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HomeMy WebLinkAboutC-20-12 Wishon Investments LLC RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-12 Submitted On: Dec 03, 2020 Applicant Brittany Biesterfeld 6199249600 brittany@austinlegalgroup.com Applicant (Entity) Name: Wishon Investments, LLC DBA: -- Physical Address: 2221 Camino Del Rio South STE 207 City: San Diego State: California Zip Code: 92108 Primary Contact Same as Above? Yes Primary Contact Name: Brittany Biesterfeld Primary Contact Title: Attorney Primary Contact Phone: 619-924-9600 Primary Contact Email: brittany@austinlegalgroup.com HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: No Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Retail (Storefront) Business Formation Documentation: Limited Liability Company Property Owner Name: Brad and Tricia Hardie Proposed Location Address: 2848 North Wishon Avenue City: Fresno State: California Zip Code: 93704 Property Owner Phone: 559-221-3170 Property Owner Email: -- Assessor's Parcel Number (APN): 443-164-01 Proposed Location Square Footage: Supporting Information Application Certification 7840 List all fictitious business names the applicant is operating under including the address where each business is located: Wishon Investments, LLC (“Wishon Investments”) does not currently operate under any dba’s. However, it is Wishon Investments intent to file for and use the dba “Off the Charts” if awarded a commercial cannabis business permit in the City of Fresno. Currently, “Off the Charts” is used by an owner of Wishon Investments’, Norman Yousif, for other licensed cannabis retail facilities owned and operated by Mr. Yousif, which include: Area 29 LLC, Ash’s First LLC, and SCZZ Collective, Inc. Area 29 LLC, Ash’s First LLC, and SCZZ Collective, Inc. have collectively entered into a contingent license agreement with Wishon Investments which provides Wishon Investments with permission to file and use “Off the Charts” upon receiving a permit from the City of Fresno. The agreement is attached to our Business Plan. The locations of Area 29 LLC, Ash’s First LLC, and SCZZ Collective, Inc. are as follows: Area 29, LLC: 1508 S Palm Canyon Dr, Palm Springs, CA 92264 Ash’s First LLC: 757 Williams Road, Palm Springs, CA 92264 SCZZ Collective, Inc.: 1745 E Vista Way, Vista, CA 92084 Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? No Business Name: Wishon Investments, LLC Application #: C-20-12 CANNABIS BUSINESS PERMIT APPLICATION REVIEW - RETAIL Points Possible All or None Exceptional Good Acceptable Applicant Score Evaluation Notes (Explain each time points are deducted) SECTION 1: BUSINESS PLAN 300 Points Possible for Section 1 Resume: Resumes Provided for All Owners: Score 5 5 5 Resumes Provided in 2-page Format: Score 2 2 2 Education: (select highest academic level among ownership team, cannabis specific education separately) Cannabis specific education/training (accredited)2 2 0 not described High School Degree Reported: Score 4 4 - Bachelor's Degree Reported: Score 6 6 - Master's Degree or Higher Reported: Score 8 8 8 Experience: (among ownership team, select one at highest level) Regulated Cannabis Retail Ownership Experience CA 13 13 13 Regulated Cannabis Retail Experience CA (management level or below): Score 10 10 - Other Retail Business Experience Reported, More than 5 years: or 8 8 - Other Retail Business Experience Reported, Less than 5 Years: Score 5 5 - 1.1 Sub-Total:30 28 Construction Cost Estimate: Construction Cost Estimate Provided: Score 8 8 6 4 6 Just listed as line item, but has some additional info in explanation. Needs more detail Construction Contingency Factor Included: Score 6 6 0 not included All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 4 Needs more detail Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 3 States reference data based on past experience no specific figures listed Operation and Maintenance Cost Estimates: Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 6 Has some detail in explanation but still needs more detail All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 4 Needs more detail Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 2 Talks about cost escalators but no specifics Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 3 States reference data based on past experience no specific figures listed 1.2 Sub-Total:50 28 1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner. (30 points possible) 1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs.(50 points possible) Criteria Narrative: Criteria Narrative: Managers Number of Managers (salaried, non-owners)2 Number of Managers that live in the City of Fresno:2 Number of Managers that Own a Business in the City of Fresno:0 100 percent of the Managers live or own a business in the City: Score 20 20 20 committed to hiring both managers local 75 to 99 percent of the Managers live or own a business in the City: Score 15 15 - 50 to 74 percent of the Managers live or own a business in the City: Score 10 10 - Less than 50 percent of the Managers live or own a business in the City: Score 5 5 - 2.5 Sub-Total:80 20 Responsibilities Described for All Titles/Positions: Score 20 20 15 10 20 2.6 Sub-Total:20 20 Does CCB have more than five employees: 5 5 5 CCB has signed a peace agreement: Score 5 5 5 will sign within 30 days of 5th hire. 2.7 Sub-Total:10 10 Work Force Plan Provided: Score 10 10 8 6 10 Commitment to Local Hire Provided:10 10 8 6 10 Commitment to Offer Apprenticeships Provided: 10 10 8 6 6 for internal staff, similar to management training. Does not describe offer to non-employees or other areas of industry. Commitment paying for continuing education provided 10 10 8 6 10 Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10 2.8 Sub-Total:50 46 CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 100 Mentorship and Training: Score For social policy hires, does not describe service for SE Businesses. Equipment Donation: Score Shelf Space: Score Legal Assistance: Score expungement help Finance Services Assistance: Score Criteria Narrative: 2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support.(100 points possible) Criteria Narrative: Data, non-scored. Write response in Evaluation Notes column. Data to inform score on first line of this section. Write response in Evaluation Notes column. 2.8.3. Commitment to pay a living wage to its employees 2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible) 2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible) 2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible) 2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an application for employment with the applicant/permittee. 2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and Criteria Narrative: Criteria Narrative: Other Technical Assistance: Score Committed 1% of profits to FCRF Scoring Guidance: full points for willingness to serve with detailed plan offering at least three aspects mentioned above or of similar benefit. Less points for willingness to serve but vague or unclear commitment. Zero points if there is no clear commitment to serve as Incubator. 2.9 Sub-Total:100 100 Section 2 Total:400 287 SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3 CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 10 CCB will established a dedicated contact person to receive complaints: Score 10 10 10 CCB will establish a dedicated phone number to receive complaints: Score 5 5 5 CCB will establish a dedicated email address to receive complaints: Score 5 5 5 CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 5 CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation: Score 10 10 10 Other measure unique to business (i.e. website complaint form)5 5 0 Info not provided Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points for leaving out aspect, vagueness, or reactive plans. 3.1 Sub-Total:50 45 CCB will maintain a listserv of community residents to update and information residents of business operations. 10 10 0 Info not provided CCB will schedule or attend periodic community meetings (at least annually) to engage with residents about the CCB operation: Score 10 10 10 Stated in Section 3.1 CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 50 Stated in Section 3.1 CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Info not provided CCB will hire residents from the community work at the CCB: Score 20 20 0 Info not provided Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness, or reactive plans. 3.2 Sub-Total:100 60 CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Info not provided CCB has prepared a nuisance odor control plan: Score 10 10 8 6 10 Stated in Section 3.5 Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary: Score 5 5 5 Criteria Narrative: Criteria Narrative: Criteria Narrative: 3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible) 3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible) 3.3 Describe odor mitigation practices.(40 points possible) Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting the premise boundary: Score 5 5 5 Stated in Section 3.5 CCB has established an odor reporting system: Score 5 5 5 Stated in Section 3.1 CCB will install a nuisance odor monitoring system: Score 10 10 10 Stated in Section 3.1 3.3 Sub-Total:40 35 CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 10 Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans. 3.4 Sub-Total:10 10 Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 10 Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10 Odor control measures are identified for different nuisance odor sources: Score 10 10 10 3.5 Sub-Total:30 30 Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures: Score 10 10 10 Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting.10 10 10 3.6 Sub-Total:20 20 CCB has identified the sources of waste generated by the business operation: Score 10 10 10 CCB has prepared a source-separation plan to segregate different sources of waste generated by business operations: Score 10 10 10 The source-separation plan identifies policy, procedures, and locations where different sources of waste are to be collected for disposal: Score 10 10 8 6 8 Needs more detail The source-separation plan describes specific measures to control the collection and disposal cannabis waste: Score 10 10 10 The name of licensed cannabis disposal company provided: Score 10 10 0 Info not provided 3.7 Sub-Total:50 38 Section 3 Total:300 238 SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Criteria Narrative: 3.7 Describe the waste management plan. (50 points possible) Criteria Narrative: 3.4 Identify potential sources of odor. (10 points possible) 3.5 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. (30 points possible) 3.6 Describe all proposed staff odor training and system maintenance.(20 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: Safety Plan Prepared by Consultant: Score 10 10 5 mentioned in beginning, no evidence Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 10 Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 0 not specific Safety Plan includes Site Plan of Premise: Score 10 10 0 none Safety Plan includes Building Layout Plan: Score 10 10 0 none 4.1 Sub-Total:50 15 Written Accident/Incident Procedure Provided: Score 20 20 15 10 0 no written proceedure Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 none provided Total Number of Scenarios Described: Score 5 Active Shooter Incident Described: Score 10 10 0 not mentioned Robbery Incident Described: Score 10 10 0 not mentioned 4.2 Sub-Total:50 0 Evacuation Plan Provided: Score 20 20 15 10 0 none provided Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 0 unk Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 0 not provided 4.3 Sub-Total:50 0 Location of Fire Suppression System Elements Identified: Score 10 10 0 not shown Type of Fire Suppression System Elements Identified: Score 20 20 15 10 10 mentioned smoke det Location of Fire Extinguishers Identified: Score 10 10 0 not shown Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 0 not provided 4.4 Sub-Total:50 10 Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 0 no written proceedures Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 0 not provided Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 not mentioned Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 not mentioned Other Medical Emergency Conditions Described: Score 20 20 15 10 0 4.5 Sub-Total:100 0 Section 4 Total:300 25 SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 4.3 Describe evacuation routes. (50 points possible) 4.2 Describe accident and incident reporting procedures. (50 points possible) Criteria Narrative: 4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible) 4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: 4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible) Criteria Narrative: Data-write response in Evaluation Notes Column Security Plan Prepared by Consultant: Score 10 10 10 Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 10 Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 10 Security Plan includes Site Plan of Premise: Score 10 10 10 Security Plan includes Building Layout Plan: Score 10 10 10 5.1 Sub-Total:50 50 Premises (Security) Diagram Provided: Score 20 20 15 10 15 Missing multiple parts of 5.2 Diagram is drawn to correct scale: Score 5 5 5 Diagram provides required details for premise: Score 5 5 0 Missing limited access areas Diagram shows the location of all security cameras: Score 5 5 5 Descriptions of activities to be conducted in each area of the premise 5 5 5 Limited-Access Areas Clearly Marked: Score 5 5 0 No clearly marked Number and Location of All Security Cameras Identified: Score 5 5 5 5.2 Sub-Total:50 35 Intrusion Alarm and Monitoring System Identified: Score 15 15 15 Name and Contact Information for Monitoring Company Provided: Score 5 5 5 Total Points of Entry into Premise Identified: Score 5 5 5 All Points of Entry to be Alarmed Identified:5 5 5 Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10 Backup Power Supply Identified: Score 10 10 10 5.3 Sub-Total:50 50 Written Cash-Handling Procedure Provided: Score 30 30 20 15 30 Dual-Custody is Practiced for all cash handling: Score 10 10 10 Video Surveillance Used to Monitor All Cash Handling: Score 20 20 20 Armored Car Service Used for Bank Deposits: Score 10 10 10 5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and testing areas. 5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible) 5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices (Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area. 5.2.5 Number and location of all video surveillance cameras. (50 points possible) 5.4 Briefly describe cash handling procedures which covers day to day transactions with customers, vendors armor carrier vehicles and transporting it to the bank.(100 points possible) 5.3 Identify intrusion alarm and monitoring system including the name and contact information for the monitoring company (if the company has been selected).(50 points possible) Criteria Narrative: Criteria Narrative: 5.2 Premises (Security) Diagram. In addition to diagrams submitted for other sections of the application, applicants are expected to submit a premises diagram (or site plan) which, focuses on the proposed security measures and how they relate to the overall business. (Pursuant to CCR Title 16, Division 42, §5006. Premises Diagram). 5.2.1 The diagram shall be accurate, dimensioned and to scale (minimum scale ¼"). The scale may be smaller if the proposed location exceeds more than a 1/2-acre parcel but must not be printed on larger than an 11" x 17" sheet of paper. (Blueprints and engineering site plans are not required at this point of the application process) 5.2.2 The diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows, and doorways. The activity in each room and the location of all cameras must be identified in the diagram. Criteria Narrative: All Cash Deposited weekly with Bank: Score 10 10 10 Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20 5.4 Sub-Total:100 100 CCB will use onsite security guards: Score 10 10 10 All onsite guards will be licensed and bonded: Score 10 10 0 No mention of being bonbed All onsite security guards will be licensed to carry firearms: Score 10 10 10 Onsite security guards will be on duty before CCB opens for business: Score 10 10 10 Onsite security guards will be on duty after CCB closes for business: Score 10 10 10 5.5 Sub-Total:50 40 Section 5 Total:300 275 Section 1: Business Plan Total Points:300 251 Section 2: Social Policy & Local Enterprise Total Points:400 287 Section 3: Neighborhood Compatibility Total Points:300 238 Section 4: Safety Plan Total Points:300 25 Section 5: Security Plan Total Points:300 275 Total Points Achieved:1600 1076 67.25% TOTAL SCORE 5.5 Discuss whether the CCB will utilize the services of on-site security guards. Include in the discussion: (50 points possible) 5.5.1 Number of guards. 5.5.2 Hours guards will be on-site. Criteria Narrative: Criteria Narrative: 5.5.3 Locations at which they will be positioned. 5.5.4 Guards' roles and responsibilities. Off The Charts / 1 BUSINESS PLAN Page 7 Budget and Operation Costs Off The Charts / 1 BUSINESS PLAN Page 13 Hours of Operation, Opening Procedures, and Closing Procedures 1.5.1 Hours of Operation Off The Charts will be open within the hours permitted by the City of Fresno seven days a week between the hours of 7:00 a.m. to 10:00 p.m., in compliance with Fresno Municipal Code (“FMC”) § 9-3310(a)(1), unless otherwise required by the City of Fresno1. 1.5.2 Opening Procedures - The manager and employees will arrive at 6:30 a.m., 30 minutes prior to opening to prepare the store for customers; - The overnight security guard greets the employees and disables the alarm system to allow them to enter; - Entry door is left locked after the entrance of personnel; - The overnight security guard screens employees to check bags for weapons; and - Employees clock in for their shift, store their personal items in their given location in the employee break room, and put on their work identification badge. - Retail sales associates will: o Power on and log into the point-of-sales registers; o Re-stock the locked cabinets that hold cannabis products; o Clean countertops and organize display counters; o Obtain cash from the manager to place in the point-of-sale cash drawers and ensure it is the correct amount; and o The date, time, register number, and starting balance in their cash drawer will be recording into the cash register report form into the point-of-sales system, Treez. - One employee is assigned with picking up any trash and debris from the parking lot and within 100 feet of the premises. - Security guards(s) will: o Conduct a perimeter and security walk through; and o Check video cameras, monitoring systems, and screens to ensure they are properly working. - Inventory personnel will: o Ensure Treez is updated with current cannabis product sales and prices; and o Manage track and trace/Treez data entry to reflect cannabis products moved from inventory onto the secure storage areas on the retail floor. 1 Hours of operation may be modified or shortened due to customer demand. Off The Charts / 1 BUSINESS PLAN Page 14 - The manager will: o Conduct a security inspection; o Check that video surveillance cameras are working properly; o Confirm that everything is clean, organized, and clutter free; o Direct the stocking of cannabis products and handling cash to retail sales associates to place in their point of sale cash drawer; o Confirm all point-of-sale systems and equipment are functioning properly; o Confirm prices of cannabis products are accurate with Treez; o Confirm the product display cases are stocked and organized; o Ensure the store is ready to open on time; and o Turn on the open sign. - At this point, the store is ready for operations and customers will be able to enter to the secured lobby. 