Nonstorefront license. The
proposed license premises located at 1248 Grand Avenue, Suite C Arroyo Grande, CA
93420, is within your jurisdiction.
The applicant has provided to the Bureau a copy of a permit. Please confirm whether
the authorization provided by the applicant is valid. If the Bureau does not receive
notification that the authorization is invalid within 10 calendar days of the date on this
correspondence, the Bureau shall consider the authorization valid.
Please send your response to this notification to Meghan.Zapata@dca.ca.gov. If you
have any questions, please do not hesitate to contact me at the email address above or
by phone at (916) 574-7525.
Sincerely,
Meghan Zapata
Licensing Manager
ATTACHMENT 6
Item 12.a. - Page 23
Jim Bergman
Fro~:
Sent:
To:
Cc:
Subject:
Dear Ms. Zapata,
Teresa Mcclish
Tuesday, December 19, 2017 3:06 PM
'Zapata, Meghan@DCA'
Jim Bergman; Beau Pryor; Heather Whitham (hwhitham@carnaclaw.com); David H.
Hirsch (dhirsch@carnaclaw.com)
RE : Elite Care Enterprise, Business License Certificate No . BL 17-000133
Regarding your letter dated December 19, 2017 for Elite Care Enterprise, Business License Certificate No.
BL 17-000133 BCC Record ID Number: M9-17-0000001-APP:
The application for a Medicinal Retailer -Nonstorefront license, appears consistent with the permit issued by
the City to provide delivery services only in the City of Arroyo Grande. We note that microbusiness activities
are not allowed as the City otherwise prohibits commercial cannabis activities. ·
Thank you for providing notification and requiring corrected address.
Teresa McClish
Teresa McClish, AIQ>
Director of Community Development
City of Arroyo Grande
300 E. Branch Street
Arroyo Grande, CA 93421
(805) 473-5420
fax (805) 473-0386
tmcclish@arroyogrande.oq;
From: Zapata, Meghan@DCA [mailto:Meqhan.Zapata@dca .ca.gov]
Sent: Tuesday, December 19, 2017 8:55 AM
To: Teresa Mcclish .
Subject. · lite Care Enterprise, Business License Certificate No. BL17-000133
Dear Ms. McClish, --
Please see the attached letter I rds to an application that the Bureau of Cannabis Control received from Elite Care
Enterprise requesting a license for a MeffilliirK:. ral Retailer -Nonstorefront. The applicant has provided an updated address
that is located in Arroyo Grande.
Please contact me if you have any questions ..
Thank you,·
Meghan Zapata
Licensing Manager
Bureau of Cannabis Control
BCC Record ID Number: M9-17-0000001-APP
1
ATTACHMENT 7
Item 12.a. - Page 24
Teresa Mcclish
From:
Sent
To:
Subject:
Importance:
Theresa McClish
. Daniel, Veronica@DCA <Veronica.Daniel@dca.ca.gov>
Saturday, December 23, 2017 1:56 PM
Teresa Mcclish
Elite Care Enterprises, Medicinal -Retailer Non-Storefront Application
High
Community Development Director
City of Arroyo Grande
RE: Elite Care Enterprises, Medicinal -Retailer Non-Storefront Application
sec Record ID Number: M9-17-0000018-APP
Dear Ms. McClish:
· The Bureau of Cannabis Control (Bureau) has received an application from Elite Care Enterprises for a state temporary
cannabis Medicinal-Retailer Non-Storefront license. The proposed license premises is located at 1248 E. Grand Avenue,
Suite C, Arroyo Grande, CA 93420, within your jurisdiction.
Please confirm whether the applicant is authorized to conduct the commercial cannabis ac_tivity for which the license is
requested. If the Bureau does not receive notification that the applicant is not authorized within 10 calendar days of the
date on this correspondence, the Bureau may issue the license.
Please send your response to this notification to veronica.daniel@dca.ca.gov. If you have any questions, please do not
hesitate to contact me at this email address. Thank you.
