HomeMy WebLinkAboutC-20-42 Element 7 Fresno LLC RedactedApplicant (Entity) Information
Application Type
Proposed Location
Commercial Cannabis Business
Permit Application
C-20-42
Submitted On: Dec 04, 2020
Applicant
Robert DiVito
info@e7ca.com
Applicant (Entity) Name:
Element 7 Fresno LLC
DBA:
--
Physical Address:
4686 E. Kings Canyon Road
City:
Fresno
State:
CA
Zip Code:
93702
Primary Contact Same as Above?
Yes
Primary Contact Name:
Robert M. DiVito Jr.
Primary Contact Title:
Founder and CEO
Primary Contact Phone:
Primary Contact Email:
robert@e7ca.com
HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR
ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?:
Yes
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:
Antoun Amsih Kalioundji
Proposed Location Address:
4686 E Kings Canyon Road
City:
Fresno
State:
CA
Zip Code:
93702
Property Owner Phone:
Property Owner Email:
tony@kalioundji.com
Assessor's Parcel Number (APN):
470-08-227
Proposed Location Square Footage:
Supporting Information
Application Certification
5500
List all fictitious business names the applicant is operating under including the address where each business is located:
E7 Fort Bragg LLC (342 N Main Street, Fort Bragg CA); Jason Lilly LLC dba Kannabis Works (2016 S Susan St, Santa Ana CA); E7
Rio Dell LLC (281 Wildwood Ave, Rio Dell CA); Element 7 South San Francisco LLC (337 Littlefield Ave, South San Francisco CA).
NB: Licenses for Rio Dell and SSF issued by BCC. Businesses will be operational in December 2020.
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?
Yes
If so, please list and explain:
Element 7 are under application in a number of other cities in California including Marina, Firebaugh, Walnut Creek, Willows,
Dunsmuir, Willits, Mendota, King City, Oakland, Wildomar City, Crescent City, Salinas, Atwater, San Luis Obispo, Napa City, Chula
Vista, Contra Costa County, Los Angeles, Lemon Grove, Port Hueneme, Suisun City, San Francisco, Fairfax, Riverside County, and
Ukiah. Applications are at varying stages of review and approval and financing is in place for all contemplated operations.
I hereby certify, under penalty of perjury, on behalf of myself
and all owners, managers and supervisors identified in this
application that the statements and information furnished in this
application and the attached exhibits present the data and
information required for this initial evaluation to the best of my
ability, and that the facts, statements, and information
presented are true and correct to the best of my knowledge and
belief. I understand that a misrepresentation of fact is cause for
rejection of this application, denial of the permit, or revocation
of a permit issued.
In addition, I understand that the filing of this application grants
the City of Fresno permission to reproduce submitted materials
for distribution to staff, Commission, Board and City Council
Members, and other Agencies to process the application.
Nothing in this consent, however, shall entitle any person to
make use of the intellectual property in plans, exhibits, and
photographs for any purpose unrelated to the City's
consideration of this application.
Furthermore, by submitting this application, I understand and
agree that any business resulting from an approval shall be
maintained and operated in accordance with requirements of
the City of Fresno Municipal Code and State law. Under penalty
of perjury, I hereby declare that the information contained in
within and submitted with the application is true, complete, and
accurate. Iunderstand that a misrepresentation of the facts is
cause for rejection of this application, denial of a permit or
revocation of an issued permit. A denial or revocation on these
grounds shall not be appealable (FMC 9-3319(d)).
Name and Digital Signature
true
Title
Founder and CEO
Please note: the issuance of a permit will be determined based
on the application you submit and any major changes to your
business or proposal (i.e. ownership, location, etc.) after your
application is submitted may result in a denial.
All applications submitted are considered public documents for
Public Records Act request purposes.
For details about the information required as part of the
application process, see the Application Procedures &
Guidelines, City of Fresno Municipal Code Article 33 and any
additional requirements to complete the application process. All
documents can be found online via this link.
For questions please contact the City Manager’s Office at
559.621.5555.
1
FORMAL LETTER OF INTENT TO LEASE REAL ESTATE
The purpose of this Formal Letter of Intent to Lease Real Estate (the “Letter”) is to set forth some of
the basic terms and conditions of the proposed Lease by the undersigned, ELEMENT 7 FRESNO
LLC of California (the “Lessee”) of certain real estate owned by ANTOUN AMSIH KALIOUNDJI
(the “Owner” or “Lessor”), for property at 4686 E. Kings Canyon Road, Fresno, CA 93702, that
will be leased to Lessee on the terms of this Letter (the “Property”).
The terms and obligations set forth in this Letter shall be non-binding until a comprehensive “Lease
Agreement” is negotiated and duly executed by the parties.
1. PROPERTY ADDRESS: The Property is located at 4686 E. Kings Canyon Road, Fresno, CA
93702 and is an approximate 6,000 square foot building that Lessee proposes to improve and lease for
a cannabis storefront retail facility.
2. LEASE PRICE AND TERM: The parties agree that the Lease amount for the Property shall be
per month with the first month commencing 30 days after Element 7 secures its cannabis
permits from the City of Fresno.
Lease shall be for an initial term of five (5) years. Lessee shall have the right to extend the Lease
Agreement for an additional three (3) five-year terms.
Long-Form Lease Agreement to be completed within six (6) months of the date of this Letter.
3. USE OF PREMISES: The Property will be used for a legal and licensed commercial cannabis
use (retail dispensary with delivery) and the Owner consents to such use for the Term of the Lease.
All property improvements and buildout costs related to and necessary for the operation of cannabis
business shall be paid for by Lessee. Lessor shall cooperate with Lessee for all Use Consent Forms
and verification of the Property for Sensitive Uses. Lessor warrants that Property has at least 120
Amps for Lessee’s power requirements.
4. INSPECTION PERIOD: Lessee shall have a thirty (30) days Inspection Period to determine if
there are any structural, mechanical, plumbing or electrical deficiencies, structural pest damage or
infestation, any unsafe conditions or any other damage or unsatisfactory conditions of any kind or
nature, including the presence of radon gas, any lead-based paint hazards, other conditions that are
customary to the locality and/or that are required by law. During the Inspection Period, the Owner
shall provide Lessee with reasonable access to the Property for purposes of any and all such
inspections. Any written reports on subject property shall be provided to ownership at no cost.
Inspection Period also covers verification for Sensitive Uses.
5. OCCUPANY: The parties agree that occupancy shall commence as and when the Lessee receives
its contemplated permits and licenses for its business from the City of Fresno and State of California,
and building is complete and Occupancy Permit is issued. In the event that Lessee does not receive
the anticipated and sought permits and licenses, this Agreement will terminate.
6. STANDARD PROVISIONS: The Lease Agreement will include the standard provisions that are
customary to the locality and/or that are required by law, governed by State of California.
7. STAND STILL: Lessor shall not initiate or carry on negotiations for the lease or sale of the
Property with any party other than Lessee unless either (1) Lessee and Lessor fail to enter into a
binding Lease Agreement during the Application Licensing Period, or (2) Lessee and Lessor mutually
agree in writing to abandon this Letter of Intent and all of its provisions.
8. CONFIDENTIALITY. The terms of this Letter of Intent are confidential among the Parties and
their offices, employees and advisers. Neither party will authorize or release any publicity or disclose
2
details of this Letter of Intent without the express written permission of the other party. This clause
shall survive the expiration or termination of this Agreement.
9. OTHER PROVISIONS. Lessee and Lessor agree that the above paragraph entitled “Stand Still”
shall be binding until a Lease Agreement is signed between the parties.
If you would like to move forward with the drafting and execution of a binding and formal Lease
Agreement with the undersigned on these general terms, please sign and return a copy of this Letter of
Intent to the undersigned at your earliest convenience.
The above Letter reflects generally our mutual understanding and sets forth the basis for proceedings
to negotiate a Lease Agreement as outlined above. Only a fully executed lease agreement shall the
binding agreement to both parties.
ANTOUN AMSIH KALIOUNDJI
Name: Antoun Amsih Kalioundji
Date of Acceptance: December 2, 2020
ELEMENT 7 FRESNO LLC
________________________________________________________________
Name: Robert DiVito
Date of Acceptance: December 2, 2020
)
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
1. BUSINESS PLAN
Introduction
Element 7 is seeking approval to build and operate an integrated Cannabis Wellness
Lab at 4686 E. Kings Canyon Road, Fresno and believes this location is the optimal
location in Fresno to compliantly serve the estimated 75,000 cannabis consumers
living in Fresno. Over the last 18 months, Element 7 has had numerous discussions
with City Staff, local residents, business owners, stakeholders, and other persons in
Fresno.
Our efforts to educate the City date back to 2018 when Element 7 delivered an
educational packet to the Planning Department, attempting to demonstrate what
compliant operations could look like in the City. All of these conversations led us to
4686 E. Kings Canyon Road which we hope will serve as Element 7’s home in the City.
We have educated, re-educated, engaged, and listened to many of the local
businesses, gathering encouragement through these discussions and Letters of
Support from over a dozen local businesses (as shown on the map below), including
our two nearest property line neighbors – Auto Zone and Kings Canyon Veterinary
Foundation to the immediate east and west of our location.
ELEMENT 7: BUSINESS PLAN
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partners in each municipality that have local retail experience, creating a back-end
platform driven by technology that allows us to scale operations across multiple stores
for efficiency, and further building a culture that creates trust, respect, new business
solutions, and collective well-being.
Element 7’s model has been built by finding the best talent in the cannabis industry,
supplementing that with proven retail talent and experience from traditional retail. Our
architects, contractors, vendors, and technology suppliers mostly come from traditional
retail backgrounds, working with companies like Samsung, AT&T, Verizon, Starbucks,
Coffee Bean and Tea Leaf, and Kohl’s. These partners bring the understanding,
discipline and models required to break ‘traditional cannabis thinking’ that we think
often holds back the industry from developing professionally or at a pace required to
meet changing and evolving consumer need-states.
If awarded a permit in Fresno, Element 7 will leverage the experience, skillsets, and
extensive accomplishments of the Element 7 team to create and scale a cannabis
business that maximizes revenue, jobs, and taxes for the City, while striving to be the
most controlled, compliant, taxed, tested, and trusted cannabis operator in the City. The
Element 7 team brings a wealth of experience, management understanding, and
operational expertise across the cannabis industry, other regulated industries, and
cannabis retail. The Executive Team, supported by its advisory board of industry
experts, is well- equipped to navigate the legal processes in establishing and
maintaining profitable and legal cannabis operations throughout the state. Specific
employee’s, described below, will serve as Element 7 Fresno’s day-to-day operational
team, supported by staff that will be hired from the local community (single page
supplement CV’s for major owners that hold more than 20% of the equity, and
retail employees included at rear of this section to assess retail experience).
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
Additional information is included on the next pages for the major two owners (DiVito and Malatesta) and employees /
consultants that have some input on the retail strategy within the business.
ELEMENT 7: BUSINESS PLAN
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better trained than any other cannabis staff in the industry. Our 2nd dispensary, The
Bakery by Element 7, opened in Fort Bragg in November 2020. Element 7 initially
applied for this permit in January 2020, was approved in May 2020, and commenced
construction in September 2020, demonstrating our ability to win permits and become
operational. The dispensary opened November 18, 2020.
Site works were completed on October 29 after 6 weeks of construction. 100% of the
staff hired for Element 7 Fort Bragg are local to the City which is something we are
incredibly proud of. We are in the process of unionizing the store under the UFCW.
ELEMENT 7: BUSINESS PLAN
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Element 7 has expanded to two construction crews in the last month since completing
site works in Fort Bragg. One crew is currently in Rio Dell completing works for
Element 7 Rio Dell (opening December 18) with a second crew constructing Element
7 Marina and South San Francisco (both opening January 2021).
Executive Team
Element 7’s Executive Team will support all local operations under an annual
management contract. The Element 7 team brings a wealth of experience,
management understanding, and operational expertise across the cannabis industry,
other regulated industries, and retail operations. In addition, Element 7’s operational
team has extensive experience working with vendors and suppliers necessary to
construct, remodel, and successfully operate facilities associated with cultivation,
testing, processing, and dispensing regulated cannabis. The Executive Team,
supported by its advisory board of industry experts, is well-equipped to navigate the
legal processes in establishing and maintaining profitable and legal cannabis
operations throughout the state. The Executive Team provides oversight, financial
control, compliance, risk management, and retail operations management guidance to
the day-to-day operating team and staff of the organization. Specific employee’s,
described below, will serve as Element 7 Fresno’s day-to-day operational team,
supported by staff that will be hired from the local community.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
ELEMENT 7: BUSINESS PLAN
Material on this page is requested to be exempt from disclosure under FOIA because it contains critical infrastructure
information highly confidential security information business structure and trade secrets.
Strategic Advisors
Element 7's Strategic Advisors comprise some of the cannabis industries biggest
names, leaders and experts. The Advisers meet four (4) times annually to review the
Element 7 Fresno business plan, operations, financial performance and specific
benchmarks set for compliance, control, product quality, systems and processes. Our
Advisors include one of North America's leading marijuana law reform advocates, a
former Lieutenant Colonel in the US Army, one of North America’s leading R&D
specialists, a pharmacist, and a fire safety expert that has over 3 decades of fire safety
experience, and experts in climate change, HVAC and odor control, and waste
management.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
Testimonials
Here are just some of the things our colleagues and respected peers in the industry
say about us:
“Element 7 are the real partner for social justice and reform in an industry where many
have taken advantage of minority communities. In the Los Angeles Social Equity
Program, no other cannabis company came close to offering fair terms like the team
at Element 7 offered equity candidates.”
Bo Money, Founder and Director, NDICA
“Element 7 have been a strong supporter of UCLA and our Cannabis Research
Initiative since it was formed in 2018. I not only value their support for advancing the
cannabis industry and cause, but also their friendship, integrity, and trust.”
Dr. Jeff Chen, Founder and Lead, UCLA Cannabis Research Initiative
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
“Element 7 are a true advocate for social justice and change in an industry that needs
more honesty and diversity.”
Scheril Murray-Powell, Cannabis Advocate, Activist, and Attorney
“Element 7 have been a great partner of Diverse Real Estate Solutions, a multi-billion
dollar cannabis property and investment group. We value their hard work, commitment
to doing things right, and ethics.”
Charlie Copelan, Partner, Diverse Real Estate Solutions
“Element 7 are a company with a strong vision, focused on understanding the customer
and building a long-term sustainable cannabis business in a nascent and emerging
California industry.”
Jonathan Jenkins, Co-Founder and Chief Operating Officer, Weedmaps
“Element 7 bring a level of professionalism and integrity to the cannabis industry. They
are focused on doing things right and building a business that can stand the test of
compliance and continued regulation.”
Bob Hoban, Founder, Hoban Law Group
Element 7 brings diverse retail experience to Fresno - an understanding of the
California cannabis retail landscape, scaled operations, vertical integration to support
price and value initiatives, and traditional 'big box' and 'big brand' retail knowledge. Key
management including Robert DiVito, Mark Malatesta, Neil Demers, Nicholas Jack,
and Josh Black have over 50 years of cannabis and traditional retail experience
between them, having worked at and with companies including Kohl's, Dell, Black &
Decker, PepsiCo, Quaker Oats, Coca-Cola, Target, Walmart, Sam’s Club, Macy’s,
Guess, and Levi. Element 7's business model is driven by efficiency, scale and having
a very localized footprint. Element 7's promise is 'exceptional experiences at
everyday prices'. Our matrix management approach allows us to stay agile and
nimble, ensuring that front- line staff has the expertise, authority, and direction to work
efficiently while adhering to a rigid set of policies and practices that standardize our
commitment to excellence in serving our customers.
1.2. Budgets for Construction, Operations, Maintenance, & Other Costs
Site Work Construction Costs
Element 7 has identified property for lease at 4686 E. Kings Canyon Road, Fresno as
an optimal location for retail operations. The property is currently vacant and presents
5,700 square feet of operational space for an integrated Cannabis Wellness Lab
which will include a cannabis learning center, retail dispensary for medical, wellness,
an adult-use customers, and an E7 EQ HUB that will allow a local cannabis
entrepreneur to create and scale their business alongside Element 7 who will coach
and mentor them through the process. Each two years, a new entrepreneur will be
chosen from the Fresno community to run through a cannabis local equity cannabis
accelerator program within the E7 EQ HUB. This program will build long-term
sustainable economic development in the local community.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
Conceptual Rendering of Element 7 Fresno
Site works are estimated at , which covers all exterior and interior site works,
minor building works, facility fit out, and equipment costs – Element 7 has its own
internal licensed General Contractor team which significantly reduces costs – what
would cost another operator . All construction works will
be conducted in full compliance and accordance with the Fresno Municipal Code, State
Building Codes and all BCC directives and local policies. Element 7 believes that the
site could be operational by October, 2021.
A top line construction schedule has been prepared, as included below, which
demonstrates that the site could be operational within 9 months of receiving permits.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
1.5 Hours of Operation and Daily Procedures
Element 7 are applying for a retail storefront cannabis license (with delivery) for both
medical and adult-use legal and licensed sales (packaged cannabis goods and
products). This is a Type-10 State License.
Hours of Operation: Subject to approval from City Council, the business shall only
operate only during the hours specified in the Conditional Certificate, Use Permit and/or
CCBP issued by the City. The proposed operating hours shall be limited to the hours
of 9:00 a.m. through 9:00 p.m., seven days a week.
Opening Procedures: The Manager will be accompanied by a security guard when
unlocking and entering the business (a guard will be at the premises 1 hour before
operations commence each day and one hour after operations end each day). Upon
entering the building, the Manager will disarm the alarm and turn on all lights and check
the phone for messages. Additional employees will be scheduled to arrive
approximately 15 minutes after the Manager. Once the employees arrive, they will be
responsible for completing their assigned tasks, such as reviewing inventory levels,
checking overnight orders received, launch point-of-sale systems, and assemble
registers.
Mid-Day Procedures: Throughout the workday, the manager may conduct the
following tasks:
1.Assist employees with processing orders and ensuring that they are properly
designated/assigned.
ELEMENT 7: BUSINESS PLAN
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2.Update the track-and-trace system, as necessary.
3.Receive shipments with the assistance of another employee.
4.Manage all City and State reporting and compliance measures.
5.Review staff performance and implement training programs where deficiencies
are in place.
6.Liaise with Element 7 head office teams across critical business operations.
7.Meet with City officials, partners, and key stakeholders to continuously improve
operations and advance Element 7’s footprint in the local community.
Salespersons will be responsible for providing excellent customer service and
processing orders through the day in full City and State compliance. Each person is
responsible for keeping their sales counter clean and orderly.
Closing Procedures: Upon the closure of business each day:
•The Manager will lock all doors.
•The Manager and Inventory Specialist will reconcile the track-and-trace system
and cash.
•The Manager will ensure that all cannabis and cannabis products are securely
stored.
•The facility be dusted, sweep, mopped, etc. as needed.
•The Manager will ensure that all doors, safes, and vaults are locked and
secured.
•All surfaces will be cleaned and wiped. All equipment will be turned off (is
necessary) and cleaned.
•All non-cannabis trash will be taken to the dumpster and sorted for recycling.
•All non-security lights will be shut off.
•The Manager will activate the alarm and lock and exit the building.
•The Manager will be accompanied by a security guard when locking and exiting
the retail store. The security guard will escort the General Manager to their car.
1.6 Daily Operations
Our systems, processes, and operational policies have been developed using best-
practices from our operational dispensaries in Santa Ana and Fort Bragg. Employees
are extensively educated on all of these policies and procedures prior to starting
employment at Element 7 (minimum of 80 hours training), and then on an ongoing
annual basis (yearly refresher training). In addition, the General Manager and Shift
Managers will work in an Element 7 dispensary for 2-4 weeks prior to commencing
operations at Element 7 Fresno – this on-the-job training program ensures that
Element 7 is able to deliver consistent standards and processes across all of its
dispensaries in California.
Finally, Element 7’s Chief Compliance Officer, Amber Norwood, has developed a
Quarterly Audit Scorecard that scores the retail operations on over 80 checklist
items. Stores are scored using a point and traffic-light scorecard with mandatory and
minimum KPI’s that must be met. This process ensures that operations are compliant,
consistent, and controlled. The image below demonstrates some of the items on the
Quarterly Audit Scorecard and includes access controls, operating hours, sale and
ELEMENT 7: BUSINESS PLAN
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return of cannabis goods, packaging and labelling, inventory management, storage,
security measures, records management and retention, waste, transfers, and other
day to day operational procedures.
Element 7 Quarterly Audit Scorecard
If an audit is performed and there are either failures or significant ‘misses’ on
performance standards, a range of ‘triggers’ may be issued including training,
management changes, and advisory notices to City and State regulatory bodies.
Element 7 desires to be the most taxed, trusted, tested, controlled, and compliant
partner that the City of Fresno could identify for a cannabis permit.
1.6.1.(i) Customer Check-In Procedures
The Customer Intake Process begins when a new, or returning customer, enters the
dispensary and provides their government issued identification to security at the
Reception area. Using a scanning device that can verify government issued
Identification cards, the card is scanned, and information is recorded into our point-of-
sale (POS) system. The customer experience begins in the limited access Reception
area where a Receptionist manages intake and check-in. A Security Officer will be
stationed at the Reception Area to provide support, when needed. Age verification shall
be conducted before the customer is permitted access to the retail area according to
the following procedure:
1.Once the customer enters the facility, they will be greeted by an employee
and/or security personnel. The customer’s identification card will be scanned in
order to verify that the customer is 21 years of age or older.
2.If the customer is under the age of 21, but is at least 18 years of age, the
employee will review the customer’s physician’s recommendation to ensure that
the customer is a valid patient or primary caregiver.
ELEMENT 7: BUSINESS PLAN
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Element 7 Loading and Unloading Area at Rear of Premises
Security guards will be notified of all deliveries and are required to be present during
any loading or unloading to oversee the secure transportation of the delivery into the
facility. The loading/unloading area will be under constant video surveillance and
properly illuminated. This loading and unloading area allows for the safe and secure
delivery of goods without any disruption to our retail operations.
