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HomeMy WebLinkAboutCSE-20-5 The Joint 559 RedactedApplication Type Social Equity Criteria Applicant (Entity) Information Social Equity Cannabis Business Permit Application CSE-20-5 Submitted On: Nov 09, 2020 Applicant Angelica Garcia 661-742-0323 In order to qualify as a social equity applicant, applicants must satisfy at least one of the following criteria: 1. Low income household and either: a. A past conviction for a cannabis crime, or b. Immediate family member with a past conviction for a cannabis crime. 2. Low income household in a zip code identified as at least 60% according to the CalEnviroScreen for five (5) consecutive year period and either: a. A past conviction for a cannabis crime, or b. Immediate family member with a past conviction for a cannabis crime. 3. Low income household and either: a. Five (5) years cumulative residency in a zip code identified as at least 70% according to the CalEnviroScreen, or b. Ten (10) years cumulative residency in a zip code identified by CalEnviroScreen. 4. Business with no less than fifty-one percent (51%) ownership by individuals who meet Criteria 1 and 2 above. 5. Cannabis social enterprise with no less than fifty-one percent (51%) ownership by individuals who meet Criteria 1 and 2 above. 6. An individual with a membership interest in a cannabis business formed as a cooperative. Do you meet the above criteria, and want to apply as a Social Equity Applicant? Yes Please state your annual income:Do you have a past cannabis conviction? No Do you claim eligibility based on a family member past cannabis conviction? No Do you represent a cannabis social enterprise? No Do you have a membership interest in a cannabis cooperative? No Application Type Proposed Location Supporting Information Applicant (Entity) Name: Angelica Garcia DBA: -- Physical Address:City: Fresno State: Ca Zip Code: 93722 Primary Contact Same as Above? Yes Primary Contact Name: 661-742-0323 Primary Contact Title: Owner Primary Contact Phone: 661-742-0323 Primary Contact Email: ohanapantry HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: No Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type. Permit Type Retail (Storefront) Business Formation Documentation: Sole Proprietorship Property Owner Name: -- Proposed Location Address: -- City: -- State: -- Zip Code: -- Property Owner Phone: -- Property Owner Email: -- Assessor's Parcel Number (APN): -- Proposed Location Square Footage: -- List all fictitious business names the applicant is operating under including the address where each business is located: -- Score one of the following for a maximum 20 points: Capital source is 100% liquid (cash in owners bank, no debt obligation)20 20 Capital souce is debt obligation (letter of credit/loan from individual or institution) 10 10 Capital consists of non-liquid assets (i.e. real property)8 8 Capital consists of a mixture of liquid and non-liquid assets 15 15 15 1.3 Sub-Total:50 35 Three Years of Data Provided: Score 10 10 8 6 8 Semi-detailed data Total Gross Revenue Estimates Provided:3 3 3 Total Gross Revenue by Product Type (flower and manufactured) Identified:3 3 Total Personnel Costs Provided:5 5 4 3 3 Lump sum included, but not detailed Total Property Rental or Purchase Costs Provided:2 2 2 Total Utilities Costs Provided:2 2 Total Cannabis Product Purchase Expense Provided 2 2 2 All Contract Services Identified:2 2 2 Annual Net Revenue Identified:3 2 2 Annual Cost Escalators Identified:4 4 3 2 3 Shows some costs being escalated over quarters/years Annual Estimated Sales Tax Payments to State Provided:2 2 2 Annual Estimated Sale Tax Payments to City of Fresno Provided:5 2 Annual Business Tax License and Cannabis Permit Fee Provided:2 2 Annual Net Income Provided:5 5 5 Scoring Guidance: full points for realistic figures for all three years. Dock points for severe miscalculations, unrealistic estimates, or providing less than the request three years. 1.4 Sub-Total:50 32 Hours of Operation Provided: Score 5 5 5 Hours of Operation Provided for all 7 days of the week: Score 3 3 3 Hours of Operation Provided for Holidays: Score 2 2 0 not mentioned Opening and Closing Procedures Provided: Score 10 10 8 6 10 Scoring Guidance: full points for describing information in detail. Dock points for leaving information out or not providing enough detail. 1.5 Sub-Total:20 18 1.6.1 Fully describe the day-to-day operations if your applying for a retail permit: i. Describe customer check-in procedures.20 20 15 10 20 II. Identify location and procedures for receiving deliveries during business hours.10 10 8 6 10 iii. Identify the name of the Point-of-sale system to be used and the number of Point-of-Sale locations.10 10 10 Treez iv. The estimated number of customers to be served per hour/day.20 20 15 10 20 100-200 per day, 10-20 per hour 1.6 Daily operations. With as much detail as possible, the Business Plan should describe the day-to-day operations which meet industry best practices. This should include at a minimum the following criteria for each permit type in which you are applying for a permit. (100 points possible) 1.4 Pro forma for at least three years of operation. 1.5 Fully describe hours of operation and opening and closing procedures. (20 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: v. Describe the proposed product line to be sold and estimate the percentage of sales of flower and manufactured products.20 20 15 10 20 vi. If proposed, describe delivery service procedures, number of vehicles and product security during transportation. (if no delivery service application must state this clearly for full points)20 20 15 10 10 employees to use own vehicle. Did not discuss physical security of cannabis/cash in vehicle. 1.6 Sub-Total:100 90 Section 1 Total:300 204 SECTION 2: SOCIAL POLICY AND LOCAL ENTERPRISE 400 Points Possible for Section 2 Description of Commitment to pay a Living Wage provided: Score 10 10 8 6 10 reference to microbusiness page 1. Page 6 for this criteria Definition of Living Wage Provided: Score 5 5 4 3 5 Living Wage Defined as Greater than Minimum Wage: Score 5 5 5 2.1 Sub-Total:20 20 Wages and Salary CCB Entry-Level Hourly Wage Greater than Minimum Wage 5 5 5 CCB Entry-Level Annual Salary Greater than Median Household Income ($50,432)5 5 0 Health Care Benefits CCB Offers Medical Coverage to All Employees: Score 5 5 5 CCB Offers Dental Coverage to All Employees: Score 3 3 0 not mentioned CCB Offers Vision Coverage to All Employees: Score 3 3 0 not mentioned CCB Offers Health Reimbursement Account for Qualified Medical Expenses: Score 1 1 0 not mentioned Employee Pays $0 for Employee Medical Premium: Score 3 3 0 not mentioned Employee Pays $0 for Employee Dental Premium: Score 2 2 0 not mentioned Employee Pays $0 for Employee Vision Premium: Score 2 2 0 not mentioned Employee Pays less than $500 per month for Family Health Care Coverage (Medical, Dental, Vision): Score 2 2 0 not mentioned Leave Benefits Number of Paid Vacation/PTO Days Per Year: (10+ days = excep; 6-9 days = Good; 3-5 days Acceptable)5 5 4 3 3 vacation mentioned but no quantity Number of Paid Holidays Per Year: (10 or more paid holidays = excep; 4-10 = Good; 1-3 Acceptable)5 5 4 3 0 not mentioned Number of days paid time off for Sick/Medical time: (7+ days= Exceptional, 4-6 days = Good, 3 days = acceptable (8 hour day))5 5 4 3 3 medical leave mentioned but no quantity Retirement Offers employee retirement plan 2 2 0 not mentioned Offers company match for employee retirement plan 2 2 0 2.2 Sub-Total:50 16 2.1 Describe whether the Commercial Cannabis Business is committed to offering employees a Living Wage. (20 points possible) Scoring Guidance: https://livingwage.mit.edu/counties/06019 2.2 Briefly describe benefits provided to employees such as health care, vacation, and medical leave, to the degree they are offered as part of employment. (50 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: CCB Provides Tuition Reimbursement for Certificates: Score 3 3 3 CCB Provides Tuition Reimbursement for associate degrees: Score 3 3 3 2 classes per quarter paid toward accredited degree CCB Provides Tuition Reimbursement for bachelor's degrees: Score 3 3 3 CCB Provides Tuition Reimbursement for master's degrees: Score 3 3 3 CCB Provides Tuition Reimbursement for Specialized Commercial Cannabis Business Operations Training: Score 3 3 3 CCB Offers General Training for Health and Safety, Workplace Environment, Customer Service, etc. 5 5 4 3 5 2.3 Sub-Total:20 20 General Recruitment Plan Provided: Score 10 10 8 6 10 Social Policy Recruitment Plan Provided: Score 10 10 8 6 6 commitment made, no specific strategies Recruitment Plan Includes Demographic Data for District, City or County: Score 10 10 8 6 0 Recruitment Plan Includes List of CBOs, Non-Profits and Public-Agency Hiring Partners: Score 10 10 8 6 0 Recruitment Plan Includes Hiring Targets (percentages) by Demographic Groups: Score 10 10 8 6 10 2.4 Sub-Total:50 26 Owners Number of Owners:1 Number of Owners that live within the City of Fresno:1 Number of Owners that live in the County of Fresno:0 Number of Owners that Own a Business in the City of Fresno:1 51%+ ownership interest percent of the Owners live or own a business in the City: Score 80 80 80 51%+ ownership interest percent of the Owners live or own a business in the County: Score 40 40 Less than 50% equity of the Owners live or own a business in the City (If no owners are local, score zero)20 20 Managers Number of Managers (salaried, non-owners)local hire commitment but no specific % Number of Managers that live in the City of Fresno: Number of Managers that Own a Business in the City of Fresno: 100 percent of the Managers live or own a business in the City: Score 20 20 75 to 99 percent of the Managers live or own a business in the City: Score 15 15 50 to 74 percent of the Managers live or own a business in the City: Score 10 10 Less than 50 percent of the Managers live or own a business in the City: Score 5 5 2.5 Sub-Total:80 80 2.3 Describe compensation to and opportunities for continuing education and employee training.(20 points possible) 2.4 Describe the Commercial Cannabis Business plan to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316 (b) (1) of the Fresno Municipal Code (FMC) and the percentage of local employees it hires. (50 points possible) 2.5 Describe the extent to which the Commercial Cannabis Business will be a locally managed enterprise whose owners and /or managers reside within or own a commercial business within the City of Fresno, for at least one year prior to March 2, 2020.(80 points possible) Criteria Narrative: Data, non-scored. Write response in Evaluation Notes column. IF full points achieved for Ownership category, don't score managers. Section is total of 80 points possible. Criteria Narrative: Criteria Narrative: Data, non-scored. Write response in Evaluation Notes column. Responsibilities Described for All Titles/Positions: Score 20 20 15 10 20 2.6 Sub-Total:20 20 Does CCB have more than five employees: 5 5 5 will have within six months CCB has signed a peace agreement: Score 5 5 5 will signed with 5th employee hire 2.7 Sub-Total:10 10 Work Force Plan Provided: Score 10 10 8 6 10 Commitment to Local Hire Provided:10 10 8 6 10 95% local (County), of that, 50% from City (stated in Section 7 Community Benefits) Commitment to Offer Apprenticeships Provided:10 10 8 6 10 Commitment paying for continuing education provided 10 10 8 6 10 2 classes per semester paid toward accredited degree Description of commitment to paying a living wage provide. (Score same as sec. 2.1)10 10 8 6 10 2.8 Sub-Total:50 50 CCB is willing to serve as Social Equity Business Incubator: Score 100 100 80 60 N/A This is a social equity application Mentorship and Training: Score Equipment Donation: Score Shelf Space: Score Legal Assistance: Score Finance Services Assistance: Score Other Technical Assistance: Score Scoring Guidance: full points for willingness to serve with detailed plan offering at least three aspects mentioned above or of similar benefit. Less points for willingness to serve but vague or unclear commitment. Zero points if there is no clear commitment to serve as Incubator. 2.9 Sub-Total:100 0 Section 2 Total:400 242 SECTION 3: NEIGHBORHOOD COMPATIBILITY PLAN 300 Points Possible for Section 3 Data to inform score on first line of this section. Write response in Evaluation Notes column. 2.8.3. Commitment to pay a living wage to its employees 2.6 Describe the number of employees, title/position and their respected responsibilities.(20 points possible) 2.7 Describe whether the CCB has five (5) or more employees and whether it has signed a labor peace agreement allowing employees to unionize without interference. (10 points possible) 2.8 Provide a workforce plan that includes at a minimum the following provisions: (50 points possible) 2.8.1. Commitment for 30% of employees to be local hires; the business must show that it has either hired or made a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an application for employment with the applicant/permittee. 2.8.2. Commitment to offer apprenticeships and/or compensation for continuing education in the field; and Criteria Narrative: Criteria Narrative: Question: will 4 employees+owner to start be feasible to staff 12 hours+ 7 days a week +opening and closing? Criteria Narrative: Criteria Narrative: 2.9 Describe whether the business is willing to serve as a Social Equity Business Incubator by offering support to local cannabis social equity businesses in the form of mentorship, training, equipment donation, a percentage of shelf space dedicated to Fresno equity business products, legal assistance, financial services assistance, or other technical assistance support.(100 points possible) CCB will document complaints (time of complaint, nature of complaint, resolution of complaint): Score 10 10 8 6 0 Not provided. CCB will established a dedicated contact person to receive complaints: Score 10 10 10 CCB will establish a dedicated phone number to receive complaints: Score 5 5 5 CCB will establish a dedicated email address to receive complaints: Score 5 5 5 CCB will establish a response time standard for returning complaint calls and emails: Score 5 5 0 Not provided. CCB will schedule or participate in periodic community meetings to engage with residents about the CCB operation: Score 10 10 0 Not provided. Other measure unique to business (i.e. website complaint form)5 5 0 Not provided. Scoring Guidance: full points for detailed proactive plan addressing all aspects mentioned. Dock points for leaving out aspect, vagueness, or reactive plans. 3.1 Sub-Total:50 20 CCB will maintain a listserv of community residents to update and information residents of business operations. 10 10 0 Not provided. CCB will schedule or attend periodic community meetings (at least annually) to engage with residents about the CCB operation: Score 10 10 0 Not provided. CCB will prepare a community outreach and engagement plan: Score 50 50 40 30 30 Need more detail. CCB will issue periodic Newsletters to community providing information about CCB operations 10 10 0 Not provided. CCB will hire residents from the community work at the CCB: Score 20 20 0 Not provided. Scoring Guidance: full points for detailed proactive plan. Dock points for leaving out aspect, vagueness, or reactive plans. 3.2 Sub-Total:100 30 CCB has identified sensitive receptors to nuisance odors in vicinity of business operations: Score 5 5 0 Not provided. CCB has prepared a nuisance odor control plan: Score 10 10 8 6 10 Nuisance odor control plan identifies locations where fugitive emissions may exit the premise boundary: Score 5 5 5 Nuisance odor control plan describes specific odor control measures to reduce fugitive emissions exiting the premise boundary: Score 5 5 5 CCB has established an odor reporting system: Score 5 5 5 CCB will install a nuisance odor monitoring system: Score 10 10 10 3.3 Sub-Total:40 35 CCB has identified the potential sources of nuisance odors for the business operation: Score 10 10 8 6 0 Not provided. 3.3 Describe odor mitigation practices.(40 points possible) 3.4 Identify potential sources of odor. (10 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: 3.1 Describe how the CCB will proactively address and respond to complaints related to noise, light, odor, litter, vehicles, and pedestrian traffic.(50 points possible) 3.2 Describe how the CCB will be managed to avoid becoming a nuisance or having impacts on its neighbors and the surrounding community.(100 points possible) Scoring Guidance: full points for detailed proactive plan. Dock points for vagueness or reactive plans. 3.4 Sub-Total:10 0 Nuisance odor control plan describes specific odor control equipment: Score 10 10 8 6 10 Nuisance odor control plan describes specific odor control measures/techniques: Score 10 10 8 6 10 Odor control measures are identified for different nuisance odor sources: Score 10 10 10 3.5 Sub-Total:30 30 Nuisance odor control plan describes the operation, monitoring, and maintenance requirements for odor control measures: Score 10 10 10 Nuisance odor control plan describes the staff training required for system operations, maintenance, repair, and troubleshooting.10 10 0 Not provided. 3.6 Sub-Total:20 10 CCB has identified the sources of waste generated by the business operation: Score 10 10 10 CCB has prepared a source-separation plan to segregate different sources of waste generated by business operations: Score 10 10 10 The source-separation plan identifies policy, procedures, and locations where different sources of waste are to be collected for disposal: Score 10 10 8 6 6 Need more detail. The source-separation plan describes specific measures to control the collection and disposal cannabis waste: Score 10 10 10 The name of licensed cannabis disposal company provided: Score 10 10 0 Not provided. 3.7 Sub-Total:50 36 Section 3 Total:300 161 SECTION 4: SAFETY PLAN 300 Points Possible for Section 4 Safety Plan Prepared by Consultant: Score 10 10 Safey Plan Assessed by Consultant: Score (if prepared by, also give points for assessed by)10 10 Safety Plan Prepared for CCB Address (specific proposed location): Score 10 10 Safety Plan includes Site Plan of Premise: Score 10 10 Safety Plan includes Building Layout Plan: Score 10 10 4.1 Sub-Total:50 0 3.5 Describe odor control devices and techniques employed to ensure that odors from cannabis are not detectable beyond the permitted premises. (30 points possible) 3.6 Describe all proposed staff odor training and system maintenance.(20 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: Criteria Narrative: 4.1 The Safety Plan shall be prepared and/or assessed by a professional fire prevention and suppression consultant. (50 points possible) Criteria Narrative: 3.7 Describe the waste management plan. (50 points possible) Written Accident/Incident Procedure Provided: Score 20 20 15 10 Procedures Address Multiple Accident/Incident Scenarios: Score 10 10 8 6 Total Number of Scenarios Described: Score Active Shooter Incident Described: Score 10 10 Robbery Incident Described: Score 10 10 4.2 Sub-Total:50 0 Evacuation Plan Provided: Score 20 20 15 10 Adequate Number of Evacuation Routes Identified: Score 20 20 15 10 Evacuation Route Distance to Public Right of Way: Score 10 10 8 6 4.3 Sub-Total:50 0 Location of Fire Suppression System Elements Identified: Score 10 10 Type of Fire Suppression System Elements Identified: Score 20 20 15 10 Location of Fire Extinguishers Identified: Score 10 10 Adequate Number of Fire Extinguisher Locations Identified: Score 10 10 8 6 4.4 Sub-Total:50 0 Written Procedure for Fire Emergencies Provided: Score 20 20 15 10 Written Procedure for Medical Emergencies Provided: Score 20 20 15 10 Cardiac Arrest Medical Emergency Described: Score 20 20 15 10 Gunshot Wound Medical Emergency Described: Score 20 20 15 10 Other Medical Emergency Conditions Described: Score 20 20 15 10 4.5 Sub-Total:100 0 Section 4 Total:300 0 SECTION 5: SECURITY PLAN 300 Points Possible for Section 5 Security Plan Prepared by Consultant: Score 10 10 Security Plan Assessed by Consultant(if prepared by, also give points for assessed by): Score 10 10 Security Plan Prepared for CCB Address (specific proposed location): Score 10 10 Security Plan includes Site Plan of Premise: Score 10 10 Security Plan includes Building Layout Plan: Score 10 10 5.1 Sub-Total:50 0 Data-write response in Evaluation Notes Column Criteria Narrative: Criteria Narrative: Criteria Narrative: Criteria Narrative: 4.4 Location of fire extinguishers and other fire suppression equipment. (50 points possible) 4.5 Describe procedures and training for all fire and medical emergencies.(100 points possible) 5.1 The Security Plan shall be prepared and/or assessed by a professional security consultant.(50 points possible) 4.3 Describe evacuation routes. (50 points possible) 4.2 Describe accident and incident reporting procedures. (50 points possible) Criteria Narrative: Premises (Security) Diagram Provided: Score 20 20 15 10 Diagram is drawn to correct scale: Score 5 5 Diagram provides required details for premise: Score 5 5 Diagram shows the location of all security cameras: Score 5 5 Descriptions of activities to be conducted in each area of the premise 5 5 Limited-Access Areas Clearly Marked: Score 5 5 Number and Location of All Security Cameras Identified: Score 5 5 5.2 Sub-Total:50 0 Intrusion Alarm and Monitoring System Identified: Score 15 15 Name and Contact Information for Monitoring Company Provided: Score 5 5 Total Points of Entry into Premise Identified: Score 5 5 All Points of Entry to be Alarmed Identified:5 5 Type of Alarm Identified (motion, infrared, glass break, etc.): Score 10 10 Backup Power Supply Identified: Score 10 10 5.3 Sub-Total:50 0 Written Cash-Handling Procedure Provided: Score 30 30 20 15 Dual-Custody is Practiced for all cash handling: Score 10 10 Video Surveillance Used to Monitor All Cash Handling: Score 20 20 Armored Car Service Used for Bank Deposits: Score 10 10 All Cash Deposited weekly with Bank: Score 10 10 Onsite Vault Provided to Secure Cash Prior to Bank Deposit: Score 20 20 5.4 Sub-Total:100 0 CCB will use onsite security guards: Score 10 10 5.2 Premises (Security) Diagram. In addition to diagrams submitted for other sections of the application, applicants are expected to submit a premises diagram (or site plan) which, focuses on the proposed security measures and how they relate to the overall business. (Pursuant to CCR Title 16, Division 42, §5006. Premises Diagram). 5.2.1 The diagram shall be accurate, dimensioned and to scale (minimum scale ¼"). The scale may be smaller if the proposed location exceeds more than a 1/2-acre parcel but must not be printed on larger than an 11" x 17" sheet of paper. (Blueprints and engineering site plans are not required at this point of the application process) 5.2.2 The diagram must be drawn to scale and clearly identify property boundaries, entrances, exits, interior partitions, walls, rooms, windows, and doorways. The activity in each room and the location of all cameras must be identified in the diagram. 5.2.4 Limited-access areas, defined as areas in which cannabis goods are stored or held and only accessible to permittees, or its employees or contractors and areas used for video surveillance monitoring and storage devices (Pursuant to CCR Title 16, Division 42, §5000 (m) Limited-Access Area and §5042 Limited-Access Area. 5.2.5 Number and location of all video surveillance cameras. (50 points possible) 5.4 Briefly describe cash handling procedures which covers day to day transactions with customers, vendors armor carrier vehicles and transporting it to the bank.(100 points possible) 5.5 Discuss whether the CCB will utilize the services of on-site security guards. Include in the discussion: (50 points possible) 5.5.1 Number of guards. 5.5.2 Hours guards will be on-site. 5.3 Identify intrusion alarm and monitoring system including the name and contact information for the monitoring company (if the company has been selected).(50 points possible) Criteria Narrative: Criteria Narrative: Criteria Narrative: 5.5.3 Locations at which they will be positioned. 5.5.4 Guards' roles and responsibilities. 5.2.3 Description of cannabis activity that will be conducted in each area of the premise. Commercial cannabis activities that must be identified on the diagram/site plan may include but are not limited to the following if applicable to the business operations; storage areas, batch sampling areas, loading/unloading of shipment areas, packaging and labeling, customer sales areas, training areas, employee break room areas, extractions, infusions, processing, and testing areas. All onsite guards will be licensed and bonded: Score 10 10 All onsite security guards will be licensed to carry firearms: Score 10 10 Onsite security guards will be on duty before CCB opens for business: Score 10 10 Onsite security guards will be on duty after CCB closes for business: Score 10 10 5.5 Sub-Total:50 0 Section 5 Total:300 0 Section 1: Business Plan Total Points:300 204 Section 2: Social Policy & Local Enterprise Total Points:400 242 Section 3: Neighborhood Compatibility Total Points:300 161 Section 4: Safety Plan Total Points:300 0 Section 5: Security Plan Total Points:300 0 Total Points Achieved:1600 607 PASS TOTAL SCORE Criteria Narrative: The Joint 559 BUSINESS PLAN 1 THE JOINT 559 Business Plan Prepared for THE CITY OF FRESNO The Joint 559 BUSINESS PLAN 2 Contents Outline THE JOINT 559’s (“The Joint”) Business Plan comprehensively discusses the structure of the organization with regard to its ownership, finances, philosophy and vison, composition of the board of directors, day-to-day operational procedures of the facility as it relates to the retail sales of cannabis product at our retail facility and through our cannabis delivery service. Also addressed are staffing of the facility, management functions, and duties in the chain of command from the CFO to the Shift Managers. In addition, THE JOINT fully expects to be in compliance with the Fresno Municipal Code the State of California’s cannabis laws. THE JOINT’s attorney can provide any supplemental information or any updates to this Business Plan to reflect the guidelines set forth in the Cannabis State Regulations released by the Bureau of Cannabis Control. Table of Contents INTRODUCTION ....................................................................................................................................... 4 MISSION STATEMENT ........................................................................................................................... 5 BUSINESS SUMMARY ............................................................................................................................. 5 Owner Qualifications (1.1) ........................................................................................................................ 6 Budget and Pro Forma (1.2 & 1.4) ........................................................................................................ 8 OPERATIONS OVERVIEW .................................................................................................................. 13 Hours of Operation, Opening and Closing Procedures, Customer Check-in Procedures, Customer ID Check Procedures and Day to Day Operations (Criteria Sections 1.5 & 1.6) ................................ 13 Location and Procedures for Receiving Deliveries during Business Hours (Section 1.7.1(c) and Section 1.6.1(b)) ......................................................................................................................................... 15 Estimated Number of Customers to be Served Per Hour/Day (1.6.1 (d)) ............................................ 16 Proposed Product Line (1.6.1 (e)) ............................................................................................................ 17 Estimate of Percentage Sales (1.6.1 (e)) ................................................................................................... 18 Community Impact & Service of Fresno Planning Goals ..................................................................... 18 Commercial Cannabis Location & Features .......................................................................................... 19 Compliance with Fresno Municipal Code .............................................................................................. 19 Point of Sale System -Reporting and Tracking of Product and of Gross Sales (Section 1.6.1(c)) . 23 Community Relations Representative ................................................................................................. 24 Inspection and Enforcement ................................................................................................................ 25 Miscellaneous Operating Procedures ...................................................................................................... 25 Signage and Notices .............................................................................................................................. 25 Minors .................................................................................................................................................... 26 Odor Control ......................................................................................................................................... 26 The Joint 559 BUSINESS PLAN 3 Display of Permit and City Business License ..................................................................................... 27 Background Check ................................................................................................................................ 27 Compliance With California State Cannabis Regulations .................................................................... 32 Notification of Criminal Acts, Civil Judgments, and Revocation of a Local License, Permit, or Other Authorization After Licensure ................................................................................................. 33 Notification of Theft, Loss, and Criminal Activity............................................................................. 33 Record Retention .................................................................................................................................. 34 Posting and Advertising ........................................................................................................................... 35 License. Posting Requirement .............................................................................................................. 35 Track and Trace Requirements ............................................................................................................... 41 Track and Trace System ...................................................................................................................... 41 Track and Trace Reporting ................................................................................................................. 42 Track and Trace System Reconciliation ............................................................................................. 44 Returns and Destruction .......................................................................................................................... 45 Returns Between Licensees .................................................................................................................. 45 Destruction of Cannabis Products Prior to Disposal ......................................................................... 45 Cannabis Waste Management ............................................................................................................. 45 Inventory Documentation .................................................................................................................... 46 Inventory Reconciliation ...................................................................................................................... 47 Record of Sales ...................................................................................................................................... 47 Schedule for Beginning Operations ......................................................................................................... 48 Description of Products and Services ...................................................................................................... 49 Marketing .................................................................................................................................................. 50 Day-To-Day Operational Methods & Procedures (Section 1.6) ........................................................... 50 Use of Local Vendors and Service Providers ...................................................................................... 50 Patient Verification Program --Tracking of Cannabis Transactions (Section 1.6.1 (a)) ................... 53 Criteria For Distribution (Cannabis Retail Delivery) Operations/Transportation Program (Section 1.7.1) ........................................................................................................................................................... 54 Overview of Delivery Process and Cash Handling (Section 1.7.1(b)) ............................................... 54 Delivery Driver Security and Safety (Sections 1.6.1(f) and Section 1.7.1(b)) ...................................... 57 Limits on Means of Transacting Cannabis ............................................................................................. 58 Inventory Control Program (Section 1.6.1(c)) ........................................................................................ 58 The Joint 559 BUSINESS PLAN 4 Packaging & Labeling Program (Section 1.7.1(d)) ................................................................................ 61 Packaging, Labelling and Signage (Section 1.7.1(d)) ............................................................................. 62 Quality Control & Salvage Program ....................................................................................................... 66 Environmental Sustainability .................................................................................................................. 66 Integrated Accounting and Transactions Systems ................................................................................. 70 Records Retention Program ..................................................................................................................... 71 Security Measures ..................................................................................................................................... 71 Fire Security- Prevention and Suppression ............................................................................................ 72 Insurance ............................................................................................................................................... 