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HomeMy WebLinkAboutC-20-92 Fresh Farms RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-92 Submitted On: Dec 04, 2020 Applicant Thomas Wood 559-296-2333 Applicant (Entity) Name: TYL Business Solutions Inc. DBA: Fresh Farms Physical Address: 3217 Carson St Unit 333 City: Lakewood State: CA Zip Code: 90712 Primary Contact Same as Above? Yes Primary Contact Name: Thomas Wood Primary Contact Title: CEO Primary Contact Phone: 559-296-2333 Primary Contact Email:HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: Yes Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Retail (Storefront) Business Formation Documentation: Corporation Property Owner Name: Shawstone Tenants In Common Proposed Location Address: 4931 N. Blackstone Ave City: Fresno State: CA Zip Code: 93726 Property Owner Phone: 559-650-1202 Property Owner Email: -- Assessor's Parcel Number (APN): 425-092-30 Proposed Location Square Footage: Supporting Information Application Certification Owner Information 11000 List all fictitious business names the applicant is operating under including the address where each business is located: -- Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? Yes If so, please list and explain: Thomas Wood, Sigrid Lopez, Damaris Graibe and Candy Heredia - Retail in City of Stanton 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 CEO Please note: the issuance of a permit will be determined based on the application you submit and any major changes to your business or proposal (i.e. ownership, location, etc.) after your application is submitted may result in a denial. All applications submitted are considered public documents for Public Records Act request purposes. For details about the information required as part of the application process, see the Application Procedures & Guidelines, City of Fresno Municipal Code Article 33 and any additional requirements to complete the application process. All documents can be found online via this link. For questions please contact the City Manager’s Office at 559.621.5555. Owner Name: Thomas Wood Owner Title: CEO Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 1 SECTION 1 – BUSINESS PLAN ...................................................................................... 3 1.0 – Organizational Chart ....................................................................................................... 4 1.1 – Owner Qualifications ...................................................................................................... 5 1.2 – Startup Costs ................................................................................................................ 12 1.3 – Proof of Capitalization ................................................................................................... 14 1.4 – Financial Proforma ....................................................................................................... 17 1.5 – Opening / Closing Procedures ................................................................................... 22 1.6 – Day-to-day Operations ................................................................................................ 27 1.6.1 i. – Customer Check-In ............................................................................................ 27 1.6.1 ii. – Receiving Deliveries ......................................................................................... 31 1.6.1 iii. – Point of Sale ...................................................................................................... 35 1.6.1 iv. – Customer Count ............................................................................................... 39 1.6.1 v. – Product Line ...................................................................................................... 40 1.6.1 vi. – Delivery Procedures ......................................................................................... 44 SECTION 2 – POLICY & LOCAL ENTRPRISE PLAN .................................................... 49 2.1 – Living Wage .................................................................................................................. 50 2.2 – Employee Benefits ....................................................................................................... 52 2.3 – Training & Education .................................................................................................... 55 2.4 – Social Policy Recruitment ............................................................................................ 60 2.5 – Local Enterprise............................................................................................................. 62 2.6 – Staff Positions ................................................................................................................ 67 2.7 – Labor Peace Agreement ............................................................................................. 70 2.8 – Workforce Plan .............................................................................................................. 71 2.8.1 – Local Hiring .............................................................................................................. 71 2.8.2 – Apprenticeships / Industry Training ..................................................................... 73 2.8.3 – Living Wage ............................................................................................................. 75 2.9 – Social Equity Business Incubation ............................................................................. 75 SECTION 3 – NEIGHBORHOOD COMPATIBILITY PLAN ............................................ 77 3.1 – Complaints ..................................................................................................................... 78 3.2 – Nuisances ...................................................................................................................... 82 3.3 – Odor Mitigation Practices ........................................................................................... 84 3.4 – Odor Sources ........................................................................................................... 85 3.5 – Odor Control ............................................................................................................. 86 3.6 – Odor Control Training & Maintenance .................................................................. 88 3.7 – Waste Management .................................................................................................. 89 Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 2 SECTION 4 – SAFETY PLAN ........................................................................................ 93 4.1 – Safety Plan Preparation ................................................................................................ 94 4.2 – Accident & Incident Reporting .................................................................................... 97 4.3 – Evacuation Routes ..................................................................................................... 100 4.4 – Fire Suppression ........................................................................................................ 102 4.5 – Emergency Training ................................................................................................... 107 SECTION 5 – SECURITY PLAN .................................................................................. 111 5.1 – Security Plan Preparation .......................................................................................... 112 5.2 – Security Premises Diagram ....................................................................................... 114 5.2.1; 5.2.2 – Premises Diagram .................................................................................... 117 5.2.3 – Cannabis Activities .............................................................................................. 119 5.2.4 – Limited Access Areas .......................................................................................... 122 5.2.5 – Video Surveillance .............................................................................................. 125 5.3 – Alarms & Monitoring ................................................................................................... 129 5.4 – Cash Handling ............................................................................................................. 132 5.5 - Security Officers ......................................................................................................... 135 5.5.1 – Number of Guards .............................................................................................. 138 5.5.2 – Guard Hours ........................................................................................................ 138 5.5.3 – Security Officer Positions .................................................................................. 139 5.5.4 – Security Officer Roles & Responsibilities ......................................................... 141 SECTION 6 – LOCATION ............................................................................................ 147 6.1 – Property Description .................................................................................................. 148 6.1 – Property Description ............................................................................................... 148 6.1 – Floorplan ................................................................................................................... 150 6.1 – Design ........................................................................................................................ 151 6.2 – Exterior Photographs & Renderings ......................................................................... 155 6.3 – Premises Diagrams .................................................................................................... 158 SECTION 7 – COMMUNITY BENEFITS & INVESTMENT PLAN ................................. 159 7.1 – Social Responsibility Plan ......................................................................................... 160 7.1 i. – Fresno Non-Profits ................................................................................................ 160 7.1 ii. – Local Participation ............................................................................................... 163 7.1 iii. – Local Business Partnerships .............................................................................. 165 7.1.1 – Legal Outreach Services ..................................................................................... 166 7.1.2 – Sustainable Business Practices .......................................................................... 167 7.1.3 – Community Revitalization ..................................................................................... 169 7.2 – Public Health Educational Outreach ........................................................................ 170 7.3 – Community Reinvestment Fund ................................................................................... 173 Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 3 SECTION 1 : Business Plan SECTION 1 – BUSINESS PLAN ...................................................................................... 3 1.0 – Organizational Chart ....................................................................................................... 4 1.1 – Owner Qualifications ...................................................................................................... 5 1.2 – Startup Costs ................................................................................................................ 12 1.3 – Proof of Capitalization ................................................................................................... 14 1.4 – Financial Proforma ....................................................................................................... 17 1.5 – Opening / Closing Procedures ................................................................................... 22 1.6 – Day-to-day Operations ................................................................................................ 27 1.6.1 i. – Customer Check-In ............................................................................................ 27 1.6.1 ii. – Receiving Deliveries ......................................................................................... 31 1.6.1 iii. – Point of Sale ...................................................................................................... 35 1.6.1 iv. – Customer Count ............................................................................................... 39 1.6.1 v. – Product Line ...................................................................................................... 40 1.6.1 vi. – Delivery Procedures ......................................................................................... 44 Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 4 Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 5 Section 1.1 – Owner Qualifications We are a local, Fresno County organization with deep roots in the cannabis industry. Our founder, Thomas Wood is a long-time Fresno County resident and has been active in the cannabis industry for the last ten years. Thomas has created an ownership team of industry professionals to ensure that Fresh Farms operates with the highest degree of safety and compliance. Our ownership structure has been devised to ensure that experienced operators are at the helm of business logistics, compliance, and in-store procedures, while local owners and a local workforce are properly representing the local climate in our staffing, neighborhood compatibility, and community engagement activities. Combined, our ownership and management teams have over 50 years in the regulated cannabis industry in retail, cultivation, manufacturing, and distribution and all hold licenses in good standing with their respective regulatory agencies. By granting licenses to individuals with experience as well as other licenses in their portfolio, cities can enter into long-term stable relationships with commercial cannabis businesses. Supplementing our ownership and management teams is a support staff that shares a similar distribution of individuals with experience and local residency. We intend for these two groups to integrate seamlessly in our workforce, creating a two-way path of education and enrichment. Local residents will benefit from professional training staff supported by large volumes of training materials on an integrated electronic platform and in return will be assisted in integrating into the community we serve. Legal Business Name Jurisdiction Expiration License Number License Type Green Health Industries, LLC Baldwin Park, CA 3/16/2021 CDHP-10004121 Manufacturing Green Health Industries, LLC Baldwin Park, CA 1/15/2021 CCL19-0004892 Cultivation Sinsemilla Indo Group, Inc.Maywood, CA 8/12/2021 C12-0000238-LIC Microbusiness Higher Level of Care High Desert 6/9/2021 C10-0000149-LIC Retail SHL, El Monte, LCC El Monte, CA n/a (Local Approval)Retail SIG – El Monte, LLC El Monte, CA n/a (Local Approval)Retail Westside Hyde Project, LLC Los Angeles, CA 11/18/2021 CCL19-0003834 Cultivation Westside Hyde Project, LLC Los Angeles, CA 5/28/2021 C11-0000198-LIC Distribution Westside Hyde Project, LLC Los Angeles, CA 5/28/2021 CDPH-10003329 Manufacturing Westside Hyde Project, LLC Los Angeles, CA 5/28/2021 LC-C-001272-APP Non-Storefront Imperial Project, LLC Los Angeles, CA 11/21/2021 CCL19-0003836 Cultivation Imperial Project, LLC Los Angeles, CA 6/6/2021 CDHP-10003385 Manufacturing Imperial Project, LLC Los Angeles, CA 5/25/2021 C11-0000175-LIC Distribution LA Fresh Farms Los Angeles, CA n/a BTRC: 0003071303-0001-2 Retail LA Fresh Farms Los Angeles, CA 6/22/2021 CCL19-0005387 Cultivation Empire Health and Wellness Empire, CA 6/2/2021 C10-0000106-LIC Retail & Production SIGRIDLOPEZ BRIAN STIPPEY TRAVISMILLER DAMARISGRAIBE KYLE KELLEY Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 6 My name is Thomas Wood and I will be serving as General Manager and majority owner for Fresh Farms Fresno. I have lived in Fresno County since 2010, but I was born in Philadelphia, Pennsylvania. Growing up, I inadvertently travelled the world as my father was a dedicated member of the armed forces and we moved every two to four years. During my youth, I had the please to live all over the country, interact with individuals from every imaginable circumstance, and was even able to explore Wellington, New Zealand and Honolulu, Hawaii for my father’s last two assignments before retiring from the military. We then moved to San Antonio, Texas where I attended middle school, high school, and undergraduate college. Every summer as a young boy I would work on my Grandmas dairy farm in Amalga Utah with my two younger brothers and cousins. Milking cows twice a day, bottle feeding calves, cleaning pens, and disking fields. It was here that my passion but also my proclivity for cultivation began. It wasn’t until 1999, at the age of 21, that I began my education in cannabis cultivation techniques. After finishing my cannabis education, in 2009, I decided to move to California to pursue my dreams. I am a lifetime a skilled cultivation consultant and facilities manager who has developed, built, and overseen multiple large-scale cannabis cultivation operations throughout California. Specializing in cultivation biology, I understand the proven methodologies behind cannabis cultivation and have improved upon them throughout his years in the industry, which has given me an immense amount of respect for the product and the industry. I offers an extensive resume of theoretical and practical cannabis research experience in plant genetics, soil biology, supply chain logistic, sustainable remediation, and cultivation from germination to storage and point of sale. Along with a deep mastery of cultivation science, I have served as a supervising facilities manager, managing a staff of 20 employees and guiding best practices to guarantee a prime environment for science- backed cultivation, employee safety, and a superior customer experience. I was integral in developing facilities and operations plans for Perpetual Harvest cannabis operation, personally handling sourcing all equipment and inventory, and leads regular facility inspections to maintain the highest possible cultivation standards in the industry. As a lifetime area resident, Thomas will be committed to ensuring that Fresh Farms is a Fresno brand that represents not only the city, but the greater metropolitan area. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 7 PROFESSIONAL EXPERIENCE Fresh Farms Fresno, Ca Director of Operations 2020 - present 562 Discount Med Long Beach, Ca Chief Operating Officer 2019 - present The second Latina in Los Angeles county to be fully certified and permitted as a legal Cannabis micro business with retail. Largest Dispensary in the South East of Los Angeles Green Health Industries Baldwin Park, Ca President/CEO 2000 - present Overseeing compliance analytics covering all aspects of shipping, inventory, sales team, distribution center, white label packaging and delivery. Sinsemilla Indo Group Maywood, Ca President/CEO 2017 - present Providing strategic-level operational guidance for a highly successful cannabis dispensary in the affluent Belmont Shore neighborhood of Long Beach, particularly on strategic partnerships and opportunities for expansion. EDUCATION COMMUNITY INVOLVEMENT • Rio Hondo High School • Los Angeles Regional Foodbank • YMCA Events Sigrid Lopez SIGRID LOPEZ is an entrepreneurial and a driven Chief Executive in the cannabis industry and founder of multiple cannabis microbusinesses with an ever- expanding retail presence. Sigrid Lopez was the only the second Latina in Los Angeles County to be fully certified and permitted as a legal Cannabis micro business with retail and currently operates the largest dispensary in Southeast Los Angeles. Through her time in the industry, Sigrid has developed the most expansive and comprehensive standard operating procedures in the industry that outline every aspect of business operations including cash handling, customer retention, and software access. Sigrid has provided strategic-level operational guidance for highly successful cannabis dispensaries in working class neighborhoods and is looking to bring her expertise to Fresno. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 8 My name is Sigrid Lopez, and I will be serving as Director of Operations for Fresh Farms. I have leveraged my experience in regulated cannabis to create some of the most extensive standard operating procedures and training manuals in the industry for our Fresno business and look forward to showing the City of Fresno how a meticulously- run cannabis business should operate. Currently, I am an entrepreneurial and driven chief executive in the cannabis industry and founder of multiple cannabis microbusinesses with an ever-expanding retail presence, but I came from much more meager means. As long-time industry professional, I began my career in staff training and compliance in 2014 in several Los Angeles pre-ICO retail cannabis businesses where I started creating training and education modules for the industry. In 2016, I founded and still serve as president and CEO of Green Health Industries, LLC in Baldwin Park, where I oversees compliance analytics covering all aspects of shipping, inventory, sales, distribution, white label packaging, and delivery. More recently, I became only the second Latina in Los Angeles county to be fully certified and permitted as a legal Cannabis micro-business with retail and I currently operate the largest dispensary in the South East of Los Angeles. Since 2019, as president of 562 Discount Med, Inc., I have provided strategic-level operational guidance for a highly successful cannabis dispensary in the affluent Belmont Shore neighborhood of Long Beach, particularly on strategic partnerships and joint venture opportunities for market expansion. As operations director for Fresh Farms, Sigrid will be tasked with creating and managing our training and standard operating procedures, day-to-day business operations, and interacting with staff. Damaris Graibe Damaris Graibe is the founding owner of Westside Hyde Project, LLC, a profitable City of Los Angeles non-retail, Social Equity-owned, licensed cannabis operation specializing in distribution, manufacturing, and cultivation in Southwest Los Angeles. Damaris has over 10 years of extensive cannabis processing experience working with Prop 215 compliant operators prior to being afforded the ability to secure licenses with the City of Los Angeles. Damaris’ cannabis practice and specialization are concentrated in the areas of processing and marketing with an extensive background in customer service and successful retail sales enterprises. Damaris earned a Bachelor of Science degree in Accounting and Business Finance from California State University of Long Beach in 1996 and is a lifetime local to the area. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 9 Damaris regularly contributes to the betterment of her fellow Los Angeles County residents by regularly assisting in fundraisers and food distribution activities at the Union Rescue Mission in Downtown Los Angeles. She also assists with the domestic violence help agency Sojourn Services for Battered at various capacities serving Santa Monica and Los Angeles and is looking forward to extending this relationship to our new non-profit partnership in Fresno to further these efforts. To Fresh Farms, Damaris brings extensive accounting experience to the Fresh Farms business team. Ms. Graibe also holds Real Estate Broker license operating a successful practice in the South Bay area of Los Angeles County for over 20 years and has extensive experience in human resources, managing labor crews, processing payroll, balancing the books, and managing licensed cannabis business operations. Candy Heredia Candy Heredia is the Director & CEO of CH Billing and Coding and a highly successful entrepreneur assistance, which helps minority and economically disadvantaged small business owners launch, build, and manage their operations in several different business enterprises. Candy’s experience in the cannabis trade began back in 2007 with the City of Los Angeles, Prop D-compliant dispensary Green Light District (GLD). As a partner with GLD, Candy first-hand assisted in the day-to-day operations of all aspects of the cannabis processing and retail business operations until selling her business share in 2016 to pursue larger opportunities. Candy also provides consulting services for various cannabis operations improving the e-commerce aspects of their businesses. Her experience and management strengths in the merchandising of products for a targeted market ensure a company the highest profit margin. In this role, she will use her managing skills to further ensure the busy retail dispensary and non-retail locations operate smoothly, efficiently, and in-line with all local and state regulations with the bottom-line goal of providing quality cannabis products to consumers. Her guiding principle in business is empowerment, and she acknowledges the opportunity gap for historically disadvantaged youth, so she volunteers time each week to mentor interns and young cannabis professionals as part of the Candy Heredia Young Entrepreneurs (CHYE) Program. This program educates and empowers teens from historically disadvantaged backgrounds to start online businesses of their own. From high-volume retail dispensaries to discrete non-retail operations facilities, Candy Heredia has successfully implemented business strategies for over a dozen cannabis operations in alignment with company goals, community wellness, and all applicable local and state regulations. She has dedicated her entire career to the holistic empowerment of businesses and communities as they work together for to achieve their goals. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 10 Operations Team The state definition for owner of a commercial cannabis business aligns with Fresno Municipal Code section 9-3304(jj). Both the State of California and the city of Fresno seeks to award cannabis licenses to those with experience in the industry, have been previously been vetted by regulatory bodies, and have demonstrated a commitment to compliance. In addition to our equity owners, the following individuals will be participating in the day to day operations of our business in various managerial and professional capacities. TRAVIS MILLER is a dynamic, seasoned, results-oriented business professional who has spent the past 10 years establishing businesses in California’s cannabis industry. He has developed a wide range of experience across cannabis business administration, retail sales, operations management, customer service, and marketing. A dedicated leader with a proven ability to manage and evaluate daily operational processes, Mr. Miller’s dedication to operational integrity makes him stand apart as a business owner and customer liaison. He implemented management tactics to transform Modesto-based startup Safe Access Delivery from an unprofitable cannabis delivery company to a successful operation netting $3.5 million per year. Travis Miller has managed and consulted for Empire Health and Wellness, the largest cannabis delivery service in the Central Valley, and has facilitated the company’s 233% growth of $3 million to $10 million across two years. Mr. Miller’s excellent interpersonal skills and neighborliness have helped forge lasting relationships with customers and vendors, members of the California cannabis community, local businesses, governments, and their constituents. Mr. Miller is devoted to providing high-end products at reasonable prices and is a subject matter expert in cannabis operations finance. BRIAN STIPPEY is a former United States Marine and Social Equity license holder for Fresh Farms, Mr. Stippey is also the founder and creator of CannaQuest Cannabis floral arrangements. Brian Stippey is both diligent and committed to his profession to the cannabis industry. Prior to acquiring the licensure, Mr. Stippey has been involved in many aspects of the cannabis industry. Since 2007, Mr. Stippey has both owned, managed and operated several cannabis dispensaries and commercial cultivation locations. In 2017, Brian created CannaQuest, a company which creates and distributes cannabis floral arrangements. Mr. Stippey developed and established the concept of CannaQuest including the market research and Social Media platforms. Brian was born in Los Angeles, California where he obtained his high school diploma and certification in Production Art and in Floral Design. He then went to serve in the United States Marine Corps, where he obtained certification in Communications Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 11 KYLE KELLEY has over 12 years of experience in the cannabis cultivation industry with a proven record of compliance. Kyle Kelley holds three (3) active legal cannabis licenses (cultivation, manufacturing and distribution), offers a wealth of industry knowledge and the organizational acumen to thrive in the City of Moreno Valley. Throughout his 17-year tenure as a United States Merchant Marine, Mr. Kelley was trained in top-tier efficiency, management, and logistics best practices. He now applies his specialized skill set to numerous cannabis leadership roles throughout California, namely: as the owner-manager of the prolific Imperial Project cannabis and cultivation operations in the City of Los Angeles; as Business Manager of the highly regarded Heedful, Inc.; and as a cultivation advisor and consultant for multiple successful cannabis start-up companies. Kyle, always eager to ensure the highest quality cultivation practices across the industry, actively participates in cannabis associations such as the Medical Cannabis Association, the National Cannabis Industry Association, and hempSMART, and networks with the most reputable cannabis cultivators, manufacturers, researchers, and distributors in California. Mr. Kelley takes pride in balancing efficiency with sustainability, safety, and philanthropy. Each of his cultivation operations emphasizes all-natural, organic, sterile growth systems and methodologies; product and equipment sourcing from BIPOC- owned businesses; and ensuring compliance to all CDC guidelines to protect employees against COVID-19. EDWARD CHARLES LANFRANCO is a third-generation Fresno- born resident seeking to elevate his community by participating in the Business Advisory Board. Mr. Lanfranco believes local cannabis businesses have the power to revitalize blighted communities and bring cannabis to those who need it most. Lanfranco, a lifelong academic who is fluent in Mandarin Chinese language, has multiple degrees from the University of California and has established a 20-year career in telecommunications marketing based in Beijing. The Chinese concept of filial piety (honoring and taking care of family) inspired Mr. Lanfranco’s return to Fresno to assist ailing family members pursue the vital medical cannabis medications they needed to live full and comfortable lives despite their health conditions. Mr. Lanfranco is now embarking on a new career in Fresno’s emerging opportunities for retail cannabis, starting by serving on Fresh Farms’ Advisory Board. Leveraging his experience in business, operations management, marketing research, government and media relations, he is committed to achieving commercial success. At the same time, he is equally dedicated to making his work in this sector one that his family will be proud of by using proceeds from the business to develop programs and partnerships serving the Fresno community. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 12 Section 1.2 - Startup Costs Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 22 Section 1.5 - Opening and Closing Procedures The following store opening and closing SOP has been developed by our ownership team over decades in the industry. Sigrid Lopez has personally developed these procedures over the years, perfectly balancing adherence to regulations with safety, security, and real-world logistics. These specific insights have then been adapted for Fresh Farms to provide us with the most comprehensive opening and closing procedures in the industry. Beyond their creation, Sigrid will devote hands-on time to training all levels of staff to ensure that the procedures, and through them our values, are lived every day. All these materials are available for staff in the following format for compliance use but are taught through on online training portal with a more user- friendly interface. SOP 1-1-006 STORE OPENING AND CLOSING Executive Approval: S. Lopez, T. Wood, May 1, 2020 Compliance Approval: C. Heredia, November 5, 2020 Revised April 2, 2020 Reference(s):Fresno Municipal Code Section No. 11-445; SOP No. 9-6-001 (Alarm System); SOP No. 6-1-001 (Limited Access); SOP No. 2-6-001 (Security Procedures) Responsible Parties: Ownership; Sales Manager; Security Agent; All Staff; Security Officer I. FACILITY ARRIVAL A. Following industries best practice, and remaining in compliance with FMC Section 9- 3310 (1), the Store Manager will initially arrive to the store premises and meet with at least the opening Security Officer, and one other Staff Member an hour prior to the initial start of business, each morning. B. The doors are to remain locked to the public, until precisely at 8:00 AM for the start of transactional business day. C. When approaching the store, the opening Staff Members will observe the area for any suspicious circumstances or individuals, observing the parking lot and store perimeter. Each member will park in the designated colleague parking area. D. At 7:00 AM the Store Manager will be accompanied by the Security Officer to unlock and gain entrance into the store, while the other Staff Member remains in a vigilant position outside. E. The Staff Member will be instructed to remain outside inside their vehicle with doors remaining locked, while maintaining a vigil observation of all activity surrounding the store's entrance and premises. They will all keep a mobile phone on their persons for a consistent line of communication between one another. The Staff Member awaiting Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 23 outside will hold their point of position until further notice from the Store Manager with a distinctive gesture indicating all is clear to enter. F. The outside Staff Member will be adequately briefed and trained to distinguish between certain activities as suspicious activity near, or on the premises. Those activities may range from unusual noises, unknown individuals in or around the building or area who do not appear to be conducting legitimate business, or unauthorized people in restricted areas. As well, if the Store Manager does not respond to the outside Staff Member within a reasonable frame of time from inside the store that all is well; then they are instructed to promptly call 911. II. HEALTH SCREENING A. Before entering the sales floor, every employee must pass an onsite health screen to verify they are not immunocompromised, nor have symptoms or exposures that would put anyone at risk for infection of COVID-19. In accordance with the guidance from the Center for Disease and Control, social distancing separation of 6 feet or more, is detailed within SOP 106.169 (Preparation Against COVID-19). B. Rapid point-of-care diagnostic testing will be administered to the opening Store Manager and Security Guard, either in an approved well-ventilated are near the building entrance, or before entry into the facility. Results from the test will be within minutes. Upon passing the diagnostic test employees will be allowed access into the building for up to 24 hours, or the duration of the employee's shift before retesting is required. C. An FDA approved thermal imaging systems or non-contact infrared thermometers, which are non-contact temperature assessment devices, will be used to measure an employee's temperature daily. An elevated temperature is one way to identify an individual who may have a COVID-19 infection. D. The temperature of every employee will be recorded daily in a "COVID-19 Temperature Check Log", as in accordance with SOP 106.169 (Preparation Against COVID-19). E. All reusable temperature screening devices must be properly sanitized after each use, with an alcohol-based hand sanitizer with at least 70% alcohol should be performed before use and after touching. F. In accordance with the 42 Code of Federal Regulations parts 70/71 Final Rule, an employee with a fever of 100.4°F/38°C, or greater, accompanied by one or more symptoms of illness, will be determined to be inadequate to perform their duties safely at work. The possibly immunocompromised employee will be requested to be relieved from their shift. The employee will be instructed to speak with their personal physician and to quarantine themselves until their health is regained. G. Employees will be trained to identify other symptoms accompanying a high fever including: skin rash, difficulty breathing, persistent cough, decreased consciousness or confusion of recent onset, new unexplained bruising or bleeding, persistent diarrhea, persistent vomiting, headache with stiff neck, or appears obviously unwell. H. The criteria to return to work for a mild to severe immunocompromised Staff Member will require, at least ten (10) days have passed since symptoms first appeared, at least 36 hours have passed since last fever without the of fever reducing medications, and are able to provide two (2) negative tests spanned 24 hours apart from one another. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 24 III. FACILITY ACCESS A. After the temperature of the Store Manager and Security Guard have logged in, they will enter the front door then immediately locked in accordance with SOP 6-1-001(Limited Access). B. All doors are to be kept locked until opening time, at 8:00AM. C. The duty of the Security Officer will be to perform a detailed walk-through. This is to ensure safety and security procedures were followed the previous evening. The Security Officer will secure the inside of the building after the Store Manager has disarmed the building's alarm. D. The Security Officer will follow the Security Checklist when securing the building; ensuring to inspect every room, office, and areas of storage for anyone or anything unauthorized. E. Only authorized Staff Members and/or vendor may enter prior to opening for business. F. The morning operations check is performed, and tasks completed to make sure the store is "customer ready" by time of opening to the public. G. If an intruder or a sign of forced entry is suspected, the Security Officer will immediately accompany the Store Manager safely out of the store and call 911 for police assistance and promptly report the incident to the Security Agent. H. Prior to opening the store to the public, any remaining tills from the previous evening are to be immediately cashed out. IV. STORE SETUP A. Store Manager will review the sales from the previous day, and review communication from the previous closing shift manager. B. The Store Manager and Staff Member are to use the Cleaning Checklist and begin to clean and disinfect the facility as in accordance SOP 106.169 (Preparation Against COVID-19). C. The Staff Members are to wear adequate cleaning attire to remain proactive against airborne illness. They are to, at all time, wear disposable gloves to properly clean and disinfect the facility, in accordance with the guidance from the CDC SOP 106.169 (Preparation Against COVID-19). D. An hourly cleaning checklist is provided for Staff Members to sign off once the task has been completed. E. The Staff Members are instructed to only use disinfectant products that are part of the EPA's "List-N" as approved disinfectants to use against COVID-19, in accordance with SOP 106.169 (Preparation Against COVID-19). F. Simultaneously, the Security Officer will review surveillance camera feeds to make sure cameras are in proper position. The DVR will be reviewed to assert that it is recording properly. G. The Store Manager will have access to unlock the secured product storage room and retrieve product with the other Staff Member. They are to begin the process of filling the display cases on the retail floor, so that the store will be "customer ready" prior to 8:00AM. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 25 H. Products are to be brought out by the morning Staff Members to the retail floor on rolling carts from the secured product storage area to the locked display cases; product will not remain unlocked for greater than five minutes. I. The Store Manager will be tasked to disarm the safe and vaults within the first 30 minutes of entering the facility, by 7:30 AM. If a threat or concern is assessed while disarming the vault, a duress code will be entered into the alarm system keypad. J. At the start of each day, the Store Manager is to confirm that each register has precisely two hundred dollar and eighteen dollars: (4) twenty-dollar bills, (20) five-dollar bills, and (20) one-dollar bills, and exactly $18.00 in change. The register is to remain empty, without cash, until 7:45 AM. V. STORE OPENING A. At 7:50 AM, the rest of the morning Staff Members are to arrive to begin the start of their shift. B. Upon arrival, they are to be escorted into the facility by the Security Officer from their vehicles. C. The Lobby and Sales Staff will go to their stations and the Security Officer will stand in position to unlock the door. D. At 8:00 AM the Security Officer will unlock the door when the Lobby and Sales Staff are in position at their perspective stations. E. The opening Store Manager will confirm and sign off on the AM portion of the daily compliance checklist and cleaning clog prior to departing. VI. STORE CLOSING A. At 9:45 PM, the closing Store Manager will confirm and sign off that the PM portion of the daily compliance checklist and cleaning log are completed B. At 9:50 PM, the closing Store Manager will utilize the PA system to announce to customers and staff that the store will be closing in ten minutes and that all final purchases should be made. C. The Security Officer and Store Manager will ensure the building is cleared of customers. They will inspect the sales floor, break room, stock room, and restroom for any stragglers. D. Any remaining drawers on the sales floor are not to be removed until all customers have left the store. E. Non-colleagues are prohibited from being in the store after hours of operation, after 10:00 PM. F. At 10:00 PM, the Security Officer will lock the front door, only opening to assist customers exiting the store. G. Only authorized vendors or service technicians may be allowed access dependent upon prior authorization by the Store Manager. H. The Store Manager will verify end-of-day closing procedures through interface with Greenbits®, and ensure that all purchase orders, invoices, and reporting has been verified as complete. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 26 VII. LOCKDOWN A. The cannabis product is to be removed by the Store Manager and Staff Members from their perspective display cases each closing shift, to proactively decrease opportunities for theft and or vandalism. All cannabis products within display cases will be returned to the secure storage room, and locked. B. The process of returning the cannabis products back to the secure storage room will involve taking one display case at a time, and product will not remain unlocked for greater than five minutes. C. As the cannabis products are removed from their perspective cases, an inventory count will be conducted to tally any loss or damages. D. For the safety of Staff Members and public the Store Manager, in accordance with SOP 106.169 (Preparation Against COVID-19), will sign off and perform a final housekeeping procedure of cleaning and disinfecting of surfaces, and equipment within the facility. E. At 10:15 PM the Store Manager will perform the final cash drop. All safes, doors, and cabinets will be locked. The final deposit of cash will be placed into the smart safe inside the secure access room by the Store Manager. F. All non-security light is to be turned off, including the backroom, break room and office lighting. G. A final store walk-through is completed by the Store Manager to ensure all closing procedures were completed. H. The Store Manager will arm the alarm system controlling the safes and secure rooms. I. All employees and security personnel are instructed to exit the facility simultaneously together. J. Once every employee is confirmed to have exited the building, the Security Officer will verify that all door entrances, including store’s emergency exits are each secured and locked from the outside, in accordance with SOP No. 2-6-001 (Security Procedures). Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 27 Section 1.6 - Day to Day Operations Section 1.6.1 i. – Customer Check-In Our customer check-in procedures have been in constant revision during the recent public health crisis. At the beginning of the pandemic, our ownership team took the lead in overhauling their respective cannabis business operations to maintain the health and safety of their staff and the public. Sigrid immediately engaged public health consultants and updated our procedures, trained our staff, and outlined and implemented procedures for social distancing, face coverings, temperature screenings, contactless pickup, and capacity limitations before they were mandated by public health orders. We have now distilled all these best practices into the standard operating procedures for Fresh Farms. Using source material and guidance from the national Centers for Disease Control, California State Department of Public Health, and Fresno County Department of Public Health, our standard operating procedures and training manuals have been updated to include protocols for protecting public safety while maintaining commercial operations as an essential business. Most specifically, our customer check-in procedures have undergone a major overhaul to include contactless entrances and automatic temperature checks in the lobby area as well as all employee entrances, immediate sanitation of customer lobby and payment areas after each use, and new guidance for staff. Supporting these procedures is a comprehensive training program, a staff that is committed to upholding standards, and an ownership team that will constantly revise their operational procedures in accordance with changing public health guidelines. Please see our Customer Check- In standard operating procedure on the next page for more information. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 28 SOP 1-5-002 CUSTOMER CHECK-IN Executive Approval: S. Lopez, T. Wood, May 1, 2020 Compliance Approval: C. Heredia, November 5, 2020 Revised April 2, 2020 Reference(s):Fresno Municipal Code Section No. 11-445; SOP No. 9-6-001 (Alarm System); SOP No. 6-1-001 (Limited Access); SOP No. 2-6-001 (Security Procedures) Responsible Parties: Ownership; Sales Manager; Security Agent; All Staff; Security Officer I. CUSTOMER CHECK-IN A. Prior to allowing the customers access into the store, the Store Manager must ensure that identification verification machines operating properly within the reception and sales floor. There will be a minimum of two (2) identification verification machines in the reception area, and at least four (4) are to be placed on the sales floor. B. Customers are only allowed to enter and exit the building through the store's main front entrance, during hours of operation, where they must enter the lobby first. The only exception is in the case of an emergency, as illustrated in SOP 2-5-001 (Emergency Procedures) C. The Security Officer will be stationed at the front of the reception area as the initial employee to interact with incoming customers. The Security Officer will ask for governmental form of identification, in accordance with SOP 106.22 (Security Procedures). D. In accordance with SOP 106.169 (Preparation Against COVID-19), the Security Officer will confirm that all customers entering the building will have proper face covers securely on. E. Once verified, eligible customers will be instructed to enter the lobby where our lobby Staff Member will greet them and inquire about their status as a Fresh Farms' loyalty membership F. Lobby Staff Member will request to view the customer's identification as well, creating a double check point for identification verification that the customer is over the age of 21 for recreational patients, and at least 18 years of age for medical patients. G. All customers, including anyone from the public, must provide their government-issued photo identification in order to enter the store. H. Tailgating, which is defined as following another individual through a designated area without proper photo identification is strictly prohibited. I. Accepted forms of identification include government issued Passport, Driver’s License (including California and other State issued photo licenses, as long as it has not expired), United States military identification card, or any other identification card issued by a State that has the picture, name, the person’s date of birth and a physical description of the person. J. Any document issued to a medical patient from their physician must initially be verified by the Lobby Staff Member. The Lobby Staff Member will be properly trained to verify a Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 29 physician's document by utilizing an API/RSS software interface directly from search.dca.ca.gov. All records of medical documents will be kept electronically. K. Lobby Staff Members will be trained to properly use an API/RSS software interface for medical patients that have Medical Marijuana Identification Cards. The software interface is available on calmmp.ca.gov/MMIC_Search.aspx. L. The Lobby Staff Member will visually inspect thoroughly, the validity of the identification. M. Following the visual inspection, the Lobby Staff Member will use Greenbits software to log the customers visit. The Lobby Staff Member will initially select “ID Verification” on the software platform. N. Greenbits will scan the customer's identification by using the magnetic strip, 1D barcode, 2D barcode, or the Lobby Staff Member may manually enter the identification number into the age verification device to confirm the authenticity of the state issued photo identification. O. Protection of confidential information is always the highest priority to maintain. Any disclosure of information will always maintain the confidential integrity of personal information. P. Fresh Farms will, at all times, protect confidential information in all records kept and maintained by the company. All records will be identified as confidential and any disclosure will be limited in a manner that maintains the confidentiality of the information contained therein. II. HEALTH SCREENING A. The Lobby Staff Member will proceed with health screening the customer's temperature with a touch-free thermometer and following the manufacturer’s instructions. B. If a customer's temperature is below 100.4°F/38°C and are not showing physical signs of ailment the Lobby Staff Member will proceed with allowing entrance onto the sales floor. C. If a customer's temperature is at 100.4°F/38°C or above, and showing symptoms of illness, they will be politely requested to exit the premises and return at least 24 hours after health recovery. D. Under the provisions that all verification checkpoints meet compliance to enter into the sales floor, the Lobby Staff Member contact the Sales Manager via the PA system to decipher if there is adequate availability of distant space for the incoming customer to enter into the sales floor. E. The safety and sanitation purposes, the Sales Manager will be responsible to ensure that the ratio inside the sales floor of customer per Sales Associate is 1:1, as in accordance with SOP 110.005 (Customer Interactions). F. If the sales floor is at ratio capacity, all incoming customers will be asked to wait in the lobby, spaced six (6) feet apart until a customer leaves or additional sales staff is made available. G. Once there is sufficient available space, the next customer will be allowed entrance into the sales floor. The door to the sales floor will be controlled via an electronic remote. H. Upon entry into the sales floor, the customer will be cordially greeted by their assigned Sales Staff Member. The sales floor will be updated to keep the Sales Staff distantly spaced to every other row, for safety procedures list in accordance with SOP 106.169 (Preparation Against COVID-19). I. Areas where there is a high volume of foot traffic, as defined as sales floor, office, restrooms, Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 30 and breakroom, there will visible markers on the floor placed at 6-feet apart as guidance to maintain safe space for everyone as in accordance with SOP 106.169 (Preparation Against COVID-19) J. To reduce possible congestion within the sales floor of customers entering and exiting the store, there will be one-way traffic flow established to reduce close encounters or collisions in narrow spaces. There will be ample signs made visible to communicate instructions. K. Safe shield protective panels will be critical pieces of protective equipment at the cash registers during the COVID-19 pandemic. Plexiglass will be in place as a "sneeze guard" for additionally protection. III. SALES FLOOR A. The customer will be greeted by the assigned sales staff member and maintain interaction with the customer through their entire time on the sale floor until ready to make a purchase. B. The assigned sales staff member will complete the purchase. C. At the time of purchase, the Sales Staff Member will request to verify the identification of the customer one last time before executing the transaction. D. After the completion of the purchase the Sales Staff Member escort the customer back to the door to exit the sales floor, and into the lobby. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 31 Section 1.6.1 ii – Receiving Deliveries The following sections provide a brief outline of our delivery receiving procedures. Fresh Farms’ delivery and receiving protocols follow a tried-and-true methodology that has been improved over our last twenty years in the industry by our ownership team. We have created a comprehensive program, spearheaded by owner Sigrid Lopez, that ensure all deliveries to our facility are conducted safely and securely. Diagrams located in “Section 6 – Location” and “Section 5 – Security Plan” contain further details regarding delivery protocol information. Dedicated Space All deliveries to and from the facility will take place within a designated area, where Fresh Farms’ operational and security staff have full control of the facility and are able to minimize potential critical control points. No deliveries will be permitted to enter the premises through and entrance or exit accessible to the public, outside of established receiving hours, or without the proper amount of staff present. All incoming deliveries will be conducted through the delivery-only door that is separate from the retail entrance and sales floor access points. This door will grant access to a small antechamber that is independently locked and under 24-hour video surveillance. The parking lot adjacent to the delivery area will have two zones designated specifically for delivery vehicles. Once the delivery vehicle is parked, the entrance to the antechamber is less than 10ft away, and for further security, the entire process from beginning to end of the delivery is monitored by video surveillance. Organization Focusing on industry best practices, Fresh Farms has created comprehensive protocols ensuring that all cannabis product on-site can be easily located and accessed quickly in any situation. All receiving staff will have allocated appropriate time for all receiving tasks and a comprehensive organizational system will be implemented for accurate tracking and receiving of product. To achieve the level of accuracy and consistency expected by Fresh Farms’ ownership team, our all storage and receiving areas will be properly maintained and organized, clear of clutter and debris, accurately labeled, and properly sorted to ensure that inventory is never misplaced nor lost in our facility. Receiving staff will perform regular maintenance, organizational tasks, custodial services, and audit all receiving areas to ensure product is clearly and properly identified and reconciled with our electronic inventory management system. Online sales product readied for customers for delivery, contactless, or in-store pickup will be stored separately and maintained separately from sales floor product in order to keep an accurate inventory record, as well as ensure that product will not be transported between the back-room and sales floor during business hours. This separation of inventory product storage reduces the need to move product throughout the facility in support of the company’s security and odor management plans. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 32 Randomized Schedule Fresh Farms’ facilities will only accept scheduled deliveries from distributors that follow a randomized delivery protocol, ensuring that deliveries cannot be tracked or timed, therefor limiting the chance of crime or product diversion. All deliveries will be conducted according to a carefully selected and ever-changing schedule, placing deliveries strategically at different times each day. Further, additional coordination by our operations team will ensure that deliveries are made only during daylight hours based on the time of year, as well as to prevent potential conflict with instances of high customer traffic, lower staffing levels, or cash pick-up times. Staff and security officers are also trained in threat and risk management and are instructed that deliveries can and will be called off should a staff member or security officer perceive a potential threat to persons or product. These procedures, which are in-step with industry best practices, are employed at all Fresh Farms’ retail and production facilities and are a permanent fixture of its operational and security plans. Streamlined Processes Upon arrival and before exiting the vehicle, the vendor will be required to electronically verify their arrival and shipment manifest prior to unlocking their vehicle or unloading any product. All invoice and receiving paperwork will be completed in advance of the arrival of the delivery driver and available to both parties electronically. Once this information has been assessed, the security officer and receiving staff will verify the driver’s credentials before escorting the driver with the product to the delivery antechamber. Once inside, the staff, vendor, and security officer will check and verify the inventory provided matches the manifest. All visitors allowed inside the delivery area will be logged physically and electronically, and a register including still images of each individual’s arrival and departure will be stored and maintained in excess of regulations and industry standards. After the order has been verified as complete and the product has been secured in the storage room, the driver will be escorted to their delivery vehicle by a security officer and a receiving staff member. Upon exit, the driver’s credentials will be logged once again, and a picture of their departure will be taken and maintained in accordance with our standard operating procedures. With the implementation of these receiving protocols, site-specific controls, and streamlined check-in/check-out procedures, it is anticipated that most deliveries will be completed and processed in less than six minutes. These protocols and procedures serve to limit the amount of time that the product is exposed to potential theft or diversion, as well as allow the facility to address critical control points for odor management. To further increase efficiency and limit the number of incoming and outgoing shipments, each facility will utilize a “Just-In-Time” delivery system. This system uses a specific algorithm to combine or cancel shipments based on expected individual product sales. Limiting the number of deliveries each day allows for a more focused and efficient process, including complete control over critical control points for safety and security. It is estimated this utilizing this process will reduce incoming Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 33 shipments by 30% each year. This reduction will also allow our facilities to use distributors who utilize smaller natural gas-powered vehicles, creating a cleaner and quieter environment for the community. Quality Control Once product has been brought into the facility, staff will inspect for compliance and quality before updating quantities in the Greenbits software platform that interfaces with Metrc. Staff members will thoroughly inspect labelling and packaging of all materials to verify they are compliant with state and local regulations as well as fit for sale in our facility. The staff will use manifests and product orders to verify information found on the primary panel, information panel, and supplemental panel of each product. The primary panel will include the product identity, the California universal cannabis symbol, the net weight or volume of the product, and the total THC and CBD contents in milligrams. Staff will verify that the informational panel includes the government warning statement in proper formatting and that the supplemental label includes the manufacturer’s name and contact information, date of manufacture, ingredients list, instructions for preparation and use, product batch number and expiration, and unique tracking number. All edible products will be checked to ensure they include the term “Cannabis Infused” on the primary label, as well as all nutritional information required by the Food and Drug Administration. Any product found not in compliance with labeling requirements will not be accepted and will be notated in the Green Bits® receiving report and the product will be returned with the delivery vendor if they are still present or on the next return shipment. All packaging will be further visually inspected by the staff to ensure the product is sealed in air-tight containers. If any product breach is found it will be refused, immediately quarantined in an air-tight container and removed from the premises by the vendor. All receiving staff will be trained and instructed to visually inspect all raw cannabis products and prepackaged flower for signs of improper manicuring, age, moisture content, unstable genetics or damage resulting from mishandling during transport. This will ensure that every product is effective to the level indicated on the label as well as aesthetically pleasing to the consumer. After initial inspection by the receiving staff quality control team, the sales team staff will continuously inspect product throughout the products lifetime within the store as it is stocked, sold, or counted during nightly inventory. Any product in question will be removed and reviewed for possible degradation or expiration. Auxiliary Support During deliveries we will follow strict two-on-two security protocols that will stay in effect for the duration of the delivery. In accordance with the company’s standard operating procedures, no deliveries will be accepted unless two security officers are present at the facility and unencumbered by other tasks. During delivery times, the Store Managers, Back Security Officer, and receiving staff will not be slotted for additional duties and will be available to provide any additional support as required. Randomized delivery times set by our logistics team will dictate daily schedules and Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 34 other tasks will be reallocated during that time. “Safety-valve’ staff members will also be available to ensure all distributors are always escorted through secured areas and deliveries are completed quickly as possible. From the time a vendor’s vehicle has arrives at the facility and his credentials verified, the delivery antechamber door is opened by the security officer and staff, while under video observation by a second security officer. The surveillance video is dual broadcast to the security office as well as to a mobile device. The second security officer will be able to view this feed remotely, giving him a clear view of the entrance, and entire view of the delivery vehicle, as well as the storage room and all pathways and rooms included in the product delivery path. This set up allows a path of dual surveillance permitting observation without physically taking another officer out of position. Detailed Tracking All product sent and received by our facility will be tracked in detail through various compiled software platforms. A detailed manifest with be created and maintained prior to all deliveries, of which a copy will be made and sent with the driver on every delivery. These manifests will be automatically generated by Greenbits, our sales software program and out internal protocols call for these manifests to be created at least eight hours prior to each delivery to ensure receiving staff has the appropriate amount of time to process the order before arrival. This manifest will include detailed descriptions of every item within the delivery, accurate quantities of each item, date and time the goods were received by the retailer, item expiration date, name and license number of licensee who delivered the cannabis goods for retail, the name and license number of the distributor who provided the goods to the retailer, and the price the retailer paid for the goods, including all tax, delivery and additional costs. Manifests can be edited or modified at any time up until the product has been officially received, allowing management and receiving staff to make real-time corrections, keeping facility stock levels always accurate with current inventory levels. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 35 Section 1.6 iii. - Point of Sale We will be utilizing an integration of a custom-built online sales platform and Greenbits® Retail and Inventory Management software allowing online sales, phone orders, and in-store purchases to be housed under one platform. This system additionally provides integration with the state’s track-and-trace system, inventory management, identification tracking and verification, customer loyalty program, and customer purchase history. By combining all these aspects into one platform, we are able to drastically reduce each transaction time, creating fewer concerns for traffic and congestion, affording the customer more time to interact with staff, and create workflow efficiencies for our business. We will maintain a one-to-one ratio of sales staff to customers on the sales floor at all times, allowing undivided attention on the customer. Our platform allows product selection and financial transactions to take place either before the customer arrives by placing an online or phone order, or with any member of sales staff at any point on our sales floor via electronic payment method. Product will be kept in locked display cases and available to customers for inspection prior to purchase. Since we anticipate large numbers of cash transactions to persist, customers paying with cash will be escorted to one of six point-of-sale cash registers by their assigned member of sales staff, and the transaction will take place over a counter. Four of these terminals are spaced evenly abutting our secure area on the product counter and two more are located in our secure product island as noted in the diagram below. The software options for inventory tracking and internal auditing have only recently undergone overhauls for compliance assurance, but these tools have enabled us to essentially eliminate the possibility of undetected theft of cash or product. We intend on utilizing Greenbits® for the tracking of inventory as well as interface with the state’s track-and-trace system, Metrc. Our inventory control standard operating procedures include procedures for the recall of cannabis and cannabis products, as well as their disposal, if necessary, in compliance with all city and state regulations and Greenbits® allows us to maintain an active and functional account within our internal track-and-trace system. Our Sales Manager will be our designated track-and-trace system operator that will train other members of staff on its use. All managers will be properly credentialed prior to them receiving access or use of it, although most have used this software before. Greenbits® is used to in over of cannabis transactions each year and is used in all states that process cannabis transactions at over 1,200 retailers. Our team will undergo and successfully complete all required state track-and-trace training and will use a unique log-on username and password. No individual will have access to another account for any reason, in accordance with state regulations. We will also implement and maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis product. When cannabis and cannabis products are delivered to the facility, the quantity received will be instantly electronically reconciled with expected quantities provided on transport Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 36 manifests and invoices. Products will be updated in Greenbits® and show up as active inventory in Fresh Farms’ internal tracking system as well as our online platform for vendors. Any variances in inventory found during regular audits will be internally investigated, reported to the city and the BCC, as required by Fresno regulations, and will be reflected in Greenbits®. Closing the only gaps in the Greenbits® platform, our in-house software will be used to interface with Metrc to purchase inventory tags, accept manifests, or potentially transfer inventory. While the program has a point-and-click user interface, our staff will utilize the following standard operating procedure for compliance. SOP 1-3-001 SOFTWARE ACCESS Executive Approval: S. Lopez, T. Wood, May 1, 2020 Compliance Approval: C. Heredia, November 5, 2020 Revised April 2, 2020 Reference(s):Fresno Municipal Code Section No. 11-445; SOP No. 1-1-020 (Employment Policy); SOP No. 4-4-001 (Track-and-Trace); SOP No. 8-2-001 (Waste Management) Responsible Parties: Ownership; Sales Manager; Security Agent; All Staff; Security Officer I. ACCOUNT ACCESS A. Upon onboarding every Staff Member will receive training and access to Fresh Farms System and Greenbits platform. B. Each User will receive a unique log-on credentials, consisting of a username and password in accordance with SOP No. 1-1-020 (Employment Policy). C. Each User will be assigned unique log-on credentials, consisting of a username and password in accordance with SOP No. 1-1-020 (Employment Policy). D. Safeguards will be in place against erasures and unauthorized changes in data. The Account Manager will be responsible to ensure that information has been entered and verified by Fresh Farms. E. The Account Manager will be responsible to maintain an accurate and up-to-date list of every user account created within Greenbits and Fresh Farms System. F. Fresh Farms will use METRC prior to any activity of commercial cannabis activity, including the purchase, sale, return, destruction, or disposal of any cannabis products in accordance with SOP No. 4-4-001 (Track-and-Trace). G. The General Manager will have the responsibility as the Account Manager for the company’s Track and Trace system. Additional owners or staff members may be included by the General Manager as Track and Trace system Users. Every employee will be fully trained prior to having first access to use the Track and Trace system. H. The Account Manager will have adequate training prior to use of the Track and Trace system. Adequate training will include having attended orientations and any continual education. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 37 I. Every Staff Member must access Greenbits Track and Trace system using their own log in credentials. Using another user log in credentials to access Track and Trace system is strictly prohibited. Each user is to keep their log in credentials private, and not share access their credentials with other employees nor any person. J. There is zero tolerance for falsifying information or attempts of fraudulent activity; strictly prohibited. Attempts to misrepresent data is strictly prohibited; enforced punishment up to immediate termination of employment. K. Attempts to falsify or misrepresent data or information entered into the track-and-trace system is a violation of Fresh Farms’ policies; punishable up to and including termination of employment. L. The Account Manager will maintain up to date account of active users. Any former employee or employee with expired licensee will be removed by the Account Manager. M. The Account Manager will maintain an accurate account of information of every employee user in the system. The data collected and maintained up-to-date list is their full names, usernames, email addresses, and phone numbers. II. SYSTEM USE A. The Metrc track and trace system via the Greenbits Sales is the platform that Staff Members will use as a point of sale, customer returns, and destruction of all cannabis good. B. In accordance with SOP 8-2-001 (Waste Management), the process of properly destroying cannabis goods will be documented in the Metrc Track and Trace system via the Greenbits Inventory Management. C. The General Manager will utilize Greenbits Inventory Management Software to track all product deliveries D. The responsibility of the General Manager will be to enter every product delivery into Metrc via Fresh Farms Software “Manifests”. E. The General Manager will be responsible for the purchasing product inventory tags from Metrc through the Fresh Farms Software. F. The General Manager will be responsible for inventory transfers via Metrc. G. In the event that Staff Members are unable to have access to the track-and-trace system, Fresh Farms has established procedures maintain vital information and records of all activity involving the tracking of inventory, during the duration of not having access into the Track-and-Trace. H. When the Account Manager is able to regain access into the track-and-trace system, he or she will be tasked to implement all the data within 48 hours of the inventory activities taken during the inability to access the track-and-trace system. I. Once access is able to be restored to the track-and-trace system, the Account Manager is responsible to document when the track-and-trace system was lost and when it was restored, within 24 hour time span. III. COMPLIANCE A. As a fully licensed entity, Fresh Farms takes full accountability for the actions its owners and staff members take while they are logged into or using the Metrc Track and Trace system, and ensures adequate that training and educational resources are readily Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 38 available for all employees. B. The Account Manager will be properly trained and knowledgeable of how to restore order to any discrepancies or inaccuracy within Metrc and Greenbits, through verification of weekly syncs. C. Any compliance notifications received from the Track and Trace system is to be immediately implemented by the Account Manager and updated within a timely manner. D. In accordance with SOP No. 4-4-001 (Track-and-Trace), the Account Manager will promptly notify the Director of Compliance upon receiving any State issued compliance notifications. E. A separate record will be maintained by the Account Manager, independent of the Track and Trace system. A detailed account of the process of achieving compliance must be thoroughly documents of all notifications received from the Track and Trace system. F. The Account Manager is responsible for correcting any inaccurate data that is entered into the track-and-trace system in error within a 24-hour time span. G. In the event that the Account Manager is unable to correct any compliance issue within three (3) business days after receipt of the compliance notification, the Bureau of Cannabis Control will be immediately notified by the Director of Compliance Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 39 Section 1.6 iv. – Customer Count For the first year of operations, we expect to serve around two hundred customers per day, but through marketing and outreach efforts begun in month twelve, we expect to increase our daily customer count to three hundred per day by month twenty-four. Initially, marketing, advertising, and staffing focus will be on integrating into the community by driving high in-store traffic (if not in conflict with current public health standards at the time of opening). We intend to bring in customers to create lasting relationships through one-on-one, meaningful interactions. During this time, we will commit to being “overstaffed” to ensure that customer experiences are not rushed, and that staff has time to adequately introduce our company, our vision, and our commitment to civic participation. During this ramp-up phase of customer education and neighborhood ingratiation, we will focus on quality and speed of service, refine our processes and support our online platform as it gains traction in the marketplace. Beginning after the end of the first year of operations, we intend to drive sales to our online platform through concentrated marketing efforts which will reduce in-store customer count while still driving overall sales metrics. Staff will begin directing customers to the efficiency and ease of use of our online sales platform and our delivery service. After the end of the second year, we will further move traffic to our online platform by offering financial incentives such as order discounts and free delivery to maintain low in-store traffic and high customer engagement while still increasing overall sales. Throughout this transition, we commit to maintaining a 1:1 ratio of customer to staff on our sales floor and an average transaction time of six minutes, or ten customers per hour per member of staff. The built-in efficiencies in our operations and logistics plan will ensure that we are able to maintain adequate staffing levels even during peak times. During “rushes”, management and additional receiving staff with sales training will be available as a “safety-valve” to decrease transaction time and increase customer turnaround. In-Store 140 155 175 Online Pickup 20 35 50 Delivery 40 60 75 Total 200 250 300 year 1 year 2 year 3 Daily Customer Count Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 40 Section 1.6 v. – Product Line The modern customer is well-informed and has high standards not just for the products they put in their body, but the company they purchase from. Cannabis connoisseurs know what they want, and we will commit to providing the broadest, highest quality cannabis products in Fresno. With an efficient spacious sales floor and dozens of liner feet of display case, the ownership team has constructed a comprehensive program to drive our proposed product line. Fresh Farms was created on the foundational principle of providing the highest quality of cannabis products on the market. Our ownership team has embraced the industry’s expanding product line and look forward to serving the next generation of cannabis consumer. To assist in our business planning, we created a comprehensive financial model for our operations in Fresno that relies on data collected through BDS Analytics, a leading cannabis industry data management firm, blended with the assumptions and the professional experience of our management and operations teams. Drawing from owner Sigrid Lopez’ deep rolodex of cultivators, manufactures, and distributors, Fresh Farms has established a procurement team tasked with staying on the cutting edge of cannabis culture. This team will source new product on a continual basis, searching for innovative products and ensuring our existing suppliers are upholding product standards and conducting business in a manner that is consistent with our values. Even considering consistently shifting consumer preferences, our experience has afforded us with a firm understanding of the market. Historically, cannabis flower sales have dominated all other categories, both in availability, selection, and overall sales numbers. But over our years in the regulated industry, we have seen the flower category, as a percentage of sales, drop from over eighty percent ten years ago to about fifty percent last year, depending on store format and location. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 41 We anticipate the continuing of this trend and expect Fresh Farms’ sales to break down according the chart on the following page, at least for the first year of operations. In terms of selection, we will carry fifty individual strains of raw flower, distributed among classic and novel genetics. Currently, our procurement team has queued preliminary distribution agreements for 25 of the 50 cannabis strains we plan to feature in our store, representing a wide variety of cannabinoid content, ranging from less than 1% THC to over 30%, as well as other strains coveted for their terpene content, flavor, and desired effect. All flower will be received from the distributor perfectly manicured and will represent a wide variety of cannabinoids and flavor profiles. We anticipate these initial percentages to hold out over the first few years of business, but we will be constantly monitoring market conditions to create the perfect product blend. Included in this category are cannabis pre-rolls of our top-shelf flower. The next largest category is cannabis concentrates, making up about 38% of our sales. Concentrates can refer to any number of products made of or from the extracted cannabinoid oils, which are separated from the plant itself by the use of solvents. The term is used to describe waxes for vaporizing, oils and tinctures for topical and oral application, and keif that can be used as an additive or to make hash. These products contain higher concentrations of THC in smaller volumes and therefore require extra care and consideration on behalf of the consumer. Our educational materials will support responsible and safe use of concentrates. Additionally, we want to embrace the explosion of high-quality THC- and CBD- infused food and beverages on the market, which will make up over 10% of our sales. Our retail store will feature a wide variety of infused food products from large, recognized state-wide chains as well as local craft producers. Our facility will support both refrigerated and frozen products. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 42 Beyond the simple category headings, our product line encompasses a broad range of individual programs aimed at bringing unique, premium products to the Fresno cannabis marketplace. Through our experience in executing hundreds of purchase contracts, our procurement team has developed a system for finding cultivators, distributors, and manufacturers that provide the highest quality of cannabis product, operate with the highest degree of compliance, and share our values. Coveted sales space in our store will not be sold to the highest bidder in the form of slotting fees. Instead, we have arranged our product line to reflect the desires of our customers as well as our internal vision. We will be designating display space to unique cannabis products from special producers, which will allow us to promote our values of economic inclusion and social justice. Products from these vendors will be showcased with associated sales targets assigned to these producers. An additional feature will give designated space to small scale cultivation and manufacturing operations that focus extensively on the inherent value of their product. Many times, these small-scale producers have trouble competing in the marketplace due to the economies of scale enjoyed by large-scale farms and manufacturing facilities. We want to shine a spotlight on these businesses that have prioritized quality over quantity despite the lure of additional revenues. We have also identified cannabis product producers that have a social justice component to their business. Whether by charitable giving, commitment to social equity programs, or minority or female-owned businesses, these groups will also be featured in our store with designated display space. Finally, we will designate space for cannabis products that are the most natural, pushing the boundaries of purity. These products will be embraced by the cannabis consumer that desires the most natural experience, the cleanest cannabis, produced without the use of any pesticides. We look forward to driving this product category as the industry evolves. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 43 Local Fresno County cultivators and manufacturers will create a continual local feature. This display will feature up and coming cannabis cultivators and manufactured cannabis producers from the City of Fresno and Fresno County areas, expanding as other local jurisdictions begin operations. This feature will be located in the front of the sales floor, immediately available upon entry from the lobby. Supplementing our vendor-supplied products, we will be pioneering a line of Fresno- themed private-label and controlled-label products from our ownership teams’ production facilities and controlled label products from our most trusted vendors. These products will be named after notable streets and landmarks in Fresno and will be offered at a discount to Fresno City residents. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 44 Section 1.6.1 vi. Delivery Procedures Successful transport and delivery of cannabis goods from retailer to consumer entails a broad range of skills and management that requires a unique business model, separate from retail sales. As with all retail businesses, customer service and satisfaction are a top priority, but to maintain that relationship responsibly within the cannabis industry, having detailed supply-chain logistics as well as a robust software platform is be crucial. In effort to reach as large a consumer base as possible, as well as provide services to those unable to travel, we have created the most secure and reliable delivery platform in the industry. The following is an outline of the extensive protocols, policies and logistical plans developed by Fresh Farms to ensure secure and reliable transportation of cannabis product through our city. Driver Training Prior to employment with Fresh Farms every delivery driver will be vetted to meet a specific criterion. Every delivery driver must: 1. Be at least 21 years of age 2. Maintain a State of California drivers license, current and in good standing 3. Have the minimum required insurance to drive in the state of California Once these criteria have been met, each prospective employee’s driving records will be inspected, and strict standards for past performance will be applied. Once hired and prior to conducting their first delivery, each employee will undergo a strict and thorough training program that focuses on all local and state regulatory requirements, safety and security procedures, and in-depth interaction with our software platform. All employees, including drivers, are required to adhere to a strict zero-tolerance policy for drug and alcohol use and each will agree to randomized drug screenings for illicit substances. During deliveries, each employee will be responsible for carrying all the necessary paperwork and credentials required by local and state law. These include: 1: A copy of the company’s current cannabis license 2: Government-issued identification 3: Company issued identification badge meeting state law requirements 4: All other paperwork necessary to make deliveries, including delivery manifests Once vetted and trained, each new driver will be paired up with an experienced member of our team to ensure they are confident and comfortable with their role and responsibilities, enabling them to better handle unexpected situations should they arise. Employees without prior cannabis delivery experience will be paired up for a minimum of ten delivery shifts to ensure they are familiar with our procedures, our software, and our neighborhoods. Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 45 Any customer placing a delivery order must provide a physical site address for the delivery to be made, and that address must adhere to a specific set of guidelines. Deliveries will never be made in the following circumstances. 1: To a mobile vehicle or PO Box 2: A location outside the State of California 3: An address located on publicly owned land or building leased by a public agency 4: Any location on tribal land or to a tribal member unless permitted by tribal law When delivering cannabis goods, the staff member will only be permitted to travel: 1: From the company’s licensed premises to a delivery address 2: From one delivery address to another or return from a delivery address back to the company’s licensed premises. 3: Without deviation from the assigned most direct path, unless extenuating circumstances are encountered, such as necessary rest, fuel, vehicle repair, or road conditions create an unsafe, impracticable, or impassible situation. Vehicle Security Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 46 Vehicle Fleet Our vehicle fleet at Fresh Farms will be one of the private faces of our company. We will never include any advertising on our vehicles and no cannabis products or cannabis depictions will be visible from the outside of the vehicle at any time. Each delivery of cannabis goods will be delivered in person using our fleet, and staff will not be allowed to use their own vehicle or any vehicle not registered with our business and the state as a cannabis delivery vehicle. Initially a small fleet of two vehicles will be owned, maintained, and operated solely by Fresh Farms. Utilizing two fully electric 2021 Mini Cooper Electrics for all deliveries, Fresh Farms will provide the City of Fresno and the State Bureau of Cannabis Control with all information for vehicles used to deliver cannabis goods. These include: 1: Vehicle make, model, color 2: Vehicle identification number 3: License plate ID 4: Department of Motor Vehicles registration information All vehicles will be subject to a strict dealership maintenance routine and have full-time onboard GPS tracking, both of which will be available to regulators. All delivery vehicles will comply with regulations set forth in the Fresno Municipal Code. In-Transit Security Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 47 Transaction Procedures All delivery orders will be completed by phone, in-app, or via our integrated e- commerce platform before the order is prepared. The customer will be reminded that age verification will be required at the time of purchase and the time of delivery in accordance with Fresno Municipal Code. Utilizing real time inventory tracking will allow for immediate generation of accurate delivery manifests which allows for orders to be prepared instantly for delivery and properly staged in accordance with delivery protocols. No delivery will be allowed to leave the premises until everything has been entered into the system, and invoice has been generated, and two delivery manifests have been created to be transport with the driver. All orders once received will follow a predetermined order. All orders will be packed by designated staff and staged in the secure product storage room. As product is gathered and packed, all tracking information will be entered into the POS software as a delivery sale. The system automatically verifies that the order will not exceed purchase limits of 28.5 grams of cannabis flower and 8 grams of concentrated product per customer per day for recreational use. In addition to those guidelines, at no point will a delivery run include cannabis goods worth more than a combined total of , which will be determined using the current retail price of all entailed cannabis goods. Store staff will create a Delivery Request Receipt prior to each delivery containing the following information: 1: Company name and address 2: First name and number of sales staff and delivery staff member 3: First name of customer and company-assigned customer number 4: Date & time of delivery request; delivery address 5: Detailed description and amounts of all product requested for delivery The product description will include weight, volume, or any other accurate measure of the amount of cannabis goods requested. The final summary will include description of product, as well as the total amount paid for the delivery including all taxes and fees and any other charges related to the delivery, the date and time delivery was completed, and the customers signature confirming details and successful delivery. Fresh Farms will utilize Greenbits® POS systems for all transactions. This system allows for transactions to be completed prior to delivery as well as through the use of a Commercial Cannabis Application – Retail SECTION 1: Business Plan Fresh Farms, LLC | 48 mobile tablet that can be used in the field to collect payment, complete transactions, and keep Metrc and company inventory updated in real time as deliveries occur. Before leaving with the delivery, a retail staff member and the delivery driver must verify the accuracy of the paperwork and the packaged product. Orders may only be adjusted if items are removed from the order due to a customer’s request. All items removed from a customer’s order will immediately be returned to the storefront for inspection and restocking. Before delivery, the customer will be informed that once a successful transaction is completed at the delivery address, returns will no longer be accepted unless processed in accordance with out store return policy. Before final delivery and completion of the transaction, delivery staff will be properly trained to ensure the person buying and receiving the product are of age and legal right to do so, verifying the customer is over 21 or that customers with a valid doctor’s recommendation are over 18 years of age. These documents are required and must be submitted for inspection before every delivery may take place, including for repeat customers. Legitimacy of the documents will be verified using a visual inspection of the customer in addition to electronic verification by our mobile scanners. If diversion, or suspicion of diversion is witnessed, the delivery may not take place and if further investigation proves deceit, this may lead to a ban from that customer placing an order again. At the time of a successful delivery, the staff member will provide the customer with two copies of the Deliver Request Receipt, one of which the customer will sign and return to the staff for company records, and the other the customer will be given for their own records. Software Integration Fresh Farms has created a custom Delivery Platform which will combine and integrate all of our utilized systems. Combining our tracking and inventory management system, Green Bits®, our e-commerce platform, GeoTab® GPS tracking, and the in-car video surveillance system, will give us unprecedented oversite from beginning to end of each transaction. Management, drivers, security personnel, and law enforcement will be able to access this information in real time, allowing information on cash, product, delivery route, as well as information on the final destination, to be distributed as needed. This comprehensive platform blending real time inventory tracking combined with thorough safety and security features serves not only to protect the company’s product, but also the surrounding community from potential problems caused by unwanted diversions of cannabis product. Commercial Cannabis Application – Retail Fresh Farms, LLC | 49 SECTION 2 : Social Policy & Local Enterprise Plan SECTION 2 – POLICY & LOCAL ENTRPRISE PLAN .................................................... 49 2.1 – Living Wage .................................................................................................................. 50 2.2 – Employee Benefits ....................................................................................................... 52 2.3 – Training & Education .................................................................................................... 55 2.4 – Social Policy Recruitment ............................................................................................ 60 2.5 – Local Enterprise............................................................................................................. 62 2.6 – Staff Positions ................................................................................................................ 67 2.7 – Labor Peace Agreement ............................................................................................. 70 2.8 – Workforce Plan .............................................................................................................. 71 2.8.1 – Local Hiring .............................................................................................................. 71 2.8.2 – Apprenticeships / Industry Training ..................................................................... 73 2.8.3 – Living Wage ............................................................................................................. 75 2.9 – Social Equity Business Incubation ............................................................................. 75 Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 50 Section 2.1 – Living Wage Fresh Farms strives to not only be a local job creator, but a business that provides career benefits and opportunities that will follow individuals long after their employment with us has ended. To truly give back to our local communities we will offer personal and professional growth opportunities as well as comprehensive benefits that take each individual personal needs in to account. In order to cultivate an environment with dedicated staff focused on customer satisfaction and business growth, our ownership team will implement actions that actively show staff their time, effort and participation are greatly appreciated and rewarded. Economic success for all employees will be achieved by providing holistic financial security. Fresh Farms’ will utilize living wage models using data from federal poverty guidelines as well as data provided by MIT (Massachusetts Institute of Technology), to determine the appropriate levels of compensation for each staff member. MIT uses a market-based approach that draws upon geographically specific expenditure data related to a family’s likely minimum food, childcare, health insurance, housing, transportation, and other basic necessities costs including clothing and personal care. The living wage draws on these cost elements and the rough effects of income and payroll taxes to determine the minimum employment earnings necessary to meet a family’s basic needs while also maintaining self-sufficiency. The analysis further breaks down the required living wage for various family structures. Staff members will be compensated with a living wage that far exceeds State of California and City of Fresno minimum of per hour for businesses with more than 26 employees. A statistical model produced by MIT for the City of Fresno dictated a minimum living wage of per hour, and our minimum wage will exceed this metric as well. Fresh Farms’ entry level positions will be at a level commiserate with MIT’s individual whose family consists of two adults and two children, which currently sits at per hour. Senior staff will be compensated at the minimum standards of a single parent, currently at per hour. Management staff will be compensated at the level of one working adult with multiple children, currently at per hour, or roughly annually based on weekly work requirements. These levels of compensation will create a driven and caring staff, who will be given semi-annual evaluations that give them opportunities to increase their benefits and wages based on merit and productivity. The following page includes a chart of staff wages and metrics used to determine individual pay and benefits. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 51 Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 52 Section 2.2 – Employee Benefits Fresh Farms’ will offer work benefits packages unrivaled in the area, providing our staff with the ability to maintain a healthy life-work balance. Combining wages and our extensive compensation package, each employee will roughly account for per year of expenses including payroll taxes. These numbers are incredible, and exciting for the surrounding area as we are able to lift the economic community as a whole through our staff members. All members are guaranteed access to equal healthcare, paid time off, and profit-sharing programs, ensuring a staff dedicated to providing the best customer service possible as well as encouraging them to live happy, healthy lives. Life/Work Balance One of the primary foundations of a competitive benefits package is ample paid time away from work. Our company fully intends and strives for an environment where every employee loves their job, and as such all members will become eligible for sick and vacation leave after successfully completing their 30-day probation period. These days will accrue over time and equal 5.7% of the number of hours worked. This amounts to approximately three weeks per year a full-time employee can spend with their friends and family. A study performed in 2019 focused on the benefits of a balanced life/work schedule showed great benefits, both for companies and their employees. This study highlighted the importance of an integrated wellness plan, showing that employees with good life/work balance were happier and felt more meaning in life and purpose in their career. This leads to a workforce with higher morale, increased productivity, and a higher level of commitment to the organization as a whole. Fresh Farms’ has incorporated these findings, as well as many others to create the most pleasant and productive atmosphere possible. Employees will be able to dictate or have greater control of their schedules and hours in comparison to other employment environments, all while still meeting all business needs and requirements. Policies will be implemented permitting opportunities for “split-shift” assignments, allowing staff members with education or childcare priorities to be able to fulfill all obligations and desires. Fresh Farms’ will work individually with each employee to ensure they have the life/work balance plan they desire. These plans also include and exceed the Family and Medical Leave Plan required by the State of California for all staff, as well as provides continued wages for staff caring for unhealthy relatives or spending essential bonding time with their newborn infants. Health & Wellness All employees of Fresh Farms’ will enjoy full insurance benefits, including medical, dental, and vision. Medical insurance will be completely contributed by Fresh Farms’ with large Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 53 discounts included for family member plans. This, combined with a flexible health care savings account, will afford all employees with a safe and stable healthcare plan. In addition to these provided benefits, a wellness program will be available that promotes healthy lifestyles and behaviors, including programs designed to promote healthy eating, exercise, and tobacco or alcohol cessation. All of our programs take a progressive approach to healthcare and include mental health services through the Employee Assistance Program, as well as desired supplemental programs such as life, home, renters, and veterinary insurance. Long term and short-term disability options will also be offered to every employee, regardless of preexisting conditions. Another benefit enjoyed by Fresh Farms’ employees will be public transportation stipends. To encourage behavior beneficial to the sustainability of our environment, employees will be reimbursed for all costs associated with the use of public transport or green energy transport. These costs include any costs incurred with the use of bicycles such as helmets, lighting equipment, or visual safety apparatuses. In concurrence with this policy, and employees that utilize these green options that encounter emergency situations requiring them to leave immediately will be complete covered by Fresh Farms for any rideshare service employed. Profit-Sharing To further foster employee engagement, a minimum of 1% of all profits will be set aside yearly and distributed to all staff in annual bonuses. This estimated bonus each year will not only give them more financial stability, but also gives each a sense of involvement and ownership. The management structure will be organized to focus on sales, logistics and operations teams with further built-in bonus structures. Additional financial incentives can be obtained by setting sales and cost minimization goals in each department. This incentive program will enable employees to play an important role in the overall success in the company and therefore themselves, offering a sense of autonomy. Employees will be encouraged to agree to commitments to reduce costs, drive sales, and find the most efficient labor techniques to make our business more successful. Life & Career Advancement Fresh Farms has developed detailed plans to assist staff members lives outside of the work environment. Many individuals face difficulties obtaining employment due to perceived stains on there record related to cannabis convictions. Most are unable to complete the paperwork themselves due to the high-costs and complexity of the issues. We will work closely with a designated local law firm to actively expunge these records permanently. As candidates are brought into our organization, any background checks that have revealed previous cannabis arrests or convictions will be approached by our executive staff members and referred to our legal partner to begin the proceedings of expungement. These benefits are offered to the staff at no cost and our ownership team will offer quarterly seminars open to the community on cannabis expungement as detailed in Section 7 – Community Benefits & Investment Plan. Our company is determined to make our employees lives better. One way we will accomplish this is by creating opportunities and milestones for each member of the staff, outside of their professional development. Employees will be encouraged to enroll locally at Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 54 Fresno Community College. The costs of enrollment and tuition will be covered by Fresh Farms in proportion to their hours worked. Fresno Community College enjoys a long history off success. Established in 1910, FCC was California’s first public community college and has been crucial in many changes throughout the state in regard to public education. A certified Hispanic- serving institution, FCC enjoys the title of the largest nursing program in California, transfer agreements to the University of California and California State, as well as many nationally recognized student organizations. FCC also maintains an athletics program nationally recognized with success in all men and women’s sports and over 80 certificate programs, 24 transferable associates degrees and 120 full associates degrees are offered, including disciplines in child development, culinary art, dental hygiene, and athletics. Encouraging and assisting our employees to further their educational development will hopefully give them confidence to enter the workforce with their heads held high. Employees who have already completed their education to their highest desired level and are repaying student loans will be offered a re-imbursement schedule that matches with Fresh Farms’ tuition program. All members of management and staff of every level will be eligible to enroll in a tax deferred 401k retirement plan. This plan will allow staff to put away up to per year in a long-term account with equal funds matching by Fresh Farms. Throughout an employee’s tenure with Fresh Farms, they will be trained and mentored to develop skills that can be transferred to other career opportunities in hospitality, retail sales, and other similarly related fields. In our program, staff will consistently undergo enrichment training, gain experience through vendor and producer site visits which will translate to the cannabis industry as a whole. Our ownership team will use their extensive network to create multiple paths of advancement through the organization and cannabis industry. As staff moves on from Fresh Farms, they will be the most knowledgeable, best trained and highest class of professional in the industry, giving them unlimited long-term career options. Fringe Benefits Being employed by Fresh Farms will make individuals more than just members of the Fresno retail workforce. Each employee will be a member of positive movement, involved throughout the community in many ways. Our organization will leverage our staff as resources to better our community through volunteering, donating, and hosting many local charity events. Being able to provide job opportunities as well as record expungement for individuals suffering from the unnecessary war on cannabis is a great first step, but it is only a first step. Re-integrating into society those who have been disenfranchised can not be done by only providing a steady paycheck but must be matched with a commitment to social reform and justice. To further our desire to help all disenfranchised Americans, Fresh Farms is committed to complying with the letter and the spirit of the Americans with Disabilities Act of 1990 and the related Section 504 of the Rehabilitation Act of 1973. Recognizing that individuals with disabilities may require accommodations to perform and succeed with their job tasks, our management team has developed a comprehensive accommodation and sensitivity training program for all staff members. Any staff member who suffers from a disability will work with our management team to ensure reasonable accommodations are made to allow for continued performance throughout their employment. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 55 Section 2.3 – Training & Education Education of our staff begins on day one. Our senior staff, led by owner Sigrid Lopez, will combine their many years of experience with cannabis retail operations and their deep understanding of the industry as a whole to train our employees using a library of essential training materials. The cannabis industry is currently in the “age of compliance”: maintaining compliance is crucial and this means that every staff member regardless of previous experience, job duties, or aptitude will receive the same comprehensive information and training in regard to regulatory compliance. Each manager will employ their own personal training methods, but all will employ our educational platform that uses diverse active media such as interactive challenges and games that immerse the individual in their learning experience, thus increasing retention of critical subject matter. As staff are brought on board, specially developed materials designed to quickly assimilate them into the workforce will be provided. During this initial orientation, new staff will be given a tour of the facility, introduced to all staff and security, as well as shown to the critical differences between restricted and public areas. The first ninety days of employment will be a probationary period in which staff will be trained and educated in all facets of the business and facility, as well as the necessary tasks to complete associated with their individual contribution to the success of our business. After completing their initial probationary period, continuing education throughout their tenure will be provided through activities and modules with comprehensive tests periodically given to assess each persons’ understanding and retention of the materials. Records of job training and test results will be kept in personnel files for each employee throughout their time with Fresh Farms and safely stored in our secure access area, as well as maintained electronically. These files will be used to track employee progress as well as used in annual performance reviews. Files will be digitally backed up and maintained for a minimum of 7 years after the end of an individual’s employment. The complete scope of our training materials takes up pages that number in the hundred and therefore could not be completely contained within this document. The following sections are a description of a sample of the most important documents believed to be the most critical to creating well-rounded staff members. Rules and Regulations While our training materials have been designed for educational purposes and job enrichment, we take a hard line with state and local compliance. Our staff are made aware of our zero-tolerance policy for any actions that could potentially result in a violation of state or local regulations including track-and-trace, laboratory testing, waste management, recall procedures, operating standards, and unlawful sales. Our right to do business depends on our ability to properly instill in our staff an understanding of the many laws and regulations affecting our business. Beyond the letter of the law, training materials outline the personal duty of each staff member to fully comply with these standards at all times and promptly report any violations. Our compliance program translates the complicated language of state regulations and local ordinances into something that our staff can easily comprehend. Topics include relevant provisions from the State’s Medicinal and Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 56 Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), the related rules published in the California Code of Regulations issued by the State’s Bureau of Cannabis Control, HIPPA, Department of Food and Agriculture and Department of Public Health, as well as Fresno City Ordinances. Most importantly, these training materials are continually reviewed and updated with changing regulations. Our staff members will also have opportunities review already constructed state programs like the California Department of Public Health’s “Let’s Talk Cannabis,” a health information and education campaign that details California cannabis laws and the potential health impacts of cannabis use. We have developed advanced sensitivity, disability, and cultural awareness training materials that will be made available for staff. It is important that our staff members interact appropriately with elderly visitors and those with disabilities. This training material will be founded on information supplied by the Americans with Disabilities Act National Network and supplemented with direction from Owner Candy Heredia, and will educate staff members on some higher-level customer service topics such as understanding physical limitations, stigmas associated with persons with disabilities, allocating accommodation space, and potential challenging customer service situations. We acknowledge that some of our customers may have issues with transportation and movement ability which is why in addition to having Store Managers CERT trained, we will train every staff member on how to provide proper assistance to those with mobility challenges. Customers will be able to call ahead or register online for assistance. Once verified through our surveillance system, our staff members will then be dispatched to meet the customer outside with a security officer and escort them into our lobby. Staff will be trained to assist patrons throughout the store and provide assistance as needed. Cannabis Products Our entire team must be able to properly identify and distinguish between a wide array of cannabis products, while understanding the role of each as part of our customer’s medical use or recreational activity. With over a thousand strains currently in the market, our training materials are designed to enable our staff to guide the customer to a genuine understanding of our products. These modules will cover potency of all the products we carry, including flower, concentrates, topicals, and an assortment of edibles, beverages, tinctures, and pet products. These training modules will also include information about our targeted producer partnerships and allow our team to give detailed backgrounds on local, small, social equity, minority owned, and natural offering vendors. For our Cannabis Consult staff members, we will provide supplementary learning on in- depth topics such as terpenes, cannabinoids, and follow the path from seed to sale. It is important that our staff knows the fundamentals of cultivation and manufacturing, and the series of steps that result in the finished products we sell. These educational materials will include the elements of a cannabis plant, a contrast between traditional and state-of-the-art cultivation techniques, cannabis strains, seed composition, variable growing environments, the importance of controlling pH, humidity and light levels and their corresponding impact on cannabis viability, Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 57 quality, and potency. On the manufacturing side, our staff will be versed on how cannabis is processed; extraction using volatile and non-volatile techniques. Additionally, we want our sales staff to understand the future of cannabis, understanding the terms “natural” and “organic,” and the rationale behind our advocacy for legislation that will ensure clarity and consistency in labeling. Health and Wellness Our staff will get a basic understanding of the endocannabinoid system and learn how cannabis interacts with the body, the properties of psychoactive and non-psychoactive compounds, methods of consumption, strain differentiation, and the fringe aspects of the cannabis product line, including high-potency concentrates with novel delivery methods and specialized cannabinoid blends with specific health and wellness applications. Initially, staff members will be trained on proper product handling, including the safe and secure storage of cannabis products. Advanced education modules explore education topics including the potential harms of using cannabis while pregnant or breastfeeding and potential risks of overusing cannabis in a healthy adult. While drawing a distinct line between information dissemination and medical advice, staff will be trained on the use cannabis as a natural alternative to pharmaceutical drugs for pain management, menstruation, anti-aging, sleep aid, mobility, sexual enhancements, relaxation, anti-nausea, appetite stimulation, sedation, arthritis, gastrointestinal disorders, as well more severe physical afflictions such as diabetes and HIV/AIDS management, and even psychological disorders such as PTSD. Most importantly, staff will be trained on the inappropriateness of giving medical advice to customers and will be required to follow strict guidelines for product recommendations. Customer Interactions We want our staff to not only be knowledgeable about our products, but to have a friendly disposition and to project an approachable demeanor. We cover customer greetings, needs assessment, conflict resolution, satisfaction commitments, and sales awareness. Our customer service training is one of the most important factors that will make us a truly unique operator in Fresno. We will assess customer service attitudes and ensure that they are in line with our overall company vision of thoughtful, friendly, knowledgeable, engaged service. Each interaction with a guest will be unique and we want our staff to build relationships with our customers and take time to care for them. We will review policies for challenging customer situations, customer complaints, and problem solving. We also require that our staff presents a confident, manicured appearance while still being able to maintain a personal expression of style. We will encourage neat and clean hygiene as well as a business casual dress code, and staff credentials. Our staff will have the cohesiveness and authority of a uniform while still maintaining their own individuality. With up to three hundred customers expected to visit Fresh Farms each day, our staff members need to confidently and efficiently handle cash and limit the potential for errors. Our staff members will undergo extensive cash handling training with materials derived from our ownership team’s experience. Staff will be trained on identifying counterfeit bills, correctly Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 58 balancing cash registers, and preparing cash drops. Training will be conducted as a concerted effort between our operational team and our Security Agent and sales associates will be held responsible for balanced cash tills at the end of every shift. Supplemental Learning In addition to our traditional training modules, supplemental training materials will be made available to staff for enrichment purposes and will include coveted opportunities such as immersive and first-hand experience with our vendors. Staff will be given the opportunity to attend enrichment trips, either management or vendor-led, to licensed production facilities to see how our cannabis products go from seed, to full flower, to sale, or further refined through the manufacturing process. Our team will learn about who our company does business with, their values, the products they provide to our store, and the reasons we have chosen them to be our partner. We will place a special education component for our small and local producers, social equity producers, minority owned, and all natural and organic producers so our staff will be able to highlight these vendors in their customer interactions. Our customs and traditions training will teach our staff to stay locally relevant and to help them explore the basic landscape of the diverse group that shares the area. We will discuss values, morals, ethics, etiquette, harassment awareness & prevention, as well as the introduction of a multitude of cultural perspectives through interactive and engaging activities. We help staff to explore and assess personal behavior and bias, assumptions, and stereotypes. Upon completion of these sessions, our staff will be better equipped to identify and address sensitive situations more cohesively and reduce the potential of discrimination related issues and liabilities. Please see the following page for a mockup of our internal training program. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 59 Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 60 Section 2.4 – Social Policy Recruitment The City of Fresno outlined the minimum requirements for Social Policy recruitment (Article 33, Section 9-3316(b)(1)) to include a requirement to: 1: Hire individuals for a minimum of one-third (1/3) of the total annual work hours performed at the business who has an annual family income below 80% of Average Medium Income 2: Have been convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current State law 3: Have lived in a low to moderate income census tract in the city for a minimum of three years 4: is a veteran, former foster youth, unemployed, or receiving public assistance Prior to the slow path to legalization of the cannabis industry over the last few years, our ownership team was already committed to good business practices as well as social justice and they had interwoven these standards into the operating plans of their respective businesses. The establishment of the Fresno Social Policy was a great step forward, and we are committed to the ongoing attempts to undo unjustified wrong in relation to the criminalization of cannabis, as well as retroactively take steps with individuals who have personally suffered. Our hiring plans involve active recruitment of members of our community who have suffered due to cannabis arrests, convictions, economic disadvantages, and all other types of adversity. Our time, money and research capabilities will be dedicated to finding and recruiting any individuals in need of assistance. This will be combined with our local commitment which mandates that our staff will consist of a minimum of 75% local residency throughout all of our workforce. More details regarding this company wide mandate may be found in Section 2.8 – Workforce Plan. More related to social equity, our Social Policy Program states that 50% of local staff members, or roughly 40% of our entire staff will be part of our local social equity staffing mandate. All social equity positions will be reserved for individuals that fall within a specific scenario such as single parents, living in poverty, those facing discrimination and socioeconomic barriers, or managing previous cannabis related arrests or convictions. Furthermore, those who reside in areas overtly effected by impacts of the “war on drugs” will be actively recruited thus empowering these individuals to lift up themselves and the entire surrounding community as a whole. While always maintaining any minimum, the requirements established by the Fresno Municipal Code, our program goes further by enhancing the language to pursue the intent of the regulations set forth by the City of Fresno’s social provisions. These enhancements are not in place to disparage the regulations of record, but to further strengthen them. An example of the difference between minimum requirements and those we commit ourselves to are the unemployed qualification and low-income requirements. Strict adherence to the language would only require that a third of our staff be simply unemployed at the time of Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 61 hire or have a household income of almost per year for standard-sized families. Our program goes far beyond these minimum requirements, ensuring that our company is a solid source of social and economic reform for our community as a whole. We also have committed to surpassing state definitions of hiring Veterans, extending our program to all retired members of armed forces and law enforcement while making sure we still comply with any standards required by the City of Fresno by ordinance. During our program, local social equity individuals will receive the identical training to our other staff members. However, we will go further with these individuals to include additional supplementary training such as personal development, mentoring, and resume building that will allow them to obtain permanent employment with us or elsewhere within the local community. The individuals selected will receive all the pay, benefits, and level of autonomy as any other staff member, but will additionally receive training by our experienced staff members to fill in any knowledge gaps that may have existed in their previous employment situations. This employee will receive training in shipping & receiving, customer service, cash handling, as well as general sales knowledge. These individuals will regularly meet with the ownership and management teams for feedback and to discuss their development through the program. As positions are vacated at the end of each individual’s development trajectory, our management will work closely with community leaders and organizations to identify new individuals who will benefit. This creates a cascade of personal and professional development throughout the City of Fresno. Once operations are established, we look forward to expanding this program to include more opportunities for advancement and additional higher-level training programs. Fully funded by Fresh Farms, our program will work hand-in-hand with the Fresno Regional Workforce Development Board, who’s primary objective is encouraging and supporting economic growth within Fresno County and increase employment opportunities for short-term and long-term. These individuals will be selected only from the local Fresno community and will have a permanent place on our roster and each quarter a review of all numbers will be taken to ensure our commitment to local and social equity hiring is maintained. As these reviews take place, additional positions will be added as necessary to continuously meet our set goals. Staffing Commitment 33.33%40.00% Low Income Low Income 80% of AGI Very Low Income 50% of AGI Cannabis Conviction Misdemeanor or Citation Misdemeanor or Citation Residency Low to Moderate Census Tract Low Income Census Tract Veteran Status Deployed or Decorated Armed Forces Veterans All Retired Veterans & Law Enforcement Family History Foster Care Youth Foster Care Youth or Parent Employment Status Unemployed Chronically Unemployed Public Assistance Currently Receiving Currently Receiving Childcare n/a Single Parents City Reqirements Fresh Farms Standards Social Policy Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 62 Section 2.5 – Local Enterprise At its heart, Fresh Farms is a locally owned and managed operation. Our concept for the highest class of cannabis retail was envisioned with Fresno in mind. Founder and Fresno local Thomas Wood has brought together a team of professionals that are committed to making this a reality. Our ownership team is bound together by a mutual passion for the cannabis industry and a shared belief that our success is inextricably linked to the service we provide to our customers and to our community. Through clearly defined roles in the direction, control, and management of the business, our ownership team will use their combined experience to develop and operate a high-end retail cannabis experience adhering to the strictest standards of quality and safety. We believe it is critical that the considerable experience of our leadership team be harnessed daily for the benefit of our organization, our customers, suppliers, and the community. As such, each member of the ownership, advisory, and management teams will have clearly defined roles and requirements befitting their position. We intend that this commitment will trickle down to every member of staff. Local Ownership The dream of Fresh Farms was conceived by owner Thomas Wood, life-time area local and current Fresno county resident. Thomas Wood is a skilled cultivation Consult and facilities manager who has developed, built and overseen multiple large- scale cannabis cultivation operations throughout California. Specializing in high-tech biology, Mr. Wood understands the proven methodologies behind cannabis cultivation and has improved upon them throughout his years in the industry. He offers an extensive resume of theoretical and practical cannabis research experience in plant genetics, soil biology, plant deficiencies, sustainable remediation, and cultivation from germination to storage and point of sale. Along with a deep mastery of cultivation science, Thomas Wood has served as a supervising facilities manager, managing a staff of 20 retail employees and guiding best practices to guarantee a prime environment for employee safety and a superior customer experience. Seeing opportunity to create a flourishing business in Fresno, Thomas tapped his extensive personal and professional network to create the team that will make Fresh Farms a reality. Thomas will serve as General Manager of Fresh Farms and will focus on making the original vision live in the store every day. This will primarily include maintaining a regular rotation of opening, midday, and closing shifts to give the greatest exposure to the staff, customers, and business operations. Thomas will also serve as the primary “boots-on-the-ground” member of the ownership team, taking part in trainings, customer interactions, staffing decisions, and product stock levels. Thomas believes that in order to have a smooth-running operation, it requires the constant presence of ownership, not to provide a watchdog for staff and procedures, but to uplift the morale of the staff by providing consistent support. Thomas is committed to being a part of the daily operations of Fresh Farms and will take part in all staffing, product line, and sales initiatives. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 63 Sigrid Lopez resides in neighboring Los Angeles County and will be splitting her time between his retail cannabis operation in West Hollywood and Fresh Farms in Fresno. From the beginning, Sigrid has been instrumental in the design, development, and soon the implementation of all standard operating procedures related to compliance and staff training. Built on years of experience in the industry, Sigrid spent months developing stalwart operational plans and policies with the rest of Fresh Farms’ ownership and advisory teams. Sigrid will enjoy an ongoing role in interacting with all levels of staff on a weekly basis, conducting training and providing industry expertise to support the operations team. This will include updating staff on changing operating procedures, new regulations, and the execution of new purchase contracts. In her time away from the actual storefront, Sigrid will be constantly involved in all changes, issues, or improvements to our operational policies. She will be able to leverage the experience from past as well as other current operations to ensure that Fresh Farms has the strongest procedures in the industry. Local Management Our management team will be composed of local individuals that can be available nearby the facility at all times. Two-thirds of store management will be reserved for local Fresno residents and one individual have already been identified. Edward Charles Lanfranco is a third-generation Fresno-born resident seeking to elevate his position in the community by participating as a member of store management. Mr. Lanfranco believes local cannabis businesses have the power to revitalize blighted communities and bring cannabis to those who need it most. Lanfranco, a lifelong academic who is fluent in Mandarin Chinese language, has multiple degrees from the University of California and has established a 20-year career in telecommunications marketing based in Beijing. The Chinese concept of filial piety (honoring and taking care of family) inspired Mr. Lanfranco’s commitment to Fresno to assist ailing residents pursue the vital medical cannabis medications they needed to live full and comfortable lives despite their health conditions. Leveraging his experience in business, operations management, marketing research, government and media relations, he is committed to achieving commercial success with Fresh Farms as a sales manager, responsible for staffing, day-to-day interactions with staff and customers, and the support of marketing promotions. At the same time, he is equally dedicated to making his work in this sector one that his family will be proud of by using proceeds from the business to develop programs and partnerships serving the Fresno community. The remaining local store manager position will be reserved for a Fresno Social Equity resident to be selected based on experience at the launch of operations. This manager will be responsible for all back of house operations including our quality assurance, delivery, and receiving programs. We have availed this management position explicitly for qualified social equity job applicants in efforts to bring diversity of experience to our management team as well helping those most in need. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 64 Local Advisory Board Fresh Farms’ Advisory board has been established to make sure that despite the many upcoming changes in the industry, we remain compliant with both the regulations and the wishes of our community. The Advisory Board is comprised of local community members, each with a specific role in influencing the organization’s policy. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 65 Karen Campbell is a licensed kidney dialysis specialist, lifelong Fresno resident, and the loving Nana of 14 beautiful grandchildren. Mrs. Campbell has compassionately dedicated the past 35 years of her medical career to treating patients with kidney failure and chronic diseases. Every day, she administers life-sustaining treatment and supports her patients as they cope with the pain, anguish, and adverse effects associated with kidney dialysis. For some patients, dialysis is an impossible undertaking without an accompanying prescription cannabis regimen. Mrs. Campbell has seen the dramatic difference that cannabis can make for those who need it most for pain, discomfort, and anxiety. Besides seeing cannabis benefits for patients in her professional life, Mrs. Campbell has witnessed its utility in her personal life, too. When her mother was diagnosed with terminal cancer in 2009, cannabis was the only medication that relieved the associated nausea and pain resulting from rounds of brutal chemotherapy. As a daughter and a healthcare provider, her goal is to ensure that people like her other and her patients can be treated with the proper medication, so she advocates for reasonably accessible, affordable, high-quality prescription cannabis whenever medically necessary. Mrs. Campbell believes that all human beings deserve to live with dignity and is doing her part to support patients’ journeys by advising Fresh Farms on Fresno’s community health needs. Andrew Thompson is a long time Fresno City resident and was born and raised in the Central Valley. He was born in Porterville in Tulare County, and moved to Fresno in March of 2005 to find work and have stayed here ever since. Andrew has spent the majority of his working life in the security industry, both as a uniformed security guard and as a bodyguard doing everything from parking lot security to working large events. Andrew will be leveraging his experience in security to serve as Security Liason on our Advisory Board. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 66 Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 67 Section 2.6 – Staff Positions By the end-of-year two, we expect Fresh Farms to staff 34 full-time and part-time staff members, with additional salesforce and delivery staff levels increased proportionally as customer count increases. Of these positions, we are outlining a minimum of 75% of staff to be local Fresno residents, half of which are reserved for local social policy positions. While we will maintain this minimum threshold at all times, we have woven a more comprehensive processes into our hiring plan for each position. Please see our organizational chart on the previous page for a holistic view of the organization. Our staff levels are broken down into the following categories. Cannabis Receiving Staff (8) Behind the scenes of the sales floor and the outgoing delivery vehicles is a team of individuals determined on instituting an accurate and efficient supply chain process. Under the direction of owners Thomas and Sigrid, receiving staff will process all incoming cannabis product deliveries in accordance with stringent standard operating procedures. They will be responsible for the maintenance of accurate tracking information for all cannabis orders and receive deliveries when they arrive according to a predetermined schedule. Back of house sales staff will complete the technical aspects of online order preparation and the staging of delivery orders. We intend for this position to be made up mostly of our local equity program as it is an easy transition into the workforce without the added pressure of customer interactions. In this position, staff can learn basic job skills while learning about our products, safety, and protocols. Once these skills have been mastered and additional training programs have been completed, these staff members can be transitioned into a sales or lobby position if requested. We will staff two staff members in shipping, receiving, and quality assurance, and one in back of house sales, and four delivery drivers initially. Staff members will be allowed mobility among positions to ensure they are well-rounded and have a broad range of skills. Lobby Staff (3) Lobby staff is another potential entry level position, but every position in our organization carries with it important responsibilities. Newly hired staff will complete our basic education modules giving them the skills to have meaningful interactions with customers as well as all regulatory and compliance training related to their intended job duties. With pride, we intend that these individuals may have little to no experience in the cannabis industry but can be easily caught up with comprehensive training in customer service, compliance, and basic interface with our software platforms. Lobby staff will be responsible for greeting customers, inputting new customer information profiles, verifying identification and paperwork, scanning any medical documentation, phone and online customer communication, and maintenance of their workstation. Lobby staff will be trained in the use of Greenbits® for the purposes of ID verification and interface with the customer loyalty program. This position provides a great transition Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 68 for locals looking to break into the cannabis industry from retail and customer service careers or for one of our back-of-house staff. Ideally, staff in this position will transition to the sales team for further education and advancement of their career. Cannabis Sales Staff (7) Our cannabis sales team will be comprised of individuals that focus on customer service and product knowledge. Sales staff members will have a deep understanding of our products, policies, procedures, and most importantly, our vision. Individuals in this position, as a prerequisite, must have prior professional cannabis experience, or have completed our in-house staff education modules, demonstrating an understanding of all aspects of retail cannabis sales. As part of our launch strategy, six months prior to opening, we will be sourcing, staffing, onboarding, and educating residents of the local area in targeted job fairs that will allow our upcoming staff the opportunity to become familiar with their job duties before being faced with actual product and actual customers. We will be extending this training to business participants in Fresno’s Social Equity Program for all of their staff members as part of our incubation program. This will allow social equity businesses to receive the benefit of industry-standardized training without the added cost. Additionally, as part of this campaign, we will offer educational modules on safe and responsible cannabis use for the general public. We intend that before we are operational, we have cultivated a highly trained staff for our business as well as a social equity business and have helped the public understand our place in their neighborhoods. Trained staff will be able to discern the differences in product offerings, properly relate information about potency and variety, and be able to answer a wide range of customer questions. Once we open, they will be responsible for assisting customers on the phone, online, and in person on our retail floor. Customers in the store will receive the undivided attention of the sales staff through the duration of their shopping experience and all staff member will be focused on the pillars of knowledge, engagement, and compliance. Cannabis Consult (2) This position will be reserved for staff that are recognized as experts in cannabis products. These senior members of staff will have extensive real-world cannabis experience in sales, cultivation, manufacturing, or cannabis science and have graduated our advanced cannabis training modules. These individuals will have demonstrated a unique and clear understanding of the cannabis industry and products. They are leaders in the store and are instrumental in the training other members of staff, customer interactions, and product knowledge. Cannabis Consults will be available in-store daily to provide additional knowledge to the staff and customers as well as run our online educational platform. Consults will be responsible for maintaining our customer-facing education modules which cover safe and responsible consumption, legal responsibilities, and local regulations, as well as informative material on properly discerning between the broad range of products offered at our store. Monthly, Cannabis Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 69 Consults will host a live-video question-and-answer session through our online education platform. Fresno residents and the general public will be able to ask any question about cannabis, cannabis products, and the industry. While this position is education-based, we intend for it to be a steppingstone into store management in our organization or in the greater industry which will increase the general knowledge of cannabis industry managerial staff. Store Management (3) Staff that has shown an extreme aptitude for customer service, education, product knowledge, and business operations will have an opportunity to join a management training program. Management is responsible for coordination with vendors to schedule deliveries, oversee daily operations, maintain proper staffing levels, verify inputs into the software systems, and make decisions as necessary when a member of the ownership team is not present. Our managers will perform performance reviews for our staff and facilitate staff training with the aid of our Cannabis Consults and robust educational platform. In regard to day-to-day operations, our back-of-house manager will be responsible for overseeing all shipping and receiving, quality assurance, and delivery staff. This position is heavily logistics-based and requires an individual with a strong attention to detail and ability to follow protocols and standard operating procedures. Our sales managers handle the softer side of our business and are responsible for overseeing staff on the sales floor as well as our online sales team. Sales managers will relate marketing and advertising agendas to the sales staff and maintain the daily schedule. Our store managers are the eyes and ears of the organization and an integral part of the local community. As such, we are committed to maintaining our back of house manager and one sales manager positions exclusively for local residents, two-thirds of our managerial staff. Our initial on-the-floor management team will consist of our owner Brian Stippey, and two Fresno City residents Edward Lanfranco and one to be hired at the commencement of operations with oversight owners Sigrid Lopez and Thomas Wood. Our local back of house manager position will be reserved for a local member of the Fresno community as part of our greater social policy program, allowing those most harmed to participate in store operations at a high level and will maintain at least one senior management position for social equity hires at all times. The Social Equity manager selected for this position will receive support from the rest of the management and ownership teams in essentially establishing a long-term lucrative career after years of adversity and struggle. Our Social Equity Manager position is intended to be a temporary period in which an individual can reorganize their life around a stable career and eventually transition into a role of their choosing within the industry. More information about this program can be found in Section 2.4: Social Policy Recruitment. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 70 Professional Staff (2 at launch) Fresh Farms will initially maintain three full time positions for marketing, operations and sales promotion leads. These positions will be responsible for larger marketing and sales projects and control the function of all online platform sales. This professional staff will be responsible for all launch and first year marketing campaigns and we look to expand this department after year one with additional positions for brand management and expansion opportunities. We will be adding additional professional positions as we transition from retained services to in-house services for additional marketing platforms and promotional agendas as well as expanding our compliance, acquisition, and delivery platforms. Section 2.7 – Labor Peace Agreement Since its adoption into law in 2018, the Medicinal and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) has required applicants for state cannabis licenses with 20 or more employees to provide a statement that the applicant will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement.”[1] (Cal. Bus. & Prof. Code § 26015.5(a)(5)(A).) This labor peace agreement, as defined under California’s cannabis laws, must contain commitments to not disrupt efforts by a union to communicate with or attempt to organize and represent staff, that unions should be granted reasonable access to staff, and that unions will not engage in business interference activities. Assembly Bill 1291 was passed with a signature from Governor Gavin Newsom on October 12, 2019 and became effective January 1, 2020, requiring all cannabis businesses to provide a notarized statement that they will enter into, or demonstrate that it has already entered into, and abide by the terms of a labor peace agreement. If the applicant has less than 20 employees and has not yet entered into a labor peace agreement, AB 1291 requires the applicant to provide a notarized statement as a part of its application indicating that the applicant will enter into and abide by the terms of a labor peace agreement within 60 days of employing its 20th employee. Further, the Fresno Municipal Code Section 9-3316(b)(2) includes requirements for commercial cannabis businesses with five or more employees to sign a labor peace agreement. While employee unions and industry activists battle it out in the courts over the constitutionality of AB 1291, Fresh Farms intends to embrace this commitment. We contend that our staff will be the most highly compensated, supported, and engaged workforce in the industry and will absolutely support their right to organize and will not interfere in any way with labor union involvement. As part of the licensure process, our ownership team will enter into a labor-peace agreement as we intend to have over five members of staff at launch and will provide their signature on the city provided forms. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 71 Section 2.8 – Workforce Plan Section 2.8.1 – Local Hiring Commitment We intend for a business to seamlessly integrate and communicate with the surrounding community. Our staff will be the primary mouth pieces for this as they interact with the public day to day. Our detailed hiring program will ensure that our business is a good representation of the community we are serving as well as create endless opportunities. Our commitment to 75% percent of our staff to be local residents will be the base of our hiring program. At the beginning of our hiring process, ownership will have physical events throughout the city to engage the community as well as get information out to all potential job applicants. Multiple online platforms will be engaged to further get information of our business opportunities out into the public. Our hiring process will include procedures for vetting potential local hire candidates and recruitment staff will ensure that we hire a truly local individual that have knowledge and a foundation in the area. We will consider all candidates residing within Fresno city limits who can demonstrate that they had established residency prior to submittal of an employment application, but preference will be given to candidates with the longest tenure in the community, individuals with family and business ties to our specific neighborhood, and those who are not simply transplants from neighboring areas. Included in this plan is the commitment to ensure that two-thirds of our management staff will be locally recruited. These management level positions give local individuals the exciting opportunity to engage in a long-lasting career withing the cannabis industry. Both the back of house manager and one of the sales managers will be withheld for local residents only, ensuring that the local community is provided a voice in all the higher-level decision-making processes. Managers will be guided through our most advanced training modules which include staffing and scheduling, advanced conflict resolution, asset protection, and leadership skills, and they will receive an in-house management certification that will establish their position within the industry. Fresh Farms’ ownership and advisory teams will ensure that these local staffing levels are maintained at all times in line with any potential staff composition changes. These monthly meetings will review compiled data and metrics to adequately maintain the 75% local staff quota. Our team will be actively reaching out to community members that typically do not have access a living wage. As this industry becomes legitimized, it is important to attempt to undo past wrongs and retroactively help those who have been most affected by the criminalization of cannabis. 50% of our local staff, or around 40% of our entire workforce will be comprised of local social equity individuals. More information about this plan can be found in Section 2.4: Social Policy Recruitment. Fresh Farms will utilize the services of Goodhire® for all research and background checks before giving any individual an official offer of employment. Their platform automatically organizes offenses by high- and low-level classifications using the International Classification of Crime for Statistical Process so that any item noted is Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 72 provided with context. Linking with the Department of Corrections, Goodhire’s platform can efficiently gather any desired records such as date of birth, linked criminal profiles or aliases, watchlist records and sex offender’s status. The program uses experienced support agents to personally review and cross-check records against additional data sources to further verify information and ensure that all Fair Credit Reporting Act and Equal Employment Opportunity Commission laws are complied with. Unverified records are removed to eliminate the possibility of making hiring decisions using unreliable data and through these safeguards, Goodhire® is able to retain a dispute rate of less than 0.03%. Upon verification from Goodhire®, all employees will then go through fingerprinting and background check through the Department of Justice Live Scan process. Once we review the results, a candidate can be offered a position and we will coordinate their orientation. We will rely on Goodhire®’s reputation for accurate service and industry leading best practices. Once all necessary background checks have been completed, the results and personnel files of all hired personnel will be submitted and filed with the Bureau of Cannabis Control and the City of Fresno. This information will be compiled to conform with all background check processes established by the local government. Happy, efficient and properly compensated employees are the backbone of our business. We encourage our employees to challenge themselves every day, professionally and personally. For some members of staff, this means increasing their knowledge of the cannabis business, while for others this means becoming more involved with the surrounding community. We will work tirelessly to ensure that our staff are well-rounded and good individuals, citizens, and neighbors, and do our best to inspire them to be as passionate about what they do for a living as we are. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 73 Section 2.8.2 – Apprenticeships & Training Commitments Baseline Training For all regulatory, compliance, drug-use, safety, and security issues, Fresh Farms will be following a strict zero-tolerance policy. Supporting the operational and customer service staff conduct policies is a very progressive disciplinary action and conflict resolution program that focuses more on improving staff development than punitive measures. This program will assess staff needs on an individual basis and work with the struggling staff member to improve performance, revisit knowledge or understanding gaps, and give them the tools they need to improve. Beyond rules for basic conduct, our manual outlines for each job position, the associated expectations. For customer service and sales staff, we expect that staff are polite, friendly, recommend products, and are 100% engaged with the customer at all times. We address soft skills of assisting customers with disabilities and stress product knowledge. For back of house staff, we focus on compliance, procedures, and accuracy for job expectations. We believe that laying out expectations early in employment gives way to fewer complications at later stages and allows training to be more effective. Our staff policy training imparts the expected conduct standard required of all full and part time employees, including ownership, management, and vendors who conduct business with our store. Topics included in this policy are dress code requirements, substance abuse restrictions, and proper attendance. Strict technology policies are in place to account for all internal network systems such as internet, phone, and security. Our company’s online presence, marketing, and community involvement have strict guidelines ensuring that no advertising or messaging will be delivered to children as well as ensure total compliance with all local community standards. Further explanation of any of these policies can be found in Section 7 – Community Benefits & Investment Plan as well as in Section 3 – Neighborhood Plan. Enrichment Education We strive for our business and our staff to be a step above other companies within the cannabis industry. To achieve this, we will incorporate enrichment training modules for all of our staff. Many existing cannabis organizations offer great benefits to the community and commercial cannabis services, but we expect even more from ourselves and our employees. Once our members have mastered their duties and passed all proficiency evaluations for compliance, safety, and company policies they will be introduced to modules teaching them the finer details of our company, product, and the cannabis industry as a whole. Advanced training modules will cover the science of cannabis, from cultivation and extraction methods to the role of terpenes in the overall cannabis experience, and even how cannabis businesses pay taxes on a local, state, and federal level. Whether these individuals stay with our organization or move on to another with the knowledge they have gained, the industry is better for it. Our on-site Consult will Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 74 answer any questions by customers or staff in regard to our product, their potential for medicinal or recreational use and how to make informed buying decisions. Using strategic partnerships with multiple cannabis education programs, Fresh Farms will offer the best cutting-edge apprenticeships and supplementary training in the industry. These online training modules will be supplemented with materials provided by THC University and boasts seven different certificate programs completely available online. Some of the certificates include Horticulture, Product Differentiation, Cannabis Sales and Cannabis Business Management. All instructors employed by THCU are industry leaders with experience teaching cannabis cultivations, manufacturing, and sales professionals’ techniques that have been collected over the last 20 years. Additionally, THCU has the largest cannabis related job board in the world and programs assisting students with resume and interview preparation. They will be essential partners with us throughout our hiring and outreach procedures. On top of that, we will also oversee vendor-led training and apprenticeship programs. These vendors will conduct on-site training modules weekly, based on their specific products and disciplines. This will allow manufacturers, cultivators, and sales industry professionals to educate staff and the community about their products and their specific roles in the cannabis industry as a whole. In addition to this aspect of our partnered education program, we will also be offering our training manuals and expert staff to aid in the education of employees of cannabis businesses in Fresno’s Social Equity Program. A part of our incubation efforts, our training programs will be open to qualified employees of Fresno City social equity cannabis businesses, as detailed in Section 2.9 – Social Equity Business Incubation. Community Education Our education platform will broadcast throughout our entire community. Our internal training plans and procedures have been adapted to a platform available to the public and allowing cursory overviews of all training materials. This platform will be used to educate the general public about cannabis as well as provide resources to individuals aspiring to join the industry. Section 7.2 – Public Health Education Outreach provides further detail on all our community education plans including a visual mockup of the platform. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 75 Section 2.8.3 – Living Wage Our ownership team is committed and pledges that all compensation offered by Fresh Farms will exceed all living wage requirements by a large amount. A full analysis of our commitment to exceeding these requirements can be found in Section 2.1 – Living Wage. Section 2.9 – Social Equity Business Incubation As an essential piece of our partnership with the community, our company is committed to providing assistance to all cannabis businesses that are accepted by the City of Fresno’s Social Equity Program. Every effort will be made to give back to our community and the city’s cannabis fund. We gladly accept the opportunity to aid the city in its effort to assist all individuals harmed in the war on cannabis. We will additionally support social equity businesses through an incubation program. As industry professionals with a large network of resources, we will assist these businesses in their licensing, compliance, training, launch, and sales strategies and hopefully enjoy an ongoing support role for their business. Our intent is not to see any Fresno cannabis business as competition for market-share, but a partner in serving as an example to the industry. Licensing & Compliance Our efforts to care for and incubate social equity applicants begins in the licensing process. We contend that all applicants selected by the city will be the best organized businesses, the most deserving, and will most likely already have the necessary resources to successfully launch their business. To aid these growing businesses, Fresh Farms will offer our compliance, safety, and land use staff through the entire licensing process including building permit applications for procedural applications for mechanical, electrical, and plumbing. Our land use staff will assist with their entitlement filing packages and interacting with state regulators as they apply for state licenses. Our management team is highly experienced and able to offer licensing assistance for all retail and delivery businesses as well as manufacturing, distribution, and cultivation facilities. During the course of business, Fresno City Social Equity Cannabis Businesses will receive compliance assistance by Fresh Farms’ to ensure they are able to maintain the ability to conduct their business. We will provide access to our in-house compliance staff that ensures that local and state licenses are up to date, all necessary documentation has been provided to local and state regulators, and that all orders to comply are responded to immediately. Additionally, we will review their safety, security, and operational plans at their request to ensure they are in compliance with current cannabis regulations. If requested, we can assist by having our compliance professionals audit their facility as well as their standard operating procedures for potential improvement. Commercial Cannabis Application – Retail SECTION 2: Local Plan Fresh Farms, LLC | 76 Training & Education Our online and in-store training platform will be available for use by the social equity businesses in our incubation program and our staff will be available to implement any systems they require at their facility. We will assist with software and hardware setup and integration, customer service and sales promotions, safety and security, and proper handling of cannabis products. Ideally, our incubation training program will provide a firm foundation on which they can conduct their operations and these cannabis businesses can establish their own standards and protocols. Throughout their licensure, our organization will always be available for ongoing training support. Sales & Launch Strategy To be successful in the very competitive landscape of the cannabis industry, it is critical that businesses have a very effective and efficient launch strategy. This includes making sure all financing arrangements are in place and making sure all hiring and training, advertising, and total integration into the local community have been addressed. Our company will help any Social Equity Applicants devise and execute detailed plans to become licensed, build their facility, and identify any and all skill, knowledge, or experience gaps within their ownership teams. Our assistance with these businesses will mirror our own launch plans and schedule, and we are committed to open our doors simultaneously with theirs to promote solidarity within the local cannabis industry. Once our incubation program is fully functioning and our social equity business partner is operational, we will provide ongoing sales and marketing support through the sharing of expertise and experience as well as joint sales efforts for the duration of the program. Programs involving supply-side incubation will include zero- or low-margin sales partnerships, permanent features and dedicated merchandising space in our store, and representative space in our online marketplace. For our retail incubator program with businesses, we have developed collaborative procedures to boost sales for both organizations. Combined marketing efforts to the unlicensed areas surrounding the City of Fresno and even sharing security and operational staff will allow for greater efficiencies of both businesses. On the supply side, we will use our combined buying power to drive lower product and distribution costs, allowing the social equity business to retain more of its income. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 77 SECTION 3 : Neighborhood Compatibility Plan SECTION 3 – NEIGHBORHOOD COMPATIBILITY PLAN ............................................ 77 3.1 – Complaints ..................................................................................................................... 78 3.2 – Nuisances ...................................................................................................................... 82 3.3 – Odor Mitigation Practices ........................................................................................... 84 3.4 – Odor Sources ........................................................................................................... 85 3.5 – Odor Control ............................................................................................................. 86 3.6 – Odor Control Training & Maintenance .................................................................. 88 3.7 – Waste Management .......................................................................................................... 89 Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 78 SECTION 3 - NEIGHBORHOOD COMPATIBILITY PLAN Section 3.1 - Complaints Using solid security policies, extensive training procedures, and proactive planning we will establish a high level of transparency and access to the community. While we intend to never have complaints that are related to our business, we understand that unexpected events can and most likely will happen. Our management team has established a 24-hour community complaint procedure that allows any customers or residents of the community to be able to directly reach out to our neighborhood contacts at the highest level of our organization. The members of our team responsible for this task will be managed with a collaboration of our management and ownership teams. This ensures that any complaints related to odor, noise, traffic, or any other community concerns will be dealt with quickly. Contact information for our Neighborhood Contact will be posted at our facility as well as given out to all members of the community for easy access. Any communications received will be processed immediately and the best course of action to each event will be taken. All crime related complaints including theft, vandalism, or suspicious behavior will be directly reported to the Fresno Police Department and our security agent. Once this notification has been established, our security will determine the severity of the incident and initiate all proper protocols related to it. The store manager on duty will be responsible for dealing with all odor and noise disturbances, parking and crowd control efficiently and immediately. Our security and staff will also proactively address these issues as they arise. Our primary concern in relation to this issue will be complaints related to the cannabis odor. Our facility’s policies for cannabis containment are very thorough and effective, but any complaints related to odor will be immediately addressed to the satisfaction of the complainant as well as management. These complaints will be addressed by immediately detecting and containing the source according to our odor control program. Noise disturbances and other issues relating to pedestrian and vehicle traffic will be actively addressed and we will use any additional staff needed to minimize the amount of time customers spend in parking areas and within the store. When the need does arise, security will be dispatched to parking areas and non-essential back of house staff directed to sales areas. All complaints including broken equipment, graffiti, and other acts of vandalism will be addressed within twenty-four hours of being received. Section 3.2 – Nuisance contains further information regarding our commitments and response efforts. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 79 SOP 107.001 COMPLAINT PROCEDURE Executive Approval: S. Lopez, T. Wood, May 1, 2020 Compliance Approval: C. Heredia, November 5, 2020 Revised April 2, 2020 Reference(s):Fresno Municipal Code Section No. 11-445; SOP No. 5-6-001 (Records Retention); SOP No. 2-5-001 (Security Officer Procedures) Responsible Parties: Ownership; Sales Manager; Security Agent; All Staff; Security Officer I. COMPLAINT INTAKE A. Thomas Wood will represent as primary neighborhood contact and primary communicator for all nuisance related concerns. B. Candy Heredia will represent as neighborhood contact and primary communicator for all safety related concerns. C. D. In the event that there is a concern or complaint received from a customer in any regards to our business, products, or customer service, including forms: written, orally, or electronically — must promptly report the complaint to the General Manager. E. A Staff Member should not attempt to resolve a complaint on their own. F. When receiving in-person, telephone, or written complaints, Staff Members should offer to provide the individual the number to the General Manager for verbal complaints, or information for written complaints. The Staff Member should make every effort to contact the Store Manager to speak directly with the individual. G. If the Staff Member is unable to contact the General Manager, the Staff Member receiving the complaint will record the necessary information such as: the date and time the complaint was received and the name, address, and telephone number of the complainant, if available, as well as all of the facts related to the complaint. H. When the complaint is directly related to any cannabis product, the staff member receiving the complaint will document the following information from the customer: (i) The name and description of the cannabis product, (ii) The batch number or UID of the cannabis product, if available, and (iii); the specific nature of the complaint including, if known, how the product was used. I. All complaints must be logged and processed from all sources: including local residents, nearby business owners, social media, or any other persons expressing a concern about any staff member, product, or any other aspect of our business, including any noise, odor, or other impacts that our business may have on our surrounding community. II. COMPLAINT RESPONSE A. When the Store Manager receives a complaint, he or she must take immediate action to decipher and prioritize the level of severity. Those levels of severity are defined by: (i) Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 80 when the complaint indicates a slight possibility of a safety hazard, risk of health, or violation of law, will be deemed as “Type 1 Complaint,” or (ii) the complaint concerns a non-urgent aspect of the company’s business, “Type 2 Complaint.” B. Type 1 complaints will include any concerns involving cannabis products, such as illness or injury, a foul odor, off taste, disintegration or spoilage, color variation, the presence of foreign material in a cannabis product container, improper packaging, mislabeling, an incorrect concentration of cannabinoids, or any unidentified ingredient or form of contaminant. A Type 2 complaint may include any other customer concerns, such as dissatisfaction about store policies, allegations of poor behavior by a staff member, a neighbor’s complaint about our customers using their dedicated parking spaces, or any other matters involving the operation of our business. C. Under the return policy of product from an unsatisfied customer, the Store Manager will have final ruling as to accept the return of any unused portion of the product and/or grant the customer a full refund of the purchased cannabis product. D. For any reason, if a customer is dissatisfied with their purchase of our products, the Store Manager has the authority to accept the return the unused portion and grant the customer a full refund of the purchase price that was paid. III. COMPLAINT PROCESSING AND LOGGING A. An electronic version of a logbook, titled the “Complaint Log”, will be the source to record and document all complaints received by customers. Staff Members will be able to log complaints into the system, and the overall upkeep and oversight of the document will be maintained by the Store Manager, in accordance with the SOP No. 5-6-001 (Records Retention). B. In any instance of a Type 1 Complaint, involving the to the safety of a product in relation to customers, and/or issues of compliance with the store, Staff Member, or cannabis products, those matters will receive immediate attention from the General Manager; instances of severe cases will be escalated to our Safety and Compliance Manager. All pertinent information will be collected and thoroughly reviewed by the Management Committee. Once informed of a possible safety issue, it is the responsibility of the Safety Manager to respond within an immediate 24 hour time span, and maintain a written record of all communications and actions taken to resolve the issue in a separate electronic logbook, titled the “Safety Log”. C. When a Type 2 Complaint arises, the General Manager will be responsible for following up on a complaint from a customer and maintaining the records of all communication. All reports of Type 2 Complaints should be tended to within a <48-hour time frame. Following up with complainant with updates to the resolution of the issue will be the final action in closing out the complaint as resolved. The General Manager will be responsible for the tasks listed above and logging them into the Complaint Log. D. The Safety Manager will have authorization to access and maintain the Safety Log, along with any other vital business records. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 81 IV. CORRECTIVE ACTION PLAN A. Detailed within the Safety Log will contain a Corrective and Preventive action plan (CAPA). Upon final determination from the Store Manager the need for a CAPA, the Store Manager will complete the CAPA in accordance with SOP 106.175 (CAPA Documentation). B. When detailing the events to the cause of the initiating a CAPA, the Store Manager will be responsible for divulging as much knowledgeable information regarding the issue and plans to correct and prevent the issue from reoccurring, as in accordance with 106.175 (CAPA Documentation). For example, if a customer received an incorrect order from the delivery team; a CAPA form will document when the incident took place, the staff directly responsible for the mishap; followed by retraining of Staff Members to properly verify contents of an order before delivering to a customer. C. The Store Manager will assess their knowledge, and confirm their acknowledgment by requiring their name along with their signature and date to be archived the CAPA file for a minimum of five (5) years, as in accordance with SOP 106.175 (CAPA Documentation) D. The Store Manager will generate a reference number to the CAPA form and include any relevant entries in the CAPA log. Following that, the Store Manager will forward the CAPA form to the appropriate department. E. The reference number will be generated, in accordance with SOP 106.175 (CAPA Documentation). First, the CAPA shall be numbered serially with the calendar year, the department code of primarily involved department. with a unique identification code for the department. A standard CAPA form shall be numbered as: CAPA-XXX-YY-ZZZ Where, XXX: Department Code; YY: Last two digits of the calendar year; ZZ: serial number, commencing at 001 at the start of each the calendar year. Example: CAPA-DEL-20-001, meaning the first CAPA filed for the Delivery Department in the year 2020. F. Upon completion of necessary actions taken for closing and verification of the CAPA, the Store Manager and Management of specified department shall certify that the proposed implementations from the CAPA were completed and implemented along with any associated actions. The Store Manager shall verify, in accordance with SOP 106.175 (CAPA Documentation). Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 82 Section 3.2 – Nuisances We have developed comprehensive, but more importantly, proactive measures to address any potential sources of nuisance a cannabis business can cause the community. We started early in development of our plan and mitigation methods and commit to an ongoing training, maintenance, reporting, and transparency standards that rival any business in the industry. Community Care Prior to the opening of our business we will create open lines of communication with our community to ensure our organization does not miss any issues that may negatively impact our neighborhood. Our neighborhood community outreach coordinator, in collaboration with our local advisory board, will have proactive meetings with neighboring businesses, residents, and community groups to further ensure everyone is happy and that are business is building up the neighborhood and not detracting in any way. Through these engagement sessions, our management will be about to promptly deal with any issues before they create a nuisance. Our facility will be cleaned and maintained by a local custodial service and we will provide proper waste and recycling receptacles for use by customers and staff. Security staff will constantly monitor and review security footage of the entire facility to ensure all maintenance and security issues are addressed promptly and accordingly. A specific policy regarding vandalism and graffiti complaints are in place for any exterior areas visible to the public and will be addressed immediately with us guaranteeing complete repair or coverup within 24 hours of receiving notification of the complaint. Trash receptacles will be located throughout the interior of the facility as well as outside all entry and exit points. All trash and recycle receptacles will be regularly emptied and the areas will remain free of any litter. Our management is committed to long term maintenance of all our facilities and will properly maintain and repair all landscaping and sidewalk repairs throughout the years. In addition to our store, parking areas, and street frontage, we will also be supporting community clean up through direct volunteer efforts by our staff. Daily, custodial services will clean all litter, debris, and trash from our facility including all parking areas and adjacent public rights-of-way. Weekly on a smaller scale, and once per month on a large scale, our staff will collaborate to pick up trash and litter in our immediate neighborhood, branching out in concentric circles around our business to clean up the area. Congestion Our business plan calls for high amounts of sales, which intern brings in high amounts of customers. We expect between 250 and 300 orders per day once we are fully operational and have developed comprehensive plans to mitigate both civilian and vehicle traffic that focuses on speed and efficiency of service. Using a streamlined point of sale system, creating a spacious and flowing floorplan, and maintaining high staffing levels provide the basis for this program. Fresh Farms’ business operations plans are based around efficient flow of traffic in and out of our facility. An anticipated customer count of up to three hundred customers per day in combination with a 1:1 ratio of sales staff to customers requires sufficient planning to ensure that crowds never gather on the premises. Based on sales metrics of customers per hour, even at peak times, we anticipate no more than fifty customers each hour, with an average transaction time of roughly ten minutes door-to-door. With our intended level of sales staff, plus additional support staff during “rushes”, we are able to serve eleven customers simultaneously, meeting Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 83 peak demand. For cashless transactions, we are able to divert customer traffic away from POS terminals, leaving six separate locations for taking cash payments. With a built-in buffer, we have eleven seats available in the lobby to ensure we always maintain a 1:1 ratio. During periods of peak traffic, additional store and security staff can be dispatched to parking areas, although the premises sits in a commercial shopping center that allows for adequate passage of vehicles in and out. Advanced planning and proper execution of protocols by staff will ensure that large crowds will never gather on the premises and there is sufficient room within our facility to prevent customers from ever having to wait outside for long periods of time. To satisfy our parking requirement, we will require 19 dedicated stalls or equivalent shared parking allotment. Immediately adjacent to Fresh Farms are 21 parking stalls, retained under lease from the property owner. Fresh Farms has commissioned an extensive traffic analysis to determine if the amount of spaces provided would be adequate for the proposed use. The study determined an anticipated daily trip calculation for our business at 275 customers per day, with an expected parking time of ten minutes. Average amount of vehicular traffic is estimated to be 23 vehicles per hour, or roughly four at any one time. The analysis estimated 50 vehicles during the busiest hour, or roughly 8 vehicles at any one time. Analysis of adjacent businesses that would directly share parking have been studied and taken into account. The combined parking uses of all adjacent businesses totaled 11 stalls for average requirement and 24 stalls at peak, which in combination with the anticipated load for Fresh Farms, including staff members would leave 4 stalls remaining even at peak times. Backing up the calculations was an assessment of actual site traffic data, conducted over two months that revealed the parking area rarely exceed 25% of the maximum occupancy level, giving more than sufficient room for any busy business. Sensory Nuisances Our operating procedures require all transactions take place in-doors and all deliveries be conducted efficiently and in as few arrivals and departures as possible. No heavy equipment is required for the function of our business which limits vehicular traffic around the facility to customer and vendor vehicles as well as our all-electric fleet. With these types of vehicles, we do not anticipate any noise or vibrations that will disturb the community. All of our distributers have agreed to the use of vehicles powered by natural gas or electricity, or of reduced size, further limiting any chance of noise disturbance during drop of or removal of product. Staff will prepare for pickup in anticipation of the arrival of armored services, and Hardcar® has committed to an in-and-out time of six minutes for cash pickup. In keeping with our vision of a high-class retail environment, special events outside of educational outreach efforts will be prohibited on the premises at all times. To eliminate or limit any light pollution from our facility disturbing the surrounding community, all exterior lights will be screened and directed away from city streets and adjacent properties. The buildings exterior will be lit with low-emittance lighting devices that accentuate its architecture while simultaneously deterring graffiti. All lighting will also be high-efficiency LEDs therefore ensuring they are environmentally friendly. Exterior delivery and loading areas will always be well lit during business hours and during non-business hours these lights will be reduced to those essential for maintaining building security following security protocols. Interior hallway and room lighting will be equipped with motion sensors to ensure lights are only on when needed, limiting energy waste. Odor complaints are the most common found in the cannabis industry but can be easily mitigated by following the proper protocols. The following sections give a detailed outline of our facilities odor mitigation plans. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 84 Section 3.3 – Odor Mitigation Practices Proper odor mitigation is a collaborative effort between the facility design, the HVAC supplier and maintenance program, and the procedures and staff that support the system. Our plan combines the latest technological innovations in air purity with industry best practices and a committed, engaged staff. Oder Identification At Fresh Farms, we have a dedicated team of individuals who are committed to constant evaluation and maintenance of the environment. All rooms with cannabis or where the potential for emitting cannabis odor exists will inspected hourly by staff, as well as equipped with specialized odor detection equipment to identify odors once they have reached a predetermined threshold. When high odor volumes are detected by staff or the equipment, the manager will be informed. This triggers filter changes and additional protocols as needed to remove the odor to acceptable levels. Additionally, all doors and containment equipment will be fitted with automatically closing doors and if not operating optimally, are to be repaired immediately by our licensed maintenance contractor. Staff Training All of our employees and their associated functional work teams will have extensive training in regard to odor mitigation and we have developed a specific program with coordination with our HVAC system supplier. The importance of keeping doors shut, changing carbon filters, and adhering to a strict maintenance schedule are among the other Standard Operating Procedures that can not be understated in importance and will be actively enforced by management. We will conduct monthly staff meetings discussing odor mitigation within all departments on the importance of keeping up with the processes put in place. Section 3.6 – Odor Control Training and Maintenance goes into further detail of the training procedures and processes that will be implemented. Internal Protocols Our staff will be instructed and trained to ensure they only accept, stock, or sell prepackaged and sealed products, in accordance with state law and odor mitigation best practices. The management teams’ policies will be used by staff to actively identify and eliminate any odors within the business or in the surrounding areas. Additionally, our inventory management system will ensure the lowest stock levels possible are held at the facility at any given time, reducing the chance of breached packaging or accumulated odors stressing the air purity system. Any cannabis products discovered to have broken, torn, or otherwise unsealed containers will be immediately removed from the sales area, placed into an independent vacuum sealed container, and moved to a separately enclosed quarantine section in the secure storage area. Maintenance & Records All odor control equipment will be meticulously maintained by the local licensed HVAC contractor who helped design our system. All carbon scrubbers, HEPA filters, ducts, manifolds, and control panels will be assessed and maintained according to instructions laid out by the manufacturer. A full odor control maintenance schedule can be found in Section 3.6 – Odor Control Training and Maintenance. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 85 Section 3.4 - Odor Sources A large collection of cannabis in one place generates an odor that is created specifically by the accumulation of aromatic terpenes from the plant’s essential oils that are released as part of the natural decomposition and oxidation of cannabis compounds. A pungent, distinctive cannabis odor is created when these compounds mix. These aromatic compounds certainly have no place outside of a cannabis business and in our neighborhoods due to the fact that they are strong, last long, and travel far if not properly controlled. Comprehensive and proactive measures must be undertaken by the business operator to prevent negatively impacting the surrounding areas with the emanating odor. The cannabis products will be stored and handled on the commercial cannabis premises properly to prevent this. Cultivators and distributors that handle very large volumes of raw cannabis have the biggest obstacles when striving to improve air quality. However, even these businesses can, with proper planning and investment in the latest technology, healthy air-quality control, and odor elimination plan, make this a relatively straightforward matter. Strong mitigation measures must be instituted even in a retail environment, given the fact that our cannabis stores will be located in our neighbors and in close proximity to places where the public congregates. Accumulation Areas Cannabis compounds can still be detected by the human nose because of the intensity and profile of the terpenes when stored in large quantities, even though the entirety of these products are packaged in air-tight containers, properly sealed, and kept at the minimum possible stock levels. This will occur in our facility in the secure product storage room, on the salesfloor where live product is merchandised, and potentially in high traffic hallways such as the areas cannabis product passes through during deliveries. After these locations have been identified as high traffic, it is important to isolate these rooms on a separate ventilation and filtration system from the rest of the building to ensure that areas with already clean air remain clean. It is a necessary part of the design to separate clean air from air that needs to be scrubbed, regardless of the fact that it is an expensive endeavor to use the retrofit option. All cannabis product storage areas will be kept on a separate ventilation system from the sales floor and non- cannabis areas under negative pressure. These accumulation areas will not represent any additional sources of odor in our facility. Critical Control Points Intervals at which cannabis odor can be introduced to the facility can be minimized with proper management of critical control points. For example, when cannabis is delivered, stocked, sold, disposed of, or moved throughout the premises. Comprehensive plans have been created to ensure that these critical control points are addressed. All product packaging will be inspected prior to accepting deliveries from vendors. Staff will conduct visual and olfactory inspections of all products as they are stocked, received, and sold to customers in addition to monitoring of all critical control points. Ensuring that odors are properly controlled for during storage and transportation has an enormous effect on how much odor escapes into the business. Considering the flow of product to delivery vehicles, mitigation measures at this stage include policies to ensure that all outgoing product is Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 86 thoroughly inspected for packaging breach before the product leaves the building to make certain that unwanted odors do not make it into the delivery vehicle. Breached Packaging Fresh Farms products will all be packaged in sealed, air-tight manufacturer packaging. In the even that product is found to have damaged packaging that allows air to escape, it will be quarantined, placed in an air-tight package, and separated for disposal in accordance with our waste management protocols. At the time of delivery, during product placement, and at the end of day when product is returned to the secure storage area, product packaging will be thoroughly inspected for breaches or escaped odors. Illegal Activity We will ensure at Fresh Farms that at no time will a member of the public, customer or otherwise, consume cannabis on the premises, or in the greater commercial center. We will be performing regular monitoring of video surveillance systems, as well as security personnel conducting routine site walks (twice per hour) to ensure there is no illegal activity on the premises. Signs will be posted throughout the exterior of the facility indication that tobacco or cannabis smoking of any kind in or around the premises will not be tolerated. If any cannabis use is identified or suspected, the person will be referred to Fresno Police Department. External smoke alarms will be placed strategically around the building in three locations, which will aide in alerting store staff to consumption of cannabis or tobacco products on the premises. Section 3.5 - Odor Control Traditional ventilation systems have a simple airflow path in which air-quality is modestly improved by fresh air entering through transfer vents on one side of the room, then through intake into a ventilator, typically located near the ceiling on the opposite side of the room. These systems provide adequate ventilation and vary in levels of sophistication. Simply put, they are dispersing these “smelly” particles around and creating a less intense uniform smell throughout the room, commonly referred to as “locker room” or “dispensary” air. Odors can become concentrated and trapped in the corners and floor of the room because of the path the air travels in traditional ventilation systems. Retail shops that want to actually improve the air in the facility will implement at least a single phase filtration system which will be installed to feed air through an activated carbon or physical filter that can trap about 98.5% of the odor causing molecules. The remaining molecules are then either recirculated through the system or fed out of the building through the exhaust and into the surrounding area. This is insufficient. We are able to eliminate virtually all odor causing particles without allowing them to escape into the surrounding environment by instituting a Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 87 multi-phase system. Here at Fresh Farms, we welcome the opportunity to demonstrate to the City of Fresno that a nuisance caused by odors will never be a cause for concern for the neighbors of our expertly managed commercial cannabis retail shop and that all customers will enjoy an air-purity level rivaling that of first-world hospitals. Before entering a sealed ducting system, exhaust from each area of the business premises will pass through an activated carbon filter which uses carbon pellets to trap the odor causing compounds as air passes through the filter. The Active Carbon Filters are the most prevalent technology in the industry and absorb its molecular weight of contaminants it comes in contact with. Adsorption is a distinct process where organic compounds in the air react chemically with the activated carbon, causing them to stick to the filter. More contaminants will be captured when the activated carbon is more porous. After the activated charcoal, the air will then be filtered again by ONA Gel odor-absorbing canisters & high-efficiency particulate air (“HEPA”) filters as it travels to a centralized air bank. This system of odor control will provide more than sufficient odor absorbing ventilation and exhaust system, ensuring that there is no distinctive odor generated inside or outside of the business, or anywhere on adjacent properties, and public right of ways. Utilization of a multi-phase filtration system will be implemented in order to purify the air that is being recirculated throughout the facility in addition to all air that will be exhausted through roof ducting. The location of the intake and exhaust vents within the rooms is of critical importance in this design. Location of the intake vents along the bottom of the rooms at regular intervals and the exhaust along the top of the opposite wall will ensure that air is adequately fed into the filtration system to be processed. Negative pressure areas supporting the entire system are where cannabis product is stored in greater quantities, such as our sales floor and product storage room. The product storage room will be housed under an independent HVAC system separate from the rest of the facility to ensure that accumulated odors are not dispersed throughout the building. HVAC equipment will recirculate 100% of the supply being distributed to the various application areas throughout the facility, and the HVAC systems installed at this facility will be considered “closed-loop” systems. Negative pressure in each ventilated room will nearly double the efficiency and effectiveness of a traditional ventilation system and procedures require all of these rooms to be sealed with an air-tight seal. Ionization and active carbon filtering will be installed to mitigate odors within the facility, but to the extent possible, the odor mitigation will be intended to mitigate odor migration to the outside of the building and surrounding areas. Installation of exhaust fans that will have active carbon rolled filter material on the fan inlets will sanitize the air going out of the facility, therefore ensuring that unpleasant odor is not diverted into the surrounding community. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 88 Section 3.6 – Odor Control Training & Maintenance In partnership with this expertly designed system is a team that is committed to supporting our technological investment with regular maintenance, filter replacement, and quality checks. Regular HVAC servicing and manufacturer support is paramount to maintaining clean air, in addition to support from on-site staff. An air quality system is only as good as the team that maintains it. Carbon-filtration systems are not just a tried-and-true industry standard for odor mitigation, they are also used in virtually every cannabis retail, distribution, testing, manufacturing, and cultivation facility. However, they are only as effective as the design, implementation, and maintenance of the system. A local family owned company, Donald P. Dick Air Conditioning, will be used to install our air conditioning and heating system, as well as our custom-designed air purification system. Donald P. Dick Air Conditioning has seen the growth and change of this area, with roots in the community that date back to the 1930’s. In accordance with our plan, they will provide maintenance on a regular schedule. Weekly maintenance will include checks by our third-party HVAC contractor for moisture buildup, and negative and positive pressure levels. All filtration equipment will be serviced at regular intervals according to manufacturer guidelines, either monthly or every quarter. Our HVAC contractor will conduct a thorough inspection of the entire system as part of a comprehensive maintenance program of all electrical, heating and cooling, and airflow systems on a yearly basis. An inspection of all landscaped areas that may have grown since the previous inspection around air intake and exhaust locations will be included in this process. Responsibility Maintinence Item Frequency 3rd Party Carbon Scrubbers Monthly 3rd Party Gel Scrubbers Quarterly 3rd Party Hepa Scrubber Quarterly 3rd Party Duct Dust Clearing Quarterly 3rd Party Moisture Accumulation Weekly 3rd Party Pressure Testing Weekly 3rd Party Anti-microbrial Treatment Yearly 3rd Party Full Inspection Yearly All Staff Exterior Odor Checks Continual All Staff Automated System Monitoring Continual All Staff Staff System Monitoring Daily 3rd Party Mold & Contaminant Inspection Seasonally Management New Hire Training Onboarding 3rd Party Supplemental Training Twice per year Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 89 Section 3.7 - Waste Management Comprehensive waste management procedures have been developed for our retail facility that have been adapted over years in the regulated industry. We took our comprehensive procedures outlined for our ownership teams’ retail, manufacturing, and cultivation facilities and adapted the extensive protocols to a retail operation while crafting the standard operating procedures for Fresh Farms Fresno. Due to the fact that we have instituted extensive protocols along the length of the supply chain, we estimate only a small amount of cannabis waste at our facility. Nonetheless, we will be ready for every eventuality because we see cannabis waste products as sources of odor, potential diversion, and inefficient operations. Strict protocols for the handling, logging, and tracking of cannabis waste will ensure that our organization or staff sell cannabis waste at any point, and that all waste is weighed, entered into the track and trace system, and stored it in a secure receptacle within a designated area under video surveillance. Any waste disposal activities will be conducted in accordance with all applicable state and local laws, regulations, and other requirements, including, but not limited to, Division 30 of the Public Resources Code. Damaged or otherwise unsaleable cannabis product will not be salvaged, but instead properly destroyed in the event that have been subjected to a wide variety of environmental conditions that affect quality including: 1: improper storage conditions 2: extremes in temperature 3: high or low humidity 4: contamination by smoke or fumes 5: extended pressure or mechanical abrasion 6: age or passing of expiration date 7: subject to a voluntary or manual recall. Prior to cannabis product being entered as cannabis waste in the system, the product will be mulched and mixed with office waste (paper and paper product) along with other inert compostable materials until it is not recognizable as cannabis waste. The employee performing the disposal will make sure the waste is reasonably mixed in order to prohibit any future separation of the waste material during the disposal process. Once the cannabis is rendered into cannabis waste, the waste will be hauled by the local licensed cannabis waste hauler with a Distribution – Transport license from the Bureau of Cannabis Control at minimum. Transportation of cannabis waste will only be to a staffed and fully permitted solid waste landfill or transformation facility after it has been properly recorded in the CCTT-METRC system and the on-site logs. Our organization will collect a certified weight receipt/ticket to verify the cannabis waste was disposed of at the solid waste facility after the waste has been deposited. Employees are required to immediately report any unauthorized destruction of cannabis or cannabis products to the store management. In coordination with the Security Agent, we will report any incident to the Bureau and law enforcement. Please see our waste management standard operating procedure beginning on the next page for more information. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 90 SOP 8-2-001 WASTE MANAGEMENT Executive Approval: S. Lopez, T. Wood, May 1, 2020 Compliance Approval: C. Heredia, November 5, 2020 Revised April 2, 2020 Reference(s):Fresno Municipal Code Section No. 11-445; SOP No. 9-5-002 (Store Returns); SOP No. 9-5-004 (Product Recalls) Responsible Parties: Ownership; Sales Manager; Security Agent; All Staff; Security Officer I. COLLECTION A. Unusable products are to be removed from the salesfloor and inventory areas, that are not compliant with the company’s quality standards. Company standards are categorized and defined by discoloration, deterioration or expiration of date. B. The Store Manager will utilize their expertise knowledge and experience to determine otherwise if a cannabis product is not safe for its intended use, inability to sale due to breached packaging, spoiled contents, mislabeled product, are not within a child-proof container, or if the product has otherwise been recalled dud to safety hazard. C. Unusable cannabis products will be immediately removed from the sales floor and back-office by the Store Manager Store Manager. The Product Storage Room will have a locked cannabis waste receptacle that will house the unusable cannabis products, in the in accordance with SOP No. 9-5-004 (Product Recalls). D. Product recalls will result in the Store Manager proceeding with developing CAPA report. E. The Store Manager will handle all cannabis products with protective gear, in accordance with SOP 106.169 (Preparation Against COVID-19). F. The safety process to remove the unusable cannabis products from the sales floor and back storage room will require that the Store Manager wear proper protective attire to remain safe and sanitary. Guidance on protective attire is outlined in SOP 106.169 (Preparation Against COVID-19). G. If a cannabis product is recovered or returned and deemed to be hazardous, then the Store Manager will be responsible to complete an electronic "Product Return/ Exchange Form; describing the total quantity of products returned, the condition of the products and their packaging, any complaints or problems noted by the customer, and a description of any exchange, refund or allowance given the customer. Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 91 II. RECORDING A. The Product Return/Exchange Form will be retained as vital records, in accordance with SOP No. 9-5-002 (Store Returns). B. Fresh Farms will maintain its integrity and transparency with the public in regard to all severe recalls. Actions will be followed after a recall has been posted, including notifying the public on all public formats. Those formats include, all social media platforms, text message alerts to previous customers, postings on the interior of the sales floor, and verbal communication amongst the Staff Members to the incoming customers; until issue is resolved or further notice. C. There are procedures set in place for quarantining contaminated products; specifically, by creating a unique Quarantine ID. Data for quarantined products will be stored via the Track-and-Trace database, and generate a unique quarantine ID. D. The Quarantine ID will be generated by the month and year the product was sent into quarantine, and the last four digits of Product Number (e.g. 12-20-1234) E. Following industries best practices, in order to track contaminated products that were sold to the public, every cannabis product sold to customers will be recorded into the electronic data log. III. PROCESSING A. After receiving notification to immediately remove a particular cannabis product(s) from sales floor and inventory Staff Members will place a label, or manually write with permanent pen on all impacted products, "NOT "FOR SALE OR USE" B. Once all the required data is collected on the unusable cannabis product(s), the Store Manager will proceed to have it destroyed, rendered unusable, and non- functioning. C. Raw cannabis flower will either be mixed with desiccant, inactivating oils, or mechanical destruction; the final decision will be upon the Store Manager. D. For environmentally friendly purposes, no cannabis product(s) will be destroyed while in their individual packages; as well as to ensure that all cannabis waste remain unrecognizable. Nothing in this subsection shall be construed to require waste vape cartridges to be emptied of cannabis oil prior to disposal, provided that the vape cartridge is itself unrecognizable and unusable at the time of disposal. E. Proper waste management of vape cartridges will not require the removal of the cannabis oil from the cartridges; they will be required to be removed from their individual. F. Process to create waste material requires having a 1:1 ratio of cannabis and other ground materials, resulting in a mixture that is 50% non-cannabis and cannabis in metric weight. G. All waste and unusable product will be digitally weighed, recorded, and entered into the inventory system prior to mixing and disposal. H. The process will be under the guidance and observation of the Store Manager and located in an area with clear video surveillance. I. Waste material will be categorized into two (2) entities: either "compostable mixed waste" or "noncompatible mixed waste". Compostable Mixed Waste will be defined Commercial Cannabis Application – Retail SECT ION 3: Neighborhood Plan Fresh Farms, LLC | 92 as cannabis waste combined with other natural and/or organic material such as feedstock or animal bedding and other organic waste may be disposed of as compost. Noncompostable Mixed Waste will be defined as cannabis waste that is to be disposed of in a landfill or incinerator due to the mixture of non-organic waste materials. IV. REMOVAL A. EcoWaste will be the only contracted company allowed to take the store's waste for disposal. B. EcoWaste is contracted to remove the waste contents from the store's premises and take the waste to a location local to be properly processed and disposed. C. Resell of any returned products is strictly prohibited, and must be have the data collected, then quarantined for disposal. D. Via video surveillance, all quarantined products are monitored to 24 hours per day to ensure none of the quarantined products are tampered with nor subject to be resold. E. Each evening, before closing, the Store Manager will be responsible to confirm the data logged onto the Greenbits Software, and "Product Return/Exchange Form" with the physical content separated in the quarantined area. F. Store Managers will document their information onto the "Cannabis Waste Log", and kept as the company's vital records. G. Following industries best standards, all of the cannabis waste will be stored, and secured, in accordance with California State regulations. H. Cannabis waste will be placed in a secured waste storage. Only authorized personnel such as authorized employees, the local agency, the contracted waste hauler (EcoWaste) will be permitted access. I. Public access to the designated receptacle will always be strictly prohibited. J. After successfully transferring the cannabis waste to EcoWaste, the Store Manager is to receive a receipt verifying the removal of the waste, including date, time, and weight of the waste collected. K. The Store Manager is held responsible to ensure that the store receives a written manifest from EcoWaste confirming the proper disposal of the waste sent from the store. L. The Store Manager will archive into the "Cannabis Waste Log", both the written manifest, and the receipt confirming the pickup of cannabis waste from EcoWaste. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 93 SECTION 4 : Safety Plan Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 94 The ownership team exercised extreme diligence to ensure that every potential safety aspect was addressed when preparing Fresh Farms’ Safety Plan. In addition to the foundation for a solid plan built in accordance with applicable building and safety codes, state license requirements, and additional cannabis ordinances requirements, we have compiled decades of cannabis industry, fire prevention, emergency response, safety and compliance experience to create an even more comprehensive plan for our business. We have included provisions for dealing with more recent additions to the safety landscape such as an active shooter protocols and social distancing requirements on top of the fire, safety and evacuation plans. This plan will be supported with a comprehensive training program for staff at all levels. Our goal is to set expectations for the city of our organization, and every member of our team will support this to the highest standard. The development of this plan involved consulting with multiple fire, life, and safety experts. We have provided summaries of each section that directly address the criteria laid out in the City of Fresno commercial cannabis business application procedure guidelines and will provide our full safety plan to the city upon request. Section 4.1 – Plan Preparation Our plan is a collaboration between a fire prevention and suppression consultant, Craig Fry, a retired Los Angeles Fire Department Chief and fire and building code expert, and David Meyers, a certified professional mechanical engineer and fire prevention and suppression specialist. Input was solicited from other members of the ownership and advisory teams and our Security Agent, and we look forward to working with the Fresno Police and Fire Departments in the ratification of these plans. The safety coordinator for Fresh Farms, Craig Fry, served on the Los Angeles Fire Department as a distinguished member for thirty-one years. Craig has worked with the National Fire Protection Agency (NFPA) to assist in drafting sections of the California Sate Fire Code, he oversaw the fire and life safety laws for the City of Los Angeles, and now currently sits on the California Earthquake Commission. Interaction with local regulators, continual revision, and staff training will be part of the ongoing role in the implementation of the Safety Plan that Craig will enjoy. In addition to being a long-time safety and compliance expert, Craig is also a small business owner. Starting in civil service as a firefighter for the Los Angeles Fire Department, where a 31-year career carried him up the ladder, his service culminated in a promotion to the position of Deputy Fire Chief for Los Angeles City. The management of Emergency Operations in High Profile/Target Areas and the safety of over 450,000 citizens was Craig’s responsibility. Craig was charged with overseeing and supervising 240 Fire Prevention Officers and oversaw Emergency Operations in an area that included over 2 million people. Later, his attention moved towards the regulatory side of the Department, specifically the enforcement of the fire and building safety code. He worked with the National Fire Protection Agency (NFPA) to help draft sections of the Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 95 California State Fire Code, and was responsible for the oversight of the Fire Life Safety laws for the City of Lost Angeles during his time as Fire Chief in Los Angeles.. He served on the Certification Oversight Committee for the Office of Homeland Security that was convened to assist in the development of the National Incident Management System (NIMS). Craig retired from the LAFD and went on to form Craig Fry & Associates, a small fire prevention, safety, building, and permitting consulting firm in Pasadena, California after 31 year in civil service. Craig Fry & Associates blossomed into full-service development consulting firm, now specializing in regulatory compliance in multiple fields, including the rapidly expanding cannabis industry, and he has managed the launch, operation, safety planning, and compliance of over 50 cannabis businesses. A combination of Craig’s experience, professional network, and team of professionals creates the perfect set up to offer services to the cannabis industry. The compliance team at CF&A works relentlessly to ensure that owners of retail, distribution, cultivation, and manufacturing cannabis business through California are operating in a safe environment and in full compliance with the complex guidelines of the state and local regulations designed to protect our cities. Dave Meyers is a Licensed Mechanical Engineer and runs a Fire Protection Consulting firm in Los Angeles (State of California License No. M 029903) and has extensive experience designing safety plans for cannabis and non-cannabis commercial operations in the Fresno County area in residential, commercial, and industrial projects. Dave will enjoy an ongoing role in the ratification of all safety plans in regard to the positioning and maintenance of equipment, operating procedures, and emergency response situations. David has over 35 years’ experience in the fire protection industry including fire code analysis, interpretation, and consultation, fire suppression systems, field inspections, building reviews, and the proper handling of hazardous, flammable, and combustible material. Dave has served as a fire protection consultant to builders, architects, engineers and is a member of the National Fire Protection Association and the Society of Fire Protection Engineers. Please see the attached letter on the following page for more information. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 96 Section 4.2 – Incident Reporting Our incident reporting procedures will be a critical aspect of our safety plan and staff training program. In order to address any security or crime related incidents, our program has been integrated into our cash management and security plans, and our neighborhood plan to properly and effectively address community concerns and complaints as well as any matter related to health and safety. Safety incident reporting procedures have been established which include extensive training for our staff and customers to ensure safety at all times. Management adapted this model to encompass reporting related to all worker compensation and human resources claims, product issues, and interface with voluntary and mandatory recall procedures. We have a very definitive path for all instances including customer interactions, workplace injuries, and emergency response according to the following protocols as part of our incident reporting procedures. Incident Intake Conducting a thorough incident investigation is the initial step to connect all parties involved, and to ensure them of their confidentiality as well as transparency and fairness in the process. The first step is to contact the complainant or original reporter to determine if immediate medical attention or law enforcement is needed upon the reception of a complaint. Upon determination that no such attention is needed, we will provide assurance of a thorough investigation to the involved individuals and ensure that all proceedings will be confidential. This part of the process is intended to protect and preserve the integrity of the investigation and maintain a relationship of trust between the complainant and the investigating member of the management or ownership teams, security agent, or third party. It will be communicated that their complaint or allegation is, in fact, important and will be taken with the utmost seriousness in all circumstances. Initial Investigation After an incident or event occurs and all parties have been contacted, the next step is to determine whether an investigation is required and, if so, what parties need to be involved. Our management staff must first understand the complaint to do this as part of their initial investigation process. All parties involved will be requested to put their complaint in writing and at this level management will consult their organizations polices and procedures for any guidance or relevant instruction that may provide. At this point in an investigation, it will be determined by management if law enforcement or mandatory reporting is required, or if the complaint or incident should be forwarded to the operations team, safety team, or security team for completion. During this initial stage, all information will be kept highly guarded to preserve the integrity of the process as we gather more facts about the situation. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 97 Mandatory Reporting If it is determined that we have a product discrepancy above the state mandated threshold that cannot be reconciled, or any cash discrepancy of significance, or if it is believe a staff member was conducting illegal activities on the premises, we will notify both the Fresno Police Department, Fresno Community Development immediately, and the Bureau of Cannabis Control within 24 hours of the incident occurring. Regarding issues not related to security, but potentially related to safety, Fresh Farms will adhere strictly to our own internal polices in addition to the procedures set out by Cal/OSHA, as required by Title 8 regulations, Section 342. We will appropriately log and report all details relating to the event including the location, time, date of the event, all associated parties contact information, description of the situation, and information about any medical personnel and law enforcement that may be involved. The case will be referred for investigation to our internal teams after mandatory reporting. Investigation In the event a determination is made that the complaint is without criminal activity or a discrepancy in inventory or cash, and instead regards a violation of our internal polices or community commitments, management would them choose the investigator based on their specialty. Sigrid Lopez will be responsible for the investigation and implementation of updated standards if the incident in question is related to store or staff member polices. Candy Heredia will perform investigations for any and all safety and compliance matters with the assistance of the safety team which will be compiled of select members of staff and management. Thomas Wood would conduct all investigation matters relating to neighborhood involvement and violations of our civic commitments. A member of the local advisory board would be assigned to conduct investigations for all issues to determine how the event may have impacted the community. Our Security Agent will investigate all security incidents alongside the Fresno Police Department. Regardless of defined role, all members of the ownership team will be involved in each investigation. All physical evidence and information that could verify the complaint will be gathered by the investigator, and they must collect any supporting documents such as emails, photos, and witness reports that will be retained securely and evaluated properly and immediately. Management will then make a final determination. Investigation by a third party such as an impartial external consultant, in accordance with our human resources policies, may be necessary should an allegation be against a member of the management team or should it cause changes to current policy. A final investigation report will be made once all findings have been properly reviewed by a neutral party, any interviews are completed, and the accused has had a final opportunity to rebut the complaint. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 98 Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 99 Records All the background information of the complaint, allegation, or incident, and all associated evidence and supporting documents, and the content of the investigative interviews must be included in all incident records and reports. The report will include the resolution of the case, or the conclusion. Upon conclusion of the report, business wide staff training, an audit of the organization’s polices and procedures, and staffing if deemed necessary will be automatically conducted. While still maintaining confidentiality and impartiality, and providing the opportunity for all involved parties, to be hear, we will retain the case histories in full. All business records related to personnel, training, contracts, permits, security incidents, destructions of cannabis goods, diversion, and track and trace discrepancies, or all other incident which require reporting will be maintained for seven years at the minimum in accordance with BCC regulations, Section 5037. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 100 Section 4.3 – Evacuation Routes Designed to ensure that everyone can safely exit the building safely and quickly even at maximum occupancy, our evacuation routes throughout the retail cannabis building ensure that in the event of emergency, everyone can reach the designated safety zone established in the parking areas. We have completed a comprehensive review of the property, room by room, the construction type, and the applicable building codes with our architects, California Building and Fire Code experts, and our professional fire prevention and suppression consultant to ensure safety in all aspects of the plan. In accordance with industry best practices, we made certain that throughout the entire commercial cannabis space, the travel distance from any point within the retail location would be less than 150 feet from an emergency exit. Our customers and our employees will be able to safely and quickly exit the building in the event of an emergency. Regardless of floorplan or fixture reorganization, these common paths of movement within the store will not exceed 150 feet of travel distance, they will not lead to any termination of egress, and adequate illumination of all exit corridors will be provided to further ensure visibility even in the event of a serious emergency or a power outage. Exit corridors organized and mandated to be free of storage, sufficiently sized, and all doors will open in the direction of departure to disable obstruction due to clutter or unattended objects. Panic and fire exit hardware that will be painted and operable to guarantee ease of opening and self closing will be installed on all exit doors. Alarms will be utilized to keep all emergency exit doors safe from unauthorized entering or exiting of the building. In the event of emergency evacuation procedures, either triggered manually by store staff or by the automatic fire detection system, all exit doors shall become unlocked and opened, including the emergency exit door in the retail area which leads out of the building, and store officials will be placed at the points of exit to facilitate travel. All points of egress, passageways and egress doors will meet all ADA (American with Disabilities Act) requirements and will be equipped automatic door openers. In full compliance with CBC 1012, all of our exit signage will be of greater than 44 square inches. The units will be connected to an emergency power system to provide an illumination of not less than ninety minutes in the event of primary power loss. The emergency power system shall consist of storage batteries, unit equipment and an on-site generator. The installation of the emergency power system will be in accordance with CBC 2702 and local regulations. Please refer to the safety diagram in on the next page for a graphic illustration on the evacuation routes , as well as our other integrated safety. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 102 Section 4.4 – Fire Suppression Fires in commercial spaces are usually not suddenly or initially large and they typically are started on accident by employees or customers not being thoughtful in their actions. Our plan is to prevent any fires from occurring by having policies and procedures along with comprehensive staff training in place that greatly reduce the risk of emergency. However, our professionals know there is always a possibility for the worst to occur. Craig Fry and fire suppression Consult David Meyers have developed comprehensive fire safety plans that address every possible fire situation from within the property or from adjacent properties. Portable Suppression As the most basic, accessible, and immediate form of fire suppressions, we will have portable fire extinguishers with a rating of not less than 2-A or 2-A10 BC located throughout the interior of the cannabis business, in order to ensure the safety of our employees and customers at all times. These portable fire extinguishers will be placed within a 75-foot travel distance to every portion of the building, and in every safety zone. As depicted on the diagram on the previous page in section 4.3 – Evacuation Routes, this will be throughout the entire facility in both back room and customer areas. On top of the aforementioned open-access fire extinguishers, all electrical rooms will have portable fire extinguishers installed with a rating not less than 10BC in order to ensure that our team and first responders will be provided sufficient materials to ensure public safety for small fires and are able to evacuate all individuals from the building quickly. All fire extinguishers must have proper, legible, and clearly visible signage showing their locations and be regularly inspected, maintained, and tested in full compliance with California Code of Regulations (CCR) Title 8 Section 6151 section (e). The installation of each of fire extinguisher will comply with CBC Section 906, Cal OSHA, and CCR Title 8 Section 6151. These will be located in areas that will be continually maintained for clear access and free of storage. They will be placed on hangers at a height of no greater than five feet and no lower than three and a half feet. Fixed System To ensure both the safety of our team our team and customers and to be in compliance with all applicable building codes, the building is to be fully sprinklered and along with the new improvements, our team will include readily visible, clear, unobstructed, sprinklers. The upgraded sprinkler system will provide coverage in accordance with NFPA 13 - Standard for the installation of Sprinkler Systems and maintain the existing sprinkler zoning. Sprinklers will provide for densities in the office and lobby areas in accordance with “Light Hazard” standards, at 0.1 gallons per minute per square foot. All production, sales, and storage areas will be classified as Ordinary Hazard, Group 2, at 0.2 gallons per minute pe r square foot. This sprinkler design Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 103 density is considered a minimum standard by the NFPA but because a building’s fire sprinkler system is not designed to open up every sprinkler head in the building all at once which can risk the loss of water pressure in a building. This diminishing pressure could ultimately result in a failure in the sprinkler system. Mock fire tests have been conducted at the property to determine the amount of water provided per square feet in gallons per minute in areas of the building at the farthest point from where the main water line ties into our sprinkler system. This design density guarantees that at even the most remote portion of the building, the fire sprinkler system will be able to control if not extinguish a fire as long as the minimum design density is met. To provide the minimum design criteria noted above, the sprinkler system will be modified as necessary . We will ensure the maintenance, inspection, and proper working condition of the fire sprinkler system by ensuring the regular inspection in compliance with CBC and CFC, and California State Fire Marshall’s standards and regulations. Our fire sprinkler system will be regularly inspected and serviced by Central California Business Alarm, a local Fresno City alarm company who is located at 1271 N. Wishon Ave. Fresno, Ca. CCBA is a California state licensed contractor and a California Fire Extinguisher concern licensed operator. They are a family owned and operated company that has developed a renowned reputation in the 50 years they have been in operation. CCBA Fire Protection has been retained to provide parts and labor for regular servicing of the fire sprinkler system for a period of 5 years. We will install one 6” diameter fire riser, located within a dedicated riser room which room will provide direct exterior access, in addition to the portable fire extinguishers and the NFPA-13 automatic sprinkler system. The existing riser room is of 1-hour fire-resistance rated construction and provides direct exterior access in accordance with IFC Section 916.3. The riser rooms will be maintained regularly and equipped with necessary HVAC equipment to maintain the temperature of the room between 40- and 100-degrees Fahrenheit and contain permanent lighting with backup power. Signage will identify the riser room, and it will be maintained on the exterior of the door. The building sprinkler system will be supported by a Fire Department Connection (FDC) with two 2-½” outlets, sufficient for the intended load mentioned above. The FDC is located along the exterior walkway of the complex. Currently, our building is set to be outfitted with NFP-13 rated fire sprinklers and will not only maintain but upgrade this system to be a complete fire protection monitoring and addressable fire alarm package. The automatic fire sprinkler, alarm, and monitoring system has been installed and will be upgraded in accordance with CBC 903.2.5 and NFPA 13 and contracted to our local alarm company, as noted in the alarms and monitoring section. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 104 Fire Department Access New Knox® Boxes will be provided outside of the riser rooms and the main entry and will be maintained with keys to allow Fire Department Access. One 2 ½ x 4-inch fire hydrant access is located adjacent the premises on Blackstone at the entrance to the property. within 50’ of the building. As depicted below, another fire hydrant is located within 200 feet south of the building on Blackstone. These fire department access locations will provide sufficient flow for any fire related issues at our business premises. A key aspect of ensuring the safety of our staff, customers, and neighbors’ life and property will be advanced warning and protection systems. We will be maintaining in excellent working order an advanced alarm and monitoring system that is fully integrated with an automatic fire sprinkler, HVAC, and emergency response system and installed in accordance with California Building Code § 903.2.5 and National Fire Protection Agency, Chapter 13. Please see the safety diagram in the previous section for the location of all alarm and monitoring devices. Fresno Fire Department approved a dedicated space that will be used to post a classic fire alarm matrix and graphic annunciator in order to make it simpler for firefighters to detect the precise location of a fire in the shortest possible time. As well as the print notification, our alarm system contains a digital readout of alarm locations, accessible from the front of the building. When one of the system’s components initiates, it indicates the component’s location on the fire alarm panel. This type of system is preferable because they can rapidly pinpoint where the signal originated, saving valuable time in an emergency as it negates the need to manually search for the component that produced the signal. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 105 Gas Monitoring The gas monitoring system will tie into our fire alarm and monitoring system and be of the highest quality to guarantee the safety of customers, our store, and our community. The Siemens HFP-11 intelligent detection devices will be utilized throughout our establishment, which are the highest level of detector intelligence on the market. These very same gas detectors will be used throughout the entire building with each specially programed for the location they are placed in. Detectors in the retail, lobby, and staff areas are able to use separate trigger thresholds than other high-risk areas such as utility, storage areas, and HVAC ducting systems. The HFP-11 detectors utilize advanced detection technology that allows each detector to differentiate between nonthreatening deceptive phenomena such as heaters, candle flame or cigarette smoke from actual fire hazards and sound the appropriate alarm while optimizing detection for the intended area. Each individual detector uses state-of-the-art microprocessor circuitry with error check, self- diagnostics, and supervision programs to ensure proper function. Eliminating the need for cumbersome, unreliable mechanical programming methods such as dials or switches , these detectors instead use input sensors that include both photoelectric and thermal triggers and can properly locate for emergency responders. These units can be automatically triggered and issue both an audible and visual alarm in addition to interfacing with the monitoring system and will be located throughout the facility. Units will be located in all rooms, hallways, and storage areas for complete coverage of the premises. More units will be placed on the exterior of the building to alert store and security personnel to the use of tobacco or cannabis products on our property. A network with internal error-checking software is supporting each individual unit. In the case that a detector senses a fault or failure within its system, the LED light will flash, and the detector will transmit that data to the control panel. A quick visual inspection will notify staff of the condition of the detector at any time, allowing us to ensure that our system is in proper working order and maintenance can be promptly scheduled if required. Please see the safety diagram for the location of all gas monitoring equipment and a full description and location of all security features. Alarms Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 106 We will be maintaining and ensuring the good working order of four manual fire alarms that activate the occupant notification system in accordance with CBC 907.4, 907.2.5, and our standard operating procedures, at the most basic of technology. These alarms will be located on the main sales floor, in the backroom hallway, in the security office, and in all areas where staff preforms regular work duties. The system is capable of voice activation and disengagement using predetermined codes established by management. They will be clearly visible and marked by visible signage. As part of the initial onboarding process, all staff will be trained in the location of fire alarms. This system provides for an automatic alarm sounding through a smoke and heat detection system, in addition to the manual alarms. Sensors that are located along the ceiling of each room and doorway are programmed to trigger the alarm in accordance with a minimum threshold for disruption. Constant monitoring will ensure the safety of the occupants of the building with additional monitoring systems for smoke located in the HVAC and sprinkler systems. Installed per City of Fresno building and fire codes, the alarm system will utilize an audible alarm connected to visible light strobes. This system will be equipped with Edwards 2452 THS-15/75-W Fire Alarm Temporal Horn and strobe signals throughout the interior of building. These devices are State of California State Fire Marshall approved and UL rated to produce 85 decibels and utilize very bright xenon lighting to notify all occupants of the alarm, regardless of ability to hear. We will utilize a 350 WB Vibratone horn that will be tied into the fire alarm and monitoring system to alert neighboring business and the public of an emergency, on the exterior of the building. The 350wb Vibratone horn produces a 360-degree alarm of 100 decibels, audible throughout the commercial development. This alarm is located on the outside of the building. We will be upgrading the current fire alarm system from a “conventional” system to an “addressable” fire alarm system in coordination with the Fresno Building Department and the Fresno Fire Department. An addressable fire alarm system is the gold standard for safety and security and is the most modern alarm system available on the commercial market. Addressable fire alarm systems are able to clearly delineate different safety zones, allowing for unique identifiers and alarm thresholds in each area. Addressable alarms allow for complete control over the facility and quick access for emergency personnel. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 107 Section 4.5 – Emergency Training The initial onboarding training of all staff will include each of the aforementioned fire, safety, and medical emergencies but we want our staff to be prepared for any potential emergency situation. We will make sure that each staff member understands the layout of the facility as well as each component of the safety plan before any other training is conducted. Every employee must pass a comprehension test that demonstrates they have suitable knowledge to identify and respond to a wide variety of emergency situations, prior to passing their 90-day probationary period. In addition to this each member of our management and safety teams will be required to obtain their American Red Cross Certificate in basic life safety prior to passing their probationary period. Supplementary training will be provided at regular intervals and when any updates are made to the safety plan. Staff members will be given training tailored to the specific hazards in the cannabis industry such as the proper handling of cannabis product and cash safety protocols, as well as training in occupational safety and hazard identification. A dedicated portion of our staff will comprise an internal safety team. Safety Team members will be certified in compliance with Assembly Bill 2799 which requires all cannabis businesses to employ within one year of receiving or renewing a license, one supervisor and one employee who have successfully completed a Cal/OSHA 30-hour general industry outreach course offered by a training provider that is authorized by an OSHA Training Institute Education Center to provide the course. This mandate will be exceeded by our organization as we will require all store management and all members of our safety team be certified to ensure that at all times a qualified, state-trained member of staff is present at our facility. Training modules for staff has been divided according to emergency type. Fire Our regular training and pre-employment programs will include that all employees are expected to be knowledgeable about all fire alarms, what each alarm signifies, the location of fire suppression gear, and predetermined evacuation routes. Although employees are not expected to fight fires on company property, we do expect that each employee be sufficiently trained in fire extinguisher use to fight small fires or to ensure that equipment can be used to safety and how to properly evacuate all customers and staff out of the immediate fire area. The intended goal is that staff will be sufficiently trained to use fire extinguishers on small fires, to prevent potential spread and give time to allow for proper evacuations to occur and for emergency responders to be notified quickly. Our employees, equipped with proper training, will be competent and confident of their ability to cope with the hazards of a fire, and understand when to terminate firefighting efforts when it has become obvious that there is danger of harm from smoke, heat, or flames. Large fires will be left to the municipal fire department personnel who are properly trained and equipped with the necessary protective equipment. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 108 Medical Emphasis and key function will be placed on our staff training that will include fire, life safety, and medical emergency training. Each member of our staff, regardless of their position, will be Red Cross certified in providing Basic Life Support (BLS). Each employee will learn to identify the critical nature an injury, how to determine a person’s level of consciousness, how to check an individual’s pulse and breathing, and preform primary assessments and administer CPR/AED to both children and adults within the BLS course,. This will ensure that in the event of a medical emergency our employees will able to calmly and actively provide a basic level of life support to an individual while simultaneously being able to provide critical and time sensitive information to first responders. Annual trainings will be held with the Red Cross to maintain staff knowledge and currency on all facets of first aid. Also, each employee will undergo thorough training of when to call 911 in a medical emergency, when to rely on security personnel, and how to preform primary assessments of individuals suffering from trauma, heart attack, seizure, overdose, blood loss and wound trauma, treatment for shock, and how to gather and relay pertinent medical information to medical first responders over the phone and upon their arrival to the scene. Each member of our team will be regularly trained and tested on the procedures that we have outlined in the employee handbook in addition to the emergency medical training. These procedures outlined have been developed by our security, emergency, and our professional fire prevention and suppression consultant to provide trainable and actionable responses to a wide variety of medical emergencies. Natural Disaster Natural disasters pose a threat typically in the form of power outages in Southern California. Potential complications can arise relating to stable power supply due to earthquakes, severe weather, or rolling black- and brown-outs that occur each summer, effecting the safety and security systems in our business. Our procedures will include automatic power backup and a lockdown of the facility for such cases. Staff will be trained on how to respond to natural disaster situations, who to notify and our mandatory response times, and proper immediate procedures to ensure the safety of our customers and employees. Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 109 Hazardous Materials How our staff responds to hazardous material situations is an additional point of training that we will place emphasis on. We take pride in this advanced training and testing as a part of our employees’ education program as it is often overlooked but can be critical in saving the lives of our customers, staff, and neighbors. Each employee will be taught and trained on 1: how to identify hazardous materials by sense and visual detection 2: how to contain a hazardous material spill 3: how to read and understand a MSDS (Hazardous Materials Data Sheet) 4: when to evacuate employees and customers 5: how to safely evacuate out of the risk zone 6: how to effectively report hazardous materials to emergency responders 7: where the location of hazardous materials is that may be utilized in operations 8: who is responsible for maintaining a safe work environment (hint: everyone) We do not store hazardous materials on site in the form of combustible or flammable agents, however we treat cannabis products with similar protocols. Proper training on the storage and handling of cannabis products to prevent diversion, contamination, and potential sources of odor will be provided for all staff members. Lockdown / Crime Training scenarios and responses to security related threats including lockdowns, active shooters scenarios, and crime reporting protocols have been developed by our ownership team using industry best practices and a security contractor with extensive experience in private cannabis security. Please refer “Section 6 – Security plan” to find more security related training matter in more detail. Regular instruction, training, and testing of our employees on police relations issues including when and how to safely call law enforcement, what role the active on-duty security will fulfil, how to reach safety and stay protected within the identified isolation and safety zones, and evidence recognition and identification techniques to assist law enforcement in the apprehension and prosecution of criminals. Public Health Orders We have implemented both temporary and permanent measures for social distancing in compliance with County Health program initiatives in our most recent addition to safety protocols. The goal is to slow the spread of contagious illnesses by limiting the opportunities for exposure through intentional measures. During times of pandemic or government mandated social distancing regulations, we will have already trained our staff to implement stringent measures to keep employees and customers at least six feet apart. During a mandated time of social distancing, if cannabis retail stores are determined to be essential businesses and are permitted to operate, we will do so in Commercial Cannabis Application – Retail SECTION 4: Safety Plan Fresh Farms, LLC | 110 full compliance with city, county, and state emergency regulations and will not deviate from our approved hours of operation unless so instructed by the City of Fresno or the Fresno Police department. Each of our employees follow social distancing and hygiene best practices and will reserve certain hours of operation for senior citizens, other high- risk populations, and customers with disabilities. Staff members who have symptoms consistent with COVID-19 or other communicable illness will not be permitted to come to work, they will be able to utilize their paid sick leave. Management will emphasize, and if need be re-train, all employees on ideal hygiene practices, including but not limited to proper regular handwashing and increased frequency of cleaning and sanitizing of the facility to ensure we are in compliance with all government recommendations. Signage will be visibly posted with up to date orders from the County Department of Public Health, and we will make certain that all patrons follow these guidelines while on our property for the safety of all staff and customers. Persisting changes in our operations include the installation of sanitizing stations for customers and staff throughout the store as well as any areas where customers may wait. These new policies have had far-reaching effects on our standard operating procedures. Protocols for higher degree of cleanliness have been instituted, we have made personal protective equipment available for staff, and have implemented contactless access throughout our facility. Commercial Cannabis Application – Retail Fresh Farms, LLC | 111 SECTION 5 : Security Plan SECTION 5 – SECURITY PLAN .................................................................................. 111 5.1 – Security Plan Preparation .......................................................................................... 112 5.2 – Security Premises Diagram ....................................................................................... 114 5.2.1; 5.2.2 – Premises Diagram .................................................................................... 117 5.2.3 – Cannabis Activities .............................................................................................. 119 5.2.4 – Limited Access Areas .......................................................................................... 122 5.2.5 – Video Surveillance .............................................................................................. 125 5.3 – Alarms & Monitoring ................................................................................................... 129 5.4 – Cash Handling ............................................................................................................. 132 5.5 - Security Officers ......................................................................................................... 135 5.5.1 – Number of Guards .............................................................................................. 138 5.5.2 – Guard Hours ........................................................................................................ 138 5.5.3 – Security Officer Positions .................................................................................. 139 5.5.4 – Security Officer Roles & Responsibilities ......................................................... 141 Commercial Cannabis Applicati on – Retail Fresh Farms, LLC | 159 SECTION 7 : Community Benefits & Investment Plan SECTION 7 – COMMUNITY BENEFITS & INVESTMENT PLAN ................................. 159 7.1 – Social Responsibility Plan ......................................................................................... 160 7.1 i. – Fresno Non-Profits ................................................................................................ 160 7.1 ii. – Local Participation ............................................................................................... 163 7.1 iii. – Local Business Partnerships .............................................................................. 165 7.1.1 – Legal Outreach Services ..................................................................................... 166 7.1.2 – Sustainable Business Practices .......................................................................... 167 7.1.3 – Community Revitalization ..................................................................................... 169 7.2 – Public Health Educational Outreach ........................................................................ 170 7.3 – Community Reinvestment Fund ................................................................................... 173 Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 160 Section 7.1 – Social Responsibility Plan The members of our ownership team have actively been involved in their respective communities for their entire lives through civil service, charitable giving, and unwavering civic responsibility. Most recently, the cannabis industry has opened up new opportunities to further these goals. In Fresno, we intend to expand these efforts, focusing on what is most in need in the community. We have divided our community benefits plan to address every aspect of the Fresno community, creating direct giving programs for Fresno non-profits, creating from scratch a program to provide clothing and grooming services to homeless individuals through a mobile salon, and organized staff around community involvement days. Additionally, we will make a direct donation to the City’s Cannabis Community Re-Investment Fund to forge with the City of Fresno the development of the City of Fresno Cannabis Equity Program and pursue strategic relationships with local businesses. Section 7.1 i. - Fresno Non-Profit Organizations The most direct and efficient way for any business to benefit their community is to rely on the experience, reach, and heart of an existing organization within that community. These organizations are most properly posed to make the most efficient use of charitable contributions to ensure those most in need are assisted. As such, we have set aside two percent (2.00%) of gross revenue to be distributed evenly and directly to a local Fresno community non-profit organization, Poverello House, as well as provisions for additional organizations as a function of net revenue equal to one percent. Through the consistent support of these organizations, consistent change can make its way through any community. The landscape has always been difficult for these organizations, many are chronically underfunded, under supported, and held back from fully realizing their core goals. Unfortunately, in Fresno, this has always been the case. Owner Sigrid Lopez as well as all his friends and family grew up in Fresno, benefiting from these programs that stayed functioning despite lack of funds, volunteers, and community support. One organization, in particular, played an extremely important role in the proper upbringing the Fresno youth, and still does today. In the turbulence of the 1960s, a young man named Mike McGarvin was on the fast track to becoming one of the many casualties of the decade. Drugs, alcohol, violence and hopelessness were his daily companions, until he found a place in San Francisco called Poverello. The priest who ran the coffee house asked Mike to volunteer, and the experience changed his life. The San Francisco Poverello served people who were characterized by poverty and despair. It was a place where they could come to find acceptance, a smile, and unconditional love. There, Mike found the answer to his problem: Service to others. Several years later, Mike married a wonderful woman, Mary and they moved to Fresno. He worked as a photographer, but was searching for a way to repay God for saving his life. The answer came when he noticed homeless people on the streets of Fresno. Mike knew what to do; he would hand out peanut butter sandwiches, talk to Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 161 people, and let them know someone cared about them. Mike’s small ministry soon grew, and other began to join and help. A storefront building was obtained, and he named it after the place that had saved him in San Francisco: Poverello House. It was a simple storefront, but within those humble walls, "Papa Mike" offered coffee, food, and a brief respite from the streets. Despite the building burning down, evictions and financial insecurity, Poverello House continued to grow and provide essential services to the needy and homeless. In the 1990s Poverello House expanded to a larger building at its current location on 412 F Street, which allowed it to expand its services to meet the needs of the community. Poverello House provides three meals a day, 365 days a year to men, women and families along with services that improve people’s quality of life. These services include clothing distribution, emergency food bags, a medical clinic, the Men’s Resident Rehabilitation program, temporary overnight shelter for men and women, and social services for individuals seeking to end their homelessness situation. Poverello House follows Papa Mike’s philosophy: Listen with compassion, give with a warm heart and a smile. Through a silent partnership with Poverello House, devoid of photo opportunities and brand placement, we believe we have found a way to reach these at-risk children with the benefits of the profits from the cannabis industry without a direct visible involvement. Our leadership team believes in the importance of giving troubled young people an opportunity to change their lives, and thus, are values are aligned with Poverello House. Our proposed partnership with Fresno Poverello House will consist of two-faceted program. First, Fresh Farms will be contributing on an ongoing basis, two percent (1.00%) of annual business revenue to be used by Fresno Poverello House to underwrite the costs of running their fully staffed program. With this additional revenue, Fresno Pal will be able to upgrade equipment, hire additional staff, and provide a better overall program for the youth in Fresno. Going forward, Fresh Farms would like to develop specific programs with Poverello House Fresno to target the donation to those most in need. In a separate outreach program designed to expand the breadth of the giving to adults in the community, Fresno Poverello House will assist Fresh Farms in identifying persons in the community who have been harmed by the criminalization of cannabis, are chronically unemployed, or affected by poverty as potential candidates for an on-the-job training program. We will be seeking out individuals from the families of Fresno Poverello House participants who need assistance in obtaining employment. More information about this program can be found in “Section 2 – Labor & Employment Plan”. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 162 Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 163 Section 7.1 ii. – Local Participation Outside of established local organizations, Fresh Farms will be pioneering a separate program developed specifically with Fresno in mind. Our ownership team has developed a program to give showers, haircuts, and other personal grooming services to homeless and other economically disadvantaged individuals through a mobile platform. Through a partnership program with Shelter Care Resources, Fresh Farms will cover the purchase, operation, and maintenance of a mobile recreational vehicle outfitted with showers, clothing supplies, and a mobile grooming station that can be set up throughout the City. The service will be provided free of charge to the local population for the purposes of giving those who are economically disenfranchised a feeling of normalcy. We will retain the services of local barbers and hair stylists to provide these services in combination with our outreach effort. Through partnership with the local medical and veteran community, we will construct a program that identifies homeless, low income, or wounded veterans who can benefit from using cannabis products in addition to or as a replacement for their medication for chronic pain or psychiatric distress such as post-traumatic stress disorder. Currently, the health and safety regulations prohibit retailers from giving away any amount of cannabis or cannabis products as part of a business promotion, so we will enroll these veterans in our program to provide heavily discounted medicinal-use cannabis products. We are pursuing relationships with local veteran Groups like the American Legion, the Veteran Collaborative of Fresno County, and the Gold Coast Veterans Foundation. These organizations will help us identify veterans who can use our assistance. The medical cannabis goods that will be provided to these qualifying veterans for lowest price we can offer according to the guidelines set forth by the Bureau of Cannabis Control CCR §5411. In addition to giving financial contributions to local community organizations, city activities, and the local economy, Fresh Farms will be giving our most valuable assets, our time and our hearts. Through an ongoing series of community involvement activities, Fresh Farms owners, employees, and patrons will give their time to various organizations throughout the city. We call these events Community Involvement Days and are offered to our employees in two-day sets to ensure all employees have a chance to participate. Community Involvement Days are designed to spread our reach in the City of Fresno and enable us to help in as many organizations as we can through an effort that is directly driven by our stakeholders. We want to encourage our employees to be part of our community and assist us in our giving back. We will be providing all our employees one day of compensated time off every quarter for them to get involved in Fresno nonprofits they are passionate about. In the weeks prior to each Community Involvement Day, we will notify customers in the store and through the rewards program of discounts associated with participation in our community involvement days. This will allow a greater support of the organization and will ideally create a feeling of community comradery that we can share among our staff and customers. Organizations accepting donations of our time are intended to include beach Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 164 cleanup, culinary services for the local foodbank, and a program with the Humane Society of Fresno County to donate animal food, beds, and other supplies to assist in their aid of animals. Through partnerships with our community non-profit partners, staff will be organizing events with direction from Shelter Care Resources and the Police Activities League. Extending our educational outreach, Fresh Farms is to provide scholarship opportunities for students attending the Fresno City College. Established in 1910, Fresno City College is a California’s first public community college, and it changed the face of education in our great state. FCC is a certified Hispanic-serving institution and has the largest nursing program in California, nationally recognized student organizations, and transfer agreements to select University of California and California State University campuses. The Fresno City College athletic program has been nationally recognized and maintains a broad-based program in achieving success in many sports, both men’s and women’s. FCC provides career and technical programs to the local community in over 80 certificate programs, 24 associates degrees for transfer, and 120 full associates degrees with classes in over 60 disciplines including athletics, child development, culinary arts, and dental hygiene. Fresno College focuses on their mission to ensure a student’s success through a diversity of pathways. We will hold art and educational competitions with a local scholarship awarded every quarter to the winner. In addition to tuition, we will reserve space in our store to feature local art from members of the community. Our ownership team has personal connections to the arts and believes in fostering the community’s relationship with art. We will be setting aside a section within our retail environment to feature local artists. The front wall as you enter our retail floor will be our showcase for local artists. A flexible display system will be utilized to allow for rotating collections to be shown as desired. These displays are easily visible from the lobby providing visual interest in a representation of the local community. To encourage civic participation and community involvement, we will also be encouraging our customers to partake in Fresno events by offering retail discounts to those who provide ticket stubs on the day of events in the City. This will include all entertainment and sports events including live performances, street fairs, and farmer’s markets. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 165 Section 7.4 iii.- Local Business Partnerships We will not be bringing a foreign shopping experience to Fresno residents, but one that is a mirror of the City itself. As a business that will be committed to Fresno, we have invested considerable time in establishing a series of win-win business partnerships in which we will source everything possible from local merchants and service providers. While some of this work is ongoing, we can share a small sample of our commitment to directing as much of our spending as possible into the Fresno economy. With regards to product procurement, Fresh Farms will actively pursue business relationships with licensed Fresno cultivators. Our procurement team will place a priority and preference for Fresno cultivators, and this relationship will be supported with a “local producer” standout that will be featured in our in-store display cases. Pending approval of a license, Fresh Farms will utilize Fresno-based companies for as many development items and on-going services as we can. We will be using Dixon Painting, a local Fresno County servicer to paint the interior and exterior of our building who has been voted #1 commercial painting company in Fresno six times by Fresno Bee readers. We will be using and Donald P. Dick HVAC, a family owned company, to install our air conditioning and heating system, as well as our custom-designed air purification system. Local Central California Business Alarms and Fresno County Private Security will provide security oversite and a Fresno based design and architecture firm, SEC Development, created our interior motif. When searching for a design partner, we had a long list of requirements. We wanted to ensure that we developed a design that mixes the delicate aesthetics of a high- fashion boutique with the robust security features, all while capturing the essence of Fresno. A local partner was the clear answer. The team worked hand-in-hand with the ownership team to derive a concept that was bright, natural, and fit in well in the slightly beachy Fresno atmosphere. Please see their work in the design section (Section 6 – Location). All of these companies have been operating in the Fresno and Fresno County areas for the last two decades and we would like to leverage their experience with local conditions. During construction, we will be use local wood and building material suppliers from local yards and after open, we will procure janitorial services from a local custodial services company, who will service our store daily to ensure all exterior and interior areas, including the front sidewalk, are kept clean, free from debris and maintained in top condition. If we are awarded a retail license, we are committed to helping our neighbors by directing as much of our spending as possible into the Fresno economy. We have noticed that our store is in proximity to numerous restaurants including a perfect pairing in our same commercial center. With this mindset, we will build lasting ties with merchants and service providers that have deep roots in the local community as we begin to establish our own. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 166 Section 7.1.1 – Legal Outreach Services More than 500,000 California residents were arrested for some kind of cannabis- related crime between the years of 2006 and 2015, the years before Prop. 64 was approved by voters, according to the Drug Policy Alliance. Not only do these criminal convictions create barriers to employment and great financial burdens, but they also effect different segments of the population disproportionately. Many provisions that provide good initial strides towards reversing the war on cannabis including streamline expungement processes, reduced regulatory hurdles, and active engagement by government have been by Proposition 64 and subsequent policy enforcement decisions made by both sate and municipal district attorneys. We will provide in-house legal services for expungement, as well as reductions for personal possession cultivation, and transport for all members of our staff with prior cannabis convictions. At their request, incoming staff will be granted these services free of cost, and our team will diligently investigate all routes towards improving their circumstances. Our commitment will extend beyond our staff, and we will be offering legal services free of charge to the community win the form of clinics for expungement for the general public. All residents of the city of Fresno will revives our legal teams’ direction on the proper application process for expungement of cannabis law violations quarterly. Access to our legal resources which will include our online platform, pop-up, evens and our season staff for assistance in applying for cannabis conviction expungement will be granted to all participants. Cases of more complicated nature involving members of the commented will be provided with information to pro bono or low-cost legal services. Eligible conviction codes for expungement or deduction will be paired to the corresponding to the individuals’ particular state conviction programs- and though a separate piece of software that is synced with the state’s registry, the program will clear the cannabis convictions. An individual may not be aware of numerous options available. One example, Health and Safety Code 11360, Sales of Marijuana, is a felony that can be reduced to a misdemeanor under certain circumstances, including many of originally charged before Proposition 64 was passed. HSC 11357, Possession of Marijuana, is a misdemeanor that can be expunged in certain situations, and still carries an active penalty for persons in possession of more than 28.5 grams of cannabis, or more than 8 grams of concentrated cannabis. Fresh Farms and our legal partners will fully fund this program, which will be offered free of charge to the community. Those residents with convictions that qualify and receive expungement will be part of a larger program to clear criminal records, fight joblessness, and uplift the community. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 167 Section 7.1.2 - Sustainable Business Practices Green and sustainable business practices are utilized in all aspects of our business at Fresh Farms. We have used a series of metrics to define our program, and we have used keen eye to discern the difference between legitimate and overrated sustainability practices. It is ideal to work alongside vendors who exhibit the highest level of sustainability practices when acquiring cannabis and cannabis products. Placing focus on this element of inventory control will ensure that a dispensary aligns itself with intended goal of a cleaner, more efficient community, whether it be the licensed vendor’s cultivation methods (such as Regenerative Agriculture or Permaculture), packaging approach, facility design or any other factor that contribute to a more sustainable end product. Furthermore, there should be a focus on locally sourced products from the community where the dispensary is located. Not only will this local sourcing help support other community businesses, but it will also lower a dispensary’s carbon footprint. A dispensary can provide meaningful feedback for these organizations on way they can improve their environmentally friendly practices together through interaction with the cultivators and manufacturers. We will operate our business in a way to reduce our carbon footprint. We have selected electric vehicles for our delivery fleet in order to provide fuel-free and unobtrusive delivery. LED lighting in all fixtures with low current draw are used, as well as all energy-star rated appliances. Our business cards are 100% post-consumer waste, chlorine free, and use a non-toxic vegetable-based ink. Ongoing energy efficiency is essential for achieving our environmental goals, which goes hand in hand with the dispensary design. To determine priorities for improvement, assessments of the dispensary’s energy usage will be conducted on a quarterly basis (to coincide with various condition due to changes in seasons). All systems are checked during this process to ensure they are operating optimally, proposed energy efficiency improvements are identified, and that steps are being taken to implement impactful changes. All paperwork possible has been converted to electronic forms in the operation of our business with the exception of regulatory requirements such as printed delivery manifests. We will work in conjunction with our suppliers in order to offer packaging that meets sustainability requirements for waste and post consumer materials, through offering financial incentives to packages that meet our expectations. We will provide recycling bins in store to be utilized by both staff and customers for all standard recyclable materials including discarded cannabis containers, used vape cartridges, and household products like batteries. Furthermore, a series of community clean-up days will be making a direct impact on the City. We are proud to be from Fresno, and we desire for our employees and others in the community to feel the same pride that we do. Trash clean up does will be hosted by us for the community and area that we are in, as well as local beaches and parks. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 168 This clean-up will be divided into two different days so that all members of staff are allowed to participate, during which employees will take shifts pickup up trash in our community and areas of high traffic. These events will take place quarterly. Our organization will continuously revisit and review of practices for areas of improved, in order to prevent the potential trappings of greenwashing on our environmental stewardship program. Our owner led safety and compliance team, will be personally responsible for review of our program quarterly, to identify conformance with our pre-determine metrics. As well as the aforementioned steps, we commit to continuously improving our program through this process. New standards for our operating team regarding environmentally sustainable business practices will be created by our safety and compliance team each fiscal year, and a new program will be issued for the upcoming year. Our commitment is to reduce our energy consumption by ten percent for the first three years of operation and five percent per each year thereafter. Additionally, we will reduce our non-cannabis waste production by the same amount each year. By constantly revisiting our consumptions plans with the most current technology and best industry practices, we intend to keep pace with the fast-paced industry. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 169 Section 7.1.3 – Community Revitalization Our mission is to have a long-term commitment to community development intentions, and a means of advancing the environmental initiatives of community project proposals. The principal purpose of our philanthropic involvement with revitalizing our community is to allow positive public involvement that will promote the conservation and beautification of physical characteristics. Specific objectives are to eliminate blight in the impacted communities, reaffirm the need for revitalization assistance in certain areas of the city Fresno, and to acknowledge other areas that no longer need such assistance. Blighted areas are defined as an area or district that has been affected by some adverse land use or destructive force that resulted in decline in property value and/or public health. In blighted areas, there is often little to no private investment occurring within the community. Positive public involvement is required, and we are passionate to be involved and increase the economic value of the community. Our goal is to directly invest into neighborhoods with low property values, in comparison to other affluent areas of the city. This will result in, reducing the high number of property vacancies, tax delinquent and dangerous properties. Vacancy of a building is defined as, the absence of use. In particular, areas such as Elm Avenue in the city of Fresno, there will be strategies implemented to decrease the number of vacant buildings to encourage investment in vacant areas surrounding recreation centers and shopping plazas and within historic districts of Fresno. Areas similar to Elm Avenue are plagued with unsafe, unsanitary, and inadequate living conditions for some individuals and families. Other issues planned to be addressed are areas that are clear indications of inadequate planning, have a lack of proper lighting on streets, or either have faulty street or lot layout. Our financial donations, volunteering, and community involvement will revitalize the area to once again have the land desirable and thrive economically. For a graphical definition of a blighted or neglected property, please see the current photographs of our business address. We have planned a complete reimagining of the property using premium construction materials and a high-quality design aesthetic. For a graphical definition of what can be done to a blighted area, please see our conceptual renderings in the same section. Fresh Farms plans to be directly involved with the city's Planning Committee to assist with citing public areas such as inadequate access to parks. Specifically, the revitalization of the Mary Ella Brown Center, as part of the Fresno Parks Master Plan. Our volunteering and contribution will be to provide the community and nearby schools the access to recreation amenities, and a donatable location to plant trees to facilitate a greener environment. Other public improvements we are elated to be part of include, donations towards developing better senior citizen's centers, expansion of public playgrounds, and realignment of pavement for improvement of pedestrian safety. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 170 Section 7.2 – Public Health Education Outreach Our primary goal at Fresh Farms is not only to ensure that our customers are aware of what they are consuming, but also how to safely and effectively use cannabis. Our ownership team feels that it is our responsibility as industry professionals and experts to provide clear and concise information our customers, and to the general public as well. Fresh Farms has developed multiple level education components for our customers that approach this very similarly to our employee education through several different media types, to ensure we reach the widest audience we can. Several programs have been created by our teams through which customers can be educated. These customer education modules are individualized, interactive, and can be do done as part of a bigger education plan, or individually in isolation. Direct Interaction Our staff will be the most direct knowledge source for our customers. The customers’ initial interaction when they enter our store will be with sales staff and Cannabis Consults, and they will serve as arbiters of cannabis knowledge. Our staff will be able to assist any customer that comes in and wants to learn about cannabis products and their safe, intended use thanks to our detailed and thorough employee education program. New customers that are eager to learn, but do not know where to start are not in short supply. Unfortunately, disinformation has been previously share with many customers through word of mouth by ‘bud tenders’ rather than an expert, and we find this leads to people underestimating cannabis effects, the variety of products, and the proper way to use products. We will engage with the public through recurring community events, as an effort to reach these “curious customers” and educate them. Pop-up events will be held throughout the city with a focus on education each month during our first two years of operation, and each quarter from there on out. Our team is creating an inviting, age and informative space for every consumer on the spectrum to come and learn about cannabis through the concept of innovative seminars. These seminars are being led by the owner and other members of our management team, who have cannabis experience that is helpful in answering questions that many potential customers have. Remote participation in our seminars is possible through an online component. Always available to the public, our online educational platform and curriculum mirror much of the content and teaching methodology employed in our comprehensive staff training program. In the following sections we have outlined the categories covered in our public facing education platform. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 171 Furthermore, education materials in print form will be available in store and can also be solicited through our website. These materials will provide a plethora of information in regard to buying and giving cannabis, adult use limitations, driving with cannabis, personal possession and growing, violations and penalties, and negative effects of cannabis on youth. Health Effects Both the positive intended effects of responsible use and the potential negative effects of misuse, overuse, or abuse are covered in public facing modules on the health effects of cannabis. Properly used, cannabis products potentially relieve chronic pain, treat depression and anxiety, reduce inflammation, and even regulate seizures or fight cancer when inhaled or ingestion. Cannabis can have a negative effect on many organ systems including memory and attention problems, poor lung health, and could potentially become a source of dependency when used incorrectly. Utilizing an easy-to navigate platform, our education portal will provide visitors with a self guided tour explaining all the potential health effects of using cannabis. Responsible Use Information will be provided to the public in regard to the many short- and long- term effects of cannabis use including altered senses, perception of time, mood, impaired movement and cognition, and potentially hallucinations or delusions. The responsible use section will rely heavily on cannabis science, date and required testing of any and all products to form our curriculum. The environment within which we operate is one in which each and every product is tested for potency, and that information is include right on the label, as required by law. Users, both new and experienced alike, will be informed on how to better interpret said information in order to understand proper dosing, with focus on edible products which can take longer to activate. Legal Responsibility An understanding of the legal responsibility goes hand-in-hand with responsible use for all cannabis users. We will break down the regulations for local and state in regard to personal use in a clear, concise and easily understandable way in these modules. While cannabis is federally illegal, the State of California and the City of Fresno regulates where it can be legally purchased or consumed, as well as personal possession limits and proper storage in a vehicle. In addition, we will cover the regulation differences between CBD and THC products, and how to find license retails in their location. Please see a mockup of our customer-facing education portal on the following page for a graphical representation of our training modules. Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 172 Commercial Cannabis Application – Retail SECTION 7: Community Plan Fresh Farms, LLC | 173 Section 7.3 – Community Reinvestment Fund The City of Fresno will, in order to support equity in the local cannabis industry, establish the Fresno Community Reinvestment Fund (“the Fund”) to support local equity businesses operating in the City of Fresno under Article 33 Section 9-3315(b)(6). Through this fund, support will be provided to local equity business in the area of workforce development, access to affordable commercial real estate, access to investment financing, and access to legal services and business administration technical assistance. Although the plan is yet to be completed, the city is looking more specifically to supply local social equity business with assistance in paying state and regulatory and licensing fees, assistance securing business locations during or prior to the applications process, assistance securing capital investments, and business loans and/or grants, as well as assistance in recruiting, training, and retention of a qualified and diverse workforce. In addition to establishment of an incubation program with a licensing and compliance assistance, a mirrored launch schedule, and a combined sales and purchasing efforts, we will commit to participating in the Community Reinvestment Fund. Initially, there is potential to grant up to two Social equity retail licenses and two cannabis productions licenses in accordance with the current ordinance. Our analysis estimates that the services afforded to social equity businesses could total as much as per applicant, although cost and intended contribution guidelines are outline by city guidelines. Evenly spread through the anticipated number of non-social equity business, would create an estimated net contribution of each. On this preliminary analysis, we pledge in initial contribution to the city’s Community Reinvestment fund, but this amount will be augmented according to compliance with city guidelines. INDEMNIFICATION AND HOLD HARMLESS AGREEMENT FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION To the fullest extent permitted by law, the City of Fresno (City) shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to Fresno Municipal Code Section. 9-3333 or otherwise approving the operation of any commercial cannabis business or cannabis retail business. In consideration for the submittal of an application for a commercial cannabis business permit application and/or issuance of a cannabis business permit, and to the furthest extent allowed by law, Applicant does hereby agree to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of the issuance of a cannabis business permit. Applicant’s obligations under the preceding sentence shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. Applicant must, at the time of permit issuance, maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the City Manager. Applicant shall conduct all defense at his/her/its sole cost. The fact that insurance is obtained by Applicant shall not be deemed to release or diminish the liability of Applicant, including, without limitation, liability assum ed under this Agreement. The duty to indemnify shall apply to all claims regardless of whether any insurance policies are applicable. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists regardless of any ultimate liability of Applicant. The policy limits do not act as a limitation upon the amount of defense and/or indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Applicant, its officials, officers, employees, agents, volunteers or invitees. City shall be reimbursed for all costs and expenses, including but not limited to legal fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis business permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. This Indemnification and Hold Harmless Agreement shall survive the expiration or termination of the Application and/or Permit. The undersigned acknowledges that he/she (i) has read and fully understands the content of this Indemnification and Hold Harmless Agreement; (ii) is aware that this is a contract between the City and Applicant; (iii) has had the opportunity to consult with his/her attorney, in his/her discretion; (iv) is fully aware of the legal consequences of signing this document; and (v) is the Applicant or his/her/its authorized signatory. Signed on this day of 2020. Applicant Signature City Employee Signature Print Name and Company Name Print Name Address Title Telephone Number Telephone Number DocuSign Envelope ID: 241C1BAB-189E-4FD5-BE37-2CBDE942E875 29th Candy Heredia TYL BUSINESS SOLUTIONS, INC. November INDEMNIFICATION AND HOLD HARMLESS AGREEMENT FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION To the fullest extent permitted by law, the City of Fresno (City) shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to Fresno Municipal Code Section. 9-3333 or otherwise approving the operation of any commercial cannabis business or cannabis retail business. In consideration for the submittal of an application for a commercial cannabis business permit application and/or issuance of a cannabis business permit, and to the furthest extent allowed by law, Applicant does hereby agree to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of the issuance of a cannabis business permit. Applicant’s obligations under the preceding sentence shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. Applicant must, at the time of permit issuance, maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the City Manager. Applicant shall conduct all defense at his/her/its sole cost. The fact that insurance is obtained by Applicant shall not be deemed to release or diminish the liability of Applicant, including, without limitation, liability assum ed under this Agreement. The duty to indemnify shall apply to all claims regardless of whether any insurance policies are applicable. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists regardless of any ultimate liability of Applicant. The policy limits do not act as a limitation upon the amount of defense and/or indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Applicant, its officials, officers, employees, agents, volunteers or invitees. City shall be reimbursed for all costs and expenses, including but not limited to legal fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis business permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. This Indemnification and Hold Harmless Agreement shall survive the expiration or termination of the Application and/or Permit. The undersigned acknowledges that he/she (i) has read and fully understands the content of this Indemnification and Hold Harmless Agreement; (ii) is aware that this is a contract between the City and Applicant; (iii) has had the opportunity to consult with his/her attorney, in his/her discretion; (iv) is fully aware of the legal consequences of signing this document; and (v) is the Applicant or his/her/its authorized signatory. Signed on this day of 2020. Applicant Signature City Employee Signature Print Name and Company Name Print Name Address Title Telephone Number Telephone Number DocuSign Envelope ID: 241C1BAB-189E-4FD5-BE37-2CBDE942E875 November29th TYL BUSINESS SOLUTIONS, INC. Damaris Graibe INDEMNIFICATION AND HOLD HARMLESS AGREEMENT FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION To the fullest extent permitted by law, the City of Fresno (City) shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to Fresno Municipal Code Section. 9-3333 or otherwise approving the operation of any commercial cannabis business or cannabis retail business. In consideration for the submittal of an application for a commercial cannabis business permit application and/or issuance of a cannabis business permit, and to the furthest extent allowed by law, Applicant does hereby agree to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of the issuance of a cannabis business permit. Applicant’s obligations under the preceding sentence shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. Applicant must, at the time of permit issuance, maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the City Manager. Applicant shall conduct all defense at his/her/its sole cost. The fact that insurance is obtained by Applicant shall not be deemed to release or diminish the liability of Applicant, including, without limitation, liability assum ed under this Agreement. The duty to indemnify shall apply to all claims regardless of whether any insurance policies are applicable. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists regardless of any ultimate liability of Applicant. The policy limits do not act as a limitation upon the amount of defense and/or indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Applicant, its officials, officers, employees, agents, volunteers or invitees. City shall be reimbursed for all costs and expenses, including but not limited to legal fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis business permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. This Indemnification and Hold Harmless Agreement shall survive the expiration or termination of the Application and/or Permit. The undersigned acknowledges that he/she (i) has read and fully understands the content of this Indemnification and Hold Harmless Agreement; (ii) is aware that this is a contract between the City and Applicant; (iii) has had the opportunity to consult with his/her attorney, in his/her discretion; (iv) is fully aware of the legal consequences of signing this document; and (v) is the Applicant or his/her/its authorized signatory. Signed on this day of 2020. Applicant Signature City Employee Signature Print Name and Company Name Print Name Address Title Telephone Number Telephone Number DocuSign Envelope ID: 241C1BAB-189E-4FD5-BE37-2CBDE942E875 November TYL BUSINESS SOLUTIONS, INC. 29th Sigrid Lopez 26th November OWNERSHIP ACKNOWLEDGEMENT FORM FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION It is the intent of the City of Fresno to promote equitable ownership and employment opportunities in the cannabis industry to decrease the disparities in life outcomes for marginalized communities and to provide opportunities for local residents to compete for cannabis business permits. Therefore, this notice is to clarify the eligibility requirements in order to receive qualification as a Social Equity Applicant or points for Local Preference by establishing this acknowledgement to provide additional protections to mitigate against potential predatory practices. In order to qualify as a social equity applicant, or for the full points relating to the local preference criteria, the business entity must have ownership that meets the respective eligibility factors and hold at least 51% ownership interest. The social equity eligibility requirements are identified in FMC section 9-3316(b)(6), while the local preference criteria is identified in FMC 9- 3317(a) and the application evaluation criteria 2.5 (Appendix A). This majority interest can be made up of a single individual that meets this criteria, or any combination of individuals that hold at least 20% interest individually and meet the definition of an owner in FMC 9-3304(j). The cannabis social equity permits, and the local preference criteria are intended for the benefit of the Social Equity or Local Preference Individual Applicants related to business profits, proceeds of the sale of business assets, voting rights and additional protections. This also requires the Social Equity or Local Preference Owner to receive the Equity Share percent of the retained earnings and 100 percent of the unencumbered value of each share of stock, member interest or partnership interest owned in the event of the dissolution of the entity to their equity share, or 100 percent of the value of each of stock, member interest or partnership interest in the event that the stock, member interest or partnership interest is sold. Chief among the concepts of equity share, is unconditional ownership which means such individual(s) will receive equal profits, and distributions or other payments proportionate to their ownership interests. This is intended to ensure true ownership by the Social Equity or Local Preference Individual Applicant and as such, prohibits the divestment or relinquishment of any part of their ownership under any circumstance. In addition, the Equity Share is also expanded to address voting rights on fundamental decisions relating to the business and control of at least the equity share percent of the voting rights on all decisions involving the operation of the business. Furthermore, it requires the Social Equity or Local Preference Individual owner be the highest officer position of the business or that another individual is appointed to that position by mutual agreement of the parties. This requirement is also subject to being audited to assess compliance and the Social Equity or Local Preference Owner can initiate legal action due to a breach of contract agreement, and the City may suspend and/or revoke a license if any provision in an operating agreement violates any of the Equity Share or Local Preference requirements. Lastly, all applicants will be required to incorporate an addendum into their operating agreements that makes any provision ineffective, unenforceable, null and void, if it is inconsistent with, or in violation of, the Equity Share requirements. As proposed, Social Equity Applicants or Local Preference Applicants will be required to verify under Section 9-3316(b)(6), 9-3317(a), and Criteria 2.5 of appendix A that they meet the definition of a Social Equity or Local Preference Owner at the time of applying for a permit or permit renewal. The City shall have the sole and absolute discretion to determine whether the Applicant qualifies as a Social Equity Applicant and the number of points for Local Preference. The undersigned acknowledges that he/she has read and fully understands the content of this Agreement and is the Applicant or his/her/its authorized signatory. __________________________________________________ __________________________________________________ Applicant Signature Date Signed __________________________________________________ __________________________________________________ Print Name _________________________________________________ Company Name DocuSign Envelope ID: 241C1BAB-189E-4FD5-BE37-2CBDE942E875 Candy Heredia TYL BUSINESS SOLUTIONS, INC. 11-29-2020 Secretary OWNERSHIP ACKNOWLEDGEMENT FORM FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION It is the intent of the City of Fresno to promote equitable ownership and employment opportunities in the cannabis industry to decrease the disparities in life outcomes for marginalized communities and to provide opportunities for local residents to compete for cannabis business permits. Therefore, this notice is to clarify the eligibility requirements in order to receive qualification as a Social Equity Applicant or points for Local Preference by establishing this acknowledgement to provide additional protections to mitigate against potential predatory practices. In order to qualify as a social equity applicant, or for the full points relating to the local preference criteria, the business entity must have ownership that meets the respective eligibility factors and hold at least 51% ownership interest. The social equity eligibility requirements are identified in FMC section 9-3316(b)(6), while the local preference criteria is identified in FMC 9- 3317(a) and the application evaluation criteria 2.5 (Appendix A). This majority interest can be made up of a single individual that meets this criteria, or any combination of individuals that hold at least 20% interest individually and meet the definition of an owner in FMC 9-3304(j). The cannabis social equity permits, and the local preference criteria are intended for the benefit of the Social Equity or Local Preference Individual Applicants related to business profits, proceeds of the sale of business assets, voting rights and additional protections. This also requires the Social Equity or Local Preference Owner to receive the Equity Share percent of the retained earnings and 100 percent of the unencumbered value of each share of stock, member interest or partnership interest owned in the event of the dissolution of the entity to their equity share, or 100 percent of the value of each of stock, member interest or partnership interest in the event that the stock, member interest or partnership interest is sold. Chief among the concepts of equity share, is unconditional ownership which means such individual(s) will receive equal profits, and distributions or other payments proportionate to their ownership interests. This is intended to ensure true ownership by the Social Equity or Local Preference Individual Applicant and as such, prohibits the divestment or relinquishment of any part of their ownership under any circumstance. In addition, the Equity Share is also expanded to address voting rights on fundamental decisions relating to the business and control of at least the equity share percent of the voting rights on all decisions involving the operation of the business. Furthermore, it requires the Social Equity or Local Preference Individual owner be the highest officer position of the business or that another individual is appointed to that position by mutual agreement of the parties. This requirement is also subject to being audited to assess compliance and the Social Equity or Local Preference Owner can initiate legal action due to a breach of contract agreement, and the City may suspend and/or revoke a license if any provision in an operating agreement violates any of the Equity Share or Local Preference requirements. Lastly, all applicants will be required to incorporate an addendum into their operating agreements that makes any provision ineffective, unenforceable, null and void, if it is inconsistent with, or in violation of, the Equity Share requirements. As proposed, Social Equity Applicants or Local Preference Applicants will be required to verify under Section 9-3316(b)(6), 9-3317(a), and Criteria 2.5 of appendix A that they meet the definition of a Social Equity or Local Preference Owner at the time of applying for a permit or permit renewal. The City shall have the sole and absolute discretion to determine whether the Applicant qualifies as a Social Equity Applicant and the number of points for Local Preference. The undersigned acknowledges that he/she has read and fully understands the content of this Agreement and is the Applicant or his/her/its authorized signatory. __________________________________________________ __________________________________________________ Applicant Signature Date Signed __________________________________________________ __________________________________________________ Print Name Title __________________________________________________ ____________________________ Company Name Address/Telephone DocuSign Envelope ID: 241C1BAB-189E-4FD5-BE37-2CBDE942E875 ( TYL BUSINESS SOLUTIONS, INC. Damaris Graibe Chief Financial Officer 11-29-2020 OWNERSHIP ACKNOWLEDGEMENT FORM FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION It is the intent of the City of Fresno to promote equitable ownership and employment opportunities in the cannabis industry to decrease the disparities in life outcomes for marginalized communities and to provide opportunities for local residents to compete for cannabis business permits. Therefore, this notice is to clarify the eligibility requirements in order to receive qualification as a Social Equity Applicant or points for Local Preference by establishing this acknowledgement to provide additional protections to mitigate against potential predatory practices. In order to qualify as a social equity applicant, or for the full points relating to the local preference criteria, the business entity must have ownership that meets the respective eligibility factors and hold at least 51% ownership interest. The social equity eligibility requirements are identified in FMC section 9-3316(b)(6), while the local preference criteria is identified in FMC 9- 3317(a) and the application evaluation criteria 2.5 (Appendix A). This majority interest can be made up of a single individual that meets this criteria, or any combination of individuals that hold at least 20% interest individually and meet the definition of an owner in FMC 9-3304(j). The cannabis social equity permits, and the local preference criteria are intended for the benefit of the Social Equity or Local Preference Individual Applicants related to business profits, proceeds of the sale of business assets, voting rights and additional protections. This also requires the Social Equity or Local Preference Owner to receive the Equity Share percent of the retained earnings and 100 percent of the unencumbered value of each share of stock, member interest or partnership interest owned in the event of the dissolution of the entity to their equity share, or 100 percent of the value of each of stock, member interest or partnership interest in the event that the stock, member interest or partnership interest is sold. Chief among the concepts of equity share, is unconditional ownership which means such individual(s) will receive equal profits, and distributions or other payments proportionate to their ownership interests. This is intended to ensure true ownership by the Social Equity or Local Preference Individual Applicant and as such, prohibits the divestment or relinquishment of any part of their ownership under any circumstance. In addition, the Equity Share is also expanded to address voting rights on fundamental decisions relating to the business and control of at least the equity share percent of the voting rights on all decisions involving the operation of the business. Furthermore, it requires the Social Equity or Local Preference Individual owner be the highest officer position of the business or that another individual is appointed to that position by mutual agreement of the parties. This requirement is also subject to being audited to assess compliance and the Social Equity or Local Preference Owner can initiate legal action due to a breach of contract agreement, and the City may suspend and/or revoke a license if any provision in an operating agreement violates any of the Equity Share or Local Preference requirements. Lastly, all applicants will be required to incorporate an addendum into their operating agreements that makes any provision ineffective, unenforceable, null and void, if it is inconsistent with, or in violation of, the Equity Share requirements. As proposed, Social Equity Applicants or Local Preference Applicants will be required to verify under Section 9-3316(b)(6), 9-3317(a), and Criteria 2.5 of appendix A that they meet the definition of a Social Equity or Local Preference Owner at the time of applying for a permit or permit renewal. The City shall have the sole and absolute discretion to determine whether the Applicant qualifies as a Social Equity Applicant and the number of points for Local Preference. The undersigned acknowledges that he/she has read and fully understands the content of this Agreement and is the Applicant or his/her/its authorized signatory. __________________________________________________ __________________________________________________ Applicant Signature Date Signed __________________________________________________ __________________________________________________ Print Name Title __________________________________________________ Company Name DocuSign Envelope ID: 241C1BAB-189E-4FD5-BE37-2CBDE942E875 TYL BUSINESS SOLUTIONS, INC. 11-29-2020 PresidentSigrid Lopez Commercial Cannabis Application – Retail Fresh Farms, LLC | 147 SECTION 6 : LOCATION SECTION 6 – LOCATION ............................................................................................ 147 6.1 – Property Description .................................................................................................. 148 6.1 – Property Description ............................................................................................... 148 6.1 – Floorplan ................................................................................................................... 150 6.1 – Design ........................................................................................................................ 151 6.2 – Exterior Photographs & Renderings ......................................................................... 155 6.3 – Premises Diagrams .................................................................................................... 158 Commercial Cannabis Application – Retail Fresh Farms, LLC | 148 Section 6.1 – Property Description Section 6.1.1 – Property Description The proposed property located at 4931 North Blackstone Avenue in Fresno is a single level rectangular shaped, corner lot at the intersection of East Shaw and North Blackstone Avenues in Fresco, California. The property fronts the west side of North Blackstone Avenue and the south side of West Shaw Avenue. The property fronts the south side of West Shaw Avenue for approximately 240 feet and the property also fronts approximately 410 feet of the West side of North Blackstone Avenue. East Shaw Avenue acts as the properties northern border and is a well trafficked portion of roadway that runs east to west, connecting several Fresno communities to the California highways 41, 99 and 168 and acts as a major thoroughfare throughout the City and surrounding communities. North Blackstone Avenue acts as the eastern boarder of the property and is also a well trafficked avenue which runs parallel to the CA 41 Highway. While the property does not front the highway, the property is not more than a quarter mile from the highway onramp which connects the Fresno community to Interstate 5 and the Sierra Nevada mountain range. The project site has seen many building permits issued over a period of years. In accordance with zoning regulations, commercial uses on the property were confined to the zoning regulations and to the General Central commercial mixed-use district. The existing site provides guest with ample parking for commercial spaces per the Fresno Building Code, as well as easily accessible ADA parking spaces. The site is currently occupied by several tenants within the shopping center, there is a variety of commercial retail establishments that are present in the commercial center including Fiesta Auto Insurance, Check ‘n Go, World Hair Stylist, Med Wrap’s Café, DXL apparel, Change Up apparel, Sprint Mobil Store, a Lens Crafters and our company Fresh Farms. As a result of the property being located within the Central Commercial Mixed-Use District, (CMX) and being located along two major roadways the surrounding properties along these traffic corridors are similarly zoned for mixed use development. Within the general area there are a variety of differently zoned areas, including the property directly opposite East Shaw Road, which is zoned as Regional Mixed-Use Zone, (RMX). The RMX and CMX are very similar and share the same goals of transforming auto- orientated boulevards and corridors into vibrant, diverse and attractive corridors that support a mix of pedestrian-oriented retail, office, and residential uses in order to achieve an active social environment with a revitalized streetscape. Fresh Farms will blend into the surrounding community while still providing a complete revitalization of the property. Pending licensing approval, the location will be Commercial Cannabis Application – Retail Fresh Farms, LLC | 149 fully remodeled for aesthetics, safety, and security. Our exterior design concept blends the common and historic textures that are unique to Fresno and the Fig Garden neighborhood. The zoning and the distance from sensitive uses makes 4931 Blackstone an ideal location for a commercial cannabis business. In addition, the City of Fresno has listed the address as a potentially eligible parcel for retail cannabis. Please see the attached Zoning Inquiry Letter which establishes the property as properly zoned and distanced for cannabis retail use. Commercial Cannabis Application – Retail Fresh Farms, LLC | 150 Commercial Cannabis Application – Retail Fresh Farms, LLC | 151 Design Upon entry top Fresh Farms, our customers will find a retail space that pays homage to aesthetics of the most high-end retailer. Taking cues from luxury fashion brands, customers are greeted by a welcoming reception area featuring works by local artist with connections to the community. The focal point is a floor to ceiling display containing plants behind frosted glass, creating a natural-mist life feel. The main retail space further incorporates this feature and also includes continuous wall planters full of native California plants that act as natural air filters and acoustic dampeners. Our flooring will incorporate rich woods in a distinctive herringbone pattern. Fresh Farms’ owners’ experience in retail cannabis has helped them to understand that cannabis is best left to cannabis professionals and design is best left to design professionals. As such, a team of design superheroes, consisting of two architectural and interior design firms with distinct skillsets, graphic design and branding professionals, and local artists to weave together unique design features to create a fluid visual appeal. To embrace the naturalistic feel of our brand and products, we have incorporated integrated plant material to emphasize and highlight the natural product lines carried by Fresh Farms, real, local to California, drought tolerant plants will be featured throughout the design space; along a continuous planter above the entire entry and retail spaces and throughout the education area. While these plants are visually pleasing and create a welcoming retail atmosphere, they also greatly assist in naturally filtering odors in the air. Species such as Snake Plant, Boston fern, and Aloe are prime examples of the type of naturally air-filtering indoor plants that will be installed. The natural features will be juxtaposed with modern all-glass decorative display cases. It is essential that the required security features be as inconspicuous and integrated as possible into the design of our store. We have provided numerous instances in the design for concealed security measures to be taken. Through the entry, a ceiling soffit is employed that will allow hidden metal detectors to be installed above. Each product display can be closed and locked with minimal effort while maintaining the overall aesthetic of the store design. Commercial Cannabis Application – Retail Fresh Farms, LLC | 152 Any architect can dream up a rendering of a perfectly constructed building, with floor to ceiling windows, imagined on an isolated and pristine property with perfectly manicured hedges and sprawling floor plans. However, the real work begins once an architect is tasked with making their visualization a reality— a building that is not only structurally feasible, but that also provides features which weave the design and mass of the structure seamlessly into the fabric of the surrounding neighborhood. Our ambitious goal is not merely to fit in with the character of our neighborhood, but to gently and decisively elevate the quality of the surrounding environment through a building design that is functionally flexible and accessible, while still capable of inspiring the imagination as it brings artistic expression to life. Fresh Farms’ carefully crafted exterior design follows the design cues of the neighborhood and blends them with the forward-thinking cannabis culture. Our incorporation of classic stone textures and native plants into our exterior façade and interior design will harken back to the classic architecture and materials that can still be found throughout the city. Commercial Cannabis Application – Retail Fresh Farms, LLC | 153 Commercial Cannabis Application – Retail Fresh Farms, LLC | 154 Commercial Cannabis Application – Retail Fresh Farms, LLC | 155 Section 6.2 – Exterior Photographs & Renderings In addition to an interior remodel, we plan to improve the exterior of the building by refinishing, retrofitting design and security elements, and improving the overall appeal of the property. Please see the current photographs and conceptual renderings for more information about the exterior design aesthetic. Image locations are outlined on the premises diagram. Fresh Farms will blend into the surrounding community while still providing a complete revitalization of the property. Pending licensing approval, the location we secure will be fully remodeled for aesthetics, safety, and security. Our exterior design concept blends the common and historic textures common in Fresno with a high-end, nature-focused design aesthetic. We have incorporated the stone and classical stucco that can be found many places in Fresno with a living wall of drought- resistant local plants and a stunning entrance display with living plants. Commercial Cannabis Application – Retail Fresh Farms, LLC | 156 Commercial Cannabis Application – Retail Fresh Farms, LLC | 157 PLANNING AND DEVELOPMENT DEPARTMENT 2600 Fresno Street • Third Floor Jennifer K. Clark, AICP, Director Fresno, California 93721-3604 (559) 621-8277 FAX (559) 498-1026 December 4, 2020 Please reply to: Rob Holt (559) 621-8056 Travis Miller Dear Applicant: SUBJECT: ZONING INQUIRY NUMBER P20-04429 REQUESTING INFORMATION REGARDING CANNABIS RETAIL FOR PROPERTY LOCATED AT 4931 NORTH BLACKSTONE AVENUE (APN 425-092-30) 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, 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. Zoning Inquiry P20-04429 4931 North Blackstone Avenue Page 2 December 4, 2020 The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business. 3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC. 4. No more than 2 cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than 2 per Council District), they shall be dispersed evenly by Council District. The subject property is in Council District 4. There are currently no cannabis retail businesses located in Council District 4. This location requirement is satisfied for a cannabis retail business. Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8056 or at Robert.Holt@fresno.gov. Cordially, Rob Holt, Planner III Development Services Division Planning and Development Department