Element 7 holds a Distribution Permit in the City of Atwater (State License pending)
and will ‘self-distribute’ products to its Fresno store. All orders will be consolidated in
Atwater which ensures that a single distribution entity owned and operated by Element
7 will serve Element 7 in Fresno on arms-length terms and under full State Type 11
License regulations. This significantly reduces public safety risks and ensures that a
single vehicle will deliver all required products to the Fresno store every 5-7 days (or
as needed based on sales).
Prior to arriving at the facility, the distribution employee delivering shipments will
contact the Element 7 General Manager to inform them when they are 10 minutes
away from arriving at the facility. Upon receiving the 10-minute notification, security
guards will conduct a security sweep of the premises and car-park. This includes
inspecting the perimeter of the facility, as well as the loading and unloading area. Upon
clearance, the loading/unloading area will be prepped to receive the shipment.
The delivering employee will provide the Security Guard and Inventory Control
Manager with a copy of the company’s business license and shipping manifest as a
measure to verify that we are permitting an authorized shipment onto our premises.
Simultaneously, we will request to view the employee’s identification badge, a copy of
which will already be on file for verification purposes. The driver will be instructed to
reverse their vehicle (small sprinter vehicle) so that goods can be removed from the
rear of the vehicle and immediately transferred to the secured Quarantine Storage
Room.
Upon receipt of a shipment, the Inventory Control Manager shall verify that all products
have not exceeded their expiration or sell-by date. If any products have exceeded their
ELEMENT 7: BUSINESS PLAN
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expiration or sell-by date, employee shall notify management and the delivering
employee. We shall not accept any products that have exceeded their expiration or
sell-by date. We will return the expired goods and request that the expired goods be
exchanged for sellable goods. If it is discovered that any product that was purchased
is defective, we may return the product in exchange for a non-defective version of the
same product, for product of equal value, or for a refund (if payment for the shipment
has already been paid or transferred).
Additionally, we will not accept cannabis goods unless they are appropriately packaged
and labeled as they will be sold at final sale (note: We shall not package or label
cannabis goods as this is done by State Licensed manufacturers). All items will be
inspected to ensure that they are compliantly packaged and labeled. A packaging,
labeling and documentation “cheat-sheet” (composed of relevant regulations and
company policies) will be readily available and used to inspect every shipment to
ensure that we are accepting a compliant shipment and being provided the
required/requested documentation.
Upon receipt of cannabis goods, we will ensure that the cannabis goods received are
as described in the shipping manifest and shall record acceptance and
acknowledgment of the cannabis goods in the track and trace system. If there are any
discrepancies between the type or quantity specified in the shipping manifest and the
type or quantity received, we will record and document the discrepancy in the track
and trace system and any relevant business record and notify the distribution company
immediately. We will not accept any cannabis goods that are not included on the
shipping manifest. The Inventory Manager (IM) will ensure that all records related to
the acquisition of cannabis and cannabis-infused products will include the following
information:
•Strain Type
•Quantity
•Variety
•Batch Number
•Name and Registry Identification Number of the licensed operator supplying the
shipment of cannabis and/or cannabis-infused products
•Name and Registry Identification Number of the licensed operator delivering the
shipment of cannabis and/or cannabis-infused products
•Name and Registry Identification Number of the Dispensary Agent receiving the
shipment of cannabis and/or cannabis-infused products
•Date of Acquisition of cannabis and/or cannabis-infused products
As goods are delivered, they shall be immediately transferred to the Quarantine
Storage Room so that the COA Testing Certificate can be verified by the Inventory
Control Manager, and METRC tags applied to products prior to being transferred to
the Ambient Storage or Cold Storage rooms. This room is climate controlled and
products should not be left in this room for more than 24 hours. In addition to verifying
the COA, the Inventory Control Manager will also verify all packaging and labelling is
compliant with State Laws.
ELEMENT 7: BUSINESS PLAN
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information highly confidential security information business structure and trade secrets.
customers are looking for ‘value’ which Element 7 is very well positioned to deliver
given our market scale and vertical integration which allows us to beat most
competitors on our product cost base which we pass on to consumers.
With a retail sales are of 2,500 square feet, we would have a maximum occupancy of
83 customers at any one time (based on the California Building Code for Retail Sales
Stores on Basement or Ground Levels at 30 square feet per customer). With a 50%
load factor applied to this (for customer comfort), we would have a maximum desired
occupancy of 41 customers at any one time. With an average customer visit time
of 10 minutes, the store could handle a maximum of 246 customers an hour.
With an estimate of 400 customers a day, and operations from 9am to 9pm (12 hours),
we do not forecast any significant issues with customer flow within the store.
Based on our experience in Santa Ana and Fort Bragg, our marketing program
‘smooths out’ sales over different days of the week, and hours of the day. For example,
on Mondays which are typically our slowest days of the week, we offer incentives and
discounts to loyal local customers to bundle and save. This activity allows us to
increase sales on what would otherwise be the slowest day of the week.
1.6.1.(v) Proposed Product Line and Estimates for the Percentage of Sales
Once inside the Dispensary, a range of shopping options from quick-serve grab-and-
go, through to customized shopping guidance will be available. Our facility will sell
flower, concentrates, edibles, topicals and lotions, tinctures, pre-rolls, and accessories
(a wide range of topicals will be sold for elderly and retired locals).
In compliance with state regulations and industry
best practices, our product offerings will only be
sourced from licensed and compliant
distributors. Our product mix represents cannabis
products that are commonly purchased at retail
dispensaries. Based on our experience, we
anticipate selling:
•Concentrates:10%
•Edibles:15%
•Flower:30%
•Pre-rolls:30%
•Vape pens:15%
Element 7 will stock a range of Element 7 branded products, and leading brands across
California as demonstrated on the image to the left. We have relationships in place
with a number of leading distributors including Falcon Distribution.
Major product categories sold by Element 7 will include:
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1.Pre-packaged Flower - Pre-packaged Flower products are loose flower buds
that have passed mandatory product testing and are pre-packaged in compliant
packaging. Flower is considered a combustible product that is typically smoked
using a pipe or bong and can be rolled into cone-like cannabis cigarettes.
2.Pre-packaged Pre-Rolls - Pre-Rolls are loose flower buds that have passed
mandatory product testing and are rolled into cone-like cannabis cigarettes.
3.Vaporizer Pens, Cartridges and Batteries - Cannabis concentrate is placed
into cartridges and attached to a vaporizing device that is typically the size of a
ballpoint pen.
4.Concentrates - Cannabis concentrates are proven to have a higher percentage
of cannabinoids due to the extraction process and are typically ‘dabbed’ which
requires the product to be heated and inhaled.
5. Cannabis-infused Edibles - Ingestion of cannabis-infused food products is an
alternative, non-combustible form of consumption. Typical consumer-grade
cannabis-infused edible products include gummies, chocolates, cookies, and
brownies.
6.Tinctures, Topicals, Balms, Ointments, and Creams - These products are
infused with cannabis concentrate that has passed mandatory product testing.
Topicals and ointments are usually sold at dispensaries as cannabis-infused
lotions, massage oils, transdermal patches, lubricants, balms and ointments.
In compliance with state regulations and industry best practices, our product offerings
will only be sourced from licensed and compliant distributors, with a preference for
small / craft Cultivators and cultivators, manufacturers, and distributors located in
Fresno County. Our existing best-practice product procurement plan in Fort Bragg and
Santa Ana includes clearly defined commercial terms, template supply agreements,
vendor risk management assessments (i.e., are they a stable supplier), cost
expectations, defined vendor management plans, and annual KPI’s set for each vendor
to ensure shelf space is maximized.
All vendors are subject to our Preferred Vendor Program which scores existing and
potential vendors on a 100-point scale, taking into account their compliance,
sustainability, product quality, reliability, and brand innovation. All vendors are required
to be tested by State Licensed Testing Labs and Element 7 also maintains its own
internal Quality Control Program ensuring packaging, labeling, product materials,
ingredients, and claims are substantiated and correct, and that consumers are getting
what they expect – trusted and consistent brands.
Our expected ‘first order’ will be approximately based on our market
experience We expect to replenish stock weekly.
1.6.1.(vi) Delivery Service Vehicles and Product Security During
Transportation
Anticipated Number of Vehicles
Initially, Element 7 anticipates having four (4) delivery vehicles which will start
operations 30 days after the dispensary first opens. Element 7 is conscious of its
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greenhouse gas emissions, particularly from any vehicles used in day-to-day
operations. Our preferred vehicle models are hybrid vehicles as we need the ability,
for safety and security purposes, to operate a vehicle that runs on both electric and
fuel options (i.e., in the event of an empty battery, the vehicle will also have fuel). Our
preferred choice is the Hyundai Ioniq Hybrid Vehicle as it returns an impressive 58
miles per gallon in combined city/highway driving. Further, the vehicle is built with eco-
friendly materials, user-friendly technology, and delivers great handling capability. It
comes with plenty of cargo space, which allows us to install lockboxes to store
cannabis products during transportation.
Delivery Service Procedures
Delivery Request
Element 7 will prepare both a hard copy and an electronic delivery request receipt for
each delivery of cannabis goods. The delivery request receipt will contain the following
information: our name and address; the name and employee number of the employee
who delivered the order; the name and employee number of the employee who
prepared the order for delivery; the name of the customer and the customer’s assigned
identification number that placed the order; the date and time the delivery request was
made; the delivery address; a description of the cannabis goods requested for delivery,
including the weight, volume, or any other accurate measure of the amount of all
cannabis goods requested; the total amount paid for the delivery, including any taxes
or fees, the cost of the cannabis goods, and any other charges related to the delivery;
and upon delivery, the date and time the delivery was made, and the handwritten or
electronic signature of the customer who received the delivery. At the time of the
delivery, the delivery employee shall provide the customer with copy of the delivery
request receipt. The delivery employee shall retain a copy of the signed delivery
request receipt.
Verifying Identity of Customer
Cannabis goods will only be delivered to the customer named on the delivery request
receipt by the customer. Upon arrival, the driver must review the customer’s
government-issued identification and physician’s recommendation (if applicable); the
driver will verify that the documents provided in person match the customer’s online
profile. A mobile ID Checker (CAV-3200 VIAGE Model approved for use in California)
will be carried by each Driver to check ID’s as required (cloud based).
Element 7 will verify first time customer’s physician’s recommendation before
delivering cannabis goods. Element 7 will implement two primary methods of verifying
the validity of a customer’s doctor’s recommendation.
1.Element 7 will compile a list of reputable and compliance providers with a
sample of a valid recommendation provided to us by the issuing company.
When a customer provides us with a doctor’s recommendation from our list of
verified providers, our staff will review the recommendation to verify its validity.
2.Element 7 will verify the doctor’s recommendations by contacting the issuing
provider. Further, Element 7 will vet every new provider to ensure their
credentials and legitimacy.
Element 7 will attempt to verify the physician’s recommendation immediately upon
begin notified that a first-time customer requesting a medicinal delivery. If we are
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unable to verify the physician’s recommendation within 24-hours we will notify the
medicinal customer that we are unable to fulfill their order because their physician’s
recommendation could not be verified.
Additionally, upon creating an online customer account, customers will be notified on
the registration page that physician’s recommendations will have to be verified before
any cannabis goods will be delivered by Element 7 and that verification can take up to
24-hours.
Delivery Vehicle Insurance
Element 7 will obtain commercial automobile insurance for all company vehicles. The
commercial automobile insurance policy will over the following coverage: At fault
accidents, including coverage for injuries and damages for third parties;
Comprehensive and collision coverage; Accidents involving uninsured motorist;
Medical expenses; Legal expenses; etc.
Temperature Control
All vehicles will be equipped with heating/cooling temperature controls to ensure the
preservation and quality of perishable cannabis products. Additionally, any perishable
cannabis products that are required or recommended to be maintained at a refrigerated
temperature will be placed in an insulated cooler tote bag.
Exterior of Vehicle
Any company vehicle used in the delivery of cannabis goods will not have any marking
or other indications on the exterior of the vehicle that may indicate that the delivery
employee is carrying cannabis goods for delivery.
Delivery Technology
Inventory Tracking
Dutchie is Element 7's preferred online ordering platform with the easiest design for
consumers to purchase cannabis products from dispensaries for pickup or delivery.
The intuitive Dutchie delivery technology platform will allow our delivery team to track
and record information for every online transaction. Dutchie has features to enable us
to accept online orders for pick-up and delivery, fulfill orders, dispatch drivers, and
manage inventory, transactions, and deliveries.
Dutchie seamlessly integrates with our Flowhub platform and automatically pulls our
inventory in real-time to ensure our online menu is always up to date. The Dutchie
software simplifies our inventory from vendor intake to consumer sale. We are able to
manage manifests, packages, and products in real-time. Once the order is accepted
the quantity will automatically be deducted from the inventory. Dispatchers are able to
view the courier’s current inventory and amount of each product for even faster delivery
times.
Receiving Orders
Upon notification that an order has been placed online, the dispatcher will prepare and
assign orders directly to drivers on the road, and if a driver is carrying unassigned
inventory, the dispatcher will be able to see what products the drivers have on board
in real-time. The software will automatically suggest which driver each order should be
assigned to the order based on the distance to the customer and how many active
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orders that driver has in his/her queue. It will also show ETA from the driver’s location
to the delivery drop-off location.
Customer Identification
First time online customers will be required to create an account before submitting an
order. Customers will be required to create a password protected customer account
by providing/uploading the following information:
•First and Last name
•Contact Information
•Government-Issued Identification
•Physician’s Recommendation Letter
Couriers can quickly access customer profiles upon arrival to check their physician’s
recommendation expiration (if applicable), any delivery specifications noted, and a
copy of government-issued identification to ensure that the delivery is being completed
with the appropriate customer. Element 7 will verify first time customer’s physician’s
recommendation by contacting the issuing physician or comparing it with our list of
confirmed physicians sample recommendations on file.
Online Menu
At the focal point of its website, Element 7 showcases all its products in a manner that’s
easy for customers to navigate. Additionally, Element 7 will ensure that the menu
provides beneficial information to customers so they can make an educated choice
before purchasing any cannabis and/or cannabis product. For in-store customers our
CURA-AI platform uses machine-based learning and artificial intelligence to match a
physician’s recommendation with products in stock and peer-reviewed research and
logged customer feedback to recommend a cannabis profile to a customer, based on
real data and collected evidence. CURA-AI was developed by MIT graduates
partnering with US Government health officials in 2019. Through the Dutchie platform,
Element 7 will be able to receive detailed delivery analytics of gross sales, sales by
product, tax reporting, and more. The Dutchie platform integrates with FlowHub and
SalesForce.
Location
Dispatch is notified when an order is placed, and again when the order is out for
delivery. Once the delivery is complete, dispatch receives a push-notification from each
drop-off location once the transaction is completed. The software permits us to track
drivers and their mobile inventory across geofences, optimize delivery routes, and
maximize delivery efficiency.
Product Security During Transport
Element 7 will strictly adhere to all rules, requirements, and regulations regarding
transportation of cannabis within the State of California. No deviation from those rules
will be tolerated or allowed. The Head of Security will implement additional measures
beyond the minimum requirements.
Element 7’s delivery process begins when the delivery employee leaves the facility
with the cannabis goods for delivery. The delivery process ends when the delivery
employee returns to the facility after delivering the cannabis goods or attempting to
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deliver the cannabis goods to the patient or customer(s). At no time will an Element 7
delivery employee engage in any activities except for cannabis goods delivery and
necessary rest, fuel, or vehicle repair stops.
In the event that an employee leaves the vehicle unattended, he/she will ensure that
the vehicle is locked and equipped with an active vehicle alarm system. All deliveries
will be fulfilled at the rear of the premises.
The order fulfilment boxes containing cannabis to be delivered to patients and
customers will be verified, recorded and sealed. Once sealed they will be loaded into
the secure lock boxes in the rear of the delivery vehicle. No order fulfillment boxes,
lockboxes, or cannabis goods will be visible to the public or accessible through the
vehicle. Cannabis goods will be locked in a fully enclosed box, container, or cage that
is secured to the inside of the vehicle. No portion of the enclosed box, container, or
cage shall be comprised of any part of the body of the vehicle or trailer.
All Element 7 vehicles will be outfitted with a dedicated Global Positioning System
(GPS) device for identifying the geographic location of the delivery vehicle and
recording a history of all locations travelled to by the delivery employee while engaged
in delivery. The GPS device will be owned by Element 7 and used for delivery only.
The device will be either permanently or temporarily affixed to the delivery vehicle and
will always remain active and inside of the delivery vehicle during delivery. At all times,
Element 7 will be able to identify the geographic location of all delivery vehicles that
are making deliveries and document the history of all locations travelled to and by a
delivery employee while engaged in delivery.
Summary
Element 7 is proud of the local team of owners it has assembled and will work
diligently, if awarded a permit, to leverage the relationships, skillsets, local
understanding, and partnerships that these owners can create in Fresno. While many
of the local owners will be relatively ‘passive’ in the day to day operations of the
business, each and every one of them has spent decades building their reputation in
the Fresno community, and they are eager to be actively involved in understanding
how the business operates, how cannabis can be used as a positive force in the
community, and what they can do to advance both Element 7 and the Fresno
community as one. Likewise, Element 7 makes a commitment to each and every
owner to be an outstanding business partner, and to do everything it can as a business
to advance their name and reputation, through good governance and outstanding
business principles in each and every interaction we have with the constituents,
community, and City of Fresno.
We are confident that we have the team and experience to create a sophisticated
and sustainable ‘very local’ cannabis business and footprint in Fresno and aim
to be the most tested, taxed, trusted, controlled, and compliant operator that the
City could find.
