City Manager’s Report: September 13, 2024 IMPORTANT DATES • October 5: City of Mason Open House, 10 am - 2 pm, at the James M. Pelton Memorial Fire Station and City Hall parking lot area. OPERATIONS General: • City Staff met with Ingham County Drain Commission Representatives regarding their proposed Willow Creek Project and had concerns regarding the City’s proposed assessment. The City Attorney is preparing an appeal to the assessment at this time. • The City received distributions of $17,759 from MMRMA for the City’s share of excess net assets and $7,053 for the City’s excess net assets in the State Pool Retention Fund. • The Cit
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City Manager’s Report: September 13, 2024 IMPORTANT DATES • October 5: City of Mason Open House, 10 am - 2 pm, at the James M. Pelton Memorial Fire Station and City Hall parking lot area. OPERATIONS General: • City Staff met with Ingham County Drain Commission Representatives regarding their proposed Willow Creek Project and had concerns regarding the City’s proposed assessment. The City Attorney is preparing an appeal to the assessment at this time. • The City received distributions of $17,759 from MMRMA for the City’s share of excess net assets and $7,053 for the City’s excess net assets in the State Pool Retention Fund. • The City’s annual Leaf Collection Program will begin in mid-October and run through November 22. The attached flyer provides more information on the process. Expertise Building and Partnerships: • City Manager Stuart participated in the MML Worker’s Compensation Fund Board Meeting where the Board authorized a recommendation to the State Worker’s Compensation Agency to provide a dividend distribution for 2025. If authorized, it will be the largest dividend distribution by this Board, while still providing a significant fund balance based on elevated concerns/ indicators for a recession within the next 12 months. The Board also reviewed the impacts of the Mothering Justice v. Attorney General Supreme Court decision. While we meet compensation, sick leave accrual will need to be increased, and all classifications will need to be reviewed to determine if they are eligible for additional benefits. All adjustments will be in place by February 21, 2025, as required and staff will share any budget impacts. • Officer Justin Demo attended Capital Region Integrated Critical Skills (CRICS) on 9/3/2024. Sergeant Jeremiah Budd and Officer Adam Michele attended CRICS on 9/4/2024. • Sergeant Jeremiah Budd and Sergeant Joe Fairbotham attended Police Supervisor Legal Liability training on 9/6/2024. • As of 9/6/2024, Chief Matt Shutes and Lexipol LLC have begun their partnership to establish and implement an updated Policies and Procedures Manual for the Mason Police Department. Traffic Complaints: • Speeding: Okemos St. near E. Columbia & E. Randolph- Closed; 6 traffic stops conducted resulting in 4 verbal warnings and 2 citations issued. • Speeding: Wildemere/Harrogate- Closed; zero violations observed. • Speeding: E. Columbia St. (between Barnes/Rogers)- Open until 10/1/2024 Personnel: • OPPORTUNITIES - 3 o Part-time Administrative Assistant - Public Works/Utilities (1) – posted externally. Applications will be considered until the position is filled. An initial review has been conducted and skills tests are being scheduled. o Part-time Custodian (1) – Position under review, including considering contracting for this work. o Seasonal Part-time Crossing Guard (1) - Open until filled. Agend Packet - FINAL 33 City of Mason – City Manager’s Report September 13, 2024 Page 2 of 3 CAPITAL IMPROVEMENT PROGRAM PROJECTS Active or planned for the current Fiscal Year. Removed after one notice of complete. FY 2024-2025 Project Project Name/Description Status STREETS, BRIDGES, SIGNALS(S) 2018-S27 / 2023-U6 Peachtree Place: W. Columbia St. to W. South St., Utilities • In progress, estimated completion in November. Schedules are ONLY ESTIMATES and weather dependent. 2018-S29 / 2023-U7 S. McRoberts St.: W. Columbia St. to W. Ash St., Utilities 2019-S4 / 2023-U8 Foxview Lane: Entire Length, Utilities 2019-S6 / 2023-U9 Middlebury Lane: Entire Length, Utilities 2023-S2 E. Elm St. South Alley: S. Jefferson St. to S. Rogers St. UTILITIES: SANITARY SEWER, STORM WATER, AND WATER DISTRIBUTION (U) 2019-U3b WWTP Plant Construction In progress, with monthly progress meetings. 2023-U5 Asset Management Plan Plan to Contract 3Q 2023-U10 Water Service Line Replacement In progress, working as time allows (15 of 30 complete) 2023-U11 Raise Manholes: Willow Creek Four were completed, one remains. 2023-U12 Grit Removal System Maintenance After an inspection, staff had limited repairs, but certain parts must be purchased. That will be discussed at a future council meeting. 2023-U13 Plant Valves and Baffle Wall Repair Currently soliciting bids to be submitted by September 18. PARKS/ CEMETERY/ FORESTRY/ NONMOTORIZED (P) 2020-P11 Rayner Park- Phase 1 Construction The entrance walkway has been updated. (36TU Updated Plans found hereU 36T ). In progress, estimated completion in October. Note the estimated schedule is weather. The DNR grant extension has been approved and year-end reporting completed. 2020-P21 Hayes Park: Capital Improvements Anticipated to start by end of September. 2020-P4 Hayhoe Riverwalk Trail: Wayfinding Signage Ingham announced a wayfinding grant round to be released this winter. Staff plan to apply to try to leverage funds. 2020-P9 Downtown Wayfinding Signage (DDA) DDA has formed sub-committee to prepare bid, anticipate 3Q 2020-P16a Kipp Road Sidewalks Design Anticipate 3Q (Wolverine will complete.) 2020-P24 Lee Austin Park: Capital Plan to contract 4Q 2020-P20 NM: SW Quadrant (Sidewalks) Plan to contract 3Q 2020-P23 Parks/Recreation Plan: 5 Year Update Evaluating scope to determine timing. MOTOR VEHICLE POOL (MVP) 2017-MVP18 Vehicle No. 24 Dump/Plow Truck Ordered, receipt anticipated December 2024, equipping will follow 2018-MVP3 Vehicle No. 84 Police Patrol Received, equipping scheduled for October. 2023-MVP1 Vehicle No. 88 New Police Patrol Received, equipping scheduled for December. 2019-MVP5 Vehicle No. 87 Police Patrol Ordered, receipt anticipated 2Q. 2024-MVP2 Vehicle No. 98 Paint Sprayer Seeking quotes. Agend Packet - FINAL 34 City of Mason – City Manager’s Report September 13, 2024 Page 3 of 3 BUILDING, PROPERTY, EQUIPMENT (B) 2017-B5b Building: Library Phase 1 Confirming final scope/contract items for the next phase. The project will remain on the report until all approved funds are allocated. 2018-B23 Planning: Master Plan/Zoning Update In progress, the next meeting is being scheduled for October. 2018-B23a Cedar/127 Corridor Sub-area Plan In progress. Existing conditions evaluation near completion; stakeholder engagement over the winter. 2019-B2 City Hall Design/Renovations: Phase 1 Construction designs in progress. 