HomeMy WebLinkAboutC-20-91 Ascent RedactedApplicant (Entity) Information
Application Type
Proposed Location
Commercial Cannabis Business
Permit Application
C-20-91
Submitted On: Dec 04, 2020
Applicant
Robert Calvert
3104287886
pia@cultcollective.com
Applicant (Entity) Name:
Blackstone Management Co., LLC
DBA:
Ascent
Physical Address:
444 N. Blackstone Avenue
City:
Fresno
State:
CA
Zip Code:
937701
Primary Contact Same as Above?
Yes
Primary Contact Name:
Pia Lindstrom
Primary Contact Title:
Consultant
Primary Contact Phone:
3104287886
Primary Contact Email:
pia@cultcollective.com
HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR
ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?:
No
Select one or more of the following categories. For each
category, indicate whether you are applying for Adult-Use (“A”)
or/and Medicinal (“M”) or both
Both
Please make one selection for permit type. If making multiple
applications, please submit a new application for each permit
type and proposed location.
Permit Type
Retail (Storefront)
Business Formation Documentation:
Limited Liability Company
Property Owner Name:
Jack J. Ouzounian and Melene F. Ouziunian
Proposed Location Address:
444 N. Blackstone Avenue
City:
Fresno
State:
CA
Zip Code:
93701
Property Owner Phone:
559 266 5320
Property Owner Email:Assessor's Parcel Number (APN):
459-071-19
Proposed Location Square Footage:
Supporting Information
Application Certification
Owner Information
4300
List all fictitious business names the applicant is operating under including the address where each business is located:
Blackstone Management Co, LLC DBA "Ascent" 444 N. Blackstone Avenue Fresno, CA 93701
Alluvial Management Co. LLC 49-51 W. Alluvial Avenue, Fresno CA 93650 DBA "Ascent"
Ascent Supply Company, LLC DBA "Ascent" 3399 Main Street Mammoth Lakes CA 93546
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
MANAGING DIRECTOR
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:
ROBERT
Owner Title:
CALVERT
Owner Address:
P.O BOX 1119
Owner City:
MAMMOTH LAKES
Owner State:
CA
Owner Zip:
93546
Has Owner Completed Background Check Application?
Yes
Ownership Percentage (%):
50
Owner Name:
PAUL
Owner Title:
RUDDER
Owner Address:
P.O BOX 2126
Owner City:
MAMMOTH LAKES
Owner State:
CA
Owner Zip:
93546
Has Owner Completed Background Check Application?
Yes
Ownership Percentage (%):
50
Business Name: Ascent
Application #: C-20-91
CANNABIS BUSINESS PERMIT APPLICATION REVIEW - RETAIL Points
Possible
All or
None Exceptional Good Acceptable
Applicant
Score
Evaluation Notes (Explain each time points are
deducted)
SECTION 1: BUSINESS PLAN 300 Points Possible for Section 1
Resume:
Resumes Provided for All Owners: Score 5 5 5
Resumes Provided in 2-page Format: Score 2 2 2
Education: (select highest academic level among ownership team, cannabis specific education
separately)
Cannabis specific education/training (accredited)2 2 0 Not described
High School Degree Reported: Score 4 4 -
Bachelor's Degree Reported: Score 6 6 -
Master's Degree or Higher Reported: Score 8 8 8
Experience: (among ownership team, select one at highest level)
Regulated Cannabis Retail Ownership Experience CA 13 13 13
Regulated Cannabis Retail Experience CA (management level or below): Score 10 10 -
Other Retail Business Experience Reported, More than 5 years: or 8 8 -
Other Retail Business Experience Reported, Less than 5 Years: Score 5 5 -
1.1 Sub-Total:30 28
Construction Cost Estimate:
Construction Cost Estimate Provided: Score 8 8 6 4 4 Very basic, needs additional detail
Construction Contingency Factor Included: Score 6 6 0 Not included
All Labor, Trades, Materials, Supplies and Permits and other Cost Factors Identified: Score 6 6 4 2 2 Very basic, needs additional detail
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included
Operation and Maintenance Cost Estimates:
Operation and Maintenance Cost Estimate Provided: Score 8 8 6 4 6 Needs detail
All Labor, Trades, Materials, Supplies, Utilities, and other Cost Factors Identified: Score 6 6 4 2 4 Only some listed
Annual Cost Escalators for Operating Costs Provided: Score 6 6 4 2 2 Some costs shown as escalating, no explanation
Reference Data Provided for Unit Cost Factors: Score 5 5 3 1 0 Not included
1.2 Sub-Total:50 18
Proof of Capitalization Specific to one or more Owners: Score 5 5 5
Proof of Capitalization Specific to Business Name/Address: Score 5 5 0 Not addressed to specific business name
Proof of Capitalization Sufficient to Cover Proforma (3 months) and Construction Costs: Score 15 15 15
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:
Certified Audited Financial Report Provided for one or more Owners: Score 5 5 0 Not provided
Score one of the following for a maximum 20 points:
Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 20
Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 -
Capital consists of non-liquid assets (i.e. real property)8 8 -
Capital consists of a mixture of liquid and non-liquid assets 15 15 -
1.3 Sub-Total:50 40
Three Years of Data Provided: Score 10 10 8 6 8 Needs detail
Total Gross Revenue Estimates Provided:3 3 3
Total Gross Revenue by Product Type (flower and manufactured) Identified:3 3 0 Not provided
Total Personnel Costs Provided:5 5 4 3 4
Has some breakdown but no benefits/insurance
detail
Total Property Rental or Purchase Costs Provided:2 2 2
Total Utilities Costs Provided:2 2 2
Total Cannabis Product Purchase Expense Provided 2 2 2
All Contract Services Identified:2 2 2
Annual Net Revenue Identified:3 3 3
Annual Cost Escalators Identified:4 4 3 2 2 Few costs shown as escalating, no explanations
Annual Estimated Sales Tax Payments to State Provided:2 2 2
Annual Estimated Sale Tax Payments to City of Fresno Provided:5 5 5
Annual Business Tax License and Cannabis Permit Fee Provided:2 2 0 Not included
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 40
Hours of Operation Provided: Score 5 5 5
Hours of Operation Provided for all 7 days of the week: Score 3 3 3 Described under customer check-in section
Hours of Operation Provided for Holidays: Score 2 2 0 Holidays not mentioned
Opening and Closing Procedures Provided: Score 10 10 8 6 10
Scoring Guidance: full points for describing information in detail. Dock points for leaving information out
or not providing enough detail.
1.5 Sub-Total:20 18
1.6.1 Fully describe the day-to-day operations if your applying for a retail permit:
i. Describe customer check-in procedures.20 20 15 10 20
II. Identify location and procedures for receiving deliveries during business hours.10 10 8 6 10
iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations.10 10 10 Flow Grow; 5 POS locations
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. (100 points possible)
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:
Criteria Narrative:
iv. The estimated number of customers to be served per hour/day.20 20 15 10 15
Did not describe source of estimation (i.e. other
owned stores, market analysis, etc.)
v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and
manufactured products.20 20 15 10 15 Did not break down by product type
vi. If proposed, describe delivery service procedures, number of vehicles and product security during
transportation. (if no delivery service application must state this clearly for full points)20 20 15 10 20 Confirms that no delivery service is proposed.
1.6 Sub-Total:100 90
Section 1 Total:300 234
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 8
Inconsistency - states per hour but
for Assistant Manager
Definition of Living Wage Provided: Score 5 5 4 3 0 Does not define living wage
Living Wage Defined as Greater than Minimum Wage: Score 5 5 0 Does not define living wage
2.1 Sub-Total:20 8
Wages and Salary
CCB Entry-Level Hourly Wage Greater than Minimum Wage
5 5 5
States minimum hourly wage i This is more
than the salary proposed for Assistant
Managers.
CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5 5
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 Did not describe HRA
Employee Pays $0 for Employee Medical Premium: Score 3 3 3
Employee Pays $0 for Employee Dental Premium: Score 2 2 2
Employee Pays $0 for Employee Vision Premium: Score 2 2 2
Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision):
Score 2 2 -
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 5
Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 0 Holidays not described
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
Retirement
Offers employee retirement plan 2 2 0 Not mentioned
Offers company match for employee retirement plan 2 2 0 Not mentioned
Criteria Narrative:
Criteria Narrative:
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
2.2 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)
2.2 Sub-Total:50 38
CCB Provides Tuition Reimbursement for Certificates: Score 3 3 3
Describes 2 weeks of tuition reimbursement at
community and local colleges.
CCB Provides Tuition Reimbursement for associate degrees: Score
3 3 0
Benefit unclear. Since "2 weeks" was specified,
credit was given only for certificate programs.
CCB Provides Tuition Reimbursement for bachelor's degrees: Score
3 3 0
Benefit unclear. Since "2 weeks" was specified,
credit was given only for certificate programs.
CCB Provides Tuition Reimbursement for master's degrees: Score
3 3 0
Benefit unclear. Since "2 weeks" was specified,
credit was given only for certificate programs.
CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations
Training: Score 3 3 0
Benefit unclear. Since "2 weeks" was specified,
credit was given only for certificate programs.
CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 3
Refers to training program but does not describe in
detail nor provide training topics.
2.3 Sub-Total:20 6
General Recruitment Plan Provided: Score 10 10 8 6 10
Social Policy Recruitment Plan Provided: Score 10 10 8 6 6
Did not refer to specific hiring target % nor describe
strategies in detail.
Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 Did not refer to community data
Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 0 Did not name or describe hiring partners
Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 0 Did not refer to specific hiring targets
2.4 Sub-Total:50 16
Owners
Number of Owners:2
Number of Owners that live within the City of Fresno:0
Number of Owners that live in the County of Fresno:0
Number of Owners that Own a Business in the City of Fresno:0
51%+ ownership interest percent of the Owners live or own a business in the City: Score 80 80 0
51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40 0
Criteria Narrative:
Criteria Narrative:
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.
2.3 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)
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)
Less than 50 percent equity of the Owners live or own a business in the City (If no owners are local,
score zero)20 20 0
Managers
Number of Managers (salaried, non-owners)2
Number of Managers that live in the City of Fresno:2
Number of Managers that Own a Business in the City of Fresno:
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 20
Responsibilities Described for All Titles/Positions: Score
20 20 15 10 15
Number of positions do not seem sufficient
considering 5 POS location with only 4 employees
for daily 13-hour shifts.
2.6 Sub-Total:20 15
Does CCB have more than five employees:
5 5 0
States company will have 4 employees, does not
seems sufficient gift other detail of Business Plan.
See comment on 2.6 above.
CCB has signed a peace agreement: Score 5 5 5 Will sign at 5th hire
2.7 Sub-Total:10 5
Work Force Plan Provided: Score 10 10 8 6 10
Commitment to Local Hire Provided:10 10 8 6 10 100% local hire committment
Commitment to Offer Apprenticeships Provided:10 10 8 6 6
Committed to offer but did not describe the
program
Commitment paying for continuing education provided
10 10 8 6 6
Unclear benefit - describe 2 week tuition
reimbursement for community and local college.
Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 8
Inconsistency - offer per hour bu
for Assistant Manager
2.8 Sub-Total:50 40
Criteria Narrative:
Criteria Narrative:
Data, non-scored. Write response in Evaluation Notes
column.
2.8.3. Commitment to pay a living wage to its employees
2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible)
2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible)
2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible)
2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an
application for employment with the applicant/permittee.
2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and
Criteria Narrative:
Criteria Narrative:
CCB is willing to serve as Social Equity Business Incubator: Score
100 100 80 60 60
Commits to services but lacks detail. Mentorship
seems to only apply to medicinal cannabis
businesses.
Mentorship and Training: Score yes
Equipment Donation: Score yes
Shelf Space: Score
Legal Assistance: Score yes
Finance Services Assistance: Score yes
Other Technical Assistance: Score
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 60
Section 2 Total:400 208
SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3
CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 0 Info not provided
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 0
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 0 Info not provided
CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 0 Info not provided
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.
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.
3.2 Sub-Total:100 0
CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Info not provided
CCB has prepared a nuisance odor control plan: Score 10 10 8 6 10
Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary:
Score 5 5 0 Info not provided
Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting
the premise boundary: Score 5 5 5
CCB has established an odor reporting system: Score 5 5 0 Info not provided
CCB will install a nuisance odor monitoring system: Score 10 10 0 Info not provided
3.3 Sub-Total:40 15
CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 8 Needs more detail
Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans.
3.4 Sub-Total:10 8
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 0 Needs more specificity
3.6 Sub-Total:20 0
CCB has identified the sources of waste generated by the business operation: Score
10 10 0 Info not provided
CCB has prepared a source-separation plan to segregate different sources of waste generated by
business operations: Score 10 10 10
Criteria Narrative:
3.7 Describe the waste management plan. (50 points possible)
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:
Criteria Narrative:
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 6 Needs more detail
The source-separation plan describes specific measures to control the collection and disposal cannabis
waste: Score 10 10 10
The name of licensed cannabis disposal company provided: Score 10 10 10
3.7 Sub-Total:50 36
Section 3 Total:300 89
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 0 not specific
Safety Plan includes Site Plan of Premise: Score 10 10 10
Safety Plan includes Building Layout Plan: Score 10 10 10
4.1 Sub-Total:50 40
Written Accident/Incident Procedure Provided: Score 20 20 15 10 20
Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 0 not multiple
Total Number of Scenarios Described: Score 0
Active Shooter Incident Described: Score 10 10 0 not addressed
Robbery Incident Described: Score 10 10 0 not addressed
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 10
4.3 Sub-Total:50 50
Location of Fire Suppression System Elements Identified: Score 10 10 0 not shown
Type of Fire Suppression System Elements Identified: Score 20 20 15 10 10 don't have any but mentioned as such
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
4.3 Describe evacuation routes. (50 points possible)
4.2 Describe accident and incident reporting procedures. (50 points possible)
Criteria Narrative:
4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible)
4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible)
Criteria Narrative:
Criteria Narrative:
4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible)
Criteria Narrative:
Criteria Narrative:
Data-write response in Evaluation Notes Column
Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 10 vague
Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 10 vague
Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 0 not mentioned
Gunshot Wound Medical Emergency Described: Score 20 20 15 10 0 not mentioned
Other Medical Emergency Conditions Described: Score 20 20 15 10 0
4.5 Sub-Total:100 20
Section 4 Total:300 160
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 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
5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to
the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and
testing areas.
5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible)
5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices
(Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area.
5.2.5 Number and location of all video surveillance cameras. (50 points possible)
5.3 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:
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:
Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 10
Backup Power Supply Identified: Score 10 10 10
5.3 Sub-Total:50 50
Written Cash-Handling Procedure Provided: Score 30 30 20 15 30
Dual-Custody is Practiced for all cash handling: Score 10 10 10
Video Surveillance Used to Monitor All Cash Handling: Score 20 20 20
Armored Car Service Used for Bank Deposits: Score 10 10 10
All Cash Deposited weekly with Bank: Score 10 10 10
Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 20
5.4 Sub-Total:100 100
CCB will use onsite security guards: Score 10 10 10
All onsite guards will be licensed and bonded: Score 10 10 0 No mention of being bonded
All onsite security guards will be licensed to carry firearms: Score 10 10 0 No mention of firearms
Onsite security guards will be on duty before CCB opens for business: Score 10 10 0 no mention
Onsite security guards will be on duty after CCB closes for business: Score 10 10 0 no mention
5.5 Sub-Total:50 10
Section 5 Total:300 260
Section 1: Business Plan Total Points:300 234
Section 2: Social Policy & Local Enterprise Total Points:400 208
Section 3: Neighborhood Compatibility Total Points:300 89
Section 4: Safety Plan Total Points:300 160
Section 5: Security Plan Total Points:300 260
Total Points Achieved:1600 951
59.44%
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.
Criteria Narrative:
Criteria Narrative:
Criteria Narrative:
5.5.3 Locations at which they will be positioned.
5.5.4 Guards' roles and responsibilities.
SAFETY PLAN
PREPARED FOR BLACKSTONE AVENUE RETAIL
PREPARED BY POOMI ENGINEERS
DISCLAIMER
This report is property of Blackstone Avenue Retail and was prepared exclusively for use by
Blackstone Avenue Retail for the storage & occupancy conditions described in this report. Blackstone
Avenue Retail facility conditions and storage operations addressed herein are based on information
provided by Blackstone Avenue Retail. Any discrepancies between the information presented in this
report and actual are the responsibility of Blackstone Avenue Retail. Compliance with the code
requirements and provisions addressed herein is outside the scope of this report and is the
responsibility of Blackstone Avenue Retail. This Safety Plan shall not be used for the purpose of
SAFETY PLAN Rev: New
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Table of Contents
1 PURPOSE ............................................................................................................................................. 3
2 REFERENCES ..................................................................................................................................... 3
3 PROCEDURES & TRAINING FOR REPORTING ACCIDENT AND INCIDENTS, INCLUDING
MEDICAL AND REPORTING FIRE EMERGENCIES ............................................................................. 3
3.1 FIRE EMERGENCIES PROCEDURES ...................................................................................... 4
3.2 MEDICAL EMERGENCIES PROCEDURES ............................................................................. 4
3.3 TRAINING ................................................................................................................................... 4
4 EVACUATION ROUTES .................................................................................................................... 5
4.1 FLOOR PLAN: IN ATTACHMENTS ......................................................................................... 5
4.2 SITE MAP: IN ATTACHMENTS ............................................................................................... 5
4.3 OCCUPANT LOAD CALCULATIONS ..................................................................................... 5
4.4 EGRESS ANALYSIS ................................................................................................................... 5
5 FIRE EXTINGUISHERS AND FIRE SUPRESSION EQUIPMENT ................................................. 6
5.1 FIRE EXTINGUISHER LOCATIONS: SEE SITE PLAN ATTACHMENT .............................. 6
5.2 SUPRESSION EQUIPMENT FOR B OCCUPANCIES ............................................................. 6
6 HAZARD CONSIDERATIONS FOR FIRE, MEDICAL, AND HAZARDOUS SITUATIONS ....... 6
7 RESPONSIBLE PERSONNEL ............................................................................................................ 7
8 CONFIRMATION ................................................................................................................................ 8
9 ATTACHMENTS ................................................................................................................................. 9
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3.1 FIRE EMERGENCIES PROCEDURES
• Get help through vocal and/or phone to notify Manager on duty
• If fire incipient, safely extinguish with nearby fire extinguisher. Avoid fighting even a small fire
alone, if possible.
• Quickly proceed to the safest exit, shouting to evacuate, visually sweeping for downed personnel,
and go to muster point (alley east of the employee parking area, see site map and floor maps in
Section 8 Attachments) to report to Manager on duty
• Employees shall remain at the muster point to be accounted for and wait for further instruction
from Manager on duty
• Manager on duty call 911 (within 5 minutes, no matter how small the fire), secure facility, ensure
all employees accounted for, and report any missing employee counts to emergency services.
Manager shall provide 911 with the following information:
o Address of the facility: 444 N. Blackstone Avenue
o Cross streets: N. Blackstone Avenue and Belmont Avenue
o Nature of the emergency (e.g. medical, fire, etc.)
o Designate an individual to meet the Fire Department outside and direct them to the location
of emergency.
•
3.2 MEDICAL EMERGENCIES PROCEDURES
• Employees trained in First Aid, Cardiopulmonary Resuscitation (CPR), and automated external
defibrillator (AED) are responsible for responding to and providing initial care of an illness or
injury until emergency services arrives.