Weeks Before Opening Category Activity
Responsible
Person/Party
Target
Completion
Date
32 Permitting 12-14 Weeks Allocated for Initial License Review
24 Construction 8 Weeks Allocated for Discussions with Planning and City regarding Parking, Traffic,
Engineering etc
18 Construction 12 Weeks Allocated for all On-Site works (internal Site Works)
14 Construction 4 Week Buffer for Site Works Delays / Planning Matters
10 Operations 4 Weeks Allocated for Dfit-Out Works / Merchandising Displays etc
6 Operations Initial Accessories product & supplies orders with Suppliers
- determine quantities for training, mock shifts, pre-opening activities
6 Personnel Prepare All Employee HR Documents, Employee Handbook and have final draft reviewed by
labor attorney
6 Personnel Employee policies
- determine policy
6 Personnel
Employee training manuals
-Expand on Cheat Sheet, Diego Background, History, and Future, Accessories, Flower,
Concentrates, POS, Sales training (suggestive selling, up selling, crm, cx/ux, marketing, seo),
Compliance Checklists
6 Personnel Employee files
- set up for employment application, status changes, other personnel records
5 Administration Insurance
- verify with your agent that all policies are in force
5 Marketing Job Posts- NOW HIRING /COMING SOON
5 Marketing
Public relations for opening
- hire local PR firm
- send out press releases to local media outlets
5 Operations Inventory report of all products on hand
5 Personnel Management team
- start interviewing/selection process
5 Personnel
Bud Tender's placement - Security arrangement
- determine mix of floor and counter bud tenders
- Security personnel plan interior and exterior
5 Personnel
Employee recruiting
- Indeed and Job Fairs
- recruiting missions
- plan for turnover, hire 20% more than you think you need
5 Product Cannabis - determine how many products and create a list with all information
- decide what genetics, edibles, paraphernalia, acessories and merchandise to stock
5 Product Create a list of available suppliers and their information
- create list of suppliers for Cannabis, Packaging, F&B (Where applicable) & supplies
5 Product Pricing
- Determine final price points on all items
5 Product Inventory control
- using master inventory list of all products to stock -set up POS
5 Product Set up all tracking compliance info in POS, assure all key personnel are trained
4 FF&E purchase equipment
4 Operations Finalize Staff Uniforms
4 Operations Hours of operation
- determine for each day/employee meal period
4 Personnel
Management training commences
- personnel hiring, training & management
- operations
- administrative
4 Personnel
Staff pay scales
- determine starting pay scales for each position
- determine employee review/raise policies
3 Administration Credit card merchant accounts
- setup for MC/Visa, Amex, Discover, Others
3 Design/
Construction
Exterior signage
- primary, handicap, reserved, valet, hours of operation, delivery times
- Company Sign Hung
3 Design/
Construction
Supplier, contractor, sub-contractor contacts
- create master phone & contact list with emergency numbers
3 Design/
Construction
Cleaning crew
- bid & select vendor for initial & final clean
3 FF&E Office equipment
- copier, fax, computer, printer, calculators
3 FF&E Office furniture
- desk, chairs, filing cabinet, shelving
3 FF&E Receiving scale
3 FF&E Restrooms
- hand towel/dryer dispensers, soap dispensers, hand soap
3 FF&E
Janitorial equipment
- wet floor signs, mops, buckets, vacuum
- trash cans, cordless dust pan
3 Marketing
Printing
- Exterior Signage Permit
- Website and Social media
- Banners, Printing, Fliers, Posters
- stationary, envelopes, labels, business cards
- invitations for opening parties
3 Ongoing Services Retail space cleaning
- flooring, rest rooms
3 Ongoing Services Armored car service
- select approved vendor
3 Operations Checklists
- prepare opening, closing, shift change checklists for all stations
3 Operations
Promotions
- determine specials
- check state/local laws regarding specials/discount programs
32 WEEK CHECKLIST: NEW STORE OPENING
ELEMENT 7
3 Operations Prep lists with pars
- create prep lists with par levels
3 Operations Station setup sheets with pars
- for all retail, medical, café, etc
3 Operations
Approved vendor list
- create Master Approved Vendor List
- Building & HVAC repair vendors
3 Operations Initial Cannabis, Edibles and Concentrates product & supplies orders
- determine quantities for training, mock shifts, pre-opening activities
3 Operations Backup Plans and Documents for issues that could arise (i.e. POS system not working)
3 Product
Initial Product order
- prepare & place initial order
- request free samples from suppliers to test
- have sufficient quantites for testing & training
3 Technology
POS phone line
- dedicated line for charge approvals
- tie into DSL/cable line
3 Technology POS system install
- start evaluation/demonstration process
2 Administration Payroll processing
2 Administration
Petty cash
- setup petty cash fund for cash payments
- create petty cash reimbursement form
2 Administration Deposit procedures
- armored car service or other
2 Design/
Construction
Compressors & valves
- label and check for accessibility
2 Design/
Construction
Electrical labeling
- label switches, breakers and check for accessibility
2 Design/
Construction
Security and Alarm system
- install & inspect
2 Design/
Construction
Inspections
- schedule for fire, health departments
2 Design/Constr.Walk-through with contractor
- create initial punch list
2 Design/Constr.Building & equipment plans
- retain full set of plans for operational files
2 FF&E
Communications/phone system
- phone lines for office, fax, retail space, etc
- Security system, fire & burglar alarms
- internet access, service provider
2 FF&E Interior signs
restrooms, fire exit, hand wash, wait to be seated
2 FF&E Safe for office
- determine type, bid & order
2 Ongoing services Music-(Music licensing)
2 Ongoing Services Chemicals and SDS Sheets
- select approved vendor
2 Ongoing Services
Setup Monthly accounting
- use industry standard chart of accounts
- outside accounting service
2 Ongoing Services Pest control
- select approved vendor
2 Ongoing Services Trash disposal
- select approved vendor
2 Ongoing Services
Window washing
- do in-house or outsource
- select approved vendor
2 Ongoing Services Insurance agent
- building, general liability, liquor liability, workman's comp, group medical
2 Ongoing Services Laundry & linen
- select approved vendor
2 Operations
Emergency exit procedures
- determine procedures, post maps
- discuss in safety meetings with staff
2 Operations
Bulletin board
- for employee schedule, mandadory postings
- choking poster
- emergency hospital & doctor numbers & instructions
2 Operations
Cleaning & maintenance schedules
- set up schedules & procedures
- Cleaning Checklists
2 Operations
Emergency numbers
- map, directions to hospital
- make arrangements with local doctor, clinic
2 Operations
Floor maintenance
- get ongoing floor maintenance procedures
- purchase cleaning / polishing supplies
2 Personnel Food safety training
- access food safety training materials
2 Personnel Staff Orientation and Begin staff training
2 Smallwares/
Supplies
First aid kit
- emergency burn kit
2 Smallwares/
Supplies Check presentation clipboards
2 Technology Computer software
- Microsoft office, scheduling, cannabis and retail item management
2 Technology
Phone on hold message
- select service provider
- message/music
2 Technology Internet service provider
- DSL or cable
2 Technology POS
- set up installation & training
1 Administration Bank supplies
- deposit stamp & pad, deposit bags, deposit slips
1 Administration Accounting/bookkeeping system
- have CPA review sales, deposit, payroll and accounts payable system
1 Administration Permits, licenses, inspections, approvals
- verify that licenses, etc. have been secured
1 Administration Initial change order
- get change & small bills from bank
1 Administration POS/merchant accounts
- test credit card approval/processing
1 Administration Receive certificate of occupancy
1 Design/
Construction
Exterior signage light timer
- set light timer
1 Design/
Construction
Exterior cleanup
- parking lot, landscaping, building, windows
1 Design/
Construction
Final clean
- interior & exterior of building
1 Design/
Construction Wash windows
1 Design/
Construction
Beverage service
- set up installation of coffee and tea equipment
1 Design/
Construction Update construction punch list
1 Design/
Construction
Fire extinguishers
- install with visible operating instructions
1 Design/Constr.Continue construction punch list
1 FF&E Storage shelves
- clean, organize & label
1 FF&E Receive furniture
- tables, chairs, desk tops, display cases, other
1 FF&E
Emergency equipment procedures
- determine emergency shut-off steps
- label equipment
1 FF&E Equipment tests
- test each piece with supplier prior to training
1 FF&E Tools/toolkit
- purchase & designate location store
1 FF&E
R&M binder for all equipment
- prepare repair & maintenance binder for operating instructions, manuals
- mail in warranty cards
1 FF&E Test all equipment
1 FF&E Complete equipment warranty cards
1 FF&E Final clean all equipment
1 Marketing
Opening parties - work with training team to set up
- press event, VIPs, contractors & suppliers
- create guest lists, send invitations
1 Operations Order & delivery schedule
- prepare weekly schedule with each vendor's order & deliver dates
1 Operations Deposit bags
- obtain from bank
1 Operations Change order
- prepare initial change order; change & small bills
1 Operations
Check inventory levels
- on all cannabis, retail items, packaging, food, beverage, paper & supplies
- prepare orders for opening week
1 Operations
Opening inventory
- take full physical inventory on all products pre-opening
- necessary to calculate accurate costs after opening
1 Personnel OSHA
- review OSHA standards with managers
1 Personnel
Safety checklist & audit
- create safety checklist & perform safety audit
- Safety Checklist
1 Personnel Safety & first aid training
- conduct training program for all employees
1 Personnel Conduct practice runs/mock service
- full dress with uniforms
1 Smallwares/
Supplies
Initial chemicals order
- degreasers, drain treatment
- disinfectants, sanitizers
- floor care solutions
- handcare
- cleaners for dishroom/restroom/dining room
1 Smallwares/
Supplies
Janitorial supplies
- carpet, tile, floor cleaner, spot remover
- gum solvent, liquid hand soap, paper towels, toilet paper
0 Launch Soft Opening/Grand Opening
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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7. COMMUNITY BENEFITS AND INVESTMENTS PLAN
7.1 Social Responsibility Plan
Element 7 has a strong track record of community involvement – in the last 3 years our
company and local owners have conducted the following in Fresno and California:
1.Element 7 held the largest ever Expungement Clinic in Fresno in 2019 – we
partnered with NDICA and the Fresno County Public Defender’s Office (Carmen
Romero) to help over 200 people in a single day expunge their records. The
event was a huge success and demonstrates Element 7’s commitment to
Fresno and to social equity programs that change lives in communities.
2.Element 7 has held Job Fairs with NDICA and the State Economic
Development Department in Los Angeles and Fresno to help minorities access
employment in the cannabis industry.
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3.Element 7 has contributed funding to the Big Red Church (Fresno) for Food
Bank Programs.
4.Element 7 has donated funds to the Firebaugh High School Athletics Team for
new uniforms.
5.Element 7 has partnered with social equity applicants to submit cannabis
permits in Oakland, Los Angeles, Tracy, and San Francisco.
6.Element 7 has Sponsored NDICA (National Diversity and Inclusion Cannabis
Alliance) and Latinos 4 Cannabis Programs in their local communities.
7.Greg Moreno has helped do voluntary coaching with the YMCA Basketball
Team in nearby Hanford for the last 5 years.
8.Greg is a Member of the Marine Corps League and Wounded Warriors since
2001. Greg recently joined the VFW Program in Fresno helping to support
fellow disabled veterans.
9.Element 7 has financially partnered, backed, and supported JePahl White and
Green Pastures Premium Cannabis Company to help that company submit
a cannabis application for a license in Fresno. In an industry that is rampant with
competition, division, and dissociation, we are proud to be helping a social
equity applicant secure cannabis licensing in Fresno.
10.Element 7 recently sponsored ‘Stop the Violence’ park clean-ups, and
Thanksgiving Tukey’s for homeless people in Fresno (November 2020).
11.Jaime Ramirez is a Youth Football Coach in Hanford and has won 9 Valley
Championships. He is committed to empowering and educating youth in the
Valley and mentoring them to reach their full potential in life (images below).
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Faith in the Valley: Element 7 has already worked with
Marcel Woodruf and the Faith in the Valley team to hold
Thanksgiving Events and Clean Up Park programs.
Big Red Church Food Bank: Element 7 donated to this
program in 2019 and is in discussions with Reverend
Raygan Baker to donate additional funds in 2021.
Southeast Fresno Community Economic Development
Association: Element 7 is in discussions with Jose Leon-
Barraza to assist this non-profit financially in 2021 with an
annual contribution of .
Veterans Affairs California AMVETS: Element 7 has discussed support for
this organization through Greg Moreno who served in the
US Army for over 20 years.
Clovis Veterans Memorial District: Element 7 will be
supporting this initiative and has discussed financial and
other benefits through George Ohan.
Animal Abuse Kings Canyon Veterinary Foundation: Element 7 has
conducted discussions with Leroy LeBeug of this
association to commit to funding in 2021. This Foundation
is our immediate adjacent neighbor at our application on E.
Kings Canyon Road, Fresno.
Health & Wellness TRU Ballers: Element 7 is committed to TRU Ballers and
has discussed financial assistance with David Rivera (Co-
Owner and Founder). TRU Ballers is a youth basketball
program for children from disadvantaged families.
Healthy Fresno Air: Element 7 has already partnered with
this group that focuses on cleaner air quality in Fresno.
Community Advisory Board
Our Element 7 Cares program will be headed by a Committee that includes 6 of
Fresno’s most influential community leaders. The local community representatives
are essential to the governance and accountability of the program and achieving its
mission. The local Community Advisory Board will oversee all community integration
efforts and support Element 7’s outreach & service with the local community, the
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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impact of our financial donations, and the community groups that most need our
support. Accountability, transparency and integrity can, and should be, maintained and
implemented across Element 7 operations, business model and ethos. With the help
of the E7 Cares Board - Element 7 will consistently be geared towards earning and
safeguarding Public Trust, the health and safety of our patrons and the environment.
Community Advisory Board Members include:
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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Stock options are a means to both attract good talent and keep those employees
invested in the company over time. Accordingly, in general, stock option agreements
are offered to key employees in conjunction with the employee’s initial hire or
concurrent with a significant increase in the employee’s role or responsibilities at the
company.
When Element 7 offers employees stock options, we will do so through a special
contract called a Stock Option Agreement. Such an option, once granted to the
employee, gives the employee the opportunity to benefit from increases in the
company’s share value by granting the right to buy shares at a future point in time at a
price equal to the fair market value of such shares at the time of the grant. The option
agreement dictates all the terms of the offer - including vesting schedule, time limits for
exercise once vested and any other special conditions.
Staff Volunteer Program
Element 7 will ensure that it gives back to the community by requiring all full-time staff
to commit at least 10-hours quarterly to a local cause or charity. Annually, each staff
member will contribute over 40-hours or more of community service beyond the
monetary commitments we deliver. These hours will either be used for hands-on
volunteering or providing pro-bono support services in the specialist area of the
volunteer - business management, design and creative, logistics, processes, and
systems.
Medical Cannabis Discount Programs
Studies show that increased access to marijuana has helped reduce some of the most
critical consequences of opioid use, including opioid overdose deaths and untreated
opioid disorders.
•In states with medical marijuana access, overdose death rates are roughly 25%
lower than states that don’t offer legal access to the drug, with a significant
decrease in overdose death rates over time.
•Legal access to medical marijuana has helped produce a 23% reduction in
opioid dependence or abuse-related hospitalizations, and a 15% drop in opioid
treatment admissions.
As a holistic wellness company focused on inspiring a holistic lifestyle, Element 7 is
intent on providing safe and affordable access to its patients, primary caregivers who
suffer from diseases, pain, PTSD or simply do not have the means to pay for medical
cannabis or cannabis goods.
Seniors, retired veterans, and customers on government assistance need cannabis to
treat a wide range of medical and wellness conditions. Element 7 will assist these
persons to access cannabis at-cost by working with hospitals and health care centers
in close local proximity to our operations. These partners will be responsible for
identifying customers and others that could benefit from cannabis and need financial
assistance in securing discounted pricing.
Element 7's discount program will give-away and allow for heavily discounted medical
cannabis and cannabis goods for sick or low-income medical patients. To enroll in the
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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Element 7 discount program patients will either apply on-line or at the Element 7 facility.
The process for enrollment will request the following information from applicants:
1.Medical ID Card and proof of low-income for the last two (2) years (via tax
return); or
2.Medical ID Card and proof that patients are receiving state benefits such as
welfare, HUD or food stamps.
Participants in the discount program can receive 5 grams of mixed shake or a 20%
discount on medical cannabis purchased at Element 7 up to 28g total of THC and 50mg
of CBD per month. The discount program is specifically for seniors, retired veterans,
HIV and AIDS patients, children diagnosed with autism, epileptics, terminally ill patients
and low-income patients.
Craft Cannabis Producers Program
Element 7 has a policy of supporting local and small craft and boutique cannabis
farmers and manufacturers. Many of these come from disadvantaged local
communities across the State of California. As mentioned earlier, Element 7 has
partnered with JePahl White and Green Pastures Premium Cannabis Company to help
JePahl and his family to submit a retail license application in Fresno which we feel
honored and proud of given JePahl’s deep connections to the black community in
Fresno and the work his Great Grandfather, Grandfather, and Father and Mother have
done in the Fresno community over 4 generations.
As corporate cannabis operations continue to expand in California, small cannabis
growers have begun to develop cooperatives to stay competitive with their large-scale
rivals. Co-ops present benefits for smaller marijuana producers:
•By joining forces, these more modest-sized farming operations can offer a
steadier supply of cannabis to distributors and retailers.
•Growers can generally market their products more efficiently through a
cooperative model.
•Cultivators at the co-op level can share resources, helping to lower operating
costs.
We have an active relationship in place with Red Crow Cannabis – a cannabis
cultivation company focused on cultivating cannabis on Native American Tribal Land
in California. After having conducted their first season in 2017, Red Crow Cannabis
are looking to expand their business in 2018 and we call Richard Tall Bear Westerman,
the founder and CEO for Red Crow Cannabis, a close friend. Through our Head of
Security, we have also formed a relationship with a Veterans Cultivation project in Yolo
County – White Wolf Farms. This group provides combat veterans with medical
cannabis information, support services, and safe access to high quality medicinal
cannabis. White Wolf Farms cultivates high-quality organic outdoor cannabis on a 1-
acre plot in Yolo County.
We are also a partner of Emerald Exchange – Justin Calvino runs the Emerald
Exchange and is a friend and colleague. The Emerald Exchange is focused on bringing
craft cannabis producers from Humboldt, Mendocino and the Trinity Triangle, and their
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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brands to mainstream city markets, whilst keeping alive the essence and unique
qualities of hand-touched sun-grown craft cannabis. This is a part of the industry that
we want to keep alive and see flourish as it delivers much needed economic benefits
and security to hundreds of small families across California.
We have identified Green Pastures Premium Cannabis operated and owned by Je
Pahl White as a local cannabis company that we will partner with to help expand their
business across California. Je Pahl White is a lifelong Fresno resident and business
owner.
We are very interested in identifying other local licensed cultivators and manufacturers
from the County that we can collaborate with and will actively identify and work with
these groups.
Cannabis Criminalization Reform and NDICA Partnership
A founding principle of Element 7 is to see criminal justice reform for non-violent
cannabis offenders as public opinion has shifted in its support of reforming federal and
state cannabis laws.
Element 7 also has one of America's leading advocates for criminal justice reform,
harm reduction, and cannabis law reform on our team (Policy Advisor). Lynne Lyman
is the California State Director for the Drug Policy Alliance, the nation’s leading
organization promoting alternatives to the war on drugs. Prior to the DPA, Lyman
worked at the Advancement Project, a civil rights organization, where she focused on
issues of violence reduction, criminal justice reform and community policing. She spent
six years working in Boston in criminal justice positions within state and local
government, and as consultant to community and faith-based organizations seeking to
address social problems relating to street violence, racial justice, and juvenile justice
system reform.
Element 7 has partnered at a national level with NDICA (National Diversity and
Inclusion Cannabis Alliance) to sponsor and host Expungement Clinics, the first of
which was held in Fresno, California in June 2019.
In addition to NDICA, Element 7 is a partner of Latinos 4 Cannabis and works closely
with this wonderful non-profit to create preferred job placements, job fairs, and training
programs for cannabis entrepreneurs (refer to attached Letters of Support).
7.1.1 Fresno Expungement Clinics
Element 7 created history in 2019 by hosting Fresno's first ever Expungement Clinic.
The Expungement Clinic, held in partnership with the Fresno County Public Defender’s
Office, NDICA (National Diversity and Inclusion Cannabis Alliance), and Element 7,
paved the way for Fresno residents with minor drug related criminal records to enter
the legal and licensed cannabis industry to gain meaningful employment, or as owners
and investors.
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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Expungement clinics are part of the much-needed reparative justice for the harms of
cannabis prohibition, which targeted people of color and from marginalized
communities. Fresno is one of the hardest hit parts of California for drug related crime.
Volunteers from the Fresno County Public Defender’s Office were available at the
Clinic to provide free legal assistance to Fresno residents with drug related criminal
records, including Prop 64 and Prop 47.
Carmen Romero, attorney with the Fresno Public Defenders Office Clean Slate
Program said, “We encourage the community to come take advantage of the
opportunity to clear their criminal convictions and begin the overcome the obstacles to
better jobs, housing and other benefits.” This was the Fresno Public Defenders first
expungement clinic in partnership with NDICA and Element 7 at the national and local
level.
Element 7 commits to holding one (1) expungement clinic annually in Fresno,
partnering again with NDICA and the Fresno County Public Defender’s Office.
7.1.2 Environmentally Sustainable Business Practices
Element 7 takes its environmental impact seriously and has developed facility build out
and designs in a manner that complies with green building practices. Each Element 7
cannabis business facility has been thoughtfully designed, crafted and built to
maximize and maintain resource-efficient, high performing, healthy, cost-effective and
compliant operations, that considers sustainability its highest priority. Facilities bring
forward the best and most impactful emerging technology that provides for almost
100% renewable and sustainable operations.
Element 7 believes that community and the environment go hand in hand. Securing a
positive outlook and future for every Element 7 community means being a responsible
cannabis business operator who takes each community member, local small business
and competitor into consideration. Element 7 is at the helm of an emerging cannabis
industry that is quickly making its mark on the country and the world.
-Renewable energy: solar panels on the roof of the facility (as approved by
Building and Planning)
-Green building certification/Zero-impact workplace facilities
-Purchasing/local sourcing from sustainable vendors
-Working with environmentally conscious distributors
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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7.2 Public Health Outreach and Education
Youth Outreach & Drug Education
Element 7 will be an active participant in ensuring that local youth receive accurate
information on the dangers of substance abuse at an early age so that they are better
informed and more capable of decision-making as they develop and mature. To create
and implement this program, we will be approaching local education, youth, and law
enforcement groups with a view to either providing monetary resources or educational
materials to such groups.
Cannabis related arrests have plunged in communities that welcome cannabis
dispensaries — saving millions of dollars and sparing people from having criminal
records — and we believe that Element 7’s program will extend positive flow-on effects
for social issues affecting the County including neighborhood crime prevention,
substance abuse and creating safer and cleaner parks and recreation facilities. We
know that beyond education, it is critically important to provide meaningful facilities and
opportunities to youth that inspire, educate, and entertain them.
Community Engagement Events
The need for cannabis education is more important now than ever, and Element 7
plays an active role in delivering this message into the mainstream consciousness by
making credible cannabis education accessible in the communities we serve.
Element 7 will proactively engage with Fresno and nearby County residents, business
owners, and officials to cultivate lasting and mutually beneficial connections, sustained
by a discreet but visible neighborhood presence. Element 7 seeks to provide tangible
benefits to the local community through educational outreach and partnerships with
non-profit organizations, municipal agencies, and neighborhood groups.
Community Educational Evenings
Element 7 is developing a Community Educational Outreach Program that will be held
4 times a year in conjunction with the local cannabis community. At Element 7 we
believe that education and community outreach can change the way cannabis is
viewed and helps people understand its benefits. To have a successful cannabis
program, we believe that there needs to be an active relationship between the
community, cannabis research, and local health and medical practitioners.
To enact such a program, we will be recruiting a panel of specialists and experts onto
our team which will help us conduct the outreach program. We would envision each
event having 3 specialists that conduct 15-minute lectures with a 30-minute question
and answer session at each event, which can be held virtually as well. Each event
would run for approximately 90-minutes and focus on:
•Myths and Facts of Cannabis
•Customer Treatment Options
•The History of Cannabis
•Latest Research and Medical Findings for Cannabis
•Responsible Use and Management of Cannabis
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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Our goal is to provide the community with the facts and information that they need to
be educated and make informed decisions. It is our goal to educate the community so
that they can make the best decisions for themselves and their health. All sessions will
be provided at zero cost to the attendees. Under normal conditions, we would schedule
a free shuttle bus for attendees who want to attend the session but may not have
transport options.
Dr. Jeff Chen, Director of the Cannabis Research Initiative at UCLA, has committed in
writing to helping us with this initiative. Jeff is one of the most respected cannabis
experts in North America and holds a dual MD/MBA from Cornell University. He has
spent the last four years working at the intersection of academia, industry, non-profit
and government to accelerate cannabis research in California and North America. Dr.
Chen is the founder of the UCLA Cannabinoid Affinity Group, a published author, David
Geffen Fellow and UCLA Wolfen Entrepreneurial Award Recipient.
In addition, Element 7 will be teaming up with Americans For Safe Access and taking
their patient education services to each of its medical patients. Americans for Safe
Access have been at the forefront of lobbying for safe access and providing accurate
and reliable education to medical cannabis patients across the country. Every time a
medical patient joins the Element 7 community, they will be given access codes that
can be used through Americans for Safe Access, to activate an account that provides
them with access to medical cannabis material, studies and reports that can provide
them with a wealth of information to help them devise an effective treatment or wellness
plan.
7.3 Fresno Community Reinvestment Fund
Element 7 pledges annually to the Fresno Community Reinvestment Fund
Summary
Giving back to the local community isn't something we at Element 7 want to be forced
to do to gain a business license - rather, giving back is part of our business with
purpose core belief and mission. We feel proud that we have the opportunity to use
our business to create positive change in the local community, leveraging both our
people and bottom-line to do good in a range of areas from supporting non-profits
through helping disadvantaged patients, reformed cannabis criminals and local
businesses.