74 INTRODUCTION THE JOINT 559 (“THE JOINT”) is committed, from the outset, to be a positive contribution to the City of Fresno. THE JOINT’s sound, well-capitalized, professional, integrated business approach is designed to enhance the community in which its operations are conducted, and to avoid the negative impacts associated with lesser players in the field that degrade the quality of urban life, including: 1. Increased risk of crime, including violent armed robberies, burglaries; 2. Excessive traffic and noise; 3. Illegal, unregulated drug activity; 4. Organized crime & other gang activity, including money laundering; 5. Firearms violations; 6. The underreporting of crimes committed at cannabis establishments; 7. Diversion of cannabis to illegal and other unauthorized uses; 8. Adverse effects from over-consumption; 9. Disregard of environmental and other safety standards; 10. Contaminated medicine; 11. Offensive odors that create an attractive nuisance. THE JOINT avoids these pitfalls by the applying the following fundamentals to its approach: • Professionalism though an outstanding management team with impeccable credentials; • A business model with a local focus that emphasizes local hires and local purchases for the operations conducted in those cities; • A strong financial position, large capitalization budget and a plan for constructing a retail sales facility located at an existing structure that is zoned for that use; • Union Jobs, Union Pay and Union Benefits; The Joint 559 BUSINESS PLAN 5 • A Patient Services component focusing on a wide variety of needs and issues faced by persons seeking medical cannabis, including a drug abuse education and prevention curriculum; • A commitment to diversity in employment; • Over-compliance with the statutory and regulatory schemes; • Coordination with existing industry leaders to develop a program for establishing standards for dose, usage and nomenclature for each varietal of cannabis; • State of the Art Tracking and Security Systems that include a comprehensive inventory control system, integrated and monitored Break-in and Fire Alarm Systems and ongoing training of personnel in all aspects of medicinal cannabis and cannabusiness operations. MISSION STATEMENT THE JOINT is dedicated to enhancing the quality of life of individuals who suffer chronic pain, who are terminally ill, or who, due to disease, injury or other illness, can benefit from the use of medical cannabis supplied, pursuant to a medical recommendation from a properly licensed and qualified physician. THE JOINT is committed to doing so by providing a transparent, dignified and accountable model consistent with the highest standards for the medical and adult use cannabis industry. THE JOINT is committed to achieving diversity in its personnel and will actively seek a staff reflecting the diversity of Fresno and the surrounding areas. Because of its commitment to transparency and education, THE JOINT will offer ready access to information about its cannabis and cannabis products, and the methods by which it is produced, to anyone who inquires through its training, education and media infrastructure. THE JOINT will be an active participant with other community organizations to promote a positive and safe environment not only for users of cannabis, but for the neighbors of locations where it transacts business. It will participate with and promote industry and trade associations that advocate for sensible taxation and regulatory oversight mechanisms on both a regional and national level. Because it believes in the concept of personal accountability and in “paying it forward,” THE JOINT will earmark a portion of its net income for reinvestment into the community. THE JOINT will do so through support of the above identified programs and services, as well as other Community Benefits Programs discussed in more detail below. In sum, THE JOINT views itself as a community partner and asset that will contribute to the diversity and vitality of the community on both a short term and long-range basis. BUSINESS SUMMARY THE JOINT 559 is a for profit S-Corporation drawing its principal organizational membership from its founder and manager. The financial backing for THE JOINT comes from the principal – Angelica Garcia – who will all maintain a hands-on presence in THE JOINT’s operations and will draw on the expertise of experienced cannabis managers to staff key managerial functions. The Joint 559 BUSINESS PLAN 6 THE JOINT endeavors to make available to qualified patients and their caregivers the highest- grade medical cannabis and cannabis products, in a transparent, accountable manner that is strictly compliant with state law and local regulations. THE JOINT will be a dignified model for the retail sales of safe and affordable medical and adult use cannabis. THE JOINTS’s location will meet building and fire code requirements applicable to commercial facilities in general and will be further retrofitted to meet the requirements for medical and/or adult use cannabis retail facilities in Fresno. Consistent with its Mission Statement, THE JOINT will help enhance the quality of life for all Fresno residents, as well as enrich its commercial life, by providing single-earner union jobs that will reduce unemployment (and thus the crime associated with increased rates of unemployment) and provide local governments with additional tax receipts based on anticipated revenues that can be applied toward police, fire, health, or other community services budgets. THE JOINT’s business model is grounded on an objective, realistic financial analysis based on historical performance in similarly situated enterprises and current trends. THE JOINT will rely on a licensed CPA firm as well as licensed law firm, experienced in the cannabis trade to compile and regularly vet its financial and legal operations. In carrying out its business activities, THE JOINT will rely on state-of-the art inventory control, EVS and point-of-sale systems that correlate medical and/or adult use cannabis transactions with a continually updated confidential, HIPPA- compliant database as is also required by MAUCRSA. THE JOINT will endeavor, to the greatest extent practicable, to reinvest in the community by purchasing products used in its operations from local businesses and using the services of local vendors. THE JOINT’s employee education service programs will offer the latest information on the proper and effective uses of medial cannabis, the best ways to avoid misuse or overconsumption of the medicine, the most environmentally efficient methods for producing cannabis and cannabis products, and proven ways of identifying and avoiding diversionary activities. THE JOINT’s consultants and advisors are leaders in the field on such matters, and THE JOINT will draw on their leadership and expertise extensively. THE JOINT has in funding available from its principals to build-out its facility, make initial hires, and to procure products for distribution to qualified patients and/or adult use customers. (See Proof of Capitalization below) Based on estimated costs of startup, estimated operating costs, and costs of goods sold, THE JOINT anticipates breaking even on its investment after one year of operation, and running a net surplus thereafter averaging per year (not accounting for local and state taxes) by which it can then pay Officer salaries, ramp up management salaries to levels commensurate with other cannabis businesses, and make substantial contributions to the Community Benefits programs outlined below. Owner Qualifications (1.1) The Joint 559 BUSINESS PLAN 7 Angelica Garcia THE JOINT will bring to the City of Fresno a professional team with a history of success. Ms. Garcia is an experienced business owner, having owned and managed her own business in Fresno. Ms. Garcia is a motivated self-starter and valued business owner. In July 2018, Ms. Garcia opened her own business in Fresno, California, called Ohana Pantry. Ohana Pantry is a health food restaurant offering vegetarian and vegan culinary dishes prepared in the traditional Hawaiian style. Ms. Garcia started the business on her own and built the business from the ground up. Ms. Garcia was the head chef and also the manager of the business. Ms. Garcia has used Ohana Pantry and some of the business proceeds to support breast cancer awareness in and around Fresno County. At Ohana Pantry, Ms. Garcia has fulfilled key responsibilities, including supervising contractors, staffing, employee training, inventory management, and all fiduciary duties associated with opening and running a successful retail establishment. Ms. Garcia’s management experience has honed her keen business acumen and innate drive for success. Ohana Pantry employed 10 employees at the height of their business. Ms. Garcia closed the brick- and-mortar location in December 2019 but still runs the business at the Farmers Market in Fresno. Throughout her years of business experience, Ms. Garcia has gained experience in directing projects, which will prove a principal factor in the successful start-up and build-out of the sophisticated, customized, and efficiently designed cannabis retail business proposed in this application. Ms. Garcia’s business has a track record of providing customers and clients with high-quality customer service. As a result, she is confident that she will establish a compassionate and sustainable environment for medical and adult use cannabis services. With the wealth of experience, she has developed as a dedicated business owner at her fast-paced market locations. Ms. Garcia is confident she will be able to skillfully execute THE JOINT’s vision throughout the cannabis retail businesses’ day-to-day operations. Ms. Garcia also has some experience working for a cannabis retail business that will be very useful if she is awarded the license in Fresno. While working for a cannabis retailer, Ms. Garcia gained experience with the following: Refill Jars; Stock Shelves; Clear drawers; See venders and work with vendors; Bud Tending; Conduct monthly meetings; Oversee staff; Make schedules; Payroll; Process material; Make pre-rolls; Greeting and creating a relationship with the customers; Educating clients on cannabis the benefits it provides; Getting daily supplies; and Inventory. In her various roles at the cannabis dispensary, Ms. Garcia tackled the challenges of communicating with customers and responding to their needs, training staff, and managing compliance demands. Ms. Garcia’s primary strengths are her ability to connect with her employees and earn their trust in his leadership, skills which will serve her well as she begins her new cannabis business venture in the City of Fresno. Proof of Capitalization (Section 1.3) The Joint 559 BUSINESS PLAN 13 OPERATIONS OVERVIEW THE JOINT will be a cannabis retail sales facility with an ancillary delivery service that retails cannabis, cannabis extracts, edible products, tinctures, salves and other cannabis products. Hours of Operation, Opening and Closing Procedures, Customer Check-in Procedures, Customer ID Check Procedures and Day to Day Operations (Criteria Sections 1.5 & 1.6) Hours of Operation (Section 1.5) The proposed hours of operation for THE JOINT’s retail dispensary are from 6 a.m. to 10 pm, 7 days a week. Cannabis Deliveries will be performed from 7 a.m. to 9 p.m. Opening Procedures (Section 1.5) The General Manager (“GM”) or Assistant General Manager (“AGM”) will be in charge of opening the retail facility every day. Either the GM or AGM will arrive on location at 5:30 a.m., where they will be met by a security guard and escorted through the front entrance. They will deactivate the alarm system and turn on all necessary operating systems. The GM or AGM will unlock all locking storage cabinets containing cannabis for purchase and do a morning inventory check to make sure nothing was removed overnight. First shift employees will arrive between 5:45 and 5:50 a.m. and will clock in via our point-of-sale system, which also tracks employee’s hours and pay. Prior to opening, employees will sweep the floors and clean all areas of the shop the customers have access to. The security guard will open the doors for business at 9:00 a.m. everyday. The Joint 559 BUSINESS PLAN 14 Customer Check-In Procedures (Section 1.6.1(a)) When customers enter the retail facility, they approach the receptionist, who will verify their status as a qualified customer or patient. New patients will fill out our membership agreement, while recreational customers will have their age and identity verified and then directed to wait in the waiting room until it is their turn to enter the showroom. The check-in system is tied to our point of sale so that every visi t and purchase is tracked to the customer by name, date, type, and time. When the customer is called to enter the showroom, the receptionist will activate the electronic lock and the customer will be allowed to push the door open into the showroom. Upon entering the showroom, the customer will be greeted by a Budtender who will facilitate all purchases of cannabis products for the customer. All previous purchase histories will be easily accessible to both the Budtender and customer. Each Budtender on duty will be assigned to their own register in order to more easily track transactions and cash. All cannabis will be sold in child resistance packaging with proper warning labels, as required by state law, and placed in a locking exit bag before the customer leaves the showroom. All customers will receive a receipt identifying the items purchased along with all applicable local and state taxes. Closing Procedures (Section 1.5) At the end of every shift, the Budtender will remove their register tray and bring it back to the GM or AGM for accounting. The next shift Budtender will then retrieve a pre-counted bank from the manager on duty, replace the register tray, and log into that register. Employees will take all mandatory breaks as required by law and management will be vigilant in making sure that employees rights are not violated. The staff will begin closing procedures at 8:45 p.m. every day and will stop accepting all retail customers at 8:50 p.m. to ensure an on-time closure. At 9:00 p.m., all customers will be escorted out the front entrance and the security guard will lock the front doors. At this point, the budtenders will remove their register trays and bring them to the GM or AGM for accounting. The bud tenders will then do an inventory check to make sure the inventory in the point of sale matches the inventory on the showroom floor. Any discrepancies will be noted and reported to the management for further investigation. Once inventory is finished, the employees will clock out via the point of sale and leave the facility with a security guard escort. The GM or AGM makes all accounting entries and stores cash in safes for next day pick up via armored truck. He or she will be the last one out after they turn off all systems, lock all doors and engage the alarm system. With security guard presents, the GM or AGM will lock the security gates and dead bolts on the front door. The GM or AGM will be escorted to their car and will leave before the security guard. The security guard will only leave once the nightly patrol has arrived and parked their security vehicle in front of the location. This process will be in place and strictly adhered to everyday the location is open to the public. Name of Point-of-Sale System and Number of Point-of-Sale Locations (1.6.1(c)) The applicant intends to use industry-specific seed to sale tracking software called Treez, one of the most sophisticated cannabis tracking software programs on the market. It is utilized by a The Joint 559 BUSINESS PLAN 15 majority of northern California dispensaries, including industry leader Harborside Health Center in Oakland, California. Treez is compatible with the state reporting system METRC and is fully able to comply with all state and local reporting requirements. At this time, we plan to have two Point-of-Sale locations inside the showroom area. To the extent any employee will be using the system, employees will be trained given a specific passcode to access the system. Employees will be prohibited from sharing or disseminating their passcode to any third party, or from allowing another employee to access the inventory control system with their unique passcode. All cannabis will be kept in a safe, locked access-controlled area. Throughout the order fulfilment processes, inventory will be taken and documented daily, weekly and randomly. Employee theft and/or diversion of cannabis, regardless of the amount, will be grounds for immediate termination. All cannabis inventory including each day's beginning inventory, acquisitions, harvest, sales, disbursements, disposal of unusable cannabis, and ending inventory will be taken on a daily basis. All daily, weekly, and monthly inventory logs will be kept at the location for 5 years from the date of document and will be available to the department for review upon request. Other Inventory Purchased for Retail Sale Inventory purchased from a distributor for sale at THE JOINT’s dispensary will require certification and cannabinoid test results from the manufacturer. All received inventory will be visually inspected and tested to the extent required by California guidelines. Location and Procedures for Receiving Deliveries during Business Hours (Section 1.7.1(c) and Section 1.6.1(b)) Receiving Deliveries From Licensed Distributors (Section 1.6.1(b)) Based on our research, THE JOINT will expect to receive deliveries from licensed cannabis distributors one to three times per week. However, the precise frequency of deliveries will depend on customer demand as well as the capacity of distributors in the licensed marketplace. To streamline inventory management and decrease security risks during chain of custody transactions, THE JOINT will keep deliveries of wholesale product to a minimum. THE JOINT shall ensure that chain of custody transactions meet stringent standards and will update SOPs to comply with state and local requirements and best practices. THE JOINT will receive shipments of cannabis product only from state-licensed distributors and only at the rear entrance, which will not be publicly visible or accessible. Shipments will b e scheduled in advance; THE JOINT will not accept unscheduled or unexpected shipments. All shipments will be checked against a shipping manifest containing information on the identity of the distributor, expected time of delivery, and expected inventory. THE JOINT will implement the following security protocols when receiving wholesale product deliveries: The Joint 559 BUSINESS PLAN 16 • All transactions will occur under video surveillance and with at minimum two employees present, including a Manager and a Security Guard. • The distributor will be admitted to the premises only in the vicinity of the scheduled delivery time; at any other time, a THE JOINT employee will record the distributor’s information and require the distributor to leave. • The Security Guard will verify driver identification prior to entry. • If the distributor is authorized, the Security Guard will notify a Supervisor that the distributor is on-site and will record the time, date, distributor identity, and vehicle information. • A THE JOINT employee responsible for chain of custody transactions will verify the transportation and delivery manifest and accept the shipment. • Upon acceptance into THE JOINT’s chain of custody, all cannabis goods will be transported directly to the Secure Storage Room; cannabis products will remain under video surveillance at all times. • Access to the Secure Storage Room will be limited to managers, who will always require that a second THE JOINT employee accompany them into the Secure Storage Room. • THE JOINT will expect distributors to follow all of our security SOPs, and THE JOINT will adopt any additional security protocols required by the distributor. • Any business between THE JOINT and the distributor will occur in the Receiving Office. • After business is conducted between THE JOINT and the distributor, a Manager or Security Guard shall escort the distributor to the rear entrance/exit. Estimated Number of Customers to be Served Per Hour/Day (1.6.1 (d)) We have researched other licensed cannabis storefronts in such cities as Los Angeles, Long Beach and Santa Ana. Based on our research and the demographics of the Fresno and surrounding areas, we believe will see approximately 100 to 200 customers per day at our licensed storefront dispensary. The number of customers will vary per hour because the busiest times are before work, lunchtime and after work hours. During these busy times, we can expect to see about 10 to 20 customers per hour. During the off hours, we would expect to see approximately 5 to 10 customers per hour. These numbers should be attainable within a few months as it will take some time to gain traction and market share through our advertising and word of mouth. For our cannabis delivery portion of the business, we expect to make about 10 to 20 deliveries per day within the first few months and then plan to hire more drivers as the numbers rise. Our goal is to hire about 2 to 3 drivers within the first six months and hope that these drivers can make about 10 to 20 deliveries per day. These estimates are based in part on the lack of competing licensed The Joint 559 BUSINESS PLAN 17 cannabis storefronts within a 10-mile radius. We believe we will be able to draw customers from in and around Fresno County. Proposed Product Line (1.6.1 (e)) We have researched and investigated cannabis strains and products thoroughly. These are currently the strains of cannabis flower and cannabis products we would like to provide to our customers: The following is a spreadsheet containing the products that THE JOINT currently intends to carry in its inventory: Product Type Brand Description Type Flower Old Pal Forbidden Fruit Indica Flower High Supply Popcorn Sativa Flower Cream of the Crop Pomelo Indica Flower West Coast Cure TTS Indica Flower Henry’s Originals Lemon Jack Sativa Flower Humboldt’s Finest Motorbreath Hybrid Flower Old Pal Pineapple Hybrid Flower Tradecraft Farms Gelato Hybrid Flower Grizzly Farms Grizzly OG Hybrid Flower Humboldt’s Finest Gelato Hybrid Flower Old Pal Cosmic OG Indica Flower Old Pal Lemon Sour Diesel Indica Flower Team Elite Genetics MAC Hybrid Flower Team Elite Genetitcs Nova Cane Indica Flower Claybourne Super Lemon Haze Indica Flower Henry’s Originals Blueberry Headband Indica Flower King’s Garden Grapefruit Mimosa Sativa Flower King’s Garde Blue Dream Sativa Flower Triple Seven Black Jack Sativa Flower Up North Durban Sativa Gummies Kanha Lemon Gummies Edible Hybrid Gummies Kiva Confections Tart Cherry Mint Edible Hybrid Gummies Kiva Confections Pineapple Habanero Edible Hybrid Tincture Care By Design Sublingual Drops Tincture Edible Drink Care By Design CBD drink Drink Edible Hybrid Capsules Care By Design CBD soft gels Edible Hybrid Chocolates Kiva Confections Milk Chocolate Bar Edible Chocolates Platinum Vape Raspberry Lemon Edible Crunch bar Chocolates Kiva Confections Dark Chocolate Bar Edible Mints Kiva Confections Petra Moroccan Edible Mints Concentrates West Coast Cure Super Glue Oil Cartridge Indica Concentrates West Coast Cure Zkittles Oil Cartridge Indica Concentrates West Coast Cure Gas OG Oil Cartridge Indica The Joint 559 BUSINESS PLAN 18 Concentrates West Coast Cure Watermelon Sorbet Oil Cartridge Sativa Concentrates Platinum Vape Pineapple Jack Oil Cartridge Sativa Concentrates Care By Design CBD Vape Oil Cartridge CBD Concentrates Moxie Member Berry Oil Cartridge Hybrid Concentrates Stiiizy King Louie XIII Oil Cartridge Indica Concentrates Cresco Rocket Fuel Oil Cartridge Hybrid Concentrates Buddies Blue Punch Live Resin Pre Roll – Flower Grizzly Peak Sativa Bone Pre Roll Hybrid Pre Roll – Flower Henry’s Originals Ice Cream Cake Pre Roll Indica Pre Roll – Flower Source Quest 7 pack Pre Roll Sativa Shatter King’s Garden GMO Live Shatter Indica Budder King’s Garden Live Budder Indica Live Resin Arcturus Lemon Meringue Indica Live Resin Live Resin Arcturus Banjo Live Resin Indica Live Resin Shatter King’s Garden KGB Live Shatter Shatter Indica Budder Moxie GDP Badder Budder Indica Estimate of Percentage Sales (1.6.1 (e)) From our market research, we believe that 50% of the sales will be for cannabis flower. The remaining 50% of sales will likely be for manufactured cannabis goods. Of the manufactured cannabis good, we believe 50% will be for cannabis concentrates such as Oil Cartridges, Shatter, Live Resin, Was and Budder; 40% we be for cannabis edibles such as cookies and drinks; and the remaining 10% of manufactured products we believe will be split evenly between CBD products and tinctures. Community Impact & Service of Fresno Planning Goals THE JOINT’s operations support several overlapping policies serving the interests of Fresno and the adjacent communities. First, it advances the retail sales of safe, properly produced cannabis products authorized under MAUCRSA and the Fresno Municipal Code. For the same reason, it therefore advances the policies set forth under Fresno’s General Plan regarding the provision of a needed good and service to the residents of Fresno. Because THE JOINT will tailor its operations to reduce its carbon footprint and to the greatest extent practicable eliminate the generation of waste products, its operations serve the resource conservation goals promoted by those plans as well. In addition to these general and specific issues, THE JOINT’s business approach and operations will serve numerous other goals stated in the Fresno General Plan and similar city planning documents. THE JOINT will integrate its operations into the surrounding community in a sensitive and attractive manner by utilizing an existing structure and provide a community ombudsperson to address any complaints or concerns. The employment provided by THE JOINT – paid at and above living wage standards – will help provide economic stability to the neighborhood in which it is located and stimulus to Fresno as a whole. The proposed use will thus simultaneously help The Joint 559 BUSINESS PLAN 19 prevent a decline in and about the commercial center where it is located while bringing economic diversity to Fresno. The anticipated local tax revenues generated by THE JOINT’s operations will also contribute to the local government efforts to maintain and improve its public services such as parks and community centers. THE JOINT will also offer a slate of additional programs and services to help boost the community through services to aid and support our citizens. These ancillary services will focus partnerships with local non-profits and community support organizations, price supports to seniors, the terminally ill, low-income individuals and veterans, and an eviction defense program assisting persons who have lost their homes to foreclosure. Commercial Cannabis Location & Features THE JOINT is currently seeking out a commercial cannabis facility will not be located within a 1000-foot radius of any of the following: public or private school providing instruction in kindergarten or grades 1 through 12, church, park, day care center, residence, church or house of worship, alcohol or drug rehabilitation center, or a youth center or arcades that are in existence at this time. There will be no sensitive uses within 1000 feet of the location. THE JOINT will meet all applicable Fresno Municipal Code requirements as well. THE JOINT plans to be retrofitted to be as green as conditions permit and will have state of the art lighting and appliances that meet current Green Standards such as Energy Star requirements and, as much as is practicable for a retrofit, be LEED compliant. A muted color-scheme will spruce up the exterior which will present with a professional, medical and/or pharmaceutical appearance. Remodeling of the interior will be in a modern, professional style. Interior and exterior signage will be tasteful and avoid the use of cannabis-culture jargon or cannabis-culture imagery. The facility will be wholly ADA compliant. There will be sufficient exterior lighting available to deter loitering, vandalism and criminal activity, and the location will be otherwise secured against unauthorized entry. The facility will be equipped with an extensive video monitoring and recording system. The video security system consists cameras both inside and out, capturing images from every exterior vantage point and each interior room (other than bathrooms). THE JOINT’s exterior cameras will be monitored 24/7 and staff will be trained in security measures. A private security detail will patrol the premises and stand guard at the entrance to prevent unauthorized entry. Compliance with Fresno Municipal Code THE JOINT’s business operations, including delivery of cannabis, will only operate between the hours of 6 am and 10 pm.1 1 Fresno Municipal Code Section 9-3310(a)(1) The Joint 559 BUSINESS PLAN 20 Entrances shall be locked at all times with entry strictly controlled. A "buzz-in" electronic/mechanical entry system shall be utilized to limit access to and entry to the retailer to separate it from the reception/lobby area. Individuals must show their identification in order to gain access into the retailer.2 THE JOINT will only have that quantity of cannabis and cannabis products readily available to meet the daily demand for sale on-site in the retail sales area of the premises.3 All restroom facilities shall remain locked and under the control of management.4 Delivery vehicles shall be unmarked vehicles with no indication that the vehicles are transporting cannabis or cannabis products.5 Security Measures THE JOINT will submit a Security Plan during phase V, but offers this summary of security compliance. THE JOINT will implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at the cannabis retail business. Except as may otherwise be determined by the City Manager or his/her designee(s), these security measures shall include, but shall not be limited to, all of the following:(i)Premises contain a secured lobby/trap room, where a customer first enters and awaits verification by the cannabis retail business that the customer is a qualified to purchase cannabis.(ii)Premises contain only one entrance which members of the public enter and exit.(iii)Premises shall have a professionally installed, maintained, and monitored real-time alarm system by a security company licensed by the State of California Bureau of Security and Investigative Services.(iv)Premises shall have perimeter security and lighting, including motion sensors, as approved by the Chief of Police.(v)Prevent individuals from remaining on the premises and nearby vicinity if they are not engaging in an activity directly related to the permitted operations of the cannabis retail business.(vi)Establish limited access areas accessible only to authorized cannabis retail business personnel.(vii)All cannabis and cannabis products will be stored in a secured and locked vault or vault equivalent. All safes and vaults shall be compliant with Underwriter Laboratories burglary-resistant and fire-resistant standards. All cannabis and cannabis products shall be kept in a manner as to prevent diversion, theft, and loss.(viii) THE JOINT will install a fully functional color digital video camera system ("System") that meets the following requirements:1.The System must continuously record, store, be capable of playing back images and be fully functional at all times, including during any hours the business is closed. The System must be maintained in a secured location inside of the business.2.The System shall have the correct date and time stamped onto the image at all times.3.The camera storage capacity should be for at least ninety days. Such cameras must be capable of producing a 2 Fresno Municipal Code Section 9.3310(a)(4) 3 Fresno Municipal Code Section 9.3310(a)(5) 4 Fresno Municipal Code Section 9.3310(a)(6) 5 Fresno Municipal Code Section 9.3310(a)(7) The Joint 559 BUSINESS PLAN 21 retrievable and identifiable image than can be made a permanent record and that can be enlarged through projection or other means.4.Digital video recorder must be capable of storing at least ninety days of real-time activities.5.The System shall be capable of producing a CD or digital playback feature and may be provided to an authorized representative of the Fresno Police Department immediately, upon request for a criminal investigation and/or purposes of compliance only.6.The interior of the business must have at least one camera placed to focus on each cash register transaction to include the clerk as well as the customer waiting area. There should be at least one camera focused on the entrance and the camera view should clearly show an image of the color coded height tape installed on the inside of the door jamb.7.There shall be exterior cameras placed so as to record activities in the primary customer parking areas of their business. These cameras should be of sufficient quality to be able to identify persons and or vehicles utilizing the business parking lot.8.All interior cameras shall record in color.9.All exterior cameras shall record in color and have automatic low light switching capabilities to black and white. Exterior cameras should be in weatherproof enclosures and located in a manner that will prevent or reduce the possibility of vandalism.10.An inoperable System may be good cause for seeking revocation of the Permit.(ix)Sensors shall be installed to detect entry and exit from all secure areas, and shall be monitored in real time by a security company licensed by the State of California Bureau of Security and Investigative Services.(x)Panic buttons shall be installed with direct notification to a licensed security company dispatch, and shall be configured to immediately alert dispatch for that licensed security company.(xi)Any bars installed on the windows or the doors shall be installed only on the interior of the building.(xii)Armed security personnel shall be on-site during operating hours. If armed security personnel are not on-site when the cannabis retail business is closed, a verified response security patrol shall be utilized. Security personnel must be licensed by the State of California Bureau of Security and Investigative Services personnel and shall be subject to the prior review and approval of the City Manager or his/her designee(s), with such approval not to be unreasonably withheld. Firearms shall be carried by security personnel at all times that they are on duty, except as otherwise authorized by the Chief of Police.(xiii)Premises shall have the capability to remain secure during a power outage and shall ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.(xiv)Entrance areas are to be locked at all times and under the control of a designated responsible party that is either; (a) an employee of the cannabis retail business; or (b) a licensed security professional.(xv)The interior must have at least one camera placed to focus on each transaction, to include the clerk as well as the customer waiting area. At least one camera should be focused on the entrance, and the camera view should clearly show an image of a color-coded height tape installed on the inside of the door jamb.(xvi)An accounting software system in place to provide point of sale data as well as audit trails of both product and cash, where applicable.(xvii)Demonstrate to the Chief of Police, City Manager or their designees, compliance with the state's track and trace system for cannabis and cannabis products and all Cannabis regulations stated in the California Code of Regulations.(xviii)State of the art network security protocols in place to protect computer information and all digital data.(xix)Exterior vegetation shall be planted, altered, and maintained in a fashion that precludes its use as a hiding place for persons on the premises.(2)Each cannabis retail business shall identify a designated security The Joint 559 BUSINESS PLAN 22 representative/liaison to the city, who shall be reasonably available to meet with the City Manager or his/her designee(s) regarding any security related measures or and operati onal issues. The designated security representative/liaison shall, on behalf of the cannabis retail business, annually prepare and submit to the District Commander of the Fresno Police Department a security plan for approval and maintain a copy of the current security plan on the premises, to present to a peace officer immediately upon request that meets the following requirements:(i)Confirms that a designated Manager will be on duty during business hours and will be responsible for monitoring the behavior of patrons.(ii)Identifies all Managers of the cannabis retail business and their contact phone numbers.(iii)Confirms that first aid supplies and operational fire extinguishers are located in the service areas and the Manager's office.(iv)Confirms that burglar, fire, and panic alarms are operational and monitored by a licensed security company 24 hours a day, seven days a week, and provides contact information for each licensed security company.(v)Identify a sufficient number of licensed, interior and exterior security personnel who will monitor individuals inside and outside the premises, the parking lot, and any adjacent property under the business' control.(vi)Confirm that the licensed security personnel shall regularly monitor the parking lot and any adja cent property to ensure that these areas are: (a) free of individuals loitering or causing a disturbance; (b) are cleared of patrons and their vehicles one-half hour after closing.(3)Provide a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency. For delivery, include provisions relating to vehicle security and the protection of employees and product during loading and in transit.(4)Cooperate with the city whenever the City Manager or his/her designee(s) makes a request, without prior notice, to inspect or audit the effectiveness of any security plan or of any other requirement of this Article.(5)Notify the City Manager or his/her designee(s) within twenty- four (24) hours after discovering any of the following:(i)Significant discrepancies identified during inventory. The level of significance shall be determined by the regulations promulgated by the City Manager or his/her designee(s).(ii)Diversion, theft, loss, or any criminal activity involving the cannabis retail business or any agent or employee of the cannabis retail business.(iii)The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of the cannabis retail business.(iv)Any other breach of security.6 Marijuana Secured All marijuana and marijuana products will be kept in a secured manner during business and non - business hours. Consumable Marijuana Products If consumable marijuana products (including, but not limited to, lollipops, brownies, cookies, ice cream, ect.) are present on-site or offered for sale, then THE JOINT’s facility will secure any 6 Fresno Municipal Code Section 9.3310(b) The Joint 559 BUSINESS PLAN 23 approval from the County of Fresno Department of Health Services required for handling food products. Sales Taxes THE JOINT will may any and all applicable sales tax pursuant to the federal, state and local law. Point of Sale System -Reporting and Tracking of Product and of Gross Sales (Section 1.6.1(c)) THE JOINT will have in place a point-of-sale / management inventory tracking system called TREEZ, to track and report on all aspects of THE JOINT including, but not limited to, such matters as cannabis tracking, inventory data, gross sales (by weight and by sale) and other information which may be deemed necessary by the City. THE JOINT will ensure that such information is compatible with the City's record-keeping systems. In addition, the system will have the capability to produce historical transactional data for review. Furthermore, any system selected must be approved and authorized by the CFO or his/her designee(s) prior to being used by THE JOINT. All cannabis and cannabis products sold by THE JOINT will be cultivated, manufactured, and transported only by licensed facilities that maintain operations in full conformance with the State and local regulations. There will not be a physician located in or around THE JOINT at any time for the purpose of evaluating patients for the issuance of a cannabis recommendation or card where applicable. Prior to dispensing medicinal cannabis or medicinal cannabis products where applicable to any person, THE JOINT will obtain verification from the recommending physician that the person requesting medicinal cannabis or medicinal cannabis products is a qualified patient.7 Records and Recordkeeping (Section 1.6) The owners and operators of THE JOINT’s commercial cannabis business will maintain accurate books and records in an electronic format, detailing all of the revenues and expenses of the business, and all of its assets and liabilities. On no less than an annual basis (at or before the time of the renewal of THE JOINT permit issued pursuant to this Title), or at any time upon reasonable request of the City, THE JOINT will file a sworn statement detailing the number of sales by THE JOINT during the previous twelve-month period (or shorter period based upon the timing of the request), provided on a per-month basis. This statement will also include gross sales for each month, and all applicable taxes paid or due to be paid. On an annual basis, THE JOINT’s owners and operators will submit to the City a financial audit of the business’s operations conducted by an independent certified public accountant. Each permittee will submit to a regulatory compliance review and financial audit as determined by the City Manager or his/her designee(s). 