• General response
o Request help, and notify Manager on duty
o Administer First Aid/CPR, if trained and needed, until emergency personnel take over
• Manager shall call 911 and provide the following information:
o Address of the facility: 444 N. Blackstone Avenue
o Cross streets: N. Blackstone Avenue and Belmont Avenue
o Nature of the emergency (e.g. medical, fire, etc.)
o Designate an individual to meet the Fire Department outside and direct them to the location
of emergency.
3.3 TRAINING
• Before implementing the Safety Plan, the facility shall designate and train sufficient number of
employees to assist in the safe and orderly emergency evacuation of employees initially when plan
is developed, whenever employee’s responsibilities or designated actions under the plan change,
and whenever the plan is changed.
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4 EVACUATION ROUTES
4.1 FLOOR PLAN: IN ATTACHMENTS
The floor plan is in Figure 1.0 with the following information:
• Exits
• Primary evacuation routes
• Secondary evacuation routes (N/A)
• Accessible egress routes (N/A)
• Areas of refuge (N/A)
• Exterior areas for assisted rescue (N/A)
• Refuge areas associated with smoke barriers and horizontal exits (N/A)
• Manual fire alarm boxes (N/A)
• Portable fire extinguishers
• Occupant-use hose stations (N/A)
• Fire alarm annunciators and controls (N/A)
4.2 SITE MAP: IN ATTACHMENTS
The site plan is in Figure 2.0 with the following information:
• The occupancy assembly point
• The location of fire hydrants
• The normal routes of fire department vehicle access
4.3 OCCUPANT LOAD CALCULATIONS
Table 1.0 – 24 Persons Occupant Load Calculation
Area (SQFT) Occupant Load Factor Occupant Load
Storage 330 300 1
Break Room 253 150 2
Retail 2360 150 16
Lobby 767 150 5
Total 24
4.4 EGRESS ANALYSIS
• Construction Type: V-II
• Occupancy: B
• Fire Area: 4,300 ft2
• Sprinklered: Non Sprinklered
• Required Width of Egress Components Other Than Stairs: 5.1”, Minimum widths shall be used:
o Minimum Width of Corridors: 36” [CFC Table 1020.2]
o Minimum Width of Doors: 32” [CFC §1010.1.1]
• Travel Distances:
o Exit Access Travel Distance: 200’ [CFC Table 1017.2]
• Required Number of Exits: 1 [CFC Table 1006.2.1]
• Maximum Common Path of Egress Travel: 100’ [CFC Table 1006.2.1]
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5 FIRE EXTINGUISHERS AND FIRE SUPRESSION EQUIPMENT
5.1 FIRE EXTINGUISHER LOCATIONS: SEE SITE PLAN ATTACHMENT
5.2 SUPRESSION EQUIPMENT FOR B OCCUPANCIES
• Sprinklers: Not required. Existing building with no change of use or no change of occupancy.
• Portable Fire Extinguishers: Required
o Type: 2A, 10-B or 20-B
o Maximum Travel to an Extinguisher: 50’
• Fire Alarm: Not required per CFC §907.2.2
• Smoke Control: Not required per CFC §909.1 and CBC §403.5.4, 405.7.2, and 412.2.2.1.
• Smoke and Heat Removal: Not required
• Explosion Control: Not required
• Carbon Monoxide Detection: Not required per CFC §915.1.1
• Gas Detection: Not required per CFC §916.1.1
6 HAZARD CONSIDERATIONS FOR FIRE, MEDICAL, AND HAZARDOUS SITUATIONS
A list of major fire hazards associated with the normal use and occupancy of the premises, including
maintenance and housekeeping procedures, have been identified by areas below:
• Limited Access Corridor: The limited access corridor is the main corridor used for staff to
evacuate the building. No major fire, medical, or hazardous situations are expected during normal
operations. Maintenance and housekeeping practices are as follows:
o Storage of combustible materials shall be prohibited in the access corridor. Area shall be
kept free and clear to maintain a minimum of 36” of clear space for egress.
o Storage are separated from ignition sources to prevent fires.
o Storage on shelves maintain a 24” clearance from the ceiling.
o Maintain clear access around fire extinguishers.
• Security and Break Rooms: No major fire, medical, or hazardous situations are expected during
normal operations. The office areas have electronics (e.g. Computers, monitors, laptops, etc.) and
shall be plugged directly into a dedicated electrical receptacle. Extension cords and multi taps shall
be prohibited.
• Storage: The packaging and labeling areas will be used to store cannabis products and currency.
No major fire, medical, or hazardous situations are expected during normal operations.
Maintenance and housekeeping practices are as follows:
o Storage of combustible materials shall be prohibited in the access corridor. Area shall be
kept free and clear to maintain a minimum of 36” of clear space for egress.
o Storage are separated from ignition sources to prevent fires.
o Storage on shelves maintain a 24” clearance from the ceiling.
o Maintain clear access around fire extinguishers.
• Retail: The retail area will be used to display and conduct transaction of cannabis. No major fire,
medical, or hazardous situations are expected during normal operations.
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9 ATTACHMENTS
• Plans
o Floor Plan
o Site Plan
• References
California Secretary of State
Electronic Filing
LLC Registration – Articles of Organization
Entity Name:
Entity (File) Number:
File Date:
Blackstone Managment Co. LLC
202032810210
11/19/2020
Entity Type: Domestic LLC
Jurisdiction: California
Detailed Filing Information
1. Entity Name:
2. Business Addresses:
a. Initial Street Address of
Designated Office in California:
b. Initial Mailing Address:
3. Agent for Service of Process:
4. Management Structure:
Blackstone Managment Co. LLC
3399 Main St, Mammoth Lakes, CA 93546, U
Mammoth Lakes, California 93546
United States
P.O.BOX 2127
MAMMOTH LAKES, California 93546
United States
Pau S Rudder
3399 Ma n St, Mammoth Lakes, CA 93546
Mammoth Lakes Ca forn a 93546
Un ted States
More than One Manager
5. Purpose Statement: The purpose of the limited liability
company is to engage in any lawful act
or activity for which a limited liability
company may be organized under the
California Revised Uniform Limited
Liability Company Act.
Electronic Signature:
The organizer affirms the information contained herein is true and correct.
Organizer: Paul Rudder
Use bizfile.sos.ca.gov for online filings, searches, business records, and resources.
1
BLACKSTONE MANAGMENT CO. LLC
OPERATING AGREEMENT
This Operating Agreement (the “Agreement”) is made and entered into and effective as
of the 1st day of December, 2020, by and between the parties listed as Members on Exhibit A
attached, who agree to the following provisions regarding the operations of BLACKSTONE
MANAGMENT CO. LLC. (the “LLC”), pursuant to the provisions of the California Limited
Liability Company Act (the “Act”) § 17701.01-17701.17. The parties listed on Exhibit A are
referred to each individually as a “Member” and collectively as the “Members.”
ARTICLE 1
NAME, PURPOSE, PLACE OF BUSINESS AND FISCAL YEAR
1.1 LLC Name. The name of the LLC is BLACKSTONE MANAGEMENT CO. LLC
. The business of the LLC shall be conducted under the LLC name or any “doing business as”
name as is registered with the County of Fresno.
1.2 LLC Purpose. The purpose of the LLC shall be any business that may lawfully be
conducted by a limited liability company formed under the Act.
1.3 Principal Place of Business. The street address of principal place of business of
the LLC shall be 3399 Main St., Mammoth Lakes, CA 93546, or such other place as the
Managers may from time to time designate.
1.4 Fiscal Year. The LLC’s fiscal year shall be the calendar year.
1.5 Registered Agent and Office. The name of the Registered Agent for service of
process of the LLC is Paul Rudder, and the address of such registered agent is 3399 Main St,
Suite L-1, Mammoth Lakes, CA 93546. The Managers of the LLC may, from time to time,
designate another agent or office.
ARTICLE 2
NAMES, ADMISSION AND TRANSFER OF MEMBERS
2.1 Members’ Names and Addresses. The name and address of each Member, the
amount and nature of such Member’s Capital Contribution, and the number of such Member’s
Membership Units is set forth on Exhibit A to this Agreement. The Members shall cause Exhibit
A to be amended from time to time to reflect any change in the Members of the LLC (including
any change in the Capital Contribution or Membership Units of any Member) made in
accordance with the terms of this Agreement, or the receipt by the LLC of notice of the change
of address of a Member. Each amended Exhibit A shall supersede all prior Exhibit As and
become part of this Agreement and shall be kept on file at the office of the LLC.
2.2 Admission of New Members. Additional persons may be admitted to the LLC as
Members only with the prior written consent of the existing Members holding 51 percent of the
LLC voting rights, subject to the terms of Article 11, hereof.
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2.3 Transfer. Except as provided in Article 11 below, no interest of a Member in the
LLC may be transferred, in whole or in part, without prior written consent of Members holding
at least fifty one percent (51%) of the LLC voting rights.
ARTICLE 3
MEMBERS
3.1 Place of Meetings. All meetings of the Members of the LLC shall be held at the
principal office of the LLC or at such other place as may be designated in the notice of meeting.
3.2 Annual Meeting. An annual meeting of the Members shall not be required, but if
desired by a majority of the Members, shall be held pursuant to the Act and shall be scheduled at
a time and place at the discretion of the Managers.
3.3 Special Meetings. Special meetings of Members may be called by any Manager
or any Member(s) holding 20% or more of the LLC voting rights, as determined under Section
3.7(a).
3.4 Notice of Meetings.
(a) Written notice stating the place, day and hour of the meeting of Members
and the purpose or purposes for which the meeting is called shall, unless otherwise prescribed by
statute, be delivered not less than ten (10) days before the date of the meeting, either personally,
by mail, by email, or by facsimile, by or at the direction of any Manager, or the other persons
calling the meeting, to each Member entitled to vote at such meeting.
(b) No notice of a meeting need be given to any Member who shall in writing
waive such notice, whether before, at, or after the stated time of any such meeting; and the
attendance of a Member or its signing of the minutes, if any, of any meeting shall be deemed a
waiver of, and equivalent to, formal notice of such meeting.
(c) Any written notice required to be given by statute, the Articles of
Organization, or this Operating Agreement, if mailed, shall be deemed given when deposited in
the United States mail, with postage prepaid, addressed to the Member at its address. However,
if three (3) successive letters mailed to the last-known address of any Member are returned as
undeliverable, no further notices to such Member shall be required, until another address for such
Member is made known to the LLC.
3.5 Quorum. A quorum, for purposes of a meeting of Members, will consist of the
presence (in person or by proxy) of Members holding at least fifty-one percent (51%) of the LLC
voting rights, as determined under Section 3.7, unless otherwise provided by law or the Articles
of Organization. If a quorum is not represented at any meeting of the Members, such meeting
may be adjourned for a period not to exceed sixty (60) days after any one adjournment.
3.6 Voting Requirements. If a quorum is present, the vote of Members holding at
least fifty one percent (51%) of the LLC voting rights shall be the act of the Members, unless the
vote of a greater proportion or number or voting by classes is otherwise required by statute or by
the Articles of Organization or this Operating Agreement.
3.7 Voting Rights. Each Member shall be entitled to vote shall be entitled to a
number of votes equal to the following percentages: Robert Calvert - fifty percent (50%), Paul
Rudder – fifty percent (50%) upon each matter submitted to a vote at a meeting of Members.
Only Members as listed on the then-current Exhibit A shall be entitled to be treated by the LLC
as Members in fact of the LLC, and the LLC shall not be bound to recognize any equitable or
3
other claim to or interest in the LLC on the part of any other person, firm, corporation or other
entity, whether or not the LLC shall have express or other notice thereof, except as expressly
provided by the laws of the State of California.
3.7 Voting Rights. Unless otherwise provided by this Operating Agreement or the
Articles of Organization, each Member entitled to vote shall be entitled to a number of votes
equal to the number of Membership Units then held by such Member, upon each matter
submitted to a vote at a meeting of Members. Only Members as listed on the then-current
Exhibit A shall be entitled to be treated by the LLC as Members in fact of the LLC, and the LLC
shall not be bound to recognize any equitable or other claim to or interest in the LLC on the part
of any other person, firm, corporation or other entity, whether or not the LLC shall have express
or other notice thereof, except as expressly provided by the laws of the State of California.
3.8 Proxies. Unless otherwise provided by resolution, a Member may vote either in
person or by proxy executed in writing by the Member, or by its duly authorized attorney in fact.
3.9 Action by Members Without a Meeting. All day-to-day activities necessary to
run the LLC shall be taken by the Managers without the need to hold any meeting of the
Members.
3.10 Action by Electronic Means. The Members may participate in any meeting of the
Members by means of conference telephone or similar communications equipment by which all
persons participating in the meeting can hear each other at the same time. Notice of any such
meeting to be conducted by conference telephone or similar equipment shall be given to a
Member in person or by telephone at least one (1) day prior to the time fixed for such meeting.
Such participation shall constitute presence in person at such meeting.
3.11 Indemnification. The LLC shall indemnify and hold harmless every Member for
payments made and personal liabilities reasonably incurred in the ordinary and proper conduct of
the LLC’s business, or in the preservation of the LLC’s business or property; provided, however,
that this indemnity shall not extend to conduct not undertaken in good faith to promote the best
interest of the LLC, nor to any reckless or willful misconduct; and, provided further, that this
indemnification shall be limited to the total assets of the LLC (including unpaid Capital
Contributions of the Members).
3.12 Contracts with Members. No Member of the LLC (nor any other corporation,
firm, association or other entity in which one or more of the LLC’s members are members or
have a material financial interest), shall be interested, directly or indirectly, in any contract or
transaction with this company, unless: (a) the material facts regarding that Member’s financial
interest in such contract or transaction or regarding such common directorship, officership or
financial interest are fully disclosed in good faith and noted in the minutes, or are known to all
Members prior to the Member’s consideration of such contract or transaction; (b) such contract
or transaction is authorized in good faith by a majority of the Members by a vote sufficient for
that purpose without counting the votes of the interested directors; (c) before authorizing or
approving the transaction, the Members consider and in good faith decides after reasonable
investigation that the LLC could not obtain a more advantageous arrangement with reasonable
effort under the circumstances; and (d) the LLC for its own benefit enters into the transaction,
which is fair and reasonable to the LLC at the time the transaction is entered into. The members
acknowledge that the LLC will rent retail commercial space from Mammoth Outlets, LLC, a
majority of which is owned by one of the members of this LLC.
5
4.4 Number, Election, Tenure and Qualification.
(a) The number of Managers authorized shall be fixed from time to time by
resolution of the Managers. The Members agree that the Managers shall be comprised of two
individuals who shall be Robert Calvert, and Paul Rudder. Robert Calvert titled to receive
compensation in the form of a managerial salary as determined in a separate compensation
agreement to be agreed upon by 100% of the Members. These Managers shall make decisions in
their roles as Managers collectively based on the following voting rights: Robert Calvert - fifty
percent (50%), Paul Rudder fifty percent (50%), and a majority vote based on these Managerial
decision-making shares shall be required to take any action allowed by the Managers requiring a
majority vote. The number of Managers may be increased or decreased at any time and from
time to time by a unanimous vote of the Managers then in office. Managers shall serve until
their successors have been duly elected and qualified or until their earlier death, resignation or
removal.
4.5 Vacancies. Any vacancy occurring regarding the number of Managers (including
a vacancy resulting from an enlargement of the Managers) may be filled by the vote of the
majority of the remaining Managers, even though such remaining Managers constitute less than a
quorum of the Managers. A Manager elected to fill a vacancy or to fill a position resulting from
an increase in the number of Managers shall hold office until its successor is elected and
qualified or until its earlier death, resignation or removal.
4.6 Resignation. Any Manager of the LLC may resign at any time by giving written
notice to any other Manager or to the Members if there is no other Manager. The resignation of
a Manager shall take effect upon receipt of notice thereof or at such later time as shall be
specified in such notice; and, unless otherwise specified therein, the acceptance of such
resignation shall not be necessary to make it effective. If Robert Calvert were to resign, he will
be required to forgo his managerial salary.
4.7 Removal. At a meeting called for the express purpose of removing a Manager
and by the vote of Members holding at least 51 percent ( 51%) of the LLC voting rights, the
Members may remove a Manager, with cause, meaning intentionally and knowingly engaging in
any illegal action that could, in the opinion of an independent legal expert or regulator to be
stipulated to by the parties, jeopardize the continued existence of the business or its state or local
licensing.
4.8 Annual Meeting. Annual meetings of the Managers shall not be required, but if
desired by the Manager(s), an annual meeting of the Managers shall be held in conjunction with
the annual meeting of the Members, referenced in paragraph 3.2, hereof. Such meetings may be
held within or outside of the State of California and may be held without previous notice if a
Manager entitled to notice attends the meeting or upon execution of waiver of notice, in the
minutes, if any, or otherwise, by Managers so waiving the notice.
4.9 Regular Meetings. The Managers may provide, by resolution, the time and place,
either within or outside of the State of California, for the holding of additional regular meetings
without other notice than such resolution.
4.10 Special Meetings. Special meetings of the Managers may be called at any time by
any Manager upon three (3) day’s written notice, delivered by mail, email or facsimile. Such
meetings may be held within or outside of the State of California and may be held without
6
previous notice if a Manager entitled to notice attends the meeting or upon execution of waiver
of notice, in the minutes, if any, or otherwise, by Managers so waiving the notice, unless a
Manager attends a meeting for the express purpose of objecting to the transaction of any business
because the meeting is not lawfully called or convened.
4.11 Action of Managers by Written Consent. Action required or permitted to be taken
by the Managers or by a committee thereof at a meeting may be taken without a meeting if
consent in writing, setting forth the action so taken, shall be signed by all of the Managers or all
of the committee members entitled to vote with respect to the subject matter thereof.
4.12 Action by Electronic Means. The Managers may participate in any meeting of the
Managers by means of conference telephone or similar communications equipment by which all
persons participating in the meeting can hear each other at the same time. Notice of any such
meeting to be conducted by conference telephone or similar equipment shall be given to a
Manager in person or by telephone at least one (1) day prior to the time fixed for the meeting,
provided that all Managers shall be in attendance. Such participation in the meeting shall
constitute presence in person at the meeting.
4.13 Committees. The Managers may designate from among themselves, by resolution
adopted by a majority of the Managers, an executive committee and one or more other
committees each of which shall have and may exercise such authority in the management of the
LLC as shall be provided in such resolution or in this Operating Agreement, subject to the
limitations prescribed by the Act.
4.14 Non-Liability. Except as otherwise provided by the Act or other applicable law,
no Manager shall be liable to any Member, or the LLC, or to third-parties for honest mistakes in
judgment or for action or inaction, taken in good faith for a purpose that was reasonably believed
to be in the best interests of the LLC, or for losses due to such mistakes, action or inaction, or
due to the negligence, dishonesty or bad faith of any employee, broker or other agent of the LLC
(other than the Manager), provided that such employee, broker or agent was selected, engaged or
retained by the Manager and was supervised with reasonable care.
4.15 Indemnification. In the event of any loss, liability or claim against any Manager
relating to the activities of the LLC, including any payments made or personal liabilities
reasonably incurred by any Manager in the ordinary and proper conduct of the LLC business, or
in the preservation of the LLC’s business or property, the LLC shall indemnify and hold
harmless such Manager for any such loss, liability claim, or payment, including reasonable
attorneys’ fees; provided, however, that this indemnity shall not extend to conduct not
undertaken in good faith to promote the best interest of the LLC, nor to any recklessness or
willful misconduct; and, provided further, that this indemnification shall be limited to the total
assets of the LLC (including any unpaid Capital Contribution(s) of the Members).