1.5.3 Closing Procedures - Final customers of the day may be checked in at the secured lobby by 9:45 p.m., 15 minutes prior to closing; - All others will be politely asked to leave the premises and return during opening hours; - Customers who are picking up pre-ordered cannabis products may do so at the lobby check-in area up until closing time; - Employees will complete and finalize all customer sales and pick-up transactions by closing time at 10:00 p.m.; - All persons who are not the security guard(s), employees, or managers will be asked to leave the premise; - Retail sales associates will: o Closeout their point-of-sale registers and count all cash; o Cash drawers will be brought to the cash safe/vault for counting and verification from the manager; o Create an end-of-the-day cash register report in Treez; o Move all cannabis products off the sales floor and into the cannabis storage vault; and o Sanitize all surface areas and tidy the sales floor areas. - Security guard(s) will: o Check all rooms, including bathrooms, to confirm all customers have left the premises; Off The Charts / 1 BUSINESS PLAN Page 15 o Monitor video surveillance to ensure all customers have exited the parking area and that no persons are loitering on or around the premises; o Monitor end-of-the-day cash register and inventory procedures; o Monitor regular trash disposal to reduce the potential of diversion or theft; o Walk employees and managers to their vehicles; and o Confirm with the manager that all persons have exited the premises and assist the manager in final security and alarm activation measures. - The manager will: o Confirm the count of each cash drawer and place them into the secured cash safe/vault; o Run the end-of-the-day Treez reports; o Check to confirm there are no cash discrepancies and if found recount cash. If a discrepancy still exists, it will be reported on the cash count sheet and forwarded to accounting; o Prepare cash drawers for the following day with the proper beginning balances; o Observe and supervise the return of unsold inventory to the cannabis storage vault; o Confirm all employees have left the premises; o Lock and confirm that all vaults and doors are securely closed and locked; and o With the assistance of the security guard(s), engage the alarm system and exit the premises while confirming all doors securely locked behind them. - At this time, the store is completely closed and the security guard on duty remains to patrol the premises overnight until the next day. 1.5.4 Shift Change Procedures Throughout the hours of operation, Off The Charts employees will end their shifts and new employees will be on duty. At each time a shift change occurs, the following will occur to ensure accurate accounting of cash and point-of-sale records: - Each point-of-sale cash drawer must be closed, counted, and verified at least twice a day during business hours; - If a cash drawer reaches the maximum level, the assigned sales person will close and remove it from the retail floor to be counted and verified; - At the end of every shift, the assigned sales person is responsible and will close their point-of-sale station, print the sales summary, and move the cash drawer to the cash safe/vault room for counting and verification by the manager; Off The Charts / 1 BUSINESS PLAN Page 16 - The security guard on duty will accompany each sales person as they remove the cash drawer and enter the cash safe/vault room for counting and verification; - The security guard will wait at the safe/vault room door until the employee has left the cash safe/vault room; - The safe/vault room is closed and locked while the employee and manager count the money in the cash drawer by an electronic bill counter and/or by hand; - The manager will verify and compare the amount of cash counted with the printed summary report from Treez; - The manager will check to confirm there are no cash discrepancies and if found recount cash. If a discrepancy still exists, it will be reported on the cash count sheet and forwarded to accounting; - The manager and salesperson both sign a bill count sheet; - The cash drawer is then replenished with the opening cash amount; - The remaining cash that was not placed into the cash drawer is then banded up with a bill count receipt and place in the cash safe/vault; - The cash safe/vault is then closed and re-locked; - The employee leaves the cash safe/vault room; - The next shift employee then may enter the cash safe/vault room; - The new shift employee then obtains the cash drawer from the manager and ensures it is the correct amount; and - The new shift employee records the date, time, register number, and starting balance of their cash drawer into the cash register report form on Treez. Daily Operations and Industry Best Practices 1.6.1 Day-to-Day Operations i. Customer Check-In Procedures Off The Charts requires that check-in be held in the secured lobby where check-in staff will confirm the person is eligible to enter the retail sales area (FMC §9-3310(a)(4). The person’s identification will be scanned using an ID scanner. This ID scanner will scan identification cards and the scanner’s screen will automatically display if the customer’s form of identification is valid or not. Once scanned, the check-in staff will confirm that the identification card does belong to the person who presented it by looking at the photo and information listed. If the form of identification cannot be scanned, like a passport, the check-in staff member will do a visual inspection of the identification to verify age and make a positive match between the identification photo and the person. After scanned, the information of the customer is automatically updated in the Treez point- of-sale software. If the identification can’t be scanned, then a customer profile is manually entered into Treez. Off The Charts / 1 BUSINESS PLAN Page 17 All customers must check-in on each and every visit to our cannabis retail store. Customer profiles must be accurate and contain up-to-date customer information. Once a customer is approved to enter the sales floor, the check-in staff will “buzz-in” the customer as the door from lobby to sales floor is always locked. Once a customer is planning to make a purchase, the employee will ask the customer to show their identification card again to ensure that the sale is attributed to the correct Treez customer profile. Identification Verification Each person who wishes to enter the facility to purchase cannabis product, must show a valid, non- expired, form of government identification that includes: - First and last name; - Date of birth; - Height; - Gender; and - Photo of the person. The following forms of identification will be accepted: - Driver’s license; - Military identification; - Passport issued by the United States or other foreign governments; and - Other identification issues by a federal, state, county, or municipal government. Age Verification The age of each person is verified prior to allowing the person to enter the retail sales floor area. Customers must meet the following age verification requirements: - Adult-use cannabis customers must be twenty-one (21) years of age; or - Medicinal-use cannabis customers must be at least eighteen (18) years of age with a valid physician’s recommendation. Physician’s Recommendation and/or MMIC Verification Off The Charts will not allow anyone under the age of twenty-one (21) to enter the premises unless the person is at least eighteen (18) years old and has a valid physician’s recommendation. A sign with a notice that clearly and legibly states that no person under the age of eighteen is allow to enter the premises will be posted at the entrance of the facility (FMC §9-93309 (i)(1)(2)(3)). Per 16 CCR §5400(a)(b)(c), persons who are at least 18 years old, but not yet 21 years old, shall present both a valid government-issued identification and a valid physician’s recommendation prior to being allowed entry to the cannabis retail sales floor. Off The Charts / 1 BUSINESS PLAN Page 18 When a medicinal-use customer presents a physician’s recommendation and/or Medical Marijuana Identification Card (MMIC), the validity of each document is verified using the following procedures: - For a physician recommendation, the security guard or check-in staff will visit the Medical Board of California website at http://www.mbc.ca.gov/breeze/license_verification.aspx to confirm the physician is licensed/registered in the State of California. - For customers with an MMIC, the security guard or check -in staff will visit the California Department of Public Health’s Medicinal Marijuana Program website at http://mmic.cdph.ca.gov/MMIC_Search.aspx and confirm that it is valid and current. - If a physician’s recommendation or MMIC cannot be verified, custom ers who are under twenty-one years of age will not be allowed to enter and will be asked to leave the premises. - If a physician’s recommendation or MMIC cannot be verified, customers who are at least twenty-one years of age may purchase cannabis products as an adult-use customer. ii. Location and Procedures for Receiving Deliveries during Business Hours Inventory Receiving Location All deliveries of inventory that are received during business hours will be received through the access point labeled Secure Entry into the Delivery room on the premises diagram. By receiving inventory shipments through this access point, we ensure that our customer entry/exit is separated from our inventory receiving process. Receiving Inventory Procedures The access point labeled Secure Entry in the Delivery room on the premises diagram is the door through which all cannabis inventory will enter the premises during business hours. This entrance is separate and apart from the main entrance/exit that customers use to enter and exit the premises, which increases security and safety while bringing cannabis products into the premises. This access point for shipping/receiving leads into the limited-access and employee-only areas of the premises. All shipments of inventory are scheduled in advance so that Off The Charts can ensure proper staffing when shipments arrive. Shipments of inventory will only be accepted during the hours of 6:00 a.m. to 10:00 p.m. Pacific Time. As a licensed retailer, Off The Charts shall only receive cannabis products from licensed distributors. When onboarding a new distribution partner, Off The Charts will establish specific agreed upon procedures that the distributor’s driver must follow when delivering cannabis products to our retail premises. Distribution drivers are required to park in our parking lot near the Secure Entry that is partially enclosed in a fence for increased security. The driver then calls the retail store manager to announce arrival, and waits in the vehicle until a security guard meets the vehicle. Only then is the shipment unloaded from the vehicle and brought into the premises via the Secure Entry doorway into the Delivery room. Off The Charts / 1 BUSINESS PLAN Page 19 Once inside the premises, the shipping manifest is checked line-by-line to ensure that all items ordered and only items ordered are being delivered. If the shipping manifest is accurate, the distribution driver and the Off The Charts employee sign off on the shipping manifest and the driver exits the premises. If the shipping manifest is not accurate, notations are made on the shipping manifest. Any items not ordered are rejected. If the order is missing items, it is notated on the shipping manifest and the accurate items are accepted. At this point, the employee who received the cannabis products brings the cannabis products into the Product Storage Vault. If the agreement with the distributor calls for cash on delivery, the distributor is then paid. Finally, the delivery driver leaves through the Secure Entry with assistance from the security guard. Inventory Documentation Inventory documentation is accomplished via our Treez point-of-sale system and inventory management software. Within 24 hours of cannabis products being received, cannabis products are logged into Treez with the following information: - Description of each item so that cannabis products are easily identified; - Quantity of each item; - Date and time cannabis products were received; - Sell-by or expiration date if any; - Name and license number of the distributor the cannabis products were received from; and - The price Off The Charts paid for the cannabis products including taxes, delivery costs, and other fees. Our Treez software automatically updates the state’s track-and-trace METRc system. The Treez inventory management system includes electronic tracking of each package with a bar code sticker and scanner. Each individual product/unit receives a small sticker with a bar code on it and is associated with the cannabis product received. When scanning the cannabis product to be sold to a customer, inventory counts are updated and there is a record of the sale. This procedure produces very accurate inventory tracking as it is done in real time. iii. Point-of-Sale System and Point-of-Sale Locations Off The Charts has selected the Treez point-of-sale and inventory management software system. This software system was specifically designed for the cannabis industry. There will be a total of four (4) point-of-sale stations on our retail sales floor. Each point-of-sale station will have a video surveillance camera associated it to record each sales transaction. In order for Off The Charts to achieve exceptional service for its customers, Off The Charts has implemented a one-on-one style approach to helping customers. One retail sales associate will help one customer at a time as the customer selects what they wish to purchase. The retail sales associate will then obtain the cannabis products from the product shelves behind the counter and place the cannabis products in a tray or basket until the customer is ready to complete the sale. The retail sales associate will then ask for the customer’s identification card to access their customer Off The Charts / 1 BUSINESS PLAN Page 20 profile in the point-of-sale software, Treez, before scanning the soon to be purchased items. Treez captures the following information during each sale: - Name of the customer and a unique customer number; - Time and date of the transaction; - UID and batch number of each product purchased; - Daily sales limit calculation based on the number of products being purchased; and - The prices of each product, total taxes, and any applicable discounts. The Treez system keeps a daily running total of the cannabis sales as each product is scanned; the system will not allow a retail sales associate to add any additional products to the order when the daily sales limit is reached. The total amount due is provided to the customer and the customer provides cash to the retail sales associate. The cannabis products are placed into an opaque exit- package and the customer is given a receipt. Employees will be trained on how to properly handle cash from customers. When customers pay for cannabis products using cash, the employee will accept the cash and place it on a small ledge above the cash register drawer. The employee will enter the amount given into the Treez point-of- sale system that will calculate the amount of change to give to the customer. The employee will count the change aloud to the customer and give the customer their change along with their receipt. The employee will then place the cash payment into their cash drawer. If the customer has provided a bill larger than twenty dollars, the employee will use a currency marker pen to determine the authenticity of the bill. iv. Estimated Number of Customers per Hour and per Day The assumptions for Off The Charts’ customers per hour and per day are based upon Off The Charts’ operating experience in multiple locations in California. Customers per Hour - The pro forma estimates that when we first open our store there will be approximately 5 customers per hour. By month 12, the pro forma estimates approximately 21 customers per hour. Customers per Day - The pro forma estimates a starting rate of 60 customers per day. By month 12, the pro forma estimates approximately 255 customers per day. v. Proposed Product to be Sold and Percentage of Sales of Flower and Manufactured Products Proposed Products to be Sold Off The Charts sources medicinal-use and adult-use cannabis and cannabis products from licensed local distributors. We will always work toward sourcing our products from local distributors, manufacturers, and cultivators. The products sold span a variety of prices, CBD and THC Off The Charts / 1 BUSINESS PLAN Page 21 potencies, and styles to allow all customers the possibility the find and purchase a cannabis product that works for their wants and needs. Off The Charts is invested in offering many different types of cannabis products to its customers. These products will include, but may not be limited to the following: - Cannabis flower. Off The Charts will offer packaged cannabis flower strains including sativa, indica, and hybrid (hybrid is a mix of sativa and indica strains). Different potencies of THC and CBD, prices, and weights will be offered to meet the interests of the Fresno community. Potential brands Off The Charts will offer in this category are: Canndescent and Papa & Barkley. - Pre-filled vaporizer cartridges and pods. Vaporizer cartridges and pods include small vials of cannabis oil that are attached to an apparatus that vaporizes the cannabis oil allowing on to smoke the cannabis. Potential brands Off The Charts will offer in this category are: Flav and Dosist. - Pre-rolls and infused pre-rolls. Pre-rolls, or cannabis rolled like a cigarette, are also known as joints. Pre-rolls can contain only cannabis flower or they can be “infused” with additional ingredients like cannabis oil. Potential brands Off The Charts will offer in this category are: Crown Genetics and Lowell Herb Company. - Cannabis edibles. Consuming cannabis edibles means consuming cannabis infused items like gummy chewables, chips, chocolates, baked goods, and drinks. Potential brands Off The Charts will offer in this category are: Kiva and Kanha. - Cannabis extracts and concentrates. Cannabis extracts and concentrates include but are not limited to tinctures, capsules, wax/budder/crumble, shatter, rosin, distillate, and live resin. Extracts and concentrates can be consumed like cannabis edibles or smoked like cannabis flower. Potential brands Off The Charts will offer in this category are: Bright Labs and Hollister. - Cannabis topical products. Cannabis topical products include items like lotions, creams, balms, oils, and transdermal patches. Potential brands Off The Charts will offer in this category are: Care by Design and California CBD Company. All customers will be met in a positive and unique environment. Off The Charts recognizes the responsibility to ensure customers receive a safe and high-quality interaction with staff members. This is why Off The Charts staff are trained in the knowledge of products, how to interact with a customer properly, how to make a customer feel safe, and how to listen to a customer’s wants and needs to help them find the best cannabis product for them. Percentage of Sales of Flower and Manufactured Products Off The Charts has extensive experience operating cannabis retail stores. As shown in the chart below, based on our own sales data, we expect that: cannabis flower and pre-rolls will make up approximately 60% of sales; edibles and topicals are expected to make up 8% of our sales; and vapes and concentrates are expected to make up 32% of our sales in the City of Fresno. The cannabis market is continuously growing and changing. Off The Charts takes pride in staying up- to-date on new product development, market trends, consumer preferences, and product safety and Off The Charts / 1 BUSINESS PLAN Page 23 - Copy of Off The Charts’ current retail license; - Inventory ledgers; - Employee’s driver’s license; and - Laminated Off The Charts identification badge. Retail Delivery Safety and Security Requirements Order Preparation and Delivery Request Receipts An order fulfillment associate will assemble each delivery order into an exit package. The delivery manager will review the Treez delivery report and confirms each order is accurate. Each delivery order will be stapled close with the copy of the delivery receipt attached. The bag is then placed in a separate lockable container prior to being loaded into the delivery vehicle’s secured lock box. The delivery manager will then prepare a planned route for the delivery driver and ensures not more than in retail value of cannabis goods is in any delivery vehicle at any given time. Medical Recommendation and/or MMIC Verification Off The Charts will verify every customer’s physician recommendation and MMIC when applicable at the time the order is placed by the customer in the same manner explained above when a sale is made in the retail storefront. 3 See Security Plan for additional detail. Off The Charts / 1 BUSINESS PLAN Page 24 Confirming Age, Customer Identity, and Physical Delivery Address Off The Charts requires every customer to provide a valid, non-expired form of identification during the delivery order process and at the physical delivery address before releasing a cannabis order to the person4. If for any reason, the delivery driver does not feel comfortable to deliver the cannabis goods, the delivery driver can determine to not stop and complete the delivery. This occurrence is documented in the inventory ledger and stop log. Cannabis Goods Delivery Service Procedures After accepting and processing the delivery orders, the cannabis delivery orders are consolidated into logical groupings and the delivery manager plans a travel route. The delivery manager verifies the delivery address is a physical address, inside the State, and is not on publically owned land or in a building leased by a public agency. The delivery manager then reviews the travel route with the delivery driver prior to the delivery driver leaving the premises. The delivery driver then loads the cannabis products, already placed in stapled exit bags with the delivery receipt attached, into the delivery vehicle by taking the delivery orders out the back of the premises through the Secure Entry door in the Delivery room as noted on the premises diagram. The cannabis goods are then placed in a locked box in the trunk area of the vehicle. The delivery driver calls the first customer and provides an estimated time of arrival and the delivery route begins. Once the driver arrives at the delivery address, the delivery driver will: - Obtain the delivery order from the trunk area of the vehicle; - Relocks the secure lock box in the trunk area; - Engages the vehicle alarm; - Takes the order to the designated door; - Verifies the identity of the customer; - Collects payment for the cannabis goods from the customer; - Requires the customer to sign the delivery request receipt; - Provides the cannabis goods to the customer; and - Returns to the vehicle. Once in the vehicle, the driver documents the necessary information on the invento ry ledger and stop log. The delivery driver will then call the next customer on the travel route made by the delivery manager and provide an estimated time of arrival. What to Do If a Delivery Order Is Not Deliverable If cannabis goods are not able to be delivered for any reason, the cannabis goods are then returned to the locked box in the truck area of the vehicle. Upon returning to the premises, the undelivered cannabis goods are checked back into inventory by the delivery manager. All signed delivery request receipts, inventory ledgers, and stop logs are given to the delivery manager. 