FAIRFAX TOWN COUNCIL MEETING
STAFF REPORT
AGENDA ITEM #7
MEETING DATE December 4, 2024
PREPARED FOR Mayor and Town Council
PREPARED BY Janet Coleson, Town Attorney
Heather Abrams, Town Manager
SUBJECT Introduction of an Ordinance Repealing Town Code Article III of Chapter
5.56 Cannabis Deliveries, Section 5.56.300 Adult-Use Cannabis Deliveries by Certain Existing Medical Marijuana Dispensaries; and Repealing and Replacing Town Code Section 5.56.170 Application of This Article to Existing Medical Marijuana Dispensaries, with Application of This Article to Existing Medical Cannabis Retailer, Allowing the Marin Alliance for Medical Marijuana (MAMM) to Relocate to 1591-1593 Sir Frances Drake Blvd Upon Fulfillment of Certain Requirements
RECOMMENDATION
Waive first reading, read by title only and introduce an ordinance repealing Town Code Article III of Chapter 5.56 Cannabis Deliveries, Section 5.56.300 Adult-Use Cannabis Deliveries by Certain Existing Medical Marijuana Dispensaries; and repealing and replacing Town Code Section 5.56.170 Application of This Article to Existing Medical Marijuana Dispensaries, with Application of This Article to Existing Medical Cannabis Retailer, allowing the Marin Alliance for Medical Marijuana (MAMM) to relocate to 1591-1593 Sir Frances Drake Blvd. upon fulfillment of certain requirements.
BACKGROUND
Marin Alliance for Medical Marijuana MAMM, owned and operated by Lynette Shaw, was issued a Conditional Use Permit (CUP) at the School Street location in June of 1997 with a list of 84 conditions of approval. (Attachment A). The following is a brief history of the CUP for that location.
In June of 1998 the Planning Commission reviewed MAMM’s CUP to determine whether the business was being operated in compliance with the conditions of approval. Deficiencies were noted and after correcting the noted deficiencies, the Planning Commission voted to review the CUP again in 2000.
In June of 2000 the Fairfax Police Department responded to a citizen complaint concerning the cultivation of marijuana at 132 Scenic Road, Lynette Shaw’s residence. The officers observed 61 plants of varying sizes, and they were informed by Ms. Shaw that the plants were for her patients at the Marin Alliance for Medical Marijuana. Cultivation of marijuana in a residential zone for use at the business was a violation of the original CUP conditions.
The Planning Commission staff report for the September/November, 2000 CUP review noted that the applicant/owner/operator had expanded the business into the commercial space next door which had been turned into a waiting room for clients. The report underscored the applicant/owner/operator’s frequent changes to the business operations without regard for the conditions of the CUP. The Police Chief at the time pointed out that the hours had been changed and the business was now open during 2 Little League ball games at the ball field in violation of the CUP conditions. As a result, the Planning Commission temporarily suspended the CUP until the January 2001 meeting and directed the applicant/owner/operator to comply with all the CUP conditions by that date. Before the January meeting, however, the matter was brought before the Council on a directed referral on December 4, 2000. The Council overturned the Planning Commission temporary suspension of the CUP and sent the CUP back to the Planning Commission for further review and action with accompanying direction.
In January, March, April and September of 2001, the Planning Commission held meetings regarding the CUP for MAMM, at which time the Commission allowed the CUP to remain in effect until further review in January of 2002 with the following change to the conditions of approval: the responsibility of advising MAMM of youth activities that would be occurring within 500 feet of the dispensary was shifted to the organizers of the events, baseball practices and games. The condition required organizers to give MAMM 7 days prior notice of the event. During the event, MAMM had to remain closed and have "closed" signs posted on all entrances.
In April, June and August of 2002, the Commission reviewed the CUP.
At the August 15, 2002, Planning Commission meeting, the Commission extended MAMM’s CUP with minor additional conditions.
