Indio City Council
July 26, 2023

City of Indio
AGENDA
City Council Special Meeting
Wednesday, July 26, 2023 @ 2:00 PM
150 Civic Center Mall, Indio, CA 92201

MISSION STATMENT

THE CITY OF INDIO'S PUBLIC SERVANTS PROVIDE OUTSTANDING MUNICIPAL SERVICES TO

ENHANCE THE QUALITY OF LIFE FOR OUR RESIDENTS, VISITORS AND THE BUSINESS

COMMUNITY

Members of the public will be required to comply with the California Department of Health Guidance for the Use of Face Coverings which strongly recommends that all persons, regardless of vaccine status, continue to mask while in indoor public settings and businesses. [Eff. 3/1/22]

You may view the meeting via Livestream on the City’s website, Facebook Live, or YouTube or view and participate via Zoom
Webinar ID: 875 6915 2363 Passcode: 92201
Agenda en Español

CEQA Statement: Unless stated otherwise on the agenda, every item on the agenda is exempt from CEQA under Guideline Sections 15060(c), 15061(b)(3), 15273, 15378, 15301, 15323 and/or Public Resources Code Section 21065.

If you are an individual with a disability and need a reasonable modification or accommodation pursuant to the Americans with Disabilities Act (“ADA”) please contact the office of the City Clerk at 760 -391-4007 prior to the meeting for assistance.

Members of the public who desire to address the City Council during the meeting may do so either in person or orally or in writing as described below.

Oral Comments: Oral testimony can be provided in person or duri ng the virtual live session. Individual speakers are limited to three minutes each, unless, for good cause, the Mayor amends the time limit. To address the Council in person please complete speaker request card located at the entrance and give it to the Ci ty Clerk. Your name will be called when it is your turn to speak. To address the Council during the virtual live session via zoom, please email the City Clerk at [email protected]. The City Clerk will facilitate to the extent possible any email requests to provide oral testimony that are sent during the live meeting. Please specify on the subject line of the email “Oral Comment” and note the agenda item number or if general comment (i.e. non-agenda item). To participate during the live session, please keep track of the meeting proceedings by watching the meeting via Livestream, Facebook Live, YouTube, or Zoom. Your name will be called when it is your turn to speak.

Written Comments: If you are unable to provide comments during the meeting (whether in person or the virtual live session), written public comments on agenda and non -agenda items, or both, may be submitted by email to the City Clerk at [email protected]. Please specify on the subject line the agenda item number or if general public comment (i.e. non-agenda item). For example on a specific item, write "agenda item 8a" on the email subject line.

Email/Written comments must be received by the City Clerk no later than 2:00 p.m. on the day of the meeting and such comments will be distributed to the City Clerk, City Council, posted on the agenda landing page and be made part of the agenda packet and public record of the meeting; however, they will not be read during the meeting.

Public Hearing Items: Any person may provide in-person comments on public hearing items. Oral or written comments will also be accepted on public hearing items in the manner prescribed in the notice at the top of this agenda except that comments will be accepted during the public hearing until the hearing is closed.

REGULAR SESSION - 2 PM

1. CALL TO ORDER AND ROLL CALL
Mayor Oscar Ortiz
Mayor Pro Tem Lupe Ramos Amith
Councilmember Glenn Miller
Councilmember Elaine Holmes
Councilmember Waymond Fermon

2. PLEDGE OF ALLEGIANCE

3. ACTION ITEMS

3.1 Award and Issuance of City of Indio Cannabis Storefront Retail Business Program Permits
Staff Report - Award and Issuance of City of Indio Cannabis Storefront Retail Business Program Permits - Pdf
4 - 205

4. PUBLIC COMMENTS FOR ITEMS NOT ON THE AGENDA
This is the time set aside for public comment for items not on the agenda. Public comments may be provided in the manner prescribed on the first page of this agenda.

5. ADJOURN
NEXT COUNCIL / IWA MEETING: AUGUST 16, 2023
Agenda packets are available on the city’s website at www.indio.org. Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available in City Clerk's Office at 100 Civic Center Mall, Indio, during normal City business hours and during the meeting.

PUBLIC NOTICE

It is the intention of the City of Indio to comply with the Americans with Disabilities Act (ADA) in all respects. If, as an attendee or a participant at this meeting, you will need special assistance beyond what is normally provided, the City of Indio will attempt to accommodate you in every reasonable manner. Please contact the City Clerk's Office at (760) 391-4007 or via email at [email protected].

For individuals with hearing impairments, please contact the City Clerk’s Office.

Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting. (28 CFR 35. 102-35. 104 ADA Title II)

RULES OF DECORUM

To help conduct the business of the City Council in an orderly fashion, the City Council has adopted rules pertaining to decorum and order, as provided for in Ordinance No. 1205. The City Council will strictly enforce these rules in order to allow full expression of ideas and opinions by councilmembers, staff and the public.

Generally, the City's rules of decorum prohibit comments or actions which willfully disrupt the meeting. All remarks and questions shall be addressed to the Council as a whole and not to any particular member. No individual Councilmember or member of the City staff shall be questioned without first obtaining permission from the

Presiding Officer. The City Council asks that all persons - including councilmembers, staff and the public - act and speak respectfully.

COMMUNICATION AND ELECTRONIC DEVICES
To minimize distractions, please be sure all personal communication and electronic devices are turned off or on silent mode.