7 Fresno Municipal Code Section 9.3310(a)(2) The Joint 559 BUSINESS PLAN 24 The owner and operator of THE JOINT’s commercial cannabis business will maintain a current register of the names and the contact information (including the name, address, and telephone number) of anyone owning or holding an interest in THE JOINT, and separately of all the officers, managers, employees, agents and volunteers currently employed or otherwise engaged by THE JOINT. The register required by this paragraph will be provided to the CFO or his/her designee(s) upon a reasonable request. Prior to state licensing, THE JOINT will maintain a record of all persons, patients, collectives and primary caregivers served by THE JOINT, for a period of no less than four (4) years. Once a state license is obtained, THE JOINT will maintain such records only to the extent permitted or required by MAUCRSA. THE JOINT will maintain an inventory control and reporting system that accurately documents the present location, amounts, and descriptions of all cannabis and cannabis products for all stages of the growing and production or manufacturing, laboratory testing and distribution processes until purchase as set forth in MAUCRSA. Subject to any restrictions under the Health Insurance Portability and Accountability Act (HIPPA) regulations, THE JOINT will allow Fresno officials to have access to the business's books, records, accounts, together with any other data or documents relevant to its permitted commercial cannabis activities, for the purpose of conducting an audit or examination. Books, records, accounts, and any and all relevant data or documents will be produced no later than twenty-four (24) hours after receipt of the City's request, unless otherwise stipulated by the City. The City may require the materials to be submitted in an electronic format that is compatible with the City's software and hardware. Community Relations Representative THE JOINT will provide the Chief of Police and/or City Manager or his/her designee(s) with the name, telephone number (both land line and mobile, if available) of an on-site employee or owner to whom emergency notice can be provided at any hour of the day. This person will be Angelica Garcia and she will be the community relations person to whom the city can provide notice if there are operating problems associated with the commercial marijuana facility or refer members of the public who may have any concerns or complaints regarding the operation of the cannabis retail. THE JOINT will establish and/or join a local association of Cannabis Businesses to at a minimum (1) communicate with the community in general and residents and other businesses closely adjacent to active Cannabis Businesses, (2) represent the Cannabis Businesses before the City Council and city staff, (4) seek for opportunities to support worthy individual and community needs, (5) create opportunities for the public to better understand the operations and contributions of the industry. THE JOINT will provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with THE JOINT can be provided. THE JOINT The Joint 559 BUSINESS PLAN 25 will also provide the above information to all businesses and residences located within one hundred (100) feet of THE JOINT. After the first year of operation, the owner, manager, and community relations representative from THE JOINT will meet with the Chief of Police and/or City Manager or his/her designee(s) when and as requested by the Chief of Police and/or City Manager or his/her designee(s). THE JOINT will develop a city approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. Inspection and Enforcement Fresno City's Police Department, Fire Department, Code Enforcement, Building Department, and Finance Department charged with enforcing the provisions of the Fresno Municipal Code, or any provision thereof, may enter the location of THE JOINT at any time, without notice, and inspect the location of THE JOINT as well as any recordings and records required to be maintained pursuant to this Title or under applicable provisions of State law. THE JOINT owners, operators and employees will not impede, obstruct, interfere with, or otherwise not allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Title or under state or local law. Further, THE JOINT owners, operators and employees will not conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by THE JOINT under this Title or under state or local law. The Fresno Chief of Police and/or City Manager or his/her designee(s) charged with enforcing the provisions of this Title may enter the location of THE JOINT at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. THE JOINT expressly allows any samples obtained by the Fresno to be logged, recorded, and maintained in accordance with established procedures by the Fresno Chief of Police and/or City Manager or his/her designee(s). Miscellaneous Operating Procedures THE JOINT will only be open for access to the public between the hours of 6:00 A.M. and 10:00 P.M. Cannabis shall not be smoked, ingested, used, or otherwise consumed on the premises of THE JOINT. No cannabis or cannabis products or graphics depicting cannabis or cannabis products will be visible from the exterior of THE JOINT’s property, or on any of the vehicles owned or used as part of THE JOINT. No outdoor storage of cannabis or cannabis products will occur at any time. Signage and Notices Business identification signage for THE JOINT will conform to the requirements of the Fresno Municipal Code, including, but not limited to, seeking the issuance of a City sign permit. No signs The Joint 559 BUSINESS PLAN 26 placed on the premises of THE JOINT will obstruct any entrance or exit to the building or any window. Each entrance to THE JOINT will be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to THE JOINT is prohibited except as provided in 5.05.310(c). Business identification signage will be limited to that needed for identification only, and will not contain any logos or information that identifies, advertises, or lists the services or the products offered. No commercial cannabis business will advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of THE JOINT or elsewhere including, but not limited to, the public right-of-way. Signage will not be directly illuminated, internally or externally. No banners, flags, billboards or other prohibited signs may be used at any time. In accordance with state law and regulations or as stipulated in the Fresno regulatory permit, holders of THE JOINT permit will agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit must be in compliance with all signage and advertising regulations contained in this Code and as may be adopted by Resolution of the City Council. This paragraph is not intended to place limitations on the ability of THE JOINT to advertise in other legally authorized forms, including on the internet, in magazines, or in other similar ways. Minors Persons under the age of twenty-one (21) years will not be allowed on the premises of THE JOINT and will not be allowed to serve as a driver for the mobile delivery service. It will be unlawful and a violation of this Title for any person to employ any person at THE JOINT who is not at least twenty-one (21) years of age. The entrance to THE JOINT will be clearly and legibly posted with a notice that no person under the age of twenty-one (21) years of age is permitted to enter upon the premises of THE JOINT. Odor Control Odor control devices and techniques will be incorporated in THE JOINT to ensure that odors from cannabis are not detectable off-site. THE JOINT will provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside THE JOINT that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of- way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as THE JOINT. As such, THE JOINT must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designee(s) determine is a more effective method or technology: (1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; The Joint 559 BUSINESS PLAN 27 (2) An air system that creates negative air pressure between THE JOINT's interior and exterior, so that the odors generated inside THE JOINT are not detectable on the outside of THE JOINT. Display of Permit and City Business License The original copy of the commercial cannabis business permit issued by the City pursuant to this Title and the City issued business license will be posted inside THE JOINT in a location readily- visible to the public. Background Check Pursuant to California Penal Code Sections 11105(b)(11) and 13300(b)(11), every person listed as an owner, manager, supervisor, employee or volunteer, of THE JOINT will submit fingerprints and other information deemed necessary by the Chief of Police and/or City Manager or his/her designee(s) for a background check by Fresno’s Police Department or other entity of the City’s choosing. Loitering The owners and operators of THE JOINT will prohibit loitering by persons outside the facility both on the premises and within fifty (50) feet of the premises. Permits and other Approvals Prior to the establishment of THE JOINT or the operation of any such business, THE JOINT will first obtain all applicable planning, zoning, building, and other applicable permits from the relevant governmental agency, including the Cannabis Oriented Business Regulatory Permit, which may be applicable to the zoning district in which such commercial cannabis business intends to establish and to operate. Age Verification (Section 1.6.1(a)) All THE JOINT owners and operators will be required to verify the age and the necessary documentation of each customer to ensure the customer is not under the age of eighteen (18) years. Further, in the retail sales area of the dispensary, THE JOINT will have on-site only that quantity of cannabis and cannabis products reasonably anticipated to meet the daily demand readily available for sale.8 At no time shall cannabis or cannabis products be donated or given away, unless it is for a valid purpose and pursuant to a program authorized in writing in advance by the City. Lastly, all restroom facilities shall remain locked and under the control of THE JOINT management. General Business Requirements 8 Fresno Municipal Code Section 9.3310(a)(3) The Joint 559 BUSINESS PLAN 28 No cannabis product will be smoked, eaten, or otherwise consumed or ingested outside of or within THE JOINT. Further, no person will cause or permit the sale, dispensing or consumption of alcoholic beverages or the sale of tobacco products on or within 50 feet of the premises of a cannabis business. THE JOINT will not operate its commercial cannabis activities in a building which contains a residence, or within a residential dwelling unit. Further, THE JOINT will not allow any of its commercial cannabis sales to occur at, on or within any real property that does not have a valid CUP approved for such use. Also, any transfer of product or currency will be identified in an individual security plan which is to be approved by the City. THE JOINT will allow unlimited and unrestricted property access to all City Fire, Police and Code personnel for inspections of commercial cannabis businesses and facilities during business hours. No cannabis or marijuana raw materials or products will be visible from the exterior of any structure, facility, or building in which THE JOINT cannabis activities are being conducted. THE JOINT will conduct all cannabis activities within a fully enclosed, secured and permanent structure (with accommodations in place at all times to allow for and facilitate unlimited/unrestricted access throughout the premises by emergency service personnel). THE JOINT will have designated locked storage on the dispensary property, identified and approved as a part of the security plan, for after-hours storage of medicinal and adult use recreational cannabis and cannabis infused products. All cannabis and cannabis infused products will be stored at the dispensary property in secured rooms that are completely enclosed or in a safe that is bolted to the floor (with accommodations in place at all times to allow for and facilitate unlimited/unrestricted access throughout the premises by emergency service personnel). All entrances into a commercial cannabis dispensary's building will include high visibility from the main front door exterior at all times with entry controlled by dispensary personnel. THE JOINT will also provide cannabis delivery services for its adult use customers and medical cannabis patients. All distribution of cannabis must be conducted within the enclosed building areas of the dispensary property between the seller and buyer or at the physical street address on file for the delivery customers. No person will smoke, ingest, or otherwise consume cannabis in any form on, or within 20 feet of, THE JOINT dispensary site. Also, no THE JOINT owner or employee will: 1) cause or permit the sale, distribution, or consumption of alcoholic beverages on the dispensary property; 2) hold or maintain a license from the State Division of Alcoholic Beverage Control for the sale of alcoholic beverages; or 3) operate a business on or adjacent to the dispensary property that sells alcoholic beverages. No alcoholic beverages will be allowed or stored on the dispensary property. The Joint 559 BUSINESS PLAN 29 The hours of operation for THE JOINT will be established by the City on a case by case basis as conditioned under the Conditional Use Permit (CUP) and THE JOINT will maintain strict hours of operation, only opening and closing upon the provided times. Lastly, commercial cannabis dispensary and delivery service operations will be consistent with all other applicable Federal, State and local requirements, including the Fresno Municipal Code Chapter 5. Building Size and Operation The size and height of a building used for THE JOINT’s commercial cannabis activity will be governed by the permitted development standards of the underlying zoning district. Further, all THE JOINT’s operations conducted and equipment used will be in compliance with all applicable state and local regulations, including all building, electrical and fire codes. Different types of commercial cannabis activities will not be located within the same building or structure without appropriate demising walls approved through the Community Development Department, Building Division and Fire Department, and each separate commercial cannabis activity will have distinct separate operating permits issued by the City and State, and CUP issued by the City. An approved automatic fire sprinkler system, designed in compliance with California Fire Code will be placed in THE JOINT’s building, if required by the City. Visibility All of THE JOINT’s commercial cannabis activities will take place within an enclosed structure. Further, from a public right of way, there will be no exterior evidence of commercial cannabis dispensing activities, except for any signage authorized as part of the CUP/License approval and separately issued signage permits. No raw materials, cannabis or cannabis infused products or marijuana plants will be visible from the exterior of the building. Exterior landscaping within ten (10) feet of THE JOINT’s licensed premises will be designed, installed and maintained free of locations which could reasonably be used by persons to conceal themselves and/or to enable undesirable activity. The design, and maintenance practices will give appropriate consideration to both natural and artificial illumination. Parking THE JOINT will comply with the parking requirements for commercial cannabis dispensary businesses, which is understood to be the same as parking requirements and restrictions for off- street parking that pertains to general retail establishments as described in the Fresno Municipal Code. THE JOINT will also have an additional two (2) secured parking spaces, identified on its plot plan and individual security plan, which will be located convenient to the required secured area of THE JOINT’s facility and to be used by secured transfer vehicles involved in the couriering or The Joint 559 BUSINESS PLAN 30 dispensing of cannabis materials products to and from the facility and for use by any secured vehicle commissioned for the transfer of currency to and from the facility. Lighting All THE JOINT lighting will comply with the provisions of Fresno Municipal Code, and stated in THE JOINT’s security plan, including fixture type, wattage illumination levels and shielding. Signs and Graphics THE JOINT will limit its signs and graphics to one wall-mounted business identification sign per licensed premises and will be in compliance with all other aspects of the City's sign regulations. THE JOINT signage will be limited to the identification of the licensee's business name and will contain no advertising of symbols, language, music, gestures, cartoon characters or other content elements known to appeal primarily to persons below the legal consumption age. With regards to the placement of advertising signs inside THE JOINT, such advertising signs will not advertise marijuana or marijuana products in a manner intended to encourage persons under the age of 21 years to consume marijuana or marijuana products. THE JOINT signage will not extend above the highest point of a parapet wall or the lowest point of a sloping roof. In instances where both criteria are present, the regulation resulting in the lowest reasonable height will govern. THE JOINT will post a sign, not less than 12 inches wide and 12 inches long, in a conspicuous place near each monitored building access location on the licensed premises, which sign will be easily visible to all customers and employees and composed of letters not less than one inch in height, stating “All Activities Monitored and Recorded by Video Camera” or “These Premises are Being Digitally Recorded,” or otherwise advising all persons entering the licensed premises that a video surveillance and camera recording system is in operation at the facility and recording all activity. THE JOINT will post a sign in a conspicuous place on the outside of the building, near the entry to the premises clearly and legibly posted indicating that smoking, ingesting, or consuming cannabis, marijuana, or alcohol on the licensed premises is prohibited. Site Security Security surveillance cameras and a video recording system will be installed at THE JOINT to monitor all doors into and out of the buildings on the site, the parking lot, loading areas, and all exterior sides of the property adjacent to the public rights of way. The cameras and recording system will be of adequate quality, color rendition, and resolution to allow the identification of any individual present on the site. The recording system will be capable of exporting the recorded video in standard MPEG formats to another common medium, such as a DVD or USB drive. The Joint 559 BUSINESS PLAN 31 THE JOINT will install and maintain professionally and centrally monitored fire, sprinkler, robbery, and burglar alarm systems and maintain them in good working condition. The alarm system will include a private security company that is required to respond to every alarm. Waste and Storage and Disposal Waste, storage, and disposal of all marijuana and cannabis products will meet all applicable state and local health regulations. Public Nuisance Standards Odor control devices and techniques will be incorporated in THE JOINT’s premises to ensure that odors from cannabis or marijuana are not detectable offsite. THE JOINT will provide a sufficient odor absorbing ventilation, exhaust or air filtration system so that odor generated inside the licensed premises that is distinctive to its operation is not detected outside of the premises, anywhere on adjacent property or public rights-of-way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building or other separate buildings on the licensed premises. All ventilating equipment will be directed to top story exhaust vents which face away from adjacent properties. THE JOINT will prohibit loitering by individuals outside the licensed premises, whether the loitering is occurring immediately outside the licensed premises facility or anywhere else on the property or parcel. THE JOINT will remove graffiti from the licensed premises within twenty-four (24) hours of its occurrence, or as requested by the City. THE JOINT’s commercial cannabis activity will not adversely affect the health, safety, or general welfare of the nearby residents by creating dust, glare, heat, noise, smoke, traffic, vibration, or other impacts, and will not be hazardous due to use or storage of materials, processes, products, or wastes. Unpermitted Activity at THE JOINT THE JOINT understands that there are strict rules for operation of a cannabis business in FRESNO and that certain activities could result in a revocation of license. All of the following will not be tolerated at THE JOINT by owners, operators, staff or customers and is forbidden: 1. Failure to comply with one or more conditions of approval of the Conditional Use Permit (CUP) and/or Cannabis Business License. 2. The land use permit was granted on the basis of false material or information, including written or oral communications, given willfully or negligently by the applicant. 3. The ownership or control of the commercial cannabis business has been transferred and/or sold, a land use permit issued pursuant to this Chapter has been transferred and/or sold, or the title of any parcels constituting the site on which the land use permit was The Joint 559 BUSINESS PLAN 32 originally issued has been transferred. THE JOINT understands that new ownership would require a secured cannabis business permit/license in order for a CUP to remain valid. 4. Any act or omission by an owner or licensee in violation of the provisions of the CCMC. 5. Any act or omission by an owner or licensee that results in the denial or revocation of the owner's or licensee's State license. 6. Any act or omission that results in the revocation of that owner's or licensee's commercial cannabis Business License Clearance under the Fresno Municipal Code. 7. An owner's or licensee's failure to take appropriate action to evict or otherwise remove persons conducting commercial cannabis activities who do not maintain the necessary permits or licenses in good standing with City or State. 8 Permit holder's conviction for possession or delivery of any form of illegal drugs. 9. City or any other governmental agencies discovery of any form of illegal drugs, other than cannabis products regulated by this ordinance, on the licensed premises at any time. 10. Conduct of the commercial cannabis activities in a manner that constitutes a nuisance where the owner or licensee has failed to comply with reasonable conditions to abate the nuisance (e.g., odor). Compliance With California State Cannabis Regulations Premises The California State Cannabis Regulations regarding cannabis retailers is found in the California Code of Regulations Title 16, Division 42 (referred to hereinafter as “CCR” or simply by the corresponding code section”). Pursuant to CCR Section 5025(a), THE JOINT will have a designated premise for THE JOINT's commercial cannabis activity, which THE JOINT will make available for inspection by the Bureau of Cannabis Control at any time. Pursuant Section 5026, THE JOINT’s premise is not within a 600-foot radius of a school providing instruction in kindergarten or any grades 1 through 12, day care center, or youth center that is in existence at the time the license is issued. Physical Modification of Premises Pursuant to § 5027(a) THE JOINT will not, without the prior written approval of the Bureau or the City, make a physical change, alteration, or modification of the licensed premises that materially or substantially alters the licensed premises or the use of the licensed premises from the premises diagram originally filed with the license application. THE JOINT whose premises is to be materially or substantially changed, modified, or altered is responsible for filing a request for premises modification with the Bureau. The Joint 559 BUSINESS PLAN 33 No Subletting of Premises THE JOINT will not sublet any area designated as the licensed premises for THE JOINT's commercial cannabis activity.9 Employee Age Restriction Pursuant to State Code § 5031, THE JOINT will not employ or retain persons under 21 years of age. Storage of Inventory THE JOINT will not store cannabis goods outdoors. Employee break rooms, changing facilities, and bathrooms shall be separated from all storage areas and each location where cannabis goods are stored will be separately licensed.10 Notification of Criminal Acts, Civil Judgments, and Revocation of a Local License, Permit, or Other Authorization After Licensure Pursuant to § 5035(a), THE JOINT shall ensure that the Bureau is notified in writing of a criminal conviction of any owner, either by mail or electronic mail, within 48 hours of the conviction. The written notification to the Bureau shall include the date of conviction, the court docket number, the name of the court in which THE JOINT was. convicted, and the specific offenses) for which THE JOINT was convicted. THE JOINT shall ensure that the Bureau is notified in writing of a civil penalty or judgment rendered against THE JOINT or any owner in their individual capacity, either by mail or electronic mail, within 48 hours of delivery of the verdict or entry of judgment, whichever is sooner. The written notification shall include the date of verdict or entry of judgment, the court docket number, the name of the court in which the matter was adjudicated, and a description of the civil penalty or judgment rendered against THE JOINT.11 (c) THE JOINT shall ensure that the Bureau is notified in writing of the revocation of a local license, permit, or other authorization, either by mail or electronic mail within 48 hours of receiving notice of the revocation. The written notification shall include the name pf the local agency involved, a written explanation of the proceeding or enforcement action, and the specific violations) that led to revocation.12 Notification of Theft, Loss, and Criminal Activity Pursuant to State Code § 5036(a), THE JOINT shall notify the Bureau and local law enforcement within 24 hours of discovery of any of the following situations: 9 § 5028 10 § 5029(a)-(c) 11 § 5035(b) 12 § 5035(c) The Joint 559 BUSINESS PLAN 34 (1) THE JOINT discovers a significant discrepancy, as defined in State Code § 5034 of this division, in its inventory. (2) THE JOINT discovers diversion, theft, loss, or any other criminal activity pertaining to the operations of THE JOINT. (3) THE JOINT discovers diversion, theft, loss, or any other criminal activity by an agent or employee of THE JOINT pertaining to the operations of THE JOINT. (4) THE JOINT discovers loss or unauthorized alteration of records related to cannabis goods, customers, or THE JOINT's employees or agents. (5) THE JOINT discovers any other breach of security. Notification to the Bureau by THE JOINT pursuant to subsection (a) shall be in writing and include the date and time of occurrence of the theft, loss, or criminal activity, the name of the local law enforcement agency that was notified, and a description of the incident including, where applicable, the items) that were taken or lost.13 Record Retention Pursuant to State Code § 5037(a), THE JOINT will keep and maintain the following records related to commercial cannabis activity for at least seven years: (1) Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under fide 18, California Code of Regulations, sections 1698 and 4901. (2) Personnel records, including each employee's full name, social security or individual tax payer identification number, date employment begins, and date of termination of employment if applicable. (3) Training records including, but not limited to, the content of the training provided and the names of the employees that received the training. (4) Contracts with other licensees regarding commercial cannabis activity. (5) Permits, licenses, and other local authorizations to conduct THE JOINT's commercial cannabis activity. (6) Security records, except for surveillance recordings required pursuant to section 5044 of this division. (7) Records relating to the composting or destruction of cannabis goods: (8) Documentation for data or information entered into the track and trace system. 13 § 5036(b) The Joint 559 BUSINESS PLAN 35 (9) All other documents prepared or executed by an owner or his employees or assignees in connection with the licensed commercial cannabis business. (b) The Bureau may make any examination of the books and records of any licensee as it deems necessary to perform its duties under the Act. (c) Records shall be kept in a manner that allows the records to be produced for the Bureau at the licensed premises in either hard copy or electronic form, whichever the Bureau requests. Disaster Relief Pursuant to State Code § 5038(a), If THE JOINT is unable to comply with any licensing requirements due to a disaster, THE JOINT will notify the Bureau of this inability to comply and request relief from the specific licensing requirement. If THE JOINT needs to move cannabis goods stored on the premises to another location immediately to prevent loss, theft, or degradation of the cannabis goods from the disaster, THE JOINT will only move the cannabis goods if the following conditions are met: (1) The cannabis goods are moved to a secure location where access to the cannabis goods can be restricted to THE JOINT, its employees, and contractors; (2) THE JOINT notifies the Bureau in writing that the cannabis goods have been moved and that THE JOINT is requesting relief from complying with specific licensing requirements pursuant to subsection (a) of this section within 24 hours of moving the cannabis goods; (3) THE JOINT agrees to grant the Bureau access to the location where the cannabis goods have been moved to for inspection; and (4) THE JOINT submits in writing to the Bureau within 10 business days of moving the cannabis goods a request for temporary relief that clearly indicates what statutory and regulatory sections relief is requested from, the tune period for which the relief is requested, and the reasons relief is needed for the specified amount of rime. Posting and Advertising License. Posting Requirement Pursuant to State Code § 5039, upon issuance of any license, THE JOINT shall prominently display the license on the licensed premises where it can be viewed by state and local agencies. If the licensed premises is open to the public, the license shall be displayed in an area that is within plain sight of the public. Advertising Placement The Joint 559 BUSINESS PLAN 36 Pursuant to § 5040(a). any advertising or marketing placed in broadcast, cable, radio, print, and digital communications shall only be displayed where at least 71.6 percent of the audience is reasonably expected to be 21 years of age or older, as determined by reliable up-to-date audience composition data. Upon request, THE JOINT shall provide to the Bureau audience composition data as required in subsection (a) of this section for advertising or marketing placed by THE JOINT. This information shall be provided to the Bureau within the time specified by the Bureau.14 If the Bureau determines that audience composition data for advertising or marketing provided by THE JOINT does not comply with the requirements of subsection (a) of this section, and THE JOINT fails to provide audience composition data to the Bureau within the time specified by the Bureau, THE JOINT shall remove the advertising or marketing placement in question.15 Age Confirmation in Advertising Pursuant to § 5041(a), prior to any advertising or marketing from THE JOINT involving direct, individualized communication or dialogue, THE JOINT shall use age affirmation to verify that the recipient is 21 years of age or older. For the purposes of this section, direct, individualized communication or dialogue may occur through any form of communication, including in-person, telephone, physical mail, or electronic.16 THE JOINT shall use a method of age affirmation before having a potential customer added to a mailing list, subscribe, or otherwise consent to receiving direct, individualized communication or dialogue controlled by THE JOINT.17 Access to Retailer Premises Pursuant to State Code § 5400(a)-(c), access to the licensed premises of an A-retailer licensee shall be limited to individuals who are at least 21 years of age. Access to the licensed premises of an M- retailer licensee shall be limited to individuals who are at least 18 years of age and have a valid physician's recommendation. Further, if a licensed premise is shared by an A-license and an M- license pursuant to section 5025 of this division, THE JOINT may allow persons identified in subsections (a) and (b) above to access the premises. Limited-Access Areas Pursuant to State Code § 5401(a), (b), THE JOINT will establish limited-access areas and permit only authorized individuals to enter the limited-access areas. Authorized individuals include individuals employed by THE JOINT as well as any outside vendors, contractors, or other individuals conducting business that requires access to the limited access area. 14 § 5040(b) 15 § 5040(c) 16 § 5041(b) 17 § 5041(d) The Joint 559 BUSINESS PLAN 37 An individual in the limited-access area who is not employed by the retailer shall be escorted by an employee of THE JOINT at all times within the limited-access area. An individual who enters the limited-access area shall be at least 21 years of age.18 THE JOINT shall maintain a log of all authorized individuals who are not employees of the retailer who enter the limited-access area. These logs shall be made available to the Bureau upon request. THE JOINT shall not receive consideration or compensation for permitting an individual to enter the limited-access area.19 Retail Area (Section 1.6.1(a)) Pursuant to State Code § 5402(a), individuals shall be granted access to the retail area to purchase cannabis goods only after the retailer or an employee of the retailer has verified that the individual is at least 21 years of age and has a valid proof of identification, or that the individual is at least 18 years of age and has valid proof of identification and a valid physician's recommendation for himself or herself or for a person for whom he or she is a primary caregiver. Acceptable forms of identification include the following: (1) A document issued by a federal, state, county, or municipal government, or a political subdivision or agency thereof, including, but not limited to, a valid motor vehicle operator's license, that contains the name, date of birth, physical description, and photo of the person; (2) A valid identification card issued to a member of the Armed Forces that includes a date of birth and a photo of the person; or (3) A valid passport issued by the United States or by a foreign government.20 A valid proof of identification must clearly indicate the age or birthdate of the individual. The retailer or at least one employee sha11 be physically present in the retail area at all times when individuals who are not employees of the retailer are in the retail area.21 Hours of Operation Pursuant to State Code § 5403(b) At any time the premise is not open for retail sales, the retailer shall ensure that: (1) The premise is securely locked with commercial-grade, nonresidential door locks; (2) The premise is equipped with an active alarm system, which shall be activated when the retailer or its employees are not on the licensed premises; and (3) Only employees and contractors of the retailer are allowed to enter the premises.22 18 § 5401(c),(d) 19 § 5401(e),(f) 20 § 5402(b) 21 § 5402(c)&(d) 22 § 5403(b) The Joint 559 BUSINESS PLAN 38 Retail Customers Pursuant to State Code § 5404(a), THE JOINT shall only sell adult-use cannabis goods to individuals who are at least 21 years of age, and medicinal cannabis goods to individuals at least 18 years of age who possess a valid physician's recommendation for himself or herself or a person for whom he or she is a primary caregiver. THE JOINT shall verify the identity and age, and physician's recommendation if applicable, of a customer as required by section 5402(a) of the State Code.23 Cannabis Goods Display Pursuant to State Code § 5405(a), cannabis goods for inspection and sale shall only be displayed in the retail area. THE JOINT shall not display cannabis goods in a place visible from outside the licensed premises.24 Cannabis goods may be removed from their packaging and placed in containers to allow for customer inspection. The containers shall not be readily accessible to customers without assistance of retailer personnel. A container will be provided to the customer by THE JOINT or its employees, who shall remain with the customer at all times that the container is being inspected by the customer.25 Cannabis goods removed from their packaging for display shall not be sold, shall not be consumed, and shall be destroyed pursuant to section 5054 of the State Code when the cannabis goods are no longer used for display.26 Cannabis Goods for Sale Pursuant to State Code § 5406, THE JOINT shall not make any cannabis goods available for sale or delivery to a customer unless: (a) The cannabis goods were received from a licensed distributor; (b) THE JOINT has verified that the cannabis goods have not exceeded their expiration or sell-by date if one is provided; and (c) In the case of manufactured cannabis products, the product complies with all requirements of Business and Professions Code section 26130 and all other relevant laws. Sale of Non-Cannabis Products on Premises Pursuant to State Code §5407, THE JOINT may sell non-cannabis products on its licensed premise if THE JOINT remains in compliance with any city, county, and state laws or regulations related 23 § 5404(b) 24 § 5405(b) 25 § 5405(c) 26 § 5405(d) The Joint 559 BUSINESS PLAN 39 to those products. This provision excludes alcohol and alcohol products and tobacco and tobacco products from sale at any licensed premises. Live Plants Pursuant to State Code § 5408(a), THE JOINT shall only sell live, immature cannabis plants and/or seeds if all of the following requirements are met. (1) The plant is not flowering; (2) The plant or seed was purchased from a nursery that holds a valid Type 4-Cultivation Nursery license under the Act; and (3) A label is affixed to the plant or package containing any seeds which states “This product has not been tested pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act.” (b) THE JOINT will not sell any other live plants. (c) THE JOINT shall not apply nor use any pesticide, nor cause any pesticide to be applied nor used, on live plants.27 Daily Limits Pursuant to State Code § 5409(a), THE JOINT shall not sell more than the following amounts to a single adult-use cannabis customer in a single day: (1) 28.5 grams of non-concentrated cannabis. (2) 8 grams of concentrated cannabis as defined in Business and Professions Code section 26001, including concentrated cannabis contained in cannabis products. (3) 6 immature cannabis plants. (b) THE JOINT shall not sell more than the following amounts to a single medicinal cannabis patient, or to a patient’s primary caregiver purchasing medicinal cannabis on behalf of the patient, in a single day: (1) 8 ounces of medicinal cannabis as defined in section 11362.77 of the Health and Safety Code. (2) 12 immature cannabis plants.28 (c) If a valid physician's recommendation contains a different amount than the limit listed in this section, the medicinal cannabis customer may purchase an amount of medicinal cannabis consistent with the patient's needs as recommended by a physician. Customer Return of Cannabis Goods 27 § 5408(b),(c) 28 § 5409(b) The Joint 559 BUSINESS PLAN 40 Pursuant to State Code § 5410. (a) For the purposes of this section, "customer return" means a customer's return of cannabis goods that were purchased from a retailer, back to the retailer the cannabis goods were purchased from. THE JOINT may accept customer returns of cannabis goods that were previously sold to a customer. However, THE JOINT shall not resell cannabis goods that have been returned. Further, THE JOINT will treat any cannabis goods abandoned on the retailer premises as a customer return.29 THE JOINT will destroy all cannabis goods that have been returned to THE JOINT by a customer, in accordance with sections 5054 and 5055 of this division.30 Free Cannabis Goods Pursuant to State Code § 5411(a), THE JOINT will not provide free cannabis goods to any person. Further, THE JOINT will not allow individuals who are not employed by the retailer to provide free cannabis goods to any person on the licensed premises. Notwithstanding subsection (a) of the State Code, in order to provide access to medicinal cannabis patients who have difficulty accessing medicinal cannabis goods, if THE JOINT who holds a Type 10-Retailer M-license, a Type 9-Retailer Non-storefront-M license, or a Type 12 Microbusiness M-license that allows for retail sales, THE JOINT may provide free medicinal cannabis goods if all of the following criteria are met: (1) Free cannabis goods are provided only to a medicinal cannabis patient or primary caregiver for the patient in possession of a valid identification card issued under Section 11362.71 of the Health and Safety Code. (2) The cannabis goods comply with all applicable laboratory testing requirements under this division. (3) Prior to being provided to the patient or primary caregiver, the cannabis goods have been properly recorded in the track and trace system as belonging to the retailer. (4) The cannabis goods shall not leave THE JOINT’s licensed premises unless placed in an opaque package as required for purchased cannabis goods under Business and Professions Code section 26070.1. (5) The cannabis goods shall be applied toward the daily purchase limit for a medicinal cannabis customer pursuant to section 5409 of the State Code. (6) The event shall be properly recorded in THE JOINT’s inventory records and the track and trace system.31 29 § 5409(c),(d) 30 § 5409(e) 31 § 5411(b) The Joint 559 BUSINESS PLAN 41 In addition to the provision of free cannabis goods in § 5411(b), THE JOINT may donate cannabis goods and the use of equipment in compliance with any compassionate use, equality, or other similar program administered by a local jurisdiction.32 Packaging and Labeling Pursuant to State Code § 5412(a)&(b), THE JOINT shall not accept, possess, or sell cannabis goods that are not packaged as they will be sold at final sale, in compliance with this division. Further, THE JOINT shall not package or label cannabis goods. Exit Packaging Pursuant to State Code § 5413, cannabis goods purchased by a customer shall not leave THE JOINT’s premises unless the goods are placed in an opaque exit package. Receiving Shipments of Inventory Pursuant to State Code § 5422(a), THE JOINT shall receive a shipment of cannabis goods only from a distributor. THE JOINT shall accept shipments of cannabis goods only between the hours of 6:00 a.m. Pacific Time and 10:00 p.m. Pacific Tune. During business hours, shipments of cannabis goods shall not enter the premises through an entrance or exit that is available for use by the public.33 Track and Trace Requirements Track and Trace System Pursuant to State Code § 5048(a), THE JOINT shall create and maintain an active and functional account within the track and trace system prior to engaging in any commercial cannabis activity, including the purchase, sale, test, packaging, transfer, transport, return, destruction, or disposal, of any cannabis goods. THE JOINT will utilize “Indica Online” software for its track and trace. THE JOINT shall designate one individual owner as the track and trace system account manager. The account manager may authorize additional owners or employees as track and trace system users and shall ensure that each user is trained on the track and trace system prior to its access or use: (1) The account manager shall attend and successfully complete all required track and trace system training, including any orientation and continuing education. (2) If the account manager did not complete the required track and trace system training prior to receiving their annual license, the account manager shall sign up for and complete state mandated training, as prescribed by the Bureau, within five business days of license issuance.34 32 § 5411(c) 33 § 5422(b),(c) 34 § 5048(b) The Joint 559 BUSINESS PLAN 42 The account manager and each user shall be assigned a unique log-on, consisting of a username and password. The account manager or each user accessing the track and trace system shall only do so under his or her assigned log-on, and shall not use or access log-on of any other individual. No account manager or user shall share or transfer his or her log-on, username, or password, to be used by any other individual for any reason. The account manager shall maintain a complete, accurate, and up-to-date list of all track and trace system users, consisting of their full names and usernames.35 THE JOINT shall monitor all compliance notifications from the track and trace system, and timely resolve the issues detailed in the compliance notification. THE JOINT shall keep a record, independent of the track and trace system, of all compliance notifications received from the track and trace system, and how and when compliance was achieved. If THE JOINT is unable to resolve a compliance notification within three business days of receiving the notification, THE JOINT shall notify the Bureau immediately.36 Track and Trace Reporting Pursuant to State Code § 5049(a), THE JOINT shall record in the track and trace system all commercial cannabis activity, including: (1) Packaging of cannabis goods. (2) Sale of cannabis goods. (3) Transportation of cannabis goods to THE JOINT. (4) Receipt of cannabis goods. (5) Return of cannabis foods. (6) Destruction and disposal of cannabis goods. (7) Laboratory testing and results. (8) Any other activity as required pursuant to this division, or by any other licensing authority. The following information will be recorded for each activity entered in the track and trace system: (1) Name and type of the cannabis goods. (2) Unique identifier of the cannabis goods. (3) Amount of the cannabis goods, by weight or count. (4) Date and time of the activity or transaction. 