COUNCIL VOTES TO ALLOW POT DISPENSARIES

CHICO - A letter from the Department of Justice stating its concern
for Chico's medical marijuana plan did not stop the City Council from
passing the ordinance Tuesday.

Council members voted 4-3 to adopt the ordinance that would allow two
dispensaries of 10,000 square feet or fewer each to open in the city.

The dispensaries would have to go through a public hearing process and
get approval from council.

Mayor Ann Schwab and Councilmen Bob Evans and Mark Sorensen
dissented.

Councilman Scott Gruendl said his yes vote does not support criminal
activity, but a responsibility to constituents who deserve safe access.

"My intent is to provide a safe way for people in this community who
are entitled to this type of medicine to have access to it without
being persecuted for it," Gruendl said.

The U.S. Department of Justice's letter to Schwab listed the federal
laws people could break while following the city ordinance. United
States Attorney Benjamin Wagner of the eastern district of California
signed the letter dated Friday.

"The department is concerned about the proposed ordinance in the city
of Chico as it would authorize conduct contrary to federal law and
threatens the federal government's efforts to regulate the possession,
manufacturing and trafficking of controlled substances," Wagner wrote.

"Individuals who elect to operate industrial marijuana cultivation
facilities will be doing so in violation of federal law. Others who
knowingly facilitate such industrial cultivation activities, including
property owners, landlords and financiers, should also know that their
conduct violates federal law."

Evans told fellow council members he thinks the community could be
committing a crime allowing dispensaries in Chico and recommended the
council table the discussion until they have a clear picture of the
federal government's intent, he said.

City attorney Lori Barker said the federal government is putting
states on notice of their inconsistency with its laws and that it
could still come in and prosecute operations following state law but
breaking federal law.

Butte County District Attorney Mike Ramsey addressed the council and
said he thinks city staff could violate federal law with the ordinance
and face prosecution, including Police Chief Mike Maloney.

"In general, I have some concerns about the road that we're traveling
down," Maloney said.

Vice Mayor Jim Walker said he would like to make it clear to
dispensary applicants the inconsistencies with state and federal law
on medical marijuana.

Councilman Andy Holcombe urged the council to move forward with the
ordinance he thinks does not decriminalize marijuana.

"I don't think there's any change in policy," Holcombe said. "I don't
think there's any change in risks." On June 7, the council introduced
the ordinance with the same members dissenting.

The dispensary application period will run from Aug. 5 to Nov. 7. On
Nov. 8, the council will have a public hearing on dispensary
applications.

Sorensen said he does not oppose medical marijuana for legitimate
reasons in "the slightest bit."

He thinks, however, the city will take on operational costs and that
they could be aiding and abetting criminal activity, Sorensen said.

"We utterly dropped the football," he said.

On another issue, the council voted 5-2 to introduce an ordinance to
prohibit indoor wood burning on poor air quality days from November to
March, with a few exceptions.

Evans and Sorensen dissented.

Exceptions would apply for certain EPA-certified stoves, structures
that have no other source of heat or during power outages,
manufactured logs in open fireplaces, and low-income residents who
make 80 percent or less than the area median income.

The council also heard an update on the city's final budget, which
will have to be adjusted and brought back to council after the
governor signed a bill last week taking away more than $500,000 of
Chico's revenue, said city manager Dave Burkland. Council members
unanimously passed the budget.