-Veroni_ca Daniel
1
I
ATTACHMENT 8
Item 12.a. - Page 25
From:
Sent:
To:
Cc:
Subject:
Matt Downing
Thursday, January 04, 2018 5:18 PM
'Meghan.Zapata@dca.ca.gov'
· , eresa McClish; Lane Harkins; Heather Whitham; David H. Hirsch
(' , ·, ch@carnaclaw.com); Beau Pryor; Jim Bergman
RE: E Care Enterprises
Dear Meghan Zapata:
Thank you for your email regarding BCC Record ID Nu
At this time and based upon the City's understanding of Stat quirements associated with the temporary Adult-Use
Retailer Nonstorefront license, the applicant would not be auth . ed to conduct the commercial cannabis activity for
which the license is requested. This is a result of our understanding t cannabis products are required to be stored at
the business location identified for the Adult-Use Retailer Nonstorefro ·cense, the location being 1248 E. Grand
Avenue, Unit #C.
In accordance with Arroyo Grande Municipal Code Subsection 16.62 .060.A, com cial cannabis activities in the City of
Arroyo Grande are not permitted. "Commercial Cannabis Activity", as defined by Arr o Grande Municipal Code Section
16 .62.040, means any cultivation, possession, manufacture, distribution, processing, st ·ng, laboratory testing,
packaging, labeling,.transportation, delivery or sale of cannabis or cannabis products (emp is added). The City allows
for limited mobile delivery services, but not for the cannabis or cannabis products to be storea
attached a copy of the City's Ordinance No. 687 for your information .
We would like to discuss this further with you to ensure our understanding of the State requirements a, ,correct. I am
unable to find a contact number for you, but please contact me at your earliest convenience at (805) 473-
Thank you.
Matthe,v Downing, AICP
Planning Manager
City of Arroyo Grande Community Development
(805) 4 73-5424
.J;, Please consider the environment before printing this email
Begin forwarded message:
From: "Zapata, Meghan@DCA" <Meghan.Zapata@dca .ca.gov>
Date: January 3, 2018 at 8:55:35 PM GMT +1
To: 'Teresa McClish' <tmcciish(@arrovogrande.org>
Subject: RE: Elite Care Enterprises
Teresa McCLish
Community Development Director
City of Arroyo Grande
RE: Elite Care Enterprises
BCC Record ID Number: A9-18-0000095-APP
Dear Ebony Aflderson:
1
Item 12.a. - Page 26
The Bureau of Cannabis _Control (Bureau) has received an application from Elite Care
Enterprises for a state temporary Adult-Use Retailer Nonstorefront license. The
proposed license premises is located at 1248 Grand Ave E, Unit #C Arroyo Grande, CA
93420 within your jurisdiction.
Please confirm wh_ether the applicant is authorized to conduct the commercial cannabis
activity for which the license is requested. If the Bureau does not receive notification
that the applicant is not authorized within 10 calendar days of the date on this
correspondence, the Bureau may issue the license.
Please send your response to this notification to Meehan.Zaoatat'iildca.ca.gov. If you
have any questions, please do not hesitate to contact me at the email address above.
Thank you.
The information contained in this email pertains to City business and is intended solely for the use of the individual
or entity to whom it is addressed. If the reader of this message is not an intended recipient, or the employee or agent
responsible for delivering the message to the intended recipient and you have received this message in error, please
advise the sender by reply email or phone and delete the message. Please note that email correspondence with the
City of Arroyo Grande, along·with attachments, may be subject to the Califomia Public Records Act, and therefore
may be subject to disclosure unless otherwise exempt by law.
2
ATTACHMENT 9
Item 12.a. - Page 27
Teresa Mcclish
From:
Sent:
To:
Cc:
Subject:
Matt Downing
Thursday, January 04, 2018 5:18 PM
'Meghan.Zapata@dca.ca.gov'
Teresa McClish; Lane Harkins; Heather Whitham; David H. Hirsch
(dhirsch@carnadaw.com); Beau Pryor; Jim Bergman
RE: Elite Care Enterprises
Dear Meghan Zapata:
Thank you for your email regarding BCC Record ID Number: A9-18-0000095-APP.
At this time and based upon the City's understanding of State requirements associated with the temporary Adult-Use
Retailer Nonstorefront license, the applicant would not be authorized to conduct the commercial cannabis activity for
which the license is requested. This is a result of our understanding that cannabis products are required to be stored at
the business location identified for the Adult-Use Retailer Nonstorefront license, the location being 1248 E. Grand
Avenue, Unit #C.
