2017-01-05 Special Work SessionPage
2-11
Kodiak Island Borough
Assembly Special Work Session
Thursday, January 5, 2017, 6:30 p.m.
Assemblv Chambers
Work Sessions are informal meetings of the Assembly where Assembly members review the upcoming regular
meeting agenda packet and seek or receive information from staff. Although additional items not listed on the work
session agenda are discussed when introduced by the Mayor, Assembly, or staff, no formal action is taken at work
sessions and items that require formal Assembly action are placed on regular Assembly meeting agenda. Citizen's
comments at work sessions are NOT considered part of the official record. Citizen's comments intended for the "official
record" should be made at a regular Assembly meeting.
1. CITIZENS' COMMENTS (Limited to Three Minutes per Speaker)
2. AGENDA ITEMS
a. Marijuana Task Force Recommendations To The Assembly
MTF Recommendations - Pdf
3. MANAGER'S COMMENTS
4. CLERK'S COMMENTS
5. MAYOR'S COMMENTS
6. ASSEMBLY MEMBERS COMMENTS
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@KodiakBorough
www.kodiakak.us Page 1 of 11
AGENDA ITEM #2.a.
KODIAK ISLAND BOROUGH
AGENDA STATEMENT
JANUARY 5. 2017
ASSEMBLY SPECIAL WORK SESSION
TITLE: Marijuana Task Force Recommendations To The Assembly
ORIGINATOR: Laurie Pardoe
FISCAL IMPACT: FUNDS AVAILABLE:
Account Number: Amount Budgeted:
SUMMARY STATEMENT:
Ordinance No. FY2016-17 was adopted by the Borough on March 3, 2016. This ordinance
allowed the Borough to exercise authority granted to it by AS 17.38.110(a) so as to prohibit to
the broadest extent possible the operation of marijuana cultivation facilities, marijuana product
manufacturing facilities, marijuana testing facilities, or retail marijuana stores within its
borders. Ordinance No. FY2016-17 is in effect through February 28, 2017.
Resolution No. FY2016-31 was also adopted on March 17, 2016 which established a
Marijuana Task Force (MTF). MTF's responsibility is to offer advice and recommendations to
the Assembly and administration on both the upsides and downsides of any issue related to
or impacted by the legalization of marijuana.
MTF has met multiple times and on November 28, 2016, approved its recommendations to
the Assembly regarding the implementation of Marijuana -related business in the Kodiak
Island Borough.
The Assembly received the recommendations at the December 8 work session and they
focused their discussion on process. January 5 special work session was called in lieu of a
regular meeting to specifically discuss the recommendations.
PURPOSE, ACTION, OR RECOMMENDED MOTION:
Assembly to discuss the recommendations in detail for a drafting of an actual ordinance for
adoption at a later time.
Kodiak Island Borough
Page 2 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2. a.
Page 3 of 11
Marijuana Task Force Recommendations To The Assembly
To: Kodiak Island Borough Assembly
From: Kodiak Island Borough Marijuana Task Force
Date: November 28, 2016
Regarding: Recommendations for implementation
On March 17, 2016 the Kodiak Island Borough Assembly voted to opt out of
the commercial sale of marijuana in the Borough for one year. Congruent with
that the Assembly created a Marijuana Task Force made up of 11 residents of
the Borough. The group is made up of individuals who use Marijuana
regularly to people who have never used and everyone in between. The
committee fairly accurately reflects the wide ranges of opinions found in the
community. The Marijuana Task Force was tasked with offering advice and
recommendations to the Assembly regarding the implementation of Marijuana
related business in the Kodiak Island Borough. The State of Alaska created a
broad framework and encouraged local municipalities to create laws that best
reflect the local jurisdictions. It was with all this in mind that the Task Force
began its work. The Task Force has met ten times. We limited all of our
meetings to right around two hours.
After much discussion and some compromise the Task Force brings forth the
following recommendations. Please note that some of the recommendations
were quite controversial and this document will attempt to reflect that "conflict"
where it e2dsted. Also please note that the recommendations reflected in this
document are organized in a manner to make it useful for the Assembly but
not necessarily in the order that we addressed them at the meetings.