ARTICLE 5
CAPITAL CONTRIBUTIONS
5.1 Membership Units and Capital Accounts. The entire amount of Membership
Units of the LLC shall be as set forth in Exhibit A. The Members, respectively, shall own
Membership Units in Membership Unit Percentages as set forth in Exhibit A. An individual
Capital Account shall be maintained for each Member.
7
5.2 Capital Contributions of the Members. Each Member shall contribute to the LLC
capital as set forth opposite its name in Exhibit A hereto. The Members shall submit the matter to
arbitration as required by section 12.7 below if they cannot agree on whether or not the LLC is
profitable, or whether capital contributions are reasonable and necessary.
5.3 Additional Capital Contributions. No Member shall be required to contribute
cash or capital to the LLC in excess of the amounts specified in paragraph 5.1, unless so
authorized by the Members pursuant to the voting procedures and requirements set forth in
Article 3.
5.4 Failure to Contribute.
(a) If a Member does not timely contribute all or any portion of a Capital
Contribution that such Member is required to make as provided in this Agreement, the LLC may
exercise, on thirty (30) days’ written notice to such Member (the “Delinquent Member”), one or
more of the following remedies:
(i) Take such action (including, without limitation, court proceedings)
as the Managers may deem appropriate to obtain payment by the Delinquent Member of the
portion of the Delinquent Member’s Capital Contribution that is in default, together with interest
on that amount at eighteen percent (18%) per annum or the maximum lawful rate, whichever is
less (the “Default Interest Rate”), from the date that the Capital Contribution was due until the
date that it is made, all at the cost and expense of the Delinquent Member;
(ii) Request that the Members other than the Delinquent Member pay
the unpaid amount of the Delinquent Member’s Capital Contribution (the “Unpaid
Contribution”), either as an additional Capital Contribution or as a loan, or a combination
thereof. To the extent the Unpaid Contribution is contributed as an additional Capital
Contribution by any other Member, the Delinquent Member’s Membership Units and
Membership Unit Percentages shall be reduced accordingly and the Membership Units and
Membership Unit Percentages of each Member who makes up the Unpaid Contribution shall be
increased accordingly, based upon the Value as determined under Section 11.9 herein. To the
extent an Unpaid Contribution is loaned to the LLC, such loan or loans shall bear interest per
annum at the rate of 5% plus the prime rate of interest as published in the Wall Street Journal as
of the effective date of such note payable before any Distributions to Members are made.
Payments on such loans shall be paid pari passu to the Members making the loans and shall be
credited first to accrued interest, and the promissory note or other loan documentation evidencing
the loan to the LLC shall contain such other terms and conditions as determined by the Managers
in their reasonable discretion, including, but not limited to, a security interest in the Membership
Interest of the defaulting Member; or
(iii) Exercise any other rights and remedies available at law or in
equity.
(b) In addition, any other Member may “lend” the Delinquent Member the
necessary funds to cover the capital call via the following process and with the approval of
8
Managers: (1) the Member wishing to lend the funds (the “Lending Member”) shall provide
thirty (30) days’ notice to the Delinquent Member of Lending Member’s desire to cover the
Delinquent Member’s portion of the capital call described herein; (2) Upon expiration of the
thirty (30) days with Delinquent Member not curing such delinquency, Lending Member may
deposit immediately available funds with the LLC on behalf of the Delinquent Member. Each
Delinquent Member grants to the LLC, and to each Lending Member with respect to any loans
made by the Lending Member to the Delinquent Member, as security, equally and ratably, for the
payment of all Capital Contributions that Lending Member has agreed to make, and the payment
of all loans and interest accrued on loans made by the Lending Member to Delinquent Member, a
security interest in and a general lien on its Membership Interest in the LLC and the proceeds
thereof, all under the Uniform Commercial Code of the State of California.
(c) Each Member represents and warrants to the LLC and the other Members
that such Member has good and marketable title to its interest in the LLC, and that such interest
is free and clear of all liens, claims, and encumbrances whatsoever. On any default in the
payment of an additional Capital Contribution or in the payment of such a loan or interest
accrued thereon, the LLC or the Lending Member, as applicable, is entitled to all the rights and
remedies of a secured party under the Uniform Commercial Code of the State of California with
respect to the security interest granted in this Section. Each Member shall execute and deliver to
the LLC and the other Members all financing statements and other instruments that the LLC or
the Lending Member, as applicable, may request to effectuate and carry out the preceding
provisions of this Section. At the option of the Managers or a Lending Member, this Agreement,
or a photographic or other copy hereof, may serve as a security agreement, and Managers or a
Lending Member shall be authorized to execute a separate financing statement on behalf of the
Delinquent Member.
ARTICLE 6
LLC ALLOCATIONS
6.1 Profits. Profits for any fiscal year shall be allocated to the Members based upon
their respective Membership Units after giving effect to the special allocations set forth in
Sections 6.4 and 6.5.
6.2 Losses.
(a) After giving effect to the special allocations set forth in Sections 6.4 and
6.5 hereof, Losses for any fiscal year shall be allocated based on relative Membership Units,
subject to the limitations in Section 6.2(b) below.
(b) The Losses allocated pursuant to Section 6.2(a) hereof shall not exceed the
maximum amount of Losses that can be so allocated without causing a Member to have an
adjusted Capital Account deficit at the end of any fiscal year. In the event some but not all of the
Members would have adjusted Capital Account deficits as a consequence of an allocation of
Losses pursuant to Section 6.2(a) hereof, the limitation set forth in this Section 6.2(b) shall be
applied on a Member by Member basis so as to allocate the maximum permissible Losses to each
Member under Section 1.704-1(b)(2)(ii)(d) of the IRC Regulations.
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6.3 Deficit Capital Account. If the Capital Account of a Member becomes impaired,
his share of subsequent LLC profits shall be first credited to his Capital Account until that
account has been restored.
6.4 Special Allocations. The following special allocations shall be made in the
following order:
(a) Minimum Gain Chargeback. Except as otherwise provided in Section
1.704-2(f) of the IRC Regulations, notwithstanding any other provision of this Section 6, if there
is a net decrease in LLC minimum gain during any fiscal year, each Member shall be specially
allocated items of LLC income and gain for such fiscal year (and, if necessary, subsequent fiscal
years) in an amount equal to such Member’s share of the net decrease in LLC Minimum Gain,
determined in accordance with IRC Regulations Section 1.704-2(g). Allocations pursuant to the
previous sentence shall be made in proportion to the respective amounts required to be allocated
to each Member pursuant thereto. The items to be so allocated shall be determined in
accordance with Sections 1.704-2(f)(6) and 1.704-2(j)(2) of the IRC Regulations. This Section
6.4(a) is intended to comply with the minimum gain chargeback requirement in Section 1.704-
2(f) of the IRC Regulations and shall be interpreted consistently therewith.
(b) Qualified Income Offset. In the event any Member unexpectedly receives
any adjustments, allocations, or distributions described in Sections 1.704-1(b)(2)(ii)(d)(4), 1.704-
1(b)(2)(ii)(d)(5), or 1.704-1(b)(2)(ii)(d)(6) of the IRC Regulations, items of LLC income and
gain shall be specially allocated to each such Member in an amount and manner sufficient to
eliminate, to the extent required by the IRC Regulations, the adjusted Capital Account deficit of
such Member as quickly as possible, provided that an allocation pursuant to this Section 6.4(b)
shall be made if and only to the extent that such Member would have an adjusted Capital
Account deficit after all other allocations provided for in this Article 6 have been tentatively
made as if this Section 6.4(b) were not in the Agreement.
(c) Gross Income Allocation. In the event any member has a deficit Capital
Account at the end of any LLC fiscal year that is in excess of the sum of (i) the amount such
Member is obligated to restore; (ii) the amount such Member is deemed to be obligated to restore
pursuant to the penultimate sentences of Section 1.704-2(g)(1) and 1.704-2(i)(5) of the IRC
Regulations; and (iii) the amount such Member would be deemed obligated to restore if Member
loan non-recourse deductions were treated as non-recourse deductions, each such Member shall
be specially allocated items of LLC income and gain in the amount of such excess as quickly as
possible, provided that an allocation pursuant to this Section 6.4(c) shall be made if and only to
the extent that such Member would have a deficit Capital Account in excess of such sum after all
other allocations provided for in this Article 6 have been tentatively made as if Section 6.4(b)
hereof and this Section 6.4(c) were not in the Agreement.
(d) Member Loan Non-Recourse Deductions. Any Member loan non-
recourse deductions for any fiscal year or other period shall be allocated to the member who
bears the risk of loss with respect to the loan to which such Member loan non-recourse
deductions are attributable in accordance with Section 1.704-2(b)(1) of the IRC Regulations.
(e) Section 754 Adjustment. To the extent an adjustment to the adjusted tax
basis of any LLC asset pursuant to IRC Code Section 734(b) or IRC Code Section 743(b) is
required, pursuant to Regulation Section 1.704-1(b)(2)(iv)(m), to be taken into account in
determining Capital Accounts, the amount of such adjustment to the Capital Accounts shall be
treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the
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adjustment decreases such basis) and such gain or loss shall be specially allocated to the
Members in a manner consistent with the manner in which their Capital Accounts are required to
be adjusted pursuant to such Section of the IRC Regulations.
(f) Prior to any distributions being made to any member, documented formation
and operational expenses advanced by a member shall be reimbursed by the LLC. The members
acknowledge that there will be costs, including inventory, employee wages, rent, utilities,
marketing, and other costs, not including infrastructure costs. Paul Rudder will contribute such
“start-up” costs on an as-needed basis up to and including the first two months the business is
open to the public, and will be re-imbursed subsequent to accounts payable and salary payments
to Robert Calvert. In the event such sums are not reimbursable in the first year they are
advanced, they will bear interest at the rate of 8% per annum after the expiration of twelve
months since the inception of the business. Infrastructure costs shall be paid by Paul Rudder and
shall not be reimbursed. Beginning on the second year of the business, Rudder will be
reimbursed 8.5% of the total “start-up costs” advanced by Rudder, from the business each
month until paid in full.
6.5 Curative Allocations. The allocations set forth in Sections 6.4(a), 6.4(b) and
6.4(c) hereof (the “Regulatory Allocations”) are intended to comply with certain requirements of
the IRC Regulations. It is the intent of the Members that, to the extent possible, all Regulatory
Allocations shall be offset either with other Regulatory Allocations or with special allocations of
other items of LLC income, gain, loss, or deduction pursuant to this Section 6.5. Therefore,
notwithstanding any other provision of this Article 6 (other than the Regulatory Allocations), the
LLC shall make such offsetting special allocations of LLC income, gain, loss, or deduction in
whatever manner they determine appropriate so that, after such offsetting allocations are made,
each Member’s Capital Account balance is, to the extent possible, equal to the Capital Account
balance such Member would have had if the Regulatory Allocations were not part of this
Operating Agreement and all LLC items were allocated pursuant to Sections 6.1 and 6.2(a),
hereof.
6.6 Other Allocation Rules.
(a) For purposes of determining the profits, losses, or any other items
allocable to any period, profits, losses, and any such other items shall be determined on a daily,
monthly, or other basis, as determined by the Managers using any method permissible under IRC
Code Section 706 and the Regulations thereunder.
(b) Except as otherwise provided in this Operating Agreement, all items of
LLC income, gain, loss, deduction, and any other allocations not otherwise provided for shall be
divided among the Members in the same proportions as they share profits or losses, as the case
may be, for the year.
(c) The Members are aware of the income tax consequences of the allocations
made by this Article 6 and hereby agree to be bound by the provisions of this Article 6 in
reporting their shares of LLC income and loss for income tax purposes.
6.7 Section 704(c) Allocations.
(a) In accordance with IRC Code Section 704(c) and the Regulations
thereunder, income, gain, loss and deduction with respect to any asset contributed to the capital
of the LLC shall, solely for tax purposes, be allocated among the Members so as to take account
of any variation between the adjusted basis of such property to the LLC for federal income tax
purposes and its initial adjusted asset value.
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(b) In the event the adjusted asset value of any LLC asset is adjusted pursuant
to the terms of this Operating Agreement, subsequent allocations of income, gain, loss and
deduction with respect to such asset shall take account of any variation between the adjusted
basis of such asset for federal income tax purposes and its adjusted asset value in the same
manner as under IRC Code Section 704(c) and the Regulations thereunder.
ARTICLE 7
EXPENSES
All expenses incurred in connection with the formation, organization, and operation of
the LLC shall be borne by the LLC (including, but not limited to, Managers’ fees, salaries,
wages, and fees of lawyers, accountants and other professionals), and are subject to Section
6.4(f).
ARTICLE 8
DISTRIBUTIONS TO AND WITHDRAWALS BY MEMBERS
8.1 Withdrawals by Members. Except as expressly provided herein, no Member may
withdraw any amount from the LLC without the consent of the all Members.
8.2 Tax Distributions. After the end of each fiscal year, the LLC shall promptly (and
in no event later than ninety (90) days after the end of each fiscal year) pay each Member be paid
an amount in cash equal to the effective combined Federal and State income tax rate imposed on
the taxable income allocated to such Member’s Capital Account during the fiscal year then
ended, provided that such distributions are not in violation of the provisions of Federal and State
law.
8.3 Other Distributions. In addition to the foregoing distributions, the LLC may
distribute additional cash and other property to each of the Members (pro rata in accordance with
Membership Units) on a quarterly basis as agreed to by the Managers, provided that such
distributions are not in violation of the provisions of Federal and State law.
ARTICLE 9
FINANCIAL ACCOUNTING AND REPORTS
9.1 Financial Records. The books and records of the LLC shall be kept in accordance
with the terms of this Agreement and otherwise in accordance with the GAAP basis method of
accounting, consistently applied (unless otherwise specifically provided in this Agreement).
9.2 Annual Reports.
(a) The LLC shall transmit to each Member and to each person (or its legal
representative) who was a Member during any part of the fiscal year in question, within one
hundred and fifty (150) days after the end of each fiscal year barring unforeseen circumstances,
but in no event later than September 15th of the year following the end of the current fiscal year:
(i) a balance sheet for the LLC as of the end of the fiscal year and a profit and loss statement for
the year then ended, all in reasonable detail, and (ii) a report setting forth the Capital Account of
each Member as of the end of such fiscal year and a description of the manner of its calculation.
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(b) The LLC shall also transmit within such one hundred and fifty (150) day
period, barring unforeseen circumstances, but in no event later than September 15th of the year
following the end of the current fiscal year, a Schedule K-1 for such fiscal year, to each Member
then a member of the LLC and to each person (or its legal representative) who was a Member
during any part of the fiscal year. Upon request from any Member, the LLC shall deliver a copy
of the LLC’s federal income tax return for such fiscal year.
9.3 Limitation of Liability.
(a) The liability of each Member for losses and debts of the LLC or for
obligations or liabilities thereof of any kind or nature shall in no event exceed in the aggregate
the amount of the Capital Contribution (including subscribed capital, if any) contributed by the
Member to the LLC.
(b) The Managers shall have no liability to the Members when acting in
accordance with the terms of this Operating Agreement, unless otherwise provided by the Act or
other applicable law.
(c) The failure of the LLC to observe the formalities or requirements relating
to the management of its business or affairs does not in itself render the Members liable for the
liabilities of the LLC.
(d) A Member is not liable to the LLC upon the rightful return of the
Member’s Capital Contribution, notwithstanding any creditor’s extension of credit to the LLC
during the period the contribution was held by the LLC.
9.4 Supervision; Inspection of Books. Proper and complete books of account of the
activities of the LLC shall be kept under the supervision of the Managers at the principal place of
business of the LLC. Such books shall, upon reasonable notice to the Managers, be open to
inspection by any Member or its accredited representative, and to copying by such Member or
representative at any reasonable time during normal business hours.
ARTICLE 10
DISSOLUTION AND LIQUIDATION OF THE LLC
10.1 Dissolution. The LLC shall be dissolved upon the occurrence of any of the
following events:
(a) By the vote of Members holding at least fifty-one percent (51%) of the
LLC voting rights; or
(b) If the continued operation of the LLC becomes illegal under state or local
law, or the members are prosecuted under Federal law; or
(c) As is otherwise provided herein.
10.2 Dissolution Procedures. Upon dissolution of the LLC at the expiration of the
LLC term, if any, or for any other cause set forth in Section 10.1:
(a) The affairs of the LLC shall be wound up and terminated under the
direction of the Managers.
(b) Whether any assets of the LLC shall be liquidated through sale or shall be
distributed to the interested Members in kind shall, in each case, be a matter for the discretion of
a majority of Members. Distributions following dissolution made in kind shall be made ratably
based on Membership Units (but in accordance with positive Capital Accounts), valued at the
fair market value thereof in accordance with Section 9.3, hereof, and subject to such conditions
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and restrictions as the Managers determine are required or advisable to preserve the value of the
assets so distributed or for legal reasons.
(c) The proceeds of liquidation shall be distributed by the LLC in payment of
its liabilities in the following order:
(i) To the creditors of the LLC, other than Members, in the order of
priority established by law, either by payment or by establishment of reserves;
(ii) To the setting up of any reserves that the Members may deem
reasonably necessary for any contingent or unforeseen liabilities or obligations of the LLC or of
the Members arising out of or in connection with the LLC;
(iii) To the Members, in repayment of any loans made to, or other debts
owed by, the LLC to such Members;
(iv) To the Members in accordance with positive Capital Account
balances (after giving effect to all contributions, distributions and allocations for all taxable
years, including the year in which such liquidation occurs), in compliance with Section 1.704-
1(b)(2)(ii)(b)(2) of the IRC Regulations; and
(v) To the Members ratably based upon Membership Units.
(d) If any Member has a deficit balance in its Capital Account (after giving
effect to all contributions, distributions, and allocations for all taxable years, including the year
during which such liquidation occurs), such Member shall have no obligation to make any
contribution to the capital of the LLC with respect to such deficit, and such deficit shall not be
considered a debt owed to the LLC or any other person for any purpose whatsoever.
(e) The cash flow and items of taxable income, gain, loss, deduction or credit
of the LLC during the period of liquidation shall be divided among or borne by the Members in
accordance with the provisions of Article 6, hereof.
10.3 Effect of Termination of Member’s Membership in the LLC. (a) Upon the
occurrence of an event giving rise to termination of a Member’s interest in the LLC (hereinafter
“Terminating Event”), the Member whose membership was terminated thereby shall thereupon
become a “Former Member” and shall cease to be a Member of the LLC, and shall thereafter
cease to participate in the affairs and activities (voting or otherwise) of the LLC. During the
period from the Terminating Event until purchase of a Former Member’s LLC interest pursuant
to Article 11, hereof, such Former Member shall participate in the net profits and losses of the
LLC (in accordance with the provisions of Article 6, hereof). The provisions of this Section 10.3
shall not apply to a Terminating Event that causes the LLC to dissolve pursuant to Section 10.1
or that occurs on or after the Date of Dissolution of the LLC.
ARTICLE 11
RESTRICTIONS ON TRANSFER; BUY-SELL
11.1 Introduction. No interest in the LLC (including any portion of an LLC interest,
whether legal or equitable) may be transferred voluntarily, involuntarily, by operation of law, or
otherwise, except as provided by the provisions of this Article 11.
11.2 Notice Requirement. If any Member desires to transfer or sell its interest in the
LLC (a “Withdrawing Member”), the Withdrawing Member shall first submit written notice to
the LLC and the Remaining Members (“Remaining Members”) and shall negotiate in good faith
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for thirty (30) days with the LLC and/or the Remaining Members of the LLC before offering to
sell or transfer its interest to any other party.
