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HomeMy WebLinkAboutC-20-46 ABCanna RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-46 Submitted On: Dec 04, 2020 Applicant Lisa Bugrova lisa@questplanning.net Applicant (Entity) Name: ABCanna DBA: -- Physical Address: 1828 Mary Street City: Fresno State: CA Zip Code: 93721 Primary Contact Same as Above? No Primary Contact Name: Lisa Bugrova Primary Contact Title: Agent Primary Contact Address: Primary Contact City: San Luis Obispo Primary Contact State: Ca Primary Contact Zip Code: 93405 Primary Contact Phone: Primary Contact Email: lisa@questplanning.net HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: No Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Microbusiness (Non-Retail) Business Formation Documentation: Limited Liability Company Property Owner Name: Juan Molina Proposed Location Address: 1828 Mary Street City: Fresno State: Ca Zip Code:Property Owner Phone: Supporting Information Application Certification Owner Information 93727 Property Owner Email: -- Assessor's Parcel Number (APN): 46832104 Proposed Location Square Footage: 6426 List all fictitious business names the applicant is operating under including the address where each business is located: -- Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? No 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 Agent 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. Business Name: C-20-46 Application #: ABCanna CANNABIS BUSINESS PERMIT APPLICATION REVIEW - MICROBUSINESS Points Possible All or None Exceptional Good Acceptable Applicant Score Evaluation Notes (Explain each time points are deducted) SECTION 1: BUSINESS PLAN 300 Points Possible for Section 1 Resume: Resumes Provided for All Owners: Score 5 5 5 Resumes Provided in 2-page Format: Score 2 2 2 Education: (select highest academic level among ownership team, cannabis specific education separately) Cannabis specific education/training (accredited)2 2 0 High School Degree Reported: Score 4 4 0 education degrees not reported Bachelor's Degree Reported: Score 6 6 0 Master's Degree or Higher Reported: Score 8 8 0 Experience: (among ownership team, select one at highest level) Regulated Cannabis Microbusiness Ownership Experience CA 13 13 13 Regulated Cannabis Microbusiness Experience CA (management level or below): Score 10 10 - Other Retail Business Experience (cannabis or cult., distribution, manufacturing) Reported, More than 5 years: or 8 8 - Other Retail Business Experience (cannabis or cult., distribution, manufacturing) Reported, Less than 5 Years: Score 5 5 - 1.1 Sub-Total:30 20 Construction Cost Estimate: Construction Cost Estimate Provided: Score 8 8 6 4 4 Does not provide details or cost factors Construction Contingency Factor Included: Score 6 6 0 Does not provide All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 2 Does not provide details or cost factors Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Does not provide Operation and Maintenance Cost Estimates: Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 4 Does not provide details or cost factors All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 2 Does not provide details or cost factors Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 0 Does not provide Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Does not provide 1.2 Sub-Total:50 12 Proof of Capitalization Specific to one or more Owners: Score 5 5 0 No owner name on POC documents - Gene s corp. CaliMed only 1.1 Owner qualifications. Resumes are not to exceed two (2) pages per owner. (30 points possible) 1.2 A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs.(50 points possible) 1.3 Proof of capitalization in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets which can be verified by the City. (50 Points Possible) Criteria Narrative: Criteria Narrative: Proof of Capitalization Specific to Business Name/Address: Score 5 5 0 No business name or address on POC documents Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15 Capital of can cover costs of Certified Audited Financial Report Provided for one or more Owners: Score 5 5 0 Does not provide Score one of the following for a maximum 20 points: Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 20 Capital under CaliMed account - owned by Gene Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 - Capital consists of non-liquid assets (i.e. real property)8 8 - Capital consists of a mixture of liquid and non-liquid assets 15 15 - 1.3 Sub-Total:50 35 Three Years of Data Provided: Score 10 10 8 6 10 Provided three years, detailed Total Gross Revenue Estimates Provided:3 3 3 Revenue broken out by cultivation, distribution, and manufacturing Total Gross Revenue by Product Type (flower and manufactured) Identified:3 3 3 Revenue broken out by cultivation, distribution, and manufacturing Total Personnel Costs Provided:5 5 4 3 5 Line item broken out as payroll tax, salaries and wages, and worker's comp Total Property Rental or Purchase Costs Provided:2 2 0 Does not provide rent/lease or property ownership POC Total Utilities Costs Provided:2 2 2 Total Cannabis Product Purchase Expense Provided 2 2 2 Costs broken out - detailed All Contract Services Identified:2 2 2 Annual Net Revenue Identified:3 3 3 Annual Cost Escalators Identified: 4 4 3 2 2 Shows % changes on some line items from Y1-Y3, however does not provide explanation for changes Annual Estimated Sales Tax Payments to State Provided:2 2 2 Annual Estimated Sale Tax Payments to City of Fresno Provided:5 5 0 Line item shows a Annual Business Tax License and Cannabis Permit Fee Provided:2 2 2 Annual Net Income Provided:5 5 5 Scoring Guidance: full points for realistic figures for all three years. Dock points for severe miscalculations, unrealistic estimates, or providing less than the request three years. 1.4 Sub-Total:50 41 Hours of Operation Provided: Score 5 5 5 Hours of Operation Provided for all 7 days of the week: Score 3 3 3 Hours of Operation Provided for Holidays: Score 2 2 0 holidays not mentioned Opening and Closing Procedures Provided: Score 10 10 8 6 10 Scoring Guidance: full points for describing information in detail. Dock points for leaving information out or not providing enough detail. 1.4 Pro forma for at least three years of operation. 1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible) Criteria Narrative: Criteria Narrative: 1.5 Sub-Total:20 18 1.7 Fully describe the day-to-day operations if you are applying for DISTRIBUTION: i. Identify the number of delivery drivers, hours of delivery and vehicles to be used.5 5 5 ii. Describe the transportation security procedures.10 10 8 6 10 iii. Describe the how inventory will be received, processed, stored, and secured in the permitted premises.5 5 4 3 5 iv. Describe the quality control procedures designed to ensure all cannabis is properly packaged, labeled and tested.10 10 8 6 8 1.8 Fully describe the day-to-day operations for MANUFACTURING: i. Identify all cannabis products manufactured within the permitted premises.5 5 5 ii. Describe quality control procedures.10 10 8 6 10 iii. Describe inventory control procedures. 5 5 4 3 5 iv. Describe the extraction process, equipment and room in which extractions will be conducted.5 5 4 3 5 v. Provide detail as to whether the extraction equipment has been reviewed and certified by a Professional Engineer or Certified Industrial Hygienist. 5 5 5 vi. Describe the sanitation procedures.5 5 4 3 5 1.9 Fully describe the day-to-day operations for CULTIVATION: i. Identify location and procedures for receiving deliveries of seedlings and immature plants.5 5 4 3 5 ii.Describe the planned square footage/acreage of the cultivation. (10,000 sq ft or less is required for microbusiness. If not compliant score as zero)10 10 10 iii. The estimated number of pounds produced per harvest, and number of anticipated harvests per year. 5 5 5 iv. Describe whether the cultivation operation will use natural light, artificial light, or mixed light. 5 5 5 v. Identify how cultivation waste will be rendered unusable and unrecognizable, and how it will be stored and disposed of. 5 5 4 3 5 vi. Describe the use of any gases used in the cultivation operation, such as CO2, including storage, location, and monitoring systems for employee safety. (if not using gases application should specify)5 5 4 3 5 1.6 Sub-Total:100 98 Section 1 Total:300 224 SECTION 2: SOCIAL POLICY AND LOCAL ENTERPRISE 400 Points Possible for Section 2 Description of Commitment to pay a Living Wage provided: Score 10 10 8 6 10 Definition of Living Wage Provided: Score 5 5 4 3 5 Living Wage Defined as Greater than Minimum Wage: Score 5 5 5 1.6 Daily operations. With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in which you are applying for a permit. Microbusinesses must include responses for distribution, manufacturing and cultivation (100 points possible) Criteria Narrative: Criteria Narrative: 234 lbs 3-4 times per year, 2,885 sq ft of canopy Criteria Narrative: 2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. (20 points possible) Scoring Guidance: if all employees above $15.00 per hour = 15 points. More for higher wage structures. Dock points for lower wage rates. https://livingwage.mit.edu/counties/06019 2.1 Sub-Total:20 20 Wages and Salary CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 5 CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5 0 Health Care Benefits CCB Offers Medical Coverage to All Employees: Score 5 5 5 CCB Offers Dental Coverage to All Employees: Score 3 3 0 CCB Offers Vision Coverage to All Employees: Score 3 3 0 CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1 0 Employee Pays $0 for Employee Medical Premium: Score 3 3 0 Employee Pays $0 for Employee Dental Premium: Score 2 2 0 Employee Pays $0 for Employee Vision Premium: Score 2 2 0 Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision): Score 2 2 0 Leave Benefits Number of Paid Vacation/PTO Days Per Year: (10+ days = excep; 6-9 days = Good; 3-5 days Acceptable)5 5 4 3 0 not mentioned Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 0 not mentioned Number of days paid time off for Sick/Medical time: (7+ days= Exceptional, 4-6 days = Good, 3 days = acceptable (8 hour day))5 5 4 3 0 not mentioned Retirement Offers employee retirement plan 2 2 0 Offers company match for employee retirement plan 2 2 2 employee profit sharing based on profitability 2.2 Sub-Total:50 12 CCB Provides Tuition Reimbursement for Certificates: Score 3 3 0 CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 0 CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations Training: Score 3 3 0 CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 5 2.3 Sub-Total:20 5 General Recruitment Plan Provided: Score 10 10 8 6 10 Social Policy Recruitment Plan Provided: Score 10 10 8 6 8 committment made but no limited description of strategies. Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 Criteria Narrative: Criteria Narrative: 2.2 Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. (50 points possible) 2.3 Describe compensation to and opportunities for continuing education and employee training.(20 points possible) 2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. (50 points possible) Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 6 Orgs specified are not local, recruitment benefit unclear Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 6 target listed per ordinance but not by group 2.4 Sub-Total:50 30 Owners Number of Owners:2 Number of Owners that live within the City of Fresno:1 Number of Owners that live in the County of Fresno:0 Number of Owners that Own a Business in the City of Fresno:1 51%+ ownership interest percent of the Owners live or own a business in the City: Score 80 80 80 51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40 - Less than 50 percent of the Owners live or own a business in the Cityf no owners are local, score zero)20 20 - Managers Number of Managers (salaried, non-owners) Number of Managers that live in the City of Fresno: Number of Managers that Own a Business in the City of Fresno: 100 percent of the Managers live or own a business in the City: Score 20 20 - 75 to 99 percent of the Managers live or own a business in the City: Score 15 15 - 50 to 74 percent of the Managers live or own a business in the City: Score 10 10 - Less than 50 percent of the Managers live or own a business in the City: Score 5 5 5 Based on description sounds like only Dustin is local. 2.5 Sub-Total:80 80 Responsibilities Described for All Titles/Positions: Score 20 20 15 10 10 lists titles but not responsibilities 2.6 Sub-Total:20 10 Does CCB have more than five employees: 5 5 5 CCB has signed a peace agreement: Score 5 5 5 will have one 2.7 Sub-Total:10 10 Criteria Narrative: Data, non-scored. Write response in Evaluation Notes column. Criteria Narrative: Data, non-scored. Write response in Evaluation Notes column. IF full points achieved for Ownership category, don't score managers. Section is total of 80 points possible. 2.5 Describe the extent to which the Commercial Cannabis Business will be a locally managed enterprise whose owners and /or managers reside within or own a commercial business within the City of Fresno, for at least one year prior to March 2, 2020.(80 points possible) 2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible) 2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible) 2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible) 2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an application for employment with the applicant/permittee. 2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and Criteria Narrative: Criteria Narrative: Work Force Plan Provided: Score 10 10 8 6 10 Commitment to Local Hire Provided:10 10 8 6 10 Commitment to Offer Apprenticeships Provided:10 10 8 6 10 Commitment paying for continuing education provided 10 10 8 6 0 Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10 2.8 Sub-Total:50 40 CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 100 Mentorship and Training: Score mentorship, apprenticeship Equipment Donation: Score Shelf Space: Score Legal Assistance: Score Finance Services Assistance: Score Other Technical Assistance: Score sharing purchase power Scoring Guidance: full points for willingness to serve with detailed plan offering at least three aspects mentioned above or of similar benefit. Less points for willingness to serve but vague or unclear commitment. Zero points if there is no clear commitment to serve as Incubator. 2.9 Sub-Total:100 100 Section 2 Total:400 307 SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3 CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 0 Information not provided. CCB will established a dedicated contact person to receive complaints: Score 10 10 10 CCB will establish a dedicated phone number to receive complaints: Score 5 5 0 Information not provided. CCB will establish a dedicated email address to receive complaints: Score 5 5 0 Information not provided. CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 0 Information not provided. CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation: Score 10 10 0 Information not provided. Other measure unique to business (i.e. website complaint form)5 5 0 Information not provided. Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points for leaving out aspect, vagueness, or reactive plans. 3.1 Sub-Total:50 10 Criteria Narrative: Criteria Narrative: Criteria Narrative: 2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support.(100 points possible) 3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible) 3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible) Data to inform score on first line of this section. Write response in Evaluation Notes column. 2.8.3. Commitment to pay a living wage to its employees CCB will maintain a listserv of community residents to update and information residents of business operations. 10 10 0 Information not provided. CCB will schedule or attend periodic community meetings (at least annually) to engage with residents about the CCB operation: Score 10 10 0 Information not provided. CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 0 Information not provided. CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Information not provided. CCB will hire residents from the community work at the CCB: Score 20 20 0 Information not provided. Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness, or reactive plans. 3.2 Sub-Total:100 0 CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Info not provided. CCB has prepared a nuisance odor control plan: Score 10 10 8 6 10 Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary: Score 5 5 5 Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting the premise boundary: Score 5 5 5 CCB has established an odor reporting system: Score 5 5 0 Info not provided. CCB will install a nuisance odor monitoring system: Score 10 10 0 Info not provided. 3.3 Sub-Total:40 20 CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 10 Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans. 3.4 Sub-Total:10 10 Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 10 Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10 Odor control measures are identified for different nuisance odor sources: Score 10 10 10 3.5 Sub-Total:30 30 Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures: Score 10 10 10 Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting.10 10 0 Info not provided. Criteria Narrative: Criteria Narrative: Criteria Narrative: 3.3 Describe odor mitigation practices.(40 points possible) 3.4 Identify potential sources of odor. (10 points possible) 3.5 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. (30 points possible) 3.6 Describe all proposed staff odor training and system maintenance.(20 points possible) Criteria Narrative: 3.6 Sub-Total:20 10 CCB has identified the sources of waste generated by the business operation: Score 10 10 10 CCB has prepared a source-separation plan to segregate different sources of waste generated by business operations: Score 10 10 10 The source-separation plan identifies policy, procedures, and locations where different sources of waste are to be collected for disposal: Score 10 10 8 6 10 The source-separation plan describes specific measures to control the collection and disposal cannabis waste: Score 10 10 10 The name of licensed cannabis disposal company provided: Score 10 10 0 3.7 Sub-Total:50 40 Section 3 Total:300 120 SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant: Score 10 10 0 mention, no name Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 0 none Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 0 no plan prepared Safety Plan includes Site Plan of Premise: Score 10 10 0 no site Safety Plan includes Building Layout Plan: Score 10 10 0 no building plan 4.1 Sub-Total:50 0 Written Accident/Incident Procedure Provided: Score 20 20 15 10 0 stated, none provided Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 no specifics Total Number of Scenarios Described: Score 0 none described Active Shooter Incident Described: Score 10 10 0 none described Robbery Incident Described: Score 10 10 0 none described 4.2 Sub-Total:50 0 Evacuation Plan Provided: Score 20 20 15 10 10 mentioned, very general, no specifics Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 0 none provided Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 0 none provided 4.3 Sub-Total:50 10 4.3 Describe evacuation routes. (50 points possible) 4.2 Describe accident and incident reporting procedures. (50 points possible) Criteria Narrative: 3.7 Describe the waste management plan. (50 points possible) 4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible) Criteria Narrative: 4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: Data-write response in Evaluation Notes Column Location of Fire Suppression System Elements Identified: Score 10 10 0 no specific locations given Type of Fire Suppression System Elements Identified: Score 20 20 15 10 10 mentioned, no sprinklers, FA only Location of Fire Extinguishers Identified: Score 10 10 0 not provided Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 0 no # given 4.4 Sub-Total:50 10 Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 0 no written procedures Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 10 mentioned they would provide training, no specs Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 none Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 none Other Medical Emergency Conditions Described: Score 20 20 15 10 0 4.5 Sub-Total:100 10 Section 4 Total:300 30 SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 Security Plan Prepared by Consultant: Score 10 10 10 Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 10 Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 10 Security Plan includes Site Plan of Premise: Score 10 10 10 Security Plan includes Building Layout Plan: Score 10 10 10 5.1 Sub-Total:50 50 Premises (Security) Diagram Provided: Score 20 20 15 10 20 Diagram is drawn to correct scale: Score 5 5 5 Diagram provides required details for premise: Score 5 5 5 Diagram shows the location of all security cameras: Score 5 5 5 Descriptions of activities to be conducted in each area of the premise 5 5 5 Limited-Access Areas Clearly Marked: Score 5 5 5 5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and testing areas. 4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible) 5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible) 5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices (Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area. 5.2.5 Number and location of all video surveillance cameras. (50 points possible) 5.2 Premises (Security) Diagram. In addition to diagrams submitted for other sections of the application, applicants are expected to submit a premises diagram (or site plan) which, focuses on the proposed security measures and how they relate to the overall business. (Pursuant to CCR Title 16, Division 42, §5006. Premises Diagram). 5.2.1 The diagram shall be accurate, dimensioned and to scale (minimum scale ¼"). The scale may be smaller if the proposed location exceeds more than a 1/2-acre parcel but must not be printed on larger than an 11" x 17" sheet of paper. (Blueprints and engineering site plans are not required at this point of the application process) 5.2.2 The diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows, and doorways. The activity in each room and the location of all cameras must be identified in the diagram. Criteria Narrative: Criteria Narrative: Criteria Narrative: Number and Location of All Security Cameras Identified: Score 5 5 5 5.2 Sub-Total:50 50 Intrusion Alarm and Monitoring System Identified: Score 15 15 15 Name and Contact Information for Monitoring Company Provided: Score 5 5 0 No mention Total Points of Entry into Premise Identified: Score 5 5 5 All Points of Entry to be Alarmed Identified:5 5 5 Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10 Backup Power Supply Identified: Score 10 10 10 5.3 Sub-Total:50 45 Written Cash-Handling Procedure Provided: Score 30 30 20 15 20 Dual-Custody is Practiced for all cash handling: Score 10 10 0 No mention of dual custody for ALL cash Video Surveillance Used to Monitor All Cash Handling: Score 20 20 20 Armored Car Service Used for Bank Deposits: Score 10 10 10 All Cash Deposited weekly with Bank: Score 10 10 10 Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20 5.4 Sub-Total:100 80 CCB will use onsite security guards: Score 10 10 10 All onsite guards will be licensed and bonded: Score 10 10 0 No mention of being bonded All onsite security guards will be licensed to carry firearms: Score 10 10 10 Onsite security guards will be on duty before CCB opens for business: Score 10 10 10 Onsite security guards will be on duty after CCB closes for business: Score 10 10 10 5.5 Sub-Total:50 40 Section 5 Total:300 265 Section 1: Business Plan Total Points:300 224 Section 2: Social Policy & Local Enterprise Total Points:400 307 Section 3: Neighborhood Compatibility Total Points:300 120 Section 4: Safety Plan Total Points:300 30 Section 5: Security Plan Total Points:300 265 Total Points Achieved:1600 946 59.13% TOTAL SCORE 5.4 Briefly describe cash handling procedures which covers day to day transactions with customers, vendors armor carrier vehicles and transporting it to the bank.(100 points possible) 5.5 Discuss whether the CCB will utilize the services of on-site security guards. Include in the discussion: (50 points possible) 5.5.1 Number of guards. 5.5.2 Hours guards will be on-site. 5.3 Identify intrusion alarm and monitoring system including the name and contact information for the monitoring company (if the company has been selected).(50 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: Criteria Narrative: 5.5.3 Locations at which they will be positioned. 5.5.4 Guards' roles and responsibilities. Commercial Cannabis Business Permit 1828 Mary Street ABCanna Business Formation Statement ABCanna has not yet been certified by the State of California. Business Formation documentation will be submitted once complete. Commercial Cannabis Business Permit 1828 Mary Street ABCanna Supplemental Application Requirement CAL-OSHA ABCanna does hereby affirm that the company will, within one year of receiving a commercial cannabis business permit, employ at least one supervisor and one employee who have completed a Cal-OSHA industry outreach course offered by a duly authorized training provider (FMC 9-3316(c)). PLANNING AND DEVELOPMENT DEPARTMENT 2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604 (559) 621-8277 FAX (559) 498-1026 December 4, 2020 Please reply to: Rob Holt (559) 621-8056 Isaac Fonseca Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04266 REQUESTING INFORMATION REGARDING COMMERCIAL CANNABIS USES (DISTRIBUTION, CULTIVATION, OR MANUFACTURING AS PART OF A MICROBUSINESS) FOR PROPERTY LOCATED AT 1828 SOUTH MARY STREET (APN 468-321-04) Thank you for your inquiry regarding the allowance of commercial cannabis uses. The requested information about a cannabis microbusiness for cultivation was analyzed using Article 27, Chapter 15 of the Fresno Municipal Code (FMC) of the City of Fresno. Please note, all research for this inquiry is based on existing land development of the subject property. If there are multiple buildings on the subject property, this research was based on the address provided in the request. This research does not take into effect of future development unless provided in your application request. With that, research of a proposed commercial cannabis business on the subject property conveys the following: 1. All cannabis cultivators, distributors, or manufacturers must be located on property within the Cannabis Innovation Zone, inside a Cannabis Innovation Hub, or within one-half (½) mile of State Route 99 between Shaw Avenue and Clinton Avenue, one (1) mile of State Route 99 north of Shaw Avenue, or south of Clinton Avenue, or within one (1) mile of State Route 180 west of State Route 99, must be zoned IL (Light Industrial) or IH (Heavy Industrial), and must meet all of the requirements for development in these zones. If not located within the Cannabis Innovation Zone, any building in which a cultivator, distributor, or manufacturer is located shall be no closer than 1,000 feet from any property boundary containing any of the following: (a) Any residentially zoned parcel in the city, including any legal non-conforming residential uses as of the date a complete commercial cannabis business permit application is submitted; (b) A school providing instruction for any grades pre-school through 12 (whether public, private, or charter, including pre-school, transitional kindergarten, and K-12); (c) A day care center licensed by the state Department of Social Services that is in existence at the time a complete commercial cannabis business permit application is submitted; or, (d) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted. Zoning Inquiry P20-04266 1828 South Mary Street Page 2 December 4, 2020 The subject property located at 1828 South Mary Street (single-tenant building) is located within the Cannabis Innovation Zone, and is zoned IH, which is one of the allowable zone districts for commercial cannabis businesses. Development standards of the IH zone district are available in Sections 15-1303, 15-1304, and 15-1305 of the FMC. The subject location meets the location restriction requirements, per Section 15- 2739.C.1.b of the FMC, for a commercial cannabis business. 