Agenda packet, joint meeting, second session — Covina City Council, July 16, 2024

CITY COUNCIL/SUCCESSOR AGENCY TO THE COVINA

REDEVELOPMENT AGENCY/COVINA PUBLIC FINANCING

AUTHORITY/COVINA HOUSING AUTHORITY SPECIAL JOINT MEETING AGENDA

Tuesday, July 16, 2024, 6:15 p.m.
125 E. College Street, Covina, California
Council Chamber of City Hall
TO THE MEMBERS OF THE COVINA CITY COUNCIL AND TO THE CITY CLERK:

NOTICE IS HEREBY GIVEN that a Special Joint Meeting of the Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority is hereby called to be held on TUESDAY, JULY 16, 2024, at 6:15 PM, for open session in the Council Chamber of City Hall located at 125 E. College Street, Covina, CA 91723. Said Special Joint Meeting shall be for the purpose of conducting business in accordance with the items on the attached Agenda. No other business will be discussed.
/s/John C. King, Mayor of the City of Covina, California

IMPORTANT NOTICE
Members of the public may view the meeting live on the City’s website at www.covinaca.gov. To view from the website, scroll down on the home page and click "City Meetings", once on the page, click the highlighted word next to Video Library under the City Council Meeting Agendas and Minutes header. A live banner will appear at the start of the meeting.

Public Comments: During the meeting, there will be an opportunity for the public to speak. Public testimony is limited to five (5) minutes per speaker, unless, for good cause, the Mayor/Chairperson amends the time limit; a speaker’s time may not be transferred to another speaker. State Law prohibits the Council/Agency/Authority Members from taking action on any item not on the agenda. Those wishing to speak on a LISTED AGENDA ITEM will be heard when that item is addressed.

In Person: To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance of the Council Chamber and give it to the City Clerk. Your name will be called when it is your turn to speak.

Meeting Assistance Information: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk’s Office at [email protected] or 626-384-5430. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting.

Pages

CALL TO ORDER
Council/Agency/Authority Members: Walter Allen, III, Patricia Cortez, Hector Delgado, Mayor Pro Tem/Vice Chair Victor Linares, and Mayor/Chair John C. King

ROLL CALL

PUBLIC COMMENTS
To address the Council/Agency/Authority please complete a yellow speaker request card located at the entrance and give it to the City Clerk. Your name will be called when it is your turn to speak. Those wishing to speak on a LISTED AGENDA ITEM will be heard at this time. State Law prohibits the Council/Agency/Authority Members from taking action on any item not on the agenda. Individual speakers are limited to five minutes each, unless, for good cause, the Mayor/Chairperson amends the time limit.

NEW BUSINESS
City Council Consideration of Appeal by Element 7/Infinity Assets Covina LLC at 678 S. Citrus Avenue, Covina, CA Related to the Rejection of its Proposal Under RFP 2023-02 – Establishment of a Commercial Cannabis Retail or Microbusiness
3 Staff Recommendation:

Open the Appeal Hearing, Receive Public Testimony and Close the Hearing;

1. Make finding that the appeal is exempt under the California Environmental Quality Act (“CEQA”);

2. Consider the appeal of the City’s Cannabis Evaluation Committee’s rejection of the application by Element 7/Infinity Assets Covina LLC at (678 S. Citrus Avenue, Covina, CA) under RFP 2023-02, with the following options:

3. If the City Council agrees with the decision of the City’s Cannabis Evaluation Committee, then sustain its decision.

If the City Council can make the findings to support the appeal, then reverse the City’s Cannabis Evaluation Committee’s decision and authorize Element 7/Infinity Assets Covina LLC to continue under the RFP evaluation process.

ADJOURNMENT
The Covina City Council/Successor Agency to the Covina Redevelopment Agency/Covina Public Financing Authority/Covina Housing Authority will adjourn to its next regular meeting of the Council/Agency/Authority scheduled for July 16, 2024, at 7:30 p.m. for open session inside the Council Chamber at City Hall, located at 125 East College Street, Covina, California, 91723.

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CC Special Meeting

AGENDA ITEM REPORT
Meeting: July 19, 2024
Title: City Council Consideration of Appeal by Element 7/Infinity Assets Covina LLC at 678 S.

Citrus Avenue, Covina, CA Related to the Rejection of its Proposal Under RFP 2023-02 – Establishment of a Commercial Cannabis Retail or Microbusiness Recommendation: 1. Open the Appeal Hearing, Receive Public Testimony and Close the Hearing;

2. Make finding that the appeal is exempt under the California Environmental Quality Act (“CEQA”);

3. Consider the appeal of the City’s Cannabis Evaluation Committee’s rejection of the application by Element 7/Infinity Assets Covina LLC at (678 S. Citrus Avenue, Covina, CA) under RFP 2023-02, with the following options:

A. If the City Council agrees with the decision of the City’s Cannabis Evaluation Committee, then sustain its decision.

B. If the City Council can make the findings to support the appeal, then reverse the City’s Cannabis Evaluation Committee’s decision and authorize Element 7/Infinity Assets Covina LLC to continue under the RFP evaluation process.

BACKGROUND:

On February 21, 2023, the City Council adopted Ordinance 23-01 related to the establishment of a Commercial Cannabis Business Permit Program. This Ordinance included revisions to the City’s Zoning Ordinance to allow a maximum of three (3) Commercial Cannabis businesses (1 business per 15,000 residents) in certain light manufacturing (M-1) and commercial zones and a six hundred (600) foot buffer requirement from certain sensitive uses. Further, the Ordinance includes a comprehensive set of regulations related to development standards, security, business operations, enforcement mechanisms and an entitlement process (conditional use permit, site plan review and development agreement) that will be subject to the review of the Planning Commission and City Council.

Additionally, on September 19, 2023, the City Council approved a Request for Proposals (“RFP”) document and authorized staff to solicit proposals from qualified applicants. As part of the RFP document, the City established a dedicated webpage - www.covinaca.gov/cannabisprogram - to serve as the centralized hub of information related to the Cannabis Program RFP including related background materials, the RFP document and a Frequently Asked Questions section to support applicants. In order to ensure an equitable and transparent process, all formal communications (RFP Addenda, Schedule Changes, etc.) provided by the City have been made in writing and posted to this webpage.

DISCUSSION:

In accordance with the RFP document, a mandatory pre-proposal meeting was held for prospective applicants on October 5, 2023 at 11:00 a.m. at City Hall. This mandatory pre-proposal meeting provided applicants with an overview of the City’s centralized webpage, RFP timeline and evaluation categories/phases, among other details.

A total of twenty-eight (28) applicants attended the meeting.

Following this meeting, approximately 124 questions were received regarding the RFP from prospective applicants. Responses to these questions were provided on October 24, 2023, October 31, 2023, November 22, 2023 and on December 20, 2023. Additionally, two (2) addenda were issued to the RFP as follows:

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 Addenda No. 1 – Published on December 21 2023 to adopt revisions to the RFP document and revise the proposal submittal date to January 22, 2024 at 2:00 p.m. at the City Clerk’s Office at Covina City Hall.  Addenda No. 2 – Published on January 18, 2024 to revise the proposal submittal date to January 31, 2024 at 2:00 p.m. at the City Clerk’s Office at Covina City Hall.

Phase I Evaluation
As described in the RFP, Responses to questions. and Addenda No. 1 and 2 issued by the City (“Attachment 1”), the RFP schedule includes multiple evaluation phases, with Phases I/II being open to any interested applicants who attended the mandatory pre-proposal meeting as verified by the official sign-in sheet (also posted to the City web site) and Phases III/IV being open to applicants that score 80% or greater (1,600 out of 2,000 points) in Phase I/II. Page 8 of the RFP document explains that “Applicant proposals will be reviewed for completeness and responsiveness to the RFP document. Proposals will be first screened qualitatively, on a pass/fail basis under the following categories:
 Payment of Application Fees
 Completion of Zoning Verification and Evidence of Property Site Control  Completion of Background Checks for Each Listed Owner  Applicant provided three (3) hard copies and one electronic copy on a flash drive of proposal.  Proposal length does not exceed 150 pages, not including financial documents, spreadsheets, live scan/background checks, labor peace agreement or leases.  Proposal is written in size 12 font.
 Completion of Letter of Intent and Acknowledgements by Each Listed Owner  Completion of California Cannabis Business License Acknowledgement Form  Completion of Addenda No. 1 and 2
 Verification of attendance at the mandatory pre-proposal meeting as outlined in the Questions and Responses
 Submittal of proposal before deadline of January 31, 2024 at 2:00 p.m. at the City Clerk’s Office at Covina City Hall
APPLICATION AND APPEAL SUBMITTED BY ELEMENT 7/INFINITY ASSETS COVINA LLC Following the review of the application submitted by Element 7/Infinity Assets Covina LLC (“Infinity Assets”), it was determined that:

1. The proposal submittal did not include a signed acknowledgment of Addenda No. 1

2. The length of the proposal narrative was greater than the 150-page count limit established in the RFP.

In its appeal letter (“Attachment 2”), Infinity Assets asserts the following in response:

1. Proposal Submittal did not include a signed acknowledgment of Addenda No. 1 i. Appeal Claim: Maintains that its failure to include this document was a clerical mistake and that the City should have notified the applicant to make corrections.

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Response: The RFP released on September 28, 2023 and posted to the City’s Cannabis Program Website (www.covinaca.gov/cannabisprogram) specified on page 4 that: “The City will issue any revisions to this RFP as addenda and will distribute addenda to all potential proposers by posting addenda on the City’s website www.covinaca.gov/cannabisprogram. Proposers are responsible for acknowledging receipt of all addenda in its Proposal.”
Following a question and answer process with applicants, Addenda No. 1 was posted to the City’s Cannabis Program Website (www.covinaca.gov/cannabisprogram) on December 21, (verify per earlier and make consistent) 2023 to revise and clarify portions of the RFP document. The first page of Addenda No. 1 is an acknowledgement form followed by the revised RFP document with underlined additions and crossed-out deletions. As noted on this form, “All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.” Additionally, the bottom of the acknowledgement form explains that “**This form must be included with your bid proposal packet.”
Therefore, the review committee determined the proposal to be unresponsive and it was rejected from further consideration.

2. The length of the proposal narrative was greater than the 150-page count limit established in the RFP.
i. Appeal Claim: Financial Documents were included in the applicant’s total page count Response: Financial documents were not included in the applicant’s 150-page count. ii. Appeal Claim: The architectural renderings included in the proposal should not be included in the applicant’s total page count, because they are similar to financial and property control documents and demonstrate compliance with local guidelines.

Response: The RFP and Addenda specifically exclude financial and property control documents, but do not reference architectural renderings.
iii. Appeal Claim: The total page count for the Element 7 application was 150 pages, with 120 pages being applicable to the proposal narrative page limit.

Response: The total length of the Element 7 proposal was 278-pages. Of that, it was determined that 190 pages were subject to the proposal narrative page limit of 150-pages. Consistent with the RFP document, Addenda No.1 and #2 and guidance through the applicant question/answer process, the following items were not included in the 150-page count limit: Cover Page, Addenda No. 2 Forms, CA Business License Acknowledgment Form, RFP Scoring Methodology, Appendices (Table of Contents, Labor Peace Agreement, Lease, State Licenses, Proof of Capital, Livescan Forms and Letter of Intent).

Therefore, the review committee determined the proposal to be unresponsive and it was rejected from further consideration.

SUMMARY
The City’ Request for Proposals established an equitable and transparent process for prospective cannabis retail and microbusiness applicants. A mandatory pre-proposal conference was held to provide applicants with an

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overview of communications, proposal evaluation phases, evaluation categories and schedule. Additionally, a centralized webpage was established for formal communications and to provide equal access to RFP information.

This process yielded approximately 124 questions from prospective applicants and eleven (11) proposals.

Consistent with the RFP, Questions and Responses, and Addenda, the City’s Cannabis Evaluation Committee screened applications under the Phase I evaluation to ensure that applications were complete and responsive to the RFP document, Question and Responses, and Addenda. These criteria help to maintain a level playing field for applicants and ensure that applicants are familiar with the City’s requirements. Of the eleven (11) proposals that were received through this process, one (1) applicant did not provide a signed copy of Addenda No. 1 and meet the RFP’s proposal narrative page count limit of 150-pages.

OPTIONS FOR THE CITY COUNCIL
In considering the appeal of the rejection of the cannabis application as non-responsive, the City Council has two options:

1. The Council may agree with the decision of the Cannabis Evaluation Committee and sustain its decision; or

2. The Council may disagree with the decision of the Cannabis Evaluation Committee, or believe that it can make the findings to uphold the appeal and allow Elements 7/Infinity Assets Covina LLC to proceed under the RFP evaluation process.

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1 CITY OF COVINA

REQUEST FOR PROPOSALS (RFP)
FOR

CANNABIS RETAIL BUSINESS
OR

CANNABIS MICROBUSINESS
RFP 2023-0X
[CITY LOGO HERE]
PROPOSAL DEADLINE: Wednesday, December 20, 2023 – 2:00 PM.

CITY OF COVINA

CITY CLERK OFFICE
125 E. COLLEGE STREET
COVINA, CA 91723
ATTN: Evaluation Committee

ATTACHMENT A

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2 CITY OF COVINA

CITY MANAGERS OFFICE

REQUEST FOR PROPOSAL FOR THE ESTABLISHMENT OF A

CANNABIS RETAIL BUSINESS OR CANNABIS MICROBUSINESS

INTRODUCTION
The City of Covina is requesting proposals from qualified individuals or companies to operate a cannabis business or a cannabis microbusiness within City limits. This RFP is being issued pursuant to the provisions of the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”). The City may ultimately issue no more than three (3) Cannabis Business Permits (one per every 15,000 residents, with every fraction thereof rounded down), but may issue less at its sole discretion, per Covina Municipal Code Section 5.80.080 (codepublishing.com/CA/Covina/). The individuals or companies selected in connection with this RFP will then be moved forward into the formal Cannabis Business Permit and Conditional Use Permit (“CUP”) phases of the process. The selection of individuals or companies to move forward into the formal Cannabis Business Permit and CUP phases of the process does not guarantee that those selected will be granted a Cannabis Business Permit or the required CUP.

Pursuant to Resolution CC 2023-XX “Process Standards Applicable to Commercial Cannabis Permit Applicants and Their Representatives”, City Councilmembers will not respond to any correspondence, inquiries, messages or contacts (“Communications”), whether in person, by phone or by electronic means, regarding anything related to commercial cannabis permits and related zoning and land use issues from interested parties (including permit applicants or their representatives). Said Communications will be forwarded to appropriate City staff for response. As such, please direct all inquiries to [email protected].

Those selected to move forward will be issued a Notice to Proceed (NTP) letter and will be responsible for securing a CUP and related entitlements (including the payment of related fees) through the standard City entitlement process as outlined in Chapter 17.84 (Cannabis Prohibitions and Regulations) of the City Municipal Code (codepublishing.com/CA/Covina/). The Applicant must file for a CUP Preapplication with the City’s Community Development Department – Planning Division within 60 days from the date of the NTP. In addition, a successful applicant will be required to enter into a Development Agreement with the City (See Attachment 1). The Development Agreement must be fully executed and recorded prior to the issuance of a Cannabis Business Permit and commencement of any commercial cannabis business operation in the City.

In addition, the selected entities will be responsible for processing all required building permits, state licensing, and all other applicable requirements prior to start of business operations. Prior to the commencement of any cannabis retail business, or cannabis microbusiness operation within the City as the result of this RFP, the physical site conditions, improvements, and all related representations included in the application are subject to verification by the City Manager and/or his designee and the Police Chief and/or his designee. Upon this final inspection and approval, the Cannabis Business Permit will be issued

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3 and be valid for twelve (12) months from the date of issuance per Covina Municipal Code Section 5.80.120 (codepublishing.com/CA/Covina/).

The City reserves the right to reject all proposals with or without cause per Section 5.80.090. The successful candidates chosen through the RFP process are not guaranteed the required Cannabis Business Permit, the required CUP, or any other required license or permit(s) from the City, the State of California, or any other governing entity. Participation in this RFP process is at the sole risk of the participants.

BACKGROUND
In November 2016, California voters approved Proposition 64 by a 57% majority, which allows the adult use of cannabis and established regulations related to cultivation, manufacturing, testing and retail sales.

As a part of these regulations, cities maintain the ability to regulate local businesses, enforce zoning rules, impose taxes and penalize unpermitted uses. State law further requires businesses in this industry to obtain a local permit prior to obtaining a State license.

In summer 2020, the Covina City Council requested an update on statewide regulations related to cannabis.

This request was prompted by ongoing changes in the regulatory environment including the State’s adoption of the MAUCRSA, coupled with the observation that a growing number of local agencies have decided to implement local programs. Following its discussion, the Council requested the creation of a Cannabis Ad-Hoc Committee (“Committee”) comprised of two Councilmembers and staff from the City Manager’s Office, City Attorney’s Office, Police Department and Community Development Department to study the issue further.

Over the last two years, the City has engaged in an extensive analysis of the State’s voter-approved legalization of cannabis products. This analysis has included a comprehensive review of laws, the study of other communities that have adopted local cannabis programs, an evaluation of potential public safety/public health impacts associated with cannabis and a robust community outreach component to engage the public on the topic.