DECLARATION OF POSTING

I, Sabdi Sanchez, City Clerk Administrator of the City of Indio, California, do hereby declare that the foregoing agenda was posted on July 23, 2023, at least twenty-four (24) hours prior to the meeting per Government Code 54954.2, at the following locations:

City of Indio Council Chamber, 150 Civic Center Mall, Indio, CA 92201 City of Indio website www.indio.org

Sabdi Sanchez

SABDI SANCHEZ, CMC

CITY CLERK ADMINISTRATOR

City of Indio
City Council
July 26, 2023

STAFF REPORT

To: City Council
From: Bryan H. Montgomery, City Manager
Prepared by: Bryan H. Montgomery, City Manager
Subject: Award and Issuance of City of Indio Cannabis Storefront Retail Business Program Permits

RECOMMENDATION:

Approve Shyrne Indio, LLC dba Stiiizy, Culture CC Indio dba Culture Cannabis Club, Indio West Coast Retail, LLC dba West Coast Cannabis Club, Indio Responsible & Compliant, LLC dba Embarc Indio and OTC Indio, LLC for the award and issuance of a City of Indio Cannabis Storefront Retail Business Program Permit

SUMMARY:

City Manager’s recommendations for issuance and award of the City’s Cannabis Storefront Retail Business Program Permits

BACKGROUND INFORMATION:

For over 18 months, the City Council, Planning Commission, City staff and interested parties have engaged in a methodical and thoughtful process to develop regulations, processes and procedures for the operation of Cannabis Storefront Retail Business in the City. These efforts have all been conducted in accordance with the City Council’s expectations and direction s to ensure that these businesses contribute positively to the City’s local economy as well as maintain the City’s high quality of life.

On June 27, 2017, the Medical and Adult Use Cannabis Regulation and Safety Act (MAUCRSA) was signed into law, which provides a comprehensive regulatory framework for licensing, control, and taxation of medical and adult-use cannabis-related businesses in California.

On December 6, 2017, the City Council adopted Ordinance No. 1726 establishing Sections 159.565 through 159.568 of the Indio Municipal Code prohibiting commercial cannabis activity in the City.

On November 17, 2021, the City Manager conducted a study session with the City Council to discuss and receive possible direction for cannabis regulations within the City of Indio. At the end of the discussion, the City Council gave the City Manager direction to proceed with the development of cannabis regulations for future Council review and consideration.

In December 2021, the City Manager hired HdL Companies to assist the City in the development of cannabis related regulations. HdL Companies has a Cannabis Services team that has extensive AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 4 of 205 experience on regulation, compliance, policy development, taxation, fiscal analysis and audit issues for local governments pertaining to cannabis.

On March 2, 2022, City staff and HdL staff conducted a study session with the City Council on the staff produced draft cannabis regulatory ordinance. At the end of the study session, the Council directed staff to proceed forward wi th finalizing the ordinance and preparing all other required cannabis related policies for Council consideration.

On April 27, 2022, the Indio Planning Commission approved Resolution No. 2023 recommending to the City Council amendments to Chapter 159 to allow Cannabis Storefront Retailer and Cannabis Non-Storefront Retailer Businesses in certain parts of the City.

On May 18, 2022, the City Council adopted Ordinance No. 1779 amending Chapter 159 (zoning regulations) of the Indio Municipal Code to allow Cannabis Storefront Retailer and Cannabis Non - Storefront Retailer Businesses in commercial land use districts except for the neighborhood commercial zone, mixed use land use districts and on properties regulated by a specific plan or project master plan that permit commercial land uses excluding any properties designated as neighborhood commercial and amending the subchapter entitled Cannabis Activity (159.565). Also, on May 18, 2022, the City Council adopted Ordinance No. 1780 adding a new Chapter 123 ent itled cannabis business activities to Title XI, Business Regulations, of the Indio Municipal Code to regulate commercial cannabis uses in the city.

On July 20, 2022, the City Council approved Resolution No. 10313 approving the number of Cannabis Storefront Retail Business Program Permits to be issued in the City, which is currently limited to five citywide. Also, the City Council approved at this same meeting Resolution No. 10314 establishing Application Procedures and Review Criteria for the processing of Cannabis Storefront Retail Business Program Permits. Further, the City Council at the July 20, 2023 meeting discussed the proposed fee schedule for the City’s Cannabis Storefront Retail Business Program

On August 9, 2022, City staff held an information meeting regarding the City’s Cannabis Storefront Retail Business Program for interested parties facilitated by City staff and HdL staff.

From August 10, 2022 to September 30, 2022, interested parties wer e able to apply for a zoning verification letter from the Community Development Department that was required in order to have a complete application. (The zoning verification letters advised applicants if the sites they were intending to propose were eligible for cannabis retail).

On August 17, 2022, the City Council approved Resolution No. 10315 establishing the City’s Cannabis Fee Schedule, with an application fee of $10,856.00.

During the month of August 2022, City staff and HdL prepared the following application documents:

• Indio Application Procedures and Guidelines
• Cannabis Business Permit Application
• Financial Responsibility and Indemnification Agreement • Property Owner Consent Landlord Affidavit
• Cannabis Business Owner Background Check Application

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 5 of 205 On August 31, 2022, the City launched the Cannabis webpage on the City’s website to provide access to the City’s online portal system for applications for C annabis Storefront Retail Business Program permits and to obtain information on the City’s cannabis program including policy documents.

Between September 1, 2022 and October 6, 2022, interested applicants were able to submit applications for Cannabis St orefront Retail Business Program permits via the online portal on the City’s Cannabis webpage.

The City received a total of 13 applications. Following the close of the application period on October 6, 2022, the submitted applications were transferred by City staff to HdL to conduct application completeness reviews that is referred to as Phase 1 of the application process. This application completeness review was completed on November 7, 2022 and all 13 applications were deemed eligible to advance to the Phase II Application Evaluation and Review process.

On September 21, 2022, the City Council approved a Professional Services Agreement in a time and materials not to exceed amount of $147,400 with HdL Companies for the provision of licensing assistance services for Cannabis Storefront Retail Business Program Permits.

On December 2, 2022, the City Council approved Resolution No. 10337, appointing G. Ross Trindle III of Aleshire & Wynder LLP as Hearing Officer Pursuant to Chapter 123 (Cannabis Business Activities) of the Indio Municipal Code and authorizing the City Manager to execute an Agreement with Aleshire & Wynder LLP for Hearing Officer Services.