35 § 5048(d)-(e) 36 § 5048(f) The Joint 559 BUSINESS PLAN 43 (5) Name and license number of other licensees involved in the activity or transaction. (6) If the cannabis goods are being transported: (A) THE JOINT shall transport pursuant to a shipping manifest generated through the track and trace system, that includes items (1) through (5) of this subsection, as well as (i) The name, license number, and premises address of the originating licensee. (ii) The name, license number, and premises address of THE JOINT transporting the cannabis goods. (iii) The name; license number, and premises address of the destination licensee receiving the cannabis goods into inventory or storage. (iv) The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premise, if any. (v) Arrival date and estimated time of arrival at each licensed premise. (vi) Driver license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for transport. (B) Upon pick-up or receipt of cannabis goods for transport, storage, or inv entory, THE JOINT shall ensure that the cannabis goods received are as described in the shipping manifest and shall record acceptance and acknowledgment of the cannabis goods in the track and trace system. (C) If there are any discrepancies between the type or quantity specified in the shipping manifest and the. type or quantity received by THE JOINT, the licensee shall record. and document the discrepancy in the track and trace system and in any relevant business record. (7) If cannabis goods are being destroyed or disposed of, THE JOINT shall record in the track and trace system the following additional information: (A) The name of the employee performing the destruction or disposal. (B) The reason for destruction or disposal. (C) The name of the entity being used to collect and process cannabis waste, pursuant to section 5055 of the State Code. The Joint 559 BUSINESS PLAN 44 (8) Description for any adjustments made in the track and trace system, including, but not limited to: (A) Spoilage or fouling of the cannabis goods. (B) Any event resulting in exposure or compromise of the cannabis goods. (9) Any other information as required pursuant to this division, or by any other applicable licensing authorities.37 All transactions will be entered into the track and trace system within 24 hours of occurrence. Licensees shall only enter and record complete and accurate information into the Crack and trace system and shall correct any known errors entered into the track and trace system immediately upon discovery.38 Loss of Access Pursuant to State Code § 5050(a), if at any point THE JOINT loses access to the track and trace system for any reason, THE JOINT shall prepare and maintain comprehensive records detailing all commercial cannabis activities that were. conducted during the loss of access. THE JOINT shall both document and notify the Bureau immediately: (1) When access to the system is lost; (2) When access to the system is restored; and (3) The cause for the loss of access.39 Once access is restored, all commercial cannabis activity that occurred during the loss of access shall be entered into the track and trace system within three business days of access being restored. THE JOINT shall not transport, transfer or deliver any cannabis goods until such time as access is restored and all information recorded in the track and trace system.40 Track and Trace System Reconciliation Pursuant to State Code § 5051(a), in addition to other inventory reconciliation requirements under this division, THE JOINT shall reconcile the physical inventory of cannabis goods at the licensed premises with the records in the track and trace database at least once every 14 days. (b) if THE JOINT finds a discrepancy between its physical inventory and the track and trace system database, THE JOINT shall conduct an audit, and notify the Bureau of any reportable activity pursuant to section 5036.41 37 § 5049(b) 38 § 5049(c)-(d) 39 § 5050(b) 40 § 5050(c)-(d) 41 § 5051(b) The Joint 559 BUSINESS PLAN 45 Temporary Licenses; Licensees in Operation at Time of Licensure If THE JOINT operates under a temporary license, THE JOINT will track and record all cannabis commercial activities and information required pursuant to this division and any other provision of law, at a minimum, on paper receipts, invoices, or manifests. (c) Any commercial cannabis activity conducted between annual license holders shall be recorded in the track and trace system. (d)'Any licensee in operation at the time the annual license is issued shall enter all inventory into the track and trace system no later than 30 days after the track and trace system account manager attends the training required pursuant to section 5048. Returns and Destruction Returns Between Licensees Pursuant to State Code § 5053. (a) If THE JOINT discovers that a manufactured cannabis good that was purchased from another licensee is defective, the purchasing licensee may return the cannabis good to the selling licensee only in exchange for anon-defective. version of the same type of cannabis good or in exchange for a cannabis good. of equal value. Except as provided in subsection (a) of this section, THE JOINT shall not return cannabis goods purchased from another licensee.42 Destruction of Cannabis Products Prior to Disposal Pursuant to State Code § 5054, THE JOINT will not dispose of any cannabis goods as cannabis waste pursuant to unless the cannabis goods have been removed from their packaging and rendered unrecognizable and unusable. Cannabis Waste Management Pursuant to State Code § 5055(a), THE JOINT will not sell cannabis waste. THE JOINT shall comply with all applicable waste management laws including, but not limited to, Division 30 of the Public Resources Code. THE JOINT will dispose of cannabis waste in a secured waste receptacle or in a secured area on the licensed premises. For the purposes of this section, "secure waste receptacle" or "secured area" means that physical access to the receptacle or area is restricted to THE JOINT and its employees and the local agency, or waste hauler franchised or contracted by a local agency. Public access to the designated receptacle or area is prohibited.43 If THE JOINT is composting cannabis waste on the licensed premises, THE JOINT shall do so in compliance with title 14, California Code of Regulations, chapter 31 (commencing with Section 17850). If a local agency, or waste hauler permitted by a local agency, is being used to collect and process cannabis waste, THE JOINT shall do all the following: 42 § 5053(b) 43 § 5055(b),(c) The Joint 559 BUSINESS PLAN 46 (1) Provide the Bureau with the following information for the local agency, or waste hauler franchised or contracted by a local agency, who will collect and process THE JOINT's cannabis waste; (A) Name of local agency providing waste hauling services, if applicable; (B) Company name of the local agency franchised or contracted or permitted waste hauler, if applicable; (C) Company business address; and (D) Name of the primary contact person at the company and contact person's phone number. (2) Obtain documentation from the entity hauling the waste that indicates the date and time of each collection of cannabis waste at the licensed premises; and (3) Obtain a copy of the certified weight ticket or other documentation prepared by the entity hauling the waste confirming receipt of the cannabis waste at one, or more, of the following solid waste facilities: (A) A manned, fully permitted. solid waste landfill or transformation facility; (B) A manned, fully permitted composting facility or manned composting operation; (C) A manned, fully permitted in-vessel digestion facility or manned in-vessel digestion operation; (D) A manned, fully permitted transfer/processing facility or manned transfer/processing operation; or (E) A manned, fully permitted chip and grind operation.44 If THE JOINT is self-hauling cannabis waste to one; or more, of the solid waste facilities in subsection (e)(3) of this section, THE JOINT shall obtain for each delivery of cannabis waste by THE JOINT a copy of a certified weight ticket or receipt documenting delivery from the solid waste facility. Only THE JOINT or its employees may transport self-hauled cannabis waste.45 Inventory Documentation Pursuant to State Code §5423, THE JOINT shall provide the Bureau with the record of inventory upon request. THE JOINT shall keep a record of the following information for all cannabis goods THE JOINT has in its inventory: (a) A description of each item such that the cannabis goods can easily be identified; 44 § 5055(d),(e) 45 § 5055(f) The Joint 559 BUSINESS PLAN 47 (b) An accurate measurement of the quantity of the item; (c) The date and time the cannabis goods were received by THE JOINT; (d) The sell-by or expiration date provided on the package of cannabis goods, if any; (e) The name and license number of the distributor that delivered the cannabis goods to THE JOINT; (f) The name and license number of the distributor that provided the cannabis goods to THE JOINT; and (g) The price THE JOINT paid for the cannabis goods, including tares, delivery costs, and any other costs. Inventory Reconciliation Pursuant to State Code § 5424(a), THE JOINT shall perform a reconciliation of its inventory at least once every 14 days. THE JOINT shall verify that THE JOINT’s physical inventory matches THE JOINT’s records pertaining to inventory. The result of inventory reconciliation shall be retained in THE JOINT’s records and shall be made available to the Bureau upon request.46 If THE JOINT identifies any evidence of theft, diversion, or loss, THE JOINT shall notify the Bureau and law enforcement pursuant to State Code § 5036. If a significant discrepancy as defined in section 5034 of this division is discovered between a retailer's physical inventory and the retailer's inventory records, the retailer shall notify the Bureau and law enforcement pursuant to section 5036 of this division.47 Record of Sales Pursuant to State Code § 5425(a), THE JOINT shall maintain an accurate record of sale for every sale made to a customer. A record of a medicinal cannabis goods sale shall contain the following information: (1) The first name and employee number of THE JOINT employee who processed the sale; (2) The first name of the customer and THE JOINT-assigned customer number for the person who made the purchase; (3) The date and time of the transaction; (4) A list of all the cannabis goods purchased, including the quantity purchased; and (5) The total amount paid for the sale including the individual prices paid for each cannabis good purchased and any amounts paid for taxes.48 46 § 5424(b),(c) 47 § 5424(d),(e) 48 § 5425(b) The Joint 559 BUSINESS PLAN 48 Records Pursuant to State Code § 5426, all retailer-specific records shall be maintained in accordance with § 5037 of the State Code. Attire and Conduct Pursuant to State Code § 5806. (a) No license shall allow the following: (1) Employment or use of any person in the sale or service of cannabis goods in or upon the licensed premises while such person is unclothed or in such attire, costume, or clothing as to expose to view any portion of the male or female breast below the top of the areola or of any portion of the pubic hair, anus, cleft of the buttocks, vulva, or genitals. (2) Employment or use of the services of any host or other person to mingle with the patrons while such hostess or other person is unclothed or in such attire, costume, or clothing as described in subsection (a)(1) of this sectioi2. (3) Encouraging or permitting any person on the licensed premises to touch, caress, or fondle the breasts, buttocks, anus, or genitals of any other person. (4) Permitting any employee or person to wear or use any device or covering, exposed to view, which simulates the breast, genitals, anus, pubic hair, or any portion thereof. Schedule for Beginning Operations THE JOINT plans to be open for business within 3 to 6 months of obtaining the license from Fresno. THE JOINT knows that the permitting process can be a long process as the city seeks to ensure that all building codes and other laws are being strictly adhered to. Given our experience in other business ventures, we believe that the buildout of our property will take approximately one months, however we are prepared to wait for the city to conduct all inspections and approvals. During the buildout phase, we will begin to interview employees, hire them and begin their training so that they are ready to start working once the business is open. During this time, we will also begin to reach out to local cannabis distributors, cultivators and manufacturers in an effort to begin to build our inventory pipeline. THE JOINT knows that in order to be ready to open with an expansive product menu, we will need to immediately begin to forge relationships with other cannabis licensees that can supply our retail facility with the appropriate inventory. Given that cannabis harvest times are usually at least 2 to 4 months, we will need to begin to secure inventory months before we open so that we are ready ahead of time. We believe that our other retail experience will help us to be adequately prepared. The site plans submitted with our application show that there are not many improvements that need to be completed that are not typical of any other retail type facility. We believe that all construction The Joint 559 BUSINESS PLAN 49 and improvements identified can be completed in 3 to 6 months, including time to obtain building construction permits and any required inspections. Description of Products and Services THE JOINT will obtain a wide variety of the highest quality medicinal cannabis products available. Different varieties of medical cannabis can provide different palliative effects, from pain relief to appetite stimulus to stress relief and even to metabolic controls of things such as diabetes. Cannabis also comes in different strengths (a range of concentrations of the active ingredients). THE JOINT will offer a sufficient variety of medical cannabis to provide relief from many known ailments, and will keep abreast of the ongoing research by industry professionals to further refine the product line it dispenses from a medical standpoint and to obtain further varietals to address medical conditions for which its use is authorized under California law. THE JOINT will offer topical and edible cannabis products that are non-psychoactive and high in CBD content, plus educational materials and patient support programs about the different types of medical cannabis available and the different means for ingesting cannabis. THE JOINT will produce External and Internal salves, tinctures, balms and creams, as well as products developed specifically to treat seizure disorders and metabolic disorders such as diabetes and obesity. Medical and adult use cannabis products obtained by THE JOINT will be subjected to randomized testing by a qualified Testing Laboratory, and the results of that testing will be stated in accurate labeling affixed to all medical cannabis products. This information will be used to inform purchase decisions. Following release by the Testing Laboratory, the product will be weighed, packaged and labeled for final sale if not previously packaged by a designated supplier. This is also part of THE JOINT’s inventory control process and procedures. Released cannabis will be placed in sealed, opaque packaging onsite. All packaging will be security-sealed in a child-proof container in accordance to common pharmaceutical practices. Personnel handling the medical cannabis will be required to adhere to all common pharmaceutical practice for sanitary medical products. All operations will be policy-and-procedure-driven to assure consistency of results. THE JOINT will endeavor to acquire and sell cannabis products in compliance with MAUCRSA Regulations for Cannabis businesses. THE JOINT will also endeavor to obtain, to the extent practicable, cannabis grown pursuant to ISO 2000 series certification standards and FDA “organic” standards. This means avoiding production with the use of herbicides, pesticides, artificial growth regulators or non-organic soil amendments. In the event that producing 100% organic cannabis is unpracticable or infeasible, THE JOINT will provide patients with an advisory identifying all herbicides, pesticides and other non-organic amendments used in it’s the cultivation and/or production of cannabis products sold by THE JOINT. The Joint 559 BUSINESS PLAN 50 Marketing THE JOINT will apply a soft approach to marketing and promotions. THE JOINT will work largely from word-of-mouth referrals from industry professionals and participants in the field with which THE JOINT has established relationships, and through discrete advertisements placed in trade publications. THE JOINT’s tasteful signage will be compliance with Fresno requirements and for any signs or logos that THE JOINT may elect to use, it will first seek approval of appropriate Fresno government agency. In any event, marketing materials will avoid counter culture jargon in favor of descriptions of the benefits and cannabaniod/terpinoid profile of the product. Day-To-Day Operational Methods & Procedures (Section 1.6) This section is intended to be an overview of the standard daily operation policies and procedures of THE JOINT. Use of Local Vendors and Service Providers It is the policy of THE JOINT to rely on local vendors whenever possible, unless a demonstrably more suitable vendor is based elsewhere. Accordingly, THE JOINT will seek to obtain all lighting, stock, labels, packaging materials, utensils washing equipment, food handling equipment, and supplies from suppliers located within Fresno or surrounding areas, where possible. In addition, the retail facility’s professionally certified consultants and advisors will be primarily drawn from residents and/or business owners from Fresno or surrounding areas within Fresno County. General Procedures, Practices and Guidelines—Basic Standards THE JOINT’s cannabis business will implement the following basic operating standards, plus more specific standards as discussed elsewhere in this document and in THE JOINT’s Employee Handbook & Operations Manual: 1. Information will be posted in a conspicuous place at or near the primary secured entrance/lobby to the premises, as follows: a. A copy of the retailers’ registration, business license and any other authorization to conduct business; b. The facility’s hours of operation; and c. The name and telephone number of the facility’s Ombudsperson who is authorized to receive and respond to complaints or concerns about its operations; 2. The flow of components, product containers, closures, labels, in-process materials and cannabis will be designed to prevent contamination; 3. Operations will be performed within specifically defined areas of adequate size, and which does not emit an odor that is detectable from outside the facility; 4. There will be separate or defined areas or such other control systems for the operations as are necessary to prevent contamination or miscalculation or misuse of any component in any step of the control, packaging, labeling or distribution of cannabis during the course of the following procedures: The Joint 559 BUSINESS PLAN 51 a. Receipt, identification, storage and withholding from use of components, product containers, closures and labels, pending the appropriate sampling, testing or examination by the quality control unit before release for manufacturing, processing or packaging; b. Holding rejected components, product containers, closures and labels before disposition; c. Storage of released components, product containers, closures and labels; d. Storage of in-process materials; e. Processing operations; f. Packaging and labeling operations; g. Quarantine storage before the release of cannabis or cannabis products; h. Storage of cannabis or cannabis products after release; and 5. Cannabis products will not be dispensed until required Quality Assurance (QA) Procedures have been completed; the product will not be not treated or adulterated with any compound that alters its appearance, color, weight or smell; 6. Persons entitled to be on the premises without a visitor ID card are limited to: a. Directors, Officers, Authorized employees and/or independent contractors; b. Fresno personnel conducting inspections; c. Visitors displaying a visitor ID badge, which is to be returned on departure, who must be escorted/monitored while on the premises; 7. Each person who is engaged in the cannabis business practices good sanitation and health habits, wears clean clothing appropriate for the duties he or she performs and, as necessary to prevent contamination, dons protective apparel, such as head, face, hand and arm coverings; 8. Prohibition of consumption of cannabis on the premises other than by employees authorized by law to do so in a manner not prohibited by law; 9. Job descriptions and employment contracts will be provided that, included provisions relating to: a. The duties, authority, responsibilities and qualifications of personnel; b. Supervision of personnel; c. Training in and adherence to confidentiality requirements; d. Periodic performance evaluations; and e. Disciplinary actions; 10. Maintenance of business records such as manual/computerized records of assets and liabilities, monetary transactions, journals, ledgers and supporting documents, including agreements, checks, invoices and vouchers; 11. Development of patient education and support materials, including with regard to: a. The availability of different strains of cannabis and the purported effects of the different strains; b. Information about the purported effectiveness of various methods, forms and routes of administering medical cannabis; and The Joint 559 BUSINESS PLAN 52 c. Prohibition on the smoking of cannabis in public places, places open to the public and places exposed to public view; 12. Use of proper sanitation methods and techniques, including with regard to: a. Assigning responsibility for sanitation; b. Describing the cleaning schedules, methods, equipment and materials to be used in cleaning the buildings and facilities of the medical cannabis establishment; c. Identifying the use of appropriate rodenticides, insecticides, fungicides, fumigating agents and cleaning and sanitizing agents; d. Ensuring that all sanitation procedures apply to work performed by contractors or temporary employees and work performed by full-time and regular employee during the ordinary course of operations; 13. Recording transactions, including purchases, sales, denials of sale, any delivery options, confidentiality and retention through an encrypted EVS (See Patient Verification and Tracking, below); 14. Patient education and support, including, without limitation (See also “Patient Needs Program,” below): a. The availability of different strains of cannabis and the purported effects of the different strains; b. Information about the purported effectiveness of various methods, forms and routes of administering medical cannabis; and c. Prohibition on the smoking of cannabis in public places, places open to the public and places exposed to public view; 15. Restricting access to areas containing cannabis to persons authorized to be in those areas and requiring that such persons provide authorizing identification; 16. Prevention/discouragement of loitering; 17. Sanitation, including: a. Assigning responsibility for sanitation; b. Describing in detail the cleaning schedules, methods, equipment and materials to be used in cleaning the buildings and facilities of the business; c. Identifying the use of appropriate rodenticides, insecticides, fungicides, fumigating agents and cleaning and sanitizing agents; d. Ensuring that all sanitation procedures apply to work performed by contractors or temporary employees and work performed by full-time employees or regular during the ordinary course of operations; 18. Security procedures and apparatuses sufficient to prevent and detect unauthorized entrance into the Retail sales facility (See also Security Plan) which include: a. Conducting electronic monitoring in and about the premises which includes the use of automatic or electronic notification to alert local law enforcement agencies of an unauthorized breach of security; b. Devices or a series of devices to detect unauthorized intrusion, which may include a signal system interconnected with a radio frequency method, such as cellular or private radio signals, or other such device; The Joint 559 BUSINESS PLAN 53 c. Exterior lighting to facilitate surveillance; d. Electronic (video) monitoring capabilities, including: i. At least one call-up monitor that is 19 inches or more measured diagonally; ii. A printer capable of immediately producing a clear still photo from any video camera image; iii. Video cameras with a recording resolution of at least 704 x 480 pixels or the equivalent which provide coverage of all entrances to and exits from limited access areas and all entrances to and exits from the building and which are capable of identifying activity occurring in or around the building. Patient Verification Program --Tracking of Cannabis Transactions (Section 1.6.1 (a)) As a cannabis retail business, THE JOINT foresees that it will interact with employees, contractors and agents of other licensees and that these people will need to be verified as medical marijuana patients themselves in order to be in compliance with California State medical marijuana laws. To that end, THE JOINT will employ the following procedures in verifying patients and their caregivers and in tracking the cannabis such persons acquire or attempt to acquire: 1. Confirming prior to membership and at least once per year thereafter, that all persons seeking to acquire cannabis hold a valid physician’s recommendation or Patient ID Card as a qualified patient or a primary caregiver of such a patient, including by mean that: a. Confirm the identity of the holder of the Patient ID Card or recommendation; b. Confirm that the Patient ID Card or recommendation presented by such person is valid and has not been falsified, revoked suspended or voided; c. Confirm that the patient or caregiver has become, or will become, a member; d. Confirm that a primary caregiver seeking to purchase cannabis has been designated as such by a qualified patient on whose behalf the cannabis is sought and that such patient has not concurrently designated more than one primary caregiver. 2. Establishing a patient record for each holder of the Patient ID Card or recommendation who obtains products from the retail facility, including by means of an encrypted EVS for each such person that includes: a. The patient or caregiver ID number; b. The date on which the ID or recommendation was issued to such person; c. The date on which the ID or recommendation is to expire; 3. Verifying that the amount of cannabis requested is within lawful limits; 4. Establishing an encrypted Electronic Verification System (EVS) that records, in real time with a date and time stamp: a. The name and number of the ID card presented for the qualified patient or primary caregiver; b. The type and amount of cannabis dispensed and the date/time it was dispensed; c. Whether the cannabis was dispensed to the qualified patient or primary caregiver; and The Joint 559 BUSINESS PLAN 54 d. The name and employee ID number of the person dispensing the cannabis; 5. Making entries in, and maintenance, patient records that: a. are accessible only by an employees of the retail facility authorized by the policies and procedures of the retail facility to make an entry, which is dated and signed by the employee recording the entry; b. identifies by name and employee number the employee recording the entry; and c. identifies the patient or caregiver by name, date of birth, and, where applicable Patient ID number; d. includes a copy of the patient/caregiver ID and physician recommendation; e. documents, by weight and potency, edibles and infused products acquired; f. Documents by date each time a qualified patient or primary caregiver does not obtain cannabis, together with a statement of the reasons why the product was not provided; g. Is not changed to make the initial entry illegible; h. Is protected from loss, damage or unauthorized access or use 6. For electronically maintained records (including EVS): a. Where electronic signatures are used to sign an entry, the employee whose signature the corresponding electronic code represents is accountable for the use of the electronic signature; b. There are safeguards to prevent unauthorized access, including by means of encryption; and c. The date and time of an entry in a patient record is recorded electronically by an internal clock. Criteria For Distribution (Cannabis Retail Delivery) Operations/Transportation Program (Section 1.7.1) Overview of Delivery Process and Cash Handling (Section 1.7.1(b)) Upon receiving a delivery order through an online ordering system, such as OnFleet, THE JOINT personnel will execute the following steps sequentially, assuming no abnormal circumstances. 1. The order will be assigned to a Dispensary Technician, who will prepare the order for delivery, including supplementary paperwork. 2. The Quality Assurance Manager will review and verify the order and then secure the order’s exit packaging and apply SafePak or other secure system (desc ribed below) in preparation for loading. The Quality Assurance Manager will group deliveries into routes. 3. When all products for a route are ready to dispatch, the Quality Assurance Manager will assign and notify a Delivery Driver. 4. The Delivery Driver will present employee identification to the Receptionist. A Security Guard will escort the Delivery Driver to the Receiving Office. The Joint 559 BUSINESS PLAN 55 5. In the Receiving Office, the Delivery Driver will present all applicable paperwork (including driver’s license, state and local cannabis business permits, employer issued badge, and insurance paperwork). The Security Guard and Quality Assurance Manager will confirm that all paperwork is in order and that the Delivery Driver is dressed professionally, with no clothes or accessories suggesting a connection to cannabis or a cannabis business. 6. Upon approval, the Quality Assurance Manager will transfer possession of the items prepared for the delivery route to the Delivery Driver. At this time, the Delivery Driver will also receive all paperwork associated with the route, including all delivery request receipts. 7. The Security Guard will escort the Delivery Driver with the items for delivery to the delivery vehicle and will verify that the vehicle’s secure product storage in the trunk is empty. The Security Guard will monitor the area while the Delivery Driver locks all items in the vehicle’s secure product storage. 8. The Delivery Driver will communicate with the Quality Assurance Manager and will follow the route recommended via On Fleet or equivalent driver management software, maintaining Situational awareness and abiding by all applicable laws at all times. OnFleet or the equivalent software will use GPS to allow the Quality Assurance Manager to monitor the Delivery Driver. 9. The Delivery Driver will deliver the first item on the route, following all protocols for personal safety, patient or customer communication, dispatch communication, and cash and product handling. As part of this process, the Delivery Driver will ask for and review the government- issued identification (typically a driver’s license) of the recipient. The Delivery Driver shall also require the recipient to sign the delivery request receipt prior to transferring possession of the delivery package. 10. The Delivery Driver will repeat Steps 8 and 9 until all items on the route have been delivered. 11.The Delivery Driver will return to the dispensary facility. 12. In accordance with cash-handling protocols, the Quality Assurance Manager, escorted by a Security Guard, may empty the vehicle’s cash safe, otherwise, the Delivery Driver will begin another route following the steps above. 13. At the end of the Delivery Driver’s shift, after the Quality Assurance Manager has emptied the secure cash safe and verified that the secure product storage is empty, the Delivery Driver will return the vehicle to the designated delivery vehicle parking space. 14. The Delivery Driver will report any accident involving transport of cannabis and any loss or theft of cannabis during transport immediately upon occurrence of the accident or immediately upon knowledge of the loss or theft. In addition to quarterly reconciliations, there will be regularly scheduled daily, weekly and monthly procedures to track inventory, sales and all cash handled by the business, as follows: The Joint 559 BUSINESS PLAN 56 1. Daily: The CFO will verify cash receipts to the P.O.S. system, reconciling daily transactions to ensure all have been entered into the system. Where feasible, a daily deposit ticket for the day’s receipts will be prepared and placed into an envelope with all cash and checks that are being deposited that day; 2. Weekly: The P.O.S. system will automatically update THE JOINT’s in-house accounting system for all transactions from the week. The bookkeeper will verify the daily receipts and transactions for accuracy; 3. Monthly: A physical inventory will be performed on the last business day of each month, and the bookkeeper or CFO will reconcile the inventory to the P.O.S. and in-house accounting systems. These systems will track any unusable, discarded or destroyed cannabis as part of the reconciliation process. Any adjustments to these systems will require the approval of the Executive Director or CFO and will be logged by the bookkeeper. Finally, THE JOINT will rely on its team of accounting and legal professionals to cross-check discrepancies and to investigate suspected losses that cannot be accounted for through normal operations. Transportation Security Procedures (Sections 1.6.1(f) and Section 1.7.1(b)) THE JOINT has developed the following transportation security procedures to document the circumstances, conditions and guidelines for the transportation of cannabis products. i.e., delivery of cannabis to our retail customers: 1. Before transporting cannabis products or paraphernalia, a retail facility employee will: a. Verbally confirm by telephone that the patient or caregiver placed the order and confirm his/her identity; b. Enter the “details” of that confirmation in a log available for inspection by law enforcement; c. Complete a trip plan that includes the following information: i. The name of the employee in charge of the transportation; ii. The date and start time of the trip; iii. The residence address to which the cannabis is to be transported, which must match the address of record for the patient/caregiver; iv. A description of the products and paraphernalia being transported; and v. The anticipated route of transportation; d. Provide a copy of the trip plan to the retail facility, which will maintain copies of tentative and completed trip plans prepared by its employees and provide same to appropriate law enforcement agencies upon request; 2. Transportation of cannabis products and paraphernalia will involve two employees, one of whom will remain with the vehicle at all times it contains cannabis, and each employee will: a. Carry a copy of the completed trip plan for the duration of the trip; The Joint 559 BUSINESS PLAN 57 b. Have his/her Patient ID in his or her immediate possession; c. Have a means of communicating with the retail facility; and d. Ensure that all cannabis paraphernalia being transported are not visible. 3. Following delivery of the cannabis, the retail facility employee delivering the cannabis will: a. Secure a signature from the patient or caregiver who placed the order; and b. Return to the retail facility, enter the trip end time and state any changes made to the trip plan; 4. The vehicle or vehicles used for transportation of cannabis will not have any marijuana identification or logos, and will be equipped with a secure cargo area suitable for sanitary transportation of cannabis and a GPS system for tracking its whereabouts in real time; 5. The retail facility’s employees will report any accident involving transport of cannabis and any loss or theft of cannabis during transport immediately upon occurrence of the accident or immediately upon knowledge of the loss or theft. Delivery Driver Security and Safety (Sections 1.6.1(f) and Section 1.7.1(b)) THE JOINT delivery drivers will be trained before they start work. In addition to all of the other employee training mentioned herein, THE JOINT delivery drivers will be specifically trained in the following security and safety procedures: 1. Be alert to vehicles that may be following you. Note vehicle and driver description. 2. Be aware of your surroundings. Avoid areas that are not well-lit. 3. If followed, do not exit your vehicle. Lock your doors and go to the nearest safe location and/or call the police. 4. Be alert to suspicious persons loitering around the delivery address. 5. Don’t flash money during transactions. 6. Be cautious of delivery locations that appear unsafe (i.e. vacant, lights are not on, yard has not been maintained, etc.) If you are in doubt, do not leave your vehicle. Drive to the nearest safe location and call THE JOINT or return to THE JOINT to obtain further instructions from your manager. 7. Carry yourself with authority-head up, back straight, walk confidently. 8. If something does not look or feel right, do not make the delivery. Immediately return to THE JOINT or go to the nearest safe location. 9. Never allow the customer to redirect you to a different address or location after the original order is placed. 10. Do your best to shine your headlights on the door of the house or apartment as you near delivery. 11. Park your car as close as possible to the door of the delivery destination or park under a streetlight. 12. Lock your car and take the keys. Should not leave car running unattended. 13. Never walk behind a dark building, go to a side door or be called away from plain view by anyone there. 14. If someone approaches you, keep them an arm’s distance away. 15. If an emergency occurs, go to a safe location, then dial 911 and wait for the police to arrive at the scene. 16. Carry a flashlight to illuminate the house numbers and dark areas. 17. If you feel threatened and your car has a remote alarm, consider activating the alarm if you believe that drawing attention to yourself would not jeopardize your safety. 