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HomeMy WebLinkAbout10/13/2014 RegularCity of Springfield Special Regular Meeting MINUTES OF THE SPECIAL REGULAR MEETING OF THE SPRINGFIELD CITY COUNCIL HELD MONDAY OCTOBER 13, 2014 The City of Springfield Council met in special regular session in the Council Chambers, 225 Fifth Street, Springfield, Oregon, on Monday, October 13, 2014 at 7:15 p.m., with Mayor Lundberg presiding. ATTENDANCE Present were Mayor Lundberg and Councilors VanGordon, Wylie, Moore, Ralston, and Woodrow. Also present were City Manager Gino Grimaldi, Assistant City Manager Jeff Towery, City Attorney Lauren King, City Recorder Amy Sowa and members of the staff. PUBLIC HEARINGS - Please limit comments to 3 minutes. Request to speak cards are available at both entrances. Please present cards to City Recorder. Speakers may not yield their time to others. 1. Marijuana Tax. AN ORDINANCE ESTABLISHING A GROSS RECEIPTS TAX ON THE SALE OF MARIJUANA IN THE CITY OF SPRINGFIELD Finance Director Bob Duey presented this item. The purpose of this regular session public hearing is to discuss a proposed ordinance by the City being considered as a response to State Ballot Measure 91. At a previous work session Council directed staff to prepare a proposed ordinance that would enact a gross sales receipt tax on the sale of marijuana by those that are licensed by the State of Oregon and conducting business with the boundaries of Springfield. If passed by the voters, Ballot Measure 91 will allow adults 21 or older to recreationally use or grow marijuana. While Ballot Measure 91 is intended to only regulate recreational marijuana, the Measure presents language that may impact local governments' ability to charge taxes or fees on recreational and medical marijuana. The proposed ordinance is being considered at this time in response to the State Measure's intent that it would prohibit certain future regulatory and taxing authority on local jurisdictions upon the passage of the measure. The ordinance is for a gross receipts sales tax on licensed recreational marijuana sales within the City of Springfield. A rate has not been set at this time, but can be set later through resolution by the Council. This ordinance includes medical marijuana as a placeholder. Council had asked to leave out medical marijuana, but based on the uncertainty of any litigation from the measure or the legislative session next spring, staff left medical marijuana in the ordinance at this time. If Council chose, they could remove medical marijuana from the ordinance at a later date, or choose not to adopt a fee for medical marijuana. If directed by Council, staff will bring this ordinance back for a second reading and adoption on October 20, 2014. If adopted by Council, the ordinance would take effect 30 days after adoption. Mayor Lundberg opened the public hearing 1. Dan Larsen, Springfield, OR. Mr. Larsen noted that he had a Bachelor's degree in Sociology from the University of Oregon, so had some authority in his remarks. This is a bad law and taxing is a bag thing. He noted a number of incidents of injury, fires and death due to people City of Springfield Council Regular Meeting Minutes October 13, 2014 Page 2 under the influence of marijuana. He recommended the Council pass a resolution, along with the tax, condemning marijuana and make a public statement as leaders of the community that they do not support the (marijuana) law. Marijuana takes away initiative and drive. High school drop-out rates will increase if this goes into law. If any tax is put on marijuana, the drug cartels will undercut our taxes. He recommends a 50-100% tax on marijuana and keep it out of Springfield. The law already suggests it is bad because it sets aside 60% of the revenue for law enforcement and drug rehabilitation. People don't seek treatment until a problem exists. Marijuana is still considered a controlled substance by the federal government. 2. Andrew Nonnenmacher, Eugene OR. Mr. Nonnenmacher said he is speaking on behalf of Compassion Center, a non-profit organization, and the medical marijuana community in general. He serves as the director of Compassion Center and many of their patients are from Springfield. They oppose grandfathering this tax. The idea of taxing medical marijuana is not appropriate because prescription drugs are not taxed. Medical marijuana is recommended by a doctor. They hold classes about using marijuana as medicine and not for recreational use. On behalf of the medical marijuana community, he is opposed that aspect of the proposed tax. Mayor Lundberg closed the public hearing. ADJOURNMENT The meeting was adjourned 7:24 p.m. Minutes Recorder Amy Sowa L 7i Christine L. Lundberg Mayor Attest: ajZ77k_ City Rec • er