11.3 Third Party Offer.
(a) A Withdrawing Member desiring to accept a bona fide offer to purchase
its LLC interest, or a portion thereof, from a third party shall deliver to the LLC and to all
Remaining Members written notice of such bona fide offer, designating the name and address of
the prospective purchaser, and the amount and terms offered for the Withdrawing Member’s
LLC interest.
(b) Within ten (10) days after receipt of such written notice, the Remaining
Members shall convene a vote to determine whether the LLC and/or the Remaining Members
desire to accept the proposed purchaser as a new Member of the LLC. The proposed purchaser
shall be entitled to become a member of the LLC if Remaining Members holding at least fifty-
one (51%) of the LLC voting rights (exclusive of that of the withdrawing Member) (as required
by Section 2.2, hereof) approve of such purchaser’s admission as a Member of the LLC.
(c) If the Remaining Members do not approve admission of the proposed
purchaser as a Member of the LLC, then the LLC, in the first instance, and the Remaining
Members, thereafter, shall have the right and option to purchase (within thirty (30) days after the
final determination of value) all of the LLC interest of the Withdrawing Member, at a price equal
to the value of such Withdrawing Member’s LLC interest determined in accordance with Section
11.9 herein, as of the date of the written notice.
(d) If the Remaining Members do not timely approve admission of the
proposed purchaser and if neither the Remaining Members nor the LLC timely exercise their
purchase option, the Withdrawing Member may sell its interest to the third party pursuant to the
terms of the bona fide offer.
11.4 No Third-Party Offer. If a Withdrawing Member has no prospective purchaser as
contemplated in Section 11.3, hereof, the written notice to the LLC and to all Remaining
Members shall set forth the Withdrawing Member’s desire to withdraw from the LLC. Upon
delivery of such written notice, the Remaining Members (in the first instance) and the LLC shall
have the right and option to purchase the interest of the Withdrawing Member at a price equal to
the then value of such Withdrawing Member’s LLC interest (determined in accordance with
Section 11.9, hereof). In the event that the offer by the Withdrawing Member is not accepted by
any Remaining Member or the LLC within ten (10) days after being made, the offer shall lapse.
11.5 Death or Disability. Upon the death or disability of any Member and where the
Personal Representative of the deceased Member’s estate (“Representative”) or Conservator of
the disabled member’s estate (“Representative”) wish to retain ownership in the LLC, all
surviving members shall vote to determine if either the estate may retain ownership in the LLC
or determine if the LLC shall purchase the deceased or disabled Member’s LLC interest. The
purchase price shall be for a price equal to the then value of such Membership interest,
determined in accordance with Section 11.9 herein. The decision of the LLC shall be pursuant to
a vote of those Members holding at least fifty-one percent (51%) of the remaining LLC voting
rights, however, in the event that there are only two members of equal ownership, the remaining
member shall make the final decision. Disability must be continuous for at least a six (6) month
period and shall be further defined by the definition contained in the disability insurance policy
of an insurance company generally recognized as providing insurance coverage for the business
engaged in by the LLC. So as to exercise its option hereunder, the LLC must provide written
15
notice of the LLC decision to the Representative within thirty (30) days of the event of death or
disability.
11.6 Terms of Purchase. Twenty percent (20%) of the purchase price of a Member’s
interest in the LLC purchased pursuant to Sections 11.3, 11.4, 11.5, 11.7, or 11.8 hereof shall be
paid in cash at the closing of the purchase and sale, with the remainder payable in three (3) equal
annual amortized installments of principal and interest, with interest at the prime rate of interest
as quoted in the Wall Street Journal, plus two percent (2%). Any payment obligation shall be
evidenced by a negotiable promissory note, and shall be unsecured.
11.7 Transfer Without Consent. The transferee of an interest in the LLC transferred
without the consent of the Members (including, but not limited to, any involuntary transfers and
any transfers pursuant to any bankruptcy proceedings) shall not be entitled to vote on matters
brought before the Members of the LLC nor participate in the management of the LLC. The
Members of the LLC (excluding the transferor and the transferee) shall have the right to
purchase the interest from such transferee at a price equal to the then value of such interest,
determined in accordance with Section 11.9 herein. The purchase price shall be paid on the
terms set forth in Section 11.6, hereof. This Section 11.7 shall not apply to any third party
admitted as a Member pursuant to Section 11.3(d).
11.8 Mandatory Disassociation.
(a) A mandatory disassociation of a Member (“Disassociated Member”) shall
occur upon any of the following events:
(i) the vote of Members holding at least seventy five percent (75%) of
the LLC voting rights; or
(ii) a criminal conviction against the Disassociated Member that
jeopardizes the loss of the Disassociated Member’s state or local business license, or the LLC’s
business license, such as a felony conviction or other criminal conviction disqualifying the
person from licensure under a “Good Moral Character” evaluation at the state or local level.
(iii) by a unanimous vote of the non-Disassociated Members, if a
Disassociated Member intentionally and knowingly engages in any illegal action that could, in
the opinion of an independent legal expert or regulator to be stipulated to by the parties,
jeopardize the continued existence of the business or its state or local licensing.
(b) Upon disassociation of the Disassociated Member, the LLC in the first
instance, and the Remaining Members thereafter, shall have the right and option to purchase
(within thirty (30) days after the final determination of value) all of the LLC interest of the
Disassociated Member, at a price equal to the value of such Disassociated Member’s LLC
interest determined in accordance with Section 11.9, as of the date of the written notice of
Disassociation. The terms of purchase shall be as set forth in Section 11.6.
11.9 Valuation of LLC and Interest Therein.
(a) By a vote of Members holding fifty-one (51%) percent of the voting
power of the LLC, the LLC shall be valued.
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(b) The “Value” for purposes of this section or any other in this agreement shall be
determined as follows: Within ninety (90) days following the date of the Notice, the LLC shall
obtain, at its cost, from the accountant then engaged to audit, review or compile the LLC’s
financial statements, a determination of the net book value of the LLC as determined from the
books and records of the LLC for financial statement purposes in accordance with generally
accepted accounting procedures consistently applied as of the date of the Dissociated Member’s
disassociation.
(c) The Value of the Dissociated Member’s interest on the date of the Notice shall be the net
book value so determined multiplied by a fraction, the numerator of which shall be the
Dissociated Member’s capital account on the effective date of the resignation and the
denominator shall be the aggregate amount of the capital accounts of all of the Members on that
date, and multiplied by 1.5. If a member is disassociated under section 11.8, then the value shall
be determined by this same formula but without multiplying it by 1.5.
(d) Following the determination of the Value in the foregoing manner, the
Managers shall promptly notify the Members of the Value. If any of the Members disagree with
the Value, the disagreeing Members shall notify the other Members within twenty (20) days after
receipt of the Managing Member’s notice and may within ninety (90) days thereafter obtain (at
the sole cost of the disagreeing Members) a second determination of the Value from an
accountant in accordance with the above described procedure for the LLC, in which case the two
Values shall be averaged and the result shall be the Value for purposes of this Agreement.
11.10. Buy-Sell. The purchase price for Other Members’ Units shall be payable in cash
on the Original Closing Date or the Second Closing Date (or later closing date, if applicable), as
the case may be, unless the purchasing Member shall elect prior to or on the respective closing
date to purchase such Other Members’ Units as follows: a down payment of twenty percent
(20%) of the purchase price, the remaining eighty percent (80%) to be amortized over two (2)
years at eight percent (8%) simple interest, with equal quarterly payments throughout the term
thereof.
ARTICLE 12
MISCELLANEOUS
12.1 Documents. Each of the Members agrees to execute such certificates,
counterparts, instruments, documents and amendments thereto as may from time to time be
required under applicable law for the formation of the LLC.
12.2 Binding Agreement. This Operating Agreement shall be binding on the assignees
and legal successors of the LLC Members and shall be governed by and construed in accordance
with the internal laws, and not the law of conflicts, of the State of California.
12.3 Entire Agreement; Captions. This Operating Agreement constitutes the entire
agreement of the parties and supersedes all prior written and verbal agreements among the
Members with respect to the LLC. Descriptive titles are used for convenience only and shall not
be considered in the interpretation of this Operating Agreement. In the event any provision of
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this Agreement shall be prohibited or unenforceable in any jurisdiction, it shall, as to such
jurisdiction, be deemed modified to conform to the minimum requirements of such law, or if for
any reason it is not deemed so modified, it shall be ineffective only to the extent of such
prohibition or unenforceability without affecting the remaining provisions hereof, and any such
prohibition or unenforceability shall not invalidate or render unenforceable such provision in any
other jurisdiction.
12.4 LLC Name. The LLC shall have the exclusive ownership and right to use the
LLC name as long as the LLC continues, despite the withdrawal (for whatever reason) of any
Member.
12.5 Investment Interest. Each Member, respectively, acknowledges that the issuance
of the Membership Units has not been registered under the Securities Act of 1933, as amended,
or any other securities laws, that all the Membership Units issued to each Member, respectively,
under this Agreement shall be acquired for investment solely for the account of that member and
with no view to making any distribution, of record or beneficially, of the Membership Units, and
that the certificates representing the Membership Units when delivered, to each Member,
respectively, may bear a restrictive legend, in form and substance satisfactory to the LLC, to the
effect that the Membership Units may not be transferred without registration under applicable
federal and state securities laws or a satisfactory opinion of counsel as to the availability of any
exemption from such registration requirement. Each Member, respectively, received notice of
the within transaction by private means and not by a public offering.
12.6 Amendment of Operating Agreement and Articles of Organization. Except as
otherwise expressly provided herein, the provisions of this Operating Agreement and the Articles
of Organization of the LLC may be amended by the unanimous vote of the Members
12.7 Arbitration. In the event of any dispute hereunder, the Members will submit the
dispute to arbitration in accordance with California law to a mutually acceptable arbiter. Each
Member may be represented by legal counsel. The decision of the arbitrators shall be final and
conclusive, and the Members waive any right to appeal. Any substantially prevailing party in a
final decision of an arbiter under this section shall be entitled to attorney’s fees and costs paid for
by the non-substantially prevailing party.
12.8 Governmental Approval. The terms of this Operating Agreement may be subject
to the approval of certain governmental authorities. Accordingly, the Members shall negotiate in
good faith to conform with any guidance or requirements provided by such governmental
authorities relating to this Operating Agreement.
12.9 Marijuana Provision. Notwithstanding any provision in this Agreement to the
contrary, the Members acknowledge that the business of the LLC may violate Federal law. The
Members waive any defenses with respect to this Operating Agreement based upon illegality.
IN WITNESS WHEREOF, the parties hereto have executed this Operating Agreement effective
as of the date first above written.
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Mammoth Lakes, CA
Exhibit B- Members’ Responsibilities
Robert Calvert
Robert will be responsible for the day-to-day operations, purchasing, retail sales, and employee
management. Robert shall develop a document detailing his specific responsibilities, work
schedule, compensation, benefits and any other aspect of the position.
Rudder
Paul will be responsible for the landlord-tenant relations, governmental relations, and generally
consult with Robert Calvert, on an as-needed basis for the efficient operation of the business.
CONFIDENTIAL 1
BUSINESS PLAN
Business Overview
(This additional section was approved via email by Jennifer Ruiz)
My name is Robert Calvert, myself and my partner Paul Rudder own a small dispensary in
Mammoth Lakes, CA. Our experience running a small dispensary has been filled with lots of great
experiences and memories with the community coming together.
We both have been involved in the community for decades long before we started our dispensary.
Giving back and being involved in the community has always been part of our values, as well as
education and giving back to Mammoth Lakes; it’s been an overall fulfilling experience. We will
bring a little small town warm and friendly experience into the City of Fresno and its vibrant and
diverse community.
We have been looking for a new location and found that Fresno would be a great location for us
to join. We will be adding Anthony Telesco, a lifelong resident of the city of Fresno as our local
manager and are very lucky to have him join our team.
We would be honored to hopefully open our next location in the City of Fresno and to integrate
our experience and community inclusions that we have provided for Mammoth Lakes for so many
years. We are looking forward to finding new friends, ways to help build the community and to
continue our local neighborhood dispensary experience to benefit the city of Fresno.
We humbly submit our Ascent proposal for a cannabis retail license. Thank you for your thoughtful
consideration.
Warmly,
Robert, Paul & Anthony
Ascent prides itself on the depth and diversity of both its ownership team and its advisory board,
a group combining seasoned veterans of the cannabis industry with a collection if its emerging
leaders. Each one of our team members and our future team members will form an integral part in
our DNA as a whole. Ascent channels talents, skills and experiences drawn from various industries
and professionals. Ascent aspires accordingly to blend the visionary diversity, creativity and
inclusion of California and with the operational strength that California is so knows for around the
world.
CONFIDENTIAL 2
As the enclosed architectural renderings and narrative illustrate, Ascent’s business model
originates in a traditional re-conception of a typical dispensary. The modern Cannabis wellness
experience that Ascent envisions, by contrast from the traditional dispensaries, by contrast, belongs
to the new cannabis normalization.
Strictly speaking, the Ascent cannabis wellness experience does not purvey cannabis. Cannabis
just happens to rank in a broader, holistic formula. More importantly, the Ascent experience
introduces educational and wellness experiences, to create inclusion and fostering the Fresno
community.
Ascent will staff its dispensary with a majority of local residents, make sure we have a diverse
representation of Fresno’s community to make sure that everyone feels welcome.
We are here to continuously educate the staff and community as well as learning from the
community of what they are looking for us to be part of.
Uniting Business, Community and Purpose
In addition to modernizing cannabis retail, Ascent differs from its competition because it regards
itself as a socially conscious business and a conscientious stakeholder in the surrounding
community—nurturing its customers, re-investing in its employees, boosting neighboring
businesses, and above all, creating a bond with local citizens. Indeed, Ascent’s mission propels it:
to eliminate the taboos surrounding cannabis and to build a socially conscious entity that will
include, inspire and will act locally as a force for the common good.
BUSINESS PLAN
1.1 Owner Qualifications
Robert Calvert
CONFIDENTIAL 3
1.1 Owner Qualifications
Paul S. Rudder
CONFIDENTIAL 4
CONFIDENTIAL 5
1.2 A Budget for construction, operation, and maintenance, compensation of employees,
equipment costs, utility cost, and other operation costs.
CONFIDENTIAL 9
1.3 Proof of Capitalization
In order to further the mission of The Fresno Community Benefits Fund and the mission of the
Fresno City Council, Applicant wishes to make a significant contribution to the Fresno
Community Reinvestment Fund, consistent with the ability of the Applicant to make such a
contribution. In order to advance the goals of the Fund to the greatest extent possible, and to
repay the people of the City of Fresno for making it possible for Applicant to enjoy the fruits of a
successful business located in the City of Fresno, Applicant commits to making a contribution
monthly of not less than one percent of Applicant's net profit but not more, annually, than
CONFIDENTIAL 13
1.4 Pro Forma
CONFIDENTIAL 15
CONFIDENTIAL 17
1.5 Fully Describe hours of operations 9 a.m. to 10 p.m.
Please describe opening and closing procedures.
Opening Procedure Standard Operating Procedure
ROLE
1) Front Desk Staff/Receptionist
2) Budtenders/Sales Associates
3) Opening Manager
MANAGER: OPENING PROCESS
This process outlines manager responsibilities at opening, with a focus on back of house.
6) Budtenders will come grab their drawers. Have budtenders count their drawers to ensure
the correct starting amount.
7) If you have any nearly-expired products to discount, bring them out onto the sales floor
and notify budtenders.
8) If there are any code-based or new specials for the day, print out a cheat-sheet for
budtenders with the code and details of the special.
9) Divvy up opening tasks. Pre-opening checklist will be started. Bud tenders add inventory
to the sales floor from our secured vault once funds have been counted in their drawers
CONFIDENTIAL 18
twice by 2 people. Once all pre-opening tasks are completed by all staff, dispensary will
open.
10) Schedule lunches and breaks. We will use Flow hub to determine lunch breaks and other
breaks so that we can plan ahead for busy times.
11) Have a team huddle to start the day. This is a 15-minute recap of anything important that
happened the previous day, the current days goals and any relevant news.
12) 5-minutes before opening, ensure Receptionist, Budtenders, and all customer-facing
spaces are clean, stocked, and ready for the day. Also ensure every employee has their
badge visible.
13) At opening time, we await to see new clients. Our front doors are locked per Fresno
Ordnance and customers will be buzzed in and out to our secured access lobby and check
in area.
BUDTENDER: OPENING PROCESS
This process outlines budtender responsibilities at opening, with a focus on the bud room.
1) Turn on all computers and printers.
2) Turn on any other tech sound system, and welcoming screens.
3) Go to the manager and get your drawer. Manager and bud tender count the cash together
twice, and both sign a cash sheet and date it. This will all be done under the camera located
by the bud tenders POS systems.
a) Count your drawer to ensure the correct starting denomination.
b) If you need any change, inform the manager.
c) Put your drawer into your till.
d) Assign the drawer to yourself in the POS system.
e) Log into POS system on your computer.
4) Bring products out to the bud room. Manager will supply products that are locked in the
secured vault. We will only carry enough product for each day only. All product will be
brought out and stored in the counters or in the drawers behind the counters. They are not
stored on the floor overnight.
5) Ensure all products are stocked based on expected sales for that day. Aim to have enough
product stocked to get you through at least mid-day
6) Budtenders will assist the inventory manager with auditing/counting inventory, including
a check list from the night before as well as METRC records. Everyone will include
inventory item count and on what day.
7) Ensure the check-out area is clean, tidy, and well-stocked if extra stock is needed please
speak to the manager on duty and fill out a supply form on what is needed and what
quantity. Once product has been received this will be checked and counted by both
budtender and manager to make sure there is an accurate account with 2 people present.
CONFIDENTIAL 19
This will also happen in front of the secured cameras either in the management office, in
the secured vault area.
8) If paper goods are needed for POS system printers, these items will be located in the paper
goods supply storage are (non-cannabis items) and will also have 2 backup rolls underneath
the counter space that they use.
9) We do not take out trash from any supplies until manager has searched through trash to
make sure no money or cannabis products are in the trash.
10) We also do not throw out trash unless a manager is present, and it is approved.
11) Cannabis waste SOP is in this operating procedure below.
12) Ensure the bud room is clean and tidy. Spot clean any areas missed by closing staff. On
down time each staff member has a designated area that they are responsible to keep clean,
and organized and secure together with manager and security.
13) 15 minutes before opening, you must be done with opening tasks and ready to start helping
customers. Ensure your badge is visible.
14) Throughout the day:
a) Package up cash into appropriate bundles to make it easier to count at the end of
the shift or at closing
b) Sanitize regularly as outlined by your regional and business’s COVID protocols.
c) Clean and tidy the bud room and check out area as time allows to make the closing
cleaning process smoother.
RECEPTIONIST: OPENING PROCESS
This process outlines reception/front desk staff responsibilities at opening, with a focus on the
waiting room.
1) Visually inspect the front desk/waiting room area and note immediate tasks to complete
before customers start arriving.
2) Turn on the front desk computer. Log into Flow hub.
3) Make sure all tech is charged and ready for use. If not, plug it in immediately
4) Check trash cans, water stations, coffee stations, and refill as necessary
5) Check chairs, furniture, and magazines/educational materials. Spot clean and straighten as
necessary.
6) 15 minutes before opening, you must be done with opening tasks and seated at the front
desk. Ensure your badge is visible.
CONFIDENTIAL 20
PROCESS FOR ENTERING THE BUILDING - ALL STAFF
7) Manager turns on the lights and does a visual inspection of the interior of the store,
including whether the closing staff completed their procedures adequately, and looking for
any water or rodent issues from overnight. Manager and security will inspect all areas to
make sure that they are all intact and secured.