The work we have done in Fresno over the last 2 years, hosting the largest ever
expungement clinic in the City, and recently partnering with local groups to end gun
violence in the City, is testament to our commitment in Fresno to make an impact. We
will continue this work regardless of our success or otherwise in securing a permit for
retail operations in Fresno. Our programs are designed to enlighten people on the
ELEMENT 7: COMMUNITY BENEFITS AND INVESTMENTS PLAN
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many benefits of legal marijuana and help eradicate consumers from using the illegal
and illicit market which supports criminal activity and gives the cannabis industry a bad
name. Part of this includes public service advertisements like the one below which
directly targets the 30+ non-compliant cannabis businesses that currently call Fresno
home.
Our goal is to be a good corporate neighbor, sending a positive message about the
many benefits throughout the community.
With a commitment over annually to our Element 7 Cares programs and
Fresno Community Reinvestment Fund, along with the 40-hours per full-time
employee to the local community, Element 7 will be a force for good in Fresno.
As demonstrated by the Letters of Support attached to the rear of this section of the
application, we have strong support from the community. Letters include support from
Healthy Fresno Air, Advance Peace, Faith in Fresno, Take a Stand, TRU Ballers, Kings
Canyon Veterinary Foundation, Southeast Fresno Economic Development
Association, Latinos 4 Cannabis, NDICA, and West Wind Church – Reverend William
V. Kittle of West Wind Church kindly wrote us a letter of reference expressing his
interest in partnering with Element 7 to create educational programs that educate his
online California congregation on the medical and holistic benefits of cannabis, many
of whom are based in and around Fresno.
November 28, 2020
Element 7
Mr. Robert DiVito
Dear Bobby,
I would like to begin by thanking Element 7 for your generous donation of for our “Fresno
Clean Up” Program. Your donation allowed Healthy Fresno Air, Faith in The Valley, and
Advance Peace to perform Seven (7) Park Clean Up Events throughout Southwest and
Southeast Fresno. The youth that participated appreciate you taking the time to join their
community effort.
We would also like to thank you for interest in Healthy Fresno Air and the Keishaun White Clean
Air Experiment. We had a great conversation, and you provided some great insight that could
potentially yield even more data for our project. We look forward to having more conversations
in the near future.
I support your efforts to obtain a cannabis license in the City of Fresno. I believe that
Element 7 has shown that they will be an active and positive influence in the community. Local
residents will benefit from their sincere dedication to education and outreach. I applaud their
efforts to partner with local residents to ensure opportunities for everyone.
I look forward to your successful cannabis endeavor and again state my full support.
Sincerely,
Marcel Woodruff
Community organizer/activist
marcel@faithinthevalley.org
December 1, 2020
Mr. Bobby DiVito
Element 7
Bobby,
I would like to take the opportunity to thank you and Element 7 for your generous
donation. Your donation to our Annual Thanksgiving Turkey Giveaway was a
blessing to the community. We are grateful for presence during the Turkey Giveaway
and appreciate how you engaged the residents of Southwest Fresno. We were able to
serve 300 families that day with your help.
The Take A Stand Committee supports the efforts of Element 7 to obtain licensing in
the City of Fresno. You have shown that Element 7 will be a willing and generous
community partner for years to come. We look forward to future collaborations that
enhance the lives of our community members.
I look forward to working with you, Mr. DiVito, and the Element 7 team here in Fresno.
Sincerely,
JSumler
Janice Sumler, Director
Take A Stand Committee
__________________________________________________________________
www.takeastandcommittee.org 4974 E. Clinton Way, Fresno, CA. 93727
November 30, 2020
Mr. Robert DiVito
Element 7 Fresno
645 West 9th Street, Unit #110-631
Los Angeles, CA 90015
Re: LETTER OF SUPPORT – COMMUNITY OUTREACH AND SUPPORT
Dear Robert,
Thanks for your time recently to engage and advise us on your upcoming
commercial cannabis application in the City of Fresno.
We appreciate you taking the time to walk us through your approach
to cannabis in the City and the upcoming cannabis application
process. Your commitment to hiring local talent and community support
initiatives are progressive and sound exactly what the industry and City
requires form operators in your industry.
As a non-profit within the City, support from companies such as yours are
exactly what organizations like our need to support the community and
achieve our mission and objectives.
We wish you all the very best in the upcoming process and have no
hesitation in supporting your business as a good neighbor and friend of
Element 7 Fresno.
David Rivera
Co-Owner and Founder
TRU Ballers
December 3, 2020
Element 7 Fresno LLC
Thank you in your interest in providing support to our organization. We are an organization that provides
skateboards and safety equipment to under resourced youth in the Central Valley free of charge. We
appreciate Element 7’s willingness to help support and improve local non-profits as you build your business in
Fresno. Please feel free to contact us with any questions you may have. Thank you again.
Sincerely,
Rodney Rodriguez
Founder/President
Fresno Skateboard Salvage
Tax ID # 82-4514085
Fresno Skateboard Salvage Inc.
info@fresnoskateboardsalvage.org
fresnoskateboardsalvage.org
Rodney Rodriguez – Founder/President
Lance Anderson - Secretary
Rhiannon Oakes - Chief Financial Officer
LLC-12 Secretary of State
Statement of Information
(Limited Liability Company)
IMPORTANT — Read instructions before completing this form.
Filing Fee – $20.00
Copy Fees – First page $1.00; each attachment page $0.50;
Certification Fee - $5.00 plus copy fees
This Space For Office Use Only
1.Limited Liability Company Name (Enter the exact name of the LLC. If you registered in California using an alternate name, see instructions.)
2. 12-Digit Secretary of State File Number 3.State, Foreign Country or Place of Organization (only if formed outside of California)
4.Business Addresses
a. Street Address of Principal Office - Do not list a P.O. Box City (no abbreviations) State Zip Code
b. Mailing Address of LLC, if different than item 4a City (no abbreviations) State Zip Code
_____________________
Date
____________________________________________________________
Type or Print Name of Person Completing the Form
_________________________
Title
__________________________________
Signature
c. Street Address of California Office, if Item 4a is not in California - Do not list a P.O. Box City (no abbreviations) State Zip Code
If no managers have been appointed or elected, provide the name and address of each member. At least one name and address
must be listed. If he manager/member is an individual, complete Items 5a and 5c (leave Item 5b blank). If the manager/member is
an en ity, complete Items 5b and 5c (leave Item 5a blank). Note: The LLC cannot serve as its own manager or member. If the LLC
has additional managers/members, enter the name(s) and addresses on Form LLC-12A (see instructions).
5.Manager(s) or Member(s)
a. First Name, if an individual - Do not complete Item 5b Middle Name Last Name Suffix
b. Entity Name - Do not complete Item 5a
c. Address City (no abbreviations) State Zip Code
6. Service of Process (Must provide either Individual OR Corporation.)
INDIVIDUAL – Complete Items 6a and 6b only. Must include agent’s full name and California street address.
a. California Agent's First Name (if agent is not a corporation) Middle Name Last Name Suffix
b. Street Address (if agent is not a corporation) - Do not enter a P.O. Box City (no abbreviations) State
CA
Zip Code
CORPORATION – Complete Item 6c only. Only include the name of the registered agent Corporation.
c. California Registered Corporate Agent’s Name (if agent is a corporation) – Do not complete Item 6a or 6b
7. Type of Business
a. Describe the type of business or services of the Limited Liability Company
8.Chief Executive Officer, if elected or appointed
a. First Name Middle Name Last Name Suffix
b. Address City (no abbreviations) State Zip Code
9.The Information contained herein, including any attachments, is true and correct.
Return Address (Optional) (For communication from the Secretary of State related to this document, or if purchasing a copy of the filed document enter the name of a
person or company and the mailing address. This information will become public when filed. SEE INSTRUCTIONS BEFORE COMPLETING.)
Name:
Company:
Address:
City/State/Zip:
LLC-12 (REV 01/2017) 2017 California Secretary of State
www.sos.ca.gov/business/be
19-B11632
FILED
In the office of the Secretary of State
of the State of California
MAR 18, 2019
ELEMENT 7 FRESNO, LLC
201905710639 CALIFORNIA
.
CORPNET, INCORPORATED (C3192531)
DivitoM.Rober
Consulting
03/18/2019 Amanda J Beren Filer
Page 1 of 1
ELEMENT 7: LOCATION PLAN
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6.LOCATION PLAN
Introduction
Finding the optimal business site is never easy – the challenge of locating premises
that have no immediate neighbors with concerns for a cannabis business are difficult
in every municipality we operate within. Communication though, and early engagement
are key. Re-educating neighbors, stakeholders, community leaders, and immediate
neighbors on how a compliant and controlled cannabis business can be built and
managed, can be effectively done when Element 7 engages these people early,
including these people in our business plans and site operation strategies.
Our efforts to educate the City of Fresno date back to 2018 when Element 7 delivered
an educational packet for ‘Compliant Cannabis Operations’ to the Planning
Department in October of that year. The packet set out how a City like Fresno could
begin to regulate cannabis retail sales and the standards that operators, like Element
7, should be held to. We followed on with more education, this time with the community,
when we held Fresno’s largest ever expungement clinic in June 2019, expunging the
records of over 200 people in a single day. Partnering with NDICA (National Diversity
and Inclusion Cannabis Alliance) and the Fresno County Public Defender Office, this
was a major step in our efforts to engage the community.
For the last 4 months, we have continued to educate key stakeholders in the
community, neighbors, and residents in close proximity to our desired retail location.
We have done this by handing out flyers (see attached image below) detailing our
business operations and neighborhood management policies, and by sponsoring a
range of outreach activities in the local community.
ELEMENT 7: LOCATION PLAN
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Our core business objective at E. Kings Canyon Road is to create a vertically enabled
cannabis business in the City of Fresno that maximizes taxes, job creation, and
sustainable economic development, while exceeding the needs of our patients and
customers and continuously demonstrating to our partners and communities that
Element 7 is a business with purpose and vision. We will continue to do this by staying
engaged with the community to gain their buy-in, trust, and commitment to
collaborating with us. As demonstrated earlier, our immediate neighbors are supportive
of our plans and want to welcome us to the Kings Canyon business community.
6.1 Property Selection
The key selection criteria for the physical location of our business premises included
site-compliance measures, neighborhood compatibility, security and customer safety,
extensive off-street parking, City cannabis zoning restrictions, size of the premises,
and how the site fits with our holistic wellness and sustainable business vision. We
have secured the following property for our commercial cannabis application:
ELEMENT 7: LOCATION PLAN
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AERIAL VIEW: 4686 E. KINGS CANYON ROAD, FRESNO
ARTISTS AERIAL VIEW: 4686 E. KINGS CANYON ROAD, FRESNO
The property sits within a busy high-traffic retail corridor that includes adjacent tenants
including AutoZone Auto Parts, Kings Canyon Veterinary Foundation, and Rufino’s
Tires. Element 7 believes it would have minor impacts on the traffic and parking within
the area (off-street parking for 36 vehicles) and pedestrian safety would not be an issue
given the clear entrance and exit points to the property. As demonstrated by the
signatures we have included in the Neighborhood Compatibility section of this
Application, the locals we have engaged with are supportive of cannabis and Element
7’s proposed retail operations. Site and Floor Plans are available at the rear of this
section of the application.
ELEMENT 7: LOCATION PLAN
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6.3 Premises (Site) Diagram
Our team has attached an accurate, to-scale premises diagram that focuses on the
overall property and building which includes adjoining and neighboring buildings that
may be affected by our business (refer to rear of this section of the application).
If approved for a Cannabis License, our proposal to City Planning would be the
following proposed external works and modifications would be applied for with City
Planning:
1.Renovation to full exterior and interior of the property including replacement of
doors and windows, securing the roof, paneling and painting, and a new inviting
customer entrance to the left side of the building.
2.Replace all exterior doors and windows with industrial strength installations with
upgraded locks, frosted glass for aesthetics and security. Glass would we ‘Clear
Secure’ – an unbreakable and shatter-proof glass that is 300 times (300X)
stronger than regular glass. Glass is 2mm thick manufactured from high-density
polymers.
3.Removal of the existing building signage with replacement of an ‘Element 7’
signage (as approved under the Municipal Code).
4.Internal works within the property to upgrade and remodel it for compliant, legal,
licensed retail cannabis operations.
5. Re-painting existing parking lines and replacing parking signage to clearly
designate ADA parking spots and parking spots for all other customers.
6.Works to hide any electrics and water meters.
7.Replace existing concrete flooring with a non-slip tile for better visual aesthetics
and customer safety.
8.Upgrade external lighting with modern fixtures that have continuous illumination
for safety and security.
9.Landscaping works where relevant and space permitted. Landscaping will be
applied only where accessible landscaping opportunities are available, using
drought tolerant xeriscape low-maintenance and user-friendly plants. The plant
layout and selections would be contemporary and manageable to complement
the surrounding structure and architecture.
10.We have not proposed constructing any equipment enclosures externally at the
building.
The new entrance would feel modern, welcoming, and light which is in line with the
overall design concept of the store and Element 7 brand. We will bring in an industrial
cleaning crew to clean the entire site prior to store opening.
6.3.1 Premises (Site) Diagram: Parking, Driveways and Auxiliary Buildings
Element 7 has included plans showing the locations of the two existing driveways on
the site (east and west side of the property) and all parking on the site. Parking includes
ADA-compliant spaces, 3 electric vehicle charging stations, and a bike parking rack.
ELEMENT 7: LOCATION PLAN
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information highly confidential security information business structure and trade secrets.
At the front of the building Kings Canyon is a two-lane road each way with a parking
lane directly in front of the property.
PARKING AMENITIES AT ELEMENT 7 FRESNO
Summary
Selecting the optimal site for Element 7's cannabis operations balances a number of
factors that have a significant impact on security, financial stability, site accessibility,
workforce mobility, and a range of other measures that drive business performance.
We are determined to ensure that we engage proactively with various departments
within the City to ensure that we exceed all planning, building, and law enforcement
expectations, while creating a facility that creates a great customer experience that
people want to actively engage with.
ELEMENT 7: NEIGHBORHOOD COMPATABILITY PLAN
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3. NEIGHBORHOOD COMPATIBILITY PLAN
Commitment to the Fresno Community
Element 7 is committed to being an asset to the local community. We aim to enhance
the local community by being a safe, professional business that is considerate and
dedicated to the advancement of the community. Element 7 strives to establish a
cannabis dispensary that encourages entrepreneurship, contributes to the
community’s overall health, and promotes awareness of the benefits of marijuana
through education, seminars, newsletters, and so forth.
Element 7 will maintain the business premises in a manner that will best eliminate
potential nuisances, safety and security issues, and negative effects on the
surrounding community. Element 7 is focused and conscious about its role and
potential impact on the local neighborhood; as such, Element 7 intends to operate in a
manner that is respectful and beneficial for the residents, visitors, and business owners
in Fresno. Element 7 has consciously chosen a location that we believe is optimal
within the City for safety, security, noise, light, odor, litter, traffic, parking, and
pedestrian access.
Over the last 6 months, Element 7 has had numerous discussions with City Staff, local
residents, business owners, stakeholders, and other persons in Fresno. Our efforts to
educate the City date back to 2018 when Element 7 delivered an educational packet
to the City of Fresno Planning Department, attempting to demonstrate what compliant
retail operations could look like in Fresno. All of these conversations led us to E. Kings
Canyon Road – a location that absolutely minimizes neighborhood impacts. We have
a highly supportive landlord that is excited about partnering with us to build and operate
a legal and licensed dispensary at the site.
Our property has parking for over 36 vehicles and is easily accessed from major roads
including CA-41, CA-180, E. Kings Canyon Road, and feeder roads such as Chestnut
Avenue, Maple Avenue, and Cedar Avenue. There are no sensitive uses within 600
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with 4 pages inserted into application) was circulated for clear information to these
stakeholders on Element 7’s business and plans for operations in Fresno.
We received Letters of Support from 10 neighboring businesses including our
immediate neighbors to the east and west of our location – Auto Zone and Kings
Canyon Veterinary Foundation.
Good Neighbor Policy
Element 7 has a ‘Good Neighbor Policy’ in place to ensure that it builds a sustainable
relationship and dialogue with its neighbors in Fresno and proactively address issues
before they become problems for the business. We will create an outreach program to
actively engage with our immediate business neighbors on both an always-available
and formalized twice a year basis. We are committed to creating a strong sense of
community and business health around our facility, regularly consulting and engaging
with local business neighbors. This program will be enacted to all businesses within
600-feet of Element 7. Outreach efforts will include:
•If Element 7 is successful in its Application, a personal visit from the Licensees
to each business within 21-days of being awarded a Permit.
•Creating an email database of all businesses within the 600 feet radius and
sending them a twice-annual email offering news of the cannabis industry AND
Element 7 business, while asking for proactive feedback on better business and
community relations. All businesses will be given the name and phone number of
Element 7 Community Relations Manager (Local General Manager).
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•Inviting businesses to attend a Business Feedback and Community Management
Forum twice a year which will be hosted at a suitable venue in the proximate area.
Additionally, residents within 600-feet of Element 7 will also be included and will
receive our Community Relations Officers contact information.
•Creating a dedicated email address for priority feedback – feedback@e7ca.com
and designating one of our Senior Managers as the Community Relations Officer
at Element 7 (Local General Manager).
•During the first year of operations, Element 7 will attend quarterly meetings with
the City to discuss costs, benefits, and other community issues.
Response Plan for all Complaints
All neighborhood issues will have a maximum 48-hour resolution process in place with
an ideal resolution timing of 24 hours. To ensure that these commitments are met, a
core Emergency Response Team has been created locally including the General
Manager, 2 Shift Managers and Head of Security. This team will meet weekly for 30
minutes to discuss all issues, to ensure that issues are being addressed and completed
within committed timings. In the event of any new ‘emergency’, the team would be
responsible for immediately identifying the threat or issue, assessing the risk to the
business, and creating a command center to deal with the issue.
The goal of the Emergency Response Team is to assist with the implementation of the
Emergency Response Plan within the dispensary facility and to guide patrons
according to the standards outlined below. The duties of the Emergency Response
Team are as follows:
•Be familiar with the content of the Emergency Response Plan.
•Alert customers on the processes for entering, making purchases and exiting
the dispensary during such Plan.
•Ensure that staff and consumers are appropriately adhering to the protocols.
•Report to head office with regards to any situation & agreed resolution steps.
•Maintain a calm environment for employees and customers.
Flow-charts have been created to address a range of
issues within the business relating to neighborhood issues
and the steps to resolve such issues. An example of one
of these flowcharts is included to
All reports will be kept on file locally and uploaded to a
centralized Emergency Response Management and
Tracking Platform within Element 7 head office. This
platform records and tracks incidents and flags
management if deadlines are approaching and incidents
are not resolved (as demonstrated below).
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Centralized Emergency Response Management and Tracking Platform
Platforms such as this are commonly used in a number of adjacent retail industries
such as food and beverage, retail fashion, and telecommunications. This platform
allows Element 7 to simplify and automate incident tracking and reporting.
Responding to Complaints: Community Liaison
We will designate a Community Liaison Officer (Greg Moreno) that will be available to
address any complaints, feedbacks, questions, concerns, and/or suggestions from the
residents, neighboring business owners, community members, and city officials. The
Community Liaison Officer will be responsible for identifying opportunities for Element
7 to volunteer and be involved in the advancement and beautification of the local
community.
A 24-hour phone number and email will be publicly posted at the entrance of the facility,
on our website, and on all receipts provided as sales are made. In addition, Greg will
regularly speak at community events, council meetings, and other public forums to
update the City and the community on business operations.
In addition to responding to complaints related to noise, light, odor, vehicle and
pedestrian traffic, Element 7 will address and manage all aspects of its business to
minimize negative impact as it relates to graffiti and loitering which are discussed
below. The key to proactively addressing and responding to complaints is to have
platforms, and procedures in place to deal with complaints as they are received (and
to have policies in place to reduce contemplated issues before they become problems).
We will do this through our Community Liaison and policies discussed in this section.
Open Door Policy
Element 7 has an open-door policy for local neighbors and residents which drives our
open engagement and communication with these groups. Element 7 will create open
lines of communication by ensuring contact details for the Community Liaison Officer
are readily available. The Community Liaison Officer will be available to answer any
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questions, concerns, and/or suggestions from the residents, business owners, and City
officials of the City of Fresno at all times with empathy and openness. We encourage
neighbors who feel negatively affected or inquisitive about our operations to reach out
to our Community Liaison Officer and discuss their concerns.
Noise Management
We will not have any activities or operations on site that would create excessive noise
for neighboring businesses. The design of our facilities can accommodate sound-
proofing measures via insulation, double-paned windows, foam matting, carpeting,
acoustic ceiling tiles, etc., that will absorb excess sound produced from daily business
practices onsite, preventing it from affecting neighboring businesses or residences.
Noise barriers will be furnished, if necessary, in noise-sensitive areas in the form of
walls, fences, and/or dense plantings of shrubs/trees, or some combination of these,
with close attention paid to aesthetic visual appearance.
Exterior Lighting Management
Light is required to be illuminated at night for security purposes. Light will be kept to
approximately 2-foot candle intensity (or as directed by City Building Officials) and will
be directed to the ground rather than shining towards neighboring properties. The use
of fences and landscaping will reduce any issues of glare and shine, while providing
adequate security measures.
Odor Control and Management
Element 7 has developed a proactive integrated odor management system to eliminate
cannabis odors from the immediate exterior of the Facility, and between operations
within the Facility. As part of our Good Neighbor policy and internal practices, we take
all odor and noise complaints very seriously. If an odor complaint is made against our
facility, we will work with local officials to find the source of the odor and eliminate it.
Industry standards demand that comprehensive Odor Control devices and best
practices are implemented across cannabis facilities. As a leading cannabis operator,
we work with 15000 Inc., an industry-specific engineering group from Santa Rosa, who
are experts and leaders in designing effective and environmentally efficient odor
management systems in cannabis facilities throughout California. The best practices
and industry approved equipment ensures redundancies across our system that
exceed State and County directives to absorb and eliminate cannabis odors. Our odor
management systems prevent odor generated inside the facility from being detected
outside our facility, anywhere on adjacent property, or public rights-of-way. More
regarding odor control is contained within our Odor Control and Waste Management
Plan. All products will arrive at our retail facility packaged and leave in compliant exit
packages, fully sealed. As such, we see no issues affecting local neighbors and
businesses as we have no cultivation, packaging, processing, or manufacturing as part
of our cannabis application. Please see further discussion of our Odor Control Plan in
section 3.3 below.