In April 2022, the City Council reviewed a report prepared by the Committee that detailed the issues the Committee studied and offered recommendations for further consideration. Following discussion, the Council requested that a draft ordinance be prepared for further consideration. The Council also requested that staff conduct additional research with communities that have established local cannabis programs to evaluate public health and safety impacts resulting from their operations.

Pursuant to these efforts, on January 24, 2023 the Planning Commission recommended adoption to the City Council of the proposed amendments to Title 5 and Title 17 of the Municipal Code. Subsequent to that on February 21, 2023, the City Council adopted Ordinance 23-01 amending Title 5 (Business License and Regulations) and Title 17 (Zoning) of the Covina Municipal Code to allow the establishment and operation of cannabis retailers (delivery only and/or storefront sales) in the C-3 commercial zone (central business), C-3A commercial zone (regional or community shopping center), C-4 commercial zone (highway) and C-5 commercial zone (specified highway) and cannabis microbusinesses in the Light Manufacturing Zone in the City.

SCOPE OF SERVICES
This is a Request for Proposal to operate a cannabis retail business or cannabis microbusiness within the City of Covina pursuant to the City Municipal Code and the MAUCRSA. This RFP is intended to screen

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4 potential cannabis business operators within the City to achieve the highest quality cannabis business operations and associated developments that will strengthen and sustain the safety, character, desirability and stability of the community. Participation in the RFP process is a requirement to obtain a Cannabis Business Permit and CUP from the City of Covina. It is however, only the first step in the process and comes with no guarantees. The successful candidates chosen through the RFP process are not guaranteed the required Cannabis Business Permit, the required CUP, the required building permits, or any other required license or permit(s) from the State of California or any other governing entity. Participation in this RFP process is at the sole risk of the participants.

INQUIRIES and ADDENDA
For inquiries regarding this RFP, please contact the City’s representative via electronic mail at [email protected]. Proposers must e-mail inquiries no later than 2:00 p.m. on Monday, October 23, 2023. Inquiries received after the specified date and time will not be answered.

The City will issue any revisions to this RFP as addenda and will distribute addenda to all potential proposers by posting addenda on the City’s website www.covinaca.gov/cannabisprogram. Proposers are responsible for acknowledging receipt of all addenda in its Proposal. Therefore, each proposer should reference the City’s website to verify that he or she has received all addenda issued, if any. The City’s issuance of a written and posted addendum is the only official method whereby the City will interpret, clarify, or provide additional information concerning this RFP. No oral revisions to any provision in this RFP shall be binding.

SELECTION SCHEDULE
Phases I/II – Open to All Applicants
(All deadlines may be subject to change. Any changes will be announced via the City’s website at Covinaca.gov/cannabisprogram) RFP Release Thursday, September 28, 2023
Pre-Proposal Meeting* Thursday, October 5, 2023 11:00 a.m.

Covina City Council Chambers,
125 E. College Avenue Covina CA 91723
Deadline for Questions Monday, November 6, 2023 by 2:00 p.m.

Must be submitted in writing and either emailed to
[email protected] or hand delivered to the
City Clerk’s Office prior to deadline.

Response to Questions/ on or about Wednesday, November 22, 2023 Issue Addenda, if necessary
Deadline to Request Zoning Verification Thursday, November 30, 2023 by 2:00 p.m.

Must be received by City Clerk’s Office
Covina City Hall, 125 E. College St. Covina CA 91723
Deadline for Proposals Wednesday, December 20, 2023 by 2:00 p.m.

Must be received by City Clerk’s Office
Covina City Hall, 125 E. College St. Covina CA 91723
Release Phase I/II Scores Tentatively Scheduled for late January 2024 Schedule could be delayed depending on number of applicants

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5 Phase III/IV – Open to Applicants Scoring 80% and Higher in Phases I/II (All Dates are Tentative - Schedule could be delayed depending on number of applicants in Phase I/II) Interviews February 2024
Release Phase III Scores March 2024
City Council Consideration April 2024
Notice to Proceed TBD
Deadline to Submit Preapplication for CUP 60 days following receipt of Notice to Proceed Deadline to Submit BL/CUP Applications TBD**
Development Agreement TBD***
Business License TBD****
*Pre-Proposal Meeting is mandatory and will take place in City Council Chambers at City Hall. ** CUP issuance subject to Planning Commission recommendation and City Council approval after requisite public hearings
***A Development Agreement between the City and Applicant must be executed and recorded prior to any commercial business operations (see Attachment 1).
***Business License will only be issued after a CUP has been obtained by the Applicant, a Development Agreement with the City has been executed, and final approval of site facilities by City.

APPLICATION PHASES
The City of Covina’s Request for Proposals will consist of several phases as follows:

Phases I/II
Interested applicants may submit proposals for a Cannabis Business Permit. Applicants are required to obtain the following and submit with their proposal, prior to the submittal deadline on December 20, 2023 at 2 p.m.:

Cannabis Zoning Verification
Applicants must submit a Cannabis Zoning Verification Form (Attachment 2) to the City Clerk’s Office, confirming that the proposed business location for the application is located in an acceptable zoning location and outside of the established sensitive use buffers. The form will be accepted only if applicant provides proof of property site control (signed and notarized purchase agreement, lease agreement, letter of intent to lease or proof of ownership). Applicants must submit a Cannabis Zoning Verification Form no later than November 30, 2023 at 2 p.m. to the City Clerk’s office to allow sufficient review time prior to the application deadline. Any Cannabis Zoning Verification Forms submitted after November 30, 2023 at 2 p.m. shall not be processed.

Background Check
All business owners must complete a Live Scan background check prior to the application deadline as further described in Section 2. An “Owner” means any of the following: a person with an aggregate ownership interest of 20 percent or more in the cannabis business, unless the interest is solely a security,

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6 lien or encumbrance; or an individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:

1. A member of the board of directors of a nonprofit.

2. A general partner of a cannabis business that is organized as a partnership.

3. A nonmember manager or manager of a cannabis business that is organized as a limited liability company.

4. The trustee(s) and all persons who have control of the trust and/or the cannabis business that is held in trust.

5. An individual with the authority to provide strategic direction and oversight for the overall operations of the commercial cannabis business, such as the chief executive officer, president or their equivalent, or an officer, director, vice president, general manager or their equivalent.

6. An individual with the authority to execute contracts on behalf of the cannabis business.

7. When an entity is an owner in a cannabis business, all entities and individuals with a financial interest in the entity shall be disclosed to the city and may be considered owners of the cannabis business. For example, this includes all entities in a multi-layer business structure, as well as the chief executive officer, members of the board of directors, partners, trustees and all persons who have control of a trust and managing members or nonmember managers of the entity. Each entity disclosed as having a financial interest must disclose the identities of persons holding financial interests until only individuals remain.

Letter of Intent and Acknowledgements
Applicants must submit a Letter of Intent and Acknowledgements, in the form attached to this RFP (Attachment 3) and further described below in Section 1. This letter acknowledges an applicant’s understanding that this RFP is not binding, may not result in the award of a Cannabis Business Permit in the City of Covina and that the City, in its sole discretion may cancel the RFP process at any time. Further, the letter acknowledges several provisions related to the City’s local commercial cannabis zoning code, operating agreements and land use entitlements, among others.

Payment of Fees
Applicant must pay fees listed in the City fee schedule for Phases I/II of the Local Commercial Cannabis Permit RFP Program. Please note that background check fees may vary by applicant, depending on the number of proposed business owners in the business entity.

Proposal Submittal and Review
Applicant proposals will be reviewed for completeness and responsiveness to the RFP document. Proposals will be first screened qualitatively, on a pass/fail basis under the following categories:
o Payment of Application Fees
o Completion of Zoning Verification and Evidence of Property Site Control o Completion of Background Checks for Each Listed Owner o Applicant provided three (3) hard copies and one electronic copy on a flash drive of proposal.

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7 o Proposal does not exceed 150 pages, including financial documents, spreadsheets, etc. (not including live scan/background check information).
o Proposal is written in size 12 font.
o Completion of Letter of Intent and Acknowledgements by Each Listed Owner Following the qualitative review to ensure responsiveness, proposals that passed will be evaluated on a technical basis according to the following criteria:
o Qualifications – 500 points (Section 3 below)
o Experience – 250 points
o Industry Knowledge – 100 points
o Ownership Team – 50 points
o Claims/Litigation History – 100 points
o Business Plan - 400 points (Section 4 below)
o Operations Protocols – 100 points
o Product Offering/Controls – 40 points
o Market Assessment – 70 points
o Financial Plan/Funding – 70 points
o Records Software – 30 points
o Track/Trace – 10 points
o State Testing Regulations – 20 points
o Employee Training – 20 points
o Customer Education – 20 points
o Implementation Timeline – 20 points
o Community Benefits – 200 points (Section 5 below)
o Facility Design/Neighborhood Compatibility - 400 points (Section 6 below) o Exterior Design – 100 points
o Design Fit with Neighborhood – 100 points
o Integration of Security Measures in Design – 100 points o Air Quality/Odor Control – 100 points
o Security Plan – 500 points (Section 7 below)
o Experience -250 points
o Safety Education – 25 points
o Theft Reduction Measures – 20 points
o Cash Management Plan – 50 points
o Product Access Control – 20 points
o Delivery Security Plan – 50 points
o Security Plan – 35 points
o Video Surveillance Plan – 25 points
o Armored Vehicle Use – 15 points
o Youth Consumption Plan – 10 points
Proposals will be evaluated by the City’s third-party consultant/evaluator and a committee of City representatives according to the evaluation criteria listed above. Following this review, scores will be tabulated for each applicant. Proposals scoring 80% (1,600 points) or greater will be eligible to proceed to Phases III and IV of the RFP process. The City will send notification letters to applicants that are eligible to

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8 proceed to Phases III/IV and applicants that are not eligible to proceed. Applicant scores may not be appealed.

Phase III
Applicants that score 80% (1,600 points) or greater in Phase III/IV must pay fees listed in the City fee schedule for Phases III/IV of the Local Commercial Cannabis Permit RFP Program, should they wish to continue in the process.

Following payment, eligible applicants will be assigned a date/time to conduct a presentation/interview. A notice of this interview will be provided at least twenty-one (21) calendar days prior to the interview.

The interview will be facilitated by the City’s representative and consist of a presentation, followed by the applicant followed by questions from the City’s review committee. The review committee shall consist of the City’s third-party consultant/evaluator and City staff members appointed by the City Manager.

Following the interview, the City’s third-party consultant/evaluator and City review committee will evaluate applicants using the evaluation criteria listed below:
o Responsiveness – 50 points
o Explanation of Qualifications – 50 points
o Explanation of Operations – 25 points
o Explanation of Security Plan – 25 points
o Explanation of Community Benefits – 25 points
o Explanation of Neighborhood Fit and Design – 25 points Applicants will receive scores based on the categories set forth above. Proposals scoring ninety 90% (180 points) and above will be placed on a ranking list and advance to Phase IV. If no proposal scores ninety 90%, then the top three scorers will advance to Phase IV.

Phase IV
The City’s review committee will present the ranking list to the City Council for consideration to issue a Notice to Proceed (“NTP”) to award permits. Applicants will be provided the opportunity to address the City Council, should it desire to do so. Following the City Council’s consideration of the ranking list, applicant testimony and public comments, the City Council, in its sole discretion, may choose to issue a NTP to any applicant receiving 90% (180 points) and above in Phase III (or any of the top three applicants if no applicants scored 180 points or above), or none of the applicants.

Following issuance of an NTP, the applicant will have sixty (60) days to file its preapplication for a CUP, with the payment of all related fees. No extension periods will be provided. Should the applicant not meet this requirement, the applicant shall forfeit its ability to submit a preapplication for a CUP or a CUP application and the City may issue a NTP to another eligible applicant.

Appeals
Appeals are limited and shall be governed by the provisions set forth in Covina Municipal Code Section

5.80.180.

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9 PROPOSAL FORMAT
Proposals shall be concise, well-organized and demonstrate the applicant’s qualifications and experience operating a cannabis business or similar retail operation or microbusiness. The proposal shall contain, at a minimum, all of the required materials identified below. Any additional supplemental materials that an applicant believes will further show their qualifications and abilities to operate their cannabis business successfully are highly encouraged and can be included as an Appendix in the proposal. Proposal narratives shall be written in 12-point font and not exceed 150 pages (including financial documents, spreadsheets and other attachments and appendices). The 150-page limit does not include live scan/background checks, labor peace agreement and leases.

Failure to do so will automatically disqualify the application from consideration. This shall provide proof of the applicant(s) interest and acknowledgements of what will be required to operate a cannabis retail business or microbusiness in the City of Covina.

Section 2. Completed City of Covina Police Department Background Check(s) All required owners/individuals for the Cannabis Business Permit and CUP are required to complete a State of California Request for Live Scan Service via a location of their choosing in compliance with Covina Municipal Code Section 5.80.060. Failure to do so will automatically disqualify the application from consideration.

Section 3. Qualifications of Owner(s)

3.1 Business Entity, Experience, Local Agency References This section requires that the applicant describe the type of proposed business entity, including the disclosure of any parent and/or affiliated companies. Describe licenses filed with the California Secretary of State or other documents that confirm established business entity.

Previous, legal, cannabis retail experience is highly desirable. Provide a listing of a) Existing legal cannabis business locations in California and number of years in operation; b) Existing legal cannabis locations outside of California and number of years in operation; and c) Existing permits currently held without active business establishments, including circumstances related to not opening (recently awarded, in entitlement/plan check phase or other circumstances). Additionally, a maximum of three (3) public agency references where existing businesses currently operate.

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10 establishments with other local agencies. Discuss any familiarity with local government entitlement processes, planning/building plan check and permitting, to efficiently open a cannabis establishment.

Include any industry-related affiliations and/or involvement that the applicant/entity has to benefit the cannabis industry.

3.3 Ownership Team
This section consists of a narrative outlining the listed owner(s) qualifications to own and operate a cannabis business. This shall include, but is not limited to, education, experience, skills, training, professional licenses, special certifications and any other information that may more fully show the competencies of the owners of the business. Resumes/Curriculum Vitae shall not exceed two (2) pages per owner and include a minimum of two (2) professional references per listed owner. Describe listed owners’ involvement in the Covina community, including activities and affiliations and length of time involved.

3.4 Claims/Litigation History
Provide a listing of all open/closed filings, claims, bankruptcies judgements and liens associated with the business entity, its parent companies and/or affiliates since 2015. Identify any code enforcement actions against the business entity or any lawsuits/claims that a business entity has filed against a local agency or that a local agency has filed against the business entity.

Section 4. Business Plan
This section requires the preparation of a detailed “Operations and Management Plan” (O&M) for the proposed business. This document will guide all aspects of the business. The business will be required to operate in full conformance with O&M throughout the operational existence of the business. The City and applicant hereby acknowledge and understand that the O&M will be revised throughout the process and life of the business, but, it is highly encouraged that the applicant put as much forethought, care, and consideration into the O&M so that the City can properly evaluate the business operation.

The O&M must contain sections detailing how the business will function and address all aspects of running the business in regards to the categories listed below. It may also contain any additional information the owners feel is critical to the safe and successful operation of their business, and any items that may make theirs a more superior business format compared to others.

At a minimum, the O&M must contain the following information for both a cannabis retail operation and a cannabis microbusiness operation, in accordance with Title 5 and Title 17 requirements, whether expressly listed below, or not.

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11 adequate staffing to serve customers; Contingency plans for peak customer volumes and/or logistical activities (building maintenance, deliveries, etc.) • Forms of Payment: List forms of payment (cash, electronic, credit, etc.) accepted for purchase of products. Describe cash handling procedures. Provide approximate percentage of transactions that will be made using other forms of payment than cash
• Delivery: Delivery service procedures and vehicles used in deliveries; screening protocols for delivery drivers and risk management guidelines for delivery services; Loading and unloading of delivery trucks
• Separation of floor areas by type (i.e. customer screening area, sales area, storage room, office, grow room, etc.); Methods of separation; Regulations for the customer check-in area/lounge, sales area, storage areas, grow areas, parking lot area; ATM machine locations and regulations; • On-Site money security measures
• Emergency procedures
• Site Management; Site maintenance including parking lot, landscaping, lighting, fences/gates, trash collection and disposal, graffiti removal; Air quality and noise attenuation measures; Hazardous materials & spill events management; Storm water pollution controls. • Employee compensation/benefit costs, including labor agreements and contract employee costs.

Provide evidence of tentative agreement with labor groups, if applicable. Describe efforts to advertise jobs to Covina residents

4.2 Product Offering/Controls
• Inventory control and tracking system – including POS, procurement, track and trace software and integration of video surveillance systems in monitoring cannabis and non-cannabis products; Audits and/or best practices employed to effectively monitor inventories • Stock room operations; Outdoor storage; Forklift operations; • Method of record keeping and storage for cannabis and non-cannabis items • On-Site Security measures during business hours; After hours security measures; Security Patrol services; Video surveillance (internal & external); Outdoor displays; Signage;

4.3 Market Assessment
• Assessment of proposed business’ viability in the local and regional marketplace • Description of operating efficiencies and/or strategies that will help business succeed

4.4 Financial Plan/Funding
• This section will provide the City with the general details of the proposed business model including type of business, hours of operation, all the types of products that will be proposed for sale, if deliveries are to be a part of the business plan and if so, how; and all other general aspects of the business and its operational goals.
• Pro forma for five (5) years of operation, including realistic revenue projections (supported by market analysis); capital liabilities/repayment terms, operating costs, projected cash flows and NPV/IRR for planning horizon.
• Proof of secured capital (bank account(s), letters of credit or other liquid assets belonging to owners) that will be adequately finance property site control, tenant improvements, operational activities, licensing/permitting and entitlement.