8) If any issues are noticed such as rodent or water leak issue. A report will be filed, and
proper maintenance will be arranging as soon as possible. As other staff arrive, first check
the cameras to make sure no one else is waiting outside. If clear, let them in the front door.
Immediately lock the door behind them. Manager and security will use a visual “all clear”
sign once all is secured. They will check both sides of each door in the retail store.
9) Clock in, securely store personal belongings, and get started on opening procedures by job
type. Employees will store all their items in secured lockers in the employee breakroom
area.
EQUIPMENT
● Computer
● Cash drawers
● Safe and access to the safe
CONFIDENTIAL 21
● Cleaning equipment
● Keys to all exterior doors
● METRC access and login information
1.5 Continued
Dispensary Closing Procedures
Closing Standard Operating Procedure
ROLE
1) Front Desk Staff/Receptionist
2) Budtenders/Sales Associates
3) Closing Manager
TIMING
Every day - during the last hour of business and after the store closes to customers/patients.
PURPOSE
The closing process starts around an hour before closing time and concludes after the last employee
leaves the store for the night. Closing is one of the times of greatest risk for dispensaries, so it’s
important to have thoughtful processes.
Failing to properly conduct closing tasks is a compliance and safety issue for your store and
employees.
This SOP details every step in the closing process, including managing products, counting drawers,
cleaning, and locking the door/leaving the building.
A closing and opening checklist will be provided for each day so that we have a signed version
that we then store for review and compliance if needed.
BUDTENDER: CLOSING PROCESS
This process outlines budtender responsibilities at closing, with a focus on the bud room.
CONFIDENTIAL 22
1) If it’s not busy, begin closing drawers one at a time. We do not close any drawers until 1
hour before closing. The manager will determine when to start closing drawers and which
drawers to close first. If the store is still open, we will close the drawers in the managers
secured access office.
a) Budtenders on closed drawers will count their drawer, then begin closing duties,
focusing on back of house duties so as to not disturb customers.
b) Budtenders still serving customers are expected to provide great service, but aim to
get all customers out by closing time. We will not admit any new customers 30
minutes before closing. No customers will be allowed after closing. All customer
needs to leave the dispensary 5 minutes before closing at the latest.
2) Count drawers and submit for review:
a) Within Flow hub, select “Drawers” > “Details” > Submit for Review.
b) Manually count your drawer’s final cash totals down to zero. Enter each coin and
dollar denomination.
c) Add relevant notes.
d) Select “Submit Drawer for Review.”
e) The closing manager will verify and close the drawer. Insert daily totals and where
the drawer is brought. Please see our cash management section for how cash is
managed throughout the store.
3) Divide up closing duties. All staff has a designated closing area. They will restock non -
cannabis items and keep the area tidy, clean and organized. There is a checklist for each
POS station and each designated area provided to each budtender.
a)
See security diagram.
b) Ensure the check-out area is clean, tidy, and well-stocked. Printer receipts and other
paper good supplies are located in the back where non-cannabis products are stored,
employees can also find some items under their POS stations.
i) We do not take out trash and managers will be responsible for checking
trash for possible cash or cannabis drops. Manager is also responsible to
dispose of all non-cannabis trash during closing and opening procedures. 2
people will always do this together. A manager and an employee.
c) Ensure the bud room is clean and tidy. The evening staff cleans the store (opening
staff will tidy and spot clean where necessary). All floor spaces get vacuumed, door
rugs, mopping the floors, sanitizing all surfaces per COVID procedures and the
front door as well. All doors are sanitized inside and out.
d) Do multiple walk-throughs of the store to make sure no messes remain, and that no
products are hidden somewhere.
CONFIDENTIAL 23
4) Log out of FlowHub and turn off all computers. Plug in any devices that need to be charged.
5) Turn off any other technology, music and television screens.
RECEPTIONIST: CLOSING PROCESS
This process outlines reception/front desk staff responsibilities at closing, with a focus on the
waiting room.
1) If it’s not busy, begin closing cleaning/tidying tasks as appropriate. There is a checklist on
what needs to be done and each check list is new for each day.
2) At closing time, the manager will come lock the front door.
3) After all customers have been served, check FlowHub and make sure no customers are left
waiting in the queue.
4) Tidy chairs, furniture, and magazines/educational materials. Sweep/vacuum floors, with
special focus on entryway rugs. Wipe down any customer-facing surfaces such as
countertops, pens, door handles etc. per COVID protocols. Trash will be inspected together
with a manager and then taken out by a manager to be disposed of.
5) Close out of all computers, plug in anything that needs to be charged.
MANAGER: CLOSING PROCESS
This process outlines manager responsibilities at closing, with a focus on back of house.
1) Prior to closing, start doing closing tasks.
a) Exchange tips. Count small bills or change and swap out for larger bills from a
drawer.
b) Divvy up tips. Make sure that all tips are counted for. We make sure that employees
get taxed for these according to state and federal tax schedules and are also reported
on their payroll statements.
c) All tips are split equally amongst all staff members.
d) Assign closing duties. Manager will have a designated closing procedure checklist
for the entire store. Manager will also create checklists for all other staff for both
closing and operating procedures that are updated weekly and monthly if needed.
Manager is responsible to check that all other checklist tasks have been completed
before any staff can go home.
e) At closing time, lock the front door. No customers are allowed into the store 30
minutes before closing and no clients can stay in the store 5 minutes to closing. All
customer must exit 5 minutes prior to closing. No exceptions.
2) Security will make sure customers are out 5 minutes before closing.
CONFIDENTIAL 24
3)
4)
5)
.
6) Reconcile all drawers. Note: Some drawers may be closed and reconciled prior to closing
if it’s slow.
a) Budtender informs the closing manager that their drawer is ready for review.
Manager will verify all drawer in the manager’s office. Manager is the only one
who is able to transport cash in the store. Review the counts and notes submitted
by the budtender into FlowHub. Compare the expected cash with the actual cash
and look for over/under for debit or cash.
i) If totals match, close the drawer.
ii) If totals don’t match, recount and update totals and reconcile the difference
see cash management SOP below.
b) Count out your daily starting amount for each drawer for the morning shift. Put in
secure bags in the safe.
c) Put empty drawers back in the till, and leave the till open
7) Verify that all drawers are closed in FlowHub. Note: If you don’t close all drawers, you
won’t be able to run the End of Day PDF Report.
8) Run your End of Day sales report in FlowHub to help verify drawer totals and find
discrepancies.
9) Upload daily sales into METRC.
10) Count the safe and record totals. Keep the safe open for as short a time as possible. We
only open the safe once at closing and once at opening. As other employees complete their
duties, go let them out using the “Leaving the Building Process” below. Send a closing
note to the opening manager at the end of day the closing manager will send an email about
what happened the previous day and at night closing. This includes sales numbers, problem
customers and any issued that occurred, changes to orders and if a customer has a quality
issue that needs to be addressed.
PROCESS FOR LEAVING THE BUILDING - ALL STAFF
1) Clock out and grab personal belongings.
2)
CONFIDENTIAL 25
.
3)
.
4) Closing manager and last employee to leave:
EQUIPMENT
● Computer
● Flow hub account and login information
● Cash drawers
● Safe and access to the safe
● Cleaning equipment
● Keys to all exterior doors
● Metrc access and login information
1.6
Fully Describe the day-to-day operations if you are applying for a retail permit:
CONFIDENTIAL 26
(i)Describe customer check-in procedures:
Customer Check In
Standard Operating Procedure
SOP
ROLE
1) Front Desk Staff/Receptionist and or security guard.
TIMING
Ongoing - Anytime a customer enters the dispensary.
Hours of operation 9 a.m. - 10 p.m.
Delivery Hours 6 a.m. - 8.30 a.m.
Monday to Sunday
PURPOSE
The moment the front desk staff sees (blinking) or hears the doorbell on the outside being activated
(buzzing sound), he or she will buzz the customer or patient in.
They are greeted at the front desk and asked to show a form of State or Federal Approved ID to be
checked and by front desk staff/or security. Overflow of people will be directed to stand towards
the wall by the front desk, not to obstruct anyone entering or exiting the dispensary.
An employee of the applicant will verify the identity and age of adult use customers to verify that
an Adult Use customer is at least 21 years of age.
Age is verified using a device which takes a scan of the Government Issued Photo Identification
into a scanner that uses software that verifies the validity of the identification.
Age verification takes place in a reception area inside the retail premises which is separate and
apart from the retail area of the business premises where the cannabis goods displayed for retail
sale are kept.
The door from the reception, is where age verification to the retail area and where cannabis goods
are sold, will remain closed and locked at all times. No customers are allowed past the closed door
CONFIDENTIAL 27
from the reception area into the retail sales area unless and until they have been identified and age
verified for entry.
Applicant only sell medicinal cannabis goods to individuals who are at least 18 years of age and
possesses a valid physician’s recommendation. Entry into the retail area is only after confirmation
of the customer’s age, identity, and the physician’s recommendation for medicinal use of cannabis.
Applicant's Employee before sale of any medicinal cannabis goods to individuals who are at least
18 years of age will confirm the customer’s age and identity by again inspecting a valid form of
government identification provided by the customer and scanning the identification into age
verification software which is located at the point of sale register location.
Acceptable forms of government identification to prove identification and age verification include
the following:
(1) A document issued by a federal, state, county, or municipal government, or a
political subdivision or agency thereof, including, but not limited to, a valid motor
vehicle operator's license, that contains the name, date of birth, height, gender, and
photo of the person;
(2) A valid identification card issued to a member of the Armed Forces that includes the
person’s name, date of birth, and photo; or
(3) A valid passport issued by the United States or by a foreign government.
PROCESS FOR GREETING CUSTOMERS/PATIENTS
This process starts the moment a customer or patient enters your dispensary.
1) Customer enters the dispensary.
2) Receptionist/security verbally greets the customer within 3 seconds.
a) If there is a line to check in, say “Welcome, I will be right with you. Please step in
line and I will be with you momentarily.”
b) If there is no line, the customer steps up to the front desk for check in.
c) If there are COVID restrictions we will adhere to all CDC, and all other health and
safety measures as directed by City, State and Federal Governments. All protocols
will be followed according to directions given by authorities.
d) The dispensary has a secured main entrance and exit that needs to be buzzed in and
out for each person to enter or exit. Front desk staff will help clients accordingly to
enter and exit.
CONFIDENTIAL 28
e) Once they have been checked in and processed, they will wait in the main secured
entry lobby area, where they will be cleared and buzzed in to the retail space.
f) There will be physical barriers such as ropes, and visual cues such as signage to aid
customers. Our goal is never to have a customer standing at the door confused about
what they do next.
CHECK IN PROCEDURE
1) Customer steps up to check in counter.
2) Receptionist verbally greets the customer within 3 seconds and says: Welcome to Ascent.
May I see your ID and or med card please?
g) Recreational/Adult Use Customer hands receptionist their state-specific approved
identification, like ID or passport.
h) Medical Patient hands receptionist their ID and medical card
3) Receptionist/security looks at the ID/med card to verify age and authenticity, then checks
the customer in using one of three methods:
a) Scan the ID barcode using the scanner
i) Hold the scanner 6-8 inches away from the barcode on the bottom of the
back of the ID (look for the 2d/complex barcode).
ii) Click one of the side buttons on the scanner and scan the light over the
barcode.
iii) Listen for a beep and look to see that the customer’s information loads on
the screen.
iv) You will either see “Welcome Back” if they are a returning customer, or
“New Customer” if they are new. We use Flow hub software to verify ID’s,
medical cards and history.
(1) Recreational Customer name, date of birth, and Rec will
automatically populate a new customer profile.
(2) Medical Patient full name, date of birth, state of residence, Med ID,
and Med ID expiration are required when creating new Med
profiles.
b) Use “Look up customer profile” within Greeting to search for an existing customer
profile.
i) Tap “Look up customer profile.” Select “REC” or “MED.” Type in at least
3 characters to search for an existing customer.
ii) Cross reference the DOB on the customer’s ID to verify it’s the right profile.
CONFIDENTIAL 29
iii) Once verified, tap into the customer profile, and select “Check in as REC
Customer” or “Check in as a MED Customer” to add them to the queue.
c) Create a new customer profile manually.
i) Tap the plus sign in the lower right corner of the screen.
ii) Tap “Create New Profile Manually.”
(1) Recreational Make sure “REC” is selected. Enter the customer’s full
legal name, state, and date of birth.
(2) Medical Tap “MED,” enter the patient’s full legal name, state of
residence, date of birth, Med ID, and Med ID expiration.
iii) Select “Save & Check In.”
4) If the customer has been flagged as a potential risk to your dispensary in the past, you will
be notified on the app.
5) If the customer is new, or information has changed for a returning customer, edit their
profile, and tap “Save.”
a) Add them to your loyalty program by adding the customer’s phone number.
b) Add the customer to your pre-set customer groups (if applicable).
c) Add “Customer Sources” information (if applicable).
d) We will add consent forms as directed by the City of Fresno, State of California
BCC and any other agencies.
6) Check them in and add them to the queue.
a) Recreational Tap “Check in as Rec Customer.”
b) Medical Tap “Check in as Med Customer.”
7) Receptionist tells the customer to take a seat in the waiting room until they are called by a
sales associate.
CUSTOMER MOVEMENT PROCESS
This process outlines how customers/patients go from check in to transaction, including where
they wait.
1) After completing check in, the receptionist tells the customer/patient where to wait and
gives an estimated wait time if available.
2) The customer/patient must stay within the secured lobby waiting area.
3) The customer/patient is only able to access the secured sales floor after being checked in.
4) The customer/patient must wait to be called back before entering.
CONFIDENTIAL 30
ORDER AHEAD PROCESS
This process outlines how to check in customers/patients who are picking up and paying for orders
made ahead of time.
1) Make sure that the order is in the “Ready” column within Flow hub Cashier. You will not
be able to pair a customer with an order that isn’t ready.
2) Follow the typical greeting, new customer set up, and ID/med card verification steps as
customers/patients arrive.
3) Instead of checking in the customer/patient as you normally would, select “Order Pick Up.”
4) Find the customer/patient’s name in the list of orders, select their name, and select “Check
in Order.”
5) You’ll be directed back to the main queue and will see the name at the top that reads “Order
Pick Up.” The order is now paired. This will be done in the same exact check in procedures
as above.
6) Secured access is still required.
7) The next available budtender will meet the customer/patient, take them back to the
terminal, and process the transaction as usual, including adding specials.
MANAGING THE QUEUE PROCESS
This process is for maintaining and updating the queue of checked in customers/patients. This is
important for accurate reporting of average wait time.
1) Once a customer/patient is checked in, their name automatically appears in the list of
checked in customers, called the queue, on the main screen of Greet.
Note: Order ahead customers/patients always go to the top of the queue.
2) All active customers/patients in the queue have an associated wait time.
3) To edit a customer/patient, select their name. This directs you to their profile. Update the
applicable information, or add customer notes or flags, and “Save.”
4) To remove a customer/patient from the queue:
a) Select their name. This directs you to their profile. Choose “Remove from Queue.”
To remove the customer from the queue view, slide your finger across a customer’s
name in the queue to the left. This gives two options: “Left Store” and “Flag.”
Select “Left Store” to indicate that the customer/patient has left and should no
longer be in the queue.
CONFIDENTIAL 33
The following procedures are performed for verifying labeling contents for cannabis goods for
retail sale including final form of verification, primary panel labeling, and informational panel
labeling.
The Inventory Manager will follow the following step by step procedure verifying labeling
contents of cannabis goods received for retail sale.
Step 1. - Overall Requirements.
Manager will review the label for basic overall requirements as follows:
(a) All the information required to be listed on the label is written in English.
(b) The label is unobstructed and conspicuous so that it can be read by the consumer.
(c) All label information is located on the outside container or wrapper of the finished product to
be sold at retail sale. If the product container is separable from the outer-most packaging (e.g., a
container placed inside of a box), the product container shall also include the following:
The Inventory Manager will then review the label for requirements based upon the type of
cannabis good as follows:
Step 2. - Labeling Requirements: Pre-Rolls and Packaged Flower.
a. Primary Panel Label - Pre-Rolls and Packaged Flower.
(a) The label for a package of pre-rolls or packaged flower includes on the primary panel, which
the part of the cannabis product that is most likely to be displayed, presented, shown, or examined
under customary conditions of display for retail sale, that includes the following information in a
type size no less than 6-point font and in relation to the size of the primary panel and container:
(1) Identity of the product;
(2) The net weight of cannabis in the package, listed in both metric and U.S. customary units; and
(3) Universal symbol
b. Informational Label - Pre-Rolls and Packaged Flower.
CONFIDENTIAL 34
(b) The label for a package of pre-rolls or packaged flower shall include an informational label,
which is the part of the cannabis product label that is not the primary panel, that includes the
following information in a type size no less than 6-point font and in relation to the size of the
informational panel and container:
(1) The Unique Identifier for use in the Track-and-Trace system (UID);
(2) The licensed cultivator or licensee packaging the product (either the legal business name or the
registered name under which the business will operate listed on the license certificate), and its
contact number or website address;
(3) The date of packaging for retail sale;
(4) The following statement in bold print: “GOVERNMENT WARNING: THIS PACKAGE
CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF
REACH OF CHILDREN AND ANIMALS. CANNABIS MAY ONLY BE POSSESSED OR
CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS THE PERSON IS
A QUALIFIED PATIENT. CANNABIS USE WHILE PREGNANT OR BREASTFEEDING
MAY BE HARMFUL. CONSUMPTION OF CANNABIS IMPAIRS YOUR ABILITY TO
DRIVE AND OPERATE MACHINERY. PLEASE USE EXTREME CAUTION.”
(5) For the cannabinoid content for a package of pre-rolls or packaged flower. Packages of
infused pre-rolls labeled with either: (a) The cannabinoid content in milligrams; or (b) The
cannabinoid content of the dried flower expressed as a percentage and the added cannabinoid
content in milligrams.
Step 3. - Labeling Requirements: Manufactured Products.
a. Primary Panel - Manufactured Products
(a) That the label for a manufactured cannabis product includes a primary panel that includes the
following information in a type size no less than 6-point font and in relation to the size of the
primary panel and container:
(1) The identity of the product in a text size reasonably related to the most prominent printed
matter on the panel;
(2) The universal symbol and
CONFIDENTIAL 35
(3) The net weight or volume of the contents of the package, listed in both metric and U.S.
customary units.
(b) Cannabinoid content for manufactured cannabis products which may be included on the
primary panel labeled as follows:
(1) For an edible product or a cannabis concentrate for which the manufacturer has established
serving designations, THC and CBD content, expressed in milligrams per serving and milligrams
per package.
(2) For a topical cannabis product or a cannabis concentrate without serving designations, THC
and CBD content, expressed in milligrams per package. For THC or CBD concentration that is
less than two (2) milligrams per serving or per package, the THC or CBD may be labeled as
“<2.0 mg per serving” or “<2.0 mg per package.”
Additional Primary Panel Labeling Requirements: Edible Products.
That the primary panel of an edible cannabis product includes the words “cannabis-infused”
immediately above the identity of the product in bold type and a text size larger than the text size
used for the identity of the product.
b. Informational Panel Labeling Requirements for Manufactured Products.