2019-B8 Police: Car Port (7-Car Unit) On hold- still reaching out directly to potential bidders. 2020-B4 DPW: Facility Design/ Construction Staff meeting bi-weekly with consultants. The anticipated schedule is: • October- Finalize site, amend CIP for infrastructure • December- Notice of Intent/ Financing preparation • January – Construction Bidding 2019-B5 GIS Phase I Plan to contract 3Q. 2022-B1 Ord. Update: Planning, Subdivision, Signs, STR Pending completion of zoning ordinance; plan to contract 3Q. 2023-B4 Public Participation Plan & Communication Strategy Plan to implement 3Q. 2023-B5 Comprehensive Business and Resident Guide Pending completion of zoning ordinance; plan to contact 3Q. Resources: More Questions? Please contact our Customer Service Desk at 517.676.9155 or 36Tinfo@mason.mi.us36T. Agend Packet - FINAL 35 LEAF COLLECTION PROGRAM LEAF COLLECTION: The Leaf Collection Program is a limited service designed to supplement yard waste collection provided by Granger. Removing the fallen leaves helps to prevent ponding, flooding, and road icing as a result of blocked drainage paths and catch basins. As a service to our residents, City staff collect leaves in the right of way beginning mid- to late October through November 22, 2024. You can help the City clear the autumn leaves by raking leaves that have accumulated in your front yard out to the right of way, no more than a few days before your street’s collection day; see the Zone Map below. Please do not rake leaves onto sidewalks, roadways, on top of catch basins, or obstruct water flow in any way. Improperly placed leaves may cause them to be missed during the pick-up day and can create dangerous conditions for pedestrians, cyclists, motorists, and may create flooding conditions. All other leaves (like those from side and back yards) should be placed in either disposable paper bags or in trash cans, 30-gallon or smaller, and placed at the curb on Fridays. Granger will accept up to 5 bags or cans weekly from each residence until November 22, 2024, as part of their service with the City. LEAF COLLECTION SCHEDULE AND ZONE MAP: Collections will be mid to late October through November 22, 2024. Pick-up days are coordinated by the Zone in which you live. If you see City staff in your area a few days earlier or later than scheduled, they are just getting an early start or making a final collection pass in your area. Please understand that snow accumulation and other weather-related events may impact the City’s ability to run the program. Zone 1 - Mondays South of W. Ash, West of S. Jefferson Zone 2- Tuesdays North of W. Ash, West of N. Jefferson Zone 3- Wednesdays South of E Maple, East of S. Jefferson Zone 4- Thursdays North of E. Maple, East of N. Jefferson * Fridays are catch-up days (as needed) COMPOST CENTER: The Compost Center is available for anyone who would like to pick-up compost or drop off leaves; brush and limbs are not accepted. It is located at 862 Mason St. and will be open Saturday, October 19, 2024, through Saturday, November 16, 2024; Monday – Friday 8:00 a.m. to 3:00 p.m. and Saturday 8:00 a.m. to 12:00 p.m.; closed on Holidays. RESOURCES: More Questions? Please contact our Customer Service Desk at 517.676.9155 or info@mason.mi.us. 201 West Ash Street; Mason, MI 48854-0370 Office: 517.676.9155; Website: www.mason.mi.us Agend Packet - FINAL 36 201 West Ash Street; Mason, MI 48854-0370 Office: 517.676.9155; Website: www.mason.mi.us TO: City Councilmembers FROM: Deborah Stuart, City Manager DATE: September 16, 2024 RE: Marihuana Ballot Educational Materials On July 15, 2024, the City Council approved a Ballot Proposal for the November 5, 2024, General Election regarding an ordinance amendment allowing two marihuana retail businesses. The Agenda Report for that meeting indicated that staff would prepare a sample ordinance, to be posted on the City of Mason website at least 60 days in advance. In addition, staff would send out a postcard with ballot information like the park millage. However, due to recent Council-related issues and special meetings taking the capacity of staff, the educational items were delayed to this meeting (50 days prior to the election). The first absentee ballots are expected to be mailed by September 27, 2024, so the information is still timely, but the mailer should be sent as soon as possible so all voters receive the information. Attached you will find the staff’s proposed mailer, FAQ webpage (that will be updated as questions come in), and a sample ordinance as a reference for voters. The ordinance should NOT be considered final, but only an example, as it will have considerable review before adoption by City Council if the proposal passes. If there are no major concerns brought up by Council, the website will be live on September 17, 2024, and the mailer will be sent to the printer week to be mailed. In addition, staff will also start doing social media informational posts related to this issue and will have educational materials at the Open House. Please note all documents are in draft form and may have additional changes prior to publication for various reasons. ATTACHMENTS • Marihuana Vote Mailer- DRAFT • Marihuana Vote Webpage- DRAFT • Marihuana Sample Ordinance- DRAFT Agend Packet - FINAL 37
DRAFT Webpage, 9.13.24 City Departments > City Clerk > Elections > Marihuana_Vote Information on Proposed Amendment to Allow for Marihuana Establishments in Mason Election Date: Tuesday, November 5, 2024 On November 5, 2024, Mason residents will vote on a proposed amendment to Part II of the Mason City Code, Chapter 26 – Businesses, Article XII – Marihuana Establishments to allow for two recreational facilities. The following Q&A provides information to educate the community about the proposed amendment and language residents will see on their ballot. Is marihuana legal in Michigan? Yes. Medical marihuana is now legal in 38 states, and recreational marihuana is legal in 24 states. The use of both medical and recreational marihuana is legal in Michigan. In 2018, the Michigan Regulation and Taxation of Marihuana Act (MRTMA) created the law that allows the legal use and possession of recreational marihuana for persons over 21 years of age. Did Mason pass a law prohibiting marihuana establishments within the City? Yes. The City of Mason previously passed a law that completely prohibited marihuana establishments. However, through the MRTMA, citizens may petition to initiate an ordinance allowing marijuana establishments with the opt-in ballot initiative regardless of the City’s current opt-out approach. An outside entity can control the language and may draft ordinances and proposals for many marihuana facilities (requiring only a small number of supporter signatures) to place on the ballot. If passed, the outside entity would control the ordinance, how the