Approval of Agenda

Council Member Scheid made a motion to approve the agenda as presented, supported by Council Member Feehan.

Mayor Gunderson stated the city manager would like to add Item C to the Consent Agenda to approve a payment to the contractor of 50% of the cost, approximately $34,000, for the Front Street police garage roof project. 

The question on the motion was called and the result of the voting is as follows:

            Ayes:               Council Members Miller, Meyers, Scheid, Feehan and Gunderson

            Nays:               None

Public Comments

There were no public comments. 

Consent Agenda

Informational update on the Medical Marijuana Act and approved rules

City Manager Niemela stated the topic came up at the Planning Commission meeting.  They had the opportunity to speak to the Planning Commission and they felt it might be helpful for them to have additional information.  It is important for the city council to be involved and listen to the discussions.  The city attorney is also here to talk about city responsibilities for the medical marijuana process. 

Brad Ratliff stated they would like to open a medical marijuana facility in the city.  They like the location.  They talked to the Planning Commission about a 500 plant grow facility to distribute to a provisioning center and dispensaries throughout the state.  He is a cancer nurse at Spectrum Health.  She is involved with cancer at a biotech company.  They see all the need for medical cannabis.  They are searching for a place to open up a grow facility.  They hope to do it here.  They like the community. 

Attorney Bob Hendricks stated that he spoke to council on February 21 of 2017.  With the firm Rigley, Hoffman and Hendricks, he has spent the last several years involved with the legalization of marijuana.  Last time, they had detailed conversation about the status of legalization of marijuana.  The governor had not appointed the five member board.   The concern of municipalities was when would the rules come out?  The rules were promulgated in early December this year with additional information. On December 15, the window for applications with LARA opened and they are accepting applications for medical marijuana facilities. About 400 applications for various facilities were filed with the State of Michigan.  LARA is looking at them carefully.  On March 27, they will announce the first application approvals and licenses.  There is progress for the implementation of the Facilities Licensing Act.  There was recognition that the old system was not working from 2008.  They believed there was a way to provide safe access to patients with regulatory oversight.  He would be happy to provide any information they need if they decide to move forward adopting an ordinance.

Council Member Miller asked what is going on at the federal level?

Mr. Hendricks stated not much has changed at the Federal level.  Attorney General Sessions has  withdrawn a couple of memos from the prior Department of Justice.  There were statements of policy with no legal force.  Sessions said he didn’t think medical marijuana was a good idea.  Federal resources cannot be used to prosecute medical marijuana in any states where it is legalized.  They are trying to figure out what to do about the banking problem, as the cash cannot be deposited in federally insured banks. 

Lisa Ratliff stated from a biotech aspect, check out GW Pharmaceutical, as they are in clinical trials for epilepsy and pediatrics.  That will involve the FDA.    

Mr. Hendricks stated there is a growing body of evidence that medical marijuana is very effective in treatment and has positive effects with the side effects of chemotherapy and loss of sleep.  Momentum continues to move toward legalization of marijuana at the federal level.  There is a tremendous sharing network.  This is not the marijuana from the 70’s.  CBD and THC have different effects, depending on the ratio. 

Council Member Scheid asked how many states have legalized?

Mr. Henricks stated there are 30 with a couple having limited use.

Council Member Scheid asked about the federal government regulations.

Mr. Hendricks stated that has not changed since 1970.  With the Blumenauer Law, they cannot spend money on medical marijuana.  There is broad bipartisan support.  The only current lawful activity in Michigan is a caregiver and patients with caregiver.  By the end of 2018 there will be 500-700 facilities covering all five areas.  All products in the system are tracked through a software system, from beginning to harvest to sale.  It is followed to a processor, or when it is sold to a provisioning center to sell to patients.  Only people who have patient cards can buy from provisional centers.

Council Member Scheid asked about the background for those in provisional centers?

Mr. Hendricks stated it was mostly self-taught knowledge.

Mayor Gunderson asked if the federal government can use monies that came from taking them down or busting them?

Mr. Hendricks asked if that would be forfeitures?  He doesn’t know those answers.  Most forfeitures come from State activities.  They cannot use Federal funds.   

Mayor Gunderson asked if their employers support this?

Mr. Ratliff stated they do not.  It would be $500,000 investment to start and it would be on 17 acres.

Mr. Hendricks stated the opt in ordinance would have to allow it.

Mrs. Ratliff stated they would request a 500 plant license.  They want to make it small to manage it.  They want medication that is good quality that is controlled.

Mayor Gunderson asked if it would be totally out of their control when it leaves their facility?  They stated they want patients to have the proper medication, so would it return back to Belding?  Or whoever gets it will get the proper product? 