On June 17, 2010, the Planning Commission approved a modification of CUP 97-UP-2 with the most significant modifications being the following: 1) The applicant/owner/operator may operate a medical marijuana delivery service and deliver to patients unable to get to the dispensary. 2) The applicant/owner/operator shall not distribute any amount of medicinal marijuana which exceeds one ounce to, or on behalf of, any one person during any consecutive 7 day period without a physicians written recommendation. And 3) The condition that the Dispensary not be open during practices or games of the West Marin Little League was removed. A list of the 2010 conditions of approval, which are the currently applicable conditions, is attached to this staff report as Attachment B.
On July 8, 2019, the Town Manager, issued an Adult-Use Cannabis Delivery Permit for MAMM, an existing medical marijuana dispensary, to conduct retail sales of adult-use cannabis and cannabis products, exclusively by delivery from the existing premises subject to terms and conditions and pursuant to the newly passed cannabis permit code provisions.
DISCUSSION
At the November 18, 2024 Town Council meeting, the Council heard testimony that MAMM was being evicted from the current location at School Street through no fault of the owner/operator, Lynette Shaw, and directed the Town Attorney’s Office to review her request to relocate without having to participate in the competitive process required by the Town Code. After receiving the proposed new address for MAMM, the attached Code revisions were drafted that, if adopted, would result in MAMM being allowed to relocate to 1591-1593 Sir Frances Drake Blvd., with requirements designed to be as close to the current requirements as possible, while still being mindful of the zoning requirements for the new location.
Since MAMM has a CUP at the current School Street location and CUPs run with the land (are not transferable to a new location), and since medicinal cannabis storefront retailer is not a use permitted in the Highway Commercial zone, the Planning Commission will need to review the proposed use to determine compatibility and any conditions of approval for a CUP. After granting a CUP, the owner/operator also will need to obtain a cannabis business permit for the medicinal cannabis storefront.
3 After MAMM had been operating a medical cannabis dispensary at the current location for 22 years, the Town Council allowed the owner/operator to obtain an adult-use cannabis, delivery only permit from that same location. Given the unique nature of the new location, a trial period of one year after the granting of a CUP is proposed before the owner/operator may obtain an adult-use cannabis delivery only cannabis business permit. During the one-year trial period, it is expected the medicinal cannabis storefront will be operated in compliance with all CUP conditions of approval as well as all cannabis business permit requirements.
FISCAL IMPACT
Although there is no sales tax charged on medicinal cannabis, there is a State of California excise tax.
The Town does not have a local tax on cannabis. There is no anticipated fiscal impact from adoption of this ordinance.
ATTACHMENT
A. Ordinance
B. Current Conditions of Approval for MAMM’s CUP at School Street C. Original Conditions of Approval for MAMM’s CUP at School Street 1 ATTACHMENT A
ORDINANCE NO. ______
AN ORDINANCE OF THE TOWN COUNCIL OF THE TOWN OF FAIRFAX AMENDING THE FAIRFAX TOWN CODE, REPEALING ARTICLE III OF CHAPTER 5.56 CANNABIS DELIVERIES AND REPEALING AND REPLACING SECTION 5.56.170
APPLICATION OF THIS ARTICLE TO EXISTING MEDICAL MARIJUANA
DISPENSARIES WITH APPLICATION OF THIS ARTICLE TO EXISTING MEDICAL
CANNABIS RETAILER
WHEREAS, the existing medicinal cannabis storefront retailer in the Town of Fairfax is being evicted from the current location through no fault of the owner/operator; and
WHEREAS, the existing cannabis retailer’s owner/operator has requested the Town Council allow the businesses to relocate to 1591-1593 Sir Frances Drake Blvd. without having to compete for a permit pursuant to Town Code Section 5.56.070; and WHEREAS, the Town Council has expressed support for medicinal cannabis as provided in Chapter 9.16 Miscellaneous Policies Regarding Medical Use of Marijuana; and
NOW THEREFORE, the Town Council of the Town of Fairfax does ordain as follows:
Section 1. The above recitals are true and correct and are hereby incorporated into this ordinance by this reference.