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12 • Budgets for tenant improvements, capital equipment, labor, maintenance, utilities, insurance, financing costs, property costs and licenses/permits.
• Outline employee/benefit costs

4.5 Records Software
• Software systems that will be utilized to monitor inventories and types of products • Software system’s ability to manage financial data/statements and human resources functions • Process for preparing financial statements and auditing process to ensure compliance with accepted practices

4.6 Track/Trace
• Familiarity with State track/trace system and movement of products through supply chain • Production and distribution sources utilized in supply chain • Software systems that will be used to manage track/trace system

4.7 State Testing Regulations
• Processes used to comply with State product testing procedures • Packaging/labeling and quality control processes

4.8 Employee Training
• Training curriculum, frequencies and certifications that may be attained by employees

4.9 Customer Education
• Practices used to inform customer of product quality data and compliance with regulations • Public health outreach strategies to inform customers of health risks and health-related resources pertaining to product use

4.10 Implementation Timeline
• Discuss business’ ability to secure approvals from State/City, if awarded a local permit. • Provide timeline to complete following processes: design/site review, conditional use permit preapplication, conditional use permit, business licensing, construction and business opening (typical City review time of complete applications is thirty (30) days for design/site review, sixty (60) days for conditional use permit preapplication, ninety (90) days for conditional use permit, thirty (30) days for plan check and seven (7) days for business license. These time thresholds are estimates of the City staff review time and will be based on the completeness of application materials, plans, business description, security plan, etc. submitted by the applicant. These time estimates do not reflect the time for applicants to prepare, submit, and revise the application documents.

4.11 Additional O&M requirements for cannabis microbusiness operations - Manufacturing:

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13 Additional special handling permits required; Hazardous chemicals information; Safety information pertaining to storage, handling, spill and safety; All site safety, security & surveillance protocols (interior and exterior); Air quality and noise attenuation measures; Shipping and receiving information; Loading and unloading plan; all other pertinent information regarding the manufacturing proposed.

4.12 Additional O&M requirements for cannabis microbusiness operations - Cultivation:

All information required for a cannabis retail operation, if applicable; List of cultivation processes proposed; Breakdown of business square footage (i.e. office, storage, grow room/area, etc.); Method of record keeping and storage of all onsite business operations; List of materials required for grow process; Air quality and noise attenuation measures; Additional special handling permits required; Hazardous chemicals information; Safety information pertaining to storage, handling, spill and safety; All site safety, security & surveillance protocols (interior and exterior); Shipping and receiving information; Loading and unloading plan; all other pertinent information regarding the manufacturing proposed.

4.13 Additional O&M requirements for cannabis microbusiness operations - Distribution:

All information required for a cannabis retail operation, if applicable; List of distribution processes and methods proposed; Breakdown of business square footage (i.e. office, storage, loading dock, shipping, receiving, etc.); Method of record keeping and storage of all onsite business operations; List of products proposed for business; Special handling or shipping permits required; Air quality and noise attenuation measures; Additional special handling permits required; Hazardous chemicals information; Safety information pertaining to storage, handling, spill and safety; All site safety, security & surveillance protocols (interior and exterior); Shipping and receiving information; Loading and unloading plan; all other pertinent information regarding the distribution proposed.

Section 5. Community Benefit
This section requires that the applicant and its owner(s) describe existing and/or proposed involvement in the Covina community. Provide information related to:
• History of involvement and activities, prior to January 1, 2023, participating in local groups, nonprofit organizations or other efforts to improve the local economy or community well-being in Covina
• Describe proposed community involvement in local non-profit organizations, sponsored activities/events and/or other civic engagement that will be undertaken if awarded a local cannabis permit. Provide specific details of hours/activities to be completed by owners or employees
• Describe resources that may be distributed to local non-profit organizations and/or community programs
• Describe community and corporate citizenry programs that will provide value to the Covina community.

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14 • Exterior Design
o Provide conceptual designs, site plans, rendering or other proposed site amenities o Provide and describe sign package, branding other design elements for proposed business o Compliance with Covina Municipal Code 17.84.090 – signage standards. No depiction of cannabis or products or other advertising signage
o Briefly describe design approach used in conceptual planning • Design Neighborhood Fit
o Describe business’ ability to manage operations and mitigate impacts to neighboring businesses and or immediate neighbors
o Describe community relations approach and representatives that will interact with the neighborhood, including addressing complaints that may arise o Provide an assessment of parking and how adequate parking will be provided for customers and employees (Parking Study prepared by a registered traffic engineer may be required). o Include proactive measures that may be used to prevent parking overflow and/or parking in unauthorized locations.
o Describe how business will manage pedestrian traffic, including intake and operational practices to limit line queues and crowds.
• Integration of Security Measures in Design
o Describe security elements included in design that will enhance safety and security for the business and nearby neighborhood areas.
o Compliance with Covina Municipal Code 17.84.070 - Lighting/after-hours security, panic buttons, alarm
o Compliance with Covina Municipal Code 17.84.080 – no bars on window exteriors, required backup generator, exterior landscaping shall not allow for hiding in bushes and be wellmaintained; install mosquito noise devices to deter vandalism/loitering • Air Quality/Odor Control
o Identify potential sources of odor and describe odor control devices and/or operating techniques that will be used to limit odors of cannabis beyond the business space. o Describe waste management plan, including disposal locations and process used to dispose of expired/rejected/unused products.

Section 7. Security Plan (Mark as Confidential, will not be made public pursuant to Government Code 7293.600 et seq.

This section requires that applicant describe its safety and security approach at the proposed location.

Provide diagrams and/or specific details related to security measures and how they relate to the overall business operation.

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15 ▪ Fire Alarm and Monitoring
▪ Professional Security Service
• Facility Security
o Describe vetting/background process used to hire security staff o If using a private security company, provide proof of a Covina Private Patrol Operator Permit (PPO) – note that this is different from State PPO Permits. o Compliance with Covina Municipal Code 17.84.070 - Lighting panic buttons, alarm, locked restrooms, prohibit resale and drive-through sales

7.2 Safety Education
o Describe employee training programs and processes related to security. Include any curriculum and/or training frequencies

7.3 Theft Reduction Measures
o Describe loss prevention measures and other practices to deter theft

7.4 Cash Management Plan
o Describe cash handling procedures, strategies to limit cash on hand at business and detailed plans for the safe handling/transfer of cash
o Describe off-hours cash security plans or procedures

7.5 Product Access Control
o Describe method for securing product access to minimize theft and/or limit unauthorized access to products

7.6 Delivery Security Plan
o Describe procedures to ensure employee, product and general public security during transportation and delivery
o Describe any monitoring programs used for delivery vehicles o Describe vehicle safety practices and other monitoring tools to ensure proper licensing, registration and insurance of delivery vehicles.
o Provide any drug/alcohol screening tools used for delivery personnel

7.7 Security Guard Plan
o Describe security plan, including number of security personnel, shifts and related activities while on duty
o Describe training requirements and/or certifications required for security personnel

7.8 Video Surveillance Plan
o Describe compliance with Covina Municipal Code Section 17.84.080 requirements including having video surveillance 24 hours/day, HD quality, cover all interior spaces, maintain videos for 90 days, battery backup, dedicated security liaison

7.9 Armored Vehicle Use
o Describe use of armored transit for transporting products and/or money, if any

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16 o Describe operating plans for the safe transfer of products/money between business and transport vehicles
o Describe training requirements and/or certifications required for transit personnel

7.10 Youth Consumption Plan
o Describe practices that will ensure the prohibition of youths at the business or will limit to product access to youths
o Describe health promotion efforts to educate the public of youth consumption prohibitions Section 8. State License or Copy of Pending Application This section requires a copy of the applicants State of California Cannabis License, or proof that the applicant is actively in the process of obtaining a State License.

PROPOSER INTERESTED IN MORE THAN ONE BUSINESS OPERATION No individual or corporation will be allowed to make or file, or have a vested interest in more than one cannabis business license within the City.

ACCEPTANCE OR REJECTION OF PROPOSAL
The City reserves the right to accept, reject, or accept a portion of any and all proposals. The City also reserves the right to waive any informality or irregularity in any proposal or in the RFP as deemed to be in its best interest. Additionally, the City may, for any reason, decide not to award a Cannabis Business Permit or a CUP as a result of this RFP, or may cancel the RFP process at any time, without cause or notice. The City shall not be obligated to respond to any proposal submitted, nor be legally bound in any manner by the submission of a proposal.

LEGAL RESPONSIBILITIES
All proposals must be submitted, filed, made, and executed in accordance with this RFP. Any individual or company submitting a proposal will by such action thereby agree to each and all of the terms, conditions, provisions, and requirements set forth, contemplated, and referred to in the RFP, and to full compliance therewith.

DISCREPANCIES and MISUNDERSTANDINGS
Respondents to this RFP must satisfy themselves by personal examination of any and all applicable City Ordinances, Codes and Regulations, and any applicable State or Federal laws, Codes, and Regulations as they may believe necessary and applicable to the operation of a cannabis retail business or cannabis microbusiness. No Respondent will at any time after submission of a proposal make any claim or assertion that there was any misunderstanding or lack of information regarding the nature of the RFP process or the cannabis business regulations with the City of Covina. Any errors, omissions, or discrepancies called to the attention of the City will be clarified by the City in writing to all proposers prior to the submission of the proposals.

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17 ATTACHMENTS:

Attachment 1 – Draft Development Agreement
Attachment 2 – Zoning Verification
Attachment 3 – Letter of Intent & Acknowledgements

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Cannabis RFP Questions/Responses
10/24/23
Question: Are questions due by October 23 or November 6, 2023? RESPONSE: Questions related to the Request for Proposals for Cannabis Retail Business or Microbusiness must be submitted by November 6, 2023.

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Cannabis RFP Questions/Responses
10/31/23
Question: RFP states all business owners must complete a Live Scan background check at an approved City facility. Where can a list of City approved facilities be found? RESPONSE: Any authorized Live Scan service provider is acceptable. You MUST use the “Request for Live Scan Service” form on the Cannabis Program web page (https://covinaca.gov/cannabisprogram) as it is preloaded with data to insure the results are transmitted directly to the Covina Police Department.

Question: Will property control documents such as leases count towards the 150-page limit? RESPONSE: No, leases and other property control documents like deeds do not count towards the 150 page limit.

Question: Will Letter of Intent and Acknowledgement, ZVL letter etc. count towards the 150-page limit? RESPONSE: Yes.

Question: What is the submission process procedure? Is an appointment needed? Do Owners need to be present or can it be done by a consultant/representative? RESPONSE: Proposals must be submitted in person at the City Clerk’s office no later than December 20, 2023 by 2:00 p.m. No appointment is required, but it is encouraged. Fee payment must be made at time of submittal or the proposal will not be accepted. Owners do not need to be present. The proposal may be submitted by a business representative.

Question: What fees exactly need to be paid at the time of the submission? Is it only payment for Phase I and II? What is a background check fee per owner?
RESPONSE: At the time of Proposal submission, fees for Phase I/II are required - $7,518.75. Staff time for Live Scan review of results is covered in this fee. The fee to have the Live Scan performed is charged by the entity doing the Live Scan service and is an outside fee.

Question: RFP states that during Phase III/IV applicants’ responsiveness will be evaluated, which is a subject of 50 points. Please define the term responsiveness in the context of the process and how it will be measured and scored.

RESPONSE: The scoring will account for the thoroughness of the responses and whether the actual question being asked was answered.

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Question: Who is allowed to be present during the Interview and presentation? Is it only people specified as Owners on the application? Can leadership/management team be present if they are not owners? Will consultants be allowed?
RESPONSE: Applicants may determine their representation at the interview/presentation. At least one of the representatives must be an owner, as defined in Covina Municipal Code Section 5.80.050.

Each applicant is limited to a maximum of 5 representatives at the interview.

Question: Does the City accept electronic signatures on application forms, such as Letter of Intent? RESPONSE: Electronic signatures are acceptable.

Question: RFP requires three (3) public agency references where existing businesses currently operate.

Please clarify what agency does the City exactly see as a Public Agency.

RESPONSE: An incorporated City or County jurisdiction. If the business does not have any other currently operating cannabis businesses, “N/A” is an acceptable response to this section.

Question: RFP requires owner's resumes and a minimum of 2 professional references per owner. Do resumes and professional references count towards the 150 pages limit? RESPONSE: Yes, the owner’s resumes and professional references do count towards the 150 page limit.

Question: RFP awards 25 points for "verification of information listed in resumes", under the Ownership team section. Could you please clarify what does the City mean by that verification? Is the applicant responsible for verifying that information? If yes, how are they expected to provide verification? Or will the City be verifying that information itself? Please clarify as it's very confusing.

RESPONSE: The applicant is responsible for submitting accurate information that the City will verify.

Question: Security Plan requires name(s) of professional fire prevention/suppression consultants. Is the Safety Fire Plan required to submit with an application in addition to the Security Plan?” RESPONSE: Please see Section 7 (Security Plan) of the RFP that contains the information that should be included in the Security Plan, including fire prevention/suppression contractors. A Fire Safety Plan does not need to be included with the application, but fire prevention/suppression should be described in the Security Plan.

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Question: “I am interested in knowing the current rates and charges for Cannabis in the city. Can you please provide me with information regarding the taxes and fees associated with it? RESPONSE: All fees associated with applying for and obtaining a cannabis business license, land use permits (CUP), and building permits from Covina can be found in the Fee Resolution available on the Cannabis Program web-page. Fee’s from outside agencies are not included in the Fee Resolution.

Additionally, the Development Agreement will require a Community Benefit Fee of 5% of gross business receipts for products sold at the business.

Question: Should the OCA Number (Agency Identifying Number) be left blank on the Live Scan forms? RESPONSE: The OCA number should be left blank. The Request for Live Scan Service form found on the Cannabis Program website should not be altered, EXCEPT to include the “Applicant Information”.

Question: Is Attachment 3, titled 'Letter of Intent,' included in the 150-page limit? If a business has multiple owners and each needs to sign this form, can we substitute the repetition of pages 1 and 2 with only an additional signature page (Page 3) for each owner? For instance, if there are three owners, can we submit the sequence as Page 1, Page 2, Page 3 (signature of owner 1), Page 3 (signature of owner 2), and so on? This approach would help us utilize more of the allotted 150 pages for addressing the evaluation criteria.

RESPONSE: Yes, the Letter of Intent & Acknowledgement is included in the 150-page limit. The only documents not included in the 150-page limit are the live scan/background information, labor peace agreement, leases and other property control documents. Yes, the signature pages can be submitted on one page. A letter of intent form must be filled out for each owner, and page 1 of the form requires information specific to each owner.

Question: The city has received multiple questions regarding fee payment and acceptable methods of payment. What forms of payment are accepted for the Phase I/II fee of $7,518.75? RESPONSE: The City accepts cash, credit card, or checks. The City’s Finance Customer Service Division is open Monday – Thursday, 7 a.m. to 6 p.m. or may be reached at (626) 384-5510.

Question: Are questions due by October 23 or November 6? Both of these dates are stated in the RFP RESPONSE: Questions on the RFP are due by November 6, 2023.

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Question: Does the Business License Zoning Clearance Form need to be submitted by November 30 along with Attachment 1: Commercial Cannabis Permit Program Zoning Verification? If so, can you please clarify when and how to submit the $105 payment?
RESPONSE: The Zoning Verification Form (Attachment 2 to the RFP and found of the Cannabis Program webpage - https://covinaca.gov/cannabisprogram) needs to be submitted to the Planning Department by November 30, 2023 at 2 p.m. Applicants must complete the form and provide proof of property site control (signed and notarized purchase agreement, lease agreement, letter of intent to lease or proof of ownership).

As noted in Resolution CC 2023-79 “Fee Schedule and Establishing User Fees Pertaining to the Commercial Cannabis Permit Program”, costs related to the review of the “Cannabis Zoning Verification” form and supporting documents are included the Phase I/II Application Fee of $7,518.75.

Please note that per the RFP, Page. 6 “Proposal Submittal and Review”, the Phase I/II Application Fee must be paid in full by the proposal submittal deadline in order to be considered responsive to the RFP requirements.

Question: Section 8 of the application mandates a copy of the State of California Cannabis License or evidence that the applicant is pursuing one. However, the State only accepts applications and issues licenses after a local license has been awarded. How can applicants fulfill this requirement? Or are you seeking copies of state licenses from other cannabis businesses that share ownership or affiliation with the applicant entity?”
RESPONSE: The City acknowledges this issue and has added the “State of California Cannabis Business License Acknowledgement Form” to the Cannabis Program web-page. Each proposal is required to include the completed and signed form, signed by each owner listed in the proposal (see Covina Municipal Code Section 5.80.050 for the definition of “owner”). This signed form will not count towards the 150 page limit for the proposal.

Question: Is there a way to sign up with our email addresses to get notifications from the City of Covina? RESPONSE: No. All communications related to the Cannabis Program RFP will be posted on https://covinaca.gov/cannabisprogram. Please check the webpage frequently for updates.