On January 4, 2023, the City issued written notice to all 13 applicants notifying them that each had successfully completed Phase II of the commercial cannabis business application process and were being invited to participate in the Phase III (Application Review) process. This notice further specified that each application was reviewed and scored using a merit-based system and that scores would be available for review on the City’s Cannabis webpage beginning January 4, 2023. Finally, the notice specified t he appeal opportunity if any of the 13 applicants wished to appeal the Phase II results pertaining to their specific application. The Phase II results are provided below:

Table 1: Phase II Evaluation Results

On January 11, 2023, the City notified all 13 applicants of the opportunity to participate in the Phase III interviews at a pre-determined date and time on February 1 or 2 or 3, 2023.

The Phase III interview process was designed to be merit -based meaning that the scoring for this phase was independent from the Phase II scoring results and the results of the two phases were separate and not intended to be combined at the conclusion of the Phase III process. As noted in the City’s published Application Procedures and Guidelines, a Staff Selection Committee designated by the City Manager would tabulate the scores of all applicants from Phase III to create a preliminary ranking which will form the basis for determining who will be invited to participate in Pha se IV (City Council and Final Decision) process. As previously noted, the ranking for Phase III would only be based upon the scores received through the Phase III merit-based interview process.

The applicants were interviewed by a committee made up of the City Manager, Chief of Police, Indio Police Department Administrative Services Director, City Clerk Administrator and Community Development Director. HdL representatives assisted City staff in conducting the interviews. Following the completion of the interviews, each owner was provided a written attestation template document and requested to attestthatthestatements,answers, responses, and anyotherinformation provided

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 6 of 205 during the in-personleading and did not constitute a fraudulent statement or omission of material fact.

All attestations were due on February 17, 2023.

On March 10, 2023, the City issued a written notice to all 13 applicants of the results of the Phase III interview process. Each applicant was notified of their total Phase III scoring result, whether they had or had not been selected to proceed to the Phase IV (City Council Interviews and Final Decision) process and the appeal opportunity specified in Chapter 123 of the Indio Municipal Code. The Phase III results are provided below:

Table 2: Phase III Evaluation Results

The Phase III results written notices cited Sections 123.22, 123.23, 123.24 and 123.25 of the Indio Municipal Code that specify the appeal processes and procedures to appeal the Phase III results. The written notices a lso specified that an appeal fee of $3,632.58 must be paid at the time of appeal submittal pursuant to the Cannabis Fee Schedule established by the City Council’s approval of Resolution No. 101315 on August 17, 2022.

The City received a total of four (4) appeals for the Phase III results. The appellants were CNC Ventures, LLC dba SPARC, Indio CC, LLC dba Sensindio, Everest GJN, LLC and Reefer Madness, LLC. The appeal hearing for CNC Ventures, LLC dba SPARC was conducted on April 18, 2023. The Appeal Hearing Officer issued a written decision on May 11, 2023 denying the appeal of the Phase III results by CNC Ventures, LLC dba SPARC. The appeal hearings for Indio CC, LLC dba Sensindio, Everest GJN, LLC and Reefer Madness, LLC were all held on May 24, 2023. Th e Appeal Hearing Officer issued written decisions on for all 3 appeals on June 14, 2023 denying each appeal. The Appeal Hearing Officer found that all 3 appeals had not been filed in a timely manner pursuant to applicable provisions of Chapter 123 of the I ndio Municipal Code. On June 27, 2023, the City submitted stipulated orders to the Appeal Hearing Officer signed by the City Manager and the legal signatory for Indio CC, LLC dba Sensindio, Everest GJN, LLC and Reefer Madness, LLC. The stipulated orders stated the City’s and appellants’ disagreements with the Administrative Appeal and Hearing Officer Opinion. City staff and the appellants agreed that the issue of the timeliness of Appellant’s submission of their Appeals Notice should be reconsidered. City s taff and the appellants asserted that the Hearing Officer misinterpreted Indio Municipal Code section 123.23(E) and should not have based his Administrative Ruling upon that interpretation. Based on this agreement, the City and the appellants jointly requested that the AppealHearing Officer reconsider the appeal in this case and issue a new opinion that does not address the issue of timeliness. The Appeal Hearing Officer accepted all 3 stipulated orders and re-issued his decisions for all 3 appeals on June 30, 2023 denying all the appeals.

The City’s published Application Procedure Guidelines And Review Criteria for A Commercial Cannabis Business Permit (Storefront Retail Applications) specify for the Phase IV (City Council Interviews and Final Decision) that upon the completion of Phase III, the City Manager will present to the City Council the top applicants from the Phase III process. The City Council will interview top applicants and make a final determination as to which Applicant(s) will be awarded a Commercial Cannabis Business (CCB) Permit. Further, it notes that after the City Council has made a determination as to who if any applicants will be awarded a CCB Permit and as a condition of issuance of the regulatory permit, the operator of each cannab is facility shall enter into a Community Benefit Agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of Chapter 123.36 (C), including, but not limited to community benefits such as public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare. In addition, any community benefits that a commercial cannabis

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 7 of 205 business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the City of Indio’s approval, if and when a Community Benefit Agreement is executed. Finally, it notes that upon successfully negotiations in this phase of the process the applicants will then be authorized to proceed to apply for any required land use permits and a business license and related approvals.

In summary, the City Manager’s Office recommends that the City Council approve Shyrne Indio, LLC dba Stiiizy, Culture CC Indio dba Culture Cannabis Club, Indio West Coast Retail, LLC dba West Coast Cannabis Club, Indio Responsible & Compliant, LLC dba Embarc Indio and OTC Indio, LLC for the award and issuance of a City of Indio Cannabis Storefront Retail Business Program Permit. These businesses were the top scorers in the Phase III process. Following the City Council decision, City staff will work with each party to develop a Community Benefit Agreement that will be presented to the City Council at a future date for review and approval consideration.

