Mayor Tom Patterson Mayor Pro-Tern Gregg Trustee Bauer Trustee Gregg Trustee Jones Trustee Shepard Trustee Dowker Trustee Hindman

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1 March 27,2012 Page 1 of9 Board Members Present: Mayor Tom Patterson Mayor Pro-Tern Gregg Trustee Bauer Trustee Gregg Trustee Jones Trustee Shepard Trustee Dowker Trustee Hindman Staff Members Present: Town Administrator Mike Hart Attorney Greg Bell Planner Tim Katers Town Clerk Mary Cowdin Administrative Clerk lory Haslett The Mayor led the Pledge of Allegiance. None. Citizen Participation Reports Trustee Dowker reported on Alex Sabados Day of Kindness. wonderful and that the Town was packed with orange balloons. back for Berthoud. She said that the turnout was It was a great positive pat on the Trustee Hindman stated that the Town did look very special on Saturday. He will send out report on Open Lands forum that he recently attended. Larimer County is proposing budget cuts in all departments as a result of the vote against the jail. Mayor Pro Tern Gregg wished to express his appreciation Berthoud Surveyor for hosting the candidate forum. for Berthoud Area Chamber and the Mayor Patterson asked about the purple toilet from Phat Chicks that arrived in his yard. Hindman relayed that it is a fundraiser. Trustee Trustee Bauer reported that he attended the open house at Trustee Hindman's wonderfully attended. home, which was Administrator Hart welcomed to Attorney Greg Bell and thanked him for all his work on the Medical Marijuana Oridinance and the Development Code. Administrator Hart announced that a new employee, Tamiko from Home State Bank, starting next week in the front office.

2 March 27,2012 Page 2 of9 Administrator Hart also reported on the status of the Pioneer Park project. Updated plans were resubmitted to Great Outdoors Colorado (GOCO) that included a larger shelter, indoor restrooms, concession area and features. GOCO gave the project its final approval two weeks ago. As a result, the consultant has his entire team moving full steam ahead with the goal to get project out to bid in April and construction beginning in May. It is planned to be completed around Labor Day of this year. Administrator Hart next reported that the reservoir by-pass is about finished. Administrator Hart reminded the Board that the 'next regular meeting on April 10 will be the changing of the guard between outgoing and incoming Trustees. At that meeting there will be new appointments of Trustees to boards and commissions. Lastly, Administrator Hart reported on the proposed regional recreation center and his meeting this week with consultants. The Town needs to get through process quickly to get the recreation center issues on the ballot. The team responsible for moving the recreation center forward would include two Trustees, two staff members, two Parks & Recreation Board members and two at large members, as well as the Town Administrator. Mayor Patterson welcomed Sherriff Justin Smith and Investigator Josh Sheldon from Larimer County.: Consent Agenda Trustee Dowker moved to approve the Consent Agenda, excluding the March 13, 2012 minutes. Trustee Bauer seconded the motion. Motion passed unanimously. Trustee Bauer moved to approve the minutes from the March 13, 2012 meeting. Shepard seconded the motion. Motion passed with Trustee Hindman abstaining. Trustee Public Hearing - Medical Marijuana Mayor Patterson opening the public hearing opened at 7: 12 PM. Attorney Gregg Bell first explained that the proposed code is separate from the proposed ordinance. It is his expectation that tonight the Board will hear from the public first and then have a second reading. Justin Smith, Larimer County Sherriff, addressed the Board. He stated that he appreciated the opportunity to speak to the Board and brought Investigator Sheldon, who has relative experience through his assignment to the Crime Impact Unit.

