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LOYALTON CITY COUNCIL

7/30/2018

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CITY OF LOYALTON  started its July 17th meeting with a moment of silence over the air crash that day which took the life of Peter Jackson, a partner with Jeffery Naughton  who had just met with city officials to look at building ordinances in the past week for a business license for Evexia Science, commercial cannabis activity, adult use retail, adult and medical use wholesale distribution, adult and medical use delivery and adult and medical use manufacturing.
Jeffery Naughton made the presentation and told how he’s been running a medical marijuana collective in Truckee “five years without incident.” He told of developing cannabis brands, tablets, and showed samples to manufacture, including chocolate bars and gummies, distributed statewide in California. He told of proposing soda pops infused with cannabis and starting a small approach yet acknowledged “a lot of emotion in cannabis stuff.” He told how the State was “crazy,” and was “super heavily regulated” at the state level and how Prop. 64 narrowly passed. Sierra County was dead but it was a tie in Loyalton, 177 -177. He stated they have to comply and keep kids out with special labeling and testing. “Loyalton is a good place to come and do this,” he stated with 4-6 jobs. In six months, he said it’d be 10-12 jobs with plans for more on Main Street with a regular store front. He stressed they’d been asked to do just an adult only use store for those over 21 like a liquor/pharmacy with access restricted, to show ID and check in.
He explained retail “not super crazy” and to attract from Truckee people who will drive here. He told how a previous Loyalton council voted in February 2013 for no medical marijuana allowed but “out of respect” would come back to help sick people. There is no medical piece in the retail piece.
Mayor Marin was interested in the public’s opinion, and would call for a special meeting.
Naughton said they’d close their shop in Truckee which had decided to take the delivery-only model and delete manufacturing. Unless they manufacture, he said, all expenses are not tax deductible and from a tax perspective, they link the two businesses together. “The market is here; now it’s new, take advantage of it,” he said. He told of a 3,000 sq. foot building with equipment of stainless steel but was stopped by the mayor who “didn’t want to get into this now.”
City Bookkeeper Tracy Smith asked Truckee’s stance and asked about Loyalton’s. Naughton said when the city didn’t take action (with its vote), it defaulted to California guidelines and “couldn’t deny us.”
In the audience, County Supervisor Paul Roen said it can move forward, state-mandated requirements establish fees, and advised to engage the lawyer before the meeting.
Eileen Benson spoke from the audience when she advised Naughton to work on his presentation and the biggest impact is revenue gained for the city.
Naughton told how revenue is had in taxation, to raise taxes and with the vote of the people framework is set up.
The mayor again stopped  the conversation and “will get into specifics.” He introduced East Sierra Valley Chamber of Commerce President Mike Welbourn, who spoke on the default, calling it strictly a California oriented business or State of California law, stating, “You’re running a rogue State,” saying it’s illegal 
under federal law.
Phyllis DeMartini asked, “Why Loyalton?” Naughton stated Loyalton defaulted to State guidelines and told how he loved northern Sierra. Phyllis replied, “Podunk Loyalton didn’t take action.” Naughton told of Prop. 64 results with the county passing it and the city hav​ing a dead tie. He called a default to the State the “absolute smartest thing especially for small cities.”
under federal law.

________________________________

INDEMNIFICATION FEES and wood stove permits gained heavy discussion at Loyalton City Council when Councilwoman Joy Markum recommended they waive the city’s $259 fee and charge a  permit fee of $99 or waive both. It concerned a new Woodstove and Fireplace Change-out Program. Mayor Mark Marin said there is no charge from the county. Joy wanted to “keep us kosher as County people.” In the audience, Phyllis DeMartini talked “not just for this item,” but Plumas County charges $99 and no indemnification and went to the vendor and was told $159 permit and $259 for indemnification charge passed to the consumer. She talked of no permit fee to replace roofs if no sheeting, no comparison to Plumas County’s inspection fee of $99. She wanted to know the policy and to get it straight. Bookkeeper Tracy Smith asked why not do our own inspections? “Revenue is the point,” she said. Sierra County Supervisor Paul Roen suggested waiving all but the permit fee, with fees covered in the program. He wanted to follow the process and to get as many stoves replaced as possible.
Joy moved to waive indemnification fees but to charge a $99 inspection and permit fee and it passed.
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