Traffic Management
Traffic congestion across many Cities in California is reaching intolerable levels – daily
traffic counts on E. Kings Canyon Road are over 33,000 vehicles a day. New building
congestion is one of the major causes of traffic congestion which is why Element 7 has
chosen an already built property that requires minimum construction works to become
operational. The optimal site chosen for out facility will have adequate parking
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In addition, the site presents excellent access from nearby major roads and freeways
servicing the Fresno community which will create a more sustainable, and
economically beneficial cannabis business for Element 7 and the City of Fresno (see
image below).
Access Roads that Serve Element 7 Fresno
Pedestrians
Pedestrians crossing our driveway will be warned of traffic through both signage,
lighting (after dusk), and mirrors that allow them to see vehicles exiting the rear of the
premises. In addition, a striped pedestrian crossing will be painted to allow the safe
movement of pedestrians across any driveway leading to a main street and drivers will
be warned to watch pedestrians crossing via signage as they exit the facility.
Mitigation Plan: Integration of Safety and Security Measures into the Design
The integration of our safety and security features and enhancements is managed and
implemented through careful planning, a close working relationship between our
security, design, and retail teams, and collaboration with City officials, particularly local
law enforcement and fire safety. Many of the security features we implement are done
so with no visibility to the public, and include:
•Man-Trap Lobby: Element 7 has designed its lobby so that a glass lobby
separates the front door of the dispensary from the retail floor. This mitigates
the risk of anyone attempting to enter the facility without an ID Card or that may
be under the age of 21 (or 18 years of age for medical patients).
•Bullet Resistant Acrylic Security Glass: We install bullet resistant acrylic
security glass at key points within the facility including all external windows, and
within the main security lobby that separates the front door from the retail facility
– this glass is secure, safe, and still allows us to create an inviting retail
environment. This mitigates theft and break-in.
•Roll-Down Gate: As the facility is locked at night, a discreet clear polycarbonate
gate will roll-down splitting the lobby in half. This gate is designed to slow any
intruder that might be able to break in through the front door at night. This
mitigates theft and break-in.
•Fortified Internal and External Walls: As Element 7 remodels and renovates
the premises, a number of fire safety and security installations are included such
as installing steel sheets between studs (which are also built closer together)
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and drywall so that intruders are heavily restricted from breaking into any
internal rooms within the facility. In addition, we use a thicker drywall that
improves security and has a higher fire rating and place the metal sheets on
both the walls and ceilings to prevent entry from the roof. This mitigates theft
and break-in.
•Industrial Grade Doors, Hinges, Frames and Locks: All internal doors have
a 2-factor bio-scan and swipe card mechanism. All locks, hinges, and frames
are industrial grade for added strength and security. This mitigates theft and
break-in.
•Discreet Detectors and Cameras: Our building plans include smoke and gas
detectors; fire safety warning and monitoring systems, and CCTV cameras
discreetly placed in the corners of rooms which monitor all activities and
movements within the premises, with motion detection on the roof and fence
lines with feeds of all security back to a central security room & 3rd party
providers. This mitigates theft and break-in and creates a more secure
neighborhood and local community.
•Panic Buttons: Panic buttons shall be discreetly placed and hidden from public
view within the lobby, retail counters, loading and unloading zone, storage and
office. This mitigates theft and break-in.
•Continuous Monitoring: The facility is monitored 24/7 by our Bosch Integrated
Security System which continuously tracks all movements within the facility.
This mitigates theft and break-in.
3.2. Avoiding Nuisances for Neighbors and the Surrounding Community
The key to avoiding nuisances and becoming a problem in the general neighborhood
is effective planning, ongoing communication and engagement with neighbors, and
having appropriate policies in place to deal with issues in a timely and effective manner.
Previously discussed ideas that seek to avoid being a nuisance include:
•Proactive and Early Engagement and Education – Element 7 has already
engaged a number of businesses in the local community by handing out
Education Booklets to over 30 local businesses and residents.
•Good Neighbor Policy – Having this policy in place enables us to proactively
address issues and risks before they become problems.
•600 Feet Outreach Program – This program is designed to introduce and
commence engagement with local residents and businesses. By having an open
dialogue, we are able to understand issues and concerns from everyone’s point
of view, and then address those issues.
•Local Community Relations Manager and Officials – Greg Moreno has
decades of experience in the Central Valley and in relevant jobs that helps him
identify issues and respond to concerns. Greg served in the US Marine Corps for
21 years and is an expert on conflict resolution. Amber has worked in Human
Resources for over 15 years.
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•Emergency Response Team – This team are equipped with the policies,
procedures, and life skills to deal with situations and issues that may arise.
•Clear Site Policies and Procedures – As demonstrated above, we already have
a viewpoint and clear processes in place for managing traffic, pedestrian safety,
noise, odor, lighting, and a range of security and safety issues. We have expert
advisors on the Element 7 team that include fire safety, environmental, security,
waste management, and a range of other functions to ensure that we build a local
business that minimizes its nuisances on the community.
Nuisance Management
Element 7 will enact the following practices to ensure a “good-neighborhood policy”
with prospective neighborhood business establishments and communities:
•Provide a pleasing storefront absent of offensive signs or symbols such as
cannabis names and logos.
•Operate a well-run and clean store staffed with well-trained industry
professionals that are passionate about their job and find purpose in what they
do each day at work.
•Hire on-site security personnel to ensure the safety of customers and
employees is maintained at all times of the day and across all aspects of
business operations.
•Ensure the placement of best-in-class security systems, lighting, fencing,
alarms, systems and policies to promote a safe environment for both employees
and customers.
•Maintain positive relations with local police departments, municipalities, and
elected officials to ensure compliance with local laws and continuous
communication to proactively manage issues.
•Provide a 24/7 telephone line, responsive website, and email dedicated to
receiving and responding to community issues immediately and without delay.
In addition to the earlier neighborhood issues discussed and identified, we have
provided commentary below with regards to graffiti and loitering.
Graffiti
We will ensure that any debris, graffiti, and unappealing or unsafe aspects of the
building will be immediately addressed. Any graffiti shall be removed and painted over
to match the color of the surface to which it is applied within 24 hours of its occurrence.
Further, any unsightly appearances will be quickly addressed and remedied.
Loitering
To prevent any other possible nuisances and security issues, we will prohibit loitering
within twenty (20) feet of the premises, and “No Loitering” signs will be posted at
strategic locations around the property. A security guard will be present on the
premises to monitor the perimeter of the facility, control loitering, and site access. A
state-of-the-art security system with strategically placed, hi-tech cameras will keep a
watchful eye over the property 24/7, and spaces that may encourage loiterers or
vagrants to “camp out” will be refurbished or eliminated.
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Signage Notices Used at the Facility
Signage is used extensively within the facility to provide direction to staff, customers,
and patients, with a view to creating the best run facility possible. This approach and
commitment further ensures local neighbors are not disrupted and the business does
not become a nuisance. All signage at the site will be directive and displayed
prominently within the business in measurements of not less than 8 x 10 inches in a
minimum of 24-point font, stating:
1.“The sale or diversion of cannabis or cannabis products without a license issued
by the City of Fresno is a violation of State law and the Fresno Municipal Code.”
This sign will be displayed in the lobby of the business for employees, partners
and contractors.
2.“Distribution to Persons Under 21 years of age is Strictly Prohibited (unless
Qualified Medical Patient aged over 18). Transportation of Cannabis or Cannabis
Products across State lines is Strictly Prohibited.” This will be posted in the
Reception Area and immediately visible upon entering the Main Entrance.
3.“No one under the age of twenty-one will be allowed on the premises.” This sign
will be displayed at all building entrances.
4.“Secondary sale, barter, or distribution of cannabis or cannabis products
purchased from Element 7 is a crime and can lead to arrest.” This sign will be
displayed in the lobby of the business for employees, partners and contractors.
5.“These premises are continually monitored by CCTV cameras.” This sign will be
displayed at all building entrances.
6.“Loitering is strictly prohibited.” This sign will be displayed at all building
entrances.
7.“The Effects of Cannabis Products can vary from person to person, and it can
take as long as two hours to feel the effects of some cannabis-infused products.
Carefully review the portion size information and warnings contained on the
product packaging before consuming.” Will be displayed on the Retail Floor Area
for consumer and patient safety and education purposes.
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8.“Community Liaison: Greg Moreno can be reached 24/7 at (559) 469 7882 or
Fresno@e7ca.com”
9.A copy of Element 7 Fresno’s BCC issued Storefront Retailer license, and Hours
of Operation, which will be displayed within plain sight of the Public in compliance
with Section 26013, Business and Professions Code. Reference: Section 26012,
Business and Professions Code.
10.Signage that reminds our staff (and suppliers) that the transport of cannabis
interstate is a Federal offence.
This signage is designed to ensure that employees and contractors are managed and
aware of the rules and regulations of the cannabis industry. Signage will be delivered
in both English and Spanish versions.
3.3. Odor Mitigation Practices
Element 7 has developed a proactive integrated odor management system to eliminate
cannabis odors from the immediate exterior of the Facility, and between operations
within the Facility. As part of our Good Neighbor policy and internal practices, we take
all odor and noise complaints very seriously. If an odor complaint is made against our
facility, we will work with local officials to find the source of the odor and eliminate it.
Industry standards demand that comprehensive Odor Control devices and best
practices are implemented across cannabis facilities. As a leading cannabis operator,
we work with 15000 Inc., an industry-specific engineering group from Santa Rosa, who
are experts and leaders in designing effective and environmentally efficient odor
management systems in cannabis facilities throughout California.
The best practices and industry approved equipment ensures redundancies across our
system that exceed State and County directives to absorb and eliminate cannabis
odors. Our odor and noise management systems prevent odor generated inside the
facility from being detected outside our facility, anywhere on adjacent property, or
public rights-of-way.
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Key aspects of our odor management plan include (as discussed below in detail):
•Continuous use of 15000 Inc. working collaboratively with the Element 7 team
and our odor mitigation / HVAC consultant, Bradley Bernard
•A range of hardware installations in the facility including Cleanleaf CL2500
HVAC with HEPA Filters, MERV-13 Grade Filters, carbon scrubbers, and
electrostatic air cleaners
•Air-quality enhancing plants
•Maintenance schedules that adhere to manufacturer specifications
•Daily odor inspection program
•Nasal Ranger Field Olfactometer
•Odor Management hotline
3.4 Potential Sources of Odor and Odor Emitting Activities
Potential sources of odor at Element 7 Fresno will come from cannabinoids, flavonoids,
and terpenes present in the cannabis products. That said, there will be no cultivation,
nursery, manufacturing, packaging, processing, handling, or distribution operations at
the site which are the main causes of cannabis odor. All products will be received
packaged and sealed and will be sold the same way – in this instance, odor will be
almost non-existent except for damaged or broken products (disposed of immediately
and securely) or from sample flower jars that may be opened for inspection.
However, we are mindful that the cannabis and cannabis products present on our
premise can be a source of cannabis odor omissions; specifically, the storage of
cannabis on our premises may emit a cannabis odor inside of your facility. Element 7
will install various odor control devices and employ various techniques to mitigate and
remediate any odor emit. In all instances, there will be no consumption of cannabis on
site of any form. A fully integrated odor management plan has been developed to deal
with all odors, as described below.
3.5 Odor Control Devices and Techniques
A range of processes and systems are used to eliminate any potential odor at the site,
ensuring that nothing is detectable outside the licensed premises.
Cleanleaf CL2500 HVAC with HEPA Filters (ACS)
Element 7 utilizes HVACs with HEPA filters, six to twelve pocket bag filters, activated
carbon inserts, and an ultra-quiet blower that creates negative pressure and does not
produce more than 62dBa. There are four filtering layers with the CL2500 that provides
quadruple redundancies to ensure that odor generated at the facility does not leak into
its external surrounding areas and cause an odor nuisance. This comprehensive and
environmentally efficient system captures airborne threats that include mold, fungi,
spores, bacteria, pollen, pests, insects, volatile organic compounds (VOCs) and odors.
The system requires 115V 60Hz power and produces just 62 dBa (decibels) of sound,
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which is equivalent to a conversation in a restaurant, office background music, or an
air conditioning unit at 100 feet.
The system itself is composed of the following:
1. ACFM Media Filtration with Medical Grade HEPA Filter
2. Silencer that reduces noise by 10-12 decibels
3. Pleated Fiber Pre-Filters
4. 6 or 12 Pocket bag Filter
5. 0.3 Micron HEPA Filter
Cleanleaf CL2500 HVAC with HEPA Filters
Filter One: MERV-13 Grade Filters
The true measure of any air purifier’s efficiency is the MERV rating assigned to it. This
is the Minimum Efficiency Reporting Value, and this value is indicative of the
technology’s ability to trap particles in a variety of sizes.
The CL2500 uses MERV-13 Filters. Anything above a 13 MERV Rating is considered
to be a High-Efficiency Particulate Arrestance (HEPA) Filter, often used for hospitals
and scientific research lab applications.
A filter with a MERV rating of 13 captures particles greater than 0.3 micrometers. This
includes bacteria, droplets from sneezing, smoke, and most other sources of pollution.
This level of filtration is used in patient and surgery areas of hospitals.
Filter Two: Six (6) to twelve (12) pocket, 95% bag filter
The second filter, a six (6) to twelve (12) pocket bag filter captures mold, mildew and
pollen in the air.
Filter Three: Activated Carbon Inserts
The third filter of the CL2500 is a polarized media filter with activated carbon insert
pads that provide medical-grade air quality throughout the Facility. Polarized media
filters utilize electromagnetic polarization to maximize the collection of dust and
pollutants in the air, which increases the effectiveness of air filtration and odor control.
The carbon pads provide an additional layer of odor removal, providing maximum
efficiency and benefit. Upgrading filters are relatively inexpensive, and the costs are
heavily offset by the reduced labor and cost of replacing those filters less frequently.
These technologies are utilized by hospitals, laboratories and other clean facilities
around the world and are an excellent option for cannabis facilities.
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Filter Four: Ultra-Quiet Blower
The fourth filter of the CL2500 is an ultra-quiet blower motor that creates negative
pressure and cycles the air 10 times every hour. The airflow is straight through and is
released a designated exit valve at the rear of the facility. The blower produces only
62 dBas, which is fairly quiet- producing the same amount of noise as a conversation
in a restaurant, office background music, or an air-conditioner 100 feet away, as
demonstrated in the graph below.
Noise Comparison for Element 7 HVAC Units
Carbon Scrubbers
Element 7 will also be deploying activated carbon scrubbers in storage rooms where
the highest concentration of products is located. These types of filters use pelletized
granule carbon to remove odor, dust, and pollutants from the air and can be used as a
standing unit in a space or as an exhaust filter. Just like the carbon in the air filters
mentioned previously, these pellets remove dust, odor, and other pollutants through
the air as it passes through the filter.
Electrostatic Air Cleaners
Element 7 will install Electrostatic air cleaners, which are highly efficient filtration
devices that use electrostatic attraction to remove fine particulate matter such as dust
and cigarette smoke from the air.
Electrostatic air cleaners ionize (or electrically charge) particles as incoming air is
drawn over an electronic cell. The charged particles are then attracted to and trapped
by a series of flat collector plates that are oppositely charged, with the particles literally
'sticking' to the collection plates until they are manually removed.
Filtration Systems Used by Element 7
Air Quality Enhancing Plants
Part of Element 7’s facility design incorporates living plants that have the ability to
enhance air quality. NASA studies the effects of plants on air quality and their research
confirms that common houseplants are natural air purifiers.
Although their original research was aimed at finding ways to purify the air for extended
stays in orbiting space stations, the findings are important for us on Earth as well. The
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following plants are documented as being especially good at improving indoor air
quality and will be used within the interior design of Element 7's facilities:
●Aloe Vera
●Bamboo Palm
●Peace Lily
●Spider Plant
●Parlor Palm
●Red Emerald Philodendron
●Gerbera Daisy
Plants Used by Element 7 to Manage Odor
3.6 Related Maintenance Activities
Our maintenance program and staff training schedule covers all aspects of the
operations including odor management. As part of our Odor Management Plan, we
implement Best Practices that facilitate in conscientious and responsive operations
that work towards earning and protecting public trust by upholding our Good Neighbor
Policies and ongoing commitment to the local community. Our Best Practices include:
1.Maintain all scheduled maintenance, repairs and performance assessments and
inspections recommended by equipment and system manufacturers;
2.Perform daily visual inspections and report findings; and
3.Replace items such as filters monthly, or as needed if replacement must be done
sooner.
Weekly Monitoring Schedule
Element 7 will conduct (or arrange 3rd party vendors to conduct) inspections of the
following, followed by formal log and full reports:
-Perimeter fences, doors, lighting, surveillance cameras and landscaping;
-Exterior and interior door operability and security;
-Exterior landscaping - debris inspection and removal;
-Intrusion Detection System and communication inspection;
-Security surveillance system inspections- cameras, software, monitors and
operating systems;
-Security camera angles, cleanliness and operability;
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-Key logs and ID Badge reports;
-Signage cleanliness and visibility;
-Back-up power systems and generator;
-Verify license status of preferred vendors and new vendors and contractors;
-Team meeting addressing security policies and procedures, reports, updates and
input.
As required, the General Manager will schedule and manage one-off maintenance
tasks and scheduled tasks – all works will be logged in a Maintenance Schedule on a
platform called Facilio which is an all-in-one property management and maintenance
platform (image below). Facilio enables teams to collaborate on property maintenance
with scheduled maintenance alarms and reminders sent to team members so that all
work can be tracked for efficiency and performance.
Daily Odor Inspections Program
Element 7 will conduct daily field tests to measure odor outside the facility using a
"Nasal Ranger Field Olfactometer", which is manufactured by St. Croix Sensory, Inc.
The Olfactometer provides precise odor strength measurement that is consistent from
place to place. This device will enable local authorities, and Element 7, to validate
and/or substantiate odor complaints.
The maximum threshold for odor control is the dilution-to-threshold (D/T) ratio of seven
parts clean or filtered air to one-part odorous air (7:1). Cannabis odor typically rates at
a Level 7 on the olfactometer.
To "pass" an odor control test, the cannabis facility must yield a test result that is LESS
than the Level 7, which is the maximum threshold at all three (3) odor measurement
locations:
(a) The front entrance of the facility, and
(b) Two (2) opposite property boundaries accessible from public right-of-way
points, and
ELEMENT 7: NEIGHBORHOOD COMPATABILITY PLAN
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Complaints will be handled in the following manner:
1.All complaints will be immediately logged into the Company’s system and the
Facility General Manager, Chief Compliance Officer and CEO of Element 7 will
be notified immediately. Information will include:
(a) Name, address, and telephone number of a complainant, which
information shall be maintained as confidential to the maximum extent
allowed by law;
(b) Time and date of the complaint, whether that complaint originated via the
hotline or a direct contract between the complainant and County staff;
and a
(c) Description of the odor nuisance, including the estimated location or
source of the odor, and if possible, noting the prevailing wind and/or
weather conditions observed.
2.The General Manager will be responsible for using the Nasal Ranger Field
Olfactometer device to measure the local DT Ratio as complaints are made.
Tests will be conducted:
(c) At the location where the complaint originated,
(d) At a property boundary accessible from public right-of-way, and
(e) On the property where the odor is originating from.
3.In the event that more than three (3) separate complaints are made regarding a
facility within one week, Element 7’s engaged HVAC specialists and CL2500
manufacturer maintenance team will be dispatched to the site to remediate,
repair or replace any faulty, damaged or malfunctioning parts.
Odor Control System – Administrative Controls
As part of our Odor Management Plan will ensure that members of our staff are trained
on the use of the Nasal Ranger Field Olfactometer, the use of all odor management
equipment (basic maintenance such as changing filters), and responding to and
handling complaints.
Also, in furtherance of our extensive recordkeeping practices, we will retain records of
the following odor control and management related matters:
•Maintenance, repairs, performance assessments and inspections
•Filter replacements
•Nasal Ranger Field Olfactometer recording over maximum threshold
•Odor related complaints
15000 Inc. (Santa Rosa) and Freedom HVAC (Martinez) who we have excellent
relationships with, will both be retained for maintenance of HVAC and auditing to
ensure we are continuously exceeding City and State regulations.
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Products would be placed into a Secured Waste Receptacle provided by MediWaste
held within the secured storage room within the facility which is a secured zone and
only accessible by the General Manager, Inventory Manager and inventory department
team members, with all destroyed products tracked into our inventory management
system. This secure room will be under 24-hour surveillance and the MediWaste
Secured Waste Receptacles have a lock system at the top of the waste bin so that
products can only be disposed of, with no retrieval possible. Any ‘disposal’ would
require two staff to be present – one responsible for the disposal and one to
responsible for documenting the disposal into the inventory management system.
MediWaste staff would visit the site as required and remove the Secured Waste
Receptacle into their vehicle for full and complete compliant destruction at their
facilities. Secured Waste Receptacles are able to be wheeled out of our secured facility
to the MediWaste vehicle under supervision of a security guard and an inventory
department staff member.
All cannabis waste generated at the facility will be rendered useless and
unrecognizable within the secure cannabis waste storage area prior to its disposal in
the MediWaste Bins. All rendering and disposal will be done within the unobstructed
view of the security camera in the secure storage room.
We will render all cannabis waste unusable and unrecognizable prior to disposal, this
includes, at a minimum, removing or separating the cannabis goods from any
packaging or container. Cannabis waste will be rendered unusable and unrecognizable
by grinding and incorporating it with other ground, “non-consumable,” “non-hazardous”
materials (soil, plastic pots, netting, spoiled food waste, cardboard, etc.) The resulting
mixture must be at least 51% non-marijuana waste by volume. The rendering and
disposal will be recorded in the track and trace system the following additional
information:
•Name and type of the cannabis goods.