Question: If I could not attend the mandatory Pre-Proposal meeting, do I need to be added to a list that indicates my intent to submit an RFP?
RESPONSE: No. Attendance at the mandatory pre-proposal meeting is a pre-requisite to submitting a proposal. There is no list for those that did not attend the mandatory meeting.

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Question: Is having only one representative from the company present at the meeting sufficient in order for the applicant to apply?
RESPONSE: Yes.

Question: Does there need to have been a specific percentage of the overall ownership of the license that is being applied for that needed to be at the meeting?
RESPONSE: No, a specific percentage of the ownership team was not required to attend the mandatory meeting. The City will be cross-referencing the list of those persons that attended the mandatory meeting and persons listed in any RFP that is submitted for consideration. The name of a representative or owner identified in the RFP must match the name of a person who attended the mandatory meeting.

Question: Are applicants locked into applying with the company name they signed in with on the sign-up sheet during the mandatory meeting?
RESPONSE: No, applicants are not locked into applying with the company name they listed on the sign in sheet. Applicants may submit a proposal under a different name than what was listed on the sign-in sheet during the mandatory meeting. The proposal for the RFP must include the name of the representative or owner that attended the mandatory meeting. A representative or owner that attended the mandatory meeting cannot submit on behalf of multiple businesses. For example, if Paula Jones attended the meeting as a representative of Cannabis Business A, Paula Jones may be listed as the owner or representative for a proposal that is submitted on behalf of Cannabis Business B. But, Paula Jones may not be listed as an owner or representative for proposals for both Cannabis Business A and Cannabis Business B. Paula Jones will need to select which business she is submitting the proposal for as she cannot submit proposals on behalf of more than one business.

Question: I missed out on the mandatory meeting. Will there be another meeting? RESPONSE: No, not for this procurement.

Question: Can I still apply if I did not sign in?
RESPONSE: No, not for this procurement.

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Question: I had an associate attend the meeting under a different business name. Can I still apply using a new company name?
RESPONSE: Yes, you can apply using a different company name that was listed on the sign in sheet at the mandatory meeting. But a person who signed in at the mandatory meeting must be listed as an owner or representative of a business that submits an RFP.

Question: How will the city score a free-standing building compared to a multi-tenant building assuming all other factors are equal?
RESPONSE: There will be no advantage given to a stand-alone versus a multi-tenant location.

Question: The City received several questions requesting verification that a specific address location or a specific zone type was allowed for a cannabis retail or micro-business site.

RESPONSE: It is the applicant’s responsibility to self-certify their location is in an approved location (see Covina Municipal Code Section 17.84.070). The City will only comment on locations via the Zoning Verification Form process per the RFP. The deadline to submit the Zoning Verification Form request is November 30, 2023 per the RFP.

Question: Please advise if there is a live stream or there will be a recording provided afterwards for those who cannot make it in person if attendance to this pre-proposal meeting is mandatory.” RESPONSE: No live stream or recording will be provided. Per the RFP, attendance in person at City Hall is required.

Question: The City received several questions regarding the mandatory nature of the pre-proposal meeting, and if an interested applicant did not attend the meeting, can they submit a proposal? RESPONSE: No, not for this procurement.

Question: Do applicants/applicants representatives interested in applying for a cannabis license need to register to attend a mandatory October 5th meeting?
RESPONSE: No registration is required to attend the mandatory pre-proposal meeting, but attendance at the pre-proposal meeting is mandatory to submit a Proposal.

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Cannabis RFP Questions/Responses
11/22/23
Question: For the license for Cannabis retail business and Microbusiness in Covina, is it both for adult use or only medical?
RESPONSE: The cannabis business permit can be for both adult use and/or medicinal cannabis.

Question: “Cash Handling Procedures” are asked for in both the 4.1 Operations Protocols and in 7.4 Cash Management Plan. May we say “Defer to Section 7.4 Cash Management Plan within 4.1 Operations Protocols in order to minimize duplicative information? RESPONSE: These sections discuss similar topics but ask for different information. We acknowledge there may be some overlap between the two sections, but the Scoring Criteria requires a response to each section. Provide the information in each section that you feel best responds to what the RFP is asking for.

Question: “Section 8. State License or Copy of Pending Application” requires a copy of the Applicant’s State of California Cannabis License, but the applicant won’t have one until after it is selected and goes through the permitting process. Should we still include this section within our proposal and state something along the lines of, “If selected by the City of Covina, the applicant will obtain a State of California Cannabis License prior to operations.”?
RESPONSE: A “State of California Cannabis Business License Acknowledgement Form” will be added to the cannabis website (https://covinaca.gov/cannabisprogram) and must be filled out for each owner of the cannabis business. In Section 8, include a statement that the State of California Business License Acknowledgment Form has been included for each owner and submit the forms at the end of Section

8. Question: “Air quality and noise attenuation measures” was asked for in “4.1 Operations Protocols”, other than the mention of noise, what different information does the city want than what is asked for in Section

6. Facility and Neighborhood Compatibility’s last bullet “Air Quality/Odor Control”? RESPONSE: In Section 4.1, we are looking for a detailed description of the features to be utilized on-site and the day to day operational procedures that will result in the least impactful air quality/noise issues (i.e. dual paned windows, special filters, daily cleaning, etc.). In Section 6, we are looking for a description of anticipated odors and devices to mitigate those odors and how such mitigation devices will make the business integrate into the community and minimize odors of cannabis on the business’s neighbors. We understand that there may be some overlap in these responses.

Question: The first bullet under “4.4 Financial Plan / Funding” seems like it would be more appropriately placed under “Section 4 Business Plan” as otherwise it seems like it is asking for repeated information that is already provided previously. With the limited page count are we to provide a summary of the previously provided information, or should the first bullet be ignored for this “4.4 Financial Plan / Funding” section?

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RESPONSE: Section 4 “Business Plan” requires the preparation of an Operations and Management Plan (O&M). Each subsection identified in Section 4, including Subsection 4.4 details what should be included within the O&M.

Question: If we are not applying as a microbusiness, we do not need to provide information for those functions, correct?
RESPONSE: Correct, only provide information that pertains to your proposed business.

Question: May headers within the proposal be larger than 12 pt font? RESPONSE: Yes, headers may be no larger than 16 point font.

Question: May the payment of the fees be by normal check or should it be a cashier’s check? Should it be made out to “City of Covina”?
RESPONSE: A cashier’s check is not required. Normal checks are acceptable. The City accepts cash, credit cards, or checks. Checks are to be made out to “City of Covina”.

Question: Do signatures/notaries need to be wet-signed or will e-signatures suffice? RESPONSE: Electronic signatures are acceptable.

Question: Are the Phase Application fees to be paid all at once, or upon proceeding to each phase? For instance, do we issue a check for only $7,518.75 (Phase I/II Application Fee) or for each of the subsequent Phase fees as well?
RESPONSE: Only Phase I/II fees are due at the time of proposal submittal.

Question: See page 8, “Applicants that score 80% (1,600 points) or greater in Phase III/IV must pay fees listed in the City fee schedule for Phases III/IV of the Local Commercial Cannabis Permit RFP Program, should they wish to continue in the process.” When are they due? RESPONSE: Phase III/IV fees are only applicable if an applicant is moved onto Phase III/IV, and they choose to move forward. The city notification letter informing the applicant they have secured a spot in Phase III/IV will include a “must pay fee by DATE”. The fee is paid to the City and an interview date and time will be assigned after proof of payment.

Question: Page 15 of the Cannabis RFP indicates that an applicant, “If using a private security company, provide proof of a Covina Private Patrol Operator Permit (PPO)”. The implication of this requirement is that an applicant may only propose to use a private security company already registered in the City of Covina, rather than propose to use a security company with experience in the cannabis industry not yet registered in the City of Covina that will register with the City before the applicant actually commences operations. Doesn’t this requirement unfairly disadvantage private security company that are not already registered in Covina, that would be otherwise qualified for registration?

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RESPONSE: For “Section 7.1 Experience, Facility Security”, you must either provide proof of the Covina Private Patrol Operator Permit (PPO) or include a statement that acknowledges that the private security company you will hire will have the requisite PPO prior to your eligibility to proceed into Phase IV of the process.

Question: Regarding the Proposal Format starting on Page 9 of the Cannabis RFP, the following application criteria from Section 4.1, “Describe cash handling procedures” is redundant with the application criteria from Section 7.4, “Cash Management Plan”. Should an applicant provide duplicative responses for both criteria?
RESPONSE: Section 4.1, bullet number 5 of the RFP, will be amended to remove the sentence “Describe Cash Handling procedures.” The new Section 4.1, bullet point 5 will read: “Forms of Payment:

List forms of payment (cash, electronic, credit, etc.) accepted for purchase of products. Provide approximate percentage of transactions that will be made using other forms of payment than cash.” In addition to this response, this change announcement will be contained in Addendum

1. Question: Regarding the Proposal Format starting on Page 9 of the Cannabis RFP, the application criteria from Section 4.2, “On-Site Security measures during business hours” is redundant with the multiple application criteria from Section 7. Should an applicant provide duplicative responses for all of the overlapping criteria?
RESPONSE: These sections discuss similar topics but ask for different information. We acknowledge there may be some overlap between the two sections. Put the information in each section that you feel best responds to what the RFP is asking for. The Scoring Criteria requires a response to each section.

Question Regarding the Proposal Format starting on Page 9 of the Cannabis RFP, the application criteria from Section 4.1, “Employee compensation/benefit costs” is redundant with the application criteria from Section 4.4, “Outline employee/benefit costs”. Should an applicant provide duplicative responses for both criteria?
• RESPONSE: The RFP, Section 4.1, final bullet (number 11), will be amended to remove the first sentence: “Employee compensation/benefit costs, including labor agreements and contract employee costs.” The final new version of Section 4.1 will read: “Provide evidence of tentative agreement with labor groups, if applicable. Describe efforts to hire Covina residents”.

In addition, the RFP, Section 4.4, final bullet (number 5), will be amended to read: “Describe employee compensation/benefit costs, and contract employee costs” In addition to this response, both of these changes will be contained in Addendum 1.

Question: Page 9 of the Cannabis RFP indicates that, “The 150-page limit does not include live scan/background checks, labor peace agreement and leases”; however, “labor peace agreement” is not mentioned anywhere else in the Cannabis RFP . . . that being the case, what Section of the proposal does an applicant submit a labor peace agreement?

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RESPONSE: Covina Municipal Code section 5.80.100(G) states that “For applicants with 10 or more employees, the applicant shall attest that the applicant will enter into a labor peace agreement, as defined in Business and Professions Code Section 26001(aa), and will abide by the terms of the agreement, and the applicant shall provide a copy thereof to the city. For applicants that have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that within 30 days of issuance of a cannabis permit from the city, the applicant will enter into and abide by the labor peace agreement.” The notarized statement and/or labor peace agreement should be added to the end of the application and will not count towards the 150-page limit.

Question: The City received a question regarding why potentially lengthy documents such as financial documents, bank statements and other legal documents are not excluded from the 150-page limit for proposal narratives when that might unfairly benefit certain applicants over others.

RESPONSE: The RFP will be amended to provide that financial documents are not included in the 150 page limit. Specifically, the last two sentences of the first paragraph under the “Proposal Format” section on page 9 of the RFP, will be amended to read as follows: “Proposal narratives shall be written in 12-point font and shall not exceed 150 pages. The 150-page limit does not include live scan/background checks, labor peace agreement, leases and financial documents).

Also on page 7 of the RFP, under the “Proposal Submittal and Review” section, bullet point 5, will be amended to read as follows: “Proposal does not exceed 150 pages (not including live scan/background check information, labor peace agreement, leases and financial documents).

In addition to this response, these two change announcements will be contained in Addendum

1. Question: Section 8 of the Proposal Format on Page 16 of the Cannabis RFP “requires a copy of the applicants State of California Cannabis License, or proof that the applicant is actively in the process of obtaining a State License”; however, is California, which is a local control State for cannabis regulation, where applicants are required to provide their local approval / license before receiving a State license. How / why is an applicant required to provide their State of California Cannabis License or proof of application before the applicant has any form of local approval? RESPONSE: The City acknowledges this issue and will add the “State of California Cannabis Business License Acknowledgement Form” to the Cannabis Program Web-page. Each proposal is required to include the completed and signed form, signed by each owner listed in the proposal (see Municipal Code Section 5.80.050 for the definition of “owner”). This signed form will not count towards the 150-page limit for the proposal.

Question: In the “Armored Vehicle Use” portion of the attached Scoring Methodology, applicants are asked to “describe[] use of armored vehicle for transporting of products and/or money”; however, cannabis retailers typically just arrange transportation of cannabis products from distributors, with the distributors controlling the actual vehicles, and because State cannabis regulations do not require distributors to use actual armored vehicles, but rather just vehicles with other security enhancements (cages, alarms, lo jack, etc.), the use of armored vehicles for transportation of cannabis product is basically non-existent in the California cannabis industry. Therefore, should this scoring criteria be more properly articulated as, “describe the security features of vehicles used for transporting of products and/or money”?

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RESPONSE: The RFP and Scoring Methodology will be revised to change the reference from “armored vehicle use” to “vehicle transportation”. The purpose of this category is to describe the types of vehicles used in the transportation of goods and cash associated with the business and how safe are they.

Question: In the attached Scoring Methodology there are multiple scoring criteria associated with operating a delivery service . . . how are those criteria scored if an applicant does not propose to operate a delivery service?
RESPONSE: If no delivery service is proposed, no points will be awarded. The maximum points available related to delivery is 60 points, which is less than 5% of the required 1,600 points (80% of total available) applicants need to move on to Phase III/IV. Delivery is viewed as a service that provides an additional benefit to the community.

Question: When there is a conflict between the attached Scoring Methodology and the Cannabis RFP, which document should legally control?
RESPONSE: If a conflict pertaining to scoring arises, the Scoring Methodology shall control. A copy of the Scoring Methodology will be added to the Cannabis Program web-page in advance of the application deadline.

Question: In the “Claims/Litigation History” portion of the attached Scoring Methodology, there is a separate scoring section for just plain “judgments”; however, Page 10 of the Cannabis RFP refers only to “bankruptcies judgments”.

RESPONSE: In the RFP, the first sentence in Section 3.4, Claims/Litigation History, will be amended to add the punctuation mark “,” between the words “bankruptcies” and “judgements”. The amended text will read: “Provide a listing of all open/closed filings, claims, bankruptcies, judgments, and liens associated with the business entity, its parent companies and/or affiliates since 2015.”
In addition to this response, this change announcement will be contained in Addendum 1.

Question: In the “Ownership Team” portion of the attached Scoring Methodology, what is meant by “Verification of information listed in resumes”? Does it mean that the City will seek to verify information listed in resumes or that the applicant should provide verification of information listed in resumes?
RESPONSE: Also answered previously; Applicants should provide correct information and the City will verify.

Question: The Scoring Methodology attached to this email was attached to the Staff Report as Attachment D when the Covina City Council approved the Cannabis RFP; however, the Scoring Methodology is not on the City’s Cannabis Program webpage (https://covinaca.gov/cannabisprogram) nor the City’s Cannabis RFP webpage (https://covinaca.gov/cannabisprogram/page/rfp-requestproposal-establishment-cannabis-retail-business). That being the case, is the attached Scoring

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Methodology actually legally incorporated into the Cannabis RFP? . . . per Section 17.84.100.B of the Covina Municipal Code, “Regulations shall be published on the City’s website.” RESPONSE: The Scoring Methodology will be added to the Cannabis Program web-page (https://covinaca.gov/cannabisprogram) and will be attached to the RFP.

Question: Does the detailed point breakdown on Page 7 of the Cannabis RFP and attached detailed Scoring Methodology apply to Phase III?
RESPONSE: The Scoring Methodology applies to Phase II. The scoring breakdown for Phase III is included on page 8 of the RFP.

Question: Are an applicant’s Phase II applications scores in presented for City Council consideration in Phase IV? . . . or just an applicant’s Phase III scores? RESPONSE: All applicants that score 90% or more in Phase III will be advanced to the City Council for consideration (if no proposal scores ninety percent (90%), then the top three scores will advance to Phase IV for Council consideration). At that time, the Council will receive the scores from Phase III. The scores from Phase II for each applicant that advanced to Phase IV will also be provided to the Council for informational purposes.

Question: What size sheets of paper is the applicant required to submit its Cannabis RFP proposal on? . . . may an applicant provide its conceptual designs, site plans, renderings, or other proposed site amenities on larger sheets of paper such as 24” x 36”.

RESPONSE: For the Proposal phase of the process, paper size is limited to 11” x 17”, and those sheets must be “book folded”. The larger prints referenced (24x36) are more appropriate for the CUP and Building Permit steps in the process (after an applicant receives a “Notice to Proceed” from the City Council). Full size renderings can be utilized in the Phase III Interview and Phase IV Council presentation portion of the process, if an applicant chooses to do so.

Question: What are the Cannabis RFP’s rules on the use of images and graphs in an applicant’s written proposal to the Cannabis RFP? . . . “spreadsheets” are specifically mentioned on Page 7 of the Cannabis RFP, so the use of graphs is clearly permitted . . . that being the case, many graphs use less that size 12 font . . . certain spreadsheets common in cannabis application responses, do not fit on an 8.5” x 11” sheet of paper in size 12 font . . . the same applies to conceptual designs, site plans, renderings, or other proposed site amenities, which inevitably have notes and notations smaller than size 12 font.