qualifications occur, etc. Residents may not realize voting in favor of the outside entity’s proposal provides them with this control. What would the proposed ordinance amendment allow in terms of marihuana establishments in Mason? If approved, an ordinance would be drafted and approved by the Council to allow for two (2) retail recreational marihuana establishments to operate. The City Council would determine the zoning districts that establishments could locate in if approved. No more than two locations would be selected, and all areas would be contingent on future zoning, permitting, a special land use permit, and landowner consent. What language will I see on the November 5, 2024, ballot? Ordinance Amending Prohibition of Marihuana Sales Shall the Mason City Code ordinance, Chapter 10 – Businesses, which currently prohibits the sale of marihuana in the City of Mason, be amended to authorize and allow two (2) marihuana recrea�onal establishments to operate in the City of Mason? YES or NO What will happen after the vote? • If the majority of voters vote YES, the City Council would adopt an ordinance allowing for two retail recreational marihuana facilities within the city. • If a majority of voters vote NO, marihuana establishments would continue to be prohibited in Mason. Agend Packet - FINAL 38 Why is this ordinance amendment going on the ballot? On December 12, 2023, Anderson Granstaff no�fied the City Manager that he had been retained as corporate counsel for an organiza�on that is planning to circulate pe��ons in support of a ballot ini�a�ve in the City of Mason. The proposed ballot ini�a�ve would end Mason’s prohibi�on on recrea�onal/adult-use marihuana retail businesses and establish a regulatory framework for the licensure of those businesses. The ordinance would also establish procedures and guidelines for employees of Mason to follow when reviewing, scoring, and ranking applica�ons submited by en��es who are interested in obtaining adult-use marihuana retail licenses. The City expressed concerns with the proposed ordinance and �melines if it were to appear on the ballot. While the City feels voters ought to decide whether to amend the Mason City ordinance which prohibits the sale of marihuana within the City of Mason, the proposed ordinance amendment was believed to benefit the outside entity more than the residents. Should voters choose to pass this ordinance amendment, the City, rather than an outside entity, could have reasonable control over ordinance language and any amendments, as well as control over marihuana regulations within its borders. It would give the City time to process and adjust to changes on its own terms and regulations. If the ordinance amendment does not pass, marihuana establishments will remain prohibited in Mason. Mr. Granstaff agreed to not move forward with his pe��on if the City was willing to place the ques�on on the ballot. If the proposed amendment DOES NOT PASS, what is the potential impact on future marihuana establishments in Mason? If the ordinance amendment does not pass, marihuana establishments will remain prohibited in Mason. However, through the MRTMA, an outside entity (such as a citizen representing a marihuana business) may petition to initiate an ordinance for a future election that allows marihuana establishments in Mason, regardless of the existing City law prohibiting marihuana establishments. As stated previously, the outside entity could propose that a large number of marihuana establishments be permitted in the City, and if passed by the voters in a future election, the outside entity would have control over the terms, regulations, and qualifications pertaining to the marihuana establishments. It should also be noted that a citizen or outside entity could petition to initiate an ordinance that could completely ban the sale of marihuana in Mason. The City is not permitted to do that, but a citizen may. If the proposed amendment DOES PASS, what are the next steps? If the ordinance amendment does pass, the City Council will consider and adopt an ordinance outlining the requirements for each establishment. Where can I view the proposed changes to the ordinance? View a sample ordinance here. This ordinance has been drafted by staff but may have amendments after getting feedback from stakeholders and the City Council. Please note the Council will also determine whether the establishments can be located in any district where retail is allowed or will amend the City’s zoning ordinance for marihuana retail establishments to be separately defined and allowed in only certain districts. Currently, retail is permitted in C-1: Central Business District, C-2: General Commercial District, and C-3: Local Commercial District. How can I learn more about the rationale for placing this proposed ordinance amendment on the ballot? Follow the links below for information provided to the City Council to come to this determination: • July 15, 2024 – City Council Meeting, Regulation of Marijuana Recreational Use Facilities in City of Mason: Ballot Question Resolution • March 4, 2024- City Council Meeting, City Council Directs the City Atorney to Dra� Language for a Ballot Proposal for the November 5, 2024, General Elec�on Regarding an Ordinance Amendment Allowing Two Marihuana Retail Businesses Agend Packet - FINAL 39 What funding will the City get for allowing for marihuana establishments? Marijuana funds collected under the Michigan Regulation and Taxation of Marihuana Act (Initiated Law 1 of 2018) are distributed, upon appropriation, as follows: • 15% to municipalities in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the municipality. • 15% to counties in which a marijuana retail store or a marijuana microbusiness is located, allocated in proportion to the number of marijuana retail stores and marijuana microbusinesses within the county. • 35% to the School Aid Fund to be used for K-12 education. • 35% to the Michigan Transportation Fund to be used for the repair and maintenance of roads and bridges This funding changes depending on the number of licenses throughout the state. For reference, if two businesses in Mason were licensed by the State the City would have received: • For 2023 $118,172.70 • For 2022 $103,682.42 • For 2021 $112,906.88 In addition, the City would receive an Application fee to cover the costs of inspections and review of applications. Why is marihuana sometimes spelled with an "h" and not a "j"? While both spellings are commonly accepted, Michigan’s legal spelling for marihuana was chosen in the Marihuana Tax Act of 1937. Michigan adopted its statutory definition of marihuana in the Public Health Code, utilizing the then-current federal spelling, marihuana. As governing state laws spell marihuana with an “h,” the City will reference any future ordinances or policies with that spelling. An act of the Michigan