4 See 1.6.1-Identification Verification for ID requirements. Off The Charts / 1 BUSINESS PLAN Page 25 Delivery Request Receipt Off The Charts shall provide a delivery request receipt to the customer upon completion of the sale and purchase of cannabis products. The receipt shall include the following: - Name and address of Off The Charts; - The first name and employee number of the retailer’s delivery employee who delivered the order; - The first name and employee number of the retailer’s employee who prepared the order for delivery; - The first name of the customer and a retailer-assigned customer number for the person who requested the delivery; - The date and time the delivery was made; - The delivery address; - A detailed description of all cannabis goods requested for delivery including the weight, volume, or other accurate measure of the amount of all cannabis goods requested; - The total amount paid for the delivery, including any taxes and fees, the cost of the cannabis goods, and any other charges related to the delivery; and - The date and time the delivery was made and the handwritten or electronic signature of the customer who received the delivery. Delivery Inventory Ledger and Delivery Stop Log During the delivery process, the delivery driver is required to keep a Delivery Inventory Ledger and Delivery Stop Log. Prior to leaving the premises, the delivery driver is provided with two copies of the delivery request receipt. One copy of the delivery request receipt will be stapled to the customer’s exit bag while the other is given to the delivery driver as the Delivery Inventory Ledger’s and Delivery Stop Log. When the delivery driver arrives at the delivery address, the delivery driver will request to see the customer’s non-expired government issued identification to confirm the identity and age of the person who placed the order. If the delivery driver is delivering to a new customer, the delivery driver will ask to as two forms of identification. Upon confirming the identity and age of the customer, the delivery driver accepts the cash payment for the cannabis goods and has the customer sign the second copy of the delivery request receipt. The customer is then handed the cannabis goods in the exit bag that has the stapled delivery request receipt on it. When the delivery driver returns to the vehicle, the signed delivery request receipt includes the type of good, the brand, the retail value, the track-and-trace identifier, and the weight or volume of the cannabis good. The delivery driver documents on the retained delivery request receipt the date and time of the delivery, the delivery driver’s employee ID number, and employee signature, all of which is the Delivery Inventory Ledger and an accurate and updated reflection of the current inventory in possession of the delivery driver. This documentation along with the planned travel route is the Delivery Stop Log, which is accurate and will reflect all stops made by the delivery Off The Charts / 1 BUSINESS PLAN Page 26 driver including deliveries, fueling, breaks, unexpected maintenance, and any other stop for any reason. When the delivery driver returns to the premises, the delivery manager is given all the signed delivery request receipts with the Delivery Inventory Ledgers and Delivery Stop Log information. 1.6.2 Inventory Management We will use Treez seed-to-sale business management software platform as our point-of-sale and inventory tracking software system. This system fully integrates with the state of California’s METRc track-and-trace software system. The manager is responsible for accuracy and timely compliance with all State-required track-and- trace requirements including daily maintenance of data entry or data transfer from Treez and weekly inventory reconciliation. Under the guidance of the manager, the following track-and-trace requirements will be met: - Ensure only authorized employees have access to the METRc track-and-trace system. - Each employee is provided with a unique Treez system log-on and password, and the employee shall only use that log-on and password. - Maintain a complete and accurate list of all track-and-trace system administrators and users. - Accurately record all transactions involving inventory of cannabis products, physical movement, or destruction of cannabis products in the track-and-trace system. - Ensure that all transactions are entered into the track-and-trace system no later than the end of the day that the transaction occurred. - If, for any reason, either Treez or METRc is not accessible, the manager shall create and maintain paper records detailing all transactions that would have been entered into the track-and-trace system. Upon the restoration of access to the track-and-trace system, all transactions that occurred while access to the track and trace system was not available shall be accurately entered into the track-and-trace system. - Only enter accurate information into the track-and-trace system and shall correct any known errors in the information entered into the track-and-trace system immediately upon discovery. Receiving of Cannabis Products in Treez Upon receipt of cannabis products from a licensed distributor, the manager or designated employee enters the following information into our Treez system that then automatically populates the state’s track-and-trace system: distributor’s name and license number; type and kind of cannabis products; amount received, by weight or count; best-by, sell-by, or expiration date of the batch, if any; person who holds title to the cannabis products; date of receipt of the cannabis products; unique identifiers/UID associated with the cannabis products and the batch number; any other information required elsewhere by the State or county cannabis law. METRc Track-and-Trace Software Off The Charts / 1 BUSINESS PLAN Page 27 Per state requirements as required by the Bureau of Cannabis Control, all licensees shall use the METRc track-and-trace software system. The Treez software has an API (application programming interface) that ensures all data and transactions entered into Treez is automatically and electronically sent to METRc continuously. Inventory Reconciliation Off The Charts reconciles inventory every seven (7) days. Reconciliation is a process where the manager compares track and trace reports to Treez reports to ensure correct data entry and accuracy between the two systems. Then all physical inventory will be counted and compared to track and trace system reports. If there is a discrepancy between the physical inventory count and the track and trace reports, an audit will be conducted. After the audit, any discrepancies of physical inventory of more than 3 percent of the average monthly sales for the prior six months that cannot be resolved shall be reported in the track and trace system as well as be reported to the Bureau of Cannabis Control. 1.6.3 Preventing Unauthorized Access to Cannabis Products Preventing unauthorized access to cannabis products involves security measures and security policies and procedures. Employees are trained about their responsibilities to prevent unauthorized access to cannabis. Managers are trained about their responsibilities to ensure adherence and compliance with procedures that have been implemented to prevent unauthorized access to cannabis products. Cannabis products that are not displayed in the customer sales area are stored in the limited-access Product Storage Vault. Access to the Product Storage Vault is strictly managed by our electronic keypad system. Only managers and employees who are assigned to inventory management responsibilities are given keypad access to these limited-access storage areas. Because our keypad security system is electronic, access can be changed in real-time to change any employee’s access as needed. Limited-Access Areas Customers are never allowed in limited-access and employee-only areas. All entry into limited- access areas is controlled by our electronic keypad entry system. If there is a need for non- employees to enter limited-access areas where cannabis products are stored, those persons are required to sign-in and must be accompanied by an employee at times. All non- employees/authorized visitors who are granted access to limited-access areas are required to sign- in/sign-out with the following information: name, company name, reason for visit, data and time of entry/exit (16CCR §5042). Diversion, Theft, and Loss Prevention Our Security Plan (see Section 4 of the Application) details how we prevent diversion and theft of cannabis products. Employees are thoroughly trained on diversion and theft prevention methods and reporting requirements. Video surveillance, METRc track-and-trace inventory reconciliation and audits, confidential reporting of suspicious activities and investigation ensure compliance and proper follow-up. Our primary method for preventing diversion, theft, and loss is the anti-theft stickers placed on all cannabis products. Each individual unit of cannabis product has a magnetic Off The Charts / 1 BUSINESS PLAN Page 28 tag or sticker placed on it. There are sensors at the access point doors that emit a visual and audio alarm signal if the sensor is not deactivated before the cannabis product crosses the threshold of the doorway. These sensors are demagnetized at check-out when the cannabis product is scanned as part of the purchase process. This anti-theft system deters shoplifting by both staff and customers. 1.6.4 Cash Management Traditionally, cannabis has been a cash business. However, Off The Charts’ good banking relationships allow it to accept debit card transactions in addition to cash. Because of these banking relationships, we typically have less cash on-hand than most cannabis retailers. Even so, cash remains an important way that cannabis business is transacted. Accepting Cash from Customers Employees will be training on cash handling procedures. When customers pay for cannabis products using cash, the employee will accept the cash and place it on a small ledge above the cash register drawer. Then the employee will count the change due out loud to the customer as calculated by the Treez POS. Once the customer has been given change, the employee places the cash payment in the cash drawer. If the customer has provided a bill larger than a bill, the employee will use a currency marker pen to determine the authenticity of the bill. POS Cash Drawer Management and Limits At the beginning of each day, each point-of-sale (POS) casher drawer will have a balance of to make change for customers. Throughout the day, when a POS cash drawer contains a total amount of cash, the manager will remove the cash drawer and replace it with a new cash drawer with . The cash drawer with the approximately is taken to the manager’s office where the manager counts the cash and documents the amount on a cash count ticket that is then attached to the cash bundle. The cash bundle is then placed in the cash safe located in Office as labeled on the floor plan. Cash Counting and Reconciliation Cash counting is performed by the manager out of view of general staff and public. Cash counts occur each time the manager removes a cash drawer from the retail sales floor and at the end of the business day. The manager runs a report in our Treez POS to determine how much cash should be in each cash drawer. The manager then counts the cash and documents the cash count result on a cash count ticket that includes the manager’s name conducting the cash count, the amount of cash counted, the date of the cash count and entry into the cash safe, and the manager’s signature. The cash count ticket is then bundled with the cash and placed in the cash safe. The manager also runs an end-of-day report from the Treez POS to determine total sales for the day and reconciles the end-of-day totals with all payment types received from customers. If there is a discrepancy of more than , then the manager conducts an audit that may include recounting the cash, viewing video surveillance, discussing the discrepancy with the employee, and further action depending on the circumstances. Cash Storage in a Safe Off The Charts / 1 BUSINESS PLAN Page 29 Cash is stored in a cash safe in the manager’s Office. The cash safe will weigh at least 800 pounds, be made of metal, be anchored to the permanent structure of the building, be bur glary resistant, and maintain fire resistance for at least one hour. Access to the safe is restricted to managers. The safe shall be closed and locked at all times when the safe is not in active use. Only a limited and necessary amount of cash remains in the cash drawers on the sales floor. Video surveillance records the Office where the safe is located. Cash Payments to Other Cannabis Licensees Off The Charts often transacts business with other cannabis licensees in cash as is standard practice in the cannabis industry. For example, when we receive a delivery of cannabis inventory we may pay the distributor in cash. All cash payments are documented on sales invoices and cash payment receipts at the time that the cash exchange occurs. Cash Deposits into Banking Institution When a deposit of cash needs to be made into a banking institution, a manager removes the cash from the safe and documents it in the Treez POS. The cash is placed in a locking bank bag and taken to the banking institution during daylight hours. A security guard accompanies the manager to the vehicle to ensure safety. Alternatively, Off The Charts may use armored vehicle services to pick-up cash and deposit into our bank. 1.6.5 Product Quality Control Upon receipt of cannabis products from a licensed distributor, the manager conducts an initial quality control review of all cannabis products received. This initial quality control review is designed to ensure that contaminated products, product that might have been damaged in the transport process, or products that are not properly packaged or labeled do not enter into our inventory storage area. Initial Quality Control Review The initial quality control review includes the following items:  Cannabis products are from a distributor with active and valid licenses;  Cannabis products have not exceeded their expiration date, “best by” date, or “use by” date;  Containers holding cannabis products are not damaged and show signs of proper storage, for example, the containers are clean (do not have filth or dirt on them);  Sales invoice and shipping manifest are included and accurate;  Initial inspection demonstrates tamper-evident seal are present and cannabis product packaging is not damaged; and  The laboratory Certificate of Analysis (COA) includes the UIDs of the cannabis products received and is not more than 12-months old. Cannabis Product Testing Off The Charts only sources cannabis products from licensed distributors that meet or exceed laboratory testing requirements. We independently verify on the BCC’s website the distributor’s license and the laboratory’s license to ensure the licenses are current. Only cannabis products that have received a “PASS” designation on the testing result COA are accepted through our receiving Off The Charts / 1 BUSINESS PLAN Page 30 process must be accompanied by a shipping manifest from the distributor and the COA from the laboratory. The COA is further verified in the state’s METRc track and trace system. Employees receiving the shipment of cannabis products verify the following (per 16 CCR §5307): i) the batch number and UID (unique identification number) on the COA corresponds to the batch number and UID on the cannabis products received; ii) the COA is not more than 12 months old at the time that Off The Charts receives the cannabis products; and iii) the THC, CBD, and other cannabinoids on the cannabis product label matches the results on the COA. If any of the above conditions are not met, the cannabis products are rejected. 1.6.6 Enhanced Product Safety Review Off The Charts implements an Enhanced Product Safety Review to ensure customer health and safety. This additional step that we take is to ensure that all cannabis products we sell are of the highest quality and it gives our employees and customers additional confidence that we are committed to the health and safety of our customers. The first time that we order and receive a specific cannabis product into inventory, we put the cannabis product through our rigorous enhanced product safety review that includes regulatory requirements of the BCC and CDPH’s Manufactured Cannabis Safety Branch (MCSB). Once a cannabis product passes our own enhanced product safety review, we conduct the review again each six to 12 months. The BCC does not require retailers to conduct a comprehensive MCSB review, but we strive to exceed state requirements. We only carry cannabis products acquired from licensed distributors that are in finished form and that are packaged and labeled according to strict state requirements. We strictly adhere to all regulations and reject all cannabis products that might be packaged and labelled in a manner that would be attractive to children. All cannabis products we acquire for our retail operations must be packaged and labeled with the required labels and warnings. Our enhanced product safety review includes the following: Packaging Review Our team conducts a comprehensive review of the cannabis product packaging to ensure compliance with CDPH and BCC regulations. Areas of review include the following: i) product container protects the product from exposure to air and other contaminants; ii) tamper-evident seal is secured on the outer packaging; iii) the package is resealable if the product has multiple servings; iv) the packaging is child-resistant (17CCR §40415 and §40417); and v) packaging is not attractive to children (17CCR §40300(k), §40410(b)(2), and §40415(d); 16CCR §5303(a)(1)(D)). Additional packaging review is conducted as follows: Child Resistant Packaging State of California laws and regulations require that all cannabis products distributed to a licensed retailer shall be packaged in child resistant packaging and that the packaging shall maintain its child resistant effectiveness throughout the life of the package. Child resistant packaging is especially important when a cannabis good contains more than one serving. Edible cannabis product child resistant packaging must be effective for the life of the product. Inhalable or topical cannabis products with child resistant packaging effective only until the first opened must have additional label statement of “This package is not child-resistant after opening.” Off The Charts / 1 BUSINESS PLAN Page 31 Product Container Separable from Outer Packaging If the cannabis product has two levels of packaging (an inner package that protects the product and an outer package), then the packaging has additional state requirements. Edible, topical, suppository, and oral concentrate products must meet labeling requirements on both the inner and outer packaging, except cannabinoid content. Inhalable cannabis products must have the universal cannabis symbol on the inner and outer packaging. Edible Cannabis Products Edible cannabis products must be in opaque outer packaging, but may have a clear view strip to view serving markers if any. Labeling A comprehensive review of cannabis product labeling includes a review of the strict labeling requirements set forth by the Manufactured Cannabis Safety Branch of the CDPH and the BCC. Primary Panel Label. The primary panel is the front-facing part of the package label. The primary panel of the cannabis product is reviewed for the following elements: 1) identification of the cannabis product; 2) net weight or volume in metric and U.S. customary units; 3) if edible, the words “Cannabis-Infused” above the product identification and in a larger font; and 4) the universal cannabis symbol. THC and CBD content can be located on the primary panel or information panel. Information Panel Label. The information panel label is an y other part of the package label that is not the primary panel label. The information panel of the cannabis product is reviewed for the following elements: 1) manufacturer’s name, website or phone number, and city, state, and zip code; 2) date of manufacture and packaging; 3) correct government warning (see below); 4) use instructions (method of consumption and preparation); 5) expiration, use-by, or best-by date if any; 6) UID and batch or lot number; 7) cannabinoid content (see below); and 8) when applicable, “For Medical Use Only,” food allergens, product ingredients. Government Warning Label for Flower and Pre-Rolls “GOVERNMENT WARNING: THIS PACKAGE CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” Government Warning Label for Manufactured Products “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. Off The Charts / 1 BUSINESS PLAN Page 32 CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” Cannabinoid Content Cannabinoid content on labels is checked for adherence to state mandated requirements as follows: Edible or Concentrate with Serving Designations 1) THC and CBD in milligrams per serving; 2) THC and CBD in milligrams per package; 3) list in grams or milligrams sodium, sugar, carbohydrates, and fat; 4) if contains allergens, the word “contains” and a list of allergens; 5) all ingredients in descending order of prominence by weight or volume; 6) product expiration date, “use by” date, or “best by” date, if applicable; and 7) Unique identifier (UID) or batch identification number. Additional Requirements for Edibles The words “cannabis infused” shall be included on all edibles. THC and CBD contents shall be expressed in milligrams per serving and milligrams per package. No edible product shall contain more than 10 milligrams THC per serving and 100 mg THC per package. Additional Requirements for Topicals A topical cannabis good for the adult-use market shall not contain more than 1,000 milligrams of THC per package. A topical cannabis good for the medicinal-use market shall not contain more than 2,000 milligrams of THC per package and the label shall in clude the wording “FOR MEDICINAL USE ONLY” and is only sold to medical-use patients. Additional Requirements for Concentrates A cannabis good that contains more than 0.5% alcohol by volume shall be packaged in no more than two fluid ounces and shall include a calibrated dropper. Prop 65 Warning The State of California requires the Proposition 65 warning on most cannabis products. 