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HomeMy WebLinkAboutC-20-114 - Ohana Cannabis RedactedApplicant (Entity) Information Application Type Proposed Location Commercial Cannabis Business Permit Application C-20-114 Submitted On: Dec 04, 2020 Applicant Nasser Azimi 916 757 4892 nazimi@teranomic.com Applicant (Entity) Name: Ohana Cannabis DBA: -- Physical Address: 5745 Peladeau St. City: Emeryville State: California Zip Code: 94608 Primary Contact Same as Above? Yes Primary Contact Name: Nasser Azimi Primary Contact Title: President Primary Contact Phone: 916 757 4892 Primary Contact Email: nazimi@teranomic.com HAS ANY INDIVIDUAL IN THIS APPLICATION APPLIED FOR ANY OTHER CANNABIS PERMIT IN THE CITY OF FRESNO?: No Select one or more of the following categories. For each category, indicate whether you are applying for Adult-Use (“A”) or/and Medicinal (“M”) or both Both Please make one selection for permit type. If making multiple applications, please submit a new application for each permit type and proposed location. Permit Type Retail (Storefront) Business Formation Documentation: Corporation Property Owner Name: JL Marquez Properties LLC Proposed Location Address: 315 E Olive Avenue City: Fresno State: California Zip Code: 93728 Property Owner Phone: Property Owner Email: tdelgado@commercialwest.net Assessor's Parcel Number (APN): 451-251-11 Proposed Location Square Footage: Supporting Information Application Certification Owner Information 4100 List all fictitious business names the applicant is operating under including the address where each business is located: Ohana Cannabis Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time during the past three (3) years? No Is the Applicant or any of its owners currently involved in an application process in any other jurisdiction? No I hereby certify, under penalty of perjury, on behalf of myself and all owners, managers and supervisors identified in this application that the statements and information furnished in this application and the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best of my knowledge and belief. I understand that a misrepresentation of fact is cause for rejection of this application, denial of the permit, or revocation of a permit issued. In addition, I understand that the filing of this application grants the City of Fresno permission to reproduce submitted materials for distribution to staff, Commission, Board and City Council Members, and other Agencies to process the application. Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits, and photographs for any purpose unrelated to the City's consideration of this application. Furthermore, by submitting this application, I understand and agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of Fresno Municipal Code and State law. Under penalty of perjury, I hereby declare that the information contained in within and submitted with the application is true, complete, and accurate. Iunderstand that a misrepresentation of the facts is cause for rejection of this application, denial of a permit or revocation of an issued permit. A denial or revocation on these grounds shall not be appealable (FMC 9-3319(d)). Name and Digital Signature true Title President Please note: the issuance of a permit will be determined based on the application you submit and any major changes to your business or proposal (i.e. ownership, location, etc.) after your application is submitted may result in a denial. All applications submitted are considered public documents for Public Records Act request purposes. For details about the information required as part of the application process, see the Application Procedures & Guidelines, City of Fresno Municipal Code Article 33 and any additional requirements to complete the application process. All documents can be found online via this link. For questions please contact the City Manager’s Office at 559.621.5555. Owner Name: Nasser Azimi Owner Title: President Owner Address: 2340 Powell St. #384 Owner City: Emeryville Owner State: California Owner Zip: 94608 Has Owner Completed Background Check Application? Yes Ownership Percentage (%): 100 SECTION 4 – SAFETY PLAN Ohana subscribes to the “Safety First” philosophy and puts staff and customer safety above all other priorities. To that end, Ohana has retained Fresno resident, Nicole Ozburn, a 20-year veteran in Human Resources and workplace safety, to spearhead the safety efforts of our entire organization, as outlined below. 4.1: Professional Fire Prevention Consulting Ohana will retain a licensed fire prevention and suppression consultant to develop detailed facility-based plans and instructions for fire prevention and suppression. In addition, the consultant will make sure the proposed storefront facility is fully compliant with state and local fire safety guidelines and regulations. 4.2: Accident and Incident Reporting Procedures Ohana will ensure that all accidents and incidents are documented via a written report describing the details associated with the accident or incident. Incident reports will be completed by each party involved and reviewed for further action by the appropriate manager. Reportable accidents or incidents will be immediately documented and escalated to the corresponding local or state authority. This procedure applies to employees, customers, vendors, contractors and visitors. Specifically, Ohana’s procedures are as follows: 1) Everyone will be trained on the OCC safety manual and must follow safety policies and practices. 2) Staff and customers are encouraged to report any conditions they consider unsafe. 3) Make incident reports readily available for all parties to promptly report any accidents or incidents to the appropriate manager. 4) Ohana managers are required to obtain immediate medical treatment for any injured party at Ohana Cannabis Company. 5) Managers must report occupational accidents or incidents to the Director of Risk Management as soon as possible, but no later than 24 hours following the accident or incident. Accidents and incidents must be reported using the Accident/Incident Report Form. Additional Worker’s Compensation Forms may need to be completed. a) Accidents that result in a “lost time” injury, must be reported to the Director of Risk Management within 8 hours. 6) Investigations should be conducted using Ohana’s Accident/Incident Report Investigation Form. 7) Ensuring proper employee involvement in occupational accident investigations in an attempt to get their input into the cause and corrective actions. 8) Correcting unsafe conditions or actions that contributed to the accident as appropriate (i.e. issuing a work order or by direct action of the supervisor). 9) Ensuring that emergency equipment (i.e., Fire extinguisher, spill cleanup, etc.) used in the accident for which the department is responsible is replaced or returned to normal operating condition. 10) Ensuring that employees under their supervision understand the reporting requirements and are aware of their responsibilities. 4.3: Describe Evacuation Routes Ohana will retain a Fresno fire prevention and suppression consultant to clearly define evacuation routes, verify all egress exits are functional, and all exit routes are clearly marked and illuminated for visibility purposes at all time, in particular during blackouts. 4.4: Fire suppression Equipment Ohana’s facility will be regularly inspected to make sure fire suppression equipment is installed throughout the facility and in accessible areas with clearly marked signage and use instructions. Ohana will also make sure that all fire extinguishers are fully charged at all times. 4.5 Fire and Medical Emergency Procedures and Training Fire Prevention is a vital aspect of employee and customer safety. As a result, Ohana’s facility will comply with all local and state fire codes and will provide regular training to staff for the same purpose. As part of Ohana’s commitment to the safety of its employees and customers, we will develop site-specific Fire Prevention and Suppression Plans and train staff about fire prevention and evacuation on a regular basis. Ohana will also provide certified CPR and first aid training to all its employees, in addition to having first aid kits available onsite. Ohana staff will be trained on the following: A. Preventing Fire Hazards 1. Work areas must be kept as clean as work allows 2. Space should be evaluated for fire hazards 3. Unused combustible items, such as unused boxes, paper, and other flammable items must remain clear of workspace. 4. Items being stored inside each building should not block access to fire extinguishers or other safety equipment B. At Time Fire is Identified 1. First, assist any person in immediate danger to safety if it can be accomplished without risk to yourself. 