2. Prior to commencing operations, a commercial cannabis business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15-2739.N of the FMC. 3. There shall be permitted 8 cultivators, distributors, or manufacturers located within the Cannabis Innovation Zone, and there shall be permitted 8 cultivators, distributors, or manufacturers located inside a Cannabis Innovation Hub or within ½ mile of State Route 99 between Shaw Avenue and Clinton Avenue, one mile of State Route 99 north of Shaw Avenue or south of Clinton Avenue, or within one mile of State Route 180 west of State Route 99. Currently, there are 0 cultivators, distributors, or manufacturers located in the City of Fresno. This location requirement is satisfied for a commercial cannabis 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 commercial cannabis businesses, including but not limited to, application requirements, façade design, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8056 or at Robert.Holt@fresno.gov. Cordially, Rob Holt, Planner III Development Services Division Planning and Development Department Commercial Cannabis Business Permit 1828 Mary Street ABCanna Commercial Cannabis Business Permit Application for ABCanna 1828 Mary Street Fresno, California 93721 ASSESSOR’S PARCEL NUMBER: 468-321-04 Date submitted: December 4, 2020 Submitted to: The Community Development Department, Fresno City, California By applicant: ABCanna Project name: 1828 Mary St APN: 468-321-04 Commercial Cannabis Business Permit 1828 Mary Street ABCanna i TABLE OF CONTENTS 1. ABCanna Business Plan.................................................................................... 1 1.1. Owner and Team Qualifications ............................................................................3 1.2. Budget .................................................................................................................5 1.3. Proof of Capitalization ..........................................................................................6 1.4. Pro Forma - Three Years of Operation ...................................................................7 1.5. Hours of Operation ...............................................................................................8 1.7. Daily Operations for Distribution ..........................................................................8 1.8. Daily Operations for Manufacturing .................................................................... 15 1.9. Daily Operations for Cultivation .......................................................................... 34 1.10. Irrigation Plan ..................................................................................................... 42 Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-1 1. ABCANNA BUSINESS PLAN ABCanna is a locally owned and operated business applying for a Commercial Cannabis Business (CCB) Permit and associated regional and state licenses to conduct indoor cannabis cultivation operations, manufacturing, and provide cannabis distribution services in the City of Fresno, in each case, in compliance with all applicable rules, regulations and laws promulgated by the City of Fresno and the State of California law. All ABCanna products will have as the sole market California licensees and consumers, unless and until otherwise allowed by law. ABCanna aims to be an industry leader in the Fresno cannabis cultivation market with the build-out and operation of a locally-owned and state of the art indoor cultivation facility on the premises located at 1828 S. Mary Street in Fresno. ABCanna will capitalize on our access to an already existing portfolio of excellent genetics to produce a clean and healthy product with efficient and ethical production protocols that aim to grow one of the best cannabis flowers in the world while establishing an innovative cultivation brand with affordable prices of both flower and manufactured product to licensed distributors, retailers, and consumers and providing first-rate transportation and related logistics services through our distribution arm. With strategic partners already in place, once operational we expect to be able to respond to the local and statewide consumer needs with swift agility. ABCanna was built on a vision by its founders to bring thriving local cannabis cultivation and distribution businesses to the community of Fresno, a community where they grewup and now are raising families. Our management team is comprised of local philanthropists, industry experts and cannabis innovators who have seen firsthand the benefits in other areas where the legal cannabis industry has brought positive local effects in the form of blight removal, active street presence and taxation funds applied positively in the community. We intend to use a technical approach to cultivating cannabis that we have developed using only probiotic and vegan inputs. Between our expert team and our brand differentiation, our comprehensive expertise will establish our product as a moral and ethical standard bearer for the industry to recognize. These specific values are acknowledged, will be communicated to the market, and delivered in the final product. Our approach is intended to inspire a high-quality benchmark for all producers of cannabis to achieve. ABCanna’s primary focus is to obtain an indoor cannabis cultivation, manufacturing and distribution/transport licenses, and to build a successful cultivation center and distribution hub that is fully compliant with all state and local regulations. Our goal is that our premises will first facilitate an infusion of tax revenue from our businesses, and secondly, we aim to establish, or contribute to a cannabis business benefit fund which will be utilized to build partnerships with established community outreach organizations in the Fresno community. This base will also allow ABCanna to be primed and ready for national expansion as federal laws adjust and evolve for the benefit of the cannabis industry, and Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-2 as a result of any such expansion, we will be able to continue benefitting the Fresno community. ABCanna will also intends contribute to the Fresno Community Reinvestment Fund to support local cannabis equity businesses in their various business endeavors in the industry. Contributions may be in the form of monetary support, staff training and development, or establishment and support of business relationships. Our operations model will include: 1. Indoor cultivation premises using probiotic and vegan inputs in a compliant facility built to the highest standards; 2. Procedures to ensure the secure receipt and delivery of all seedlings and immature plants, and to ensure that plants move from cultivation to drying, processing, packaging, storage and shipment in a manner so as to avoid cross-contamination; 3. Serving as a state and local information resource regarding cannabis innovation, cultivation and distribution as well as a source of community outreach; 4. Safe distribution and inventory protocols to ensure compliant transport of cannabis and cannabis products to licensed and authorized California clients; 5. Commitment to constructing a comprehensive and lawful distribution network by building upon the company’s early-mover footprint in Fresno, California; 6. The creation of business-to-business logistics solutions and overnight fulfillment capabilities offered on a statewide basis for wholesale and retail clients alike; and 7. Core distribution capacities with a dedicated focus on maintaining regulatory adherence, as well as offering value-added operational services. 8. Non-volatile manufacturing space to provide state of the art ability to convert cannabis flower and usable trim to quality cannabis oil for manufactured products. ABCanna envisions as an integral part of its model the creation of a healthier, wealthier, and more verdant world in which the practice of legal, responsible, and dynamic commerce comes to define the commercial cannabis industry in Fresno, California. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-3 1.1. Owner and Team Qualifications Eluterio Fonseca, Owner was born in Fresno and attended McLane High School in east Fresno while learning how to be a leader through his family business, ABC Auto Body and Collision. Fonseca is a passionate man that believes in giving back to his community. He is currently part of the South East Fresno Coalition board; this organization brings to light the injustices in the south east Fresno community and fights for the revitalization of distressed areas. On the weekends Fonseca coordinates and volunteers for food drives and provides clothes for the homeless. Eluterio has been part of many non-profit organizations, from giving bicycles to children on the holidays to providing Christmas presents to children of incarcerated individuals. ABC Auto Body has a long history of employing parolees, Fonseca and his family believe in creating opportunities within the community and giving second chances. Eluterio is very focused on the future of his community, he works side by side with many schools to help the youth. Eluterio created an internship in 2004 for the youth in his community and has since done it annually. In this program young adults/teens are able to intern at ABC Auto Body and Collision and learn how to be a leader, learn responsibility, and learn about autobody repair as he once did with his father. Fonseca also works closely with Kings Canyon Middle School in their annual career day to mentor children that take an interest in autobody repair. Eluterio believes in his community so much that he applied for district transfers for his two children to receive an education at Ann. Leavenworth, which is a dual-immersion program located in southeast Fresno so they would not only experience diversity but also the rich culture that our community has to offer. He has taught his children the importance of giving back to their community and has influenced many to do the same. The list of young adults, teens, children, paroles, and homeless he has helped goes on and the outcome encourages him to do even more for his community in east and west Fresno. Gene Gonzales, Owner is a cannabis industry expert with nearly a decade of experience growing and sourcing cannabis, creating innovative products, and developing retail markets. He is adept at working in multiple jurisdictions to acquire licenses and permits. He holds several permits in the Los Angeles area related to cannabis business operations. Jacob Phillips Garcia, Director of Cultivation and Manufacturing for ABCanna has been cultivating botanically for 10 years, and regenerative farming for 5 years. Jacob began practicing veganic cultivation while studying microbiology in college and progressed from there to experimenting with new concepts and techniques first with roses, fruits, and then to cannabis. Jacob’s goal is to share with the world that pure potential and vitality begins with the most natural of processes and he will use this same approach in cultivating medicine, food, or flowers for ABCanna. Roberto Pena, Director of Distribution for DD559 has 40+ years experience in sales and distribution for Donaghy Sales/ Anheuser Bush, Sysco Foods, and California State Lottery. Pena also Co-owns Central Valley Hemp farm in Caruthers CA. Pena is also the director of sales and distribution at CVH farm LLC. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-4 Dustin Otero, Business Manager for DD559 graduated from Washington Union High School in Fresno and has held multiple positions of increasing responsibility while building his professional business management skills. Familiar with every aspect of successful building operations from warehousing, safety protocols, shipping/receiving, staff training, employee supervision, sales, customer support and more, Dustin brings an excellent skill set to the DD559 team. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-5 1.2. Budget Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-6 1.3. Proof of Capitalization CONFIDENTIAL. See Attachment. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-7 1.4. Pro Forma - Three Years of Operation Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-8 1.5. Hours of Operation Our operations will not be open to the public at any time. Cultivation will be 24 hours a day, Monday through Sunday. Distribution and Manufacturing will operate from 7am – 6pm and will remain consistent with Operating Requirements of the Fresno City Municipal Code. This facility is for the cultivation, manufacturing, storage and distribution/ transportation of cannabis and will have onsite, trained security staff at all times. Only security personnel, authorized staff and distribution personnel will be allowed to enter the premises at any time. We anticipate that ABCanna will have between 8 and 10 employees onsite at any given time. Parking is sufficient for all employees and there is additional parking available to accommodate overlap during shift change. 1.7. Daily Operations for Distribution ABCanna places the highest emphasis on staff safety as well as product quality and security. Ours will be a non-public facility and no unauthorized personnel will be onsite at any time. We outline our process to uphold standards specific to the Distribution and Transportation uses noted below. We will provide transport solely to licensed dispensaries pursuant to application law and other legal and regulatory requirements promulgated by the City of Fresno and the State of California. ABCanna has brought in Robert Pena as Director of Distribution who will apply his 40+ years experience in sales and distribution for companies such as Donaghy Sales/ Anheuser Bush, Sysco Foods, and California State Lottery. Robert also Co-owns Central Valley Hemp farm in Caruthers CA and is the director of sales and distribution at CVH Farm LLC. These established business relationships and current operations within the cannabis industry will help to create an effective and efficient distribution network. 1.7.1 Criteria for Distribution Operations i. Number of Drivers, Hours, and Vehicles ABCanna will employ one driver at a time to operate a transport van such as a Ford Transit Connect or similar vehicle. Drivers will be licensed with the proper motor carrier permits. Operational hours for the facility will be 7am-6pm, Monday through Saturday. As noted above, distribution will be open from 7am – 6pm and transportation specifications procedures will be maintained in a manner consistent with the Operating Requirements of the Fresno City Municipal Code. ii. Transportation Security Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-9 Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-10 iii. Inventory Management and iv. Quality Control Production Sites and Sources - Vendors and Suppliers Supply chain management (SCM) involves the controlled movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption/sale all while assuring the purity, composition, and quality of the product. ABCanna maintains strict criteria for suppliers of all raw materials, products, inputs and components that will be used in the supply chain. Comprehensive Standard Operating Procedures will be in place to define the Approved Supplier List, the selection procedures, responsible parties, evaluation procedures, and annual review/maintenance procedures. ABCanna will control each supply chain input as follows. Approved Supplier List ABCanna will maintain an Approved Supplier List (ASL) of vendors for purchasing materials or services in the creation of cannabis or cannabis product. The ASL will be maintained by a designated quality assurance representative within the company. Materials / Purchased Goods In the cultivation process, a material/purchased good can include soil, nutrients, beneficial microbes or insects, cloning hormones, pH adjusting solutions, etc. Control Methods for Materials / Purchased Goods • A specification sheet will be on file for each material/purchased good used by ABCanna. The specification sheet will include the manufacturer’s contact information and the criteria necessary for assessing the quality of the material. It will be the responsibility of the Quality Assurance (QA) representative to assure that a specification sheet is on file for every material used by the company in any cultivation/packaging process. The specification sheet will be drafted by committee with stakeholders from the various areas within the organization. The QA representative will be responsible for determining the quality of the received material against the specification sheet on file. • Purchasing controls will assure that only items with a specification sheet can be purchased. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-11 • When a purchased material is received at ABCanna, it will be quarantined by the QA representative pending inspection. • Once inspected, the QA representative will release the material for use, or reject it back to the vendor. A QA-issued sticker will identify its status. • Only materials with a “Release” sticker will be used in the operation. “Rejected” items will be isolated until returned to the manufacturer or destroyed. Methods All methods for purchasing, processing, receipt, QA disposition, and use will be documented following current Good Business practices and Company SOPs. Documented methods for work-in-process and finished good testing will assure product integrity with respect to quality, composition, and purity. Once received on-site, materials will be sampled for inspection and disposition by QA. Aseptic sampling per standard operating procedure will assure that contamination is not introduced into the item being sampled. Environmental Purchased materials and supplies will be stored according to the suppliers’ recommendations and will be stored to avoid contamination and mix-ups. All facility waste storage areas will be located away from process/handling areas to prevent cross-contamination and avoid attracting pests. Waste storage areas and containers will be adequate for waste generated between disposal times. Waste storage areas will be cleaned frequently enough to avoid creating conditions that can cause cross- contamination or attract pests. Containers with lids will be used for the storage of waste until removal. All materials and supplies will be stored in compliance with relevant OSHA regulations for the storage of hazardous materials. Personnel Personnel will have documented training on the SCM program. Training will occur as part of new employee orientation, and on a recurring annual basis. Supplier Services ABCanna will utilize an evaluation system to initially assess supplier capability. Ongoing evaluation of the supplier will be required and will be based on: 1) The supplier’s ability to meet the needs of the company; 2) Supplier’s history and length of time in business as indicators of dependability; 3) Experience and qualifications of the supplier’s staff 4) Demonstrated evidence the supplier utilizes a Quality System structure for operations; 5) ISO or similar registration; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-12 6) Trend analysis of products purchased from the supplier; and 7) Reputation of the supplier in respective industry. We require documentation such as Certificates of Conformance or Compliance from suppliers in support of the purchase goods’ quality, composition, and purity. Receiving/Processing. All distribution inventory transports will be scheduled in advance with a manager and can only be signed off by a manager. Security guards will be made aware of any pertinent distribution schedules and confirm the credentials of the distribution driver upon arrival. No unscheduled or ad-hoc transports will occur. If the credentials are authenticated, the distribution driver will be met by a manager onsite where each item is immediately weighed and taken through quarantine and registration according to the tracking system in place. Any cannabis product taken for distribution will not enter any portion of the facility other than the secure distribution center. Goods will be received in the limited-access Distribution area. Distribution drivers will access the premises through the secure gate designated for such vehicles. ABCanna will trackABCanna tracks the location and disposition of cannabis goods on the premises through several methods, including but not limited to: tracking the UIDs assigned to each batch/lot/unit; inventory software database, shipping manifests, chain of custody/records, and purchase orders. All movements of cannabis goods will be recorded in the inventory software database and documented using Shipping Manifests, chain of custody forms, and purchase invoices. All movements of cannabis goods will be transmitted to the Metrc within 24 hours of occurrence. ABCanna procedures for tracking inventory are as follows: (a) Cannabis goods that enter the facility will be immediately be weighed and the UID information will be logged into the internal tracking software; (b) ABCanna shall keep a record of the following information for all the cannabis goods received into inventory: (1) Name and type of the cannabis goods; (2) Unique identifier of the cannabis goods; (3) Amount of the cannabis goods, by weight or count; (4) Date and time of the activity or transaction; (5) Name and license number of other licensees involved in the activity or transaction; and (6) Where on the premises the cannabis product will be stored. (c) Each batch of cannabis goods will be placed in a separate and district opaque container and the container will be labeled with identifying information for that specific batch (See (b) above); (d) ABCanna shall keep a record of the following information relating to testing: (1) Date and time batch sampling took place; (2) Batch size that was tested; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-13 (3) Results of the tests and the respective Certificates of Analysis (“COA”); (4) Chain of Custody (“COC”) records; and (5) Where on the premises cannabis goods are located (i.e., in quarantine, ready to be packaged, etc). (e) When cannabis goods are removed from inventory, ABCanna shall keep a shipping manifest and/or a record of sale, with the following information: (1) First name and employee number of the employee who processed the sale; (2) The licensed retailer name and license number; (3) The date and time of the purchase transaction; (4) A list of all cannabis goods purchased, including the quantity purchased; and (5) The Total amount paid for the sale including the individual prices paid for each cannabis good purchase and a breakdown of any amounts paid for taxes. (f) A record of the following information shall be entered into the inventory tracking software database in the event of destruction or disposal of cannabis goods: (1) The name of the employee performing the destruction or disposal; (2) The reason for destruction or disposal; and (3) The entity or company being used to collect and process the cannabis waste. (g) ABCanna will maintain an accurate record of its inventory at all times. ABCanna shall also perform inventory reconciliation at least once every thirty (30) days. The inventory tracking software will automatically transmit inventory data to Metrc by 11:59 p.m. Pacific Time on the day of entry of said data. Shipping/Transport Out ABCanna will use paper hardcopy Shipping Manifests until we are able to implement Metrc facility-wide. The physical copies of the Shipping Manifests will be scanned and stored in a digital format. The Shipping Manifest shall include the following information: • Name, license number and license premise address of the originating licensee; • Name, license number and license premise address of ABCanna; • Name, license number, and licensed premise address of the destination licensee receiving the cannabis goods into inventory or storage; • Date and time of departure from ABCanna and approximate date and time of departure from each subsequent licensed premises; • Arrival date and estimated time of arrival at each licensed premises; • Name and type of cannabis goods; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-14 • Unique identifiers; • Amount of cannabis goods by weight or count and total wholesale sale cost of the cannabis goods; and • Date and time of the transportation. The Distribution Manager will supervise the preparation of cannabis goods for shipment by reviewing the purchase orders, retrieving the requested cannabis goods, reviewing the packaging and labeling for regulatory compliance and cross-referencing the corresponding COAs, preparing a shipping manifest, and documenting the removal of inventory into the inventory database software and Metrc system. The Distribution Manager will verify the contents of all shipments by cross-referencing any transfer records, shipping manifests, inspecting each unit or batch of the cannabis goods received, cross-referencing the unique identifiers, name and type of cannabis goods, and weight and/or number of units transferred. When distributing for other license holders, in addition to the foregoing, the Distribution Manager will review the shipping manifest and cross-reference the name and license number of the original producer (cultivator or manufacturer) with the respective licensing agency by utilizing the online license search. The distribution vehicle will be loaded with cannabis goods in the Distributor parking/loading area. The parking/loading area will be secured by a metal security gate, security personnel, and video surveillance cameras. The Distribution Manager, a distribution employee, and security personnel will supervise the loading of vehicles or trailers with cannabis goods. Another employee will monitor the video surveillance cameras while cannabis goods are being loaded into a vehicle or trailer. Cannabis goods will be transported inside a fully enclosed cage. The cage is welded within the frame of the vehicle. The cage will remain locked with a lock on it. ABCanna has a dedicated parking/loading area for distribution vehicles/trailers in the distribution premises. The Secured Vehicle Area will be secured by a metal gate that is controlled by security personnel. The parking lot will be under video surveillance which shall be closely monitored by the security personnel. The distribution employee transporting the cannabis goods will review the video surveillance footage of the parking lot for any suspicious activity prior to loading the vehicle. Security personnel will visually inspect the adjacent street for any suspicious activity or threats of theft and diversion. The distribution employee will transfer the cannabis goods into the enclosed cage in a dark/opaque and unmarked bag. The distribution employee will be accompanied by security personnel while loading the vehicle with cannabis goods and while transporting the goods. Storage. Storage controls as are necessary to minimize the potential for: the growth of microorganisms, contact with allergens, cross-contact with other products, contamination of cannabis products, and deterioration of cannabis products. Cannabis goods shall be separated by product type into different opaque bins/containers to prevent light penetration and to promote a longer shelf life. The cannabis goods in inventory shall be separated by batches, strains, producers and different units of weight Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-15 if prepackaged (grams with grams; eighths with eighths, etc.). Cannabis goods will also be separated on different shelves based on their testing status:(i) pre-testing; (ii) post- testing and awaiting results; (iii) passed testing; (iv) quarantine; (v) waste. Cannabis flower products shall be kept separate from cannabis tinctures, cartridges, and concentrates. The temperature within the Distribution limited-access area shall always be maintained between 68 – 70 degrees Fahrenheit to prevent humidity. The ideal storage climate is controlled using HVAC and monitoring systems, including thermometer, and dehumidifiers. Humidity control will prevent cannabis from hydrating or dehydrating, causing weight and volume fluctuations, while potentially impacting both shelf-stability and the homogeneity of products. Management will perform regular audits to ensure that the vault area (Vault) has adequate ventilation and will coordinate maintenance of systems, as needed. Security. Cannabis businesses have some inherent security risks, which is why ABCanna is providing a detailed Security Plan with this application to address any potential public safety concerns. ABCanna’s plans will reduce potential crime and provide a safe and secure facility for the Fresno community in this neighborhood. ABCanna will ensure that its state-of-the-art security systems monitor the surrounding area and neighborhood and will have a positive effect on the neighboring community. In addition to external monitors and cameras that will provide 24/7 camera surveillance, ABCanna will also provide onsite security 24/7 in accordance with the local municipal code, as well as alarm systems, motion detectors, and security lighting. The cannabis goods will be stored in either the Quarantine area or the Distribution Storage area, depending on the status of the cannabis goods (tested or awaiting test results). The Distribution Storage area will be secured with electronic door locks. Only Distribution Manager and owners have assigned keycards to access the Distribution Storage area. The Distribution Storage area shall remain locked at all times. The Distribution Storage area will be under continuous video surveillance 24/7, which shall be closely monitored by security personnel and the stakeholders. Only vendors, contractors or individuals who require access to the limited-access area for a legitimate business purposes will be granted access to the limited-access area of the business premises. Any non-employee authorized individual who enters the limited- access area shall be escorted by an employee of ABCanna (who will be authorized to access the limited-access area) at all times while within the limited-access area. A log of non-employee authorized individuals who access the limited-access area is maintained by the Distribution Manager. Please refer to the ABCanna Security Plan for additional details. 