Section 2. Fairfax Town Code, Article III of Chapter 5.56 Cannabis Deliveries, Section 5.56.300 Adult-Use Cannabis Deliveries by Certain Existing Medical Marijuana Dispensaries is hereby repealed.
Section 3. Fairfax Town Code Section 5.56.170 Application of this Article to Existing Medical Marijuana Dispensaries is hereby repealed and replaced with the following provision:
“Section 5.56.170 Application of this Article to Existing Medical Cannabis Retailer The Town Council finds that the cannabis medicinal use storefront retailer existing and legally operating in the Town of Fairfax as of December 4, 2024 must relocate by January 1, 2025 due to no fault of the owner/operator. The Council hereby permits this existing retailer to relocate to a storefront located at 1591-1593 Sir Frances Drake Blvd., provided however, that prior to opening for business, the owner/operator:
1) submit an application to the Planning Commission and be granted a Conditional Use Permit (CUP) in the Highway Commercial zone for a medicinal use storefront retailer, as the existing CUP at the current location runs with the land and is not transferable to a new location; and
2 ATTACHMENT A
2) obtain a permit for a medicinal use storefront retailer pursuant to Town Code Chapter 5.56 Cannabis Businesses, with the exception of the requirement of participating in a competitive process pursuant to Town Code Section 5.56.070, and in conformance with Town Code Chapter 17.110 Cannabis Uses as the owner/operator’s current permit is not transferable to a new location pursuant to Town Code Section 5.56.130. Fees for the required permit shall be prorated according to the amount of time remaining on the existing permit. 3) Should the owner/operator be granted a CUP for a medicinal use storefront, obtain a cannabis business permit for same and operate for a period of at least one year with no violation of a condition of approval under the CUP and no violation of any provision or requirement of the accompanying cannabis business permit, the owner/operator may apply for a cannabis business permit for an adult-use, delivery only retailer to be operated at the same location as the medicinal use storefront.”
Section 4. Severability. If any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect any other provisions or applications, and to this end the provisions of this Ordinance are declared to be severable.
Section 5. Effective Date. This ordinance shall be effective thirty (30) days after the date of its adoption.
Section 6. Posting. Within fifteen days after the passage of this ordinance, the Town Clerk shall cause it or a summary of it to be posted in the following three places:
Fairfax Town Hall; the Fairfax Women’s Club; and the Fairfax Post Office.
The foregoing ordinance was introduced at a special meeting of the Town Council of the Town of Fairfax held on the 4th December, 2024.
ADOPTED and ordered posted at a meeting of the Town Council of the Town of Fairfax, held on the ________day of _____________, 2025, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Mayor
ATTEST:
_________________________________
Christine Foster, Deputy Town Clerk
'j ••
I
....
.... o••,••:•·/-.
"ATTACHMENT B"
USE PERMIT 97-UP-2 MODIFIED CONDITIONS OF APPROVAL
1. The dispensary is to be operated in an area zoned as Limited Commercial (CL). A dispensary will not be located in a residential area.
2. No dispensary shall be operated within 500ft of any public or private school.
3. No dispensary shall be operated after 10:00 PM at night or before 8:00 AM in the morning. The dispensary shall not be open to the public between 8 :00 AM and 9:00 AM, but_ this time may be used for setup and other administrative functions. Similarly, the dispensary shall not be open to the public between 9:00 PM and 10:00 PM, but this time may be used for closedown, cleaning, inventory and other administrative functions.
4. Neither live marijuana plants nor cultivation of marijuana is permitted in the dispensary, except that immature, non-flowering cloned live marijuana plants measuring less than 12 inches in height may be stored and sold.
5. There shall be no transportation of medicinal marijuana except the lawful transportation by patients, caregivers, and deliveries conducted pursuant to Conditions 29-36.
6. No amount of medicinal marijuana which is unduly disproportionate to the average number of patient served by the dispensary may be stored in the dispensary.
7. All clients of the Marin Alliance for Medical Marijuana are required to possess valid and current Marijuana for Medical Purposes identification card from the County of Marin Department of Health Services, the City and County of San Francisco Department of Public Health, or the City of Oakland Department of Public Health.