18. Know where you are going before you leave THE JOINT. It is widely recognized that the number one cause of carjacking is driver getting lost, stopping to ask directions, or stopping the car to look at a map. The Joint 559 BUSINESS PLAN 58 Number/Type of Vehicles To Be Used in the Cannabis Business (Section 1.6.1(f)) THE JOINT will be a retail cannabis storefront that also offers cannabis delivery services to our members. We intend on starting with just a few employees and then expect to grow over time to hopefully have 5 to 10 delivery drivers working full time within a few months. THE JOINT has two employees ready to start working once we are open. To start, THE JOINT will hire two delivery drivers who will own their own vehicles to be used in the delivery service. The first cannabis delivery driver will be Cindy Cortez, who owns a 2020 Chevy Traverse, License plate #8LSN647. The second cannabis delivery driver will be Fernando Gutierrez, who owns a 2019 Dodge Ram, License Plate #82977V2. These initial two employees will perform the deliveries until more drivers can be hired. All drivers’ vehicle information will be reported to the City and the Bureau at the time of hiring and before they are used for delivery. All transportation drivers and employees will be at least 21 years of age or older. Limits on Means of Transacting Cannabis THE JOINT will not transact cannabis products by means of the following: 1. Internet sales; 2. Drive through windows; 3. Walk up windows; 4. Mail or private package delivery systems; Inventory Control Program (Section 1.6.1(c)) In addition to the accounting work to be performed by its accountants, THE JOINT will likely rely upon the Treez tack and trace software to implement and coordinate its Patient Verification and Inventory Control system. This system will be a perpetual, encrypted system that documents that chain of custody of cannabis from acquisition to sale and will record and compile the following information: 1. The name and employee number of the retail facility agent responsible for oversight of the inventory control system; 2. On a day-to-day basis, track each day’s beginning inventory, acquisitions, sales, disbursements, disposal of unusable cannabis and ending inventory; 3. Where an identified reduction in the amount of inventory is not due to identify corrective actions and report the findings to retail facility’s CFO; 4. Where a reduction in inventory is due to suspected criminal activity, the retail facility will report that loss and the suspected causes of that loss to appropriate law enforcement agencies; The Joint 559 BUSINESS PLAN 59 5. Documenting, investigating and reporting significant variances in physical Inventory counts; 6. Documenting, investigating and reporting significant variances between the raw Material and finished product; 7. Conducting quarterly physical inventory counts, which are then reconciled to the perpetual inventory records; Equipment – Design, Maintenance & Cleaning Program THE JOINT will use equipment of proper design to accomplish its objectives in the most efficient manner, including by the following means: 1. The equipment and utensils used will be: a. Of appropriate design and adequate size and suitably located to facilitate operations for its intended use and for its cleaning and maintenance; and b. Constructed so that surfaces which have direct contact with components, in-process materials and cannabis are not reactive, additive or absorptive so as to either: i. Alter the safety, identity, strength, quality or purity of the products beyond established requirements; or ii. Allow the migration of deleterious substances or impart colors, odors or tastes to products; c. Safe, durable, corrosion-resistant, nonabsorbent, of sufficient construction to withstand repeated ware washing, are finished to have a smooth, easily cleanable surface; and are resistant to pitting, chipping, crazing, scratching, scoring, distortion and decomposition; 2. The retail facility will establish written procedures and records concerning the cleaning and maintenance of equipment (including procedures regarding methods, equipment and materials used in cleaning and maintenance operations) that: a. Ensures that any substances required for its operation, such as lubricants or coolants, do not come into contact with components, product containers, in-process materials, or cannabis so as to alter their safety, identity, strength, quality or purity beyond the official or other established requirements; b. Ensures that equipment and utensils are cleaned, maintained and, as appropriate for the nature of the cannabis, sanitized and sterilized at appropriate intervals to prevent malfunctions or contamination that would alter the safety, identity, strength, quality or purity of the cannabis beyond the official or other established requirements (including, where necessary, the disassembly and reassembly of such equipment); c. Assigns responsibility for cleaning and maintaining equipment; d. Establishes a schedule for maintenance, cleaning and, where appropriate, sanitizing equipment or utensils, and in particular, for equipment or utensils that have direct contact with cannabis or cannabis products, cleaning/sanitizing at the following times: The Joint 559 BUSINESS PLAN 60 i. At a frequency specified by the manufacturer, or if the manufacturer does not specify a frequency, at a frequency necessary to prevent the accumulation of soil or mold; ii. Each time there is a change from working with raw marijuana products to working with finished marijuana products; iii. As to cavities and door seals and surfaces of heating appliances, at least once every 24 hours by using the recommended cleaning procedure of the manufacturer; iv. As to the surfaces of equipment that do not have direct contact with marijuana products, as often as necessary to keep them free of accumulations of dust, dirt, residue and other debris; v. At any time during operation when contamination may have occurred; e. Ensures that after cleaning and before use, the surfaces of equipment and utensils that come in direct contact with cannabis and cannabis products are sanitized in: i. Hot water manual operations by immersion for at least 30 seconds with a temperature of 170°F (77°C) or above; ii. Hot water mechanical operations by being cycled through equipment that is set up and achieving a utensil surface temperature of 160°F (71°C) as measured by an irreversible registering temperature indicator; f. Provides for the protection of clean equipment from contamination before use; and inspection of equipment for cleanliness immediately before use. 3. The retail facility’s ware washing equipment will include in its operation the use of fresh hot water as a sanitizing rinse, at a temperature of between 180°F (82°C)and 194°F (90°C) as it enters the manifold; 4. Scales and weighing mechanisms must be able to weigh to within 1/100th of a gram, will be maintained in good working order and will be subject to annual inspection by either the Los Angeles County Department of Agriculture/Weights and Measures or a licensed scale company. Ongoing Diligence in Product Safety (Section 1.7.1(d)) THE JOINT personnel will include a person, who will have the following responsibilities: 1. Development of information-sharing and research relationships in the industry and scientific community concerning the various strains of cannabis, the medicinal effects of such strains and the THC/CBD constituents therein, and the ongoing state of medical research into the field of medical cannabis; 2. As to Testing Laboratories to which THE JOINT’s suppliers submit their products for testing: a. Developing knowledge of, and performing due diligence in determining compliance with, laboratory standards of practice, standard operating procedures, chain of custody protocols, quality control and quality assurance and proficiency standards and results; The Joint 559 BUSINESS PLAN 61 b. Determining, from information available whether the Testing Laboratory has been subjected to discipline or has rated an unsatisfactory result in proficiency testing; c. The Testing Laboratory’s procedures and methods for testing of cannabis. 3. As to suppliers from which THE JOINT obtains cannabis products: a. Determine the standard operating procedures & good manufacturing practices the suppliers; b. Develop knowledge of, and perform due diligence in determining compliance with regulatory standards regarding the processing of edibles and infused products, including use of the methods, equipment, solvents, gases and mediums specified therein: c. Develop knowledge of, and performing due diligence in determining compliance with standards regarding the sourcing and handling of nonmarijuana ingredients and marijuana; d. Ascertain the identity of the Testing Laboratory or laboratories with which they do business; e. Conduct, where permitted, an on-site inspection of the premises in order to effectuate the foregoing; 4. THE JOINT will further designate a person, who will be responsible for coordinating with the retail facility’s Quality Control Officer and Purchasing Agent to ensure an uninterrupted supply of medical grade cannabis that meets the needs of THE JOINT’s patient base. That person will also be responsible for implementing and overseeing the retail facility’s Patient Needs Plan. 5. THE JOINT will also conduct its own testing of its products to validate results. Ultimately, THE JOINT will be in compliance with MAUCRSA’s testing and distribution protocols. 6. Potency and contaminate specifications will be as stated in the FRESNO Municipal Code and/or MAUCRSA, as amended. Packaging & Labeling Program (Section 1.7.1(d)) Generally: THE JOINT adheres to, and will ensure adherence by its suppliers to, the following packaging and labeling protocols: 1. With re respect to the receipt, identification, storage, handling, sampling, testing of labeling packaging materials, the retail facility’s specifications and control procedures for its labeling and packaging materials will: a. Suitably identify each type of cannabis product, by strength, dosage form or quantity of contents; b. Be examined/inspected to determine whether they meet the cultivator and/or manufacturer’s standards and specifications, and as to such labels: i. Those that meet the written specifications are stored separately from any cannabis product, ingredients or equipment, and access thereto limited to authorized personnel; The Joint 559 BUSINESS PLAN 62 ii. Those that do not meet such specifications are rejected to prevent their use in operations for which they are unsuitable; c. Are destroyed where they are either rejected, are obsolete or are outdated; 2. With respect to product containers, components, closures and packaging, the retail facility will: a. Describe in detail the receipt, identification, storage, handling, sampling, testing and approval or rejection of containers, components, or closures; b. Ensure that containers, components, or closures are at all times handled and stored separately from cannabis products, cleaning products and other materials so as to manner to prevent contamination; c. Ensure that bagged or boxed components/containers/closures are stored off the floor and are suitably spaced to permit cleaning and inspection; d. Ensure that each container or grouping of containers for components, product containers or closures is identified with a distinctive code for each lot in each shipment received, to be used regarding the disposition of each lot, identifying each such lot as quarantined, approved or rejected; e. Ensure that any product containing cannabis be packaged in child-resistant packaging in accordance with 16 C.F.R. § 1700, and that it be provided to the patient in an opaque bag or container that is closed by the employee prior to transfer to the patient; f. Ensure that infused products in solid form be packaged in plastic which is 4 millimeters or more in thickness and must be heat-sealed without an easy-open tab, dimple, corner or flap so that it is difficult for a child to open and as a tamperproof measure; however, marijuana-infused products in liquid form may be sealed using a metal crown corkstyle bottle cap; g. Ensure that the container or packaging protect the contents from contamination and must not impart any toxic or deleterious substance to the usable marijuana or marijuana product. Packaging, Labelling and Signage (Section 1.7.1(d)) Format and Specifications: THE JOINT adheres to the following packaging, labelling and signage protocols for all of the cannabis products it manufacturers. In addition, THE JOINT and will ensure adherence by its suppliers to, the following packaging and labeling specifications for information placed on the labels of its products: 1. For Cannabis Flower products: a. THE JOINT 559 business name and address; b. The lot and/or batch number; c. The date and quantity dispensed, including the net weight measured in ounces and grams or by volume, as appropriate; d. The name and ID Card number of the patient or caregiver; e. The cannabinoid/terpenoid profile; The Joint 559 BUSINESS PLAN 63 f. The THC and CBD potency; g. A warning that states: “This product may have intoxicating effects and may be habit forming.” h. The statement: “This product may be unlawful outside of the State of California.” i. For Example: Lot#: 1234, Dispensed to/Provided to: John J. Smith #1234987 patient member of THE JOINT Collective facility on Date: 11/27/2020, by THE JOINT 559, 1215 S. Buena Vista Avenue, California 92583. WARNING: This product may have intoxicating effects and may be habit forming.16.7% THC 1.5% CBD 0.3% CBN Myrcene 5.6 mg/g Limonene 5.1 mg/g Valencene 3.5 mg/g Net Weight: .25 ounces (7 grams) This product may be unlawful outside the State of California. 2. For edible and infused products: a. For Example: Produced by: THE JOINT 559 business name and address; b. The lot and/or batch number(s) of all cannabis used to create the product; c. The date and quantity dispensed, including the net weight in ounces and grams or by volume, as appropriate; d. The name and ID Card number of patient or caregiver; e. If the product is perishable, a suggested use-by date; f. The terpenoid and THC profile in milligrams; g. A list of all ingredients and all major food allergens as identified in 21 U.S.C. §§343; h. A warning that states: “Caution: When eaten or swallowed, the intoxicating effects of this drug may be delayed by 2 or more hours;” i. A warning that states: “This product may have intoxicating effects and may be habit forming;” j. A statement that: “This product may be unlawful outside of the State of California;” k. For Example (two-sided label): i. Side 1 THE JOINT 559 1215 S. Buena Vista Avenue, Fresno, CA 92583, Date, Produced/Manufactured/Dispensed: 3/27/2021 To: John J. Smith #1234987/Collective Name. Cookie Net Weight: 6oz (168 Grams) Serving Size: 10mg of THC Contains 10 servings and a total of 100 MG of THC Use by: 6/3/2015 Myrcene 5.6 mg/g Limonene 5.1 mg/g Valencene 3.5 mg/g CAUTION: When eaten or swallowed the intoxicating effects of this product can be delayed 2 or more hours. This product may be unlawful outside the State of California. ii. Side 2 Lot#: 1234 Batch #5463, INGREDIENTS: Flour, Butter, Canola Oil, Sugar, Chocolate, Marijuana, Strawberries, CONTAINS ALLERGENS: Milk, Wheat Contains marijuana extract processed with butane. WARNING: This product may have intoxicating effects and may be habit forming. 3. In addition to the labeling to be affixed to packages containing cannabis, the retail facility will also provide, with all cannabis grown, processed or in prepared for being dispensed, The Joint 559 BUSINESS PLAN 64 accompanying material that discloses any pesticides applied to the marijuana plants and growing medium during production and processing and contains the following warnings in at least 12-point font without italics: a. “Warning: This product may have intoxicating effects and may be habit forming. Smoking is hazardous to your health;” b. “There may be health risks associated with consumption of this product;” c. “Should not be used by women who are pregnant or breast feeding;” d. “For use only by the person named on the label of the dispensed product. Keep out of reach of children;” e. “Marijuana can impair concentration, coordination and judgment. Do not operate a vehicle or machinery under the influence of this drug;” 4. In addition to the labeling to be affixed to packages containing cannabis, the retail facility will also provide, with all edibles and infused products it dispenses, specific accompanying material, printed in at least 12 point font without italics, that: a. Discloses any pesticides applied to the marijuana plants and growing medium during cultivation and/or production of the marijuana used to create the extract added to the edible marijuana products or marijuana-infused products; b. The type of extraction method used, including the identification of solvents, gases or other chemicals or compounds used to produce or that are added to the extract; c. Contains the following warnings: i. “There may be health risks associated with consumption of this product;” ii. “This product contains or is infused with marijuana or active compounds of cannabis;” iii. “Should not be used by women who are pregnant or breast feeding;” iv. “For use only by the person named on the label of the dispensed product. Keep out of the reach of children;” v. ”Products containing marijuana can impair concentration, coordination and judgment. Do not operate a vehicle or machinery under the influence of this drug;” vi. “Caution: When eaten or swallowed, the intoxicating effects of this drug may be delayed by 2 or more hours;” 5. In addition to the foregoing packaging and labeling protocols, the Retail facility will: a. Exercise of strict control over labeling materials issued for use in labeling operations; b. Carefully examine labeling materials issued for a batch for identity and conformity to the labeling specified in the applicable production or control records; c. Carefully examine packaged and labeled products during finishing operations to assure that the containers and packages have the correct labels; d. Collect a representative sample of units at the completion of finishing operations and ensure that the samples are visually examined for correct labeling; e. Record the results of any examinations performed the applicable production or control records; The Joint 559 BUSINESS PLAN 65 6. In addition to the foregoing packaging and labeling protocols, the cannabis retail facility will post on its packaging and post a placard at least 8 inches tall by 11 inches wide in a 48-point font, in a conspicuous place on the premises, that states, for edible and infused products, the following: a. Edible and Marijuana Infused Products: There may be health risks associated with consumption of edible marijuana products or marijuana infused products; b. Edible products and marijuana infused products contain marijuana or active compounds of marijuana; c. Edible products and marijuana infused products should not be used by women who are pregnant or breastfeeding; d. When eaten or swallowed, the intoxicating effects of edible products and marijuana infused products can be delayed two or more hours; e. Follow all recommended dosage and serving guidelines and recommendations; f. KEEP CANNABIS PRODUCTS OUT OF REACH OF CHILDREN; 7. In addition to the foregoing, the retail facility will post on its packaging and post a placard at least 8 inches tall by 11 inches wide in a 48-point font, in a conspicuous place on the premises, that states that it is unlawful to sell or resell marijuana or marijuana products to any person. 8. In addition to the foregoing, a sign will be posted at the entrance to the cannabis retail facility that includes the following language: This cannabis retail facility only provides medical cannabis to legal medical cannabis patients, who must have legally recognized California Medical Cannabis Identification Cards or a verifiable, written recommendation from a physician for medical cannabis. To be in compliance with MAUCRSA, THE JOINT will only deal with licensed distributors and transporters. 9. In addition to the foregoing, a sign will be posted in a conspicuous location inside the retail facility advising as follows: This Retail facility is registered in accordance with the laws of Fresno and the State of California. The diversion of marijuana for non-medical purposes are violations of State law. The use of marijuana may impair a person’s ability to drive a motor vehicle or operate heavy machinery. 10. In addition to the foregoing, until compliance with MAUCRSA, a sign or signs will be posted in a location or locations conspicuous from all sales areas inside the structure that state: WARNING: Medical cannabis products including edibles are not tested by local, state or federal governmental agencies for health, safety, or efficacy. There may be health risks associated with the consumption of these products. The required text will be of sufficient size to be easily read from a distance of five feet. This warning will also be provided in writing to each member prior to accession to membership; 11. Finally, the retail facility will not label any cannabis product as “organic” unless it has confirmed that the plants used in that produce are produced, processed and certified in a manner that is consistent with the national organic standards established by the United States Department of Agriculture in accordance with the Organic Foods Production Act of 1990. The Joint 559 BUSINESS PLAN 66 Quality Control & Salvage Program THE JOINT adheres to guidelines for production, quality control and salvage operations that include the following protocols: 1. The establishment of a Quality Control (QC) unit with responsibilities to ensure: a. That the QC Unit has the responsibility and authority to approve or reject all components, product containers, closures, in-process materials, packaging materials, labeling and cannabis products; b. That the QC Unit has the authority to review production records to assure that no errors have occurred or, if errors have occurred, that they have been fully investigated and resolved; c. That the QC Unit is responsible for approving or rejecting products manufactured, processed, packaged or held under contract by third parties; and d. That the QC Unit is responsible for approving or rejecting all procedures or specifications which may impact the identity, strength, quality and purity of the products; 2. That the products have the identity, strength, quality and purity they purport or are represented to possess; 3. With respect to cannabis products that may have been subjected to improper storage conditions, including extremes in temperature, humidity, smoke, fumes, pressure, age or radiation due to natural disasters, fires, accidents or equipment failures, the retail facility will ensure that: a. Such products are not salvaged and returned to the marketplace where it is determined that they have, in fact, been exposed to improper storage conditions; b. Whenever it is unclear whether such products have been subjected to improper storage conditions, the retail facility will conduct salvaging operations only if there is: i. Evidence from laboratory tests and assays that the products meet all applicable standards of identity, strength, quality and purity; ii. Evidence from inspection of the premises that the products and their associated packaging were not subjected to improper storage conditions as a result of the disaster or accident, if any; c. Where any such products have been subjected to salvaging operations, the retail facility must document such operations by identifying the name, lot number and disposition of such products. Further Disclosures Environmental Sustainability THE JOINT is dedicated to conducting its operations in a manner that is ecologically sustainable from an energy consumption, water consumption and waste generation standpoint. THE JOINT is also committed to purchasing wholesale cannabis products for resale that have been produced using only natural, organic methods. In furtherance of these goals, THE JOINT will consult with The Joint 559 BUSINESS PLAN 67 and, as necessary, retain an Environmental or Architectural Engineer to assist with its Environmental Sustainability Plan and will, at a minimum, adopt and adhere to Best Management Practices that include methods, policies and procedures in the following areas: 1. As to maximizing energy efficiency, the implementation of measures that include the following: a. For lighting equipment and controls: i. Use of fluorescent/LED lighting in all areas of the premises; ii. Use of Energy Star lighting products; iii. Use, where appropriate, of photo-controls for exterior lighting unless security needs dictate otherwise; b. For HVAC equipment and controls: i. Installation of vent dampers; ii. Analysis of systems and replacement of inefficient components; iii. Use of programmable thermostats and controls; iv. Sealing and insulation of ducts and hot water pipes; v. Use of Energy Star HVAC products; c. For the building envelope: i. Install and/or increase roof and wall insulation; ii. Control Air Leakage; iii. Install storm doors; iv. Insulate and seal skylights and window; v. Use of storm/insulated windows carrying the Energy Star label; d. Use of natural light: This space already has four skylights to supplement the electrical lighting with natural light and reduce the consumption of electrical light sources while maintaining minimum lighting requirements; e. Otherwise attempting to meet or exceed the energy efficiency requirements of the International Energy Conservation Code; 2. The retail facility will apply for and utilize any and all available SOCAL EDISON programs for free technical assistance in creating an energy efficient plan for construction of the building shell, tenant improvements, building systems and processes and effectuating the other goals stated in this part; 3. The retail facility will install solar panels on the building and draw on that during daylight hours and endeavor to sell excess electrical output back to the SOCAL EDISON grid; 4. The retail facility will use electric vehicles for all of its internal and delivery transportation needs; 5. The retail facility will use green building measures whenever feasible, utilizing materials such as denim insulation, non-toxic paint, and materials that do not off-gas. Once revenues permit, the retail facility will make donations to the Rainforest Action Network, which strives to keep the rainforests intact to combat global warming. 6. As to water quality and conservation measures: The Joint 559 BUSINESS PLAN 68 a. The retail facility will instruct, train and educate its staff as to water conservation measures, including the following methods: i. Avoiding water wasting techniques such as: 1. Allowing water to run during washing/rinsing procedures when no active washing or rinsing is occurring; 2. Using the toilet to flush and dispose of small items that are more properly disposed of using trash containers; ii. The identification and reporting to appropriate management members of leaks in any portion of the water delivery, distribution and plumbing systems in and about the premises where the retail facility conducts its operations; iii. Utilizing any and all available programs and private resources tasked with water conservation efficiency and the education of the public regarding same; b. THE JOINT will employ water conserving equipment and materials, as follows: i. Water meter monitor including technology to identify leaks ii. The use of low flow equipment in sinks and toilets iii. The use of cleaning agents that do not rely on water iv. An HVAC system that collects and recycles condensate; c. The retail facility will train and instruct its staff in the following methods for preventing discharge to storm drains: i. Identification of chemicals and other substances that are inappropriate for discharge into storm drains; ii. Development of a spill prevention and control program; iii. Prohibiting the use of petroleum-based cleaning products, acids, phosphates or other similar agents or solvents that may produce liquid discharge or run- off; iv. Prohibiting the use of any products which contain heavy metals or which breakdown into heavy metals; v. Painting of any portion of the roof of the building comprised of galvanized sheeting with an enamel paint; vi. Proper storage and segregation of all cleaning and sanitizing products so as to prevent leakage; vii. Frequent sweeping of the premises; viii. Placement of dumpsters and other waste containers in areas that are not directly exposed to rainwater or with covers that are watertight; ix. Posting of warnings about the premises not to dump waste fluids (or products containing or contaminated with same) in storm drains or areas of the premises that lead to storm drains; d. Except for statutorily specified cleaning agents, the retail facility will restrict the use of cleaning agents to use non-toxic materials such as vinegar, baking soda and environmentally-friendly disinfectants in cleaning and sanitizing operations; The Joint 559 BUSINESS PLAN 69 7. As to solid resource conservation: a. Using, where available, paper, plastic and other containers that have been produced using recycled materials, identifying vendors of such products, and training staff as to the use of such vendors. We will endeavor to minimize packaging and waste wherever possible. b. Instituting a recycling program whereby: i. Staff are trained as to recycling programs operated by local waste management providers and private recycling providers; ii. Used or discarded paper, plastic or other items are placed for pick up and recycling by waste management providers or transported to private recycling centers. 8. Disposal and Destruction Program a. THE JOINT will endeavor to reduce, to the greatest extent possible, the generation of any excess marijuana product or marijuana plant debris by repurposing such materials for use in edibles and infused products, including tinctures and topicals. The retail facility anticipates that it will be a near zero waste facility in this regard. b. As to the material that cannot be used in such a manner and which therefore must be discarded or destroyed, the retail facility will use the following approach: i. THE JOINT will identify one or more local landfills or transfer stations that will receive marijuana plant waste materials and will further identify one or more facilities that receive organic or other waste for energy generation purposes; ii. The retail facility will identify an employee responsible for segregating and disposing of marijuana plant waste matter; iii. Any cannabis or cannabis plant debris that is designated for destruction or disposal will be identified by date, batch and volume by the Inventory Control System and will be ground, milled or otherwise processed into a gauge where the particles can be readily combined with another substance so as to render the ground/milled/processed marijuana plant material non- viable; iv. Once processed for disposal, the material to be discarded or destroyed will be combined with mulched cardboard, used plant soils or other non-toxic inert material so as to render unusable the marijuana plant matter contained therein; c. Following the rendering of any potentially usable marijuana non-viable by the above described method, the retail facility employee responsible for the destruction/disposal of the material will isolate and identify said material pending transfer to a designated waste or energy generation facility; d. At the time of transfer, the retail facility employee responsible for the destruction/disposal will prepare a tentative trip plan identifying the matter to be transported, the employee transporting said matter, the destination where the matter is to be transported and the route to be used in transporting such matter; The Joint 559 BUSINESS PLAN 70 9. The retail facility will make every effort to transact cannabis and related products that meet the Federal Standard for designation as “organic” by obtaining suppliers that use only OMRI-Certified grow media and avoid the use of any insecticides, herbicides or artificial growth regulators. Integrated Accounting and Transactions Systems THE JOINT will integrate its accounting and inventory systems. Based on robust client server architecture, the retail facility’s computer systems will track transactions, inventory, and expenses in real time, allowing for seamless electronic transfer of data directly to its accountant. Encrypted transmissions are used to ensure privacy. Redundant hardware and robust backup will assure the integrity of our information. State of the art electronic security will be implemented to insure patient privacy. Firewalls, intrusion detection and spyware filtering software will all be implemented. Both network level access control and system level restricted access will prevent unauthorized use of the system. THE JOINT’s computer system is fully HIPPA privacy protection compliant. The server room will be physically secured behind a locked security door with access thereto limited to designated staff. The Inventory Control Vendor will, in coordination with THE JOINT’s accountant and bookkeeper, integrate its inventory control protocols and sales tracking into the retail facility’s in- house accounting system. This will ensure the integrity of its financial bookkeeping. The in-house accounting system will be backed up weekly. All systems will be encrypted, cloud-based and accessible electronically from servers protected by biometric locks and 24-hour surveillance. THE JOINT’s accounting will be made available to City auditors upon request. In addition to the quarterly reconciliations, there will be regularly scheduled daily, weekly and monthly procedures to track inventory and sales, as follows: 4. Daily: The CFO will verify cash receipts to the P.O.S. system, reconciling daily transactions to ensure all have been entered into the system. Where feasible, a daily deposit ticket for the day’s receipts will be prepared and placed into an envelope with all cash and checks that are being deposited that day; 5. Weekly: The P.O.S. system will automatically update THE JOINT’s in-house accounting system for all transactions from the week. The bookkeeper will verify the daily receipts and transactions for accuracy; 6. Monthly: A physical inventory will be performed on the last business day of each month, and the bookkeeper or CFO will reconcile the inventory to the P.O.S. and in-house accounting systems. These systems will track any unusable, discarded or destroyed cannabis as part of the reconciliation process. Any adjustments to these systems will require the approval of the Executive Director or CFO, and will be logged by the bookkeeper. The Joint 559 BUSINESS PLAN 71 Finally, THE JOINT will rely on its team of accounting and legal professionals to cross-check discrepancies and to investigate suspected losses that cannot be accounted for through normal operations. Records Retention Program All records concerning the operations of the retail facility will be maintained and made available for review for at least five years. Such records will be placed in a secure, locked room, and electronic copies secured by means of encryption and limitation of access to designated personnel. Security Measures THE JOINT is submitting a separate Safety and Security Plan as required, but provides the following summary of its Security measures and Fire Protocols in this business plan for reference. THE JOINT will implement sufficient security measures to deter and prevent the unauthorized entrance into areas containing cannabis or cannabis products, and to deter and prevent the theft of cannabis or cannabis products at THE JOINT. Except as may otherwise be determined by the CFO or his/her designee(s), these security measures will include, but will not be limited to, all of the following: (1) Preventing individuals from remaining on the premises of THE JOINT if they are not engaging in an activity directly related to the permitted operations of THE JOINT. (2) Establishing limited access areas accessible only to authorized commercial cannabis business personnel. (3) All cannabis and cannabis products will be stored in a secured and locked room, safe, or vault. All cannabis and cannabis products will be kept in a manner as to prevent diversion, theft, and loss, (4) Installing 24-hour security surveillance cameras of at least HD-quality to monitor all entrances and exits to and from the premises, all interior spaces within THE JOINT which are open and accessible to the public, all interior spaces where cannabis, cash or currency, is being stored for any period of time on a regular basis and all interior spaces where diversion of cannabis could reasonably occur. THE JOINT will be responsible for ensuring that the security surveillance cameras footage is remotely accessible by the CFO or his/her designee(s), and that it is compatible with the City 's software and hardware. In addition, remote and real-time, live access to the video footage from the cameras will be provided to the CFO or his/her designee(s). Video recordings will be maintained for a minimum of forty-five (45) days and will be made available to the CFO or his/her designee(s) upon request. Video will be of sufficient quality for effective prosecution of any crime found to have occurred on the site of THE JOINT. (5) Sensors will be installed to detect entry and exit from all secure areas. (6) Panic buttons will be installed in THE JOINT. The Joint 559 BUSINESS PLAN 72 (7) Having a professionally installed, maintained, and monitored alarm system. (8) Any bars installed on the windows or the doors of THE JOINT will be installed only on the interior of the building. (9) Security personnel will be on-site 24 hours a day or alternative security as authorized by the Chief of Police and City Manager or his/her designee(s). Security personnel will be licensed by the State of California Bureau of Security and Investigative Services personnel and will be subject to the prior review and approval of the Chief of Police and City Manager or his/her designee(s), with such approval not to be unreasonably withheld. (10) THE JOINT will have the capability to remain secure during a power outage and will ensure that all access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage. THE JOINT will identify a designated security representative/liaison to Fresno, who will be reasonably available to meet with the Chief of Police and/or City Manager or his/her designee(s) regarding any security related measures or and operational issues. As part of the application and permitting process THE JOINT will have a storage and transportation plan, which describes in detail the procedures for safely and securely storing and transporting all cannabis, cannabis products, and any currency. THE JOINT will cooperate with the City whenever the CFO or his/her designee(s) makes a request, upon reasonable notice to THE JOINT, to inspect or audit the effectiveness of any security plan or of any other requirement of this Title. THE JOINT will notify the Chief of Police and/or City Manager or his/her designee(s) within twenty-four (24) hours after discovering any of the following: (1) Significant discrepancies identified during inventory. The level of significance will be determined by the regulations promulgated by the City Manager or his/her designee(s). (2) Diversion, theft, loss, or any criminal activity involving THE JOINT or any agent or employee of THE JOINT. (3) The loss or unauthorized alteration of records related to cannabis, registering qualifying patients, primary caregivers, or employees or agents of THE JOINT. (4) Any other breach of security. Fire Security- Prevention and Suppression Fire Plan Introduction The Joint 559 BUSINESS PLAN 73 THE JOINT’s Fire Plan is augmented with human procedures and training to assure that the management and staff of the retail facility are prepared for any emergency. The building meets or exceeds all known fire hazard requirements and will have an upgraded HVAC system. THE JOINT is committed to the safety of its patient, staff and the general public. No Open Flames or Exposed Heating Elements Policy Because THE JOINT is a non-smoking facility that does not process any items it sells (other than packaging and labelling for end use) and its existing HVAC system does not involve any exposed heating elements, these potential fire causes are not in play. Any patient seeking to initiate combustion in the facility will be immediately escorted from the premises. No Use of Flammable Materials Because THE JOINT does not process any items it sells (other than packaging and labelling for end use), it will not have on hand any hazardous or toxic materials involved in such production or processing. Its packaging and labelling materials will be flame resistant, and stored in a cool dry place. Products will be placed for display in glass display cases on baes of non-toxic inflammable materials. Any materials other than electrical devices will be comprised of only ordinary combustibles. There will not be any flammable liquids or combustible metals on the premises. Cooperation with Fire Department First Responders THE JOINT personnel and security staff will be trained and instructed to accommodate any requests for emergency access by the Fresno Fire Department responding to a priority dispatch call. A set of master keys will be made available to the Fresno Fire Department in order to provide emergency access to the interior of the facility in response to a Priority Dispatch call related to the facility. THE JOINT’s ombudsperson will act as liaison with the Fresno Fire Department for inspections and ongoing fire safety education and training. Fire Safety Systems THE JOINT will have a fire safety system based on all local requirements. Many UL Approved fire extinguishers will also be located throughout the building, and will be subjected to quarterly inspection and approved for commercial use. THE JOINT will be equipped with many state of the art smoke and CO detectors throughout the Facility, all connected to a centrally monitored, integrated Alarm System connected to the Fresno Fire Department. Evacuation Plan Floor plans with evacuation routes to the nearest exit are posted throughout the building. All staff have training in evacuation plans and training in how to assist ADA patients that may be in the retail facility. Panic / Crash Bars on Doors The Joint 559 BUSINESS PLAN 74 All doors will have UL approved, crash bars that are ADA compliant for use by wheel chair users. All doors have power openers installed to provide pushbutton operation for use by ADA patients or in case of emergency. Facilities - Scheduling The retail facility will utilize a computer/Network based calendar system for event scheduling, grow schedules, staff work schedule, maintenance and other task planning. The Scheduling system will be the responsibility of the General Manager. Insurance The retail facility will obtain comprehensive general liability and automobile insurance policies to protect THE JOINT from an array of risks, identifying Fresno as an insured and/or beneficiary of the policy. Policy limits of this insurance will be ( per occurrence and ( aggregate. In addition, the retail facility will obtain a policy of business and property insurance for fire, theft, or other loss sufficient to ensure its ongoing operations in the face of such an occurrence, as well as Worker’s Compensation Insurance for its staff. Location 6.1. The retail location proposed is address 913 E Divisadero Street the lot is on the corner of Fulton and Divisadero. In total the building size is 4,836 sq feet and we will be leasing the corner unit that measures 1,624 sq feet. The lot measures 730 square feet by 1,940 square feet. The location we are interested in leasing is the corner lot. This specific unit has its own small parking area. The building itself is mainly made of brick and has an entrance with an ample center and two rooms with doors and an office with a door as well. The unit has one restroom located in the back next to the emergency exit door and two small back windows that have rails for safety. The back of the building has a small alley that is part of the same lot and only has two entrances. 