RESPONSE: Images and graphs are acceptable. The main text of the proposal write-up shall be in size 12-point font and the text included in graphs/images can be smaller due to reduction issues.

Question: Font size varies from font type to font type . . . is Calibri in size 12 a permissible font type and size for an applicant’s written proposal to the Cannabis RFP? RESPONSE: Yes, Calibri 12 is acceptable.

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Questions: Are electronic signatures / DocuSign permissible for executing all non-notarized application forms (per the Cannabis RFP, only the proof of property site control is required to be notarized), in particular an applicant’s signed Letter of Intent and Acknowledgements? RESPONSE: Electronic signatures are acceptable on the Letter of Intent and Acknowledgements and on the “State of California Cannabis Business License Acknowledgement Form”.

Question: Can you please confirm that an applicant’s signed Letter of Intent and Acknowledgements do not count towards the 150-page limit for proposal narratives? . . . per Page 7 of the Cannabis RFP, live scan/background checks do not count towards the 150-page limit for proposal narratives so it doesn’t make sense for the Letter of Intent and Acknowledgements to count.

RESPONSE: The Letter of Intent and Acknowledgments do count towards the 150-page limit Question: Page 6 of the Cannabis RFP indicates that applicants submit a “Completion of Zoning Verification and Evidence of Property Site Control”; however, “Completion of Zoning Verification and Evidence of Property Site Control” is not listed in the “PROPOSAL FORMAT” starting on Page 9. What Section of the proposal, does an applicant submit its “Completion of Zoning Verification and Evidence of Property Site Control”?
RESPONSE: The completed Zoning Verification Form and evidence of site control should be included at the end of Section 6, Facility and Neighborhood Compatibility, in the proposal package. The RFP, Section 6, Facility and Neighborhood Compatibility, will be amended to include line items for Zoning Verification Form and Evidence of Site Control. This change announcement will be contained in Addendum 1.

Question: Is there any fee associated with submitting a Cannabis Zoning Verification Form? . . . must a Cannabis Zoning Verification Form submitted hard copy to the City Clerk’s Office, or may it be transmitted electronically over email?
RESPONSE: The Zoning Verification Form must be submitted to the City Clerk’s office in person, no later than November 30, 2023 at 2:00 p.m. The fee for reviewing the Zoning Verification Form is included in the Phase I/II Fee that must be received before the proposal submittal deadline of December 20, 2023 at 2 p.m. The City accepts cash, credit card, or checks. The City’s Finance Customer Service Division is open Monday – Thursday, 7 a.m. to 6 p.m. or may be reached at (626) 384-5510.

Question: The Cannabis RFP indicates that there’s an “Attachment 1 – Draft Development Agreement”. However, there is no Draft Development Agreement attached to the Cannabis RFP nor is there a Draft Development Agreement posted on the City’s Cannabis Program or RFP

REQUEST FOR PROPOSAL FOR THE ESTABLISHMENT OF A CANNABIS RETAIL BUSINESS webpages. Can you please provide a copy of “Attachment 1 – Draft Development Agreement”? RESPONSE: A draft Development Agreement is in the process of being completed and will be posted to the Cannabis Program web page as soon as is practical.

Question: Page 4 of the Cannabis RFP indicates that, “Proposers must e-mail inquiries no later than 2:00 p.m. on Monday, October 23, 2023.” However, later in the Page, the Cannabis RFP indicates that,

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the deadline for questions is Monday, November 6, 2023 by 2:00 p.m. See also the “Covina Local Cannabis Program Request for Proposals Process” Presentation . . . https://covinaca.gov/sites/default/files/fileattachments/cannabis_program/page/10996/cann abis_pre-proposal_mtg_10-5-23.pdf. Can you please confirm that the deadline for Cannabis RFP questions is Monday, November 6, 2023 by 2:00 p.m.?
RESPONSE: Posted and confirmed previously. The deadline to ask questions was November 6, 2023 at 2:00 p.m.

Question: May you please clarify if the check in process required to be an enclosed room or if it can be designed to have the reception desk at the entrance and retail be open to access without the public having to be let in through a second entrance door?
RESPONSE: The City does not have a specific design standard for this condition.

Question: I would like to inquire about opening a cannabis business and see this is the official email noted in the City Council agenda.

RESPONSE: If you did not attend the mandatory Pre-Proposal meeting, and are not affiliated with an attendee, you are not eligible to proceed in this recruitment period.

Question: In reference to the Section 5 prompt 'Describe resources that may be distributed to local nonprofit organizations and/or community programs,' is it the city's expectation that the applicant create and implement a distribution process for these resources, or would the city prefer to take on the role of administering the disbursement of these resources?
RESPONSE: This request for information is related to the proposed business and any programs the business will implement in an effort to positively impact the community, if any. The City will not be involved in the distribution of these resources.

Question: How can an applicant achieve full points in Section 3.4, titled 'Claims/Litigation History'? Are points deducted based on the number of lawsuits or claims filed by the applicant? Alternatively, are full points given simply for providing a complete list of all lawsuits or claims? RESPONSE: The City will be posting the “Scoring Methodology” on the Cannabis Program webpage.

Please see the “Scoring Methodology” document for how points are allocated in this category.

Question: The website currently has the Letter of Intent and Acknowledgment that says “confidential draft” on it. When will a version that should be used for an application be released? RESPONSE: An updated version of the Letter of Intent and Acknowledgement will be posted to the Cannabis Program Web-page as soon as practical. Please check the Cannabis Program web-page frequently.

Question: In what format do professional references and Public Agency references need to be submitted? Is it just contact information and the name of a person or in the format of a reference letter?

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RESPONSE: References can be provided in either format. The Scoring Methodology, Qualifications, Experience Section, allocates up to 50 points for references.

Question: Application states that owners resumes not to exceed 2 pages. Do we have to include professional references on these 2 pages or can professional references be submitted separately? RESPONSE: References can be submitted separately, but the additional sheets will count towards the 150-page limit.

Question: If an individual owns less than 20% of the applying entity, are they required to submit a background check?
RESPONSE: For purposes of submitting an application for Phase I/II all owners as defined in Chapter

5.80.070 of the Municipal Code and managers of the business must obtain a criminal background check.

Please see Covina Municipal Code (“CMC”) sections 5.80.060, 5.80.070, and 5.80.110 for the City’s background check requirements. Please also see CMC section 5.80.050 (Definitions) for definitions of terms used in section 5.80.060, 5.80.070 and 5.80.110 to help determine who must submit to a criminal background check.

Question: Can certain information, in addition to a security plan, be marked as confidential and will not be made public, such as financial plans and records and other information an applicant might deem necessary not available to the public?
RESPONSE: The City has an obligation to produce any non-exempt records pursuant to the Public Records Act. At this time, the City has determined that security plans and financial records are exempt from disclosure under the Public Records Act. These two categories of records should be marked confidential. An applicant may mark additional pages in the application as confidential, however, the City may be required to disclose those pages if an exemption under the Public Records Act does not exist.

Question: The FAQ posted on October 31, 2023 stated that “State of California Cannabis Business License Acknowledgement Form” has been added to the Cannabis Program web-page. Is it currently not on https://covinaca.gov/cannabisprogram web-page. Could you please let us know when this form will become available?
RESPONSE: The “State of California Cannabis Business License Acknowledgement Form” will be added to the Cannabis Program Web-page as soon as practical. Please check the Cannabis Program web-page frequently.

Question: Are any business formation documents, such as articles of organization, statement of information, operating agreement etc are required to be provided? RESPONSE: Applicants should submit all relevant business formation documents that verify and show that the applicant complies with the “ownership” requirements of the RFP.

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Question: In the RFP released by the city, the city gives an estimated a review timeline for the review of a CUP pre-application at 60 days and a timeline of 90 days for a CUP application. My question is do these processes run concurrently, or must an applicant wait until their CUP pre-application is approved before they can submit their CUP application?
RESPONSE: They are not concurrent processes. The CUP pre-application process must be complete before the formal CUP application can be submitted. The reason is that applicants will get a detailed list of issues/items that they need to work on, further elaborate on, or complete as part of their formal CUP application. They also need the CUP pre-application letter from the City that explains to them what they need to include in their application submittal. The pre-application process also includes input from all relevant City departments and divisions, as well as Los Angeles County Fire.

Question: In what format do professional references and local references need to be submitted? Is it just contact information and the name of a person or in a format of a reference letter? RESPONSE: References can be provided in either format. The Scoring Methodology, Qualifications, Experience Section, allocates up to 50 points for references.

Question: Within Section 6, it calls for “Compliance with Covina Municipal Code 17.84.090 – signage standards. No depiction of cannabis or products or other advertising signage.) CMC §17.84.090 has 3 provisions re signage, rest is other operational restrictions. Should the response only address the signspecific provisions of CMC §17.84.090? RESPONSE: The response to Section 6 should address compliance with the signage provisions set forth in Subsection G of Section 17.84.090. Please note that Section 6 of the RFP asks for more information than just signage. The response should include all the information requested in Section 6, which includes information on the businesses proposed signage. In addition to this response, this change announcement will be contained in Addendum 1.

Question: Within 4.1, the criteria calls for an applicant to “Provide approximate percentage of transactions that will be made using other forms of payment than cash.” By "transactions," is the City asking for the approximate percentage of both customer sales and vendor payments that will be made in a form other than cash?
RESPONSE: The intent of this estimate is to determine point of sale transactions for purchase of products.

Question: Within Section 4.4, the criteria calls for "This section will provide the City with the general details of the proposed business model including type of business, hours of operation, all the types of products that will be proposed for sale, if deliveries are to be a part of the business plan and if so, how; and all other general aspects of the business and its operational goals." Can you clarify what information the City is seeking by "all other general aspects of the business and its operational goals?" RESPONSE: All other information not specifically identified in the RFP that the applicant feels is essential/unique for the successful operation of their business.

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Question: Page 10 of the Cannabis RFP requires an applicant to, “Provide a listing of all open/closed filings, claims, bankruptcies judgements and liens associated with the business entity, its parent companies and/or affiliates since 2015.” Can you please confirm that any applicant is to provide all liens filed on it, its parent companies, and/or its affiliates since 2015 regardless of the status of the lien at the time of the applicant’s submitting its proposal to the Cannabis RFP? RESPONSE: Yes, please provide the instances in question and status of each.

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Cannabis RFP Questions/Responses
12/20/23
Question: Is the parking study going to be required at a later date and not needed for the application? RESPONSE: The parking study is not required as part of the Proposal. A parking study could be required during the CUP process, if it’s determined necessary by the Community Development Director.

Question: In regards to the ZVL (Zone Verification Letter) for cannabis, does "a lease" need to be notarized or just the purchase agreement?
RESPONSE: The RFP will be amended to eliminate the word “notarized” on page 5 (under Section - Phases I/II – Cannabis Zoning Verification) and this change will be posted in Addendum 1.

Question: Will cannabis retailers have the ability to change locations after they are awarded a cannabis permit? If so, are there guidelines in place for what the process would look like? RESPONSE: No. If the applicant is awarded an NTP by the City Council, they must move forward in the CUP process with the site indicated in the proposal. The Business License and the CUP are not transferrable to another owner, or other location.

Question: We're trying to get a LiveScan done and are having the following issue:

On Covina’s form it says “5.80 CMC Cannabis Business Permit” for the authorized applicant type. The place an applicant went to said that is not one of the options. They suggested the “License or Permit” option but that will not allow both DOJ and FBI, only DOJ. They then suggested an applicant to use “Non-Officer Legal” which would allow both DOJ and FBI but an applicant wasn't sure if it was the right way to do it.

RESPONSE: A revised LiveScan Service Form has been uploaded to the City’s website at www.covinaca.gov/cannabisprogram. The RFP will be amended to include updated submittal due dates for Proposals and the LiveScan background check(s).

The application deadline to complete the LiveScan background check(s), submitted to the DOJ via LiveScan is on or before January 31, 2024. Applicants are encouraged to retain a date stamped copy of the LiveScan Service form and/or receipt of payment for the LiveScan Service for each applicant. All listed owners are required to complete the LiveScan background check process.

Results of the LiveScan background will be submitted directly to the Covina Police Department and reviewed.

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Question: The terms “parent and/or affiliated companies”, “parent companies and/or affiliates”, and “parent companies or affiliates” are used throughout the Cannabis RFP and the attached Scoring Methodology. What are the City’s actual definitions for the terms “parent company” and “affiliate / affiliated company”?
RESPONSE: A parent company is a single company that has a controlling interest in another company, giving it control of its operations and finances. Parent companies are formed when they spin-off or carve out subsidiaries, or through an acquisition or merger of other companies. Parent companies must account for their subsidiaries appropriately on their financial statements and for tax purposes.

Affiliated companies relate to ownership, with the owner of a company being a minority shareholder in another company. This arrangement means that the owner (parent company) may own a controlling stake (greater than 50%) of one company and a minor stake (less than 50%) of another. The company that the owner has a smaller minority stake in is the affiliate company. Two or more companies can also be affiliates if owned by the same third party.

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1 12923-0002\2904041v1.doc
ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/Additions are underlined. Deletions are crossed out.

THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
___________________________ ___________________
Signature Date
___________________________
Name, Title
___________________________
Company Name
**This form must be included with your bid proposal packet.

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2 12923-0002\2904041v1.doc

CITY OF COVINA

REQUEST FOR PROPOSALS (RFP)
FOR

CANNABIS RETAIL BUSINESS
OR

CANNABIS MICROBUSINESS
RFP 2023-0X2023-02
[CITY LOGO HERE]
PROPOSAL DEADLINE: Wednesday, December 20, 2023Monday January 22, 2024 – 2:00 PM.

CITY OF COVINA

CITY CLERK OFFICE
125 E. COLLEGE STREET
COVINA, CA 91723
ATTN: Evaluation Committee

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3 12923-0002\2904041v1.doc

CITY OF COVINA

CITY MANAGERS OFFICE

REQUEST FOR PROPOSAL FOR THE ESTABLISHMENT OF A

CANNABIS RETAIL BUSINESS OR CANNABIS MICROBUSINESS

Pursuant to Resolution CC 2023-XX-96 “Process Standards Applicable to Commercial Cannabis Permit Applicants and Their Representatives”, City Councilmembers will not respond to any correspondence, inquiries, messages or contacts (“Communications”), whether in person, by phone or by electronic means, regarding anything related to commercial cannabis permits and related zoning and land use issues from interested parties (including permit applicants or their representatives). Said Communications will be forwarded to appropriate City staff for response. As such, please direct all inquiries to [email protected].

In addition, a successful applicant will be required to enter into a Development Agreement with the City (See Attachment 1). The Development Agreement must be fully executed and recorded prior to the issuance of a Cannabis Business Permit and commencement of any commercial cannabis business operation in the City.

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4 12923-0002\2904041v1.doc
and be valid for twelve (12) months from the date of issuance per Covina Municipal Code Section 5.80.120 (codepublishing.com/CA/Covina/).

In summer 2020, the Covina City Council requested an update on statewide regulations related to cannabis.

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5 12923-0002\2904041v1.doc
potential cannabis business operators within the City to achieve the highest quality cannabis business operations and associated developments that will strengthen and sustain the safety, character, desirability and stability of the community. Participation in the RFP process is a requirement to obtain a Cannabis Business Permit and CUP from the City of Covina. It is however, only the first step in the process and comes with no guarantees. The successful candidates chosen through the RFP process are not guaranteed the required Cannabis Business Permit, the required CUP, the required building permits, or any other required license or permit(s) from the State of California or any other governing entity. Participation in this RFP process is at the sole risk of the participants.

INQUIRIES and ADDENDA
For inquiries regarding this RFP, please contact the City’s representative via electronic mail at [email protected]. Proposers must e-mail inquiries no later than 2:00 p.m. on Monday, October 23November 6, , 2023. Inquiries received after the specified date and time will not be answered.

SELECTION SCHEDULE
Phases I/II – Open to All Applicants
(All deadlines may be subject to change. Any changes will be announced via the City’s website at Covinaca.gov/cannabisprogram)
RFP Release Monday, September 25, 2023
Pre-Proposal Meeting* Thursday, October 5, 2023 11:00 a.m.

Covina City Council Chambers,
125 E. College Avenue Covina CA 91723
Deadline for Questions Monday, November 6, 2023 by 2:00 p.m.

Must be submitted in writing and either emailed to
[email protected] or hand delivered to the
City Clerk’s Office prior to deadline.

Response to Questions/ on or about Wednesday, November 22December 20, 2023
Issue Addenda, if necessary
Deadline to Request Zoning Verification Thursday, November 30, 2023 by 2:00 p.m.

Must be received by City Clerk’s Office
Covina City Hall, 125 E. College St. Covina CA 91723
Deadline for Proposals Wednesday, December 20, 2023Monday January 22, 2024 by 2:00 p.m.