Prior to obtaining a State ID card, patients may given a 30-day trial membership. A current, written physician's recommendations that is confirmed by telephone shall be required for a 30-day trial membership. During this trial membership, patients should carry permittee-issued ID cards. The permittee shall maintain a written record .of the telephone verification, including the name of the ·employee who made the telephone call and the name and contact information of the person who verified the physician's recommendation, for the 30-day period. At the conclusion of the 30-day trial period, the permittee shall verify that the patient has obtained a State ID card.
The permittee will contract a licensed physician to conduct an audit of client records prior to the close of any si?(: month use permit c.ompliance period, and report the findings of. the audit to the Town of Fairfax to ensure compliance with this condition.
8. Should the patient be a minor, the record shall include the signed consent of the parent or legal guardian of the minor.
12606-0001\1237966v 1.doc
ATTACHMENT B
9. Patients may have a designated caregiver on record that shall be entitled to obtain marijuana on behalf of the patient.
I 0. Any designated caregiver of a patient of the Permittee shall comply with any and all requirements as set forth by the health department grantee (either the Marin Department of Health and Human Services, the San Francisco Department of Public Health, or the City of Oakland Department of Public Health) from which the patient has valid current identification card for the use of marijuana for medical purposes. Prior to obtaining a State ID card, patients may be given a 30•day trial membership pursuant to Condition 7, above, and may designate a caregiver to obtain marijuana on their behalf during that time.
11. Prior to commencing business each day, the permittee will record the total gross weight of all marijuana possessed at the dispensary which is no longer affixed ·to any living marijuana plant. In addition, the permittee shall record the total num,bers of cloned live marijuana plants being stored or offered for sale pursuant to Condition 4.
12. At the close the business each day, permittee will record the total gross weight of marijuana dispensed on that date and the total gross weight of all marijuana possessed at the dispensary which is no longer affixed to any living marijuana plant.
13. The permittee or his or her employee, shall record upon an individual receipt the membership number of the person obtaining the marijuana, the amount of marijuana purchased, the amount paid for tlle marijuana, and the time- and date the marijuana was dispensed. Receipts shall be retained pursuant to Condition 22.
14. Permittee shall :maintain financial records identifying information for all savings accounts, checking accounts, investment accounts and trusts associated with the operation of the dispensary.
I 5. Permittee shall maintain ledgers documenting all credits and debits affecting said accounts.
16. Permittee shall maintain records documenting all parties involved in, amounts· of and. purposes, for all cash transactions.
17. Permittee shall maintain records of all transactions related to the operation of the dispensary, including but not limited to rent, utilities, inventory, insurance and payroll.
18. Permittee shall maintain the records regarding the actual address, including Assessor's Parcel Number, of each site that medicinal marijuana is cultivated, grown and/or harvested on behalf of the dispensary.
19. Permittee shall maintain the records regarding the estimated yield that the growth will provide during each harvest of each site that medical marijuana is cultivated pursuant to Condition 17.
2 12606-0001\123 7966v I .doc
20. The dispensary shall not obtain marijuana from any other source other than those identified pursuant to Condition 18.
21. The cultivation site(s) identified pursuant to Condition 18 shall not be in areas zoned as residential.
22. Permittee shall maintain all of the required records at the dispensary site or in secured, accessible storage at all times.
23. All required records shall be subject to inspection by the Chief of Police, or his designee, without warrantee and without notice, during the time the dispensary is open for business.
24. Nothing in this section shall prohibit the discovery of seizure of records pursuant to court process.
25. Permittee may use alternatives for inspection of designated records. Records not specifically xempted herein shall be available to police inspection pursuant to Condition
23. 26. As an alternative to police inspection and with the consent of the Marin County Department of Health and Human Services·,. the Marin County Department of Health and Human Services shall conduct the patient and care giver records inspection. With this alternative the permittee will maintain, for police inspection, the letter of consent and a letter verifying that an inspection has been conducted within 6 months. The letter of verification shall also contain the number of patients, and the estimated total marijuana by weight that is necessary to support patient requirements.