ATTACHMENTS:

Attachment1_Ordinance No. 1779
Attachment2_Ordinance No. 1780
Attachment3_Resolution No. 10313
Attachment4_Resolution No. 10314
Attachment5_Resolution No 10315
Attachment6_CNCVentureLLCdbaSPARC_PhaseIIIResultLetter_Mailed Attachment7_CultureCCIndioIncdbaCultureCannabisClub_PhaseIIIResultLetter_Mailed Attachment8_EverestGJNLLC_PhaseIIIResultLetter_Mailed
Attachment9_FargoFarmsLLC_PhaseIIIResultLetter_Mailed
Attachment10_IndioCCLLCdbaSensindio_PhaseIIIResultLetter_Mailed Attachment11_IndioGreeneryLLC_PhaseIIIResultsLetter_Mailed Attachment12_IndioResponsibleCompliantLLCdbaEmbarcIndio_PhaseIIIResultLetter_Mailed Attachment13_IndioWestCoastRetailLLCdbaWestCoastCannabisClub_PhaseIIIResultLetter_ Mailed
Attachment14_NebrinaIndioLLC_PhaseIIIResultLetter_Mailed Attachment15_OTCIndioLLC_PhaseIIIResultLetter_Mailed
Attachment16_RDxCatalystIndioLLC_PhaseIIIResultsLetter_Mailed Attachment17_ReeferMadnessLLC_PhaseIIIResultLetter_Mailed Attachment18_ShryneIndioLLC_PhaseIIIResultLetter_Mailed Attachment19_May112023_CNC, LLC dba SPARC_Hearing Officer Decision and Opinion Attachment20_June142023_Indio CC LLC dba SensIndio_Hearing Officer Decision and Opinion
Attachment21_June142023_Reefer MadnessLLC_Hearing Officer Decision and Opinion Attachment22_June142023_Everest GJNLLC_Hearing Officer Decision and Opinion Attachment23_June 272023_StipulatedOrde_ Reefer Madness Attachment24_June272023_StipulatedOrder_EverestGJNLLC
Attachment25_June272023_StipulatedOrder_Indio CC, LLC
Attachment26_June302023_Everest GJNLLC_Amended Hearing Officer Decision and Opinion
Attachment27_June302023IndioCCLLCdbaSensIndio_Amended Hearing Officer Decision and Opinion

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 8 of 205 Attachment28_June302023_Reefer Madness, LLC_Amended Hearing Officer Decision and Opinion
Attachment29_ProposedLocationMap_FiveCannabisStorefrontRetailApplicants

APPROVAL(S):

Jillian Martins, Assistant City Attorney Approved - 21 Jul 2023 Bryan H. Montgomery, City Manager Approved - 21 Jul 2023

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 9 of 205 ORDINANCENO.1779ANORDINANCEOFTHECITYOFINDIOAMENDINGCHAPTER159(ZONINGREGULATIONS)OFTHEINDIOMUNICIPALCODETOALLOWCANNABISSTOREFRONTRETAILERANDCANNABISNON-STOREFRONTRETAILERBUSINESSESINCOMMERCIALLANDUSEDISTRICTSEXCEPTFORTHENEIGHBORHOODCOMMERCIALZONE,MIXEDUSELANDUSEDISTRICTSANDONPROPERTIESREGULATEDBYASPECIFICPLANORPROJECTMASTERPLANTHATPERMITCOMMERCIALLANDUSESEXCLUDINGANYPROPERTIESDESIGNATEDASNEIGHBORHOODCOMMERCIAL;AMENDINGTHESUBCHAPTERENTITLEDCANNABISACTIVITY(159.565ET.SEQ.);ANDMAKINGADETERMINATIONTHATTHEORDINANCEISEXEMPTFROMREVIEWUNDERCEQAPURSUANTTOCEQAGUIDELINESSECTION15061(B)(3)THECITYCOUNCILOFTHECITYOFINDIO,CALIFORNIA,DOESHEREBYORDAINASFOLLOWS:Section1.Findings.PursuanttoIndioMunicipalCodeSection159.875,theCityCounciltheCityCouncilherebydeterminesandmakesthefollowingfinding:theproposedchangetothezoningcodesetforthinthisOrdinanceisconsistentwiththeobjectivesofTitleXV(LandUsage)oftheIndioMunicipalCode.Inaddition,theproposedzoningcodeamendmentisconsistentwiththeCityofIndio2040GeneralPlanLandUseElementPolicyLU-2.2(BalancedLandUses),EconomicDevelopmentPolicyED—6.1(NewRetailers)andEconomicDevelopmentPolicyED—6.2(RetailDevelopment).Section2.Chapter159(ZoningRegulations)ofTitleXV(LandUsage)oftheIndioMunicipalCodeisherebyamendedbyamendingthetitleofthesubchaptercurrentlyentitled“CannabisActivity”andrenamingsaidsubchapteras“CommercialCannabis.”Section3.Section159.565ofChapter159(ZoningRegulations)ofTitleXV(LandUsage)oftheIndioMunicipalCodeisherebyamendedinitsentiretytoreadasfollows:“§159.565.PermittedCommercialCannabisUses.A.Definitions.ThetechnicaltermsandphrasesusedinSections159.565and159.566aredefinedinSection123.06ofChapter123(CannabisBusinessActivities)ofTitleXI(BusinessRegulations)oftheIndioMunicipalCode.B.UsesPermitted.CannabisStorefrontRetailerandCannabisNon-StorefrontRetailerbusinessesarepermittedlandusesinthefollowinglandusedistrictssubjecttothelocationrequirementssetforthherein:1.AllcommerciallandusedistrictsexceptonpropertieszonedNeighborhoodCommercial.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 10 of 205 LocationReguirement
RegulatogyPermitReguired

