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HomeMy WebLinkAboutC-20-61 FEED RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-61 Submitted On: Dec 04, 2020 Applicant Terance Frazier 5593496965 Applicant (Entity) Name: Fresno Equity and Enterprise Development LLC DBA: FEED Physical Address: 2141 Tuolumne Street, Suite M City: Fresno State: California Zip Code: 93721 Primary Contact Same as Above? No Primary Contact Name: Terance Frazier Primary Contact Title: Owner Primary Contact Address: 2141 Tuolumne St., Suite M Primary Contact City: Fresno Primary Contact State: California Primary Contact Zip Code: 93721 Primary Contact Phone: 5593496965 Primary Contact Email:HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: Yes Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Microbusiness (Non-Retail) Business Formation Documentation: Limited Liability Company Property Owner Name: Oelsner Commercial Properties Proposed Location Address: 2045 S Van Ness AVe City: Fresno State: California Zip Code:Property Owner Phone: Supporting Information Application Certification Owner Information 93721 5594861056 Property Owner Email: alleng@cresco-resco.com Assessor's Parcel Number (APN): 46833316 Proposed Location Square Footage: 25140 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 Owner 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. Owner Name: Terance Frazier Owner Title: Owner Owner Address: 2141 Tuolumne St., Suite M Owner City: Fresno Owner State: California Owner Zip: 93721 Has Owner Completed Background Check Application? Yes Ownership Percentage (%): 100 Business Name: C-20-61 Application #: FEED 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 - High School Degree Reported: Score 4 4 - Bachelor's Degree Reported: Score 6 6 6 Master's Degree or Higher Reported: Score 8 8 - Experience: (among ownership team, select one at highest level) Regulated Cannabis Microbusiness Ownership Experience CA 13 13 - Regulated Cannabis Microbusiness Experience CA (management level or below): Score 10 10 - Other Business Experience (cannabis or cult., distribution, manufacturing) Reported, More than 5 years: or 8 8 8 Other Business Experience (cannabis or cult., distribution, manufacturing) Reported, Less than 5 Years: Score 5 5 - 1.1 Sub-Total:30 21 Construction Cost Estimate: Construction Cost Estimate Provided: Score 8 8 6 4 8 Provded detailed explanation and rates 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 6 Provded detailed explanation and rates Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 5 Provded detailed explanation and rates Operation and Maintenance Cost Estimates: Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 8 Provded detailed explanation and rates All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 6 Provded detailed explanation and rates Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 6 Provded detailed explanation and rates Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 5 Provded detailed explanation and rates 1.2 Sub-Total:50 44 Proof of Capitalization Specific to one or more Owners: Score 5 5 5 Provided Commitment to Fund letter from Thaler Investments, LLC stating owner's name 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 Business name not finalized yet - no business name or address on POC Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15 CTF letter of able to 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 - Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 10 CTF letter of dated 12/03/2020 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 30 Three Years of Data Provided: Score 10 10 8 6 10 Forecast 5 years with details and explanation Total Gross Revenue Estimates Provided:3 3 3 Total Gross Revenue by Product Type (flower and manufactured) Identified: 3 3 3 Revenue broken out by product type such as flower, vape carts, pre-rolls, edibles, concentrates, tinctures Total Personnel Costs Provided:5 5 4 3 5 Listed out compensation, payroll, health insurance, worker's comp, and union dues Total Property Rental or Purchase Costs Provided:2 2 2 Total Utilities Costs Provided: 2 2 2 No line item, however COGS paragraph explains that utilities is combined with supply for cultivation, manufacturing, and distruibution per unit Total Cannabis Product Purchase Expense Provided 2 2 2 Listed under COGS broken out by product type in COGS paragraph All Contract Services Identified:2 2 2 Annual Net Revenue Identified:3 3 3 Annual Cost Escalators Identified:4 4 3 2 4 Annual Estimated Sales Tax Payments to State Provided:2 2 2 State cultivation tax included with COGS per unit Annual Estimated Sale Tax Payments to City of Fresno Provided:5 5 5 COGS paragraph explains that city-related costs are included with COGS per unit Annual Business Tax License and Cannabis Permit Fee Provided:2 2 2 COGS paragraph explains that city-related costs are included with COGS per unit 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 50 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 not mentioned Opening and Closing Procedures Provided: Score 10 10 8 6 10 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: Scoring Guidance: full points for describing information in detail. Dock points for leaving information out or not providing enough detail. 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 10 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:100 100 Section 1 Total:300 263 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 4 living wage defined different as reference 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: canopy: 9.952, harvest 3,000 lbs per year 2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. (20 points possible) Scoring Guidance: https://livingwage.mit.edu/counties/06019 2.1 Sub-Total:20 19 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 3 CCB Offers Vision Coverage to All Employees: Score 3 3 3 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 premiums not mentioned 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 3 five days in year 1, 7 years 1 to 3 Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 4 7 paid holidays 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 5 State mandated time + 4 days Retirement Offers employee retirement plan 2 2 0 not mentioned Offers company match for employee retirement plan 2 2 0 2.2 Sub-Total:50 28 CCB Provides Tuition Reimbursement for Certificates: Score 3 3 3 CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 3 CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 0 not mentioned CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 0 not mentioned CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations Training: Score 3 3 3 CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 5 2.3 Sub-Total:20 14 General Recruitment Plan Provided: Score 10 10 8 6 10 Social Policy Recruitment Plan Provided: Score 10 10 8 6 10 Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 did not include Criteria Narrative: Criteria Narrative: Criteria Narrative: Wages between $17.50 and nearly $50 per hour. 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 0 did not include Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 6 targets not provided but states that they will establish targets. 2.4 Sub-Total:50 26 Owners Number of Owners:1 Number of Owners that live within the City of Fresno:1 Number of Owners that live in the County of Fresno:1 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% equity of the Owners live or own a business in the City (If 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 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 - 2.5 Sub-Total:80 80 Responsibilities Described for All Titles/Positions: Score 20 20 15 10 20 2.6 Sub-Total:20 20 Does CCB have more than five employees: 5 5 5 will have more than 5 employees CCB has signed a peace agreement: Score 5 5 5 will sign labor peace agreement 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: committed to 100% local hires. 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 10 Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10 2.8 Sub-Total:50 50 CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 100 Mentorship and Training: Score yes Equipment Donation: Score Shelf Space: Score Legal Assistance: Score record expungement Finance Services Assistance: Score Other Technical Assistance: Score office space, training 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:400 347 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 8 Imcomplete info, i.e. time of complaint. CCB will established a dedicated contact person to receive complaints: Score 10 10 0 Info not provided. CCB will establish a dedicated phone number to receive complaints: Score 5 5 0 Info not provided. CCB will establish a dedicated email address to receive complaints: Score 5 5 0 Info not provided. CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 0 Info not provided. CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation: Score 10 10 0 Info not provided. Other measure unique to business (i.e. website complaint form)5 5 0 Info not provided. Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points for leaving out aspect, vagueness, or reactive plans. 3.1 Sub-Total:50 8 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 Info not provided. CCB will schedule or attend periodic community meetings (at least annually) to engage with residents about the CCB operation: Score 10 10 10 CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 50 CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Info not provided. CCB will hire residents from the community work at the CCB: Score 20 20 0 Info not provided. Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness, or reactive plans. 3.2 Sub-Total:100 60 CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 5 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 10 3.3 Sub-Total:40 35 CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 10 Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans. 3.4 Sub-Total:10 10 Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 10 Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10 Odor control measures are identified for different nuisance odor sources: Score 10 10 10 3.5 Sub-Total:30 30 Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures: Score 10 10 0 Info not provided. Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting.10 10 10 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 Info not provided. 3.7 Sub-Total:50 40 Section 3 Total:300 193 SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant: Score 10 10 10 Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 10 Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 10 Safety Plan includes Site Plan of Premise: Score 10 10 0 no site plan Safety Plan includes Building Layout Plan: Score 10 10 0 no building plan 4.1 Sub-Total:50 30 Written Accident/Incident Procedure Provided: Score 20 20 15 10 20 Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 not provided Total Number of Scenarios Described: Score mentioned 11 possible scenarios Active Shooter Incident Described: Score 10 10 0 Robbery Incident Described: Score 10 10 0 4.2 Sub-Total:50 20 Evacuation Plan Provided: Score 20 20 15 10 20 Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 20 Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 0 didn't show overall site plan with public way 4.3 Sub-Total:50 40 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 not provided Type of Fire Suppression System Elements Identified: Score 20 20 15 10 10 FA only Location of Fire Extinguishers Identified: Score 10 10 10 Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 10 4.4 Sub-Total:50 30 Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 20 Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 20 Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 no mention Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 Other Medical Emergency Conditions Described: Score 20 20 15 10 15 mentioned HazMat 4.5 Sub-Total:100 55 Section 4 Total:300 175 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 Number and Location of All Security Cameras Identified: 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: 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 5 Total Points of Entry into Premise Identified: Score 5 5 5 All Points of Entry to be Alarmed Identified:5 5 5 Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10 Backup Power Supply Identified: Score 10 10 10 5.3 Sub-Total:50 50 Written Cash-Handling Procedure Provided: Score 30 30 20 15 30 Dual-Custody is Practiced for all cash handling: Score 10 10 0 No mention 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 90 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:300 280 Section 1: Business Plan Total Points:300 263 Section 2: Social Policy & Local Enterprise Total Points:400 347 Section 3: Neighborhood Compatibility Total Points:300 193 Section 4: Safety Plan Total Points:300 175 Section 5: Security Plan Total Points:300 280 Total Points Achieved:1600 1258 78.63% 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. 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 15, 2020 Please reply to: Marisela Martínez (559) 621-8038 Terance Frazier FEED 2141 Tuolumne St., Suite M Fresno, CA 93721 Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04626 REQUESTING INFORMATION REGARDING COMMERCIAL CANNABIS USES (DISTRIBUTION, CULTIVATION, AND/OR MANUFACTURING FOR A NON-RETAIL MICROBUSINESS) FOR PROPERTY LOCATED AT 2045 SOUTH VAN NESS AVENUE (APN 468-333-16) Thank you for your inquiry regarding the allowance of commercial cannabis uses. The requested information about a non-retail cannabis microbusiness for cultivation,distribution and/or manufacturing 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, Zoning Inquiry P20-04626 2045 South Van Ness Avenue Page 2 December 15, 2020 (d) A youth center that is in existence at the time a complete commercial cannabis business permit application is submitted. The subject property located at 2045 South Van Ness Avenue (located on the northeast corner of South Van Ness and East California Avenues) 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 eight cultivators, distributors, or manufacturers located within the Cannabis Innovation Zone, and there shall be permitted eight 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 zero 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 559-621-8038 or at Marisela.Martinez@fresno.gov. Cordially, Marisela Martínez, Planner II Development Services Division Planning and Development Department The attached Financial Statement and supporting documentation indicates that FEED Incubator has more than to fund construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs. Further, the budget and associated proof of capitalization demonstrates sufficient capital in place for over 6 months of operating costs, outside of the first six months of business operation. It is our expectation based on our forecast that the project will generate positive cash flow within 180 days from the commencement of operations. Sincerely, Terance Frazier Owner & Chief Executive Officer Fresno Equity and Enterprise Development LLC (559) 349-6965 Financial Statement: Proforma Profit & Loss Statement Financial Statement: Proforma Balance Sheet & Cash Flow Statement Balance Sheet: Displaying Assets & Liabilities December 4, 2020 City of Fresno Office of the City Manager 2600 Fresno Street Fresno, CA 93721 Dear Selection Committee Members, Thank you for the opportunity to submit this proposal for a Social Enterprise Commercial Cannabis Microbusiness license in the City of Fresno. As a decades-long member of this community, I welcome the opportunity – and responsibility – of becoming a foundational leader in Fresno’s emerging cannabis industry. Like many young kids growing up in Oakland, I idolized the Oakland Athletics. At the age of seven, inspired by our local team, I made a commitment to God and to myself that I would do everything in my power to one day play professional baseball, and if successful, would then pay it forward for other kids like me. Little did I know that I was setting the course of my life in that moment. I dedicated myself to the pursuit of this goal, and it was this singular, driving focus that kept me on the “right” path when so many of my friends and neighbors were not. I was fortunate enough to attend Fresno State, where I played baseball alongside my childhood best friend. Leveraging the skills, experience and dedication I honed as a Bulldog, I then went on to play professionally, where, during a player’s strike, I was called to be an Oakland Athletic, at least for one game. God had delivered on our conversation from so many years prior, allowing me to realize my dream of playing at the Oakland Coliseum. Now it was my turn. In 1995, moved back to Fresno and immediately re-engaged with the community, developing more than 1,000 local units in underserved communities and building shopping centers to bring grocery stores to food deserts. I also volunteered to teach a group of young Fresno kids how to play baseball. In the beginning they could hardly warm the bench, but by the end of the season I would have put any of them at the plate in the bottom of the ninth with two strikes and two outs. In teaching these kids baseball, I found my true calling. Fast forward twenty-five years and this passion for mentoring has only continued to grow. Through my non-profit organization dedicated to youth mentorship, I have taught thousands of kids from our community how to play ball, and, by extension, how to navigate life. One hundred percent of the kids that participate in my program graduate from high school and go on to achieve great things – from serving in City Halls to playing in the big leagues. 2 Copyright © 2020 by Fresno Equity & Enterprise Development LLC SECTION 1. BUSINESS PLAN EXECUTIVE SUMMARY Thank you for the opportunity to submit this application for a Social Enterprise Commercial Cannabis Microbusiness license in the City of Fresno. Fresno Equity and Enterprise Development LLC (FEED) was founded in recognition of the tremendous opportunity to empower social equity qualifying individuals to develop meaningful careers and businesses within Fresno’s legal cannabis industry. We applaud the City of Fresno for recognizing the need for and value of creating pathways to successful entrepreneurship for low-income communities and communities of color that have been systematically marginalized and disenfranchised within this industry and our country. FEED was founded to leverage the opportunity created by the City of Fresno to deliver meaningful equity and inclusivity to members of our community that have been historically left behind. FEED is founded by Terance Frazier, a trusted business leader and passionate youth advocate with over three decades of business, philanthropic and leadership experience in Fresno. Terance brings these decades of experience and proven track record of building impactful infrastructure – from developing affordable housing, to bringing grocery stores to food deserts, to founding a youth baseball program mentoring more than 1,500 at risk youth to promising high school graduates – to this endeavor. Terance is a builder at heart – a builder of teams, of culture, and of community. As such, he welcomes the opportunity and responsibility of serving as a foundational leader in architecting a social equity incubation campus in the City of Fresno. FEED is dedicated to ensuring Fresno’s emerging cannabis industry is the gold standard for social equity incubation. With over three decades of experience in training, mentoring and empowering Fresno’s young people, there is no better local leader than Terance to usher in a truly effective incubation program for the Fresno community. To date, most social equity programs across California have been extremely narrow in focus, defining equity in the cannabis industry as receiving a cannabis license. Given this framework, and because most communities limit licenses significantly, opportunity is thus restricted to only a handful of permit recipients and therefore does not create sustainable and widespread pathways for equity in cannabis. Given the challenges other communities have had in ensuring equity, Terance is proud to see his community develop a one-of-a-kind Social Equity Policy that has the potential to break the cycle of fragmented social equity programs and redefine what social equity can mean in the cannabis 4 Copyright © 2020 by Fresno Equity & Enterprise Development LLC industry today. The City’s policy recognizes the need for social equity in both career and ownership creation and creates a mechanism for social equity success through apprenticeship, incubation, ongoing City funding, and guaranteed shelf space in Fresno retail locations. This is how social equity programs can and should operate. Specifically, Fresno’s policy promotes the creation of a more meaningful and robust social equity program by allowing private businesses to partner with the City of Fresno to increase opportunities and financial resources to an unlimited number of social equity community members – thereby meeting the true intent of providing equity. This proposal seeks to develop a commercial cannabis campus that cultivates, manufactures and distributes regulated and licensed cannabis goods while providing qualifying individuals the opportunity to gain the skills necessary to meaningfully participate in the industry. Upon graduation, students then have the opportunity to leverage the cannabis campus’ infrastructure to develop and launch their own brands. We are committed to creating a microbusiness campus to incubate social equity applicants that not only serves as a cannabis business but serves the larger role of an incubation catalyst for our community’s most historically marginalized and disenfranchised individuals. We are determined to develop an incubation campus that provides rigorous training and science-based learning but also inspires our participants to push their boundaries to achieve higher goals. We are committed to refurbishing and developing a 25,000 square foot building at 2045 S Van Ness Ave, Fresno, CA 93721. Our facility will include premises for cannabis cultivation, manufacturing and distribution activities. Founder, Owner, and Chief Executive Officer Terance Frazier will entirely fund the creation and launch of this campus to support the incubation of social equity businesses. Any individual residing in the City of Fresno that qualifies as a social equity applicant under Social Policy 9-3316 (b) (1) of the Fresno Municipal Code will have the opportunity to participate in this program. The program will develop these individuals into business owners and/or qualified professionals within the cannabis industry, thus providing limitless opportunity for social equity qualifying Fresnans. FEED’s campus will serve as the physical classroom necessary to execute a cannabis curriculum led by seasoned cannabis professionals across all aspects of cannabis business. Through a customized months-long program, FEED’s cannabis professionals train participants on every facet of the cannabis business from finance to marketing to staffing, and on the lifecycle of cannabis from cultivation to manufacturing to distribution and retail. Ultimately, FEED is dedicated to providing the training, resources and physical environment necessary to incubate social equity qualifying Fresno residents into the future leaders of the cannabis industry in Fresno and beyond. FEED is by Fresno, for Fresno, and will deliver on this proposal, creating the first true incubation of equity in Fresno’s emerging cannabis industry. 5 Copyright © 2020 by Fresno Equity & Enterprise Development LLC CAPACITY TO OPERATE Terance has the capacity to operate this business in Fresno because it is the culmination of the many skills, resources and experiences he has successfully cultivated in Fresno for decades. He is committed to the creation of a sustainable business based on this relevant experience as well as with the leadership and guidance of his team of advisors. Business Sustainability The vast majority of businesses fail for two primary reasons – poor management and lack of resources. In both areas, FEED is prepared to create long-term sustainability based on the many factors which we have considered and optimized for. 1.Expertise: Terance has identified seasoned advisors who bring decades of relevant cannabis operational experience, coupled with advisors who bring proven track records in education, workforce development, and youth drug prevention. These advisors will serve as the foundation of his team building, tapping their existing networks to identify and retain the leading experts in this industry as employees should FEED be awarded a license. 2.Capitalization: Terance has secured more than sufficient capital to operationalize this business and is committed to devoting the time and resources – both financial and human – to this endeavor. 3.Adaptability: Over time, this emerging industry will go through enormous change, and the state and city’s interests will not be served unless we are constantly adapting, growing, and improving to best meet the evolving needs of our stakeholders – from our neighbors to our end consumers – every step of the way. As a social equity incubator, FEED has baked adaptability into the DNA of our company by ensuring that we are helping to build and empower a pipeline of potential employees, entrepreneurs, business partners, and community leaders that will help build and breathe life into Fresno’s designated Cannabis Innovation Zone. By designing adaptability into our unique business model, we will always be at the forefront of the evolutionary process. 1.1. Owner qualifications. Resumes are not to exceed two (2) pages per owner. TERANCE FRAZIER OWNER, FOUNDER & CHIEF EXECUTIVE OFFICER Terance Frazier is a committed father, businessman, and philanthropist. He was born and raised in Oakland, California where he learned the value of hard work and perseverance. His dedication and his baseball skills led Fresno State’s team to win the National Collegiate Athletic Association (NCAA) Championship three years in a row, the first time in Fresno State’s history. He received a Bachelor of Science Degree before he was drafted by the Oakland Athletics in 1992. Terance’s career also led him to Minnesota to play for the St. Paul Saints. Upon his retirement from Major League Baseball (MLB), Terance returned to the City of Fresno to pursue a career in real estate investment. He collaborated with Steve Hosey, another former 6 Copyright © 2020 by Fresno Equity & Enterprise Development LLC MLB player and his childhood best friend, to establish a real estate investment company with a focus in acquisition of distressed single-family homes. His experience and expertise allowed him to grow his business in Fresno. In 2004, he established TFS Investments, where he serves as the Managing Member. With passion and commitment for improving our neighborhoods, Terance continued to finance renovations throughout the City of Fresno. The company has invested in over 10,000 properties in the last 20 years making it one of Central California’s leading real estate investment firms. His understanding of the needs that exist in the inner city, allowed him to grow his venture by diversifying his investments, and through partnerships with other local developers he helped build large commercial projects like Campus Pointe and Midstate Bowl. He has been successful in developing projects and giving synergy to the revitalization of Downtown Fresno. These projects include condominiums, retail stores, and office spaces. His vision for a revitalized Downtown Fresno has also generated interest from additional investors, who are developing condominiums overseeing Chukchansi Park and a Public Market that will be a centerpiece of the new Fulton Street in Downtown Fresno. This includes a shipping container multi restaurant, bar, entertainment combination unlike anything the downtown area has ever seen. TFS Investments has positioned itself as one of the largest investors committed to seeing Downtown Fresno become an entertainment hub for the Central Valley. In addition to his business ventures, Terance is a committed philanthropist who is dedicated to our community and giving back to our children. In 1997, he founded the Central Cal Baseball Academy (Central Cal), a non-profit where he is currently President of the Board of Directors. Central Cal focuses on the development and mentoring of at-risk student-athletes in an environment that encourages sportsmanship and academics. Terance is committed to mentoring at-risk youth and ensuring cost is not an obstacle in motivating players. Central Cal emphasizes academic achievement, substance abuse education, and community service. The non-profit has a 100% high school graduation record and has sent numerous kids to college and the major leagues. Terance has five children and is very active in our community. He serves on the Valley Children’s Healthcare Foundation Board of Directors, Dugout Club, Fresno State Alumni Association, Southwest Community Development Corporation, Mayor-Council Code Enforcement Task Force, Fresno State Alumni Engagement Committee, and is President of the Fresno State Baseball Alumni Association. He is a graduate of the Harvard University Kennedy School Executive Leadership Program and is an Adjunct Professor at Fresno City College. In recognition of his tremendous commitment to the Fresno community, Terance has received dozens of awards and recognitions, including: ● U.S. Senate, Certificate of Commendation for “Outstanding Community Member Award” ● Fresno Metro Black Chamber of Commerce, Certificate of Recognition for “15 years of Service for Excellence in Real Estate and Construction Leadership” ● Fresno Metropolitan Black Chamber of Commerce, Dr. Martin Luther King “Things That Matter Award” ● First 5 Fresno County, “Child Friendly Business Award” 7 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Congressional Recognition, for “2015 Wall of Honor Inductee” ● Mayor Swearengin, Certificate of “Recognition for the 541 @ South Tower Project” ● Congressman Costa, Certificate of Special Congressional “Recognition for 541 @ South Tower Project” ● Senator Berryhill, State of California Senate Certificate, “Recognition for Lifelong Contributions to the Students of Fresno County” ● Senator Borgeas, State of California Senate, MLK Community Award Certificate, “Recognition for Outstanding Service to the Community” ● Senator Hurtado, State of California Senate, MLK Community Award, Certificate, “Recognition for Commitment to Business and Community Service” ● Congressman Costa, Congressional Recognition, “Urban Leadership Champion” ● Assemblymember Henry T. Perea (Ret.), Certificate of Recognition, “Induction into the Wall of Honor” at The African American Historical and Cultural Museum of the San Joaquin Valley ● Fresno Collaborative Juneteenth Committee, “Certificate of Appreciation for Support” ● Assemblyman Arambula, Certificate of Recognition, “2019 Community Service Award” by the Rev. Dr. Martin Luther King Jr. for Creating Positive Change in our Community ● State Center Community College District, Certificate of Recognition “2015 Wall of Honor Inductee” ● Fresno Metro Black Chamber of Commerce, “Leading African American in Real Estate, Construction, and Engineering Award” ● City of Fresno, Certificate of Appreciation, “Contributions to the Central Valley African American Student Delegation” ● City of Fresno, Certificate of Commendation, “Development of Vallarta Supermarket” bringing Access to Healthy and Affordable Foods and Jobs to the City of Fresno ● Senator Rubio, Certificate Recognition, “2011 Man of the Year” ● National Republican Congressional Committee, Certificate of Recognition, “Businessman of the Year” ● NAACP’s “Image Award for Business” ● Fresno County Office of Education, “Athletics Honoree” ● Central Valley African American Student Delegation, Special Acknowledgement, and Appreciation for sponsorship of the Inaugural “CVAASD” delegation to Washington D.C. ADVISORY BOARD Terance Fraizer, FEED’s founder and owner, has assembled a business advisory board to provide strategic guidance and operational expertise in support of FEED’s business goals as well as the overarching mission of our unique business incubator model. Our advisory board is composed of a wide variety of subject matter experts who are engaged to provide insights and guidance to all aspects of FEED’s operations from business management and property development to workforce development and the full scope of regulated cannabis operations. We are confident that this team of advisors will support the continued development of in-depth operational and management procedures designed to promote successful, compliant business operations with top- tier quality assurance and excellence in production standards. 8 Copyright © 2020 by Fresno Equity & Enterprise Development LLC With the support of this advisory board, the FEED team has developed in-depth operational and management procedures with a mission-driven approach designed to promote successful, compliant business operations. Employees will be trained at the highest levels in business and cannabis operations and will have continued learning mandated as necessary to incorporate new products and services throughout our operation. Professionalism and proper demeanor will be integrated into every aspect of our incubator and business model. Below is a high-level overview of the current members of FEED’s business advisory board along with summaries of their professional experience and operational expertise. This advisory board will continue to be expanded and strengthened should FEED be granted licensure in order to include additional support roles necessary for the implementation and ongoing execution of this proposed incubation campus. Each advisory board member’s background information and relevant experience are detailed as follows: Casey Fenwick - Operational Advisor Casey brings more than a decade of California cannabis industry experience in cultivation, manufacturing, and distribution -- providing significant relevant experience navigating California’s complex supply chain and infrastructure to this endeavor. Casey currently serves as President of Lifestyle Delivery Systems, Inc. a state licensed cannabis cultivator, seed genetics lab, manufacturer and distributor. In this capacity, he directs high-level business and development strategies and oversees the company’s day-to-day operations. Casey has a proven track record of building successful cannabis companies. In the early stages, Casey has helped build two manufacturing companies from start up to be two of the largest licensed operations in the state – generating over $8 million dollars in sales in one quarter. He is a hands-on leader who prides himself on the active role he plays in the day-to-day management of his business, from which types of equipment to utilize to streamlining processes to meet state regulations to procuring certain types of manufacturing material needed to make the right product at the right price point. He does this all while factoring in the market sale price and utilizing his long-standing industry relationships to find buyers for the end product. James Paul Gentry - Business Advisor James Paul (JP) brings more than twenty years of business management to this endeavor, ranging from front-end real estate development through operationalization and ongoing management for businesses across diverse industries including retail, entertainment and investment. Throughout his career, JP has been involved in every aspect of retail development, from property procurement through customer service and employee training. It is this 360-degree understanding of operationalization that JP will bring to FEED, focused on working side-by-side with Terance and Casey to develop this campus from concept to reality. JP has served in management capacities in real estate development, entertainment services, event management, business consulting, and investment portfolio management. 9 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Yushin Imura - Development Advisor Yushin is a licensed Civil Engineer in California with nearly two decades of experience in the civil engineering and land development industry. His experience spans public and private developments ranging from single-family home subdivisions, business parks, campus ADA modifications, healthcare facilities, apartment complexes, hotels, water main replacements, road widening, and much more. Yushin has been involved in some of the biggest land development projects in California including the High-Speed Rail and a more than 4,800 acre residential and commercial development in Lathrop. He has also managed multiple projects over 100 acres in California. Given this experience navigating the entitlement and development processes for major projects throughout California, Yushin will oversee campus development. Kristin Nevedal - Compliance and Operation Advisor Kristin Nevedal has been a driving force in the development of cannabis policies in California. She sits on the Cannabis Advisory Committee, which advises the Bureau of Cannabis Control and the other licensing authorities — the California Department of Food and Agriculture and the California Department of Public Health — on the development of regulations that help protect public health and safety and reduce the illegal market for cannabis. In this capacity, she chairs the Cultivation Subcommittee and Testing Subcommittee and serves on the Microbusiness and Annual Report Subcommittees. She is co-founder, executive director and board member of the International Cannabis Farmers Association, serves as a board member for the California Cannabis Industry Association, where she chairs the agricultural committee, and is the Chief Security & Compliance Manager for Humboldt’s Finest. Kristin is co-founder and board secretary for Sun + Earth Certified, where she assists in the development of standards for organic earth care and cultivation, human empowerment, and community engagement. Kristin is principal at The Nevedal Group, a small consulting firm specializing in compliance support for seasonal cultivators, temporary cannabis events, and the development of sustainable and regenerative educational programs. As chair of the American Herbal Products Association Cannabis Committee’s cultivation working group, Kristin assisted in the development of cultivation model regulations and best practices for agency consideration. Kristin teaches classes on environmental sustainability and best management practices at Oaksterdam University, America’s first cannabis college. Kristin’s broad policy and advocacy experience also includes serving as a board member for the Emerald Growers Association, Coalition for Cannabis Policy Reform, Californians to Regulate cannabis, 420 Archives, and the Americans for Safe Access’ Patient Focused Certification Peer Review Board. Carole Goldsmith - Education and Workforce Development Dr. Goldsmith has been recognized on state and national levels as an expert on workforce development, contextualized learning, and career technical education. She is sought out as a 10 Copyright © 2020 by Fresno Equity & Enterprise Development LLC public speaker on a wide range of educational issues. Goldsmith has spent over 20 years in a variety of educational leadership roles, most recently as President of Fresno City College. Before taking the helm at Fresno City College, Goldsmith served as President of West Hills College Coalinga for nearly four years. Prior to that, Dr. Goldsmith held the office of Vice Chancellor of Educational Services and Workforce Development at West Hills for four years. She started her career of service as a K-12 teacher at a small rural school, then as an administrator at an Adult School and at a private post-secondary college. Dr. Goldsmith still visits the classroom as an adjunct professor at the university level. Goldsmith has extensive expertise in building collaboration among faculty and industry, workforce investment boards and postsecondary educational agencies in order to identify and provide opportunities for students to gain the necessary skills and knowledge for future employment in high demand fields. While at Fresno Unified, the California Department of Education awarded the Vocational Programs which she oversaw the covenanted Program of Excellence Designation. In 2011, she was on loan to lead the Central California Community Colleges Committed to Change Consortium (C6) $19.9 million TAACCCT grant educational reform efforts. Most recently, she is serving on the Board of Governors Task Force on Workforce, Job Creation and a Strong Economy. The California Community Colleges Board of Governors commissioned the Task Force with a goal to increase individual and regional economic competitiveness by providing California’s workforce with relevant skills and quality credentials that match employer needs and fuel a strong economy. Dr. Goldsmith has served on a number of other boards including United Way, California Community College Administrators of Occupational Education and San Joaquin Clean Energy Organization. Dr. Goldsmith was appointed by Gov. Arnold Schwarzenegger and later reappointed by Gov. Edmund G. Brown Jr. to serve on the Board of Directors of the California Partnership for the San Joaquin Valley. Reginald Zellous - Public Health and Safety Advisor Public Health and Safety Advisor Reginald Zellous has more than thirty years of firefighting experience, having served as a firefighter and EMT/Paramedic in Fresno since the 1980s before becoming a City of Fresno Fire Captain in 1996. Prior to his career in firefighting, Reginald served as an Aviation Ordinanceman in the United States Navy and as a Firefighter Specialist in Crash Fire and Rescue for the United States Navy Civil Service out of the Naval Air Station in Lemoore, California. He was awarded a medal of bravery in 2016 for his role in rescuing a CHP officer. Reginald spent his career controlling emergency response planning, including overseeing research for development of building pre-plans and handling company building fire prevention inspections. He also conducted search and rescue operations, analyzed and responded to medical emergencies, and prepared records of company responses to fires and other emergencies. He brings this wealth of experience and knowledge in the City of Fresno to FEED, providing review 11 Copyright © 2020 by Fresno Equity & Enterprise Development LLC of proposed fire and life safety plans as well as playing a role in their implementation and employee training. 1.2. A budget for construction, operation, and maintenance, compensation of employees, equipment costs, utility cost, and other operation costs. BUDGET 12 Copyright © 2020 by Fresno Equity & Enterprise Development LLC services, city and state licenses and permits, compensation of employees and other contract employee costs, and operating expenses. Financial analysis and projections demonstrate that FEED is a viable business and we look forward to the opportunity to execute the model should we be fortunate enough to be selected to operate. 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.* PROOF OF CAPITALIZATION 1.4. Pro forma for at least three years of operation. FIVE YEAR PRO FORMA Providing an accurate pro forma is critical to understanding the true revenue potential of our microbusiness and incubator model, so it is imperative to ensure the projections utilized are based in reality rather than conjecture to attract attention. FEED has generated the following assumptions based on the expert input and practical experience of our Advisory Board, which includes experienced cannabis operators, as well as robust market research and documentation as further outlined below. This comprehensive approach ensures FEED’s pro forma figures provided with this application are rooted in reality. We have included the requested detailed pro forma below, which includes total liabilities and operational costs including payments required for loan repayment. Additionally, the model was built with considerations included for market trends, market share analysis, labor market, and technological efficiencies. Pro Forma Overview While the application only calls for a pro forma for at least three years of operations, FEED has prepared an accurate five year pro forma as reflected below that includes construction, operation, maintenance, compensation of employees, equipment costs (and other fixed assets), utility costs, and other operating costs. The application also requests that the pro forma include total liabilities and operations costs, including any payments required for loans or lines of credit drawn and subject to repayment. In the pro forma, at the commencement of the project, Thaler Investments is committed to 17 Copyright © 2020 by Fresno Equity & Enterprise Development LLC PRO FORMA FINANCIALS: BALANCE SHEET & CASH FLOW STATEMENT 19 Copyright © 2020 by Fresno Equity & Enterprise Development LLC CURRENT BALANCE SHEET Revenue Projections As FEED ramps up to full capacity by Year 2 of Operations, our microbusiness will have the capacity to produce packaged cannabis goods in the following categories: ● Flower (in Eighth packaging) ● Pre-Rolls (single units) ● Vape Cartridges (in half-gram formats) ● Edibles (single units) ● Concentrates (half gram format) ● Tinctures (single units) 20 Copyright © 2020 by Fresno Equity & Enterprise Development LLC The capacity for the facility at full volume is as follows: ● 235,537 units of Flower (in Eighth packaging) per year ● 198,588 Pre-Rolls (single units) per year ● 95,580 Vape Cartridges (in half-gram formats) per year ● 150,539 Edibles (single units) per year ● 27,582 Concentrates (half-gram format) per year ● 24,824 Tinctures (single units) per year FEED projects to sell premium products into the California marketplace at highly competitive prices and we estimate the wholesale revenue by unit as follows: ● $21.00 per unit of Flower (in Eighth packaging) ● $7.50 per unit for Pre-Rolls ● $22.50 per half-gram Vape Cartridge ● $10.00 per unit for Edibles ● $22.50 per half-gram Concentrates ● $15.00 per unit for Tinctures (single units) Our fully burdened Cost of Goods Sold, including all direct costs, is as follows per unit, by year. The average COGS per unit increases to account for increased payroll and other costs, which rise each year as follows: We have also provided a detailed Gross Margin Analysis below to understand profitability by category: 21 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Conclusion FEED appreciates the need for an accurate pro forma, both for the city to understand the realistic revenue potential associated with this use type and as operators in order to effectively operationalize and manage the business. Our pro forma has been developed with input from our Advisory Board, with years of business and cannabis financial and operational experience and has been informed and developed using extensive data and market analysis. 22 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 1.5. Fully describe hours of operation and opening and closing procedures. HOURS OF OPERATION In the first year of operations, FEED intends to have our microbusiness facility open for a single shift of operations between the hours of 8:00am to 4:00pm five days a week, Monday through Friday. These hours are subject to change as operational demands fluctuate, with the potential to ramp up production to include several operational shifts per day. In all instances, we will operate in accordance with the Noise Ordinance, Article 1 of Chapter 10 of City Code. OPENING & CLOSING PROCEDURES Our team has identified particular steps for opening and closing procedures to ensure the success and compliance of this operation. These steps have been identified as critical to daily operation and team members will be provided with a checklist to ensure these procedures are completed each day. OPENING A designated leader will perform the following opening procedures each day: 1. Collectively disarm the alarm system with Security Personnel and confirm that there has been no entry or attempted entry since the last exit. 2. Turn on all lights and necessary electronics (computers, monitors, etc.). 3. Use the video surveillance system monitors to inspect outside of the building for anything unusual or out of the ordinary (entrance door ajar, unfamiliar cars parked in front, unusual bystanders, etc.). 4. Physically walk through and inspect the inside of the building (check for anything out of place, check secure storage rooms, quick inspection of inventory, etc.). 5. Fill the foot pads/sanitation mats with Virkon disinfectant solution; Virkon is mixed at a ratio of 1 scoop per 2 gallons of water. Each foot pad is filled with a liberal amount of Virkon solution without allowing any overflow. 6. Confirm that the facilities’ security system and inventory management system are functioning properly before allowing other employees to enter the premises. 7. Check both physical mail and email for new communication from team members, vendors, management, etc. Alert the management team if there are any bills or other important documents that require their attention. 8. Review daily tasks: reviewing tasks is a way for the facility management and team to ensure tasks are being completed in a timely and efficient manner. The management team consults every morning to establish where the department stands in the cultivation, processing/manufacturing, and distribution processes. Tasks are deemed completed, in progress, or needs to be completed. 9. Prepare a daily task itinerary on the main facility whiteboard. Upon determining the current situation, the management team will establish which tasks need the most attention. Tasks are listed in order of priority on the whiteboard as a quick reference for the entire team. 10. Conduct attendance of scheduled personnel. 23 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 11. Facilitate the pre-shift meeting and communicate to employees the shift itinerary along with any other pertinent information. Each morning the management team holds the pre- shift meeting, where management goes over the task list for the day with the entire team. CLOSING A designated leader will perform the following closing procedures each day: 1. Ensure all cannabis material and/or goods are securely stored, either secured in place or returned to the designated secure storage room(s). Ensure doors to secure storage room(s) are locked. 2. Conduct general cleanup of the facility including: ensure that all equipment is stored properly; sweep/mop all rooms and hallways; replace toilet paper/paper towels in bathroom; clean/sanitize toilet and sink in bathroom, and clean sink area, counter, table and fridge in break room. 3. Trash removal: trash must be secured in the designated Secure Waste Area at the end of each day. All trash containing cannabis material must be logged on the Trash Discard Log. Once properly logged, the trash being disposed of must be verified and signed off by a Facility Director. 4. The management team will conduct an end of the day walk-around to ensure that all cannabis goods are securely stored, all lights are turned off, and all equipment is properly stored. 5. Turn off all lights and necessary electronics (computers, monitors, etc.). Ensure that all night lighting is active. 6. Ensure that all facility doors are locked and secured (inside doors as well as outside doors, including loading dock doors). 7. Before exiting and securing the facility, use the video surveillance system monitors to inspect outside of the building for anything unusual or out of the ordinary. Resolve any unusual situations and ensure staff safety before leaving for the day. 8. After ensuring that all staff has safely left the facility and premises, set the alarm system and immediately exit the facility. Finally, double check that the door is locked/armed. 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. RETAIL DAILY OPERATIONS – N/A Please note that this section is not applicable to our Commercial Cannabis Business application, as FEED is not applying for a Retail permit. 