1. Licenses/Renewal Fees
a. Application Fee: Kodiak Island Borough Application Fee would be
20% of the State fee reflected in AAC 306.100(a(
a. State Fee is currently $1,000
b. Borough Fee $200
b. Annual License Fee: Kodiak Island Borough Annual License Fee
would be 20% of the State fee schedule reflected in AAC 306.100 (d).
a. Retail Marijuana Store License
State currently $5,000, Borough $1,000
b. Limited Marijuana Cultivation Facility License
State currently $1,000, Borough $200
c. Marijuana Cultivation Facility License
State currently $5,000, Borough $1,000
Page 3 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 4 of 11
Marijuana Task Force Recommendations To The Assembly
d. Marijuana Concentrate Manufacturing Facility License
State currently $1,000, Borough $200
e. Marijuana Product Manufacturing Facility License
State currently $5,000, Borough $1,000
L Marijuana Testing Facility license
State currently $1,000, Borough $200
2. Taxes
a. Sales Tax (no sales tax in the Borough):
Fairbanks Borough created a sales tax specific to marijuana and
alcohol but the Kodiak Task Force believed that having any sales tax
in the Borough would create extra staff work and cost more than the
potential benefit.
b. Excise Style Tax:
The State of Alaska will be taxing $50 per ounce at the cultivation
level. The committee was split on this issue. With a slight majority
the committee recommended that the Borough look at taxing at the
cultivation level as well. Numerous committee members felt that the
issue of taxes was a broad policy issue that the Assembly needed to
decide.
3. Notice Requirements:
a. Recommend that they mirror Alcohol notice requirements
4. Opting Out:
There was much discussion in regards to what Marijuana Manufacturing
should look like in Kodiak. This particular issue was discussed in length at
three meetings. Ultimately the recommendation was to opt out of the
manufacturing of edibles (including butter) but allow the manufacturing of
oils, tinctures, and hashes. The concern with edibles was the challenge of
keeping them out of the hands of children. The group split 7 to 2 in favor
of opting out of edibles and split 7 to 2 to allow the manufacturing of oils,
tinctures, and hashes.
The above are general recommendations from the Task Force. The following
recommendations are specific to zoning and the implementation of commercial
marijuana Cultivation, Manufacturing, Retail Sales, and Testing in the Kodiak
Island Borough.
Page 4 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 5 of 11
Marijuana Task Force Recommendations To The Assembly
1. Cultivation Zoning:
a. Industrial — permitted
b. Business —conditional use
c. Residential (this was a very controversial issue and was discussed at
four meetings)
I. Rl, R2, R3 —prohibited (unanimous)
ii. RR, RRl, RR2, Conservation — conditional use (voted 5 to 2)
1. Limited Cultivation License only (as defined in State Law)
2. 500 Square Foot or less (Borough Code requires a home based
business not exceed 20% of the Residence)
3. Must only be on a lot that has a single family dwelling on it.
4. Lot must be 20,000 square feet or greater (there was a lot of
discussion on whether this number should be 40,000 or 20,000)
Note: The issue of cultivation was made more difficult because allowing
marijuana cultivation as a conditional use in some Residential and
the Business Districts could create a potential conflict in the current
HIB Title 17 Code. The potential conflict is allowing a conditional use
that is identified as prohibited in Title 17.
2. Manufacturing Zoning:
a. Industrial — permitted
b. Business — conditional use
c. Residential — prohibited
3. Retail Sales Zoning:
a. Industrial — permitted
b. Business — permitted
c. Residential — prohibited
4. Testing Zoning:
a. Industrial — permitted
b. Business—permitted
c. Residential — permitted (split 5 to 3)
The final issue we addressed was the idea of buffer zones. Fairbanks Borough
used buffer zones as a way to exclude certain areas of their community
(residential, schools, etc). The Task Force decided that the term Exclusion
Zones would be clearer to the public as to the intention of these zones. The
committee makes the following recommendations.
Page 5 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 6 of 11
Marijuana Task Force Recommendations To The Assembly
1. School Exclusion Zone: The school exclusion zone would be consistent
with the Federal Drug Free School Zones that the Kodiak Island Borough
School District is required to abide by. The School Exclusion zone would
extend 500 feet in a straight line from the edge of school property. No
commercial marijuana activity would be allowed in that zone. This is
consistent with what KIBSD must abide by.