Legislature would be required to change the spelling of marihuana in the Michigan statutes. Agend Packet - FINAL 40 Why is this ordinance amendment going on the ballot? Last December, an outside entity notified the City that they were planning to circulate petitions in support of a marihuana ballot initiative in the City. The proposed ballot initiative would end Mason’s prohibition on recreational/adult- use marihuana retail businesses and establish a regulatory framework for the licensure of those businesses. The ordinance would also establish procedures and guidelines for employees of Mason to follow when reviewing, scoring, and ranking applications submitted by entities who are interested in obtaining adult- use marihuana retail licenses. The City expressed concerns with the proposed ordinance and timelines proposed. While the City Council feels voters ought to decide whether to amend the Mason City ordinance which prohibits the sale of marihuana within the City of Mason, the proposed ordinance amendment was believed to benefit the outside entity more than the residents of Mason. Should voters decide they want marihuana establishments in Mason and choose to pass this ordinance amendment, the City, rather than an outside entity, could have reasonable control over ordinance language and any amendments. If the ordinance amendment does not pass, marihuana establishments will remain prohibited in Mason. The entity agreed to not move forward with their petition if the City was willing to place the question on the ballot. Did Mason pass a law prohibiting marihuana establishments within the City? Yes, the City of Mason City Council previously passed a law which completely prohibited marihuana establishments. What would the proposed ordinance amendment allow in terms of marihuana establishments in Mason? If approved, an ordinance would be drafted and approved by Council to allow for two (2) retail recreational marihuana establishments to operate. No more than two locations would be selected, and all areas would be contingent on future zoning, permitting, a special land use permit and landowner consent. How can I learn more? Visit our webpage dedicated to this issue where full text of the ballot proposition and FAQs will be regularly updated. Marihuana Vote Information Election Information www.mason.mi.us/MarihuanaVote www.mason.mi.us/Election FREQUENTLY ASKED QUESTIONS QR CODE SCAN ME QR CODE SCAN ME Agend Packet - FINAL 41 Information on Proposed Amendment to Allow for Marihuana Establishments in Mason Election Date: Tuesday, November 5, 2024 A vote on a proposed amendment to Part II of the Mason City Code, Chapter 26 – Businesses, Article XII – Marihuana Establishments to allow for two recreational facilities. FOR MORE INFORMATION Visit: www.mason.mi.us/MarihuanaVote More Questions? Please Contact Customer Service at 517.676.9155 or info@mason.mi.us. If passed, the City Council would adopt an ordinance allowing for two recreational marihuana facilities within the City. If not passed, marihuana establishments would continue to be prohibited in Mason. Agend Packet - FINAL 42
1 SAMPLE ORDINANCE Please note that this ordinance is sample only and has been drafted by staff to meet the legal requirements. It will have numerous changes after getting feedback from stakeholders and the City Council, if the ballot proposal passes. Please also note the Council will need to determine whether the establishments can be located in any district where retail is currently allowed or will they amend the City’s zoning ordinance for marihuana retail establishments to be separately defined and allowed in only certain districts. Currently, retail is permitted in C-1: Central Business District, C-2: General Commercial District, and C-3: Local Commercial District. CITY OF MASON ORDINANCE NO. ______ AN ORDINANCE TO PROVIDE FOR TWO MARIHUANA RETAILERS PURSUANT TO THE MICHIGAN REGULATION AND TAXATION OF MARIHUANA ACT AND TO DECRIMINALIZE THE POSSESSION OF MARIHUANA AND DRUG PARAPHERNALIA USED SOLELY IN CONJUNCTION WITH MARIHUANA WITHIN THE CITY BY AMENDING CHAPTER 10 - BUSINESSES, ARTICLE IV - MARIHUANA ESTABLISHMENTS AND AMENDING CHAPTER 42 - OFFENSES AND MISCELLANEOUS PROVISIONS, ARTICLE III - OFFENSES INVOLVING PUBLIC PEACE AND ORDER. THE CITY OF MASON ORDAINS: Chapter 10, Article IV - Marihuana Establishments of the Code of the City of Mason is hereby amended by repealing Section 10-80 and adding new sections 10-80 through 10-90, which shall read as follows: ARTICLE IV. ADULT-USE MARIHUANA ESTABLISHMENTS Sec. 10-80. PURPOSE. This Article is created to regulate the sale of marihuana in the City of Mason to allow certain marihuana facilities and marihuana establishments to operate in the city pursuant to the Michigan Regulation and Taxation of Marihuana Act; to provide for standards and procedures to license and regulate such facilities and establishments; to provide for the imposition of license application fees; to provide penalties; and to impose conditions for the operation of such facilities and establishments. Sec. 10-81. DEFINITIONS. The following words, terms, and phrases, when used in this division, shall have the meanings ascribed to them in this Article, except where the context clearly indicates a different meaning: APPLICANT means a person who applies for a license to operate a marihuana retailer under this Article. CITY means the City of Mason. Agend Packet - FINAL 43 2 CLERK means the City Clerk of the City of Mason. COUNCIL means the City Council of the City of Mason. DEPARTMENT means the Michigan Department of Licensing and Regulatory Affairs. LICENSEE means a person holding a state license and/or a person who receives a license to operate a marihuana establishment under this Article. MARIHUANA means as defined in the Michigan Regulation and Taxation of Marihuana Act (“MRTMA”). MARIHUANA ACCESSORIES means any equipment, product, material, or combination of equipment, products, or materials, which is specifically designed for use in planting, propagating, cultivating, growing, harvesting, manufacturing, compounding, converting, producing, processing, preparing, testing, analyzing, packaging, repackaging, storing, containing, ingesting, inhaling, or otherwise introducing marihuana into the human body. MARIHUANA ESTABLISHMENT means a marihuana retailer as defined under the MRTMA and this Article. MARIHUANA RETAILER means a person licensed under the MRTMA to obtain marihuana from marihuana establishments and to sell or otherwise transfer marihuana to marihuana establishments and to individuals who are 21 years of age or older. MRTMA means the Michigan Regulation and Taxation of Marihuana Act, Initiated Law 1 of 2018, M.C.L.A.