1.8. Daily Operations for Manufacturing ABCanna will adhere to all safety, testing, and quality control procedures and standards in place for our manufacturing operation within the Mary Street location. The following standards are specific to our planned manufacturing facility. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-16 1.8.1. Criteria for Manufacturing Operations: i. Identify all cannabis products manufactured within the permitted premises. Botanical cannabis material and concentrates such as extracted cannabis oils, tinctures, metered dosing via vaporization products (units or cartridges), oils, topical application creams, sprays. ii. Quality Control Procedures Establishment of Quality Control Unit ABCanna adheres to guidelines of quality control that include the establishment of a Quality Control (“QC”) Unit with training and responsibilities to ensure: (a) That the QC Unit has the sufficient training and ability to review the applicable testing laboratory’s Certificate of Analysis to verify that the cannabis or cannabis products met the required testing requirements by the Bureau of Cannabis Control (“BCC”) and the Department of Public Health (“CDPH”); (b) That the QC Unit is sufficiently trained and educated in order to pose to licensed distributors or cultivators any questions or concerns about the cannabis products; (c) That the QC Unit is educated and trained relative to, and is responsible for, approving or rejecting shipments of cannabis products from licensed distributors that through analyzing such shipments; (d) That the QC Unit is trained in standard manufacturing packaging and labeling requirements; (e) That the QC Unit is educated and trained relative to, and is responsible for verifying that shipments of cannabis products from licensed distributors have the identity, strength, quality, and purity they are represented to possess; and (f) With respect to cannabis products that may have been subjected to improper storage conditions, including extremes in temperature, humidity, smoke, fumes, pressure, age or radiation due to natural disasters, fires, accidents or equipment failures, the QC Unit will ensure that such products do not enter the marketplace where it is determined that they have, in fact, been exposed to improper storage conditions. ABCanna will preserve all required quality control records in a manner that allows the records to be produced for the BCC and CDPH at the licensed premises in either hard copy or electronic form upon request. Employee Training ABCanna will train and educate its employees on the following issues: (a) Importance of personal hygiene, such as hand washing, and sanitary conditions prior to touching any cannabis product to prevent cross-contamination; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-17 (b) The different types of testing requirements and developing knowledge of, and performing due diligence in determining compliance with, laboratory standards of practice and quality assurance; (c) Develop knowledge of compliance in regulatory standards regarding the processing of cannabis and cannabis products; (d) Batch Production protocols and records; (e) Packaging and labeling requirements; (f) Manufacturing operations and equipment protocol; (g) Receipt of shipment protocols, such as stated above; (h) Return protocols; (i) Daily use limitations; (j) Manufacturing homogeneity requirements; (k) Protocols for raw materials and ingredients; (l) Cannabis waste management procedures; (m) Hazard analysis and control procedures; (n) Preventative controls; (o) Security procedures and emergency operations; and (p) Sanitary facilities and controls, including equipment and utensils. Personnel Requirements ABCanna shall ensure the following for all personnel: Disease Control. Any individual who by medical examination or supervisory observation is shown to have, or appears to have, an illness, a fever, open lesion (such as boils, sores, or infected wounds), or any other source of microbial contamination presenting a reasonable threat of contamination to cannabis products, contact surfaces, or packaging materials, shall be excluded from any related manufacturing operations until their health condition is corrected. Open lesions, boils, and/or infected wounds shall be adequately covered (e.g., by an impermeable cover). Personnel shall be instructed to report such health conditions to their supervisors. Cleanliness. All individuals working in direct contact with cannabis products, cannabis product-contact surfaces, and cannabis product-packaging materials shall conform to hygienic practices to the extent necessary to protect against allergen cross-contact and contamination of cannabis products while on duty. The methods for maintaining cleanliness include: • Wearing appropriate outer garments to protect against allergen cross-contact and contamination of cannabis products, contact surfaces, and/or packaging materials; • Maintaining adequate personal cleanliness; • Washing hands thoroughly in an adequate hand-washing facility before starting work, after each absence from the work station, and at any time when the hands may have become soiled or contaminated, and sanitizing hands if necessary to protect against contamination with undesirable microorganisms; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-18 • Removing all unsecured jewelry and other objects that might fall into cannabis products, equipment, or containers, and removing hand jewelry that cannot be adequately sanitized during periods in which cannabis products are manipulated by hand. If such hand jewelry cannot be removed, it may be covered by material which can be maintained in an intact, clean, and sanitary condition and which effectively protects against the contamination by these objects of the cannabis products, cannabis product-contact surfaces, or cannabis product-packaging materials. • Maintaining any gloves, if they are used in cannabis product handling in an intact, clean, and sanitary condition. • Wearing hair nets, headbands, caps, beard covers, or other hair restraints in an effective manner, where appropriate. • Storing clothing or other personal belongings in areas separate from those where cannabis products are exposed or where equipment or utensils are washed. • Confining the following activities to areas separate from those where cannabis products may be exposed or where equipment or utensils are washed: eating food, chewing gum, drinking beverages, and/or using tobacco. • Taking any other necessary precautions to protect against allergen cross-contact and against contamination of cannabis products, cannabis product-contact surfaces, or cannabis product-packaging materials by microorganisms or foreign substances (including perspiration, hair, cosmetics, tobacco, chemicals, and medicines applied to the skin). Site Maintenance ABCanna shall have written protocols and procedures for the grounds keeping of the Premises, including, but not limited to: (a) Proper storage of equipment, removal of litter and waste from the premises; (b) Ensuring adequate draining areas in order to prevent contamination by seepage, foot- borne filth, or the breeding of pests due to unsanitary conditions; (c) Maintaining the cleanliness of waste removal areas to prevent contamination in areas where cannabis products may be exposed to such a system’s waste; and (d) Since ABCanna is bordered by grounds outside, ABCanna’s control, inspections and reasonable care shall be exercised within the premises. In addition the above, ABCanna will take all reasonable steps to ensure that its premises is kept in good working condition. If anything needs repairs, the repairs shall be performed in a professional and timely fashion. Pest Management and Exclusion Consistent with ABCanna’s commitment to providing patients and consumers with clean, superior, and high-grade cannabis products free of pests, and contaminants, ABCanna shall take all necessary precautions against pests. ABCanna will use pesticides to control pests under the precautions and restrictions that protect against contamination of cannabis products, cannabis product-contact surfaces, and cannabis product-packaging Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-19 materials. ABCanna shall have a written pesticide management and exclusion plan in place to be strictly followed by its personnel. Preliminary Hazard Analysis ABCanna currently intends for its manufacturing operations to just be labelling and packaging cannabis goods. Should the manufacturing operations be expanded in the future, the hazardous analysis shall be updated accordingly. Biological Hazards. Working with plants can present biological hazards, including agents such as bacteria fungi, and other allergens which could pose health risks such as irritation, nasal congestion, coughing among other physical health effects. Mold. Cannabis production involves high levels of humidity. Humidity promotes the growth of mold, which can cause congestion, coughing and irritation in the throat, eyes and skin. ABCanna shall determine if mold is present and shall take the appropriate measures to eliminate it such as ensuring moisture and dampness control, proper ventilation in its facility, and instructing employees to wear gloves and masks when directly handling plants. If an employee develops a moderate to severe respiratory symptoms, they should be immediately removed from the agent that caused the reaction and medically evaluated. Allergens. There have been reported incidents of allergic reactions or hypersensitivity to cannabis. Personal handling of plant material that contains an allergen that the individual is allergic to might result in hives, itchy skin and swollen eyes. ABCanna shall, to the extent possible, eliminate the exposure of individuals with known allergies to cannabis plant materials. If exposure cannot be eliminated, employees with known allergies will be required to wear gloves and a mask when handling cannabis plants. ABCanna will have local ventilation to assist in controlling airborne exposures to dusts or chemical vapors. Chemical Hazards. Cannabis manufacturing involves the potential interaction with various harmful chemicals. ABCanna will ensure that employees are informed about chemical safety in the workplace and understand the identities and hazards of chemicals that they may encounter. Indoor Air Quality. Workers may encounter ozone as a product of the chemical reaction of nitrogen oxides and terpenes emitted from the marijuana plants or not fully dried harvested cannabis flower. ABCanna shall ensure HVAC systems are adequate for the facility and will establish a process for complaints and how they will be addressed. Many indoor air quality problems result from poor ventilation, problems controlling temperature, humidity levels, construction, or other activities in or near a building that can affect the flow of fresh air coming into the premises. Contaminants such as dust, cleaning supplies, or other chemicals can also cause poor indoor air quality. Disinfectants. ABCanna shall provide safe working conditions for employees using cleaning chemicals. There are a variety of cleaning and disinfectant chemicals. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-20 ABCanna shall use best efforts to utilize the least hazardous, and all natural, cleaning chemicals that best suit the purpose for which it will be used. These products are primarily intended for disinfecting hard surfaces. ABCanna shall use best practices to choose sager cleaning chemicals that meet the cleaning/disinfecting needs and will provide training on the use, storage and emergency spill procedures for disinfectants/cleaning chemicals. ABCanna shall also provide protective equipment such as gloves and goggles, as needed. Portable Fire Extinguishers. Approved portable fire extinguishers are required to give the occupants the means to suppress a fire during its initial or incipient stage. A readily available portable fire extinguisher can contribute to the protection of the occupants. Physical Hazards. Physical hazards include hazards that might exist within the workplace that can cause physical harm or injury. Many of the hazards listed below have different regulations and work practices that should be followed to ensure a safe work environment, such as: • Occupational Injuries (sharp objections, hot/cold surfaces, cuts, burns, infection); • Walking, working surfaces (slips, trips, and/or falls); • Workplace violence; • Ergonomic Body Mechanics (muscle or nerve injury); • Hazard assessment: major risk factors that may lead to trauma: o Forceful exertions, o Repetitive or prolonged activities, o Prolonged static postures; o Inappropriate or inadequate hand tools; • Environment (natural disasters); and • General (hair or insects). Employees in any industry are susceptible to potential injury (work related or not). Many minor injuries or health related incidents that occur in the workplace can be treated immediately with first aid. In more severe cases, CPR and first aid can help reduce the long-term severity of an injury or incident by providing temporary treatment until professional help can be obtained. To handle potential workplace injuries, ABCanna must ensure medical personnel and first aid supplies are readily available to workers. In addition, the contact information for the nearest facilities for immediate medical emergency attention will be provided in a conspicuous place in the facility. Best Practices: • Develop a written first-aid plan; • Ensure the ready availability of medical personnel for advice and consultation on matters of occupational health; • Ensure employees have been provided with clear instructions on how to report their injuries and how and where to seek medical attention; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-21 • Provide workstations that encourage proper ergonomic postures; • Encourage early reporting of musculoskeletal disorders; • Encourage stretching and rest and movement breaks throughout the workday; • Provide a sanitary work environment; • Establish security minimum requirements; • Implement a sign-in procedure for visitors; • Establish a zero-tolerance policy toward workplace violence; and • Maintain clean, dry floors as much as possible. Equipment And Machinery Qualification. ABCanna shall ensure that each piece of equipment utilized is suitable for its intended use prior to operation. Prior to use of any equipment or machinery, a member of ABCanna’s QC Unit shall validate: • All equipment and machinery has design specifications, manufacturer’s operating procedures, and performance characteristics appropriate for CPA’s use; • Equipment and machinery are built as designed with proper materials, capacity, and functions, and properly installed, connected, and calibrated; • Routine monthly re-verifications of all equipment and machinery. Verification Records. ABCanna shall maintain verification records for all equipment and machinery. The verification records shall contain: • Documentation of successful verification of each piece of equipment and machinery, dated and signed by the person conducting the verification; • Documentation of successful re-verifications of each piece of equipment and machinery upon any modification to the equipment or machinery, intended use, or standard operating procedure; • A log documenting the verification and re-verification of all equipment and machinery in operation on the licensed premises. Prevention of Deterioration & Product Complaints & Recall Product Storage. The proper storage of cannabis products shall prevent the entry of environmental contaminants such as smoke and dust. The product storage room shall not be exposed to direct sunlight and shall be completely segregated from employee break rooms, changing facilities, and bathrooms as set forth in the premises diagram. All storage of cannabis and cannabis products shall be conducted under such conditions and controls as are necessary to minimize the potential for: • the growth of microorganisms, • contact with allergens, • cross-contact with other products, • contamination of cannabis products, and • deterioration of cannabis products. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-22 Cannabis and cannabis products shall be separated by product into different opaque bins/containers to prevent light penetration and to promote a longer shelf life. The prepackaged cannabis goods in inventory shall be separated by strains and different units of weight (grams with grams; eighths with eighths, etc.). Hand wash stations are located throughout the facility to enable employees to cleanse hands and arms at regular intervals during the work day. Each hand wash station is equipped with antibacterial soap and paper towels to dry hands. There will be over a dozen hand sanitizer dispensers located throughout the building for additional hand cleanser options. Temperature and Humidity Control. ABCanna’s product storage room provides for control of temperature and humidity. The product storage room shall always be kept at a temperature between 68 – 70 degrees Fahrenheit to prevent humidity. The storage room has HVAC and air filtration for odor prevention. Certain concentrates are kept in the storage room’s coolers, freezers, mini fridges, and wine coolers. For edibles and concentrates, the coolers and mini fridges shall generally be set to 54 degrees Fahrenheit. Product Complaints. If there is a complaint about any product leaving the manufacturing facility, the following steps should be taken: 1. The complaint will be recorded by a manager who will log the complaint in the manufacturer’s tracking software. 2. The manager will be trained to gather all available information about the product and the individual making the complaint. The data that will be collected include the name of individual submitted a complaint, the identity of product used, the description of events, the date the product was received, the label number (if available), and the contact information of the individual. 3. Once a complaint is filed, the operator and/or manufacturer manager will be notified and will review the complaint. Once the complaint is viewed, the manager will investigate the product, batch, delivery date, as well as any other previous complaints that may be related. 4. The manager and operator will then determine the proper response to handle the complaint. If necessary, he or she will reach out to customers and businesses who may be affected by the product. 5. If the manager and operator believe the product needs to be recalled, they will contact public health authorities and take the right steps to recall the product and ensure every business affected is notified. 6. Once the product complaint has been addressed, the manager will create a report in our tracking software. The manager will also be responsible to reach out to the individual who reported the complaint to ensure the problem has been appropriately remediated. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-23 Product Recall. Once notified ABCanna will locate the batch of cannabis extract that has failed testing utilizing our BiotrackTHC tracking system. Once located the cannabis will be collected and properly destroyed. Once notified ABCanna will contact the distribution company who had received the recalled cannabis. We will inform them of the public health risk and assist in notifying any and all licensed distributors dispensaries and who have received the product in question Verification of Packaging and Labelling Packaging. ABCanna shall adhere to, and will insist upon and ensure adherence by its staff to, packaging and labeling specifications for information placed on the labels of its products which conform to state and local requirements. The checklists contained in this Chapter III shall be utilized by ABCanna management with respect to verifying that cannabis products to be offered for sale meets the packaging and labeling standards required by ABCanna. General Packaging Requirements. With respect to cannabis products provided by licensed distributors ABCanna will require the following packaging standards: • Packaging designed to protect the cannabis product from contamination; • Re-sealable packaging if more than one serving of cannabis product is provided; • Tamper-evident packaging*; • *A one-time-use seal is affixed to the opening of the package, allowing a person to recognize whether or not the package has been opened. • Child-resistant packaging**; • **Designed or constructed to be significantly difficult for children under 5 years of age to open or obtain a toxic or harmful amount of the substance contained therein within a reasonable time and not difficult for normal adults to use properly, but does not mean packaging which all such children cannot open or obtain a toxic or harmful amount within a reasonable time. • Unique identifier for the purposes of identifying and tracking; • If the product is an edible product, the package shall be opaque; • Packages and labels shall not be made attractive to children. Specifically they shall not include cartoons, any likeness to images, characters, or phrases that are popularly used to advertise to children, any imitation of candy packaging or labeling, or the terms “candy” or “candies”. • Packages shall be child resistant until the package is first opened; • “Designed or constructed to be significantly difficult for children under 5 years of age to open or obtain a toxic or harmful amount of the substance contained therein within a reasonable time and not difficult for normal adults to use properly, but does not mean packaging which all such children cannot open or obtain a toxic or harmful amount within a reasonable time.” • Plastic packaging that is at least 4 mils thick and heat-sealed without an easy-open tab, dimple, corner or flap; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-24 • The package shall be labeled with the statement: “This package is not child- resistant after opening” Labelling General Labelling Requirements. ABCanna adheres to, and will insist upon and ensure adherence by its suppliers to, packaging and labeling specifications for information placed on the labels of its products which conform to state and local requirements. Authority: Cal. Code Regs. tit. 16, §5412; Bus. & Prof. Code §26013; see also Bus. & Prof. Code §26120, 26140 ABCanna shall require the following general labeling standards with respect to any item offered for sale. A cannabis product which fails to meet these labelling standards shall not be offered for sale: • The licensed manufacturer and its contact number or website address; • The date of the cannabis product’s manufacture and packaging; • The following warning statement in bold print: “GOVERNMENT WARNING: THIS PRODUCT CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF CANNABIS PRODUCTS 6 IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.” • If the cannabis product is intended for sale in the medicinal use market, the statement “FOR MEDICAL USE ONLY”; • List of all product ingredients in descending order of predominance by weight or volume; • If the edible cannabis product contains an ingredient, flavoring, coloring, or an incidental additive that bears or contains a major food allergen, the word “contains,” followed by a list of the applicable major food allergens; • If an edible cannabis product, the amount, in grams, of sodium, sugar, carbohydrates, and total fat per serving; • Instructions for use, such as the method of consumption or application, and any preparation necessary prior to use; and • The product expiration date, “use by” date, or “best by” date, if any; and fl The UID and, if used, the batch number. Authority: Cal. Code Regs. tit. 16, §5412; Bus. & Prof. Code §26013; see also Bus. & Prof. Code §26120, 26140 Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-25 Primary Panel Labelling Requirements. ABCanna shall not offer any item for sale if the primary panel label fails to meet the following standards: • In no less than 6-point font, the label must state the identity of the product in a text size reasonably related to the most prominent printed matter on the panel. • The label must contain the following universal symbol: • No smaller in size than half (.5) inch by half (.5) inch and • Printed legibly and conspicuously. • For packaging that is in dark color, the symbol may be made conspicuous by printing the symbol on, or outlining the symbol with, a contrasting color. • The label must state the net weight or volume of the contents of the package. • The label must state the THC content and CBD content for the package in its entirety, expressed in milligrams per package. • The primary panel of an edible cannabis product shall include *: • The words “cannabis-infused” immediately above the identity of the product in bold type and a text size larger than the text size used for the identity of the product, and; • The THC content and CBD content per serving, expressed in milligrams per serving. *Authority: Cal. Code Regs. tit. 16, §5412; Bus. & Prof. Code §26013; see also Bus. & Prof. Code §26120, 26140 Identification Of Non-Conforming Labels. ABCanna shall not offer an item for sale if the label is deemed non-conforming when provided by the licensed distributor. The following reference guide is to be used for identifying non-conforming labels. • Claims that the cannabis product that was produced from cannabis grown in a California county, unless 100% was grown there. • The name of a California county, including any similar name that is likely to mislead consumers as to the origin of the product, unless the cannabis used in the product was grown there. • Content that is or designed to be attractive to individuals under the age of 21, including but not limited to *: • Any likeness to images, characters, or phrases that are popularly used to advertise to children; • Any imitation of candy packaging or labeling; or • The terms “candy” or “candies”; • Any information that is false or misleading; • Any health-related statement that is untrue or misleading. *Authority: Cal. Code Regs. tit. 16, §5412; Bus. & Prof. Code §26013; see also Bus. & Prof. Code §26120, 26140 Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-26 Miscellaneous Quality Control Requirements Edible Product Labelling Requirements • The edible cannabis product shall not be designed to be appealing to children or easily confused with commercially sold candy or foods that do not contain cannabis. • The edible cannabis product shall not contain more than ten (10) milligrams of THC per serving. • The edible cannabis product shall not contain more than one hundred (100) milligrams of THC per package. • Edible cannabis products that consist of more than a single serving shall either be: • If the product is in solid form, scored or delineated to indicate one serving or • If the edible cannabis product is not in solid form, packaged in a manner such that a single serving is readily identifiable. • Each serving of an edible cannabis product in a multi-serving package shall be homogenized to contain the same concentration of THC. *Authority: Cal. Code Regs. tit. 16, §§5412; Bus. & Prof. Code §26013; see also Bus. & Prof. Code §26120. Cal. Code Regs. tit. 17, §40408 Topical Cannabis Products & Concentrate Restrictions • Adult-use non-edible products shall not contain more than 1,000 mg of THC per package. • Medicinal non-edible products shall not contain more than 2,000 mg of THC per package and shall be labelled with the following statement: “FOR MEDICAL USE ONLY”. • Topical cannabis products shall only contain ingredients permitted for cosmetic manufacturing in accordance with Title 21, Code of Federal Regulations, Part 700, subpart B (section 700.11 et seq.) iii. Inventory Control Procedures Inventory management is of critical importance to ABCanna. ABCanna currently anticipates using BiotrackTHC as their Point of Sale (“POS”) system and inventory management control system. BiotrackTHC utilizes a cloud-based state of the art inventory control system that tracks all inventory, consumables, non-consumable items, vendor profiles, payments, staff, and any disposal of cannabis goods. ABCanna shall order UID tags within five (5) business days of receiving access to the track and trace system. The receipts of the UID tags by the licensee shall be recorded in the track and trace system within three (3) business days of receipt. ABCAnna shall input all inventory into the Metrc system no later than thirty (30) days after receipt of the UID tags. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-27 ABCanna will maintain a record of clear and unbroken chain of custody of all cannabis products at all stages from receipt through sale to a licensed distributor. Physical inventory counts and reconciliations against BiotrackTHC will be done on a monthly basis in addition to scheduled inventory checks that will be performed. ABCanna will preserve all required inventory records in a manner that allows the records to be produced for the Department of Public Health at the licensed premises in either hard copy or electronic form upon request. Receipt of Shipments Of Cannabis Goods ABCanna shall receive shipments of cannabis or cannabis material only from State of California licensed commercial cannabis businesses. ABCanna will maintain an accurate record of its inventory by logging required information upon receipt of cannabis goods, which shall be kept and maintained for a period of seven (7) years minimum and which will be provided to the Department of Public Health Manufactured Cannabis Safety Branch (“CDPH” or “MCSB”) with records of inventory documentation upon request. When cannabis material is first received by ABCanna, it will be logged into the Metrc software and receive a corresponding SKU. ABCanna shall keep a record of the following information, in BiotrackTHC and either through template log sheets or receipts, for all the cannabis goods ABCanna receives into inventory: (a) A description of each item such that the cannabis material or goods can easily be identified; (b) An accurate measurement of the quantity of the item; (c) The date and time the cannabis goods were received by ABCanna; (d) The name and license number of the licensee that delivered the cannabis goods to ABCanna; (e) The name and license number of the distributor that provided the cannabis goods to ABCanna; (f) The price paid by ABCanna for the cannabis goods, including taxes, delivery costs, and any other costs, and; (g) Where on the premises the cannabis product will be stored. Inventory Documentation ABCanna is dedicated to maintaining an accurate record of its inventory. Each plant material and manufactured product is assigned a unique barcode and numerical identifier will be logged into BiotrackTHC and receive a corresponding SKU. ABCanna shall keep a record of the following information, in BiotrackTHC and either through template log sheets or receipts, for all the cannabis goods ABCanna receives into inventory: Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-28 (a) A description of each item such that the cannabis goods can easily be identified (i.e. packaging description or net weight of prepackaged units); (b) An accurate measurement of the quantity of the item; (c) The date and time the cannabis goods were received by ABCanna; (d) The sell-by or expiration date provided on the package of cannabis goods, if any; (e) The name and license number of the licensee that delivered the cannabis goods to ABCanna; (f) The name and license number of the distributor that provided the cannabis goods to ABCanna; (g) The price paid by ABCanna for the cannabis goods, including taxes, delivery costs, and any other costs, and; (h) Where on the premises the cannabis product will be stored. Unless otherwise specified, all transactions must be entered into BiotrackTHC within 24 hours of occurrence. BiotrackTHC also allows ABCanna to create and access vendor profiles, record payments, track batches, categorize cannabis and cannabis products, easily create labels for every unit with product name, brand, cultivator, distributor barcode, category, weight, cost price and description. Furthermore, each cannabis product also has a detailed table of values such as: sales price, daily limits, retail sales price, price per gram, purchase total price, and quantity of units. Record of Sales Through the electronic tracking software, ABCanna shall maintain an accurate record of sales for every sale made to a licensed distributor. Sales invoices, receipts, and documentation for data or information entered into the track and trace system shall be maintained for at least (7) years from the date of purchase. For each cannabis sale, a record of the following information shall be maintained: (a) Name, address, and license number of the seller; (b) Name, address, and license number of the purchaser, (c) Date of sale or transfer and invoice number; (d) Description or type of cannabis or cannabis product; (e) Weight or quantity of cannabis or cannabis product sold or transferred; (f) Cost to the purchaser of the cannabis or cannabis product; Reconciliation and Accuracy The Management Team is responsible for the reconciliation of all cannabis goods. ABCanna will reconcile the total physical inventory of cannabis goods with the records in the Metrc database at least once every thirty (30) days. To reconcile, a member of the Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-29 management team must confirm that the physical inventory matches the records pertaining to the inventory. The result of the inventory reconciliation conducted pursuant to this section shall be documented and retained as set forth in these operating procedures. As part of the reconciliation protocol, a member of the Management Team shall conduct product counts and determine if discrepancies are due to administrative error or product loss. After inventory reconciliation, the digital inventory in BiotrackTHC should exactly match physical inventory on the sales floor and in the back-stock. Reports should include detailed notes for all authorized adjustments and conversions. Reconciliation reports shall be signed and dated by the supervisor/on-site manager overseeing the inventory reconciliation. Significant Discrepancies in Reconciliation If ABCanna finds a discrepancy between the physical inventory, and BiotrackTHC or any track and trace system database in use, ABCanna shall conduct an investigation, an audit, and notify the Department of Public Health and law enforcement if the audit reveals a discrepancy that is not within five percent (5%) of the documented inventory. Evidence of Theft, Diversion, or Loss If ABCanna identifies any evidence of theft, diversion, or loss, ABCanna shall notify the CDPH MCSB and law enforcement within twenty (24) hours of the discovery of: 1. A discrepancy that is not within five (5%) percent of the documented inventory; 2. Diversion, theft, loss, or any other criminal activity pertaining to the operations of ABCanna; 3. Diversion, theft, loss, or any other criminal activity of any agent or employee of ABCanna pertaining to the operations of ABCanna; and 4. Loss or unauthorized alteration of records related to cannabis goods, customers, or employees/agents of ABCanna. iv. Extraction Process, Equipment, Manufacturing Space Extracting Process & Manufacturing Operation. ABCanna will utilize multiple extraction technologies, methods, and equipment to extract the critical compounds from cannabis plants to produce cannabis products. The types of cannabis products produced are oils, tinctures, gel caps, balms and creams. Since no method is perfect for cannabis extraction in every way, ABCanna will utilize multiple extraction technologies, described below. High Production Extraction System. This process efficiently extracts botanical oils without thermal degradation at industry-leading processing rates. System utilize Dual-Phase Pumping System – a liquid pump that allows for high CO2 flows at higher pressures and Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-30 the Diaphragm Compressor Technology gas pump for energy efficiency and cold separation, these systems will provide high production with a wide range of processing options for supercritical and subcritical extractions. The system can process up to 240 lbs of decarboxylated cannabis per day and uses 3-phase 208v, 230v, 460v. Equipped with CO2 storage tank. Utilizing subcritical and supercritical CO2, systems offer high-capacity, high-production operations with fast, efficient extractions of botanical oils without thermal degradation. The 5000psi Production Series is equipped with the patent-pending Dual-Phase Pumping System which combines a liquid pump allowing for high CO2 flows at higher pressures with the Diaphragm Compressor Technology gas pump for energy-efficiency and cold separation. Equipment Includes: • Rosen Roller • Short Path Distillation Equipment x 2 • VC99 Packaging Wrapping • 700L Azoth CO2 Extractor • Bubble Magic - Hash Rosin Press • Vacuum Pump x 2 • Rotavapor and Recirculating Chiller • Overhead Mixing Fume Hood Main Features: • Fully automated • Highest yield per hour • Ideal for high-volume production • Most versatile – runs subcritical and supercritical • Dual-Phase Pumping System (liquid and gas) • Multiple 3-phase power options • Valveless Expansion Technology • Widest supercritical range Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-31 Mechanical Separation. In this process, the plant material is flash frozen in liquid nitrogen and then manually sifted through a series of nylon extracting bags that will separate particles based on the cascading screen size of each bag. The process can occur under dry conditions or in an ice water bath. Trichome recovery typically occurs above 150 microns. Plant material will be trapped below 150 microns. Extracted trichomes can be further extracted into oils and can be decarboxylated for patient use. Winterization. removes impurities like fats, lipids and waxes from the extracted oleoresin. This is an important step as these impurities will impact; 1) Potency since cannabinoid potency is a function of percent weight and if extraneous plant material is present, it will add mass and detract from concentration; 2) Wax and lipids will add a soft, malleable characteristic to the product and can negatively affect some patient’s respiratory system. This process involves four basic steps including; • Dissolving the oleoresin in a solution of warm ethanol. • Freezing the extract/ethanol solution to -40°. • Filtering the plant lipids and waxes using a vacuum pump, Buchner funnel, and filter paper. • Purging off the ethanol using a rotary evaporator. Fractional Distillation. is the process of using controlled temperature and extreme vacuum to separate constituents of a solution by boiling point. This is achieved in the laboratory by using a short path distillation apparatus to separate cannabinoids and terpenes from any impurities in the oil (chlorophyll, waxes, fats, etc.). Once separated, individual cannabinoids and terpenes can be directly formulated into products, or they can be used to augment the cannabinoid or terpene concentration of products. Column Chromatography. can be used for the separation of cannabinoids and terpenes in the extracted oleoresin without the use of high temperature and pressure thereby preserving temperature-sensitive compounds. Instead, column chromatography utilized chromatographic resins and reagents can be used to separate temperature and pressure sensitive cannabinoids and terpenes from extracted oleoresins via molecular weight. Once extracted, pure cannabinoids and terpenes can be directly formulated into products, or they can be used to augment the cannabinoid or terpene concentration of products. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-33 render the cannabis goods into cannabis waste by grinding and incorporating the cannabis goods with other ground material so that the resulting mixture is at least 50% non-cannabis material by volume. ABCanna shall render cannabis goods into cannabis waste and track that cannabis waste one batch at a time and shall not commingle different batches into cannabis waste. ABCanna shall render the cannabis goods into cannabis waste on camera. ABCanna will only dispose of cannabis goods or cannabis waste in a secured receptacle, or in a secured area on the licensed premises. All waste disposed of must be recorded in the Waste Disposal Log. The Waste Disposal Log shall include: • A description of and reason for the cannabis being disposed of, including if applicable, the number of failed or unusable cannabis plants; • The date of disposal; • Confirmation that the cannabis was rendered unusable before disposal; • The method of disposal; and • The agent responsible for disposal. Cannabis goods that ABCanna deposits at a compostable materials handling operation or facility or at an in-vessel digestion operation or facility may be rendered cannabis waste by incorporating any nonhazardous compostable material, that a compostable materials handling operation or facility or in vessel digestion operation or facility may lawfully accept. After ABCanna renders the cannabis goods into cannabis waste, ABCanna shall have collection and processing performed by either a waste hauler or contracted by a local agency, or a private waste hauler permitted by a local agency. In the event ABCanna hires a local agency, a waste hauler franchised or contracted by local government, or a private waste hauler to collect and process cannabis waste, ABCanna shall do the following: 1) Provide the State Department of Public Health MCSB with the name of the entity hauling waste; 2) Obtain documentation from the entity hauling the waste that indicates the date and time of each collection of cannabis waste at the licensed premises; 3) Obtain a copy of the certified weight ticket, or other documentation prepared by the entity hauling the waste confirming receipt of the cannabis waste at a solid waste facility. ABCanna shall use the Metrc system and onsite documents to ensure the cannabis-waste materials are identified, weighed, tracked while on licensed premises and when disposed of or collected in accordance with the procedures specified above. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-34 ABCanna shall enter the date and time that the cannabis goods were rendered into cannabis waste and the weight of the resulting cannabis waste into the Metrc system. ABCanna shall maintain accurate and comprehensive records regarding cannabis waste material that account for, reconcile, and evidence all activity related to the generation and disposal or deposition of cannabis waste. ABCanna shall obtain a record from the solid waste facility or operation evidencing the acceptance of the cannabis waste material at the facility or operation. The record must contain the name and address of the operation or facility, the date, the volume or weight of the cannabis waste accepted, and the name and signature of the person manning the facility or operation who accepts the cannabis waste. ABCanna shall enter the date and time of the disposal or collection of the cannabis waste at a solid waste facility into the track and trace system. Cannabis Waste Labeling. All Cannabis waste will be stored in a locked bin, inside a designated area within the premises marked “Cannabis Waste”. The facility will affix to each cannabis waste batch one or more documents/labels that will include batch information and weight. At no time during the 72-hour hold period may the cannabis be handled, moved, or rendered into cannabis waste. Cannabis Waste Transportation. All cannabis waste will be weighed and stored in a secure area in the facility. The waste will be in locked containers marked “Cannabis Waste” only authorized personnel will have access to this area of the facility. Prior to collection of the waste, the cannabis waste will be weighed and entered into our track and trace software. The waste will then be collected and transported by a licensed cannabis waste hauler. Upon completion ABCanna will obtain proper documentation showing the waste was received by the waste facility. 1.9. Daily Operations for Cultivation As noted above, ABCanna places the highest emphasis on staff safety as well as product quality and security. Ours will be a non-public facility and no customers or unauthorized personnel will be onsite at any time. We outline our process to uphold standards specific to the cultivation processes below. 1.9.1 Criteria for Cultivation Operations Deliveries All cultivation inventory deliveries, including all seedlings and immature plants, will be scheduled in advance with a facility manager to be received in a defined delivery area on the premises. Security guards will be made aware of any pertinent delivery schedules and confirm the credentials of the delivery driver upon arrival. No unscheduled or ad-hoc deliveries of plants will occur. If the driver’s credentials are authenticated, the delivery driver will be met onsite by the facility manager on duty at a defined area where each item Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-35 will be immediately weighed and taken through quarantine and registration according to METRC. Only an ABCanna manager can sign off on the receipt of any delivery. Cultivation Inventory Management On a weekly basis, the Lead Cultivator or designee will conduct a comprehensive inventory of all plants in various stages within the cultivation/grow area. This will include seeds, immature seedlings, clones, vegetative plants, flowering plants, harvested plants, cured plants, etc. • Cultivation inventory will be broken down by room: o Propagation/Cloning and Seed Storage o Mother Room o Vegetation Room o Flowering Greenhouses o Cultivation Inventory o Soil Storage o Dry/Cure o Processing/Trimming Quality Assurance/Compliance Inventory Management On a weekly basis, the Quality Assurance/Compliance Manager or designee will be responsible for conducting a comprehensive inventory of the following areas: • Vault o Finished product ready for sale o In process product pending registration or final packaging o Quarantined products: returned product, defective products not suitable for sale, expired products, etc. o Retain and Stability products • Components o Packaging materials o Labels • General facility supplies Tracking Gross Sales All financial records will be maintained in Quickbooks. Quickbooks is an industry leading business software that tracks inventory, gross sales, returns, and discounts. Established Security Policies and Procedures ABCanna will ensure completeness and integrity of required documentation, required elements in manual and electronic forms of documentation (inventories, transport, cash handling), surveillance findings and actions, discrepancy investigations, and reports to relevant authorities. These documents will be readily retrievable. Regular Auditing of Processes and Transactions Security audits will occur quarterly when operations begin initially. Findings will be documented as Corrective Action and Preventive Actions (CAPAs) in the Quality Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-36 Management System. Once the audit findings drop to an acceptable level with respect to CAPAs, audit frequencies can be annual. Planned Response to Suspected Diversion If diversion is suspected, the Security Manager will meet with the Committee to determine the course of action. A Diversion Prevention Report will be initiated that includes: 1) Diversion Prevention Report for any possible loss of any controlled substance. a) Surveillance will be reviewed and documented. Copies of video surveillance, photos, and access-control incidents will be saved electronically in a secure format. b) Inventory verification will occur – physically and in the electronic and manual systems. c) Employees may be interviewed. d) All activities associated with response will be documented in detail in the report including quantities of potential loss. 2) If diversion is confirmed, the Security Manager will immediately notify local law enforcement and appropriate authorities. Employee Screening Potential employees will be vetted (background checks and/or Livescan) to the satisfaction of the City of Fresno Chief of Police and in compliance City Ordinance. An agreed upon third party will perform the check and results will be shared with the City and the Police Chief and ABCanna as well as with any consultant the City engages to assist with background check reviews. Once the Police Department approves the potential employee, we will proceed with the interview and hiring process. Identification Each person on the premises shall wear his or her personal identification card at a prominent and readily-visible location on the outermost garment and approximately chest- high. Such identification card shall at all times be in good and readable condition. Age of Personnel At no time will anyone under the age of 21 be employed by the business. The ABCanna facility and operation will not be open to the public, we will not have to conduct medical recommendation verification, and youth will not be allowed on site. The doors will remain locked during business hours with only authorized personnel allowed inside the premises. This will ensure that youth may not access the facility. Employee Records ABCanna will maintain on-site a current register of all the employees currently employed and shall produce such register to the City Manager or his/her designee or any other City of Fresno official authorized to enforce the Fresno City Code for purposes of determining compliance. In the event a person changes employment from one commercial cannabis business within the city to another, ABCanna shall notify the City Manager or his/her designee in writing of the change of employment within ten (10) days of such change or Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-37 the work permit shall be suspended or revoked and such person shall not be permitted to work within any commercial cannabis business within the city. All staff will undergo initial and ongoing training according to our SOPs and as defined herein. Training will also include secure facility protocols to ensure against theft and diversion and be documented in the employee file. Onsite Consumption Prohibited Cannabis shall not be consumed on the premises. Loitering Loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises is prohibited. Cultivation Space While most businesses in any industry try to keep startup costs as low as possible, that isn’t necessarily the best way to proceed when opening a grow. Creating a cost-efficient cultivation site often involves investing in technology and processes that may result in a big near-term hit. Yields and quality of plants grown under artificial lights mostly depend on: • the clone variety, • source of clones, • after how many days of growing the plants are put into flowering, and • the optimization of the climatic conditions of the grow-room. Warehouse Design 1. A warehouse environment provides with maximum control, and therefore the most reliable consistent cannabis crops can be produced in a properly designed warehouse grow room. 2. Without natural light, warehouse grow rooms depend on intelligent grow lights which need to replicate the parts of the sunlight spectrum that the marijuana plants need at each stage of growth. Lighting is a key component in an integrated system. 3. Air filtration and circulation systems are essential for controlling heat buildup, and eliminating exhaust odors. It is critical that the air circulation in a marijuana warehouse is designed in conjunction with the grow lights because lighting systems emit large amounts of heat. 4. There are various irrigation systems for growing cannabis appropriate for growing in a warehouse: including drip irrigation, hydroponic flood benches, or trough benches. 5. The irrigation system should be designed in conjunction with a nutrient management system for maximizing the production yield of the cannabis plants. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-39 • Timely inputs Our company will grow from seeds/clones of the following strains (among others): • Proxima OG (THC) • Honey Trees (THC) • Gas Valley OG (THC) • MEOW (THC) • Amaretto (CBD:THC) • Mimosa (THC) • Kobe (THC: THCA) • Slugger (THCA) • Blissful Wizard (THC:CBD) • Blue Bacio Gelato (THC: CBG) • Fred's Haze (CBD:THC) Phases of Production Germination of seeds, gendering plants, male/female, or feminized plants (10 weeks) • 1st stage: taking and rooting clones (2 weeks) • 2nd stage: clone/vegetation (1 week) • 3rd stage: vegetation (2 weeks) • 4th stage: flowering (8 weeks) • 5th stage: processing/trimming (3 days) • 6th stage: drying and curing (11 days) • Total elapsed time: approximately 15 weeks ABCanna will have the ability to vegetate plants and flowers concurrently, will grow up to 11 different strains of cannabis, and will have the ability to grow from seedling to finished Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-40 product. ABCanna intends to also grow additional exclusively created strains that other growers do not have. Estimate Pounds per Harvest The cultivation premises will be permitted up to 2,885 sq. ft. of canopy and will be adequate to house and grow up to 4,000 plants. Once the mother plants are producing and the clone plant facility is fully operational, it is feasible that a harvest of 234 pounds of cannabis can be produced 3-5 times per year. Cultivation Style Our unique style entails the use of veganic inputs into the soil by properly fermenting fruits and plants to help promote healthier, tastier, and more potent flowers. Taking a page out of the wine industry book, and with ethical testing on terpenes, we now know cannabis flowers contain brix levels, or sugar content. Timely adding ferments while using the mycelium web gives the microbiology complete control of the overall health of the plants, thus, reducing chances of any molds, mildews, and pesticides. Our efficient design will consist of an environmental controller that controls all fans, shutters, and pumps. Our unique and efficient design is designated for one concept in particular, and that’s to establish perpetual harvests, every month. Quality and consistency is the core value in establishing the bridge between our distribution partners. With full automation and environmental control, we give ourselves the best opportunity to successfully harvest top quality cannabis at the most competitive price. The project will utilize direct light within a warehouse design. A warehouse environment provides with maximum control, and therefore the most reliable consistent cannabis crops can be processed in a properly designed warehouse. Air filtration and circulation systems are essential for controlling heat buildup and eliminating exhaust odors. It is critical that the air circulation in a cannabis warehouse is designed in conjunction with the surrounding elements. De-humidification will be used to optimize drying environment along with proper medical grade equipment to reduce chances any spores or pathogens to enter the facility. Cultivation Grow Cycles From a high-level perspective, cannabis plants undergo two distinct phases of growth: vegetative and flowering phases. The cultivation environment will obtain inventory from the nursery environment following the Stage 1 vegetative growth. Refer to Exhibit 11, Cultivation Lifecycle. During each phase of growth, all activities related to a batch of plants will be tracked in a lot-specific batch record. Plant Phases of Growth Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-42 In both cases the wastewater from the system itself is minimized as the water is reused or only mixed according to the feeding schedule at hand. The largest amount of water waste comes from the reverse osmosis purification system that has a 1:1 ratio of wastewater to clean. Cultivation Waste Products (type, amount), Handling Chemicals used in the cultivation process will be handled according to OSHA standards and referenced via the MSDS. Chemicals used in the cultivation process will be disposed of according to appropriate regulatory controls. 