2. Second, activate the building fire alarm system or notify the fire department by dialing 911 (or designating someone else to notify them for you). When you activate the building fire alarm system, some, but not all, will automatically notify the fire department and get help on the way. 3. Only after having done these two things, if the fire is small, you may attempt to use an extinguisher to put it out. You should always be certain that you will not endanger yourself or others when attempting to put out a fire C. Never Attempt to Extinguish a Fire if: 1) You do not know what is burning. If you do not know what is burning, you don't know what type of extinguisher to use. Even if you have an extinguisher, there may be something in the fire which is going to explode or produce highly toxic smoke. 2) The fire is spreading rapidly beyond the spot where it started. The time to use an extinguisher is in the incipient, or beginning, stages of a fire. If the fire is already spreading quickly, it is best to simply evacuate the building, closing doors and windows behind you as you leave. 3) You don't have adequate or appropriate equipment. If you don't have the correct type or large enough extinguisher, it is best not to try to fight the fire. 4) Safety above property. When unsure, don’t be the hero. Safely evacuate and call emergency professionals. D. Fire Extinguishers 1) Adequate fire extinguishers will be located throughout the facility, in particular in around high-risk area. 2) All personnel will be adequately trained in the use of fire extinguishers and where they are located. E. Emergency Egress 1) Ohana’s consultant will regularly inspect the facility to ensure that all emergency exits are clear, there is appropriate lighting and directions placed in a clear location to safely evacuate the building in case of a fire. Employees will be trained on the following evacuation policies: a. Aisles need to remain clear so that there is a clear path of egress to emergency exits. b. Do not wedge or block doors in the event of a fire. c. Make sure you are familiar with your building’s evacuation plan and know where exits are located and learn all of the escape routes from your lab area d. Leave immediately if the fire alarm sounds. Don’t ever assume it is just a fire drill. e. Ensure you take any personal belongings. f. Close all doors and windows on the way out. g. Make sure everyone at Ohana is accounted for h. Do not reenter the building unless authorized to do so. F. Door Placards 1. Ohana will ensure that door placards are updated a least once a year (or more frequently if the information changes) 2. Door placards will be located in appropriate areas to provide staff, customers, firefighters, or other emergency personnel proper guidance G. First Aid 1. Ohana will provide annual first aid training for all employees. 2. Ohana will also have updated first aid kits. INDEMNIFICATION AND HOLD HARMLESS AGREEMENT FOR COMMERCIAL CANNABIS BUSINESS PERMIT APPLICATION To the fullest extent permitted by law, the City of Fresno (City) shall not assume any liability whatsoever with respect to having issued a commercial cannabis business permit pursuant to Fresno Municipal Code Section. 9-3333 or otherwise approving the operation of any commercial cannabis business or cannabis retail business. In consideration for the submittal of an application for a commercial cannabis business permit application and/or issuance of a cannabis business permit, and to the furthest extent allowed by law, Applicant does hereby agree to indemnify, hold harmless and defend the City and each of its officers, officials, employees, agents and volunteers from any and all loss, liability, fines, penalties, forfeitures, costs and damages (whether in contract, tort or strict liability, including but not limited to personal injury, death at any time and property damage) incurred by City, Applicant or any other person, and from any and all claims, demands and actions in law or equity (including reasonable attorney's fees and litigation expenses), arising or alleged to have arisen directly or indirectly out of the issuance of a cannabis business permit. Applicant’s obligations under the preceding sentence shall not apply to any loss, liability, fines, penalties, forfeitures, costs or damages caused solely by the gross negligence, or caused by the willful misconduct, of City or any of its officers, officials, employees, agents or volunteers. Applicant must, at the time of permit issuance, maintain insurance at coverage limits and with conditions thereon determined necessary and appropriate from time to time by the City Manager. Applicant shall conduct all defense at his/her/its sole cost. The fact that insurance is obtained by Applicant shall not be deemed to release or diminish the liability of Applicant, including, without limitation, liability assum ed under this Agreement. The duty to indemnify shall apply to all claims regardless of whether any insurance policies are applicable. The duty to defend hereunder is wholly independent of and separate from the duty to indemnify and such duty to defend exists regardless of any ultimate liability of Applicant. The policy limits do not act as a limitation upon the amount of defense and/or indemnification to be provided by Applicant. Approval or purchase of any insurance contracts or policies shall in no way relieve from liability nor limit the liability of Applicant, its officials, officers, employees, agents, volunteers or invitees. City shall be reimbursed for all costs and expenses, including but not limited to legal fees and costs and court costs, which the city may be required to pay as a result of any legal challenge related to the city's approval of the applicant's commercial cannabis business permit. The City may, at its sole discretion, participate at its own expense in the defense of any such action, but such participation shall not relieve any of the obligations imposed hereunder. This Indemnification and Hold Harmless Agreement shall survive the expiration or termination of the Application and/or Permit. The undersigned acknowledges that he/she (i) has read and fully understands the content of this Indemnification and Hold Harmless Agreement; (ii) is aware that this is a contract between the City and Applicant; (iii) has had the opportunity to consult with his/her attorney, in his/her discretion; (iv) is fully aware of the legal consequences of signing this document; and (v) is the Applicant or his/her/its authorized signatory. Signed on this day of 2020. Applicant Signature City Employee Signature Print Name and Company Name Print Name Address Title Telephone Number Telephone Number 4 De Nasser Azimi SECTION 1: BUSINESS PLAN 1.1 Owners Qualifications Mr. Nasser Azimi – President & Chief Technology Officer Mr. Azimi has over 25 years of experience as a business executive delivering complex and large- scale technology solutions for retail, wholesale, business administration, education, financial man- agement, and government service delivery. He effectively served elected and appointed officials providing information technology leadership of large-scale operations with budgets exceeding $10 billion annually. Currently, Mr. Azimi is the President of Ohana Cannabis and responsible for the development and implementation of upscale and hi-tech cannabis retail and wholesale facilities across California. Mr. Azimi leads a team of over 60 cannabis retail specialists and consultants as well as scientists, software developers, growers, and manufacturers who are collectively responsible for the trans- formation of Ohana’s hi-tech vertically integrated operations. Mr. Azimi is also the founder of Teranomic Software specializing in Drone solutions for private and public entities. He oversees software development and operational implementation of drone solutions used in agriculture, traffic management, and package delivery. Daryoush Azimi - Chief Operations Officer Mr. Azimi is the founder of Ohana Gardens and an agriculture specialist with 10 years of extensive experience in the automation and management of mobile dispensaries, cultivation, and manufac- turing operations in Northern California. Mr. Azimi successfully transformed Ohana Gardens as a vertically integrated cannabis operation, into a multi-million-dollar business enterprise over an 18 months period. His marketing and customer management expertise are exceptional and focused on developing loyalty programs with an incredible emphasis on effective repeatable customer ser- vice with price points that are sensitive to the community Ohana serves. Rob Fong - Social Equity Officer Mr. Fong is an attorney and a former City of Sacramento Council Member and School Board President. He has an extensive background in social equity program design and implementation. He is currently working with the City of Sacramento and the Sacramento Asian Pacific Chamber of Commerce to ensure that social equity programs reach into the South East Asian Community. He was also a member of the City Council that designed the very first medical cannabis ordinances for the City of Sacramento. He is one of the owners of Ohana Cannabis Company. 