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6 12923-0002\2904041v1.doc
Must be received by City Clerk’s Office
Covina City Hall, 125 E. College St. Covina CA 91723
Release Phase I/II Scores Tentatively Scheduled for late January 2024 Schedule could be delayed depending on number of
applicants
Phase III/IV – Open to Applicants Scoring 80% and Higher in Phases I/II (All Dates are Tentative - Schedule could be delayed depending on number of applicants in Phase I/II) Interviews February 2024
Release Phase III Scores March 2024
City Council Consideration April 2024
Notice to Proceed TBD
Deadline to Submit Preapplication for CUP 60 days following receipt of Notice to Proceed Deadline to Submit BL/CUP Applications TBD**
Development Agreement TBD***
Business License TBD****
*Pre-Proposal Meeting is mandatory and will take place in City Council Chambers at City Hall. ** CUP issuance subject to Planning Commission recommendation and City Council approval after requisite public hearings
***A Development Agreement between the City and Applicant must be executed and recorded prior to any commercial business operations (see Attachment 1).
***Business License will only be issued after a CUP has been obtained by the Applicant, a Development Agreement with the City has been executed, and final approval of site facilities by City.

APPLICATION PHASES
The City of Covina’s Request for Proposals will consist of several phases as follows:

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deadline. Any Cannabis Zoning Verification Forms submitted after November 30, 2023 at 2 p.m. shall not be processed.

Background Check
All business owners must complete a Live Scan background check and submit on/or prior to the application deadlineJanuary 31, 2024 as further described in Section 2. An “Owner” means any of the following: a person with an aggregate ownership interest of 20 percent or more in the cannabis business, unless the interest is solely a security, lien or encumbrance; or an individual who manages, directs, or controls the operations of the commercial cannabis business, including but not limited to:

1. A member of the board of directors of a nonprofit.

2. A general partner of a cannabis business that is organized as a partnership.

3. A nonmember manager or manager of a cannabis business that is organized as a limited liability company.

4. The trustee(s) and all persons who have control of the trust and/or the cannabis business that is held in trust.

6. An individual with the authority to execute contracts on behalf of the cannabis business.

Proposal Submittal and Review

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Applicant proposals will be reviewed for completeness and responsiveness to the RFP document. Proposals will be first screened qualitatively, on a pass/fail basis under the following categories:
o Payment of Application Fees
o Completion of Zoning Verification and Evidence of Property Site Control o Completion of Background Checks for Each Listed Owner. Please note, the live scan background check information is not required to be in the proposal, but one must be submitted for all listed owners by January 31, 2024.
o Applicant provided three (3) hard copies and one electronic copy on a flash drive of proposal. o Proposal does not exceed 150 pages, including financial documents, spreadsheets, etc. (not including live scan/background check information, labor peace agreement, leases, property control documents, and Attachment 4 - State of California Cannabis Business License Acknowledgement Form).
o Proposal is written in size 12 font, except for headers which may be in 16 point font. o Completion of Letter of Intent and Acknowledgements by Each Listed Owner Following the qualitative review to ensure responsiveness, proposals that passed will be evaluated on a technical basis according to the following criteria:
o Qualifications – 500 points (Section 3 below)
o Experience – 250 points
o Industry Knowledge – 100 points
o Ownership Team – 50 points
o Claims/Litigation History – 100 points
o Business Plan - 400 points (Section 4 below)
o Operations Protocols – 100 points
o Product Offering/Controls – 40 points
o Market Assessment – 70 points
o Financial Plan/Funding – 70 points
o Records Software – 30 points
o Track/Trace – 10 points
o State Testing Regulations – 20 points
o Employee Training – 20 points
o Customer Education – 20 points
o Implementation Timeline – 20 points
o Community Benefits – 200 points (Section 5 below)
o Facility Design/Neighborhood Compatibility - 400 points (Section 6 below) o Exterior Design – 100 points
o Design Fit with Neighborhood – 100 points
o Integration of Security Measures in Design – 100 points o Air Quality/Odor Control – 100 points
o Security Plan – 500 points (Section 7 below)
o Experience -250 points
o Safety Education – 25 points
o Theft Reduction Measures – 20 points
o Cash Management Plan – 50 points
o Product Access Control – 20 points

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o Delivery Security Plan – 50 points
o Security Plan – 35 points
o Video Surveillance Plan – 25 points
o Armored Vehicle UseTransportation – 15 points
o Youth Consumption Plan – 10 points
Proposals will be evaluated by the City’s third-party consultant/evaluator and a committee of City representatives according to the evaluation criteria listed above. Following this review, scores will be tabulated for each applicant. Proposals scoring 80% (1,600 points) or greater will be eligible to proceed to Phases III and IV of the RFP process. The City will send notification letters to applicants that are eligible to proceed to Phases III/IV and applicants that are not eligible to proceed. Applicant scores may not be appealed.

The interview will be facilitated by the City’s representative and consist of a presentation, followed by the applicant, followed by questions from the City’s review committee. The review committeeinterview shall consist ofbe conducted by the City’s third-party consultant/evaluator and City staff members appointed by the City Manager.

Phase IV
The City’s review committee will present the ranking list to the City Council for consideration to issue a Notice to Proceed (“NTP”) to award permits. Applicants will be provided the opportunity to address the City Council, should itthey desire to do so. Following the City Council’s consideration of the ranking list, applicant testimony and public comments, the City Council, in its sole discretion, may choose to issue a NTP to any applicant receiving 90% (180 points) and above in Phase III (or any of the top three applicants if no applicants scored 180 points or above), or none of the applicants.

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Following issuance of an NTP, the applicant will have sixty (60) days to file its preapplication for a CUP, with the payment of all related fees. No extension periods will be provided. Should the applicant not meet this requirement, the applicant shall forfeit its ability to submit a preapplication for a CUP or a CUP application and the City may issue a NTP to another eligible applicant.

Appeals
Appeals are limited and shall be governed by the provisions set forth in Covina Municipal Code Section

5.80.180.

Compliance with Public Records Act
The City has an obligation to produce any non-exempt records pursuant to the Public Records Act. At this time, the City has determined that security plans and financial records are exempt from disclosure under the Public Records Act. These two categories of records should be marked confidential. Any provision of the application that the business entity would like to be treated as confidential should be marked as confidential. Marking of a particular section as confidential will not automatically preclude the release of that portion of the application to the public as the City must comply with the Public Records Act.

PROPOSAL FORMAT
Proposals shall be concise, well-organized and demonstrate the applicant’s qualifications and experience operating a cannabis business or similar retail operation or microbusiness. The proposal shall contain, at a minimum, all of the required materials identified below. Any additional supplemental materials that an applicant believes will further show their qualifications and abilities to operate their cannabis business successfully are highly encouraged and can be included as an Appendix in the proposal. Proposal narratives shall be written in 12-point font and not exceed 150 pages (including financial documents, spreadsheets and other attachments and appendices). Headers may be no larger than 16-point font. The 150-page limit does not include live scan/background checks, labor peace agreement and, leases.

Any provision of the application that the business entity would like to be treated as confidential should be marked as confidential. Marking of a particular section as confidential will not automatically preclude the release of that portion of the application to the public as the City must comply with the Public Records Act, property control documents, financial documents, and Attachment 4 - State of California Cannabis Business License Acknowledgment Form. For applicants that have not yet entered into a labor peace agreement, the applicant shall provide a notarized statement indicating that within 30 days of issuance of a cannabis permit from the City, the applicant will enter into and abide by the labor peace agreement. The notarized statement and/or labor peace agreement should be added to the end of the application and will not count towards the 150-page limit.

Section 1. Signed Letter of Intent & Acknowledgements
A signed copy of the City prepared Letter of Intent and Acknowledgements (Attachment 3) is required. If a proposed business operation includes more than one individual, each potential owner must submit a signed copy of the City prepared Letter of Intent and Acknowledgements as part of the submittal package (electronic signatures are acceptable, signatures can all be on one page). Failure to do sosubmit Attachment 3 signed by all owners will automatically disqualify the application from consideration. This shall provide proof of the applicant(s) interest and acknowledgements of what will be required to operate a cannabis retail business or microbusiness in the City of Covina.

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Section 2. Completed City of Covina Police Department Background Check(s) All required owners/individuals for the Cannabis Business Permit and CUP are required to complete a State of California Request for Live Scan Service via a location of their choosing in compliance with Covina Municipal Code Section 5.80.060. Each listed owner must be complete a Live Scan background check by January 31, 2024. Failure to do so will automatically disqualify the application from consideration.

Section 3. Qualifications of Owner(s)

3.1 Business Entity, Experience, Local Agency References This section requires that the applicant describe the type of proposed business entity, including the disclosure of any parent/holding companies and/or affiliated companies. Describe licensesProvide proof of registration filed with the California Secretary of State or other documents that confirm established business entity (provide at end of Section 3.1, and these will not count towards 150-page limit).

3.2 Industry Knowledge
This section consists of a narrative describing the applicant’s familiarity with the cannabis industry, its familiarity with the State of California cannabis licensing framework and its experience establishing cannabis establishments with other local agencies. Discuss any familiarity with local government entitlement processes, planning/building plan check and permitting, to efficiently open a cannabis establishment.

Include any industry-related affiliations and/or involvement that the applicant/entity has to benefit the cannabis industry.

3.4 Claims/Litigation History
Provide a listing of all open/closed filings, claims, bankruptcies judgements, judgments and liens associated with the business entity, its parent companies and/or affiliates since 2015. Identify any code enforcement actions against the business entity or any lawsuits/claims that a business entity has filed against a local agency or that a local agency has filed against the business entity.

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Section 4. Business Plan
This section requires the preparation of a detailed “Operations and Management Plan” (O&M) for the proposed business. This document will guide all aspects of the business. The business will be required to operate in full conformance with O&M throughout the operational existence of the business. The City and applicant hereby acknowledge and understand that the O&M will be revised throughout the process and life of the business, but, it is highly encouraged that the applicant put as much forethought, care, and consideration into the O&M so that the City can properly evaluate the business operation.

At a minimum, the O&M must contain the following information for both athe cannabis retail operation and a cannabis microbusinessbusiness operation, in accordance with Title 5 and Title 17 requirements, whether expressly listed below, or not.

4.1 Operations Protocols
• O&M introduction;
• Operations Management: On-Site management/manager on duty; After hours management; 24/7 emergency contact;
• Operating Structure: Number of Employees; Organizational Chart, Employee Titles with Brief Description of Job Duties
• Business Operations: Hours of Operation; Opening and closing procedures; Customer check-in protocols; Process/location for receiving vendor deliveries during operating hours; Identify point of sale (“POS”) system and locations of POS systems in business; Anticipated customer volumes and adequate staffing to serve customers; Contingency plans for peak customer volumes and/or logistical activities (building maintenance, deliveries, etc.) • Forms of Payment: List forms of payment (cash, electronic, credit, etc.) accepted for purchase of products. Describe cash handling procedures. Provide approximate percentage of transactions that will be made using other forms of payment than cash
• Delivery: Delivery service procedures and vehicles used in deliveries; screening protocols for delivery drivers and risk management guidelines for delivery services; Loading and unloading of delivery trucks
• Separation of floor areas by type (i.e. customer screening area, sales area, storage room, office, grow room, etc.); Methods of separation; Regulations for the customer check-in area/lounge, sales area, storage areas, grow areas, parking lot area; ATM machine locations and regulations; • On-Site money security measures
• Emergency procedures
• Site Management; Site maintenance including parking lot, landscaping, lighting, fences/gates, trash collection and disposal, graffiti removal; Air quality and noise attenuation measures; Hazardous materials & spill events management; Storm water pollution controls. • Employee compensation/benefit costs, including labor agreements and contract employee costs.

Provide evidence of tentative agreement with labor groups, if applicable. Describe efforts to advertise jobs to Covina residents

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4.7 State Testing Regulations
• Processes used to comply with State product testing procedures • Packaging/labeling and quality control processes

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4.8 Employee Training
• Training curriculum, frequencies and certifications that may be attained by employees

4.10 Implementation Timeline
• Discuss business’ ability to secure approvals from State/City, if awarded a local permit. • Provide timeline to complete following processes: design/site review, conditional use permit preapplication, conditional use permit, business licensing, construction and business opening (typical City review time of complete applications is thirty (30) days for design/site review, sixty (60) days for conditional use permit preapplication, ninety (90) days for conditional use permit, thirty (30) days for plan check and seven (7) days for business license). These time thresholds are estimates of the City staff review time and will be based on the completeness of application materials, plans, business description, security plan, etc. submitted by the applicant. These time estimates do not reflect the time for applicants to prepare, submit, and revise the application documents.

4.11 Additional O&M requirements for cannabis microbusiness operations - Manufacturing:

All information required for a cannabis retail operation, if applicable; List of manufacturing processes proposed; Breakdown of business square footage (i.e. office, storage, manufacture, etc.); Method of record keeping and storage of all onsite business operations; List of materials required for manufacture process; Additional special handling permits required; Hazardous chemicals information; Safety information pertaining to storage, handling, spill and safety; All site safety, security & surveillance protocols (interior and exterior); Air quality and noise attenuation measures; Shipping and receiving information; Loading and unloading plan; all other pertinent information regarding the manufacturing proposed.

4.12 Additional O&M requirements for cannabis microbusiness operations - Cultivation:

4.13 Additional O&M requirements for cannabis microbusiness operations - Distribution:

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measures; Additional special handling permits required; Hazardous chemicals information; Safety information pertaining to storage, handling, spill and safety; All site safety, security & surveillance protocols (interior and exterior); Shipping and receiving information; Loading and unloading plan; all other pertinent information regarding the distribution proposed.

Section 6. Facility and Neighborhood Compatibility
This section requires that applicant describe its business establishment design, aesthetic appeal, integration with existing businesses/neighborhoods and its ability to enhance safety/security through design. • Exterior Design
o Provide conceptual designs, site plans, rendering or other proposed site amenities o Provide and describe sign package, branding other design elements for proposed business o Compliance with Covina Municipal Code 17.84.090, Subsection G – signage standards.

NoAdditionally, no depiction of cannabis or products or other advertising signage o Briefly describe design approach used in conceptual planning • Design Neighborhood Fit
o Describe business’ ability to manage operations and mitigate impacts to neighboring businesses and or immediate neighbors
o Describe community relations approach and representatives that will interact with the neighborhood, including addressing complaints that may arise o Provide an assessment of parking and how adequate parking will be provided for customers and employees (Parking Study prepared by a registered traffic engineer may be required at the CUP stage).
o Include proactive measures that may be used to prevent parking overflow and/or parking in unauthorized locations.
o Describe how business will manage pedestrian traffic, including intake and operational practices to limit line queues and crowds.
• Integration of Security Measures in Design
o Describe security elements included in design that will enhance safety and security for the business and nearby neighborhood areas.

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o Compliance with Covina Municipal Code 17.84.070 - Lighting/after-hours security, panic buttons, alarmincluding, but not limited to,- locked restrooms, prohibit resale and drive thru sales, limited access areas
o Compliance with Covina Municipal Code 17.84.080 –including, but not limited to, no bars on window exteriors,; required backup generator or alternative, exterior landscapingvegetation shall not allow for hiding in bushesbe planted, altered and maintained in a fashion that precludes its use as a hiding place for persons on the premises and be well-maintained; Lighting panic buttons, alarm; install mosquito noise devices to deter vandalism/loitering
• Air Quality/Odor Control
o Identify potential sources of odor and describe odor control devices and/or operating techniques that will be used to limit odors of cannabis beyond the business space. o Describe waste management plan, including disposal locations and process used to dispose of expired/rejected/unused products.
• Commercial Cannabis Permit Program Zoning Verification Form o Include City-approved zoning verification form and evidence of site control.

Section 7. Security Plan (Mark as Confidential, will not be made public pursuant to Government Code 7293.600 et seq.

This section requires that applicant describe its safety and security approach at the proposed location.

Provide diagrams and/or specific details related to security measures and how they relate to the overall business operation.

7.1 Experience
• Security History at other Locations
o Describe security history at other licensed cannabis establishments. • Emergency Situations
o Describe experience with potential emergency situations (criminal, fire, medical, hazardous materials) that could arise during the course of business. o List proposed contractors and describe the roles for any of the following:
▪ Fire Prevention/Suppression
▪ Fire Alarm and Monitoring
▪ Professional Security Service
• Facility Security
o Describe vetting/background process used to hire security staff o If using a private security company, provide proof of a Covina Private Patrol Operator Permit (PPO) – note that this is different from State PPO Permits. Should the private security not hold a Covina Private PPO, applicant may provide a statement that acknowledges that the private security company to be used will have the requisite Covina Private PPO prior to your eligibility to proceed into Phase IV of the process. Written evidence of the PPO must be provided to the City Clerk’s office prior to Phase IV, or the Applicant will be disqualified from continuing in the recruitment process. o Compliance with Covina Municipal Code 17.84.070 -and 080 – Lighting, panic buttons, alarmalarms, locked restrooms, prohibit resale andprohibition of reselling products,

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prohibition of drive-through sales, lists of gases or chemicals that will be used in conjunction with business operation.

7.2 Safety Education
o Describe employee training programs and processes related to security. Include any curriculum and/or training frequencies

7.3 Theft Reduction Measures
o Describe loss prevention measures and other practices to deter theft

7.5 Product Access Control
o Describe method for securing product access to minimize theft and/or limit unauthorized access to products

7.9 Armored Vehicle UseTransportation
o Describe usethe type(s) of armored transitvehicles used for transporting products and/or money, if any
o Describe operating plans for the safe transfer of products/money between business and transport vehicles
o Describe training requirements and/or certifications required for transit personnel

7.10 Youth Consumption Plan

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o Describe practices that will ensure the prohibition of youths at the business or will limit to product access to youths
o Describe health promotion efforts to educate the public of youth consumption prohibitions Section 8. State License or Copy of Pending Application This section requires that each applicant complete Attachment 4 - “State of California Cannabis Business License Acknowledgement Form” and submit with its proposal. The completed form must be signed by each owner listed in the applicant’s proposal (electronic signatures are acceptable, and all signatures can be on one page). a copy of the applicants State of California Cannabis License, or proof that the applicant is actively in the process of obtaining a State License.