1.6.7 Cannabis Product Complaints and Cannabis Product Recalls All cannabis product complaints and cannabis recall notifications will be responded to within 24 hours of receipt. If the product complaint is related to retail operations or the surrounding community, the complaint will be handled by our Community Relations contact person. If the complaint is related to a cannabis product or cannabis product recall, the retail manager or an owner will respond to the issue. Cannabis Product Complaints Off The Charts / 1 BUSINESS PLAN Page 33 In the event of a serious adverse event or emergency, customers will be instructed to immediately seek medical attention and/or call 911. A manager shall use the Product Complaint Form to gather and document all complaints received. If the complaint is related to a cannabis product, additional information is needed: 1) complainant’s name and contact information; 2) any illness or injury complained of; 3) detailed description of the cannabis product complaint (i.e. allergic reaction, illness, object in the product, chemical taste, or other dissatisfaction, etc.); 4) events and circumstances giving rise to the complaint, including how the complainant stored and handled the cannabis product; 5) cannabis product name, package type and size, UID and batch number, manufacturer name and license number (the customer will be requested to bring in the packaging and/or take a photo of the package and send it to us); 6) date and location of cannabis product acquisition; and 7) whether the complaint has been referred to anyone else (i.e. public health, law enforcement, etc.). Management personnel will investigate the complaint based on the information provided b y the customer. A thorough follow-up and review of the entire seed-to-sale tracking and notification of appropriate and required regulatory agencies will be completed in a timely manner. A response will be provided to the customer and depending on the outcome of the investigation, we will segregate the batch and implement recall procedures if necessary. Outcomes of the cannabis product complaint process may range from offering the customer to return the cannabis product in exchange for a different product if the complaint is a customer satisfaction issue, to referral to our internal legal department for follow-up. Cannabis Product Recalls Cannabis product recalls can be initiated by the California Department of Public Health, Fresno County public health department, or the licensed distributor or manufacturer in the supply chain. Off The Charts will immediately comply with all cannabis product recall requests. Factors that may necessitate a cannabis product recall include, but are not limited to: - Cannabis product Certificate of Analysis from the licensed laboratory is later determined to be inaccurate; - Cannabis product is later determined to have packaging or labeling that is inaccurate; - Cannabis product has been misbranded; - Cannabis product batch has later become adulterated at some point in the supply chain; - After researching a customer complaint, it is determined that a cannabis product batch should be recalled; and - A cannabis regulating authority requires a recall. Recall Protocol 1. Receive recall notice from BCC, CDPH, other authority, or the licensed distributor or manufacturer of the cannabis products; 2. Begin recall procedures within 24 hours of the recall being initiated; 3. Document the following recall information including: a. Name of cannabis product; b. Date and time of recall; Off The Charts / 1 BUSINESS PLAN Page 34 c. UID and/or batch number; d. Other documentation indicating quantities or counts of the cannabis product that the licensee has taken possession of; 4. Notify all customers via the following methods: a. Post recall notice with all relevant cannabis product information and recall instructions on our website, and use social media and other media as may be determined to be effective; b. Contact each customer who may have purchased the recalled cannabis product via email and telephone to return unused product to the retailer and provide written recall instructions in email and other methods when possible; 5. Quarantine recalled cannabis product; 6. Arrange for a licensed distributor to retrieve unsold recalled cannabis product; 7. Track-and-trace/METRc data entry and on-site documentation will follow the requirements set forth in 17CCR §40268(e). 1.6.8 Records and Record Keeping Per 16CCR §5037 Off The Charts shall maintain its business records in either hard copy or electronic format on the licensed premises for seven years. Records will be stored in a manner that maintains their legibility and protects them from natural or accidental destruction. All records will be made available to authorities upon request. The following records shall be maintained: a) financial records, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration.; b) personnel records including each employee’s full name, social security or individual tax payer identification number, date employment begins, and date of termination of employment if applicable; c) training records including full name of attendees, date of training, and training content; d) contracts with other licensees regarding commercial cannabis activity; e) all local and state permits and licenses; f) security records (except video surveillance recordings that are only stored for 90 days); g) cannabis waste destruction and disposal; h) track and trace data and documentation including shipping manifests; and i) all other documents related to license ownership, employees, and commercial cannabis activity. Additional records that will be produced and stored for seven years include track-and-trace inventory reconciliation reports and any discrepancy audits. Conformance to State and Local Laws, Regulations, and State Licensing Requirements Off the Charts is more than qualified to meet the extensive laws, regulations, and standards imposed on the commercial cannabis industry. Off the Charts has direct experience with cannabis business ownership and operations and has retained the services of a cannabis and land use experts to assist our organization in staying current with the fast-paced developments in cannabis law in everything from state licensing requirements to day-to-day operations. Compliance with California State Laws. The team at Off the Charts has extensive knowledge of how the regulatory framework has evolved and been established in the State of California, most Off The Charts / 1 BUSINESS PLAN Page 35 notably the Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”). We will continue to adapt our programs where necessary to comply with new regulatory requirements as they are developed and implemented by the Bureau of Cannabis Control, Department of Public Health and California Department of Food and Agriculture. Our organization will ensure that our operations are up to date on all the latest developments in cannabis law by working closely with City of Fresno officials to ensure that our program meets the requirements set forth by the State, as well as the City. Moreover, Off the Charts will abide by all other applicable non-cannabis State laws, including but not limited to the California Building Code, California Fire Code, and California Environmental Quality Act. Compliance with City of Fresno Local Laws and Regulations. In addition to Off the Charts’ dedication to running a compliant commercial cannabis business under State laws, Off the Charts has every intention to be at full compliance with all applicable City of Fresno laws and regulations to ensure that Off the Charts is a beneficial asset to the local community and does not cause any nuisance or detriment to the City. Off the Charts will consistently follow all requirements laid out in: (1) Fresno Municipal Code (“FMC”) Chapter 9, Article 33 Cannabis Retail Business and Commercial Cannabis Business; (2) FMC Chapter 15 City Wide Development Code; and (3) City of Fresno’s Application Procedures & Guidelines. Off the Charts is hopeful in the ability to develop strong relationships with the City of Fresno and its residents within. Compliance with State Licensing Requirements. Off the Charts is well aware of the State licensing requirements required in order to operate a commercial cannabis business in the State of California. To ensure that all requirements and applications are submitted to the Bureau of Cannabis Control, Off the Charts has hired an experienced land use and cannabis attorney to assist in this state licensing application process. Off The Charts / 1 BUSINESS PLAN Page 36 Exhibit 1 Off The Charts / 1 BUSINESS PLAN Page 37 Exhibit 1.1.5 A – Letters of Good Standing Off The Charts / 1 BUSINESS PLAN Page 38 Off The Charts / 1 BUSINESS PLAN Page 43 Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 1 2 SOCIAL POLICY AND LOCAL ENTERPRISE PLAN Off The Charts is committed to implementing a social policy and local enterprise plan that focuses on advancing opportunities for all persons, being an equal opportunity employer, and instituting policies that ensure the welfare and safety of its employees, customers, and surrounding community . We provide opportunities and encourage personal growth, and otherwise invest in our human capital. Being selective in our hiring process, hiring from the local community, and providing thorough training are the foundations of our plan. It is important for Off The Charts to hire employees who embrace the legal cannabis industry and will eagerly comply with all cannabis laws, regulations, and ordinances of the City of Fresno and the State of California. We will also provide educational training regarding our goals and the products we have to offer to the City of Fresno and the surrounding communities. 2.1 Living Wage Off The Charts is offering employees more than the current living wage in the City of Fresno. Currently, the minimum wage in the City in 2020 is per hour, with a living wage of (https://livingwage.mit.edu/counties/06019). Salaried employees will be offered above-average compensation among retail manager salaries for the region. Non-management employees will be compensated at an hourly wage of per hour, which is well above the per hour minimum wage and living wage for Fresno. We anticipate a 3% cost-of-living increase each year and have calculated the increase into our financial plan. Retail store management employees will be compensated at a beginning salary of per year in the first year of operations. We have planned that management employees will receive a 3% cost-of-living increase each year in the first three years of operation. Performance bonuses and performance salary increases will be based on each individual manager meeting and exceeding store sales targets and other key performance indicator targets. These performance salary increases are evaluated on a case-by-case basis. 2.2 Employee Benefits Off The Charts intends to offer health insurance plans that employees can opt into. After a probationary period of six months, each full-time hourly employee will receive per month that can be applied toward a health insurance plan offered by the company. After a probationary period of six months, each manager will receive toward a health insurance plan offered by the company. If the employee is covered on someone else’s health insurance plan, Off The Charts will ask for qualifying documentation and will directly contribute the allotted amount to the outside health insurance plan. All full-time employees are eligible for five days of sick-leave each year. After one year of employment, full-time employees may earn one week of paid time off per year. Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 2 2.3 Compensation and Opportunities for Continuing Education and Training We encourage and support employee educational pursuits both within the cannabis industry and outside of the cannabis industry. We will compensate/reimburse college tuition fees up to per year per employee. Employees who wish to attend a community college or four -year college may apply for our company contribution-to-tuition benefit. At the end of a college term, full-time employees may submit their payment receipt and proof that a course was completed (with at least a C grade) to receive the The cannabis industry has many continuing education opportunities offered both online and in- person. Employees may attend live or recorded industry webinars. For example, the California Cannabis Industry Association and The Cannabis Chamber of Commerce offer both free and fee- based webinars. Examples of these webinar topics include compliance with state laws, customer service, cannabis industry knowledge, cannabis strains and effects when used, retail best-practices, etc. Off The Charts will post these continuing education opportunities on its bulletin board in the employee breakroom and employees are encouraged to register for such training. Other continuing education opportunities may be on any topic related to cannabis or general business management. Off The Charts will evaluate these opportunities on a case-by-case basis and pay for the education or training as they are offered. Examples include a bookkeeping course, advanced track-and-trace/METRc training, retail customer service skills, supervising employees, and other such topics. We offer extensive in-house ongoing cannabis industry and product training as part of our retail store management and employee development program. In addition to extensive onboarding training for new-hires, we offer monthly training on a variety of topics to ensure that our employees maintain cutting-edge industry knowledge. Examples of this continuing education and training include the following: - Compliance with local and state laws – Refresher training will be offered as needed on compliance topics. Training will be offered any time a new law or regulation affects how the retail store operates. Our compliance training programs are backed by our cannabis compliance attorney to ensure that the training we delivery is accurate and timely. - Product Vendor Showcases – We invite licensed manufacturing and distribution vendor partners to deliver training about their cannabis products that we sell in our store. Product vendors provide a wealth of information about their products which goes beyond what is found on the product packaging/labeling. Employees enjoy these training sessions, because they are able to increase their expertise on the cannabis products that they are selling to customers and are better able to address customer questions. - Local Grower Day – Local Grower Day is an opportunity for employees to learn about the cannabis plant directly from Fresno-based cultivators. We will invite local cultivators to our storefront to deliver employee training about how their cannabis is grown and manufactured into products. Employees can ask questions and deepen their knowledge about the cannabis plant and growing process. These employee-only training events help employees make connections in the industry and support other local cannabis businesses. Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 3 2.4 Employee Recruiting Only persons who are at least 21 years of age may apply for a position at Off The Charts. Employees may be recruited from the following sources: - Referral from existing employees; - Advertise job availability on popular job posting websites using algorithms and settings that target local users and subscribers; - Local job fairs; - Job postings on Fresno’s Regional Workforce Development Board / Workforce Connection job posting board; and - Other local job posting locations. 2.4.1 Application Process Off The Charts accepts employment inquiries via telephone, email, and our website. Information about open positions will be located on our company’s website. For security and safety reasons, we will not accept walk-in employment inquiries; rather, interested person will be asked to submit a resume for review by a manager. As part of the application process, all applicants will be required to provide the following information: - Name, address, and phone number; - Age and verification documents including driver’s license, passport, birth certificate or other proof that the applicant is at least twenty-one (21) years of age; - Resume and/or previous employment experience including name, address, and contact person for at least three previous employers; - Character references from three people; - Form I-9 and/or evidence of eligibility to work in the United States; - Criminal background disclosure; and - A signed statement under penalty of perjury that the information provided is true and correct. 2.4.2 Compliance With Social Policy § 9-3316(b)(1) of the FMC As part of our overall Social Policy Plan, Off The Charts will work with Fresno’s Regional Workforce Development Board / Workforce Connection and other recruiting sources to identify and recruit individuals who meet one of the criteria detailed in FMC § 9-3316(b)(1)(i-vii). We expect to hire eight (8) full-time and six (6) part-time employees in Fresno. To meet the requirement to employ “a minimum of one-third (1/3) of the total annual work hours at the business who meets” the criteria set forth, Off The Charts will direct its hiring plan according to the following: - At least one of the two managers hired will meet the criteria; - At least two of the six full-time staff-level employees will meet the criteria; and - At least two of the six part-time staff-level employees will meet the criteria; Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 4 The criteria set forth are as follows: (i) annual family income below 80% AMI; (ii) convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current State law; (iii) lives in a low to moderate income census tract in the city for a minimum of three (3) years; (vi) veteran; (v) former foster home youth who was in foster care as a minor; (vi) unemployed; (vii) receiving public assistance. Off The Charts will maintain documented proof of hiring based on the criteria set forth and will provide proof to the City as requested. 2.5 Locally Managed Off The Charts believes that local management of its retail cannabis store is critical to success. Based on our hiring plan, we will have two manager positions at this cannabis retail store. Upon receiving a commercial cannabis business permit from the City, we will begin the recruiting and hiring process and intend to hire both manager positions from the local community. As explained above, one of the managers who will be hired locally will meet the criteria detailed in FMC § 9- 3316(b)(1)(i-vii). The second manager will also be hired locally. Both locally hired managers will be asked to provide proof that they have resided in Fresno for at least one year prior to March 2, 2020. Our recruiting efforts for these manager positions will focus on finding managers with the following prior experience: - Cannabis retail store and delivery service; - Other retail manager experience that includes customer service; - Supply chain and inventory management; - Cash management and reporting; - Highly regulated industry experience could include cannabis, alcohol sales, health care, pharmaceuticals, or other. To ensure a successful launch of the Off The Charts Fresno location, we will have a manager from one of our other stores available to train the locally-hired managers. We expect that this on-site manager training will last from two to four months. We believe that this approach is the best way to ensure that this new cannabis retail store has local management and receives excellent training from an experienced manager in one of our other cannabis retail stores. 2.6 Employee Positions During the first three years of operations, Off The Charts will directly hire a total of 14 employees. Additionally, we will contract for security guards and expect to hire five (5) security guards to cover the security guard schedule. The job descriptions for each position we will hire are provided below. Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 6 - Creating and maintaining customer profiles in Treez. - Responsible for answering phone calls, emails, and other such communication. - Responsible for assisting with the “customer flow” into the retail sales floor and only “buzzing in” customers when there is available space. - Responsible for cleaning registration, lobby, and break room. - Leverage the internet and social media platforms like; Instagram, Facebook, Twitter, YouTube, Google +, etc... to promote our brand. - Handles any other duty as assigned by the Retail Sales Managers. 2.6.3 Cannabis Sales Consultants Cannabis Consultants will be responsible with educating customers on our products and providing sales transactional services. - Educating customers on cannabis products and assisting customers find the cannabis products that meet designed wants and needs. - Checks customer identification and completes sales orders in Treez. - Accurately count cash and provide accurate change. - Issue receipt to customers. - Responsible for sanitizing the counter tops, scales, showcases, showroom, breakroom and bathroom. - Handles any other duty as assigned by the Retail Sales Managers. 2.6.4 Delivery Drivers (1 part-time position) Off The Charts will employ delivery drivers to deliver cannabis product orders received via phone or online. We will only hire drivers who are at least twenty-one (21) years of age, have a valid California driver’s license, have a good driving record, and who have received specific training on the laws and regulations governing cannabis delivery. Only individuals who are employed by Off The Charts and who have received proper delivery employee training shall be permitted to deliver any cannabis and/or cannabis products for our store’s operations. - Pack delivery orders in secure container within the delivery vehicle. - Follow planned delivery route. - Communicate with manager via cell phone if any issues arise during delivery. - Check for valid identification upon arrival at delivery location and only release cannabis products to person whose name is on the order. - Collect order payment and provide change as necessary. - Provide customer with receipt. - Maintain stop logs, inventory logs, and order delivery records to be returned to the manager at the end of each delivery run. Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 7 2.6.5 Security Guards Security guards are not counted as part of the total 14 employees we will hire, because we will be contracting with a licensed professional security guard company to supply these positions. All security guards will be trained and required to perform the following duties while working for Off The Charts: - Ensuring the safety of all personnel on the premises; - Preventing unauthorized individuals from entering and/or remaining on the premises; - Preventing any individuals under the age of 21 from entering and/or remaining on the premises, (unless 18 years or older with valid physician recommendation); - Operating and monitoring the video surveillance camera systems; - Operating and monitoring the security system; - Activating and deactivating the alarm system; - Operating and monitoring the lighting system; - Ensuring that there is no cannabis, tobacco and/or alcohol consumption on or near the premises; - Requiring employees to present employee badges prior to entry; - Ensuring that all visitors and non-employees sign in and out on the visitor log; - Ensuring that all visitors are wearing a visitor badge; - Assisting in security training and bi-weekly reviews of Off The Charts’ security measures, plans, and policies; - Documenting any notable incidents that may occur; - Ensuring that all employees leave safely after business hours; - Observing employee activities to prevent diversion and theft; - Observing the transfer of cash from the premises to vehicles and other cash handling procedures; - Coordinating with other personnel and observing processes when cannabis goods are entering or exiting the premises; and - Any other security and safety tasks to create a secure environment for our customers, employees, products, and surrounding community. 