2.AllMixed-Uselandusedistricts.3.OnpropertiesregulatedbyaSpecificPlanorProjectMasterPlanthatpermitcommerciallandusesexceptforpropertieszonedordesignatedasNeighborhoodCommercialwithintheapplicableSpecificPlanorProjectMasterPlan.Allothercommercialcannabisactivitiesareexpresslyprohibited.C. .ACannabisStorefrontRetailerandCannabisNon-StorefrontRetailershallbenocloserthansixhundred(600)feetfromanyzonedparcelintheCitydesignatedasasensitiveusepursuanttolndioMunicipalCodeSection123.32(B)(2)or250feetfromanychurchlocatedinaresidentialzone,thatisinexistenceatthetimetheCannabisBusinessPermitisissued.ThedistanceshallbedeterminedbythehorizontaldistancemeasuredinastraightlinefromtheclosestpropertylineofthesensitiveusetotheclosestpropertylineofthelotonwhichtheCannabisBusinessistobelocated,withoutregardtointerveningstructures.D. .InordertooperateintheareassetforthinparagraphB,aCannabisStorefrontRetailerandaCannabisNon-StorefrontRetailermustobtainandmaintainatalltimesthefollowingpermitsandlicenses:avalidCannabisBusinessPermitasrequiredbyChapter123ofthelndioMunicipalCode;avalidbusinesslicensefromtheCity;andavalidStateofCaliforniaSe|ler’sPermit.”Section4.Section159.566ofChapter159(ZoningRegulations)ofTitleXV(LandUsage)ofthelndioMunicipalCodeisherebyamendedinitsentiretytoreadasfollows:“§159.566.PersonalIndoorCultivation.A.NotwithstandingSection159.565,engagingintheindoorcultivationofsixorfewerlivecannabisplantswithinasingleprivateresidenceorinsideanaccessorystructurelocateduponthegroundsofaprivateresidencethatisafullyenclosedandsecurestructure,totheextentsuchcultivationisauthorizedbyCal.HealthandSafetyCode,§§11362.1and11362.2,asthesamemaybeamendedfromtimetotime,isherebypermitted.Theoutdoorcultivation,however,ofsixorfewerlivecannabisplantsuponthegroundsofaprivateresidenceisprohibited.”B.ForpurposesofthisSection159.566,thefollowingdefinitionsshallapply:“Cultivation”shallmeananyactivityinvolvingtheplanting,growing,harvesting,drying,curing,gradingortrimmingofcannabis.“Fullyenclosedandsecurestructure”shallmeanaspacewithinabuilding,greenhouseorotherstructurewhichhasacompletesolidroofenclosuresupportedbyconnectingwallsextendingfromthegroundtotheroof,whichissecureagainstunauthorizedentry,providescompletevisualscreening,andwhichisaccessibleonlythroughoneormorelockabledoorsandinaccessibletominors.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 11 of 205 Section6.

Section7.
“lndoor”shallmeanwithinafullyenclosedandsecurestructure“Outdoor”shallmeananylocationthatisnotwithinafullyenclosedandsecurestructure.”“Privateresidence”shallmeanahouse,anapartmentunit,acondominiumunit,amobilehomeorothersimilardwellingthatislawfullyusedasaresidence.”Section5.Section159.567andSection159.568areherebyrepealedintheirentirety.TheCityCouncil,throughanexerciseofitsindependentjudgement,findsanddeterminesthatthisOrdinanceisexemptfromtheCaliforniaEnvironmentalQualityAct(CEQA)pursuanttoSection15061(b)(3)oftheCEQAGuidelines.AdoptionofthisOrdinanceiscoveredbythecommonsenseexemptioninthatCEQAappliesonlytoprojectswhichhavethepotentialforcausingasignificanteffectontheenvironment.Whereitcanbeseenwithcertaintythatthereisnopossibilitythattheactivityinquestionmayhaveasignificanteffectontheenvironment,theactivityisnotsubjecttoCEQA.Here,theOrdinanceallowscannabisretailersasapermittedusesincommercialareasoftheCityincludingmixedusezonesandinarearegulatedbyaspecificplanorprojectmasterplanthatauthorizescommerciallanduses.Theseareasalreadyallowsforusesakintocannabisretailerssuchasgeneralretailoutletsanddrugstoresandthelike.Accordingly,theCityCouncildirectsCitystafftofileaNoticeofExemption.Severability.Ifanysection,subsection,subdivision,paragraph,sentence,clauseorphraseofthisordinanceoritsapplicationtoanypersonorcircumstance,isforanyreasonheldtobeinvalidorunenforceablebyacourtofcompetentjurisdiction,suchinvalidityorunenforceabilityshallnotaffectthevalidityorenforceabilityoftheremainingsections,subsections,subdivisions,paragraphs,sentences,clausesorphrasesofthisordinance,oritsapplicationtoanyotherpersonorcircumstance.TheCityCouncildeclaresthatitwouldhaveadoptedeachsection,subsection,subdivision,paragraph,sentence,clause,phrasehereof,irrespectiveofthefactthatanyoneormoresections,subsections,subdivisions,paragraphs,sentences,clausesorphraseshereofbedeclaredinvalidorunenforceable.Section8.TheCityClerkshallcertifytotheadoptionofthisOrdinanceandshallcausethesametobepublishedinthemannerprescribedbylaw.IIIIIIIIIIII//I

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 12 of 205 H NA
DQ
A VMOD
PASSED,APPROVEDANDADOPTEDthis1stJun2022
W FERMONMAYOATTEST:

CYNTHIACMCCITYCLERK

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 13 of 205

CERTIFICATION
I,SabdiSanchez,CityClerkAdministratoroftheCityoflndio,California,herebycertifythatOrdinanceNo.1779wasdulyandregularlyadoptedatameetingoftheCityCouncilofsaidCityatitsmeetingheldonthe1stdayofJune2022bythefollowingvote,towit:

AyesMiller,MayorProTemOrtizandMayorFermonNoesHolmesandRamosAmithINWITNESSWHEREOF,IhavehereuntosetmyhandandaffixedtheofficialsealoftheCityoflndio,California,this1stdayofJune2022.