In accordance with Arroyo Grande Municipal Code Subsection 16.62.060.A, commercial cannabis activities in the City of
Arroyo Grande are not permitted. "Commercial Cannabis Activity", as defined by Arroyo Grande Municipal Code Section
16.62.040, means any cultivation, possession, manufacture, distribution, processing, storing, laboratory testing,
packaging, labeling, transportation, delivery or sale of cannabis or cannabis products (emphasis added). The City allows
for limited mobile delivery services, but not for the cannabis or cannabis products to be stored within the City. I have
attached a copy of the City's Ordinance No. 687 for your information.
We would like to discuss this further with you to ensure our understanding of the State requirements are correct. I am
unable to find a contact number for you, but please contact me at your earliest convenience at (805) 473-5424.
Thank you.
Matthew Downing, AICP
Planning Manager
City of Arroyo Grande Community Development
(805) 473-5424
J, Please consider the environment before printing this email
Fro . ata, Meghan@DCA" <Meghan.Zapata@dca.ca.gov>
Date: Janua 018 at 8:55:35 PM GMT+1
Teresa McCLish
Community Development Director
City of Arroyo Grande
RE: Elite Care Enterprises
BCC Record ID Number: A9-18-0000095-APP
Dear Ebony Anderson:
1
1
ATTACHMENT 10
Item 12.a. - Page 28
Teresa Mcclish
From:
Sent:
To:
Cc:
Teresa McClish
Monday, January 08, 2018 10:02 AM
'Daniel, Veronica@DCA'
Matt Downing; David H. Hirsch (dhirsch@carnaclaw.com); Lane Harkins
(lharkins@carnaclaw.com); Heather Whitham (hwhitham@carnaclaw.com); 'Zapata,
. Meghan@DCA'
Subject: RE: Elite Care Enterprises, Medicinal -Retailer Non-Storefront Application
· Importance: High
Ms. Daniel,
I have just returned to my office and have identified this email. My colleague, Matt Downing, who was in charge when I
was out of the office responded to a similar email inquiry from your office for a different permit number to Meghan
Zapata. The City's response for this permit number is the same.
At this time and based upon the City's understanding of State requirements associated with the temporary Adult-Use
Retailer Nonstorefront license,. the applicant would not be authorized to conduct the commercial cannabis activity for
which the license is requested. This is a result of our understanding that cannabis products are required to be stored at
the bu?iness location identified for the Adult-Use Retailer Nonstorefront license, the location being 1248 E. Grand
Avenue, Unit #C.
In accordance with Arroyo Grande Municipal Code Subsection 16.62.060.A, commercial.cannabis activities in the City of
Arroyo Grande are not permitted. "Commercial Cannabis Activity", as defined by Arroyo Grande Municipal Code Section
16.62.040, means any cultivation, possession, manufacture, distribution, processing, storing, laboratory testing,
packaging, labeling, transportation, delivery or sale of cannabis or cannabis products (emphasis added). The City allows
for limited mobile delivery services, but not for the cannabis or cannabis products to be stored within the City. I have
attached a copy of the City's Ordinance No. 687 for your information.
We would like to discuss this further with you to ensure our understanding of the State requirements are correct. I am
unable to find a contact number for you, but please contact me at your earliest convenience at (805) 473-5422.
Thank you.
'Teresa McClish, AICP
Director of Community Development
City of Arroyo Grande
300 E: Branch Street
,-\rroyo Grande, CA 93421
(805) 473-5420
fa.x (805) 473-0386
tmcclish@arroyogrande.org
From: Daniel, Veronica@DCA [mailto:Veronica.Daniel@dca.ca.gov]
Sent: Saturday, December 23, 2017 1:56 PM
To: Teresa Mcclish
Subject: Elite care Enterprises, Medicinal -Retailer Non-Storefront Application
Importance: High
1
Item 12.a. - Page 29
Theresa Mcclish
Community Development Director
City of Arroyo Grande
RE: Elite Care Enterprises, Medicinal -Retailer Non-Storefront Application
sec Record ID Number: M9-17-0000018-APP
Dear Ms. McClish:
The Bureau of Cannabis Control (Bureau) has received an application from Elite Care Enterprises for a state temporary
cannabis Medicinal -Retailer Non-Storefront license. The proposed license premises is located at 1248 E. Grand Avenue,
Suite C, Arroyo Grande, CA 93420, within your jurisdiction.