That the label for a manufactured cannabis product includes an informational panel, the text which
is in a size of no less than 6-point font in relation to the size of the primary panel and container
includes the following:
(1) The name of the licensed manufacturer (either the legal business name or the registered name
under which the business will operate listed on the license certificate) that manufactured the
cannabis product and its contact number or website address;
(2) The date of the cannabis product’s manufacture and packaging;
(3) The following statement in bold print: “GOVERNMENT WARNING: THIS PRODUCT
CONTAINS CANNABIS, A SCHEDULE I CONTROLLED SUBSTANCE. KEEP OUT OF
REACH OF CHILDREN AND ANIMALS. CANNABIS PRODUCTS MAY ONLY BE
POSSESSED OR CONSUMED BY PERSONS 21 YEARS OF AGE OR OLDER UNLESS
THE PERSON IS A QUALIFIED PATIENT. THE INTOXICATING EFFECTS OF
CONFIDENTIAL 36
CANNABIS PRODUCTS MAY BE DELAYED UP TO TWO HOURS. CANNABIS USE
WHILE PREGNANT OR BREASTFEEDING MAY BE HARMFUL. CONSUMPTION OF
CANNABIS PRODUCTS IMPAIRS YOUR ABILITY TO DRIVE AND OPERATE
MACHINERY. PLEASE USE EXTREME CAUTION.”
(4) The statement “FOR MEDICAL USE ONLY,” if:
(A) The cannabis product is intended by the manufacturer only for sale to medicinal- use
customers;
(B) The product is an orally-dissolving edible product containing more than 100 milligrams THC
per package; or
(C) The product is a topical cannabis product or concentrate containing more than 1,000 milligrams
THC per package.
(5) A list of all product ingredients in descending order of predominance by weight or volume; If
any product ingredient contains sub-ingredients, the list includes either:
(A) The common name of the ingredient followed by a parenthetical listing of all ingredients in
descending order by weight or volume; or
(B) A list of all sub ingredients as individual ingredients in descending order of predominance.
(6) If the cannabis product contains an ingredient, flavoring, coloring, or an incidental additive
that bears or contains a major food allergen, the word “contains,” followed by a list of the
applicable major food allergens;
(7) The names of any artificial colorings contained in the product;
(8) If an edible cannabis product, the amount, in grams or milligrams, of sodium, sugar,
carbohydrates, and total fat per serving;
(9) Instructions for use, such as the method of consumption or application, and any preparation
necessary prior to use;
(10) The product expiration date, “use by” date, or “best by” date, if any;
(11) The UID and the batch or lot number; and
CONFIDENTIAL 37
(12) If the cannabis product is perishable or is perishable after opening, the statement, “KEEP
REFRIGERATED” or “REFRIGERATE AFTER OPENING,” as applicable.
Manager will review the information panel label with the understanding that with the exception of
the UID and the batch or lot number the information label requirements may be fulfilled through
the use of supplemental labeling, which may include, but is not limited to, a package insert, fold-
out or booklet label, or a hanging tag.
Cannabinoid content for manufactured cannabis products which may be included on the
informational panel is labeled as follows:
(1) For an edible product or a cannabis concentrate for which the manufacturer has established
serving designations, THC and CBD content, expressed in milligrams per serving and milligrams
per package.
(2) For a topical cannabis product or a cannabis concentrate without serving designations, THC
and CBD content, expressed in milligrams per package.
Step 4. - Labeling Restrictions.
Inventory Manager will inspect Cannabis product labeling to ensure that it does not contain any of
the following labeling restrictions:
(a) The name of a California county, including any similar name that is likely to mislead consumers
as to the origin of the product, unless one hundred percent of the cannabis contained in the product
was grown in that county. Manager will review the shipping manifest and Track-and-Trace system
to validate the cannabis represented to be grown in a certain county was in fact 100% grown in the
county indicated on the label.
(b) That the label content is not, or is designed to be, attractive to individuals under the age of 21,
including but not limited to:
(1) Cartoons;
(2) Any likeness to images, characters, or phrases that are popularly used to advertise to children;
(3) Any imitation of candy packaging or labeling; or
(4) The terms “candy” or “candies” or variants in spelling such as “Kandy” or “kandeez.”
CONFIDENTIAL 38
(c) Any information that is false or misleading. False or misleading information includes any
indication that the cannabis or cannabis product is organic, unless the National Organic Program
(Section §6517 of the federal Organic Foods Production Act of 1990 (7 U.S.C. Section §6501 et
seq.)) authorizes organic designation and certification for cannabis and the cannabis or cannabis
product meets the requirements for such designation and certification. This includes use of the
word “organic” on the labeling or variants in spelling such as “organix.”
(d) Any health-related statement that is untrue or misleading. Any health-related statement must
be supported by the Cultivator or Manufacturer with the source of publicly available scientific
evidence (including evidence from well-designed studies conducted in a manner which is
consistent with generally recognized scientific procedures and principles), and for which there is
significant scientific agreement among experts qualified by scientific training and experience to
evaluate such claims.
(e) If the product is an edible cannabis product, a picture of the product contained therein.
(g) Any labeling in violation of Code of Regulation Section §5040.1 which prohibits the marketing
cannabis goods as Alcoholic Products. Licensees shall not sell or transport cannabis goods that are
labeled as beer, wine, liquor, spirits, or any other term that may create a misleading impression
that the product is an alcoholic beverage
Step 5. - Statement of Characteristic Anticipated Effects.
The Inventory Manager will inspect Cannabis product labeling to ensure that it does not contain
any statement of characteristic anticipated effects. If a cannabis product includes information on
the characteristic anticipated effects of the cannabis product the Manufacturer must submit
documentation which substantiates that the information is truthful and not misleading. Such
information may be located on the informational panel of the label or as an insert included in the
cannabis product package. For purposes of this step, “characteristic anticipated effect” includes
any physiological effect (a temporary effect on the body related to the consumption of cannabis)
that is common to or expected from the particular cannabis strain, but excludes any claim of health
benefits (i.e. claims of therapeutic action as a result of the consumption of cannabis).
Step 6. Universal Symbol Placement.
The Inventory Manager will inspect Cannabis products for the universal symbol placement as
follows:
CONFIDENTIAL 39
(a) The primary panel of a cannabis product is marked, stamped, or otherwise imprinted with the
universal symbol.
(b) The symbol replicates the following in form:
(c) The symbol is black in color. For packaging that is dark in color, the symbol may be made
conspicuous by printing the symbol on, or outlining the symbol with, a contrasting color.
(d) That the universal symbol is no smaller in size than one half (.5) inch by one half (.5) inch and
is printed legibly and conspicuously.
(e) That the universal symbol has not been altered or cropped in any way other than to adjust the
sizing for placement on the primary panel.
After the items of cannabis goods physically received are cross-checked and reconciled against
items identified on Shipping Manifest. they are then placed in our Inventory Control system by the
Inventory Manager which is part of the point-of-sale software system. Once this process is
complete the cannabis goods are then moved by the Inventory Manager into the storage area of
our limited access area where cannabis goods are stored and held.
(iii) Identify the name of the Point-of-Sale system to be used and the number of Point-of-Sale
Locations.
Name: Flow Grow and 5 POS Systems.
(iv)
i. The estimated number of customers to be served per hour/day.
We estimate that 100-200 Customers per day will be served. We estimate
between 15 to 25 customers per hour depending on time of day, day of week,
or holiday.
ii. Describe the proposed product line to be sold and estimate the percentage of
sales of flower and manufactured product. Based on our current sales of our
CONFIDENTIAL 40
other dispensary we believe that we will sell 60% Manufactured product and
40% flower product. We carry everything from creams to smokable flower in
various packages and brands. The store will carry an assortment of over 800
product sku’s to bring variety to the Fresno Community.
iii. We will not be proposing a delivery service at this time.
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
November 25, 2020 Please reply to:
Marisela Martínez
(559) 621-8038
Robert Calvert
RP Mammoth, LLC
PO Box 1119
Mammoth Lakes, CA 93546
Dear Applicant:
SUBJECT: ZONING INQUIRY NUMBER P20-04308 REQUESTING INFORMATION
REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 444
NORTH BLACKSTONE AVENUE (APN 459-071-19)
Thank you for your inquiry regarding the allowance of new cannabis retail uses. The
requested information about cannabis retail uses 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 cannabis retail business on the subject property conveys the following:
1. All cannabis retail businesses must be located on property zoned DTN
(Downtown Neighborhood), DTG (Downtown General), CMS (Commercial Main
Street), CC (Commercial Community), CR (Commercial Regional), CG
(Commercial General), CH (Commercial Highway), NMX (Neighborhood Mixed-
Use), CMX (Corridor/Center Mixed-Use), RMX (Regional Mixed-Use), and must
meet all of the requirements for development in these zones, including, but not
limited to, parking, lighting, building materials, etc.
The subject property is zoned CMX, which is one of the allowable zone districts
for cannabis retail businesses. Development standards of the CMX zone district
are available in Sections 15-1103, 15-1104, and 15-1105 of the FMC. The
subject location meets the zone district requirement, per Section 15-
2739.B.1.a of the FMC, for a cannabis retail business.
2. All building(s) in which a cannabis retail business is located shall be no closer
than 800 feet from any property boundary containing the following: (1) A
cannabis retail business; (2) A school providing instruction for any grades pre-
school through 12 (whether public, private, or charter, including pre-school,
Zoning Inquiry P20-04308
444 North Blackstone Avenue
Page 2
November 25, 2020
transitional kindergarten, and K-12); (3) 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; and, (4) A youth
center that is in existence at the time a complete commercial cannabis business
permit is submitted.
The subject property is not located within 800 feet of the property boundary of
any of the above-mentioned uses. The subject building meets the separation
requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail
business.
3. Prior to commencing operations, a cannabis retail business must obtain a
Cannabis Conditional Use Permit from the Planning and Development
Department per Section 15-2739.N of the FMC.
4. No more than two cannabis retail businesses may be located in any one Council
District. If more than 14 are ever authorized by Council (more than two per
Council District), they shall be dispersed evenly by Council District.
The subject property is in Council District 7. There are currently no cannabis
retail businesses located in Council District 7. This location requirement is
satisfied for a cannabis retail business.
Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and
Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis
Retail Business and Commercial Cannabis Business) of the FMC to understand
other requirements of cannabis retail businesses, including but not limited to,
application requirements, signage, etc.
This information was researched by the undersigned per the zoning request. The
undersigned certifies that the above information contained herein is believed to be
accurate and is based upon, or relates to, the information supplied by the requestor.
The City of Fresno assumes no liability for errors and omissions. All information was
obtained from public records held by the Planning and Development Department.
A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s
office at 559-621-7650. The Fresno Municipal Code may also be searched on the
Internet, free of charge, by going to www.fresno.gov. If you have questions regarding
this matter, please contact me by telephone at 559-621-8038 or at
Marisela.Martinez@fresno.gov.
Cordially,
Marisela Martínez, Planner I
Development Services Division
Planning and Development Department
BLACKSTONE MANAGEMENT CO. LLC
P.O.BOX 1119
MAMMOTH LAKES, CA. 93546
To Whom It May Concern: Dated: November 25, 2020
This is in reference to our application for a permit to operate a retail cannabis location within the
City of Fresno. This statement is to affirm that, within one year of the granting of a commercial
cannabis business permit by the City of Fresno to our organization, the managing members of
Blackstone Management Co. LLC attest, on behalf of the company, that they will employ at least
one, if not more, supervisors and at least one, if not more, employees who have completed a Cal-
OSHA industry outreach course offered by a duly authorized training provider (FMC 9-3316(c)).
Respectfully submitted:
Robert Calvert, Managing Member
Paul Rudder, Managing Member
DocuSign Envelope ID: -
12/4/2020
12/4/2020
DocuSign Envelope ID: E1894D58-851C-40FF-B1F8-9B8EE274E6C5
BLACKSTONE MANAGEMENT CO. LLC
P.O.BOX 1119
MAMMOTH LAKES, CA. 93546
To Whom It May Concern: Dated: November 25, 2020
This is in reference to our application for a permit to operate a retail cannabis location within
the City of Fresno. This statement is to affirm that, within one year of the granting of a
commercial cannabis business permit by the City of Fresno to our organization, the managing
members of Blackstone Management Co. LLC attest, on behalf of the company, that they will
employ at least one, if not more, supervisors and at least one, if not more, employees who have
completed a Cal-OSHA industry outreach course offered by a duly authorized training provider
(FMC 9-3316(c)).
Respectfully submitted:
Robert Calvert, Managing Member
Paul Rudder, Managing Member
DocuSign Envelope ID: -DocuSign Envelope ID: E1894D58-851C-40FF-B1F8-9B8EE274E6C5
12/4/2020
12/4/2020
1048.0G 501842.3
1
2. SOCIAL POLICY AND LOCAL ENTERPRISE PLAN
2.1 Describe whether Commercial Cannabis Business is committed to offering employees a
Living Wage.
Ascent is a Commercial Cannabis Business committed to offering employees a Living Wage. We
believe that paying employees an above-market living wage and investing their education and
training will increase their productivity and personal career satisfaction. To this end, Ascent will
compensate for an hourly wage of dollars per employee with a 3% increase of salary per year.
Assistant Management positions will be paid an annual salary of with a 3% increase per
year and upper Management will be paid an annual salary of with a 3% increase per year.
Employees will log into and carry tablets or other mobile devices to facilitate customer sales. Beyond
sales, these tablet devices will also alert employees and their managers of all state and locally
mandated breaks, lunches, etc. and will track employee work periods, including overtime so that
every employee receives their correct salaries & wages.
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
Ascent's budget calls for an hourly wage of dollars per employee with a 3% increase in salary
per year. Assistant Management positions will be paid an annual salary of with a 3%
increase per year and upper Management will be paid an annual salary of with a 3%
increase per year. This does not include the additional dollars per month Ascent has budgeted for
each employee's healthcare and wellness perks. As a consequence, every Ascent employee will enroll
in 100% health insurance coverage of the HMO plan, this plan will cover health, dental, vision, etc.
that the company's benefits coordinator.
Ascent vacation policy grants its employees a fixed two paid vacation periods set by
management. Ascent employees will cooperate to apportion vacation time to suit their commitments
and to maximize their hiatus from work. Paid time off for Personal Care (5 days) per year., Paid time
off for sick days (8 days) per year., and Paid time off for childcare (5 days) per year. Ascent founding
team is a firm believer in workplace efficiency and working smart, not endlessly.
2.3. Describe compensation and opportunities for continuing education and employee
training.
Ascent will compensate all of its employees starting at an hourly rate of /hour and upper
Management’s annual salary at all with an annual 3% salary increase with full 100% paid
health, vision, dental benefits, and HMO Healthcare Plan. Employee training programs shall be
implemented and designed to educate new and existing employees with the option of 2 weeks of
reimbursement tuition annually at community and local colleges. Time off for Higher Education -
We encourage employees to continue their education and will help facilitate th eir hours if they are
taking courses. Commitment to offer apprenticeships and/or compensation for continuing education
in the field of business, legal, cannabis, financial and personal growth, etc.
1048.0G 501842.3
2
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.
Ascent believes that a diverse company is vital to facilitating innovation and promoting a safe and
embracing workplace. Ascent has developed a comprehensive plan to ensure that individuals from
various backgrounds are afforded an equal opportunity to join our team in a meaningful way and have
adopted a hiring and staffing policy that prioritizes diversity and that aims to assemble, and to retain,
a workforce that mirrors California’s robust pluralism. To achieve this goal, Ascent will embark
upon a community engagement and outreach program designed to solicit and hire candidates from
diverse racial, gender, religious, and ethnic backgrounds and to attract the handicapped and disabled,
military veterans, and HIV and AIDS sufferers. Ascent hopes to include everyone, especially those
who have been wrongly harmed by cannabis criminalization and those with low socioeconomic
status, non-conformist political views, and foreign national origins.
At this very moment, we have both Management positions filled by two local Fresno residents and
we plan on hiring all other employees locally.
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 before March 2, 2020.
Anthony Telesco will be our head Manager and his son Mike Telesco a lifelong resident of the City
of Fresno as our local Assistant Manager. We are very lucky to have a father-son in management to
join our team. They will be in charge of hiring the other employees that will be Fresno -based. We
are thrilled to have them on our team and looking forward to being more involved in the local
community and building a better Fresno.
2.6. Describe the number of employees, title/position, and their respective responsibilities.
Ascent will have four (4) employees:
1. FRESNO LOCAL HIRE:
Anthony Telesco, titled Operations Manager, and their responsibilities will be to oversee day-
to-operations See Section: 1.5
1) Audit the secured vault/safe
2) Managers conduct a pre-check list store opening procedure.
3) Check cameras every 5 minutes to ensure nothing looks suspicious.
4) Prepare drawers handle the day-to- financials
5) Oversea Security and Employees
6) Handle Inventory
7) Daily Specials
8) Divvy up opening/closing tasks.
9) Schedule lunches and breaks. We will use FlowHub to determine lunch breaks and
other breaks so that we can plan ahead for busy times.
10) Have a team huddle to start the day and a safety discussion.
1048.0G 501842.3
3
13) Monitor security camera, secure building with security
14) Develop charitable and local initiatives for Ascent
2. FRESNO LOCAL HIRE:
Matt Telesco, title: Assistant Manager, their responsibilities are to open and close and run
the counter during hours of operations See Section: 1.5
1) Managers conduct a pre-check list store opening procedure.
2) Check cameras every 5 minutes to ensure nothing looks suspicious.
3) Prepare drawers handle the day-to- financials
4) Help Oversea Security and Employees
5) Handle Inventory
6) Daily Specials
7) Divvy up opening/closing tasks.
8) Schedule lunches and breaks. We will use Flow hub to determine lunch breaks and
other breaks so that we can plan for busy times.
9) Have a team huddle to start the day and a safety discussion.
10) Monitor security camera, secure building with security
11) Develop charitable and local initiatives for Ascent
3. FRESNO LOCAL HIRE:
TBD: title: Front Desk Check-Customer Check-In, their responsibilities are to open and close
and run the counter during hours of operations See Section: 1.5
This process outlines reception/front desk staff responsibilities at the opening, during operations, with
a focus on the waiting room.
1) Visually inspect the front desk
2) Turn on the front desk computer. Log into Flow hub.
3) Make sure all tech is charged and ready for daily use.
4) Check trash cans, water stations, coffee stations, and refill as necessary
5) Clean interior and exterior
6) Check-in customers
7) Clean etc. per COVID protocols.
8) Closeout all computers, plug in anything that needs to be charged.
4. FRESNO LOCAL HIRE:
TBD title: Budtender, their responsibilities are to open and close and run the counter during
hours of operations See Section: 1.5
This process outlines budtender responsibilities at the opening, with a focus on the bud room.
1) Turn on all computers and printers.
2) Turn on any other tech sound system, and welcome screens.
3) Go to the manager and get your drawer.
a) Count your drawer to ensure the correct starting denomination.
1048.0G 501842.3
4
b) If you need any change, inform the manager.
c) Put your drawer into your till.
d) Assign the drawer to yourself in the POS system.
e) Log in to the POS system on your computer.
4) Bring products out to the bud room.
5) Ensure all products are stocked based on expected sales for that day.
6) Refresh bud pods.
7) Budtenders will assist the inventory manager with auditing/counting inventory,
including a checklist from the night before as well as METRC records.
8) Ensure the check-out area is clean, tidy,
9) Cannabis waste SOP is in this operating procedure below.
10) Ensure the bud room is clean and tidy.
11) Throughout the day:
a) Package up cash into appropriate bundles to make it easier to count at the end
of the shift or at closing
b) Sanitize regularly as outlined by your regional and business’s COVID
protocols.
c) Clean and tidy the bud room and check out the area as time allows to make the
closing cleaning process smoother.
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.