2. All other Exclusion Zones would be consistent with AAC 306.010. This
portion would not be required to be placed in Borough Code because it is
already enumerated in State Statute. To summarize this section of Statute
it states that no license will be issued if the " licensed premise will be
located within 500 feet of a school ground, a recreation or youth center, a
building in which religious services are regularly conducted, or a
correctional facility. The distance specified in this subsection must be
measured by the shortest pedestrian route from the pubic entrance of the
building in which the licensed premises would be located to the outer
boundaries of the school ground, the outer boundaries of the recreation or
youth center, the main public entrance of the building in which religious
services are regularly conducted or the main public entrance of the
correctional facility."
I would like to thank each of the Task Force Members for their time and energy
and commitment to this process. In some ways this process has stretched
each of us away from where we are most comfortable on this topic. This
stretching has lead to much discussion and debate. Even though the debate
was a little heated at times I really appreciate the civility of which each Task
Force Member approached this task. This final recommendation is brought
forward with the unanimous support of the HIB Marijuana Task Force.
Respectfully,
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Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 7 of 11
Marijuana Task Force Recommendations To The Assembly
IIntroduced by: Assembly member Rohrer
Requested by: Assembly member Rohrer
3 embed by: Assembly member
4 Rohrer/Borough Clerk
5 Introduced: 07/182016
Public Hearing: 03/032016
6 Amended: 03/032016
7 Adopted: 031032016
8
9 KODIAK ISLAND BOROUGH
10 ORDINANCE NO. FY2016-17
11
12 AN ORDINANCE OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
13 AMENDING THE KODIAK ISLAND BOROUGH CODE TITLE 5 BUSINESS
14 LICENSES AND REGULATIONS BY CREATING A NEW CHAPTER 5.02
15 MARIJUANA BUSINESSES
16
17 WHEREAS, the passage of Ballot Measure #2 in the 2014 State of Alaska Election has
18 provided for the legalization of various marijuana -related activities on a specific timeline; and
19
20 WHEREAS, AS 17.38.110, 'local control' in subsection (a) provides: 'A local govemment may
21 prohibit the operation of marijuana cultivation facilities, marijuana product manufacturing
22 facilities, marijuana testing facilities, or retail marijuana stores through the enactment of an
23 ordinance or voter initiative'; and
24
25 WHEREAS, the Kodiak Island Borough wishes to exercise the authority granted to it by AS
26 17.38.110(a) so as to prohibit to the broadest extent possible the operation of marijuana
27 cultivation facilities, marijuana product manufacturing facilities, marijuana testing facilities, or
28 retail marijuana stores within its borders; and
29
30 NOW, THEREFORE, BE IT ORDAINED BY THE ASSEMBLY OF THE KODIAK ISLAND
31 BOROUGH THAT:
32
33 Section 1: This ordinance is of a general and permanent nature and shall become a part of
34 the Kodiak Island Borough Code of Ordinances; and
35
36 Section 2: This ordinance shall be in effect through February 28, 2017.
37
38 Section 3: A Marijuana Task Force will be created in the form of a resolution of the
39 Assembly and shall exist concurrentwith this ordinance.
40
41 Section 24: KIBC Title 5 Business Licenses and Regulations is hereby amended by creating
42 a new chapter 5.02 Marijuana Businesses to read as follows:
43
44 Chapter 5.02
45
Kodak Island Borough, Alaska Ordinance No. FY2016-17
Page 1 of 2
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Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 8 of 11
Marijuana Task Force Recommendations To The Assembly
46 MARIJUANA BUSINESSES
47
48 Sections:
49 5.02.010 Marijuana Businesses Prohibited.
50 5.02.020 Enforcement.
51
52 5.02.010 Marijuana Businesses Prohibited.
53 The operation of marijuana cultivation facilities, marijuana product manufacturing facilities,
54 marijuana testing facilities, and retail marijuana stores anywhere within the Kodiak Island
55 Borough is hereby prohibited.
56
57 5.02.020 Enforcement
58
59 A. A violation of a provision of this chapter is an offense punishable by a penally not to exceed
60 a rine of $1,000, in addition to the surcharge required under AS 12.55.039. Each day that a
61 violation continues constitutes a separate violation and is subject to a separate One.
62
63 B. Notwithstanding the availability of any other remedy provided by the provisions of this code,
64 the borough or any person aggrieved by a violation of this chapter may institute a civil action
65 for injunctive relief to enforce these provisions In any court of competent jurisdiction.