§§ 333.27951et seq. PARK means an area of land dedicated for public use and accepted by the city, with or without facilities for rest and recreation. PERSON means an individual, corporation, limited liability company, partnership of any type, trust, or other legal entity. RELIGIOUS INSTITUTION means a building housing an organization founded on an established religion, such as a church, synagogue, mosque, temple, or other house of worship. SCHOOL means a public or private school offering education to students enrolled in kindergarten, or one or more grades of one through 12. SPECIAL LAND USE PERMIT means a permit that can be issued by the Council which can approve with conditions all requests for permission to carry out special land uses where such uses are permitted in the Mason City Zoning Ordinance at Article 94. STAKEHOLDER means the officers, directors, and managerial employees of an applicant and any persons who hold any direct or indirect ownership interest in the applicant. STATE LICENSE means a license issued by the department that allows a person to operate a marihuana Agend Packet - FINAL 44 3 establishment. UNREASONABLY IMPRACTICABLE means that the measures necessary to comply with the rules or ordinances adopted pursuant to this Article subject licensees to unreasonable risk or require such a high investment of money, time, or any other resource or asset that a reasonably prudent businessperson would not operate the marihuana establishment. Sec. 10-82. PROHIBITIONS. (A) Notwithstanding anything in this Article, no person shall operate a marihuana establishment within a 1,000-foot radius of any parcel upon which is located any existing school, religious institution, park or playground, city-owned recreational facility, nor in any other area. (B) No person shall operate a marihuana establishment in the city without first obtaining any relevant Michigan state license required by the MRTMA and a license from the city in accordance with the provisions of this Article. A separate state and city license is required for each marihuana establishment. (C) No person shall consume or use in any fashion marihuana in a public place within the boundaries of the City of Mason, or in any violation of state law of the MRTMA. Sec. 10-83. MARIHUANA RETAILERS. (A) Pursuant to section 6 of the MRTMA, the city authorizes two licenses for a marihuana retailer. (B) Except as otherwise provided in this Article, the city shall not permit or authorize the operation of any other type of marihuana establishment or marihuana facility. (C) This Article shall not be interpreted to allow the operation of marihuana retailers at more than two locations in the city at the same time, or the operation of any other marihuana establishment as that term is defined at MCL 333.27953(e). Sec. 10-84. LICENSE APPLICATIONS. (A) Any person seeking to operate a marihuana retailer shall file a license application with the clerk upon a form provided by the city. The application shall include the following information: (1) The full name, date of birth, physical address, email address, and telephone number of the applicant in the case of an individual, or, in the case of an entity, all stakeholders thereof; (2) If the applicant is an entity, the entity's articles of incorporation or organizational documents; (3) If the applicant is an entity, the entity’s employer identification number; (4) If the applicant is an entity, the entity’s operating agreement or bylaws; (5) A proposed marketing, advertising, and business promotion plan for the proposed marihuana retailer; Agend Packet - FINAL 45 4 (6) A description of planned tangible capital investment in the city; (7) An explanation of the economic benefits to the city and job creation to be achieved, including the number and type of jobs the marihuana retailer is expected to create, the amount and type of compensation expected to be paid for such jobs, and the projected annual budget and revenue of the marihuana retailer; (8) A description of the financial structure and financing for the proposed marihuana retailer; (9) Short-term and long-term business goals and objectives for the proposed marihuana retailer; (10) A criminal background report of the applicant's criminal history. This includes all individuals, and for a commercial entity, its resident agent, and all officers. Such reports shall be obtained by the applicant through the Internet Criminal History Access Tool (iCHAT) for applicants residing in Michigan and/or through another state sponsored or authorized criminal history access source for applicants who reside in other states or have resided in other states within five years prior to the date of the application. The applicant is responsible for all charges incurred in requesting and receiving the criminal history report and the report must be dated within 30 days of the date of the application; (11) A description of proposed community outreach and education strategies for the knowledge of substances use and substances abuse; (12) A description of proposed charitable plans to enhance the city whether through financial donations or volunteer work; (13) A description of the security plan for the proposed marihuana provisioning center or marihuana retailer that is consistent with the requirements of the Michigan Department of Licensing; (14) A floor plan of the proposed marihuana retailer and a site plan of the proposed marihuana retailer that complies with the site plan review process of the Zoning Ordinance at Article 94 and incorporates sustainable elements in their plan; (15) A scale diagram illustrating the property upon which the proposed marihuana retailer is to be operated, including all available onsite parking spaces, and specifying which parking spaces are handicapped-accessible; (16) A depiction of any proposed text, graphic materials and all signage to be shown on the exterior of the proposed marihuana retailer; (17) An affidavit that neither the applicant nor any stakeholder of the applicant is in default to the city for any fees or taxes; (18) Proof of premises liability and casualty insurance consistent with the requirements of the Department; and, Agend Packet - FINAL 46