6.2. PICTURES Divisadero View Fulton Side View, This is the corner lot we are approved to lease by the landlord and it has this small parking area for customers. A map of what is in the area. 6.3 Diagram Premises 6.3.1. Diagram Premises Thank you for your time and consideration. 6.3.1. The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 1 THE JOINT 559 Community Benefits And Investments Plan THE JOINT 559 (“THE JOINT”) and its principals will support and give back to the local community through their cannabis business venture. They intend to establish a community benefits tradition through the commercial cannabis businesses’ revenue stream. The following are a few of the benefits the community will enjoy from THE JOINT’s operations. THE JOINT’s operations support several overlapping policies serving the interests of Fresno and the adjacent communities. First, it advances access to safe, properly produced cannabis products authorized under state law and local ordinance. For the same reason, THE JOINT will advance the policies set forth under Fresno’s Municipal Code regarding the provisions of needed goods and services to the residents Fresno. In addition, THE JOINT’s business approach and operations will serve numerous other goals. THE JOINT will integrate its operations into the surrounding community in a sensitive and attractive manner by utilizing an existing structure and provide a community ombudsperson to address any complaints or concerns. The employment provided by THE JOINT – paid at and above living wage standards -- will help provide economic stability to the neighborhood in which it is located and stimulus to the city of Fresno as a whole. The proposed use will thus simultaneously help prevent a decline in and about the commercial center where it is located while bringing economic diversity to Fresno. Volunteer Services (Section 7.1) Community Support Hours: THE JOINT commits to the city to provide a minimum of 20 hours per month of community support. THE JOINT’s principals and employees will be available to offer volunteer services to the City in whatever capacity it needs. Support of Local Community Programs is generally viewed as community program support, organization support, outreach, education, etc. in Fresno and Fresno County. Community Benefits Program Social responsibility and good stewardship of our community are at the heart of THE JOINT’s business model. Our vision for excellence includes partnering with our neighbors to build stronger, healthier populations. We seek to enhance the lives of our patients and members of our surrounding community by creating living-wage jobs, supporting beautification programs to improve public spaces, and supporting local nonprofit organizations through fundraising and volunteerism as described below in more detail. The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 2 Monetary Donations to Local Non-Profit Organizations (Section 7.1) Community Benefits Fund To further its social mission, THE JOINT will contribute up to 0.5% of gross sales toward our Community Benefits Fund. THE JOINT will promote the Community Benefits Fund to local nonprofits (and those offering services locally) and through our website, giving organizations who work in our target areas of education, health, human services, and family resources, the opportunity to apply for funding by filling out a short, simple application explaining their operations. Semi-annually, our Advisory Board will award the majority of funds to local nonprofits (and those offering services locally) selected from among the applicant pool. Funds will be allocated in the following ratios: • 40% to be awarded to local nonprofits such as educational nonprofits in Fresno as well as to health, human services, and family resources nonprofits in Fresno. By offering these funding opportunities every six months, THE JOINT will be able to support a variety of local nonprofits over time, progressively strengthening the community fabric of Fresno; • 20% to support City-Sponsored Activities or Organizations (see below); • 20% to be awarded to the Fresno Community Reinvestment Fund in the form of In-Kind Donations (see below). Financial Support of City-Sponsored Activities or Organizations (Section 7.1) In-House Community Benefits Offerings As stated above, 20% of the Community Benefits Fund will be devoted to financial support of City-Sponsored Activities or Organizations. Although the City is free to use the support as they choose, if THE JOINT can suggest certain uses for the donations, we would suggest the money is used to help finance any of the following services: • Holistic Health Services including acupressure, acupuncture, massage, yoga, chiropractic, and Ayurvedic healing; • Outreach Program targeted toward special needs groups, including peer counseling sessions, Harm Reduction Drug Abuse Counseling, and peer support groups, senior citizens. In Kind Donations to the City or Other Charitable Organizations (Section 7.1) Fresno Community Reinvestment Fund As stated above, 20% of the Community Benefits Fund will be devoted to In Kind Donations to the City or Other Charitable Organizations. In addition, 20% of the Community Benefits Fund will be contributed to the Fresno Community Reinvestment Fund. The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 3 Collaboration with Non-profits As stated herein, 40% of the Community Benefits Fund will be awarded to local nonprofits such as educational nonprofits in Fresno as well as to health, human services, and family resources nonprofits in Fresno. By offering these funding opportunities every six months, THE JOINT will be able to support a variety of local nonprofits over time, progressively strengthening the community fabric of Fresno THE JOINT will engage in a multi-faceted community improvement programs that extend beyond its patient base and addresses the hopes and aspirations of the greater Fresno community consistent with the values of that community. Other Economic Incentives to the City (Section 7.1) Security and a Decrease in Vagrancy THE JOINT will have a security guard 24 hours a day, 7 days a week. THE JOINT’s security presence will result in a decrease in vagrancy, loitering and potential crime in the area. THE JOINT has spoken with one of its neighbors at the subject property who informed THE JOINT that it will be nice to have the cannabis business on site because the neighbor’s business could benefit from the security presence that THE JOINT will be providing. Price Supports for Low Income Members Who Are Residents of Fresno THE JOINT will offer substantial price supports for low-income Fresno resident members based on criteria of demonstrated need and challenges in paying to meet that need. The product provided will not be of less quality than that offered to the general patient base at market prices. Resource Conservation Because THE JOINT will tailor its operations to reduce its water consumption and carbon footprint and to the greatest extent practicable eliminate the generation of waste products, its operations serve the resource conservation goals promoted by the City as well. Commitment to Offering Employees a Living Wage (6.1.6) Union Shop and a Living Wage THE JOINT expects to hire many employees and, as soon as practicable, will seek to become a fully unionized shop. THE JOINT is currently considering entering into a Neutrality Agreement with a Local Labor Union and has will likely agree to a CBA that is among the most generous in the industry. THE JOINT plans to offer good single earner Union Jobs with benefits in line with facilities that provide consumables for human wear and consumption. THE JOINT’s understanding of California state cannabis laws is that if THE JOINT employ twenty (20) or more employees, THE JOINT must attest that it will enter into a labor peace agreement and will abide by the terms of the agreement, and that THE JOINT shall provide a copy thereof to the Bureau. THE JOINT will enter into and abide by the terms of a labor peace agreement as soon as THE JOINT employs 20 people or more. At this time, THE JOINT believes it will employ 5 -10 people The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 4 for the first several months of operation. By the second year of operations, THE JOINT expects to employ 20 or more employees. THE JOINT hereby commits to the City that my THE JOINT will enter into and abide by the terms of a labor peace agreement as soon as THE JOINT employs 20 people or more. Average Pay Rate for Entry and Mid-Level Positions Commitment to Hiring Local Employees (6.1.7) Local Hiring A key concern for THE JOINT is the creation of local jobs and local hiring. With regards to the employees it hires, it is the policy of THE JOINT to staff its operations with greater than 95% of such persons residing in the County of Fresno and seek to hire at least 50% of our employees from the City of Fresno. Employment Policies THE JOINT will focus its entry-level and unskilled positions on the pool of unemployed persons in Fresno and Fresno County, with a special focus on Fresno. The cannabis business will work with the California EDD and private placement job centers and search lists to accomplish this policy objective. Commitment to Utilizing Local Businesses (6.1.8) Local Purchases It is also the policy of THE JOINT to purchase products and services from local vendors in the county whenever possible. THE JOINT commits to the city that over 80% of supply and equipment expense (non-labor, non-rent expense) will be sourced from businesses within a 10- mile radius from our facility. Similarly, THE JOINT commits to utilizing local businesses for merchandising, advertising, and printing. THE JOINT will seek to use a local Fresno printer to print any of its promotional materials, such as business cards. THE JOINT will seek to advertise in local newspapers or other Fresno media outlets, such as radio stations. In this way, THE JOINT will use its revenues to create new jobs for the residents of Fresno and Fresno County. The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 5 Work for Local Contractors As a micro business, we will need to hire specialized contractors. These would likely require very specialized knowledge and training that many members of the local business community have and so we plan to hire as many local contractors as possible. In the initial development phase, we will hire a general contractor, a security system contractor and an electrician to pull the proper building permits and get the building up to the proper design specifications so we can comply with the Fresno cannabis business ordinance with regard to security, operation and record keeping. THE JOINT will make every effort to prioritize filling these positions with Fresno contractors and/or contractors from nearby Fresno County. We will also be creating our own website for marketing purposes. We will also look to hire a local web developer to help us create the website and content so we can gain a web presence before our opening. Sponsoring Low-Cost or No-Cost Legal Services (Section 7.1 and 7.1.1) THE JOINT will also offer a slate of additional programs and services to help boost the community through services to aid and support our citizens. These ancillary services will focus partnerships with local non-profits and community support organizations, price supports to seniors, the terminally ill, low-income individuals and veterans, and an eviction defense program assisting persons who may be facing eviction due to COVID-19. Expungement Clinics Offered to the Fresno Community Free of Charge (Section 7.1.1) One of our underlying mission at THE JOINT is to improve the lives of low-income people through equal access to justice. One way we will achieve that is by helping clients remove barriers that prevent them from housing and gainful employment, including their criminal record. We plan to hold free expungement clinics around Fresno that will allow us to work closely with clients in clearing their records, often working with local organizations to facilitate and staff these events. THE JOINT’s free expungement clinics will assist people in search of employment to clean up their criminal records and to understand employment law that relates to people with prior convictions. THE JOINT’s free expungement clinics can greatly increase a client’s chances of securing employment, as private employers can no longer see or ask about expunged convictions; state licensing agencies are also more likely to grant licenses to individuals who have had their records expunged. The added stability that comes from obtaining employment can go a long way to reducing rates of recidivism, as well as improving the quality of the client’s life overall. THE JOINT will look to partner with the Fresno Law Library to hold a free monthly expungement clinic, as well as other events serving the public: Our staff and volunteer attorneys will meet with clients, while the library will provide the physical space and technology. It is an alliance that fulfills both organizations’ goals as we share the same mission in terms of serving underserved communities and closing the justice gap. The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 6 Persons Harmed By Cannabis Criminalization THE JOINT recognizes the long-term impact that federal and state cannabis enforcement policies have had on low-income communities in the City of Pasadena. Accordingly, THE JOINT will institute its “On the Job Training Program, which is designed to support equal opportunity in the cannabis industry by making legal cannabis business ownership and employment opportunities more accessible to low-income individuals and communities most impacted by the criminalization of cannabis. THE JOINT’s “On the Job Training” Program is key to our growth and success. Two positions will be hired under this program to work with candidates who have been impacted by cannabis criminalization—directly or a family member of. Program includes the following benefits: a. Training by experienced manager b. Growth potential for managerial position within 24 months c. Paid time off for online or community college course study d. $10,000 bonus for completing a bachelors’ degree from any 4-year accredited college or university e. 75% tuition reimbursement for college course Outreach Services: Eviction Defense, Foreclosure Defense, Bankruptcy Services THE JOINT is aware that the Coronavirus Pandemic has caused many people to lose their jobs and many of these folks are now facing foreclosure and/or eviction, or even bankruptcy. Among THE JOINT’s community offerings will be the funding of eviction and/or foreclosure defense efforts following foreclosure or evictions by landlords for nonpayment of rent. The cannabis company will seek to retain local attorneys who have specialized skill and experience in this area of the law and who will offer their services pro bono or at greatly reduce rates to those in need. Environmental Sustainability (Section 7.1.2) THE JOINT is dedicated to conducting its operations in a manner that is ecologically sustainable from an energy consumption, water consumption and waste generation standpoint. THE JOINT is also committed to production of cannabis using natural, organic methods. In furtherance of these goals, THE JOINT will consult with and, as necessary, retain an Environmental or Architectural Engineer to assist with its Environmental Sustainability Plan and will, at a minimum, adopt and adhere to Best Management Practices that include methods, policies and procedures in the following areas: 1. As to maximizing energy efficiency, the implementation of measures that include the following: a. For lighting equipment and controls: i. Use of fluorescent/LED lighting in all areas of the premises; ii. Use of Energy Star lighting products; The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 7 iii. Use, where appropriate, of photo-controls for exterior lighting unless security needs dictate otherwise; b. For HVAC equipment and controls: i. Installation of vent dampers; ii. Analysis of systems and replacement of inefficient components; iii. Use of programmable thermostats and controls; iv. Sealing and insulation of ducts and hot water pipes; v. Use of Energy Star HVAC products; c. For the building envelope: i. Install and/or increase roof and wall insulation; ii. Control Air Leakage; iii. Install storm doors; iv. Insulate and seal skylights and window; v. Use of storm/insulated windows carrying the Energy Star label; d. Use of natural light: This space already has four skylights to supplement the electrical lighting with natural light and reduce the consumption of el ectrical light sources while maintaining minimum lighting requirements; e. Otherwise attempting to meet or exceed the energy efficiency requirements of the International Energy Conservation Code; 2. The retail facility will apply for and utilize any and all available SOCAL EDISON programs for free technical assistance in creating an energy efficient plan for construction of the building shell, tenant improvements, building systems and processes and effectuating the other goals stated in this part; 3. The retail facility will install solar panels on the building and draw on that during daylight hours and endeavor to sell excess electrical output back to the SOCAL EDISON grid; 4. The retail facility will have a goal to use electric vehicles for its internal and delivery transportation needs as soon as financially practicable; 5. The retail facility will use green building measures whenever feasible, utilizing materials such as denim insulation, non-toxic paint, and materials that do not off-gas. Once revenues permit, the retail facility will make donations to the Rainforest Action Network, which strives to keep the rainforests intact to combat global warming. 6. As to water quality and conservation measures: a. The retail facility will instruct, train and educate its staff as to water conservation measures, including the following methods: i. Avoiding water wasting techniques such as: 1. Allowing water to run during washing/rinsing procedures when no active washing or rinsing is occurring; 2. Using the toilet to flush and dispose of small items that are more properly disposed of using trash containers; ii. The identification and reporting to appropriate management members of leaks in any portion of the water delivery, distribution and plumbing The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 8 systems in and about the premises where the retail facility conducts its operations; iii. Utilizing any and all available programs and private resources tasked with water conservation efficiency and the education of the public regarding same; b. THE JOINT will employ water conserving equipment and materials, as follows: i. Water meter monitor including technology to identify leaks ii. The use of low flow equipment in sinks and toilets iii. The use of cleaning agents that do not rely on water iv. An HVAC system that collects and recycles condensate; c. The retail facility will train and instruct its staff in the following methods for preventing discharge to storm drains: i. Identification of chemicals and other substances that are inappropriate for discharge into storm drains; ii. Development of a spill prevention and control program; iii. Prohibiting the use of petroleum-based cleaning products, acids, phosphates or other similar agents or solvents that may produce liquid discharge or run- off; iv. Prohibiting the use of any products which contain heavy metals or which breakdown into heavy metals; v. Painting of any portion of the roof of the building comprised of galvanized sheeting with an enamel paint; vi. Proper storage and segregation of all cleaning and sanitizing products so as to prevent leakage; vii. Frequent sweeping of the premises; viii. Placement of dumpsters and other waste containers in areas that are not directly exposed to rainwater or with covers that are watertight; ix. Posting of warnings about the premises not to dump waste fluids (or products containing or contaminated with same) in storm drains or areas of the premises that lead to storm drains; d. Except for statutorily specified cleaning agents, the retail facility will restrict the use of cleaning agents to use non-toxic materials such as vinegar, baking soda and environmentally-friendly disinfectants in cleaning and sanitizing operations; 7. As to solid resource conservation: a. Using, where available, paper, plastic and other containers that have been produced using recycled materials, identifying vendors of such products, and training staff as to the use of such vendors. We will endeavor to minimize packaging and waste wherever possible. b. Instituting a recycling program whereby: i. Staff are trained as to recycling programs operated by local waste management providers and private recycling providers; The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 9 ii. Used or discarded paper, plastic or other items are placed for pick up and recycling by waste management providers or transported to private recycling centers. 8. Disposal and Destruction Program a. THE JOINT will endeavor to reduce, to the greatest extent possible, the generation of any excess marijuana product or marijuana plant. The retail facility anticipates that it will be a near zero waste facility in this regard. b. As to the material that cannot be used in such a manner and which therefore must be discarded or destroyed, the retail facility will use the following approach: i. THE JOINT will identify one or more local landfills or transfer stations that will receive marijuana plant waste materials and will further identify one or more facilities that receive organic or other waste for energy generation purposes; ii. The retail facility will identify an employee responsible for segregating and disposing of marijuana plant waste matter; iii. Any cannabis or cannabis plant debris that is designated for destruction or disposal will be identified by date, batch and volume by the Inventory Control System and will be ground, milled or otherwise processed into a gauge where the particles can be readily combined with another substance so as to render the ground/milled/processed marijuana plant material non- viable; iv. Once processed for disposal, the material to be discarded or destroyed will be combined with mulched cardboard, used plant soils or other non-toxic inert material so as to render unusable the marijuana plant matter contained therein; c. Following the rendering of any potentially usable marijuana non-viable by the above-described method, the retail facility employee responsible for the destruction/disposal of the material will isolate and identify said material pending transfer to a designated waste or energy generation facility; d. At the time of transfer, the retail facility employee responsible for the destruction/disposal will prepare a tentative trip plan identifying the matter to be transported, the employee transporting said matter, the destination where the matter is to be transported and the route to be used in transporting such matter; 9. The retail facility will make every effort to transact cannabis and related products that meet the Federal Standard for designation as “organic” by obtaining suppliers that use only OMRI-Certified grow media and avoid the use of any insecticides, herbicides or a rtificial growth regulators. Information for Recycling and Waste Disposal, Including Process and Wash Water Disposal THE JOINT will be a cannabis retail business with an ancillary delivery service. THE JOINT will not be cultivating cannabis or manufacturing cannabis products. Accordingly, THE JOINT does The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 10 not anticipate generating much waste. We will not have any fertilizers or chemicals and will not generate any of the cannabis waste associated with a cannabis cultivation or manufacturing facility. We will not be packaging any cannabis or cannabis products as all cannabis and cannabis products we receive will have been packaged by the distributor prior to being transported to our facility. As a result, THE JOINT does not anticipate generating waste or wash water. No water containing potential pollutants or other material shall be discharged from the property on which the business is located into the street, gutter, or storm drain inlet. Recycling Practices The City of Fresno requires business entities that generate more than four cubic yards of waste per week to implement mandatory recycling programs, following a measure in Assembly Bill 32 that was recommended by the Air Resources Board and adopted by CalRecycle in 2012. Pursuant to these requirements, THE JOINT shall: • Consult with the City of Fresno’s recycling waste service provider, to schedule waste characterization specific to the proposed location and facility • Implement the recycling strategies and operational procedures recommended by the recycling waste service provider • Contact any Environmental Projects Specialist in the city to determine supplemental waste reduction and recycling strategies that may be appropriate Furthermore, with respect to the renovation and build-out of the proposed delivery facility, THE JOINT will ensure that a minimum of 50% of the construction waste generated at the site is diverted to recycling or salvage. Occupational Health and Safety Standards – Sanitary Practices The business facility will meet or exceed all OHSA standards for safety in the work place. The facility will offer a clean, safe and comfortable environment for its employees and patients. In the event the business determines that a staff member has a health condition, such as COVID19, that may affect the safety or quality of the cannabis it produces, or the health of other staff members, it will place the affected person on medical leave until such time as the health condition of the employee no longer presents a threat. Utilizing Vacant Buildings, Brownfields land, Or Blighted Areas (Section 7.1.3) THE JOINT has not yet secured their location but is actively looking for a location at this time. To the extent possible, THE JOINT will attempt to secure a location that utilizes vacant buildings, Brownfields land, or blighted areas. Design Concept THE JOINT’s design concept will be integrated into whichever neighborhood we are in. THE JOINT will not have any tawdry elements to its design. We understand that maintaini ng a The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 11 professional appearance that integrates into the existing urban fabric and architectural landscape is of paramount importance to the City, as it is to us as well. THE JOINT proposed designs represent conceptual drawings which could be updated depending on the final location acquired. THE JOINT will seek acceptance by the City prior to implementing any of these plans. Revitalization The principals of THE JOINT will do their best to keep the premises safe, clean, and vital for years to come. The presence of THE JOINT will decrease the amount of vagrancy, loitering, harassment, and street dealing, which could have negatively impacted the entire street as an important destination. A dispensary in this location with its corresponding security team would greatly help eliminate any of these types of problems. TH JOINT will choose a location in which the vicinity of the proposed location may need revitalization. THE JOINT can contribute greatly in this regard and can help bring the area back to its former glory. THE JOINT will become a known entity that will be an integral part of the fabric of Fresno for decades. The principals of THE JOINT will help revitalize the street and surrounding areas. THE JOINT will be a strong force in preserving the commerce and the culture of one of Fresno’s most iconic areas and will continue to do so. Enabling THE JOINT’S business model by adding a dispensary to this site would not only create a good deal of new jobs but would also be instrumental in bringing much needed foot traffic and energy back to the area and would be an excellent fit within our neighborhood. The principals of THE JOINT will endeavor to make the area safe, bright and busy for years to come and will make THE JOINT a Fresno institution. Our dispensary will be a perfect fit for the neighborhood and will enable the area to maintain its position as a cultural center of Fresno County. A dispensary in this location would therefore be more than merely compatible with our neighborhood; it would be a tremendous boost in facilitating the economic recovery and sustainability of Fresno. Nuisance And Crime Prevention THE JOINT will create and experience which contains professional security operations, designed to help reduce crime in the surrounding area. THE JOINT will offer a safe and secure point of access for patients, removing the need for these suffering individuals to go to the illicit market for their medicinal need and therefore reducing illegal sales of cannabis. The dispensary will also have a comprehensive security plan in place, giving all businesses in the immediate vicinity of THE JOINT an additional layer of security. THE JOINT’s Security personnel will assist local law enforcement by reporting any suspicious activity in the area, not just at the dispensary, and by sharing surveillance footage or other evidence when available. In addition, THE JOINT will employ Crime (and nuisance) Prevention Through Environmental Design (CPTED) techniques. These techniques are sometimes referred to as a “broken windows” The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 12 approach. By addressing minor issues (“broken windows”) quickly and thoroughly, THE JOINT will maintain and even raise the standards of the neighborhood. All areas within 100 feet of the facility will be under full video surveillance around the clock. Security personnel will patrol the entire property both to assist patients in entering and exiting the facility, and to prevent loitering, littering, graffiti, excessive noise and other nuisance activity on or around the property. Security guards will perform litter removal in the surrounding area daily and will prevent smoking within 25 feet of every entrance, window, and intake vent. No consumption of cannabis will be permitted on interior or exterior premises. Any nuisance behavior by members is a violation of THE JOINT. THE JOINT will go beyond the mere mitigation and prevention of nuisance, by allocating resources to improve the neighborhood in which we are located. The exterior of the dispensary building will be regularly maintained and cleaned, and the façade will be tastefully designed to complement the aesthetics of the surrounding architectural design. Integration of Security Measures The Joint 559 COMMUNITY BENEFITS AND INVESTMENTS PLAN 13 Public Health Outreach and Educational Programs (Section 7.2) Substance Abuse Education Among the public services programs offered by THE JOINT will offer sessions that focus specifically on substance abuse, misuse and overuse. This will be a public health outreach consisting of educational programs that outlines the risks of youth use of cannabis and that identifies resources available to your related to drugs and drug addiction. Such programs will be a regular part of the dispensary’s patient care curriculum. Professional Services The on-site presence of THE JOINT’s Services Management Team will enable THE JOINT to offer a very high level of patient care. Classes and services could include some or all of the following: a) Pain Management clinics; b) Group and Individual counseling sessions; c) Wellness support groups; d) Medical cannabis use and awareness classes; e) Muscular and massage therapies; f) Meditation and relaxation classes; g) Nutritional counseling; h) medical and psychological referrals; i) Health information and community resource information; j) Access to books and other resources; k) Outreach to senior programs and l) Patient care counselor who assists patients in finding alternative modalities to address Medical cannabis needs and referrals to appropriate health professionals. Patient Community Services THE JOINT will offer a selection of reliable, lab-tested cannabis medicines and patient services that will make THE JOINT the most respected dispensary in Fresno. THE JOINT will strive to understand patients’ initial and emerging product preferences. Offerings will include CBD-rich varieties and a wide range of non-smoked products including tinctures, tonics, sublingual sprays, capsules, troches, balms, and lotions. Approximately 250 different products will be regularly available. Neighborhood Compatibility Plan The Joint 559 1 Neighborhood Compatibility Plan The Joint 559 The Joint 559 (“The Joint”) understands that being an asset to the neighborhood is a top priority. THE JOINT’s aim is to create an attractive and well-maintained building for the proposed cannabis retail business. THE JOINT’s staff will clean daily to eliminate trash and other nuisances. In addition, THE JOINT will initiate community beautification projects to widen the beneficial impact of the area. Organizing and participating in monthly neighborhood cleanups in surrounding neighborhoods throughout the City of Fresno will be a staple of THE JOINT’s commitment to be integrated into the community. The proposed ventilation system will mitigate any odors so that immediate neighbors are not affected. Longevity as a business is dependent upon creating and maintaining goodwill with neighbors and the City of Fresno, so THE JOINT pledges to conduct business mindfully to avoid any negative impacts on neighbors and the surrounding arear. THE JOINT pledges to take immediate corrective steps to fix the situation should any operations unintentionally cause a problem. THE JOINT shall be operated to ensure neighborhood compatibility and shall take all possible steps to ensure that our cannabis retail operation and our employees do not create neighborhood disturbances. THE JOINT is considering providing flyers to neighboring property owners and surrounding businesses to inform them of the future business operations and to demonstrate community support. In addition, aesthetic and operational compatibility, sidewalk security, noise management, and odor mitigation will prevent THE JOINT from becoming a nuisance or having negative impacts on its neighbors. THE JOINT will provide an appealing addition to Fresno by maintaining excellent relationships with the community and its' surrounding neighbors. THE JOINT will maintain the integrity and exterior structure of the proposed location to prevent the cannabis retail facility from causing any negative aesthetics to the neighborhood. Renovations will be conducted indoors to feature state of the art technology with forward-looking green practices. THE JOINT shall be of an architectural and visual quality and character which harmonizes with, and enhances, the surrounding area. The design will avoid unduly large or obtrusive signs, un-landscaped parking areas, unduly bright lighting, or design features which encourage loitering. The goal of THE JOINT is to make the location appear just like any other business in the area and not draw unneeded attention to the proposed site. The site will provide sufficient parking to prevent an adverse impact on adjacent properties or surrounding neighborhoods. Through diligent management of daily operations, THE JOINT will ensure that the cannabis retail facility will not be a nuisance to the neighbors or negatively impact the neighborhood. THE JOINT will manage the sidewalk with a security team to monitor cleanliness and loitering. The security team will provide a highly visible presence and deterrent to potential criminal activity by ensuring only those visiting the facility are allowed entry for Neighborhood Compatibility Plan The Joint 559 2 legitimate business. This team will be vigilant to suspicious activity. Cleanliness is also managed constantly with checks throughout the business day. Graffiti shall be removed from the premises within 24 hours of its occurrence, or as requested by the City. THE JOINT is committed to maintaining direct and open communication with any active Neighborhood Association Council of Fresno. THE JOINT will align itself with the efforts of the Neighborhood Association Council to improve the quality of life and safety through maintaining and ensuring: • Street cleanup • Neighborhood Beautification • Public Safety THE JOINT will make best efforts to avoid any noise pollution from its facility and immediate surrounding areas. THE JOINT will implement strict rules for the staff and visitors that are entering or departing our facility. These rules include, but are not limited to: • Restrict the volume or car stereos and/or portable sound systems while visiting premise. • Limiting the noise of any in-house background music that would play during business hours only. • Warnings for unnecessary honking, tire screeching, yelling or any other noise deemed disruptive, unnecessary, or a nuisance. • THE JOINT will comply with all local and state noise standards during construction and operation. The facility will include a properly permitted and approved HVAC system utilizing Activated Carbon Filtration (ACF). ACF involves forcing the air circulating within the HVAC system through activated carbon filters in order to filter out odors and pathogens that may pose a public nuisance or health risk. This method is highly effective for eliminating odor and can be used in combination with other technologies if needed. The business identification signage for THE JOINT shall conform to the requirements of the City of Fresno Codes, including: 1. Seeking the issuance of a City sign permit. 2. No signs placed on the premises of a commercial cannabis business shall obstruct any entrance or exit to the building or any window. 