2.7 Labor Peace Agreement At this time, Off The Charts has not begun its hiring process for our proposed Fresno cannabis retail location. Off The Charts will initiate its hiring process only if awarded a commercial cannabis permit from the City of Fresno, and only after such award is official. If awarded a license, within thirty (30) days of our fifth hire, Off The Charts will enter into a l abor peace agreement as is required pursuant to FMC § 9-3316(b)(2). A copy of the executed labor peace agreement will be provided to the City Manager. Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 8 2.8 Workforce Plan 2.8.1 Local Hires Our dedication to the Fresno community starts with our commitment to hire at least 90% Fresno residents to staff our daily operations. Hiring locally includes major benefits such as ensuring tax dollars are invested back into the local economy, reducing the environmental impact of commuting, fostering community involvement, and preserving local employment opportunities. In order to reach this goal, Off The Charts will engage in the following practices as is mentioned above: - Referral from existing employees; - Advertise job availability on popular job posting websites using algorithms and settings that target local users and subscribers; - Local job fairs; - Job postings on Fresno’s Regional Workforce Development Board / Workforce Connection job posting board; and - Other local job posting locations. Owner Norman Yousif has ownership and operator experience with other licensed cannabis retail facilities in the State of California. (See Section 1.1 of the Business Plan for more details). At these locations, Mr. Yousif has utilized the same local hiring preferences and methods laid out above. In doing so, he has achieved employment teams where a vast majority live within 10-30 minutes of his locations. Strategically seeking out local residents provides us with first-hand knowledge of our communities’ varying cannabis needs and trends and helps us expand local job bases. 2.8.2 Apprenticeships and Continuing Education Off The Charts structures apprenticeships as opportunities for employee advancement and continuing education. As our retail store grows and serves more customers, there will be a need to add positions and expand opportunities for our low-level staff employees. Cannabis Retail Management Apprenticeship Program Off The Charts intends to create a retail management apprenticeship program for interested staff level employees. Only our best retail managers will be selected to facilitate and oversee this apprenticeship. Staff level employees will have to meet certain criteria to qualify for this program which may include, but is not limited to: management referral; length of employment; customer reviews; sales; employer loyalty; and cannabis industry knowledge. The management apprenticeship program will consist of shadowing shifts, supervised management shifts, training sessions, and training quizzes. Depending on the time period at which the apprenticeship program is being held, employees in the program may receive the opportunity to attend commercial cannabis networking events or conferences during the program. Off The Charts / 2 SOCIAL POLICY & LOCAL ENTERPRISE PLAN Page 9 2.8.3 Living Wage Our base hourly wage for all full-time and part-time employees is per hour. This hourly rate is more than the City of Fresno’s an hour minimum wage and more than the living wage of per hour. Management employees start at a salary of , which is above average for a cannabis retail store manager in California, and on par with retail store manager compensation in Fresno. 2.9 Social Equity Business Incubator At this time, Off The Charts will support the local community and cannabis industry in numerous ways and support the official Social Equity Business Incubator program, this includes, but is not limited to: 1. Off The Charts’ commitment to working with the Fresno’s Regional Workforce Development Board / Workforce Connection team to initially meet, and in the future exceed, the social policy hiring requirements pursuant to FMC § 9-3316(b)(1)(i-vii); 2. Off the Charts will provide cannabis career training or mentorship services to local qualified residents of Fresno. Qualification criteria may include low-income household, low-income zip code residency, or certain cannabis crimes pre-state legalization. 3. Off The Charts is dedicating 1% of our profits to the Fresno Community Reinvestment Fund. 4. Off The Charts’ commitment to providing cannabis-related crime expungement resources, including: a. Referrals to legal clinics for expungement services and hosting expungement clinics; b. Participation in job fair events focused on outreach to individuals with prior cannabis-related convictions; c. Recruit and hire persons who have been convicted of cannabis-related crimes that could have been prosecuted as a misdemeanor; and d. After one-year of employment, fund expungement services for qualified employee. 5. After a year of operations, Off The Charts will re-visit and analyze our financial ability to serve as a Social Equity Business Incubator. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 1 NEIGHBORHOOD COMPATIBILITY PLAN Neighborhood compatibility is the cornerstone of a commercial cannabis business’s success. Through our team’s experience of developing and operating commercial cannabis businesses in a variety of neighborhoods, Off The Charts understands firsthand how to blend seamlessly into a California community. Our Neighborhood Compatibility Plan will ensure smooth integration into the Fresno High-Roeding community. 3.1 Proactive Community Concern & Response Plan Off The Charts has developed a (1) pre-operations community response plan and (2) an on-going community response plan that will effectively address any complaints related to noise, light, odor, litter, vehicles, pedestrian traffic, loitering, or other similar matters that may arise throughout our operations. Appointed Community Liaison At this time, Off The Charts has selected Norman Yousif to serve as our Community Liaison. Being an owner of three California dispensaries, Off The Charts is confident that Mr. Yousif is more than qualified for this Community Liaison position. Mr. Yousif is knowledgeable with respect to the community goals and objectives of the City which will make him approachable and understanding to the Fresno community. Mr. Yousif’s contact information will be displayed in the front of our building for community convenience. Open House: Community Outreach Meeting If awarded a license, Off The Charts will schedule an open house event for our neighboring residents and business owners prior to opening to the general public. The meeting will be held at our retail facility to provide transparency and allow our attendees to become comfortable with our new business space. At this meeting, the Off The Charts ownership and management team will prepare and provide a presentation that illustrates a comprehensive overview of our retail operations, our safety and security measures, and our community benefits plan. We will then provide an opportunity for attendees to answer any questions or voice concerns. Mr. Yousif’s contact information will be provided at this time. Off The Charts will announce this meeting through mailed out flyers to all neighbors within a 1,500 feet radius of our location and though our Off The Charts website. Virtual Open House: Community Outreach Meeting For interested community members who are unable to attend our in-person open house event, Off The Charts will schedule a virtual open house event. Our virtual event will encompass all of the features of our on-site event. This includes a virtual tour of our retail sales floor area, a comprehensive overview of our operations, and an opportunity to ask questions and voice concerns. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 3 nuisance-based complaints, employee-based complaints, and product-based complaints. At a minimum, employees must record:  the individual’s name, phone number, and email address;  description of the concern;  date and time of the concern’s origination; and  the date and time in which the concern was received. The completed Community Complaint Form is then provided to Mr. Yousif. Mr. Yousif is committed to addressing all submitted concerns within 24 hours when feasible. Once addressed the Community Complaint Form is electronically filed within our records. Nuisance Inspection and Monitoring As a cannabis retailer, Off The Charts does not foresee any objectionable noise, light, odors, or other similar nuisance-like activity projecting from our facility. Nevertheless, our on-going monitoring and inspection procedures will ensure that Off The Charts proactively eliminates any such activity. Off The Charts management and security personnel are responsible for monitoring and assessing the on-site and off‐site nuisance-like activities. Employees will be trained in the identification and detection of noise, light or cannabis odors from the exterior of the building and if they notice any noise, light or cannabis odor, they will immediately notify their manager who will then further investigate the issue and potential cause. If any substantial noise, light or cannabis odors are detected by the public, Off The Charts employees will follow the steps below:  Notify on-site management;  Assist management in investigating the likely source of the noise, light or odor.  Determine if the noise, light or odor traveled off‐site by surveying the perimeter and making observations of existing environmental patterns.  Document the event for further operational review.  Utilize on site management practices to resolve the noise, light or odor event. 3.2 Neighborhood Responsibility Plan Off The Charts understands that in order to be a good neighbor we must proactively develop policies that will mitigate any nuisance-like behaviors. This Neighborhood Responsibility Plan prevents our business from becoming detrimental to the public health, safety, convenience, or welfare of persons residing, working, visiting, or recreating in the surrounding neighborhood. (FMC § 15-2739(B)(1)(c)). The following proven practices greatly reduce our risk of becoming a nuisance to the community. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 4 Noise Prevention Plan No activities conducted onsite will create excessive noise levels. Our exterior tenant improvements will only occur within the hours of 7am to 5pm, Monday- Friday to minimize community disruption. Off The Charts’ use of an existing building greatly reduces the length of construction work and inevitably the noise from such construction work. We will also select reputable contractors that utilize low-noise generating equipment and are sensitive to local businesses and residences near its project sites. Product deliveries will never occur earlier than 6:00am Monday-Friday to ensure little disruption to our neighbors. Product deliveries will take place behind our building in an area closest to our facility and away from nearby existing residences. On-site management and security personnel will be responsible for monitoring noise level and ensuring no gatherings or other unauthorized activity is taking place in and around our property. Reduced Lighting Impact Our property’s proposed lighting is to install 6 security lights around our facility. We will also install 2 security lights in our parking lot area. Off The Charts will select specialized lighting fixtures that minimize the risk of light pollution. All lighting installation will be adjusted to reflect light away from all roads and adjoining premises. Lighting hoods will be installed on our exterior lighting fixtures to prevent spill over into adjacent residences. The exterior of our property, including adjacent public sidewalks and our parking lot area, will be illuminated during all hours of darkness in a manner so that persons standing in those areas at night are identifiable by law enforcement personnel. Our proposed hours of operation for our lighting system is approximately one hour prior to dusk until dawn. (FMC § 15-2739(L)). Odor Mitigation The risk of cannabis odor impacts is minimal for a retail storefront. All products we receive are in finished, tamper-evident sealed, and child-resistant packaging. Packaging is not opened on-site. Nevertheless, Off The Charts will implement a multi-faceted approach to prevent the emission of odor from our facility. This multi-faceted approach will include the facility design, operational practices, cannabis product packaging requirements, and the use of various technology and equipment to prevent and control the emission of odor from our facility. Our extensive odor control plan can be found in subsections 3.3-3.6 of this Neighborhood Compatibility Plan. Through smart design, compliant procedures, and the utilization of best available odor control technology, cannabis odors will not be detectable from within or outside our facility. (FMC § 9- 3307(D)(4)). Signage Plan Off The Charts’ signage will be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 5 Our proposed exterior signage is limited to necessity and nuisance prevention purposes including: (1) business identification signage; (2) City business license sign; (3) No Loitering sign; (4) No Littering sign; (5) “Smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the premises is prohibited” sign; (6) “No person under the age of twenty-one (21) years of age is permitted to enter except persons eighteen (18) years of age and older with proper medical verification documentation” sign; and (7) management contact information. No signs placed on our property will obstruct any entrances or exits to the building or any windows. Under no circumstances will any of our signage be directly illuminated, internally or externally. We will not utilize any banners, flags, billboards, bus shelters, placards, aircrafts, or other prohibited signs or advertisements. Additionally, Off The Charts will not advertise through a person standing on or near our premises with a sign. (FMC § 15-2739(J); FMC § 9-3308(h)). Litter Prevention Off The Charts intends to operate as a professional and clean cannabis business. Our property and all areas within a fifty (50) foot radius of our property will be well maintained and free from blight. We will implement daily sweeps of the exterior of the property including the parking lot, landscaping, sidewalks, and public areas to remove any graffiti, debris, litter, waste, and unsightly items. We will deploy a regular weekly exterior cleaning schedule and will resolve any vandalism within twenty-four (24) hours. (FMC § 15-2739(M)). We will also post a “No Littering” sign outside our facility. Loitering Prevention No gatherings or lingering is permitted at or near our facility. Once a customer has finished shopping at our location, that individual must vacate the premises. Off The Charts’ on-duty security guards will regularly monitor the parking lot and any adjacent property to ensure that these areas are: (a) free of individuals loitering or causing a disturbance; and (b) are cleared of patrons and their vehicles one-half hour after closing. (FMC § 9-3310(b)(2)(vi)). We will also post a “No Loitering” sign outside our facility. No Cannabis Consumption Under no circumstances will cannabis be consumed or smoked by any person on or surrounding our premises. (FMC § 9-3309(a)). On-site management and security personnel will be responsible for monitoring and enforcing this policy. We will also post the following sign at our facility: “Smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the premises is prohibited” Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 6 No Alcohol or Tobacco Under no circumstance will the sale, dispensing, or consumption of alcoholic beverages or tobacco products occur on our premises. (FMC § 9-3309(b)-(c)). Vehicular Traffic/Parking The existing highways and main roads permit for easy access to our location. (FMC § 9- 3308(e)(6)). To demonstrate: - From North: CA-41 South (Yosemite Freeway) and E Shields Ave. - From South: CA-41 North (Yosemite Freeway) and E Shields Ave - From East: CA-180 West and E Shields Ave - From West: CA 180 East and E Shields Ave The City of Fresno requires our existing 1,360 square foot facility to provide 3.02 parking spaces. (FMC § 15-2409). Off The Charts will exceed this parking requirement by providing a total of 7 parking spaces: 6 standard spaces and 1 ADA accessible space and access aisle next. We will also provide 1 motorcycle space in our parking lot area and 2 bicycle parking spaces in the front of our building. Additionally, our proposed parking lot area will be screened and secured by a 6-foot high fence. We also intend to re-pave or “slurry seal” the parking area to rid of the current asphalt cracks and breakage. Pedestrian Traffic Our proposed pedestrian access is safe, convenient, and overall very pedestrian friendly. There are two sidewalks which will be greatly utilized by our customers to access our store and parking area: the sidewalk abutting N. Wishon Ave and the sidewalk abutting E. Michigan Ave. The N. Wishon Ave sidewalk is 12 feet wide, and the E. Michigan Ave sidewalk is 15 feet wide. At the corner of N. Wishon and E. Michigan is an ADA ramp to allow pedestrians to safety walk on to the sidewalk, if not coming from our parking area. We also intend to place an accessible aisle directly next to our ADA compliant parking space, which will allow customers utilizing that space to comfortably and safely exit and enter their vehicles and access our store. No stairs are incorporated into our proposed design or operations. Youth Desirability Prevention Off The Charts understands the importance of eliminating youth’s access to drugs and alcohol. To supplement our committed community efforts to youth empowerment, Off The Charts has incorporated the following design and operational elements: - No Exterior View of Products: Although our interior will be well-lit and our windows unobstructed, Off The Charts will arrange and set up our cannabis products in a manner that will not make them conspicuously visible to the public. Off The Charts intends to install security walls against the windows which face N. Wishon Ave to further discourage any casual or inadvertent “window shopping.” Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 7 - Delivery Vehicle Markings: Our delivery vehicles will be unmarked vehicles with no indication that the vehicles are transporting cannabis or cannabis products. (FMC § 9- 3310(7)). - Soft Building Colors: Off The Charts’ proposed paint and plaster colors will consist of off-white and soft, muted earth tone colors. No bright or bold colors will be used. - No Bright Signage: Off The Charts will not use any bright or colorful building signage. - No Appealing Advertisements: Off The Charts will not engage in any on-site advertisement that uses: (1) depictions or images of minors or anyone under the age of 21; and (2) objects, toys, candy, inflatables, movie characters, cartoon characters, or include any other display, depiction, or image designed in any manner likely to be appealing to children. This is also true for our off-site advertisement. - No Appealing Products: Off The Charts will not sell products that are appealing to minors including packaging or products that resemble cartoon characters, toys, animals, fruits, or similarly-appealing objects. - Security Plan: Compatibility with General Plan, Community Plan, and Development Standards Off The Charts’ proposed location, design, and operations have been tailored to promote the applicable commercial goals and policies of the City of Fresno’s General Plan and the Fresno High-Roeding Community Plan (“FHRCP”). Off The Charts’ Community Liaison will be responsible for closely following any amendments to the community’s goals, objectives, policies, and development standards, so that our business and operations can remain consistent with the City’s progress. The City’s and FHRCP’s commercial goals encompass the following primary principles: (a) Encourage use of underutilized or underdeveloped commercial areas; (b) Utilization of high quality design to enhance commercial areas and strength en Fresno’s economic base; (c) Balance the commercial and residential uses of the Fresno High -Roeding Community through use of City’s urban form concepts; and (d) Minimize the draining of the Fresno High-Roeding Community commercial market to highly competitive new commercial developments outside this community. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 10 including revamped landscaping, new paint, paved parking lot, and more. This will enhance the Fresno High-Roeding community’s mixed-use neighborhood atmosphere by creating an attractive urban environment.  Off The Charts will maintain the existing 12-15-foot wide sidewalks adjacent to our property. This will encourage a pedestrian-friendly neighborhood and further promote a well-maintained balance between the Fresno High-Roeding community’s unique mix of commercial and residential uses. Sierra View 2025: This City vision focuses on the City’s visibility of the Sierra Nevada mountain range through means of cleaner air, enhanced public transportation, and walking and cycling opportunities. Off The Charts will further this vision in the following ways:  Off The Charts has developed several odor and air quality practices and policies, along with having selected industry standard air quality control equipment, including security window seals, air purifier devices, air enhancing plants, and air curtains.  Off The Charts has selected a location that is conveniently accessed by the City’s established public transit system, the Fresno Area Express. The closest bus stop to our location is SW Wishon – Princeton with a Stop ID of 1820 located at the corner of E. Princeton Ave and N. Wishon Ave. From our building main entrance, the bus stop is approximately 335 feet away at a one-minute walking travel time.  