27. As an alternative to police inspection, the Town of Fairfax may request that an audit of receipts be conducted by a Certified Public Accountant (CPA) chosen by the Town and paid for by the permittee. The permittee shall provide a summary of the report to the Town.
28. As an alternative to police inspection and. with the consent of the Marin County Department of Agriculture, the Marin County Department of Agriculture shall inspect grower records and inspect the actual agricultural site. With this .alternative the pennittee will maintain, for police inspection, the letter of consent and a letter verifying that an inspection of the records and the growing site has been conducted within four months.
The letter of verification shall contain the number of growing sites and the estimated yield, by weight, of medicinal marijuana .
. 29. The permittee may operate a q Iivery service and deliver n:iedical .marijuan to patients pursuant to the conditions of this permit.
30. The hours of the delivery service are limited to Monday through Saturday, between the hours of9:00 AM and 5:00 PM. Permittee may utilize up to two vehicles for deliveries at any one time.
3 12606-000 I \I 237966v I .doc
31. Permittee must maintain current automobile insurance in the amount of $1 million per . incident, and shall agree to indemnify, defend, and hold harmless the Town of Fairfax, its officers, agents, employees and volunteers from all claims, suits, or actions of every name,. kind and description arising from or connected with the delivery service. Permittee shall name the Town of Fairfax as an additional insured on its automobile insurance policy.
Permittee's insurance records shall be maintained and subject to inspection pursuant to Conditions 22 and 23.
32. Delivery vehicles shall be unmarked. Delivery vehicles shall carrx no more than sixteen ounces of medical marijuana, no more than $2,500 worth of other medical marijuana products, and no more than $2,500 in cash at any time. ·1n no event shall the quantity of medical marijuana carried exceed the reasonable amount required by the patients being delivered to
33. Each delivery vehicle shall be staffed by at least two persons: a licensed driver ancl permittee or another employee designated as a caregiver pursuant to state law, during all deliveries. All drivers and caregivers shall submit to a criminal background check with the Town Police Department. Persons convicted of a felony shall not be allowed to operate or accompany delivery vehicles.
34. Deliveries shall be made to residential properties only.
35. Permittee shall note the member number and address of the patient by telephone when taking orders for delivery, and ·the permittee ·or their employee shall verify the patient's identity by. checking the patient's State or permittee-issued ID card at the point of delivery. Permittee shall maintain records and receipts of all deliveries pursuant to Conditions 13 and 23.
36. Permittee shaJl provide its delivery schedule and delivery vehicle information to the Fairfax Police Department on request during dispensary business hours.
37. No amount of medicinal marijuana which is unduly disproportionate to the average number of patients served by the dispensary may be brought to the dispensary location.
38. When a patient or care-giver is in possession of medicinal marijuana, the person shall also be in possession of a State or permittee-issued identification card as spedfied in Condition
7. 39. No medicinal marijuana will be used or consumed at the dispensary site.
40. Permittee shall not distribute medicinal marijuana to any perso without confirming the patient's lawful ability to obtain marijuana in compliance with Health and Safety Code Section 11362.5.
4 12606-000 I\ 1237966v I .doc
.. '.
• 'i
41. Pennittee shall not provide medicinal marijuana to any person without confirming the patient's or care giver's identity by means of valid government issued identification which bears a photograph of the patient or care giver obtaining the marijuana.
42. Pennittee shall not distribute any amount of meclicinal marijuana which exceeds one ounce to, or on behalf of, any one person during any consecutive seven day period without a physician's written recommendation.
43. Any marijuana that is dispensed shall be in sealed containers. Commercially manufactured child-resistant containers shall be available.
44. The medicinal marijuana dispensary shall be equipped with an operable alarm system.
This alann system, at a minimum, will protect the perimeter of the dispensary and the location within the structure where medicinal marijuana is stored, packaged or dispensed.
45. The alarm is to be monitored by a professional .alarm company at 11 times when· the dispensary is closed for business.