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ATTACHMENTS:

Attachment 1 – Draft Development Agreement
Attachment 2 – Zoning Verification
Attachment 3 – Letter of Intent & Acknowledgements (Amended now on web-page) Attachment 4 - State of California Cannabis Business License Acknowledgement Form (now on web-page) Attachment 5 – Scoring Methodology

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Attachment 1 – Draft Development Agreement
To be posted as soon as practicable.

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Attachment 2 – Zoning Verification
Commercial Cannabis Permit Program
Zoning Verification
Applicants must submit a Commercial Cannabis Zoning Verification Form to the City’s Community Development Department confirming that the proposed business location for the application is located in an acceptable zoning location and outside of the established sensitive use buffers. Applicant must provide proof of property site control (signed purchase agreement, lease agreement, letter of intent to lease, or proof of ownership).

Submit to the City Clerk’s Office by November 30, 2023 at 2 p.m. ______________________________________
Name of Applicant
______________________________________
County of Los Angeles Assessor’s Parcel Number
______________________________________
Property Address
□ Proof of Property Site Control Included
(Signed Purchase Agreement, Lease Agreement, Letter of Intent to Lease, Proof of Ownership)
_______________________________________
Email Address
_______________________________________
Phone Number
_______________________________________ _________________________ Applicant Signature Date

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Attachment 3 – Letter of Intent & Acknowledgements
City of Covina
125 E. College Street
Covina, CA 91723
RE: Letter of Intent – Request for Proposals: Adult Use Cannabis Retail or Adult Use Cannabis Microbusiness Operator
I, the undersigned, attest that I am a duly authorized representative of the proposed cannabis business identified below, and hereby acknowledge that all items listed 1-14 inclusive below, at minimum, will be applicable to the proposed cannabis business, should it be selected to move forward in the RFP process and in the future, operate within the City of Covina. I acknowledge that I undertake this process with the knowledge that I do so at my sole risk and that there are no guarantees for any particular outcome and that the City of Covina can halt this process at any time, with or without for cause or notice.

Name of Business: ______________________________________________________________ Address of Proposed
Business: ______________________________________________________________ Assessor Parcel
Number(s): ______________________________________________________________ Business Address of
Owner: ______________________________________________________________ Owner Phone
Number: ______________________________________________________________ Applicant E-Mail: ______________________________________________________________ I understand that I will be expected to receive all City notices at the Business Address and also consent to receiving notices and communications from the City at the phone number and email address listed above, at the City’s discretion.

I am interested in starting a cannabis _______________________________ business operation within the City of Covina. Further, I attest that I own, or have secured an agreement for the proposed business location listed above, or am in the process of securing the site, for a minimum of two (2) years, and that said location is eligible for cannabis business operations per City regulations (the location meets Zoning designation requirements found in Title 17).

If selected to move forward and submit for a CUP I will apply for this permit within 60 days of the receipt of the letter of authorization from the City of Covina. I understand that failure to apply for the CUP within that time period may automatically forfeit my opportunity to apply, at the discretion of the City Manager. I further understand that failing to meet any of the requirements of the RFP or applicable City regulations shall lead to automatic revocation of my opportunity to obtain a cannabis business license.

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Acknowledgements*:

1. All owners and/or employees are subject to a criminal background check, subject to the rules and regulations established by Covina Municipal Code Section 5.80.060 (codepublishing.com/CA/Covina/).

2. I understand that a Development Agreement with the City is required prior to issuance of a cannabis business permit per Covina Municipal Code Section 5.80.110. (codepublishing.com/CA/Covina/).

Such agreement will include payment to the City of Covina of a community benefit fee of five (5) percent of gross receipts for products sold at the proposed cannabis business location.

3. Prior to the commencement of any cannabis retail, or cannabis microbusiness operations within the City as the result of this RFP, the physical site conditions, improvements, and all related representations and requirements are subject to review and concurrence by the City Manager and/or his designee and the Police Chief and/or his designee.

4. Each cannabis business permit issued pursuant to this RFP shall expire twelve (12) months from the date of issuance. A cannabis business permit may be renewed as provided for in Covina Municipal Code Section 5.80.150.

5. If a cannabis business permit is awarded, the application for renewal of a cannabis business permit shall be submitted at least sixty (60) calendar days prior to the expiration date of the current permit per Covina Municipal Code Section 5.80.150.

6. I understand that the issuance of a cannabis permit does not constitute a land use entitlement and does not waive other requirements that are required to open a commercial cannabis business establishment in the City of Covina. Such land use entitlements must be applied for separately, including payment of related fees (including but not limited to land use approvals, site plan review approvals, plan check and permits, City business license and State license).

7. A Cannabis Business Permit is non-transferable per Covina Municipal Code Section 5.80.190.

8. If an application is denied due to a disqualifying factor such as failing a background check or not complying with any local or state regulatory requirement in which legal or administrative action has been taken, a new application may not be filed by the applicant for one (1) year from the date of the denial. This section shall not apply to an applicant not being awarded a permit resulting from a limited number of permits being issued by the City.

9. Suspension of a license issued by the State of California, or by any of its departments or divisions, shall immediately suspend the ability of a cannabis business to operate within the City until the State of California or its respective department or division reinstates or reissues the State license.

10. If an operating cannabis business in the City of Covina has its State License suspended, the business must close its commercial operations immediately and is required to notify the City Manager in writing of the suspension within 48 hours of receipt.

11. For applicants with 10 or more employees, the applicant shall attest that the applicant will enter into a Labor & Peace Agreement and will abide by the terms of the agreement, and the applicant shall provide a copy thereof to the City per Covina Municipal Code Section 5.80.100 G.

12. Any and all provisions of the City of Covina Municipal Code not specifically identified above, and all other applicable State of California laws, rules, and regulations must be strictly adhered to during the operational life of the business or the cannabis business license and permit are subject to revocation.

13. All cannabis businesses will be subject to two (2) on-site inspections each calendar year to insure compliance with Conditions of Approval and stipulations of the Operations & Management Plan.

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14. The City reserves the right to reject all proposals with or without cause and participation in this RFP process is at the sole risk of the participants.

Signed & Acknowledged: __________________________________ Date: ___________ Print Name: __________________________________ Date: ___________ *All proposed owners must complete and sign their own Letter of Intent and Acknowledgement. Each owner shall complete Page 1 of the form. Names of owners and signatures may be combined on one page to avoid duplication of documents.

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Attachment 4 – State of California Cannabis Business License Acknowledgement Form State of California Cannabis Business License Acknowledgement Form City of Covina
125 E. College Street
Covina, CA 91723
RE: Requirement to Obtain a State of California Cannabis Business License for Cannabis Retail or Cannabis Microbusiness Operator in Covina
I, the undersigned, attest that I am an owner of the proposed cannabis business identified below, and hereby acknowledge that prior to beginning cannabis retail or cannabis micro-business operations in the City of Covina, the business will be required to show the City proof that it has obtained a State of California Cannabis Business License for the type of business it will be operating in Covina. I acknowledge that I undertake this process with the knowledge that I do so at my sole risk, and that if the cannabis business is successful in obtaining a permit to operate a cannabis business in Covina, but is unable to obtain a State license, the cannabis business will not be able to operate in Covina.

Name of Business: ______________________________________________________________ Address of Proposed
Business: ______________________________________________________________ Assessor Parcel
Number(s): ______________________________________________________________ Business Address of
Owner: ______________________________________________________________ Owner Phone
Number: ______________________________________________________________ Percentage of
Ownership Interest: ______________________________________________________________ Owner’s E-Mail: ______________________________________________________________ Signed & Acknowledged: __________________________________ Date: ___________ Print Name: __________________________________ Date: ___________ *All proposed owners must complete and sign their own State of California Cannabis Business License Acknowledgement Form.

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Attachment 5 – Scoring Methodology
Section 3 - Qualifications – 500 points
▪ 3.1 Business Entity, Experience, Local References – 250 points Points
Available
Category Scoring
10 Applicant describes Business Entity, relationships with parent/holding companies and/or affiliated companies.

Applicant provides relevant business formation details, proof of registration with CA Secretary of State
Up to 10 points
15 Applicant demonstrates experience with opening legally permitted locations in communities similar to the City of Covina.

Up to 40 points
25 Applicant demonstrates experience in cannabis industry with evidence of legally permitted operations. Rate on
sliding scale depending on number of legal, cannabis retail or microbusiness establishments that have been opened.
• No permitted facilities – 0 points
• 1-5 Stores – 15 points
• 6 + Stores – 25 points
100
Applicant demonstrates experience in cannabis industry
with evidence of legally permitted operations in California.

Rate on sliding scale depending on number of legal,
cannabis retail or microbusiness establishments in California that have been opened.
• None open – 0 points
• 1-5 Stores – 60 points
• 6 + Stores – 100 points
25 Duration Open in California • None open – 0 points
• Less than 1 Year – 10 points
• 1-3 Years – 15 points
• 4+ Years – 25 points
50 References – Applicant provides 3 local government
references where legally permitted cannabis
retail/microbusiness establishments are in operation.

Up to 50 points, depending on references
▪ 3.2 Industry Knowledge – 100 points
Points
Available
Category Scoring
35 Applicant describes familiarity with CA Licensing framework and provides relevant experience in opening cannabis
retail/microbusiness locations in local agencies.

Up to 35 points
35 Applicant demonstrates familiarity with local government entitlement process and planning/building plan check
process to successfully open a cannabis
retail/microbusiness establishment.

Up to 35 points
30 Applicant describes its experience in industry-related professional organizations, participation in government Up to 30 points

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regulatory agencies and/or specific contributions that have benefitted the cannabis industry.
▪ 3.3 Ownership Team – 50 points
Points
Available
Category Scoring
25 Applicant provides resumes, biographies or Curriculum Vitae for all owners with an equity share of 20% or more (not-to-exceed 2 pages per owner) that outlines the listed owner(s) qualifications to own and operate a cannabis
business.

Up to 25 points
25 Verification of information listed in resumes. Up to 25 points ▪ 3.4 Claims/Litigation History – 100 points
Points
Available
Category Scoring
25 Applicant provides list of open/closed filings, including dates and disposition (including any code enforcement actions filed against applicant or any litigation filed against the applicant by a local agency or that applicant filed against a local agency)
0 points if previous filings exist; 25 points
if no record of previous filings.
25 Bankruptcies - Applicant and/or parent companies or
affiliates
0 points if bankruptcies exist; 25 points if
no records of previous bankruptcies.
25 Judgments – Applicant and/or parent companies or affiliates 0 points if previous judgments exist;25 points if no records of previous judgments.
25 Liens – Applicant and/or parent companies or affiliates 0 points if previous liens filed; 25 points if no records of previous liens.

Section 4 - Business Plan – 400 points
▪ 4.1 Operations Protocols – 100 points
Points
Available
Category Scoring
15 Applicant describes business operating protocols for all business aspects, including number of employees,
organization chart, employee titles and a brief description of responsibilities; 24/7 Emergency contact & Emergency procedures.

Up to 20 points
30 Applicant describes day-to-day operational requirements deemed necessary to manage a retail cannabis business,
including, but not limited to: ATM machine locations &
regulations; On-Site Money safety measures; Separation of floor areas by type (customer screening area, sales area, storage room, office, etc.); customer check-in protocols, processes/locations for receiving vendor deliveries during operating hours, identification by name of point of sale (“POS”) system and locations of POS systems within facility.

Up to 30 points

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28 12923-0002\2904041v1.doc
Plan demonstrates projected customer volumes and
appropriate staffing needs to serve customers.
15 Applicant describes hours of operation, including
opening/closing procedures. This includes contingency
plans for peak customer volumes and consideration of
logistical activities (i.e. deliveries, all aspects of building & site maintenance, etc.) in daily operations; List forms of payment accepted (cash, electronic, credit, etc.); Air quality and noise attenuation measures; graffiti removal; haz mat and storm water if applicable.

Up to 30 points
10 Applicant describes delivery service procedures and vehicles used in deliveries, including screening of delivery drivers and monitoring driver performance (i.e. CA DMV Pull
Program).

Up to 10 points
30 Applicant includes evidence of a tentative agreement or existing agreement with labor groups and further describes efforts to advertise employment opportunities to local
residents,.

Up to 10 points
▪ 4.2 Product Offering/Controls – 40 points
Points
Available
Category Scoring
20 • Applicant describes inventory control procedures
including procurement, point of sale, track and
trace software and the integration of video
surveillance systems in monitoring product
controls. Plan includes any audits and/or best
practices employed by business entity to effectively
monitor inventories; Stock room operations;
Outdoor storage; Forklift operations.

Up to 20 points
20 • Applicant describes method of record keeping and
storage for cannabis and non-cannabis items; OnSite Security measures during business hours; After hours security measures; Security Patrol services;
Video surveillance (internal & external); Outdoor
displays; Signage
.

Up to 20 points
▪ 4.3 Market Assessment – 70 points
Points
Available
Category Scoring
70 Applicant provides an assessment of the proposed entity’s viability in the local/regional marketplace. Plan describes any competitive advantages or operating
strategies/efficiencies that may be unique to the proposed business entity and its establishment in the marketplace.

Up to 70 points
▪ 4.4 Financial Plan/Funding – 70 points
Points
Available
Category Scoring

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29 12923-0002\2904041v1.doc
15 Provides general details of the proposed business model including type of business, hours of operation, all the types of products that will be proposed for sale, if deliveries are to be a part of the business plan and if so, how; and all other general aspects of the business and its operational goals; Applicant provides a pro forma for at least five (5) years of operation that includes: realistic revenue
projections for planning horizon (supported with
appropriate backup documentation such as market analysis, labor market analysis, existing market experience, firm operating efficiencies, etc.); capital liabilities/repayment terms, operating costs, projected cash flow and NPV/IRR for planning horizon and planned capital replacement needs Up to 15 points
15 Applicant includes proof of secured capital in bank
account(s), letters of credit or other liquid assets that belong to owner(s) that will adequately finance property acquisition/leasehold, tenant improvements, operational activities, licensing/permitting and entitlement processes.

Up to 15 points
15 Applicant provides budgets for tenant improvements,
operational activities, facility maintenance, equipment, utility costs, insurances, financing costs, property
acquisition/lease, security services, State licenses/permits and City licenses/permits.

Up to 15 points
25 Applicant outlines employee compensation/benefit costs, and contract employee costs (i.e. accountants, legal,
consultants, etc.).

Up to 25 points
▪ 4.5 Records Software – 30 points
Points
Available
Category Scoring
5 Applicant describes specific software package that will be utilized to monitor inventories, including product quantities and types of products.

Up to 5 points
15 Applicant describes software’s ability to manage business’ financial data, financial statements and human resources functions.

Up to 15 points
10 Applicant describes process for preparing financial
statements, including auditing process that will be used to ensure compliance with generally accepted practices.

Up to 10 points
▪ 4.6 Track/Trace – 10 points
Points
Available
Category Scoring
5 Applicant describes systems/software packages that are utilized to manage track and trace functions and describes familiarity and experience with State-required track and trace systems that monitor the movement of products
through the supply chain.

Up to 5 points
5 Applicant describes production and distribution sources that will be utilized in the supply chain.

Up to 5 points

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30 12923-0002\2904041v1.doc
▪ 4.7 State Testing Regulations – 20 points
Points
Available
Category Scoring
20 Applicant describes processes used to comply with Staterequired product testing procedures, packaging and labeling, quality control processes and practices utilized to inform customers of such compliance.

Up to 20 points
▪ 4.8 Employee Training – 20 points
Points
Available
Category Scoring
20 Applicant describes employee training curriculum,
frequencies and certifications that may be attained by
employees.

Up to 20 points
▪ 4.9 Customer Education – 20 points
Points
Available
Category Scoring
10 Applicant describes practices utilized by business to inform customer of product quality data and compliance with State regulations.

Up to 10 points
10 Applicant describes public health outreach strategies that will be employed to inform customers of health risks and health-related resources pertaining to product use.

Up to 10 points
▪ 4.10 Implementation Timeline – 20 points
Points
Available
Category Scoring
20 Applicant discusses business entity’s ability to secure necessary approvals from State and City, if awarded a local permit. Includes timeline to complete the following
processes: design/site review, full conditional use permit process, plan check, business licensing, construction and business opening.

Up to 20 points
Section 5 - Community Benefits – 200 points
Points
Available
Category Scoring
25 Applicant describes owner(s) track record, prior to January 1, 2023, of community involvement in Covina or in other local cities/groups, non-profit organizations or other efforts to improve the local economy or community in Covina.
25 points if previous track record of
community involvement exists; If no
previous involvement, 0 points.
175 Applicant describes proposed community involvement in local non-profit organizations, sponsored activities/events and/or other civic engagement that will be undertaken if awarded a local cannabis permit. Plan includes specific details of hours/activities that will be completed by owners Up to 175 points

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31 12923-0002\2904041v1.doc
or employees, describes resources that will be distributed to local non-profit organizations/community programs and discusses other community/corporate citizenry programs
that will provide community value.