66
67 Section 3. Effective date. This ordinance is effective upon passage.
68
69 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
70 THIS THIRD DAY OF MARCH, 2016
71
72
73 KODIAK ISLAND
71GI,
74
75
76
77OFrrol Friend, o gh Mayor
78
79 ATTEST:
80
81
82 ` f14
83 ova M. Javier, MMC, Boro,Ah Clerk
Kodiak Island Borough, Alaska Ordinance No. FY2016-17
Page 2 of 2
Page 8 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 9 of 11
Marijuana Task Force Recommendations To The Assembly
1 Introduced by: Assembly member Rohrer
2 Requesled by: Assembly member Rohrer
3 Drafted by: KIB Clerk
4 Introduced on: 03/17/2016
Adopted on: 03/17/2016
5
6
7 KODIAK ISLAND BOROUGH
8 RESOLUTION NO. FY 2016.31
9
10 A RESOLUTION OF THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
11 ESTABLISHING A MARIJUANA TASK FORCE
12
13
14 WHEREAS, on November 4, 2014, Ballot Measure 2 was approved statewide by the voters;
15 and
16
17 WHEREAS, Ballot Measure 2 also allows for the Borough to prohibit and/or Implement
i8 regulations governing the number, time, place and manner of marijuana cultivation facilities,
19 manufacturing facilities, retail stores and testing facilities; and
20
21 WHEREAS, there are many issues and factors to be considered by the Borough in deciding
22 all the local issues associated with the legalization of marijuana; and
23
24 WHEREAS, the Assembly is creating a Marijuana Task Force to advise the Assembly and
25 Administration on any and all aspects, Impacts, and concerns related to the legalization of
26 marijuana; and
27
28 NOW, THEREFORE BE IT RESOLVED BY THE ASSEMBLY OF THE KODIAK ISLAND
29 BOROUGH that there is established a Kodiak Island Borough Marijuana Task Force.
30
31 Section 1: Created -membership. The formation of the Task Force will consist of the
32 following eleven members. The quorum for this committee is attendance of six members and it
33 takes a majority vote of those present for a motion to carry.
34 • 2 Borough Assembly Members
35 • 2 City Council Members
36 • 1 Medical Professional
37 • 1 Law Enforcement
38 • 1 Retail Business Owner
39 • 1 Marijuana Advocate
40 • 3 members at large
41
42 Section 2: Organization. The chairperson and the vice chairperson are assigned by the
43 Borough Mayor. The Chair person shall report to the entire Assembly on behalf of the Task
44 Force.
45
46 Section 3: Appointments. The Mayor shall appoint the members of the task force subject
47 to confirmation of the Assembly. The City Council members are appointed by the City Council.
48
49
50
Kodiak Island Borough Resolution No. FY2016-31
Page 1 of 2
Page 9 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 10 of 11
Marijuana Task Force Recommendations To The Assembly
51 Section 4: Powers and duties. The scope of review of the task force includes, but not
52 limited to:
53 • Land use
54 • Law enforcement
55 Revenue
56 • Regulatory compliance
57 • Cultivation
58 • Manufacturing
59 • Retail Stores
60 Testing
61 The responsibility of the task force Is to offer advice and recommendations to the Assembly and
62 administration on both the upsides and downsides of any issue related to or impacted by the
63 legalization of marijuana.
64
65 Section 5: Administrative assistance. The clerk's office staff shall provide the committee
66 with supplies, meeting space, and secretarial assistance.
67
68 Section 6: Reporting. The Task Force chairperson shall report to the Assembly during a
69 public meeting.
70
71 ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH
72 THIS SEVENTEENTH DAY OF MARCH 2016
73
74
75
KODIAK ISLAND BOROU H
ATTEST: rrd Mayor
AV -r `
76 Nova M. Javier, WC, Borough Clerk
Kodiak Island Borough Resolution No. FY2016-31
Page 2 of 2
Page 10 of 11
Marijuana Task Force Recommendations To The Assembly
AGENDA ITEM #2.a.