Mr. Hendricks stated they could choose their customers based on their preference.  They can brand the products so patients will know.  There is a fair amount of information that follows the products. 

Mr. Ratliff stated it would be an organic facility with solar so it would be totally green, with no waste and chemical free. 

Mayor Gunderson asked if there were restrictions on setting up what he wants?

City Manager Niemela stated it must be located in an agricultural or industrial district. 

Mayor Gunderson asked if it had to be a certain distance from anything?

Mr. Hendricks stated it does not establish limitations, but local municipalities can establish controls.

Mr. Kraker stated local governments make decisions on how they operate.  The State tracks seeds to sale and testing.  The approval process lays out those types of things. 

Mr. Hendricks stated the excise taxes will go to the Department of Treasury and State Police for enforcement, as well as a portion distributed to local jurisdictions.  There is an annual license.  Violations are reported to the state. 

Council Member Miller asked with going organic, would there be the potential of run off?  Are there plans for filtration?

The plants consume the water they were fed.  There is no nitrogen.  They will pressurize the facility and it will be filtered.  Ceramic bulbs are much more efficient than LED.

Council Member Miller stated when they look at the potential of going recreational in Michigan, it would be the last gold rush when that happens.  Is the intention really medical, or is it a bridge for that to happen.

Mrs. Ratliff stated it is specifically medical.  When it becomes recreational, they will have the whole other element to deal with. 

Mr. Hendricks stated it would be on the ballot and the municipality would have some control.

Mr. Kraker stated as part of the approval process, they can impose conditions on operations.

Mr. Hendricks stated there is a lot of variety of knowledge within this industry.  Some study it more deeply. Brad and Lisa care about the product from a medical perspective. 

Mrs. Ratliff stated she will vet it herself and change for the good.    

Council Member Scheid stated he realized they would take steps to regulate it themselves, but there will be a lot of people out there that will make it hard for them.  He asked how far along the guidelines for Michigan were?  Someone not doing it well will make it look bad for everyone.  There are a lot of things that can go wrong.  With the amount of money they are spending, they may hurt themselves immensely.  They really need to boil it down.  He appreciates them coming in. 

Mrs. Ratliff stated there has to be pioneers to take the risk. 

Mr. Hendricks stated President Nixon had a blue ribbon panel to study marijuana.  That panel recommended that marijuana should be removed from the controlled substance list.  It may have been an error that it was put on the list.    

Sam Mason stated the Federal government can’t use Federal money.  Pfizer works with the FDA, so could private money be used to control that?

Mr. Hendricks stated he doesn’t know.  He doesn’t think private money is going to Federal.

Mr. Mason stated there is software to record from step to step. At the State and Federal level, there is no software set up to regulate it.

Mr. Hendricks stated there is no Federal system to track marijuana.  The metric system was approved in Michigan, and there are a number of software programs available.  He went to a LARA training session, and they talked about setting up systems to integrate to metric. Applicants must submit a technology plan for their license. 

Mr. Mason asked how many other places in the place of Michigan has he worked with in the last six to twelve months?

Mr. Hendricks stated he is aware of about 55 municipalities that have the opt in ordinance.  Another 100 are considering it actively.  A few have opted out.  There has been a range of approval activity in the last year.  A lot are unlimited.  It is controlled by zoning.

John Sparks asked if it was reasonable to believe they would not get further guidance from Lansing on ordinance development?

Mr. Hendricks stated they will leave that activity to local municipalities, and not provide that guidance. 

Council Member Scheid asked where they were from and how many other places they had tried?

Mr. Ratliff stated he was from Sparta, and lives near Bostwick Lake.  They checked with Plainfield Township but they decided against it.  They tried six jurisdictions and with some they didn’t get through the front door.  They chose this as they are close by. 

Attorney Randy Kraker stated it was a good discussion.  This is still purely medical marijuana.  The rules were adopted in December regarding the details of operation and there is severe scrutiny in the licensing process.  Regarding the opt in discussion, if they do nothing at all, it is not permitted.  If they opt in they have control of what they permit.  They have the ability to regulate through the zoning and regulatory ordinance how business will be conducted.  The grow facility must be located in an area zoned industrial or agricultural.  They control this.  It is pretty much wide open for them to decide.  They have a lot of authority in this situation. 

Council Member Meyers asked if they were to approve it and they limited it to one or two, does that open them up to discrimination, in having to treat everyone the same?

Mr. Kraker stated it invites them to do that, so don’t have that fear.  They can pick and choose winners.  They don’t have to treat them the same. 

Council Member Meyers stated it is medical for now, but can they limit it to medical?

Mr. Kraker stated it is currently only medical.  If the voters decide to decriminalize, their medical would stick.  There would be new rules for recreational marijuana.  One would not necessarily lead to the other. 