1.2 Startup Budget Ohana is a cash rich and a highly sustainable business today. We capitalize all of our operations but also have access to Dollars of external funding to scale our operational capacity as needed to guarantee Ohana’s success. Ohana’s leadership keeps the company’s finances in tight working order to ensure its profitability, accountability, and auditability as it serves the commu- nity’s needs and expectations for economic development. Ohana Cannabis Start Up Budget - Fresno Three-Month Budget 1.3 Proof of Capitalization Ohana’s capitalization will be provided by Mr. Azimi as the primary investor for the Fresno location. In addition, Ohana Cannabis has a Letter of Credit from Teranomic Software, which is a developer of POS Integration platforms for the cannabis industry in the amount of over a five-year period. 1.4 Three-Year Pro Forma Financials Ohana’s Pro Forma financials are defined below. During the initial 36 months of our operation, Ohana plans to reinvest net profit back into the underlying business model and community devel- opment to ensure its strategic business success as a long-term community partner with its planned growth. We are intent on implementing sustainable business practices focused on active collabo- ration with our community leaders in the cannabis legalization journey. SAP Accrual Basis Ohana Cannabis Company - Fresno Three Year Proforma Profit/Loss Projections 1.5 Hours of Operation Ohana proposes to open its facility to customers within the state’s regulatory hours seven days a week. Initially, Ohana will open between the hours of 10AM to 10PM for the first six months. Based on our experience with customers who seek non-psychoactive CBD remedies for pain and anxiety, Ohana will adjust its hours accordingly to open as early as 8AM and close at 10PM. Full time Security Officers and scheduled staff will arrive an hour before opening and stay approxi- mately an hour after closing to perform opening and closing tasks as needed. In addition, after- hours Security Officers will be onsite patrolling the exterior of the premises from 10PM throughout the night and the following morning when the facility opens for business. Ohana’s opening procedures are: 1. Ensure Security Officers are on post and observing traffic and looking for any unusual activities; 2. Fulfillment Manager opens the locked cabinets and safes containing active inventory for fulfillment and display products for the sales staff to arrange them in the locked display cases on the sales floor; 3. Fulfillment Manager opens the cash safe to activate the cash registers with pre-determined starting change; 4. Fulfillment staff count the cash register amount and inventory active products that are available for fulfillment of orders; 5. Sales staff and manager place all display products out into the display cabinets, arrange display cards containing prices and other product details, and lock the display cabinets; 6. Delivery staff prepare dispatch services, route management, and ensure all vehicles are fully charged and that all operational systems, including onboard technology, are fully functional; 7. Fulfillment staff perform a full count of active inventory that is available for sale during the day and reconciles the same with prior day’s records to have a clear count of products on hand; 8. Resolve and document any and all product or cash discrepancies from above opening steps; 9. Prior to opening, Fulfillment and Sales floor managers will ensure that all security measures are in place and upon verification, the facility will be opened to customers. Ohana’s closing procedures are: 1. Ensure Security Officers are on post observing traffic looking for any unusual activities; 2. Sales staff remove all display products from locked display cases and place them into locked cabinet safes used for overnight secure storage; 3. Fulfillment Manager locks all product cabinets and safes and secures all keys in an onsite manager’s designated safe; 4. Fulfillment staff and manager perform the end of night cash count, generate closing reports for sales and inventory, and identify and record daily expenses; 5. Fulfillment Manager places end of night cash and reports into a designated safe; 6. Security staff do a complete sweep of the facility doors, bathrooms, and areas with public access to make sure all is clear and escort staff as they leave the facility; 7. Closing manager locks up and activates security monitoring alarm. 1.6 Description of Daily Operations Customer Check-In Procedures When a customer approaches the security check in, the security guard will validate the customer’s age by asking for a valid government ID in accordance with State and Local Laws. Once The security guard visually verifies the customer’s age and identity, customer’s ID is scanned and the information is stored in the customer’s profile in the POS will go to our data base that contains all information about each customer’s visit and history of purchase made in the POS. Acceptable government IDs include Passport, Driver’s License, DMV Identification Card, and United States Military Identification Card. Persons under the age of 21 will not be permitted into our facility. If a customer is above the age of 18 with a valid Medical Doctor’s Recommendation or State Medical Cannabis Card, they will have to be verified by the Ohana compliance manager who validates their Medical Doctor’s Rec- ommendation or State Medical Cannabis Card before entering the facility. The Ohana compliance manager verifies the doctor’s license status as well as validity of the medical recommendation or the State Medical Cannabis Card by verifying all details online or contacting the issuing doctor’s office. Customers who do not meet the above entrance requirements will be escorted out of the facility immediately. Inventory Receiving Location & Procedure Ohana Cannabis requires all deliveries to be received in a secure and restricted access area inside the permitted facility. Ohana requires all incoming products to have a detailed Metrc shipping manifest that includes all the compliance information as defined in state regulations. Upon the distribution delivery driver’s arrival, the Ohana Security check in will verify the driver’s age and identity as described under Customer Check-In Procedure. Upon verification of the driver identity, an assigned security guard will review all of the delivery paperwork to validate the delivery be- longs to Ohana, and will escort the driver with the products into a secure and restricted vendor delivery area. The Metrc information security staff look to validate deliveries include: • The name, license number, and premises address of the originating licensee; • The name, license number, and premises address of the licensee transporting the cannabis goods; • The name; license number, and premises address of the destination licensee receiving the cannabis goods; • The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premises, if any; • Arrival date and estimated time of arrival at each licensed premises; • Driver’s license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for transport Once all paperwork is verified; the Ohana Inventory Receiving team will verify the order by ex- amining packaging compliance, validity of labels, expiration dates, and test results against the shipping manifest before proceeding with a comprehensive count of each product delivered. Upon validation of products against the manifest, the Receiving team performs a comprehensive count of each delivered product and compares the manifest with the invoice to reconcile all details. Any product that is rejected at this stage will result in an updated manifest and invoice before the Ohana Receiving team signs off on the documents. Once all the above is verified, Ohana’s Receiving team accepts the order, labels are printed and placed on each product. The POS is updated with a product profile, pricing, and inventory, and is then activated for sales and fulfillment. Point of Sale System & Locations Ohana utilizes the Metrc compliant Indica Online Point of Sale (POS) in order to track and trace its cannabis inventory, customer information, and sales history. The POS tracks all relevant in- ventory data in term of quantity, weight, type, potency, and price. The POS also tracks customers that enter Ohana’s facility and go through the Check-In Procedure as well as a history of each customer’s purchases. As customers make a purchase, the POS updates inventory and sales data in real time. Ohana’s Indica POS operates on the Apple iPad with a secure user interface that’s intuitive and vertically integrated to minimize and reduce the likelihood of human errors that can result in com- pliance issues related to data. Each Ohana Cannabis Sales professional carries an iPad to assist customers with their selection and processes payment using the secure interface instantly and di- rectly on the sales floor. Unlike traditional dispensary sales formats that include long wait lines, sales