Section 6 - Facility Design/Neighborhood Compatibility – 400 points ▪ 6.1 Exterior Design – 100 points
Points
Available
Category Scoring
40 Applicant includes conceptual designs, site plans,
renderings or other proposed site amenities to integrate with existing neighborhood and businesses.

Up to 40 points
20 Applicant describes proposed sign package, branding and other design elements for proposed business.

Up to 20 points
40 Compliance with Covina Municipal Code 17.84.090,
Subsection G – signage standards; No depiction of cannabis or products or other advertising signage; Briefly describes design approach used in conceptual planning.

Up to 40 points
▪ 6.2 Design Fit with Neighborhood – 100 points
Points
Available
Category Scoring
25 Applicant describes the business’ ability to appropriately manage operations and mitigate impacts on the
surrounding neighborhood.

Up to 25 points
25 Applicant describes process and designated liaison for managing community relations, mitigating complaints from citizens, customers and other businesses in the area.

Up to 25 points
25 Applicant includes a parking assessment and provides adequate parking space for customers.

Up to 25 points
15 Applicant includes proactive measures that the business will employ to prevent parking in adjacent areas.

Up to 15 points
10 Applicant describes how business will manage pedestrian traffic, including customer intake process and operational practices that limit customer line queues or exterior crowds.

Up to 10 points
▪ 6.3 Integration of Security Measures in Design – 100 points Points
Available
Category Scoring
100 Applicant describes proposed security design elements that will enhance safety for the business and surrounding areas, including proactive measures to deter loitering near facility, exterior landscaping shall not deter criminal activity and prevent/address illegal consumption near premises, be well maintained and the use of “mosquito” noise devices are
included. Describe compliance with CMC Sections 17.84.070 and 17.84.080. Business shall have the capability to remain secure during a power outage and shall ensure that all
Up to 100 points

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32 12923-0002\2904041v1.doc
access doors are not solely controlled by an electronic access panel to ensure that locks are not released during a power outage.
▪ 6.4 Air Quality/Odor Control – 100 points
Points
Available
Category Scoring
70 Applicant identifies any potential sources of odor and includes odor control devices and operating techniques that will be utilized to limit odors of cannabis beyond the
business space. Plan also includes proactive measures to detect exterior odors at the proposed business location.

Up to 70 points
30 Applicant describes the business’ waste management plan, including disposal locations and the disposal process used for expired/rejected/unused products.

Up to 30 points
Section 7 - Security Plan – 500 points
▪ 7.1 Experience – 250 points
Points
Available
Category Scoring
100 Applicant describes the applicant’s security history at existing cannabis business locations including whether
there have been any thefts or robberies at the businesses that the applicant operates. Plan further describes the security plan that will be implemented at the proposed
business location, including diagrams of security measures and how they relate to the overall business operation.

Up to 100 points
100 Applicant describes the applicant’s experience with potential emergency situations (crime, fire, medical and hazardous) that could arise during the course of business. List proposed contractors and describe the roles for any of the following:

Professional Security Service, Fire Alarm and Monitoring; Fire prevention/suppression.

Up to 100 points
50 Applicant identifies the following security, and health and safety elements:
• Describes vetting/background process used to hire
security staff and if using a private security
company, provide proof of a Covina Private Patrol
Operator Permit (PPO)
• Identifies fire alarm and monitoring systems;
• Name(s) of professional security consultants;
• Qualification requirements of safety personnel
(contract or employees)
• Lists of gases or chemicals that will be used in
conjunction with business operation;
• Describes accident/incident reporting procedures;
• Describes proposed evacuation procedures.

Up to 50 points
▪ 7.2 Safety Education – 25 points

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33 12923-0002\2904041v1.doc
Points
Available
Category Scoring
25 Applicant describes employee training processes pertaining to business security, including curriculum and frequencies.

Up to 25 points
▪ 7.3 Theft Reduction Measures – 20 points
Points
Available
Category Scoring
20 Applicant describes loss prevention measures and other practices to deter theft.

Up to 20 points
▪ 7.4 Cash Management Plan – 50 points
Points
Available
Category Scoring
30 Applicant describes cash handling procedures, including strategies to limit cash on hand at facility and detailed plans for the safe handling/transfer of cash.

Up to 30 points
20 Applicant demonstrates the ability to secure cash and products during non-operating hours; Describe off-hours cash security plans or procedures.

Up to 20 points
▪ 7.5 Product Access Control – 20 points
Points
Available
Category Scoring
20 Applicant describes method for securing product access to minimize theft and/or limit unauthorized access to
products.

Up to 20 points
▪ 7.6 Delivery Security Plan – 50 points
Points
Available
Category Scoring
20 Applicant describes procedures utilized to ensure general public, employee and product security during
transportation and delivery.

Up to 20 points
20 Applicant describes types of vehicles to be used, vehicle safety practices; monitoring of delivery vehicles/personnel, including efforts to ensure proper licensing, registration and insurance in compliance with State law. Provide any drug/alcohol screening tools used for delivery personnel.

Up to 20 points
10 Applicant includes GPS tracking of delivery personnel. Up to 10 points ▪ 7.7 Security Guard Plan – 35 points
Points
Available
Category Scoring

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34 12923-0002\2904041v1.doc
10 Applicant describes employees and/or security firm that will be utilized to monitor business activities.

Up to 10 points
15 Applicant describes security plans, including number of security personnel, shifts, and related activities while on duty.

Up to 15 points
10 Applicant provides training requirements and/or
certifications that may be required for security personnel.

Up to 10 points
▪ 7.8 Video Surveillance Plan – 25 points
Points
Available
Category Scoring
15 Applicant complies with specified video surveillance requirements set forth in Covina Municipal Code section

17.84.080 including having video surveillance 24
hours/day, HD quality, cover all interior spaces, maintain videos for 90 days, battery backup, dedicated security
liaison.

Up to 15 points
10 Applicant describes system accessibility for local law enforcement personnel.

Up to 10 points
▪ 7.9 Vehicle Transportation – 15 points
Points
Available
Category Scoring
5 Applicant describes the type(s) of vehicles used for
transporting of products and/or money.

Up to 5 points
5 Applicant describes operating plans for the safe transfer of products and/or money from business to vehicle.

Up to 5 points
5 Applicant provides training requirements and/or
certifications that may be required for transit personnel.

Up to 5 points
▪ 7.10 Youth Consumption Plan Prevention – 10 points
Points
Available
Category Scoring
5 Applicant describes how the business will ensure that youths do not gain access to facility and the business’ products.

Up to 5 points
5 Applicant describes health promotion efforts that will be utilized to educate the public of youth consumption
prohibitions and the harms of underage consumption.

Up to 5 points

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ADDENDUM No. 2
January 18, 2024
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 2 and attached hereto.

Changes/Additions are underlined. Deletions are crossed out.

THEREFORE: All proposers are required to note this Addendum No. 2, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
___________________________ ___________________
Signature Date
___________________________
Name, Title
___________________________
Company Name
**This form must be included with your bid proposal packet.

Page 82 of 100 ends

The following page numbers/sections are hereby amended as follows:

Page 2 ends

• Proposal Deadline: Monday Wednesday, January 22 31, 2024 – 2:00 P.M.

Page 5 ends

• Deadline for Proposals Monday Wednesday January 22 31, 2024 by 2:00 p.m.

Must be received by City Clerk’s Office
Covina City Hall, 125 E. College St. Covina CA 91723

Page 6 ends

• Phases I/II
Interested applicants may submit proposals for a Cannabis Business Permit. Applicants are required to obtain the following and submit with their proposal, prior to the submittal deadline on January 22 31, 2024 at 2 p.m., unless otherwise set forth below:

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ATTACHMENT B

Page 86 of 100 ends

Page 87 of 100 ends

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DocuSign Envelope ID: C8652DC7-596D-48EE-BB4A-D8ASODE6C71 B.

Infinity Assets Covina, LLC
Jilette Yousif (Owner)
Address of Proposed Business: 0
c:>
:5:;o 678 S Citrus Ave, Covina, CA 91723
Address of Owner (Appellant):

Phone: (619) 241-6561
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Appeal Argument: Excluding Certain Documents from the Page Co.fflt Subject: Appeal Against Application Rejection Due to Page Limit Exceeclance To Whom It May Concern,
We are writing to formally appeal the decision to reject our application on the grounds that it exceeded the 150-page limit and was deemed incomplete due to the nonsubmission of Addendum No. 1. We believe there has been a misunderstanding regarding the inclusion of certain documents within the page limit, a clerical error regarding the addendum, and a lack of notification about the incomplete submission, which is standard practice in other municipalities.

Upon reviewing the "Cannabis RFP Questions/Responses" document, we have identified contradictions and clarifications that suggest certain documents should not be included in the 150-page limit:

1. Contradictory Responses Regarding Financial Documents:
o Initial Clarification: The RFP initially indicated that all documents, except for live scan/background checks, labor peace agreements, and leases, would count towards the 150-page limit.
o Subsequent Amendment: A later response explicitly stated that financial documents are excluded from the 150-page limit.

Specifically, the response reads:
• Response: The RFP will be amended to provide that
financial documents are not included in the 150-page limit.

Specifically, the last two sentences of the first paragraph under the "Proposal Format" section on page 9 of the RFP, will be amended to read as follows: "Proposal narratives shall be written in 12-point font and shall not exceed 150 pages.

The 150-page limit does not include live scan/background checks, labor peace agreement, leases, and financial
documents). Also on page 7 of the RFP, under the "Proposal Submittal and Review" section, bullet point 5, will be
amended to read as follows: "Proposal does not exceed 150

ATTACHMENT C

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DocuSign Envelope ID: C8652DC7-596D-48EE-BB4A-D8A50DE6C718 pages (not including live scan/background check information, labor peace agreement, leases, and financial documents).

This amendment clearly indicates that financial documents are excluded from the 150- page limit, which aligns with the purpose of allowing applicants to provide comprehensive financial details without being penalized.

2. Architectural Package:
o Inclusion in Appendix: Our narrative included an architectural package detailed in the Appendix.
o Exclusion Justification: The architectural package contains site plans, floor plans, and renderings. Based on the same logic applied to financial documents and property control documents (leases and deeds), architectural documents should not be included in the 150- page limit as they are essential for demonstrating compliance with local guidelines and environmental sustainability, rather than narrative content.

3. Specifics Of Our Submission:
o Cover Page: 1 page
o Addenda No. 2 Forms: 6 pages
o ZVL: 2 pages
o Cover Page: 2 pages
o Evaluation Criteria: 133 pages (including state licenses, financials, architecture, security plan)
• State Licenses: 5 pages (Should Not Be Counted)
• Financials: X pages (Should Not Be Counted)
• Architecture: 4 pages (Should Not Be Counted)
• Security Plan: 17 pages (Can be reduced to 16 with
formatting)
o CA Business License Acknowledgment Form: 6 pages
o RFP Scoring Methodology: 9 pages
o Appendix - Cover Page - TOC: 1 page
o Appendix - Labor Peace Agreement: 3 pages
o Appendix - Lease: 11 pages
o Appendix - State Licenses: 34 pages (Should Not Be Counted) o Appendix - Proof of Funds: 10 pages (Should Not Be Counted) o Appendix - Livescan Forms: 7 pages
o Letter of Intent and Acknowledgment: 19 pages (Reduced to 8 pages)
o Architecture: 16 pages (Should Not Be Counted)
Calculation and Adjustments:

Evaluation Criteria: Initially 150 pages, reduced to 120 pages with formatting changes and correct page counting:

Page 90 of 100 ends

DocuSign Envelope ID: C8652DC7-596D-48EE-BB4A-D8A50DE6C71B •State Licenses: Excluded (-5 pages)
•Financial Documents: Excluded (-9 pages)
•Architectural Documents: Excluded (-4 pages)
•Letter of Intent and Acknowledgment: Reduced to 8 pages (-11 pages) Total Adjusted Page Count:
• 120 pages (Evaluation Criteria after formatting changes) • -5 pages (State Licenses)
• -9 pages (Financial Documents)
• -4 pages (Architecture)
• 8 pages (Letter of Intent and Acknowledgment)
•Total: < 150 pages (without Financial Documents, Architectural Package, and State Licenses)
Notification of Incomplete Submission
We would also like to raise a legal argument regarding the lack of notification about our incomplete submission due to the non-submission of Addendum No. 1. It is standard practice in many municipalities to first determine if an application is complete and then notify the applicants to allow corrections if possible. The failure to notify us of the incomplete submission due to a clerical mistake deprived us of the opportunity to correct the oversight and resubmit a complete application.

Legal Grounds for Notification:
• Other municipalities typically notify applicants of incomplete submissions and provide an opportunity for corrections.
•The lack of notification regarding our incomplete submission due to the missing Addendum No. 1 is contrary to standard practices and fair process principles.

Encouragement to Review Margins
We also encourage you to review the margins used in our submission. We maintained 1-inch margins throughout the document, ensuring compliance with standard formatting guidelines. This adherence to margin standards further supports that our narrative fits within the allowable page limits when considering tile clarified exclusions.

Given these points, we request a reconsideration of our application based on the clarified page limit exclusions and the opportunity to correct the clerical error regarding Addendum No. 1. We believe our submission adheres to the guidelines provided and should be accepted for review.

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DocuSign Envelope ID: C8652DC7-596D-48EE-BB4A-D8A50DE6C71 B Thank you for your attention to this matter. We look forward to your favorable response.

Sincerely,
Jilette Yousif (Owner)
Infinity Assets Covina, LLC
W{)-{JSlf
B8B11BF05105462 ...
6/2/2024 Date:, ________ _

Page 92 of 100 ends

DocuSign Envelope ID: 833C03BO-CBE5-4A50-A2F3-0AAC687F5AFO ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/ Additions are underlined. Deletions are eresseel THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
by'
&;il,M., $1}.J).,'1
888630F36bA/4JD ..
6/2/2024
Signature Date
Gina saady, owner
Name, Title
Infinity Assets Covina, LLC
Company Name
**This form must be included with your bid proposal packet. 1 12923-0002\2904041vl.doc

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DocuSign Envelope ID: E58C 170B-F816-4C31-81 D0-78B6731D639A CD ' '
. . ' -
ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/ Additions are underlined. Deletions are Erassea THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.

SI f 6/2/2024
Signature Date
Jilette Yousif, owner
Name, Title
Infinity Assets Covina, LLC
Company Name
**This form must be included with your bid proposal packet. 1 12923-0002\2904041vl.doc

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DocuSign Envelope ID: 614324DE-5029-4066-8948-552187FBBCDD •
•
. '
.
.
•
ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/ Additions are underlined. Deletions are erssse8 s8t.

THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
6/2/2024
Signature Date
Christopher Hester, owner
Name, Title
Infinity Assets Covina, LLC
Company Name
**This form must be included with your bid proposal packet. 1 12923-0002\2904041vl.doc

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DocuSign Envelope ID: 6904DBB8-D280-435E-8F26-5868E8D31791 ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/ Additions are underlined. Deletions are eFessea eYt.

THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
6/2/2024
Signature Date
Justin Jarin, owner
Name, Title
Infinity Assets Covina, LLC
Company Name
**This form must be included with your bid proposal packet. 1 12923-0002\2904041vl.doc

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DocuSign Envelope ID: 70ABE213-681 E-4ABD-BF98-C2DA74116399 ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/ Additions are underlined. Deletions are eressea THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
6/2/2024
Signature Date
Miguel Rodriguez, Owner
Name, Title
Infinity Assets Covina, LLC
Company Name
**This form must be included with your bid proposal packet. 1 12923-0002\2904041vl.doc

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DocuSign Envelope ID: 1 E0600E1-F695-4404-A948-F1 BD7B4C3614 ADDENDUM No. 1
December 20, 2023
City of Covina Request for Proposal No. 2023-02
Cannabis Retail Business or Cannabis Microbusiness
Notice is hereby given that certain sections contained in the above referenced Request for Proposals are being amended, clarified, and/or deleted and are identified as Addendum No. 1 and attached hereto.

Changes/ Additions are underlined. Deletions are Erassea aYt.

THEREFORE: All proposers are required to note this Addendum No. 1, sign and submit this page with their sealed proposal. Failure to provide such acknowledgement shall render the bid as non-responsive and subject to rejection.
6/2/2024
Signature Date
Joshua Mancillas, Owner
Name, Title
Infinity Assets Covina, LLC
Company Name
**This form must be included with your bid proposal packet. 1 129234 0002\2904041vl.doc

Page 98 of 100 ends

City of Covina
125 E. College Street
Covina, CA 91723-2199
Phone (626) 384-551 O
Payee:
/
Receipt Number
Receipt Date
Receipt Time
Official Receipt

Page 1 of 1 ends

202737
06/03/2024
12:15:52
Paid By ELEMENT 7
Payment Method CASH
Clerk: Lawrence Castillo
PAYMENT METHOD QUANTITY REA;.REN0E
CASH $1,699.00
ELEMENT7
Amount Tendered $1,700,00
Amount Applied $1,699.00
Change -$1.00
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Redaction Log
Reason Page (# of
occurrences) Description
no reason 1 (1) ---

Page 100 of 100 ends

Covina City CouncilJuly 16, 2024

Covina City Council
July 16, 2024