Mr. Hendricks stated the ballot initiative provides a municipal approval mechanism. If the township says no for medical, that is the end of it.  Under the recreational proposal, if the local says no, the local citizenry can take a vote on it. 

Mr. Kraker stated that would trump elected officials.  They would have to approve, unless the people overrule it. 

Mr. Hendricks stated what he hoped to do is provide the factual information he could.  He would like to advocate for the Ratliffs in the future. 

Mayor Gunderson stated they are open to entertain it and listen to it.  They are trying to be educated.  He thanked them for that. 

Reports by Council Liaisons

Council Member Scheid had no report.

Council Member Feehan had no report.

Council Member Miller thanked the Planning Commission for coming tonight.  As for the next steps, they will have to decide if they want the Planning Commission to review it more. 

Council Member Meyers stated the Housing Commission met on February 15.  They went over maintenance, occupancy, financials and the rental demonstration program.  There was discussion on the Woodhaven sprinkler system, the 2017/18 Capital Fund Program and the 2018 subsidy level.  The Rec Board met on February 12 and Mr. Niemela will give an update.

Mayor Gunderson had no report. 

Unfinished Business

There was no unfinished business.

New Business

1. Use of city property request for Beatnik Bazaar/Farmers Market

The City Clerk read the preamble to the resolution.

Council Member Scheid moved the passage of the resolution and the motion was supported by Council Member Feehan.

Public Comments

Bonnie Walker, 120 Kiddville, asked what the game plan was for the sidewalk?

City Manager Niemela stated the city is relying on the zoning ordinance and charter as it relates to the sidewalks, which are required in all zoning districts.  When a property is being improved, sidewalks are being pursued.  You are required to add a sidewalk. 

Ms. Walker asked if he lived on the outskirts of town and the city owns an adjacent lot, would the city add sidewalk?

City Manager Niemela stated the city would if they made an improvement to the lot.   Improvement triggers the sidewalk.  If the city put a building on their lot, they would have to put a sidewalk in. 

Dale Kremsreiter stated they live at 120 Kiddville.  They have maintained the city lot for the last four years.  They want to put a garage up.  They contacted the city to take a tree down, and they didn’t.

City Manager Niemela stated the city lot is a public right of way.  The city has abandoned a few roads, a paper road.  Council would then call that excess property and make it available to adjacent property owners.  Its intended use would be a street.  Some residents come to the Planning Commission to ask for a variance.  Council had discussions on having a walkable community.  It is a council priority and they want to pursue expanding the sidewalks. There are some sidewalks in their neighborhood.  If no one does anything, that connectivity would not be made.  In some cases it makes sense not to have sidewalk, if you have a ravine on your property.  It is on a case by case basis.  They would have every right to come to the Planning Commission.  He has no authority to waive a sidewalk being put in. 

Mayor Gunderson asked that they set up a time to meet with Mr. Niemela.  The Planning Commission would make that determination.  He asked that they go through the proper process.  The city manager runs the daily operations.  Regulations are through the boards and commissions.  They should call the city hall about the tree.

Ms. Walker that the neighbors have been cited about dogs and garbage in the yard.  The city cited her for trying to make improvements.  The city does not welcome new people in. 

City Manager Niemela stated they can check on that.  They may be repeat offences.

Mr. Kraker stated on the financial end of the medical marijuana, the city could adopt a fee of $5,000 for the application and a $5,000 annual license fee for administrative costs.  Excise tax of 3% is based on what projections are in sales in the first year.  It may be a billion dollar business in Michigan.  The excise tax must be earmarked to go back to municipalities based on the number of licenses.  It may be another $15,000 per year on one license. 

Sam Mason, 516 W. May, asked as a member of the Planning Commission, business owner and individual, is there a time period that they have to agree to opt in or opt out? 

Mr. Kraker stated the city does not have to opt out.  You are out unless you opt in.  There is no time to opt in.  You create your own rules.  The zoning ordinance would have to be amended to make it an approved use.  Then the city would adopt a regulatory ordinance with criteria.  It can be location specific.    

Police Chief Nelson stated, regarding 120 Kiddville, they did a remodel at their residence.  They got a warning notice for stuff piled in the driveway.  An officer spoke with them about it and said if they don’t want to make multiple trips to the landfill, put it in the garage until they want to go. That was acceptable.  They contacted the police department about an unlicensed vehicle in the next yard.  The license was in the back window and the vehicle was registered.  The dog issues were addressed.  Code enforcement makes a visit and notes the violations present.  As a city, they have done everything they can to make them feel accepted into the community.  The sidewalk issue is a part of the ordinance.  It is a good thing to make it a walkable community.  The city has done what they can for them.  The police department goes up there when they call.    