counters, and high transactional procedures, Ohana uses a true Apple ® Store” format that allows customers to browse actual products and to consult” with our staff about various products before making a selection. Ohana’s Point of Sale, Track and Trace, and Inventory System includes the following characteris- tics: o Supports cannabis "regulations" with technology to prevent and monitor drug diversions o Integrates with and reports to Metrc in real time; o Promotes public safety and patient product safety with traceability; o Tracks cannabis "diversion" attempts with sophisticated reconciliation reporting; o Creates a vertically integrated "closed-loop" regulatory alert about regulatory limits; o Uses RFID (Radio Frequency Identification) technology combined with serialized item tracking within a configured range; o Captures real time inventory data; o Provides an inspection process with the tools necessary to complete onsite validation of inventory with audit capability and anti-piracy safeguards o Supports the auditing process with a series of exception reports o Provides for a real time digital transport manifest for customer deliveries giving access to law enforcement enabling them to quickly discover illegal activity during transportation o Tracks transfers between licensed premises o Allows regulatory users to view all licensee activities captured in the system o Creates an industry database of analytical information to establish trends and benchmarks for cannabis production o Allows criminal investigators to streamline field enforcement and compliance activities associated with licensees o Provides aggregate data regarding cultivation, production, transportation and sales of can- nabis within the regulated model o Provides a secure web hosted solution scaling to thousands of credentialed users Estimated Number of Daily Customers Ohana expects to serve approximately 200 storefront customers a day during the initial year oper- ation. Upon implementing our customer loyalty and delivery service to enhance the customer experience, we expect our daily customer base to grow to 500 during the second year and 1,000 during year 3 and beyond. In addition, we will build sufficient corporate owned mobile units to service regional customers with proven marketing and outreach methods that create awareness about responsible cannabis use and its therapeutic values. Our regional approach to marketing and sales will significantly increase our customer base as well the City of Fresno’s tax revenue from jurisdictions with bans since the sales transaction will be initiated from our facility in Fresno! Product Line Ohana plans to offer a full range of products that support customers on a tight budget to customers who regularly purchase cannabis up to the regulatory limits of dosage. Our products will include credible, licensed, and popular brands that are established as well as social equity wholesalers who are licensed but don’t have the resources to market their brands. At all of our locations, approximately 35% of shelf space for products is dedicated to social equity partners who own a license of their own as well as social equity partners who are a part of the Ohana Incubator Program and are developing cannabis solutions under the Ohana Cannabis brand. The remaining 65% of shelf space is dedicated to highly sought out popular brands such as Canndescent, Nug, Sherbinsky, Pacific Stone, Stiizy, Heavy Hitters, Pure, Kiva, Kanha, Papa & Barkley, Fiori, Vet CBD, and many more. Approximately 25% of our overall products are flower based, 25% are edibles, 20% are extract based, and 30% are CBD dominant products used to pre- dominantly target the elderly and customers seeking therapeutic remedies. The distribution of Ohana’s products are designed to cater to the traditional cannabis markets that are familiar with Weedmaps looking for THC products but most of our marketing dollars are fo- cused on creating awareness about cannabis CBD that is revolutionizing the rate of adoption among the elderly and baby boomers looking for alternatives to opioids for pain and anxiety man- agement as well as sleeplessness. On the wholesale production side, Ohana focuses on developing a variety of top shelf strains, strategically focused on high quality and organic Indicas, Sativas, and hybrids that are in high demand within both existing and developing markets. Our facilities are designed to specialize in development of highly potent CBD strains strictly for medicinal use with minimal THC or eu- phoric side-effects. Our customer-facing marketing teams perform extensive research to stay in tune with the market demand and work with the Ohana scientists and growers to genetically de- velop rare, exotic strains at our Research and Development facility located in Sacramento. Statistics show that 1 out 7 adults who are traditional cannabis consumers have no problems find- ing the brands they want. Ohana focuses its marketing dollars on the 6 out 7 adults who know of cannabis and hear that its essential” but haven’t made the leap to actually evaluate its impact within the non-psycho active product line. Ohana is very excited about the 85% market upside that is defining Ohana’s success across other jurisdictions. We would love to bring our approach to the City of Fresno. Cannabis Delivery Ohana utilizes secure delivery vehicles that are equipped with 360-Degree camera systems to mon- itor deliveries much like a storefront experience whereby everything is recorded. We expect to start with 3 delivery vehicles initially and as our regional marketing and outreach plans are exe- cuted, we expect to have 10 to 15 corporate vehicles serving customers across the greater Fresno area. Ohana’s delivery platform operates much like an Amazon®-Uber® crossover with state-of-the-art product & cash tracking system, dual customer verification, and on-board track and trace powered by cannabis consultants who are trained on security and safety measures to diffuse risks. Ohana’s Mobile Delivery Vehicles will include a fleet of hybrid and electric corporate vehicles with onboard 360-Degree security surveillance, Wi-Fi, and GPS technology that can track the vehicle, products, and cash instantly for our Fresno operation ; . Our delivery procedures include the following: A. Transportation Loading: i. Cannabis products are loaded inside a secure loading area at our permitted facility and under the supervision of a minimum of two employees. All products are transported from the dispensary to the vehicle and from the vehicle to the designated drop-off locations in a sealed and locked container. Access to the container will require both a combination input on an elec- tronic keypad and a physical key ii. All cannabis goods are placed in an opaque exit package that are child- proofed prior to leaving the premises iii. Delivery vehicles do not contain more than $3,000 of cannabis goods at any time B. Delivery Window: i. Deliveries only take place between 10:00 a.m. and 10:00 p.m. These time parameters are in accordance with BCC requirements and we will ensure compliance even in the face of unexpected circumstances. C. Tracking: i. Deliveries will be made only within the State of California which we con- firm by use of a route management platform and GPS tracking. ii. Ohana drivers are required to use a real-time wireless reporting of all deliv- eries used to monitor deliveries to prevent diversion during the delivery pro- cess iii. All delivery travel is monitored in real time to ensure drivers are not making any unexpected or unreported stops. D. Secured Inventory must meet the following standards: i. Vehicles are equipped with either a secure lockbox or locking cargo area. ii. Vehicles do not have any cannabis identification, and no medicine or para- phernalia will be visible. iii. The vehicles are new and corporate owned with temperature controls to pro- tect products iv. Products remain in the locked container during transport. The incoming container will be removed from the delivery vehicle under the supervision of a minimum of two employees. The container will only be opened once it is securely inside the secure loading and unloading area. v. Delivery vehicles will not contain more than $3,000 of cannabis goods at any time E. Delivery Drivers must meet the following standards: i. Deliveries will only be made by employees of the licensee ii. All deliveries from our facility will include the use of trained security per- sonnel in teams of two or more. All delivery drivers are required to suc- cessfully complete training in how to diffuse unforeseen circumstances iii. Delivery drivers must engage in two-way communication with the dispen- sary dispatch during transport in case of emergency. iv. Delivery drivers shall have a valid driver’s license and carry identification which shall be available to DOH, or its agents, law enforcement or other Federal, State, or Local government officials if necessary, to perform the inquiring entity’s functions and duties v. While