•Unique identifier of the cannabis goods.
•Amount of the cannabis goods, by weight or count, and total wholesale cost of
the cannabis goods.
•Date and time.
•The name of the employee(s) performing and present at the destruction or
disposal.
•The reason for destruction and disposal.
•The entity disposing of the cannabis waste.
Once the cannabis waste is rendered unusable and unrecognizable, the cannabis
waste will be placed into the locked MediWaste Bins which will remain storage in the
secure area until MediWaste is contacted to haul the waste to their facility.
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Summary
We all have good intentions, but as business owners, we get laser-focused on the day-
to-day operations and don't find the time to introduce ourselves around the
neighborhood. Business owners operating in the same city and neighborhoods face
similar issues. From city ordinances and road closures, to taxes and rent values,
business owners have a big say in what happens in their own communities. When
owners can come together on the issues that affect them all, regardless of the industry,
we all win.
Effective neighborhood management comes down to planning, risk management, and
continuous engagement with the community, staff, and customers. As demonstrated
by our efforts to engage locals and educate local businesses and neighbors on our
efforts to be a collaborative business partner, Element 7 is well positioned to operate
a facility with minimal, if any, neighborhood issues or concerns.
We believe that the site we have selected at E. Kings Canyon Road is the most secure,
safest (for pedestrians and vehicles), strategic (location and proximity to all Fresno
residents), and accessible location that a cannabis dispensary could be built and
operated in Fresno. Locals agree and dozens of residents from the community have
enthusiastically supported our plans by signing a pledge of support. Many cited
alternate properties in the City as being problematic for traffic, parking, and pedestrian
safety and are excited to access a cannabis dispensary in a location that is convenient
with a strong plan for safety and security. We are excited to meaningfully contribute
to the economic development of Fresno in 2021 and beyond.
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Kind regards,
Eric Greenberg
Chief Financial Officer
Element 7 Inc.
ELEMENT 7: SAFETY PLAN
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4. SAFETY PLAN
4.1 Fire, Medical, and Hazardous Situations Safety Plan
Element 7 is committed to ensuring that employees are provided the materials,
manuals, and regular staff training sessions that clearly outline safety procedures as
well as potential risks associated with cannabis products. Element 7 complies with all
laws and policies set forth by local jurisdictions and the Occupational Safety and
Health Administration (OSHA), respectively, concerning the production, sale, and
distribution of our facilities’ cannabis products in the local community.
This Safety Plan has been prepared by 3 professional fire safety experts and
architects:
- Brian Uthe who is the Building Inspector at the University of Arizona, Chairman
of the Arizona Building Officials, and is a former Plans Examiner and Fire
Inspector
- Larry Frogoso who is a retired Battalion Chief and Division Chief of the Tracy
Fire Department in California. Larry began his fire-fighting career in 1974 and
serves as an Advisor to Element 7.
- Mohsen Gouneili who is a licensed architect in the State of California with over
30 years of architectural experience across California and North America.
In addition, Element 7 has incorporated inputs from its head of Human Resources
(Taylor Munoz), and Chief Security Officer (Corey English) in developing this plan, as
ELEMENT 7: SAFETY PLAN
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both have valuable inputs into the design of our facilities for the health, safety, and
welfare of our customers, patients, and employees.
Facility Safety Features
The Facility has many safety features to protect employees, patients, customers, and
the physical building itself, including the following:
• Continuous Connection with Local Law Enforcement: The Los Angeles
Police Department’s Small Business Crime Prevention website page states,
“Helping small businesses reduce and prevent crime must be a community
effort,” which signifies the strong relationship of mutual trust that must exist
between police agencies and the communities they serve. In keeping with this
trust, Element 7 has selected a site that is 1.1 miles from Fresno Police
Department Southeast and 1.1 miles from Fresno Fire Station No. 8 – both of
which are easily accessed via major roads connecting the site with each facility.
NEAREST POLICE STATION
NEAREST FIRE STATION
ELEMENT 7: SAFETY PLAN
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• Alarm Systems and Restricted Door Entry: Element 7 will install a State-
Certified security system to manage the premises, with all doors to have
biometric scanners and swipe card access (2-factor authentication). Doors will
feature deadbolt locks to prevent forced entry, and secure, shielded padlocks
will be installed on gates, garages, sheds, exterior facility rooms, etc. Panic /
duress buttons are installed in the Facility in the event of an armed robbery or
other security breach and secured secondary exit ways designed for
emergency use only will provide safe departure from the building. All windows
shall be secured against entry from the outside and will feature reinforced,
burglar-resistant, double-paned glass. Exterior doors shall be properly
equipped with panic hardware as required by all applicable state codes to
prevent unauthorized entry.
• Building Standards: As Element 7 remodels and renovates the premises, a
number of fire safety and security installations are included such as installing
steel sheets between studs and drywall so that intruders are heavily restricted
from movements within the facility; smoke and gas detectors; fire safety
warning and monitoring systems, and fire-retardant building materials.
• Video Surveillance: All video surveillance will provide high-quality, digital
images of any suspicious persons or activities, and be monitored by security
personnel from the Central Security Control Room. Security personnel will have
direct contact lines to local law enforcement authorities to report any suspicious
activities and/or emergency situations. All Video Monitoring will have a direct
live feed to the Fresno Police Department at all times (if required).
• Lighting: The front and rear of the Facility will be equipped with security lighting
as approved by the City. The entrance and rear of building lighting shall be
continuously illuminated. Each light shall provide at least 1.0 foot candle
intensity (or other intensity as directed by City Building Officials). Additionally,
the minimum lighting level of one foot-candle shall be provided at building
entrances and in parking lot areas. All lighting shall be fully shielded, downward
casting and not spilling over onto structures, other properties or the night sky.
Exterior lighting on the premises shall be balanced to complement the
security/surveillance systems to ensure all areas of the premises are visible
and shall provide increased lighting at all entrances to the premises. The
lighting required shall be turned on from dusk to dawn.
• Exits and Exit Signage: The number of exits at the Facility shall be in
accordance with Table 1006.2.1 and Table 1006.3.2 (2) and Section 1017.2 of
the International Fire Code (IFC).
• Motion Detection System: In a study of convicted burglars, the University of
North Carolina at Charlotte Department of Criminal Justice & Criminology found
“that 24% of them would consider the presence of lighting” when choosing a
home or business target, adding, “Motion detectors are definitely a factor that
may help prevent a burglary.” Element 7 recognizes the heightened security
ELEMENT 7: SAFETY PLAN
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that motion detectors provide and will install Motion Detection sensors on the
Roof of the Building which shall activate an Alarm if triggered. These will be
appropriately installed by a State-Licensed Security firm and tested every 3
months.
• Security Guards: All security guards employed at Element 7 will be licensed
by the Bureau of Security and Investigative Services (BSIS) with a valid
Department of Consumer Affairs Security Guard License (‘Security Guard
Card’) which is obtained by completing the annual pre-licensing course. A
security patrol will monitor the facility after hours as noted in the Security Plan.
• Continuous Staff Training and Maintenance: This will be described in far
greater detail below – staff training, and continuous maintenance is the #1
prevention for fire safety issues and Element 7 pays strict attention to both.
Fire Protection Plan
Employees must be fully aware of fire risks and take steps to prevent any chance of a
fire emergency at the facility. To provide the highest level of safety against any threat
of fire at the dispensary, Element 7 will include the following in its fire protection efforts:
• Emergency Action Plan: The Emergency Action Plan will outline any and all
potential fire hazards throughout the business structure — which may include
combustible items, flammable liquids, and/or heat producing equipment — and
include necessary procedures to prevent a fire emergency. Following OSHA
mandates, the Plan will map out exit routes to take in case of emergency and
provide employees critical training on procedures such as fire drills and
evacuation practices.
• Proper Good-Housekeeping Techniques: Facilities will be maintained at all
times to reduce hazards that could result in a fire emergency, including the
cleanup of flammable materials, disposal of trash in metal containers with tightly
fitting lids, and the clearance of corridors and emergency exits for any need for
emergency exit.
• Provision of Fire Protection Equipment: Fire sprinklers, portable fire
extinguishers, fire alarms, automated fire suppression systems, and emergency
alarms and lighting will be installed to better equip employees in fire
emergency/evacuation situations.
• Fire Protection Equipment Maintenance and Testing: Routine maintenance
and testing of all fire protection equipment by licensed and certified fire
protection personnel will be scheduled regularly in addition to any needed
repairs or replacements for existing equipment.
In accordance with the California Fire Code, a plan that covers the following will be
implemented in close consultation with the Fresno Fire Department:
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1. The hazard of fire and explosion arising from the storage, handling or use of
structures, materials or devices (as a cannabis retailer with no manufacturing
on site, we expect this threat to be minimal).
2. Conditions hazardous to life, property or public welfare in the occupancy of
structures or premises.
3. Fire hazards in the structure or on the premises from occupancy or operation.
4. Matters related to the construction, extension, repair, alteration or removal of
fire suppression or alarm systems.
5. Conditions affecting the safety of firefighters and emergency responders during
emergency operations (a Knox Box is provided for easy access).
Our fixed fire extinguishing systems comply with the National Fire Protection
Standards:
§ NFPA 12, Standard on Carbon Dioxide Extinguishing Systems
§ NFPA 12A, Standard on Halon 1301 Fire Extinguishing Systems
§ NFPA 17, Standard for Dry Chemical Extinguishing Systems
§ NFPA 17A, Standard for Wet Chemical Extinguishing Systems
§ NFPA 750, Standard on Water Mist Fire Protection Systems
§ NFPA 2001, Standard on Clean Agent Fire Extinguishing Systems
Fires, Hazardous Material and Inhalation Threat Management
The entire facility will comply with all local fire code requirements. A fire inspection
will occur at least once per year by the local fire department in conjunction with Fresno
Fire Department. In addition, Larry Frogoso will inspect the facility at least twice per
year issuing Element 7 with an independent audit.
General Fire Code Requirements
• An approved Knox Box (key box) shall be provided and installed by Element 7
in a location approved by the local Fire Department and Police Department.
• Element 7 shall obtain all required Fire Department permits and keep them on
site and available for inspection per the California Fire Code, Section 105.
• UL listed and appropriately sized and type of fire extinguishers shall be located
throughout the facility as required by the California Fire Code and local
amendments.
• Inform fire-fighters that they should wear appropriate protective equipment and
self-contained breathing apparatus (SCBA) with a full facepiece operated in
positive pressure mode.
Identification of Fire Hazards
The following is a list of potential fire hazards and their associated work areas:
Work Areas Fire Hazards
All rooms Paper, electrical
Storerooms Paper, plastic, flammable and combustible liquids
Break room Paper, plastic, electrical appliances
ELEMENT 7: SAFETY PLAN
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Retail Area Cannabis products, paper, plastic, furniture & fixtures
Housekeeping Practices
The following are the fire prevention practices associated with fire hazards identified
above:
Type of Fire Hazard Fire Prevention Practices
Paper Wastepaper cans emptied daily
Plastic Waste plastic discarded daily
Electrical Quarterly inspections of outlets, multi strips, cubicles, and
work areas
Flammable liquids Store liquids in approved flammable storage cabinet
Electrical appliances Quarterly inspections of appliances; employees trained to
inspect appliances prior to use
Safe Code of Work Practices
• Flammables, including data sheets, books, rags, clothing, flammable liquids or
trash shall not be placed or stored near heaters or their vents, any electrical
appliance, or other potential sources of ignition.
• Sources of actual or potential heat such as hot plates or electric coffee pots
shall not be placed near flammable materials. Portable space heaters and
candles are prohibited.
• Care must be taken not to block potential escape routes, particularly with
flammable materials.
• Each individual is personally responsible for assuring that extension cords and
multiple plugs are in good condition. Cords that are missing the grounding
prong, are spliced together, or that are missing their protective sheath shall not
be used.
Employee Response to Fire Situations
As previously outlined, employees’ response to a fire emergency is delineated in the
Emergency Action Plan. Designated and trained employees may attempt to extinguish
incipient fires with fire extinguishers after sounding the alarm to alert other employees.
Employee Safety Education
Safety policies detail procedures for ensuring the implementation of best safety
practices at all times and in accordance with Occupational Safety and Health
Administration (OSHA) guidelines throughout all facilities and operations. The OSHA
safety and health framework is meant to “provide employers, workers, and worker
representatives with a sound, flexible method for addressing safety and health issues
in diverse workplaces...[and] should include the following elements within the
framework: management leadership, worker participation, hazard identification and
assessment, hazard prevention and control, education and training, and program
evaluation and improvement.”
These systematic guidelines established by OSHA will be strictly enforced, as the
safety of employees and the public is the company’s foremost business consideration.
ELEMENT 7: SAFETY PLAN
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All employees will comply with all applicable safety regulations as listed in the SOPs
as a condition of employment. Safety training will be provided as often as necessary
and annually at a minimum.
Our goal is to keep our people and our patients are safe. Our training will help our
employees:
• Recognize safety hazards and correct them
• Avoid incidents and near-misses to prevent injuries
• Understand safety best practices and expectations
Building a Safety Culture
At Element 7, the prevention of accidents and injuries takes precedence over
expedience. In the conduct of the company’s business, every attempt will be made to
prevent accidents from occurring. Element 7 requires that its employees, as a
condition of employment, comply with all applicable safety policies and procedures.
The designated Safety Coordinator (local hire to be appointed) is the primary contact
for safety-related matters. All employees will receive an orientation of the safety policy
and rules upon initial employment and are required to bring to the attention of their
manager or the Safety Coordinator any unsafe or non-compliant conditions or
practices. Managers must communicate these concerns to the Safety Coordinator,
who will respond to reports within twenty-four hours. Safety training will be provided
as often as necessary and annually at a minimum.
Senior management will be actively involved with employees in establishing and
maintaining an effective safety program. The General Manager and Safety
Coordinator and other members of the management team will participate with all
retailer employees in an ongoing safety program.
The CEO in coordination with managers must:
• Provide a safe workplace.
• Facilitate monthly safety meetings.
• Provide safety and health education and training.
• Annually review and update workplace safety rules.
All employees must:
• Report all unsafe conditions.
• Immediately report all work-related injuries.
• Wear the required personal protective equipment.
• Abide by the organization’s safety rules at all times.
Safety Coordinator Responsibilities
It is the policy of Element 7 to assign a Safety Coordinator to oversee all safety related
matters and chair the company’s safety committee. The CEO must designate a Safety
Coordinator for the company who will be the primary contact for safety-related matters.
We anticipate this person being a Shift Manager or BudTender who will undertake this
additional safety training or has a background in such training already.
ELEMENT 7: SAFETY PLAN
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Employee Reporting
All employees will receive an orientation to this company’s safety rules upon initial
employment and must bring to the attention of to their manager and/or the Safety
Coordinator any unsafe conditions or practices. Managers will communicate these
concerns to the Safety Coordinator, who will respond to these concerns within twenty-
four hours.
Inspections
The Safety Coordinator or his or her designee must inspect the company’s facility
quarterly to identify potential hazards using the OSHA Self-Inspection Checklist. A
responsible party must be assigned to correct all hazards as soon as possible. If the
hazard is extreme, the inspector in his or her discretion may contact the Safety
Coordinator to terminate operations until corrected. Per OSHA recommendations,
inspections must cover:
• Processing, Receiving, Shipping and Storage - equipment, job planning, layout,
heights, floor loads, projection of materials, material handling and storage
methods, training for material handling equipment.
• Building and Grounds Conditions - floors, walls, ceilings, exits, stairs,
walkways, ramps, platforms, driveways, aisles. Housekeeping Program - waste
disposal, tools, objects, materials, leakage and spillage, cleaning methods,
schedules, work areas, remote areas, storage areas.
• Electricity - equipment, switches, breakers, fuses, switch-boxes, junctions,
special fixtures, circuits, insulation, extensions, tools, motors, grounding,
national electric code compliance. Lighting - type, intensity, controls, conditions,
diffusion, location, glare and shadow control.
• Heating and Ventilation - type, effectiveness, temperature, humidity, controls,
natural and artificial ventilation and exhausting.
• Machinery - points of operation, flywheels, gears, shafts, pulleys, key ways,
belts, couplings, sprockets, chains, frames, controls, lighting for tools and
equipment, brakes, exhausting, feeding, oiling, adjusting, maintenance,
lockout/tagout, grounding, workspace, location, purchasing standards.
• Personnel - training, including hazard identification training; experience;
methods of checking machines before use; type of clothing; PPE; use of
guards; tool storage; work practices; methods for cleaning, oiling, or adjusting
machinery.
• Fire Prevention - extinguishers, alarms, sprinklers, smoking rules, exits,
personnel assigned, separation of flammable materials and dangerous
operations, explosion-proof fixtures in hazardous locations, waste disposal and
training of personnel.
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•Maintenance - provide regular and preventive maintenance on all equipment
used at the worksite, recording all work performed on the machinery and by
training personnel on the proper care and servicing of the equipment.
•PPE - type, size, maintenance, repair, age, storage, assignment of
responsibility, purchasing methods, standards observed, training in care and
use, rules of use, method of assignment.
•Transportation - motor vehicle safety, seat belts, vehicle maintenance, safe
driver programs.
•First Aid Program/Supplies - medical care facilities locations, posted
emergency phone numbers, accessible first aid kits.
•Evacuation Plan - establish and practice procedures for an emergency
evacuation, e.g., fire, chemical/biological incidents, bomb threat; include
escape procedures and routes, critical plant operations, employee accounting
following an evacuation, rescue and medical duties and ways to report
emergencies.
Safety Rules
These safety rules are designed to provide employees with knowledge of the
recognized and established safe practices and procedures that apply to many of the
work situations encountered while employed at this organization.
It would be impossible to cover every work situation. If any employee is in doubt about
the safety of any condition, practice or procedure, they must consult their immediate
supervisor for guidance. Any employee that willingly disregards a safety rule may be
terminated.
4.2 Accident and Incident Reporting Procedures
All accidents or near misses are to be reported to a manager or the Safety Coordinator
immediately. Falsification of company records, including employment applications,
time records or safety documentation will not be tolerated. Employees must notify a
manager or the Safety Coordinator immediately of any unsafe condition and/or
practice.
Reporting Procedures
There are two types of events that fall under the definition of an incident for the
purposes of reporting guidelines. The first is an event that resulted in an injury
and the second is an incident where a ‘near miss’ was recorded. Minor injuries
are equally as important to report as major injuries are. Both of the following cases
and many others like them, are required to be reported.
Example 1: An employee who works at a computer station on a daily basis may
suffer from an ergonomic repetitive strain injury.
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Example 2: A BudTender was opening a box with a box cutter and suffered from
a small laceration to the finger.
The second event is called a Near Miss. A near miss is an unplanned event that
did not result in injury, illness or damage, but had the potential to do so. Only a
fortunate break in the chain of events prevented an injury, damage or fatality.
Incident reporting is necessary for several reasons:
•Reporting enables the correction of the situation and helps prevent similar
future occurrences.
•If an incident results in long term leave or lost time and the employee
wishes to claim compensation from Element 7’s workers compensation
provider, the proper documentation is required in order to receive approval.
•An individual dispensary is required to notify Element 7 Head Office within
8 hours of occurrence of all fatalities, disabling, significant, and serious
injuries or illnesses to workers. Tools, equipment, materials, or other
evidence that might pertain to the cause of such accidents shall not be
removed or destroyed until authorized by the General Manager on approval
from the CEO.
At Element 7, all “events” are considered “Notifiable Incidents” and they must be
reported using the “Incident Report”, as shown below.
•The injured person or best witness must inform the area supervisor of the
incident as soon as possible.
•The injured person must complete the Incident Report as soon as possible,
within 24 hours if possible. A witness or supervisor may fill out the injury
report on behalf of the injured person, if the injured person is unable. This
ELEMENT 7: SAFETY PLAN
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form will automatically be submitted to the injured person’s supervisor, the
Human Resources office, and the CEO’s office.
•Initially, investigations will be completed by the injured employee’s
supervisor and Element 7’s HR Team (Taylor Munoz). Further investigation
may be conducted by a 3rd party HR resource with OSHA expertise.
•Taylor Munoz (Head of HR) and Robert DiVito (CEO) will close all Incident
Reports as required with corrective action circulated to all Managers within
the business. If required, Element 7’s Employee Handbook will be updated
to correct any systems, policies, or procedures.
Risk Assessments
Although Element 7 facilities are thoughtfully and deliberately designed to pose little
to no risk or threat to employees, customers and patients, a Safety Plan is designed
to ensure that any unforeseen risks are mitigated and or prevented so that employees,
customers, patients and the neighboring community remains safe.
In order to provide valuable insight to our employees, our plan includes a Risk
Assessment module that is included in the Site Safety Plan and training. Our Risk
Assessment module utilizes a matrix to calibrate identified risks that enable employees
to make better informed decisions that eliminate or reduce their exposure to the
identified risk until it can be properly addressed by a contracted professional.
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Enforcement of Policies and Procedures
Employees will be subject to disciplinary action for violations of safety rules. Managers
are responsible for the enforcement of safety rules. Employees will be afforded
instructive counselling and/or training to assure a clear understanding of the infraction
and the proper conduct under organizational guidelines. All training will be
documented on a safety rule violation notice form and placed in the employee’s
personnel file. Nothing in this policy or this safety program will preclude management
from terminating an employee for a safety violation. This is not a progressive discipline
system and any safety violation may lead to an employee’s termination without prior
instruction or warning.
Management reserves the right to impose any of the following disciplinary actions it
deems appropriate:
•Verbal warning with documentation in personnel file.
•Written warning outlining nature of offense and necessary corrective action with
documentation in personnel file.
•Termination.
Management will be subject to the above disciplinary action for the following reasons:
•Repeated safety rule violations by employees under their supervision.
•Failure to provide adequate training prior to job assignment.
•Failure to report accidents and provide medical attention to employees injured
at work.