3. Each entrance to a commercial cannabis business shall be visibly posted with a clear and legible notice indicating that smoking, ingesting, or otherwise consuming cannabis on the premises or in the areas adjacent to the commercial cannabis business is prohibited. Neighborhood Compatibility Plan The Joint 559 3 4. Business identification signage shall be limited to that needed for identification only and shall not contain any logos or information that identifies, advertises, or lists the services or the products offered. The commercial cannabis business will not advertise by having a person holding a sign and advertising the business to passersby, whether such person is on the premises of the commercial cannabis business or elsewhere including, but not limited to, the public right-of-way. 5. Signage will not be directly illuminated, internally or externally. No banners, flags, billboards or other prohibited signs will be used at any time. 6. In accordance with state late and regulations or as stipulated in the City of Fresno, commercial cannabis business permit, holders of a commercial cannabis business permit shall agree that, as an express and ongoing condition of permit issuance and subsequent renewal, the holder of the permit shall be prohibited from advertising any commercial cannabis business located in the City of Fresno utilizing a billboard (fixed or mobile), bus shelter, placard, aircraft, or other similar forms of advertising, anywhere in the state. Design Concept THE JOINT’s design concept will be integrated into our neighborhood. THE JOINT will not have any tawdry elements to its design. We understand that maintaining a professional appearance that integrates into the existing urban fabric and architectural landscape is of paramount importance to the City, as it is to us as well. THE JOINT will seek acceptance by the City prior to implementing any design plans. Revitalization The principals of THE JOINT will do their best to keep the premises safe, clean, and vital for years to come. The presence of THE JOINT will decrease the amount of vagrancy, loitering, harassment, and street dealing, which could have negatively impacted the entire street as an important destination. A cannabis retail facility in this location with its corresponding security team would greatly help eliminate any of these types of problems. Nuisance And Crime Prevention (Section 3.2) THE JOINT will create and experience which contains professional security operations, designed to help reduce crime in the surrounding area. THE JOINT will offer a safe and secure point of access for its employees and licensed distributors. The cannabis retail facility will also have a comprehensive security plan in place, giving all businesses in the immediate vicinity of THE JOINT an additional layer of security. THE JOINT’s Security personnel will assist local law enforcement by reporting any suspicious activity in the area, not just at the cannabis retail facility but also the surrounding areas, and by sharing surveillance footage or other evidence when available. In addition, THE JOINT will employ Crime (and nuisance) Prevention Through Environmental Design (CPTED) techniques. These techniques are sometimes referred to as a “broken windows” approach. By addressing minor issues (“broken windows”) quickly and thoroughly, THE JOINT will maintain and even raise the standards of the neighborhood. Neighborhood Compatibility Plan The Joint 559 4 All areas within 100 feet of the cannabis retail facility will be under full video surveillance around the clock. Security personnel will patrol the entire property to prevent loitering, littering, graffiti, excessive noise and other nuisance activity on or around the property. Security guards will perform litter removal in the surrounding area daily and will prevent smoking within 25 feet of every entrance, window, and intake vent. No consumption of cannabis will be permitted on interior or exterior premises. Any nuisance behavior by members is a violation of THE JOINT. THE JOINT will go beyond the mere mitigation and prevention of nuisance, by allocating resources to improve the neighborhood in which we are located. The exterior of the cannabis retail building will be regularly maintained and cleaned, and the façade will be tastefully designed to complement the aesthetics of the surrounding architectural design. Community Relations Representative & Proactive Response to Complaints (Sections 3.1 and 3.2) THE JOINT 559 will provide the Chief of Police and/or City Manager or his/her designee(s) with the name, telephone number (both land line and mobile, if available) of an on -site employee or owner to whom emergency notice can be provided at any hour of the day. This person will be Angelica Garcia and she will be the community relations person to whom the city can provide notice if there are operating problems associated with the commercial marijuana facility or refer members of the public who may have any concerns or complaints regarding the operation of the commercial marijuana facility. THE JOINT will establish and/or join a local association of Cannabis Businesses to at a minimum (1) communicate with the community in general and residents and other businesses closely adjacent to active Cannabis Businesses, (2) represent the Cannabis Businesses before the City Council and city staff, (4) seek for opportunities to support worthy individual and community needs, (5) create opportunities for the public to better understand the operations and contributions of the industry. THE JOINT will proactively address and respond to complaints related to noise, light, odor, litter, vehicles and/or pedestrian traffic. THE JOINT will provide the name, telephone number, and email address of a community relations contact to whom notice of problems associated with THE JOINT can be provided. THE JOINT will also provide the above information to all businesses and residences located within one thousand hundred (1000) feet of THE JOINT. The neighbors will be encouraged to quickly lodge any complaints with THE JOINT so that we can address and respond to the complaint in a timely manner. After the first year of operation, the owner, manager, and community relations representative from THE JOINT will meet with the Chief of Police and/or City Manager or his/her designee(s) when and as requested by the Chief of Police and/or City Manager or his/her designee(s). THE JOINT will develop a city approved public outreach and educational program for youth organizations and educational institutions that outlines the risks of youth addiction to cannabis, and that identifies resources available to youth related to drugs and drug addiction. Neighborhood Compatibility Plan The Joint 559 5 Inspection and Enforcement The City's Police Department, Fire Department, Code Enforcement and Building Department, and Finance Department charged with enforcing the provisions of the Fresno Municipal Code, or any provision thereof, may enter the location of THE JOINT at any time, without notice, and inspect the location of THE JOINT as well as any recordings and records required to be maintained pursuant to this Title or under applicable provisions of State law. THE JOINT owners, operators and employees will not impede, obstruct, interfere with, or otherwise not allow, the City to conduct an inspection, review or copy records, recordings or other documents required to be maintained by a commercial cannabis business under this Title or under state or local law. Further, THE JOINT owners, operators and employees will not conceal, destroy, deface, damage, or falsify any records, recordings or other documents required to be maintained by THE JOINT under this Title or under state or local law. The Chief of Police and/or City Manager or his/her designee(s) charged with enforcing the provisions of this Title may enter the location of THE JOINT at any time during the hours of operation and without notice to obtain samples of the cannabis to test for public safety purposes. THE JOINT expressly allows any samples obtained by the Fresno to be logged, recorded, and maintained in accordance with established procedures by the Fresno Chief of Police and/or City Manager or his/her designee(s). Integration of Security Measures THE JOINT plans to integrate its security enhancements in the physical design so as not to be noticeable by customers or the public. The "form follows function" tenet of 20th century architecture holds that the specific functional requirements of a building should determine design criteria. A structure must permit efficient job performance, meet the needs of the user, and protect the user from safety hazards and criminal acts. In practice, however, the tenet is often reversed when design is focused on form rather than on function. Aesthetics, preferences for construction materials, and harmony with surroundings have predominated at the expense of the activities planned to occur within the structure. THE JOINT will retain architects with instructions not to sacrifice the building’s openness in retrofitting for security. No bars will be placed on windows and video cameras will be positioned in discreet locations. Our architects will evaluate the plans for obvious spots where assaults, mugging, break-ins, and other crimes of opportunity may exist. Our architecture and security will follow “Crime Prevention Through Environmental Design”, which is a crime-environment theory based on the proposition that the appropriate design and application of the building and surrounding environment can improve the quality of life by deterring crime and reducing the fear of crime. THE JOINT’s security and building design will strive to attain openness and free-flowing movement. Security features will not be obtrusive or lacking in aesthetical value. Neighborhood Compatibility Plan The Joint 559 6 Air Quality/Odor Control (Sections 3.3, 3.4, 3.5 and 3.6) THE JOINT desires to be a good neighbor includes avoiding nuisances of odor that may be generated by its operations. All spaces within THE JOINT that contain cannabis products will use a highly effective odor-scrubbing carbon filtration system for air circulation and ventilation to minimize odor inside the building. Rooms containing cannabis will be kept under negative pressure, so that odors do not escape when or if doors or windows are opened. Any odors produced by the presence of cannabis will be completely eliminated prior to being exhausted from the building through the use of high-quality air filtration system. Air circulation within THE JOINT’s premises will not impact the employee’s health and welfare, nor those in the surrounding businesses. Of utmost importance to THE JOINT is the ability to control, regulate and virtually eliminate any noxious odors emanating from the subject facility. Equipment such as air filters, carbon scrubbers and ozone generators will be part of our state-of-the-art facility. Air filtration systems allow for a maximum mitigation of odors. By replacing the standard HVAC system with activated carbon filters, the activated carbons target odors and rid the space of debris and dust. THE JOINT’s facility will employ air filtration systems that are used in medical-grade environments and allow for the elimination of almost all scents emanating at the subject property. The facility will similarly consider new technologies in the field such as polarized media filters which utilize electromagnetic polarization to capture almost all dust and debris emanating from the facility. Carbon filters are particularly useful in large storage areas where particles and plant debris are released into to air. Carbon scrubbers will be used in each room of the facility to rid the subject property of any odors, therefore attacking any odor issues at the source. Ozone generators also act as a valid option by using ultra violet bulbs or corona electrical discharges to produce o-zone gases and will be considered in the facility. To remediate any concerns of odor, the subject property shall have odor absorbing ventilation and exhaust system to prevent noxious odors from existing portions of the facility and not be detectable outside the subject property, or at adjacent property or public rights of way. THE JOINT has designed the following Odor Control Plan with its HVAC Vendor to mitigate against such nuisances: A. The space will be conditioned using multiple split heat pump systems of various capacities and a ductless mini-split system. Each of the split-systems, excluding the ductless mini- split system, are equipment with unit-level pleated filters. Fresh air is brought to each of the ducted systems via a fresh air duct that is run to the exterior of the structure. Fresh air quantities are calculated using the American Society of Heating and Refrigeration Engineers (ASHRAE) Standard 62.1. This fresh air will tend to pressurize the space; B. The space is designed for a negative pressure to contain internal odors. To accomplish this, an in-line, belt-driven exhaust fan is provided to remove the amount of fresh air provided for the occupants and an additional amount that will ensure a negative pressure within the space; Neighborhood Compatibility Plan The Joint 559 7 C. To prevent odors from escaping the structure, the in-line exhaust fan is equipped with a filter section loaded with 30 lbs. of activated carbon, in a rack-mounted configuration. Activated carbon is an extremely effective absorptive odor control substance. An ozone generator will be placed upstream of the carbon filters, in the housing assembly. Ozone (O3) is an effective odor control mechanism. In this case, it is used to control outgoing airstream odors and recharge the activated carbon filter media, extending the life of the media. D. Once systems are running, systems shall be air balanced to ensure design air flows for supply, fresh air, and exhaust air base values have been met. Once completed, a differential pressure gauge shall be used to ensure that a negative building static of no less than 0.05” of negative building static has been achieved. A maximum negative building static shall not exceed 0.15”. An initial test with a trade-specific calibrated sensor establishes the base- line of operation for odors in the out-going air stream. E. Once odor control has been established, periodic testing shall be conducted to ensure that the odor control systems are operating to maintain the baseline. As the filters age, replacement will be required and will be conducted, as determined by the calibrated sensor on the test equipment. F. Testing will be done, in the absence of other standards, in accordance with Standardized Odor Measurement Practices for Air Quality Testing. Testing shall be done using a field Olfactometer, calibrated in accordance with ASTM E544-75 and AWMA odor control standards, using the Scheduled Monitoring protocol. G. Planned, scheduled monitoring on a daily walk-about visit around the exterior of the site, near the exhaust system. Data to be compiled and compared to established norms. Using a 5-point OIRS (Odor Intensity Reference Scale), compare daily readings. If values equal 3 on the 5-point scale, carbon-filtration exhaust system to be evaluated and repaired, as required. Evaluation shall include, but not be limited to, fan operation, distribution system integrity, and filter media effectiveness. Compliance With Fresno General Plan Regarding Odor Control Odor control devices and techniques will be incorporated in THE JOINT to ensure that odors from cannabis are not detectable off-site. THE JOINT will provide a sufficient odor absorbing ventilation and exhaust system so that odor generated inside THE JOINT that is distinctive to its operation is not detected outside of the facility, anywhere on adjacent property or public rights-of- way, on or about the exterior or interior common area walkways, hallways, breezeways, foyers, lobby areas, or any other areas available for use by common tenants or the visiting public, or within any other unit located inside the same building as THE JOINT. As such, THE JOINT must install and maintain the following equipment, or any other equipment which the Community Development Director or his/her designee(s) determine is a more effective method or technology: (1) An exhaust air filtration system with odor control that prevents internal odors from being emitted externally; Neighborhood Compatibility Plan The Joint 559 8 (2) An air system that creates negative air pressure between THE JOINT's interior and exterior, so that the odors generated inside THE JOINT are not detectable on the outside of THE JOINT. To comply with California state cannabis laws, THE JOINT will manage all cannabis waste in compliance with division 30, part 3, chapters 12.8, 12.9 and 13.1 of the Public Resources Code. In addition, THE JOINT will obtain all required permits, licenses, or other clearances and comply with all orders, laws, regulations, or other requirements of other regulatory agencies, including, but not limited to, local health agencies, regional water quality control boards, air quality management districts or air pollution control districts, local land use authorities, and fire authorities.1 HVAC technologies to be implemented by THE JOINT will also include the following, which technologies have been proven to provide clean air and odor control for casinos and other establishments: ● Air Purification Systems and Indoor technology ● Neutralizing Odor Systems ● Charcoal Filtration Systems THE JOINT will abide by the State recommended regulations and all air released from the subject property will be released in a clean, ionized and filtered state. It is of utmost importance to THE JOINT that we leave a negligible impact on the surrounding environment and hopes to be as green and environmentally friendly as possible. 1. Ventilation Ventilation systems are put in place not only for odors and smells but also to circulate the air within the facility as a result of a large buildup of CO2. Proper ventilation is of utmost importance. THE JOINT will use ionized air filters in direct combination with charcoal fitters within all parts of the facility that need constant ventilation. These systems will undergo daily monitoring and auditing to ensure maximum efficiency. 2. Heating, Air Conditioning and Humidity Control THE JOINT facilities will be kept within a comfortable range of 65-73 degrees ºF and each room temperature is logged and noted in order to make sure that the stored products maintain their integrity. THE JOINT will also employ the use of state-of-the-art dehumidifiers monitored closely by staff and prevent decomposition of stored product. Specific Odor Control Per Room: 1. Storefront - Retail a. Approximately 1800 square feet / @ 15,000 cubic feet. 1 California Code of Regulations Title 3, Division 8, § 8308 Neighborhood Compatibility Plan The Joint 559 9 b. 5 Can 150 Filters. c. Air in retail area scrubbed every 1.25 minutes. 2. Hallways a. Approximately 245 square feet / @ 2500 cubic feet. b. 1 Can 150 Filter. c. Air in Hallway will be scrubbed every 2.1 minutes. Neighbor Outreach (Sections 3.1 and 3.2) THE JOINT’s principal, Angelica Garcia plans to conduct outreach to the neighbors to ensure that they are comfortable with the proposed business and will inform them that THE JOINT intends to operate discreetly and in such a way that none of the neighbors will be adversely affected by the cannabis business. With the help of her attorney, Ms. Garcia will mail out a letter to all businesses and residences within a 2-mile radius of the proposed location. The letter will inform the neighbors that a cannabis cultivation facility was applying for a CUP. The letter was will invite all neighbors’ feedback. The letter also informed all neighbors that: “Our client would like you know that they will do everything in their power to keep the operation from disturbing our neighbors or from otherwise being a nuisance. We will also be contributing 0.5% of our gross revenues towards beautification and improvement projects in our area that will directly benefit all of our neighbors. We also want to keep an open line of communication with our neighbors so that if at any time our operation causes any disturbances, we want you feel free to let us know as soon as possible so that corrective action may be taken.” The letter will request neighbor feedback to be submitted and provide a stamped and addressed envelope to return all questions or concerns. The facility will have a large enough area to include ample parking for all employees and licensed distributors in such a way that it will not interfere with any neighbors as there is plenty of parking for our THE JOINT employees. Waste Management Plan (Section 3.7) DESTRUCTION OF CANNABIS PRODUCTS 1. Purpose The purpose of this SOP is for the safe and appropriate storage and disposal or destruction of any damaged or infected cannabis flower, manufactured cannabis products offered for sale, and any and all byproducts not suitable for consumption. It should be noted that The Joint 559 (“THE JOINT”) is a cannabis retail dispensary that will not be cultivating or manufacturing any of its own cannabis products. Neighborhood Compatibility Plan The Joint 559 10 2. Scope All waste, including waste composed of or containing finished cannabis, such as infused products and extracts, will be stored, secured, and managed in accordance with applicable state and local statutes, ordinances, and state regulations. The facility shall maintain a record of all disposals for a minimum of six years. Facility management will ensure proper training and implementation of destruction and disposal procedures and protocols. 3. Prerequisites All employees working in the facility will be taught the process for destruction of unusable cannabis or its byproducts. Employees will be taught how to weigh and account for waste, how to package it, protocols for rendering it inert, and safety protocols for its disposal. 4. Responsibilities A minimum of seven days prior to rendering the secured green waste unusable and disposing of said waste, an agent from the facility team shall utilize the seed to sale tracking system. Immediately before the green waste is processed for disposal it shall be re-weighed by the quality control manager and at least one other staff member and all information will be recorded including, weight, time, date, employee names and signatures. After capturing all pertinent data and entering it into the company’s seed to sale software, all waste shall be rendered unusable and prepared for either compostable or non-compostable disposal. The facility compliance manager shall oversee the entire waste disposal process and ensure it is done properly. All waste processing and disposal shall be recorded on video surveillance. 5. Procedure Materials Needed for Processing Green Waste Compostable materials: Food waste, yard waste, vegetable grease or oils, other waste approved by the Department of Agriculture such as biodegradable paper products. Non-compostable materials: Paper waste, cardboard waste, plastic waste, soil or other waste approved of by the Department. Process for Rendering Cannabis Unusable Place cannabis in grinder and mulch until all pieces are smaller than .5 centimeters in length. Mix the cannabis thoroughly with other ground materials so that the resulting mixture is a minimum of 50% non-cannabis waste or other waste approved by the department. Disposal of Cannabis Waste Rendered Unusable Once waste has been processed in a manner consistent with company policy and department policy, it will be transported to a permitted waste facility for final disposal by a permitted waste hauler to one of the waste facility types listed. All compostable waste will be delivered to compost, anaerobic or other facility approved by the jurisdictional health department. All waste prepared for Neighborhood Compatibility Plan The Joint 559 11 non-compostable disposal will be delivered to an approved landfill, incinerator, or other facility after approval from the jurisdictional health department. Liquid Waste The facility compliance manager will ensure all liquid waste is disposed of in a manner consistent with requirements placed within the state’s regulations and parts of the Environmental Protection Act specific to the substance being disposed of. Hazardous Waste The facility compliance manager will ensure that all hazardous and chemical waste is disposed of in a manner consistent with federal, state, and local laws. 6. References All people responsible for waste disposal must follow the facility’s SOP for disposal. In the event of any issue, the compliance manager will review the state’s regulations to ensure our facility complies with them. 7. Reporting All waste and unusable product shall be weighed, recorded and entered into the inventory system prior to rendering it unusable. Verification of this event shall be performed by an agent-in-charge and conducted in an area with video surveillance. Electronic documentation of destruction and disposal shall be maintained for a period of at least six years. The facility manager will ensure that the proper paperwork is provided to the state and upper management. Destruction of Cannabis Products Prior to Disposal Pursuant to State Code § 5054, THE JOINT 559 will not dispose of any cannabis goods as cannabis waste pursuant to unless the cannabis goods have been removed from their packaging and rendered unrecognizable and unusable. DESTRUCTION PROTOCOLS 1. Purpose All of the product sold by the delivery business, and any byproducts created from either flower or cannabis generated oils and distillates, have the potential to test too high in acceptable levels of different contaminants. This SOP provides the protocols necessary for destruction of product pursuant to state and local law and regulations. 2. Scope Cannabis and manufactured cannabis products shall be destroyed by rendering them unusable following the methods set forth in this SOP. 3. Prerequisites Neighborhood Compatibility Plan The Joint 559 12 At least seven days prior to rendering cannabis unusable and disposing of it, the facility shall notify the Department of Health. Notification shall include the date and time the cannabis will be rendered unusable and disposed. Given that the destruction of cannabis occurs on the same day and time weekly, communication of that day and time shall be sufficient to comply with this section. Any change in the date and time must be communicated to the Department of Health. 4. Responsibilities The facility manager must monitor all destruction of cannabis and by products, and the quality assurance manager must be present to ensure the proper methods are followed. 5. Procedure The allowable method to render cannabis waste unusable is by grinding and incorporating the cannabis waste with other ground materials so the resulting mixture is at least 50% non-cannabis waste by volume. Other methods to render cannabis waste unusable must be approved by the Department of Health before implementation. Material used to grind with the cannabis falls into two categories: compostable waste and non-compostable waste. Compostable Mixed Waste: Cannabis waste to be disposed as compost feedstock or in another organic waste method (for example, anaerobic digester) may be mixed with the following types of waste materials: • Food waste; • Yard waste; • Vegetable based grease or oils; or • Other wastes as approved by the Department of Health (e.g., agricultural material, biodegradable products and paper, clean wood, fruits and vegetable plant matter). Non-compostable Mixed Waste: Cannabis waste to be disposed in a landfill or by another disposal method may be mixed with the following types of waste materials: • Paper waste; • Cardboard waste; • Plastic waste; • Soil; or • Other wastes as approved by the Division (e.g., non-recyclable plastic, broken glass, ect.). Cannabis waste rendered unusable following the methods described in this section can be disposed of. Disposal of the cannabis waste rendered unusable may be delivered to a permitted solid waste facility for final disposition. Examples of acceptable permitted solid waste facilities include: Neighborhood Compatibility Plan The Joint 559 13 • Compostable Mixed Waste: Compost, anaerobic digester or other facility with approval of the Health Department. • Non-compostable Mixed Waste: Landfill, incinerator or other facility with approval of the Health Department. 6. References All protocols for destruction are listed in the state’s regulations. The facility manager, in conjunction with corporate counsel, will interpret the regulations and provide the proper steps and SOP’s for product destruction. 7. Reporting All records of product destruction, including videotapes of the process, seed to sale software reports of the weight, volume and other information must be retained for si x years. All reports are signed off by the facility manager and routed to upper management, accounting, quality assurance and security. DESTRUCTION STORAGE 1. Purpose The purpose of this SOP is to document the procedures for storage of waste cannabis and byproducts awaiting destruction. 2. Scope This SOP covers the proper recording and segregation of waste cannabis and byproducts, and the proper documentation, labeling and movement of the product to secure storage. 3. Prerequisites As part of a daily physical inventory, a facility supervisor will review and verify that all waste materials are accounted for and correctly filed in the inventory control system. This review will be logged in the inventory control system and a separate tamper-proof hardcopy disposal log. These materials will either be destroyed immediately, or the supervisor will move the waste cannabis to a clearly designated locked and secured container segregated from all usable cannabis within the on-site product vault. 4. Responsibilities The same person who records the waste cannabis details will put the waste into a bag numbered according to the inventory control system disposal item and set it in a container clearly designated for disposal and covered by a dedicated surveillance camera. 5. Procedure Neighborhood Compatibility Plan The Joint 559 14 All waste cannabis must be weighed, bagged, inventoried, properly labeled, and RFID tagged. As waste cannabis is accumulated, it will be moved to a secure area of the vault reserved for “PRODUCT AWAITING DESTRUCTION”. 6. References Refer to the destruction protocols for additional information. 7. Reporting Product labeled for destruction storage must be entered into the seed to sale database, a label and RFID tag must be produced, and the facility manager must do an audit of the product including weight, date packaged, and other identifying information. DISPOSAL OF MEDICAL CANNABIS BY FACILITY 1. Purpose The purpose of this SOP is to provide guidance for the disposal of medical marijuana by the facility’s employees. 2. Scope This SOP provides for the disposal of medical cannabis per state statute. 3. Prerequisites Marijuana may be destroyed under the following circumstances: • If it goes unused, as when a variety is produced in a quantity that exceeds actual patient demand, and it is also not wanted by other dispensaries, • If it is found by internal quality control assessments to be infected or contaminated or fails to meet other quality control standards, • If it is recalled due to batch-related quality control concerns, • If it is returned by a qualified patient or primary caregiver because: • It was found to be defective, • If it is no longer needed by the qualifying registered patient • The patient’s qualifying registration expires or is revoked. 4. Responsibilities It is the responsibility of the facility manager to oversee the destruction of all medical marijuana. 5. Procedure The facility will work with DOH to develop policies and procedures for the lawful destruction of marijuana. Our first choice is to turn medically unusable marijuana over to DOH for destruction. We would arrange for them to take possession of it on certain specially or regularly arranged days. Our second choice is to process defective medical marijuana and plant by-products in-house by degrading them into a wholly unusable form: grinding and soiling medical marijuana waste with Neighborhood Compatibility Plan The Joint 559 15 non-consumable solid wastes. In this form, medical marijuana waste can be disposed of at a State approved waste facility. Whenever marijuana is turned over to DOH for destruction, an inventory record is generated indicating: • The control numbers associated with the marijuana turned over for destruction, • The reason it was turned over for destruction, • The names and signatures of the DOH officials receiving the marijuana, • The amount turned over, and • The date and time it was turned over. The facility manager must be present for the inventory transfer and must, along with at least one other employee acting as witness, sign a printed record of inventory transfer, which will be kept as a hard copy or electronically as a scanned facsimile for not less than five years. Whenever marijuana is destroyed on site an inventory record is generated indicating: • The control numbers associated with the marijuana destroyed, • The reason it was destroyed, • The manner in which it was destroyed, • The amount destroyed, • The date and time it was destroyed, and • Those present during the destruction. The Inventory Control Agent must be present for all on-site destruction and must, along with at least one other employee acting as witness, sign a printed record of disposal, which will be kept as a hard copy or electronically as a scanned facsimile for not less than five years. 6. References Refer to the SOP’s for the storage of medical marijuana awaiting destruction. 7. Reporting The destruction of inventory must be recorded in the seed to sale software inventory adjustment database, and a copy of the destruction record must be signed by the facility manager and provided to accounting. Marijuana Waste Disposal All medical marijuana waste, byproducts and undesired products will be destroyed and disposed of according to all applicable state and local regulations. Facility management will ensure proper training and implementation of destruction and disposal procedures and protocols. Documentation Neighborhood Compatibility Plan The Joint 559 16 will be recorded and maintained at the facility location for a period determined by state regulations. Record all required information on the Marijuana Waste Log Sheet. Disposal—Disposal of any marijuana product waste must be rendered unrecognizable, unusable and unrecoverable through grinding and incorporating the marijuana waste with non-consumable, solid wastes listed below, such that the resulting mixture is at least fifty (50%) percent non- marijuana waste: 1) Paper waste; 2) Plastic waste; 3) Cardboard waste; 4) Food waste; 5) Grease or other compostable oil waste; 6) Bokashi, or other compost activators; 7) Other wastes approved by the State Licensing Authority that will render the medical marijuana waste unusable and unrecognizable as marijuana; and 8) Soil. 4. Responsibilities The facility will ensure that any and all recalled marijuana products are disposed of according to all state and local regulations. The facility will follow marijuana waste disposal and destruction procedures outlined within these SOP’s for proper disposal of recalled medical marijuana. a) Recalled material must not be destroyed or disposed of until authorized by the Commission. b) Recalled medical marijuana will need to be stored and segregated until the disposal of recalled material is authorized by the Commission. c) Stored recalled material in the quarantined secure storage area of the licensed facility. d) Once receipt of notification from the Commission that the disposal of recalled medical marijuana is authorized, registered employees will dispose of the medical marijuana according to the Marijuana Waste Disposal SOP. e) Registered employees must dispose of medical marijuana within 24-hours of Commission authorization. 5. Procedure Neighborhood Compatibility Plan The Joint 559 17 A minimum of seven days prior to rendering the secured green waste unusable and disposing of said waste, an agent from the facility team shall utilize the traceability system. Immediately before the green waste is processed for disposal it shall be re-weighed by the quality control manager and at least one other staff member and all information will be recorded including, weight, time, date, employee names and signatures. After capturing all pertinent data, logging, and entering into the company seed to sale software, all waste shall be rendered unusable and prepared for either compostable or non-compostable disposal. The facility compliance manager shall oversee the entire waste disposal process and ensure it is done. All waste processing and disposal shall be recorded on video surveillance. 6. References Please refer to the state regulations on file in the facility’s director’s office for can nabis waste disposal. 7. Reporting All waste disposal must be done by two or more employees and must be recorded in a waste log sheet for all waste disposal containing cannabis. Record Retention THE JOINT 559 intends to be in full compliance with all local laws as well as California State Regulations promulgated by the Bureau of Cannabis Control and located at California Code of Regulations Title 16, Division 42, Chapter 1, et. seq. (“State Code”) Pursuant to State Code § 5037(a), THE JOINT 559 will keep and maintain the following records related to commercial cannabis activity for at least seven years: (1) Financial records including, but not limited to, bank statements, sales invoices, receipts, tax records, and all records required by the California Department of Tax and Fee Administration (formerly Board of Equalization) under fide 18, California Code of Regulations, sections 1698 and 4901. (2) Personnel records, including each employee's full name, social security or individual tax payer identification number, date employment begins, and date of termination of employment if applicable. (3) Training records including, but not limited to, the content of the training provided and the names of the employees that received the training. (4) Contracts with other licensees regarding commercial cannabis activity. (5) Permits, licenses, and other local authorizations to conduct THE JOINT 559's commercial cannabis activity. Neighborhood Compatibility Plan The Joint 559 18 (6) Security records, except for surveillance recordings required pursuant to section 5044 of this division. (7) Records relating to the composting or destruction of cannabis goods: (8) Documentation for data or information entered into the track and trace system. (9) All other documents prepared or executed by an owner or his employees or assignees in connection with the licensed commercial cannabis business. (b) The Bureau may make any examination of the books and records of any licensee as it deems necessary to perform its duties under the Act. (c) Records shall be kept in a manner that allows the records to be produced for the Bureau at the licensed premises in either hard copy or electronic form, whichever the Bureau requests. Cannabis Waste Management Pursuant to State Code § 5055(a), THE JOINT 559 will not sell cannabis waste. THE JOINT 559 shall comply with all applicable waste management laws including, but not limited to, Division 30 of the Public Resources Code. THE JOINT 559 will dispose of cannabis waste in a secured waste receptacle or in a secured area on the licensed premises. For the purposes of this section, "secure waste receptacle" or "secured area" means that physical access to the receptacle or area is restricted to THE JOINT 559 and its employees and the local agency, or waste hauler franchised or contracted by a local agency. Public access to the designated receptacle or area is prohibited. If THE JOINT 559 is composting cannabis waste on the licensed premises, THE JOINT 559 shall do so in compliance with title 14, California Code of Regulations, chapter 31 (commencing with Section 17850). If a local agency, or waste hauler permitted by a local agency, is being used to collect and process cannabis waste, THE JOINT 559 shall do all the following: (1) Provide the Bureau with the following information for the local agency, or waste hauler franchised or contracted by a local agency, who will collect and process THE JOINT 559's cannabis waste; (A) Name of local agency providing waste hauling services, if applicable; (B) Company name of the local agency franchised or contracted or permitted waste hauler, if applicable; (C) Company business address; and (D) Name of the primary contact person at the company and contact person's phone number. Zoning Inquiry P21-00269 913 East Divisadero Street Page 2 January 19, 2021 The subject property is not located within 800 feet of the property boundary of any of the above-mentioned uses. The subject building meets the separation requirements, per Section 15-2739.B.1.b of the FMC, for a cannabis retail business. 