1.7. Fully describe the day-to-day operations if you are applying for a DISTRIBUTION permit: 1.7.1. Criteria for distribution operations: 24 Copyright © 2020 by Fresno Equity & Enterprise Development LLC DISTRIBUTION DAILY OPERATIONS FEED is committed to distributing and transporting our cannabis and cannabis products to licensed cannabis operations in the most safe and secure manner possible, and in full compliance with the letter and spirit of all relevant state and local rules and regulations. We will conduct all transportation operations inhouse to ensure that all cannabis and cannabis products are distributed and transported in a safe, secure, and compliant manner. FEED’s strict operational policies and procedures will ensure that cannabis goods are only sold, distributed, and transported to licensed facilities that maintain operations in full conformance with state and local laws. Due to the critical importance of security and diversion prevention, FEED will employ two-party confirmation and monitoring for distribution activities to ensure compliance and prevent diversion. The Security & Compliance Manager and the Head of Distribution will be the two supervisors responsible for reviewing and approving product shipments that are ready to leave the licensed facility, and for monitoring all transportation activities in real time. DISTIBUTION ACTIVITIES OVERVIEW The day to day operations of FEED’s distribution department will primarily involve the following main categories of activities: ●Packaging & Labeling: The Distribution department will be responsible for conducting all final packaging and labeling activities. After batches of cannabis goods pass third- party testing, distribution management will approve the products for release. After approval, Distribution Technicians will place the cannabis goods in their final packaging and affix final labeling (especially test result information) to make them ‘Retail Ready.’ When a shipment of cannabis goods is approved, these retail ready products will be organized and packaged into shipments for distribution. ●Secure Storage & Quality Control: The Distribution department will be responsible for securely storing all cannabis and cannabis products in the facility as well as implementing our quality management system to conduct quality control activities such as third-party testing, preventing deterioration, and ensuring compliant packaging and labeling for all cannabis goods. ●Shipments & Transportation: The Distribution department will be responsible for securely preparing, documenting, and conducting the transportation of shipments of cannabis goods to ensure the safe and secure delivery of goods while preventing any contamination or adverse product loss. i. Identify the number of delivery drivers, hours of delivery and vehicles to be used. DELIVERY & TRANSPORTATION OPERATIONS OVERVIEW FEED’s distribution activities are designed to be safe and secure and are based on best industry practices; our plan forgoes contracting independent delivery using third-parties with armored trucks in favor of using our own trained personnel who will drive in an unmarked, fuel efficient vehicle with no indication the vehicle is transporting cannabis, and is superior both economically and environmentally. 25 Copyright © 2020 by Fresno Equity & Enterprise Development LLC While an independently contracted cannabis transportation company costs roughly $200/hour, our solution costs significantly less. These savings are passed along to the dispensaries and consumers. In addition, an armored truck gets roughly 6 miles per gallon. Our proposed unmarked, fuel-efficient van, a Ford Transit Connect, averages 27 miles per gallon on the highway. These environmental benefits are passed along to everyone. Cannabis goods will be secured in locking containers in the cargo hold of the delivery van prior to transport and shipment. We also intend to randomize route and delivery team composition assignments, and will use GPS tracking, secure communication methods, and other measures in order to make the distribution and transport of all cannabis goods as secure as possible. We feel that given the economic, security, and environmental benefits of the plan, it is the safest, most secure, and best possible option. DELIVERY TEAM PERSONNEL Number of Delivery Drivers FEED’s distribution team will consist of our Head of Distribution and up to five Distribution Technicians; three (3) members of our distribution team will make up our delivery team including the Head of Distribution and at least two Distribution Technicians, who will be cross trained and authorized to conduct cannabis transportation operations as delivery drivers. Our strict operational procedures will ensure that all distribution team members who transport cannabis goods to approved licensed businesses or approved laboratories will do so in a manner fully compliant with all relevant federal, state, and local laws and regulations. Delivery Driver Qualifications & Responsibilities In order to minimize the likelihood of loss or diversion, each member of the delivery team will be assessed to ensure compliance with the following requirements and qualifications: ● Be at least 25 years of age ● Pass a background check and drug screen ● Be a US citizen or an alien lawfully authorized to work in the US ● Be able to read, write, and speak English ● Be physically and mentally fit to perform duties required by the job ● Have verifiable work record indicating stability, reliability, and suitability for security work ● Hold a valid driver’s license with no restrictions that would interfere with the performance of duties as required by the position ● No speeding tickets, violations, or accidents in the last 60 months Delivery team members will primarily be responsible for the following: ● Ensuring compliant transport operations at all times through compliant chain of custody procedures and protocols including regular vehicle inspections, inventory counts, and paperwork management including but not limited to shipping manifests, delivery receipts, and scheduled itineraries. 26 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Maintaining open lines of communication with FEED management at all times before, during, and after all transport activities, and especially when the vehicle is out for transport activities. ● Loading the transport vehicle with cannabis goods for transport, with the oversight of security personnel. ● Conduct all transport activities, ensuring the vehicle is locked and inventory is secured before leaving the vehicle to enter a licensed cannabis facility to conduct an authorized and compliant transaction that is on the scheduled transport route. ● Before leaving the vehicle to make a scheduled pick up or delivery, the driver will call FEED management to notify them. When returning to the vehicle, the driver will immediately place any cash resulting from the transaction into the lockbox mounted in the cargo hold of the vehicle. ● Before continuing onto the next scheduled location, the driver will ensure all required paperwork is in order, especially the delivery receipt. ● Carry their valid driver’s license, staff ID card, and any required cannabis handling documentation at all times when transporting and delivering cannabis goods. Upon demand, each driver will produce these documents to the State of California Bureau of Cannabis Control or its authorized agents, law enforcement, or other federal, state, or local government officials as necessary. DELIVERY TEAM TRAINING The most effective way to minimize risk of loss, diversion, or error, is through extensive and rigorous training, developed and supervised by our Security & Compliance Manager, of all delivery team members. Training will include: On-Site Training As with all employees, FEED delivery team members will undergo training on the facility’s security protocols and procedures that will cover: ● All aspects of the system with which they will be interacting, including the duress, panic and hold-up alarms and keypads. ● Role playing adverse event scenarios so that they will act instinctually, in the event of an intruder, to activate an alarm only when it is safe to do so and to always put their own safety, and the safety of others, first. ● An understanding of the inventory tracking procedures, so that employees understand the speed and accuracy with which any theft or diversion will be discovered; and an explanation of the severe disciplinary and legal consequences if anyone is caught engaging in the deliberate mishandling of product. Transport-Specific Training All FEED delivery team members will first be required to successfully complete a defensive driving class. All transport team members will also be personally trained by the Security & Compliance Manager, who will conduct a minimum of two days of on-the-job training with each member. Over the course of these two days, all aspects of proper conduct will be covered, including: ●Pre-Delivery Protocols: including checking the vehicle for compliance and proper operations before leaving the facility and checking the shipment contents against the shipping manifest 27 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Transport Protocols: including following manifest routes, communicating any deviations to the on-call manager (either the Security & Compliance Manager or Head of Distribution) at the facility, as well as theft and diversion response ●Delivery Protocols: including the responsibilities of each Delivery Team Member, such as ensuring vehicle/product security, releasing the chain of custody to a licensed business, emergency response, and reporting any suspected incidence of diversion ●General Transport Protocols: correct storage procedures inside the locked portion of the vehicle, all chain of custody procedures and protocols relating to manifests and transferring cannabis products, inspection procedures, proper diversion prevention protocols, etc. HOURS OF DELIVERY Any time cannabis goods leave licensed premises and are in transit, the overall vulnerability and affiliated risk of diversion increases significantly. The safe, compliant, and inconspicuous transport of cannabis goods requires extensive preparation, monitoring, cooperation, and focus to be successful and uneventful. Outbound cannabis shipments require significant time to prepare shipping manifests, safely package and secure cannabis goods shipments, and conduct vehicle operational safety assessment prior to departure. Inbound cannabis shipments require equal amounts of time to verify that contents of shipments match shipping manifests, that no product deterioration has occurred, that shipment contents meet all compliance requirements, and to physically secure the cannabis goods into the relevant secured storage room. Due to these additional operational factors, FEED will only conduct delivery and transport activities from 9:00 A.M. to 3:00 P.M., which encompasses the time from one hour after opening for the day to one hour prior to closing each day. DELIVERY VEHICLE SPECIFICATIONS From the outset, our fleet will consist of one (1) unmarked hybrid Ford Transit Connect Van, purchased new and then modified for our specific use. If the need arises after commencing and establishing operations, our facility is designed to accommodate up to two more delivery vehicles for a total fleet of three (1) delivery vans. Our transportation fleet will always be made up of unmarked vehicles with no indication that the vehicles are transporting cannabis or cannabis products. Vehicle Requirements FEED intends to use an unmarked Ford Transit Connect to conduct all delivery and transport activities. Additionally, this durable, fuel efficient vehicle will be modified to meet the following criteria: ● Carry the required commercial insurance policy as required by state law and that is reasonable and appropriate, with a liability policy of no less than $1,000,000 per incident ● Display current State inspection stickers, with current State vehicle registration ● Be outfitted with locking cargo vaults. The vault will be constructed from durable and moisture-resistant Medium Density Overlay and anchored to the body of the vehicle with bolts, fender washers and locking nuts. The locking mechanism will be a changeable push-button combination lock with key override 28 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Have no windows in the storage compartment to ensure that no cannabis or product containing cannabis is visible from the outside of the vehicle ● Have no markings, logos, brands, or other illustrations on the exterior of the vehicle that would suggest the owner or contents of the vehicle ● Have adequate vehicle and trailer locks, subject to proper key control ● Have a vehicular alarm system, including a fuel lock alarm device ● Have special code numbers affixed to the roof for easy aerial identification; ● Be equipped with climate control for the rear cargo areas. Drivers will be instructed to ensure the temperature inside the vehicle never exceeds 72 degrees Fahrenheit, nor be colder than 60 degrees Fahrenheit ● Be equipped with a real-time GPS monitoring device, which will be under constant monitoring by our VSM in the Security Command Center ● Be equipped with a Vehicle Dash-Cam that will be on continuously and will monitor both the activity of the road ahead of the vehicle, in the event of a traffic accident, activity behind the vehicle, as well as activity inside the vehicle Vehicle Overview Our security strategy is “Hiding in Plain Sight;” we plan to make deliveries in a generic, unmarked, fuel-efficient Ford Transit Connect van, with a custom lockbox bolted to the interior. This lockbox will not be visible from the exterior of the vehicle. These vehicles are ubiquitous on the road and do not draw attention; they have enough space for our intended deliveries, are known to be reliable, and require little maintenance. The Ford Transit is also produced in Claycomo, MI. by union labor; we are proud to support US manufacturing. The Ford Transit Connect van will be installed with a nondetachable GPS device. This will allow the security personnel at the facility to track all movements of the van during delivery. The GPS system, controlled remotely from the licensed facility, will also provide navigation to the driver during deliveries. Deliveries will be conducted by highly trained personnel, who will not wear any clothing or symbols that may indicate ownership or possession of cannabis. All cannabis products being transported will be kept in locking, secured boxes in the cargo hold of the delivery vehicle at all times, and will not be visible from the exterior of the vehicle. 29 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ii. Describe the transportation security procedures. TRANSPORTATION SECURITY PROCEDURES FEED is resolutely committed to delivering cannabis goods to licensees in the most safe and secure manner possible - and in full compliance with the letter and spirit of all applicable state and local laws, rules, and regulations. All transport procedures are designed to be safe and secure and are based on industry best practices. FEED foregoes contracting independent delivery providers in favor of using our own trained personnel who will drive in an unmarked, secure, and fuel efficient delivery vehicle. When conducting secure transport of cannabis goods, FEED delivery team members will only travel between licensees shipping or receiving cannabis goods or our own licensed premises. If the vehicle is left unattended, such as during the receipt of cannabis goods, it will be locked and secured. The delivery vehicle will never be left unattended in a residential area or parked overnight in a residential area. During transport, FEED security and distribution team members will live track the delivery vehicle and transportation activities to ensure safety, security, and compliance. These tracking protocols will ensure the delivery vehicle never deviates from the secure transport procedures outlined in all relevant state and local rules and regulations, except for necessary rest, fuel, or vehicle repair stops. Secure delivery tracking will be conducted through the following: ● Constant and open communication among team members ● Alarm and video surveillance feeds ● Systems live reporting the location, speed, and performance of the vehicle ● Systems live reporting arrival and departure from pre-programmed stops along the delivery route, along with any deviations from the route plan ● Systems live reporting access to the cargo hold, lock boxes, and cash box ● Systems live reporting the cargo hold temperature and humidity levels Shipping Manifests Prior to transporting cannabis goods, the FEED delivery team with the oversight of the Head of Distribution will ensure that a shipping manifest is generated through the CCTT-Metrc track and trace system in accordance with the Bureau of Cannabis Control rules and regulations as well as the following procedures: ● At least 48 hours prior to transport, a delivery team member will use the Track and Trace system to generate a shipping manifest. The manifest will contain all routes and delivery times, in accordance with any and all applicable rules and regulations. ● The shipping manifests will never be altered or voided after departing from the licensed facility. Three copies of the shipping manifest will accompany the delivery vehicle at all times that cannabis products are being transported. One copy is attached to the transport box that contains the affiliated shipment; another copy remains with the driver; and the third copy is given to the licensee receiving the shipment for their records. ● The shipping manifest will also be securely transmitted to both the Bureau and the licensee that will receive the cannabis goods at least 48 hours prior to transport. 30 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● In accordance with section 5049, the shipping manifest will contain: ○ Name and type of the cannabis goods. ○ Unique identifier of the cannabis goods. ○ Amount of the cannabis goods, by weight or count. ○ Date and time of the activity or transaction. ○ Name and license number of other licensees involved in the activity or transaction. ○ The name, license number, and premises address of the originating licensee. ○ The name, license number, and premises address of the licensee transporting the cannabis goods. ○ The name, license number, and premises address of the destination licensee receiving the cannabis goods into inventory or storage. ○ The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premises, if any. ○ Arrival date and estimated time of arrival at each licensed premises. ○ Driver license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for transport. ● Upon pick-up or receipt of cannabis goods for transport, storage, or inventory, FEED will ensure that the cannabis goods received are as described in the shipping manifest, will record acceptance and acknowledgement of the cannabis goods in the CCTT-Metrc track and trace system. ● If there are any discrepancies between the type or quantity specified in the shipping manifest and the type or quantity received, the FEED delivery team member will record and document the discrepancy in the track and trace system and affiliated business records. ● When a transport includes multiple licensed cannabis facilities, the shipping manifest will correctly reflect the specific cannabis goods in transit and the specific route between delivery locations. ● FEED will maintain all shipping manifest records for at least seven years. Copies of the shipping manifest will be provided upon request to the Bureau or its authorized agents, law enforcement officers, or other federal, state, or local government officials. Packaging Cannabis Goods for Delivery FEED will employ the following protocols for packaging cannabis products for delivery: ● For reasons of security and accountability, a foundational precept for each point of contact with cannabis products is that no single employee may be unaccompanied while such products are being handled. ● All items being prepared for shipping will be packaged inside the Retail Ready Secure Storage Room at the facility by a minimum of two authorized personnel. ● From there, a minimum of two authorized personnel will carry the shipments to the Secure Distribution Shipping/Receiving Area, where a minimum of two delivery team members will load them directly into the vehicle lockboxes. The lockboxes will only be opened as cannabis products are being loaded, will be closed and locked immediately after the products have been loaded, and will only be opened again as required to transfer products to their intended recipients. 31 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● All cannabis transported will be packaged and labeled in accordance with all applicable state and local rules and regulations. ●All shipments of cannabis goods leaving the facility will be shipped in secure, sealed containers with a single-use, tamper-evident, plastic serialized seal attached. ● Each container will be marked with the intended delivery address and contact information. Receipt Protocol FEED will obtain receipts for shipments of cannabis goods by enforcing the following protocols: ● Licensees receiving cannabis goods must provide at least one person to sign for the shipment immediately upon arrival of the delivery vehicle and will do so in the presence of the delivery team member responsible for custody for the cannabis goods during transport. ● Licensees receiving cannabis goods from FEED must provide a printed and signed receipt immediately upon delivery. This receipt record will be kept and maintained for at least seven years. ● Separate copies of the shipping manifest will be provided to each licensed recipient of the cannabis goods described in the shipping manifest. To maintain confidentiality, FEED will prepare separate manifests for each licensee Secure Transport Procedures To ensure the security of transport and delivery activities, FEED will implement the following procedures and protocols: ● Wear only plainclothes. No delivery team member may wear any clothing or symbols that may indicate ownership or possession of cannabis products. ● Obey all traffic laws and drive in a careful and prudent manner at all times. ● Never transport any non-authorized persons in a vehicle containing cannabis. ● Refuel the vehicles prior to the end of their shift and only when the vehicle contains no cannabis products. ● Complete a vehicle inspection form at the beginning of each shift. ● Carry all required shipping manifests and other required documentation for the duration of the trip. ● Notify the on-call manager tracking the transport when each delivery has been completed. ● Record the checking of fluids, observations of damage, and discovery of defective equipment in the daily Vehicle Inspection Log. Any discovery of new damage must be reported to the Head of Distribution immediately. ● Proceed from the licensed premises directly to the approved delivery point without any unnecessary delay. ● Follow the route as provided in the Shipping Manifest and alert the on-call manager tracking the transport of any deviations required by traffic conditions or other necessities. ● In the event of an accident, loss or any other incident that would prevent the delivery of every item in the Shipping Manifest on time and in unchanged condition, delivery team members will alert the receiving licensee immediately. ● Never change the preset security features of any vehicle 32 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Never engage in any activities that will distract them from their duties while on assignment ● Immediately notify the relevant authorities of any vehicle accidents, diversions, losses or other reportable events that occur during transport ● Submit to any inspection, without delay, if stopped by regulators, law enforcement, or other Federal, State or local government officials. Adverse Loss Protocol & Procedures In the event of a suspected or discovered adverse loss, or the discovery of a discrepancy in any transport manifest, the FEED inventory audit team will: ● Immediately notify the Bureau of Cannabis Control, local authorities, and any other relevant authorities, in a manner determined by the Bureau rules and regulations. ● Initiate and conduct an investigation of the incident to determine the cause of the product loss or inventory reporting discrepancy. ● Amend the facility’s standard operating procedures involving delivery and record-keeping in order to prevent future losses or discrepancies. ● Take appropriate disciplinary measures as needed. ● Submit a report of this investigation to the Bureau of Cannabis Control; a preliminary report shall be submitted within seven days of the incident, and a final report shall be submitted within 30 days of the incident. If at any point of operations, FEED loses access to the CCTT-Metrc track and trace system for any reason, the Facility Director and Security & Compliance Manager will work together to take the following steps: ● Prepare and maintain comprehensive records detailing all commercial cannabis activities that were conducted during the loss of access. ● Document the incident and notify the Bureau immediately when access to the system is lost, when access to the system is restored, and what is the determined cause for the loss of access. ● Once access is restored, all commercial cannabis activity that occurred during the loss of access will be entered into the track and trace system within three business days of access being restored. ● During the loss of access, FEED will not transport, transfer, or deliver any cannabis goods until such time as access is restored and all information is recorded in the track and trace system. ● The inventory management system will host a centralized server that will allow FEED to remotely create, input, and archive daily history logs to the off-site server, providing an avenue to compare past logs immediately with real-time logs. By working with local inventory documentation and the centralized service, FEED will establish a reliable backup system to further document loss of access. For a more detailed breakdown of distribution security measures on the premises, please see our Security Plan in Section 5. 33 Copyright © 2020 by Fresno Equity & Enterprise Development LLC iii. Describe the how inventory will be received, processed, stored, and secured in the permitted premises. INVENTORY MANAGEMENT PROCEDURES Throughout the entire seed to shipment lifecycle in our microbusiness, FEED will closely track the location and nature of all cannabis and cannabis products in the licensed premise. The FEED team will ensure all inventory management procedures are conducted according to all relevant state and local laws as follows: INVENTORY MANAGEMENT SYSTEM If selected to receive a commercial cannabis business permit, FEED will work with the City Manager’s office to select an inventory management and point-of-sale (POS) system in order to track and report on all aspects of the business including, but not limited to, such matters as cannabis tracking and inventory data, gross sales (by weight and by sale), and other information which may be deemed necessary by the city or state. We will ensure that the selected system will have the capability to produce information that is compatible with the city’s record-keeping systems, to produce historical transactional data for review, and that the system is approved and authorized by Chief of Police, City Manager or his/her designee(s) prior to being used by our microbusiness. Additionally, we will only select a system that fully integrates with the CCTT-Metrc system. Furthermore, in accordance with 9-3311(b)(1)(xiv) of the Fresno code, we will ensure our accounting software is in place to provide point-of-sale data as well as audit trails of both product and cash, where applicable. We will demonstrate to the Chief of Police, City Manager or their designees, compliance with the state’s track and trace system for cannabis and cannabis products and all Cannabis regulations stated in the California Code of Regulations. All of FEED’s distribution, shipping, and transport activities are designed to fully integrate with the facility’s inventory management and payment system. FEED is committed to working with the city to select an inventory management and POS system that is designed for end-to-end supply chain management across all facility departments from seed to shipment to ensure that we will have a full profile and history of the cannabis and ingredients used to create any cannabis products in question, ensuring reliability on measuring potency and serving size of THC and CBD content. All items shipped to approved licensed businesses and laboratories will be seamlessly tracked by our comprehensive batch tracking and inventory control software. All delivery and payment data will be scanned and uploaded into the system and reconciled with the total inventory count. These scanned documents may be retrieved at any time in the event of an audit, inspection, or other request by the relevant authorities, or internal audit or investigation, for a period of at least seven years. RECEIVING CANNABIS GOODS When receiving cannabis goods from a licensee, FEED’s distribution department will follow these procedures: 34 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Before approving the pick up, the Head of Distribution will arrange to have the cannabis good(s) tested by a licensed testing laboratory. ● Upon receipt and approval of the test results, the Head of Distribution will schedule the pick up and inform delivery team members. ● After scheduling a pick up, the delivery team will prepare required documentation for shipment and conduct all required reporting through the Track and Trace system prior to leaving the licensed facility to retrieve the shipment. ● When the delivery team member arrives to pick up the cannabis goods, he or she will confirm that the cannabis goods shipment matched the shipping manifest exactly. ● After confirming the shipment matches the shipping manifest, the delivery team member will go through the required receipt protocols and take physical custody of the cannabis goods. ● After taking physical custody, the delivery team member will secure the shipment into a unique lock box in the delivery vehicle cargo hold. ● Before traveling to the next destination, the delivery team member will report the updated inventory to appropriate inventory tracking systems using the laptop or iPad in the delivery vehicle or secured mobile technology. ● After updating all inventory reports, the delivery team member will lock and secure the delivery vehicle and return to the licensed facility. Upon arriving at the licensed premise, the Distribution team will follow all required state and local rules and regulations for compliant intake of cannabis goods. ● Upon receipt of any cash resulting from transactions, FEED delivery team members will immediately deposit the cash into a mounted cash safe in the cargo hold of the delivery vehicle and make all required cash handling reports through the inventory management system. ○ The Facility Director and Head of Distribution are the only team members authorized to access the mounted cash safe in the delivery vehicle and intake cash. ○ When cash enters the facility, it will be transferred from the mounted vehicle cash safe to a cash safe mounted in the Distribution Office. ○ Strict cash handling and reporting procedures will be employed, and two-party confirmation of all cash handling and reporting will be required. PROCESSING & STORING CANNABIS GOODS When storing and processing cannabis goods, FEED’s distribution department will follow these inventory management and tracking procedures: ● Cannabis goods will flow through the Distribution Storage Rooms in the following order: ○Quarantine Untested Storage Room: secured storage room where cannabis goods received by the distribution department are organized for third-party testing, and where testing personnel will conduct batch sampling activities ○Quarantine Pending COA Storage Room: secured storage room where tested batches of cannabis goods are stored, pending the test results and Certificate of Analysis resulting from batch testing ○Retail Ready Storage Room: secured storage room for general cannabis goods inventory that has passed third-party testing and is organized and ready to be pulled for shipments 35 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● While in storage rooms, shelf stable cannabis goods will be stored on industrial shelves made of non-porous materials. Non-shelf stable cannabis goods will be stored in large freezers to maintain freshness and product integrity. ● When cannabis goods are being transferred from room to room within the licensed premise, the following procedures will be followed: ○ Two distribution team members, including one department manager, are required to conduct any movement of cannabis goods within the facility. ○ Distribution team members will ensure that physical inventory matches the digital inventory in the inventory management system. After ensuring consistency, the two team members will physically move the cannabis goods to a new secure storage location using facility transport carts. ○ After the physical move, the team members will immediately report the updated inventory location to the inventory management system and CCTT-Metrc system. SHIPPING CANNABIS GOODS When shipping cannabis goods to a licensee, FEED’s distribution department will follow these procedures: ● Before approving the shipment, the Head of Distribution will arrange to have the cannabis good(s) tested by a licensing testing laboratory. ● Upon receipt and approval of the test results, the Head of Distribution will schedule the shipment delivery and inform delivery team members. ● After scheduling a shipment delivery, the distribution team will prepare all required documentation for shipment and conduct all required reporting through the Track and Trace system prior to leaving the licensed facility to deliver the shipment. ● All items being prepared for shipping will be packaged inside the Distribution Packaging Room by authorized personnel. ● The distribution team will place cannabis goods in the shipment into a unique Transport Box, then seal the box with single- use, tamper -evident, plastic serialized seals/tape. ○ If the value of the shipment is less than $5,000, it does not need two party confirmation before leaving the facility. ○ If the value of the shipment is more than $5,000, it does need two party confirmation before leaving the facility. ● After all shipments for the delivery are packaged for shipment, they will be transferred to the Shipping/Receiving Area and loaded onto the delivery vehicle. Authorized personnel will load them directly into the appropriate lockbox. The lockbox will only be opened as cannabis goods are being loaded; it will be closed and locked immediately after the products have been loaded; and it will only be opened again as required to transfer cannabis goods to their intended licensed recipients. ● The Distribution team will finalize the delivery route, schedule, and affiliated details. This information will then be programmed into the inventory management software, reported to the Track and Trace system, and programmed into fleet management software for delivery tracking. If deliveries ever occur on a regular schedule, delivery routes will be differentiated for security measures. ● Once the route is fully programmed and reported, the driver will ensure all cannabis goods are secured and the vehicle is locked. Then the drive will sign into all required 36 Copyright © 2020 by Fresno Equity & Enterprise Development LLC tracking and hands free communication programs before leaving the licensed facility to conduct transport activities. ● When the delivery team member arrives to drop off the cannabis goods, he or she will confirm that the cannabis goods shipment matched the shipping manifest exactly. ● After confirming the shipment matches the shipping manifest, the delivery team member will go through the required receipt protocols and hand off physical custody of the cannabis goods to the licensee receiving the shipment. ● After handing off physical custody, the delivery team member returns to the delivery vehicle and deposits any cash resulting from the shipment into the secure cash box before ensuring all lock boxes and the cargo hold are locked and secured. ● Before traveling to the next destination, the delivery team member will report the updated inventory to appropriate inventory tracking systems using the laptop or iPad in the delivery vehicle. ● After updating all inventory reports, the delivery team member will return to the licensed facility. Upon arriving at the licensed premise, the Distribution team will follow all required Bureau rules and regulations for compliant reporting of cannabis shipments and deliveries. SECURING CANNABIS GOODS FEED will ensure that all cannabis goods in custody and secured stored in our licensed facility are secured through our strict physical security procedures as well as inventory tracking procedures through ongoing recordkeeping and regular reconciliation activities. Cannabis goods stored at the facility will be secured in limited-access, locked secure storage rooms in sealed containers. When in transit, cannabis goods will be secured in locking boxes secured in the cargo hold of our delivery vehicle. Through physical security measures and by implementing strict inventory management, recordkeeping, and reconciliation procedures, FEED will ensure that all cannabis or cannabis products in our possession are secured at all times. GENERAL RECORDKEEPING All records pertaining to FEED’s distribution department will be stored and maintained in the Distribution Office. Inventory records will be kept separately for each license and the office will be outfitted with a printer to print all hard copy documentation required. In accordance with section 5037, FEED will keep and maintain the following records related to commercial cannabis activity for a least seven years: 1. Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under title 18, California Code of Regulations, sections 1698 and 4901. 2. Personnel records, including each employee’s full name, social security or individual taxpayer identification number, date employment begins, and date of termination of employment if applicable. 3. Training records including, but not limited to, the content of the training provided and the names of the employees that received the training. 4. Contracts with other licensees regarding commercial cannabis activity. 37 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 5. Permits, licenses, and other local authorizations to conduct the licensee’s commercial cannabis activity. 6. Security records, except for surveillance recordings required pursuant to section 5044. 7. Records relating to the composting or destruction of cannabis goods. 8. Documentation for data or information entered into the Track and Trace system. 9. All other documents prepared or executed by an owner or his employees or assignees in connection with the licensed commercial cannabis business. In addition to the records required by section 5037, FEED will maintain the following records: 1. Records relating to branding, packaging, and labeling 2. Inventory logs and records 3. Transportation bills of lading and shipping manifests for completed transports and for cannabis goods in transit 4. Vehicle and trailer ownership records as applicable 5. Quality assurance records 6. Records relating to destruction of cannabis goods 7. Laboratory testing records 8. Warehouse receipts 9. Records relating to tax payments collected and paid under Sections 34011 and 34012 of the Revenue and Tax Code. INVENTORY RECORDKEEPING FEED will generate all required record keeping documentation and follow all required recordkeeping and reporting protocols for inventory management and tracking activities for receiving shipments, storing inventory, maintaining accurate records of the inventory, ensuring inventory records are accurate, and performing inventory reconciliation, as required by state and local rules and regulations or as requested by licensing authorities. The selected inventory management system will be used to manage and track inventory of cannabis goods and will be used to conduct required reporting to the Bureau and State of California. Data organized will include all relevant records for financial matters, personnel, training, authorizations, security, product waste management, activity logs, and other documentation related to the required CCTT-Metrc system, along with any other tailored data FEED may want recorded. Only authorized and properly trained personnel will enter and record complete and accurate information into the inventory management and track and trace systems and will correct any known errors entered into the Track and Trace system immediately upon discovery. In accordance with section 5049, FEED will record all commercial cannabis activity in the inventory management and Track and Trace systems, within 24 hours and as required by Bureau rules and regulations, including: ● Packaging of cannabis goods ● Sale of cannabis goods ● Transportation of cannabis goods to a licensee ● Receipt of cannabis goods 38 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Return of cannabis goods ● Destruction and disposal of cannabis goods ● Laboratory testing and results ● Any other activity as required pursuant to this division, or by any other licensing authority. Additionally, the following information will be recorded for each activity entered the inventory management and Track and Trace systems, within 24 hours of occurrence and as required by Bureau rules and regulations, including: ● Name and type of the cannabis goods. ● Unique identifier of the cannabis goods. ● Amount of the cannabis goods, by weight or count. ● Date and time of the activity or transaction. ● Name and license number of other licensees involved in the activity or transaction. ● If the cannabis goods are being destroyed or disposed of: ○ The name of the employee performing the destruction or disposal. ○ The reason for destruction or disposal. ● If any adjustments are made in the Track and Trace system, description of action taken, including but not limited to: ○ Spoilage or fouling of the cannabis goods ○ Any event resulting in exposure or compromise of the cannabis goods ● Any other information as required by the state or local rules and regulations, or any other applicable licensing authority. Protocols to maintain accurate inventory records During inventory management and tracking activities, FEED will employ the following procedures to maintain accurate records of the inventory of cannabis goods: ● Any time a cannabis good is received, stored, transferred between rooms within the licensed premises, sampled and batched for licensed laboratory testing, packaged and labeled for shipment, prepared and sent out for shipment, received by another licensee as a shipment, lost due to damage or theft, or handled in any other way, FEED’s authorized distribution team members will report this information to the inventory management system. The Track and Trace account manager will also report this information to the CCTT-Metrc Track and Track system as required by state and local rules and regulations. ● FEED has a zero tolerance policy for any discrepancies between the physical inventory and the digital inventory reported on inventory management systems. Physical and digital inventory audits will be conducted by both the Head of Distribution and Security & Compliance Manager at least every 14 days, or as required by state and local rules and regulations, to maintain accurate inventory records. Protocols to ensure accurate inventory records During inventory management and tracking activities, FEED will employ the following procedures to ensure accurate records of the inventory of cannabis goods: ● The Track and Trace system account manager will be the Facility Director, who will be appropriately trained to conduct compliant and accurate reporting. The Track and Trace 39 Copyright © 2020 by Fresno Equity & Enterprise Development LLC account manager will attend and successfully complete all required Track and Trace system training, including any orientation and continuing education activities. ● As the account manager, the Facility Director will be accountable for all actions FEED’s owners or employees take while logged into or using the Track and Trace system, or otherwise while conducting Track and Trace activities. ○ The Facility Director will always serve as the inventory management system master administrator, which allows administrators to compare daily inventory reports, work logs, and operations processes. All system tools will be designed around offering a reliable security alert system on any discrepancies with FEED’s records over time. ● At all times, the Facility Director will monitor all compliance notifications from the Track and Trace system, and resolve any issues detailed in the compliance notifications in a timely manner. The Facility Director will also keep a record, independent of the Track and Trace system, of all compliance notifications received from the Track and Trace system, and how and when compliance was achieved. If the Facility Director is unable to resolve a compliance notification within three business days of receiving the notification, the licensee shall notify the Bureau immediately. ● The Track and Trace account manager and other distribution team members responsible for inventory management, tracking, and reporting will be assigned a unique log-on, consisting of a username and password, to the inventory management system. Only the Track and Trace account manager will create a unique log-on, consisting of a username and password, to the CCTT-Metrc Track and Trace system. ○ The Track and Trace account manager will maintain a complete, accurate, and up- to-date list of all Track and Trace system users, consisting of their full names and usernames. ● The account manager and inventory management system users will only access the software under their assigned log-on, and will not use or access a log-on of any other team member or individual. No account manager or user will share or transfer his or her log-on, username, or password to be used by any other team member or individual. ● All cannabis goods approved for transport will be seamlessly tracked by the distribution team using the inventory management system. All shipment and payment data will be regularly scanned and uploaded into the system and reconciled with the total inventory count. These scanned documents may be retrieved at any time in the event of an audit, inspection, or other Bureau request for at least seven years. ● The information to be scanned and uploaded into the order history on the inventory management system include: ○ Documentation of the fact that the shipping manifest was created. ○ Documentation of the licensee that originated the order. ○ Documentation that the shipping manifest was securely transmitted to the Bureau of Cannabis Control and the receiving licensee at least 48 hours prior to transport. ○ Documentation of the successful confirmation of the order via phone. ○ Documentation of the names and identification numbers of the delivery team members assigned to the order, including the delivery driver. ○ Documentation of the name and identification number of the Security Officer during the time of delivery. ○ Documentation of the date and start time of the trip. 40 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ○ Documentation of the cannabis goods being transported. ○ Documentation of the planned route of travel. ○ Documentation of the printed receipt and signature of the recipient of the order at the licensed facility that received a shipment of cannabis goods. ○ Documentation of any incidents, stoppages, interactions with Bureau or law enforcement officials, and adverse losses occurring during transit. ○ Other documentation as required to ensure compliance inventory procedures. MONTHLY INVENTORY AUDITS & RECONCILIATION To ensure the security of cannabis goods, FEED will conduct monthly audits and inventory reconciliation activities at least every 30 days, or as frequently as is required by state and local regulations. These regular inventory audits will ensure all cannabis and cannabis products are fully and accurately accounted for at all times. The distribution team with the support of our microbusiness management team will be responsible for conducting and ensuring compliance with these procedures for inventory audits and reconciliation: ● All inventories of cannabis goods will be reconciled at least once every 14 days. ● An inventory log will be maintained through the inventory management software (and hard copied documentation as required by Bureau rules and regulations), which will record, aggregate, and analyze inventory data entered. ● The inventory log will contain the following information for each batch of cannabis goods: ○ The name and license number of the manufacturer or cultivator who provided the batch ○ The date of entry into the storage area ○ The unique identifiers and batch number associated with the batch ○ A description of the cannabis goods with enough detail to easily identify the batch ○ The weight of or quantity of units in the batch ○ The best-by, sell-by, or expiration date of the batch, if any ○ Where or the premises the batch is physically located/kept ● When conducting inventories of cannabis goods, the FEED distribution team will use the inventory management system audit log to pull all required documentation prior to beginning the inventory. ● After pulling required documentation for the inventory audit, the FEED distribution team will use the audit log to report false positives and negatives within the inventory database and will use the system’s audit log report to report inventory data to the Bureau and State of California as required by state and local rules and regulations. ● During an inventory audit, if a discrepancy is discovered between the inventory of stock and the inventory log or Track and Trace system that is outside of normal weight loss caused by moisture loss, the FEED distribution team will conduct a full audit of the batch in which the discrepancy is found. If needed, the team will review video surveillance footage, key card room access logs, inventory tracking reports in the Track and Trace system, and other documentation as required. ○ FEED will ensure that the selected inventory management system allows task creation, delegation, and management abilities over different groups of employees 41 Copyright © 2020 by Fresno Equity & Enterprise Development LLC across the facility and licensed premise to provide an additional asset to cross- reference if inventory discrepancies are found. ● After determining the cause of the discrepancy, the FEED distribution team will reconcile the inventory report and follow the procedures for documenting product loss outlined below. AUDIT & RECONCILIATION PROCEDURES FEED will use the following Monthly Inventory Audit & Reconciliation procedures to provide an objective examination of inventory records and an independent review of physical inventory along with the company’s inventory management procedures. The Security & Compliance Manager will be responsible for ensuring that audits are performed timely and properly. The Facility Director with the support of department heads will be responsible for conducting and overseeing all audits, including filing all appropriate reports. As appropriate, the company will utilize internal and external auditors to assist in inventory audits. The procedures are as follows: 1. The Facility Director, with the assistance of staff, will conduct a full count of physical inventory in all secure storage areas throughout the licensed premises. 2. Employees will use hand scanners to scan the tags of all cannabis materials for immediate reconciliation with the company’s electronic inventory records. 