Medical Marijuana Dispensary local compliance and licensing

Published: June 24th, 2010

Nederland Board of Trustees Meeting

The Town of Nederland held its regular Board of Trustees (BOT) Meeting on Tuesday, June 15, at 7:00 p.m. in the multi-purpose room of the Nederland Community Center.

Attending the meeting were Mayor Sumaya Abu-Haidar, Mayor Pro-Tem Joe Gierlach, and Trustees Robert Joseph, Keith Nowicki, Chris Perret, and Marci Wheelock.  Town Attorney Carmen Beery, Clerk Teresa Myers, and Treasurer Eva Forberger were also in attendance. Trustee Mueller arrived later.

The Warrants section of the Consent Agenda and the Regular Meeting Minutes of June 1, 2010, with a minor line item correction were unanimously approved.

Sidewalk Completion, Solar Homes Tour and July 4th Parade

Tim Underwood, Public Works Director, was present to discuss the progress of the Wastewater Treatment Plant. He also commented on the Town’s sidewalks being nearly completed with a set completion date of June 24. The Town Clean-Up was a very successful event, collecting about 300 cubic yards of trash.

In his Community Center Foundation report, Trustee Gierlach remarked that the Community Center will be included on the Boulder County Solar and Green Homes Tour as the Center is an outstanding “green” building.

Trustee Wheelock will be coordinating the annual Fourth of July Parade through downtown which will begin at noon that Sunday.

In her Mayor’s Report, Abu-Haidar commented that the Town received approximately 60 applications for the currently vacant position of Town Administrator. After further vetting, the top two candidates’ names will be made public. Finalist interviews will take place in mid-July. Her further comments included collaboration with the Boulder County Commissioners in locating and establishing a safe shooting range.

Copier Lease and PROSAB Appointments

Action Item One was a decision on the four bids received for a Town Hall copier lease agreement to begin in July. The Town’s current budget allots $500 a month for a copier. Canon’s lease agreement was unanimously approved at the cost of $200 for the installation of a fax line and $200 a month for 5000 copies or impressions.

For Action Item Two Trustee Nowicki presented the names of individuals recommended for appointment by the Parks, Recreation and Open Space Advisory Board (PROSAB) to their board: William Alan Brewer, Ben Dereume, Scott Hammers, and Starr Jamison. Each appointment is for a term of three years and BOT unanimously approved the appointments.

MMD (Medical Marijuana Dispensary) Local Compliance and Licensing

Discussion Agenda Item One was a “Discussion on Town-issued Letter for MMD State Licensing Compliance,” meant to provide staff with instruction on how the Board would like to move forward.

Mayor Abu-Haidar requested that Town Attorney Beery present a background on the issue. Beery researched the issue with the Colorado Municipal League (CML) and concluded that local compliance was the first step in establishing a MMD business.

Local compliance in Nederland means that an existing medical marijuana dispensary must apply for a business license by Thursday, July 1.

Other legal requirements must also be met for a MMD to remain in business: a state license must be obtained by August 1, 2010; and verification that a dispensary or medical marijuana center grows 70% of its own product must be met by September 1, 2010. Those are the current requirements for a MMD to continue in existence and remain lawful through July 1, 2011.

Beery referred to a draft letter by the Town verifying compliance with Nederland’s Municipal Code to be sent out to local dispensary owners. Town Clerk Meyers will also send out business license reminders. Meyers stated that three of the seven Town dispensaries had already completed their business license forms.

Seventeen people from the standing-room-only crowd at the meeting had signed up to offer comments on the licensing issue, thanking Nederland for acting quickly to keep the industry in town. It was repeatedly stated that the MMD business had “revitalized Ned” and it was supported as “the best economic stimulus” for the town.

A short discussion followed about zoning and also whether a home-based grower could get a license. Another question raised concerned possibly combining licenses if the grow and dispensary locations were different. Town Clerk Meyers responded that two licenses would be required in that situation, as a business license was not transferrable from either location to location or person to person.

Wastewater Treatment Plant Loan

After a short recess by the Board, Item Two, “Discussion of Construction Loan Bids/Vendors to choose direction (vendor) to work with and seek USDA approval,” was opened regarding the Wastewater Treatment Plant (WTP). Interim financing for the facility loan of approximately $4,000,000 for construction was a requirement of the existing WTP’s USDA loan.

Treasurer Forberger explained that of the four bids received, including origination loan fees and interest, Mutual of Omaha Bank submitted the lowest bid, approximately $1,500 less in cost than the next lowest bidder, Wells Fargo Securities, LLC. A spokesman for Wells Fargo, a local business, requested that the Board consider the past business they have given the town and also keep the financing in town. The Board tabled the item for further discussion.

Water Meter Reading System

Next on the agenda was Item Three, “Discussion of various options for installing and retrofitting all Town Water Meters and radio transponders to provide drive-by meter reading system.”

In 2009 the Town of Nederland received a DOLA grant of $600,000 for expanding the existing water treatment plant by adding pretreatment and microfiltration systems, and water meter installations. In late 2009 the Town entered into a service contract with TEC to prepare documentation to bid out the water meter automation project. Only one bid by Velocity was received for the project.

Staff explored alternatives for the project and after contacting other potential bidders, recommended a combination scenario in hiring an established project-management company, while using local companies for the actual installation and retrofit of the water meters.

Director Underwood displayed a water meter manufactured by a Boulder-based company that could be purchased and conceivably installed by August. The water meter is compatible with all output, is designed in a propeller style which keeps it from freezing, and comes with free software.

The Board decided to move forward in further investigating a combination scenario for the water meter project.

DDA Parking Study and Community Center Drain Repair

Item Four was a discussion on the “DDA Commissioned Downtown Parking Study.” The Nederland Downtown Development Authority (DDA) commissioned a parking study to improve parking scenarios in the downtown area.

After a lengthy discussion of the study information, it was decided that a work session was needed for further clarification of the data before putting together an action plan.

Item Five was “Discussion of contract with Church OWC to repair perimeter drain at Community Center.” In May the Community Center’s weight room was flooded, apparently due to high ground-water conditions. Director Underwood requested that the Board provide direction on implementing a fix for the unbudgeted repair. It was decided that further investigation needed to be done before approving either a short- or long-term repair.

Treasurer Forberger brought up a last agenda item regarding additional money requested by Loris and Associates for management of the sidewalk project. BOT previously approved $60,000 to Loris in providing a fixed amount for the project management. It was noted that a formal contract was never drawn up for these services.

Mayor Abu-Haidar requested that the issue be listed as a discussion item on the next agenda.

Executive Session and Adjournment

The Board then entered into an executive session to confer with the Town Attorney and Staff regarding “receiving legal advice concerning CDPHE permit compliance.” The meeting was scheduled to adjourn around 10:30 p.m.

The next scheduled BOT meeting will be on Tuesday, July 6, at 7:00 p.m. at the Nederland Community Center. Please check the town’s website, www.town.nederland.co.us, for more information and to verify the meeting date.

This entry was posted on Thursday, June 24th, 2010 at 5:37 pm and is filed under Community, Government, News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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