Pubdate: Tue, 15 Mar 2016
Source: Appeal-Democrat (Marysville, CA)
Copyright: 2016 Appeal-Democrat
Contact: 
https://appeal-democrat-dot-com.bloxcms-ny1.com/site/forms/online_services/letter/
Website: http://www.appeal-democrat.com
Details: http://www.mapinc.org/media/1343
Author: Eric Vodden

MARYSVILLE WEIGHS HIRING COMPANY TO HELP PREPARE FOR DISPENSARIES

A company with a history of helping government agencies create 
medical marijuana policies may assist Marysville in setting up 
criteria for two cannabis dispensaries to be allowed in the city.

The City Council tonight will consider hiring HdL Companies of 
Diamond Bar to assist in developing financial data related to 
establishing marijuana dispensaries. The move would come after the 
council in January approved allowing two dispensaries in the city.

In addition, the council will be asked to suspend until an 
undetermined date the acceptance of formal bids from those seeking to 
open dispensaries within the Marysville city limits. If the city 
seeks to place a marijuana tax measure on the November ballot, it is 
anticipated no dispensary applications would be accepted before such 
an election.

In a staff report, City Manager Walter Munchheimer noted the 
licensing and monitoring of dispensaries will carry a cost that "must 
be recovered to ensure that these businesses are not subsidized by 
the general taxpayers in the city."

"Council members and the public at large have made clear that there 
must be some broader economic benefit from the presence of medical 
marijuana dispensaries in the city. Some separate, sustainable form 
of taxation must be attached to the operations of these businesses."

The council's action in January to allow two dispensaries in the city 
was one of two marijuana-related ordinances adopted on a split vote, 
the other banning cultivation except in connection with dispensaries. 
The dispensary ordinance went into effect late last month.

An agreement with HdL would extend an existing March 2015 agreement 
with the city for property tax consulting and audit services. The 
$10,000, to a maximum $25,000, cost of a dispensary report is planned 
to be absorbed within license application fees "so would not be a 
budget obligation on the city," the staff report states.

Munchheimer said in his report that the HdL project manager, who will 
be assisting the city, worked closely with the California League of 
Cities in drafting state medical marijuana legislation passed last year.

The HdL report would focus on "helping structure the financial pieces 
so as not to undervalue either the city's regulatory costs or its 
future economic benefit to the taxpayers."

A proposed timetable has the dispensary implementation plan and fee 
proposals going to the City Council on July 19. It mentions a 
potential tax imposed on dispensary customers going to the voters, 
either in November or in a mail ballot election, if that is allowed.

Along with the possible marijuana tax, the cost of an annual license 
is expected to be in the thousands of dollars. Applicants would also 
have to acquire a state license as outlined in legislation approved last year.

City applications made to the chief of police would also have to be 
accompanied by a nonrefundable fee, the amount of which has not yet 
been determined.

In addition, there is a provision in the ordinance requiring 
dispensaries to annually pay for the full cost of a police officer.
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MAP posted-by: Jay Bergstrom