3. The Security & Compliance Manager will prepare a report which includes at a minimum: a.The date of the inventory. b. The amount of cannabis on hand, including: i.The total count of plants, whether in the flowering, vegetative, or clone phase of growth, organized by room in which the plants are being grown; ii.The total count of finished products, including their unique batch or lot (or sub-lot) identifiers; iii.The batch or lot number, weight, and strain name of all items that have been quarantined; and iv. The batch or lot number, weight, and strain name of all samples that have been sent for testing. v. The amount of cannabis transferred since the previous inventory audit, including date of transfer; license number and name of the license it was transferred to; and the batch or lot number, registered product name and quantity of cannabis transferred. c.The report will include a narrative summary of the inventory findings and the names, signatures, and title of the employees who participated in the inventory audit. NOTIFYING THE CITY In accordance with 9-3311(b)(4) of the Fresno Code, within 24-hours after discovering any of the following, FEED will notify the City Manager or his/her designees: 42 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Significant discrepancies identified during inventory. FEED acknowledges the level of significance will be determined by the regulations promulgated by the City Manager or his/her designee(s). ● Diversion, theft, loss, or any criminal activity involving the distributor or any agent or employee of the distributor. ● The loss or unauthorized alteration of records related to cannabis, or employees or agents of the commercial cannabis business. ● Any other breach of security. iv. Describe the quality control procedures designed to ensure all cannabis is properly packaged, labeled and tested. QUALITY CONTROL PROCEDURES For all licensed distribution activities, FEED will implement and maintain strict quality control systems and protocols to ensure product integrity, consumer safety, and quality assurance. The FEED team will ensure that all non-laboratory quality control procedures are conducted according to all applicable local and Bureau rules and regulations, especially regarding the procedures for preventing the deterioration of held and stored cannabis goods, the procedures for ensuring that cannabis goods are properly packaged and labeled prior to retail sale, and procedures for ensuring that a licensed testing laboratory samples and analyzes cannabis goods held by FEED as follows: PREVENTING DETERIORATION FEED will follow these procedures to prevent deterioration of cannabis goods: ● All cannabis goods will be stored in climate controlled rooms that maintain a temperature of 65 degrees (F) along with steady humidity control. Finished products will be manufactured to be shelf stable. Any perishable unfinished products or ingredients will be stored in a freezer or refrigerator, especially any cannabis biomass. ● Cannabis biomass will be stored in airtight, opaque, and sealed containers to prevent deterioration. Containers will include humidor packs that include tabs to indicate if climate controls have failed. ● For any perishable items or food grade ingredients, inventory procedures will include monitoring of any and all expiration dates and humidor pack indicator tabs. Any expired items or ingredients will be discarded according to Bureau rules and regulations and California Food and Safety codes. ● To prevent potential cross contamination and deterioration of cannabis goods, all cannabis goods will be placed in quarantine while undergoing required licensed laboratory testing. Before testing, cannabis goods will be stored in the Quarantine Untested Storage Room, where all testing samples will be collected and testing batches sealed. Batches sealed for testing will be stored in unique, locking storage containers. After testing batches are sampled and sealed, they will be transferred to the Quarantine Pending COA Room to await the test results. ○ The video surveillance system will be programmed to keep recordings of testing samples and batch sealing for a total of 180 days. ● Double sign off procedures are required for transferring anything out of the Quarantine Pending COA Storage Room. If a cannabis good passes required licensed laboratory 43 Copyright © 2020 by Fresno Equity & Enterprise Development LLC testing, both the Head of Distribution and a second distribution team member will sign off on the passed testing, before transferring the approved cannabis goods to the Retail Ready Storage Room and reporting the inventory move through the Track and Trace system. ● Finally, products ready for delivery will be transferred to the Distribution Outbound room, where they are packaged and labeled for shipment. ● All storage of and movement of cannabis goods will be monitored through internal inventory management systems and the Track and Trace system at all times. ENSURING COMPLIANT PACKAGING & LABELING FEED will follow these procedures to ensure all cannabis goods comply with all packaging and labeling requirements: ● The FEED Security & Compliance Manager will be well versed and proficient in all Bureau packaging and labeling guidelines, especially child and tamper proof packaging rules, and will be responsible for ensuring all packaging and labeling compliance. ● When the facility receives cannabis goods ready for retail sale, the Security & Compliance Manager will be responsible for ensuring cannabis goods are packaged and labeled in compliance with Bureau rules and regulations prior to taking custody of the goods. ○ FEED will not intake any cannabis goods that are not in compliance with packaging and labeling guidelines, unless specifically contracted to remediate or re-package/relabel products in house. The Security & Compliance Manager will need to pre-approve the intake of any non-compliant cannabis goods. ● Any cannabis goods produced by other FEED licenses (including cultivation and manufacturing), should be properly packaged and labeled for retail sale (if applicable) before being transferred to the Distribution license. ● If any cannabis goods in custody of FEED distribution are not ready for retail sale, the finishing team will be directed to package, re-package, label, and re-label cannabis for retail sale in accordance with all Bureau rules and regulations. ● If it is determined during licensed laboratory testing that a manufactured product in custody of FEED is labeled with the incorrect amount of THC per package or serving, but is within the THC limits for retail sale, then FEED will re-label the package with the accurate THC amount. ● The Security & Compliance Manager will be required to review and approve all cannabis goods for compliance with packaging and labeling guidelines before approving the cannabis goods for shipment or transport. ENSURING LICENSED LABORATORY TESTING FEED will follow these procedures to ensure all cannabis goods were tested by a licensed Testing Laboratory in compliance with all applicable Bureau rules and regulations: ● Before the intake of any cannabis goods into FEED distribution facilities, Security & Compliance Manager will ensure that required laboratory testing has taken place before reviewing and approving the intake of cannabis goods. ○ Depending on the size and amount of cannabis goods slated for intake, the Facility Director may approve product dependent special circumstances where the cannabis goods can be tested after it is received by FEED. 44 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ○ All cannabis goods not produced by FEED will need to pass required laboratory testing before entering the distribution pipeline and retail market. ● As soon as cannabis goods produced by FEED are transferred to the Quarantine Untested Storage Room, the Head of Distribution will coordinate required laboratory testing and quarantine of the testing batch until the Certificate of Analysis is received, reviewed, and approved for distribution. ● Before the transfer of any cannabis goods from FEED distribution facilities, Security & Compliance Manager will also ensure that required laboratory testing has taken place to provide two party authentication. ○ Licensed testing laboratory staff will collect the sample and seal the testing batch. FEED Security & Compliance Manager will observe and review this process, being sure not to impede the laboratory staff’s process. ○ Upon receipt of the certificate of analysis, both the Head of Distribution and Security & Compliance Manager will be required to review the test results and approve the cannabis goods for distribution. ● When FEED receives a Certificate of Analysis stating that the sample meets specification required by Bureau rules and regulations, the Security & Compliance Manager will conduct a quality assurance review and ensure the follow procedures are followed before transporting the cannabis goods: ○ The certificate of analysis received from the testing laboratory is the certificate of analysis that corresponds to the testing batch. ○ The label on the cannabis goods is consistent with the certificate of analysis regarding cannabinoid content and contaminants required to be listed. ○ The packaging complies with applicable packaging laws including, but not limited to, Business and Professions Code section 26120. ○ The packaging is tamper-evident. “Tamper-evident” means 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. ○ The weight or count of the cannabis batch comports with that in the Track and Trace system. A distributor shall use scales as required by the Bureau rules and regulations. ○ All events prior to receipt have been entered into the Track and Trace system. 1.8. Fully describe the day-to-day operations if you are applying for a MANUFACTURING permit: 1.8.1. Criteria for manufacturing operations: MANUFACTURING DAILY OPERATIONS FEED is fully committed to manufacturing a continuous supply of high quality, safe, and consistent cannabis products to the regulated California market. Our operational procedures for the safe and effective processing, extraction, refinement, and manufacturing of cannabis products is absolutely essential to the fulfillment of this objective. 45 Copyright © 2020 by Fresno Equity & Enterprise Development LLC SOP PRINCIPLES We understand that achieving a consistent and reliable yield of quality manufactured cannabis products requires strict SOPs that ensure the safety and sanitary nature of our operations. All of our processing SOPs are built on an operational compliance foundation consisting of four key components: 1.Personal Protection Equipment (PPE): Employees in all departments will be held to strict standards on how to initially garb and deconstruct PPE. Our PPE materials will be sourced from FDA, EPA, USDA, OSHA, and/or USP approved suppliers for hospital, agricultural, manufacturing, and food grade facilities. 2.Inventory Control: From initial plant material intake to finished product packaging and at all handling stages in between, employees will weigh items both at initial intake and after operational manipulation. Documentation of results will be recorded on Daily Inventory Worksheets and entered into the inventory management and CCTT-Metrc track and trace systems. 3.Retention Samples: Physical samples will be retained from each batch at each stage of production. These samples will be labeled with the date, batch number and stage of production and will be stored on-site until the batch has reached its expiration date. These samples will provide physical evidence in the event of an adverse event or other concerns of nonconforming product that demand further investigation, including from a recall. 4.Sanitation: Before starting a shift or after completing a workday, employees will clean and disinfect work surfaces, floors, walls (where needed), and facility common areas (employee break rooms, bathrooms, hallways, etc.). Operational zone sanitation practices will follow cGMP and cGLP protocols utilizing USP 757/795 accredited agents (isopropyl alcohol, hydrogen peroxide, acetone) and all other sanitation procedures will follow best practices for healthcare settings utilizing detergents, soaps, and housekeeping cleaners approved for use around vegetables, fruit, medicinal plants, or food contact surfaces. i. Identify all cannabis products manufactured within the permitted premises. MANUFACTURED PRODUCTS FEED’s manufacturing operations have been designed to produce a variety of different products that address a spectrum of consumer needs and preferences. We will only ever manufacture cannabis products in forms approved by both the California Department of Health Manufactured Cannabis Safety Branch and City of Fresno regulators, to ensure compliance and consumer safety. FEED will disclose and provide detailed product descriptions including formulation, manufacturing protocols, batch production records, product quality plans, packaging and labeling specifications, and any other information requested to all relevant state and city departments for review and approval prior to beginning production. 46 Copyright © 2020 by Fresno Equity & Enterprise Development LLC California Type 12 Microbusiness licenses are a Level 1 license that only allows for the Type 6 manufacture of products through non-volatile solvents. FEED’s manufacturing process will only use ethanol extraction, which is approved for Type 6 licensed manufacturing operations. We will not use hydrocarbon extraction methods that utilize butane, propane, hexane or other volatile solvents. Each type of cannabis product produced at our facility will be designed and manufactured in compliance with all state and city regulations for packaging and labeling. Production standards include packaging in childproof, tamper-evident, opaque, re-sealable containers that minimize exposure to oxygen as well as labels specifying concentration of total THC and total CBD and other required label information. FEED intends to manufacture the following cannabis products: Concentrates Manufacturing operations will have the capacity to produce a variety of extracted medical cannabis oil, refined and concentrated through further processing to be sold as cannabis concentrates, which will be packaged for distribution in half gram units and intended for ingestion or inhalation through vaporization. Popular forms of concentrate include live resin, shatter, budder, and hash to name a few. The concentrated cannabis oil produced for this product category will also be used as the base active ingredient in the other three manufactured product categories. To produce these other product types, refined and concentrated cannabis oils will be formulated for vape cartridges and infused into both edibles and tinctures described below. Vape Cartridges FEED’s manufacturing department will use our refined and concentrated cannabis oil to formulate and produce vape cartridges, which will be filled and packaged for distribution in half gram formats and intended for inhalation through vaporization. Due to the recent health concerns with common additives to vape cartridges, FEED will only produce additive free vape cartridges without known carcinogens such as polyethylene glycol, vegetable oil, vitamin e acetate, or other carrier oils not intended for inhalation. The formulation for our cartridges will be fairly straightforward and include only a mixture of distilled THC oil, distilled CBD oil, and roughly 8- 20% cannabis-derived and organic terpenes, which add flavor as well as take advantage of the entourage effect between and among cannabinoids and terpenes. Edibles Manufacturing operations will also have the capacity to produce a variety of cannabis infused food products commonly called edibles, which will be packaged for distribution as single units and intended for ingestion as a food or beverage product. FEED will be capable of producing a variety of edible products including gummies, syrup, baked goods, and small batch chocolate. Tinctures FEED’s manufacturing department will use our refined cannabis oil and produce glycerin-based cannabis tinctures, which will be packaged for distribution in single units (typically 1 or 2 oz. 47 Copyright © 2020 by Fresno Equity & Enterprise Development LLC amber colored bottles) and intended for sublingual application by dropping or spraying under the tongue and soft tissues in the mouth. The formulations will mainly consist of food-grade vegetable glycerin with distilled oil, flavorings, and emulsifiers. NON-MANUFACTURED PRODUCTS In addition to these manufactured products, it should also be noted that FEED’s microbusiness operations will also produce non-manufactured products in the cultivation department, including both finished flower and pre-roll products. Any plant material not selected by the cultivation for processing and packaging as a finished flower or pre-roll product, such as the extra trim, stems, leaves, and other (non-waste) plant material will be transferred Flower FEED’s cultivation operations will grow, harvest, dry, cure, and process high quality cannabis flowers, which will be packaged for distribution into individual eighth ounces packages/units and intended for consumption via inhalation through either smoking or vaporization. Production batches will be varied based on strain, cannabinoid and terpene profiles, and production methods. Pre-Rolls FEED will also take the same high quality cannabis flower produced by the cultivation department to grind and be processed into pre-rolled joints or pre-rolls, which will be packaged for distribution as individual half- or one-gram units and intended for consumption through inhalation via smoking. Production batches will also be varied by strain, cannabinoid and terpene profile, production methods, and overall unit size. ii. Describe quality control procedures. MANUFACTURING QUALITY CONTROL PROCEDURES FEED’s manufacturing procedures have been designed to integrate the quality control procedures throughout every aspect of production to ensure product quality and consumer safety. In accordance with state regulations, FEED will follow these quality control procedures to implement a quality control program to ensure that cannabis products are not adulterated or misbranded, including operational considerations of the following: ●Facility: maintenance of the grounds, building, and manufacturing premises ●Equipment & Utensils: safe use and maintenance of all equipment and utensils, including design, installation, and cleaning/sanitation/maintenance ●Personnel: appreciate staffing and personnel training to address disease control, cleanliness, and safety ●Product Components: ensuring and maintaining the quality of cannabis product components to prevent the adulteration of products ●Quality Assurance: implementing and maintaining manufacturing processes and procedures that ensure cannabis product quality ●Supervision: quality control under the supervision of one or more qualified individuals assigned to the responsibility for this function 48 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Our Security & Compliance Manager and our Head of Manufacturing will work together to implement and maintain our quality management system, which assesses the chemical and microbiological composition of cannabidiol. Assessment includes a profile of the active ingredients, including shelf life, and the presence of inactive ingredients and contaminants. The testing and the test results will help determine appropriate storage conditions and expiration dates. QUALITY ASSURANCE AND QUALITY CONTROL CHECK POINTS There will be Quality Assurance and Quality Control assessments at the following designated points in the manufacturing processes and procedures: ●Biomass Intake: Document review, visual inspection for contaminants/degradation, weight verification, third party analytical testing ●Extraction & Formulation: Document review, visual inspection for contaminants/degradation, weight verification, equipment calibration ●Production & Moulding: Weight verification, visual inspection for impurities or contamination/degradation, equipment calibration ●Flow Wrapping & Storage: Weight verification, visual inspection for impurities or contamination/degradation, equipment calibration ●Packaging & Labeling: Visual inspection of all labels, seals, and heat lock; equipment calibration, ●Transferring, Storage & Final Labeling: third party analytical testing to measure potency and ensure formulation is accurate, document review, visual inspection of all completed products by a qualified employee to ensure the product is adherent to the FEED quality standards Manufacturing Best Practices FEED is fully committed to providing a safe, healthy, and clean processing and manufacturing environment for our manufacturing operations to ensure the health, safety, and welfare of the public or to neighboring properties. To achieve this, our team will employ a Quality Management System based on the US Food and Drug Administration (FDA) current Good Manufacturing Practices (cGMP) in other industries (specifically, Title 21 CFR Part 111) and will follow OSHA standards for General Industry, especially as they pertain to the handling of industrial equipment and hazardous materials (29 CFR 1910). We will also ensure that these cGMP processes comply with State Department of Health standards. These cGMP processes implement quality assurance oversight that ensure efficient and safe production of cannabis products fit for consumption. Our manufacturing department will develop cGMP-based standard operating procedures (SOPs), and a comprehensive training plan prior to producing cannabis goods for the marketplace. All manufacturing operations will be conducted in a manner that is compliant with the California Fire Code, California Building Code, and edible product manufacturing will be in compliance with the California Department of Public Health Food and Drug Branch regulations. Manufacturing operations will also comply with all applicable state standards and laws, including but not limited to, Section 19353 of the Business and Professions Code, and Sections 11362.775 and 11362.9 of the Health and Safety Code. 49 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Additionally, FEED’s extraction and manufacturing operations will be reviewed and approved by the Fresno Fire Department and will be operated in accordance with all relevant state and local requirements. We will only use non-volatile solvents or mechanical processes to create or refine extracts if approved by the Fresno Fire department. In the event that our microbusiness changes the medium of extraction or solvent used in manufacturing from the type previously approved, we will submit a report for approval by the Fresno Fire Department prior to the use of the equipment with said new medium or solvent. We also commit to carrying the costs of any technical report revisions. FEED’s strict SOPs across all departments ensure that edible cannabis products are manufactured, distributed, and transported in a manner that complies with all applicable food safety laws for the protection of humans consuming cannabis. We will ensure that anyone that participates in the production of edible cannabis products will be State certified food handlers. FEED will work with all manufacturing staff to complete the process to obtain their food handlers permit and will maintain the valid certificate number of each such person on record at the licensed premises where edible products will be produced. Additionally, our manufacturing premises have been designed in compliance with the following criteria: ● All products, storage facilities, utensils, equipment, and materials used for the manufacture of edible cannabis products will be approved, used, managed, and handled in accordance with the provisions of all state and local laws regarding the preparation, distribution, labeling, and sale of food. ● Our facility, which intends to prepare, store, dispense, and distribute edible cannabis products, will comply with the relevant provisions of all state and local laws regarding the preparation, distribution, labeling, and sale of food. ● No non-cannabis food production will be allowed in our facility where edible cannabis products are manufactured in order to avoid the unintentional contamination of non- cannabis foods with cannabis. ● Our facility will be constructed, permitted, operated, and inspected in accordance with the applicable building code and applicable food safety requirements. FEED’s cGMP processes will ensure that all cannabis products are processed in a safe and sanitary manner, and handled on food-grade stainless-steel, HSF, or FDA approved material. Safety procedures will also be strictly enforced for all pieces of equipment, and for all areas in which that equipment is utilized. The following overall safety guidelines will apply throughout: ● More than one person must be present at any time equipment is in use. ● An emergency shut-off switch must be within reach of the equipment operator. ● No personnel may operate a machine before undergoing a complete training module for that machine. ● Standard Operating Procedures and Safety Guidelines for each machine must be laminated and located next to each machine. ● Lab books will record each machine use by operator, procedure, weight in and weight out. ● Each machine will maintain a record of maintenance and cleaning. 50 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Each machine will be inspected per its manufacturer’s specifications and its parts serviced, replaced and recalibrated as needed. HACCP-Based Product Quality Plans FEED will develop comprehensive Product Quality Plans (PQPs) for all cannabis products produced by our manufacturing department, which will be based in the Hazard Analysis and Critical Control Points (HACCP) management system principles. These product quality plans will ensure we meet our continuous obligation to identify and evaluate known or reasonably foreseeable hazards including allergens and to implement written preventative controls to significantly minimize or prevent manufactured cannabis products from becoming adulterated or misbranded. We will also develop the affiliated documentation of Master Manufacturing Protocols and Batch Production Records. FEED’s product quality plans will also include strict procedures and training for hazardous material handling requirements. The PQPs address the hazards associated with the premises or the manufacturing process that, if not properly mitigated, may cause the product to be adulterated or misbranded, or may cause the product to fail third party testing or quality assurance review. In the event that FEED uses and generates hazardous materials or hazardous waste, we will comply with all applicable hazardous material regulations for hazardous waste generators. To create our PQPs, FEED will conduct a comprehensive assessment of the overall manufacturing process, identifying each step from component intake through transfer of product from the premises, to determine the potential risks associated with each step, the preventive measures to mitigate the potential risks identified, the methods to evaluate and monitor the effectiveness of the preventive measures, and action to take if a preventive measure was unsuccessful. The product quality plan will evaluate biological hazards, chemical hazards, physical hazards, and process failures. These comprehensive HACCP-based plans will be living documents, and FEED will maintain them with documentation of preventive measures, monitoring results, and corrective actions taken. ADDRESSING COMPLIANTS AND RECALLS FEED will follow these procedures to address any product complaints and recalls: Complaints ● The unique batch ID generated in the inventory management system will be used to maintain inventory controls for complaints. ● The Head of Manufacturing will keep an archival example of every single cannabis goods batch produced by the facility, for reference in the event of complaints. ● When a complaint is received, the Head of Manufacturing will review and investigate all product complaints to determine whether such complaints involve a possible failure of a cannabis product to meet any of its specifications. ● After reviewing and investigating, the Head of Manufacturing will review and approve decisions determining whether to investigate a product complaint and will review and approve the findings and follow up on action(s) of any investigation performed. ● The Head of Manufacturing will maintain written records for every product complaint and subsequent investigation, if any. The records will include: 51 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ○ The name and description of the cannabis product ○ The batch number or UID of the cannabis product,if available ○ The date the complaint was received and the name, address,and/or telephone number of the complainant, if available ○ The nature of the complaint including,if known,how the product was used; ○ The Reply To The Complainant,if any ○ Any findings of the investigation and/or follow-up action taken when an investigation is performed ● The unique batch ID generated in the inventory management system will be used to maintain inventory controls for complaints. Recalls ● The unique batch ID generated in the inventory management system will be used to maintain inventory controls for recalls. ● The Head of Manufacturing will keep an archival example of every single cannabis goods batch produced by the facility, for reference in the event of recalls. ● When a complaint is received, the Head of Manufacturing will review and investigate all product recalls to determine factors which necessitate a recall, personnel responsible for implementing the recall procedures, and notification protocols including a mechanism to notify all customers that have or could have obtained the product, a mechanism to notify any licensees that supplies or received the products, and instructions to the general public or other licensees on the return and/or destruction of recalled product. ● The Head of Manufacturing will be responsible for overseeing the collection and destruction of any recalled products that meet these requirements: ● All recalled products intended to be destroyed will be quarantined for a minimum of 72 hours, the state will be notified of the quarantine within 24 hours, and quarantines products will be affixed with any bills of lading, shipping manifests, or other similar documents with product information and weight. ● Rendering the recalled cannabis products unusable and unrecognizable on video surveillance, and ensuring compliant disposal of chemical, dangerous, or hazardous waste in a manner consistent with federal, state, and local laws. Recalled products will not be disposed of in an unsecured area or waste receptacle that is not in the possession and/or control of FEED. ● Using the inventory management system to ensure that recalled cannabis products intended for destruction are identified, weighted, and tracked while on the licensed premise and disposed of in accordance with state rules and regulations. iii. Describe inventory control procedures. MANUFACTURING INVENTORY CONTROL As outlined in significant detail in the Daily Distribution Operations outlined above, FEED will maintain strict inventory control procedures to ensure operational safety, prevent diversion and deterioration, and ensure product safety and integrity. We will generate all required record keeping documentation and follow all required recordkeeping and reporting protocols for inventory management and tracking activities for receiving shipments, storing inventory, 52 Copyright © 2020 by Fresno Equity & Enterprise Development LLC maintaining accurate records of the inventory, ensuring inventory records are accurate, and performing inventory reconciliation, as required by all relevant state and local regulations. When approved, FEED’s selected inventory management system will be used to manage and track inventory of cannabis goods and will be used to conduct required reporting to the CCTT- Metrc track and trace system. Only authorized personnel will enter and record complete and accurate information into the inventory management and track and trace systems,and will correct any known errors entered into the CCTT-Metrc system immediately upon discovery. Further inventory control considerations specific to FEED’s manufacturing operations are detailed as follows: INVENTORY CONTROL PLAN FEED’s Inventory Control Plan is founded on a system that closely logs, tracks, and regularly audits each unit of cannabis to ensure an accurate, real-time record of all inventory. Our strict inventory management procedures will tag and track all cannabis from intake through to final format and transfer for distribution as well as destruction, disposal, or recall activities. The core components of our inventory control and management systems include: ● Strict Chain of Custody: While two employees will be required to move or transfer cannabis products, only a single employee will be granted custody of any product batch at a time. This employee must corroborate the accuracy of all of the data of the inventory they are accepting and must do so again at the point that custody is shifted to another employee, to/from storage, or to/from the other departments/licensees. ● Accurate Weights and Measures: All scales and weighing devices will be maintained in good working order, approved, testing, sealed, and registered in compliance with Division 5 (“Weights and Measures”) of the California Business and Professions Code, any regulations implemented by the Manufactured Cannabis Safety Branch, and all other applicable federal, state, and local laws. We will never use scales, weights, or measures that do not accurately conform to the standard of weights and measures of the state and county. ● Constant Data Recording: The weight, volume, batch number, and product description will be recorded upon intake and sale; removal from or return to secure storage; or handed over from one employee to another. ● Inventory Reconciliation: Regular inventory reconciliation will ensure accurate tracking and reporting, including daily reconciliations and monthly audits. At least two authorized employees must be present and a written record will be generated for each reconciliation and/or audit. ○ In the event of an inventory discrepancy, our team will immediately conduct an investigation to identify the cause, take corrective action as necessary, and produce a final report. If criminal activity is suspected, it will be reported to the Department and law enforcement within 24 hours. ● RFID Tags: Product batches and orders will be tagged with an RFID device so that all tracking data is fully automated, allowing us to accurately track the physical location of all products. 53 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Monitoring and Auditing: The supervisors will regularly monitor employee actions throughout the facility and our Security & Compliance Manager will perform regular surveillance audits of high-risk events (e.g., during cash handling) to enforce our zero- tolerance commitment to procedural compliance. INVENTORY STORAGE & HANDLING PROCEDURES When storing cannabis goods, FEED will follow these inventory management and tracking procedures: ● Cannabis goods will flow through the Manufacturing Storage Rooms in the following order: ○Appropriate Secure Storage Room: upon intake, will be stored in either the room temperature, cold, or frozen secured storage rooms ○Manufacturing Vault: organized by type of cannabis goods (various states of extractions/manufactured products) as well as batches out for licensed laboratory testing ○Distribution Licensed Premises: after manufacture, general finished inventory will be pulled and organized for transfers/shipments to the distribution department ● While in storage rooms, shelf stable cannabis goods will be stored on industrial shelves made of non-porous materials. Non-shelf stable cannabis goods will be stored in large refrigerators or freezers to maintain freshness and product integrity. ● When cannabis goods are being transferred from room to room within the licensed premise, the following procedures will be followed: ○ Two manufacturing team members, including one department manager, will be required to conduct any movement of cannabis goods within the facility. ○ Manufacturing team members will ensure that physical inventory matches the digital inventory in the inventory management system. ○ After ensuring consistency, the two team members will physically move the cannabis goods to a new secure storage location using facility transport carts and use barcode scanners to report location changes to the inventory management system. ○ After the physical move, the team members will immediately report the updated inventory location to the inventory management system. FIRST IN FIRST OUT POLICY FEED will use the following First In First Out (“FIFO”) policy procedure to ensure that the company follows a strict first in, first out inventory methodology whereby the oldest stock of a product is distributed first. All manufacturing staff are responsible for first in, first out procedures, which are as follows: ● To ensure product quality, the company will follow a strict FIFO inventory methodology. ● Staff will utilize the oldest stock of a product to ensure it is distributed and utilized first. ● As the manufacturing team manages inventory, the company’s inventory management system will automatically alert them if a newer product is selected for distribution when an identical older product is ready and available. 54 Copyright © 2020 by Fresno Equity & Enterprise Development LLC CHECK IN/CHECK OUT PROCEDURES FEED will use the following Storage Check-In & Check-Out procedures to ensure that a standard process is followed for checking-in and checking-out any cannabis materials and products from the facility’s secure storage areas. Check-In To check cannabis materials into the storage repository, authorized manufacturing staff will: 1. Bring the materials to the secure storage room; 2. Weigh the materials; and 3. Record the materials as transferred to storage inventory. Check-Out To check cannabis materials out of the storage repository, authorized manufacturing staff will: 1. Collect the materials in the secure storage room; 2. Weigh the materials; and 3. Record the materials as transferred from storage inventory. General 1. After each production step is completed, the cannabis material and/or finished cannabis products will be returned to the storage repository, re-weighed, and checked back into storage inventory. 2. When cannabis material and/or finished cannabis products are checked back into the storage repository, the authorized employee will reconcile the recorded check-in weights against the amount of the cannabis materials that had previously been checked-out. For example, if 100 grams of processed cannabis oil are checked out by an authorized employee, 100 grams of product (e.g., 400 tincture bottles of 250 milligrams each), must be checked back into the storage repository, less any abnormal loss. 3. The math must match! 4. Employees must flag any batch or lot that has losses that exceed the company’s standards for normal loss, which will be established by the Head of Cultivation and known to all. iv. Describe the extraction process, equipment and room in which extractions will be conducted. MANUFACTURING FACILITY & PROCEDURES OVERVIEW The licensed manufacturing premises is the segregated area of the building directly down the hallways from the Reception area and across from the Security Office, and is designed to include the following rooms and work areas, which are detailed with type of cannabis activity conducted in each room or area: ●Manufacturing Office: main office for licensed manufacturing and quality control activities, especially for track and trace reporting, recordkeeping, as well as inventory tracking and management ●Manufacturing Vault: secure storage room for cannabis goods that are being extracted, manufactured, sampled, and stored for third party testing; locational of archival QC storage 55 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●C1D1 Extraction Room: Class 1, Division 1certified room for all licensed extraction operations using solvents, heat, and/or pressure; includes Chiller Room where chillers for the extraction systems are stored and Column Packing Room where columns for the extraction system are packed ●Extraction & Manufacturing Lab: laboratory space for post-extraction processing, manufacturing of finished cannabis products, and weighing/measuring finished products ●Flex Work/Packaging Area:large work space with adjustable workstations and spaces used to package and label finished manufactured products ●Freezer Storage Room: secure storage room for frozen storage of biomass/extracts and solvent storage as needed ●Refrigerated Storage Room: secure storage room for cold storage of biomass/extracts and solvent storage as needed ●Biomass Storage Room: secure storage room for room temperature storage of biomass as well as packaging, labeling, and non-cannabis ingredients All rooms are outfitted with HEPA filtration systems, negative pressure, and laminate flow, with the exception of the C1D1 extraction room that is outfitted according to its respective room standards. These rooms will exist in a warehouse facility that will also include indoor cultivation operations, distribution operations, secure storage, administrative offices, and shipping/receiving areas. Strict facility SOPs will ensure that cannabis products will never be visible from a public or private road, sidewalk, park, or any common public viewing area. From receipt of plant material to packaging of the final product, FEED will implement a six-part process as detailed below to ensure that every cannabis product produced by our manufacturing department is of the highest possible quality and produced in the safest possible manner. In all manufacturing operations, our microbusiness will comply with all applicable OSHA regulations and only operate after complying with, and passing inspection from, all applicable fire, safety, and building codes as well as the CDPH and City of Fresno. 1. Grinding & Homogenization Our starting plant material must first be homogenized through grinding, which will maximize the available surface area to ensure that all of the resin-containing trichomes are exposed to the extraction system. If applicable for the final product being produced, a flash freezing process using liquid nitrogen in a commercial immersion freezer will ensure plant material is brittle enough to crumble upon grinding. For the grinding step, we will use an industrial food-grade pulverizer. The resulting material will have the appearance of a course, green powder. 2. Ethanol Extraction We will implement an ethanol-based extraction process in order to craft medical cannabis products in precise cannabinoid and terpene ratios; products that maintain the exact same constituents, free of impurities, from product to product and from batch to batch. This process, which uses ethanol alcohol to extract essential oils from plant material, will take place in our Class 1 Division 1 (C1D1) rated Extraction Room. Plant material will be processed using certified food grade ethanol with the requirements of 99.5% purity or better. Additionally, all equipment that comes in direct contact with the oil (filter flask, Buchner filter, high 56 Copyright © 2020 by Fresno Equity & Enterprise Development LLC borosilicate beakers, and filter paper) will be certified food grade and will be purchased from an accredited laboratory supply company. The machinery intended for use is the Precision Extraction Solutions X10 MSE Extraction System (multi-solvent extractor) or equivalent. The system can accommodate ethanol solvents and process more than 10 pounds of material per run with an average 55-minute recovery time. The X10 MSE Extraction System is built to UL specifications for safety and comes equipped with on-demand heating and chilling, which allow maximum control and ease of operation. Nearly all of the solvent is recaptured at the end of the extraction process and the remaining solvents are purged, using rotary evaporator and vacuum ovens, from the resulting oil in post- extraction processing. Ethanol will be removed from the extract in a manner to recapture the solvent and ensure that it is not vented into the atmosphere. Additional machinery includes: ● Gas Compressor ● CS Chiller ● Refrigerated Heating Circulator ● Heating Bath Circulator ● Vacuum Pump ● Vaneometer 3. Post-Extraction Processing The raw cannabis oil that results from the initial extraction activities will be further refined through several post-extraction processing activities as follows: Decarboxylation The raw cannabis oil will be converted from its acidic, inactive cannabinoid state to an activated form for the manufacture of finished cannabis products through a chemical process called decarboxylation. Decarboxylation involves heating the raw cannabis oil to a low temperature (usually below 120 degrees Fahrenheit) to ‘activate’ the cannabinoids. Since the extracted oil will have some volatile organic compounds evaporate upon heating, this process will be performed in a laminar flow fume hood on several stir- bar/heat plates to ensure precise heating and mixing during the process, as well as to ensure, for safety, that fumes are properly ventilated and not pumped into an enclosed space. The hood’s motor will be explosion- and spark-proof and its light will also be vapor-, explosion- and spark-proof. Employees will weigh and document oil to be decarboxylated and slowly melt the concentrate material in a beaker on a hotplate until the material converts from solid to liquid state. Once liquid state is reached, the magnetic stir rod is engaged to half vortex the beaker (700-750 RPM). A steel or glass stir rod will be used to ensure product homogenization. The oil will reach decarboxylation after approximately 2 to 5 hours. 57 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Winterization Winterizing oil after extraction is the process of using a secondary solvent (often ethanol or grape alcohol) to separate the fats, waxes, and chlorophyll using cold temperature and filtration until left with a mixture of purified cannabis extract oil and ethanol. The ethanol is then purged from the oil using a rotary evaporator and vacuum ovens. ● Ethanol used will be purchased from a medical supply company, using ACS- grade ethanol, with a purity of 99.5% or better. ● All equipment that comes in direct contact with the oil (filter flask, Buchner filter, high borosilicate beakers, and filter paper) will be certified food grade and will be purchased from an accredited laboratory supply company that is United States Pharmacopeia-registered. Distillate Preparation & Manufacturing Wiped-film evaporation is the process of refining winterized oil into a pure and nearly flavorless vaporizable oil, commonly called cannabis distillate. Distillate is the most widely used active ingredient in cannabis-derived products from vaporizer to ingestible products. This distillation process entails feeding the winterized oil through a series of rotary wiper blades that disperse the oil evenly over a heating surface, creating a thin layer of liquid film. Varying heat settings enable the separation of oil constituents, various cannabinoids and terpenes, from the rest of the oil base as each pass of the heating surface is performed at temperatures modulated to the precise boiling point of each fractionated component. Each such constituent is then the only one to evaporate and is separately collected. The all-in-one wipe film distillation machine is constructed of food grade materials on all parts that come in direct contact with the oil. The machinery intended for use is commonly called a Short Path machine. 4. Blending Every batch of oil that is produced will vary due to the living, organic nature of the starting materials used; we are extracting from flowers, and no two flowers are exactly the same in nature. There will be variations of THC content in flowers, whether they vary between plants or even within the same singular plant. From there, varying rates of decarboxylation and varying yields from extraction and distillation will ultimately give batches with slightly varying contents and cannabinoid/terpene profiles. Consequently, in order to offer a standardized final product with precise ratios of cannabinoids and terpenes, the refined cannabis oils must be blended in predetermined, calculated ratios in order to achieve our desired specifications and to account for the small amounts of variation between batches. By blending our final products and performing third party testing, we can ensure that every batch is precisely formulated before it is transformed into a finished product and enjoyed by the end user. 58 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 5. Third-Party Quality Control Testing Prior to transforming this refined cannabis oil into a finished product, all batches of extracted and refined oils will first undergo rigorous QC testing through an approved third-party testing laboratory. Through reputable quality control testing, we can eliminate the risk of contamination in our final products and ensure that the end users are getting safe, standardized cannabis products. Per state regulations, all products will be tested by an approved third-party testing laboratory prior to final formulation. Testing labs will be required to test products for the following: Pesticides, Solvents, Water activity and moisture content, THC and CBD Concentrations, and Microbiological contaminants. This testing will be done through our distribution department, who will take custody of the batch of refined oil for all testing activities. Once a batch of oil passes testing, custody will be transferred back to the manufacturing department for finished product formulation and manufacturing. 6. Final Product Once the refined cannabis oil passes third-party testing, it will be approved for use to formulate a finished cannabis product that will be ready for distribution. Our manufacturing department intends to manufacture a wide variety of finished cannabis products but will only manufacture cannabis products in forms approved by the City and the Department. Details regarding products intended for production are outlined above in the product overview section. In accordance with all state rules and regulations, we will generate the required Master Manufacturing Protocol, Batch Production Record, and Product Quality Plan for each product and will provide detailed product descriptions including formulation, packaging, and labeling specifications to the Department for approval prior to beginning production. All products produced will only be packaged in childproof, tamper-evident, opaque, re-sealable containers that minimize exposure to oxygen prior to affixing a compliant label. v. Provide detail as to whether the extraction equipment has been reviewe d and certified by a Professional Engineer or Certified Industrial Hygienist. MANUFACTURING EQUIPMENT For all extraction and manufacturing activities, FEED has selected and will commit to only using equipment that has been reviewed and certified by a Professional Engineer or Certified Industrial Hygienist as follows: CLOSED LOOP EXTRACTION SYSTEM FEED will only utilize a closed loop extraction system that has been inspected and approved by the Fresno Fire Department that meets any required fire, safety, and building code requirements, including but not limited to, National Fire Protection Association (NFPA) standards, International Building Code (IBC), and International Fire Code (IFC). The extraction system will be instilled in our C1D1 Extraction Room, which is designed to control all sources of ignition where a flammable atmosphere is or may be present. Additionally, FEED will ensure that any manufacturing personnel using solvents or gases in a closed loop system to create cannabis 59 Copyright © 2020 by Fresno Equity & Enterprise Development LLC extracts will be fully trained on how to use the system, have direct access to applicable material safety data sheets and handle and store the solvents and gases safely. FEED will ensure that the closed loop system for compressed gas extraction systems will be commercially manufactured and bear a permanently affixed and visible serial number. We have chosen to work with Precision Extraction Solutions to source all professional closed loop extraction systems and will use their X10 system. As we are not currently operating, FEED has not finalized the order for the X10 professional closed loop extraction system yet, so cannot provide the exact serial number of the extraction system. If we are awarded permits to operate, we will finalize the order. At such a time, Precision Extraction Solutions will: ● Install the system and provide workflow verification including internal, third party, and licensed engineer engagement. ● Draft engineering field verification for SHJ through a third party California-licensed engineer. ● Provide original field verification letter for submission to AHJ prospective audits. When the Precision Extraction Solutions professional closed loop extraction system is delivered and installed, FEED will update both state and city regulators with the permanently affixed and visible serial number along with the engineer certification ensuring the system was commercially manufactured, safe for its intended use, and built to codes of recognized and generally accepted good engineering practices including but not limited to the American Society of Mechanical Engineers (ASME), American National Standards Institute (ANSI), Underwriters Laboratories (UL) or the American Society for Testing Materials (ASTM). Additionally, FEED will ensure that the certification document required will contain the signature and stamp of the professional engineer and serial number of the extraction unit being certified. vi. Describe the sanitation procedures. MANUFACTURING SANITATION PROCEDURES FEED’s manufacturing operations have been designed to ensure sanitation in every aspect of production. Before starting a shift or after completing a workday, employees will clean and disinfect work surfaces, floors, walls (where needed), and facility common areas. Operational zone-specific sanitation practices will follow cGMP and cGLP protocols utilizing USP 757/795 accredited agents (isopropyl alcohol, hydrogen peroxide, acetone, etc.) and all other areas will follow best practices for healthcare setting utilizing detergents, soaps, and housekeeping cleaners approved for use around vegetables, fruit, medicinal plants, or food contact services. Sanitation & Cleanliness Standards FEED will ensure the following measures and precautions are implemented at all times: ● Any person who, by medical examination or supervisory observation, is shown to have, or appears to have, an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination for whom there is a reasonable possibility of contact with cannabis products will be excluded from any operations that may be expected to result in contamination. 