5 (19) A location area map that identifies the relative locations of, and distances from, the nearest schools, religious institutions, parks or playgrounds, and city-owned recreational facilities, computed by measuring a straight line from the nearest property line of the parcel used for the purposes stated in this subsection to the nearest property line of the parcel to be used as a marihuana retailer. Sec. 10-85. APPLICATION FEE. An application for a license shall be accompanied by an application fee to help defray administrative and enforcement costs to the city associated with the operation of the marihuana retailer, which shall be set by resolution from time to time of the Council but shall not exceed $5,000 per application. Sec. 10-86. APPLICATION REVIEW. (A) After the effective date of this Article, the clerk shall begin accepting applications for a marihuana retailer after 45 days. The clerk will set a 30-day application period during which applicants may apply for one license to operate a marihuana retailer and advertise the 30-day period on the city website. (B) The clerk shall review each application to ensure that it is complete, that the information required by this Article has been submitted, and that the application fee has been paid. The clerk may reject any application that is not complete and may deny an application for failure to pay the application fee. (C) Upon receipt of a completed application meeting the requirements of this Article and the appropriate license application fee, the clerk shall refer a copy of the application to each of the following for their approval: the police department, the fire department, the zoning and development departments, and the treasurer. (D) No application shall be approved unless: (1) The police, the fire, and the zoning and development departments have inspected the proposed location for compliance with all laws for which they are charged with enforcement and for compliance with the requirements of this Article; (2) The zoning administrator has confirmed that the proposed location complies with the Mason Zoning Ordinance and this Article; (3) The building official has confirmed that the proposed location complies with the Michigan Building Code; (4) The treasurer has confirmed that the applicant and each stakeholder of the applicant are not in default to the City; and (5) The requirements for site plan approval and potential approval of a Special Land Use Permit comports with Article 94. (E) The city manager, or his/her designee, shall assess, evaluate, score and rank all applications for licenses to operate a marihuana retailer submitted during the 30-day application period set forth in this Article. Agend Packet - FINAL 47 6 (F) In its application assessment, evaluation, scoring, ranking, and deliberations related to licenses to operate a marihuana retailer, the city manager, or his/her designee, shall assess, evaluate, score, and rank each application based upon a scoring and ranking procedure developed by the city staff consistent with the requirements, conditions, and provisions of this Article in each of the following categories: (1) Whether the proposed marihuana retailer will be consistent with land use for the required zoning in the surrounding neighborhood and not have a detrimental effect on traffic patterns and resident safety. The maximum number of scoring points in this category shall be ten (10) points; (2) Planned community outreach and education strategies for the knowledge of and abuse of substances on behalf of the proposed marihuana retailer shall be ten (10) points; (3) Whether the applicant or its stakeholders have made, or plan to make, significant physical improvements with an effort to incorporate sustainable elements into the building housing the marihuana retailer, including plans to eliminate or minimize traffic, noise, and odor effects on the surrounding neighborhood. The maximum number of scoring points in this category shall be ten (10) points; (4) Whether the applicant has reasonably and tangibly demonstrated it possesses sufficient financial resources to fund, and the requisite business experience to execute, the submitted business plan and other plans required by this Article. The maximum number of scoring points in this category shall be ten (10) points; (5) Whether the applicant has applied for and proposes to co-locate a marihuana retailer. The maximum number of scoring points in this category shall be ten (10) points; (6) Whether adequate off-street parking is provided by the applicant consistent with zoning ordinance requirements. The maximum number of scoring points in this category shall be ten (10) points; (7) Whether the proposed establishment will have a detrimental impact on children and areas where children congregate in the city or surrounding region, as judged by the proximity of the proposed marihuana retailer to other structures or properties, including any parcel upon which is located an existing school, religious institution, park, playground, or city- owned recreational facility. The maximum number of scoring points in this category shall be ten (10) points, with the maximum points being awarded if the proposed marihuana retailer will be located more than 50% further than the applicable distances provided in Sec. 10-82(A); (8) Whether the applicant has demonstrated an economic commitment to the city by a proposal to create no less than five full-time jobs and proposes a living wage to all employees. The maximum number of scoring points in this category shall be ten (10) points and shall be awarded based on the number of jobs proposed and the pay structure proposed by the applicant; (9) A description of proposed charitable plans to enhance the city, whether through financial Agend Packet - FINAL 48 7 donations or volunteer work. The maximum number of scoring points in this category shall be ten (10) points; (10) Whether the applicant establishment has certifications recognized by the Global Food Safety Initiative (GFSI); Safe Quality Food Program Certification (SQF); Good Manufacturing Practice (GMP); International Organization for Standardization (ISO) 9000; or purchases and/or offers for sale products tested by a lab that has ISO Space 17025 certification. The maximum number of scoring points in this category shall be ten (10) points. (G) Overall scoring and ranking shall be conducted and applied by the city manager, or his/her designee, on the basis of assigned points from zero points to one hundred (100) points with the lowest overall total score as zero (0) points and the highest possible total score being one hundred (100) points. (H) The city manager, or his/her designee, shall select an applicant(s) with the highest scores to be eligible to receive a license to operate one (1) recreational marihuana retailer, upon approval of a special land use permit (SLUP) by the Council. In the event of an evaluation scoring tie that causes there to be more than two applicants who achieve scores sufficient to qualify for a license, the scoring-tied applicants will be entered into a random draw. Those applications randomly selected shall be eligible to receive a license to operate a marihuana retailer, as applicable. In the event that the number of marihuana retailer licenses initially awarded is less than one of each of the two licenses authorized under this Article or subsequently falls below licenses authorized under this Article, the city manager, or his/her designee, shall not be required to score applicants. Instead, the city manager, or his/her shall evaluate applications in the order that they are submitted and shall select applicants to potentially receive licenses for recreational