46. All doors and windows of the premises shall be equipped with adequate security devices.
47. All medicinal marijuana and cash shall be stored in a locked safe at all times which the dispensary is closed for business.
48. This safe will be retained at the dispensary at all times.
49. All medicinal marijuana and cash shall be stored in a locked safe at all times when the dispensary is closed for business.
50. This safe will be retained at the dispensary at all times.
51. Pennittee shall notify the Fairfax Police Department of. all criminal activity which is occurs at, oi adjacent to, the dispensary. • •••
52. This activity shall be reported as it is occurring, or when first discovered by the pennittee, and shall include all activity that can reasonably .be determined to be criminal in nature.
53. For the purpose of these requirements the term: a) "Permittee" is defined to include, but not be limited to, the permittee, and all owners, directors, advisors, consultants, contractors, employees and volunteers engaged in, or assisting in the operation of a medicinal marijuana dispensary, whether operated for profit or not.
54. "Premises" is defined to include, but not be limited to, all offices, rooms, storage facilities, lockers, stationary conveyances, outbuildings, parking lots and ground, whether open to the public or not.
55. Any violation of these conditions shall be cause for revocation of the use permit. 5 12606-0001\1237966vl .doc
/ ...... ,) : ... ·,
56. The use must be conducted in compliance with the provisions of Proposition 215.
57. No persons under the age of 18 shall be permitted in the dispensary at any time, except for underage members accompanied by a parent, legal guardian, or the member's personal medical professional.
58. No retail sales of any products other than medical marijuana will be permitted at the dispensary located at 6 School Street Place, Suite 210.
59. The dispensary is required to have a display on the front door and within the waiting room advising its clientele that no person under the age of 18 is permitted onto the premises except underage members accompanied by a parent, legal guardiati, or the member's personal medical profe sional.
60. The use shall be subject to all State adopted guidelines immediately upon adoption of such guidelines.
I
61. The use permit shall be revoked if any final judicial decision is made rendering the use illegal.
62. The applicant shall make a good faith effort to obtain any and all required permits and/or licenses from the State of County agencies having jurisdiction over this type of use (i.e.
Marin County Health Depart ent, State Board of Equalization, etc ).
63. There shall be no alcohol used on the premises of the dispensary. 6 12606-0001 \l 237966v I .doc
t .id. ,·
,-
--·
Condition Sequential List
Page # _Condition #
1. 2.
3. 4.
5. 6.
7. 8.
9. 10.
11. 12.
1.�.1;:Jpispensary to be operated in an area zoned as Limited Commercic.
A dispensary will not be located in a residential area. :)1\j}�;J N� dispensary shall be operated within 500 feet of any public or private school.
.· : '·n·, . . ••• ·"'If;
;,1Jo.;'.t;',ii"he dispensary shall not be operated after 9:00 P.M.,at night nor before 9:00 A.M. in the morning.
1.b.2; A dispensary shall not be in operation when there is any organized youth activity occurring �ithin 500 feet of the dispensary.
2.a; No live marijuana plants nor cultivation of marijuana is permitted in the dispensary.
2.b; Except as provided in items 47 - 52, there shall be no transportation of medicinal marijuana.
2.c; No amount of medicinal marijuana which is unduly disproportionate to the average number of patients served by the dispensary may be stored in the dispensary.
3.a.1; Dispensary file records will contain the patient's current name, current photograph, current home telephone number and current residential street address. Post Office boxes and pager numbers are deemed not to satisfy this requirement.
3.a.2; Dispensary files will contain the patient's specific ailment.
3.a.3; Dispensary files will contain a dated physician's recorpmendation for use . of marijuana as a treatment for the named individual. Such recommendation is valid for a period of six months after which time another recommendation may be made. The recommendation must contain the name of the recommending physician.
3.a.4; Should the patient be a minor, the record shall include signed consent of the parent or legal guardian of the minor.
3.b; Gravely ill, homebound patients may have a designated care giver on_ record who shall be entitled to obtain marijuana on behalf of the patient.
ATTACHMENT C