60 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● all persons working in direct contact with cannabis products will conform to hygienic practices while on duty including maintaining adequate personal cleanliness and washing hands thoroughly before starting work and at any other time when the hands may have become soiled or contaminated. ● Handwashing facilities will be adequate, convenient, and furnished with running water at suitable temperature. Employees will be required to wash hands before starting work, before putting on or changing gloves, after using the toilet or bathroom facilities, after sneezing, coughing, or using a handkerchief or tissue, after touching hair, face, or body, after smoking, eating, drinking, or chewing gum or tobacco, after any clean up activity such as sweeping, mopping, or wiping counters, after handling trash or money, and after any time the hands may become contaminated. ● All surfaces used to handle cannabis plants will be made of food-grade stainless steel that will not react adversely to any cleaning solvent in use. ● Floor, walls and all working surfaces will be maintained in good repair and will be cleaned daily with EPA-registered tuberculocidal grade disinfectants and used in accordance with instructions printed on their labels. ● Adequate lighting will be provided in all areas where cannabis products are handled and where equipment or utensils are cleaned. ● Our tools and equipment will be manufactured to be capable of being sanitized and will be cleaned first to remove any viruses or bacteria before being sterilized utilizing an autoclave or dishwasher as applicable. ● Toxic cleaning compounds, sanitizing agents, and solvents will be identified, held, stored, and disposed of in a manner that protects against contamination and that is in accordance with applicable federal, state, and local rules and regulations. ● All solvents and operational chemicals will be safely stored and disposed of in accordance with the information provided on the product’s label as outlined and following all SOPs. ● The water supply will be sufficient for the operations intended and will be derived from our local city regulated water system; plumbing systems in our facility will be of adequate size and design to carry sufficient quantities of water throughout the facility and to properly convey sewage and liquid disposable waste. ● Litter and waste will be removed at the end of every work shift and cannabis plant material (seeds, immature clones, or mature plants) and finished product waste will be segregated daily and properly disposed of according to waste management SOPs. ● The facility will provide its employees with adequate and readily accessible (ADA compliant) toilet facilities directly adjacent to operational work areas that are maintained in a sanitary condition and good repair. OTHER SAFE MANUFACTURING CONSIDERATIONS FEED’s manufacturing operations are designed to consider the following safety criteria, with include significant sanitation procedures: Safety Equipment & Practices The following safety practices will be enforced for all manufacturing operations within the facility and manufacturing licensed premises: 61 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Emergency Egress: All doors to any room where manufacturing operations utilize volatile solvents, hazardous materials, or flammable/combustible liquids in the manufacture of cannabis will swing in the direction of gress, be self-closing and/or self- latching, and be provided with panic hardware. ●Gloves: Employees’ gloves will be changed after any instance of chemical handling, plant material inspection/manipulation, and extract product handling and packaging. Employees will remove gloves and properly discard prior to leaving the operational area. ●Facility Surfaces: All equipment, counters and surfaces used for processing will be food grade quality, EPA-registered and will be checked to ensure they do not react adversely with any solvents in use. USP 795/797 tuberculocidal grade disinfectants and detergents will be used on the floor, walls, and all working surfaces daily. ●Tools and Equipment: Will be cleaned and disinfected first to remove any viruses or bacteria before being sterilized utilizing an autoclave. Disposal equipment and/or utensils will never be used twice, and reusable equipment will be cleaned and reprocessed according to the manufacturer’s instructions (copies of such instructions will be kept on site and posted where cleaning activities are performed). ●Hand Washing: Employees will be required to wash hands before starting work, before putting on or changing gloves, after using the toilet or bathroom facilities, after sneezing, coughing, or using a handkerchief or tissue, after touching hair, face, or body, after smoking, eating, drinking, or chewing gum or tobacco, after any clean up activity such as sweeping, mopping, or wiping counters, after handling trash or money, and after any time the hands may become contaminated. ●Disposal Safety: Plant matter and products needing to be disposed will be taken immediately to the secured storage and waste area, until it is rendered unrecognizable and unusable and disposed of. ●Layout: The laboratory space is designed to ensure that products in varying stages of production do not cross each other’s path and that no plant matter under cultivation comes in contact with any of the processing portions of the facility. STAGE-SPECIFIC SAFETY GUIDELINES Ethanol Processing ● Weight of starting material must be recorded, and adequate supply of ethanol confirmed. ● All hoses and lines must be safety checked for leaks or clogs before operating. ● Pressure readings and ethanol density levels will be monitored at all times during operating. ● After the operating run, the ethanol pump and heat controllers must be turned off and the pressure released. ● The compression fitting line may only be disconnected after the system pressure is 0PSI. ● The extracted oil and spent material must be weighed and recorded. ● All columns, caps, accessories, and non-rubber gaskets must be cleaned after every production run with either acetone or 70 – 99% isopropyl alcohol. Solvent Purging ● Vacuum ovens will not be used to process volatile solvents or flammable/combustible liquids contained in cannabis concentrate unless said vacuum oven is rated to process the 62 Copyright © 2020 by Fresno Equity & Enterprise Development LLC vapors of volatile solvents or flammable/combustible liquids, such as a vacuum oven that is rated with an explosion-proof classification. ● Only vacuum ovens listed by a Nationally Recognized Testing Laboratory (NRTL) will be used in the manufacture of cannabis products. ● Take adequate precautions to ensure that any cannabis concentrate introduced into said oven does not contain volatile solvents or flammable/combustible liquids. ● Vacuum ovens must be sanitized before every use. ●Vacuum hoses must be inspected for defects. ● Must confirm that vacuum pump oil is clean and that fluid levels are at the proper volume and machine is ready for operation. Chemical Safety & Solvent Transfer ● All chemical utilization will be preceded by the notification of all employees by the posting of hazardous material safety posters in prominent areas throughout the facility ● Chemical handlers will be trained by the Head of Manufacturing on chemical label safety information, specific product MSDS sheets, and OSHA protocols ● A centrally located listing of completed solvent transfers and upcoming production chemical requirements on the premises will be established and chemical handlers will be required to wear hazardous material suits during operations ● Upon receipt of solvent tanks, staff will move the tanks into the designated Liquefied Petroleum Gas transfer space. Employees will then transfer the solvent from the supplied carbon steel cylinder(s) into our serviceable stainless-steel solvent cylinders ● The employee completing the process will record the transfer on our solvent control log. After transferring solvent into commercial grade stainless steel cylinders, the employee(s) will place the stainless cylinders inside the flammables cabinet. The employee will document the delivery date and receipt, transfer, and final storage count on the physical log sheet for the cabinet. Solvent Storage ● Volatile solvents, hazardous chemicals, and flammable/combustible liquids, including volatile solvents, hazardous chemicals, and flammable/combustible liquids contained in concentrated cannabis or cannabis goods, will be stored in a refrigerator, refrigerated storage, or a freezer rated to store flammable liquids that are, at a minimum, rated “Lab- Safe” or “Flammable Safe.” ● Any compressed gases used in the manufacturing process will not be stored in containers that exceed the amount that is approved by the Fresno Fire Department and authorized by a commercial cannabis business permit. ● Total number of storage tanks allowed on the property at any time will be authorized by the Fresno Fire Department. 63 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 1.9. Fully describe the day-to-day operations if you are applying for a CULTIVATION permit: 1.9.1. Criteria for all cultivation operations CULTIVATION DAILY OPERATIONS FEED is fully committed to providing safe, healthy, and clean cultivation environment for our daily cultivation operations to ensure the health, safety, and welfare of the public, the employees working in the cultivation department, visitors to the area, neighboring properties, and the end users of the cannabis being cultivated; to protect the environment from harm to streams, fish, and wildlife; to ensure the security of the cannabis being cultivated; and to safeguard against the diversion of cannabis. To achieve this, our team will employ Good Agricultural Practices (GAP) that impose an exceptional level of control over the botanical production process through strict operational SOPs. Through carefully monitoring and control of lighting, temperature, humidity, water quality, nutrients, and other production variables, FEED will ensure regular cannabis yields that meet our frequency, volume, and quality specifications. FEED is also committed to ensuring a fully compliant licensed cultivation operation in accordance with state and local laws related to land conservation, grading, electricity, water usage, water quality, woodland and riparian habitat protection, agricultural discharges, and similar matter. The end goal of our cultivation plan is safe, consistent, and high-quality cannabis products across our entire production operations from seed to shipment. Our entire cultivation plan is geared towards ensuring this production objective is always met. OPERATIONAL PLAN FEED has prepared a comprehensive cultivation and operations plan that exceeds minimum legal standards for water usage, conservation and use; drainage runoff, and erosion control; watershed and habitat protection; proper storage of fertilizers, pesticides, and other regulated products to be used on the licensed premises; and a description of the indoor, artificial light cultivation activities includes a schedules of activities during each month of growing and harvesting, an explanation of growth cycles, and the anticipated harvesting schedules for all-season harvesting. The details of this plan are outlined in the sections below. Water & Energy Source FEED’s facility is located within the Fresno city boundary and is serviced by the Department of Public Utilities for water, electricity, and other utilities. Our legal source of water and electricity will be the Fresno DPU. Details about our irrigation plan is included in the Water Management sections below. We will also actively participate in and take advantage of the DPU programs available to ensure compliance with applicable building and related codes and to reduce overall consumption, including: 64 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ● Sign up for the EyeOnWater program to view, track, and understand water usage, while also staying informed about water leak alerts. ● Sign up for a free Irrigation Efficiency Audit with the Water Conservation Program to help reduce overall water usage. ● Sign up for Fresno Energy Watch’s Energy Fitness Program to increase the energy efficiency of all operations, or other energy reduction programs as available and applicable. Sustainable Water & Energy Use FEED’s cultivation and operations plan has taken into account anticipated water and energy consumption, and the facility and operations have been designed to be environmentally sustainable by minimizing demand for electricity, water, and all environmental resources as much as possible in order to reduce overall greenhouse gas emissions and carbon footprint. This is achieved through practices, equipment, outreach, and techniques designed to reduce consumption while reusing and recycling resources. High efficiency equipment and best environmental practices will continuously be sought. Additionally, FEED’s SOPs have been designed to include a number of best practices and methodologies to reduce environmental impact, while maintaining full compliance with all relevant federal, state, and local laws and regulations. Our operational plans include a number of best practices, techniques, and methodologies to reduce the facility’s environmental impact, including: ●Practices and Methodologies: pre-emptive solutions or environmental controls, green sanitation and cleaning practices, quality assurance assessment at each stage of operations, clean-room separation from sensitive area access, sensitive area access wardrobe requirements, electricity consumption reduction techniques, efficient space design, ongoing equipment maintenance, proper disposal of lighting related toxins, organic nutrient and pest management solutions, minimal water usage/minimal nutrient runoff methodology, and maximizing usable products while minimizing waste. ●Equipment, Usage, and Technology: High efficiency equipment and environmental practices for offices, agriculture operations, processing and manufacturing operations, and distribution/transportation considerations. ●Internal and External Programs: recycling and waste minimization, composting, water usage program, and local carbon reduction sponsorships. ●Future Considerations: natural gas power generator, solar panels, biodiesel and/or electric vehicles, consideration of LED systems as technology improves, and ongoing commitment to continual improvement. Efficient Water Consumption FEED will implement a robust water management strategy at the facility driven by efficiencies and reducing overall usage. Cultivation techniques will minimize the total amount of water used, as well as the amount of nutrient loss through incurred runoff. Cannabis plants are able to effectively oxygenate and transpire with decreased volumes of water, given more frequently. This method reduces overall consumption and runoff to as little as 5% waste. 65 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Any wastewater will be processed internally for re-use as much as possible, and if declared unfit will be cleansed as much as possible before being sent to drainage, or to an above-ground holding tank for disposal by an approved remediation service. It is anticipated that the wastewater quality will fall within the limits of domestic waste. Also note that the highly efficient cultivation systems re-utilize 85-95% of input water. Water collection from dehumidifiers will also be used as much as possible for operational water needs. This water is generally above acceptable for cultivation, and nearly sterile. A high quality, higher-efficiency Reverse Osmosis (RO) system will be employed to minimize water waste. Recycled water will undergo reverse osmosis filtering as well as quality assessment and assurance to as a precaution before using. Addressing Public Nuisances FEED has developed and will implement a comprehensive, responsible neighbor and nuisance mitigation plan that includes proactive protocols for addressing and mitigating public nuisances that may derive from the cultivation site. This plan is critical to ensuring consistency in response and in providing the data we need to modify SOPs as needed to alleviate the likelihood of issue recurrence and is further detailed in the Section 3 Neighborhood Compatibility section of this application. In the event that FEED receives notification of any public nuisance, our Community Liaison will lead us in working closely with community members, neighborhood leaders, and local businesses to document and resolve any issue. All necessary actions will be taken to resolve a complaint, and all records of complaints will be kept on-site. Our plan for addressing this includes procedures for documenting the complaint, immediately reporting the complainant, developing and executing an action plan to resolve the nuisance, follow up with the complainant, and documentation of the incident and resolution. Plant Life Cycle Initial Mother Plants for cloning will be generated from seeds, which will be maintained in conditions that foster healthier sprouting. We will use T5 fluorescent lighting kept 4-6” away from the plant; grown in a sterile hydroponic medium; in a room maintained at 75-80 degrees and between 65-80% humidity, depending on stage of germination; seeds will be placed in a soaked medium and kept consistently moist. To protect against any outside pathogens, seedlings will only be utilized for breeding and R&D activities and will not be utilized for general production activities – all general production will be produced from cuttings that have been selected for best phenotypic traits. The Cloning Stage consists of cutting a branch off an existing female plant and then planting it in a rockwool propagation block for 15-21 days during which the clone will develop roots. This is the renewable, multi-generational source for all our production plants. Clones are then put in pots with rockwool growing media and enter the Vegetative Stage. This lasts for approximately 6 weeks. They will be under High Intensity Discharge (HID) grow lights for 18 hours per day in the Vegetative Room. 66 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Vegetative plants are then moved to a Flowering Room for the Flowering Stage, which lasts 8- 10 weeks, depending on strain. During this time, the plants are switched to an alternating 12-hour cycle of light on, lights off, using High Pressure Sodium lights to mimic the autumn sunlight. This triggers the photo-periodic sensitive plants to develop flowers. After plants are initially transferred to their Flowering Room, each plant’s branches are stretched into trellises hung above the plant canopy, a process called scrogging. During flowering growth, plants are typically pruned during Weeks 2 & 5 before being harvested in Week 10. In the Harvest and Drying Stage, flowered, mature plants are cut at the base, weighed, and hung to dry upside down for about a week (more or less depending on moisture content of plant/room) – the plants will ideally be dried to 12% but anything under 15% will inhibit bacterial growth. The dried plants are then weighed, bucked, and hand-trimmed. The buds can then be cured in plastic totes for 4 to 7 days to lock in flavors and aromas as desired. During the Processing Stage, the dried/cured buds are weighed, packaged, labeled and transported/transferred to the distribution department for third party testing. Non-bud biomass/trim is also weighed, processed, and labeled before being transferred to the manufacturing department to be turned into derivative products. All waste material is weighed, tracked, stored, and disposed of in accordance with facility SOPs, designed in compliance with all relevant rules and regulations. Maintaining Plant Health There are many aspects in the plant life cycle that require constant monitoring. Daily monitoring is required to measure pest levels, presence of mold, discoloration, root ball saturation, root growth, light intensity, proper layout, ambient climate condition, cleanliness, and light stress. Our cultivation team will perform individual plant assessment both visually and manually and will use digital environmental monitors to manage the overall cultivation environment. Flower Rooms are in constant use and are kept within incredibly narrow environmental parameters in order to maximize yield and quality. Due to the need to automate and control all aspects of the environment, there are constant risks that failures in any one aspect of the environmental controls will have downstream effects that will need constant adjustment. Other factors that must be paid attention to include carbon dioxide levels, pests, mold, pruning quality and timing, light intensity, early/late flower light levels, drastic humidity changes, functionality of HVAC systems, and the general condition of the plants in the room (broken stems, over/under watered, etc.). In order to reduce and help prevent the spread of any pathogens or pests that may exist in the crop, tools (Fiskars, razor blades, Exacto knife, pruning shears, etc.) will always be sanitized before use on any plant and in between strains. Sanitization will be performed using a container with a 1ml/gal concentration of an approved disinfectant, and cultivation staff will be required to sanitize at the start of any task and when switching from one strain to another. Staff will wear the proper PPE while performing these prunes to avoid any unnecessary injuries. Required PPE includes sunglasses, long sleeves, nitrile gloves, white lab coats and hair nets. 67 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Acceptable Temperature & Humidity Ranges A robust, multi-unit HVAC system throughout the facility will be installed to ensure minute control over temperature and humidity for the duration of the plant life cycle for each room independently. ●The Mother and Vegetation Rooms will be maintained between 65 and 75 degrees Fahrenheit. The ideal range of humidity values is between 50 and 70 percent. ●The acceptable range of temperature for the Flower Rooms is between 72 and 80 degrees Fahrenheit. The ideal relative humidity in the flower rooms is 65%-70% for the first 5 weeks, and then gradually reduce the humidity to 55%-60% through the rest of the growth cycle. STAGE BY STAGE GROWING PRACTICE Harvest Planning & Management FEED’s Head of Cultivation will implement the following sequence when planning each Harvest: 1.Determine Crop Goals: Determine cloning criteria, including plant count for the harvest and strain mix. Every two weeks, FEED’s management team will submit a request to the Head of Cultivation for the number of plants (by strain) suggested for an upcoming harvest based on sales and client demands. The request will be sent out two days prior to the day that the cuttings will be taken off mother plants in the vegetative state, and approximately nine weeks prior to the plants moving into a flower room. 2.Make a Flower Room Plant Map: FEED’s Head of Cultivation assesses the strain demand and number of plants and creates a floor plan detailing each plant. The Head of Cultivation will adjust for spacing needs of different strains. After reviewing the numbers and making the necessary adjustments, the Head of Cultivation determines how many cuttings need to be taken for each strain. These numbers are then placed into a chart that breaks down the number of plants at each stage of growth; Clones, Vegetative, and Flowering. Typically, the Head of Cultivation will set up the chart so that roughly twice as many cuttings are taken per strain than will ultimately end up in the Flower Room(s). This allows for culling of the weakest plants at each progressive stage to ensure that only the biggest and healthiest plants make their way into the flowering stage of production. 3.Prepare Task Sequence for the Harvest Team: Upon completion of the chart, the Head of Cultivation and Team Leads will use the 60-day calendar to map out all key dates and tasks that must be completed for each given harvest, including: taking cuttings, potting out cuttings, repotting, starting flower, lollipop pruning, Week 2 prune, Week 5 prune, Week 9 water flush, Week 10 final prune, and harvest. The calendar will then be posted for the entire team to see and review key dates to begin planning for any labor-intensive days that may require modifications to the overall schedule. 68 Copyright © 2020 by Fresno Equity & Enterprise Development LLC CROP TASK TIMELINE Careful and deliberate planning of the crop stages is necessary to ensure regular, consistent harvests. The Head of Cultivation, with input from the microbusiness management team, is responsible for developing a timeline that rotates production plants through the stages of development. Using that overarching plan, the Head of Cultivation will then work with team leads to create work schedules and cultivation logistics. The weekly crop calendar listing all tasks is then posted and reviewed with the entire cultivation team. Propagation ●Week 1: Open dome vents halfway 48 hours after taking clones, fully open vents after 72 hours, offset domes after 96 hours, remove domes after 120 hours and mist with water. ●Week 2: Monitor health and growth progress ●Week 3: Monitor health and growth progress Vegetative Growth ●Week 1: Transfer clones after 15-19 days into 6x6 rockwool ●Week 2: Cut tops off strains that stretch and become too tall ●Week 3: Light lollipop prune at lower branch sites and nodes ●Week 4: Cut tops off strains that stretch and become too tall ●Week 5: Monitor health and growth progress ●Week 6: Cut tops off strains that stretch and become too tall Flowering Growth ●Week 1: Lollipop Pruning ●Week 2: Pruning; light fan leaf removal to open up plant ●Week 3: Monitor health and growth progress ●Week 4: Monitor health and growth progress ●Week 5: Pruning; heavy fan leaf removal to allow for better light penetration and airflow ●Week 6: Monitor health and growth progress ●Week 7: Monitor health and growth progress ●Week 8: Irrigation Flush ●Week 9: Irrigation Flush ●Week 10: Final Prune, Cease Irrigation, Harvest; Mold/pest inspection Seed Germination Seeds sprout without light in a range of temperatures. Strong, viable, properly nurtured seeds germinate in 2 to 7 days. At germination, the outside protective shell of the seed splits, and a tiny, white sprout (radicle) pops out. This sprout is the root, or taproot. Cotyledon, or seed, leaves emerge on a stem from within the shell as they push upward in search of light. At the outset of the cultivation process, plants will initially be cultivated from seed, using the following protocols: ● Seedling trays will be saturated with nutrient solution and allowed to dry ● Seeds should germinate within a few days and be placed in growing medium. ● Germinated seeds will be covered with a humidity dome and placed under appropriate artificial lights. 69 Copyright © 2020 by Fresno Equity & Enterprise Development LLC As the seeds are sown, the Head of Cultivation will ensure their phase is updated in the inventory management system. As plants reach vegetative growth, they must be tagged or provided a unique barcode for the CCTT-Metrc track and trace system. Propagation Cloning and seedling germination are the most delicate and important parts of the production process as they lay the foundation for the upcoming crop cycle. Harvest planning will determine the numbers of clones needed for the cultivation activities and outputs needed for production. After the first harvest, later generations of plants will be derived from cloning using the following protocols: ● Clones are cut using sterilized razor blades and immediately dipped into a rooting solution. ● Cuttings will be placed in either wool cubes, aeroponic clone machine, or tissue culture gel and placed under 24-hour LED lighting. ● Hand misters are used to water the new clones until roots are present. Vegetative Once the plant progresses out of the seedling stage, plants will be transplanted to larger growing medium/pots and relocated to a vegetative room using the following protocols: ● Initial and ongoing pruning will be conducted to clean up dead leaves and to promote growth. ● Cultivation staff will monitor plant health and growth, and will adjust light, temperature, humidity, CO2, nutrient mix, and other variables to ensure plant health and maximize yields and potency. ● Light will be managed on a 18 on/6 off cycle. ● When plants have reached maturity, approximately a month into vegetation, plant sex will be tested and identified. ○ For all mother plants grown from seeds, cultivation staff will constantly monitor for male plants, which will be immediately removed and destroyed and disposed of according to all appropriate waste management procedures and regulations. Flowering When the plant progresses out of the vegetative growth stage, plants will be relocated to a flowering room and maintained using the following protocols: ● Vigilant plant sex monitoring will continue throughout the flowering stage. If any male plants are detected, they will be immediately removed and destroyed/disposed of following regulations. ● Cultivation staff will monitor plant health and growth, and will adjust light, temperature, humidity, CO2, nutrient mix, and other variables to ensure plant health and maximize yields and potency. ● Light will be managed on a 12 hour on/12 hour off cycle. Harvesting During the last 10 days of the scheduled flower cycle, mature plants will be examined on a daily basis to ensure crop harvesting is performed at the optimal time for the plant’s desired potency. When examining the plants, close attention will be paid to the trichomes; milky and off-white are 70 Copyright © 2020 by Fresno Equity & Enterprise Development LLC considered mature and ready for harvest while not empty and clear/translucent trichomes are considered unfinished. Our cultivation department will utilize the following harvest procedures: ● Plants are cut with sterile shears at their base and each plant is weighed whole using certified scales approved for use by state and local regulations. ● After being weighed, whole plants will be hung upside down on racks in the drying room. ● All plant material, including waste, must be weighed (wet weight) and recorded throughout the process Drying & Curing After trimming is complete, harvested plant material will be dried and cured using the following protocols: ● To mitigate odor for our surrounding community and to mitigate the potential of mold, yeast, and biologic contaminants, carbon filters and UV scrubbers will be implemented. ● Fans, dehumidifiers and hygrometers will be used to maintain a constant temperature and humidity range desired for drying and curing. ● Any plant material that demonstrates signs of mold, mildew, rot, or other fungus will be immediately segregated and evaluated, and will be destroyed/disposed of accordingly. ● Cultivation staff will maintain the drying and curing biomass/plant material by performing regular climate checks on the room, including changing filters, emptying dehumidifiers, checking fans, and checking the general room climate and making adjustments as needed. Post-Harvest Processing After drying and curing is complete, finished plant material will be divided and processed into either finished flower products, including packaged flower units or pre-rolls, or non-flower biomass for transfer to the manufacturing department to be utilized for derivative cannabis products. ● Dried plants will be bucked down and trimmed to isolate the flowers of the plant that are free of seeds and stems. All dirt, sand, debris, or other foreign matter will be removed and discarded. ●Plants will be hand trimmed with sterile scissors. Water Management & Nutrient Techniques FEED’s cultivation department will utilize a drip irrigation system with pressure-compensated drip emitters that deliver uniform volumes of water to each plant, in order to deliver the water supply directly to each plant’s roots using multiple tubes attached to and extending out from a water supply, so that each line supplies one plant. Fertigation techniques will be employed to supply nutrients to the plants through the water supply. Our system will be controlled automatically through the facility’s automation and environmental control system in the Water Room, where agricultural chemicals and water are stored. The system will be set up to prevent water from striking the foliage, as the plants can be susceptible to bacterial or fungal infections from standing water droplets. In addition to fertigation and watering techniques outlined above, FEED’s cultivation department may employ additional supplemental treatments of agricultural chemicals, nutrients, and fertilizers through foliar sprays. This would be done only during the vegetative stage and the 71 Copyright © 2020 by Fresno Equity & Enterprise Development LLC first two weeks of flowering so that the flowers remain unadulterated by these additives, and only if the plants were lacking in nutrients or were reacting poorly to the environmental change of their flower room. FEED will never utilize pesticides in our cultivation operations. The water quality will be monitored and tested for soluble salts, alkalinity and hardness, which can all stress the plants and stunt plant growth. Water treatment, storage, control, and distribution technologies will be utilized to effectively remedy any conditioning that is out of alignment with production guidelines. Our cultivation staff will maintain records of all water measurements, taken daily, and store records in an electronic data management system. These measurements will also include water pH, electrical conductivity, temperature and dissolved oxygen level. Water Reservoir & Fertigation System Overview Water will enter FEED’s facility through a Reverse Osmosis (RO) water purification system before being stored in the 3000-gallon primary, fresh-water holding tank/reservoir. This water is treated, stored, and used for irrigation, fertigation, and recirculation activities. To irrigate the plants, water is pulled from the reservoir into the horticultural management system, which integrates with an automated irrigation system that runs to each of the cultivation rooms and waters the plants through a sprinkler timing system. The automated hydroponic pumping system will initiate the feeding process by mixing the nutrients before delivering the nutrients via small drip lines connected to the main hose and onto the base of each plant, ensuring that each is well fed. The excess post-feeding runoff is then collected through plumbing in the rolling benches that the plants sit on, filtered to remove unwanted debris, and then cleaned and recycled. In order to maximize efficiency and reduce environmental impact, spent water is recaptured and recirculated through the RO water purification system before entering the primary water reservoir and being recycled and reused. All condensate from AC units, dehumidifiers, and other equipment in the facility will also be recirculated, purified, and reused. This allows both operational efficiency and environmentally friendly techniques by minimizing operation runoff waste. Nutrient Preparations FEED’s agricultural, chemical, nutrient, and fertilizer regimen will be directed by the Head of Cultivation in accordance with the crop needs and requirements. Treatments will be prepared by authorized cultivation team members as supervised and directed by the Head of Cultivation and applied through the fertigation process or via foliar sprays. Logs and records will be maintained on the type and amounts of all fertilizers used and stored electronically in the applicable tracking software. At no point will we employ the use of any additive that would alter the color, appearance, smell, taste, effect, or weight of the cannabis. Fertigation Management FEED’s strict fertigation procedures will ensure that all plants receive the appropriate amount of water and nutrients at every stage of development. Our Head of Cultivation will be responsible for management of all irrigation and nutrient systems, ensuring that nutrient practices are 72 Copyright © 2020 by Fresno Equity & Enterprise Development LLC designed and implemented appropriately and that fertilizer solutions are safe, appropriately formulated, and applied in a manner that will support healthy plant growth, dialed in to the unique requirements of each strain and each phenotype at each stage of the plant’s life cycle. The Head of Cultivation will also be responsible for monitoring and inspecting all cultivation- related equipment, including the irrigation and fertigation systems, on a daily basis to ensure they are in good working order and for ensuring that records of all fertigation formulations and schedules are entered into the inventory management system. Hand-held meters will be used to measure the accuracy and re-calibrate the digital monitors, both environmental as well as the water pH and electrical conductivity; plants will be visually checked daily to ensure the drip irrigation system is in full working order. Crop Maintenance Techniques FEED’s cultivation department will utilize the following crop maintenance techniques to manage the cultivation canopy and operations: ●Topping Procedures: Some strains grow particularly tall and require the top-most node be removed throughout the vegetative stage in accordance with the crop task timeline. Topping is conducted during vegetative growth in an effort to control the growth of the canopy in flowering stage, to achieve a uniform, even canopy. ●Lolli Popping Procedures: Larger portions of branches and nodes are removed from the bottom up in accordance with the crop task timeline to promote better bud growth, remove the habitat for pests, increase airflow, and increase light exposure to sections of the plant that have the potential to be more productive. Branches and nodes should be removed on the bottom half of the plant. ●Pruning Procedures: All plants require pruning throughout the entire plant growth cycle in accordance with the crop task timeline. Pruning is conducted in an effort to control the growth of the plants and canopy. Some large fan leaves of plants are removed to increase light penetration and air flow in the canopy – leaving enough leaf surface area for plant photo-synthesis. ●Trellis Netting Procedures: Our cultivation department will use trellis netting suspended over all the plants on grow tables in the beginning days of flower to provide support during the eight weeks of growth. As the buds develop, they become heavier to the point where the branch can no longer support the flower. The first layer of netting will be applied immediately upon transfer into the flower room; a second layer added a week or two later, after about a foot of growth. The goal is to foster branch support and branch training while not interfering with branch development. ●Flushing: During the last two weeks of the cultivation cycle, our cultivation department conducts leaching (flushing) activities to improve product quality by stopping nutrient use and forcing plants to consume their stored nutritional reserves. The Head of Cultivation will also be responsible for scheduling leaching and for ensuring that all automatic fertigation systems are appropriately programmed to leach the plants during the last two weeks of cultivation. 73 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Facility Condition and Maintenance FEED’s cultivation department will follow strict facility cleaning and sanitation procedures to ensure that all of our cannabis and cannabis products meet both employee and consumer safety, as well as quality control, standards. Routine inspection and sanitation procedures are performed to ensure a contaminant- and pest-free environment. All FEED staff must ensure the Primary Room Inspection Schedule is followed and that all related logs are completed. ●Proper Sanitation: Litter and waste will be removed at the end of every work shift, with any cannabis related waste segregated and disposed of separately. ●Facility Surfaces: All surfaces used to handle cannabis will be made of food-grade stainless steel that will not react adversely with any cleaning solvent or other substance. ●Daily Cleaning: Floors, walls, and all working surfaces will be cleaned daily and maintained in good repair. ●Sanitized Tools and Equipment: All tools and equipment will be manufactured to be capable of being sanitized, including cleaning followed by sterilizing using an autoclave. ●Hand Washing: All employees will be required to wash hands before starting work, putting on or changing gloves, after using the restroom facilities, after sneezing or coughing, after touching hair or body, after smoking, after eating or drinking, after cleaning, after handling thrash or money, and after any other times the hands are contaminated. ●Facilities: Handwashing facilities will be conveniently located throughout the facility to wash and sanitize hands. Bathrooms will be located throughout the building and will be cleaned daily. ●Plant Handling: Employees will utilize gloves, which will be changed after any instance of agrichemical handling, plant inspection, and plant handling and packaging. Employees will remove gloves and properly discard before leaving the cultivation area. ●Rodent and Bird Management: Any window capable of being opened will be screened, and all doors will shut automatically and will not be allowed to be propped open. Food will only be allowed in the Break Room area. ●Integrative Pest Management: All chemicals and nutrients used for pest management purposes will be labeled and stored in a segregated area, away from plant matter. ●Pesticide-Free Operations: Our cultivation operations will not utilize any pesticides. ●Disposal Safety: Plant matter designated as waste will be rendered unrecognizable and unusable before disposal and will be stored separately in a locking area before disposal. ●Anti-Contamination: Any person who by medical examination or supervisory observation will be excluded from any operations which may result in contamination. ●FDA Compliance: All operations related to plant material and finished concentrate products will be conducted in accordance with FDA and USDA handling, pharmaceutical USP 795/797, and hospital OSHA sanitation principles. CLEANING PROCEDURES FEED’s cultivation team will follow a Primary Inspection/Sanitation Schedule and complete all related logs. Each room will have a specific cleaning protocol. Cleaning and sanitation activities may be performed with a diluted disinfecting solution or other approved cleaning agents, which can potentially cause discoloration and irritation if it comes in direct contact with skin or eyes. Therefore, proper Personal Protective Equipment (PPE) must be worn at all times while washing 74 Copyright © 2020 by Fresno Equity & Enterprise Development LLC pots, both indoors and outdoors. Required PPE include Splash-proof Goggles, Chemical-resistant gloves, Chemical-resistant Apron, and Respirator (optional). i. Identify location and procedures for receiving deliveries of seedlings and immature plants. RECEIVING CANNABIS SEEDS & STARTS Feed will follow these policies and procedures when receiving cannabis seedlings and immature plants: Intake Procedures When receiving a shipment of cannabis seeds or immature plants (starts/clones), FEED’s cultivation department will work with our distribution department to ensure these procedures are followed: ● Before approving the pick-up, the Head of Distribution will arrange to have the cannabis good(s) tested by a licensed testing laboratory as applicable. Upon receipt and approval of the test results, the Head of Distribution will schedule the pick-up and inform delivery team members. ● After scheduling a pickup, the delivery team will prepare required documentation for shipment and conduct all required reporting through the Track and Trace system prior to leaving the licensed facility to retrieve the shipment. ● When the delivery team member arrives to pick up the cannabis goods, the team member will confirm that the cannabis goods shipment matched the shipping manifest exactly. ● After confirming the shipment matches the shipping manifest, the delivery team member will go through the required receipt protocols and take physical custody of the cannabis goods. ● After taking physical custody, the delivery team member will secure the shipment into the delivery vehicle cargo hold. ● Before traveling back to the licensed facility, the delivery team member will report the updated inventory to appropriate inventory tracking systems using the laptop or tablet in the delivery vehicle or secured mobile technology. ● After updating all inventory reports, the delivery team member will lock and secure the delivery vehicle and return to the licensed facility. Upon arriving at the licensed premise, the Distribution team will follow all required Bureau rules and regulations for compliant intake of cannabis goods and then transfer custody to the cultivation department. These activities will take place in the Cultivation Receiving Room. ● Upon receiving the shipment of cannabis seeds or starts/clones from the distribution team, the cultivation department will transfer them to the Mother Room for storage and/or plant care. Biosecurity Procedures FEED’s strict biosecurity and sanitation practices are mandatory for all employees and visitors who enter the facility. These practices are designed to reduce the risk of transmission of infectious diseases in crops; to prevent invertebrate pest entry or exit from the facility; to prevent the ingress or egress of invasive plant species; and to prevent the entry or release of genetically modified organisms. 75 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Facility Personnel FEED will employ the following sanitation procedures regarding facility personnel: ● All personnel who enter the facility must walk across Virkon adhesive/disinfecting pads placed in front of the door. This significantly reduces the likelihood of alien material entering the facility via the bottoms of footwear. ● Upon entering the facility, all personnel will immediately go to the appropriate locker room/changing facility, remove street clothes, shower, and change into color-coded pocket-less attire and facility-specific footwear; these articles will be provided to employees at no cost. ● Work uniforms will be removed upon exit from the facility and left in the locker room; they will be regularly laundered onsite. Work uniforms and shoes will not be removed from the facility. ● Any person with hair falling below the ear will be required to wear hygienic hair covering before entering a part of the facility containing cannabis plants. ● Antibacterial hand sanitizer dispensers will be installed at the entry to all rooms containing cannabis in any form. Employees will be required to use these sanitizers before entering. Authorized Visitors FEED will employ the following sanitation procedures regarding authorized visitors: ● Authorized visitors will be briefed regarding biosecurity issues before entering the facility. ● Visitors will be provided with disposable shoe covers for their street shoes. Shoe covers will be bagged and discarded upon exit. ● Every visitor will have an employee escort, who will be assigned by the facility to ensure that authorized visitors observe all sanitation requirements. MATERIAL BROUGHT INTO FACILITY FEED will employ the following sanitation procedures regarding material brought into the facility: ● Any material to be brought into the facility, whether plants, packages of consumable supplies, office supplies, laboratory supplies, or other operating material, must be placed in the loading dock area. ● The packages will be examined by facility personnel to ensure that no gross contamination is present. ● Where practicable, outer packaging will be removed at the loading dock area and recycled or discarded; material will be transported into the facility on plastic or stain-less- steel carts. ● Cart wheels and shoes will pass over an adhesive/disinfecting pad before entering the facility. ● Any waste material not containing marijuana which is to be removed for recycling or disposal shall be sealed in a bag in the room in which it is generated, and then taken to the loading dock area by the most direct route, avoiding transport through any unnecessary rooms. 