3 March 27,2012 Page 3 of9 Sherriff Smith stated that when Amendment 20 originally passed, he was skeptical and he thought there would be a significant increase in illegal drug use. However, he saw it stick to the original intent. Then in 2008, the Department of Justice left the door open with a significant change in policy. At that time, no one knew the rules and what to expect. In 2011, after Sherriff Smith took office, he attended the TEAM Fort Collins symposium where they discussed the impacts of marijuana on the CSU campus. He heard that Amendment 20 moved away from original intent and was interpreted to allow commercial marijuana growing operations. There was a movement in Fort Collins to put the medical marijuana issue on the local ballot, at which time commercial growers brought in an out-of-state union to keep the dispensaries open. Sherriff Smith stated that he knew that there was more marijuana related crime. According to his records in , incidents involving medical marijuana went up 20% when all other crimes went down. He further stated that crimes in areas with commercial dispensaries went up 40% and school suspensions went through the roof. Sherriff Smith told the Board that when deputies went to take down large grow operations, the chemicals used to grow marijuana and the molds associated with production, it exposed deputies to same things that are associated with "meth houses". He explained that law enforcement was assured that State would control medical marijuana from seed to sale, instead the State has relied on self reporting by growerslbusinesses. The Sherriff went on to give several examples of how ineffective regulation by the State has been in his opinion. Investigator Josh Sheldon addressed the Board. Investigator Sheldon stated that he has a wide range of experience in his 13 years in law enforcement. In his opinion, those who need medical marijuana will always be able to have access to it. He believes that if Berthoud allows dispensaries to operate it could become a drug capital. Investigator Sheldon explained that "source city" was a term used by law enforcement for towns like Los Angeles and El Paso, but now Northern Colorado is now considered a source center because of the production in the area. Sherriff Smith stated that Fort Collins chose to put the dispensary issue to the voters. He feels that if on a ballot in Berthoud, the local citizens go back through it like they did in Fort Collins. Trustee Dowker asked about the differences between grow operations and store front dispensaries. She further inquired about the links from grow operations to store front and the ability to track the distribution and any problems. Investigator Sheldon explained that law enforcement is able to track it through receipts. Trustee Dowker asked if there were any problems specific to Berthoud.

4 ,--- Town of Berthoud Page 4 of9 Investigator Sheldon stated that they have worked an area on Highway 287 based on complaints from citizens. Sherriff Smith stated that typically they pass any local issues on to local law enforcement. Trustee Dowker asked if there is a plan for better tracking of patients and medical marijuana, perhaps something similar to how concealed weapon permits are tracked. Sherriff Smith stated that there is not currently an effective tracking procedure and that medical marijuana was not set up like other medicines that are regulated. Investigator Sheldon stated that non-enforcement: agencies are currently doing the tracking. _If law enforcement discovers that there are invalid recommendations coming from doctors, they have to go through non-enforcement agencies to take action. Trustee Jones stated that he would like to hear more solutions to the problem and he understands while some people need medical marijuana, others take advantage of it. Joe Coons, th Street Place, addressed the Board and stated that he was glad that the gentlemen from the Larimer County Sherriff's office attended the meeting tonight. He suffers from chronic pain and his doctor won't write a prediction for medical marijuana because it does nothing for his pain. His doctor will not write a prescription for medical marijuana unless a patient is in the end stages of cancer. He thinks that the Town owes it to the residents to put it up to a vote. Michelle Ballinger, owner/operator of Herb's Medicinals addressed the Board. She stated that in her opinion, Sherriff Smith is an official and there is a conflict of interest for him to go after the medical marijuana industry in Fort Collins. She stated that they have never had a problem at their shop and would never serve anyone who didn't adhere to their regulations. In Ms. Ballinger'S opinion, individual caregivers are going to be the problem. When the dispensaries were closed in Fort Collins, those caregivers are now serving patients out of their houses. She said that in her business, they are doing what the law tells them to do and what they believe is morally right. Ms. Ballinger explained that on July 1 of last year, it became mandatory that dispensaries grow 70% of their product and that the other 30% can only be obtained from another licensed dispensary. She stated that as regulations are tightening, the State and medical marijuana operators are doing the best they can. Ms. Ballinger stated that the reason for the closures in Fort Collins was the large number of dispensaries. There were good operators and then there were ones who were not following the law, which it ruined it for all the businesses.