•Failure to control unsafe conditions or work practices.
•Failure to maintain good housekeeping standards and cleanliness in their
departments.
4.3 Evacuation Routes
Having an evacuation route and plan in place is essential in any business – within the
cannabis industry, given the additional safety and security issues that this business
poses, Element 7 implements the following procedures beyond having a planned
evacuation route:
1.All staff are trained annually on evacuation routes and procedures for a
multitude of scenarios covered in this section of the application.
2.Exit route maps are clearly posted within the dispensary and facility.
3.A trained Safety Coordinator (local hire to be appointed) is the primary contact
for all safety-related matters and will be responsible with the General Manager
and Shift Managers for any evacuation procedures.
4.All customers and patients will be given clear instructions in the event of any
evacuation procedures.
ELEMENT 7: SAFETY PLAN
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The following ingress and egress routes have been developed for the Element 7
Fresno facility (refer to Tab 7 for full set of 11x17” plans):
In addition, in the event of a complete evacuation from the building, a designated zone
has been identified at the site for staff, customers, and patients to congregate. This
area has been identified to allow for witnesses to remain at the site, while allowing for
local law enforcement, ambulances, and fire safety officials to access the premises
unobstructed (refer to image below).
4.4 Location of Portable Fire Extinguishers and Fire Suppression Equipment
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.
Element 7 will ensure that all portable fire extinguishers are located where they are
readily visible and accessible at all times. Locations will include:
-Retail sales area
-Secured storage area
-Hallway near restroom
-Rear of the facility near emergency exit
ELEMENT 7: SAFETY PLAN
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Proper maintenance of the installed portable fire extinguishers is the responsibility of
the General Manager and Safety Coordinator and will be included in their monthly
checklist for the operations of the site. Fire extinguishers shall be of the proper UL
Class A and Class B:C rating and size for the areas to be covered per OSHA
guidelines.
Fire extinguishers shall be of the proper UL Class A and Class B:C rating and size for
the areas to be covered per OSHA guidelines. In addition, a range of other fire safety
equipment will be installed at the facility which shall include:
-Fire System Control Panel that provides an audible and visual alarm when
fire is detected. This Control Panel is connected to the Automatic Fire Detection
devices installed on the ceiling of the facility.
-Automatic Fire Detection Devices sense the smoke, heat, or flames from a
fire and initiate an alarm. All automatic detection equipment must be approved,
installed and maintained in accordance with 29 CFR 1910.164.
-Hazard Warning and Caution Signs that are designed to warn of any risks –
signage will also direct persons to exits and fire extinguisher systems.
-Knox Box so that the Fire Department can easily access the facility in the event
of a fire.
Exits and Exit Signage
The number of exits at the Facility shall be in accordance with Table 1006.2.1 and
Table 1006.3.2 (2) and Section 1017.2 of the International Fire Code (IFC).
4.5 Procedures and Training for Fire and Medical Emergencies
We have established the following policies on training all workers with respect to
workplace security. All workers, including managers and supervisors, shall have
training and instruction on general and job-specific workplace security practices.
Training and instruction shall be provided when the IIP Program (Injury and Illness
Prevention) for Workplace Security is first established and periodically thereafter.
Training shall also be provided to all new workers and to other workers for whom
training has not previously been provided and to all workers, supervisors and
managers given new job assignments for which specific workplace security training
for that job assignment has not previously been provided. Additional training and
ELEMENT 7: SAFETY PLAN
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instruction will be provided to all personnel whenever the employer is made aware of
new or previously unrecognized security hazards.
General workplace security training and instruction includes, but is not limited to, the
following:
1.Explanation of the IIP Program for Workplace Security including measures for
reporting any violent acts or threats of violence.
2.Recognition of workplace security hazards including the risk factors associated
with the three types of workplace violence.
3.Measures to prevent workplace violence, including procedures for reporting
workplace security hazards or threats to managers and supervisors.
4.Ways to defuse hostile or threatening situations.
5.Measures to summon others for assistance.
6.Worker routes of escape.
7.Notification of law enforcement authorities when a criminal act may have
occurred.
8.Emergency medical care provided in the event of any violent act upon a worker;
and
9.Post-event trauma counseling for those workers desiring such assistance.
In addition, we provide specific instructions to all workers regarding workplace security
hazards unique to their job assignment, to the extent that such information was not
already covered in other training.
Security and Emergency Preparedness Training
Supervisors, managers, and employees will also be required to complete Security and
Emergency Preparedness training based on Federal Emergency Management
Agency guidelines and courses. This includes:
•Natural hazards: floods, hurricanes, tornadoes, and earthquakes
•Health hazards
•Cybersecurity, power outages and equipment failure
•Emergency alerts and the Integrated Public Alert and Warning Systems
•Active Shooter, robbery, burglary, transportation incidents and workplace
violence
•Attacks in Public Places
•Terrorism, bomb threats and suspicious packages
•Ensuring Building Security: evacuation, sheltering and lockdown
•Severe Weather
•Recovering from Disaster
•Loss Prevention
•First Aid and CPR
ELEMENT 7: SAFETY PLAN
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Employee Safety and Security Training and Resources
Our supervisors, managers and employees will be required to complete safety training
that covers OSHA requirements, Sexual Harassment and Workplace Violence,
Emergency Preparedness and Safety and Security Policies and Procedures.
In order for our Company to maintain the safety and security of our employees, we will
perform security and risk assessments at various stages of build-out and
implementation, and on-going assessments while in operation, to identify workplace
security issues. The fact that the cannabis industry is unable to access traditional
banking services, high amounts of cash on-site and highly valuable items, such as
cannabis products, may increase the risk of violence related to diversion, theft and
other related criminal activity. Although our security plan includes state-of-the art
security systems, devices and professional, contracted security officers, we will have
all facility supervisors and employees complete Worker Safety and Health training
modeled after Cal/OSHA’s Cannabis Industry Health and Safety Program.
Training will cover:
•Electrical hazards
•Hazard communication
•Injury and illness prevention
•Personal protective equipment
•Point of operation hazards
•Repetitive motion injuries
•Slips, trips, falls and use of ladders
•Sanitation and pest control
•Workplace violence
•Sexual harassment
•Discrimination
•Worker’s Rights
•Employer’s Rights
•Reporting and Resources
Cannabis Specific, In-Depth Security Training
We will contract a security professional to provide security and emergency
preparedness training based on FEMA Emergency Management Agency guidelines
that includes active shooter, emergency preparedness, burglary and robbery, bomb
threats, cybersecurity threats and other potential security and safety threats that
employees may encounter while on the job. Our contracted security professional will
also train employees on ways to identify potential risks to workplace security, describe
measures for improving workplace security and how to determine actions to take in
response to a safety or security situation (e.g., burglary, armed hold-up, stroke and
heart attack, loss of power). We also require, and provide, training refresher courses
which will occur on an annual, ongoing basis for all employees. Refresher training
courses will consist of a minimum of 32 (paid) hours annually, for security and safety
training.
Our Chief of Security will also be providing, and managing, training on internal safety
and security policies and procedures that have been developed with our Chief of
Compliance. Facilities may have unique safety and security issues and our Chiefs of
ELEMENT 7: SAFETY PLAN
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Security and Compliance will work on developing policies and procedures that address
these unique issues. Internal Security and Safety policies and procedures include:
•Security Surveillance Systems
•Equipment: inspections, maintenance and reporting
•Alarm Systems: inspections, maintenance, monitoring, reporting
•Duress
•Panic
•Burglary
•After-Hours
•Motion Detectors
•Glass Break Detectors
•Lighting: inspections, maintenance, monitoring, reporting
•Facility Lighting
•Emergency Lighting
•Motion Detection Lights
•Cybersecurity
•Employee and Customer WIFI, Mobile Device Use Policies, Firewalls
and VPNs
•Product and Currency Handling and Storage
•Shipments and Deliveries within an enclosed space
•Logs, Data Management and Reporting
•Financial Plan
•Receipts
•Managing Cash on Hand
•Currency Pick Up
•Reporting
•Limited and Restricted Access Areas and Permissions
•Keys, Electronic Access Cards and Company Issued IDs
•Contracted Licensed Security Officers
•Bag Checks
•Clocking-In and Clocking-Out
•Roving Inspections
•Safety and Security Training Requirements
Situational Training
Staff are trained to deal with, and manage, a range of workplace scenarios – having
staff adequately trained allows for rapid response, resolution, and risk minimization.
Emergencies
The Company has outlined steps that supervisors, managers, and employees should
take in the event of certain emergency situations.
Fire
•Call 911 immediately if fire is uncontrollable.
•Use fire extinguisher to put out smaller fires.
•Evacuate the building immediately and allow the fire department full access to
the facility.
•Have staff and witnesses fill out incident reports.
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•Assist in clean up after fire has been extinguished properly. Management is to
secure product in the safe if available.
Earthquake
•All employees find a safe spot during the event and exit store in calm fashion if
possible.
•Manager on duty is to lock up doors and shut off gas line to business if
accessible.
•Manager is to account for all employees and vendors after the event is over
and facilitate cleaning up the business if needed. No employee is to leave
without contacting the manager first and receiving authorization to do so.
•Manager is to call the owner and inform him of any damage. Owner is to call
Insurance company in the event of damage and facilitate the repairs.
Medical
Any type of serious life-threatening medical emergency, such as seizures, asthma
attacks, epilepsy, diabetic episodes, etc. will be handled by medical professionals and
emergency responders will be called immediately via 9-1-1. Any type of accident
wherein bodily fluids is present, only management is to deal with such fluids using
proper cleaning supplies and gloves. If in abundance, use of professional cleaning
service may be deemed necessary. Business will have a stocked first-aid kit in case
of minor injuries at work. Employees will always have access to this kit.
Active Shooter
Employees will receive Active Shooter training from our contracted Security
Professional.
Injury or Accident
Employees will be instructed to remain calm and assess the emergency
situation. They will be trained to assess whether the injured individual requires need
medical attention. Injured individuals who refuse medical attention will be asked to
complete and sign an incident report and refusal to receive medical attention waiver.
Basic first-aid procedures can be used on employees in the event of a minor injury.
Hazardous Materials
Hazardous materials (hazmat) are substances or materials that the U.S. Department
of Transportation (DOT) has determined are capable of posing an unreasonable risk
to health, safety and property when transported in commerce. The Hazardous
Materials Regulations (HMR) are a set of rules established by The Pipeline and
Hazardous Materials Safety Administration (PHMSA) to ensure hazmat is packaged
and handled safely during transport, storage, and handling.
Hazardous Material Security training is designed to introduce hazmat employees to
security risks associated with the hazmat transportation process and ways to enhance
security, as well as how to spot a possible security threat and respond appropriately.
Training will help employees meet the security awareness training requirement (49
CFR 172.704(a)(4)). Training will enable employees to determine if a material is
hazardous, recognize the hazard classes and divisions used to identify hazardous
materials, recall what makes a material hazardous substance, waste, marine pollutant,
ELEMENT 7: SAFETY PLAN
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or elevated temperature material. All employees will be able to communicate a
material’s hazards through the use of shipping papers, markings, labels, and placards.
All staff are trained in two (2) core Hazmat areas of concern, which training is included
in staff on-boarding training and the annual training refresher program:
•Importance of Hazmat Security
•Reducing the Hazmat Risk
Security and Burglary / Robbery Protocols
The overriding consideration in dealing with a robbery is to reduce the possibility of
any injury by ensuring staff are trained and prepared on how to deal with such
occurrence.
•Use of CODE A practices – that can be used as a prompt to staff as to how to
handle a robbery. CODE A is an acronym and can be easily memorized:
o Stay Calm – Remain calm and in control at all times.
o Obey – Do not resist the robber. Don’t be a hero. Do not take action that
would jeopardize the safety of personnel or customers. In most
situations’ robbers don’t harm people that are cooperating and calm. Try
to inform the robbers of any surprises and inform the robber if you need
to reach for anything such as a key. Follow the robber’s commands but
do not volunteer assistance or information.
o Describe the Situation – Train staff to be observant and plan to be a
good witness. Count the number of robbers, note their physical
characteristics and distinguishing features, behavior, speech patterns,
nicknames used, and other relevant details. Ensure that witnesses do
not discuss or collaborate details until law enforcement arrives and takes
witness statements. Have staff record their own version of events as
soon as possible in writing after an incident.
o Maintain Evidence – Train staff to maintain and safeguard evidence.
Do not let anyone touch counters, door handles, or any other surface
before law enforcement arrives.
o Alarm – Activate the panic / duress buttons as quickly, safely, and
discreetly as possible. Call the police. All actions must only be done
when it is safe to do so.
Post-Robbery Procedures
By following a known set of procedures after a robbery, employees will be in a better
position to assist law enforcement in apprehending robbers and protecting the
community from harm. Employees will be assigned set responsibilities for who will do
what after a robbery takes place – who will safeguard evidence, who will call police,
who will care for anyone injured, who will identify the getaway vehicle.
The following policies are in place:
•Do not chase after robbers. The robbers may shoot at, or attack, and pursuers.
Responding law enforcement may confuse staff for robbers.
•Secure the doors so that robbers cannot re-enter the premises. Stop all
operations immediately. Do not let anyone enter except emergency and law
enforcement personnel. Place a sign on the door saying “Premises are
ELEMENT 7: SAFETY PLAN
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Temporarily Closed Due to an Emergency” so that more customers do not
attempt to enter.
•Call the police immediately on 911. Staff will be briefed to report if anyone is
injured so that an ambulance may be dispatched if necessary. Report all details
to law enforcement including descriptions and times.
•Care for any injured persons.
•Write down all details of what happened and inform staff to do so – witness
description forms are kept behind all sales counters.
•Preserve potential evidence by protecting the crime scene and keeping people
out of the area where the crime took place. Do not touch anything.
•Ask witnesses to stay until law enforcement arrives.
•Contact Element 7 Chief of Security and CEO immediately to report the situation.
•Do not discuss the crime with outsiders or the media – refer all questions to the
police and the Element 7 CEO.
•Assist the investigating officers in every way possible including access to CCTV
footage, and witness description forms.
•Manage trauma situations through paid leave, counselling, or any other means
necessary.
Summary
Safety and security are two of the most important factors in the management and
operations of Element 7. The policies, procedures, and systems that we have created
are in place to drive staff and customer safety. In addition, these policies:
● Demonstrate to employees that safety performance and business performance
are compatible;
● Clearly state the company's safety beliefs, principles, objectives, strategies and
processes to build buy-in through all levels of the company;
● Outline employer and employee accountability and responsibility for workplace
health and safety; and
● Are designed to comply with the Occupational Health and Safety Act; and
Element 7 promotes the wellness and welfare of the company’s workforce and, as
workplace safety is paramount, we believe that with the proper education and training
of management and staff on safety procedures as outlined within the OSHA
framework, we provide the highest standard of safety for our cannabis facilities and
operations, and the communities they serve.
November 20, 2020
City of Fresno, CA
RE: Element 7 Cannabis Application: City of Fresno
To Whom It May Concern,
On behalf of my client, Element 7 LLC ["the Owners"], I am writing to you with regards to their
application for a commercial cannabis permit in the City of Fresno.
The Owners will occupy their own premises at 4686 E. Kings Canyon Road, Fresno.
The Owners will use the facility for retail sale of marijuana. The products stored will vary and
can include:
•Cannabis Flower
•Manufactured Cannabis Products
•Other packaged and sealed cannabis products
The proposed storage methods do not include storing in "high piled storage" array, as defined by
California Fire Code.
The building will be classified as B (offices), F-1 (manufacturing) and S-1
(storage) occupancy, as defined by CBC (California Building Code) Sections 302-311.
While the description for the required Safety and Security Plan for the application is not entirely
specific, the majority of the concerns for Fire Department review in these facilities are related
to Hazardous Materials, the use of volatiles, and general fire safety concerns of which I am very
familiar having worked in Fire Safety in California for over 30 years. Based on the information
provided by the owners, there is no proposed storage or use of volatiles (flammable
liquids) on site, or extraction operations. The Owners agree that they will submit a
fire code compliance/safety report addressing fire protection and hazardous materials
requirements as part of their future building and fire plan submittals to the City
Fire and Building Departments. Additionally, any building plans, including exit plans,
Department
hazard & alarm plans, architectural plans, accessibility plans etc. will be submitted by the
architect of record as part of Fire and Building submittal package. The
Owners agree to provide plans showing compliance with the applicable edition of the
California Fire Code and as a consultant, I will remain involved in all aspects of these submissions
and building works.
Larry Frogoso, Fire Safety Advisor
Save Lives. Save Property.
FROGOSO FIRE SAFETY
ELEMENT 7: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
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2.SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
Introduction
Element 7 will manage Labor and Employment from multiple angles - a dedicated HR
Specialist hired within the Element 7 head office; the General Manager at the Facility,
and a third party, HR Specialist consultant that will advise the business on aspects of
employment law, HR principles and other labor related issues (HR Bizz Agency).
In addition to these specialists that sit within the business, we have a close working
relationship with UFCW and have partnered with the California State Economic
Development Department (EDD), Latinos 4 Cannabis, and NDICA (National Diversity
and Inclusion Cannabis Alliance) on job training programs and job fairs in Los Angeles
and Fresno - we will bring these same opportunities and events to Fresno again in
2021 as we prepare to start actively recruiting talent for our business in the City.
Staff training sits at the heart of our business. Having an effective staff training program
in place is critical for several reasons. Firstly, cannabis consumers look to in-store staff
for purchase decisions more than any media channel, form of advertising or any
industry news. Secondly, having an effective staff training program in place is critical
for compliant and legal operations. Finally, staff training is critical to personal
development, hiring and retaining our best talent. Element 7 has partnered with Chloe
Villano as a Strategic Advisor and has Marisela Flores-Hamm, founder of 420 College
in Fresno, as a Community Board Member. Chloe is the President and Founder of
Clover Leaf University, the first cannabis learning institute and academy in North
America to receive University Accreditation from a Department of Higher Education’s
Private Occupational School Board. Clover Leaf University offers more than 25 stand-
alone course certifications that Element 7 will continue to leverage in its staff training.
ELEMENT 7: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
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2.1 Commitment to Providing a Living Wage
2.2 Employee Benefits
Employees, given the nature of the industry, should be paid more than the industry
standard. This is also important for attracting and retaining key talent - we want to
incentivize good work and compensate outstanding practices. We know that in order
to retain good talent as an employer we need to offer more in the form of benefits such
as health insurance, paid vacations, paid sick days, dental and the right to take leave
for medical or family reasons etc. All workers, regardless of gender or ethnic
background, will be paid the same rates with zero deviation.
Estimated Salary Ranges are:
•General Manager:
•Shift Managers:
•Retail Staff:
ELEMENT 7: SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
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Stock Option Plan
Stock options are a means to both attract good talent and keep those employees
invested in the company over time – all full time employees with 12 months of
continuous service will be issued stock options with Element 7 Fresno. When we offer
employees stock options, we will do so through a special contract called a Stock Option
Agreement. Such an option, once granted to the employee, gives the employee the
opportunity to benefit from increases in the company’s share value by granting the right
to acquire shares at a future point in time at a price equal to the fair market value of
such shares at the time of the grant. The option agreement dictates all the terms of the
offer - including vesting schedule, time limits for exercise once vested and any other
special conditions.
Retirement Benefits: 401K
Our employee benefits package includes a standard 401K contribution commencing
on the 13th month of employment.
Employee and Health Benefits
Element 7 will be offering the following Employee and Health Benefits to its staff, which
shall include (on top of their wages and salaries):
•Medical, prescription, vision and dental health plan
•Disability Income Protection Plan
•Professional Advancement, education and training benefits
•Labor Union Representation
•Other Benefits
Part-time employees who have been with the Company at least six (6) months will
have the option to join the Company’s insurance plans but will have to pay for 50% of
their insurance premiums out-of-pocket. Employees working more than 30 hours a
week will be considered full-time and will receive 100% of their insurance premiums
paid for by Element 7.
Medical, prescription, vision and dental health plans include:
-Pediatric Services - Preventive and Wellness Services
-Behavioral Healthcare - Chronic Disease Management
-Dental and Oral Care - Ambulatory Patient Services
-Physical Therapy - Emergency Services
-Prescription Drug Coverage - Hospitalization
-Vision - Primary Care
-Durable Medical Devices - Telemedicine
-Maternity and Infant Care - Laboratory tests & screenings
Element 7 will also provide life and disability insurance coverage for employees. Term
Life and Accidental Death and Dismemberment (AD&D) insurance will provide, at no
cost, a benefit of Long-term disability will pay employees 60% of pre-disability
earnings if they become disabled from injury or sickness.
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Other perks offered to employees will include:
•Refreshments and meals within the Staff Room / Kitchenette
•An ongoing formalized staff training program
•Medical and ‘sick’ leave (up to 20 days a year for full-time staff)
•Paid Vacation Leave (10 days a year for full-time staff)
•Family-friendly shifts
•Allowances for continued education opportunities
•20% staff discount for purchases at Element 7 stores
We also recognize the importance of maintaining fitness and health and will be offering
full-time employees a grant towards a fitness or health club membership – we
will discuss programs with fitness and health clubs surrounding Element 7.
2.3 Opportunities and Compensation for Continuing Education and Training
Element 7 is committed to the advancement and wellbeing of our employees, and
providing continuing education is a central component of how we build our world class
workforce. We are deeply interested in enabling our staff to overcome existing barriers,
find meaningful work with us and build their career with Element 7. Employees will
receive training on internal policies and procedures, industry best practices, safety and
security, human resource development, employee rights, and other mandatory training
required by federal and state regulation. We will train all employees to effectively and
efficiently fulfill their duties and to exceed the expectations of their positions, including
a thorough understanding of all applicable Federal, State, and local regulations relating
to commercial cannabis operations.
Classroom Training Program
Qualified candidates will be hired on a three-month probationary status. During this
period, they will participate in a rigorous training process, and be evaluated for
suitability in a restricted-access medical environment. Training will include the
employee handbook, other reading materials, lectures by qualified professionals,
hands-on training and quizzes. According to BDS Analytics 2017 report 'Bud-tenders'
in the industry received, on average, a total of 16 hours of training before commencing
employment. Training will be conducted strategically to ensure that all employees on-
board effectively with a proven proficiency to increase their knowledge base.