76 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Cultivation Areas FEED will employ the following sanitation procedures regarding cultivation areas: ● When any batch of plants is moved from one area to another in the facility, the area emptied will undergo cleaning following a strict protocol. Only approved disinfectants will be utilized. All floors, walls, benches, trays, carts, and tools will be disinfected before another batch of plants is moved into the area ● Each room containing marijuana will have its own dedicated trays, carts, and tools, which will never be moved to or used in another room of the facility ● Adhesive pads will be placed in front of the door of all areas containing marijuana material, over which all carts and shoes will pass during entry and exit. This will reduce the likelihood of alien material entering or moving about the facility on the bottoms of footwear or wheels ● Water will be filtered to remove chloramines immediately before use in cultivation to prevent bacterial growth and will be tested weekly, both before and after filtration, for microbial contamination ii. Describe the planned square footage/acreage of the cultivation. FACILITY DESIGN: PLANNED SQUARE FOOTAGE FEED’s indoor cultivation facility will have three Flower Rooms, with Flower Rooms 1 & 2 containing 2,400 square feet of canopy each and Flower Room 3 containing 2,720 square feet, for a total flowering canopy of 7,520 square feet. Additionally, our Vegetative Room will contain 1,920 square feet of canopy, our Mother Room will contain 384 square feet of canopy, and our Propagation Room will have 128 square feet of canopy. The total cultivation canopy space will add up to 9,952 square feet, which is just below the 10,000 square foot canopy limit for microbusinesses. The Mother and Propagation Rooms are where research and development activities will take place and constitute less than 10% of the total permitted canopy square footage per city regulations. These rooms will exist in a warehouse facility that utilizes artificial light. The facility will also include manufacturing operations, secure storage, administrative offices, and shipping/receiving areas. Strict facility SOPs will ensure that cannabis plants will never be visible from a public or private road, sidewalk, park, or any common public viewing area. The flowering rooms will be maintained on a staggered schedule to ensure a steady and consistent supply of plants for production and biomass/plant material for processing activities. These plant production rooms are supported by a Water Room, where water storage and fertigation activities take place. Strict facility SOPs will ensure pesticides and fertilizers will always be properly labeled and stored to avoid contamination through erosion, leakage, or inadvertent damage from pests, rodents, or other wildlife. The cultivation operation will use a soilless, semi-automatic hydroponic cultivation system that employs rockwool in trays with feeder lines. Plants will be placed on floating aisle rolling garden benches in order to maximize space efficiencies. Details regarding the plant life cycle, water management and nutrient techniques, nutrients used in fertigation, and crop management techniques are outlined below. 77 Copyright © 2020 by Fresno Equity & Enterprise Development LLC iii. The estimated number of pounds produced per harvest, and number of anticipated harvests per year. ESTIMATED CROP OUTPUT Our cultivation department is designed to include 7,520 square feet of flowering canopy space divided into three separate rooms that can produce approximately 3,000 pounds per year. These three Flower Rooms will be operated on a staggered schedule to allow for regular harvests throughout the year. Based on a 10-week flowering cycle, each room can produce 5 harvests per year for a total of 15 total anticipated room harvests annually. Based on this rotating schedule, we will harvest one room approximately every 3.5 weeks or 18 days. While we have two different sizes of Flowering Rooms, each harvest will average out to equate to approximately 200 pounds of usable plant material for processing every 3.5 weeks. Production Metrics: ●10,000 square feet total canopy size ●7,520 square feet total flowering space ●1 light per 25 square feet of flowering canopy ●Approximately 2 pounds produced per light at maturity ●5 harvests per year per room for 15 total harvests annually ●Estimated production of 3,000 pounds per year iv. Describe whether the cultivation operation will use natural light, artificial light, or mixed light. OPERATIONAL DESIGN: LIGHTING FEED’s cultivation operation is located in an indoor warehouse that uses exclusively artificial light for plant production. Since the indoor operation will be secured and contained in an existing building that is not open to or visible from the outside, it cannot use natural light or mixed light. Different artificial lights will be utilized for different stages of the plant life cycle as follows: ●Mother Plants/Propagation Stage: T5 fluorescent lighting kept 4-6” away from the plant, which will be grown in a sterile hydroponic medium that is in a room maintained at 75-80 degrees and between 65-80% humidity ●Vegetative Stage: High Intensity Discharge (HID) grow lights with electronic ballast, double-ended 1000w 277V lamps (or equivalent) installed in a grid pattern to produce necessary lumens over the bench area for 18 hours per day ●Flowering Stage: High Pressure Sodium (HPS) grow lights with electronic ballast, double-ended 1000w 277V lamps (or equivalent) installed in a grid pattern to produce necessary lumens over the bench area for 12 hours per day; these lights mimic autumn sunlight and trigger the photo-periodic sensitive plants to begin flowering 78 Copyright © 2020 by Fresno Equity & Enterprise Development LLC v. Identify how cultivation waste will be rendered unusable and unrecognizable, and how it will be stored and disposed of. CULTIVATION WASTE MANAGEMENT FEED’s cultivation department will implement and maintain strict waste management procedures and protocols in order to ensure a safe, hazard free cultivation environment. Our team will ensure that all waste management procedures are conducted according to all applicable rules and regulations, especially regarding how cannabis and non-cannabis waste generated on the premises is handled, rendered unusable, and securely disposed of by authorized personnel. Waste Reporting All cannabis material, including cannabis waste, must be weighed and strictly accounted for at all times. Cannabis material intended for disposal will first be collected and weighted, then designated as Cannabis Waste in the inventory management system prior to transfer and storage in the Secured Cannabis Waste Receptacle in the Cultivation Receiving Room. FEED’s inventory management system has two categories of cannabis waste: (1) waste specifically associated with the harvest, dry/cure, and processing; and (2) general waste not associated with the harvest, dry/cure, and processing. General waste is encountered through daily walks in grow rooms, such as dead leaves or pruning waste. This waste is entered as ‘collected waste’ in the inventory management system, while non-general waste is reported to a specific plant in production. Plant-specific waste is entered as ‘destroyed waste.’ Secure Waste Storage FEED’s cultivation team will follow these procedures to secure and limit access to the waste storage areas and secure waste receptacles: ●Cultivation waste will be stored in secured, locking waste receptacles throughout the facility and licensed premises. ●At the end of each day or when the locking waste receptacles become full, the contents will be transferred to the designed waste area of the Cultivation Receiving Room (in accordance with all facility transfer and inventory reporting procedures). ●Cultivation waste will be stored here until it can be securely rendered unusable and hauled by a waste management vendor to an appropriate waste facility. Waste Disposal Procedures FEED’s cultivation team will follow these procedures to securely dispose of cannabis waste: ●All waste will be disposed of in accordance with applicable state and local laws and regulations, including any waste designated as hazardous waste. ●All waste that contains cannabis in any form will be disposed of in a secure waste receptacle. Authorized personnel can access these secure waste receptacles and areas, but public access is strictly prohibited. ●No cannabis products will be disposed of in its packaging, and all cannabis products will be made unrecognizable and unusable prior to disposal. ●All waste that contains cannabis in any form will be entered into the Track and Trace system as required by state rules and regulations. 79 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Our cultivation department will hire a certified waste hauler approved to handle cannabis to haul and dispose of all facility waste at an appropriate solid waste facility. Authorized facility personnel will be sure to obtain a copy of the certified weight ticket or other receipt/documentation of delivery prepared by an appropriate solid waste facility. Rendering Waste Unusable All cannabis waste will be rendered unusable through a combination of grinding and mixing with non-cannabis waste. Cannabis waste will first be broken down with a commercial scale grinding machine, then incorporated with no less than 51% ratio by volume of a non-cannabis waste product. The unusable waste will then be placed in re-usable, locking plastic containers with tamper evident bands, clearly marked with a label that says “Cleared for Disposal” along with the original waste weight, and accompanying inventory tracking documentation. FEED will render cannabis waste unusable by mixing it with one of the following materials: paper waste, cardboard waste, plastic waste, soil, coco products, or broken glass. The converting process will include shredding cannabis material and mixing it with other waste that can be removed to an appropriate solid waste facility. vi. Describe the use of any gases used in the cultivation operation, such as CO2, including storage, location, and monitoring systems for employee safety. CULTIVATION TECHNOLOGY All areas of the facility under cultivation have been carefully designed to maximize the quality of the product we produce. FEED will install comprehensive cultivation technology to control the temperature, humidity, ventilation, carbon dioxide, water supply, and lighting through constant monitoring, regulation and recording by our horticultural management system and cultivation team. If environmental conditions either fall below or exceed the programmed set points for circulation, temperature, humidity, or CO2, alarms will be generated and electronically sent to the Head of Cultivation for appropriate response. CO2 ENRICHMENT SYSTEM Maintaining a CO2 enrichment rate during ‘daylight’ hours has significant benefits for cannabis growth. Artificially increasing the levels of CO2 in the growing environment results in much more robust plant growth, yielding plants with larger root systems, stronger and thicker branches, and bigger leaves. FEED will be employing a Biotherm CO2 enrichment system (or equivalent) in the cultivation operation. The CO2 storage tanks will be located in the Cultivation Receiving Area, on an exterior wall next to the roll up door. CO2 safety sensors will be placed below and around the storage tanks to detect potential leaks, as CO2 is heavier than oxygen and will stay low to the ground in the event of a leak or system malfunction. This CO2 system and sensors will be tied to our horticultural management system, which will manage the operation of CO2 sensors, burners, and liquid CO2 valves to ensure employee facility and neighborhood safety. Our procedures for the CO2 Enrichment systems will include: 80 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 1. The company will use a semi-automated system of commercial CO2 emitters to enrich the air in the facility’s vegetation and flower rooms to levels needed for optimal growth. 2. Warning signs and CO2 monitors equipped with safety alarms will be installed in every room in which CO2 supplementation is used, to alert building occupants to any leak or system malfunction before a buildup of the gas reaches a dangerous level. a. Alarms will be linked to emergency cut-off and exhaust systems that will be triggered if CO2 levels exceed prescribed levels. b. Alarms also will alert local fire officials to any potential hazard caused by increased CO2 levels. 3. All use of CO2 and all air quality monitors and alarms will be fully compliant with all local regulations and requirements. 4. Workers will not be exposed to CO2 levels that exceed the federal Occupational Safety and Health Administration (OSHA) eight-hour permissible limit. 5. Highly visible signage will be used to alert emergency responders to the use of CO2 in the growing areas. HORTICULTURAL CONTROL SYSTEM At the heart of our cultivation technology is our integrated horticultural management system. The horticultural management system is a user-programmable, distributable, real-time control system with dedicated hardware and software that integrates with an irrigation and nutrient management program. This extremely flexible system has been specifically designed for automated equipment control, monitoring, and data acquisition in horticulture production settings. The system gathers input information from sensor devices such as temperature, wind speed, tank levels, pH, vent position, humidity, light, and CO2. It then uses this information, in conjunction with user defined parameters, to control target processes such as air temperatures, CO2 concentrations, humidity, soil moisture, and nutrient levels supplied by irrigation. Our cultivation rooms will contain sensors that are linked to our automated controls for lighting and CO2. These sensors will work in tandem with other electronic monitoring of heat and humidity and will be tied back to our horticultural systems for adjustments as necessary. Automated Watering & Fertigation System Watering at our facility will be fully automated, through the horticultural management system, for precision and efficiency. Purified water will be held in a 3000-gallon tank. As the water is pumped to the plants, an inline fertigation system will monitor and inject liquid nutrient solutions. This water is collected in a central drain and is pumped into a 3000 gallon sump tank. From there, it passes through a reverse osmosis filter disinfection before the clean water is returned to the 3000-gallon supply tank. Nutrient Composition and Concentration Our cultivation department will use a nutrient system that integrates seamlessly with the fertigation software. This will allow for precision control over nutrient concentrations and pH with every watering. Just as we can vary the amount of water based on current conditions, a nutrient composition and concentration system will enable us to dynamically vary nutrient composition and feed strengths in keeping with our crop management targets. 81 Copyright © 2020 by Fresno Equity & Enterprise Development LLC Automated HVAC Controls of Growing Operations All HVAC systems, spaces, and equipment will be monitored and controlled via our horticultural control system. This includes hot water mixing valves and pumps, gas-fired unit heaters, exhaust fans, air circulation fans, modulating vents, artificial lighting, CO2 enrichment, crop irrigation, and nutrient mixing systems. Cultivation Room HVAC System With the critical temperature/humidity and ventilation requirements of the cultivation rooms, individual rooftop-packaged units will be provided for each grow room. These units will provide all of the heating, cooling, dehumidification and ventilation requirements for the cultivation spaces. The units will be capable of running in an economizer mode with outdoor air during off- grow times and can be provided with a charcoal filter to remove unwanted organic compounds from the conditioned air. With multiple zones, each room will have an individually controlled environment. Supplemental Lighting Artificial grow lights (detailed above) will be employed throughout the cultivation department for supplemental lighting. Electronic ballast, double-ended 1000w 277V lamps (or equivalent) will be installed in the indoor cultivation spaces as a supplemental lighting source, in a grid pattern to produce 400 lumens over the bench area as necessary. 1.10. Fully describe the day-to-day operations if you are applying for a TESTING permit: 1.10.1 Criteria for all testing operations: i. Describe the sampling standard operating procedures ii. Describe procedures for transporting cannabis field samples iii. Describe the chain of custody for field samples iv. Describe the quality control procedures v. Describe the Laboratory Supervisor/Manager responsibilities and qualifications vi. Identify location and procedures for storing cannabis products TESTING DAILY OPERATIONS – N/A Please note that this section is not applicable to our Commercial Cannabis Business application, as FEED is not applying for a Testing permit. 82 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●A parent: Defined as a biological, foster or adoptive parent; a stepparent; or a legal guardian of an employee or the employee's spouse or registered domestic partner. A "parent" may also be someone who accepted the duties and responsibilities of raising the employee when he or she was a minor child, even if they are not his or her legal parent. ●A spouse. ●A registered domestic partner. ●A grandparent. ●A grandchild. ●A sibling. An employee can use paid sick time for any of the above reasons protected by the Act. If the need for paid sick time is foreseeable, employees must provide advance oral or written notification to Manager. HOLIDAYS FEED observes the following paid holidays; all employees are eligible for holiday pay if scheduled on one of the following days: ●January 1 (New Year's Day) ●Juneteenth ●Memorial Day ●July 4th (Independence Day) ●Labor Day ●Thanksgiving Day ●Christmas Day Non-exempt employees who are required to work on a company holiday will be paid at one and one-half times their regular rate of pay for the hours worked. MEDICAL, DENTAL & VISION INSURANCE At FEED, our mission is to deliver the highest possible quality, so that we exceed the expectations of our incubatees, the City, and ultimately, patients and consumers who purchase products made by FEED social equity participants. We believe that to accomplish this we need to build a stellar team, one that believes in our mission, our values and our culture. Our culture is built on the notion of integrity, mutual respect and support to our team to allow for personal and professional growth. We also believe that in order to keep our team motivated and engaged, we have to offer competitive benefits as we understand that they are an important part of employees’ overall compensation. Employees are eligible for medical, dental and vision for benefits if they consistently work 30 or more hours per week on a consistent basis. Coverage begins on the 1st of the month after 60 full days of employment. The COVID-19 pandemic has caused many companies to re-evaluate their medical leave policies. For FEED, any employee that presents symptoms during the temperature and symptom 3 Copyright © 2020 by Fresno Equity & Enterprise Development LLC screening we intend to utilize at the beginning of all shifts will be sent home for two weeks of paid time off. Additional leave includes: ● Bereavement leave ● Jury duty and witness leave ● Time off for voting ● Family leave ● Pregnancy disability ● Victims of crime leave ● Domestic Violence, Sexual Assault or Stalking Leave and Accommodation ● Civil Air Patrol Leave ● Military Leave ● Military Spouse Leave ● Organ and Bone Marrow Donor Leave ● School and Child Care Activities Leave ● Volunteer Civil Service Personnel ● Sick leave ● Disability leave LIFE INSURANCE FEED will offer 100% employer paid premium life insurance policies. EMPLOYEE REFERRAL REWARDS The Company encourages all employees to refer qualified job applicants for available job openings. Other than managers in the line of authority, all employees are eligible to receive employee referral awards. If the referral is hired and completes three months of service and the employee is still an employee of the Company, the employee is eligible to receive a monetary award. The reward is currently a gross amount of $ for regular full-time hires. 2.3. Describe compensation to and opportunities for continuing education and employee training. COMPENSATION & OPPORTUNITIES FOR EDUCATION & TRAINING FEED was founded on the sole mission of creating equity in Fresno’s nascent cannabis industry. We believe that equity can only be achieved when individuals have the education, skills and resources necessary to attain their goals. As such, FEED has allocated a year to fund the ongoing education and training of our employees. Our commitment to providing continuous paid education and training is in addition to our rigorous onboarding training that employees will receive upon joining FEED. To facilitate our employees’ ability to seek additional education on a continuous basis, we have developed ongoing partnerships with relevant local educational resources to ensure our employees have the tools to succeed. FEED’s paid employee education program focuses on three priorities: 1. Pursuit of a Higher Education 2. Cannabis Specific Training 3. Safety in the Workplace 4 Copyright © 2020 by Fresno Equity & Enterprise Development LLC FEED has selected partners with a proven track record of success in achieving our educational priorities. Partners include, but are not limited to, the following: Fresno City College Fresno City College provides myriad classes providing the education and training necessary for successful careers at FEED, including, accounting and marketing. FEED will provide financial assistance for employees seeking to continue their education at Fresno City College. Additionally, FEED is in discussions with the college for how partnership could be expanded to benefit incubatees as well. Americans for Safe Access - Patient Focused Certificates The Patient Focused Certification (PFC) program offers a variety of services designed to prepare individuals and businesses for success in the cannabis industry. Americans for Safe Access (ASA) has been a trusted source of cannabis education and training for over 18 years. ASA created Patient Focused Certification (PFC) as a certification and training program to help regulators, operators, and advocates ensure regulatory compliance for cannabis and hemp businesses. The PFC training and education program prepares individuals to understand state and local regulations and to learn required safety and operational protocols while teaching them the basics of cannabinoids as medicine and common therapeutic uses of cannabinoids. PFC offers: ●Certification - PFC addresses product and distribution safety in the cannabis industry through educational programming resulting in certification. Designed for every stage of the cannabis supply chain, PFC certification provides individuals and businesses the knowledge and skills needed to navigate state and regulatory compliance in the cannabis industry. PFC offers company certification ranging from single discipline certification to multiple/vertically integrated discipline certification options. FEED employees will be encouraged to seek certifications with PFC that will be fully paid for by FEED. ●Consultation Services - PFC training and consultation is specific to helping individuals understand and be successful in the cannabis licensure process. FEED will work with our employees to identify what additional services could benefit their success and will cover the costs of consultation services with PFC. ●Industry Training - PFC training program prepares individuals to understand state and local regulations and to learn required safety and operational protocols, while teaching them the basics of cannabis as medicine and common therapeutic uses of cannabis. FEED encourages employees to enroll in the rigorous and plentiful individual cannabis industry specific training available through PFC. Employee elective training relevant to the employee’s role will be paid for by FEED. Advanced OSHA Training All employees will be provided the opportunity to participate in a 30-hour OSHA training course from an authorized OSHA Training Institute (OTI) Education Center. The course teaches safety awareness which helps in recognizing and reducing the risks of job site hazards. 5 Copyright © 2020 by Fresno Equity & Enterprise Development LLC This interactive training covers safety and health hazards workers may face on work sites. The course places emphasis on hazard identification, avoidance, control and prevention. Upon successful completion of the course, employees receive a 30-Hour Cal/OSHA General Industry Outreach course completion card. This course covers: • Electrical Hazards • Exposures to Airborne Contaminants • Flammable Liquids and Gases • Hazard Communication • Hazardous Energy – Lockout/Tagout • Heat Illness Prevention • Injury and Illness Prevention Program • Machine Hazards • Personal Protective Equipment • Point of Operation Hazards • Pressure Vessels • Prohibition of Smoking in the Workplace • Repetitive Motion Injuries • Sanitation and Pest Control • Slips, Trips, Falls and Use of Ladders FEED is enthused, prepared and committed to providing continuous compensation to our employees throughout the duration of their educational pursuits. 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. INTRODUCTION FEED is committed to ensuring diversity and localism throughout our organization – from the people we hire as employees to the incubatees who apply to participate in this program. This proposal outlines our organization’s plan to ensure diversity and local hiring are incorporated into every aspect of our operations and decision making. FEED will recruit qualified individuals who meet the criteria listed in the Social Policy section of the Fresno Municipal Code (“Social Policy criteria”) through building strong community relationships and ensuring inclusivity and representation. Furthermore, FEED is committed to hiring 100% of its workforce locally. FEED’s owner, Terance Frazier, is a prominent member of the Fresno community who has dedicated much of his life to mentoring youth into achieving their full potential. He is committed to having FEED partner with non-profit organizations in the region, along with community colleges, Fresno State, and utilizing the resources of KNOW1, his leadership group of prominent African American leaders in the community, to recruit individuals who meet the Social Policy criteria. FEED has developed the following programs and plans to follow through on our commitment to recruit individuals who meet the Social Policy criteria. IDENTIFICATION OF FOCUS AREAS FEED has identified the following areas of particular focus within our Hiring Plan goals, in accordance with Social Policy Section 9-3316 (b)(1) of the Fresno Municipal Code: 6 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Individuals from families with an annual income below $ , or less than 80% of the Fresno annual family income according to the US Census ●Individuals convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current California state law ●Individuals who lived in a low to moderate income census tract in the city for a minimum of three years ●Veterans ●Individuals from youth foster homes or who were in foster care as a minor ●Individuals who are currently unemployed ●Individuals receiving public assistance RECRUITMENT & OUTREACH PLAN FEED will establish and maintain an inclusive and diverse workforce through recruitment targeted to underrepresented and minority communities, with a particular emphasis on identified focus areas. FEED will prioritize the hiring of individuals whose communities have been disproportionately harmed by cannabis prohibition and enforcement. FEED will develop strategic initiatives to ensure a diverse and qualified staff stands ready to serve FEED’s needs. These strategic initiatives include: ●Implement internal recruitment and retention goals, and ensure they are met ●Host career fairs in underrepresented communities ●Provide training on cultural sensitivity and recognizing unconscious bias ●Use vendors and suppliers who are also committed to hiring individuals who meet the Social Policy criteria FEED’s recruitment efforts are built on a foundation of strong relationships and ensuring inclusivity and representation. Recruitment efforts are designed to maintain a steady flow of qualified diverse and local applicants and include the following steps: ●Developing relationships with organizations serving individuals who meet the Social Equity criteria for employment referrals ●Developing relationships with job training, STEM training, medical care training, and other professional development organizations serving the Fresno community ●Providing briefings to representatives from mainstream and local recruitment sources concerning current and future job openings ●Advertising job listings in local publications, community boards, and similar sources of local information ●Encouraging employees from diverse and local groups to refer applicants for employment ●Participating in local job fairs and career day programs, and encouraging FEED’s diverse and local employees to participate whenever possible ●Establishing recruitment efforts at community colleges, job training programs, STEM training programs, higher learning institutions, community-based organizations, and institutions with special programs that reach diverse people and the local community ●Establishing recruitment efforts with local veterans’ support and advocacy groups 7 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Developing relationships with community housing, transportation, and other programs designed to improve employment opportunities for persons who meet the Social Policy criteria ●Ensuring that job openings are sent to community partners ●Ensuring that job openings are sent to industry groups focused on diverse representation in the cannabis industry, including but not limited to: o Minority Cannabis Business Association o Cannabis Cultural Association o National Diversity Inclusion & Cannabis Alliance o Minorities 4 Medical Cannabis o SuperNova o Women Abuv Ground o WomenGrow ●Utilizing Zip Recruiter or equivalent online recruitment program to reach over 100 online career and job websites, as well as social media We will implement hiring best practices based on publicly available data and empirically successful policies, such as those from the University Health Services from the University of California-Berkeley. Some of these best practices will include, but are not limited to, the following: ●ADVERTISING FOR DIVERSITY o FEED will advertise with professional organizations. o FEED will ask professional organizations for names of potential candidates. o FEED will include an affirmative action policy or statement in advertisements and websites. ●TARGET RECRUITMENT ACTIVITIES TO UNDERREPRESENTED POPULATIONS o Include the ways in which the work would help underrepresented populations and individuals that meet the social policy criteria in all messages. o Partner with minority-serving institutions in Fresno to develop recruitment plans. o Attend job fairs at local community, junior, and 4-year colleges that serve primarily underrepresented populations. o Provide opportunities for potential candidates to get a sense of the diversity in the workplace or broader community (such as a tour or attendance at an event). o Create a diverse recruiting and/or hiring team. o Personalize recruitment; call applicants and follow up. o Reach out and find candidates. Use the internet and social media tools like LinkedIn to find competitive candidates who might meet the social equity criteria. o Recruit continuously—not only when there are openings. Maintain professional networks and make note of potential candidates from underrepresented groups. If possible, build and develop relationships with potential candidates, keeping them in mind for future openings and/or asking them to assist in recruiting from their own networks. 8 Copyright © 2020 by Fresno Equity & Enterprise Development LLC o Maintain a file of resumes and contact information for potential candidates who meet the social policy criteria. ACTION-ORIENTED PROGRAMS FEED will institute action programs to address identified focus areas and to help achieve specific Diversity and Local Hiring Plan goals. These programs include: ●Conducting analyses of job descriptions to ensure they accurately reflect job functions ●Reviewing job descriptions by department and job title using job performance criteria ●Making job descriptions available to recruiting sources and available to all members of management involved in the recruiting, screening, selection and promotion processes ●Evaluating the total selection process to ensure freedom from bias through: o Reviewing job applications and other pre-employment forms to ensure information requested is job-related o Evaluating selection methods that may have a disparate impact to ensure that they are job-related and consistent with business necessity o Training personnel and management staff on proper interview techniques ● Training in EEO for management and supervisory staff ●Using techniques to improve recruitment and increase the flow of Social Equity criteria applicants. FEED will, at minimum, undertake the following actions: o Include the phrase "Equal Opportunity/Affirmative Action Employer" in all employment advertisements o Place help wanted advertisement, when appropriate, in local news media in impacted communities o Disseminate information on job opportunities to organizations working with and/or representing veterans, low-income families and employment development agencies when job opportunities occur o Encourage all employees to refer qualified applicants o Actively recruit at secondary schools, junior colleges, colleges and universities with financial assistance programs o Request employment agencies to refer qualified veterans or felons convicted for non-violent cannabis related crimes ●Ensuring that all employees are given equal opportunity for promotion by: o Posting promotional opportunities o Offering counseling to assist employees in identifying promotional opportunities, training and educational programs to enhance promotions and opportunities for job rotation or transfer o Evaluating job requirements for promotion CONCLUSION FEED recognizes that it is an uphill battle to right the wrongs of the failed War on Drugs, that many members of the community find themselves in unfortunate financial or employment circumstances, and that our veterans often have trouble starting careers in civilian life. With this in mind, FEED is dedicated and committed to recruiting through every avenue possible across the Fresno community to meet our employment needs utilizing talented individuals who meet the Social Policy criteria. 9 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 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. FEED is 100% locally owned by Terance Frazier, a resident and community builder for more than 30 years in Fresno. 2.6. Describe the number of employees, title/position and their respected responsibilities. CHIEF EXECUTIVE OFFICER: 1 Terance, our CEO, will directly implement policies and oversee direction of the business, mission and strategic vision. He will provide the necessary leadership relating to the daily execution of operational matters, as well as act as a liaison to the community in conjunction with the Incubator Manager and Community Liaison. Functional managers will report to this position. Duties & Responsibilities ● Defines the mission, vision, goals and objectives of the enterprise ● Engages the community on behalf of the business ● Develops and executes strategic partnerships across the supply chain ● Liaises with community partners, developing programmatic components of FEED’s offering ● Serves as a mentor to incubatees ● Leverages his network to benefit the FEED program ● Develops Code of Conduct/Standards of Conduct ● Oversees the internal auditing/monitoring activities including quality assurance, risk management, utilization review, fiscal auditing, and special projects ● Participates in development and presentation of staff training including the content and objective of each training or class session; determine target audience for each training or class session; review materials for training sessions FINANCE DIRECTOR: 1 The Finance Director will oversee budgeting and financial affairs, administrative management, compliances and IT. Duties & Responsibilities •Oversees financial and accounting system controls and standards and ensures timely financial and statistical reports; advises the CEO and Facility Director with respect to financial reporting, planning, practices, financial stability and liquidity and financial growth •Responsible for strategic planning, operations, investment portfolios and cash management 10 Copyright © 2020 by Fresno Equity & Enterprise Development LLC •Develops financial and tax strategies as well as performance measures that are consistent with strategic goals and financial objectives •Maintains relationships with financial institutions •Establishes major economic objectives and policies; direct the preparation of reports that detail financial position in the areas of income, expenses, and earnings based on past, present and future operations •Ensures effective internal controls, optimum efficiencies, improvement of processes, and compliance with Generally Accepted Accounting Principles •Prepares and review pro-formas and budgets of new and existing operations; recommend annual budget for CEO approval •Achieves the financial objectives of the organization by exercising control and implementation over the budgetary processes of all departments and capital budgets •Reviews activity reports and financial statements to determine progress and status in attaining objectives; revise objectives and plans in accordance with current conditions. •Perform other duties as assigned FACILITY DIRECTOR: 1 The Facility Director will oversee all employee positions, general operations and internal affairs, administrative management, compliance and IT. Duties & Responsibilities ● Determines compliance budget and presents to Finance Director ● Participates in all disciplinary hearings and assist Human Resources with investigations. ● Manages the internal auditing/monitoring activities including quality assurance, risk management, utilization review, fiscal auditing, and special projects ● Participates in development and presentation of employee training including the content and objective of each training or class session; determine target audience for each training or class session; review materials for training sessions ● Oversight of operations ● Management of Quality and Control Unit SECURITY & COMPLIANCE MANAGER: 1 The Security and Compliance Manager will oversee the security team and perform and/or comply with rules and regulations. He/she will provide services for the licensed facility in connection with personal safety and crime-prevention techniques, transportation of medical cannabis, storage of usable cannabis, use of safety and security systems, provision of physical security in general. Will assist as distribution drivers for transport and delivery goods between different locations in a safe, courteous, and timely manner. Duties & Responsibilities •Creates, maintains, and upgrades security infrastructure, equipment, and operations •Monitors the security environment •Keeps and manages all security records •Manages the security vendor relationship •Hires and trains security guard staff 11 Copyright © 2020 by Fresno Equity & Enterprise Development LLC •Creates and implements security procedures and training for all facility staff •Ensures total compliance with all state mandated security regulations •Ensures the CDPH, BCC, CDFA, Fresno PD, and other necessary authorities are rapidly notified of any security breach or issue, and coordinating with law enforcement as necessary •Assists with Standard Operating Procedure development relating to security and facility safety •Coordinates with other cultivation facility team leaders to establish all necessary safety protocols •Manages and implements all required OSHA rules, regulations and guidelines •Conducts staff training on best practice for safety in the workplace HEAD OF CULTIVATION: 1 The Head of Cultivation will oversee the Cultivation team to produce cannabis material for processing and manufacturing and perform and/or comply with rules and regulations as well as supervise quality control and manage the testing plan. Duties & Responsibilities •Directs, manages and reports on all plant operations •Oversees the continuous improvement of production, maintenance, quality, safety and other production-related activities •Ensures adherence and compliance with regulations, policies and procedures •Prepares and reports progress of goals and objectives monthly to CEO and associates within the facility •Direct and organize Cultivation Technicians and their activities CULTIVATION TECHNICIAN: 2-4 Cultivation technicians will support the Head of Cultivation in all cultivation operations and will comply with rules and regulations to ensure quality control. Duties & Responsibilities •Follows all standard operating procedures, Master Cultivation Control Documents, safety guidelines and company policies and procedures relative to cultivation •Performs tasks to support room cleaning, inspection, cultivation tasking (pruning, operating harvest equipment, nutrient mixing, systems checks, etc.) material handling and facility cleaning HEAD OF MANUFACTURING: 1 The Head of Manufacturing will oversee the processing, manufacturing, and manufacturing team and perform and/or comply with rules and regulations. The Head of Manufacturing will also supervise quality control and manage testing plans. Duties & Responsibilities •Directs, manages and reports on all processing operations 12 Copyright © 2020 by Fresno Equity & Enterprise Development LLC •Oversees the continuous improvement of production, maintenance, quality, safety and other production-related activities •Ensures adherence and compliance with regulations, policies and procedures •Directs and organizes manufacturing technicians and their activities MANUFACTURING TECHNICIAN: 2-3 Manufacturing Techs will support the Head of Manufacturing in all extraction, manufacturing, and general lab operations and comply with rules and regulations to ensure quality control. Duties & Responsibilities •Follows all SOP’s, Master Manufacturing Control Documents and safety guidelines and company policies and procedures relative to production, testing/inspection, and documentation of quality products •Performs tasks to support room cleaning, inspection, assembly, case packing, material handling and facility cleaning •Performs in-process finished goods inspection to ensure all product produced meets established quality criteria HEAD OF DISTRIBUTION: 1 The Head of Distribution oversees the shipping and receiving of items. He/she will also oversee the receiving of goods, verify accuracy and maintain inventory of received items, and the entire order receipt to fulfillment process. Duties & Responsibilities •Maintains up to date FEED orders and inventory management system in real-time •Ensures orders are delivered in a timely fashion with the utmost accuracy •Maintains accurate data in state compliance track and trace system (METRC) and sync orders with transfer manifests, inventory, accounting and sales team •Plans, schedules and executes deliveries in an efficient and timely fashion •Ensures timely escalation of issues and mitigate customer grievances •Oversees receiving inventory and maintains an accurate log of items •Weekly, Monthly and Quarterly inventory cycle counts • Ensures that all deliveries comply with legal, quality and safety standards DISTRIBUTION TECHNICIANS: 3-5 Distribution Technicians will be responsible for basic packaging and labeling of finished products by hand or with a machine, as well as ensuring timely transportation of product into and out of the facility. Duties & Responsibilities •Good communication skills, verbal and written, with co-workers and management •Practice good housekeeping habits to keep a clean workstation •Flexibility and the ability to shift work schedules according to production needs •Clean driving record 13 Copyright © 2020 by Fresno Equity & Enterprise Development LLC INCUBATION MANAGER AND COMMUNITY LIAISON: 1 In conjunction with the CEO, the Incubator Manager will develop and oversee the implementation of the curriculum for the Incubator program. He/she will also be responsible for overseeing administrative tasks, scheduling, and logistics involved in the incubator program. Importantly, the Incubator Manager coordinates the curriculum development as well as the volunteers teaching the program. In their duties as Community Liaison, and in coordination with the CEO, the Incubator Manager will manage neighbor and community engagement, and work to implement policies and procedures to ensure FEED is a net benefit - creating ongoing dialogue between FEED and the community at large. RECEPTIONIST: 1 The receptionist greets individuals as they enter the premises, ensuring they have the proper credentials to indicate that they are either an employee of the business or student of the incubator, or a visitor who will have to complete the proper documentation prior to entering. The Receptionist will also be trained to remain vigilant for any suspicious activity in the lobby. 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. FEED has not initiated hiring efforts given it has not been selected as a license recipient. In accordance with Fresno Municipal Code section 9-3316(b)(2), no later than thirty days of its fifth hire, FEED will sign a labor peace agreement and provide a copy of the executed agreement to the City Manager or designee(s). Terance looks forward to a positive and collaborative working relationship with the union which will allow FEED employees to unionize without interference. 2.8. Provide a workforce plan that includes at a minimum the following provisions: 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. As a locally owned and operated microbusiness, FEED is committed to hiring 100% of our employees from within the City of Fresno. FEED was founded on our commitment to fostering equity for Fresno residents. Ensuring our local workforce has access to high paying jobs with distinct career growth pathways is a first step in fulfilling our commitment to our community. 14 Copyright © 2020 by Fresno Equity & Enterprise Development LLC We are confident in our ability to hire locally and will utilize our extensive network that has been cultivated over decades as a result of Terance’s active engagement in this community. The following details FEED’s Plan to successfully hire 100% of our team from the City of Fresno. EXECUTIVE LEADERSHIP Upon being selected for a cannabis microbusiness license, Terance will work with his extensive community and business network throughout the City notifying them of our upcoming employment opportunities. COMMUNITY INVOLVEMENT FEED will host our first Jobs Fair three months prior to opening our doors. We will develop public service announcements to be distributed through our local partners to ensure robust participation. Two months prior to opening our doors, FEED will engage with Know 1, a local leadership group comprised of African American professionals from across diverse industries in Fresno, to host a community discussion on equity in cannabis and upcoming employment opportunities in the nascent cannabis industry. FEED will spearhead efforts with our fellow licensed cultivators, retailers and microbusinesses to ensure all members of the cannabis industry are a part of these important discussions. MEDIA RELATIONSHIPS Three months prior to opening our doors, FEED will post job opportunities in locally trusted and widely read media outlets, such as The Fresno Bee, The California Advocate and Vida en el Valle. We will utilize our existing relationships with local journalists to garner excitement and gain interest in FEED’s incubation mission and job opportunities. One month prior to opening, FEED leadership will participate in a fireside chat with local journalists to provide an overview of our employment opportunities and create public awareness around FEED and our incubation efforts. SOCIAL MEDIA PLATFORMS FEED will launch a media campaign on our Instagram and Facebook business pages producing live content showcasing FEED’s incubation facility. We will provide snapshots into the ethos behind FEED with Facebook live interviews of FEED’s leadership team. We will cross promote our messages with leaders and community partners to ensure all members of our community understand that there are many opportunities in the cannabis industry. Three months prior to opening our doors, FEED will launch a local hiring campaign through our curated local social media account to educate our community on job opportunities and career paths at FEED and across the Fresno cannabis industry broadly. UNIVERSITY PARTNERSHIPS FEED’s leadership team has initiated discussions with Fresno City College on the opportunity for students to gain credit for the training and skills they earn through FEED’s incubation 15 Copyright © 2020 by Fresno Equity & Enterprise Development LLC campus. As we work with our educational partners on our broader goals, we will provide them with consistent updates on FEED’s curriculum, job opportunities and incubation successes. Two months prior to opening our doors, FEED will invite our educational partners to tour our incubation facility and provide them with an overview on the jobs and incubation opportunities available. We will provide printed descriptions and answer any questions on qualifications or responsibilities. We want our university partners to understand FEED and our incubation ethos. Fostering relationships with university partners is a critical component of creating the pathways for long term equity for members of the cannabis industry. CANNABIS ENTHUISIAST TARGETED OUTREACH FEED will conduct targeted outreach to individuals that have expressed an interest in joining the cannabis industry. FEED will work with Vangst, a job portal specific to cannabis interested applicants, with the ability to define geographic limitations to the City of Fresno. FEED will post all potential job postings with Vangst as well as review their candidates that have expressed interest in cultivation, manufacturing and distribution to educate them on FEED’s incubation campus and the opportunities they may pursue with us. ONLINE RECRUITMENT PLATFORMS One month prior to opening our doors, FEED will post upcoming job opportunities on trusted recruitment platforms such as Indeed.com and LinkedIn. We will limit the geographic target to the city of Fresno ensuring all applicants are local. CONCLUSION FEED’s leadership team’s first priority is providing jobs to Fresno residents. We have full confidence in our ability to exceed the City’s requirement of 30% and meet our goal of employing 100% local Fresno residents. 2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field. FEED is dedicated to the incubation of our community’s future cannabis leaders. Incubation requires apprenticeship as it is the training foundation for incubation. Apprenticeship and the training and mentorship that it includes are the fabric of any successful incubation and are intrinsic to FEED’s Social Equity Business Incubator ethos and is therefore reflected in our practices. FEED will offer paid apprenticeship through FEED’s Social Equity Business Incubator. Please see section 2.9. 2.8.3. Commitment to pay a living wage to its employees. FEED is committed to equity and equity requires a living wage. Therefore, FEED will pay employees between $ and $ an hour, depending on the role and level of experience. 16 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 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. As previously noted, most social equity programs throughout California and across the country seek to create social equity in the cannabis industry by allocating a limited number of licenses to social equity applicants, meaning only a handful of applicants ultimately benefit from the tremendous opportunity inherent in participation in the legal cannabis industry. Instead, Fresno put forth an “all of the above” policy that similarly allocates social equity licenses to qualifying applicants but also allows for the creation of a cannabis incubation ecosystem, providing the tools applicants need to succeed. Through this approach, Fresno is fostering the creation of an unlimited number of success stories as the face of diverse and equitable cannabis in Fresno, rather than just a lucky few. FEED is committed to playing a critical role in supporting that goal, and as such has been created for the purposes of serving as a Social Enterprise Business and Social Equity Business Incubator that will set participants up for a successful career in cannabis through education, training and technical support. FEED proposes to develop a 25,000 square foot building with premises for cannabis cultivation, manufacturing and distribution activities, as well as a more traditional classroom setting for lectures and group discussions. The onsite cannabis activities will be the core of the campus, serving as a real-world classroom to provide practical experience for incubatees to put learned information into action. Terance will entirely fund the creation and launch of this campus and curriculum. Once operational, incubatees will apply to attend the campus and participate in its incubation program. FEED’s case manager will assist them in seeking a scholarship by applying for funds from the City of Fresno’s Community Reinvestment Fund to support them in participating in this endeavor. Any individual residing in the City of Fresno that qualifies as a social equity applicant under the municipal code will have the opportunity to participate in FEED’s incubation program. FEED will develop these individuals into business owners and/or qualified professionals within the cannabis industry through a hybridized approach including classroom style education, soft skills training, workforce development and paid work experience. FEED will also provide wraparound services and support, including but not limited to record expungement and technical assistance. In order to participate, applicants must commit to 10 hours a month of community volunteerism and have a willingness to participate in both classroom education and in-the-field training through work study in the campus’ cultivation, manufacturing and distribution efforts. 