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COUNCIL MINUTES <br /> APPROVED <br /> 43 FINANCE DEPARTMENT REPORT <br /> 44 2A) Consider Is'Reading of Ordinance No. 07-22,Establishing the 2023 City Fee Schedule <br /> 45 —Finance Director Lynch reviewed her written staff report. Staff brings forward a proposed fee <br /> 46 schedule annually in the form of an ordinance. Changes are noted in red in the ordinance. <br /> 47 Councilmember Lyden moved to approve the Pt reading of Ordinance No. 07-22 as presented. <br /> 48 Councilmember Ruhlan dseconded the motion. Motion carried on a voice vote. <br /> 49 ADMINISTRATION DEPARTMENT REPORT <br /> 50 There was no report from the Administration Department. <br /> 51 PUBLIC SAFETY DEPARTMENT REPORT <br /> 52 4A) Cannabinoid Ordinance: i. Consider 2nd Reading of Ordinance No. 03-22, <br /> 53 Enacting Ordinance Regulating Edible Cannabinoid Products; ii. Consider Resolution No. <br /> 54 22-133,Authorizing Summary Publication—Public Safety Director Swenson reviewed his <br /> 55 written staff report. Staff is recommending the final adoption of this ordinance that will <br /> 56 establish regulations in the City relative to the sale of edible cannabinoids. He noted that the <br /> 57 City's moratorium remains in place only until December; moving forward with this ordinance <br /> 58 will mean that it will take effect prior to expiration of the moratorium. He noted that there is one <br /> 59 business in the City that is "grandfathered" as far as the moratorium;they have been informed of <br /> 60 regulations coming forward. <br /> 61 <br /> 62 John Hanselman,E &E Foods (d/b/a/Edwins Edibles) addressedt the council. He is under <br /> 63 contract to purchase the former Hammarheart building where he plans to operate a manufacturing <br /> 64 facility including for cannabinoids. He has no intention that his company will ever be selling <br /> 65 retail but only wholesale. His sales include on line sales. He would argue that the prohibition in <br /> 66 the ordinance for online sales doesn't apply to him because he is not retail. He would like to see <br /> 67 the ordinance change to ensure that he can sell on line as a wholesaler. <br /> 68 <br /> 69 Mayor Rafferty noted that manufacturing will be allowed but he doesn't believe that online can <br /> 70 be allowed. Director Swenson explained that the City Attorney has opined that it wouldn't be <br /> 71 allowed with this ordinance. Director Swenson noted that the City's biggest interest in regulating <br /> 72 this product is to make sure it is kept out of the hands of underaged and he has concern with how <br /> 73 that goal aligns with online sales. <br /> 74 Councilmember Cavegn asked if the fact that this person wouldn't be a license holder exempts <br /> 75 him from the regulations of the ordinance. Director Swenson explained that the City is not <br /> 76 allowing internet sales first and, if it were to,those sales would be covered by the ordinance. <br /> 77 Mr. Hanselman noted that it's just a matter of him setting up his online sales in another <br /> 78 community—the end result will be the same. <br /> 79 Councilmember Ruhland remarked that he would probably support taking a look at the regulation <br /> 80 in the future to make sure it makes sense; he sees the online restriction is easily circumvented. <br /> 81 Mayor Rafferty noted that he hears council members may want to discuss some elements of the <br /> 82 ordinance further but in order to keep the ordinance on track,the council should consider it <br /> 83 without delay. <br /> 2 <br />