Element 7 employees will have received over 80 hours of training, which is five (5)
times the industry average prior to stepping foot on the floor. The following areas will
be covered during 80 hours of training:
•Legal training will cover all City of Fresno, State and Federal laws relating to
cannabis, and especially those related to Commercial cannabis. Other topics
will include the rules and regulations of the facility, sexual harassment training,
effective interaction with law enforcement personnel, and the rights and
responsibilities of Commercial cannabis consumers (4 hours)
•Product offerings (12 hours)
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•Medical training will include disabled rights and sensitivity, how to identify and
respond to a medical emergency, and the proper uses and benefits of
Commercial cannabis (8 hours)
•Safety training, in addition to its focus on safety, will include warning signs of
possible diversion to the illegal market, lock and alarm procedures, perimeter
and entrance control, robbery response techniques, conflict resolution
techniques and diversion detection techniques (4 hours)
•Element 7 business model and Customer Service Training (4 hours)
•Regulatory compliance (the applicability of Federal and State regulations to the
employees’ responsibilities) (4 hours)
•Training on Standard Operating Procedures (SOPs) (12 hours)
•Prevention of Diversion of Commercial cannabis (8 hours)
•Security procedures (16 hours)
•Safety procedures (8 hours)
Training will be conducted by Element 7 in conjunction with Clover Leaf University
(online training programs) and the Cannabis Training Institute (class-room training
programs).
Advanced Training Program (BudMaster)
‘Budtenders’ working at Element 7 will be allowed to apply to undertake an Advanced
Training Program annually which would allow them to hold the title of 'BudMaster' at
Element 7. The Advanced Training Program is adopted from LA Grants, a supplier of
advanced certified training for the industry. The Advanced Training Program includes
the following sections:
•Cannabis as Medicine
•Principles of Cannabinoid Therapy
•Use of Cannabis for Cardiovascular
Disease
•Use of Cannabis for Respiratory
Patients
•Use of Cannabis for Gastrointestinal
Disease
•Use of Cannabis for Hematology /
Oncology
•Use of Cannabis for Endocrine
Issues
•Use of Cannabis for Gynecologic
Issues
•Use of Cannabis for Musculoskeletal
Issues
•Use of Cannabis for Neurological
Issues
•Use of Cannabis for Dermatological
Issues
•Use of Cannabis for Psychiatric
Issues
•Cannabis Law
•Sales Skills 101
•Cannabis Potency, Absorption
Rates & Product Effects
•Managing Impaired Patients
•Final Examination and Certification
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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Americans for Safe Access Training
All employees must complete the Patient Focused Certification Program given by
Americans for Safe Access which shall be held annually.
Sponsored Continued Professional Advancement
Employees that have been employed by at least 12 months will be able to qualify for
Sponsored Continued Professional Advancement (fully paid for by Element 7).
Education and training are a significant component to personal advancement and
success. Employees who desire to complete certifications, obtain degrees, or further
specialized skills through training can apply to receive funding to cover the costs of
such programs. All team members who are enrolled in classes that can promote their
knowledge of any and all aspects of the cannabis industry (human resources,
business, law, security, engineering, marketing and advertising, agriculture, etc.) will
be provided with an educational stipend of annually for external relevant
programs.
Every time an employee completes mandatory or voluntary training, they will be
eligible for a per hour wage increase, with training wage increases capped
at annually. As an example, by completing 4 training programs in the first
year of employment, employees will be able to increase their starting salary from
per hour.
Training Pass Score Requirements
Staff training for regulation and compliance will be implemented annually and all staff
must PASS required mandatory tests each year regarding the handling, treatment and
processing of cannabis products. Specific Compliance procedures will be implemented
to ensure that the Commercial Cannabis operation meets any directives under Fresno
and the Attorney General’s Guidelines for the Security and Non-Diversion of Cannabis.
Standard operating procedures as well as written health & safety information made
available to all employees. A key part of the staff training program is understanding the
potency, absorption rates and effects of cannabis, and dealing with impaired patients.
Supply of these documents will be reviewed for content and accuracy annually. The
documents will include emergency contact information. All staff will have detailed
knowledge and comprehension of the Standard Operating Procedures.
2.4 Recruitment of Individuals under the FMC Social Policy 9-3316(b)
We understand that economic, ethnic, gender, and racial equality requires social
change, progress, and action. We look to contribute to societal equality through our
hiring practices, retention practices, and treatment of employees. These practices
serve to further facilitate community bonding our employees, customers, neighbors,
and the entire local community. We are committed to ensuring that at least 1/3rd of our
workforce and total annual work hours includes individuals who meets one of the
following:
(i)Annual family income below 80% AMI;
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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(ii)Convicted for a cannabis related crime that could have been prosecuted
as a misdemeanour or citation under current State law;
(iii)Lived in a low to moderate income census tract in the city for a minimum
of three (3) years;
(iv) Veteran;
(v)Former foster home youth who was in foster care as a minor; or
(vi)Receiving public assistance.
We understand that if selected, we are required to provide the city with ongoing proof
of compliance of this requirement. Element 7 will employ a diverse workforce and act
as an equal opportunity employer in California. The company will strive to be an
inclusive company made up of talented and diverse individuals from many ethnicities
and cultures. The Element 7 executive team is committed to building a company with
fair treatment, access, opportunity, and advancement for people of all demographic
backgrounds and life experiences. Element 7’s primary partners for advancing
community justice and services is the National Diversity and Inclusion Cannabis
Alliance (NDICA) and Latinos 4 Cannabis (L4C).
Social Policy Recruitment and Hiring Initiatives
Specific initiatives that Element 7 commits to in Fresno will include:
1.Annual Job Fairs conducted in partnership with NDICA, L4C, and EDD in the
City of Fresno – Element 7 held a job fair in Fresno in 2019 at its Expungement
Clinic.
2.Advertisements in the Fresno Bee and participation in local job fairs and
workforce development initiatives – e.g., Annual Fresno Job Fair operated by
Hire Live.
3.Development of a Community Advisory Board that will be charged with
ensuring Element 7 meets its local commitments for community projects and
funding.
4.Preferred vendor and contractor opportunities for local minority-owned
businesses in Fresno.
5.Media buys and placements with local Latino and Hispanic media channels to
target potential employees through specific publications that reach this
audience – e.g., Vida en el Valle which is published weekly in Fresno.
6.Corporate donations to local minority-focused non-profit organizations with
outreach initiatives to their members and partners for job opportunities.
7.Financial support for NDICA and Latinos 4 Cannabis to pursue their own
outreach and community development programs in Fresno.
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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Local Preference Hiring Initiatives
Our aim is to hire locally with 75% of the positions to be filled with local talent. We
have allocated resources, tools and leaders to ensure that underrepresented
communities are included in our hiring, recruiting and training efforts and processes.
In establishing a Community Advisory Board filled with local minority business, faith-
based, and community leaders, we are able to monitor, regulate and develop effective
practices, policies and programs that promote diversity. Element 7 has a strong track
record for meeting local hiring commitments – in Fort Bragg we had a similar
target and hired 100% of the positions with local talent.
Element 7 Job Fair with EDD and NDICA and Local Employees at Element 7 Fort Bragg
2.5 Locally Managed Enterprise
Element 7 Fresno is a locally managed enterprise with ownership positions held
by over 15 long-term Fresno City and Fresno County resident local owners (refer
to section 1.1 of the application for a list of all owners). In addition, Element 7 commits
to ensuring that its local General Manager and Shift Managers will be hired locally from
Fresno City. We believe that a business can only be ‘truly local’ if it actively integrates
itself with the Fresno community beyond our hiring practices. Element 7 has proactively
engaged immediate and surrounding business neighbors as part of its community
outreach program and site management plan over the past 6 months since we
identified and entered into a lease for property in Fresno at 4686 E. Kings Canyon
Road. As part of our outreach plans, Element 7 delivered information packets to over
30 neighbors, businesses, and key influencers in the City of Fresno (see images
below).
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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2.6 Number of Employees and Respective Roles
Initially, we anticipate that the Element 7 Fresno will be comprised of 1 General
Manager, 2 Retail Shift Managers, 1 Inventory Manager, and 10-12 Dispensary
Technicians / Budtenders (14 - 16 new hires). This team is supported by the Element
7 head office teams based in LA and SF. An organizational chart has been included
below for clarity on reporting structures – the chart shows key individuals that assist
the local business from head office, and the local roles and reporting structure.
Job Descriptions
General Manager / Facility Manager – The General Manager / Facility Manager (GM)
is responsible for leading a team of approximately 16 employees, including 3 managers
(Shift Managers and Inventory Control Manager), and is accountable for all aspects of
managing a single retail cannabis store. The General Manager will report to the CEO
of Element 7 (Robert DiVito) and Element 7’s Chief Retail Officer (Mark Malatesta).
They will help train, develop, and hire new employees as well as continuing to improve
standard operating procedures. This position requires attention to detail, a passion for
process, a drive for results, and the ability to lead and influence in the high-regulated
and compliance-focused cannabis industry. General Manager Job Responsibilities
include:
•Builds company image by collaborating with customers, government,
community organizations, and employees; and enforcing ethical business
practices.
•Increases management’s effectiveness by recruiting, selecting, orienting,
training, coaching, counseling, and disciplining managers; communicating
values, strategies, and objectives
•Coordinates efforts by establishing procurement, production, marketing, field,
and technical services policies and practices; and coordinating actions with
corporate staff.
•Maintains quality service by establishing and enforcing organization standards.
•Maintains professional and technical knowledge by attending educational
workshops; reviewing professional publications; establishing personal
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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networks; bench marking state-of-the-art practices; and participating in
professional societies.
•Forecasts and adjusts payroll to maximize productivity, achieve sales and
payroll goals, and complete workload.
•Ensures compliance with MAUCRSA, local laws and regulations centered
around cannabis ordinances.
•Protects company assets and minimize loss by ensuring all store standards and
operating procedures are met, including workplace safety, inventory control,
and loss prevention.
•Oversees the maintenance of the facility.
•Performs HR duties including: Employee Appraisals, Discipline Notices, On
Boarding paperwork, PTO compliance.
•Conducts weekly manager meetings and monthly all staff meetings.
•Oversees management team schedule.
Shift Managers – Shift Managers will report to the General Manager. They will help
train, develop, and hire new employees as well as continuing to improve standard
operating procedures. This position requires attention to detail, a passion for process,
a drive for results, and the ability to lead and influence in the high-regulated and
compliance-focused cannabis industry. Shift Manager Job Responsibilities are similar
to that of the General Manager and such persons will effectively ‘manage’ the business
at any time that the General Manager is not on site, and will include:
•Day to day retail operations including staff check-ins, product briefings,
merchandizing displays, interaction with customers, vendors, and security.
•Builds company image by collaborating with customers, government,
community organizations, and employees; and enforcing ethical business
practices.
•Coordinates efforts by establishing procurement, production, marketing, field,
and technical services policies and practices; and coordinating actions with
corporate staff.
•Maintains quality service by establishing and enforcing organization standards.
•Maintains professional and technical knowledge by attending educational
workshops; reviewing professional publications; establishing personal
networks; bench marking state-of-the-art practices; and participating in
professional societies.
•Ensures compliance with MAUCRSA, local laws and regulations centered
around cannabis ordinances.
•Protects company assets and minimize loss by ensuring all store standards and
operating procedures are met, including workplace safety, inventory control,
and loss prevention.
•Oversees the maintenance of the facility.
Inventory Manager – Our Inventory Manager will bring unwavering professionalism
and meticulous accuracy to the position. The Inventory Manager will work closely with
management, maintain inventory levels for products on the sale floor, merchandise
displays, storage rooms, and consistently perform inventory audits. Additional
responsibilities include maintaining inventory storage software, ensuring the accuracy
of inventory records, and helping intake all deliveries. Successful inventory managers
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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should have excellent interpersonal communication skills, a firm grasp of basic
computer programs, and an ability to work both independently and in a team. Inventory
Manager Job Responsibilities:
•Controls full retail ordering and management process / suppliers / vendors.
•Tracking inventory maintenance.
•Controlling flows of product.
•Merchandising displays.
•Reporting to management on inventory issues and discrepancies.
•Training less experienced inventory workers.
•Aid in the roll out of new products.
•Support manager in any back of house duties.
•Addressing any problems, obstacles, or challenges.
•Stocking and maintaining inventory levels on the sales floor.
•Maintaining extensive knowledge of our product offerings, various consumption
methods, and cannabis in general.
•Follows assigned schedule and accurately reports time.
•Maintain a positive working environment.
Dispensary Technicians (BudTenders) – Dispensary Technicians (BudTenders)
ensure that all transactions and the implementation of other retail processes comply
with state and local laws and regulations and that service exceeds customer
expectations. BudTenders collaborate with the General Manager and Shift Managers
to develop and implement practices, policies, and strategies that support a
performance and results-driven culture. Job Responsibilities include:
•Ensures accuracy and compliance in all transactions.
•Performs the required duties to record all sales and inventory transactions in
accordance with state and local laws and regulations.
•Maintains established standards of presentation, customer service, and
compliance.
•Communicates the details of daily operations to the General Manager.
•Implements and oversees procedures related to opening and closing of the
retail store with the General Manager (specifically focused on retail floor).
•Stays informed and knowledgeable about state and local laws, regulations and
industry news.
•Performs inventory reconciliations daily, weekly, and as needed.
•Oversee the Retail Sales and Pick-Up orders as needed, ensuring prompt
delivery and quick order fulfillment.
Delivery Drivers – Delivery Drivers will initially be hired as Dispensary Technicians
and then trained on delivery procedures as the business stabilizes and the delivery
service is launched. We would envision some employees continuing to work across
both job roles in the future. Delivery Drivers MUST have a valid driver’s license and an
absolutely clean driving record. The Delivery Drivers will work off DUTCHIE, our
chosen delivery management and navigation software, in order to successfully
complete delivery orders. Delivery Drivers will be briefed on all incoming and outgoing
orders, proper addresses, and drop-off locations, product knowledge, delivery
efficiency, discreteness and safety. Delivery Drivers will be expected to exude
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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5.The Employer shall not present or portray the Union in a bad light to employees
or to the public.
6.The Employer may not engage in a lockout.
7.The union, and any employee it represents, will not engage in or encourage any
strikes, slowdowns, picketing, boycotts, work stoppages, any other economic
interference with the Employer’s business or other concerted activity.
A copy of our Labor Peace Agreement with UFCW is attached at the rear of this section
of the application.
2.8 Workforce Plan
In order to ensure the success of our hiring practices and goals, Element 7 will contact
local community-based organizations, work source centers, local job fairs, and other
such similar organizations to facilitate job outreach, development, and placement
services. Further, Element 7 will co-host events and career fairs that will allow
interested individuals to access about job opportunities and meet with Element 7 team
members one-on-one, and apply in-person for available positions, thereby gaining a
competitive edge for a coveted position at our company. These events and career fairs
will also aim to demonstrate to target populations how their existing skills and
experiences are translatable to legal cannabis businesses. Not only do these events
benefit Element 7 and other employers, but more so the candidates; the candidates
will have access to an abundance of employers that are passionate and determined to
create diverse workplaces, and to provide opportunities for individuals that would
otherwise not be included or highlighted.
We will partner with the City of Fresno and the other licensed commercial cannabis
businesses that are awarded a license to host a job fair that is specifically and heavily
promoted to Fresno residents. This event would provide many benefits including,
introducing the residents to the new cannabis community, creating job opportunities to
the locals, and bringing the industry, City officials and residents together for a common
goal to enhance the unity of the community.
When job vacancies for advanced positions are available, such positions will be posted
in the employee breakroom and distributed to employees via email. In furtherance of
our culture of loyalty, we will seek to internally promote our employees whenever
possible. Our employees can be best suited and qualified to move upward through the
company because of their specific knowledge and experience of our company culture,
operations, needs, potential, opportunities for growth, and how we can continue to be
an asset to the local community. To ensure that our employees are optimal options for
advanced position in the company we will provide them with training and education
opportunities, and mentorship programs.
After implementing internal promotion procedures, participating in events and career
fairs, and partnering with organizations, then Element 7 will post job openings through
our website, Indeed, Monster, Google, Hire-a-Hero, and other recruiting websites to
ensure wide distribution. Even with the wide online distribution of job openings our
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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As stated previously, Employees that have been employed by at least 12 months will
be able to qualify for Sponsored Continued Professional Advancement (fully paid for
by Element 7). Education and training are a significant component to personal
advancement and success. Employees who desire to complete certifications, obtain
degrees, or further specialized skills through training can apply to receive funding to
cover the costs of such programs. All team members who are enrolled in classes that
can promote their knowledge of any and all aspects of the cannabis industry (human
resources, business, law, security, engineering, marketing and advertising, agriculture,
etc.) will be provided with an educational stipend of annually for external
relevant programs.
Every time an employee completes mandatory or voluntary training, they will be
eligible for a per hour wage increase, with training wage increases capped
at annually. As an example, by completing 4 training programs in the first
year of employment, employees will be able to increase their starting salary from
$ per hour.
2.8.3 Commitment to Living Wages
2.9 Social Equity Business Incubation
The focal point of Element 7’s Social Equity Plan for Fresno is a 1,000 square foot
Local Equity Incubator Hub (E7 EQ HUB) that will be operated at the site as an active
Learning Center. This Local Equity Incubator Lab is focused on building community
identity, involvement, health, impact, and repair, through training, education and
opportunity for social equity applicants and employees wanting to build a career in
cannabis.
The E7 EQ HUB will incubate change-focused innovation by incubating one (1) local
entrepreneur to compliantly use the Hub to develop their own cannabis business within
a separate 1,000 square foot unit on site that is fully secure. A separate cannabis
processing / manufacturing, or distribution permit will be applied for with the City of
Fresno if Element 7 is approved for the retail storefront permit in furtherance of
establishing E7 EQ HUB.
The opportunity to become the entrepreneur incubated into the E7 EQ HUB will be
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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advertised through local industry trade press, newspapers, radio commercials, and in
partnership with the City and groups including NDICA and Latinos 4 Cannabis –
applicants will be selected on their merits and must be local residents living in Fresno
and qualify under the FMC Social Policy Section 9-3316(b).
The selected entrepreneur approved for this facility will receive rent-free use of the E7
EQ HUB for two (2) years to enable them to kick-start their business, access to a
formalized ‘mentor program’ within Element 7, preferred relationship access for
distribution across California, and the training required to ensure the business is a
success. This E7 EQ HUB will be equipped with:
-Security cameras and security systems that meet or exceed City and State
Regulations.
-Security Management by Element 7 under the full facility management agreement
by a licensed security firm.
-Full fire safety hardware and systems adopted by Element 7 for the retail
dispensary facility (i.e., sprinklers, extinguishers, and gas monitor system).
-Relevant SOP’s for manufacturing and processing operations, labor and
employment, security, safety, inventory tracking, and all other cannabis facility
SOP’s to manage the facility compliantly and legally.
-Small storage rooms for the entrepreneur or local business operating in the Lab
so that sensitive items and cannabis products can be compliantly stored.
-Full ‘Facilities Management’ oversight by Element 7 including janitorial services
and centralized utilities.
In addition, the local equity entrepreneur will have access to the Element 7 team for
R&D, consumer research, and industry trends; access to ‘experts’ within the Element
7 team including marketing, sales, and operations experts; and a facilitated training
program that meets the needs and requirements of these individuals and the business
they are developing.
Products manufactured and processed at this E7 EQ HUB, along with other brands
and products from social equity business owners and entrepreneurs in Fresno will be
featured in a special ‘Equity Grown’ merchandizing section in Element 7’s Fresno
dispensary, and eventually, in every licensed dispensary owned and operated by
Element 7 in the State of California.
The entrepreneur will run through a full two (2) year rent-free cycle at the E7 EQ HUB
before a new entrepreneur is chosen for successive placements within the Hub.
Local Equity at Element 7 is not about ‘tokenism’ or committing to a program because
ELEMENT 7: LABOR AND EMPLOYMENT PLAN
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local legislation forces us to – we take this opportunity seriously and are committed to
identifying and nurturing local cannabis entrepreneurs that can build a future for
themselves and their families through a sustainable and supported cannabis initiative.
As demonstrated by the expungement clinics we have now held in Fresno, Illinois (3
events held), Los Angeles, Long Beach, and by sponsoring the social equity bill that
was passed into legislation in the State of Michigan, Element 7 is a company committed
to change, diversity, and inclusion.
Summary
At Element 7 we aspire to create careers, not jobs. We will do this by recruiting, training,
retaining, and promoting great talent in our business. This not only creates a
competitive advantage but will ensure that we are seen to be continuously thinking and
acting locally.
We are proud of our active partnership with the UFCW and are looking to create a
unionized business in Fresno that continuously evolves and improves its labor
practices. We will do this by engaging with our employees, listening to them as they
voice their concerns, ideas, and opportunities for growth.
We believe that the E7 EQ HUB could be a model for other cities across California to
adopt in the future – proven cannabis operators partnering with aspiring cannabis
entrepreneurs to sustainably guide them into the industry where they can grow their
business and become a local success story. Ideas like this not only change individual
lives in a very meaningful and positive way – they also have the potential to
dramatically change and improve the industry we operate within.
We are excited about partnering with the City of Fresno in 2021 to bring these
programs to the local community to drive real and meaningful local equity and
employment opportunities.
Zoning Inquiry P20-04525
4686 East Kings Canyon Road
Page 2
December 4, 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 two cannabis retail businesses may be located in any one Council District.
If more than 14 are ever authorized by Council (more than two per Council District), they
shall be dispersed evenly by Council District.
The subject property is in Council District 5. There are currently no cannabis retail
businesses located in Council District 5. 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 559-621-8038 or at Marisela.Martinez@fresno.gov.
Cordially,
Marisela Martinez, Planner I
Development Services Division
Planning and Development Department