SABDICityClerkAdmiCityoflndio OF

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 14 of 205

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 15 of 205 SECTION2.

ORDINANCENO.1780ANORDINANCEOFTHECITYOFINDIOADDINGANEWCHAPTER123ENTITLEDCANNABISBUSINESSACTIVITIESTOTITLEXI,BUSINESSREGULATIONS,OFTHEINDIOMUNICIPALCODETOREGULATECOMMERCIALCANNABISUSESINTHECITYTHECITYCOUNCILOFTHECITYOFINDIODOESORDAINASFOLLOWS:SECTION1.Chapter123(CannabisActivities)ofTitleXl(BusinessRegulations)oftheIndioMunicipalCodeisherebyrepealedinitsentirety.AnewChapter123entitled“CannabisBusinessActivities”isherebyaddedtoTitleXl(BusinessRegulations)oftheIndioMunicipalCodetoreadasfollows:
123.01123.02123.03123.04123.05123.06123.07123.08123.09123.10123.11123.12123.13123.14123.15123.16123.17123.18123.19123.20 “CHAPTER123CANNABISBUSINESSACTIVITIES
TitlePurposeandIntentLegalAuthorityCommercialCannabisActivitiesProhibitedUnlessSpecificallyAuthorizedbythisChapterCompliancewithStateandLocalLawsandRegulationsDefinitionsCannabisBusinessPermitRequiredtoEngageinCannabisBusinessActivityCannabisOwnersCriminalBackgroundPersonsProhibitedfromHoldingaPermitMaximumNumberandTypeofAuthorizedCannabisBusinessesPermittedCommunityBenefitsCity’sReservationofRightsProcedureGuidelinesandReviewCriteriatoEvaluateCannabisBusinessPermitApplicationsExerciseofaCannabisBusinessPermitAbandonmentofPermitReapplyingforaCannabisBusinessPermitTermofaCannabisBusinessPermitRenewalofCannabisBusinessPermitsSuspension,Revocation,orModificationofPermitsEffectofStateLicenseSuspension

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 16 of 205 123.21EffectofStateLicenseRevocationorTermination123.22Appeals123.23AppealsandContentsofAppeal123.24AppointmentofHearingOfficerorBody123.25AppealHearingProcessandProceedings123.26Changeinlocation;UpdatedApplicationForm123.27TransferofCannabisBusinessPermit123.28CityBusinessLicense123.29BuildingPermitsandInspection123.30AuthorizationfromtheCommunityDevelopmentDirector123.31RighttoOccupyandtoUseProperty123.32LocationandDesignofCannabisBusinesses123.33LimitationsonCity’sLiability123.34RecordsandRecordkeeping123.35SecurityMeasures123.36FeesandCharges123.37GeneralOperatingRequirements123.38OperatingRequirementsforStoreFrontRetailFacilities123.39OperatingRequirementsforNon-StoreFrontRetail(Delivery-Only)Facilities.123.40StoreFrontandNon-StoreFrontRetailDeliveryRequirements.123.41OperatingRequirementsforOut-of-CityDeliveryServices123.42PermissibleDeliveryLocationsandCustomers123.43PromulgationofRegulations,StandardsandOtherLegalDuties123.44CommunityRelations123.45FeesDeemedDebttotheCity123.46PermitHolderResponsibleforViolations123.47InspectionandEnforcement123.48ViolationsDeclaredaPublicNuisance123.49NoVestedRights123.01Title.ThisChaptershallbeknownastheCannabisActivitiesOrdinanceoftheCityoflndio123.02PurposeandIntent.ItisthepurposeandintentofthisChaptertoimplementtheprovisionsoftheMedicinalandAdultUseCannabisRegulationandSafetyAct(“MAUCRSA”)toaccommodatetheneedsofmedically-illpersonsinneedofcannabisformedicinalpurposesasrecommendedbytheirhealthcareprovider(s),andtoprovideaccesstosame.ItisalsothepurposeandintentofthisChaptertoprovideaccesstoadult-usecannabisforpersonsaged21andoverasauthorizedbytheMAUCRSA,whileimposingsensibleregulationsontheuseoflandtoprotecttheCity’sresidents,neighborhoods,andbusinessesfromdisproportionatelynegativeimpacts.ItisthepurposeandintentofthisChaptertoregulatethecommercialsaleanddeliveryofcannabisandcannabisproductsinaresponsible

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 17 of 205 mannertoprotectthehealth,safety,andwelfareoftheresidentsoftheCityandtoenforcerulesandregulationsconsistentwithstatelaw.123.03LegalAuthority.ThisChapterisadoptedpursuanttotheauthoritygrantedtotheCitybySection7ofArticleXIoftheCaliforniaConstitution,Title4,Division19oftheCaliforniaCodeofRegulations,andtheprovisionsoftheMAUCRSA.123.04CommercialCannabisActivitiesProhibitedUnlessSpecificallyAuthorizedbythisChapter.ExceptasspecificallyauthorizedbythisChapter,thecommercialcultivation,manufacture,processing,storing,laboratorytesting,labeling,sale,delivery,distribution,ortransportation,ofcannabisorcannabisproductsisexpresslyprohibitedintheCity.123.05CompliancewithStateandLocalLawsandRegulations.Itistheresponsibilityoftheownersand/oroperatorsofanyCommercialCannabisBusinesswithintheCitylimitstoensurethattheyoperateinamannercompliantwiththisChapter,allapplicablestateandlocallaws,andanyregulationspromulgatedthereunder,includingbutnotlimitedtotheMAUCRSA.123.06Definitions.(A)“Applicant”meansapersonorentitythatsubmitsanapplicationforaCannabisBusinessPermitunderthisChapter.(B)“Cannabis”shallhavethesamemeaningasthatappearinginBusinessandProfessionsCodeSection26001(e).(C)“CannabisProducts”shallhavethesamemeaningasthatappearinginBusinessandProfessionsCodeSection26001(h).(D)“City”shallmeantheCityoflndio,California(E)“CityManager”shallmeantheCityoflndioCityManagerorhisorherdesignee.(F)"CommercialCannabisBusiness”or“CannabisBusiness”meansanybusinessoroperationwhichengagesinmedicinaloradult-usecommercialcannabisactivityauthorizedbythisChapter.(G)“CannabisBusinessPermit”meansaregulatorypermitissuedbytheCitypursuanttothisChapter,toaCommercialCannabisBusinessandisrequiredbeforeanycommercialcannabisactivitymaybeconductedintheCity.Theinitialpermitandannualrenewalofapermitismadeexpresslycontingentuponthebusiness’