engaged in the transport of cannabis and within a reasonable time before and after same, transport agents may not where any clothing or in- signia which signifies the agent may be in possession of cannabis. vi. All drivers with incoming cannabis are required to contact our dispensary dispatch at the origination of the transport process and ten minutes prior to arrival so that a security guard can meet them and escort them into the fa- cility. F. Delivery Manifest, Receipts, and the following will be carried during each delivery: i. Proof of automobile and corresponding liability insurance and placement of our dispensary as an additional insured will be required prior to operations and on a quarterly basis. ii. The name, license number, and premises address of the originating licensee. iii. The name, license number, and premises address of the licensee transport- ing the cannabis goods. iv. The name; license number, and premises address of the destination licensee receiving the cannabis goods into inventory or storage. v. The date and time of departure from the licensed premises and approximate date and time of departure from each subsequent licensed premises, if any. vi. Arrival date and estimated time of arrival at each licensed premises. vii. Driver’s license number of the personnel transporting the cannabis goods, and the make, model, and license plate number of the vehicle used for delivery SECTION 2 – SOCIAL POLICY AND LOCAL ENTERPRISE 2.1. OCC is committed to paying its employees a Living Wage and will offer entry level employees per hour. Managers will be salaried positions starting at per year plus merit bonuses. 2.2. OCC will offer all of its full time employees paid medical benefits, 2 weeks paid vacation, and 2 weeks paid medical leave per year. 2.3. OCC will provide training for all its employees pursuant to its employee handbook. We also plan to hire Nicole Ozburn as one of its managers. Ms. Ozburn lives in Fresno, and in addition to being a Fresno native, is an accomplished Human Resources Leader. She will be responsible for employee training programs and work place culture. OCC also plans to offer Community College Scholarships for all of its employees who are interested in furthering their educations. 2.4. OCC will be working with local non-profits like ABIRC to host local job fairs in order to recruit employees who meet the Social Policy criteria in Section 9-3316(b)(1) of the Fresno Municipal Code. OCC is also committed to ensuring that at least 70%-85% of their employees are residents of the City of Fresno. 2.5. All of the OCC managers will be Fresno residents who have resided for at least one year in the City of Fresno as of March 2, 2020. One of the Owners of OCC is also a longtime resident of the City of Fresno (Blong Xiong). 2.6 Ohana plans to hire the following positions locally. Our Statewide Activation team will fully train the local staff on general business management, cannabis products, customer service, regula- tory compliance, safety & security, and emergency management. Although Ohana is a statewide corporation, the local team will have decision making authority to manage the Fresno location based on the community needs and interest. Position 2020-2021 2021-2022 2022-2023 Roles & Responsibility General Manager 1 1 1 General Manager will be responsible for the overall operation of the facility, meeting growth milestone, and ensuring the entire operation runs smoothly via coordination with the Fresno team, community leaders, and enforcement agencies with full decision-making authority at the local level Sales Manager 1 2 3 Sales Manager will be responsible for ensuring that sales activities are compliant with regula- tory laws, sales staff is customer oriented and work as a team to maintain a strong and positive customer-facing practices to meet sales milestones Fulfillment Manager 1 2 3 Fulfillment Manager will be responsible for ensuring of product availability to support sales, verifying sales compliance with regulatory laws, and performing daily inventory and cash management tasks Sales Consultant 6 12 24 Sales Consultant is responsible for customer support and sales of cannabis products via con- sultation with customers to identify their needs and provide accurate facts and information about cannabis products based on verified data and 3rd party regulated test results Fulfillment Specialist 2 4 6 Fulfillment Specialist will be responsible for reviewing customer orders, verifying product availability, and fulfilling customer orders promptly and in compliance with regulatory laws Inventory Management Specialist 2 4 6 Inventory Management Specialist will be responsible for ordering inventory using the Metrc System, receiving and verifying inventory, as well as processing and activating inventory by following the regulatory laws for track and trace Dispatch Sales Consultant 2 4 6 Dispatch Sales Consultant is responsible for customer support and sales of cannabis products via phone consultation with customers to identify their needs and provide accurate facts and information about cannabis products based on verified data and 3rd party regulated test re- sults Delivery Driver 4 10 15 Delivery Drivers are responsible for transport of cannabis products to customers by following regulatory steps for verifying customer identity, delivery location, securing products and cash, carrying the necessary documentation for each delivery, and being proactive with safety and security measure during deliveries Security Officers 6 6 6 Security Officers will be responsible for customer check in upon validation of identity, moni- toring the premises inside and out, patrolling within 300 feet of the premises, preventing loi- tering and littering, and securing the premises at all time including during product deliveries Total 25 45 70 Ohana employees are required to complete a comprehensive cannabis education courses from a vendor approved by the state that includes cannabis handling. During orientation, new employees will receive a copy of the policies, procedures, standards, and quality controls described in this package. The policies will also be verbally discussed with them in order to emphasize their im- portance and to address any issues or concerns. Ohana staff will be required to adhere to the ZERO TOLERANCE policy for use of any mind-altering substance, including Cannabis, while on Ohana’s work schedule. Ohana will conduct monthly policy and performance review meetings with staff to reinforce Ohana’s customer service values, therapeutic focus, and reward strong performance in meeting Ohana’s business goals and objectives. New employees will be enrolled to successfully complete a week of general training at prior to working with customers. Training will be focused on customer management, conflict resolution, positive mindset and focus at place of work, and time management. After the general training, Ohana staff will attend an eight-course curriculum specially designed to cover all facets of can- nabis as medicine for therapeutic purposes. 1. The Endocannabinoid System 2. Cannabinoids 3. Terpenes 4. Symptoms 5. Patient Privacy & Putting Patients First 6. Products & Administration Techniques 7. Dosing 8. Cautions and Contraindications Employee retention will be carried out via regular performance reviews, prompt feedback, promo- tions, raises, and continuing education. 2.7. OCC will have more than 5 employees and is committed to working with the various labor unions who have organized the cannabis workforce in Fresno. We would be happy to sign a card check neutrality agreement or any other labor peace agreement as well. 2.8.1. Ohana Cannabis Workforce Plan- Fresno Ohana plans to hire the following positions locally. Our Statewide Activation team will fully train the local staff on general business management, cannabis products, customer service, regulatory compliance, safety & security, and emergency management. Although Ohana is a statewide cor- poration, the local team will have decision making authority to manage the Fresno location based on the community needs and interest. Ohana is making a commitment to hire 70%-85% of its employees locally from the City of Fresno. We will work with one of our owners, Blong Xiong, to host job fairs and reach out to the appro- priate community groups in order to ensure that Ohana has a workforce that meet the criteria of Section 9-3316 (b)(1) of the Fresno Municipal Code. We will be able to do this at the same time that our landlord is going through the design and construction of our building. We are also committed to paying a Living Wage to all of our employees. All Ohana hourly em- ployees will start at a minimum of $20 per hour plus health benefits. All of our Managers will be salaried at per year, with health benefits and bonuses. We are also committed to paying for any of our employees tuition to attend the local community college of their choice if any one wants to further their education. We will also be hosting an Entrepreneurs