 Cannabis waste in various forms will be stored, secured, locked, managed and disposed of in accordance with state and local regulations. Controlled waste practices will be under the direct supervision of the Security Manager. The Security Manager will have direct control over all waste receptacles. The Security Director will achieve this by placing locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render cannabis products to a non-retrievable state in avoidance of diversion and illegal purposes. The following forms of cannabis can be disposed of through acceptable forms of destruction: • Plant waste: stems, stalks, leaves, inflorescence ABCanna shall use one or more of the following forms of disposal: • Grinding and Composting • Incineration • Cultivation Release into City Sanitary Sewer The wastewater from the reverse-osmosis system is released into the sewer and the limited amount of isopropyl alcohol is released into the sewer according to city ordinance. 1.10. Irrigation Plan Water usage in the cultivation environment leverages the use of reverse-osmosis filtration. The organic environment is irrigated by hand using a cycled regimen of nutrient and microbe rich compost teas and pure mineralized water. The hydroponic environment uses a deep-water-culture system in which a large reservoir of nutrient and oxygen rich water is continuously circulated throughout a network of plant growing sites. In both cases the wastewater from the system itself is minimized as the water is reused or only mixed according to the feeding schedule at hand. The largest amount of water waste comes from the reverse osmosis purification system which has a 1:1 ratio of wastewater to clean. Cultivation Waste Products (type, amount), Handling Chemicals used in the cultivation process will be handled according to OSHA standards and referenced via the MSDS. Chemicals used in the cultivation process will Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-43 be disposed of according to appropriate regulatory guidelines. Cannabis waste in various forms will be stored, secured, locked, managed and disposed of in accordance with state and local regulations. Controlled waste practices will be under the direct supervision of the Security Manager. The Security Manager will have direct control over all waste receptacles. The Security Director will achieve this by placing locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render cannabis products to a non- retrievable state in avoidance of diversion and illegal purposes. The following forms of cannabis can be disposed of through acceptable forms of destruction: • Plant waste: stems, stalks, leaves, inflorescence ABCanna shall use one or more of the following forms of disposal: • Grinding and Composting • Incineration Cultivation Release into City Sanitary Sewer The wastewater from the reverse-osmosis system is released into the sewer and the limited amount of isopropyl alcohol is released into the sewer according to city ordinance. Safety Considerations and Mitigation for Cultivation Operations ABCanna takes the safety of our employees, partners and consumers very seriously. There are comprehensive SOPs in place for every phase of the cultivation process and policies for safety and sanitation within the environments. All employees are trained on these SOPs and relevant MSDS information during initial orientation as well as annually as part of the Quality Management System in place. All employees wear personal protective equipment (“PPE”) when in any cultivation environment to minimize exposure to the plants and minimize contamination of the plants by foreign objects, pests, or disease. PPE refers to protective clothing, gloves or equipment designed to protect the wearer’s body from injury or infection. Furthermore, pursuant to the California Occupational Safety and Health Act of 1973 and Title 8 of the California Code of Regulations, ABCanna will implement the following policies and procedures to ensure Employee Safety and Hygiene compliance: • Establish, implement and maintain a written Injury and Illness Prevention Program (IIPP) and update as necessary with advance written notice of all changes to employees • Implement employee orientation and training programs with applicable workplace safety and health training programs; • Employees shall at all times wear appropriate clothing - including gloves, footwear, and PPE; • Inspect workplace(s) to identify and correct unsafe and hazardous conditions; Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-44 • Make sure employees have and use safe and tools, equipment, and machinery, as well as properly maintain such tools, equipment and machinery; • Provide and pay for personal protective equipment; • Use color codes, posters, labels or signs to warn employees of potential hazards; • Establish and update, as necessary, any and all operating procedures and provide training, education and workshops, as necessary to ensure employees follow these safety and health requirements; • Provide medical examinations and training when required by Cal/OSHA standards; • Immediately report any work-related death or serious injury or accident; • Keep records of work-related injuries and illnesses on the log 300, transfer the totals to the log 300A, and post the log 300A from February 1 through April 30 of the following year; and • Post, at a prominent location within the workplace, the Cal/OSHA poster informing employees of their rights and responsibilities. Testing Whenever possible, ABCanna will purchase lot-traceable materials for all inputs to any products – this is true for all soil and fertilizers in the cultivation environment. Documents such as Certificates of Conformance or Compliance that are received from suppliers in support of the purchase good’s quality, composition, and purity will be tracked and filed by the quality assurance representative according to ABCanna’s record retention policy. All cannabis moved through the supply chain will be tested at multiple checkpoints throughout the process: Cultivation – License Type 3A a. ABCanna only leverages plant stock from our onsite propagation to ensure consistency and preservation of the target genetic profiles (chemotypes and phenotypes). b. Product is tested using 3rd party licensed laboratory analytical capabilities upon harvest and following dry/cure procedures. These test results are tracked according to date, batch, cultivar and filed by the quality assurance representative according to ABCanna’s record retention policy. Enhanced Product Safety All products will undergo state-mandated Quality Assurance Testing prior to the sale at a retail location. ABCanna will utilize the Metrc program in order to report the movement of cannabis and cannabis products throughout the distribution chain. Products shall be labeled and placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-45 cannabis and cannabis products. All packages and labels shall not be made attractive to children. Products will also be packaged and labeled in accordance with all regulatory requirements outlined in the Emergency Regulations published by the Bureau of Cannabis Control, Department of Agriculture’s CalCannabis Division, and the Department of Public Health’s Manufactured Cannabis Safety Branch. Any product complaints shall be logged and reported in accordance with the state- mandated Metrc program which shall ensure proper movement of the product through the distribution chain. Any such complaints shall be logged and reported in the system thereby notifying proper state and local authorities of any product issue/s. If at any time the Metrc system is interrupted or inaccessible, a physical comprehensive record shall be maintained in accordance with applicable state reporting requirements. Product complaints will be properly investigated by our team and shall be reported as necessary to the proper state and local authorities. Moreover, a written record of the complaint and where applicable its investigation will be kept by the team, including: the identity of the product or products complained of; batch, lot or other control number of the product; date the complaint was received and the name, address, or telephone number of the complainant, if available; nature of the complaint including, how the product was used; name of the team members who handle the complaint and following steps, if necessary; findings of the investigation and follow-up action taken when an investigation is performed; and response to the complaint, if applicable. Any cannabis or cannabis products which fall outside of compliance shall be properly destroyed in accordance with state law and regulations relating to the disposal of cannabis waste. Odor Control The facility will be equipped with odor control devices and techniques including sufficient odor absorbing ventilation, an exhaust filtration system, and a negative air-pressure system so that odor generated inside the facility that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior, or within any other unit located inside the same building as the commercial cannabis business. ABCanna will maintain the following equipment: 1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; 2) An air system that creates negative air pressure between the interior and exterior building area so that the odors generated inside the commercial cannabis business are not detectable on the outside of the building. 3) All ventilation from manufacturing and cultivation will pass through a series of HEPA, charcoal and Syneco filtration or similar systems. The ventilation is used primarily for exhaust of gases used during manufacturing and scrubbing of any odors generated from the cultivation environments. These airflow systems work in conjunction with our climate control systems and abide by ISO 7 and 8 regulations. The hoods used for preparation will feature industrial odor control filtration system from Synecosystems.com 4) HEPA stands for High-Efficiency Particulate Arresting Filter. HEPA is a certification standard that means the filter meets criteria for filtering at least Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-46 99.97% particles of 0.3 microns in size and other criteria set by the US Department of Energy. These filters are industry standard in medical and quality industrial sites. HEPA filtration is mandatory to abide by pharmaceutical ISO 7/8 standards. Cultivation Odor Control Each room where plants are cultivated shall be equipped with 2 Phoenix Guardian HEPA Air Scrubbers - #PH-GHS2-EA that provide the following specifications: • < 1,400 CFM • 4 stage filtrations • 110-120 VAC 12 Amp • Stainless steel housing • 4th stage is carbon Where odors are significant, a 2nd tier odor mitigation system from Syneco Systems will be implemented in the exhaust path. The 1,400 CFM capacity of the Phoenix Guardian HEPA Air Scrubber System allows it to completely change the air in a 14' x 14' room in four minutes. To be this effective, air scrubbers must perform a minimum of four air changes per hour. This allows a single Guardian to control up to 21,000 cubic feet of air volume in room. The Guardian Air Scrubber offers high airflow and multiple ducting options, achieving a combination of negative or positive airflow control and containment air scrubbing. This gives the unit the unique ability to continually filter indoor air while depressurizing a damaged site. The result is that the spread of contamination is almost non-existent. The intake accepts either 18" flex-duct or 12" flex-duct with an adapter (included) to contain contamination or draw contaminated air from hard-to-reach places not usually accessible to air scrubbers. Every Guardian HEPA System comes with a 14-inch, lay-flat duct ring, offering 100% negative air operation, and two 10-inch lay-flat duct rings for a combination of negative air, air scrubbing, or positive airflow results. Distribution and Transport Odor Control Our distribution and transportation functions should not incur any odor that will not be managed utilizing the overall facility’s odor control and ventilation system. Waste Management Cannabis waste will be stored, secured, locked, managed and disposed of in accordance with the requirements of the City of Fresno, the Fresno County Solid Waste Authority, and the State of California. Waste that is stored for any amount of time will be secured separately on the premises from any other operations. Controlled waste practices will be under the direct supervision of the Security Manager. We will have locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render any cannabis waste products to a non-retrievable state to prevent Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-47 diversion and to discourage any perception that useable cannabis product is leaving the facility. The following types of cannabis waste will be disposed of from our facility through acceptable forms of destruction that make them irrecoverable: • Plant waste: roots, stems, stalks, fan leaves, inflorescence • Finished products: in bulk form or in packaged form • Quarantine/returned products ABCanna will sort the waste into the above categories and use one or more of the following forms of disposal: • Incineration • Grinding and Composting • Standard Refuse and Recycling Services Incineration Waste intended for incineration or destruction through a third party will be logged, stored, and maintained in a secure area. Products for destruction by third party incineration are logged out of the facility as waste. Products deemed inorganic and unable to undergo decomposition, such as products irretrievable from their packaging, are suitable for incineration. This also includes quarantined products returned from dispensaries, expired products irretrievable from their packaging containers, or products with cannabinoid concentrations exceeding or meeting the defined limit that cannot be reworked. Grinding and Composting Organic cannabis waste intended for grinding and composting shall be placed into an industrial grinder or chipper (if necessary). From there, the material will be placed into a secured and controlled container with a layer of manure, wood chips and/or paper and thoroughly mixed to render it irrecoverable for theft, loss, and diversion. This container will be locked and under the direct supervision of the Security Manager. The Security Manager will escort employees to the container and unlock it to allow access. Not all organic waste will need to pass through an industrial grinder or chipper prior to being composted. Only organic materials capable of decomposition shall be placed into the compost container. This includes, but is not limited to the following: • Plant Material (plants at any stage, roots, stems, stalks). • Immediately after harvest, roots, stems, and stalks will be transferred to the Waste Management Area located in the Secured Storage area. The area will be fenced, locked, and access controlled. Note: The Waste Management area will be located with a limited access area for an added measure of security. • For processing, the material will be transferred to a grinder/chipper located within the Waste Disposal area and ground with leaves, manure, and other approved compostable material leaving the resulting mixture at least 50% non- cannabis waste by volume. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 1-51  Liquid Fertilizers • Fish Hydrolysate • Calcium / Magnesium Supplement • Liquid Guano • Yucca Extract  Hydroponic Cultivation • Cultured Solutions Nutrient Suite – Between 10-30 gallons onsite at any given time. • Roots • Veg A&B • Bloom A&B • Bud Booster  Integrated Pest Management – between 5-20 gallons onsite of each product at any given time. • Neemix – Organic certified Certis neem oil product for insect and fungal control • PFR97 – Organic certified Certis biological insecticide product • Silicic Acid – OSA28 product to prevent fungal disease • Stylet Oil – Organic certified Mineral oil product for insect and fungal control • Procidic – manu certified Citric acid based product for fungal and disease control (listed for cannabis crop usage)  General Cleaning – up to 5 gallons of each onsite at any time. • Isopropyl Alcohol • Physan20 • Hydrogen Peroxide -End of Section 1- Commercial Cannabis Business Permit 1828 Mary Street ABCanna 2-4 team with a solid leader well versed in all aspects of cultivating mixed-light cannabis within a safe and secure facility with every attention to worker safety and well-being at all times. Our Master Cultivator, Manufacturing Specialist and Distribution Representative will report directly to the Operations Manager and will be responsible to ensure our Cultivators, Propagation Specialist and Trimming/Packaging teams are on track and operating in strict accordance with all safety and cannabis-specific track and trace protocols. 2.7 Labor Peace Agreement ABCanna intends to employ more than five (5) employees and will provide all hired employees proof of a signed labor peace agreement that would allow employees to unionize within the industry without interference. 2.8 Workforce Plan Our workforce plan is focused on maximizing the benefit that ABCanna can bring to the City of Fresno. 2.8.1 At least 30% of our employees will be local hires. As our management structure is comprised of locals within the larger community of the Fresno area, we are well suited to conduct outreach for employees that are interested in being a part of a truly locally run business. 2.8.2 As part of our workforce plan, we intend to offer on the job training to benefit our employees so that they will be able to learn the industry beyond their stated job description and apply those skills beyond our operation. Our entry-level cultivation staff will learn the science behind cannabis cultivation and come to understand the vital importance of plant health, care, and maintenance from seed to harvest. For staff showing interest and aptitude, ABCanna will foster an apprenticeship program and assist employees in pursuit of career advancement opportunities. In addition, as our operational structure includes business connections with every aspect of this business, we will endeavor to create a transfer apprenticeship program where our cultivator may do an internship at a dispensary, outdoor farm, or manufacturing facility in order to receive cross-training and gain valuable training on other aspects of the business. 2.8.3 As stated above in Section 2.1, ABCanna is committed to providing a living wage to all staff. 2.9 Social Equity Business Support ABCanna is well-suited to serve as a Social Equity Business Incubator for local cannabis social equity businesses. Our management team prides themselves on the mentorship they have exhibited in the community at large, partnerships they have fostered within the business and customer service industries locally, and will bring that positive leadership to the Fresno cannabis industry as well. With successful cultivators on board, close working Commercial Cannabis Business Permit 1828 Mary Street ABCanna 2-5 relationships with other cannabis businesses, and our team’s business acumen, we can offer support in the form of mentorship programs or apprenticeships to assist social equity businesses in successful start-up of their cultivation business. If possible, once established we will also work to provide our purchase power benefits to our local social equity business partners. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-1 SECTION 3. NEIGHBORHOOD COMPATIBILITY PLAN ABCanna will fully redevelop the existing building on Mary St. whilst maintaining excellent relationships with the community and will organize the daily functions to minimize impacts on the neighborhood. 3.1. Complaint Response Plan ABCanna will implement an active neighborhood outreach plan including providing all property owners and tenants within a 500’ radius access to our site manager’s contact information so that concerns can be immediately addressed. In the event of a complaint, our site manager will continue dialog with the affected neighbor to ensure full transparency with our internal processes to address concerns and come to a solution. With the high level of security necessary for operations of this kind, we intend that our presence in the neighborhood will be of benefit to our neighbors by providing more consistent human presence in the area. The facility is not anticipated to create any nuisance related to noise as the internal odor control devices operate within applicable noise limits and the site is located within a primarily industrial area. The facility will be fully enclosed with no internal night lighting from the cultivation facility to be visible from offsite. All security lighting will be downcast so as to not spill onto adjacent properties or cause a nuisance. Our highly developed odor control plan and mitigation devices are intended to prevent cannabis odors from escaping offsite, but in the event that there is a nuisance odor, our site manager will be proactive in identifying system failures and implementing solutions with utmost speed. The fully fenced and secure site will not be a source of litter, and our staff will also ensure that the frontages of the property remain in good condition and free of litter. Our waste management protocols are strict and do not allow for the presence of any litter or visible waste on the premises at any time. Vehicular traffic will be limited to our staff who will all park on the premises within the securely fenced area, and distribution vehicles to facilitate deliveries to and from the site. In the event a traffic safety concern is identified, our staff will make necessary accommodations to ensure our operation is not negatively affecting the neighborhood or causing an undue safety concern. The facility is a non-public and fully secured property and no pedestrian traffic is anticipated other than our staff either in transport to/from work or on breaks. 3.2. Neighborhood Nuisance Avoidance Plan Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-2 ABCanna will establish a state-of-the art facility by renovating the existing building and provide a positive addition to the neighborhood. The goal to provide a new and secure facility yet not draw unneeded attention to the proposed site. There will be no signage that will contain any logos or information that identifies, advertises, or lists the type of business operated within. As seen in other jurisdictions where cannabis facilities have been permitted in industrial and other areas, these projects provide the capability to implement improvements not otherwise able to be realized by local jurisdictions or existing businesses. Onsite Consumption Prohibited. Cannabis shall not be consumed on the premises. Loitering. Loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises is prohibited. Distribution Receiving/Processing. All distribution inventory deliveries are scheduled in advance with a manager and can only be signed off by a manager. Security guards are made aware of any pertinent delivery schedules and confirm the credentials of the delivery driver upon arrival. No unscheduled or ad-hoc deliveries will occur. If the credentials are authenticated, the delivery driver is met by a manager onsite where each item is immediately weighed and taken through quarantine and registration according to the tracking system in place. Any cannabis product taken for distribution will not enter any portion of the facility other than the secure distribution center. Goods will be received in the limited-access Distribution area. Distribution delivery drivers arrive to the premises through the secure gate designated for such vehicles. Cultivation Receiving/Processing. All cultivation inventory deliveries are scheduled in advance with a manager. Security guards are made aware of any pertinent delivery schedules and confirm the credentials of the delivery driver upon arrival. No unscheduled or ad-hoc deliveries will occur. If the credentials are authenticated, the delivery driver is met by a manager onsite where each item is immediately weighed and taken through quarantine and registration according to the tracking system in place. Only an ABCanna manager can sign off on the delivery. Manufacturing. Manufacturing will be limited to one area of the building and conducted within a fully secure and safe production space. No use of volatile chemicals will occur on the property and only non-volatile, low risk manufacturing procedures will be utilized. The manufacturing space will be run by highly qualified technical experts to ensure success of the operation and proper adherence to all licensure occurs at all times. Distribution Transport. The Distribution Manager will supervise the preparation of cannabis goods for shipment by reviewing the purchase orders, retrieving the requested cannabis goods, reviewing the packaging and labeling for regulatory compliance and cross-referencing the corresponding COAs, preparing a shipping manifest, and documenting the removal of inventory into the inventory database software and track- and-trance system. The purchase order, cannabis goods, COAs and shipping manifest will be cross-referenced prior to shipment. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-3 The distribution vehicle will be loaded with cannabis goods in the Distributor parking/loading area. The parking/loading area is secured by a metal security gate, security personnel, and video surveillance cameras. The Distribution Manager, a CPA distribution employee, and security personnel will supervise the loading of vehicles or trailers with cannabis goods. Another CPA employee will monitor the video surveillance cameras while cannabis goods are being loaded into a vehicle or trailer. Cannabis goods will be transported inside a fully enclosed cage. The cage is welded within the frame of the vehicle. The cage remains locked with a lock on it. ABCanna has a dedicated parking/loading area for distribution vehicles/trailers in the distribution premises. The Secured Vehicle Area is secured by a metal gate that is controlled by security personnel. The parking lot is under video surveillance which is closely monitored by the security personnel. The distribution employee transporting the cannabis goods will review the video surveillance footage of the parking lot for any suspicious activity prior to loading the vehicle. A security personnel will visually inspect the adjacent street for any suspicious activity or threats of theft and diversion. The distribution employee will transfer the cannabis goods into the enclosed cage in a dark and unmarked bag. The distribution employee will be accompanied by security personnel while loading the vehicle with cannabis goods and while transporting the goods. 3.3. Odor Mitigation Odor mitigation practices are provided by state of the art systems and controls within the closed and secure warehouse facility. These mitigations are described in detail below in Section 3.5 Odor Control Devices and Techniques. 3.4. Potential Odor Source Identification Potential sources of odor will be limited to the cultivation (flowering) plants and the mother plant room. No odor is anticipated from the distribution facility due to regulatory controls on transport and packaging that restrict ability of the product to emit smell during transport or once packaged for sale. Manufacturing of cannabis is not considered an odor intensive operation specific to the cannabis flower itself, and proposed external and building controls would contain any potential odor within the building. Since the facility will be run with continuous harvest activities, every operational control to ensure no smell is emitted from the facility will be employed. 3.5. Odor Control Devices and Techniques The facility will be equipped with odor control devices and techniques including sufficient odor absorbing ventilation, an exhaust filtration system, and a negative air-pressure system so that odor generated inside the facility that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-4 lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as the commercial cannabis business. ABCanna will maintain the following equipment: 1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; 2) An air system that creates negative air pressure between the interior and exterior building area so that the odors generated inside the commercial cannabis business are not detectable on the outside of the building. 3) All ventilation from manufacturing and cultivation will pass through a series of HEPA, charcoal and Syneco filtration or similar systems. The ventilation is used primarily for exhaust of any gases used during manufacturing and scrubbing of any odors generated from the cultivation environments. These airflow systems work in conjunction with our climate control systems and abide by ISO 7 and 8 regulations. The hoods used for preparation will feature industrial odor control filtration system from Synecosystems.com or similar 4) HEPA stands for High-Efficiency Particulate Arresting Filter. HEPA is a certification standard that means the filter meets criteria for filtering at least 99.97% particles of 0.3 microns in size and other criteria set by the US Department of Energy. These filters are industry standard in medical and quality industrial sites. HEPA filtration is mandatory to abide by pharmaceutical ISO 7/8 standards. Nursery & Cultivation Odor Control Each room where plants are cultivated shall be equipped with 2 Phoenix Guardian HEPA Air Scrubbers - #PH-GHS2-EA or similar that provide the following specifications: • < 1,400 CFM • 4 stage filtrations • 110-120 VAC 12 Amp • Stainless steel housing • 4th stage is carbon Where odors are significant, a 2nd tier odor mitigation system from Syneco Systems or comparable firm will be implemented in the exhaust path. The 1,400 CFM capacity of the Phoenix Guardian HEPA Air Scrubber System allows it to completely change the air in a 14' x 14' room in four minutes. To be this effective, air scrubbers must perform a minimum of four air changes per hour. This allows a single Guardian to control up to 21,000 cubic feet of air volume in room. The Guardian Air Scrubber offers high airflow and multiple ducting options, achieving a combination of negative or positive airflow control and containment air scrubbing. This gives the unit the unique ability to continually filter indoor air while depressurizing a damaged site. The result is that the spread of contamination is almost non-existent. The intake accepts either 18" flex-duct or 12" flex-duct with an adapter (included) to contain contamination or draw contaminated air from hard-to-reach places not usually accessible to air scrubbers. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-5 Every Guardian HEPA System comes with a 14-inch, lay-flat duct ring, offering 100% negative air operation, and two 10-inch lay-flat duct rings for a combination of negative air, air scrubbing, or positive airflow results. Distribution and Transport Odor Control Our distribution and transportation functions should not incur any odor that will not be managed utilizing the overall facility’s odor control and ventilation system. 3.6. Staff Odor Training Plan and System Maintenance All staff will undergo initial site training to include strict performance protocols in regards to odor. Staff will enter the securely fenced facility in street clothes and enter the building where they will be provided clean suits to change into. If staff leaves the premises for breaks or lunch, the employee will doff the work suit so that it remains inside the facility at all times. Strict access controls will be in place for all rooms of the facility, including a requirement that any entry door is closed and sealed prior to opening any interior door within the facility. The highly developed odor systems will be maintained by trained staff and/or equipment service technicians and included regular checks to ensure all systems are in proper working order to prohibit odor from emitting outside of the facility. 3.7. Waste Management Plan All facility waste storage areas will be located away from process/handling areas to prevent cross-contamination and avoid attracting pests. Waste storage areas and containers will be adequate for waste generated between disposal times. Waste storage areas will be cleaned often enough to avoid creating conditions that can cause cross- contamination or attract pests. Containers with lids will be used for the storage of waste until removal. All materials and supplies will be stored in compliance with relevant OSHA regulations for the storage of hazardous materials. Cultivation and Manufacturing Waste Products and Handling Chemicals used in the cultivation and manufacturing processes will be handled according to OSHA standards and referenced via the MSDS. Chemicals used will be disposed of according to appropriate regulatory controls. 