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(|)
(J)
(K)
(L)
(M)
(N)
ongoingcompliancewithalloftherequirementsofthisChapterandanyregulationsadoptedbytheCitygoverningthecommercialcannabisactivityatissue.“CannabisBusinessPermittee”or“Permittee”meansapersonorentitythathasreceivedaCannabisBusinessPermitfromtheCityasauthorizedunderthisChapterDeliveryshallhavethesamemeaningasthatappearinginBusinessandProfessionsCodeSection26001(0).“Dispensing”meansanyactivityinvolvingtheretailsaleofcannabisorcannabisproductsfromaretailer."Limited-accessarea”meansanareainwhichcannabisisstoredorheldandisonlyaccessibletoapermitteeandauthorizedpersonnel.“Medicinalcannabis”or“Medicinalcannabisproduct"shallhavethesamemeaningasthatappearinginBusinessandProfessionsCodeSection26001(ai).“Non—Storefrontretailer”isasubsetof“Retailer”andisapermittedretailbusinessthatisclosedtothepublicandprovidesproducttocustomerssolelybymeansofadeliveryservicewhichtheretailerownsandcontrols.“Owner"meansanyofthefollowing(1)Apersonwithanaggregateownershipinterestof10percentormoreintheCommercialCannabisBusiness,unlesstheinterestissolelyasecurity,lienorencumbrance.(2)Anindividualwhomanages,directs,orcontrolstheoperationsoftheCommercialCannabisBusiness,includingbutnotlimitedto:(a)(b)Amemberoftheboardofdirectorsofanonprofit.AgeneralpartnerofaCommercialCannabisBusinessthatisorganizedasapartnership.Anon-membermanagerormanagerofaCommercialCannabisBusinessthatisorganizedasalimitedliabilitycompany.Thetrustee(s)andallpersonswhohavecontrolofthetrustand/ortheCommercialCannabisBusinessthatisheldintrust.AnindividualwiththeauthoritytoprovidestrategicdirectionandoversightfortheoveralloperationsoftheCommercialCannabisBusiness,suchasthechiefexecutiveofficer,presidentortheirequivalent,oranofficer,director,vicepresident,generalmanagerortheirequivalent.Anindividualwiththeauthoritytoexecutecontractsonbehalfofthe(f)

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(P)
(Q)
(R)
(S)
(T)
(U)
CommercialCannabisBusiness.WhenanentityisanownerinaCommercialCannabisBusiness,allentitiesandindividualswithafinancialinterestintheentityshallbedisclosedtotheCityandmaybeconsideredownersoftheCommercialCannabisBusiness.Forexample,thisincludesallentitiesinamulti-layerbusinessstructure,aswellasthechiefexecutiveofficer,membersoftheboardofdirectors,partners,trusteesandallpersonswhohavecontrolofatrustandmanagingmembersornon—membermanagersoftheentity.Eachentitydisclosedashavingafinancialinterestmustdisclosetheidentitiesofpersonsholdingfinancialinterestsuntilonlyindividualsremain. (9)
“Package”meansanycontainerorreceptacleusedforholdingcannabisorcannabisproducts.“Person”shallmeananyindividual,firm,partnership,jointventure,association,corporation,limitedliabilitycompany,estate,trust,businesstrust,receiver,syndicate,oranyothergrouporcombinationactingasaunit.“Physician’srecommendation”shallhavethesamemeaningasthatappearinginBusinessandProfessionsCodeSection26001(ap).“Premises”allhavethesamemeaningasthatappearinginBusinessandProfessionsCodeSection26001(aq).“Retailer”or“StorefrontRetailer”shallhavethesamemeaningasthatcontainedinSection26070(a)(1)oftheCaliforniaBusinessandProfessionsCode.“Statelicense”meansapermitorlicenseissuedbytheStateofCalifornia,oroneofitsdepartmentsordivisions,undertheMAUCRSAandanysubsequentrelatedStateofCalifornialegislation,toengageincannabisactivity.AstatelicensealonewillnotauthorizetheholdertooperateaCannabisBusiness,asstatelawalsorequiresalicenseorotherauthorizationissuedbyalocaljurisdiction.“Youthcenter”meansany:(1)Publicorprivatefacilitythatisprimarilyusedtohostrecreationorsocialactivitiesforminors,including,butnotlimitedto:(a)(c)Privateyouthmembershiporganizationsorclubs,Socialserviceteenageclubfacilities,Videoarcadeswhere10ormorevideogamesorgamemachinesordevicesareoperated,andwhereminorsarelegallypermittedtoconductbusiness,orSimilaramusementparkfacilities,andMustbeusedforyouthactivitiesatleast60percentofthetimeina

