Cannabis dispensaries will not arrive in Los Gatos soon.
Los Gatos City Council on Tuesday night chose to uphold the city’s ban on local dispensaries and not add a cannabis-related question to the November vote, after months of public comment and community outreach. working with a city cannabis consultant.
The proposal was seen as a way to increase local tax revenue for Los Gatos, amid rising costs, inflation and a projected budget deficit of $ 10 million over the next five years. However, city staff and law enforcement argued that dispensaries would add more administrative burdens to the city and put pressure on an already understaffed police department.
“Because we are such a scarce police department, and even with the opportunity to recoup costs to oversee the regulatory program, these are the other potential law enforcement costs that may not be covered by all new tax revenue is of particular concern to us. ” said City Administrator Laurel Prevetti.
Police Chief Jamie Field said the department conducted a resource analysis of neighboring police departments that have dispensaries and found that his department did not have the staffing levels to host dispensaries.
“In our county, unlike Monterey County and elsewhere, we just don’t have the support for law enforcement across the county. We would really be alone,” Prevetti said.
In response to potential state legislation that could require all cities to allow cannabis delivery services, staff advised the council to consider adding a vote question to tax marijuana sales in Los Gatos.
To add a question to the November vote, four of the five councilors must vote in favor. At Tuesday’s meeting, councilors Matthew Hudes and Mary Badame were opposed to further exploring electoral language.
“We must consider that public safety is the highest strategic priority for our municipality,” said Badame. “Even the ordinance, to put it to the voters, worries me. We’ve already spent $ 50,000 on a tax consultant. “
Several residents strongly opposed commercial cannabis in Los Gatos and spoke at almost every council meeting this year against the proposal, saying those companies could jeopardize public safety and make it easier for young people to gain access. to marijuana.
At the Tuesday night meeting, public commentators were evenly divided for and against bringing dispensaries to the city.
“Why can’t we work together and create a solution that allows for a legal business for people over the age of 21?” Said Donna McCurrie, a resident of Los Gatos. “Take advantage of the public-private partnerships that can be formed to address our children’s concerns and work to address the stress on police and city resources.”
Lisa Harris, a resident of Los Gatos, said local youth would suffer the consequences if legal dispensaries in the city were legalized.
“Everyone will be affected by this if our people decide to allow cannabis. Dispensaries give more access and normalize marijuana use. That’s not acceptable,” Harris said. “The city, I’m noticing, is focusing so much on money that no one has really stopped to talk about what that means, what the social implications are, and what will happen to our children.”
Consultant Ajay Kolluri of HDL Companies said there are security measures in place to prevent minors from buying cannabis, such as checking IDs at the door, tracking and tracing all products and having security guards present.
“Studies show that buying or selling minors, possession of minors usually comes from family, friends or the illicit market,” Kolluri said at a May 4 meeting. “This is a problem, but it is mainly a problem with the illicit market.”
The city has strict local ordinances banning the sale of cannabis in the city, despite state legalization in 2016. When marijuana was legalized in California, 62% of Los Gatos residents voted in favor of the change, compared to 58% of Santa Clara County. residents and 57% statewide.
The city hired HDL companies earlier this year, and consultants projected that dispensaries could provide hundreds of thousands of dollars in annual tax revenue to the city.
The consultants said two retail dispensaries each making about $ 4 million in annual sales could generate between $ 410,000 and $ 570,000 in additional revenue in the city, depending on how high the city chooses to tax products.Neighboring cities with dispensaries, such as San Jose, collect all tax revenue from purchases, regardless of whether the customer lives in the city.
Los Gatos worked with ELC Consultants to conduct a scientific survey of a random sampling of residents on commercial cannabis. The results showed that 58% of residents strongly supported or strongly supported commercial cannabis in the city, while 36% opposed or strongly opposed it.
The poll also asked if residents would allow commercial cannabis dispensaries in Los Gatos, and 59% strongly opposed these companies, while 34% supported them.