Ascent’s core in-house team will be 4 local hires and will have a labor agreement ready if we exceed
this, then we are prepared to provide a Labor Peace Agreement.
Labor Peace Agreements. This has not been signed since we currently do not have 5 employees.
See our agreement
MEMORANDUM OF AGREEMENT
THIS AGREEMENT is made and entered into by and between Blackstone Management Co,
LLC and any DBA under which it operates a cannabis business currently located at 444 North
Blackstone Avenue, Fresno CA 93701 and at any address where this entity may relocate
pursuant to a license under State or Local law, (hereinafter referred to as the “Employer”) and
United Food and Commercial Workers International Union, and its designated Local, UFCW
Local 770 (the "Union") or any other designated Locals.
1. This Agreement shall apply to all regular full and part-time employees
(“employees”) of the Employer who work in the job classifications set forth in Exhibit "A".
2. The parties hereby establish the following procedure for the purpose of ensuring an
1048.0G 501842.3
5
orderly environment for the exercise by the Employees, in the classifications set forth in Exhibit
A, of their rights under Section 7 of the National Labor Relations Act and to ensure compliance
with California Medicinal and Adult Use Cannabis Regulation and Safety Act (MAUCRSA).
3. The parties mutually recognize that Federal labor law guarantees employees the right
to form or select any labor organization to act as their exclusive representative for the purpose
of collective bargaining with their employer, or to refrain from such activity.1
4. The Employer will take a neutral approach to unionization of Employees. The Employer
will not undertake any action nor make any statement that will directly or indirectly state or imply
any opposition by the Employer to the selection by such Employees of a collective bargaining
agent, or preference for or opposition to any particular union as a bargaining agent.
5. The Union shall have reasonable access to the Employer’s worksite during regular
business hours or when employees are required to work for the purpose of meeting with
Employees to discuss their right to representation, employment rights under state law, and
terms and conditions of employment. In so doing, the Union shall not disrupt the Employer's
business and will act consistently with the California Medicinal and Adult Use Cannabis
Regulation and Safety Act (MAUCRSA) and Local Cannabis Ordinances. The Employer will
cooperate with the Union in making arrangement to permit Union representatives to meet with
employees in areas where the Employees will be able to speak to the Union representative
without monitoring by the Employer, at time when the employee is not regularly obligated to
perform work duties.
6. Within ten days following receipt of written notice of intent to organize Employees, the
Employer will furnish the Union with a complete list of Employees, including both full and
part-time employees, showing their job classifications, departments, home addresses, and, if
known, cell phone numbers and email addresses. Thereafter, the Employer will provide updated
complete lists monthly, unless there is no change to the list. The Union will keep all Employee
information provided by the Employer confidential and not use them for any purpose other than
the purposes of this Agreement or as required by law. Within ten days of
1 If the unit of employees to be covered by this Agreement is one in the exclusive jurisdiction of
the California Agricultural Labor Relations Act, the parties will meet within ten days of such
knowledge and modify the Agreement to comply with that law as mandated by its terms.
1048.0G 501842.3
6
a request by the Union to the Employer, the Employer will also distribute to each Employee
the letter attached as Exhibit B.
7. At the Union’s request, the Employer will arrange a meeting(s) on a mutually
agreeable date(s) and time(s) with all of its Employees. At the meeting, the Employer will
tell the Employees that it is neutral, does not object to their talking to and supporting the
Union, and will negotiate a collective bargaining agreement (CBA) with the Union if a
majority the covered employees wish to be represented by the Union by designating the
Union as their exclusive collective bargaining representative. Union representatives will
attend the meeting and, after the Employer has introduced them and left the meeting, talk
with the Employees about the Union. To accomplish this end, the parties will determine if
the meeting will be on paid or unpaid time.
8. The Union may request recognition as the exclusive collective bargaining agent for the
Employees of Employer. Upon such request, a person mutually agreed to by the Employer and
Union, or if no agreement is reached then the Arbitrator identified in Paragraph 13, will conduct
a review of Employees' authorization cards and membership information submitted by the Union
in support of its claim to represent a majority of such Employees. The review shall involve a
comparison of the authorization card signatures of the Employees to W-4 or 1-9 forms for such
Employees provided to the Arbitrator (as defined in Paragraph 13) by the Employer. The
identity of all card signers shall be kept confidential from the Employer. Subject to the
availability of a person mutually agreed upon or an Arbitrator identified in Paragraph 13 such
review shall take place no more than fourteen (14) days after the Union's request absent mutual
agreement to extend time for review. The size of the unit to determine recognition will be
determined by the size of the unit ten days prior to the time the request for recognition is made.
If the review establishes that a majority of eligible Employees has designated the Union as its
exclusive collective bargaining representative or joined the Union, the Employer will
recognize the Union as the exclusive representative of such Employees.
9. The Employer will not file a petition with the National Labor Relations Board for any
election in connection with any demands for recognition provided for in this agreement. The Union
and the Employer will not file any Unfair Labor Practice charges with the National Labor Relations
Board or any other type of legal claim in connection with any act or omission occurring within the
context of this agreement; arbitration under Paragraph 13 shall be the exclusive remedy. The Union
and the Employer agree that if any other person or entity petitions the National Labor Relations
Board for any election as a result of or despite recognition of the Union pursuant to this Paragraph,
(a) the Employer and the Union will each request that the NLRB dismiss the petition on grounds
of recognition bar or, if they have agreed to a collective bargaining agreement covering Employees
at the time the petition is filed, on grounds of contract bar, (b) if the petition is not dismissed, the
Employer and the Union shall agree to a full consent election agreement under Section 102.62(c)
of the NLRB’s Rules and Regulations, and
(c) the Employer and the Union shall at all times abide by the provisions of this Agreement.
10. If the Union is recognized as the exclusive collective bargaining representative as provided
in Paragraph 8, negotiations for a collective bargaining agreement shall commence no later than
120 days from the date of recognition or 45 days from a request by the Union to bargain a successor
1048.0G 501842.3
7
contract for a contract that has an impending expiration date. To ensure labor peace throughout
the collective bargaining process, if the parties are unable to reach agreement on a collective
bargaining agreement within 9 months after recognition pursuant to
1048.0G 501842.3
8
Paragraph 8, or upon 4 months after commencement of bargaining for a successor agreement,
either party shall have the right to submit any unresolved issues for resolution to final and binding
arbitration pursuant to Paragraph 13. The arbitrator identified in Paragraph 13 below shall be the
Arbitrator, unless another Arbitrator is mutually agreed to by the parties. The Arbitrator shall be
guided by the following considerations:
a. Proposals by the parties during bargaining leading up to arbitration;
b. Size and type of the Employer's operations;
c. Ability of the employees, through the combination of wages, hours and benefits,
to earn a living wage to sustain themselves and their families; and
d. Employees' productivity;
e. Employment standards and conditions at comparable retail cannabis operations;
f. Customer focused concerns;
g. Responsible customer service in a clean and secure environment that assures
customer and worker safety;
h. A procedure that allows workers to raise and expeditiously resolve work place disputes;
i. Full compliance with Local and State laws regulating cannabis businesses;
j. Compliance with all labor and employment standards under Federal, State and
Local laws covering the employees of the Employer;
k. Any other relevant economic or non-economic factors which the parties have
entered into evidence at the hearing.
11. During the term of this Agreement in consideration of the covenants made herein, the
Union will not engage in any work stoppages, picketing, or boycott or other economic activity
at the Employer's Operation which will interfere with the Employer’s business (including but
not limited to strikes, sympathy strikes, “slowdowns”, public hand billing, public display of
banners, demonstrations directed at the employer, or refusals to handle merchandise - except
as may be permitted by applicable provisions of Cal/OSHA) and the Employer will not
engage in a lockout of the Employees. If the Employer recognizes any union besides the
Union as the exclusive collective bargaining representative of Employees, this Paragraph
shall terminate immediately and without notice.
12. Employer shall ensure that if the Employer intends to subcontract any work performed
by bargaining unit employees, in so doing the Employer will comply with all State and Local
laws and will require the subcontractor to comply, in writing, with this Agreement.
13. The parties agree that any disputes over the interpretation or application of this
Agreement shall be submitted to expedited and binding arbitration, with an Arbitrator
mutually agreed to by the parties If the parties are not able to agree upon an arbitrator within
1048.0G 501842.3
9
7 days they shall request from the Federal Mediation and Conciliation Service a list of five
arbitrators who are members of the National Academy of Arbitrators and who have their
principal residence in Southern California. The parties shall, within 14 days of
1048.0G 501842.3
10
receiving the list, select a permanent Arbitrator (“Arbitrator”) under this Agreement by
alternately striking names from the list. The party to strike first shall be determined by coin
toss. The last name stricken from the list shall be the Alternate Arbitrator (“Alternate
Arbitrator”). The Arbitrator shall hear and decide all disputes submitted to arbitration unless
the Arbitrator is unavailable for a hearing within 30 days from the date of submission but the
Alternate Arbitrator is available during such 30-day period, in which case the dispute shall
be submitted to the Alternate Arbitrator for hearing and decision. The Arbitrator (or Alternate
Arbitrator) shall conduct the arbitration according to the procedures established by the
American Arbitration Association. The Arbitrator (or Alternate Arbitrator) shall also have
the authority to order the noncompliant party to comply with this Agreement, including both
remedies in equity and law. The parties hereto agree to comply with any order of the
Arbitrator (or Alternate Arbitrator), which shall be final and binding. The United States
District Court for the Central District of California shall have exclusive jurisdiction over any
action concerning arbitration under this Agreement. The parties consent to the entry of any
order of the Arbitrator (or Alternate Arbitrator) as the order or judgment of the Court, which
includes the entry of findings of fact and conclusions of law.
14. This Agreement shall be in full force and effect from the date it is fully executed on
behalf of the Employer and the Union until five years from the date the Employer has opened
all of the Operations covered by this Agreement, or if sooner upon execution of a collective
bargaining agreement or issuance of an interest arbitration award which concludes the
collective bargaining agreement negotiations, either of which explicitly supersedes this
document. The Employer shall notify the Union in writing when it has hired its first three
employees. This Agreement may be extended by mutual agreement of the parties.
15. If any provision of this Agreement is deemed invalid or found to be contrary to law by
a court of competent jurisdiction, such provision shall be of no force or effect; but the
remainder of this Agreement shall continue in full force and effect. The parties shall meet and
negotiate in good faith with respect to any provision found to be in contravention of the law,
not later than fourteen (14) days after a written request to do so by either party with the goal
of addressing the issue raised.
16. In the event of the sale of the licensed medical cannabis and/or adult use cannabis
business, operations covered by this Agreement, and/or in the event of a merger of the
Employer, the Employer will require as a term of the sale or merger that the new owner assume
all the terms of the Employer herein and execute a copy of the instant Agreement with the
Union, in which event the Employer assignor shall be relieved of its obligations hereunder to
the extent that the assignor has fully transferred its right, title, or interest to the Operation and
the Employer has satisfied all outstanding obligations to the Union that arose prior to the sale.
This Agreement will bind all successors to the Employer herein. The Employer will notify the
Union of all applications it submits to the State of California or local entities within 10 days
of filing, the notice will include the name the application is submitted under and the type of
license sought.
1048.0G 501842.3
11
FOR THE
EMPLOYER:
By:
FOR THE UNION:
By:
UFCW Local 770
Title: Title:
Date: Date:
EXHIBIT A
Description of the bargaining unit
The job classifications will include all regular full time and part time employees of the
Employer for location(s) covered under this Agreement. It shall exclude managerial,
supervisory, casual and confidential employees employed by the Employer at the facility
covered by this Agreement. These terms are as defined by the National Labor Relations
Act. Once a full complement of workers is hired, the Employer will notify the Union within
fourteen days of all job titles to be employed.
1048.0G 501842.3
14
EXHIBIT B
Dear Employees:
Blackstone Management Co. LLC has been approached by United Food and Commercial
Workers International Union and its Local UFCW 770. The UFCW is a labor union that
represents cannabis workers throughout California. The Union has expressed an interest in
organizing our employees. We believe that it is in the best interest of our employees, guests, and
clients to resolve the issue of union representation as quickly as possible, and with minimum
disruption.
To avoid a lengthy and disruptive campaign, we have signed a "card check neutrality agreement"
with the Union. This letter will explain some basic terms of this card check neutrality agreement
("the Agreement"). The Agreement gives the Union an opportunity to attempt to organize our
employees. We will provide the Union with a list of employees' names, phone numbers, email
addresses and home addresses where they can contact you.
The card check neutrality agreement guarantees employees the right to form or select a labor
organization to act as their exclusive representative for the purpose of collective bargaining
with their employer, or to refrain from such activity. The decision for you to join or not join
the Union is yours to make. All managers and supervisors will be affirmatively instructed in
their obligations under this agreement.
Union representatives will contact Employees in the near future. The union representative will
explain union representation by the UFCW and will ask each employee if he or she wants to
join the Union. If an employee wants to join the Union they will be asked to sign a card that
states that they want the Union to represent them. By signing this authorization card, the
employee is voting for the Union.
If an outside, neutral third party confirms that the Union has obtained signed cards from a
majority of the employees at this location, we will recognize the Union as the employees'
exclusive collective bargaining representative and will meet with the Union to negotiate in good
faith over a collective bargaining agreement.
I have written this letter to maintain our tradition of open, forthright communication. Again, the
decision of whether or not to join the union is your decision alone.
Sincerely,
15
1048.0G 501842.3
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.
Ascent is 100% percent in favor of hiring Fresno locals, also willing to train its personnel on how
to thrive in a diverse workplace.
Among its measures, Ascent (i) will advertise open positions on Indeed, Glassdoor, Ziprecruiter,
and Monster’s websites and (ii) will participate in local job fairs like Fresno’s Annual Job Fair that
occurs each November. To disseminate notice of job openings outside of the company's immediate
network, Ascent will partner with local Fresno organizations and support their any Social Equity
Job Fair programs uniting people who have been impacted by the War on Cannabis with companies
like Ascent who wish to welcome them in, regardless of cannabis conviction or economic
background.
Ascent will have OVER 30% of employees of local hire at our establishment. We plan on hiring
all local.
2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education
in the field; and
Employee training programs shall be implemented and designed to educate new and existing
employees with the option of 2 weeks of reimbursement tuition annually at community and local
colleges. Time off for Higher Education - We encourage employees to continue their education
and will help facilitate their hours if they are taking courses. Commitment to offer apprenticeships
16
and/or compensation for continuing education in the field of business, legal, cannabis, financial
and personal growth, etc.
2.8.3. Commitment to pay a living wage to its employees.
Ascent is a Commercial Cannabis Business committed to offering employees a Living Wage. We
believe that paying employees an above-market living wage and investing their education and
training will increase their productivity and personal career satisfaction. To this end, Ascent will
compensate for an hourly wage of dollars per employee with a 3% increase of salary per
year. Assistant Management positions will be paid an annual salary of 0 with a 3%
increase per year and upper Management will be paid an annual salary of with a 3%
increase per year. Employees will log into and carry tablets or other mobile devices to facilitate
customer sales. Beyond sales, these tablet devices will also alert employees and their managers of
all state and locally mandated breaks, lunches, etc. and will track employee work periods,
including overtime so that every employee receives their correct salaries & wages.
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.
Ascent is willing to serve as a Social Equity Business Incubator and prides itself on the depth and
diversity of both its team and its advisory board, a group combining seasoned veterans of the
cannabis industry with a collection of emerging leaders. With this team, Ascent can offer great
experiences and knowledge in the form of education and mentorship.
In addition to modernizing cannabis retail, Ascent differs from its competition because it regards
itself as a socially conscious business and a conscientious stakeholder in the surrounding
community—nurturing its customers, re-investing in its employees, boosting neighboring
businesses, and above all, creating a bond with local citizens. Indeed, Ascent’s mission propels it:
to eliminate the taboos surrounding cannabis and to build a socially conscious entity that will
include, inspire, and will act locally as a force for the common good.
With Robert Calvert as the co-founder and CEO of Ascent and his donations for the last 10 years
to the local Highschool Scholarship Fund. Robert is not just giving back to the community he is
part of the community. These types of commitment will be continued in the work of Ascent for
the City of Fresno
Mentorship programs
Ascent will offer a mentorship program for local cannabis businesses to share knowledge of the
cannabis industry. The Ascent mentorship program is a 6-month program for local cannabis
businesses. The mentorship program will include monthly follow-ups and advice when
17
needed. The mentoring program is for helping cannabis businesses to be more successful in their
overall business and get a better knowledge of the industry.
Mentorship
The board of Ascent will anticipate the mentor programs for local cannabis businesses to share
their knowledge of the industry and offer 6 months dedicated to the mentoring program for
businesses. The knowledge from the previous dispensary business and startup will be applied and
serves as general assistance in medicinal cannabis issues and serve the purpose of developing a
further understanding for medicinal use and handling of medicinal cannabis patients.
Training
Ascent will provide practical training in different programs and create awareness about the
cannabis business. In the mentorship programs, there will also be training that the business can
attend to in areas such as legal, business development, business financial counseling, and more.
Equipment donation
In the mentorship program, the companies that are participants will be given business equipment
as a donation from Ascent. Annually donations will be given out in the form of excess equipment.
Legal assistance and financial services assistance
The companies can access Ascent Financial and Legal assistance when they have any need in their
business and use the company knowledge.
1
7. COMMUNITY BENEFITS AND INVESTMENTS PLAN Criteria required in Phase III
7.1. The CCB Application should describe the social responsibility plan.
Ascent views its business as a ripe opportunity to lead through service. Service to our employees,
service to our community, service to our suppliers, and service to the planet. While it is important
that our business does well, it is equally important that we also do good and realize o ur brand’s
promise to provide cannabis with a conscience.
Ascent’s core values naturally align with Fresno’s esteem for excellence, tradition, and integrity.
The founding team members at Ascent, Robert Calvert and Paul Rudder prize kindred values. At
Ascent, we regard the Cannabis business as the next step in the evolution of the retail cannabis
market. We view Fresno’s long-awaited decision to adopt a legal cannabis program as evidence
that it believes in the power of cannabis as a healing plant and is looking for innovative, values-
driven companies, like Ascent, to bring the program to life.
1. The Ascent Ability Initiative: Many physically disabled people who live life in a
wheelchair or who use a walker experience chronic muscle and joint pain that cannabis can
alleviate. Ascent will partner with Fresno’s Accessibility & Disability division to create an
awareness program to instruct disabled residents on the value of cannabis in relieving pain and
related symptoms. Ascent’s founding team, donating their personal resources and time to educate
disabled participants.
2. The Ascent Senior Health Initiative: Senior citizens are the fastest-growing consumer
demographic for cannabis and CBD products in the United States, and a key demographic of the
Fresno Community. Along with overcoming cannabis' stigma, Ascent will patiently answer their
questions and address their concerns. To do so, Ascent will collaborate with the Fresno Senior
Centers such as Care Source Seniors & Clovis Senior Activity Center to author best practices for
engaging the Fresno senior community and for offering access to safe, tested cannabis and CBD
products. Ascent will reward all Seniors with loyalty points, so they can enjoy the tax incentive
discount. After the visit, staff will give a tour of the Ascent retail store and demonstrate the best
products for various senior health goals while showing new senior customers how they can activate
their Ascent Senior Discount Card.