3. Prior to commencing operations, a cannabis retail business must obtain a Cannabis Conditional Use Permit from the Planning and Development Department per Section 15- 2739.N of the FMC. 4. No more than two cannabis retail businesses may be located in any one Council District. If more than 14 are ever authorized by Council (more than two per Council District), they shall be dispersed evenly by Council District. The subject property is in Council District 3. There are currently no cannabis retail businesses located in Council District 3. This location requirement is satisfied for a cannabis retail business. Please review the entirety of Article 33, Chapter 9 (Cannabis Retail Business and Commercial Cannabis), and Section 15-2739 (Adult Use and Medicinal Cannabis Retail Business and Commercial Cannabis Business) of the FMC to understand other requirements of cannabis retail businesses, including but not limited to, application requirements, signage, etc. This information was researched by the undersigned per the zoning request. The undersigned certifies that the above information contained herein is believed to be accurate and is based upon, or relates to, the information supplied by the requestor. The City of Fresno assumes no liability for errors and omissions. All information was obtained from public records held by the Planning and Development Department. A copy of the Fresno Municipal Code may be obtained by contacting the City Clerk’s office at 559-621-7650. The Fresno Municipal Code may also be searched on the Internet, free of charge, by going to www.fresno.gov. If you have questions regarding this matter, please contact me by telephone at 559-621-8038 or at Marisela.Martinez@fresno.gov. Cordially, Marisela Martínez, Planner II Development Services Division Planning and Development Department THE JOINT 559 Social Policy and Local Enterprise Plan 1 THE JOINT 559 Social Policy and Local Enterprise Plan Introduction THE JOINT 559 (“THE JOINT”) believes that our employees are our most valuable resource. We have a moral duty to our community to create stable jobs that offer career paths and opportunities for middleclass lifestyles. We also believe that a workforce should represent the community, and we are committed to diversity and local-hire. Our owners and management team include local residents of the city of Fresno and Fresno County. Our leadership is qualified to recruit, develop and retain a high-performing team to establish and maintain a workplace culture that will ensure the long-term success of our mission. Hiring Plan – Local Hiring and Diversity (Section 2.8) To launch, THE JOINT anticipates hiring a starting staff of 5 employees, including its owner, Angelica Garcia and 4 associates. Within 6 months to 1 year, THE JOINT plans to up to 17 employees, including one HR & Compliance Coordinator, one manager and eight associates on our Patient & Member Services team, and one manager and three associates on our Security team. We are committed to increasing the number of staff at THE JOINT as the microbusiness grows. Fresno is a diverse city, and we believe our cannabis business should reflect the community it serves. A key concern for THE JOINT is the creation of local jobs and local hiring. It is the policy of THE JOINT to staff its operations with greater than 70% of such persons residing in Fresno and/or Fresno County. Once we are informed by the City of Fresno that we have been awarded the cannabis license, we will immediately begin to start recruiting new hires. The business will make a good faith effort to hire bona fide residents of Fresno who have not established residency after the submission of an application for employment with THE JOINT. THE JOINT’s commitment to diversity is will seek to hire at least 40% females, as well as 85% either African American, Asian American, Native American, Hispanic and/or Pacific Islander heritage. At THE JOINT, we look forward to also employing a diverse workforce of skilled individuals. We are sensitive to the role that language plays in diversity. In order to improve access for non-native English speakers, THE JOINT will seek multilingual staff for all public-facing positions, prioritizing Spanish speakers. Hiring of Individual who meet the Social Policy Criteria in Section 9 -3316 of the Fresno Municipal Code (Section 2.4) In addition, THE JOINT plans to recruit individuals who meet the criteria listed in the Social Policy Section 9-3316(b)(1) of the Fresno Municipal Code. THE JOINT understands that it will be required to hire individuals for a minimum of one-third (1/3) of the total annual work hours performed at the business who meets one of the following: THE JOINT 559 Social Policy and Local Enterprise Plan 2 (i) Annual family income below 80% AMI; (ii) Convicted for a cannabis related crime that could have been prosecuted as a misdemeanor or citation under current State law; (iii) Lived in a low to moderate income census tract in the city for a minimum of three (3) years; (iv)Veteran; or (v) Former foster home youth who was in foster care as a minor; (vi) Unemployed; or (vii) Receiving public assistance. If selected to receive a commercial cannabis business permit, THE JOINT will provide the city with ongoing proof of compliance of this requirement and intends to hire 5-10% of our workforce from individuals who meet the Fresno Social Policy criteria. Locally Managed Enterprise (Section 2.5) THE JOINT will be a locally managed business enterprise whose owners and managers reside with and own a commercial business within the City of Fresno for at least one year prior to Mach 2, 2020. THE JOINT’s owner, Angelica Garcia, moved to Fresno in July 2018 to open her first business venture and has lived in Freson ever since. She currently lives at 3030 W. San Gabriel Ave., Fresno, California 93722. In July 2018, Ms. Garcia opened her own business in Fresno, California, called Ohana Pantry. Ohana Pantry is a health food restaurant offering vegetarian and vegan culinary dishes prepared in the traditional Hawaiian style. Ms. Garcia started the business on her own and built the business from the ground up. Ms. Garcia was the head chef and also the manager of the business. Ms. Garcia has used Ohana Pantry and some of the business proceeds to support breast cancer awareness in and around Fresno County. Ohana Pantry employed 10 employees at the height of their business. Ms. Garcia closed the brick- and-mortar location in December 2019 but still runs the business at the Farmers Market in Fresno. Training & Continuing Education (Section 2.8.2) All new hires at THE JOINT will complete a proprietary training program developed by THE JOINT. This includes classroom instruction by senior employees, and hands-on experience under supervision, all supported by the following detailed employee handbooks: Leader’s Guide, Trainee Workbook, Department Operations Manual (60-100 pages), Product Knowledge Guide, and specific training materials for the Sales, Ombuds, Security, Processing, Purchasing, and Inventory Departments. THE JOINT 559 Social Policy and Local Enterprise Plan 3 Every member of THE JOINT team will receive the most current information regarding the regulations pertaining to the medical cannabis industry. THE JOINT will also offer a best-in-class continuing education program to ensure the long-term success of our team members. Introductory Training & Apprenticeships (Section 2.8.2) Senior employees of THE JOINT will conduct our New Hire Orientation Program (overseen by our certified HR professionals) with hands-on training at THE JOINT facility prior to the opening of THE JOINT. Topics include: company culture onboarding, OSHA safety, product knowledge, patient care, and role-specific operations. Following the New Hire Orientation, THE JOINT employees will take departmental training programs for each specific role within the organization, consisting of multi-day instruction and hands-on experience. THE JOINT will also offer apprenticeships and/or compensation for continuing education in the field. Continuing Education (Section 2.8.2) THE JOINT is committed to helping our staff achieve their goals in life and to ensuring their long- term economic stability. We know that the most important predictor of social mobility is college education. Students from low-income backgrounds are almost three times more likely to transcend poverty if they obtain a college degree. Helping our staff to earn degrees is how we can have the biggest impact on their life trajectory. To that end, THE JOINT is committed to providing educational opportunities for all eligible employees. THE JOINT Education Achievement Program is modeled on the Starbucks College Achievement Plan, which has recently received praise in the media. Our plan will give full-time employees the opportunity to enroll in two classes per quarter toward an accredited degree from a local community college, with tuition fully paid by THE JOINT. We will also offer employees coaching throughout their educational experience in matters ranging from enrollment to financial aid to career advice. To ensure that staff knowledge remains current in the rapidly evolving cannabis industry, all THE JOINT employees will also receive ongoing education, including training sessions with experts, off-site conferences, online workshops, and seminars. THE JOINT will continually update, revise and refine their proprietary training program to reflect changes in laws, products, and industry practices and standards. New topics and reinforcement of existing knowledge give employees the tools to provide a world -class patient experience. Leadership Development Program Low to mid-level managers will be encouraged to participate in the Leadership Development Program. The program includes extensive internal leadership training and mentorship, emphasizing a compassionate and transparent approach. Leaders will learn to evaluate and enhance THE JOINT 559 Social Policy and Local Enterprise Plan 4 the performance of our associates by identifying their strengths and by providing coaching to improve their weaknesses. Employee Training THE JOINT will implement a training program to ensure that all employees, including the person in charge, present at the premises are provided information, training, and will have adequate knowledge of cannabis safety procedures and protocols, which, at minimum, will include, but not be limited to the following: 1. All THE JOINT employees within 30 calendar days of the start of employment will be trained in all health and safety hazards presented by all solvents or chemicals used at the premises as described in the material safety data sheet for each solvent or chemical, if applicable. All THE JOINT employees will review all emergency procedures, security procedures, record keeping requirements and training requirements. 2. Prior to independently engaging in any commercial cannabis activity, each THE JOINT employee will be trained on the overview of the cannabis facility operation and all standard operating procedures, all quality control procedures, and all hazard analysis and control procedures as appropriate. The employee will be trained on the proper and safe usage of equipment or machinery as applicable and safe work practices applicable to an employee's job tasks. This will include appropriate usage of any necessary safety or sanitary equipment, cleaning and maintenance requirements, and emergency operations, including shutdown procedures, or any additional information reasonably related to an employee's job duties. 3. THE JOINT will ensure that all personnel receive annual refresher training to cover, at minimum, the topics listed herein. This annual refresher training must be completed within 12 months of the previous training completion date. B. THE JOINT will maintain a record which contains at minimum: 1. An annual confirmation by THE JOINT that the employee has received and understood all information and training provided in the training program. 2. A list of all employees at the premises, including at minimum; name and job duties of each. 3. Documentation of training topics and dates of training completion for all employees. 4. Training topics and dates of refresher training completion for all employees. 5. The signature of the employee and the cannabis facility operator verifying receipt and understanding of each training or refresher training completed by the employee. 6. Any official documentation attesting to the successful completion of required training by the employee. C. THE JOINT may assign the responsibility for ensuring compliance by an employee with the requirements of this Social Policy and Local Enterprise Plan to the person in charge. The THE JOINT 559 Social Policy and Local Enterprise Plan 5 assigned person in charge must have the education, training, experience, or a combination thereof necessary to ensure the acquisition and sale of only clean and safe cannabis and cannabis products by all employees. The designated person in charge will sign and date a document on an annual basis attesting that the supervisor has received and understood all information and training provided in the training program. This documentation will be maintained as part of the record requirements. Customer Education As part of its Customer Education plan, THE JOINT will require all new employees to be trained on the uses of cannabis products so they can educate customers. All THE JOINT will undergo a 5-hour course teaching the employees to do all of the following: a. Identify the patient’s particular ailment and his or her recommending physician; b. Identify the strain or strains of cannabis most suitable to treatment of that ailment; c. Discuss the use of cannabis as a treatment for the patient’s ailment; d. Discuss the role of THC and CBD, their medicinal effects and interrelationship; e. Determine whether the ailment necessitates short or long-term usage of cannabis f. Prepare a treatment plan with the patient/caregiver and/or their families; g. Provide all statutorily required advisories and handouts to the patient; h. Provide additional information to patients through seminars at the Dispensary; i. Conduct periodic reviews of the patient’s care plan with the patient; j. Develop procedures for receiving and addressing patient concerns or complaints; k. Identify and discuss potential treatment alternatives to cannabis use; l. Identify, discuss and facilitate treatment modalities for use with cannabis; m. Identify and discuss signs of misuse or dependence n. Seek input from the patient as to the products and services provided; o. Conduct patient surveys as to the products and services provided; p. Provide empathy and compassion to the patient. q. The different strains of cannabis sold by the retail sales business; r. The different methods of using cannabis, edible cannabis products and cannabis infused products; s. Signs of medicine abuse or instability in the medical use of cannabis by a patient, employee or contractor; t. Understanding the difference between topical products, edible cannabis products and cannabis-infused products, as applicable to the operations of the facility for the production of edible cannabis products or cannabis-infused products; u. The procedures used by cultivators for cultivation and the production of edible cannabis products or cannabis-infused products to create edible cannabis products or cannabis- infused products; v. The proper procedures for handling edible cannabis products or cannabis-infused products, including, without limitation, the procedures used to prepare, produce, package and store such products as required by the provisions of the governing statute and related regulations. THE JOINT 559 Social Policy and Local Enterprise Plan 6 In addition, all employees involved in face-to-face sales of cannabis or cannabis products or management of stores or inventory must undergo a minimum of 2 hours of training on legal requirements and best practices for cannabis retailing. The training will include hazards associated with cannabis use, including but not limited to hazards of use during pregnancy and lactation; motor vehicle use; cognitive effects and mental illness; safe and appropriate dosages, especially for initial use; delayed effects of edible cannabis products; hazards of early initiation and of intensive use by youth; storage to protect children; and smoke- free air provisions. Further, all THE JOINT employees will complete the training within 90 days after the date of hire. THE JOINT will maintain records of all employee's Cannabis Retailing Education on-site and will make such records available upon request by the City or State cannabis regulatory agencies. Occupational Health and Safety Standards – Sanitary Practices The cannabis business facility will meet or exceed all OHSA standards for safety in the work place. The business facility will offer a clean, safe and comfortable environment for its employees and patients. In the event the retail facility determines that a staff member has a health condition that may affect the safety or quality of the cannabis it produces, or the health of other staff members, it will place the affected person on medical leave until such time as the health condition of the employee no longer presents a threat. See also, “Staff Training,” above. Collective Bargaining; Living Wage; Equal Benefits and Signed Declaration of Non-Discrimination (Section 2.1) THE JOINT fully supports the right of workers to associate, organize, and bargain collectively. THE JOINT will not prescribe how employees should do so or with what union. THE JOINT supports them in a free and open process for making those decisions and will support whatever decisions they make, recognizing any union that they may choose. All full-time, entry-level THE JOINT employees will be paid a “living wage” as described below. Employees may accrue paid time off. THE JOINT will adjust entry-level wages as necessary to meet the Fresno living wage rate. THE JOINT is committed to equal employment opportunity and will not discriminate against employees or applicants based on any improper classification, such as: status as a veteran or uniformed service-member, race, color, religion, sex, national origin, age, physical or mental disability. THE JOINT will sign a declaration of non-discrimination. Union Shop & a Living Wage (Sections 2.3, 2.7, and 2.8.3) THE JOINT will initially be run by its owner and 4 staff, in an effort to save costs and build a brand from the ground up, with the owner being directly involved in a “hands on” approach. Over THE JOINT 559 Social Policy and Local Enterprise Plan 7 time, THE JOINT expects to hire more employees and will seek to become a fully unionized shop. Once THE JOINT has 5 employees or more, it will enter into a Labor Peace Agreement/Neutrality Agreement with A Local Labor Union, allowing employees to unionize without interference, and will agree to a CBA that is among the most generous in the industry. THE JOINT plans to offer good single earner Union Jobs with benefits in line with facilities that provide consumables for human wear and consumption. THE JOINT will adhere to heightened pay and benefits standard and practices, including recognition of the collective bargaining rights of employees. THE JOINT will provide compensation to and opportunities for continuing education and training of employees and staff. THE JOINT will provide a “living wage” to facility staff and employees, which means that THE JOINT will, at a minimum pay staff and employees at least 150% of minimum wage mandated by California or Federal law, whichever is greater. The minimum wage in California is currently $12 per hour. Pursuant to the California Department of Industrial Relations minimum wage website, effective January 1, 2017, the minimum wage for all industries will be increased yearly. The following represents California’s minimum wage laws, which are greater than the Federal minimum wage, and how they will adjust over time, compared to what 150% would be for a “living wage”. Schedule for California Minimum Wage rate 2017-2023.1 Date Minimum Wage for Employers with 25 Employees or Less Minimum Wage for Employers with 26 Employees or More “Living Wage” for Employers with 25 employees or Less2 (i.e. 150% of minimum wage) January 1, 2017 $10.00/hour $10.50/hour $15.00/ hour January 1, 2018 $10.50/hour $11.00/hour $15.75/ hour January 1, 2019 $11.00/hour $12.00/hour $16.50 / hour January 1, 2020 $12.00/hour $13.00/hour $18.00 / hour January 1, 2021 $13.00/hour $14.00/hour $19.50 / hour January 1, 2022 $14.00/hour $15.00/hour $21.00 / hour 1 https://www.dir.ca.gov/dlse/faq_minimumwage.htm 2 S&S does not expect to employ more than 25 employees as the subject premises is roughly 1200 square feet. Accordingly, only the “Living Wage” for 25 employees or less is shown. THE JOINT 559 Social Policy and Local Enterprise Plan 8 January 1, 2023 $15.00/hour $15.00/hour $22.50 / hour THE JOINT’s wage scale: Annual Performance Review Each THE JOINT employee will receive an annual performance review to assess any areas that require improvement and to recognize their successes and accomplishments over the preceding year. Annual wage increases based on a pre-established company pay scale will be granted if the employee has met the expectations as defined in his or her job description. Courses, classes or other skill development methods will be assigned as necessary. Managers will guide staff to continuing education opportunities that meet self-appointed growth goals. Benefits Provided to Employees (Section 2.2) THE JOINT will offer employee benefits such as health care, vacation and medical leave. The Cannabis Business’ Facility’s Staff & Management Structure (Section 2.6) THE JOINT will initially rely on a staff of 5 people, in a combination of full and part time positions, including its Officers. These five people will initially do all of the jobs listed below, with the ultimate goal of hiring more employees to take on these roles. The cannabis retail business facility offers single wage earner compensation to its staff. This plan will provide written guidelines for staff to fulfill the duties of their positions. Additional personnel procedures will be contained in THE JOINT Employee Manual. REGULAR STAFF Entrance Screening Staff Entrance Screening Staff greets patients in the secure entry lobby to verify the status of the patient or caregiver before allowing them into the retail facility. They help patients with the lobby library and computer terminals. They are responsible for providing a wholesome and healthy first THE JOINT 559 Social Policy and Local Enterprise Plan 9 interaction with patients. They will escort patients as needed and required by statute, regulation and ordinance. Retail facility Counter Staff/Budtenders The retail facility counter staff is responsible for ensuring that all patients are qualified to receive medication. They will be trained to verify status and to give retail facility advice on patients’ needs relating to medicinal cannabis, its properties, strengths and strains. Cashiers/Budtenders (Dispensary) for THE JOINT will interface with customers of the dispensary, assisting customers with the purchase of their cannabis products and will handle all payment and financial transactions from a secure payment station. They will dispense the pre-packaged medical cannabis and do not have access to any inventory other than the inventory in security sealed child proof packaging. The retail facility counter staff will be on duty at all times during the operating hours of the retail facility. They are responsible for the set up and close down of the display cases at the start and finish of each shift as well. Patient Services & Education Specialist The business facility’s Patient Services & Education Specialist will meet with patients, assess their needs and actively engage them in developing a treatment and medication plan. The Patient Services & Education Specialist will compile and distribute all applicable informational and educational materials and disclosures and will monitor the patient’s usage for signs of adverse effects or misuse. Said staff receives comments and input from patients on a case-by-case basis and conducts more generalized surveys of the patients for ratings as to service and satisfaction. Inventory Control Specialist An Inventory Control Specialist will be responsible for implementing and overseeing the inventory control system in coordination with the EVS and Inventory Control Vendor. She will monitor inventory counts and establish theft/diversion prevention procedures, relying on both the computerized inventory system and upon secure human procedures in the handling of inventory and money. Purchasing Agent The Purchasing Agent (PA) is responsible for identifying suitable products based on patient need and purchasing such products at favorable rates. The PA will work closely with the Patient Services & Education Specialist and the Inventory Control Specialist to ensure proper tracking of purchases. The Purchasing Agent handles vendor transactions. The Purchasing Agent is also responsible for scales calibration and to ensure all medicine is free from toxins, molds, pesticides and other impurities. In coordination with the Quality Assurance Specialist, the PA will perform the following: a. Inspection of medicine for quality b. Confirmation of Product testing c. Securing of incoming medication d. Negotiations of market rate THE JOINT 559 Social Policy and Local Enterprise Plan 10 e. Creation of purchase orders f. Delivery of bulk packages to The ED for inventory control and management. Quality Assurance Specialist The Quality Assurance Specialist is responsible for scales calibration and, to ensure all medicine is free from toxins, molds, pesticides and other impurities, and will act as liaison with the licensed distributors. He will also be responsible for ensuring that cannabis and cannabis products received are not defective, and for the proper labelling and packaging of products. Information Technology Specialist The IT Specialist is responsible for the design and implementation of the facility’s computer systems. Hardware and software selection, implementation and staff training on these systems will be the province of the IT Specialist, who is also responsible for the integrity of the information and security of the system including physical and as electronic security. Firewall policy, access rights, password protection and login rights are also the province of the IT Specialist. Bookkeeper THE JOINT will employ a bookkeeper to take responsibility for daily accounting duties. The Bookkeeper will cooperate with the retail facility’s outside accounting firm and Inventory Control Officer to complete regular audits of the system. Communications Director & Ombudsperson The Communications Director & Ombudsperson will be the public face of the company. It will be the duty of the Communications Director to represent the retail facility to the public and to public agencies in most venues. As Ombudsperson, s/he will receive, log, and respond to citizen complaints concerning retail facility operations. MANAGEMENT POSITIONS Executive Director The Retail facility’s point-person for operational oversight and management will be its Executive Director (ED), which will be the applicant’s owner, Angelica Garcia. The ED will be responsible for implementation and organization of day-to-day facility operations. She will be responsible for the general welfare of staff as a Human Resources specialist. The ED is responsible for assuring that the facility is in compliance with all City and State regulations. The ED is also responsible for reconciling Inventory Control and accounting systems and daily deposits to the bank. The ED will be also responsible to ensure that all operations are run in strict compliance with retail facility policy and procedures. This would include, but not limited to: a. Safe handling of medication b. Inventory control and tracking / Loss prevention management c. Oversight of the delivery service packaging room, if applicable d. Employee Oversight THE JOINT 559 Social Policy and Local Enterprise Plan 11 Ms. Garcia will work with THE JOINT’s Officers to implement daily operations policy and procedures and act as liaison with them, staff and vendors. She and the CFO will have Ombudsmen authority to resolve conflicts at all levels within the organization and will be identified to all persons and entities located within 500 feet of the retail facility, who will be given her name and phone number to contact for reporting problems or concerns with operations. Security Manager The facility will ultimately employ a Security Manager to oversee the safety of staff and the security of the facility. The Security Manager is responsible for all security of the facility and its perimeter and will train all staff as to basic security protocols. The Security Manager is als o responsible for the security and safety of the immediate environment outside of the facility perimeter to the extent that the retail facility’s operations relate to the welfare of the neighbors, arising from the facility’s presence in the neighborhood. The Security Manager will be responsible for implementing the retail facility’s design plans for the security procedures and protocols, the video surveillance system, its backing up and video log. He will also be responsible for ensuring that all security equipment, alarms, locks, cameras and surveillance data are properly functioning, maintained and operational. He will maintain strict vigilance for diversion and deviation of medicine. Shift Managers The Shift Managers will be responsible for the daily general welfare and well-being of the patients. A shift manager will be on duty at all times during business hours. While on duty, the shift manager will assist the General Manager. Additional Shift Manager duties will include: receiving retail packages from the ED or PA and delivering retail packages to the facility, counter staff, remove and deliver sales proceeds from cash registers to ED, supervise the opening, set-up and close-down of the display cases at the start and finish of each shift. Securing the product at the end of each shift will also be the duty of the shift manager. Corporate Structure; Duties of Officers & Directors THE JOINT is a California for profit S Corporation established to meet the policy requirements of the Fresno Municipal Code. THE JOINT is also established to comply with California’s state Cannabis laws, specifically the provisions contained within the Medical Adult Use Cannabis Regulation Safety Act (“MAUCRSA”). The CEO, Secretary and CFO is Angelica Garcia. Ms. Garcia plans to bring on more officers and directors as the company grown. The principals of THE JOINT will bring years of practical experience in business, as well as a dedication and passion to medical and adult use cannabis. Officer Responsibilities, Generally The Officers are collectively responsible for conducting the business of THE JOINT. The directors establish policy and carry the legal responsibility for the fiduciary obligations to the organization. The Directors hire the officers of the corporation who are responsible for certain other day-today THE JOINT 559 Social Policy and Local Enterprise Plan 12 operations of THE JOINT. THE JOINT’s Officers will have the depth of experience, education, and the social consciousness to operate a community resource such as a retail sales facility. The Officers are responsible for establishing the goals and objectives THE JOINT. They set policy and establish procedures to ensure corporate objectives and to work within established policies. The Officers bear legal responsibility for the actions of THE JOINT. The Officers are bound by the Mission Statements and the representation asserted in this document and in THE JOINT’s other plans, operational manuals and statements in support of its application to Fresno. The CEO The CEO is Angelica Garcia. The CEO will as Chief of Compliance and will be responsible to ensure strict compliance with all laws and regulations as it relates to the operations of THE JOINT. In particular, she will devote special attention to important compliance areas like diversion of cannabis, compliance with retail, packaging and labeling protocols, and reporting to governmental agencies. As such, she will also be responsible for ensuring an uninterrupted supply of medical and adult use grade cannabis that meets the needs of THE JOINT’s supply base as well as for implementing and overseeing its Patient Needs Plan. Another important role of the CEO is the overall planning and strategy of the direction THE JOINT, and the security and safety of the patients and employees. The management of resale abatement policies and the monitoring of inventory and loss prevention programs will be the province of the CEO. This would include quality control policies and procedures. The Treasurer & Secretary Angelica Garcia is the Treasurer and Secretary. Ms. Garcia bears responsibility for the financial assets and operations of THE JOINT and will oversee all accounting and audit practices for the integrated structure. Ms. Garcia will assist and advise the CEO and President regarding financial matters concerning THE JOINT. All policies, procedures and processes involving the movement of corporate assets and funds will be the responsibility of Ms. Garcia, who will actively coordinate with THE JOINT’s outside accounting firm to ensure accuracy, accountability and transparency of its finances. Ms. Garcia maintains the Bound Book of the Corporation and records the minutes of the meetings of the Officers. It is also the responsibility of the CFO to ensure that THE JOINT is in compliance with all reporting responsibilities under the law. Another other important role of the Treasurer/Secretary is to secure and safeguard the ongoing financial integrity and viability of the commercial cannabis facility. Ms. Garcia will oversee all facility planning and training of its staff. Ms. Garcia is also a representative of THE JOINT and will handle the responsibilities of management as a liaison with government agencies in coordination with and assisted by THE JOINT’s Legal and Accounting Team. Ms. Garcia will therefore be responsible for developing and implementing Standard Operating Procedures, THE JOINT 559 Social Policy and Local Enterprise Plan 13 including oversight of THE JOINT’s Community Benefits Program. Ms. Garcia will interact with all managerial staff and be accountable to the other Officers. Labor And Employment Standards and Policy Ethical Standards and Practices It is the policy of the retail cannabis business facility to publish and promote the highest set of ethical standards. The retail facility will provide employee training in regard to the State of California’s and Fresno’s legal awareness and compliance issues. Staff members are subject to discipline, including immediate termination, on the following (non-exhaustive list of) grounds: 1. Conviction of a felony offense; 2. Providing cannabis to an unauthorized person or otherwise engaging in acts of diversion; 3. Knowing violation California law or Fresno ordinance or related regulations by or other unethical or unlawful behavior. Union Shop The facility will offer dignified fulltime single earner positions with health insurance to all full- time employees. The cannabis retail facility will offer good single earner Union Jobs. The business will offer a full raft of benefits, including health insurance. The management of the facility firmly believes in the benefits of collective bargaining, and a well-compensated staff. Occupational Health and Safety Standards – Sanitary Practices The cannabis retail business facility will meet or exceed all OHSA standards for safety in the work place. The facility will offer a clean, safe and comfortable environment for its employees and patients. In the event the retail business determines that a staff member has a health condition, such as COVID19, that may affect the safety or quality of the cannabis it produces, or the health of other staff members, it will place the affected person on medical leave until such time as the health condition of the employee no longer presents a threat. See also, “Staff Training,” above. Staff Recruitment, Oversight and Reporting Program The retail cannabis business will concentrate on recruiting from Fresno and surrounding areas within Fresno County. Emphasis will be placed on hiring qualified individuals residing in the region. All staff will be members or volunteers of at least 21 years of age. After an intensive application and job selection program, all candidates will undergo criminal and background THE JOINT 559 Social Policy and Local Enterprise Plan 14 checks. All candidates will be required to provide the following additional information to the retail facility in order to facilitate its background check: 1. His or her name, address, date of birth and Social Security Number; 2. Copy of government issued ID card that has a photograph of the person; 3. An attestation that s/he has not been convicted of an excluded felony offense; 4. An attestation pledging that s/he will not divert cannabis to unauthorized persons; 5. A current photo; Qualified candidates will be employed for a 120-day probationary period. During the initial probationary period, employees will undergo a robust training, testing and evaluation process, including a comprehensive plan of lectures, hands-on training and study in regards to the microbusiness facility policies and practices. The facility will make reasonable accommodations for the medical needs of a staff member who engages in the medical use of cannabis, as follows: If the staff member holds a valid Registry Identification Card, provided that such “reasonable accommodation” would not: 1. Pose a threat of harm or danger to persons or property or impose an undue hardship on the retail facility; or 2. Prohibit the staff member from fulfilling any and all of his or her job responsibilities; In addition to any other grounds for termination authorized under the business’ Employee Handbook or Operations Plan or applicable law, a facility staff member will be discharged upon evidence that: 1. S/he has engaged in unlawful diversion of cannabis, theft or other unethical conduct amounting to moral turpitude; or 2. Upon notification that s/he has been convicted of a disqualifying felony offense. In the event that the retail cannabis business receives a report from a staff member concerning an accident, loss or theft, including thefts or loss occurring during transport of cannabis, it will immediately report such accident, loss or theft to appropriate agencies and the applicable law enforcement agency within 24 hours of discovery of the theft. Employee Safety Education Staff Training Program THE JOINT’s cannabis business facility will provide instruction/training to its staff that relate to its basic operating procedure (as discussed immediately above) plus the following areas: 1. The proper use of security measures and controls that have been adopted by the Retail sales facility for the security of the business and to prevent diversion, theft or loss of cannabis; 2. Procedures and instructions for responding to an emergency; 3. State and federal statutes and regulations regarding confidentiality of information related to the medical use of cannabis; THE JOINT 559 Social Policy and Local Enterprise Plan 15 4. The different strains of cannabis grown or sold by the business; 5. The different methods of using cannabis, edible cannabis products and cannabis infused products; and 6. Signs of medicine abuse or instability in the medical use of cannabis by a patient, employee or contractor. 7. Proper sanitation as to the handling of cannabis products, including: a. Avoiding bare hand and arm contact with exposed, finished cannabis products; b. The use of suitable utensils such as deli tissue, spatulas, tongs, single-use gloves or dispensing equipment when handling exposed, finished edibles or infused products; c. Keeping his or her hands and the exposed portions of his or her arms clean; d. Cleaning hands and exposed portions of his or her arms (or, as applicable surrogate prosthetic devices for hands and arms), during the following times and circumstances: i. Immediately before working with usable cannabis or other cannabis products prior to packaging; ii. After touching bare human body parts other than clean hands and exposed portions of arms; iii. After using the toilet; iv. After coughing, sneezing, using a handkerchief or disposable tissue, using tobacco, eating or drinking; v. After handling soiled equipment; vi. As often as necessary to remove soil and contamination and to prevent cross-contamination when changing tasks; e. Keeping his or her fingernails trimmed, filed and maintained so that the edges and surfaces are cleanable; f. Unless wearing intact gloves in good repair, avoiding the use of fingernail polish or artificial fingernails on his or her fingernails; g. Wearing clean clothing appropriate to the tasks assigned to him or her. 8. Proper washing techniques, as follows: a. Taking at least 20 seconds to complete the washing procedure, using a handwashing sink and cleaning compound, b. Rinsing under clean, running warm water; c. Applying an amount of cleaning compound recommended by the manufacturer of the compound; d. Rubbing together vigorously for at least 15 seconds while paying particular attention to removing soil from underneath the fingernails and creating friction on the surfaces of the hands and arms, fingertips and areas between the fingers; e. Thoroughly rinsing under clean, running warm water; f. Thoroughly drying the washed body part. THE JOINT 559 Social Policy and Local Enterprise Plan 16 Robbery Protocols THE JOINT 559 Social Policy and Local Enterprise Plan 17