COUNCIL REAPPROVES LAWSUIT AGAINST MEDILEAF

Gilroy's City Council on Wednesday once again approved litigation
against a local medical marijuana dispensary that opened without a
business license last month.

Council members voted 4-3 in open session at a special meeting to
approve a resolution that allows the city attorney to take legal
action against cannabis collective MediLeaf, after the council had
voted in favor of the resolution in closed session on Nov. 16.
Berliner-Cohen, the legal firm that represents the City of Gilroy,
encouraged the council to vote on the matter in public to cure a
potential violation of the state Brown Act, which governs public meetings.

On Dec. 15, Superior Court Judge Kevin Murphy turned down the city's
request for a preliminary injunction that would have shut down
MediLeaf pending a trial, in part based on accusations from dispensary
directors that the city had violated the Brown Act.

Andy Faber, who is representing the City of Gilroy in its case against
the dispensary, said he still does not not believe that the city
violated public meeting laws. However, he said it may be helpful for
the city's case if the council voted on the resolution in open session.

"We have a judge saying that he's concerned about (a Brown Act
violation), so we're concerned," Faber said.

Councilman Perry Woodward, who joined council members Craig Gartman
and Peter Arellano in staying out of the Nov. 16 closed session
because they believed certain matters pertaining to MediLeaf should
have been discussed publicly, said Wednesday that he wanted to know
what had been discussed during the closed session.

Councilman Dion Bracco said that they only talked about the
resolution. However, Woodward said it appeared from comments during
the open session on Nov. 16 that more was discussed. Faber said the
council did not need to talk about what was discussed in closed
session to cure the potential Brown Act violation.

Woodward also wanted to know how much money Berliner-Cohen planned on
spending on the case. Gartman and Arellano, who joined Woodward in
voting against the resolution on Wednesday, also expressed worries
about the cost of legal fees.

"We ought to be very concerned about this," Woodward said. "We're
closing down fire stations for goodness sakes."

Mayor Al Pinheiro, who favored the resolution that allowed for
litigation against MediLeaf, said he also was concerned about costs,
but he felt that council had made a decision and needed to stick by
that. He joined council members Cat Tucker, Bracco and Bob Dillon in
supporting the resolution.

Gartman expressed concern that MediLeaf had not received due process
from city staff, as the cannabis collective was not allowed to apply
for a conditional use permit.

Faber countered that the city had offered the dispensary due process
when the council considered an ordinance that would approve such
dispensaries. He recommended that the council approve an ordinance
that would ban such dispensaries outright.

City Attorney Linda Callon told council members during their Oct. 12
meeting that a ban would be unnecessary. However, Faber said
circumstances had changed after U.S. Attorney General Eric Holder
announced in October that the federal government would not prosecute
medical marijuana dispensaries as long as they adhered to state law.

An ordinance that bans dispensaries would not help the city in its
case against MediLeaf, Faber said, but it could help if other
dispensaries planned to open in Gilroy in the future. The council
voted 6-1, with Arellano dissenting, to vote on such an ordinance at
its Jan. 11 meeting.

Arellano said after the meeting that his "no" vote was based on his
belief that medical cannabis facilities should be an option.

"I feel strongly that we should have medical marijuana available," he
said.