 Cannabis waste in various forms will be stored, secured, locked, managed and disposed of in accordance with state and local regulations. Controlled waste practices will be under the direct supervision of the Security Manager. The Security Manager will have direct control over all waste receptacles by placing locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render cannabis products to a non-retrievable state in avoidance of diversion and illegal purposes. The following forms of cannabis can be disposed of through acceptable forms of destruction: Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-6 • Plant waste: stems, stalks, leaves, inflorescence ABCanna shall use one or more of the following forms of disposal: • Grinding and Composting • Incineration • Water Release into City Sanitary Sewer The wastewater from the reverse-osmosis system if used is released into the sewer. Cannabis waste will be stored, secured, locked, managed and disposed of in accordance with the requirements of the City of Fresno, the Fresno County Solid Waste Authority, and the State of California. Waste that is stored for any amount of time will be secured separately on the premises from any other operations. Controlled waste practices will be under the direct supervision of the Security Manager. We will have locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render any cannabis waste products to a non-retrievable state to prevent diversion and to discourage any perception that useable cannabis product is leaving the facility. The following types of cannabis waste will be disposed of from our facility through acceptable forms of destruction that make them irrecoverable: • Plant waste: roots, stems, stalks, fan leaves, inflorescence • Finished products: in bulk form or in packaged form • Quarantine/returned products ABCanna will sort the waste into the above categories and use one or more of the following forms of disposal: • Incineration • Grinding and Composting • Standard Refuse and Recycling Services Incineration Waste intended for incineration or destruction through a third party will be logged, stored, and maintained in a secure area. Products for destruction by third party incineration are logged out of the facility as waste. Products deemed inorganic and unable to undergo decomposition, such as products irretrievable from their packaging, are suitable for incineration. This also includes quarantined products returned from dispensaries, expired products irretrievable from their packaging containers, or products with cannabinoid concentrations exceeding or meeting the defined limit that cannot be reworked. Grinding and Composting Organic cannabis waste intended for grinding and composting shall be placed into an industrial grinder or chipper (if necessary). From there, the material will be placed into a Commercial Cannabis Business Permit 1828 Mary Street ABCanna 3-7 secured and controlled container with a layer of manure, wood chips and/or paper and thoroughly mixed to render it irrecoverable for theft, loss, and diversion. This container will be locked and under the direct supervision of the Security Manager. The Security Manager will escort employees to the container and unlock it to allow access. Not all organic waste will need to pass through an industrial grinder or chipper prior to being composted. Only organic materials capable of decomposition shall be placed into the compost container. This includes, but is not limited to the following: o Plant Material (plants at any stage, roots, stems, stalks) • Immediately after harvest, roots, stems, and stalks will be transferred to the Waste Management Area located in the Secured Storage area. The area will be fenced, locked, and access controlled. Note: The Waste Management area will be located with a limited access area for an added measure of security. • For processing, the material will be transferred to a grinder/chipper located within the Waste Disposal area and ground with leaves, manure, and other approved compostable material leaving the resulting mixture at least 50% non- cannabis waste by volume. o Leaf and trim material • Leaf clippings and trim material will be stored in a secure location to later be used in the extraction process. • The material will be tracked using the electronic tracking system. • When a sufficient quantity of the leaf and trim material is collected, a homogenous sample will be submitted to the contract laboratory for analysis. • Once the cannabinoid profile is identified, a determination will be made to use the leaf and trim material for extraction, or to compost it as described above under plant material. o Finished products independent from inorganic packaging • Product that has been rendered unsellable or unable to be reworked. • Products could include leaf and trim material or inflorescence material. • Plants in various stages (clone, vegetative, and flowering states) may have to be destroyed for various reasons such as disease or environmental factors. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 4-1 SECTION 4. SAFETY PLAN To make sure we develop a fire protection plan adequate in all of the occupancy categories relevant to a medical cannabis dispensary, we have partnered with Cintas Fire Extinguisher Service & Sales to evaluate our building and assist us in crafting a comprehensive plan. 4.1 Safety Plan Development Fire Safety We fully understand the importance of fire safety for operations. ABCanna will do its best to learn from other examples to prevent problems from occurring with our facility. To make sure we develop a fire protection plan adequate in all of the occupancy categories relevant to our operation, we will partner with a local fire protection company to evaluate our building and assist us in crafting a comprehensive plan. We fully understand the importance of fire safety for operations. ABCanna will commercially reasonable efforts learn from other examples to prevent problems from occurring with the facility. ABCanna recognizes that a prime motivation for regulating cannabis businesses is to protect the peace, health, safety, and welfare of the community from these types of problems. Electrical fires not only cause millions of dollars of property damage annually, but they also affect lives. Because of the complex nature of a cultivation, manufacturing and distribution operation, which combines indoor lighting operation, odor control, scientific processes of extraction and storage of finished goods the building must meet safety standards for B (professional service) and F-1 occupancy classifications. Fire Suppression ABCanna will employ many techniques to mitigate and control fires if they occur. Smart mitigation techniques limit fire damage and danger, and they conserve the resources of the Fresno Fire Department by reducing the number of incidents that require response by firefighters. These mitigation techniques include the following: • Fire Alarms • Sprinklers • Extinguishers • Monitoring Services • Fire Evacuation Plan Commercial Cannabis Business Permit 1828 Mary Street ABCanna 4-2 Standardization of Procedures Standardization of procedures is the only way to ensure accountability and comprehensive preparedness. Accordingly, ABCanna has developed a set of standardized forms and checklists to ensure that our safety procedures are correctly implemented and followed. In our Fire Safety Plan we will provide a sample of these safety-procedure forms and checklists: • Fire Risk Survey • General Fire Prevention Checklist • Exits Checklist • Flammable and Combustible Material Checklist First Aid and Safety The local fire safety protection company will provide a first aid kit and A.E.D. defibrillator on site for employees and customers. 4.2 Accident and Incident Reporting Procedures ABCanna will utilize checklists to ensure all process areas are up to safety & quality standards daily. A pre-production inspection will occur daily as well as weekly, monthly, semiannual, and annual audits for quality and safety. The facility will also maintain a log of any incidents, operational failures, or non-conformances identified internally. 4.3 Evacuation Routes ABCanna recognizes that the safe, orderly and prompt evacuation of our employees and other building occupants depends on having the physical safety features of the building in operating condition in addition to having an emergency evacuation plan. The cooperation and participation of every building occupant is essential. Every employee has an individual responsibility to know how to evacuate in an emergency and to accomplish the evacuation when the fire alarm device sounds or when directed by an authority or management. The Fire Evacuation Plan includes the following: a) Pre-planning the escape: • The locations of fire alarm pull box will be clearly identified and all employees will be made aware of them. • Exits will be checked routinely to ensure there are at least two unobstructed pathways out. • The fire exits will be checked routinely to make sure they are usable. • Periodic fire drills will be provided to ensure employees learn the sound of the building’s fire alarm. • Emergency telephone numbers will be posted near all telephones. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 4-3 • Fire evacuation exit diagrams will be posted throughout the building. • Exits will be clearly marked. b) Evacuate if there is a fire or fire alarm: • When an employee discovers a fire or smoke condition, he/she must sound the building alarm by activating the nearest pull station, and make a follow-up call to 911. • Whenever the fire alarm is sounded, all employees must leave immediately! Employees must not assume the fire alarm is false or a test and wait to see what others do. In a fire, seconds count. • Each employee must try to help others, if he/ she can do so safely. • Unless unusual conditions dictate otherwise, all employees must use the nearest hallway as this is the best evacuation route to the nearest exit. • When leaving, each employee must close but not lock the door behind. If the door locks automatically, the employee shall carry his/ her key in case the employee needs to return for refuge. • Once outside, the employee shall meet at the relevant assembly point and a head count will be taken to ensure everyone is out of the premises, and accounted for. Employees must never attempt to re-enter the building to search for someone believed to be missing; instead promptly inform the fire or police officials. c) Check the door • Before opening a door, each employee should make sure there is no fire on the other side by using the back of one’s hand to feel the door, door knob or door frame for excessive heat. • If the door, doorknob or doorframe feels hot, the door shall not be opened, as there is probably fire on the other side. If the door, door knob or door frame feels cool, the door should be opened slowly, and the employee shall leave the area and close the door without locking behind them. • Stay low when there is smoke. • If an employee encounters smoke while escaping, crawl or get as low as possible as the cleanest air will be within 1 to 2 feet from the floor. If the main exit is blocked by fire or smoke, the employee should use their alternate route. If this is not feasible, the employee shall go back in his/her room to wait for rescue. d) If one can’t escape • Close all doors between the employee and the fire. + All cracks around doors must be sealed with cloth to keep the smoke out. • Call 911 to notify emergency personnel of the employee’s location 4.4 Location of Fire Extinguishers and other Fire Suppression Equipment Commercial Cannabis Business Permit 1828 Mary Street ABCanna 4-4 Upon finalization of final floor plans, ABCanna will submit a chart to the city and local fire department showing the location of fire extinguishers and other fire suppression equipment. 4.5 Procedures and Training for all Fire and Medical Emergencies (“EAP”) EAP procedures shall be developed, and are updated annually, to minimize risks arising from incidents that could threaten the safety of employees. The EAP shall include the following response plans: • Fire emergencies • Earthquake • First-aid emergencies • Robbery The EAP will be communicated to all employees by means of a Safety Training Program. EAP procedures will be posted in common areas and will subject to yearly updates. EAP procedures will be required in the training for all employees upon hiring and will be reviewed by all employees at annual safety trainings. The EAP describes, in detail, the responsibilities of all employees during emergencies and critical incidents. Employee trainings shall be documented by our management and records kept in the Master Safety Plan Binder. Fire Emergencies The objective of the Fire Emergency Action Plan is to ensure the safety of employees and members in the case of a fire emergency. Training includes making each staff member aware of his or her specific duties during a fire emergency. The Safety Training Plan will give staff members training and preparation to deal with a possible fire emergency. Staff Training and Preparedness. Fire Prevention Plan The Fire Prevention Plan is designed to provide safe workplace practices that minimize the risk of a fire emergency. The Fire Prevention Plan includes: • Conducting and recording periodic facility inspections and identifying and correcting any unsafe conditions. • Conducting and recording monthly safety inspections of fire emergency equipment including all: smoke detectors, emergency evacuation lighting, and fire extinguishers. • Conducting periodic inspections and tests of the fire alarm systems in accordance with state and local regulations. • Conducting periodic fire drills in accordance with the procedures of the Fire Commercial Cannabis Business Permit 1828 Mary Street ABCanna 4-5 Emergency Action Plan. • Checking to make sure electrical cords and cables are in good working condition and are not frayed or worn. • Storing oily and dirty rags in closed metal containers. • Making sure all potentially flammable chemicals are stored in a safe manor. • Daily cleaning of work areas with any potentially flammable chemicals. Earthquake Response Earthquakes will most likely occur with little or no warning. If the intensity of the quake is such that it causes alarm among the employees, there is the likelihood that there will be building or structural damage. In the event of an earthquake the following response plans should be followed: • Shelter in place. Protect yourself from falling objects. Crawl under a desk, table, or door frame until all shaking stops. • Stay clear of windows, heavy and unstable furniture and equipment. • Remain sheltered in place for a few minutes to account for any potential aftershocks. • Management will assess if the building should be evacuated or to remain inside. • Proceed outside when instructed by Management. • Once outside, if possible, get into an open area away from buildings, power lines, falling debris or glass. First Aid Emergencies Serious injuries and first aid emergencies can occur with almost any emergency or work activity. At least 1 first aid trained and certified staff member is required to be present. All Safety staff and Management are required to be CPR and first aid trained and certified. All staff will know the location of all first aid kits and eye wash stations. Critical Incidents Any event or incident that can pose a potential threat or danger to members and employees. Critical incidents can often be prevented, addressed, and de-escalated before they become a more serious problem. On a daily basis all employees, but primarily the Management Team are expected to maintain an acute awareness of the environment towards the goal of preventing problems from escalating and getting out of hand. Simple routines and a calm demeanor are often an effective way to diminish the likely hood of certain problems. Towards this effort, the Management will be expected to do the following: • Regularly clear debris and trash from outside the front and surrounding premises prior to opening and periodically during daily operating hours. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 4-6 • Politely discourage loitering, solicitors, or people obstructing the sidewalk without lawful reason. • Politely discourage double parking and blocking of sidewalks, streets, and other roadways. • Enforcing a comprehensive member code of conduct. • Preventing unnecessary nuisance activity within close proximity such as loitering, consumption of alcohol or drugs within 500 feet, noise, illegal parking, etc. • Place appropriate calls to help maintain a clean and orderly appearance of the dispensary and surrounding area. To further ensure a safe environment, the premises will be staffed by a manager who is dedicated to the safety and well-being of the members and employees. Every day, security members will be posted at key positions within the store to provide for maximum oversight. An additional Management Team member will be available to move around the interior and exterior of the dispensary to address any issues in a preventative and helpful manner. The possibility of physical altercations or open hostilities, however slight, shall be considered carefully – violence and any threatening or dangerous behavior will not be tolerated. Any such actions are considered immediate reasons for ejection or non- admittance to the dispensary. persons involved in critical incidents will be escorted to the exit and removed with an admonishment not to return. The staff is required to document all critical incidents, including the name of the person(s), date, time, and brief description of the incident. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 – Cultivation/Distribution Commercial Cannabis Business Permit Application for DD559, LLC Sarah Street (2759 Braly Ave) Fresno, California 93721 ASSESSOR’S PARCEL NUMBERS: 468-313-15 & 468-313-17 Date submitted: December 4, 2020 Submitted to: The Community Development Department, Fresno City, California By applicant: DD559, LLC Project name: DD559 Cannabis Cultivation & Distribution APN: 468-313-15 & 468-313-17 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 – Cultivation/Distribution i TABLE OF CONTENTS 1. DD559 Business Plan ................................................................................ 1 1.1. Owner and Team Qualifications ............................................................ 3 1.2. Budget ................................................................................................... 5 1.3. Proof of Capitalization ........................................................................... 7 1.4. Pro Forma for at Least Three Years of Operation ................................. 8 1.5. Hours of Operation and Opening/Closing Procedures .......................... 9 1.7. Daily Operations for Distribution ........................................................... 9 1.9. Daily Operations for Cultivation ........................................................... 17 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 – Cultivation/Distribution 1. DD559 BUSINESS PLAN DD559, LLC (DD559) is a locally owned and operated business applying for a Commercial Cannabis Business (CCB) Permit and associated regional and state licenses to conduct indoor cannabis cultivation operations and to provide cannabis distribution services in the City of Fresno, in each case, in compliance with all applicable rules, regulations and laws promulgated by the City of Fresno and the State of California. DD559 aims to be an industry leader in the Fresno cannabis cultivation market with the build-out and operation of a locally-owned and state of the art indoor cultivation facility on the premises located at 2759 Braly Avenue in Fresno. DD559 will capitalize on our access to an already existing portfolio of excellent genetics to produce a clean and healthy product with efficient and ethical production protocols that aim to grow one of the best cannabis flowers in the world while establishing an innovative cultivation brand with affordable prices to licensed distributors, retailers, manufacturers, and consumers and providing first-rate transportation and related logistics services through our distribution arm. With strategic partners already in place, once operational we expect to be able to respond to the local and statewide consumer needs with swift agility. DD559 was built on a vision by its founders to bring thriving local cannabis cultivation and distribution businesses to the community of Fresno, a community where they grew up and now are raising families. Our management team is comprised of local philanthropists, industry experts and cannabis innovators who have seen firsthand the benefits in other areas where the legal cannabis industry has brought positive local effects in the form of blight removal, active street presence and taxation funds applied positively in the community. We intend to use a technical approach to cultivating cannabis that we have developed using only probiotic and vegan inputs. Between our expert team and our brand differentiation, our comprehensive expertise will establish our product as a moral and ethical standard bearer for the industry to recognize. These specific values are acknowledged, will be communicated to the market, and delivered in the final product. Our approach is intended to inspire a high-quality benchmark for all producers of cannabis to achieve. DD559’s primary focus is to obtain an indoor cannabis cultivation and distribution license, and to build a successful cultivation center and distribution hub that is fully compliant with all state and local regulations. Our goal is that our premises will first facilitate an infusion of tax revenue from our cultivation and distribution businesses, and secondly, we aim to establish a cultivator’s benefit fund which will be utilized to build partnerships with established community outreach organizations in the Fresno community. This base will also allow DD559 to be primed and ready for national expansion as federal laws adjust and evolve for the benefit of the cannabis industry, and as a result of any such expansion, we will be able to continue benefitting the Fresno community. DD559 also intends contribute to the Fresno Community Reinvestment Fund to support local cannabis equity businesses in their various business endeavors in the industry. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 – Cultivation/Distribution Contributions may be in the form of monetary support, staff training and development, or establishment and support of business relationships. Our operations model will include: 1. Indoor cultivation premises using probiotic and vegan inputs in a compliant facility built to the highest standards; 2. Procedures to ensure the secure receipt and delivery of all seedlings and immature plants, and to ensure that plants move from cultivation to drying, processing, packaging, storage and shipment in a manner so as to avoid cross-contamination; 3. Serving as a state and local information resource regarding cannabis innovation, cultivation and distribution as well as a source of community outreach; 4. Safe distribution and inventory protocols to ensure compliant transport of cannabis and cannabis products to licensed and authorized California clients; 5. Commitment to constructing a comprehensive and lawful distribution network by building upon the company’s early-mover footprint in Fresno, California; 6. The creation of business-to-business logistics solutions and overnight fulfillment capabilities offered on a statewide basis for wholesale and retail clients alike; and 7. Core distribution capacities with a dedicated focus on maintaining regulatory adherence, as well as offering value-added operational services. DD559 envisions as an integral part of its model the creation of a healthier, wealthier, and more verdant world in which the practice of legal, responsible, and dynamic commerce comes to define the commercial cannabis industry in Fresno, California. 1.1. Owner and Team Qualifications Matt Garza, Owner of DD559, is a lifelong Fresno County resident having grown up in Easton, a few miles outside of the City of Fresno, and attending Fresno State University. After a successful 12-year Major League Baseball career, Matt started G7 Commercial, a real estate investment and management company based in the City of Fresno. Since 2017, Matt and G7 Commercial have developed numerous properties in the City including a raisin farm in 2019. Matt also owns Dagobahz, which owns and operates two cannabis cultivation facilities in Mendocino County, and DD559 which has a cannabis and hemp product line that will be expanded in the City. Matt is active in many local philanthropic efforts such as youth sports, school donations, funding and participation in St. Jude’s charitable efforts, among others, and plans to both continue and expand those efforts in the community with this endeavor. Matt will leverage his understanding of the local community, consumer demand and preferences, and his cannabis cultivation and business experience to provide and distribute the safest and highest quality products to the citizens of Fresno. Ricardo Valenzuela, Security Manager of DD559 was born in Fresno and grew up in Easton. Ricardo earned academic and athletic honors while playing both football and wrestling in high school and joined the United States Marine Corps in 2000. While in the service Ricardo held many primary specialties and received multiple medals and commendations during his 20 years of service. Ricardo retired from the United States Marine Corps on September 30, 2020. Philanthropy includes volunteer youth sports coaching and each year the Valenzuela Family helps to collect, distribute and deliver food boxes and gifts with St. Jude’s Catholic Church during Thanksgiving and Christmas. Ricardo is a strong advocate for alternative medicine and drug rehabilitation using cannabis-based products and is pushing to develop an industry coalition to help address the community’s veterans PTSD, mental and physical welfare. He is highly qualified to manage the Security detail for our facility. Roberto Pena, Director of Distribution for DD559 has 40+ years experience in sales and distribution for Donaghy Sales/ Anheuser Bush, Sysco Foods, and California State Lottery. Pena also Co-owns Central Valley Hemp farm in Caruthers CA. Pena is also the director of sales and distribution at CVH farm LLC. Jesus Pena, Director of Cultivation for DD559 started volunteering at Dagobahz Farms in Mendocino county in 2016. There he learned an organic and vegan mixed growing concept that he has worked to hone his skill and create highly valued crops. Pena has transitioned from volunteer, cultivator, lead cultivator, to now co-owner of Central Valley Hemp Farm LLC. Pena is the director of cultivation, and quality assurance. Dustin Otero, Business Manager for DD559 graduated from Washington Union High School in Fresno and has held multiple positions of increasing responsibility while building his professional business management skills. Familiar with every aspect of successful building operations from warehousing, safety protocols, shipping/receiving, staff training, employee supervision, sales, customer support and more, Dustin brings an excellent skill set to the DD559 team. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-5 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-7 1.3. Proof of Capitalization CONFIDENTIAL See Attachment. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1.4. Pro Forma for at Least Three Years of Operation Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-9 1.5. Hours of Operation and Opening/Closing Procedures Our operations will not be open to the public at any time. Cultivation will be 24 hours a day, Monday through Sunday. Distribution will be open from 7am – 6pm and will remain consistent with Operating Requirements of the Fresno City Municipal Code. This facility is for the cultivation, storage and distribution/ transportation of cannabis and will have onsite, trained security staff at all times. Only security personnel, authorized staff and distribution personnel will be allowed to enter the premises at any time. We anticipate that DD559 will have between 10 and 12 employees onsite at any given time. Parking is sufficient for all employees and there is additional parking available to accommodate overlap during shift change. 1.7. Daily Operations for Distribution DD559 places the highest emphasis on staff safety as well as product quality and security. Ours will be a non-public facility and no unauthorized personnel will be onsite at any time. We outline our process to uphold standards specific to the Distribution and Transportation uses noted below. We will provide transport solely to licensed dispensaries pursuant to application law and other legal and regulatory requirements promulgated by the City of Fresno and the State of California. DD559 has brought in Robert Pena as Director of Distribution who will apply his 40+ years experience in sales and distribution for companies such as Donaghy Sales/ Anheuser Bush, Sysco Foods, and California State Lottery. Robert also Co-owns Central Valley Hemp farm in Caruthers CA and is the director of sales and distribution at CVH Farm LLC. These established business relationships and current operations within the cannabis industry will help to create an effective and efficient distribution network. 1.7.1 Criteria for Distribution Operations i. Number of Drivers, Hours, and Vehicles DD559 will employ one driver at a time to operate a transport van such as a Ford Transit Connect or similar vehicle. Drivers will be licensed with the proper motor carrier permits. Operational hours for the facility will be 24 hours a day. As noted above, distribution will be open from 7am – 6pm and transportation specifications procedures will be maintained in a manner consistent with the Operating Requirements of the Fresno City Municipal Code. ii. Transportation Security Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-10 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-11 iii. Inventory Management and iv. Quality Control Production Sites and Sources - Vendors and Suppliers Supply chain management (SCM) involves the controlled movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption/sale all while assuring the purity, composition, and quality of the product. DD559 maintains strict criteria for suppliers of all raw materials, products, inputs and components that will be used in the supply chain. Comprehensive Standard Operating Procedures will be in place to define the Approved Supplier List, the selection procedures, responsible parties, evaluation procedures, and annual review/maintenance procedures. DD559 will rely on a Lean Manufacturing/Six Sigma approach to SCM, and will control each supply chain input as follows. Approved Supplier List DD559 will maintain an Approved Supplier List (ASL) of vendors for purchasing materials or services in the creation of cannabis or cannabis product. The ASL will be maintained by a designated quality assurance representative within the company. Materials / Purchased Goods In the cultivation process, a material/purchased good can include soil, nutrients, beneficial microbes or insects, cloning hormones, pH adjusting solutions, etc. Control Methods for Materials / Purchased Goods • A specification sheet will be on file for each material/purchased good used by DD559. The specification sheet will include the manufacturer’s contact information and the criteria necessary for assessing the quality of the material. It will be the responsibility of the Quality Assurance (QA) representative to assure that a specification sheet is on file for every material used by the company in any cultivation/packaging process. The specification sheet will be drafted by committee with stakeholders from the various areas within the organization. The QA representative will be responsible for determining the quality of the received material against the specification sheet on file. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-12 • Purchasing controls will assure that only items with a specification sheet can be purchased. • When a purchased material is received at DD559, it will be quarantined by the QA representative pending inspection. • Once inspected, the QA representative will release the material for use, or reject it back to the vendor. A QA-issued sticker will identify its status. • Only materials with a “Release” sticker will be used in the operation. “Rejected” items will be isolated until returned to the manufacturer or destroyed. Methods All methods for purchasing, processing, receipt, QA disposition, and use will be documented following current Good Manufacturing Practices (GMPs). Documented methods for work-in-process and finished good testing will assure product integrity with respect to quality, composition, and purity. Once received on-site, materials will be sampled for inspection and disposition by QA. Aseptic sampling per standard operating procedure will assure that contamination is not introduced into the item being sampled. Environmental Purchased materials and supplies will be stored according to the suppliers’ recommendations and will be stored to avoid contamination and mix-ups. All facility waste storage areas will be located away from process/handling areas to prevent cross-contamination and avoid attracting pests. Waste storage areas and containers will be adequate for waste generated between disposal times. Waste storage areas will be cleaned frequently enough to avoid creating conditions that can cause cross- contamination or attract pests. Containers with lids will be used for the storage of waste until removal. All materials and supplies will be stored in compliance with relevant OSHA regulations for the storage of hazardous materials. Personnel Personnel will have documented training on the SCM program. Training will occur as part of new employee orientation, and on a recurring annual basis. Supplier Services DD559 will utilize an evaluation system to initially assess supplier capability. Ongoing evaluation of the supplier will be required and will be based on: 1) The supplier’s ability to meet the needs of the company; 2) Supplier’s history and length of time in business as indicators of dependability; 3) Experience and qualifications of the supplier’s staff Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-13 4) Demonstrated evidence the supplier utilizes a Quality System structure for operations; 5) ISO or similar registration; 6) Trend analysis of products purchased from the supplier; and 7) Reputation of the supplier in respective industry. We require documentation such as Certificates of Conformance or Compliance from suppliers in support of the purchase goods’ quality, composition, and purity. Receiving/Processing. All distribution inventory transports will be scheduled in advance with a manager and can only be signed off by a manager. Security guards will be made aware of any pertinent distribution schedules and confirm the credentials of the distribution driver upon arrival. No unscheduled or ad-hoc transports will occur. If the credentials are authenticated, the distribution driver will be met by a manager onsite where each item is immediately weighed and taken through quarantine and registration according to the tracking system in place. Any cannabis product taken for distribution will not enter any portion of the facility other than the secure distribution center. Goods will be received in the limited-access Distribution area. Distribution drivers will access the premises through the secure gate designated for such vehicles. DD559 will track the location and disposition of cannabis goods on the premises through several methods, including but not limited to: tracking the UIDs assigned to each batch/lot/unit; inventory software database, shipping manifests, chain of custody/records, and purchase orders. All movements of cannabis goods will be recorded in the inventory software database and documented using Shipping Manifests, chain of custody forms, and purchase invoices. All movements of cannabis goods will be transmitted to the Metrc within 24 hours of occurrence. DD559 procedures for tracking inventory are as follows: (a) Cannabis goods that enter the facility will be immediately be weighed and the UID information will be logged into the internal tracking software; (b) DD559 shall keep a record of the following information for all the cannabis goods received into inventory: (1) Name and type of the cannabis goods; (2) Unique identifier of the cannabis goods; (3) Amount of the cannabis goods, by weight or count; (4) Date and time of the activity or transaction; (5) Name and license number of other licensees involved in the activity or transaction; and (6) Where on the premises the cannabis product will be stored. (c) Each batch of cannabis goods will be placed in a separate and district opaque container and the container will be labeled with identifying information for that specific batch (See (b) above); Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-14 (d) DD559 shall keep a record of the following information relating to testing: (1) Date and time batch sampling took place; (2) Batch size that was tested; (3) Results of the tests and the respective Certificates of Analysis (“COA”); (4) Chain of Custody (“COC”) records; and (5) Where on the premises cannabis goods are located (i.e., in quarantine, ready to be packaged, etc). (e) When cannabis goods are removed from inventory, DD559 shall keep a shipping manifest and/or a record of sale, with the following information: (1) First name and employee number of the employee who processed the sale; (2) The licensed retailer name and license number; (3) The date and time of the purchase transaction; (4) A list of all cannabis goods purchased, including the quantity purchased; and (5) The Total amount paid for the sale including the individual prices paid for each cannabis good purchase and a breakdown of any amounts paid for taxes. (f) A record of the following information shall be entered into the inventory tracking software database in the event of destruction or disposal of cannabis goods: (1) The name of the employee performing the destruction or disposal; (2) The reason for destruction or disposal; and (3) The entity or company being used to collect and process the cannabis waste. (g) DD559 will maintain an accurate record of its inventory at all times. DD559 shall also perform inventory reconciliation at least once every thirty (30) days. The inventory tracking software will automatically transmit inventory data to Metrc by 11:59 p.m. Pacific Time on the day of entry of said data. Shipping/Transport Out DD559 will use paper hardcopy Shipping Manifests until we are able to implement Metrc facility-wide. The physical copies of the Shipping Manifests will be scanned and stored in a digital format. The Shipping Manifest shall include the following information: • Name, license number and license premise address of the originating licensee; • Name, license number and license premise address of DD559; • Name, license number, and licensed premise address of the destination licensee receiving the cannabis goods into inventory or storage; Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-15 • Date and time of departure from DD559 and approximate date and time of departure from each subsequent licensed premises; • Arrival date and estimated time of arrival at each licensed premises; • Name and type of cannabis goods; • Unique identifiers; • Amount of cannabis goods by weight or count and total wholesale sale cost of the cannabis goods; and • Date and time of the transportation. The Distribution Manager will supervise the preparation of cannabis goods for shipment by reviewing the purchase orders, retrieving the requested cannabis goods, reviewing the packaging and labeling for regulatory compliance and cross-referencing the corresponding COAs, preparing a shipping manifest, and documenting the removal of inventory into the inventory database software and Metrc system. The Distribution Manager will verify the contents of all shipments by cross-referencing any transfer records, shipping manifests, inspecting each unit or batch of the cannabis goods received, cross-referencing the unique identifiers, name and type of cannabis goods, and weight and/or number of units transferred. When distributing for other license holders, in addition to the foregoing, the Distribution Manager will review the shipping manifest and cross-reference the name and license number of the original producer (cultivator or manufacturer) with the respective licensing agency by utilizing the online license search. The distribution vehicle will be loaded with cannabis goods in the Distributor parking/loading area. The parking/loading area will be secured by a metal security gate, security personnel, and video surveillance cameras. The Distribution Manager, a distribution employee, and security personnel will supervise the loading of vehicles or trailers with cannabis goods. Another employee will monitor the video surveillance cameras while cannabis goods are being loaded into a vehicle or trailer. Cannabis goods will be transported inside a fully enclosed cage. The cage is welded within the frame of the vehicle. The cage will remain locked with a lock on it. DD559 will have a dedicated parking/loading area for distribution vehicles/trailers in the distribution premises. The Secured Vehicle Area will be secured by a metal gate that is controlled by security personnel. The parking lot will be under video surveillance which shall be closely monitored by the security personnel. The distribution employee transporting the cannabis goods will review the video surveillance footage of the parking lot for any suspicious activity prior to loading the vehicle. Security personnel will visually inspect the adjacent street for any suspicious activity or threats of theft and diversion. The distribution employee will transfer the cannabis goods into the enclosed cage in a dark/opaque and unmarked bag. The distribution employee will be accompanied by security personnel while loading the vehicle with cannabis goods and while transporting the goods. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-16 Storage. Storage controls as are necessary to minimize the potential for: the growth of microorganisms, contact with allergens, cross-contact with other products, contamination of cannabis products, and deterioration of cannabis products. Cannabis goods shall be separated by product type into different opaque bins/containers to prevent light penetration and to promote a longer shelf life. The cannabis goods in inventory shall be separated by batches, strains, producers and different units of weight if prepackaged (grams with grams; eighths with eighths, etc.). Cannabis goods will also be separated on different shelves based on their testing status:(i) pre-testing; (ii) post- testing and awaiting results; (iii) passed testing; (iv) quarantine; (v) waste. Cannabis flower products shall be kept separate from cannabis tinctures, cartridges, and concentrates. The temperature within the Distribution limited-access area shall always be maintained between 68 – 70 degrees Fahrenheit to prevent humidity. The ideal storage climate is controlled using HVAC and monitoring systems, including thermometer, and dehumidifiers. Humidity control will prevent cannabis from hydrating or dehydrating, causing weight and volume fluctuations, while potentially impacting both shelf-stability and the homogeneity of products. Management will perform regular audits to ensure that the vault area (Vault) has adequate ventilation and will coordinate maintenance of systems, as needed. Security. Cannabis businesses have some inherent security risks, which is why DD559 is providing a detailed Security Plan with this application to address any potential public safety concerns. DD559’s plans will reduce potential crime and provide a safe and secure facility for the Fresno community in this neighborhood. DD559 will ensure that its state-of-the-art security systems monitor the surrounding area and neighborhood and will have a positive effect on the neighboring community. In addition to external monitors and cameras that will provide 24/7 camera surveillance, DD559 will also provide onsite security 24/7 in accordance with the local municipal code, as well as alarm systems, motion detectors, and security lighting. The cannabis goods will be stored in either the Quarantine area or the Distribution Storage area, depending on the status of the cannabis goods (tested or awaiting test results). The Distribution Storage area will be secured with electronic door locks. Only Distribution Manager and owners have assigned keycards to access the Distribution Storage area. The Distribution Storage area shall remain locked at all times. The Distribution Storage area will be under continuous video surveillance 24/7, which shall be closely monitored by security personnel and the stakeholders. Only vendors, contractors or individuals who require access to the limited-access area for a legitimate business purposes will be granted access to the limited-access area of the business premises. Any non-employee authorized individual who enters the limited- access area shall be escorted by an employee of DD559 (who will be authorized to access the limited-access area) at all times while within the limited-access area. A log of non-employee authorized individuals who access the limited-access area is maintained by the Distribution Manager. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-17 Please refer to the DD559 Security Plan for additional details. 1.9. Daily Operations for Cultivation As noted above, DD559 places the highest emphasis on staff safety as well as product quality and security. Ours will be a non-public facility and no customers or unauthorized personnel will be onsite at any time. We outline our process to uphold standards specific to the cultivation processes below. 1.9.1 Criteria for Cultivation Operations Deliveries All cultivation inventory deliveries, including all seedlings and immature plants, will be scheduled in advance with a facility manager to be received in a defined delivery area on the premises. Security guards will be made aware of any pertinent delivery schedules and confirm the credentials of the delivery driver upon arrival. No unscheduled or ad-hoc deliveries of plants will occur. If the driver’s credentials are authenticated, the delivery driver will be met onsite by the facility manager on duty at a defined area where each item will be immediately weighed and taken through quarantine and registration according to METRC. Only a DD559 manager can sign off on the receipt of any delivery. Cultivation Inventory Management On a weekly basis, the Lead Cultivator or designee will conduct a comprehensive inventory of all plants in various stages within the cultivation/grow area. This will include seeds, immature seedlings, clones, vegetative plants, flowering plants, harvested plants, cured plants, etc. • Cultivation inventory will be broken down by room: o Propagation/Cloning and Seed Storage o Mother Room o Vegetation Room o Flowering Greenhouses o Cultivation Inventory o Soil Storage o Dry/Cure o Processing/Trimming Quality Assurance/Compliance Inventory Management On a weekly basis, the Quality Assurance/Compliance Manager or designee will be responsible for conducting a comprehensive inventory of the following areas: • Vault o Finished product ready for sale o In process product pending registration or final packaging o Quarantined products: returned product, defective products not suitable for sale, expired products, etc. o Retain and Stability products Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-18 • Components o Packaging materials o Labels • General facility supplies Tracking Gross Sales All financial records will be maintained in Quickbooks. Quickbooks is an industry leading business software that tracks inventory, gross sales, returns, and discounts. Established Security Policies and Procedures DD559 will ensure completeness and integrity of required documentation, required elements in manual and electronic forms of documentation (inventories, transport, cash handling), surveillance findings and actions, discrepancy investigations, and reports to relevant authorities. These documents will be readily retrievable. Regular Auditing of Processes and Transactions Security audits will occur quarterly when operations begin initially. Findings will be documented as Corrective Action and Preventive Actions (CAPAs) in the Quality Management System. Once the audit findings drop to an acceptable level with respect to CAPAs, audit frequencies can be annual. Planned Response to Suspected Diversion If diversion is suspected, the Security Manager will meet with the Committee to determine the course of action. A Diversion Prevention Report will be initiated that includes: 1) Diversion Prevention Report for any possible loss of any controlled substance. a) Surveillance will be reviewed and documented. Copies of video surveillance, photos, and access-control incidents will be saved electronically in a secure format. b) Inventory verification will occur – physically and in the electronic and manual systems. c) Employees may be interviewed. d) All activities associated with response will be documented in detail in the report including quantities of potential loss. 2) If diversion is confirmed, the Security Manager will immediately notify local law enforcement and appropriate authorities. Employee Screening Potential employees will be vetted (background checks and/or Livescan) to the satisfaction of the City of Fresno Chief of Police and in compliance City Ordinance. An agreed upon third party will perform the check and results will be shared with the City and the Police Chief and DD559 as well as with any consultant the City engages to assist with background check reviews. Once the Police Department approves the potential employee, we will proceed with the interview and hiring process. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-19 Identification Each person on the premises shall wear his or her personal identification card at a prominent and readily-visible location on the outermost garment and approximately chest- high. Such identification card shall at all times be in good and readable condition. Age of Personnel At no time will anyone under the age of 21 be employed by the business. The DD559 facility and operation will not be open to the public, we will not have to conduct medical recommendation verification, and youth will not be allowed on site. The doors will remain locked during business hours with only authorized personnel allowed inside the premises. This will ensure that youth may not access the facility. Employee Records DD559 will maintain on-site a current register of all the employees currently employed and shall produce such register to the City Manager or his/her designee or any other City of Fresno official authorized to enforce the Fresno City Code for purposes of determining compliance. In the event a person changes employment from one commercial cannabis business within the city to another, DD559 shall notify the City Manager or his/her designee in writing of the change of employment within ten (10) days of such change or the work permit shall be suspended or revoked and such person shall not be permitted to work within any commercial cannabis business within the city. All staff will undergo initial and ongoing training according to our SOPs and as defined herein. Training will also include secure facility protocols to ensure against theft and diversion and be documented in the employee file. Onsite Consumption Prohibited Cannabis shall not be consumed on the premises. Loitering Loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises is prohibited. Cultivation Space While most businesses in any industry try to keep startup costs as low as possible, that isn’t necessarily the best way to proceed when opening a grow. Creating a cost-efficient cultivation site often involves investing in technology and processes that may result in a big near-term hit. Yields and quality of plants grown under artificial lights mostly depend on: • the clone variety, • source of clones, • after how many days of growing the plants are put into flowering, and • the optimization of the climatic conditions of the grow-room. Warehouse Design Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-20 1. A warehouse environment provides with maximum control, and therefore the most reliable consistent cannabis crops can be produced in a properly designed warehouse grow room. 2. Without natural light, warehouse grow rooms depend on intelligent grow lights which need to replicate the parts of the sunlight spectrum that the marijuana plants need at each stage of growth. Lighting is a key component in an integrated system. 3. Air filtration and circulation systems are essential for controlling heat buildup, and eliminating exhaust odors. It is critical that the air circulation in a marijuana warehouse is designed in conjunction with the grow lights because lighting systems emit large amounts of heat. 4. There are various irrigation systems for growing cannabis appropriate for growing in a warehouse: including drip irrigation, hydroponic flood benches, or trough benches. 5. The irrigation system should be designed in conjunction with a nutrient management system for maximizing the production yield of the cannabis plants. 6. Environmental computer. The computer control systems for a cannabis warehouse control and monitor all the nutrients, lights, air circulation, and irrigation needs of the plants 7. De-humidification to optimize growing environment. 8. Computer controlled CO2 injection and monitoring. DD559 will use rolling benches / growing tables which are highly recommended for any commercial cannabis grow operation. They provide up to 50% more plant space by eliminating the need for a dedicated aisle. With a crop as valuable as marijuana, this directly equates to much higher profits and maximum space efficiency. Main features: • Aluminum extruded sides and ends • Miter cut corners • Hot dipped galvanized steel stands • Aluminum cross members • Snap together fittings • Threaded rods for adjustment up to 12" • Top quality plastic or aluminum flood trays • 13 gauge expanded metal bench tops • 2" diameter rolling tubes The cultivation for flowering plants will be located within two warehouse buildings to be built on the corner property. Parcel “A” is 0.48 acre with a 10,751 square foot building Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-21 and Parcel “B” is 0.55 acre with a 12,886 square foot building proposed. With row spacing, mother room, clone room, office space, distribution space, and processing rooms, it is anticipated Building “A” will accommodate 7,000 square feet and Building “B” will accommodate 10,250 square feet of licensed cultivation canopy. Our cultivation & processing area will include: • Mother Room & Cloning • Vegetative Growth Rooms • Flower Stations • Drying & Trim Rooms • Curing Room • Packaging & Storage Room Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-22 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-23 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-24 Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-25 Yields and quality of plants mostly depend on: • The seed variety • The microbiology of the soil • Optimization of the climatic conditions, and • Timely inputs Our company will grow from seeds/clones of the following strains (among others): • Proxima OG (THC) • Honey Trees (THC) • Gas Valley OG (THC) • MEOW (THC) • Amaretto (CBD:THC) • Mimosa (THC) • Kobe (THC: THCA) • Slugger (THCA) • Blissful Wizard (THC:CBD) • Blue Bacio Gelato (THC: CBG) • Fred's Haze (CBD:THC) Phases of Production Germination of seeds, gendering plants, male/female, or feminized plants (10 weeks) • 1st stage: taking and rooting clones (2 weeks) • 2nd stage: clone/vegetation (1 week) • 3rd stage: vegetation (2 weeks) • 4th stage: flowering (8 weeks) • 5th stage: processing/trimming (3 days) • 6th stage: drying and curing (11 days) • Total elapsed time: approximately 15 weeks Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-26 DD559 will have the ability to vegetate plants and flowers concurrently, will grow up to 11 different strains of cannabis, and will have the ability to grow from seedling to finished product. DD559 intends to also grow additional exclusively created strains that other growers do not have. Estimate Pounds per Harvest Each building within the cultivation premises will be permitted up to 6,200. and 7,400 square feet of canopy and will be adequate to house and grow up to 9,000 plants each for a total of 18,000 plants. Once the mother plants are producing and the clone plant facility is fully operational, it is feasible that a harvest of 936 pounds of cannabis can be produced 3-5 times per year. Cultivation Style Our unique style entails the use of veganic inputs into the soil by properly fermenting fruits and plants to help promote healthier, tastier, and more potent flowers. Taking a page out of the wine industry book, and with ethical testing on terpenes, we now know cannabis flowers contain brix levels, or sugar content. Timely adding ferments while using the mycelium web gives the microbiology complete control of the overall health of the plants, thus, reducing chances of any molds, mildews, and pesticides. Our efficient design will consist of an environmental controller that controls all fans, shutters, and pumps. Our unique and efficient design is designated for one concept in particular, and that’s to establish perpetual harvests, every month. Quality and consistency is the core value in establishing the bridge between our distribution partners. With full automation and environmental control, we give ourselves the best opportunity to successfully harvest top quality cannabis at the most competitive price. The project will utilize mixed light within a warehouse design. A warehouse environment provides with maximum control, and therefore the most reliable consistent cannabis crops Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-28 Late Flowering - Finally, Late flower brings the final flower maturation: calyxes and trichomes ripen, all the racemes are connected and flowers become more dense and heavy in weight. Harvest - When the plants are at their target ripeness (based on terpene content, cannabinoid content, etc.) they are cut at the base of the stem and either have the flower material and foliage immediately removed and prepared for freezing, or taken to the drying environment and taken through the dry/cure procedures according to the documented SOPs. Cultivation Irrigation Plan Water usage in the cultivation environment may leverage the use of reverse-osmosis filtration. The organic environment is irrigated by hand using a cycled regimen of nutrient and microbe rich compost teas and pure mineralized water. The hydroponic environment uses a deep-water-culture system in which a large reservoir of nutrient and oxygen rich water is continuously circulated throughout a network of plant growing sites. In both cases the wastewater from the system itself is minimized as the water is reused or only mixed according to the feeding schedule at hand. The largest amount of water waste would come from the reverse osmosis purification system that has a 1:1 ratio of wastewater to clean. Cultivation Waste Products (type, amount), Handling Chemicals used in the cultivation process will be handled according to OSHA standards and referenced via the MSDS. Chemicals used in the cultivation process will be disposed of according to appropriate regulatory controls. 