17 Copyright © 2020 by Fresno Equity & Enterprise Development LLC This campus will serve two primary purposes: 1. First, as noted above, it is the physical classroom necessary to execute a cannabis curriculum led by seasoned cannabis professionals across all aspects of cannabis businesses; and 2. It is a shared-office collaborative workspace for program graduates seeking to operationalize their own businesses in the industry, providing the cultivation, manufacturing and distribution infrastructure necessary to launch their own brands into the market. PART ONE: INCUBATION PROGRAM Upon being accepted into the FEED program, applicants will begin their education and hands-on training. The backbone of this program is education, with a detailed curriculum covering all aspects of the industry being developed in coordination with leading subject matter experts in cannabis today. These classes will utilize the licensed cultivation, manufacturing and distribution activities taking place on the premises as a real-life classroom for students in the incubator program. Students will gain first-hand experience and develop the skills needed to properly cultivate, manufacture, and distribute cannabis in a compliant and effective manner. The curriculum is built around two tiers. The first is intended to create a baseline of cannabis industry education: ●Cannabis Best Practices ●State and Local Regulations ●Supply Chain ●Safety and Security ●Inventory Control ●Branding and Marketing ●Finance 101 Next, students identify their focus area – cultivation, manufacturing, distribution or retail – and participate in the second tier with a smaller group of students focused on similar goals. This tier includes basics such as those listed below as well as a specific focus on the intricacies of their selected pathway. ●Regulatory Compliance ●Cannabis Application Writing, Legal and Technical Assistance ●Real Estate and Zoning Compliance ●Marketing and Advertising Cannabis Regulatory Restrictions ●Compliance through Design ●Taxes and Banking in Cannabis Given this microbusiness does not include retail activities, Terance has partnered with Steve Hosey, his childhood best friend and Embarc, to ensure an apprenticeship pipeline into Embarc’s proposed retail activities. 18 Copyright © 2020 by Fresno Equity & Enterprise Development LLC We understand that for most people, participating in this program is only feasible if they are being compensated given it will require such a significant allotment of time in order to succeed. As such, FEED will employ an onsite case manager who will work with the incubatees to pursue funding from the City’s Community Reinvestment Fund. Tuition rates are tiered based on need, however all participants will be required to participate in 10 hours of community service per month in order to qualify. Additionally, if participants do not have a G.E.D., the case manager will support the applicant in identifying and participating in a G.E.D. program. In Terance’s baseball incubator, 100% of participants graduate from high school. This underscores his belief in the importance of education, something that will be similarly important in this undertaking as well. FEED’s case manager will thus serve as a friend and advisor to participants, guiding them through the G.E.D. enrollment process. PART TWO: APPRENTICESHIP Once students complete the initial education program, they will then begin the apprenticeship component of FEED, in which they put their newfound knowledge to work in either cultivation, manufacturing, distribution or retail operations. These apprenticeships are paid, ensuring that incubatees are earning a living wage while gaining the vital skills and real-world experience necessary in order to have successful careers in this industry. After 6 months of apprenticeship, apprentices will have the option of continuing to work for FEED as an employee, working with the case manager to seek employment elsewhere in Fresno or California’s legal cannabis industry, or, begin the process of developing their own business. If the latter, the campus then becomes the facility they need in order to achieve this goal, providing vertically integrated operations to cultivate cannabis, manufacture it into product, and distribute it to retailers. Given the City has requested retail applicants allocate a percentage of shelf space to social equity brands, these entrepreneurs will have a built-in support system of local retailers committed to carrying their products. Entrepreneurs will be supported through Terance’s network of cannabis industry leaders and partners who have committed to providing ongoing support to program participants. As an example, retail applicant Embarc has committed to the following: ●Volunteerism Embarc’s Executive Leadership Team will help to develop FEED’s incubation curriculum and teach many of its courses as part of its executive volunteerism, committing hundreds of hours each year from C-Suite Executives. ●Business Training Embarc will provide mentorship across all components of cannabis business operations, from real estate and permitting to marketing and compliance. ●Apprenticeship Embarc will leverage its retail assets to provide apprenticeship opportunities for social equity qualifying applicants, with priority placement given to those who are in or have graduated from FEED. 19 Copyright © 2020 by Fresno Equity & Enterprise Development LLC ●Economic Benefit Embarc principals will provide cultivation output from their Mendota site to licensed social equity incubatees at cost, eliminating the approximately 50% markup typically included in the sale of cannabis. ●Expungement Embarc will fund expungements for all FEED participants. ●Priority Shelf Space Embarc will commit to no less than 20% of its shelf space allocated for social equity brands, with a plan to increase this number to 50% once local brands are operational. Through these types of retail partnerships, FEED participants will be set up to succeed. This incubator will be a one stop shop for social equity applicants and will consist of classroom training, shared operation space, invaluable networking opportunities, expert mentoring resources, access to shared equipment, and more. Mentorship and Training Within the premises will be a physical classroom space for all students to receive mentorship and training in a classroom setting taught by volunteer experts. The curriculum, developed in conjunction with notable industry experts and higher-learning institutions, will focus on a wide range of topics relevant to succeeding in the cannabis industry. Courses that will be offered for students going through the FEED incubator program will include, but not be limited to: ●General Education – Cannabis 101 o This is a high-level, comprehensive course on all things cannabis. Everything from the history of cannabis, strain types and consumption methods, to pertinent regulations and basic safety standards will be discussed in this class. This class is a prerequisite for all students prior to choosing their own disciplines and elective classes. ●The Business of Cannabis o This class will enable students to become responsible, prepared, and able business owners in the cannabis industry. Whether students are looking to find a new job, begin a career, start a business or invest in one, students who complete this program will have a better understanding of the needs and concerns of patients and consumers, and a solid grasp on the overall business behind cannabis. This class will also give a high-level overview of METRC, the state’s track-and-trace program. Basic accounting and bookkeeping, marketing, corporate structuring, and other essential business principles and challenges unique to running a cannabis business will be taught in the course. ●Horticulture and Cultivation o This course provides a comprehensive indoor horticultural education for those interested in entering the cannabis industry on the cultivation side. This course consists of resources, presentations, grow labs, and mastery exercises developed by industry leaders. It is designed for anyone looking to learn everything from seed to harvest, with topics ranging from pests and pesticide use, watering techniques, and ideal growing conditions. Students in this class will have direct 20 Copyright © 2020 by Fresno Equity & Enterprise Development LLC experience with how to properly grow cannabis in a controlled indoor environment by observing FEED’s cultivation operations firsthand. ●Sales and Budtending o This class will detail the necessary qualifications required of a sales associate at a dispensary; the most important of which is outstanding customer service skills. We will go on to explain how a sales associate serves as an ambassador for the entire cannabis industry, and outline some of the unique responsibilities that come with selling products which have a range of medical, health, and therapeutic benefits. We will then look at some of the specific aspects of working in a dispensary that make it different from other customer service jobs, including special product handling requirements and enhanced on-site security. ●Marketing and Branding o In this class students will learn the history of notable cannabis brands, utilizing case studies of successful as well as failed cannabis brands. Furthermore, topics ranging from how to build a cannabis brand from naming to logo to package design, as well as marketing, advertising, PR and social media promotion strategies. This class will also touch on how to create and market for cannabis events. ●Manufacturing and Infusion o This class will help students develop skills essential to success in commercial cannabis extraction, including: the science of cannabis molecules, essential extraction principles, and major extraction processes. The science and steps behind different methods of extraction and how to choose the best extraction method(s) for an extraction or infusion business will be a focus of this class. Other notable focus areas will include how to interpret lab results, the application of terpenes and cannabinoids into products, proper dosing and quality control, and the role solutions and solubility play into a final product. ●Cannabis Distribution o For students interested in the distribution side of the business, this is the class for them. They will be introduced to supply chain logistics, proper packaging and transportation methods, and a deep understanding of the regulations surrounding cannabis distribution. Lastly, this class will give a more in-depth look into how the California METRC track-and-trace system works. ●Safety and Security o The cannabis business presents a number of safety and security issues unique to the industry. This class will leave students with a better understanding of how to prevent theft, diversion, and loss of product, as well as basic OSHA safety principles. Furthermore, students will learn how to defuse potentially violent situations, and how to maintain a secure premise. Lastly, this class will give an overview of state and local regulations pertinent to cannabis security measures. After graduating this class, students will have the tools to begin a career as a security guard for a cannabis company, or, in conjunction with other classes, have a good starting point to creating their own cannabis security company. ●Finances and Economics of Cannabis o This is an advanced class that will define economic principles as they pertain to cannabis markets, which are heavily influenced by laws and regulations. The 21 Copyright © 2020 by Fresno Equity & Enterprise Development LLC course also discusses the economic benefits and financial barriers the cannabis industry experiences and will teach students how to facilitate the discussion about the economics of regulating cannabis businesses, as well as fundraising and investment principles. How to build financial models for a cannabis business will be taught, and a macroeconomic view of cannabis laws, regulations and markets will also be reviewed. Rather than reinventing the wheel, FEED will seek to partner with local workforce development programs for much of the non-cannabis soft skills, vocational training and wraparound services. Fortunately, Terance is well-connected across the City and County of Fresno and will seek partnerships with organizations such as the Fresno Economic Opportunities Commission to assist in developing various facets of the curriculum. Equipment Donation All of the state-of-the-art equipment being utilized in our microbusiness operations will be available for incubatees to use as they learn how the equipment functions and can eventually be utilized by graduates as they pursue the development of their own branded products. Percentage of Shelf Space Dedicated to Fresno Equity Business Products FEED is proud to partner with Embarc, a cannabis retail applicant in the City of Fresno, to provide meaningful benefits including significant shelf space to incubatees. Using their commitment as a model, FEED will proactively meet with other applicants to determine whether we can create additional retail partnerships as well. Legal Assistance All students who are accepted into the incubator program will automatically be eligible to receive legal assistance to expunge from their record any convictions for cannabis related crimes that could have been prosecuted as a misdemeanor or citation under current State law. FEED, in partnership with notable cannabis retailer, Embarc, will contribute these legal services free of charge. Financial Services Assistance Incubatees will receive financial assistance in a variety of ways. First, tuition will be fully covered for all students going through the program. Second, once students are “apprentices” they will be receiving a paycheck. Lastly, students may take our “Business of Cannabis” and “Finances and Economics of cannabis” class, which will leave them with a deep understanding of the finances involved in running a cannabis business. Technical Assistance Support All students enrolled in the incubator program will receive a free laptop with which they can complete all their required coursework, as well as access to our Wi-Fi. Also, a number of our classes will teach incubatees how to use the METRC track-and-trace software. 22 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 1 SECTION 3. NEIGHBORHOOD COMPATIBILITY PLAN Fresno Equity and Enterprise Development (FEED) has developed a comprehensive Neighborhood Compatibility Plan for our microbusiness and will implement and maintain strict policies and procedures to ensure that we serve as a good neighbor in our community through nuisance mitigation, odor control and mitigation, and waste management. Our mission and business model are designed to serve our surrounding community. We want to positively impact and energize our neighborhood through economic development and the reduction of neighborhood blight and serve as a foundational business in the designated Cannabis Innovation Zone in the area bounded by State Route 41, Golden State Boulevard., Church Avenue, East Avenue, and Parallel Avenue. Additionally, all employees will be invited and encouraged to participate in company related community programs, outreach events, and encouraged to practice community mindedness and participation in their respective neighborhoods and our greater Fresno community. Our goal is to create an environment that exudes professionalism, which will help build community and neighbor confidence while serving as a standard for any similar facilities. FEED will maintain full compliance regarding signage, exterior aesthetic, non-visibility into the facility, product security and restricted access, and will dramatically improve the aesthetic of our location in Fresno. In short, we want to work directly with the City and our community partners to ensure a mutual goal of community improvement is achieved. 3.1. Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic. Every aspect of our FEED facility and operations are designed to proactively address and respond to any potential negative impact on our neighbors and the surrounding community. We will take every measure accountable to ensure a nuisance free operation, while maintaining the highest levels of safety and security. PROACTIVE NUISANCE MITIGATION Exterior Facility Maintenance FEED is dedicated to maintaining the facility exterior and surrounding area in a clean, safe, and visually attractive manner that does not cause a public or private nuisance for our staff, incubatees, and our neighbors and the surrounding community. Our regular maintenance activities will include exterior cleaning, repairs, and general upkeep to ensure that it is visually attractive and not dangerous to the health, safety, and general welfare of employees, visitors, surrounding properties, and the general public. Litter will be removed daily from the premises, Copyright © 2020 by Fresno Equity & Enterprise Development LLC 2 including adjacent public sidewalks and all parking lots under FEED’s control. The exterior areas will be swept and cleaned either mechanically or manually on an at least weekly basis to control debris. We will ensure that operating characteristics are compatible with abutting properties and the surrounding neighborhood. Noise The construction of our facility is such, and the production environments utilize enclosed, controlled spaces, that any operational noise will be mitigated, and not audible to persons outside the facility or in the incubator annex. Any external noise will be created by HVAC units, and no different than standard retail and/or commercial settings. No exterior music will be projected, and we will post signage as well as train personnel and facility visitors to not play music in the parking lot. Lighting Exterior lighting will be adequate to ensure that surveillance cameras and footage are clear and compliant per regulatory statutes, and that a safe environment exists after dark. Exterior lighting will be provided by retail-standard metal halide and LED equipment, directed so that it does not create an outwardly visible or annoying setting. The use of motion-sensitive activators will also be employed after hours to ensure the security of the facility, patrons, and team, while reducing our energy consumption, visible impact, and potential nuisance in general. As our production environments utilize enclosed, controlled spaces, any operational lighting from cultivation or processing will be completely non-visible from the exterior. Odor Through a combination of high-tech air scrubbing and carbon filtration systems, negative air pressure, and other odor mitigating techniques, we are employing industry-leading best practices to ensure that our odor mitigation design embraces regulatory compliance and nuisance mitigation. Due to spatial constraints, please see Sections 3.3 through 3.6 below for a comprehensive Odor Mitigation Plan. We will ensure that we are mitigating any potential nuisance that might arise from odor, and directly responding to any neighborhood complaints related to odor. Debris & Litter We do not anticipate creating any related debris, other than standard retail operational waste/recycling and potential product related waste which will be fully contained, destroyed or recycled, and disposed of in full compliance with applicable regulations as outlined in our Waste Management Plan as further detailed below. With regard to potential litter or waste outside the facility, our staff will be assigned on a rotating basis to regular sweeping and collection duties in and around the center to ensure a clean, positive aesthetic and positive contribution to the community. Parking & Traffic Concerns Our facility has ample parking available that exceeds the business needs for initial hires, incubatees as well as our anticipated increase in staff and incubatees over time. All staff and Copyright © 2020 by Fresno Equity & Enterprise Development LLC 3 visitors to the facility will have access to off-street parking, as well as dedicated ADA compliant space access. The thoroughfare which serves our location is not expected to see any substantial increase in volume due to our operations, nor should overall traffic flow be impeded or affected by staff and authorized facility visitors entering/exiting the facility parking lot. A number of public transportation options are available nearby, allowing access to patients without vehicles while reducing local traffic impacts due to our presence. Additionally, we intend to encourage an Employee Carpool Program to further reduce our traffic related and environmental impacts. Pedestrians Our facility is located in an industrial area that does not normally have significant foot traffic or pedestrians in the area. As our facility is designed to be inconspicuous and without identifying signage, sounds, smells, or other features, pedestrians and neighbors will not notice or be negatively impacted by FEED’s licensed operations. Additionally, the building improvements proposed to the facility and upgraded security, exterior lighting, and general curb appeal will elevate the safety and enjoyability of walking in the neighborhood. Addressing Complaints FEED employs a protocol for addressing and mitigating complaints from residents and other businesses in the area. This protocol is critical to ensuring consistency in response and in providing the data we need to modify Standard Operating Procedures as needed to alleviate the likelihood of issue recurrence. FEED will implement comprehensive, responsible neighbor and nuisance mitigation strategies to alleviate any community concerns. Although we believe that our Community Liaison will be able to prevent these issues from arising by cultivating healthy and frequent communication with our neighbors, company policies will require that any staff member receiving a complaint report the concern to his or her Manager immediately. We understand other potential impacts may arise from normal business operations which are not currently contemplated. Should that occur, we will work closely with community members, neighborhood leaders, and local businesses to document and resolve any issue. All necessary actions will be taken to resolve a complaint, and all records of complaints will be kept on-site. Should a complaint occur, employees will be required to adhere to the following written policies and procedures: 1. Document the complaint Any employee receiving a complaint will first document the concern on a standard company form. The employee will record as much information from the aggrieved individual as possible, including the source of concern and the length of time it has transpired. The employee will also ask for and record the individual’s contact information for follow-up. Employees will be trained in de-escalation techniques to ensure the aggrieved individual understands we are sympathetic to his or her concerns and seek to address them immediately and transparently. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 4 2. Immediately report the complaint Employees will be trained and required to immediately report any concern or complaint to the Facility Manager and the Community Liaison. The employee will scan and provide the form via email to both Terance Frazier and the Facility Manager with the subject line “FOR IMMEDIATE ATTENTION.” Employees are also encouraged to provide their suggested solutions and potential mitigation strategies as part of the email. Once emailed, the employee is also directed to speak with the Facility Manager in person. 3. Develop and execute an action plan Next, the Facility Manager, Community Liaison, and employee will develop and execute an action plan to resolve the issue. The plan will articulate, and FEED will implement, a short-term solution to alleviate the complainant’s concern as well as a long-term solution to prevent the issue from arising in the future. FEED will incorporate any long-term solutions into our standard operating procedures to prevent the issue from reoccurring and employees will be trained on the new policy within one week of the solution being implemented. 4. Follow-up with the complainant Our Community Liaison will personally follow-up with the complainant to ensure his or her concern was adequately and efficiently resolved. During the conversation, the Community Liaison will articulate what steps were taken to mitigate the concern and the protocols that were developed to prevent the issue from occurring again. Finally, the Community Liaison will inquire if there are any additional concerns the aggrieved individual would like FEED to rectify or if the issue was resolved to his or her satisfaction. 5. Document the incident and resolution Lastly, our Community Liaison or designee will create a complaint report of the entire incident that documents the following: o Concern, complaint, or grievance o Reporting employee’s information o Contact information of the complainant o Action plan and resolution o Future protocols that were implemented to prevent the issue from recurring o Follow-up conversation with the complainant o Trainings that occurred as a result of the new standard operating procedures 3.2. Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community. FEED has created both a management structure and neighborhood engagement plan to ensure our incubation campus is a welcomed and positive addition to our surrounding community. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 5 MANAGEMENT STRUCTURE One of FEED’s first hires will be a Community Liaison & Incubator Manager, who will serve as the community outreach and service coordinator responsible for ensuring our Neighborhood Compatibility Plan is implemented and community relations goals are achieved. FEED will publicly post the name, telephone number, and email address of our Community Liaison & Incubator Manager as the community relations contact to whom notice of problems associated with the business can be provided. We will additionally provide the above information to all businesses and residences located within one thousand (1000) feet of the licensed premises. FEED’s management team including the CEO, Community Liaison & Incubator Manager, and all other business managers will attend meetings with the City Manager or the City Manager’s designee(s), and other interested parties as deemed appropriate by the City Manager or the manager’s designee(s) to discuss costs, benefits, and other community issues arising as a result of the implementation of Fresno’s cannabis regulations and FEED’s business operations. We are committed to serving as an active partner in helping to implement these new regulations in a safe and responsible way that serves our neighborhood and greater community. Our Community Liaison & Incubator Manager will be responsible for coordinating, executing, acquiring technology, and delegating the accompanying matters to achieve our neighborhood compatibility goals. This person will also be responsible for participating in our community watch and responsibility programs in order to cohesively work with our community to ensure safety and compatibility. A portion of each scheduled staff meeting will be dedicated to discussing, expanding, and/or improving on our good neighbor practices, technology, information, and goals. Additionally, FEED will undertake a quarterly review of the Neighborhood Compatibility Plan to assess data, practices, new information, and how to improve our nuisance mitigation activities and positive community impact. NEIGHBORHOOD ENGAGEMENT PLAN FEED is committed to proactively engaging with our community to ensure our neighbors know our team, understand our mission and have a direct and open line of communication with our leadership. We understand that the transition to legal cannabis can cause concern to some community members. As leaders in the cannabis industry we want our neighbors to feel comfortable expressing any concerns and asking questions of our leadership team. It is through our continuous commitment to open dialogue that we are confident FEED will be a welcomed and trusted neighbor. Proactive Neighborhood Outreach Prior to opening our doors, FEED will notify all businesses within a 1,000 foot radius of the facility of our plans to open a cannabis incubation campus. Though we prefer to conduct our outreach the old fashion way through door knocking, we are prepared to undertake this outreach in other ways depending on COVID-19 protocols. As such, FEED will create an online survey to be emailed to neighbors, local businesses and community partners. The survey will cover a host of questions ranging from community safety needs to beautification preferences. FEED is committed to being responsive to the needs, Copyright © 2020 by Fresno Equity & Enterprise Development LLC 6 concerns and preferences of our neighbors. We take this commitment seriously as we strongly believe that through continued engagement and transparency, FEED will play a critical role in creating trust between the residents of Fresno and the nascent and rapidly emerging local cannabis industry. Quarterly Community Meetings FEED will host bi-annual community meetings to provide a forum for community members to raise questions, express concerns or voice accolades directly to FEED’s leadership team. FEED will mail invitations to all members within 1,000 feet of the location and advise of the meeting in community forums at least one week prior to ensure maximum community participation. One month prior to opening our incubation facility, FEED will host our first Community Meeting. FEED’s leadership team will provide an overview of our company ethos and goals, security and safety enhancements, community benefits proposal, and our neighborhood beautification and safety objectives. Our goal is to facilitate a relationship where community members know and engage with our executive team. We encourage neighbors to provide their feedback on our proposals to ensure our objectives are reflective of our neighborhoods needs. We want to facilitate the opportunity to hear from our neighbors and address any concerns from the community proactively. FEED will continue to host bi-annual community meetings, where members of our leadership team will provide updates on FEED and have an open discussion with our neighbors to address any community concerns. These meetings will also be utilized to discuss neighborhood aesthetic improvements and community safety. Open Door Policy with City Officials FEED will maintain an open door policy with all Fresno law enforcement, elected officials, and City staff. We want law enforcement and City officials to feel comfortable and welcomed to visit our facility at their discretion. We believe this is an important step in building trust between this nascent industry and the regulators in charge of ensuring its safety. Business Community Engagement FEED’s leadership team will utilize our relationships with direct partners to keep a pulse on the communities’ needs. Given Terance’s extensive business experience as a current local business owner, FEED will tap into this network for ongoing business community engagement. Our commitment to ensuring cannabis has a seat at the business table is important to fostering trust within our expanding business community. 3.3. Describe odor mitigation practices. ODOR MITIGATION PRACTICES Prior to cannabis ever being on the premises, FEED will further develop our comprehensive odor control plan to implement and maintain our effective odor mitigation practices that utilize best available odor control technology and devices to ensure that odors from cannabis are not detectable off-site. Our goal is to be a good neighbor to our neighbors and local community, and Copyright © 2020 by Fresno Equity & Enterprise Development LLC 7 we are committed to providing a nuisance free operation while maintaining the highest levels of strict odor mitigation. Our team makes a promise to surrounding neighbors to control odor efficiently and quietly, while also making a promise to our employees and visitors to never use ozone generators or other ionizers, which may have adverse health effects in humans and affect the potency, qualities and shelf-life of cannabis products. Our goal is to provide a healthy, inobtrusive environment that will benefit the community in every way possible. FEED will install a sufficient odor absorbing ventilation and exhaust system with odor control that prevents internal odors and pollen from being emitted externally. This system will ensure that odor generated inside the premises that is distinctive to its operation is not detected outside the facility, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use. Any and all air to be exhausted or recycled within the facility will be filtered for micro-particles, organic materials, and odor elements, including residual Cannabinoids, Terpenes, Terpenoids and Thiols via active carbon filtration driven by high-volume in-line fans, at a capacity which will filter the full volume of the facility, fully or substantially eliminating accompanying odors inside the facility, and render them undetectable outside it, ensuring higher safety and quality levels of used air, and leaving any exhausted or contained air effectively ‘scrubbed’ of odor and other particles. Our facility is designed in such a manner that dual levels of egress/ingress are required. The primary exterior entry/exit points are segregated from the interior space of the facility by another sealed entry/exit door and each area within the facility is segregated and independent (with the exception of emergency egresses). While this system is primarily a security feature, it prevents substantial air volume from transferring within the facility or escaping through ingress/egress points to interior common areas or the facility exterior. Additionally, ventilation and climate control systems are designed to contain and recirculate filtered and fresh air throughout the facility while not allowing unfiltered air to escape by an air system that creates negative air pressure between the premises’ interior and exterior so that the odors generated inside the premises are not detectable outside the premises. 3.4. Identify potential sources of odor. POTENTIAL SOURCES OF ODOR The unique odor of the Cannabis sativa plant and its derivatives is due to the release of chemical compounds into the air known as volatile organic compounds (VOCs), typically Cannabinoids, Terpenes, Terpenoids and Thiols. The cultivation, processing, and production of cannabis and cannabis products result in odor emissions of these VOCs. FEED anticipates that the intending cultivation, processing, and manufacturing activities will be potential sources of odor. Activities such as the flowering stage of cannabis cultivation, the manual handling during processing, and the extraction, concentration, and manufacturing of derivative cannabis products can especially contribute to odor emissions. However, the disposal of cannabis waste is not expected to Copyright © 2020 by Fresno Equity & Enterprise Development LLC 8 contribute to odor as proper disposal involves rendering the waste unusable by grinding and combining it with other waste products, which will mask or dilute odor producing compounds. 3.5. Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. ODOR CONTROL METHODS FEED’s facility and operations are designed to utilize a combination of odor control devices, techniques, and methods to “scrub” the air in a way that ensures odors from cannabis are not detectable beyond the permitted premises. Our natural odor control methods along with packaging and storage systems and overall facility design ensure the maximum elimination and reduction of all odors as follows: ‘Activated Carbon’ Air Filters Rooms containing cannabis and/or cannabis products will be maintained at a negative pressure with in-line fans situated to pull air out while "make-up" air from the outside will be filtered through an appropriate High Efficiency Particulate Absorption (HEPA) filter, and heated or cooled to maintain a proper environment for both production needs and to maintain a comfortable working environment. High-powered, inline exhaust fans will suction air through porous activated carbon/charcoal filters that molecularly absorb volatile chemicals, including the Cannabinoids, Terpenes, Terpenoids and Thiols that give cannabis its distinctive odor, rendering the scent effectively neutralized. These filters will be used throughout the facility, with the “scrubbed” air being re- circulated into the facility, and if desired exhausted directly via exterior ventilation access points, vertically through/above the roof in an area as far as possible from any nearby structures or points of ingress/egress. Active Carbon filtration is commonly employed by cannabis operators as it has been shown as extremely effective in eliminating Cannabinoid, Terpene, and other associated odor elements while maintaining a natural, safe, effective solution. An amount of air flow will be cycled through the activated carbon filters at enough cubic volume to cycle and “scrub” the entire facility, and will be asserted various times throughout the day, operating on a patterned method to save energy. Freestanding HEPA Filtration Modules HEPA filters will also be employed throughout the facility to help eliminate associated cannabis odors, and to improve the overall air quality, reduce any negative travel associated health impact, and lower the risk of airborne germ, virus, or allergen transference. These will also be used throughout the facility as they are mobile and movable in nature. Polarized-Media Electronic Air Cleaners These Air Cleaners will create a polarized electric field using direct current that will polarize the air particles that pass through it, causing them to adhere to a disposable fiber pad. This technology is non-ionizing and does not generate ozone. These cleaners will be used throughout the dispensary facility as they are mobile and movable in nature. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 9 Essential Oils The ONA Gel product will be strategically dispersed throughout the facility to neutralize odors by evaporating into the air as Terpenes and Terpenoids, without leaving residue behind, and physically reacting with odorant Hydrocarbons to form new scent free compounds. The gel is organic and composed solely of essential oil compounds that occur in nature. ONA Gel is environmentally friendly and has been found by the EPA to be non-toxic in conventional amounts. The MSDS for this substance will be clearly and conspicuously posted and available to employees and patrons. Air-Tight Packaging and Storage Containers To ensure the shelf life, odor control, and overall quality of all cannabis and cannabis products, FEED will utilize sealable air-tight containers for all cannabis material in any form. These containers will be made from non-toxic materials, unaffected by heat or cold, and will be sanitized upon each use. 3.6. Describe all proposed staff odor training and system maintenance. ODOR MITIGATION TRAINING FEED places a high priority on our neighborhood compatibility goals, including odor control system training and maintenance, and will integrate these topics into the core curriculum of our initial and ongoing training. All employees will be expected to understand and operate all odor control methods, devices, and systems to ensure that any team member can respond to any odor control system needs. Odor Mitigation Training Materials Prior to beginning operations, we will expand our Operational Plan and generate a specific Odor Mitigation Guide that will form the basis for all odor mitigation training programs that all employees must undergo as part of their initial training, continuing education, and after each program reassessment, as well as through regular in-service meetings and ongoing policy updates. Hard copies and digital files of these documents will be provided and available to staff at all times. Additionally, we will maintain a record of all training provided to staff as well as an attendance log. Odor Mitigation Training Overview Our management team will develop, implement, and maintain our odor mitigation training program, which will be grounded in our comprehensive Operational Plan as well as our Odor Mitigation Guide, Employee Handbook, and any and all other relevant documents, regulations, and manuals. These training materials will serve as a foundation and guide for all odor mitigation training curriculum. Our three-step training program ensures all staff will be trained on our company’s policies and procedures and roll-specific training relevant to their position and work responsibilities. 1. Initial Training: We have developed a robust two-week orientation program to onboard all new teams and individual employees, including comprehensive training materials and Copyright © 2020 by Fresno Equity & Enterprise Development LLC 10 an experienced Training Team made up of both management and peer employees. Curriculum will include a comprehensive training session on odor mitigation practices including but not limited to potential sources of odor, odor mitigation best practices, odor mitigation device/system use and maintenance, and responding to odor related complaints. 2. Hands-On Training: After initial training, all employees will be provided with hands-on training at the licensed facility, with a particular focus on odor mitigation practices as implemented into operations. New employees will shadow experienced employees for several shifts, until the trainee can demonstrate complete understanding and mastery of the odor mitigation protocols and procedures. 3. Knowledge Integration: Once operations begin, each department manager will be responsible for ongoing integration training and reinforcing training lessons through one- on-one and group conversations, written materials, and ongoing feedback as needed to ensure ongoing understanding and integration of odor mitigation practices for the team, the facility, the products, and the community. 3.7. Describe the waste management plan. WASTE MANAGEMENT PLAN FEED has developed and will implement and maintain strict waste management procedures and protocols in order to ensure a safe, hazard free facility, operations, and environment. The FEED team will ensure that all waste management procedures are conducted according to all applicable federal, state, and local rules and regulations, especially regarding how cannabis and non- cannabis waste generated on the premise is handled and disposed, the methods of securing the waste areas, and a description of waste disposal procedures. We will manage all waste generated by our facilities in an extremely environmentally conscious manner that is appropriate to the specific waste stream at issue. Cannabis Waste Disposal Authorization Only authorized employees under the supervision of their manager will have the authority to destroy cannabis products and to enter destroyed cannabis product information into the Track and Trace and internal inventory management systems. The product weight and reason for destruction are required for documentation and will be recorded in CCTT-Metrc and the inventory management system. All cannabis waste will be weighed and entered into the inventory management system before being removed from our facilities. The scale used to weigh cannabis waste will be certified Legal-for-Trade and NTEP certified by the National Conference on Weights and Measures and will be licensed according to rules set forth by the Bureau of Cannabis Control and any other relevant agency. Employees will immediately report the unauthorized destruction of any cannabis products to our facility Managers. Our Managers will report any verifiable incident to the Regulators and appropriate law enforcement authorities. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 11 Waste Handling and Disposal Procedures FEED will follow a variety of waste management procedures when handling and disposing of cannabis and non-cannabis waste generated on the premise to ensure clean, effective methods that account for the safety of the team and surrounding community. All waste will be stored in the designated Secure Waste Receptacle in the affiliated department (cultivation, manufacturing, or distribution), which will be outfitted with odor-controlled vents directly to the outside of the facility (as detailed above). Procedures will be as follows: Cannabis Waste This waste stream will include any and all cannabis material ranging from dried waste stems to strings from extraction waste to recalled products and more. FEED has allocated a dedicated space for the secure disposal of plant waste for each aspect of operations including cultivation, manufacturing, and distribution in accordance with all state and local rules and regulations. This waste will be stored separately from non-cannabis waste before being hauled to a licensed waste disposal facility by a waste disposal contractor authorized to handle and dispose of cannabis. Cannabis waste will be made unusable and unrecognizable by grinding and incorporating the waste with the following non-consumable solid wastes, such that the resulting mixture is at least fifty percent (50%) non-consumable, non-cannabis waste: ● Paper waste ● Plastic waste ● Cardboard waste ● Food waste ● Wastepaper ● Soil ● Grease or other compostable oil waste ● Fermented organic matter or other compost activators ● Other waste approved for use by local and state regulations. After the cannabis waste has been rendered unusable or made unrecognizable, FEED will complete all required recording in the track and trace system and internal inventory management system and subsequently dispose of the cannabis product waste in the secured cannabis waste receptacle designated for each operational department. Waste containing cannabis will not be placed for collection with regular solid waste or recyclables. Non-Cannabis Waste Standard waste and rubbish will be defined as any non-toxic, non-recyclable, and non-cannabis waste produced at our facilities. All rubbish receptacles and trash bins will be emptied, at a minimum, once after every shift or more often as needed. If a rubbish bin poses a risk of contamination, it will be removed and sanitized immediately. Only non-toxic, non-cannabis waste may be disposed of in traditional rubbish receptacles or trash bins. It is strictly prohibited to dispose of cannabis waste, liquid waste, or toxic or hazardous waste in any traditional rubbish receptacle, trash bin, or recycling bin. Our facility managers will maintain written procedures assigning responsibility for waste disposal practices for standard rubbish waste. Such written Copyright © 2020 by Fresno Equity & Enterprise Development LLC 12 procedures will be followed, and records of cleaning and sanitation will be kept in Cleaning Logs at our facilities. Recycling FEED is committed to preserving the precious natural resources of our great state of California and the Central Valley. Our recycling systems and waste disposal policies for the entire site operation are designed first and foremost to achieve this goal. FEED will contract and work with a green company to handle our recycling needs, such as Fresno Recycling, Recology or an equivalent company. Any recyclable items used by our facility will be recycled, either onsite or via local recycling programs. We believe that recycling is an essential responsibility, both to protect the environment for future generations and to do our part in supporting the City’s recycling programs. FEED will never mix waste containing cannabis with regular solid waste or recyclables. Employees will be trained to sort recyclable waste into the categories listed below. Our goal is to operate zero-waste facilities, and that starts with an integrated recycling system. ● Styrofoam, Packaging Peanuts, and Sharp Objects Prohibited: We will not place styrofoam, packaging peanuts, or sharp objects in the recycling carts. ● Glass Bottles and Jars: We will clean and remove caps from all food and drink bottles and jars prior to placing them in the recycling bin. FEED will never recycle window glass, mirrors, light bulbs, broken glass, ceramics, or pottery. ● Tin and Aluminum: We will thoroughly clean any tin and aluminum cans, utensils, and kitchen cookware before placing them in the recycling bin. We will empty any aerosol cans that will be recycled prior to placing them in the bin. We will crush any can that can be crushed with the lid inside it, to preserve space. ● Plastics: We will remove caps from plastics numbered 1 through 7, rinse clean, and flatten as much as possible prior to placing into the recycling bin. FEED will never place TV trays or motor oil containers alongside its recyclable plastic waste. ● Paper Products: FEED will recycle all newspapers, magazines, catalogs, telephone books, and brown paper bags at our facilities. Additionally, we will recycle all other paper goods, including stationery and notebook papers, advertisement fliers, non-wax coated cardboard, and index and postcards. Wastewater FEED will dispose of wastewater in a manner that complies with all applicable state and local laws and regulations, including codes and ordinances pertaining to the discharge of water and by-products into the city sewer system. Under no circumstances will wastewater or other materials be disposed of in storm drains. Additionally, FEED will implement ‘Best Management Practices’ to minimize the contribution of pollutants to the public storm sewers to the maximum extent practicable. Any wastewater will be processed internally for re-use as much as possible, and if declared unfit will be cleansed as much as possible before being sent to drainage, or to an above-ground Copyright © 2020 by Fresno Equity & Enterprise Development LLC 13 holding tank for disposal by an approved remediation service. It is anticipated that the wastewater quality will fall within the limits of domestic waste. Also note that our highly efficient cultivation systems re-utilize 85-95% of input water. All wastewater will be managed in accordance with all Federal and State requirements. The anticipated 5-day biological oxygen demand will be less than 200 parts per million, or ppm; temperature will be below 1500F; fats, waxes, grease and oil will be below 100 ppm; pH will be between 5.0 and 9.0; arsenic will be below 0.25 ppm; cadmium will be below 0.02 ppm; hexavalent chromium will be below 0.3 ppm; trivalent chromium will be below 1.0 ppm; copper will be below 0.3 ppm; lead will be below 0.1 ppm; nickel will be below 0.3 ppm; selenium will be below 1.0 ppm; silver will be below 0.1 ppm; cyanide will be below 0.025 ppm; and mercury will be below 0.1 ppm. Wastewater containing nutrient or supplement runoff, organic elements, or other agricultural products will be drained from the growth modules and passed through our Reverse Osmosis water filtration unit for a purification process. If after quality assurance and assessment, the reclaimed water is found to be reusable, it will be circulated back into production and/or utilized for facility cleaning and general use. If it is not found to be reusable, the reclaimed water will be processed and filtered, and drained through the facility outlets, in compliance with all applicable environmental statutes. If levels are inadequate for wastewater drainage, they will be disposed of (along with remnants disposed of from the water filtering process) per our above-ground holding tank, and liquid and chemical waste disposal plan. We do not anticipate the substantial disposal of nutrients generated from horticultural activities, as our nutrient system is recirculating. That said, in the event that there is spent hydroponic nutrient solution generated or produced from the growing, harvesting or processing of medical cannabis plants, this shall be managed in accordance with all Federal and State requirements, and never drained down Fresno sewer systems. Hazardous Waste Solvents FEED will not store toxic, flammable, or hazardous materials on the premises other than ordinary cleaning supplies. FEED will likewise never discharge toxic, flammable, or hazardous materials into the City sewer system. In the extremely unlikely event that FEED produces any hazardous waste, it will be disposed of by a professional waste disposal service legally authorized to manage hazardous waste streams. Any elimination of chemical or hazardous waste will be carried out in a manner consistent with all applicable state and local laws and any other requirements. Very small amounts of solvent waste will be produced from processing and extraction methods, such as winterization. These remaining solvents will be purged from the waste biomass, and will extrude from the column into a ventilated bin with a fume extractor arm attached to the top to extract any lingering fumes and/or solvents. The waste biomass will then be tested through sensors in the vessel and a handheld sensor (wand) to ensure and confirm that all solvents have been purged. Once all remaining solvent waste has been purged, the extraction waste will be transferred to the manufacturing secure waste receptacle in a closed, locking bin. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 14 We intend that any wastewater from cultivation, extraction, or other processing and manufacturing which does not meet the preliminary exemption or quality standards for discharge, as well as any hazardous or non-hazardous liquid or chemical waste will be collected and disposed of by a Treatment, Storage and Disposal facility permitted by regulations. Any hazardous waste will be collected and stored per our operations manual including safety data sheets, protective equipment usage, and chemical storage area usage of the facility. Secure Waste Storage Procedures FEED will store all cannabis products intended for destruction in a biohazard waste container separated from all other product storage areas at our facilities. Such waste receptacles will be clearly marked, “WASTE PRODUCT TO BE DESTROYED.” All cannabis waste, including waste composed of or containing cannabis products, will be stored, secured, and managed in accordance with the rules set forth by the applicable state and local laws, regulations, ordinances, and other requirements. FEED will arrange for disposal of such waste on a weekly basis using one or more of the following waste handling options: o A staffed, fully permitted solid waste landfill or transformation facility o A staffed, fully permitted composting facility or staffed composting operation o A staffed, fully permitted in-vessel digestion facility or staffed in-vessel digestion operation o A staffed, fully permitted transfer/processing facility or staffed transfer/processing operation Secure Cannabis Waste Disposal Procedure FEED will securely dispose of cannabis waste using the following procedures: 1. A manager or supervisor will authorize the destruction of a specific batch of cannabis or cannabis products. 2. A manager or supervisor will ensure that destruction of cannabis products is conducted under video surveillance. 3. Cannabis products to be destroyed will be transferred to the designated disposal area in each department as relevant (cultivation, manufacturing, and distribution). 4. The authorized employee will confirm in CCTT-Metrc and our internal inventory management system that the proper batch of cannabis product is about to be destroyed. Once in the disposal area, cannabis products will be safely ground up and mixed with approved non-cannabis waste. Cannabis-infused edible products that cannot be easily ground are removed from any packaging, melted, and mixed with approved waste, then properly stored for disposal pick up, in accordance with all relevant rules and regulations. 5. Waste will be securely and properly stored for disposal pickup, in accordance with state and local regulations. 6. Once the disposal is complete, the process will be documented in CCTT-Metrc and our internal inventory management system. SECTION 4. SAFETY PLAN SAFETY PLAN OVERVIEW FEED has developed a comprehensive Safety Plan for our microbusiness and will implement and maintain strict safety procedures to ensure the continuous safety of staff, visitors, cannabis goods, the licensed facility, and our surrounding community. The safety measures are designed to address emergencies including anticipated fire, medical, and hazardous situations. Our Safety Plan is built on four basic program elements: ● Management Leadership and Employee Involvement Our management team will commit the necessary resources regarding staff, money, and time to ensure that all persons on the premises are protected from any identifiable safety hazards. Management will be responsible for leading the design, implementation, and continuous improvement of the site’s safety procedures that include avenues for employee involvement in safety decision making and problem solving. Activities will include problem solving groups, designated safety observers, peer safety training, analyzing and protecting against safety hazards, and planning activities to heighten safety awareness. Additionally, our entire team will ensure that visitors to the site do not introduce preventable safety hazards and have knowledge of safety procedures applicable to them and how to protect themselves against those hazards, including emergency alarms and procedures. ● Worksite Safety Analysis Our management team has and will continue to engage outside consultants as necessary to conduct baseline surveys that identify and develop preventative controls to address potential facility safety hazards. All operational procedures will be assessed using a Failure Modes and Effects Analysis (FEMA) to develop a comprehensive Facility Plan as well as Product Quality Plans. All hazards found during these surveys will be eliminated whenever possible or controlled. Additionally, management and employees will work together to organize and conduct monthly site inspections to continually address safety hazards. ● Hazard Prevention and Control Management and employees will work together to analyze safety hazards inherent to each department and job function and will find means to eliminate those hazards whenever possible and to protect persons against those hazards. The following hierarchy of criteria will determine safety hazard planning: 1) Hazards will be eliminated when economically feasible, such as replacing a more hazardous chemical with a less hazardous one Copyright © 2020 by Fresno Equity & Enterprise Development LLC 2 2) Barriers will protect a person from the hazard, such as machine guards and personal protective equipment (PPE) 3) Exposure to safety hazards will be controlled through administrative procedures, such as more frequent breaks and job rotation. ● Comprehensive Ongoing Training: We believe that employee involvement in our safety program can only be successful when everyone on the site receives sufficient training to understand what their safety responsibilities and opportunities are and how to fulfill them. Training is a high priority to ensure a safe premise. All employees (and relevant visitors) will be trained in an initial and ongoing capacity to recognize safety hazards and to report any hazard found to the appropriate team member so that it can be corrected as soon as possible. Safety procedures will be integrated into both initial and ongoing training for employees and incubatees and will be provided to visitors on a case- by-case basis as it becomes relevant. General Workplace Safety Our microbusiness will implement the following procedures to ensure general workplace safety: Facility Design The entire facility space is designed to carefully ensure the safety of our team, our products, and our community. The facility will have control systems installed to monitor, record and regulate temperature and humidity, ventilation, lighting and water supply. Safety and sanitation features include: ● Fully conditioned and filtered air to mitigate and control the safety and sanitization of the air in our facility, both in relation to the risks of Covid-19 as well as managing the relative humidity and temperature changes that can cause condensation build-up leading to mold. ● Facility work surfaces will be made of food-grade stainless steel. ● Floor, walls and all working surfaces will be maintained in good repair and will be cleaned daily with EPA-registered tuberculocidal grade disinfectants and used in accordance with instructions printed on their labels. ● Handwashing facilities will be available throughout the facility and conveniently located in processing areas and where good sanitary practices require employees to wash and sanitize their hands. All handwashing stations will all have warm running water and will be equipped with nontoxic sanitizing cleansers and sanitary towel service. Sanitizing wipes will be placed inside each operational room. Bathrooms will be cleaned daily and inspected to ensure they remain in good repair ● All operations in the receiving, inspecting, transporting, segregating, preparing, manufacturing, packaging, and storing of cannabis plant material and finished products will be conducted in accordance with FDA and USDA handling, pharmaceutical USP 795/797, and hospital OSHA sanitation principles. OSHA Standards To ensure a safe and healthful workplace, our microbusiness operations will follow OSHA Standards for General Industry, especially as they pertain to the handling of industrial equipment Copyright © 2020 by Fresno Equity & Enterprise Development LLC 3 and hazardous materials (29 CFR 1910). These standards include explicit health and safety training to ensure that our team has the required skills and knowledge to safely conduct their work, along with ongoing documentation of training and attendance records to ensure all employees receive proper training to prevent injury and ensure continuous, safe operations. Equipment Maintenance, Calibration & Inspection Proper equipment maintenance, calibration, and inspection will contribute to the prevention of potentially significant safety hazards, including but not limited to fires, chemical spills, or malfunction leading to injury. Our microbusiness will employ the following procedures regarding facility equipment and maintenance: ● Multi-Use Tools and Equipment: Written processes and standard operating procedures will be in place to maintain the sanitation, calibration, and cleanliness of multi-use tools and equipment. All tools and equipment that are multi-use will be sanitized and, prior to every use, will be cleaned so as to remove any viruses or bacteria before being sterilized utilizing an autoclave. ● Single-Use Tools and Equipment: All disposable equipment (gloves, dust masks, etc.) will be sorted according to whether the item is recyclable or trash. Trash will be collected in black bins while recyclable items will go into blue bins. These items will be collected in transparent garbage bags to allow visible identification of items in case it becomes necessary to locate a specific item. Additionally, our equipment and personnel safety policy will ensure that: ● Strict dress codes will be in place ensuring proper uniform and personal protective equipment (PPE) is available and utilized for all personnel, including gloves, shoe covers, hair and beard nets, and spark-proof aprons. ● SOP’s, Safety Guidelines, and Operational Manuals will be laminated, posted, and located next to each piece of equipment (as applicable). ● More than one person will be present at any time equipment is in use, and an emergency shut-off switch will always be located within reach of the equipment operator. ● Lab logs and production records will record each machine use by the operator, procedure, weight in and weight out. ● A Maintenance/Cleaning Record will record the maintenance and cleaning of all equipment and the facility as a whole. ● Each machine will be inspected per the manufacturer’s specifications and its parts serviced, replaced and recalibrated as needed. Employee Safety Our microbusiness will implement the following procedures to ensure employee safety: Copyright © 2020 by Fresno Equity & Enterprise Development LLC 4 Management Responsibility for Employee Safety Our management team will be responsible for administering the Employee Training Program (detailed below), including the development and periodic updating of the program. Management will provide all employees with Hazard Communication training before the employee is required to work with hazardous chemicals. Management will also ensure that hazardous chemical containers are labeled appropriately; will keep an up-to-date list of hazardous chemicals present in the facility; and will maintain a file of Safety Data Sheets (SDSs) for all hazardous chemicals used in the facility. Employees must attend the required safety training; review Safety Data Sheets for the hazardous chemicals used in the facility; and must ask for assistance or information if they have questions about instructions for working with hazardous chemicals, questions about safety data sheets, or questions about information presented in training. Contractors are responsible for providing information and training relevant to the Hazard Communication Standard to their employees. Contractors are also responsible for informing Management if they will be using hazardous chemicals in the facility which might result in an exposure to employees or management. Personal Protective Equipment (PPE) FEED employees will don appropriate PPE per Occupational Safety and Health Administration regulation 29 CFR 1910.132 entitled “Personal Protective Equipment.” This equipment will be provided to the employees at no charge. The following is a description of each of the work conditions in the facility that requires the use of protective equipment. Employee Uniforms Strict dress codes will be in place to ensure proper uniform and PPE is available and utilized for all personnel, including gloves, show covers, hair and beard nets, and spark-proof aprons. Uniforms will be specific to the department (cultivation, manufacturing, distribution, etc.) and designed to address specific job functions and safety needs. Respiratory Protection Due to the ongoing Covid-19 pandemic, all employees will be provided with disposable dust and mist respirators/masks, which will be required to be worn at all times while inside the licensed facility. These masks will be disposed daily, or more frequently if contaminated. General Cultivation Activities Personnel conducting day-to-day cultivation activities must wear the approved lightweight uniforms provided, and the uniforms must be clean. Employees must wear footwear with slip- resistant soles. Either disposable nitrile gloves or leather gloves may be worn but are not mandatory unless specified by the supervisor. Laboratory Activities Any activities involving handling plants or hazardous chemicals will be conducted while wearing disposable nitrile gloves, safety glasses or goggles, uniform, and a lab coat. Protective equipment will be cleaned and maintained according to manufacturer’s recommendations. Gloves will be disposed of after each use. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 5 Loading and Unloading Loading and unloading activities must be conducted wearing appropriate hand protection such as leather gloves. Work loading or unloading containers which weigh more than 50 pounds requires the worker to wear hard-toed shoes. Cleaning and Disinfecting Activities These activities may be conducted in any of the production areas of the facility using cleaning agents certified as safe for use with cannabis. Personal protective equipment will be worn according to the cleaning agent manufacturer’s recommendations. These may include aprons or splash-resistant wear over uniforms; disposable or heavier reusable protective gloves; safety glasses, goggles, or face shields; and footwear with slip-resistant soles. Solvent/Chemical Storage & Handling All our disinfectants, fungicides, agricultural chemical products, and laboratory solvents and chemicals will be maintained and utilized in strict compliance with standards imposed by the EPA, California Department of Agriculture, Manufactured Cannabis Safety Branch, Bureau of Cannabis Control, and City of Fresno. Our facility will not employ the use of any pesticides to ensure both worker, product, and community safety. The following is an overview of employee safety procedures regarding handling and storage of solvent and chemicals: ● All employees will be provided with sufficient information and training on the proper application, storage, and disposal of all solvents and chemicals both as related to job function and general facility safety. Please see the Employee Training section below for further detail. ● All disinfectants, fungicides and agricultural chemicals will be labeled, secured in a locked storage cabinet in the Water Room (agriculture department) and the approved safety containers in flammable storage cabinets (manufacturing), with appropriate ventilation controls, and accessed only by authorized employees with verified access credential identification and specific work directives. ● Entry into the locked storage areas/cabinets will be logged by individual employee ID, both upon entry as well as by individual badges worn by each employee onsite. ● EPA-certified eye and hand wash stations will be clearly marked throughout the facility. ● Proper eye, face and body protective wear will be worn and available at all times during the use and/or application of any products. After use, the protective wear will be discarded into appropriately identified biohazard bags and disposed of immediately. ● All bottles, containers or receptacles that have come into contact with, or contained, any product that falls under the state’s guidelines for disinfectants, fungicides, agricultural chemicals, or laboratory solvents/chemicals shall be disposed of according to strict EPA and state guidelines. Hygiene and Sanitary Procedures As the ongoing Covid-19 pandemic has reminded all of us, hygiene and sanitary procedures are an important part of employee and community safety due to the potential of germ transmission through surfaces. Viruses can live on objects and surfaces for up to a week, and all types of Copyright © 2020 by Fresno Equity & Enterprise Development LLC 6 germs can potentially spread when surfaces are not disinfected correctly and through, if equipment is not properly cleaning and sanitized after use, and if personal hygiene measures are not integrated into daily operations. Written processes and standard operation procedures addressing the following will be in place to ensure all team members and visitors leverage the best hygiene and sanitary practices while onsite, and will be posted in bathrooms, breakrooms, common areas, and in multiple languages as needed. Hand Washing Employees will be required to wash hands before starting work, before putting on or changing gloves, after using the toilet or bathroom facilities, after sneezing, coughing, or using a handkerchief or tissue, after touching hair, face, or body, after smoking, eating, drinking, or chewing gum or tobacco, after any clean up activity such as sweeping, mopping, or wiping counters, after handling trash or money, and after any time the hands may become contaminated Constant Sanitation Before starting a shift or after completing a workday, employees will clean and disinfect work surfaces, floors, walls (where needed), and facility common areas (employee break room, bathrooms, hallways, etc.). Operational zone-specific sanitation practices will follow GMP and GLP protocols utilizing USP 757/795 accredited agents (isopropyl alcohol, hydrogen peroxide, acetone) and all other areas will follow best practices for healthcare settings utilizing detergents, soaps, and housekeeping cleaners approved for use around vegetables, fruit, medicinal plants, or food contact surfaces. Personal Protection Equipment (PPE) Employees in all departments will be held to strict standards on how to initially garb and deconstruct PPE as outlined above. Our PPE materials will be sourced from FDA, EPA, USDA, OSHA, and/or USP approved suppliers for hospital, agricultural, manufacturing, and food grade facilities. Medical Grade Gloves Employees’ gloves will be changed after any instance of agrichemical handling, plant inspection/manipulation, and plant handling and packaging. Employees will remove gloves and properly discard prior to leaving the operational area. Gloves will be changed if they tear and disposable gloves will never be washed or reused. Sick Days Any person who, by medical examination or supervisory observation, has or is shown to have, an illness, open lesion, including boils, sores, or infected wounds, or any other abnormal source of microbial contamination for whom there is a reasonable possibility of contact with cannabis will be excluded from any operations which may result in contamination. A generous sick-day policy will incentivize product-handling staff to remain home rather than risk contaminating the facility or product. 4.1. The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 7 PROFESSIONAL ASSESSMENT FEED engaged David Hoover of HYT Corporation, a professional fire prevention and suppression consultant, to help our microbusiness team prepare and assess our comprehensive Safety Plan to ensure strict compliance with international, state, and local codes and standards regarding fire safety. This professional support ensured that our systems, procedures, and protocols regarding fire prevention and suppression are based in both best practices and compliance with applicable rules and regulations. Founded in 1996, HYT Corporation is a California Small Business firm specializing in fire protection engineering, consulting, and design and is a professional fire safety and suppression consultant. HYT Corporation’s service delivery capabilities and experience include, but are not limited to, risk identification and assessment, water supply testing and analysis, fire protection and life safety system evaluation, business continuity evaluation, operations, maintenance, and administrative program review and development. David W. Hoover Mr. Hoover has a B.S. in Fire Protection and Safety Engineering Technology from Oklahoma State University and has over thirty-five years of experience in the areas of fire protection engineering, assessment, applications, and design. He specializes in the application of fire protection principles and regulatory code compliance concerns to special hazard occupancies and processes. Mr. Hoover has consulted with many types of occupancies and industries including refineries, chemical plants, universities, research laboratories, power plants, and manufacturing facilities. At the request of the California State Fire Marshal, Mr. Hoover served on a special subcommittee to develop criteria for system design and installation parameters for the state’s planned adoption of the fire sprinkler requirements for residential occupancies in the 2010 Building and Fire Codes. Mr. Hoover has provided code consulting for permitting and occupancy, fire protection hazards analysis, and design services for new and existing plants, processing facilities, warehouses, manufacturing facilities, and laboratories. His experience includes code compliance assessments, development of fire protection and process safety criteria, fire protection design and consulting for facilities domestic and abroad. He is experienced in fire water supply and distribution systems, automatic sprinkler systems, deluge systems, fire detection and alarm systems, and special hazard suppression systems including foam, halon, bulk dry chemical, and CO2 systems. He has provided consulting services for application of hazardous materials requirements at the federal, state, and local levels. Mr. Hoover recently completed the design of the replacement fire alarm systems for all of the buildings located at the Elmwood Correctional Facility located in Milpitas, California; EBMUD’s high rise administration and building and six EBMUD facilities located at the Adeline Maintenance Center. Mr. Hoover was previously employed as Manager, Fire Protection Services for Crawford & Company, an international engineering and consulting firm. Prior to that engagement, he was a supervising engineer with ABB Impell Corporation. Previous employment includes his services Copyright © 2020 by Fresno Equity & Enterprise Development LLC 8 as a project engineer for Walter Kidde Fire Systems Operations. He functioned as a safety engineer for two Mobil Oil Corporation refineries (Augusta, KS and Torrance, CA). He also has over 7 years’ experience as a paid and volunteer firefighter/EMT. Additionally, former Fresno Fire Captain Reginald Zellous will serve as an advisor to FEED. Reginald Zellous Mr. Zellous has more than thirty years of firefighting experience, having served as a firefighter and EMT/Paramedic in Fresno since the 1980s before becoming a City of Fresno Fire Captain in 1996. Prior to his career in firefighting, Mr. Zellous served as an Aviation Ordinanceman in the United States Navy and as a Firefighter Specialist in Crash Fire and Rescue for the United States Navy Civil Service out of the Naval Air Station in Lemoore, California. Mr. Zellous spent his career controlling emergency response planning, including overseeing research for development of building pre-plans and handling company building fire prevention inspections. He also conducted search and rescue operations, analyzed and responded to medical emergencies, and prepared records of company responses to fires and other emergencies. He brings this wealth of experience and knowledge in the City of Fresno to FEED, providing review of proposed fire and life safety plans as well as playing a role in their implementation and employee training. 4.2. Describe accident and incident reporting procedures. ACCIDENT & INCIDENT REPORTING PROCEDURES Our microbusiness will maintain an Accident & Incident Log to report all notable occurrences at the facility, especially fire, medical, hazardous, or any other type of emergency. An ‘accident’ is defined as an unexpected or unintentional event that typically results in damage or injury, while an ‘incident’ is defined as (but not limited to) an alarm activation, broken access point, evidence of tampering, suspicious activity, or any unauthorized breach of safety or security. All staff will be trained and expected to report and maintain a log of accidents or incidents, to document these notable events, and to keep the entire team and company aware of any and all accidents and incidents, no matter how seemingly small. The Security Manager will notify appropriate law enforcement authorities and the City immediately after the discovery of a reportable incident as defined by state and local laws, regulations, ordinances, and other requirements. Specific examples of reportable incidents may include, but are not limited to: ●Discrepancies identified in inventory. ●Diversion, theft, or loss of cannabis. ●Any criminal action involving an employee, which may include but is not limited to: o Theft, robbery, or burglary. o Sale to minors. o Diversion of cannabis or cannabis products. o Any other crime related to cannabis. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 9 ●Any suspicious act involving the sale, cultivation, distribution, processing, or production of cannabis by any person. ●Unauthorized destruction of cannabis. ●Any loss or unauthorized alteration of records. ●An alarm activation or other event that requires a response by public safety personnel. ●Integrity of the inventory management system compromised. ●An IT security breach, including but not limited to a breach of network servers. ●The failure of any security alarm system due to a loss of electrical power or mechanical malfunction. ●Any other breach of security defined by the rules set forth by the state or City of Fresno. Any employee with knowledge or reasonable suspicion of an incident is instructed to make an immediate report to the Facility Director or the Security Manager. In the aftermath of a reportable event, the discovering team member as well as management will fill out a report detailing the nature of the accident or incident to file in the Accident & Incident Log. This report will include a description of the accident or incident along with all relevant details including date, time, location, parties involved, and resulting damage or injury. After the report is filing in the Accident & Incident Log, the management team will review the report, note any changes to the physical nature of the facility, determine any action that should be taken in response to the event, and address any changes to operation procedures that should be developed as a result of the event. Finally, the responding management team will document and report on their accident and incident review process. All accidents and incidents will be communicated to appropriate state and local authorities including the fire department, and guidance will be sought on any follow up action, information, or investigation required. If needed and relevant, video surveillance records of the accident/incident will be saved and stored onsite. 4.3. Describe evacuation routes. FACILITY EVACUATION ROUTES To assist all staff, visitors, and contractors, escape route maps will be developed and posted in various work areas throughout the facility. Each map will indicate the routes to an exit. Staff, visitors, and contractors will evacuate the building by following the emergency evacuation route as indicated on the posted maps. In the event the primary fire exit escape route is blocked or otherwise inaccessible, a secondary route of escape will be followed. SAMPLE EVACUATION PLAN A finalized, detailed evacuation plan will be developed with the help of the Fresno Fire Department/Marshall and will be posted conspicuously within all areas of the facility. A sample evacuation plan is included on the next page. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 10 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 11 Procedures for Critical Facility Operations Before Evacuation The shutdown of critical operations will be done only when the procedure can be done safely and without risk. ●The following procedures will be accomplished only when the emergency does not expose the employee to any unnecessary risk. The company does not expect any employee to endanger him or herself by entering into an area that has become involved in any type of emergency. ●When a fire or other type of emergency involves the natural gas or hydrocarbon solvent system, the Manager or designated employee, will shut the gas or fuel supply off at the appropriate emergency shut-off valve if safe to do so (marked on escape route map). ●If there is a water-related emergency such as flooding or sprinkler system malfunction, the Manager, or designated employee, will either shut off the localized water supply valve or main water shut off valve if necessary (marked on escape route map). ●If it is safe to do so, a final sweep of the facilities should be conducted by the last manager on site in order to find any employees left behind. Procedures To Account For Employees After Emergency Evacuation Has Occurred In all departments, the Manager or Team Lead (if the Manager is not available) will bring the designated “go bag” (red duffle bag with white cross on it) with them while evacuating the facility. To evacuate, staff, visitors, and contractors will follow the “EXIT” signs, identified by arrows leading to the outside of the building. Employees, members, and contractors exiting the facility will take the shortest route possible to the designated Rally Point. Evacuatees will be reminded not to be concerned about personal vehicles or belongings left in the facility. The Rally Point is the area in which employees will congregate to allow each Manager to conduct a roll call and determine if all employees have safely evacuated the facility. Managers will report the status of the staff, members, and contractors to the microbusiness management team. At the facility, the primary Rally Point is at the far end of the parking lot away from the facility main entrance. The meeting area will be designated by a “Rally Point” sign. The secondary Rally Point is located across the street at the end of the property across from the parking lot. Situational circumstances will dictate which Rally Point is to be used. Employees will gather furthest from the emergency. Rescue and Medical Duties Rescue will be attempted only by the emergency response service(s) called to the scene of the emergency. Employees shall not be expected to attempt rescue. The senior manager on site at the time of the emergency will inform the person in charge of the emergency response team if any employee(s) remain inside the facility. The approximate location of the individuals will also be communicated. First-aid treatment may be provided by staff trained in first-aid procedures until such time that professional medical attention is available. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 12 4.4. Location of fire extinguishers and other fire suppression equipment. FIRE SAFETY Our facility will be equipped with fire alarm systems that include smoke detectors and manual fire alarm pull stations, as well as fire suppression systems approved by the local Fire Marshall. Fires often start as small events and can grow very quickly. An immediate response is necessary. When a fire emergency is observed or discovered by an employee, that employee will notify the nearest manager and GET HELP. The manager will determine if evacuation is required and will activate the fire alarm if necessary. If the fire is obviously severe, employees will pull the fire alarm immediately. Occupant notification appliances will be provided to alert people of a possible emergency on the property. The fire alarm system will be monitored by an approved monitoring source for the purposes of notifying the fire department. All staff will be trained to evacuate immediately in the event of a fire alarm. Employees trained to use portable fire extinguishers may be expected to fight fires in the initial stages. If the fire is still small, trained staff may use a fire extinguisher to try to suppress it, but must be careful not to position the fire between themself and the exit. If the fire is so large that it cannot be contained or extinguished with one fire extinguisher, staff will be trained to pull the fire alarm, notify people around the area to evacuate, and get out as soon as possible. Fire alarms must be taken seriously. Staff will be trained to close all doors in the area and proceed to the nearest exit that is not affected by the event. Our management team will work quickly to determine the cause of the problem and restore the facility to operating status. Staff, visitors, and contractors will be notified when it is safe to reenter. If facility evacuation is necessary, the manager will first give verbal notification to evacuate the building. If verbal notification is not feasible, the alarm will be pulled. When the evacuation is signaled, employees, members, and contractors will proceed to the nearest facility exit by taking the primary escape route. If the primary escape route is blocked or inaccessible, the secondary escape route will be taken. FIRE DRILLS Prior to commencing operations, our microbusiness will work with professionals to develop a comprehensive Fire Drill and Safety Policy. The following emergency evacuation “R.A.C.E.” will be adhered to: ●RESCUE: Move anyone in danger to an area of safety ●ALARM: Sound alarm and call the fire department ●CONFINE: Close all (accessible) doors ●EXTINGUISH: Fight the fire, but only if completely safe to do so CONDUCTING FIRE DRILLS Our microbusiness will conduct regular fire drills including upon initial opening, at least every 90 days, and for all new employees. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 14 Copyright © 2020 by Fresno Equity & Enterprise Development LLC 15 4.5. Describe procedures and training for all fire and medical emergencies. EMERGENCY PROCEDURES Our microbusiness will implement the following procedures to in the event of an emergency: EMERGENCY CONTACT The Facility Manager will be designated as the Emergency Contact for our business and facility. We will provide the City Manager or his/her designee(s) with the name, telephone number (both landline and mobile number, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. EMERGENCY PLANNING & PREPARATION Desktop drills will be conducted monthly so that all employees experience a drill on each type of emergency once a year. A total site evacuation drill focusing on one emergency type, with all work shut down, and coordinated with the appropriate agency, will be conducted once a year. Each drill, whether tabletop or actual evacuation, will be evaluated by an appointed drill planning committee, constituted each year with two managers or supervisors and two hourly employees who volunteer. This committee’s written report will be posted in the break room, and supervisors will ensure that all employees know the results. When necessary, the emergency procedures will be revised as a result of the evaluation report. Persons needing emergency medical care will be transported by company van or community ambulance to the closest hospital. Staff members fully trained in cardiopulmonary resuscitation (CPR), first aid, and the requirements of OSHA’s Bloodborne Pathogen Standard, will be the designated first responders to any onsite emergency. These persons will be trained by qualified Red Cross instructors. All staff designated as first responders will be offered the Hepatitis B vaccine. The Security & Compliance Manager will be the facility’s designated Safety Officer and will be responsible for ensuring that first aid kits, AED’s, and chemical spill kits are stocked and readily accessible in the marked locations throughout the facility. Appropriate personal protective equipment (PPE) will be provided for the different types of accidents possible at the site. PANIC ALARMS Our facility will be outfitted with several Panic Alarm emergency buttons that will send silent alarms to the company monitoring the facility security systems. A hardwired panic alarm will be installed in the Security Office and several wireless panic alarms will be available to be carried by personnel in the facility as needed. When the monitoring company receives an alarm from a panic button, an immediate call to the local police department is placed with a heightened sense of urgency versus other alarms. This is why it is very important to only activate the Panic Alarms under two circumstances: in emergency situations when one is unable to dial 9-1-1 for law enforcement assistance or when one is physically threatened. These panic buttons will not be used for non-life-threatening situations. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 16 EMPLOYEE TRAINING FEED places a high priority on ensuring the safety of our operations and team and will integrate these topics into the core curriculum of our initial and ongoing training. EMERGENCY TRAINING MATERIALS Prior to beginning operations, we will expand our Safety Plan and generate an Emergency Response Guide (ERG) that will form the basis for a safety training program that all employees must undergo as part of their initial training, continuing education, and after each safety reassessment, as well as through regular in-service meetings and ongoing policy updates. Hard copies and digital files of these documents will be provided and available to staff at all times. Additionally, we will maintain a record of all training provided to staff as well as an attendance log. EMERGENCY TRAINING OVERVIEW Our management team will develop, implement, and maintain our safety training program, which will be grounded in our comprehensive Safety Plan as well as our Emergency Response Guide, Employee Handbook, and any and all other relevant documents, regulations, and manuals. These training materials will serve as a foundation and guide for all safety training curriculum. Our three-step training program ensures all staff will be trained on our company’s policies and procedures and role-specific training relevant to their position and work responsibilities. 1.Initial Training: We have developed a robust orientation program to onboard all new teams and individual employees, including comprehensive training materials and an experienced Training Team made up of both management and peer employees. Curriculum will include multi-day sessions on security policies for the facility, personnel, and products; safety and risk-prevention procedures; emergency response procedures; diversion prevention; and site-specific safety and security measures. Separate sessions will focus on ensuring procedural proficiency, including proper use of security/safety systems and facility access procedures. 2.Hands-On Training: After initial training, all employees will be provided with hands-on training at the licensed facility, with a particular focus on safe facility operations. New employees will shadow experienced employees for several shifts, until the trainee can demonstrate complete understanding and mastery of the safety protocols and procedures. 3.Knowledge Integration: Once operations begin, each department manager will be responsible for ongoing integration training and reinforcing training lessons through one- on-one and group conversations, written materials, and ongoing feedback as needed to ensure ongoing safety of the team, the facility, the products, and the community. HAZMAT TRAINING OVERVIEW Any team member working or cross training in the manufacturing department will be required to undergo additional training regarding hazardous materials. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 17 All employees will be provided with sufficient information and training to enable them to know the requirements of the Hazard Communication Standard; the operations in the facility which may present hazardous chemical exposure; physical and health hazards associated with exposure to hazardous chemicals; the location of the written Hazard Communication Program, workplace hazardous chemical list, and safety data sheets; proper work practices, personal protective equipment, and emergency procedures; and general safety instructions for handling and disposal of hazardous chemicals. Initial hazmat training will occur directly after the two-week orientation and will include three days of classroom instruction and two days of hands-on training. No employee may handle a hazardous chemical before that individual has been properly trained. Employees must attend annual refresher training for hazardous substances. Training records will be kept for each employee documenting the dates and topics of training, the person conducting the training, and proof that the employee understands the training presented. EMERGENCY SITUATION TRAINING FEED has developed the following procedures to address a variety of emergency situations and will ensure all staff are trained on these procedures. Fire Emergency All staff will be trained to respond as follows: ●Remain calm and immediate call 911 ●Know the location of fire alarms and how to activate ●Know the location of fire extinguishers and how to activate ●Attempt to extinguish the fire only after the Fire Department has been notified and only if the fire is small and not spreading to other areas ●Leave the building using marked fire exit routes ●Assemble at the far end of the parking lot or across the street to await further instructions ●Remain outside until the Fire Department announces that it is safe to reenter ●Provide the Fire Department personnel with the necessary information about the facility Medical Emergency All staff will be required to undergo CPR training and will be trained to respond as follows: ●Remain calm and immediately call 911 ●Know the location of first aid kits or AEDs, and use as each situation requires ●For an unconscious person, first inspect the scene to make sure an approach is safe ●Checking the “ABCs” (Airway, Breathing and Circulation) and for severe bleeding ●Do NOT move the victim ●Control access to the scene and prevent contact with body fluids ●If helping personnel exposed to hazardous materials, consult the Material Safety Data Sheet (MSDS) and wear the appropriate personal protective equipment Copyright © 2020 by Fresno Equity & Enterprise Development LLC 18 Hazardous Materials Emergency: Chemical Spill All relevant staff will be required to undergo Hazardous Materials training and will be trained to respond as follows in the event of a chemical spill or hazmat emergency: ●If multiple people begin to become ill for unexplained reasons, do not rush to the area to aid them. The victims may be contaminated and cause others to become ill as well. Remain calm and assess the danger before giving aid. ●Spills and leaks of hazardous materials must be immediately reported to the facility manager, who will make the initial spill assessment and determine the appropriate response. ●After notifying the appropriate authorities, the facility manager will first assess the source of the spill or leak. o Emergency spills or leaks should be reported through the National Response Center: 1-800-424-8802 ●If it is determined that the contamination is coming from inside the facility: o Management will evacuate staff, contractors, visitors, and anyone else inside the facility to fresh air moving away from areas that appear to be affected. o Once outside, management will direct evacuees away from the facility and up wind from the affected area. ●If it is determined that the contamination is coming from outside the facility: o Management will guide staff, contractors, visitors, and anyone else inside the facility to a room away from the hazardous materials that can ideally be sealed. o Management will then notify the appropriate authorities and other staff members outside of the facility of the location where people in the facility are barricaded and stay in communication with authorities until everyone is completely evacuated from the facility. o Evacuees barricaded in the room will use whatever means are available to seal gaps in doors and ventilation ducts. o After sealing the room as much as possible, management and evacuees will seek instructions from radio or internet reports and stay sheltered until help arrives. o When authorities arrive to evacuate everyone in the facility, evacuees will wait for and follow instructions before leaving shelter. ●If it is determined that anyone at the facility has been contaminated: o The contaminated person will immediately be directed to use the nearest eye wash and or emergency showers stationed throughout the lab to rinse themselves of any hazardous materials. o Contaminated persons will then be monitored and quarantined to stay clear of other non-contaminated people and seek help from responding authorities. o Responding authorities will determine if decontamination procedures needs to be conducted before receiving medical assistance. ●If it is determined that it is safe enough to clean up the spill or leak, then employees must don the appropriate personal protective equipment (PPE) and use the applicable Chemical Response Spill Kit. Cleaning of spill or leaks involving particularly hazardous materials will be reserved for a waste cleanup contractor. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 19 ●Spilled material that has been cleaned up may be regulated as waste under federal and state rules. Prior to disposing of the material, management will determine whether waste management rules apply. SECTION 5. SECURITY PLAN Copyright © 2020 by Fresno Equity & Enterprise Development LLC 2 The property comprises two conjoined industrial warehouse buildings. The North building comprises approximately 15,000SF and the South building is approximately 12,000SF for a total of roughly 27,000SF of indoor space. The property sits on a total of approximately 1.2 acres. The property has previously been used as a boat repair shop and a general goods wholesaler but has largely remained vacant since 2012. Currently a security fence runs along the boundaries of the property. The ceilings on the North building are approximately 20 feet high and the ceiling on the South building are approximately 15 feet high, leaving plenty of room to establish cultivation canopy space and lighting fixtures, as well as comfortably fitting all manufacturing equipment. Currently there are approximately 15 parking spaces. We will ensure that there are adequate ADA- designated parking spaces. LOCATION Our proposed property is ideally located in an industrial zone within the Cannabis Innovation Zone, as defined by 9-3304(e) in the Fresno Municipal Code. A commercial kitchen supply store sits directly across South Van Ness Avenue, and there are no residential neighbors. There is a bus stop on NE Van Ness less than half a mile away. The nearest school, day care center or youth center is well over 800 feet away, as mandated by the municipal code. We believe this location is perfect for our facility, which will help rejuvenate the area by generating interest and adding some much-needed aesthetic appeal. CURRENT FLOOR PLAN As you can see below, the building is currently composed of a mostly empty building separated into a few large rooms. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 5 All exterior doors will be of solid core construction and equipped with pry-resistant plates protecting the latch against forcible intrusion. All interior doors accessing limited access areas (those areas containing cannabis, currency, business/labor records and security infrastructure) will be equipped with steel frames and solid core doors. All limited access areas will be equipped with an electronic access control system requiring unique user codes, controllers or biometric signatures to access. All limited access rooms will be equipped with a door that contains an automatic closing and re- locking device to prevent inadvertent exposure upon vacating of an authorized user. All packaged cannabis kept on the premises after business hours will be secured in a secure storage room identified on the included premises diagram. To house currency, a metal safe will be installed weighing no less than 800 pounds, that is fire rated for no less than one hour of resistance, and which is securely anchored to the floor of the structure. Rooms containing security system infrastructure including alarm controllers, video recording/storage servers, access control controllers, communication infrastructure and uninterruptible power supplies will be reinforced as described below: • Walls/lid reinforced against intrusion by steel mesh, concrete block or plywood fastened by security screws and no less than ½ in thickness • Ceiling must be independent of that of the structure • Solid core door and metal frame. Frame will be securely fastened to structural supports of the room • Room will not have penetrable perimeter features including windows, glass panes or unsecured ducting greater than 12 inches in diameter In the event that the premises stores cannabis products that require refrigeration, those items will be secured in a refrigerator or freezer capable of being locked and which has been securely anchored to the structure. Such refrigeration units will be contained within a room of reinforced construction as described above. The lobby door will open into an unmanned reception area from which no further uncontrolled access is possible without a key or electronic access credentials. We will add a mantrap with request-to-exit detectors to the exterior door in the Lobby, remove the door from the lobby to the security office (everyone can go through the hallway). Other renovations specific to the various facets of the microbusiness and incubator space include: Cultivation • We will make an L-shaped hallway in the cultivation area that is 5 ft wide to fit pallets for loading/unloading Copyright © 2020 by Fresno Equity & Enterprise Development LLC 6 • We will place double doors between cultivation receiving and cultivation hallway (also for pallet loading/unloading) • We will make sure there is enough access/egress space for employees in the Vegetation Room to safely evacuate if needed • We will add a CO2 storage area for cultivation near the roll up door in a Cultivation Receiving room Manufacturing • We will install a manufacturing Vault room • We will split manufacturing space into several designated area/rooms, including: o A C1D1 extraction room with CO2 extraction system o An Extraction Lab with three fume hoods (one ADA accessible), two vac ovens, one roto vap, one steam distillation system, a lab bench with hot plates/mechanic stirrers, and a glass cleaning area o A cryo-Freezer/Deep Freeze for fresh frozen biomass o A walk in refrigerator for cold storage o A commercial kitchen area with range/hood, large oven, planetary mixer, fire mixer, and wet cleaning area/dishwasher o An emergency shower and eye/face wash station Incubator • We will carve out a hallway in between the manufacturing licensed premises to the bottom left of the building and the distribution area to the bottom right of the building • We will renovate this area with the following: classroom/workshop space, conference room, offices, workstations, bathrooms, etc. Distribution • Construct a Flex Working Space where trimming, pre-rolls, packaging, labeling, etc. can take place • We will include an interior parking area for delivery van(s) • We will make sure this space has double doors from finished product storage into distribution secure loading or into a hallway with direct access to the loading area 6.2. The application shall include at least one (1) photograph of the front (street side) of the building or street view of the vacant parcel. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 7 6.3. Premises (Site) Diagram for each proposed location. In addition to diagrams submitted for other sections of the CCB Application, applicants are expected to submit a premise/site diagram that focuses on the overall property, building. This diagram should show the overall parcel and adjoining or neighboring buildings that may be affected by the commercial cannabis business. 6.3.1. A Premise (Site) Diagram must be accurate, dimensioned and to- scale (minimum scale of ¼”). The diagram shall provide a detailed description of all available/shared parking spaces, driveway locations, and auxiliary buildings on the parcel. (Blueprints and engineering site plans are not required at this point of the application process. Security features are not required for this section.) See Premises Diagram below: Copyright © 2020 by Fresno Equity & Enterprise Development LLC 8 SECTION 7. COMMUNITY BENEFITS & INVESTMENTS PLAN 7.1. The CCB Application should describe the social responsibility plan. This should include all benefits the CCB has provided or plans to provide to the local community, for example by directly aiding, participating in, or funding the work of local nonprofits, community-based organizations, civic organizations, or social services organizations. Benefits may be in the form of volunteer services, monetary donations, financial support of City-sponsored activities or organizations, in-kind donations to the City or other charitable organizations and/or any other economic incentives to the City. OVERVIEW FEED founder Terance Frazier has made it his mission to benefit the Fresno community for more than 30 years. Terance understands the importance of aiding, participating in, and funding local nonprofits, community-based organizations, civic organizations, and social services organizations, as indicated by his decades-long track record of community betterment in Fresno. Most notable of his community involvement was his creation of the California Central Baseball Academy in the 1990s, a non-profit organization that has taught thousands of local kids how to play baseball, and, by extension, how to navigate life. Terance founded the KNOW1 leadership group, a coalition of African American leaders from throughout Fresno focused on the creation of inclusive local economic opportunity. He has devoted extensive time to meeting various needs within the community, including serving as: ●Board Member, Valley Children Healthcare Foundation ●Board Member, Fresno State Dugout Club ●Fresno State Alumni Association o Member, Fresno State Alumni Engagement Committee o President, Fresno State Baseball Alumni Association ●Board Member, Southwest Community Development Corporation ●Member, Mayor-Council Code Enforcement Task Force ●President, Central Valley Community Sports Foundation ●Ran ‘the GLOVE”, a mentorship program in partnership with Fresno Unified School District ●Adjunct Faculty Member at Fresno City College ●Member, James Irvine Foundation New Leadership Network ●Graduate, Executive Leadership Program at Harvard University Kennedy School In addition to his extensive volunteerism and mentorship experience, Terance has a long history of developing properties throughout the region. For example, Terance donated a portion of the property now being used for the college in southwest Fresno; he has partnered with the City of Copyright © 2020 by Fresno Equity & Enterprise Development LLC 2 Fresno on Neighborhood Stabilization Programs (NSP) 1 and 3 to develop affordable housing in priority areas of the City to empower neighborhood residents to be owners within their own neighborhoods; and he has developed more than 1,000 local units. Terance intends to utilize a portion of the revenue from this endeavor to continue this community reinvestment with a focus on affordable housing for low-income communities. He remains committed to creating pathways to home ownership for Fresno families. As outlined below, FEED will build upon Terance’s extensive track record of community betterment, partnering with community organizations to further the social and economic impact of this endeavor. FEED SOCIAL RESPONSIBILITY PLAN Our community engagement plan will focus on open communication with and active participation in the community and will acknowledge the fact that drug policies have had disproportionate impacts on low-income communities and communities of color. FEED’s community engagement plan is therefore focused on the following: 1. Developing meaningful career opportunities for all social equity participants in our program 2. Providing participants with wraparound services tailored to their individual needs, from assistance with obtaining a GED to soft skills training 3. Implementing a meaningful youth drug education and prevention program focused on empowering Fresno’s youth to set themselves up for success 4. Developing affordable housing for members of the Fresno community to achieve homeownership in their neighborhoods 5. Collaboration with and financial support for non-profit organizations focused on ending the violence plaguing our community through our Friends of FEED program, detailed further below. Investing in Our Community While every community faces a variety of needs, FEED is focused on supporting non-profit organizations and community groups hyper-focused on ending violence in our community. As of October 2020, the City of Fresno had experienced 289 more shootings than by that same time last year. Furthermore, the City has seen an increase in the number of murders to date by 50 in 2020 alone. As such, FEED with provide the following to organizations we partner with to address local violence: ● 1% of gross receipts for the lifetime of the business ● 10 hours of volunteerism per month per program participant As part of our Friends of FEED program, our financial and human resources will be targeted to: 1. Ending the Cycle of Violence 2. Engaging At Risk Youth 3. Funding Youth Drug Prevention Education Copyright © 2020 by Fresno Equity & Enterprise Development LLC 3 Friends of FEED - Employee Community Service Program As part of employment at FEED, all team members participate in our “Friends of FEED” employee community service program. Friends of FEED is our way of giving back to the community in a consistent and meaningful manner. FEED has identified non-profits in which FEED team members will contribute as volunteers in advancing the organizations’ goals. We believe that providing consistent volunteer support to local nonprofits with shared common goals is an important way to keep a pulse on what the community needs and how we can better focus our resources to address those needs. Fresno continues to see the impacts of gang violence and drug addiction. While such difficulties persist in our community, FEED has made supporting nonprofits that uplift underserved populations the focus of our Friends of FEED program. As part of our Friends of FEED program, FEED team members will participate in 10 hours per member per month, resulting in hundreds of hours a year in direct impact. FEED will target financial and human resources to the following efforts seeking to end the cycle of violence in our community: • Getting Guns Off the Streets While gun buybacks alone are not sufficient to deter violence, research has found that they can be effective if included as part of a broader effort. Additionally, gun buyback programs provide an opportunity for community education and engagement and are an important street violence reduction strategy when coupled with other outreach methods. FEED will partner with Advance Peace, an organization dedicated to ending cyclical and retaliatory gun violence in American urban neighborhoods through investment in the development, health, and wellbeing of those at the center of this crisis. Advance Peace interrupts gun violence in American urban neighborhoods by providing transformational opportunities to young men involved in lethal firearm offenses and placing them in a high-touch, personalized fellowship—the Peacemaker Fellowship. By working with and supporting a targeted group of individuals at the core of gun hostilities, Advance Peace bridges the gap between anti-violence programming and a hard-to-reach population at the center of violence in urban areas, thus breaking the cycle of gun hostilities and altering the trajectory of these men’s lives. • Stop the Violence Stop the Violence movements such as the Take A Stand Committee provide organizations, communities, and individuals with the knowledge and tools required to mobilize to prevent violence against our young citizens. Stop the Violence looks to the violence against youth movement to keep the reality of the problem and the vision of the solution before us and believes that all forms of oppression are interconnected. Social justice work in the areas of race, class, gender, age, and sexual orientation are all critical to ending violence against our children, and supporting this effort is critical in addressing violence in the Fresno community. FEED will seek to support these efforts in the Fresno community. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 4 • Support for the Mayor’s Initiatives Fresno Mayor-Elect Dyer brings a decades-long career in law enforcement to his new role, and with it, myriad experience in combating local violence. In a October 2020 press conference, Mayor-Elect Dyer identified three priorities he sees as critical to addressing Fresno’s rampant gang and gun violence. FEED will seek to support these endeavors, as it is only through bringing diverse voices and experiences to the same table that we can develop holistic solutions. Mayor-Elect Dyer’s priorities include: o Reinvigorating the Mayor’s Gang Prevention Initiative. We applaud this effort to bring everyone to the table and would welcome the opportunity to participate in any way that is helpful. o Establishing “Bring Broken Neighborhoods Back to Life” in every neighborhood in the city. FEED will seek to participate in this effort through financial support and ongoing volunteerism, as communication within a community and between diverse stakeholders is critical to breaking down barriers and fostering empowerment and change. o Utilizing Camp Fresno in the Sierra National Forest for youth activities. Given Terance’s track record of engaging youth, we believe this is a fantastic opportunity to engage youth in collaboration. Supporting Our Youth Advocating, supporting and investing in our youth has been the life’s work of Terance Frazier. As such, we will continue to support and expand our network of local partners that share our values and goals of protecting, educating and empowering Fresno’s youth. Based on Terance’s existing network, track record and priorities, FEED will seek to partner with the following youth empowerment organizations: ● A Hopeful Encounter Inc.: A Hopeful Encounter Inc. is a Fresno based non-profit working to partner with communities to galvanize and develop confident and thriving southeast Asian youths to become global change agents through Health, Education, Agriculture, Recreation and Technology. ● Stop the Violence: Stop the Violence is a Fresno founded community non-profit focused on ending street violence through community centric education and grassroots activism ● Mentors Matter: community focused and community run, Fresno based group working to expand mentorship opportunities for at risk youth. ● Edison High Babe Ruth League Inc.: Edison High Babe Ruth League Inc. is a youth focused sports leadership program providing mentorship and skills training through sportsmanship We welcome the City of Fresno’s feedback regarding our Friends of FEED partners and how we can best address income inequality in our community. FEED looks forward to working with the Copyright © 2020 by Fresno Equity & Enterprise Development LLC 5 City of Fresno to ensure our community benefit efforts are tailored to producing the most effective results. Incubator Program Our community betterment is centered around our FEED Incubator Program, which is designed to create significant educational and professional opportunity for social equity qualifying participants. This program will create a pathway among cohorts of young people who are coming out of the criminal justice system, facing unemployment, from low-income households, or veterans, to learn the ins and outs of working in the cannabis industry, ultimately securing them full time employment or the ability to start their own business. We will work in partnership with numerous local non-profits that have demonstrated success in working with at-risk populations. We will focus our recruitment efforts primarily on a specific subset of individuals who would qualify as Social Equity Applicants under the relevant Fresno ordinance and municipal code. These efforts are strategically designed to break the cycle of criminalization and to drive economic development and wealth creation in Fresno’s most impacted communities. Our incubation program begins with an extensive pre-employment training and classes that includes a number of courses designed to arm applicants with the tools to succeed in the cannabis industry. Positive and Engaged Community Presence We understand our role and responsibility within the community not merely to be an absence of negative impact, but also to have a proactive, visible membership and participation in the life and decision-making processes of the community. In order to positively impact our community, we must understand its needs and hear its voice; an effort led by our owner, and longtime Fresno resident, Terance Frazier. We will begin by hosting a series of informational meetings at several locations throughout the surrounding community regarding our microbusiness and incubator, its operations, our security and safety plans, and our plans for providing new jobs and economic growth for the community through our incubator program. We will answer any and all questions and detail our plans for operation and for ensuring community safety, in order to foster transparency and accountability as we bring a new type of business to the area. After initial meetings are held and operations are underway, we will attend or host regular community meetings to reinforce and deepen understanding of the business, with a special focus on community safety and education. Members of our managerial team will personally attend neighborhood meetings to discuss and participate in all community concerns, and to develop strong relationships with the neighborhood leaders, organizations and individual families. Volunteering All incubatees will be required to volunteer at least ten hours a month with local nonprofits, community-based organizations, civic organizations, or social services organizations as part of our Friends of FEED program. Employees will be required to participate in this program as well, further bolstering its impact. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 6 7.1.1 Providing funding for or hosting expungement clinics or outreach services. FEED will host expungement clinics for all social equity applicants who enroll in the incubator program. Funding will be provided through partnerships with cannabis retailer, Embarc. 7.1.2 Incorporating an environmentally sustainable business model including energy efficient buildings and vehicles. We are deeply committed to caring for the environment and the judicious use of scarce resources in our operations. Our environment consists of finite resources that cannot be replenished. As responsible business owners, we recognize that conservation and sustainability are essential, and we are fully committed to collaborating with the City of Fresno and local partners to accomplish our shared goal of minimizing our environmental footprint. Additionally, our team is intimately aware of the environmental challenges our communities face. We will establish a thoughtful microbusiness premises that adopts innovative, environmentally conscious operational practices and procedures to minimize our carbon footprint, environmental impact, and resource needs. To further our shared goals and foster a collaborative and sustainable local community, we have developed a comprehensive Action Plan designed to reach our ambitious goals of minimizing our carbon footprint, environmental impact, and resource needs by utilizing alternative energy options. Taken collectively, these steps form our Action Plan and guide the ethos and direction of our business. Establishing and operating an environmentally friendly and sustainable cannabis business requires a substantial investment in everything from equipment and fixtures, to employee training and incentives. As such, we will take concrete steps to ensure our operations are designed to minimize our carbon footprint, environmental impact, and resource needs for the transportation of cannabis. REDUCE DIRECT ENERGY USE The easiest way to cut down on Greenhouse Gas (“GHG”) emissions is to simply use less energy. We will hire a LEED and sustainability expert to consult with us on sustainable practices focused on reducing our carbon footprint prior to executing our buildout. VEHICLES Using Zero-Emission Electric and Hybrid Vehicles Transporting cannabis has been a traditionally resource-intensive activity, especially when using traditional combustion engine transport. To address emissions, and in furtherance of our environmental goals, we are committed to only purchasing and utilizing zero-emission electric vehicles and/or hybrid electric vehicles for our distribution purposes. Electric vehicles do not release harmful emissions, they operate at a fraction of the cost of fuel-based vehicles and can have a per-charge range of nearly two hundred miles. Hybrid electric vehicles achieve better fuel economy than conventional vehicles while utilizing efficiency-improving technologies such as regenerative brakes. We plan to incorporate a bifurcated system for our distribution services that Copyright © 2020 by Fresno Equity & Enterprise Development LLC 7 include the use of hybrid vehicles for long range deliveries and electric vehicles for short haul (“last mile”) deliveries. Route Optimization With effective route optimization, our drivers reach more stops per run while covering fewer miles when compared to a less-than-optimal route. Route optimization is an important first step on the road towards creating greener distribution delivery operations. All of our vehicles will be equipped with a Global Position System based tracking device, which we will utilize for optimized route planning. Route planning is a strategy we will implement that provides the least CO2 emission and fuel consumption routes for transportation vehicles. We will only take the most efficient routes on our delivery as to minimize our time on the road, thereby minimizing our environmental impact. By utilizing eco-aware logistics and a fleet management system used by off-site staff coupled with on-board systems used by drivers, we will ensure that only the most eco-efficient routes are taken to complete shipments. Lastly, in order to maintain all our vehicles in a sanitary condition, we vow to only use eco- friendly and environmentally conscious cleaning products, made of natural, sustainable ingredients and packaged in recycled containers. Furthermore, we may utilize dispatchers who will ensure ahead of time that all vehicles or other modes of transportation are filled to capacity—while obeying all applicable state and local rules and regulation—in order to reach peak efficiency. BUILDING In the case of cultivation, nearly all energy use is electricity used for lighting and ventilating, and the energy bill can amount to 30% or more of production costs. While the price of electricity provides growers a market signal for efficient production, it does not reflect the climate effect of greenhouse gas released by electricity production. Overall, (Mills 2012) estimates show that carbon dioxide emissions are approximately 4600 kg CO2 / kg indoor cannabis produced, but this is based on average national electric GHG-intensity; the figure for production will of course be variable, dependent on a number of factors yet to be determined. At $30/ton CO2e, a common assumed social cost of GHG emissions; these estimates imply climate damage worth between about 1c and 9c per gram of product for indoor growing. Our goal will be to minimize our demand for electricity and all resources as much as possible, and thus reduce our greenhouse gas emission and carbon ‘footprint’. This is to be achieved through practices, equipment, outreach and techniques. Marginal electricity demand is much more carbon-intensive than average demand, since daily peaks are usually met with natural-gas fired generation rather than less GHG-intensive “base load” hydropower generation. Increased cannabis cultivation indoors can be a noticeable fraction (single-digit percentages) of the City’s total electricity consumption. Our goal will be to eventually become as independent as possible of the need to consume public natural resources and be able to contribute these resources back into the community while effectively lowering our environmental impact. This will include for example, establishing Copyright © 2020 by Fresno Equity & Enterprise Development LLC 8 funding resources for high efficiency propane generators, as well as solar technology, which will exceed our projected demand for production. This will allow us to redistribute power back into the ‘grid’ and if possible, establish a discounted rate of return for municipality based / state use, thus lowering consumption of public resources, and additionally contributing to public funds through potential savings. Other environmental effects of cannabis are worth attention, including water use, fertilizers and subsequent additive runoff, greenhouse gas emissions, emissions from vehicles, ancillary waste, and potential hazards adjunct to metal halide and high-pressure sodium lighting equipment. While these areas are included in our scope of environmental impact reduction, it should be noted that within reason they are typically of similar horticultural and agricultural operations and are believed to be increasingly mitigated as technology and practices evolve, without substantial sacrifice of other goals. Our goal will be to act and operate as environmentally friendly as possible and serve as a model to other facilities of similar purpose. Operationally we will employ the practices and technology described herein, abide by all facets of our Waste Management Plan with regard to disposal of waste, unusable products, and any harmful substances, and continually seek improvement of our programs. This will include not only our operations, but the actions, outreach, and environmental mindedness of all of our employees and associates on the premises, the surrounding areas, and homes. A portion of each scheduled staff meeting will be dedicated to discussing, expanding, and/or improving our environmental practices, technology, information, and goals. The program will undergo a bi-annual review by the managing board, to assess data, practices, new information, and how to improve our operational impact reduction. Included agenda items are at least to be the following: ● High efficiency equipment and methodology ● New technology and/or information ● Effective space utilization and control systems ● Energy audits / data assessments to continually reduce or sustain consumption efficiency rates ● Future goal setting and strategy PREEMPTIVE SOLUTIONS / ENVIRONMENTAL CONTROLS A number of preventative techniques and technologies will be employed for preemptive solutions and environmental controls, in order to maximize our quality assurance, efficiently increase production values, and reduce the risk of problematic situations, thus reducing the potential need for pesticides, fungicides, mold agents, etc. These include a sealed, controlled environment development; segregated from regularly accessible areas of the facility, and into various stages of development for gained efficiency through minimal losses, and overall crop risk mitigation; as well as: Copyright © 2020 by Fresno Equity & Enterprise Development LLC 9 ● Lighting: To be sufficient in scale as per our cultivation plan, placed far enough from canopy levels to avoid overheating and/or burning of plants, while maximizing photon absorption potential with regard to the ‘inverse square law’ ● Temperature: Is to be kept at ideal levels through use of closed system commercial HVAC and split AC, will help improve production values and reduce the chance of pests like spider mites, aphids, and thrips, which thrive in higher temperatures. This will also help with humidity controls. ● Humidity: Will be controlled by use of dehumidifiers as necessary to maintain circa 50- 60% relative humidity. Plant perspiration and wet substrate environments create high levels of humidity, which can in turn lead to molds, fungi, and other undesirable issues. ● Air movement and exhaust: Will be sufficient to effectively cycle the full cubic volume of each production area, with strategic placement for maximum efficiency and productivity. Ensuring proper air flow through stoma/stomata of plants encourages healthy growth, cooler temperatures, and reduces the chances of pest infestation on unhealthy or decaying plant matter. o All/any air to be exhausted or recycled within the facility will be filtered for microparticles, organic materials, and odor elements, including residual Cannabinoids and Terpenes via active carbon filtration driven by high-volume in- line fans, at a capacity which will filter the full volume of the facility, fully or substantially eliminating accompanying odors inside the facility, and rendering them undetectable outside it, ensuring higher safety and quality levels of used air, and leaving any exhausted or contained air effectively ‘scrubbed’ of odor and other particles. o Should there be any; exhausted, filtered air will be directed into the vents which release through the facility ceiling, at least 20-25 feet above the structure and adjacent buildings. ● Carbon dioxide levels: Will be increased up to 1500-1600ppm at various times, using natural gas burner technology. By maximizing plant strength and yield, we can in turn prevent issues caused and/or invited by weak or sick plants and reduce our overall GHG and KW/hr production ratio values. This is to also be eventually offset by implementation of propane generator residual CO2 usage. ‘GREEN’ SANITATION AND CLEANING PRACTICES Our goal is to only employ organic cleaning/sanitation agents, along with supplementary equipment such as water based high-pressure washing of equipment, in such ways that are non- harmful to any product or personnel, at any stage of development. QUALITY ASSURANCE ASSESSMENT AT ALL STAGES OF CULTIVATION To be performed regularly, as preventative maintenance and impact minimization for problem outbreaks, which improves our quality and production values, as well as reduces the necessity of deterrents or solutions. CLEAN-ROOM SEPARATION FROM SENSITIVE AREA ACCESS WITH AIR- SHOWER USAGE A ‘clean-room’ barrier will be utilized, including an air shower system to remove undesirable elements from personnel’ specialty / laboratory attire. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 10 ELECTRICITY CONSUMPTION REDUCTION TECHNIQUES ● Maximized operation during low-consumption/ off peak hours: Indoor cultivation that concentrates lighting periods at night will have a much smaller climate effect than if lighting is provided during high-electric use times, our goal will be to lessen our impact directly by scheduling photoperiods during these times, as much as possible, especially so for flowering phase plants, which will be scheduled for off peak hour consumption as much as possible. ● Efficient design: Our cultivation design maximizes the lumen/photon coverage for each square foot of canopy. This is achieved through plant pruning techniques, concentrated plant spacing, maximally sized light reflectors, and extended canopy options. PROPER DISPOSAL OF LIGHTING RELATED TOXINS (mh / hps BULBS) Heavy metal and toxins from lighting materials used in indoor cannabis cultivation have environmental risks if not properly managed for disposal; each bulb contains approximately 30 mg of mercury and other toxins. Using productivity assumptions in Mills, we estimate that there is the potential for 30 mg of mercury pollution per kg of cannabis product if proper disposal is not practiced. In order to minimize this impact, an account is to be established, serviced, and documented for our lighting related waste at Batteries Plus Light Bulb Recycling Services, or similar service provider. This service is cleared by the EPA and serves/employs the local community. ORGANIC PEST/CROP SOLUTIONS We will employ natural solutions as much as possible to remedy any problems with crop pests/issues. Should preemptive and environmental control measures fail, these remedies will be the first set of action; ● Actionary: Segregation, removal and destruction at failure of quality assurance, or assessment of issue(s) which may potentially spread predator species introduction to remedy potential spreading from removed/affected plants. ● Organic nutrients and supplements: Cultivation in our facility will be conducted only with organic nutrients, substrates, and/or performance supplements, which pose a significantly lower threat to the environment than synthetic fertilizers, while improving the efficacy and quality of patient and customer care. ● Non-use of prohibited pesticides / elements: We will prohibit the use of all in-organic and related or listed substances in accordance with relevant state and local regulations. Only approved organic, well-practiced solutions will be used, and only as a last resort should preemptive or non-solution-based remedies fail. MINIMAL WATER USAGE AND MINIMAL NUTRIENT WASTING / RUNOFF Our cultivation techniques minimize the amount of water used, as well as the amount of nutrient loss/pollution through incurred runoff. Cannabis plants are able to effectively oxygenate and transpire with decreased volumes of water, given more frequently. This method reduces overall consumption and runoff to as little as 5% waste. This is a great improvement compared to traditional methods. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 11 ● Use Reverse Osmosis (RO) Water from De-Humidifiers: Water collected from dehumidifiers will be used as much as possible for our operational water needs. This water is generally above acceptable for cultivation, and nearly sterile. High quality, higher-efficiency RO systems are to be employed to minimize water waste. It will undergo reverse osmosis filtering as well as quality assurance/assessment as a precaution before use. ● Reverse osmosis / filtering before draining: Wastewater containing nutrient / supplement runoff, organic elements, pest/crop solutions etc. will be drained from the growth modules and passed through reverse osmosis filtering. If, after quality assurance/assessment it is found to be reusable, it will be circulated back into production use. If not, it will be drained through the facility outlets, compliant with all applicable environmental statutes. ● Proper disposal of wastes/chemicals: An EPA certified waste removal company has been engaged for the removal of any/all hazardous materials which must be disposed of. EQUIPMENT, USAGE AND TECHNOLOGY High efficiency equipment and environmental practices: High efficiency equipment and best environmental practices will continuously be sought. Currently, we intend to employ equipment, which is as high-efficiency as possible, seeking at least ‘Energy-Star’ or equivalent ratings as much as possible, without sacrificing safety, quality, or compliance. Office related ● High efficiency and/or LED office/interior lighting ● High efficiency computers, refrigerators, televisions/monitors, etc. ● High-efficiency air, temperature and humidity controls ● Use of recycled paper for operations / office functions ● Paperless operation goal; set to be accomplished after 3 years of operation ● Office recycling receptacles / programs Agriculture related ● High efficiency equipment and related practices, with continual evaluation and improvements as technology and best practices evolve: o Ballasts o Bulbs o Reflectors (by way of maximizing usable photon dispersing) o Air circulation and exhaust o Temperature and humidity controls for water usage, pumps / temperature controls o CO2 generators o Master control systems ● Eventual introduction of: o Propane-Gas power generation ▪ Use / delivery of subsequent CO2 emissions for production use, replacing use of separate CO2 generators. o Bio-diesel and/or electric transportation o Solar panels o Implementation of LED lighting systems Copyright © 2020 by Fresno Equity & Enterprise Development LLC 12 7.1.3 Utilizing vacant buildings, brownfields land, or blighted areas of the city for the business. Our proposed property at 2045 S. Van Ness is currently a vacant building. Furthermore, the proposed property will utilize a blighted building, in accordance with the definition proffered by the Fresno Municipal Code, in that it is a vacant building and the yards surrounding the building are not being actively maintained, or actively monitored, or actively secured. Should we receive licensure, our design and construction efforts will fully revitalize the building and surrounding property, adding much-needed aesthetic appeal, as well as additional security. In order to bolster the exterior of the property, we will commission a local Fresno artist to complete a mural on one of the exterior facing walls. In addition, we will hire local Fresno landscapers to plant and maintain trees, shrubbery, and grass around the premises. 7.2. Describe the Commercial Cannabis Business plan to develop a public health outreach and educational program that outlines the risks of youth use of cannabis and that identifies resources available to youth related to drugs and drug addiction. As a responsible entity, FEED shares the City’s perspective that it is critical to educate and dissuade youth from cannabis use and provide resources for those facing drug addiction issues. As a company seeking to profit from cannabis production, it is our obligation to ensure that our youth are protected, supported, and educated about the dangers of addiction. YOUTH DRUG PREVENTION PARTNERSHIPS FEED is committed to ensuring youth education and drug prevention are at the forefront of our public health and community education efforts. Given Terance’s leadership in the Fresno community on youth engagement -- including on the topic of drug education and prevention -- FEED appreciates and respects the work of our fellow philanthropic partners in their collective efforts to educate young people on the dangers of drug addiction. As such, FEED will build on the efforts of our community’s trusted health educators by providing financial resources to expand their existing youth drug prevention and intervention services, increasing access to Fresno’s underserved communities. Through a myriad of conversations with City, County and law enforcement officials, FEED has identified two trusted organizations that serve complementary roles in educating and protecting Fresno’s youth on drug addiction -- Prodigy Healthcare and The California Health Collaborative. Based on our discussions with regulators and community partners alike, it is evident that Fresno benefits from strong leadership on youth education and engagement, ensuring FEED can work with, rather than reinvent the wheel of, existing partners. But the need for increased funding to Fresno’s critical youth drug prevention, education and intervention services is evident, and FEED is grateful for the opportunity to participate in a meaningful way in this endeavor. As previously stated, FEED commits to allocating 1% of gross receipts in perpetuity to community benefits organizations. 100% of these funds will go directly to community Copyright © 2020 by Fresno Equity & Enterprise Development LLC 13 organizations and non-profits addressing the vital needs of the Fresno community. Of the 1% of gross receipts, 50% will be allocated to support youth drug prevention and education partners in the City of Fresno, demonstrating our commitment to providing ongoing funding to address this vital community priority. We are honored to have Prodigy Healthcare's Founder and CEO, JD Dhanda serve as FEED’s Youth Education Advisor, providing invaluable insights to our youth drug prevention efforts. Based on our conversations with JD, FEED has committed to solidifying our educational partnership with Prodigy Healthcare in January 2021. FEED’s monetary investment will be targeted to direct impacts for youth by being allocated to obtaining additional youth drug prevention counselors throughout Fresno Unified School District. FEED will encourage Fresno’s youth to participate in the California Health Collaborative’s PATH Project, a community focused drug education program that is committed to changing the norm in youth circles through peer-to-peer education on the dangers of adolescent cannabis use. • Prodigy Healthcare Inc. – Founded in 2010 by JD Dhanda, Prodigy Healthcare Inc is the largest provider of youth drug prevention services in Fresno County and the only health educator contracted by Fresno Unified School District to provide ongoing prevention and intervention services to our youth. The need for Prodigy’s services is evident in their over 300% growth in the last three years. Prodigy provides comprehensive services to help young adults and their families live a balanced life, including youth drug use prevention, substance abuse recovery, behavioral health services and after school programming. Prodigy’s services are conducted by certified onsite substance abuse counselors, utilizing Hazelden’s nationally recognized youth education, prevention and substance abuse programming. Given the critical role that Prodigy Healthcare plays in educating Fresno’s youth, and its existing contract with Fresno Unified School District which allows them to directly engage in these efforts, FEED has committed to providing support to invest in and amplify their work. • The California Health Collaborative - Founded in 1982 and headquartered in Fresno, the California Health Collaborative provides youth drug prevention and leadership education with an emphasis on engaging underserved communities. The Collaborative has adopted a youth empowerment approach to drug prevention by working to change the norms around cannabis and drug culture through youth leadership training. While the California Health Collaborative cannot work directly with cannabis companies, FEED is committed to increasing youth participation in The PATH Project throughout the Fresno community by supporting Prodigy Healthcare Inc.’s program, which provides drug prevention education and counseling for Fresno Unified’s youth, as well as other resources such as the PATH Project (outlined below). Copyright © 2020 by Fresno Equity & Enterprise Development LLC 14 • The PATH Project – Performing Above the High (PATH) is a community-based cannabis prevention program with the goal of reducing cannabis use among youth and young adults, ages 10-25, in Fresno County. The PATH Project ensures students have an opportunity to take the lead and create meaningful change in their communities on the issue of youth cannabis prevention. PATH’s youth coalition builds and supports young students in becoming leaders in their community. Youth participants are provided with leadership training on public speaking, cannabis prevention, policy/advocacy work, leadership skills, and social norm change. Using these skills, PATH participants will be assisted in planning and organizing their own event, project, or activity on their school campus or in their community. The PATH Project is committed to creating community norm change regarding the use of cannabis by: o Increasing youth, young adult, and community knowledge regarding cannabis use o Preparing parents to be proactive and vigilant about the use of cannabis o Recruiting the participation of law enforcement in cannabis prevention efforts o Providing opportunities for youth to take lead in countering the glamorization of cannabis o Providing youth and young adults with the skills necessary to refuse cannabis use FEED is proud to support the work of Prodigy Healthcare, and, indirectly, The PATH Project. We look forward to continuing the conversation with their respected leadership teams to ensure that with the arrival of legal cannabis, our communities critical youth protection services are well funded and prioritized. YOUTH INTERVENTION SUPPORT FEED is cognizant that prevention education may not be sufficient to deter use for all members of our youth, particularly those who come from unstable homes and/or with troubled childhoods. Given this fact, FEED is committed to supporting a second line of defense in ensuring our youth have the resources and skills necessary to get back on track if prevention fails. Understanding that asking for help can be the hardest step in recovery and, unfortunately, the most expensive, is another barrier most families face when seeking to confront addiction. As such, FEED will provide direct financial contributions of at least $500 per month in financing for youth in need of addiction treatment. We will work with our partners at Prodigy to receive referrals of youth in need of addiction funding treatment on a monthly basis and provide funding grants based on need. FEED has proactively engaged with leaders in local in-patient addiction treatment centers such as Mental Health Systems, Transitions Children's Services and Aegis Treatment Centers and will continue to cultivate these relationships as we set out to support the work of our youth drug prevention partners while educating the broader community on the essence of addiction and the importance of care versus punishment. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 15 FEED Focus – Reframing Addiction Addiction in all forms is life threatening and should be treated as such. FEED acknowledges this fact while recognizing the generational damages the failed War on Drugs has caused throughout communities. With public policy changing and legal cannabis making a home in the regulated business community - we as cannabis leaders must do our part in acknowledging the need to educate our youth without demonizing addiction and those that suffer from it. This balance is a challenge regulators, educators and communities now face. FEED will work closely with our partners to develop and maintain a FEED Focus educational campaign striving to explain the risks associated with youth cannabis consumption, while educating our youth regarding a more holistic understanding of what addiction is, how it can happen to anyone and what we as a community can do to support one and other. FEED will launch our FEED Focus campaign one month prior to opening our doors and will encourage all incubatees to provide ongoing suggestions, advice and insights on how to continuously improve the materials and outreach efforts given many program participants will have had minor cannabis criminal offenses in the past. The most effective efforts are those that are informed by real experience. Our goal is to educate the community on the science supporting youth abstinence with the science behind addiction traits as it relates to all substances. It is this distinction that we believe is critical when educating our youth about prevention, substance abuse and what addiction means and the various ways it can impact one's life. FEED will engage the expertise of our Youth Education Advisor, JD Dhanda, Founder and CEO of Prodigy Healthcare Inc., to help develop and advise on the final tenants of our curriculum and engagement plan. We will utilize educational resources provided by Hazelden - the world renown addiction specialists, and educators to provide youth with the science behind addiction. Our curricula will include but not be limited to: ● Adolescent brain development and the science supporting youth abstinence ● Recognition of abuse and the characteristics of addictive behavior ● Dangers of combining cannabis with other substances, including alcohol ● Age-specific concerns regarding cannabis use, including exacerbation of age-related conditions for the elderly, evidence of developmental effects on minors and concerns for women who may become pregnant ● How to ask for help and the resources available to achieve recovery FEED is committed to being an active leader in Fresno’s transition to legal cannabis, ensuring that our community’s most promising residents - our youth - are prioritized, educated and protected. The following details additional avenues for how FEED will support and engage community stakeholders and those responsible for ensuring the safety of our children. Copyright © 2020 by Fresno Equity & Enterprise Development LLC 16 EDUCATING FAMILIES AND K-12 SCHOOLS Parents and schools face particular challenges educating youth on the facts about adult cannabis use. Adolescents may misinterpret the legalization of cannabis for adult use as the ‘green light’ for their own experimentation. FEED recognizes these challenges and will take an active role in engaging families and educators by offering ongoing educational programs focused on the importance of protecting our children. Our Community Liaison will serve as the primary liaison to families, K-12 schools, and educational organizations. Upon being awarded a cannabis retail permit, our Community Relations Manager will proactively reach out to the Fresno Unified School District and our partners across Fresno’s educational systems to offer our assistance with any questions or educational requests. LAW ENFORCEMENT OUTREACH FEED understands the importance of open dialogue with the Fresno Police Department given the critical regulatory role the agency has in overseeing regulated cannabis as well as protecting our youth. FEED is committed to fostering a positive, transparent relationship with law enforcement through the following endeavors: 1. Pre-opening site tour with law enforcement officers 2. A dedicated contact person for police department questions or concerns 3. Invitation to attend a classroom training to better understand the program 4. We will request that an officer that participates in cannabis regulatory activities present to our employees on the concerns law enforcement faces with cannabis legalization to ensure our employees are cognizant of law enforcements objectives 5. We will maintain an open-door policy with law enforcement officials, addressing anti- diversion tactics and encouraging transparency throughout our entire operation. EDUCATION MATERIALS FEED will work with the California Department of Health and the National Institute on Drug Abuse for Teens to ensure that we have the most up to date information on cannabis use disorders as well as the proper cautions regarding the potential for developmental problems of the adolescent brain as a result of underage use. Printed and online educational materials will be available at FEED’s incubation hub and will be provided to all of our retail partners in an effort to be included in exit bags. FEED prioritizes the importance of accessibility in education and will utilize multiple platforms to ensure cannabis education is readily available to the community at large. ENGAGED PARTNERS TO THE CITY FEED looks forward to being an educational resource to the residents and City of Fresno. FEED’s CEO Terance Frazier is committed to being an engaged business leader with the city of Fresno and welcomes ongoing check ins with appropriate city staff to ensure relevant City Copyright © 2020 by Fresno Equity & Enterprise Development LLC 17 departments and community members have the educational resources necessary to be informed on legal cannabis. 7.3. Describe whether the Business plans to contribute to the Fresno Community Reinvestment Fund, established to support local cannabis equity businesses. FEED sees itself as an extension of the City’s efforts to support local cannabis equity businesses given it is founded as a Social Enterprise Incubator with the primary goals of educating, training and empowering social equity applicants into business ownership. To achieve that goal, Terance is personally investing million into the development of this campus, which will not only teach the skills needed to succeed in the industry but will then also serve as the physical infrastructure (cultivation, manufacturing and distribution facilities) necessary for these social equity graduates to launch their own businesses out of the incubation facility. FEED is providing more than the education and training necessary to support these budding entrepreneurs; it is also providing the ongoing support, technical assistance, and human resources (through staff, mentors/educators and apprentices) to develop and launch social equity businesses. As such, we see our investment in the development of this campus as the ultimate support for the City’s efforts to support local cannabis equity businesses, as the sole purpose of the FEED Incubator is to support equity in the local cannabis industry. FEED supports social equity businesses and eligible applicants under Article 33 Section 9- 3315(b)(6) as described throughout the proposal and more specifically in the area of workforce development, access to affordable commercial real estate, access to investment financing, and access to legal services and business administration technical assistance. Additionally, FEED will employ a full-time case manager to work with our graduates to identify additional local and state level grant funding to ensure the Fresno cannabis industry is equitable to all who participate. In addition, FEED will commit a portion of all sales of social equity brands developed in the FEED Incubator to the Fresno Community Reinvestment Fund.