Off The Charts has proposed two bicycle parking spaces to promote customer and employee bicycle travel to our location.  Off The Charts will encourage our employees to engage in smart transportation practices, including employee carpooling, utilizing public transportation, or bicycling to work. Solar Valley: This City vision focuses on increasing its use and leadership in renewable energy and improving the efficiency of existing uses. Off The Charts will further this vision in the following ways:  As provided, Off The Charts has selected an existing facility for its proposed business operations. In making our tenant improvements, we intend to make environmentally- friendly energy updates, including but not limited to: o Indoor plumbing fixtures will be replaced with water efficient, low-flow fixtures, including all hand washing sinks and restroom facilities; o Incorporation of native landscaping on the exterior lot of property, including no, or low water use plants; o Installation of high efficiency lighting with daylight and occupancy controls and sensors; o Shading of glazing in sun exposure areas; o Inclusion of energy star appliances and office equipment; and Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 11 o Project monitoring to analyze envelope efficiency including high efficiency building assemblies such as the roof, opaque walls, and glazing. Green Enterprises and Economic Development: This City vision focuses on encouraging business entities to prioritize the “triple bottom line” of providing environmental, economics, and social benefits to the City. Off The Charts will further this vision in the following ways:  Utilize in-fill development to reduce resource waste by selecting an existing building for our proposed operations;  Implement and integrate the environmentally-friendly tenant improvements laid out in the Solar Valley section above;  Developed an extensive Community Benefits and Investment Plan that identifies established funds, donations, and partnerships for and with local community organizations including, Fresno Economics Opportunities Commission and the Poverello House.  Commit to the City’s Social Policy for employment requirements and objectives. City as Good Steward: This City vision is directed towards the City itself in that it encourages the City to engage in sustainable design for its buildings and green practices to lead by example for the private sector and local residents. Off The Charts will further this vision in the following ways:  Off The Charts will follow the City’s sustainable goals closely and support the City in its green building designs and practices. 3.3 Odor Mitigation Plan Off The Charts has developed this Odor Mitigation Plan to proactively ensure that our business operations do not create odor-based nuisance complaints from our surrounding community. A comprehensive overview of our odor mitigation policies and practices are provided below. Engaging in Cannabis Retail Activities Only: Off The Charts will only engage in commercial cannabis retail activities. This alone greatly reduces the possibility of detectable cannabis odors inside and outside of our facility. This is because the Bureau of Cannabis Control (“BCC”) has implemented regulations that restrict a cannabis retailer’s ability to interact with unpackaged cannabis products. The BCC only allows cannabis retailers to accept products that have already been packaged in its final sale form. Facility Windows: Our facility is designed to have no operable windows and will be kept locked and sealed at all times. Smart Odor Eliminating Packaging: Off The Charts intends to obtain a significant selection of products from distributors and manufacturers who use nitrogen sealing in packaging their products to eliminate odor emissions. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 12 Inventory Management: We will only accept cannabis product shipments at limited and scheduled times. All cannabis products will be packaged in sealed boxes and/or containers. The individual products are not taken from the boxes until the boxes are within our secured Delivery Room. Once the products are inspected for no defects, the produ cts are stored in the secured Product Storage Vault until placed in our Customer Sales Floor for sale. These procedures eliminate odor risks. Staff Monitoring & Inspecting: Our on-site management and security personnel are responsible for monitoring and inspecting the facility on a daily basis to ensure no objectionable cannabis odors are emanating within or around our facility. If odors are detected, management must evaluate the odor source, document the event, and determine effective and efficient solutio ns to eliminate the odor issue. Odor Eliminating Facility Equipment: Off The Charts intends to install odor eliminating equipment designed to prevent odors from being detected beyond our property, including carbon filtration, negative air pressure, HVAC s ystems, and air purifying plants. More detail is provided in subsection 3.5 of this Neighborhood Compatibility Plan. Cannabis Waste Process: As a retailer, our cannabis waste will be minimal. Nevertheless, our facility will have secured waste receptacles within our facility to ensure no odors are released from our cannabis waste. Our Cannabis Waste Management Plan is provided in detail in subsection 3.7 of this Neighborhood Compatibility Plan. Additional policies and practices are provided throughout subsections 3.4 - 3.6. The combination of our facility design, standard operating procedures, cannabis packaging combined with the use of technology has proven successful at our other operating facilities and we intend to follow the same procedures in Fresno if awarded a license. 3.4 Potential Odor Sources Our Odor Mitigation Plan has been designed specifically to target the source points of offensive odors, identify the appropriate air-quality management strategies, ensure that proper protocol is in place to maintain the odor control system, and quickly address any/all complaints. Our facility’s potential odor sources include: - Product Storage Room: This is the area where Off The Charts will store the majority of its cannabis product inventory. Due to the high concentration of product, this area will likely be our most odorous area. We will dedicate two Aeris Aair 3-in-1 Pro air purifier device (discussed below) exclusively to this space to eliminate odor at the source. - Cannabis Waste Receptacles: Off The Charts will secure storage receptacles for its cannabis waste within our facility that are separate and distinct from other cannabis goods. Our “secured waste receptacle” utilizes a secure lid which blocks odor from being detected outside the bin. - Customer Sales Floor: Customer Sales Floor will only have the quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale in the retail sales area as required by FMC § 9-3310(a)(5). Therefore, it will generate only limited odor, if any. The odor control units in other areas of the facility should adequately Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 13 mitigate all odor from the sales floor. Nonetheless, two Aair 3-in-1 Pro units will be installed in the Customer Sales Floor area in addition to the other mitigation strategies identified below. 3.5 Odor Control Devices & Techniques Off The Charts has identified odor control equipment proven to eliminate detectability of objectionable cannabis odors within and outside facilities, including adjacent properties or adjacent public right-of-ways. Our equipment will incorporate both an exhaust filtration system and negative air pressure methods. (FMC § 9-3309(j)). Air Filtration & Negative Pressure Systems Off The Charts will install multiple air filtration systems inside and outside of our Product Storage Vault room and our Customer Sales Floor. Off The Charts will install at least 4 Aair 3-in-1 Pro units, sleek and modern air purifiers that blend seamlessly with our clean and modern atmosphere. The Aair 3-in-1 Pro is created with multiple filter layers, including one activated charcoal layers which removes larger pollutants including gases and odors, and one HEPA filter which removes smaller pollutants such as dust particles and certain virus particles. Aair 3-in-1 Pro targets particulates, gas, odor, ozone, pollen, mold, oil droplets, and more. The Aair 3-in-1 Pro uses Indoor Air Quality (IAQ) sensor technology and learns to run more effectively and more efficiently over time. Moreover, Off The Charts will incorporate a negative air pressure system to our Aair 3-in-1 Pro system. Negative air is generated and maintained by a ventilation system that removes more exhaust from the room than air allowed into the room. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 15 Images Source: https://inhabitat.com/infographic-top-18-houseplants-for-purifying-the-air-you- breathe-according-to-nasa/. Window Seals & Inoperable Our building currently has 3 windows. Off The Charts will install security walls on the interior side of the windows that run adjacent to our product shelves. Moreover, our windows will be sealed and no longer operable to minimize detectable odors to the community. 3.6 Staff Odor Training & System Maintenance Staff Odor Training An important aspect of our odor mitigation plan is our well-trained staff. Off The Charts’ on-board training program includes a segment specifically for odor mitigation practices and policies. The training session will cover items such as:  Odor inspection and detection practices;  Keeping the doors closed;  Regularly changing carbon filters;  Odor notification policy;  Inventory management to eliminate odors; and  Odor equipment overview. System Maintenance All odor control equipment and items will be installed prior to having any regulated cannabis product in our proposed building. Prior to opening, Off The Charts will facilitate the design and professional installation of adequate ventilation equipment and complete execution of its ventilation plan. Properly trained employees will service filters and air purification components on a routine maintenance plan, which includes replacing carbon filters regularly for constant carbon activation and performance. Should any issues arise that require skills outside of our internal maintenance crew, Off The Charts shall contact the company who performed the professional installation of the systems. Staff Air Quality Safety Supplementing our commitment for an odor-free atmosphere to our community, we also have a commitment to our employees. In an effort to provide air quality safety for our employees, Off The Charts shall put in place the following practices, policies, and design. Smart Construction Policies: During construction, contractors will be required to follow a construction indoor air quality management plan which includes requirements for a clean jobsite, prohibiting of smoking on-site during construction, protection of air-handling equipment and ducting, protection of absorptive materials stored on-site from moisture damage, and replacement of filtration media prior to occupancy. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 16 Environmentally-Friendly Materials: Low-emitting materials will be sourced and installed for interior paints and coatings, interior adhesives and sealants, flooring, composite woods, and insulation. Entryway Particles: We intend to install entryway systems which capture dirt and particulates entering the building at regularly used building entrances. Negative Pressure: We will provide sufficient exhaust for spaces where hazardous chemicals are used, such as janitorial closets or copying/print rooms as well as the creation of negative pressure with respect to adjacent spaces when the doors to the rooms are closed. Air Filters: Each ventilation system that supplies outdoor air to occupied spaces will have high- efficiency particle filters or air-scrubbing devices. An on-going filter maintenance and replacement program will be established for on-going operations. No Smoking: We will prohibit any smoking on the property and near property lines of adjacent sites. 3.7 Cannabis Waste Management Plan The BCC has implemented regulations that restrict a cannabis retailer’s ability to interact with unpackaged cannabis products. All cannabis products received at our facility are prepackaged and in final form to sell to customers. Because of this, we do not intend to create significant cannabis waste throughout our business operations. Cannabis Destruction Protocol The only events in which cannabis waste will be produced at our site are:  If the cannabis products went unused past the use by or sell by date;  If quality control assessments determine that the cannabis products are unusable i.e. adulterated, which includes inaccurate labeling;  If the cannabis products are subject to recall; or  If the cannabis products have been returned by Off The Charts customers. During each cannabis waste disposal event, one on-site manager and one trained inventory employee will be present. All cannabis products will be destroyed on the licensed premises and in plain view of our video surveillance system. Off The Charts / 3 NEIGHBORHOOD COMPATIBILITY PLAN Page 18 Image Source: https://trash-cans.com/collections/medical-waste-containers-kiosks-trash-cans- bins/products/copy-of-indoor-sharps-disposal-kiosk-square-38-gallons-mw01-s. Off The Charts is proactively taking the necessary steps to set the highest industry standard, by ensuring compliance to cannabis waste disposal requirements set forth by the Bureau of Cannabis Control, California Code of Regulations, Title 16, Div. 42 Bureau of Cannabis Control, Article 7 "Return and Destructions", Section 5055 "Cannabis Waste Management", as well as any regulations established by the City of Fresno. Cannabis Waste Record Keeping All cannabis waste events are accurately and timely recorded in our point-of-sale software system. This includes cannabis product recalls, quarantines and waste destruction and disposal of recalled and/or quarantined cannabis product. Our employees will be trained to log the following for each event:  Name and description of cannabis product being destroyed;  Quantity of said product being destroyed;  Date and time of destruction;  Reason for destruction;  Name of employee(s) responsible for destruction; and  Entity who hauled the cannabis waste off-site if not Off The Charts’ staff. Off The Charts will maintain the records for destruction and disposal for seven years. Off The Charts / 4 SAFETY PLAN Page 1 SAFETY PLAN Developing and implementing a strong safety plan is crucial in operating a compliant and safe commercial cannabis business in the City of Fresno. Wishon Investments is continuously working closing with safety and security professionals to ensure that this plan includes the most efficient safety equipment, policies, and strategies. Continuous work to develop these close relationships help ensures that all employees, patrons, and the surrounding neighborhood and public of Fresno are met with a well-rounded safety plan to protect all. Each employee will be responsible for knowing, enforcing, and abiding by Off the Charts’ safety plan. This safety plan outlines the fire prevention, fire suppression, HVAC system, and the alarm system the facility will have in place as well as Operating Policy/ Procedure to provide guidance relative to any threat to safety or unforeseen incident. 4.1 Professional Fire Prevention and Suppression Consultant This plan was prepared and reviewed by a professional safety consultant. Please see attached letter from CEO of Elite Security in Exhibit 4.1 A. 4.2 Accident and Incident Reporting Procedures In the case where an accident or incident (theft or diversion) has occurred, it is imperative to report these in a timely and sufficient manner. Accidents or incidents that occur on the premises will be documented in an Accident/Incident Report. Managers will complete the Accident/Incident Report with the assistance of the employee who witnessed the events. Employees are tasked reporting all accidents and anything they feel might be incident worthy of management’s attention. All employees are accountable for asking necessary questions about an incident, making a reasonable attempt at determining if an incident has occurred, recording facts and responses to questions, and forwarding pertinent information to a management-level employee. If the situation indicates that an incident may have occurred, employees should assume that an incident has actually occurred and perform the following activities: - Obtain and record the contact information for the individual reporting the problem (name, telephone numbers, and email address); - Record relevant information about the incident (e.g., time/ date of suspected occurrence, type of information compromised, location of the compromise); - Inform the individual to expect contact from a member of management; - Request the individual to treat the incident as a confidential matter; and - Notify the Management Employee immediately of the incident. Except in the case of an emergency needing immediate attention, the Store Manager will determine the category and severity of the incident and will determine the best course of action. All discussions, decisions, and activities are to be documented as described herein. Off The Charts / 4 SAFETY PLAN Page 2 The Store Manager will determine and execute the appropriate response to quickly contain and minimize the immediate impact to personal safety. The information below is a guideline for response and containment in various situations; however, all employees must use their best judgment when determining appropriate actions during an emergency incident. The health and safety of all persons must be the primary driver of any decision. Con tainment activities are designed with the primary objectives of: - Preserving information relevant to the incident; - Minimize harm to individuals - Counteracting the immediate threat; - Preventing expansion of the incident; - Minimizing the actual and potential damage; and - Restricting knowledge of the incident to authorized personnel. 4.2.1 Employee Responsibilities 1. Follow safety rules described in this program, OSHA safety standards and training you receive. 2. Report unsafe conditions or actions to your supervisor or safety committee representative promptly. 3. Report all injuries to your supervisor promptly regardless of how serious. 4. Report all near-miss incidents to your supervisor promptly. 5. Always use personal protective equipment (PPE) in good working condition where it is required. 6. Do not remove or defeat any safety device or safeguard provided for employee protection. 7. Encourage co-workers by your words and example to use safe work practices on the job. 8. Make suggestions to your supervisor, safety committee representative or management about changes you believe will improve employee safety. 4.3 Evacuation and Emergency Procedures The Company recognizes that the safe, orderly, and prompt evacuation of its employees, vendors, and any other building occupants depends upon the establishment of a safe and efficient emergency evacuation plan. Every employee will be trained in carrying out the safe and effective evacuation when the fire alarm sounds or when directed by a public authority or management representative. The fire evacuation plan consists of the following: - Exits will be checked routinely to ensure there are always at least two unobstructed pathways; - Periodic fire drills conducted to ensure employee and vendor familiarity; and - Evacuation diagrams will be posted throughout the building. Off The Charts / 4 SAFETY PLAN Page 3 4.3.1 Evacuation Process. Wishon Investments will implement the following general policies relative to an evacuation process: - Upon discovery of fire or smoke condition, an employee shall immediately sound the alarm by activating the nearest pull station; - Employees must leave immediately and never assume the alarm is a drill; - Employees will be trained to help others, but only if he/she can do so safely; and - Once outside, employees will meet at the designated assembly spot where the acting manager will conduct a head count and report to authorities accordingly. 4.3.2 Emergency Egress The facility has been designed with appropriate lighting and directional signs to safely evacuate the building in case of fire. All exits will meet the distance requirements in the California Building code. The store managers will regularly inspect the facility to ensure that all emergency exits are clear. In order to insure employees can safely and quickly exit in case of an emergency, employees are trained on following policies in addition to their general training. - Ensure familiarity with building’s evacuation plan and all escape routes; - Keep aisles clear so there is a clear path of egress to emergency exits; - Do not wedge or block doors in the event of a fire; and - In event of fire do not reenter building until authorized to do so. 4.3.3 Evacuation Protocols Any management- level employee may determine the need to evacuate an area. Any employee is authorized to evacuate an area in a life-threatening incident, or if the employee reasonably believes a life-threatening incident is imminent. Reasons for evacuation may include, but are not limited to: - Fire. - Bomb threat. - A hostile or violent employee, vendor, visitor, or unknown person. - Power outage. - Earthquake. - Water or gas leak. - Hazardous chemical spill. - Burglary or hostage situation. Off The Charts / 4 SAFETY PLAN Page 4 4.2.3a During a Fire Persons aware of the fire will set off the panic alarm and begin evacuation. When evacuating the building, staff will be advised to feel doors for heat before opening them to be certain there is no fire danger on the other side. If there is smoke in the air, stay low to the ground, to reduce inhalation exposure. Keep one hand on the wall to prevent disorientation and crawl to the nearest exit. Once in a safe location, call 911, give the address of the business, name and telephone number, and stay on the phone until the dispatcher ends the call. If the fire is small, a person on staff who is comfortable with the use of a fire extinguisher may try to put it out. Never fight a fire alone - always maintain an escape route. Notify emergency responders if someone has not arrived at the evacuation assembly location. 