3. Ascent Youth Initiative. Ascent’s founding team believes in the Native American philosophy
of considering our actions for the next seven generations. Ascent chooses to start with the
generation of young people in the Fresno community in a two-fold initiative. The first aspect of
the initiative addresses children in food-insecure households. Many people don't realize that 1 in
6 children in Fresno, goes to bed hungry at least three times per week. To this end, Ascent Fresno
will partner with the Fresno Regional Food Banks Programs. This program helps to close the gap
for children who get most of their nutrition from free and reduced-price school lunch
programs. Giving a pack of food to each child in the program that contains simple nonperishable,
kid-friendly food that equals six meals of simple nutritious food. Ascent will measure the impact
of the number of meals given per month.
2
The second aspect of the Initiative is a youth diversion cannabis education campaign for high
school and college-aged youth in the Fresno community. As legal cannabis becomes normalized
in more states, a confusing message is sent to youth. They see billboards and social media ads
describing cannabis as a medicine. However, recent research suggests that young adults under the
age of 24 should not consume THC regularly. To address this, Ascent Fresno will partner with a
non-profit with a history of providing effective public health education, drug intervention
advocacy, and policy development. Ascent's founder will help to create a Fresno Cannabis Youth
Diversion campaign that will consist of presentations & discussion circles at local high schools
and community colleges and an infographic driven social media campaign to educate Fresno's
youth on waiting to consume cannabis until their mid-20s.
4. The Ascent Homeless Initiative. Homelessness is a complex, difficult, and vexing problem
faced by Fresno and many other cities. While California and its cities are becoming famous in the
cannabis industry as being the "world's largest market", Fresno also has one of the largest homeless
populations per capita than many metropolitan cities in the US. As homelessness is a key issue
that the city of Fresno is addressing with a compendium of non-profit organizations, Ascent is
joining the effort and partnering with The Poverello House, Fresno First Steps Home, and
HandsOn Central California, a community organization focused on rehabilitating families
experiencing homelessness and keeping them off the streets. It uses a unique combination of life
skills development, job training, and assistance & family counseling to help the parents graduate
from its program. Ascent Fresno will contribute time, help raise money through our community,
and collect donations. for these 3 amazing organizations.
5. The Ascent Social Equity Initiative. As mentioned, Ascent's founders have actively shaped
Mammoth’s cannabis social equity policy and care deeply about integrating those disenfranchised
and stigmatized by the War on Cannabis into the legal industry. To this end, Ascent will seek to
hire social equity candidates. Ascent will also select one female social equity qualified individual
per year for a living wage paid internship/mentorship program that will offer her the business skills
and social network to start her own cannabis business. This individual will spend significant time
shadowing Ascent's CEO, Robert Calvert, and learning the ropes of cannabis entrepreneurship and
leadership. Finally, Ascent will host quarterly expungement clinics in its off-site Education Center
and offer free legal services to have cannabis records expunged in accordance with the provisions
of Proposition 64.
7.1.1 Providing funding for or hosting expungement clinics or outreach services.
To be of service to the Fresno community, Ascent intends to launch community social impact
initiatives to serve five of the city's most vulnerable populations: (i) physically disabled (ii) senior
citizens (iii) youth related to drugs and drug addiction (iv) the homeless, and (v) victims of the
cannabis prohibition era and its racially selective enforcement measures.
Ascent’s founder and legal advisor, Robert Calvert will work to bring individuals affected by the
war on cannabis into the newly regulated market by offering them job opportunities & training and
by hosting a quarterly cannabis conviction expungement clinic at the Ascent Fresno education
center. The primary service of the Expungement Clinic is to expedite the clearance of criminal
3
records that are creating barriers to services, employment, and housing, and Ascent aims to help
decrease those cases.
The business or cannabis retail business will develop a city-approved public outreach and
education program for youth organizations and educational institutions that outlines the risks of
youth use of cannabis, and that identifies resources available to youth-related to drugs and drug
addiction.
7.1.2 Incorporating an environmentally sustainable business model including energy-
efficient buildings and vehicles.
The facility will be a closed system with high technology environmental controls employing
negative air pressurization to eliminate the exchange of air. Exhausted air will be filtered, with any
odors neutralized. We apply cleanroom standards to all areas of the facility. This is especially
important in the dispensing process, which all require a clean, sterile environment to provide the
utmost assurance that our products are of top quality. Clean rooms ensure minimal and controlled
levels of contaminants and are governed by a set of procedures managed through specific cleaning
methods and air filtration devices. These measures ensure we have the cleanest and safest
environment to dispense cannabis. All ventilation equipment and all safety equipment within the
facility must be routinely inspected and tested to ensure they are in good working order at all times.
The buildings continually maintain the premises and its infrastructure so that it is visually attractive
and not dangerous to the health, safety, and general welfare of employees, patrons, surrounding
properties, and the general public. The premises shall not be maintained in a manner that causes a
public or private nuisance. Litter will be removed daily from the premises, including adjacent
public sidewalks and all parking lots under the control of the cannabis retail business or
commercial cannabis business; these areas must be swept or cleaned, either mechanically or
manually, on a weekly basis to control debris; upkeep and operating characteristics must be
compatible with abutting properties and the surrounding neighborhood.
Also, as we have done in our affiliate facility, Ascent will maintain the cleanliness of its buil ding
and all equipment used to transport, store, or display cannabis or cannabis products. To ensure
this, we will require all agents and employees to be thoroughly trained on the standard operating
procedures, which have been adopted, and modified accordingly, from our affiliates and have been
operating without incident for years in full compliance with all regulations and environment. The
building will be supported with energy sufficient material and interior such as energy-saving light
bulbs and censored lighting for less usage of electricity, which will be regularly maintained by the
employee on a daily basis. To ensure the maintenance for energy sufficiency, a follow up will be
done by the Owner(s) every 6 months.
7.1.3 Utilizing vacant buildings, brownfields land, or blighted areas of the
the city for the business.
**NOT APPLICABLE**
4
7.2. Describe the Commercial Cannabis Business plan to develop a public health
outreach and educational program that outlines the and that identifies resources availab le
to youth-related to drugs and drug addiction.
To be of service to the Fresno community, Ascent intends to launch community social impact
initiatives to serve five of the city's most vulnerable populations: (i) physically disabled (ii) senior
citizens (iii) youth related to drugs and drug addiction (iv) the homeless, and (v) victims of the
cannabis prohibition era and its racially selective enforcement measures.
Our Initiative is a youth diversion cannabis education campaign for high school and coll ege-aged
youth in the Fresno community. As legal cannabis becomes normalized in more states, a confusing
message is sent to youth. They see billboards and social media ads describing cannabis as a
medicine. However, recent research suggests that young adults under the age of 24 should not
consume THC on a regular basis. To address this, Ascent Fresno will partner with a non -profit
with a history of providing effective public health education, drug intervention advocacy, and
policy development. Ascent's founder will help to create a Fresno Cannabis Youth Diversion
campaign that will consist of presentations & discussion circles at local high schools and
community colleges and an infographic driven social media campaign to educate Fresno's youth
on waiting to consume cannabis until their mid-20s.
7.3. Describe whether the Business plans to contribute to the Fresno Community
Reinvestment Fund established to support local cannabis equity businesses.
Ascent plans on offering legal services and business administration, and technical assistance to
Fresno Community Reinvestment Fund. Ascent's team believes in the power of businesses
working together to support each other's economic growth and to affect community change. Ascent
will actualize this belief via the following strategies:
Upon award of licensure, Ascents Fresno will join the Fresno Chamber of Commerce and start a
Cannabis Business Unit with the other newly licensed businesses to work together as one voice in
the City of Fresno. With the help of licensed distributors, Ascent Fresno will exhibit a purchase
preference for cannabis products grown by licensed Fresno cultivators.
Ascent Fresno also will endeavor to select local Fresno suppliers for building materials and service
vendors during the build-out of its Fresno store.
The purpose of this Development Code is to implement the General Plan and, if applicable,
operative plans, to protect and promote the public health, safety, peace, comfort, convenience,
prosperity, and general welfare of the City of Fresno. More specifically, the Development Code is
adopted to achieve the following, consistent with the goals, objectives, and policies of the General
Plan and any other operative plan:
A. To provide a precise guide for the physical development of the city in a manner as to
progressively achieve the arrangement of land uses depicted in the General Plan.
B. To foster a harmonious and workable relationship among land uses and ensure compatible
infill development.
5
C. To support economic development and job creation.
D. To provide for the housing needs of all economic segments of the community.
E. To promote high-quality architecture and sustainable design. Sustainable Design is a
philosophy that seeks to maximize the quality of the built environment while minimizing
or eliminating negative impacts on the natural environment.
F. To promote the stability of existing land uses that conform to the General Plan, protecting
them from inharmonious influences and harmful intrusions.
G. To promote a safe and efficient traffic circulation system, including bicycle facilities and
pedestrian amenities, and to support a multi-modal transportation system.
H. To facilitate the appropriate location of community facilities, institutions, parks, and
recreational areas.
I. To protect and enhance real property values.
J. To safeguard and enhance the appearance of the city.
K. To define the duties and powers of governing bodies and officials responsible for the
implementation of this Code.
1
6. LOCATION
6.1 In addition to the location-related details provided in the Commercial Cannabis Business
(CCB) Application pages 1-7 the application shall include a thorough description of the proposed
location, including but not limited to the overall property, building, and the floor plan.
444 N. Blackstone Ave. - This 3500 Square foot building is situated in a prime location at 444
North Blackstone Ave., just 1 block south of CA-180 and a 1/2 mile to the west of CA-
41. Located on the boarder of the Lowell and Jefferson Districts, just north of Downtown, we’re
excited to have this opportunity to be contributing member to the community.
This building location has street frontage of almost 60’. With plenty of parking out front and a
secure, well-lit parking lot in the rear, there will be plenty of options for our customers to access
our location.
Inside our building you will find a secure and well-lit experience with 10’ ceilings and a state-of-
the-art retail environment offering over 800 different products for our customers. With plenty of
room in our building, the customer experience will be a welcoming experience and non-threatening
where everyone can shop at their leisure. Customers will enter our secured lobby and find a
welcoming check in area. From there, they will enter into our retail store for an unreal experience
that is superior in our industry. Knowledgeable staff can provide assistance to those that request
it. When the customers have completed their transaction, they can depart with confidence and the
level of comfort because of the safe environment the is provided by our team.
2
444 N. BLACKSTONE AVE.
FRESNO, CA 93650
CANNABIS PERMIT APPLICATION
12.02.2020
BLACKSTONE AVE RETAIL STORE
PREMISE DIAGRAM
3
5
6.2 Include at least 1 photograph
6
7
6.3 Premises Site Diagram
444 N. BLACKSTONE AVE.
FRESNO, CA 93650
CANNABIS PERMIT APPLICATION
12.02.2020
BLACKSTONE AVE RETAIL STORE
PREMISE DIAGRAM
8
6.3.1 A premises site diagram
9
444 N. BLACKSTONE AVE.
FRESNO, CA 93650
CANNABIS PERMIT APPLICATION
12.02.2020
BLACKSTONE AVE RETAIL STORE
PREMISE DIAGRAM
10
1
3. NEIGHBORHOOD COMPATIBILITY PLAN
3.1 Describe how CCB will proactively address and respond to complaints related to noise,
light, odor, litter, vehicles and pedestrian walk.
3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having
impacts on its neighbors and the surrounding community.
3.3 Describe odor mitigation practices
Having a number of affiliates located in densely populated areas, we understand the need to control
odors and to provide clean and sanitary airflow throughout the facility and the surrounding areas
of our facility. To ensure this, our facility will be equipped with HEPA air filters, other air filtration
devices, and bioconversion systems, that are designed with Photocatalytic reactors. These
preventive systems are designed to oxidize all VOCs (volatile organic compounds) such as fungal
and microbial diseases from the air, as well as removing undesirable organic odors, while not
visible in the design, Ascent will install at least eight 12" carbon filter air scrubbing units from the
company Mountain Air Filters, which have been demonstrated by the team's past experience to
work extremely well in controlling odor. These filters are specifically designed to eliminate
cannabis odor and are whisper quiet so they won't obtrude on the customer's experience.
The facility will be a closed system with high technology environmental controls employing
negative air pressurization to eliminate the exchange of air. Exhausted air will be filtered, with any
odors neutralized, We apply cleanroom standards to all areas of the facility. This is especially
important in the dispensing process, which all require a clean, sterile environment to provide the
utmost assurance that our products are of top quality Clean rooms ensure minimal and controlled
levels of contaminants and are governed by a set of procedures managed through specific cleaning
methods and air filtration devices. These measures
ensure we have the cleanest and safest environment to dispense cannabis. All ventilation
equipment and all safety equipment within the facility must be routinely inspected and tested to
ensure they are in good working order at all times.
In addition, as we have done in our affiliate facility, Ascent will maintain the cleanliness of its
building and all equipment used to transport, store, or display cannabis. To ensure this, we will
require all agents and employees to be thoroughly trained on the standard operating procedures,
which have been adopted, and modified accordingly, from our affiliates and have been operating
without incident for years in full compliance with all regulations. Standard operating procedures
include daily, weekly, and monthly cleaning requirements of the facility and all fixtures with the
goal of maintaining a dean, sanitary, and professional-looking facility reminiscent of a high-end
pharmacy or medical office. According to the protocol, the facility supervisor will oversee all
2
cleaning and sterilization activities and will inspect the work of employees to ensure our goals are
met.
3.4 Identify potential sources of odor
We have identified that the secured vault area where we store cannabis product as well as the
retail areas will be potential sources of odor. However with the above mentioned mitigation
practices we anticipate little to no odor in the surrounding community.
3.5 Describe odor control devices and techniques to ensure odors from cannabis are not
detectable beyond the permitted premises.
Having a number of affiliates located in densely populated areas, we understand the need to control
odors and to provide clean and sanitary airflow throughout the facility and the surrounding areas
of our facility. Air scrubbers will be used as well as the items below. To ensure this, our facility
will be equipped with HEPA air filters, other air filtration devices, and bioconversion systems, that
are designed with Photocatalytic reactors. These preventive systems are designed to oxidizeall
VOCs (volatile organic compounds) such as fungal and microbial diseases from the air, as well as
removing undesirable organic odors, While not visible in the design, Ascent will install at least
eight 12" carbon filter air scrubbing units from the company Mountain Air Fil ters, which have
been demonstrated by the team's past experience to work extremely well in controlling odor. These
filters are specifically designed to eliminate cannabis odor and are whisper quiet so they won't
obtrude on the customer's experience.
The facility will be a closed system with high technology environmental controls employing
negative air pressurization to eliminate the exchange of air. Exhausted air will be filtered, with any
odors neutralized, We apply cleanroom standards to all areas of th e facility. This is especially
important in the dispensing process, which all require a clean, sterile environment to provide the
utmost assurance that our products are of top quality Clean rooms ensure minimal and controlled
levels of contaminants and are governed by a set of procedures managed through specific cleaning
methods and air filtration devices. These measures we have the cleanest and safest environment to
dispense cannabis. All ventilation equipment and all safety equipment within the facility m ust be
routinely inspected and tested to ensure they are in good working order at all times.
3.6 Describe all proposed staff odor training and system maintenance.
We will bring in a facilities management contractor who will come in and train all staff members
1 time per quarter to make sure that they understand how to use and understand system
maintenance systems. We will also train them in full on odor training to make sure all doors are
closed and that security keeps the front door and back door open short time as possible to eliminate
odors from the front and back entrances.
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3.7 Waste Management Plan
1. Waste Management. Applicant will dispose of all waste, including cannabis waste, in
accordance with the Public Resources Code and any other applicable state and local laws,
including laws regulating “organic waste” as defined in Public Resources Code section 42649.8(c).
Applicant will be responsible to properly evaluate waste to determine if it should be designated
and handled as a hazardous waste, as defined in section 40141 of the Public Resources Code.
2. Cannabis Waste Tracking. Standardized cannabis waste management procedure is for
the Applicant to use the Track-and-Trace system to record in the Track and Trace system all
commercial cannabis activity involving the destruction and disposal of cannabis waste by
designated Employees, under the supervision of Management and under the observation of the
video surveillance system. ”Cannabis waste” is waste that contains cannabis or cannabis products.
3. Track-and-Trace Data Entry. Applicant will report all cannabis waste activities, up to
and including disposal, into the track and trace system, as required by the Code of Regulations,
including:
Name and type of the cannabis goods.
Unique identifier of the cannabis goods.
Amount of the cannabis goods, by weight or count, and total wholesale cost of the
cannabis goods, as applicable.
Date and time of the activity or transaction.
The name of the employee performing the destruction or disposal.
The reason for destruction and disposal.
The entity disposing of the cannabis waste.
4. All cannabis goods intended for disposal as cannabis waste will have all of the cannabis
products removed from any packaging and made unrecognizable and unusable as cannabis or a
cannabis product at the time of disposal. With exception, that any waste vape cartridges may not
be emptied of cannabis oil prior to disposal provided that the vape cartridge is itself unrecognizable
and unusable at the time of disposal as authorized by Code of Regulations Section 40290.
5. Security Monitoring. All cannabis waste activity is performed under a video surveillance
camera which records the cannabis waste transfer process onto the video surveillance data recorder
maintained by the Applicant.
6. Weight of Cannabis Waste. Cannabis waste will be weighed on an approved scale before
transport and documented in the statewide track and trace program.
7. Process. The Applicant’s employees will obtain from the cannabis waste disposal
company, a certified weight ticket/receipt documenting the removal of the cannabis waste from
Applicant’s premises to the delivery of the cannabis waste to licensed solid waste facilit y. The
weigh ticket will indicate the amount of cannabis waste received and will be entered into the Track-
and-Trace system to ensure that the amount waste removed from the Applicant’s premises is the
same amount of cannabis waste that enters into the landfill. The certified weight ticket/receipt will
be maintained as a record of the Applicant at the premises for a period of seven years.
8. No composting is done at the Premises.
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9. Removal of Packaging. All cannabis waste is removed from its packaging prior to being
transported for disposal. All cannabis waste is made unrecognizable and unusable by the Waste
Hauler.
10. Limited Access. Applicant stored the cannabis waste destined for disposal in a secured
locked waste receptacle which is in a secured area in the premises. Physical access to the secured
waste receptacle and secured area is restricted to the Applicant and authorized Emplo yees who
enter by key card access, and the Waste Hauler. Applicant employees provide the licensed waste
hauler access to the secure area and the secured container which contains the cannabis waste during
its regularly scheduled pickup day. Public access to the designated secured waste receptacle or the
secured area is prohibited.
11. Waste Hauler. The Applicant will utilize a waste hauler permitted by a local agency, to
collect and process cannabis waste. We will hire a local Fresno management company as soon as
one becomes available.
Waste Hauler: EcoWaste Service, Inc.
Address: 2025 N. Glenoaks Blvd., Suite 204, Burbank, CA 91504.
Telephone: (747) 216-2777
Contact: Arman Zeytounyan
12. Documentation. Applicant will obtain and maintain a record of documentation from the
entity hauling the waste that indicates the date and time of each collection of cannabis waste at the
licensed premises; and obtain a copy of the certified weight ticket or other documentation prepared
by the entity hauling the waste confirming receipt of the cannabis waste at one, or more, of the
following solid waste facilities:
(A) A manned, fully permitted solid waste landfill or transformation facility;
(B) A manned, fully permitted composting facility or manned composting operation;
(C) A manned, fully permitted in-vessel digestion facility or manned in-vessel digestion
operation;
(D) A manned, fully permitted transfer/processing facility or manned transfer/processing
operation; or
(E) A manned, fully permitted chip and grind operation.
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5. SECURITY PLAN
5.1 The security Plans shall be prepared and/or assessed by a professional security consultant.
Security Experience
5.2 Premises Security Diagram
5.2.1 Premises Security Diagram
5.2.2 Premises Security Diagram