Please confirm whether the applicant is authorized to conduct the commercial cannabis activity for which the license is
requested. If the Bureau does not receive notification that the applicant is not authorized within 10 calendar days of the
date on this correspondence, the Bureau may issue the license.
Please send your response to this notification to veronica.danie!@dca.ca.gov. If you have any questions, please do not
hesitate to contact me at this email address. Thank you.
-Veronica Daniel
2
ATTACHMENT 11
Item 12.a. - Page 30
t.LI I t, l,;AKI: t:N I tKt'Kl!,t:!,, INc..;
Cynthia' Gonzalez 415-579-6640
cynthia@efitecaresf.com
.,
I I
l ,,
N
$
.. • ·~·
,. i ' I n. 1 EXT
RESTROOM#6
8'-3" x 3'-811
. 61-3 11 X 51-5 11
CONFERENCE ROOM #4
81-9 11 X 151-0 11
ENTRY
IT/ SAFE &
INVENTORY #1
8'-7 11 X 12'-011
OPEN SPACE #2
11 1-2" X 171-0 11
SECURITY/ CAMERA
ROOM -ADMIN #3
9'-5" X 15'-0"
PARKING LOT
• I
ADJACENT SUITES
A&B
1248 E. Grand Avenue -Suite C, Arroyo Grande, CA 93420
APN# 077-082-040
Item 12.a. - Page 31
.:: ..
CAUFOIRN«A BUREAU OF CANNABIS CONTROL SECURITY REQUIREMENTS
1. Digital video survemance system with a minimum camera resolution of 1280 x 720 pixel.
2. The surveillance-system storage device or the cameras shall be transmission controA protocol
_(TCP) capable of being accessed through the internet.
3. The video surveillance system shall at all times be able to effectively and dearly record images
of the area under surveillance.
4. Each camera shall be permanently mounted and in a fixed location.
5. Each camera shall be placed in a location that allows the camera to clearly record activity
occurring within 20-feet of all points of entry and exit on the licensed premises, and allows for
the dear and certain identification of any person and activities in all areas required to be filmed
under subsection.
6. Areas that shaU be recorded on the video surveillance system include, but are not limited to, the
following: (a) Areas where cannabis goods are weighed, packed, stored, loaded, and unloaded
for transportation, prepared, or moved within the premises; (b) limited-access areas; (c)
7. Security rooms; Areas storing a surveillance-system storage device with at least one camera
recording the access points to the secured surveillance recording area.
8. Entrances and exits to the premises, which shall be recorded from both indoor and outdoor
vantage points.
9. Retailers (non-store front retailer's n/a) shall also record point-of-sale areas and areas where
cannabis goods are displayed for sale on the video surveillance system. At each point of sale
location, camera placement must allow for the recording of the facial features of any person
purchasing or selling cannabis goods, or any person in the retail area, with sufficient clarity to
determine identity.
10. Cameras shall record continuously 24 hours per day and at a minimum of 15 frames per second
(FPS).
11. The physical media or storage device on which surveillance recordings are stored shall be
secured in a manner to protect the recording from tampering or theft.
12. Surveillance recordings shall be kept for a minimum of 90 days.
13. Surveillance recordings are subject to inspection by the Bureau, and shall be kept in a manner
that allows the Bureau to view and obtain copies of the recordings at the licensed premises
immediately upon request.
14. The licensee shall also send or otherwise provide copies of the recordings to the Bureau upon
request within the time specified by the Bureau.
15. Recorded images shall clearly and accurately display the time and date. Time is to be measured
in accordance with the United States National Institute Standards and Technology standards.
(Bureau of Cannabis Control Emergency Regulation Text Page 32 of 115)
16. The video surveillance system shall be equipped with a failure notification system that provides
notification to the licensee of any interruption or failure of the video surveillance system or
video surveillance-system storage device.
Item 12.a. - Page 32
ATTACHMENT 12
·annabis goods shall be applied toward the daily purchase limit for a medicinal cannabis
customer suant to section 5409 of this division .. · ,
( 6) The event
system. . .
(<?) In additio.n ~ th~-pro · ... ion or'free c~abis goods in siibsectfon\h) oithis· s~ti~ri,'·~ iicensee
may donate cannabis goods the use of equipment in compliance with any compassionate use,
equality, or other similar progrWllll~:.uinistered by a local jurisdiction.