4.3.4 Exits and Exit Signage The number of exits at the Facility will be in compliance with the California Building Code and the International Fire Code. These codes require, at a minimum, the following: - All exits will be clearly illuminated by EXIT signage on the roof of the Facility - signs will be clearly visible from both directions; - A Fire Exit Plan will be printed and appropriately displayed on the walls of the Facility; - Egress doors will be installed and required to swing in the direction of egress; - All staff will be briefed on fire safety procedures and a fire safety exercise shall be conducted twice a year. 4.3.5 Security Gates & Egress Doors While the construction plans will not be completed until an approval by the City of Fresno, the following are standards applicable to all of our other facilities: (i) security gates installed at the facility that impact any Fire Exit shall be approved by the Fire Marshal prior to installation; (ii) a Knox box shall be installed on the site which shall only be accessible by the the Fire Marshal; (iii) egress doors shall be allowed to open without the need for a key from the inside. Off The Charts / 4 SAFETY PLAN Page 5 4.4 Location of Fire Extinguishers & Suppression Approved portable fire extinguishers will be supplied at the Facility to give employees and management the means to suppress a fire during its initial or incipient stage. The company will ensure that all portable fire extinguishers are located where they are readily visible and accessible at all times, including one in Lobby, Customer Sales Floor, and Product Storage Vault Room. Proper maintenance of the installed portable fire extinguishers is the responsibility of the General Manager and will be included in their monthly checklist for the operations of the site. All employees will be adequately trained in the use of fire extinguishers and know where the closest fire extinguishers are located. Extinguishers should not be blocked access or covered up. The following training will be provided to all employees regarding use of fire-extinguishers: - Pull The Pin: This will allow you to discharge the extinguisher - Aim At The Base Of The Fire - Squeeze The Top Handle Or Lever - Sweep From Side To Side 4.4.1 Fire Suppression The cannabis retail products, which includes parts of a plant that can be considered a combustible fiber, are only considered hazardous if manufactured, generated or used in concentrations and conditions that create a fire or explosion hazard. There will be no loosely stored combustible fibers, and all material is stored in approved packaging. In a retail facility, the display for resale conditions do not create a fire or explosion hazard that would require a Group H occupancy classification or increased fire hazard. The building does not have fire sprinklers and based on the proposed use it is not required. A fire alarm system w/notification devices and pull stations will be installed at the site. The facility shall be provided with automatic smoke detection as required by the California Fire Code (“CFC”) and California Building Code (“CBC”) and will be monitored at a remote central station. The smoke detection system will be monitored twenty- four seven (24/7) by the same licensed central station that will be monitoring the security system. The security system will use an array of sensors and detectors to monitor the facility. Photoelectric smoke sensors will be attached to the security alarm system throughout the facility which detects smoke and fire. The onsite physical alarm system shall monitor each zone with up to eight sensors to monitor environmental variables including smoke and fire. These sensors will create a system notification (alarm) when fire and/ or smoke are detected. Required fire separations between various operational areas within the facility shall be provided and maintained as required by the CFC and CBC. All exits shall comply with the California Building and Fire Codes and shall be maintained operational at all times. Exit doors shall not require special knowledge to open and will not be secured with surface mounted dead bolts. All interior passage doors shall be rated for the type of construction and shall not be held open with any type of device when part of a required fire separation. When more than one exit is required, Off The Charts / 4 SAFETY PLAN Page 6 exits shall be provided with an illuminated exit sign that is readily visible from any direction of travel. Staff, visitors, vendors, and contractors shall exit the facility using the appropriate exit and in concert with security measures and protocols. The Security Plan shows the location of smoke detectors, fire alarm components, and fire extinguishers. This will be finalized during the building permit stage of the process prior to operations. 4.4.2 Fire Security and Procedures The facility will comply with all local fire code requirements. As part of Off the Charts’ commitment to the safety of our employees, we have developed a comprehensive Fire Plan to address how fires will be prevented and managed/ contained if they do occur. Knowing that people are our most valuable resources, all employees will be trained and required to conduct themselves with consistent due diligence to prevent fires from occurring. Our facility will have the following policies in place: - Unused combustible items, such as unused boxes, paper, and other flammable items must remain clear of workspace; - Items being stored inside each building should not block access to fire extinguishers or other safety equipment; and - Wishon Investments will equip all buildings with a Fire Extinguisher and Fire Alarm Pull Station. 4.4.3 Additional Safety Measures Electrical Safety. Wishon Investments will minimize workplace electrical hazards by specifying electrical equipment and designing electrical systems as required by the National Electrical Code. No Open Flames. The Company has a strict “no smoking” policy to mitigate the risk of any open flames. 4.5 Procedures and Training for All Fire and Medical Emergencies 4.5.1 Fire Safety The facility’s fire suppression system is augmented with human procedures and training to assure that employees are prepared for a fire outbreak emergency. In accordance with its safety goals, Wishon Investments will be establishing and implementing the following fire prevention and suppression policies for its facility: The facility shall have a written and posted emergency operations plan that shall be reviewed at least annually by all staff personnel. Training on emergency systems shall also be conducted annually with all staff; new hires shall be trained in emergency systems and in their individual role within the emergency plan at time of hire. Fire Response Training. The Company will train all its employees on safety procedures and policies in the event of any fire-related emergency as follows: Off The Charts / 4 SAFETY PLAN Page 7 - Employees will be made aware of the locations of circuit breakers and boxes; emergency phones; panic buttons; alarms; fire extinguishers; first aid kits, and the appropriate procedures for using these devices; - Management will periodically test employees on their knowledge of fire safety matters within the facility; - All employees are required to participate in fire drills to test their knowledge in practice. Random drills conducted twice per year will give employees the opportunity to practice protocols and allow Wishon Investments to assess the effectiveness of the training; - In the case that an employee does not implement emergency procedures properly, the employee will be required to review procedures and attend additional training and drill exercises. General Evacuation Training. All employees will receive instruction on the general evacuation procedures to be followed in case of a fire: - How and where to assemble; - Whom to report to; and - How to evacuate disabled persons. 4.5.2 Emergency Preparedness Wishon Investments has established procedures for addressing emergencies and incidents including natural disasters, fire, unauthorized facility access, theft of cannabis products, or release of confidential information. Incident Training. All employees must be required to receive incident management training upon hiring and annually in accordance with the staffing and training policies of Wishon Investments. The store manager will ensure the adequate training of employees. Third- party trainers may be utilized as necessary to ensure Off the Charts’ employees are ready for any situation. The Company’s goal is to ensure the safety of its employees, vendors, and the surrounding community. Accordingly, each of its employees will have the following responsibilities: - Each employee must be familiar with the contents of this plan and must know the location of alarms, utility cabinets, fire extinguishers, emergency exits and first aid supplies. - Receiving training in using a fire extinguisher; - If a management-level employee is not available to make an evacuation decision, all employees shall make a determination with the health and safety of employees and visitors as the primary consideration. - Do not re-enter the building or allow others to re-enter during an emergency. - The Company shall maintain and visibly post a current emergency contact list and evacuation plan. All employees should save emergency contact numbers in their personal cell phones. Off The Charts / 4 SAFETY PLAN Page 8 - Every employee must know the evacuation route and the location of the map. - Regular review of the facility floor plans and evacuation plan maps must be completed by the Retail Director and updated as necessary. OSHA Training Off The Charts will employ within one year of receiving a commercial cannabis business permit, one supervisor and one employee who have successfully completed a Cal-OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. (FMC § 9-3316(c)). Please see Exhibit 4.5.2A for Off The Charts’ executed Cal-OSHA statement. Management Responsibilities. - To ensure an appropriate and timely execution of the proper incident response, all executive employees and management- level employees must ensure The Company does the following: - Develops and maintains this Safety Plan continuously. Identify potential hazards, develop mitigation strategies and improve the response protocols accordingly; - Update management employees and training programs as needed. The building must be stocked with an emergency preparation kit including provisions for sequestration in the building if required; - Maintains an updated emergency notification contact list and maintains an internal contact list and employee notification system via email and text messaging; - Visibly posts all evacuation routes and ensures all environmental detectors and alarms, emergency lighting and exit signs are operational; - Confirms the occurrence of an incident requiring the execution of this protocol; - Secures all products following any instance of diversion, theft, or loss of cannabis and conducts an assessment to determine whether additional safeguards are necessary; - Provides appropriate communication to parties having a vested interest in the incident; 4.5.3 General Protocols for Natural Disasters. The Company will implement policies in anticipation of natural disasters. In general, these policies will include the following: - Determine the extent of the disaster and need for evacuation or sequestration. - Follow any direction given by local officials or law enforcement. - Terminate all non-essential work functions and post necessary closure notices. - Take precautions to secure all cannabis products from the environment or possible looting. Off The Charts / 4 SAFETY PLAN Page 9 - Earthquake Training In the event of an earthquake, Wishon Investments will have in place the following protocols: - If an earthquake should occur, and you are indoors, stay indoors and take cover under sturdy furniture or in a supported doorway; - Be sure to stay near the center of the building and away from glass windows, doors, display cabinets, and book cases; - Do not run for the exit; - If safe to do so, extinguish any fires with a fire extinguisher (do not put yourself in jeopardy of personal harm and do not allow the fire to come between you and the exit). Once the shaking has stopped, if in a safe place, remain there in the event there are aftershocks or sequential quakes; - Do not light or use candles, matches, or other open flames as there could be gas leaks; - Once safe to do so, assist and direct vendors and authorized visitors on the premises out of the building; and - If outside of the premises during the earthquake, move to an open, clear space away from buildings, utility lines and poles, trees, and other free standing objects that could topple or fall. Chemical Spill/ Gas Leak Training Gas leaks in the building require an immediate evacuation until the fire department clears the facility. Any employee discovering a gas leak should shut off the gas source immediately and notify the Management to begin evacuation procedures. Employees should follow the direction of local officials in the case of an external spill impacting operations. Explosion Training In the event of an explosion, whether in the building or outside the building, Wishon Investments will have in place the following protocols: - Remain calm and take cover under a table or desk; - Be prepared for further possible explosions and for debris that may topple or collapse following the explosion; - Stay away from windows, doors, glass fixtures, display cabinets, overhead fixtures, bookcases, and other fixtures that could fall or otherwise cause bodily injury; - Evacuate calmly and assist vendors and others as necessary; beware of potential debris that could collapse or fall; - Open doors carefully, do not use matches, lighters, or open flames, and do not re- enter the affected area until directed by emergency personnel; and Off The Charts / 4 SAFETY PLAN Page 10 - Do not move seriously injured persons unless they are in immediate danger of further injury Bomb Threat Training If any of Company’s employees receive a bomb threat telephone call, they be trained as follows: - Remain calm and listen carefully; - Be polite and show interest; try to keep the caller talking to learn more information; - If possible, during the phone call write a note to a colleague to call the authorities, or as soon as the phone call ends, immediately notify the authorities yourself; - Write down as much detail as you can remember about the phone conversation; do not discuss the threat with other staff, except with management; and Utility Failure/ Outage Training In the event of power outage or utility failure, employees will be instructed to remain calm and stay put; open all available blinds or shades to allow in natural light. If employees are in an unlit area, cautiously proceed to an area with emergency lights (or natural lighting) and call and report the outage; wait for further instructions from the authorities and/or managers. If directed to evacuate, assist authorized visitors, vendors, customers and others as necessary. Civil Disorder and Unrest Training In the event of civil disorder or other civil unrest in the workplace, Wishon Investments will have in place the following training and protocols: - Notify the authorities immediately and any information received, factual or rumored, of a demonstration or other form of civil disorder which is planned or in progress in the vicinity of the building; - Follow the instructions of the store manager (or on-site security guard). - If directed to, and it will not put you at risk of personal harm, assist with protecting objects and product; - Stay indoors and away from windows and doors unless directed to evacuate by authorities or the store manager; - Evacuate when directed and assist others as necessary; - If released from work, follow instructions of the authorities or store manager and do not remain in the vicinity of the unrest or disturbance. Off The Charts / 4 SAFETY PLAN Page 11 Exhibit 4.1 A Off The Charts / 4 SAFETY PLAN Page 12 Off The Charts / 4 SAFETY PLAN Page 13 Exhibit 4.5.2 A Off The Charts / 5 SECURITY PLAN Page 1 SECURITY PLAN Off The Charts / 6 LOCATION Page 3 In addition to being easily accessible by Fresno Police and Fresno Fire, the City of Fresno’s public transit system, Fresno Area Express (FAX), conveniently serves this location. The closest bus stop to our location is SW Wishon – Princeton with a Stop ID of 1820 located at the corner of E. Princeton Ave and N. Wishon Ave. From our building main entrance, the bus stop is approximately 335 feet away at a one-minute walking travel time. This stop serves two bus lines: Bus Line 28 (DSS/Manchester Center/West Fresno) and Bus Line 45 (Herndon/Fruit/Ashlan). Compliance with General Plan, Community Plan, and Development Standards Off the Charts’ proposed location, design, and operations have been tailored to promote the applicable commercial goals and policies of the City of Fresno’s General Plan and the Fresno High-Roeding Community Plan (“FHRCP”). Off the Charts’ Community Liaison will be responsible for closely following any amendments to the community’s goals, objectives, policies, and development standards, so that our business and operations can remain consistent with the City’s progress. The City’s and FHRCP’s commercial goals encompass the following primary principles: (a) Encourage use of underutilized or underdeveloped commercial areas; (b) Utilization of high quality design to enhance commercial areas and strengthen Fresno’s economic base; (c) Balance the commercial and residential uses of the Fresno High-Roeding Community through use of City’s urban form concepts; and (d) Minimize the draining of the Fresno High-Roeding Community commercial market to highly competitive new commercial developments outside this community. Off the Charts’ proposed retail location furthers these principles. To illustrate: (a) Use of Underutilized Commercial Facility. Off the Charts has selected an unoccupied commercial building originally built in 1959 for its proposed operations. If awarded a license, Off the Charts will implement a redesign plan, that will include exterior improvements and landscaping, along with interior tenant improvements to revamp the proposed commercial building. All exterior and interior improvements will work with and around our existing infrastructure with little disruption to the existing environment, if any. (b) Utilization of High Quality Design. All exterior and interior improvements will be in strict compliance with high quality standards provided in the City’s municipal code, including re-paved parking area, the re-painting and re-plastering of the building, and upgraded landscaping through the use of compatible, native greenery. An extensive overview of our proposed building design is provided below. (c) Balance Between Commercial and Residential Uses. Off the Charts understands the importance of maintaining a healthy balance between the commercial and residential uses of the Fresno High-Roeding community. Through our proposed design, we intend to Off The Charts / 6 LOCATION Page 4 promote the neighborhood mixed use and urban form concepts. Our development’s overall image will embrace and create a safe, walkable, and attractive urban environment for the Fresno High-Roeding community and greater Fresno community. Off the Charts shall regularly maintain our landscaping and shall leave the current sidewalk layout untouched as they 12-15 feet width promotes a pedestrian friendly atmosphere. Moreover, our location’s ease of access from E. Shields Ave though N. Wishon’s one-way double lane road ensures operational effectiveness of the street system without frustrating current traffic flow. (d) Enhancing Fresno High-Roeding Community’s Commercial Market. Off the Charts acknowledges that the establishment of highly competitive new commercial facilities in areas outside the Fresno High-Roeding community has drained some of this community's commercial market. The lack of commercial and retail development has forced Fresno High-Roeding community residents to commute longer distances for jobs and retail needs. Conducting commercial revitalization at 2848 N. Wishon Ave is one successful mechanism in maximizing the Fresno High-Roeding community’s commercial market potential. Our revitalization will shed light on existing nearby commercial services and will bring new jobs to the Fresno High-Roeding community residents. 