5 Page 5 of9 Ms. Ballinger stated that in Berthoud, fortunately, there is only one dispensary and they have done nothing wrong. She knows that they have had policemen in investigating and they didn't it any differently from any of their other patients. She stated that on Craigslist, under the health and beauty section, there are no less than 100 caregivers selling medical marijuana. According to the regulations, each caregiver can have 5 patients, each with 6 plants. In her opinion is not moral, ethical or legal for a caregiver to sell patients plants. Ms. Ballinger stated that she and the Sherriff are not interpreting the laws the same. Her business follows the laws as per the State allows. Mayor Patterson explained that tonight's issue is not whether to allow dispensaries, it is to address the regulation of those dispensaries. Mayor Patterson closed the public comment portion of the hearing at 7:57 PM. Trustee Bauer wanted to echo Mayor Patterson's comments. The Board is here tonight to discuss regulatory code and zoning of medical marijuana dispensaries in Berthoud. Trustee Bauer noted that Sherriff Smith did not comment on the proposed code. Trustee Bauer asked about the code section addressing a home caregiver providing evidence to the Town that they are allowed to do business at that location. Attorney Bell answered that a caregiver must show evidence of the owner of the property's consent. Trustee Shepard stated that on the journey to creating a code addressing medical marijuana businesses, as a Town Board they had reservations and have approached it as an ever evolving process. With help from the Town's attorneys, the Board has crafted a code. Trustee Shepard moved to approve ordinance 1139, the Berthoud Medical Marijuana Code. Trustee Bauer seconded the motion. Trustee Hindman stated that the issue is a no win for both sides, but that it hasn't been as controversial in Berthoud because the way the Town has regulated medical marijuana businesses and in part because of the Town's single dispensary operation. He would have liked to see substantiation of the facts presented by Sherriff Smith. In his opinion, if Berthoud experienced some of the issues outlined by the Sherriff, we would not be here today. Before Amendment 20, marijuana was 100% illegal. He feels that it is much better to have it regulated and taxed. He does not think that by banning medical marijuana businesses in Berthoud, that it will prevent people from driving to Boulder to obtain it nor stop them from using it illegally. Trustee Hindman believes that they have done a good job creating the code and they Board has been fair and balanced. He noted that the code can be undone at anytime there becomes a problem.

6 Page 6 of9 Mayor Pro Tern Gregg stated that he has been sort of opposed to the idea of medical marijuana businesses in Berthoud because a lot of what the Sherriff said is true according to his research. Medical marijuana is distributed unlike any other pharmaceutical available. A program on the. National Geographic Channel titled Fort Collins as Cannabis Capital. He does not think that is what we want be know as. He feels that there is a hypocrisy of the patient as proposed by Amendment 20 versus the actual users of medical marijuana today. Mayor Pro Tern Gregg sees the need for the Board to put the code in place to regulate the medical marijuana business in Berthoud, but would welcome a citizen initiative to put the issue on a ballot. Trustee Dowker stated that she appreciated the feedback from the Sherriff's office and their onthe-street perspective. Trustee Dowker stated that on her ride along experiences with the state police, she found that the majority of DUI offenders were under the influence of drugs, not alcohol. However, relative to what is done in Berthoud, she thinks the business owner has done everything the Town has asked and has done everything to be responsible business owners. A citizen initiative would help Board better understand the community's stand on the issue. She concurs with Mayor Pro Tern Gregg in moving forward with the ordinance. Mayor Patterson stated that while does not have any experience with medical marijuana; he has met several caregivers in the community recently. That is where his concern lies in the ability to regulate. The business in operation in Berthoud is under the microscope all the time. Mayor Patterson relayed an example of a friend, who in his second round of chemotherapy, related to the Mayor that medical marijuana worked the best for him. The Mayor sees need for medical marijuana, but it much more limited that what we see currently. After voting unanimously in support of the motion to approve Ordinance 1139, the Board was po lied, with each member voting yes. Public Hearing - Development Code Mayor Patterson opening the public hearing for Development Code at 8: 14 PM. Planner Katers explained that before Board tonight is the draft adoption of the Development Code. After doing a close review of the code, 5 sections were added to Chapter 2. The additions were word for word from current code. Planner Katers stated that the land use aspects of Medical Marijuana dispensaries are at the tail end of the zoning section and use will be dictated by geographical limitation and under special review. Planner Katers also stated that the Board will be adopting a new zoning map tonight.