marihuana retailers to an applicant who submits a complete application, receives the approvals required in this Article, receives the approval of a Special Land Use Permit (SLUP) by the Council and otherwise meets the requirements of this Article. However, in no event shall the number of marihuana retailer licenses exceed one (1) per type under this Article. (I) Nothing in this Article is intended to confer a property or other right, duty, privilege or interest in a license of any kind or nature whatsoever including, but not limited to, any claim of entitlement. Sec. 26-507. LICENSE REQUIREMENTS. A marihuana retailer license issued under this Article shall be subject to the following conditions: (A) Compliance with the requirements of this Article, other applicable city ordinances and codes, and applicable state laws; (B) For a marihuana retailer, compliance with the provisions of the MRTMA and any rules promulgated thereunder; (C) Marihuana retailers shall not operate and be open to the public before 9:00 a.m. or after 9:00 p.m. daily; (D) Signs displayed on the exterior and interior of any marihuana retailer shall conform to city ordinance requirements. No signs shall contain the words "marihuana," "marijuana," or "cannabis," nor shall any sign contain marihuana leaves, or green crosses; Agend Packet - FINAL 49
8 (E) Operation of an establishment shall not cause or create, directly or indirectly, any noise, dust, vibration, glare, fumes, or odors constituting a nuisance and which are detectable to normal human senses beyond the boundaries of the property on which the marihuana establishment is operated. (F) A license that is issued under this Article shall be posted at all times inside the marihuana retailer in a conspicuous location near the entrance. (G) All marihuana or any type of license must apply for and receive a Special Land Use Permit from the Council and must comply with all regulations set forth in this ordinance and the requirements for site plan approval and potential approval of a Special Land Use Permit which comports with Article 94 of the Zoning Ordinance Section 7.33 thru 7.37. Sec. 10-87. TRANSFER OF LICENSES. Licensees may transfer a license issued under this Article to a different location in the marihuana zoning area upon receiving written approval from the City Manager, or his/her designee, and the Department pursuant to the MRTMA and rules promulgated by the Department. In order to request municipal approval to transfer a license location, the licensee must make a written request to the city manager, or his/her designee, indicating the current location of the marihuana retailer and the proposed new location. Upon receiving the written request, the city manager, or his/her designee, shall refer a copy of the written request to each of the following for their approval: the police department, the fire department, the zoning and development departments, and the treasurer. No license transfer shall be approved unless each such department or entity gives written approval that the proposed license location meets the standards identified in this Article and the City Council approves the transfer by a majority vote. Sec. 10-88. ANNUAL LICENSE RENEWAL. Once a license is issued under this division, the license holder must go through the license renewal process set forth in this section and is subject to the renewal standards set forth in Sec. 10-89. A review of compliance with the contract and Special land Use Permit shall also be included. (A) Application for an annual license renewal shall be made in writing to the clerk at least sixty (60) days prior to the expiration of an existing license. (B) An application for a license renewal required by this Article shall be made under oath on forms provided by the city clerk and shall contain all the information required in an initial application. (C) An application for a license renewal shall be accompanied by a renewal fee to help defray administrative and enforcement costs associated with the operation of the marihuana retailer, which shall be set by resolution of the Council, but shall not exceed $5,000. (D) Upon receipt of a completed application for a license renewal meeting the requirements of this Article and the license renewal fee, the city clerk shall refer a copy of the renewal application to the police department, the fire department, the zoning and development departments, and the treasurer. (E) No application for a license renewal shall be approved unless: Agend Packet - FINAL 50 9 (1) The police department, the fire department, the zoning and development department or another relevant department have, within the past calendar year, inspected the location for compliance with all state and local building, electrical, fire, mechanical and plumbing requirements; (2) The zoning administrator or another relevant department has confirmed that the location complied with the Mason Zoning Ordinance at the time the license was granted; (3) The licensee possesses the necessary state licenses or approvals, including those issued pursuant to the MRTMA; (4) The licensee has operated the marihuana retailer in accordance with the conditions and requirements of this Article; and (5) The licensee is operating the marihuana retailer in accordance with MRTMA. (F) If written approval of the renewal is given by each department or entity identified in this Article, the Council may approve the annual license renewal. Sec. 10-89. RENEWAL STANDARDS. (A) The Council may object to the renewal of a license for marihuana retailers for one or more of the following reasons: (1) Licensee's failure to comply with all applicable city and state laws concerning health, safety, moral conduct, or public welfare. (2) Licensee's repeated violations of state marihuana laws. (3) Licensee's maintenance of a nuisance upon or in connection with the licensed premises, including but not limited to any of the following: (a) Existing violations of building, electrical, mechanical, plumbing, zoning, health, fire or other applicable regulatory codes; (b) A pattern of patron conduct in the neighborhood of the licensed premises that is in violation of the law and/or disturbs the peace, order, and tranquility of the neighborhood; (c) Failure to maintain the grounds and exterior of the licensed premises, including litter, debris, or refuse blowing or being deposited upon adjoining premises; (d) Entertainment on the licensed premises without a license and/or entertainment which disturbs the peace, order and tranquility in the neighborhood of the licensed premises; (e) Any advertising, promotion or activity in connection with the licensed premises which by its nature causes, creates or contributes to disorder, disobedience to rules, Agend Packet - FINAL 51 10 ordinances or laws, or contributes to the disruption of normal activity of those in the neighborhood