Academy to any one 18 years or older who would like to learn about starting and running your own business in an emerging industry. Ohana employees are required to complete a comprehensive cannabis education courses from a vendor approved by the state that includes cannabis handling. During orientation, new employ- ees will receive a copy of the policies, procedures, standards, and quality controls described in this package. The policies will also be verbally discussed with them in order to emphasize their importance and to address any issues or concerns. Ohana staff will be required to adhere to the ZERO TOLERANCE policy for use of any mind-altering substance, including Cannabis, while on Ohana’s work schedule. Ohana will conduct monthly policy and performance review meetings with staff to reinforce Ohana’s customer service values, therapeutic focus, and reward strong performance in meeting Ohana’s business goals and objectives. New employees will be enrolled to successfully complete a week of general training prior to work- ing with customers. Training will be focused on customer management, conflict resolution, pos- itive mindset and focus at place of work, and time management. After the general training, Ohana staff will attend an eight-course curriculum specially designed to cover all facets of can- nabis as medicine for therapeutic purposes. The Endocannabinoid System Cannabinoids Terpenes Symptoms Patient Privacy & Putting Patients First Products & Administration Techniques Dosing Cautions and Contraindications Employee retention will be carried out via regular performance reviews, prompt feedback, pro- motions, raises, and continuing education. 2.9. OCC is committed to serving as a Social Equity Incubator. The Founder of OCC has a back- ground in software development and developed a very effective incubator model which he has used in his cannabis businesses. We have been working with the Sacramento Asian Chamber and the City of Sacramento in advancing the Social Equity programs in the City of Sacramento with a special emphasis on working with the South East Asian Community in Sacramento. Ohana will work with ABIRC to do outreach, recruitment, and technical assistance to those that wish to enter the industry from the South East Asian Community. Even though we will have an emphasis on reaching out to the SEA Community, Ohana is committed to working with any and all social equity candidates. Ohana’s incubator business model is designed to support California’s social equity and under- ground concerns. The model is designed to encourage underground operators to transform their “back bedroom” facilities into legitimate business operations within facilities with appropriate zoning, security, and operational checks and balances. We believe effective public, private, and non-profit collaboration will be the best solution to transform the majority, if not all, of the underground operations into tax paying and responsible entities, which will focus enforcement activities on the exceptional cases that may remain. Ohana’s leadership has over 12 years of experience with successful Technology & Business incu- bator models. As such, Ohana is implementing these proven operational models across California to ensure of ownership, transparency, and operational success of Equity Candidates within the Cannabis Industry. Our proven approach includes, but is not limited to, the following compo- nents: The Business Model Applies to Cultivation, Manufacturing and Delivery-Only Ohana’s incubator models span across our operational presence in Cultivation, Manufacturing, and Delivery-Only Dispensaries. The Wholesale Cultivation and Manufacturing program includes assignment of interested entrepreneurs to fully developed, automated, and secure grow or man- ufacturing chambers. The Delivery-Only Dispensary program includes assignment of each inter- ested operator to a dedicated dispatch and a dedicated brand new vehicle fully developed, au- tomated, and secured with mobile security and verification solutions for patient, employee, and operator safety. Focused on Community Members Ohana carries out weekly community outreach to promote its incubator models. Ohana’s out- reach is carried out by organizing specific events at its Training Facilities or by participating in community-based programs and events to introduce and promote the Incubator models. Simple Program Entry Criteria Entry into the Ohana incubator models is simple and requires zero investment of funds by the qualified equity operators. However, our program is designed for operators with production and sales experience within the marijuana industry. Although Ohana is executing plans to implement a comprehensive training program, our first priority is to interject social equity in communities that are hit the hardest with underground wholesale and retail marijuana activities. In addition to experience, we require a clear background, with exemptions for former marijuana incarcera- tions that may be allowed by State and Local laws. 360 Degree Business Support Ohana’s incubator programs include operational capacity for growers, manufacturers, and deliv- ery-only retail operators. In addition, Ohana will provide these operators with tools and mentor- ing for general business administration, marketing, tax and financial management, legal, and gov- ernment relations support during the permitting process. No Required Capital for Entry Ohana requires no financial investment of funds or capital from qualified operators! The success of our program lies in the experience, independence, creativity, and invest of time by qualified operators to build their business operations. Ohana funds the entire operational facility and ca- pacity and recovers the operational financial support at the end of each production cycle via a negotiated net profit split. We want to eliminate the barriers to entry for operators to become legal and compliant. Reducing Underground Operations! Ohana’s goal is to target “back bedroom” operators engaging in illegal marijuana cultivation, manufacturing, or street sales due to lack of start-up funds for qualified real estate acquisition, retrofit, and permitting. In addition to providing 360-degree business administration and opera- tional support, Ohana will fund the BOP costs for operators who wish to remain within the Ohana facilities or CUP and BOP costs for operators seeking to spinoff into their own facility. Ohana offers such funding opportunity to operators after one year of successfully executing Ohana’s incubator standards for transparency, quality, security, and safety. And as stated in our Business Plan, Ohana will set aside 35% of its shelf space for licensed Social Equity cultivators and product suppliers 13 SECTION 3 – NEIGHBORHOOD COMPATIBILITY PLAN 3.1: Ohana Cannabis Company Plan to Proactively Address and Respond to Neighborhood Complaints Ohana Cannabis Co. has a proven track record in managing cannabis dispensaries among vibrant neighborhoods in dense city centers. That means years of experiencing proactively addressing common nuisance issues before they become neighborhood complaints. Monitoring the noise, light, odor, litter, vehicles, and pedestrian traffic are a consistent part of the management of a cannabis dispensary. And because these issues change with the seasonal fluctuations and growth of the business, Ohana devotes significant time and labor to their management--regularly analyzing, evaluating, and revising the strategies for dealing with them. In addition, not all neighbors are created equal. Some people are more sensitive to noise and light pollution, while others to odors. Ohana understands that as the “new kid on the block,” it is our job to respect these differences, and remember that the residents surrounding 315 E. Olive were here first. Additionally, we may own a business, but this neighborhood is their home. An expectation of peaceful use and enjoyment of their property is reasonable. We consider our neighbors to be like our best customers, and when it comes to nuisances, the customer is always right. One of the Ohana owners is Blong Xiong who was a Fresno City Council Member who represented this Council District (1) for 8 years. One of his roles will be to oversee all community outreach and interaction. If we are approved for a retail license, Blong will lead the Ohana effort to meet with all the neighbor and community groups interested in this project to make sure we address their concerns while the proposed new building is being designed, prior to the start of any construction. Noise To proactively reduce the possibility of noise pollution, and to provide a respectful and quiet environment, our dispensary will implement a strict code of conduct that will govern the behavior of all staff and customers, at all times-- while onsite, approaching, or leaving the premises. These include but are not limited to: 1. Restricting the volume of car stereos and amplified portable sound systems (in vehicles or on persons) while on the premises, including while entering and exiting the premises. 