7 Page 7 of9 Attorney Bell stated that Jed Scott, an attorney on his staff, reviewed a few sections of the development code and a lot of the edits he made were quickly reviewed. According to Attorney Bell, formatting the model is difficult, however the eventual rewrites will be easier to read than previous edition. Attorney Bell stated that he would like to slow down on making the corrections as there will not be any corrections that will dramatically change the code, they will be formatting and grammatical changes. In the coming months, the Board will also be working on codifying the municipal code, of which the development code is a part. He anticipates that the [mal edits would be made to the municipal code by the end of summer. At that point, they would fix other little glitches in the development code. Administrator Hart explained that it is the recommendation by staff to develop the code and come back with word-smithing and grammatical corrections of the development code along with the codification of the Municipal codes. There will be no substantive changes. Mayor Pro Tern Gregg asked if the edit recommendations were prepared, why wouldn't they incorporate the changes now. Administrator Hart stated that the edits were stili being discussed. Attorney Bell explained the code is massive and is still being reviewed. There are some organizational changes remain to be made. Milan Karspeck, th Street, addressed the Board. He stated that the Planning and Zoning Board took on a big task and he supports a few of the items. Mr. Karspeck stated that he does not support changes made to the tree lawns and the tree species allowed. He stated that in 1994 the Town first created a development code and he feels that it worked well and it has planted a lot of trees that may not have otherwise been planted. Currently there isn't a mechanism for tree inventory and replacement regulations. In his opinion, tree laws work. Mr. Karspeck asked what science was behind dropping the burr oak species from the list. Mayor Patterson explained that he has noticed that the burr oaks in town swarm with wasps in the summer. Mr. Karspeck stated that he does not think that from the printed material he has and the research that he has done, that burr oaks as a species attract wasps.. Mr. Karspeck also stated that he thinks there is a lack of engagement with the other town boards, - <, especially the tree board. He hopes that the incoming board will make an effort to engage with the committees.

8 Page 80f9 John Goreski, 604 E. County Road 10, addressed the Board. Mr. Goreski is a member of the Town tree and planning boards. Mr. Goreski wanted to congratulate Planner Katers on guiding everyone through this process. Mr. Goreski stated that he was one of the Trustees who got the Board to think about having a development code. His big concern with the process was that when planning commission took on task of the development code, they were committed to making suggestions to the Board. In retrospect, he would have appreciated direction from Town Board to not do that because ultimately they undid a lot of wording and some of it was watered down. In his opinion, the point of the whole exercise was to get away from a negotiation every time there was a PUD process. Mr. Goreski has seen the process become deteriorative and he blames the PUD process. In his estimation, if the Board takes out "shall" in too many places in the development code, then _it becomes a matter of opinion. Hethinks that when there are more quantitative things put in the code, it is easier to interpret.. - Trustee Bauer thanked Planner Katers and the Planning and Zoning Board. He thinks that the Board took to heart all the suggestions from the Planning and Zoning commission. He is excited that the Town is in a position to start marketing this as a positive change for Berthoud. Trustee Shepard stated that as the liaison to Planning and Zoning Board, the development code process was a pleasurable experience. He views the code as an enhancement of the community as well as a structure to build the community. In 2008, when the Board got involved, they did everything they could in a bad economy. However, in 2010 things began to pick up in the area and the Board saw need to do more. The Board has asked for input and reiterates what the vision is for the community. He feels that the Board did try to involve the other committees and will take to heart that all committees have a voice. Mayor Pro Tern Gregg stated that he agreed with Trustee Shepard. Trustee Hindman stated that he agrees with JVII. Karspeck and Mr. Goreski regarding the tree lawns. He thinks it was a good selling point for Berthoud and he never heard any complaints about the tree lawns. He can see difference between developments with tree lawns and without tree lawns. However, he will support code for the other things it does. Trustee Hindman stated that he thought that Administrator Hart and Planner Katers did a very good job of doing what the Town Board was directing them to do. Trustee Dowker stated that he appreciates that the code encourages tree-scapes, She encourages others to stop in at meetings to get active and to have a voice. Trustee Dowker further stated that she appreciates the input from former Mayor Karspeck.

9 March 27,2012 Page 9 of9 Mayor Pro Tern Gregg moved to approve Ordinance 1140, with incorporating the burr oak into the accepted street tree species and with 10 foot tree lawns in traditional areas where mandated. Trustee Shepard seconded the motion. The motion passed unanimously. The Mayor adjourned the meeting at 8:53 PM. JkYate Haslett _~trative Clerk...