Authority: Section 26013, Business rofessions Code. Reference: Sections 26013, 26153
and 26160, Business and Professions Co
§ 5412. Packaging and Labeling
(a) A retailer shall not accept, possess;or sell canna oods that are not packaged as they will
be sold at final sale, in compliance with this division.
(b) A retailer shall not package or label· ~annabis goods ..
Authority: Section 26013, Business and Professions Code. Refer
and Professions Code
§ 5413. Exit Packaging,
Cannabis goods purchaselby ·a customer sh~f not leave tlie fetailer; s j:,~~mises.
are placed in an opaque exit package. ·
Authority: Section 26013, Business and Professions Code. Reference: Sectio~~-260'iO.i
26120. Business and Professions Code.
§ 5414. Type 9-Non:-Stoi-efront Retailer·· ·: ... ·.
. : :, . . . ·. '
(a) A Type 9-Non-Storefront Retailer licensee shall be authorized to conduct retail cannabis sales
exclusively by deliv.ery as defined in Bu.siness and Professions Code section 26001(p) ..
" ' . . . ..
(b) A oomplete applicatio~· for a Type '9-Non-Storefrorit Retailer license shall include all the
information required in an application for a Type I 0-Retailer license. ' .. ·;: .',,•;. ,
( c) A Type 9-Non-Storefront Retailer licensee shall comply with all the requirements applicable
to T)"Pe 10-Retailer licensees, except for those provisions relate~ to public access to the
premises.
(d) The licensed premises of a Type 9-Non-Storefront Retailer licensee shall be closed to the
public.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26012 and
26070~ Business and Professions Code . . . .
' •,. '.: : .. ·.
. ·:. ·. ·.· .. · ,:: . ·. · .. · .. ·, .. ' .. ' .. · ..
. ,': ·-. -: ·:. : .. :·.
Bureau of Cannabis Control Emergency Regulations Readopt Text-Readopt June 201~ · Page 58 of 124
Item 12.a. - Page 33
§ 5415. Delivery
(a) All deliveries of cannabis goods shall be performed by a delivery employee of a retailer.
(b) Each delivery employee of a retailer shall be at least 21 years of age.
(c) All deliveries of cannabis goods shall be made in person. A delivery of cannabis goods shall
not be made through the use of an unmanned vehicle.
( d) The process of delivery begins when the delivery employee leaves the retailer's licensed
premises with the cannabis goods for delivery. The process of delivering ends when the delivery
employee returns to the retailer's licensed premises after delivering the cannabis goods to the
customer(s). During the process of delivery, the retailer's delivery employee may not engage in
any activities except for cannabis goods delivery and necessary rest, fuel, or vehicle repair stops.
( e) A delivery employee of a retailer shall, during deliveries, carry a copy of the retailer's current
license, the employee's government-issued identification, and an identification badge provided
by the employer pursuant to section 5043 of this division.
(f) A retailer shall maintain an accurate list of the retailer's delivery employees.
(g) Prior to providing cannabis goods to a delivery customer, a delivery employee shall confirm
the age and identity of the customer.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code
§ 5416. Delivery to a Physical Address
(a) A retailer may only deliver cannabis goods to a physical address in California.
(b) A retailer delivery employee shall not leave the State of California while possessing cam1abis
goods.
(c) A retailer shall not deliver cannabis goods to an address located on publicly owned land or
any address on land or in a building leased by a public agency. This prohibition applies to land
held in trust by the United States for a tribe or an individual tribal member unless the delivery is
authorized by and consistent with applicable tribal law.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code.
§ 5417. Metlteds ef Delivery Vehicle Requirements
(a) A retailer's delivery employee, carrying cannabis goods for delivery, shall only travel in an
enclosed motor vehicle. Any vehicle used in the delivery of cannabis goods shall be operated by
a delivery employee of the licensee. Only the licensee or an employee of the retailer licensee for
whom delivery is being performed shall be in the delivery vehicle.
(b) While carrying cannabis goods for delivery, a retailer's delivery employee shall ensure the
cannabis goods are not visible to the public. Cannabis goods shall be locked in a box, container,
Bureau of Cannabis Control Emergency Regulations Readopt Text -Readopt June 2018 Page 59 of 124
Item 12.a. - Page 34
or cage that is secured on the inside of the vehicle. For purposes of this section, the inside of the
vehicle includes the trunk.