Council Member Meyers stated he would have frustration if it was a constant burr in his side, and he wants to make sure the city does everything it can for them. 

Police Chief Nelson stated code enforcement is a thankless job, but they do the best they can. 

Enola Brown stated she hears them discounting some of their concerns, but she asks that they take their concern about the trees seriously.  In her case, the city did come and look at the tree and they said they would not remove it.  The tree hit the house.  They should be more proactive in that department.  They had $10,000 worth of damage to their house.  She took their comments to heart.  She wishes each of them would act in a more positive manner.  The city is more of a sleeper community, as they go to their jobs, but they should neighbor to stay safe.  She asked that they please listen to them.  Regarding the medical marijuana request, is that the right location for that facility?  Is it the right thing for our community?  It should not be a financial decision. 

City Manager Comments

City Manager Niemela stated the City got $500 or the $7,500 requested in ICCF funding for the trail along the wall at the Gathering Place.  They have pegged the price for the trail, benches and lighting to the mural at $30,000.  He will come to the council to move forward on that project. The funding from Electrolux would be used to make improvements on the property.  The City was unsuccessful with the grant application.  He is inclined to show progress on that park.  The City will do the prep work for the trail, except paving it.  If they cannot make it by May for the mural dedication, they will wait until after that.  The lighting and pathway are two separate projects.  The kayak launch will be located in East Riverside Park.  The kayak group thought it would be there anyway, not Central Riverside Park. They have asked the DNR to change the location.  Jennifer Nicodemus did a project at Lightning Bend last year.  This year they want a 5K run in Lightning Bend.  They will provide liability through the Lansing YMCA.  It will be held on May 19^th  in the morning.  They will get the trail cleared to run on in May.  A letter was received from a young gentleman, and he talked to the Rec Board, but they did not make a final decision regarding a dog park.  They talked about locations.  The Rec Board created a priority list of projects and the dog park has not made the cut for the recommendations.  He will respond back to the young gentleman.  It is in discussion, but there is no timetable.  He had distributed an information piece from MML regarding the Capital Conference on March 20 and 21.  They have council on the 20^th, but the bulk of the program is on the 21^st.  If anyone is interested, they will register them to attend.

Council Comments

Council Member Feehan thanked DPW for their work for the last snow storm, as they did a nice job. 

City Manager Niemela stated the city is not removing snow piles, as it costs a lot to move them if they are not interfering with parking.  He has not had complaints.  The snow is piled where people don’t park.  They did a very detailed study on how expenditures are appropriated.  That operation is from the General Fund.  They have closed the entrances to Demorest as private haulers were dumping snow there.  The Demorest lot gets full of snow and it pushes up to the baseball season and then the city has to haul the snow again if it is not melted.  There is no return on investment.

Council Miller had no comments.

Council Member Meyers stated he had a comment on the sidewalk issue.  The city has made a priority to be a walkable community.  They need to figure out how to get there without piecemealing one piece at a time.  They should put together a comprehensive plan and take it to the people.  Let them understand what the cost is.  He has been at the Planning Commission when they have allowed some not to install sidewalks.  When variances are given, it always opens it up to being fair across the board to the city.  It is the responsibility of the manager and council to come up with those plans.

Mayor Gunderson stated the Planning Commission has been working on this with the city manager.  It has been an ongoing situation for years.

Council Member Scheid had no comments. 

Mayor Gunderson stated he received a letter from a resident regarding a water bill, which he delegated to the city manager.  There is a committee for the library celebration, with a meeting tomorrow night, and the intent is to do the mural dedication and the 100 Year Celebration on the same day.  He should have brought up the DNR Rail Trail, as they have received funding to finish the trail from Belding to Greenville, Belding to Lowell to Foreman Street, and Montcalm Avenue in Lowell to Saranac.  LARA is in charge of getting it through Lowell.  They did get funding through Trust Fund grants, and the $1.5M from MDOT they kept.  Crushed limestone will be used.  They are working on grade inspections.  Construction will start this fall.  There was a complaint from residents Bonnie Walker and Dale Kremsreiter, and he totally listened to everything.  The one thing that was troubling was the fact that Mr. Kremsreiter made the comment that a couple of planning commission members told him that the ordinance was all screwed up and that instead of shedding a negative light on the city, they should work on changing the things that they feel are screwed up.  They have the right of free speech, however, they should be putting a positive light on the city and not a negative light if they are trying to make the city move forward.   He thanked everyone for coming tonight.

Adjournment 

Council Member Scheid moved to adjourn the meeting, supported by Council Member Feehan.

Ayes:               Council Members Miller, Meyers, Scheid, Feehan and Gunderson

            Nays:               None

The Mayor adjourned the meeting at 9:17 p.m.