Page 11 of 11
Marijuana Task Force Recommendations To The Assembly
KODIAK ISLAND BOROUGH
BOROUGH MARIJUANA TASK FORCE
9-
A
Seat NAME HOME WORK CELL EMAIL
PHONE PHONE PHONE
1. Dan Rohrer (Co -Chair) 486-0977 dan.mhrerilkibassembly.om
Assembly member
2. Dennis Symmons 654-1045 dennis.svmmons(Rikibassembly.om
Assembly member
3. Laura Arboleda 539-2027 larboled.Odlv.kodiakak.us
City Council member
4. Randall Bishop 486-3364 mishoo0dlv.kodiak_ak.us
City Council member
5. Medical Professional 654-5546 486-2203 485-4593 lon'slmnuOymail.cum
Jonathan Strong
PO Bax 1924
Kodiak, AK 99615
6. Law Enforcement 4868000 msodordbclly.kodiak ak.us
Detach. Michael Senior
2160 Mill Bay Road
Kodiak, Alaska 99615
7. Retail Business Owner 942-5618 512-2726 942-5618 islevens(olak.mA
Janiese Stevens
PO Box 8593
Kodiak, AK 99615
8. Marijuana Advocate 539-1014 iosiekodiak0amail.com
Joanne Shaker
PO Box 2898
Kodiak, AK 9961
9. Member at Large 4863329 539-2309 ibonney(nosLus
Tuck Bonney (Chair)
PO Box 2265
Kodiak, AK 99615
10. Member at Large 486-4750 539-2078 spaulsonitiradoet
Shelley Paulson
962 Mallard Way
Kodiak, AK 99615
11. Member at Large 539-6932 masterhunter1979(@amail.com
Nicholas Tmxell, Jr.
1615 Larch Street
Kodiak, AK 99615
This board is governed by Kodiak Island Borough Code 5.02 and
Resolution No. FY2016-31.
-BOROUGH CLERK'S OFFICE
Nava M. Javier, MMC, Borough Clerk "6-9310 clerks�kodiakak.us
710 Mi9 Bay Road. Room 101, K o d lak, AK 99615
Revision Dale: 5/11/2015
Revised by: LP
Page 11 of 11
Marijuana Task Force Recommendations To The Assembly
Marijuana Task Force Recommendations Discussion Worksheets
1. Licenses/ Renewal Fees
a. Application Fee: Kodiak Island Borough Application Fee would be
20% of the State fee reflected in AAC 306.100(a)
a. State Fee is currently $1,000
b. Borough Fee $200
b. Annual License Fee: Kodiak Island Borough Annual License Fee
would be 20% of the State fee schedule reflected in AAC 306.100 (d).
a. Retail Marijuana Store License
State currently $5,000, Borough $1,000
b. Limited Marijuana Cultivation Facility License
State currently $1,000, Borough $200
c. Marijuana Cultivation Facility License
State currently $5,000, Borough $1,000
d. Marijuana Concentrate Manufacturing Facility License
State currently $1,000, Borough $200
e. Marijuana Product Manufacturing Facility License
State currently $5,000, Borough $1,000
f. Marijuana Testing Facility License
State currently $1,000, Borough $200
2. Taxes
a. Sales Tax (no sales tax in the Borough):
b. Excise Style Tax:
The State of Alaska will be taxing $50 per ounce at the cultivation
level. The committee was split on this issue. With a slight majority
the committee recommended that the Borough look at taxing at the
cultivation level as well. Numerous committee members felt that the
issue of taxes was a broad policy issue that the Assembly needed to
decide.
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Marijuana Task Force Recommendations Discussion Worksheets
School Exclusion Zone: The school exclusion zone would be consistent with
the Federal Drug Free School Zones that the Kodiak Island Borough School
District is required to abide by. The School Exclusion Zone would extend 500
feet in a straight line from the edge of school property. No commercial
marijuana activity would be allowed in that zone. This is consistent with what
KIBSD must abide by.
All other Exclusion Zones would be consistent with AAC 306.010. This
portion would not be required to be placed in Borough Code because it is
already enumerated in State Statute. To summarize this section of Statute it
states that no license will be issued if the " licensed premise will be located
within 500 feet of a school ground, a recreation or youth center, a building in
which religious services are regularly conducted, or a correctional facility. The
distance specified in this subsection must be measured by the shortest
pedestrian route from the pubic entrance of the building in which the licensed
premises would be located to the outer boundaries of the school ground, the
outer boundaries of the recreation or youth center, the main public entrance of
the building in which religious services are regularly conducted or the main
public entrance of the correctional facility."
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