( c) A retailer's delivery employee shall not leave cannabis goods in an unattended motor vehicle
unless the motor vehicle is locked and equipped with an active vehicle alarm system.
( d) A vehicle used for the delivery of cannabis goods shall be outfitted with a dedicated Global
Positioning System (GPS) device for identifying the geographic location of the delivery vehicle.
A dedicated GPS device must be owned by the licensee and used for delivery only. The device
shall be either permanently or temporarily affixed to the delivery vehicle and shall remain active
and inside of the delivery vehicle at all times during delivery. At all times, the retailer shall be
able to identify the geographic location of all delivery vehicles that are making deliveries for the
retailer and shall provide that information to the Bureau upon request.
( e) Upon request, a retailer shall provide the Bureau with information regarding any motor
vehicle used for the delivery of cannabis goods, including the vehicle's make, model, color,
Vehicle Identification Number, license plate number and Department of Motor Vehicles
registration information.
(f) Any motor vehicle used by a retailer to deliver cannabis goods is subject to inspection by the
Bureau. Vehicles used to deliver cannabis goods may be stopped and inspected by the Bureau at
any licensed premises or during delivery.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code.
§ 5418. Cannabis Goods Carried During Delivery
'Nhile making deliveries, a retffiler's delivery effifJlsyee shall nst earry eannabis g00as values in
eiwess sf$3,000 at any time. This value shall be aeterminea using the eurrent retail priee sf all
eannabis g06as earriea by the ernplsyee.
(a) A retailer's delivery employee shall not carry cannabis goods in the delivery vehicle in excess
of $10,000 at any time. The value of cannabis goods shall be determined using the current retail
price of all cannabis goods carried by, or within the delivery vehicle of, the retailer's delivery
employee.
(b) A delivery employee may only carry cannabis goods in the delivery vehicle and may only
perform deliveries for one licensed retailer at a time. A delivery employee must depart and return
to the same licensed premises before taking possession of any cannabis goods from another
licensee to perform deliveries.
(c) A retailer's delivery employee shall not leave the licensed premises with cannabis goods
without at least one delivery order that has already been received and processed by the retailer.
(d) Before leaving the licensed premises, the retailer's delivery driver must have a delivery
inventory ledger of all cannabis goods provided to the retailer's delivery driver. For each
cannabis good, the delivery inventory ledger shall include the type of good, the brand, the retail
value. the track and trace identifier. and the weight, volume or other accurate measure of the
Bureau of Cannabis Control Emergency Regulations Readopt Text -Readopt June 2018 Page 60 of 124
Item 12.a. - Page 35
cannabis good. After each customer delivery, the delivery inventory ledger must be updated to
reflect the current inventory in possession of the retailer's delivery driver.
(e) The retailer's delivery driver shall maintain a log that includes all stops from the time the
retailer's delivery driver leaves the licensed premises to the time that the retailer's delivery driver
returns to the licensed premises, and the reason for each stop. The log shall be turned in to the
retailer when the retailer's delivery driver returns to the licensed premises. The retailer must
maintain the log as a commercial cannabis activity record as required by this division.
(f) Prior to arrival at any delivery location, the retailer must have received a delivery reguest
from the customer and provided the delivery request receipt to the retailer's delivery driver
electronically or in hard copy. The delivery reguest receipt provided to the retailer's delivery
driver shall contain all of the information required in section 5420 of this division, except for the
date and time the delivery was made, and the signature of the customer.
(g) Immediately upon request by the Bureau or any law enforcement officer, the retailer's
delivery driver shall provide:
(I) All delivery inventory ledgers from the time the retailer's delivery driver left the licensed
premises up to the time of the reguest;
(2) All delivery reguest receipts for cannabis goods carried by the driver, in the delivery vehicle,
or any deliveries that have already been made to customers; and
(3) The log of all stops from the time the retailer's delivery driver left the licensed premises up to
the time of the request.
(h) If a retailer's delivery driver does not have any delivery requests to be performed for a 30-
minute period, the retailer's delivery driver shall not make any additional deliveries and shall
return to the licensed premises. Required meal breaks shall not count toward the 30-minute
period.
(i) Upon returning to the licensed premises, all undelivered cannabis goods shall be returned to
inventory and all necessary inventory and track-and-trace records shall be updated as appropriate
that same day.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code.