 Cannabis waste in various forms will be stored, secured, locked, managed and disposed of in accordance with state and local regulations. Controlled waste practices will be under the direct supervision of the Security Manager. The Security Manager will have direct control over all waste receptacles. The Security Director will achieve this by placing locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render cannabis products to a non-retrievable state in avoidance of diversion and illegal purposes. The following forms of cannabis can be disposed of through acceptable forms of destruction: • Plant waste: stems, stalks, leaves, inflorescence DD559 shall use one or more of the following forms of disposal: • Grinding and Composting • Incineration • Cultivation Release into City Sanitary Sewer The wastewater from the reverse-osmosis system is released into the sewer and the limited amount of isopropyl alcohol is released into the sewer according to city ordinance. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-29 Safety Considerations and Mitigation for Cultivation Operations DD559 takes the safety of our employees, partners and consumers very seriously. There are comprehensive SOPs in place for every phase of the cultivation process and policies for safety and sanitation within the environments. All employees are trained on these SOPs and relevant MSDS information during initial orientation as well as annually as part of the Quality Management System in place. All employees wear personal protective equipment (“PPE”) when in any cultivation environment to minimize exposure to the plants and minimize contamination of the plants by foreign objects, pests, or disease. PPE refers to protective clothing, gloves or equipment designed to protect the wearer’s body from injury or infection. Furthermore, pursuant to the California Occupational Safety and Health Act of 1973 and Title 8 of the California Code of Regulations, DD559 will implement the following policies and procedures to ensure Employee Safety and Hygiene compliance: • Establish, implement and maintain a written Injury and Illness Prevention Program (IIPP) and update as necessary with advance written notice of all changes to employees • Implement employee orientation and training programs with applicable workplace safety and health training programs; • Employees shall at all times wear appropriate clothing - including gloves, footwear, and PPE; • Inspect workplace(s) to identify and correct unsafe and hazardous conditions; • Make sure employees have and use safe and tools, equipment, and machinery, as well as properly maintain such tools, equipment and machinery; • Provide and pay for personal protective equipment; • Use color codes, posters, labels or signs to warn employees of potential hazards; • Establish and update, as necessary, any and all operating procedures and provide training, education and workshops, as necessary to ensure employees follow these safety and health requirements; • Provide medical examinations and training when required by Cal/OSHA standards; • Immediately report any work-related death or serious injury or accident; • Keep records of work-related injuries and illnesses on the log 300, transfer the totals to the log 300A, and post the log 300A from February 1 through April 30 of the following year; and • Post, at a prominent location within the workplace, the Cal/OSHA poster informing employees of their rights and responsibilities. Testing Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-30 Whenever possible, DD559 will purchase lot-traceable materials for all inputs to any products – this is true for all soil and fertilizers in the cultivation environment. Documents such as Certificates of Conformance or Compliance that are received from suppliers in support of the purchase good’s quality, composition, and purity will be tracked and filed by the quality assurance representative according to DD559’s record retention policy. All cannabis moved through the supply chain will be tested at multiple checkpoints throughout the process: Cultivation – License Type 3A a. DD559 only leverages plant stock from our onsite propagation to ensure consistency and preservation of the target genetic profiles (chemotypes and phenotypes). b. Product is tested using 3rd party licensed laboratory analytical capabilities upon harvest and following dry/cure procedures. These test results are tracked according to date, batch, cultivar and filed by the quality assurance representative according to DD559’s record retention policy. Enhanced Product Safety All products will undergo state-mandated Quality Assurance Testing prior to the sale at a retail location. DD559 will utilize the Metrc program in order to report the movement of cannabis and cannabis products throughout the distribution chain. Products shall be labeled and placed in a resealable, tamper-evident, child-resistant package and shall include a unique identifier for the purposes of identifying and tracking cannabis and cannabis products. All packages and labels shall not be made attractive to children. Products will also be packaged and labeled in accordance with all regulatory requirements outlined in the Emergency Regulations published by the Bureau of Cannabis Control, Department of Agriculture’s CalCannabis Division, and the Department of Public Health’s Manufactured Cannabis Safety Branch. Any product complaints shall be logged and reported in accordance with the state- mandated Metrc program which shall ensure proper movement of the product through the distribution chain. Any such complaints shall be logged and reported in the system thereby notifying proper state and local authorities of any product issue/s. If at any time the Metrc system is interrupted or inaccessible, a physical comprehensive record shall be maintained in accordance with applicable state reporting requirements. Product complaints will be properly investigated by our team and shall be reported as necessary to the proper state and local authorities. Moreover, a written record of the complaint and where applicable its investigation will be kept by the team, including: the identity of the product or products complained of; batch, lot or other control number of the product; date the complaint was received and the name, address, or telephone number of the complainant, if available; nature of the complaint including, how the product was used; name of the team members who handle the complaint and following steps, if necessary; findings of the investigation and follow-up action taken when an investigation is performed; and response to the complaint, if applicable. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-31 Any cannabis or cannabis products which fall outside of compliance shall be properly destroyed in accordance with state law and regulations relating to the disposal of cannabis waste. Odor Control The facility will be equipped with odor control devices and techniques including sufficient odor absorbing ventilation, an exhaust filtration system, and a negative air-pressure system so that odor generated inside the facility that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior, or within any other unit located inside the same building as the commercial cannabis business. DD559 will maintain the following equipment, as determined necessary: 1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; 2) An air system that creates negative air pressure between the interior and exterior building area so that the odors generated inside the commercial cannabis business are not detectable on the outside of the building. 3) All ventilation from cultivation will pass through a series of HEPA, charcoal and Syneco filtration or similar systems. The ventilation is used primarily for scrubbing of any odors generated from the cultivation environments. These airflow systems work in conjunction with our climate control systems and abide by ISO 7 and 8 regulations. The hoods used for preparation will feature industrial odor control filtration system from Synecosystems.com or similar 4) HEPA stands for High-Efficiency Particulate Arresting Filter. HEPA is a certification standard that means the filter meets criteria for filtering at least 99.97% particles of 0.3 microns in size and other criteria set by the US Department of Energy. These filters are industry standard in medical and quality industrial sites. HEPA filtration is mandatory to abide by pharmaceutical ISO 7/8 standards. Nursery & Cultivation Odor Control Each room where plants are cultivated shall be equipped with 2 Phoenix Guardian HEPA Air Scrubbers - #PH-GHS2-EA that provide the following specifications: • < 1,400 CFM • 4 stage filtrations • 110-120 VAC 12 Amp • Stainless steel housing • 4th stage is carbon Where odors are significant, a 2nd tier odor mitigation system from Syneco Systems will be implemented in the exhaust path. The 1,400 CFM capacity of the Phoenix Guardian HEPA Air Scrubber System allows it to completely change the air in a 14' x 14' room in four minutes. To be this effective, air Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-32 scrubbers must perform a minimum of four air changes per hour. This allows a single Guardian to control up to 21,000 cubic feet of air volume in room. The Guardian Air Scrubber offers high airflow and multiple ducting options, achieving a combination of negative or positive airflow control and containment air scrubbing. This gives the unit the unique ability to continually filter indoor air while depressurizing a damaged site. The result is that the spread of contamination is almost non-existent. The intake accepts either 18" flex-duct or 12" flex-duct with an adapter (included) to contain contamination or draw contaminated air from hard-to-reach places not usually accessible to air scrubbers. Every Guardian HEPA System comes with a 14-inch, lay-flat duct ring, offering 100% negative air operation, and two 10-inch lay-flat duct rings for a combination of negative air, air scrubbing, or positive airflow results. Distribution and Transport Odor Control Our distribution and transportation functions should not incur any odor that will not be managed utilizing the overall facility’s odor control and ventilation system. Waste Management Cannabis waste will be stored, secured, locked, managed and disposed of in accordance with the requirements of the City of Fresno, the Fresno County Solid Waste Authority, and the State of California. Waste that is stored for any amount of time will be secured separately on the premises from any other operations. Controlled waste practices will be under the direct supervision of the Security Manager. We will have locks on all exterior dumpsters and waste containers. Acceptable forms of destruction shall render any cannabis waste products to a non-retrievable state to prevent diversion and to discourage any perception that useable cannabis product is leaving the facility. The following types of cannabis waste will be disposed of from our facility through acceptable forms of destruction that make them irrecoverable: • Plant waste: roots, stems, stalks, fan leaves, inflorescence • Finished products: in bulk form or in packaged form • Quarantine/returned products DD559 will sort the waste into the above categories and use one or more of the following forms of disposal: • Incineration • Grinding and Composting • Standard Refuse and Recycling Services Incineration Waste intended for incineration or destruction through a third party will be logged, stored, and maintained in a secure area. Products for destruction by third party incineration are logged out of the facility as waste. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-33 Products deemed inorganic and unable to undergo decomposition, such as products irretrievable from their packaging, are suitable for incineration. This also includes quarantined products returned from dispensaries, expired products irretrievable from their packaging containers, or products with cannabinoid concentrations exceeding or meeting the defined limit that cannot be reworked. Grinding and Composting Organic cannabis waste intended for grinding and composting shall be placed into an industrial grinder or chipper (if necessary). From there, the material will be placed into a secured and controlled container with a layer of manure, wood chips and/or paper and thoroughly mixed to render it irrecoverable for theft, loss, and diversion. This container will be locked and under the direct supervision of the Security Manager. The Security Manager will escort employees to the container and unlock it to allow access. Not all organic waste will need to pass through an industrial grinder or chipper prior to being composted. Only organic materials capable of decomposition shall be placed into the compost container. This includes, but is not limited to the following: • Plant Material (plants at any stage, roots, stems, stalks). • Immediately after harvest, roots, stems, and stalks will be transferred to the Waste Management Area located in the Secured Storage area. The area will be fenced, locked, and access controlled. Note: The Waste Management area will be located with a limited access area for an added measure of security. • For processing, the material will be transferred to a grinder/chipper located within the Waste Disposal area and ground with leaves, manure, and other approved compostable material leaving the resulting mixture at least 50% non- cannabis waste by volume. • Leaf and trim material. • Leaf clippings and trim material will be stored in a secure location to later be used in the extraction process. • The material will be tracked using the electronic tracking system. • When a sufficient quantity of the leaf and trim material is collected, a homogenous sample will be submitted to the contract laboratory for analysis. • Once the cannabinoid profile is identified, a determination will be made to use the leaf and trim material for extraction, or to compost it as described above under plant material. • Finished products independent from inorganic packaging. • Product that has been rendered unsellable or unable to be reworked. • Products could include leaf and trim material or inflorescence material. • Plants in various stages (clone, vegetative, and flowering states) may have to be destroyed for various reasons such as disease or environmental factors. Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-36 additives and chemicals used in the cultivation process are certified by one or more of the following governing bodies – CDFA, OMRI, WSDA and DD559 maintains all pesticide and fungicide controls as aligned with California regulations and controls published for use on regulated cannabis crops. All nutrients, fertilizers and soil inputs are stored in the locked storage area and include the following: Organic Cultivation  Dry Fertilizers & Amendments – 4 x 30lb bags onsite at any time. Primary vendors are Vital Gardening Supply, Malibu Compost, and Build-a-Soil • Peat potting soil base • Compost • Worm Castings • Seabird Guano • Rock Dusts • Perlite • Alfalfa • Oyster Shell • Bone Meal • Greensand • Neem Cake • Insect Frass • Kelp Meal • Fish amino powder  Liquid Fertilizers • Fish Hydrolysate • Calcium / Magnesium Supplement • Liquid Guano • Yucca Extract  Hydroponic Cultivation • Cultured Solutions Nutrient Suite – Between 10-30 gallons onsite at any given time. • Roots • Veg A&B • Bloom A&B • Bud Booster  Integrated Pest Management – between 5-20 gallons onsite of each product at any given time. • Neemix – Organic certified Certis neem oil product for insect and fungal control • PFR97 – Organic certified Certis biological insecticide product • Silicic Acid – OSA28 product to prevent fungal disease • Stylet Oil – Organic certified Mineral oil product for insect and fungal control Commercial Cannabis Business Permit APNS: 468-313-15 & 468-313-17 DD559 Cultivation and Distribution 1-37 • Procidic – Organic certified Citric acid based product for fungal and disease control (listed for cannabis crop usage)  General Cleaning – up to 5 gallons of each onsite at any time. • Isopropyl Alcohol • Physan20 • Hydrogen Peroxide -End of Section 1- Commercial Cannabis Business Permit 1828 Mary Street ABCanna 6 LOCATION 6.1. Location Description The project site consists of a single parcel located at 1828 Mary Street between E. Braly Avenue and E. Hamilton Avenue. The site is located near the center of a Heavy Industrial zone and is surrounded by industrial uses such as distribution facilities, scrap yards and machine shops in all directions, with the exception of to the west, where a ¼ block cluster of non-conforming residential uses are located on southwest quadrant of the city block. The project will result in significant internal improvements to the existing warehouse building in order to provide interior access controls, security improvements, specific room needs, and all cannabis-related building retrofits and safety standards. The project site will be entirely fenced with the exception of where the building’s location at the property line provides a solid and secure wall. The existing approximately 6,400 square foot building will accommodate the following (all square footages are approximate): • Cultivation: three separate rooms, two at 1,137 square feet and one at 610 square feet for a total of 2,885 square feet of cultivation area. • Manufacturing: One 625 square foot manufacturing room • Distribution: One 2,000 square foot loading and distribution storage room • Storage/Office/Restroom: 450 square feet Commercial Cannabis Business Permit 1828 Mary Street ABCanna • 36” standard commercial hallways and a water closet will encompass the remaining square footage of the 6,400 square foot building. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 6.2. Existing Parcel Photographs Existing Entrance Viewing North towards Existing Building Commercial Cannabis Business Permit 1828 Mary Street ABCanna 6.3. Premises (Site) Diagram The premise diagram/floor plan is a preliminary visual of the proposed internal layout of the building to be used for cannabis activities including cultivation, manufacturing, and distribution. Final layout, internal access controls, separation between uses, and entry/exit finalization locations will be determined in consultation with City staff as part of the application acceptance process. Commercial Cannabis Business Permit 1828 Mary Street ABCanna 7-1 7 COMMUNITY BENEFITS AND INVESTMENTS PLAN ABCanna is committed to continuing our efforts to support the community in the form of ongoing personal and financial support partnerships with several local charity organizations as well as developing a new ABCanna community specific program. The ABCanna program is scheduled for roll out in mid-December and is set up to be expanded and/or replicated on a larger scale once additional supportive businesses come together on the initiative. We plan to invite other CCB’s in the City the opportunity to partner via financial contribution, or for our Social Equity CCB’s, an ability to contribute via donated time and expertise from within their organizations. We intend for the ABCanna community benefit program to become a vehicle to maximize benefits that the overall Fresno CCB community can bring to the City of Fresno. 7.1 Existing Benefit Program Contributions Our management team will continue the philanthropy partnerships their family has participated in with St. Jude. With available increased funding for these efforts resultant from the profits realized within the proposed project, ABCanna will be able to increase that impact to reach more of our disadvantaged youth and community members. Annual Food Box and Holiday Gift Program Annual financial contributions historically provided to a holiday season food box giveaway and gift giving program with St. Jude’s Catholic Church will be used as the baseline to expand this program in partnership with other CCBs in the community. ABCanna leaders will continue to support St. Jude’s. ABCanna has assisted efforts to outreach on several 2020 Program partners to provide food, goods and services, with the intent being building on the existing success of the program and eventually inviting interested Fresno CCB’s looking for effective programs to donate funds or services too. With the collective business and community relationships of CCB’s in the City, this program has the potential to serve many more of our at need populations. 7.1.1 Funding for or Hosting Expungement Clinics or Outreach Services. Needles for Joints. Fresno has a huge opiate issue and the scientific research of the cannabis plant has definitively shown that it can provide a pathway toward healing of both illicit opiate use and reliance on prescribed opiates for conditions such as PTSD, pain management, cancer, and many other serious conditions. Discussions to fund a program are being developed at our local leadership level and ABCanna plans to directly support a pilot needle exchange first with a hemp joint, CBD-rich (minimal trace THC) therapeutic- grade hemp. Once our Fresno facility is operational, ABCanna would continue to work with our community leaders to provide either hemp, cannabis, or hybrid hemp (CBD) and cannabis (THC) joints as an ongoing expungement service. The ABCanna team and their supporters are actively conducting outreach to existing service providers, community leaders, and public safety representatives to find the most effective way to initiate this sort of program, whether there is an appropriate existing operation that could be expanded to provide the Needles for Joints location, or if a mobile service facility could Commercial Cannabis Business Permit 1828 Mary Street ABCanna 7-2 be developed in order to ensure all vulnerable populations are being adequately served. Once the most effective mechanism for this program is identified, ABCanna will donate a portion of the hemp harvest as a “test of change” program and ensure there is value and achievable social benefit in supporting such program long-term. 7.1.2 Incorporating an Environmentally Sustainable Business Model Including Energy Efficient Buildings and Vehicles. The newly constructed buildings will be held to current energy standards for commercial buildings and designed to operate efficiently from an energy standpoint and with attention to environmental stewardship. We commit to utilizing hybrid vehicles where available for our distribution/transport operation. We will utilize LED lights for the cultivation environment to reduce energy needs as compared to high powered fluorescents. These measures will ensure our operation is environmentally sustainable. 7.1.3 Utilizing Vacant Buildings, Brownfields Land, or Blighted Areas of the City ABCanna identified the proposed location on Mary Street specifically for the opportunity it provides to improve a street corner in one of the blighted areas of the City consisting of older commercial service parcels such as distribution supply companies, recyclers and machine shops. By investing in this specific area, tax revenue from ABCanna’s sales can be directly provided to the local community and/or businesses to help support their success. ABCanna intends to be a good neighbor to our fellow businesses in the area and seeks to form a strong sense of community that will take pride in the collective betterment of the environment in which we work. Improving this existing building to the high level of standard expected of and necessary for a successfully run cannabis business will assist in the betterment of the neighborhood. 7.2. PUBLIC HEALTH OUTREACH AND EDUCATIONAL PROGRAMS ABCanna understands that the risk for young people using cannabis and other drugs such as nicotine and alcohol can lead to serious addiction and health problems. We are committed to increase public health outreach and education on these topics by partnering with the United Way and Fresno Police Department to reach the most vulnerable populations among our young people and ensure that they are both aware of and have access to resources available to youth related to drugs and drug addiction. ABCanna will provide direct funding to The United Way to fund the time, coordination and marketing to reach 500 households in southeast/downtown neighborhoods by providing outreach materials combined with a benefit box filled with food and/or other essential items. The program needs materials, supplies, prints, as well as funding for staff time to implement and create the marketing platform. The program will include both video and photos for social media campaign as well as PR to attract local news outlets. The ABCanna team (staff/partners/volunteers) has committed its people power to contribute for both the heavy lifts of packing/sorting the boxes (with food, prints, activity kits, etc.) as well as distribution door to door. We are establishing connection with the Commercial Cannabis Business Permit 1828 Mary Street ABCanna 7-3 Fresno Police Department to participate with us in order to highlight the support that the Department has for the legal cannabis market, and provide an opportunity for the community to experience positive interactions with law enforcement. The Fresno Unified School District is another key partner with their ability to identify the highest need households in the target neighborhoods so outreach can be better targeted with information such as household composition, # and age of kids and languages spoken so the materials can be customized based on needs. The District will also coordinate delivering pre-packaged breakfast and lunches for the number of children in each household (freeing up resources that can focus on activities, materials and other resources). 7.3. FRESNO COMMUNITY REINVESTMENT FUND ABCanna has committed to contributing a year to the Fresno Community Reinvestment Fund to support our local social equity business partners. In addition, we plan to provide industry support in the form of knowledge, training, and sharing of resources such as ABCanna’s management team’s long-standing relationship with the Fresno EOC for various industry trainings. We are eager to support and develop these types of relationships within our community and at the same time provide our valuable knowledge to our fellow cannabis businesses.