of the licensed premises; (f) Numerous police contacts with the licensed premises or the patrons of the premises; (g) Failure to adequately staff and control the premises; and, (h) The conditions or practices of the business present immediate health and safety issues. (4) Licensee's failure to permit the inspection of the licensed premises by the city's agents or employees in connection with the enforcement of the City Code. (5) Licensee’s failure to comply with the terms of its marihuana retailer license or any conditions imposed by the Council at the time of issuance or transfer of the license. (6) Licensee's failure to comply with all standards and plans established and approved by the City Council at the time of original approval or transfer of the license. (7) Licensee's failure to timely pay its taxes or other monies due to the city. (B) In addition to any other reasons set forth in this Article, the city may refuse to issue a license or grant renewal of the license or suspend or revoke the license for any of the following reasons: (1) A material violation of any provision of this Article, Article 94, Zoning, or the licensee's SLUP and contract. (2) Any conviction of a disqualifying felony by the licensee or any stakeholder of the licensee that would disqualify that person from obtaining a state license under the MRTMA. (3) Failure of the licensee to obtain or maintain a license from the state pursuant to section 14 of the MRTMA. (C) Following its review of this material, the Council may adopt a resolution to establish a public hearing date to consider objecting to the renewal of a license for the operation of a marihuana retailer. If such action is taken by the Council, its resolution shall: (1) State the reasons why the City Council is considering action which would result in the city objecting to the license of the MRTMA. (2) State the date, time, and place for the public hearing when the Council will consider taking action to object to the renewal of the license. (3) Direct the city staff to inform the licensee in writing that they may submit any written material for consideration by the Council prior to the public hearing or at the hearing. (4) State that the licensee may appear in person at the hearing or be represented by counsel and that the licensee may present witnesses or written evidence at the hearing. Agend Packet - FINAL 52 11 (5) Direct the licensee shall be served notice by First Class U.S. Mail at least ten (10) days prior to the hearing with a written notice of the hearing. (6) State that the Council shall hold a hearing scheduled with the licensee present. The Council may consider the investigation and other materials prepared by the administration pursuant to Sec. 10-88. (7) State that the Council may also hear from members of the staff, other governmental agencies or the public, and the licensee shall be afforded an opportunity to question those present or give information to the Council. (8) State that the public shall be afforded a reasonable opportunity to comment upon the issues before the Council. (9) State that following the hearing, the Council shall make a written resolution as to its findings and determinations, and shall, by First Class U.S. mail forward a copy of the same to the licensee and the State Department of Licensing and Regulatory Affairs. (D) If the Council determines that a recommendation of non-renewal or a request for revocation is to be filed with the State, it shall forward the following documents to the Department: (1) A certified copy of the Notice of Hearing sent to the licensee. (2) A certified copy of the resolution adopted by the Council objecting to the renewal of the license or requesting that the license be revoked, and if there is a separate Statement of Findings, a certified copy of the Statement of Findings shall be included. (3) A copy of this Article, including the date of the adoption of the ordinance from which this Article was derived and the state of publication of such ordinance. (4) Proof of Service demonstrating that the notice was sent to the licensee. Sec. 10-90. PENALTY. Any person who violates this Article shall be responsible for a municipal civil infraction as defined in Article 1, Sec. 1-13, and the maximum fine of Five Hundred Dollars ($500.00) as provided at Sec. 1-8, General Penalty. Section 42-88 - Exceptions is hereby amended, by adding subsection (9), to read as follows: Sec. 42-88. EXCEPTIONS. Sections 42-86 and 42-87 of the Code of the City of Mason do not apply to any of the following: (A) An object used or possessed by, sold to, or offered for sale to, a person licensed under the Michigan Public Health Code or under the Occupational Code, 1980 PA 299, MCL 339.101 to 339.2721, or any intern, trainee, apprentice, or assistant in the profession licensed under the Michigan Public Health Code or under 1908 PA 299 for use in that profession. Agend Packet - FINAL 53
12 (B) An object sold or offered for sale to any hospital, sanitarium, clinical laboratory, or other health care institution including a penal, correctional, or juvenile detention facility for use in that institution. (C) An object sold or offered for sale to a dealer in medical, dental, surgical, or pharmaceutical supplies. (D) Equipment, a product, or material which may be used in the preparation or smoking of tobacco or smoking herbs other than a controlled substance. (E) A blender, bowl, container, spoon, or mixing device not specifically designed for a use described in Section XX-XX. (F) A hypodermic syringe or needle sold or offered for sale for the purpose of injecting or otherwise treating livestock or other animals. (G) An object sold, offered for sale, or given away by a state or local governmental agency or by a person specifically authorized by a state or local governmental agency to prevent the transmission of infectious agents. (H) Any person suffering from diabetes, asthma, or any other medical condition requiring self- injection. (I) Any person 21 years or older who is otherwise in compliance with the provisions of the Michigan Regulation and Taxation of Marihuana Act, MCL 333.27955. Section 42-89 - Use and possession of marihuana is hereby amended by amending the title and amending subsection (a) to read as follows: Sec. 42-89. USE AND POSSESSION OF MARIHUANA BY PERSONS UNDER THE AGE OF 21. (A) No person under the age of 21 shall use or have in his/her possession or under his/her control, marihuana or cannabis as defined by MCL 333.7106 unless pursuant to a valid prescription or order of a practitioner, or except as otherwise authorized by article 7 of the Public Health Code. (B) A person who violates subsection (A) of this section shall be guilty of a misdemeanor. This ordinance shall become effective 20 days after adoption and that the above ordinance be passed to a second reading. Agend Packet - FINAL 54