§ 5419. Cannabis Consumption During Delivery
A retailer's delivery employees shall not consume cannabis goods while delivering cannabis
goods to customers.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code.
Bureau of Cannabis Control Emergency Regulations Readopt Text -Readopt June 2018 Page 61 of 124
Item 12.a. - Page 36
§ 5420. Delivery Request Receipt
A retailer shall prepare a hard copy or electronic delivery request receipt for each delivery of
cannabis goods.
(a) The delivery request receipt shall contain the following:
(1) The name and address of the retailer;
(2) The first name and employee number of the retailer's delivery employee who delivered the
order;
(3) The first name and employee number of the retailer's employee who prepared the order for
delivery;
(4) The first name of the customer and a retailer-assigned customer number for the person who
requested the delivery;
( 5) The date and time the delivery request was made;
(6) The delivery address;
(7) A detailed description of all cannabis goods requested for delivery. The description shall
include the weight, volume, or any other accurate measure of the amount of all cannabis goods
requested;
(8) The total amount paid for the delivery, including any taxes or fees, the cost of the cannabis
goods, and any other charges related to the delivery; and
(9) Upon delivery, the date and time the delivery was made, and the handwritten or electronic
signature of the customer who received the delivery.
(b) At the time of the delivery, the delivery employee of the retailer shall provide the customer
who placed the order with a hard or electronic copy of the delivery request receipt. The delivery
employee shall retain a signedhard or electronic copy of the signed delivery request receipt for
the retailer's records.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code.
§ 5421. Delivery Route
While making deliveries of cannabis goods, a retailer's delivery employee shall only travel from
the retailer's licensed premises to the delivery address; from one delivery address to another
delivery address; or from a delivery address back to the retailer's licensed premises. A delivery
employee of a retailer shall not deviate from the delivery path described in this section, except
for necessary rest, fuel, or vehicle repair stops, or because road conditions make continued use of
the route unsafe, impossible, or impracticable.
Authority: Section 26013, Business and Professions Code. Reference: Sections 26070 and
26090, Business and Professions Code.
Bureau of Cannabis Control Emergency Regulations Readopt Text -Readopt June 2018 Page 62 of 124
Item 12.a. - Page 37
§ 5422. Receiving Shipments of Inventory
(a) A retailer shall receive a shipment of cannabis goods only from a distributor.
(b) A retailer shall accept shipments of cannabis goods only between the hours of 6:00 a.m.
Pacific Time and 10:00 p.m. Pacific Time.
( c) During business hours. shipments of cannabis goods shall not enter the premises through an
entrance or exit that is available for use by the public.
Authority: Section 26013, Business and Professions Code. Reference: Section 26070, Business
and Professions Code.
§ 5423. Inventory Documentation
A retailer shall maintain an accurate record of its inventory. A retailer shall provide the Bureau
with the record of inventory upon request. A retailer shall keep a record of the following
information for all cannabis goods the retailer has in its inventory:
(a) A description of each item such that the cannabis goods can easily be identified;
(b) An accurate measurement of the quantity of the item;
( c) The date and time the cannabis goods were received by the retailer;
(d) The sell-by or expiration date provided on the package of cannabis goods, if any;
( e) The name and license number of the licensee that delivered the cannabis goods to the retailer;
(f) The name and license number of the distributor that provided the cannabis goods to the
retailer; and
(g) The price the retailer paid for the cannabis goods, including taxes, delivery costs, and any
other costs.
Authority: Section 26013, Business and Professions Code. Reference: Section 26160, Business
and Professions Code.
§ 5424. Inventory Reconciliation
(a) A retailer shall perform a reconciliation of its inventory at least once every 14 days.
(b) A retailer shall verify that the retailer's physical inventory matches the retailer's records
pertaining to inventory.
(c) The result of inventory reconciliation shall be retained in the retailer's records and shall be
made available to the Bureau upon request.
( d) If a retailer identifies any evidence of theft, diversion, or loss, the retailer shall notify the
Bureau and law enforcement pursuant to section 5036 ofthis division.
Bureau of Cannabis Control Emergency Regulations Readopt Text -Readopt June 2018 Page 63 of124
THIS PAGE INTENTIONALLY LEFT BLANK
Item 12.a. - Page 38