6.1.2 Building Description Our proposed building design was tailored to promote the City’s high quality commercial development standards and fit neatly within the overall urban neighborhood and commercial theme of the Fresno High-Roeding Community. Off the Charts believes in selecting existing facilities for its proposed cannabis operations to utilize available resources and minimize our environmental impact. Off the Charts has a proven record of selecting and revamping existing buildings in a way that provides a fresh and vibrant look to the applicable community. If awarded a license, we intend to bring the same commercial revitalization efforts to the City of Fresno. Our proposed facility was originally built in 1959, approximately 61 years ago. The facility’s most recent use was for a commercial office space. Since, the facility has been unoccupied and underutilized. No major development or construction is being proposed to the existing facilities. However, if awarded a license, Off the Charts intends to make the following property improvements in compliance with FMC § 15-1204 and 15-1205: Building Façade and Entrance: Our building’s front façade and main entrance face N. Wishon Ave. We intend to engage in façade improvements which encompass complementary detailing and quality materials. We intend to re-plaster and re-paint the building with soft muted earth tone colors which will be compatible with the design of other nearby commercial facilities. Our building entrance shall be accentuated with enhanced finishes and materials that are durable and high quality and distinguish our entrance from other elements of the building. We will also utilize landscaping techniques, such as the placement of planters to accentuate the front entrance. Adequate in Size, Shape, & Existing Utilities: Off the Charts has selected an existing building for our proposed location. The existing size, shape, and electricity, sewage, disposal, water, fire, Off The Charts / 6 LOCATION Page 5 and storm drainage facilities have adequately accommodated previous Community Commercial (CC) uses and will continue to be adequate for our proposed operations. Moreover, Off the Charts has experience running commercial cannabis operations in similar settings. Any improvements will be made around or within the existing infrastructure. No changes to the setbacks are proposed. Windows: Our building currently has 3 windows. Our windows shall maintain a consistent design character utilizing the same materials for each window. No bars are installed on the building’s window. However, in order to increase the safety of our facility, we will be installing security walls on the interior side of the windows that run adjacent to our product shelves. In addition to heightening security, this ensures that no cannabis or cannabis products will be visible from any public right of ways. Parking: The City of Fresno requires retail uses to provide 1 parking space per 450 square feet of floor area. (FMC § 15-2409). Our existing facility is 1,360 square feet which results in a required 3.02 parking spaces. Off the Charts will exceed this parking requirement by providing a total of 7 parking spaces: 6 standard spaces and 1 ADA accessible space and access aisle next. We will also provide 1 motorcycle space in our parking lot area and 2 bicycle parking spaces in the front of our building. Our proposed parking design will blend seamlessly with surrounding development. In addition to our off-street parking, our facility is served by 10 immediate street parking spaces: 7 in the front of the facility on N. Wishon Ave. and 3 on the side of the facility on E. Michigan Ave. This eliminates any potential off-site parking issues with nearby residential neighborhoods. Our proposed parking lot area will be screened and secured by a 6-foot high fence. We also intend to re-pave or “slurry seal” the parking area to rid of the current asphalt cracks and breakage. Pedestrian Access: Our proposed pedestrian access is safe, convenient, and overall very pedestrian friendly. There are two sidewalks which will be greatly utilized by our customers to access our store and parking area: the sidewalk abutting N. Wishon Ave and the sidewalk abutting E. Michigan Ave. The N. Wishon Ave sidewalk is 12 feet wide, and the E. Michigan Ave sidewalk is 15 feet wide. At the corner of N. Wishon and E. Michigan is an ADA ramp to allow pedestrians to safety walk on to the sidewalk, if not coming from our parking area. We also intend to place an accessible aisle directly next to our ADA compliant parking space, which will allow customers utilizing that space to comfortably and safely exit and enter their vehicles and access our store. No stairs are incorporated into our proposed design or operations. Loading Area: Any proposed loading activity will take place behind our facility to be screened from nearby residences. Landscaping: The Property’s current landscaping consists of 4 trees and planters along the front and northern edge of the building. We intend to maintain this landscaping in addition to enhancing the greenery of the small yard behind the parking lot. Under no circumstances will Off the Charts plant, alter, or maintain any exterior vegetation in a manner that promotes hiding or suspicious activity. Off The Charts / 6 LOCATION Page 6 Lighting: The exterior of our Property, including adjacent public sidewalks and our parking lot area, will be illuminated during all hours of darkness in a manner so that persons standing in those areas at night are identifiable by law enforcement personnel. Our Property’s proposed lighting is to install 6 security lights around our facility. We will also install 2 security lights in our parking lot area. Off the Charts will select specialized lighting fixtures that minimize the risk of light pollution. All lighting installation will be adjusted to reflect light away from all roads and adjoining premises. Lighting hoods will be installed on our exterior lighting fixtures to prevent spill over into adjacent residences. Signage: Off the Charts’ signage will be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. Our proposed exterior signage is limited to necessity and nuisance prevention purposes including:  Business identification signage;  City business license sign;  “No Loitering” sign;  “No Littering” sign;  “Smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the premises is prohibited” sign;  “No person under the age of twenty-one (21) years of age is permitted to enter except persons eighteen (18) years of age and older with proper medical verification documentation” sign; and  Management/Ownership contact information. No signs placed on our Property will be obstruct any entrances or exits to the building or any windows. Under no circumstances will any of our signage be directly illuminated, internally or externally. We will not utilize any banners, flags, billboards, bus shelters, placards, aircrafts, or other prohibited signs or advertisements. Additionally, Off the Charts will not advertise through a person standing on or near our premises with a sign. Exterior Equipment/Storage/Trash: Our HVAC rooftop structure is placed at the back of our facility for maximum screening from N. Wishon Ave. Our trash and recycling bins will be located within a covered trash enclosure. The trash enclosure is located behind the building with little visibility from N. Wishon Ave. This enclosure features minimizes visibility from customers utilizes our parking area. Off The Charts / 6 LOCATION Page 8 Lobby: The Lobby room is where our customer will enter the building. This room is where all age verification procedures will occur. Our customers will walk up to the check-in counter and provide the requested identification. Once verified, the customer will wait in the lobby, until the on-duty security guard buzzes the customer into the Customer Sales Floor through a secured entry door. Check-In: The Check-In room is where Off the Charts’ check-in staff will conduct our age verification procedures of our customers. Check-in staff will also perform administrative tasks in this area, such as answering phones, recording and filing customer comments, ordering office supplies, and more. This room is not accessible from the lobby. Office: Our Office room is where Off the Charts’ owners and managers will conduct a variety of management administrative tasks such as employee scheduling and employee file maintenance and recordkeeping. Safe Room: Our Safe room is a small secured room with a cash safe. This safe is only accessible by high-level management and the owners. Product Storage Vault: Our Product Storage Vault room holds the secure storage vault where the cannabis inventory is stored. Delivery Room: Our Delivery room is where we facilitate the receipt of product shipments. It is also where are security surveillance equipment will be stored. This room is a limited access room where only designated employees, high-level management, and owners can access. Employee Breakroom (BR): Our Employee Breakroom is located at the back of our facility and is limited to employee access only. It is a standard employee breakroom equipped with employee lockers. Bathroom: Our employee bathroom facility is gender neutral and is located next to the Employee Breakroom. Customer Sales Floor: Our Customer Sales Floor is where our cannabis sales transactions will take place. Prior to entering the area, customers must be verified within our Lobby and Check-In area and subsequently “buzzed in” by a security guard. Customers will never be allowed in this area without an employee of Off the Charts. Once a customer identifies their desired products, our sales associates will enter the purchase at the applicable point-of-sale stations and then exit through the main entrance. 6.1.4 Proposed Interior Design Off the Charts understands that many of our Fresno customers will be new to the commercial cannabis world. Because of this, we are committed to creating a retail experience that is warm, inviting, and comfortable for our visitors. To do so, our interior design focuses on soft modern colors, such as off-white, gold, silver, light gray, and dark gray. We also embody a very clean, contemporary, and professional look with decorative lighting and signage throughout. Although Off The Charts/7 COMMUNITY BENEFITS AND INVESTMENT PLAN Page 1 COMMUNITY BENEFITS & INVESTMENT PLAN 7.1 Social Responsibility Plan Cannabis businesses have a unique opportunity to positively impact communities through economic development and job creation. Our following Social Responsibility Plan will be evaluated and updated each year to ensure that the benefits and investments we make to the local community and its people are aligned with the City’s goals. 7.1.1 Hosting Expungement Clinics and Outreach Services We believe that we have an important obligation to assist individuals who have been harmed by prior cannabis-related convictions that continue to affect the individual’s ability to participate fully in the job market. Off The Charts shall incorporate the following outreach as part of our investment into the community: - Referrals to legal clinics for expungement services and hosting expungement clinics; - Participation in job fair events focused on outreach to individuals with prior cannabis- related convictions; - Recruit and hire persons who have been convicted of cannabis-related crimes that could have been prosecuted as a misdemeanor; - After one-year of employment, fund expungement services for qualified employee; and - Post open positions with Workforce Connection by the Fresno Regional Workforce Development Board. Off The Charts supports social equity causes that affect the cannabis industry. We have found that one of the best ways to reach individuals who could benefit from cannabis conviction expungement services is to provide referral opportunities directly to our customer base. We will have flyers in our Lobby area that relate to applicable expungement services provided by qualified local professionals or groups who can assist. Off The Charts will work with community leaders in outreach that assists individuals in the local area to expunge minor drug-related convictions that prevent them from obtaining meaningful employment. We will partner with organizations such as the National Diversity and Inclusion Cannabis Alliance that have expertise in organizing expungement clinics. As part of our local hiring plan, we encourage those with cannabis convictions who want to work in the legal cannabis industry to apply for one of the many positions we will have open per FMC § 9-3316(b)(1)(ii). In support of this effort, we will work with the Workforce Connection directed by the Fresno Regional Workforce Development Board to actively recruit any individuals with such convictions. On a case-by-case basis, Off The Charts may pay for cannabis-related conviction expungement services after the individual have been employed by us for at least one year and has met specific employment performance evaluation criteria expected of all employees. Our training programs for retail staff members are comprehensive. These training programs are ongoing, offer an excellent opportunity for individuals with prior convictions to learn new skills, Off The Charts/7 COMMUNITY BENEFITS AND INVESTMENT PLAN Page 2 and often lead to new careers with advancement opportunities in this rapidly growing legal cannabis market. 7.1.2 Environmentally Sustainable Business Model Greenhouse gas (GHG) emissions primarily result from the burning of fossil fuels for electricity, heat, and transportation. Knowing this, Off The Charts has evaluated its tenant improvement construction plans and general business practices to ensure that we are implementing an environmentally sustainable business model that supports community goals and the environment. - Building Design and Fixtures The design plan for our location at 2848 N. Wishon Avenue includes using environmentally sustainable building practices and materials, bringing this underutilized building up to current building codes, as well as beautifying the exterior and interior spaces. For all tenant improvements within our facility, we will make green-friendly energy updates. These upgrades include, but are not limited to the following: o Building materials will be selected for high-durability, longevity and ease of maintenance and will include recycled content, FSC certified (Forest Stewardship Certified) woods and regional materials when possible; o Installation of high efficiency lighting with daylight and occupancy controls and sensors; o Installation of energy efficient windows and shading of windows in sun exposure areas; o Purchasing ENERGY STAR certified appliances and office equipment; o Use of environmentally sustainable building materials selected to reduce energy use and environmental pollutants. - Water Efficiency Measures As a cannabis retail store, we will use significantly less water than other commercial cannabis businesses. However, we are still conscious of our water use and will implement water saving measures in our daily business practices. The following is our non-exclusive list of the water conservation measures that we will implement at our proposed location. o Indoor plumbing fixtures will be replaced with water efficient, low-flow fixtures, including all hand washing sinks and toilet facilities; o All landscaping plants will be selected based upon climate appropriateness such as drought and pest resistance; and o All landscaping will be watered using drip irrigation. - Waste Reduction and Recycling Off The Charts will minimize waste through waste reduction practices and recycling. Employees will be trained on appropriate waste disposal, and the non-recyclable waste receptacle will be smaller in size to enforce our initiatives and produce smart disposal practices. We will implement the following measures to reduce waste going to landfills. Off The Charts/7 COMMUNITY BENEFITS AND INVESTMENT PLAN Page 3 o Dedicated waste disposal receptacles for recyclable and non-recyclable waste; o Ensure that landscape waste is properly composted by our landscape maintenance service provider; and o Implement a battery recycling program for employees and customers. Off The Charts will implement a battery recycling program. As a cannabis retailer, we may encounter situations in which battery-based products need to be discarded. To increase the efficiency of our recycling program, we have reviewed the latest laws, regulations, and practices to engage in smart battery recycling. We are aware that the improper disposal of batteries is an increasing concern for the State of California. In order to ensure the waste from battery operated products we sell do not end up in a landfill, we will do the following: (1) establish a “take back” program in which we provide our customers with a small deposit refund if they return the product’s battery to our facility; and (2) develop informational materials to address proper battery disposal to provide to customers upon purchase of battery operated products. - Avoidance of GHG Vehicle Emissions Off The Charts understands that vehicles cause the largest amount of GHG emissions amongst human activities. Because we will offer retail delivery services, reducing GHG emissions is a priority for our operations. o Delivery Vehicles. We will lease vehicles from a local auto dealer for our cannabis delivery service that are zero-emission or low-emission vehicles. o Delivery Service. Offering delivery service to customers actually reduces traffic and greenhouse emissions due to the following: - Vehicles used for delivery service will be zero or low emission vehicles; - Delivery routes are planned to ensure the most efficient route; - Delivery can be scheduled during non-commuting times of the day to reduce traffic congestion and vehicle idling. o Encouraging Environmentally-Friendly Employee Transportation. Off The Charts will encourage its employees to engage in sustainable transportation practices. This includes: (1) carpooling to work with other employees who share the same shift schedule; (2) utilizing public transportation (our location is 1 block from the SW Wishon – Princeton bus stop); or, (3) riding a bicycle. - Easy Public Transportation Access Our location contributes to our environmentally sustainable business model because we are easily accessible by public transportation and near other commercial businesses. The closest public transit stop is the SW Wishon – Princeton bus stop that is 1 block away and just a 1-minute walk. There are also numerous additional bus stops nearby. We are located approximately 1 mile from the Manchester Transit Center. The FAX – Fresno Area Express System Map demonstrates our proximity to public transportation. Off The Charts/7 COMMUNITY BENEFITS AND INVESTMENT PLAN Page 6 - A minimum of 30 (thirty) volunteer service hours will be Poverello House. There are numerous volunteer activities that can be supported by our employees. On a monthly basis, managers will post the volunteer needs of Poverello House and employees can sign up. Initially, we believe that we can immediately impact the community by assisting with Food Distributions and Food Services Home Delivery by using our company zero-emission or low-emission vehicles to deliver food to those in need. Note that our delivery vehicles do not have any marketing or cannabis-identifying symbols on them and our employees will not wear identifying clothing when volunteering and/or providing community service. Absolutely no cannabis deliveries will be made simultaneously with community service food delivery. Community Organization Benefit Fund: Off The Charts is committed to providing two percent (2%) of its profits to local community organizations. Our monetary donation of up to 2% of our profits may be given to FEOC, Poverello House, or other local organizations who seek assistance and align with our community benefit goals. Time Off to Volunteer. The cannabis industry naturally attracts employees who enjoy giving to their community. Our time-off-to-volunteer is a program that is run by local management where employees receive their regular pay while volunteering at the charity organizations that we support. Employees who wish to volunteer at the Fresno Economic Opportunities Commission or Poverello House will be paid during their volunteer time for one-hour of paid time per month per employee. Food and School Supplies Drives. Food Collection Drives are an important activity that brings together our employees and customers in support of their own community. During the months of November and December, we have food collection barrels in our lobby to encourage giving. To ensure that our food drives are meaningful to employees, we ask empl oyees which local organization they wish to donate the food that is collected to. This practice increases food donations and increases employees pride within the community. During the months of July through August each year we host School Supplies Drives where employees and customers can purchase new school supplies and drop them off at our retail store. We will ensure that donations like pencils, paper, erasers, folders, highlighters, zippered pouches, glue sticks, and other much needed school supplies are given to local school children. Off The Charts will purchase at least five backpacks and work with local charities such as the United Way to determine the number of backpacks needed. 7.1.5 Community Education Efforts As is detailed in our Neighborhood Compatibility Plan, Off The Charts intends to propose several different educational outreach methods to ensure the Fresno community is confident in our operations prior to opening. To summarize here, this includes: Community Outreach Meeting: Off The Charts will host community outreach meetings to provide a comprehensive overview of our operations and provide neighboring residents and business owners with an opportunity to ask questions and voice concerns. Off The Charts/7 COMMUNITY BENEFITS AND INVESTMENT PLAN Page 11 verification procedures; strict signage and advertising policies; and strict quality assurance of our products and its child-resistant packaging. Responsible Operations. Lastly, Off The Charts has a record of responsible and reputable cannabis business operations. As provided in the Business Plan, both the City of Palm Springs and City of Vista have provided “good faith operator” letters to Off The Charts other retail locations. Accordingly, the City of Fresno can feel confident in awarding us a cannabis license and in that we will operate in strict compliance with our youth diversion prevention measures. 7.3 Fresno Community Reinvestment Fund Off The Charts is not applying as a social equity applicant. However, it is important to us that we support other local cannabis businesses to ensure that as a cannabis industry we contribute in positive ways to the local cannabis community. This is why Off The Charts is dedicating 1% of our profits to the Fresno Community Reinvestment Fund. This is in addition to our 2% profit contribution to local community organization. We believe it is important to eliminate the gap between those who have been unfairly harmed by cannabis laws and those who have greatly benefitted from them. 7.4 Energize Fresno Off The Charts’ proposed location for a cannabis retail store is in the Fresno High-Roeding Community. While the Fresno High-Roeding Community is not officially part of the Energize Fresno Project Area that encompasses the Blackstone Corridor and Downtown communities, we believe that our building design and delivery plan will contribute to the City of Fresno’s roadmap to become an Advanced Energy Community. Wishon Investments, LLC 2221 Camino del Rio South, Ste 207, San Diego, CA 92108 Wishon Investments, LLC Zoning Inquiry P20-03905 2848 North Wishon Avenue Page 2 November 17, 2020 The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business. 3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC. 4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District), they shall be dispersed evenly by Council District. The subject property is in Council District 1. There are currently no cannabis retail businesses located in Council District 1. This location requirement is satisfied for a cannabis retail business. Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8056 or at Robert.Holt@fresno.gov. Cordially, Rob Holt, Planner III Development Services Division Planning and Development Department