2. Strongly reducing the volume of in-house background music during regular business hours. 3. Issuing warnings for unnecessary honking, tire screeching, yelling, profanity, or any noise deemed disruptive, unnecessary or a nuisance. 4. Consistently managing the exterior of the premises for loitering and unnecessarily loud congregating of individuals affiliated or not affiliated with the property, with the understanding 13 that 315 E. Olive is adjacent to a bus stop, where waiting and congregating may be customary to a certain extent. 5. Using signage to remind customers to be conscientious of our neighbors. 6. Employing security personnel for 24-7, not intermittent, management of exterior. 7. Training employees to be cautious of early or late hours when opening or closing the business, conversing outside the premises before or after work, and moving items such as large trash bins with wheels, and opening or closing heavy dumpster lids. 8. Taking advantage of the new construction on the vacant lot of 315 E. Olive to purchase mechanical systems, such as heating and air conditioning units, with silencing features, and building enclosures to mitigate or eliminate commercial-grade noise. Strategic placement of such systems, as well as entrance and exit doors, closer to Palm Avenue, to avoid close proximity to the homes on the east side of the lot on Ferger Avenue. 9. Strictly enforcing all above rules. Any person or persons caught violating the rules of conduct, exhibiting any disruptive behavior, or creating a disturbance of any kind will be issued a warning by security staff and, depending on the severity, may be reported to law enforcement. Lighting Ohana will proactively address the issue of ambient light pollution by: 1. Reducing the amount of lighted signage facing Palm and Olive Avenues. Using soft, low voltage lighting. 2. Completely eliminating any lighted signage facing Ferger Avenue. 3. Installing lightly tinted windows to reduce the glare of bright interior lights (essential to a cannabis dispensary) onto the street. 4. During construction, installing down-facing exterior security lights that shine brightly onto entering customers and parking lot areas, but not horizontally into surrounding homes. 5. Ensuring that arriving cars have headlights facing the retail building, and not neighboring streets. Litter, Vehicles and Pedestrian Traffic Ohana will retain onsite security to patrol the outside of the building and parking lot to ensure that the exterior is kept clean and safe. Loitering will be immediately and calmly addressed in a non-threatening fashion, with training to that end. Outside security and staff will regularly clean the exterior of the building, parking lot, and surrounding areas, including the bus stop area. Extra care will also be taken to manage the flow of incoming and outgoing traffic. The site map of 315 E. Olive will show adequate parking for customer demand, thus reducing unnecessary backup and overflow onto neighboring streets. Pedestrians waiting to enter the premises, including during the COVID-19 pandemic where distancing restrictions are enforced, will be monitored by extra staff to ensure containment on the property itself, with careful efforts to 13 avoid neighborhood spillover. Delivery vehicles will be kept to a minimum and isolated into separate parking spaces so as not to burden or interfere with customer traffic. Responding to Neighborhood Complaints While every effort will be made to anticipate and proactively address common nuisance issues before complaints materialize, Ohana will ensure that its response to neighbor complaints is prompt, efficient, and professional. Because some neighbors may feel uncomfortable entering a cannabis dispensary, we will ensure that neighbors feel welcome to submit comments and complaints without having to step inside the premises. To that end, in addition to mailings introducing our business to the neighborhood, with comment card enclosures, Ohana will mount an exterior dropbox on the front of the property allowing for neighbors to anonymously submit written complaints at their convenience, without human interaction. Management staff will also be trained in taking and tracking neighborhood phone calls with professionalism, and swift action will be taken in response to any concerns. Ohana also has experience conducting regular neighborhood meetings and attending community association and neighborhood night-out events in order to have boots on the ground listening and responding to concerns. In addition, neighbors are often most comfortable addressing issues at casual community events, and Ohana will be dedicated to hosting and sponsoring those on a regular basis. 3.2: Management of Ohana Cannabis Company to Ensure Minimal Impact or Nuisance on Surrounding Community In addition to the above, Ohana will employ a full-time Community Development Director who will be available during business hours to address any community concerns about noise, loitering, excessive lighting, odor, or traffic. Together with the Head of Security, the CDD will routinely monitor the daily activities of the business, conduct surprise site inspections, and regularly meet with neighboring businesses and community leaders to ensure a direct line of communication in case of emergency issues. 3.3: Ohana Odor Mitigation Practices Ohana understands that being a good retail neighbor generally means insulating neighbors from commercial-grade odors that are a common part of any business. But being a cannabis dispensary means exercising a heightened level of diligence when it comes to odor mitigation, because cannabis has a reputation for emitting a smell. To that end, while dispensaries are relatively odor- free in comparison to cultivation and manufacturing facilities, Ohana uses state-of-the-art, commercial grade odor control equipment and ventilation systems that will ensure that all cannabis inside the dispensary has little or no detectable odor from the exterior of the building. 13 Two independent air-filtration technologies and one type of air purification device will be utilized to destroy air-borne pathogens and eliminate cannabis odor inside and outside of the dispensary. Specifics are laid out below. 3.4: Potential Sources of Odor Ohana does not expect to have any cannabis-related odors, as all products arrive to the dispensary prepackaged and sealed by the distribution company or the wholesalers. Any odors stemming from customer use once leaving the premises will be immediately addressed by outside security, as on-site consumption, even in the parking lot, is not permitted. Additionally, Ohana has a universal no-smoking policy on the premises, which covers not only cannabis products, but cigarettes and vaping of any kind. Odors may arise from refuse disposed of outside of the property, but all efforts will be utilized to contain the smell, including the use of contained waste bins. 3.5: Odor Control Devices and Techniques HEPA Filters High-Efficiency Particulate Air (HEPA) filters provide an extremely high level of filtration efficiency for small and large particulate contaminants and are widely applied in air filtration and air purification applications to control airborne particulate levels. A filter must capture a minimum of 99.97% of contaminants at 0.3 microns in size in order to meet U.S. standards for HEPA classification. HEPA filters are even more efficient in removing particles that are smaller than 0.3 microns and larger than 0.3 microns. All mechanical air-handling units in the dispensary will be outfitted with commercial HEPA filters. These filters will serve all spaces and will be used not just for odor control, but to assist in mitigating environmental contaminants by catching airborne particulates, infectious agents, and pests, if present. HEPA filters will be added on the return side of all air-handling units serving the dispensary. In addition, ultraviolet light emitters will be installed ahead of these HEPA filters in the return duct, which will aid in the destruction of additional microorganisms in the room air. Filters will be replaced in accordance with manufacturer’s recommendations. Active Carbon Filters Carbon filtration is a type of filtration in which activated carbon (i.e., charcoal) is used to remove contaminants, impurities, and odors through the process of chemical absorption. As odor- producing gases come in contact with the activated carbon in the filter, they are adsorbed, trapped and held in 179 million microscopic carbon pores. Impurities and odors will be greatly reduced, as all exhaust air will pass through the active carbon filters prior to discharge from the building and into the atmosphere. Ohana will install active carbon filters at all air exhaust points from the dispensary, ensuring that cannabis odor particles in the air leaving the facility will be trapped. Active carbon filters were selected because of their improved ability over particulate filters, such as HEPA, to remove 13 extremely small particulates (<.01 microns) like vapors and gases and because they are well- known to be useful for safely removing odors. Active carbon filters stop working as soon as all of the potential bonding sites are filled, so periodic replacement of the filters will be critical. The General Manager will be responsible for replacing the carbon filters as directed by the manufacturer. Ozone Generator Ozone generators produce ozone (O3), which attaches to odors, mold, mildew, bacteria, microorganisms, and other pollutants in a space, if present, and oxidizes them. This process purifies the air and leaves the space odor and contaminant free. If all ozone molecules are not used in oxidation, they then convert back to normal oxygen (O2) after about an hour. Ozone generators are effective at eliminating strong odors and contaminants such as mold spores in contained non-occupied spaces, but are not approved for use in occupied spaces due to potential health hazards in very high concentrations. Though high concentrations of ozone will not be generated, commercial ozone generators will be installed and used only in non-occupied spaces in the dispensary in order to comply with federal regulations of ozone and promote agent safety. OHANA CANNABIS plans to install commercial stationary ozone generator units in non-accessible and non-occupied open spaces above rooms. These generators are designed specifically for use in unoccupied spaces. Non- accessible open spaces will be built in above the ceilings in dispensary areas to accommodate ozone generators. Ozone generators will be set between 0.03 ppm and 0.10 ppm to ensure safe levels of ozone are maintained at all times and will be maintained in accordance with manufacturer’s recommendations. 3.6 Staff Odor Training and System Maintenance All Ohana staff members will be extensively trained on cannabis waste and disposal procedures, as detailed in Section 3.7. 3.7 Ohana Waste Management Plan First and foremost, Ohana will not sell cannabis waste. Ohana outsources its cannabis waste management to local companies that provide locked and sealed containers to store cannabis waste that are picked up twice per month and discarded by the cannabis waste management company in accordance with state regulations. Designated staff will dispose of cannabis waste in the designated secure and air-tight waste receptacles and place them in a restricted area on the licensed premises. As a part of the process, staff will provide the following information to the BCC and local agencies: 1. Name, business address, and license of the cannabis waste management company. 2. Name of the primary contact person at the company and contact person's phone number. 13 3. Documentation from the entity hauling the waste that indicates the date, time, product type, brand, and weight of cannabis waste removed from Ohana. Procedure for Destroying Cannabis During cannabis waste processes, a designated staff member 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 (5) years. As a part of this process, Ohana staff maintain an inventory record to track the following information: 1. The control numbers associated with the cannabis turned over for destruction. 2. The reason it was turned over for destruction. 3. The names and signatures of the law enforcement officials receiving the cannabis. 4. The amount turned over. 5. The date and time it was turned over. SECTION 5 - SECURITY PLAN SECTION 6 - LOCATION The subject property is located on the Northeast corner of Olive and Palm Avenues. It is a vacant lot in a part of Fresno that is ready for new investment. Ohana Cannabis has entered into a Letter of Intent with the Owner of the property who has agreed to build a 4100 square foot building on this 20,600 square foot lot to Ohana specifications. If awarded a cannabis retail license, Ohana will work with the surrounding community to make sure that the look and design of the building is an architectural fit. Blong Xiong, one of our own- ers, was a member of the Fresno City Council for 8 years and represented District 1 where the lot is located. He will ensure that Ohana meets with all of the neighborhood and community groups to address any interests or concerns they might have about their new neighbor. Ohana looked throughout the City of Fresno before deciding on this location. We know that many applicants are applying for multiple locations, but we decided to focus all of our efforts on this location since it is a vacant corner lot that straddles the lines between Districts 1 and District We are very excited to bring investment, sustainable design and positive energy to this great corner in the City of Fresno nestled between the Tower District and the Belmont. 6.2. Photos Section 7 - Community Benefits and Investments Plan 7.1. The Ohana Cannabis Company is committed to being a great neighbor and a vital part of the Fresno Community. OCC already has a 501(c)3, the Ohana Community Foundation, which will direct 4% of its gross revenues every year to non-profits and community- based organizations in the City of Fresno. Based on our 3 year pro-forma, we are committed to making annual chari- table donations of in donations in our first 3 years. As our business grows, we intend to make sure the City of Fresno benefits as well. We have a natural partnership with the South East Asian Community since Blong Xiong is a mem- ber of our ownership group. We will work closely with Blong and ABIRC to make sure we are supportive of the SEA Community. The SEA Community is the second largest ethnic minority group in the City of Fresno and we are looking forward to working with ABIRC and groups like: 1. The Fresno Center (formally known as The Center for New Americans) 2. Fresno Stone Soup 3. Lao Veterans of America, Inc., Fresno 4. Fresno Interdenominational Refugee Ministry (FIRM) 5. Special Guerrilla Unit (SGU)-another Veteran’s organizations 6. Parent University (Fresno Unified School District) – works with parents within the school district that are usually non-English speakers. 7. University of California Cooperative Extension 8. Poverello House – They work with the homeless community. Provides meals and shelter. Ohana also is committed to working with the Fresno Metro Black Chamber, Central CA Hispanic Chamber of Commerce, Fresno Area Hispanic Foundation, NAACP, Barrios Unidos, and the other Ethnic Minority Chambers to ensure inclusive participation and opportunity with our businesses. It is important that we build relationship and trust so that Ohana can represent the community through employment and economic opportunities. Ohana also wants to give financial support to organizations that work with the City’s diverse and challenged communities. OCC is also committed to supporting the Arts in Fresno. We picked a location the straddles the historic Tower District and we are looking forward to becoming a part of that community as well. We are also committed to working with Foster Youth and Veterans Groups. We are also open to directing resources where the City of Fresno believes they are most needed. The Ohana Community Foundation will be accepting grant applications year round, and will be reaching out to the Community on a year round basis under the leadership of Blong Xiong, Whit- ney Fong and Tony Sanders. 7.1.1. OCC is committed to providing funding for and hosting expungement clinics. Whitney Fong has lectured at the San Joaquin College of Law and will help oversee this program. 7.1.2. OCC is committed to creating an environmentally sustainable business. With respect to our location on the corner of Palm and Olive, we are working with the Landlord to build an energy/water efficient building. With respect to our delivery vehicles, we are committed to providing all of our drivers corporate owned hybrid/electric cars. Our dispatch and order software creates the most efficient delivery routes and patterns and really cuts down on total vehicle miles travelled on a daily basis. 7.1.3. OCC has chosen to locate at a vacant lot in a part of the City that is ripe for new investment at the corner of E. Olive and Palm on the border of Council District 1 and Council District 3. 7.2. OCC will develop fun and entertaining, age-appropriate classes for youth of all ages that use the performing and visual arts to communicate the danger of drug use, the realities of substance addiction, and importance of self-possession, and resistance to peer pressure. Our Community Outreach Officer, Tony Sanders, has extensive experience in using the arts to teach about difficult and sensitive topics, including family violence, conflict resolution, and diversity. He has done this work for Kaiser Permanente and he will be able to tap into this resource, and reach out to community experts in the fields of substance abuse and drug awareness programs. 7.3. OCC is committed to supporting the Fresno Community Reinvestment Fund on an annual basis as well. 13 13