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 20 of 205 calendaryear.(2)Itshallalsoincludeapark,playgroundorrecreationalareaspecificallydesignedtobeusedbychildrenwhichhasplayequipmentinstalled,includingpublicgroundsdesignedforathleticactivitiessuchasbaseball,softball,soccer,orbasketballoranysimilarfacilitylocatedonapublicorprivateschoolgrounds,oronCity,county,orstateparks.(3)Thisdefinitionshallnotincludeanyprivatemartialarts,yoga,ballet,music,artstudioorsimilarstudioofthisnaturenorshallitincludeanyprivategym,athletictrainingfacility,pizzaparlor,dentistoffice,doctor’sofficeprimarilyservingchildrenoralocationwhichisprimarilyutilizedasanadministrativeofficeorfacilityforyouthprogramsororganizations.123.07CannabisBusinessPermitRequiredtoEngageinCannabisBusinessActivity.NopersonmayengageinanyCannabisBusinesswithintheCity,includingcultivation,manufacture,processing,laboratorytesting,distributing,dispensing,orsaleofcannabisoracannabisproduct,unlessthepersonmeetsallofthefollowingrequirements:(A)PossessavalidCannabisBusinessPermitfromtheCity;(B)PossessavalidbusinesslicensefromtheCity;(C)PossessavalidStateofCaliforniaSe|ler’sPermit;and(D)iscurrentlyincompliancewithallapplicablestateandlocallawsandregulationspertainingtotheCannabisBusinessandthecannabisactivities,includingthedutytoobtainanyrequiredstatelicenses.123.08CannabisOwnersCriminalBackground.(A)AnypersonwhoisanownerofaCannabisBusinessmustbelegallyauthorizedtodosounderapplicablestatelaw.(B)CannabisBusinessownersshallberequiredtosubmittoacriminalbackgroundcheckforthemselves.BusinessownersshallberequiredtocompleteacriminalbackgroundcheckpriortoissuanceortransferofaCannabisBusinessPermit.(C)TheCityshallconductcriminalbackgroundcheckswhichmust,ataminimum,identifythefollowing:(1)WhethertheownerhaseverbeenconvictedofaviolentfelonyasdefinedbyCaliforniaPenalCode667.5orequivalentoffenseinotherstates;

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(3)
(4)
(5)
(D)
Whethertheownerhaseverbeenconvictedofaseriousfelony,asdefinedbyCaliforniaPenalCode1192.7orequivalentoffenseinotherstates;Whethertheowneraseverbeenconvictedofafelonyforhiring,employing,orusingaminorintransporting,carrying,selling,givingaway,preparingforsale,orpeddling,anycontrolledsubstancetoaminor;orselling,offeringtosell,furnishing,offeringtofurnish,administering,orgivinganycontrolledsubstancetoaminor;WhethertheownerhaseverbeenconvictedofafelonyfordrugtraffickingwithenhancementspursuanttoSection11370.4or11379.8oftheHealthandSafetyCode;orWhethertheownerhaseverbeenconvictedofafelonyinvolvingfraud,deceit,orembeulement.EvidenceofaconvictionofanytheoffensesenumeratedinSection123.08(c)ofthisCodeshallbegroundsfordenialorrevocationofaCannabisBusinessPermit.123.09PersonsProhibitedfromHoldingaPermit.(A)ApersonisprohibitedfromholdingormaintainingaCannabisBusinessPermitifanyofthefollowingapply:(1) (2)
(3)
123.10
Theapplicanthasbeendeniedacannabislicenseorpermit,orhashadacannabislicenseorpermitsuspendedorrevokedbyanycity,county,cityandcountyoranyotherstatecannabislicensingauthority;Theapplicantwasnotifiedbythestate,county,orcitythatitwasconductingcannabisactivityinviolationofStatelaworCityordinances,codes,andrequirements,andfailedtocuretheviolationinatimelymanner;Evidencethattheapplicantisdelinquentinpaymentoffederal,state,orlocaltaxesand/orfees,andtooknostepstocurethedelinquencywhennotifiedbytheappropriateagencies;MaximumNumberandTypeofAuthorizedCannabisBusinessesPermitted.ThissectionisintendedtocreateamaximumnumberandtypesofCannabisBusinessesthatmaybeissuedpermitstooperateintheCity.(A)ThefollowingcannabislicensetypesareauthorizedtooperateintheCityoflndio.(1)CannabisStorefrontRetailer.

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(C)
(D)
(E)
(F)
123.11(A)
(B)
123.12
(2)CannabisNon-StorefrontRetailer.CannabislicensetypesnotidentifiedinSection123.10(A)areprohibitedfromobtainingaCannabisBusinessPermitintheCityoflndio.ThenumberofeachtypeofCannabisBusinessthatshallbepermittedtooperateintheCityshallbeestablishedbyresolutionbytheCityCouncil.NotwithstandingSection123.10(C),thetotalnumberofallowableCannabisStorefrontRetailpermitsestablishedbyCityCouncilresolutionshallbenomorethanone(1)permitforeveryfifteenthousand(15,000)residentsintheCityoflndio,andnolessthanone(1)permitforeverytwenty-fivethousand(25,000)residentsintheCityoflndio.ThepopulationoftheCityoflndioshallbebasedontheofficialcensuspopulationestimate,asperiodicallyupdatedbytheUSDepartmentofCommerce,CensusBureau.EachyearfollowingtheCity’sinitialawardofpermits,ifany,oratanytimeintheCityCouncil'sdiscretion,theCityCouncilmayreassessthenumberofCannabisBusinessPermitswhichareauthorizedforissuanceandmakeanychangesbyresolution.TheCityCouncil,atitssolediscretion,maydeterminethatthenumberand/ortypesofCannabisBusinessPermitsshouldremainthesameorbemodified.CommunityBenefits.TheapplicationProcedureGuidelinesandReviewCriteria,setforthinSection123.13ofthisChapter,shallincludeacomponentoncommunitybenefits.AnycommunitybenefitsthataCannabisBusinessagreestoprovideshallbeincorporatedintothetermsandconditionsunderwhichtheCannabisBusinesswilloperatewiththeCity'sapproval,ifandwhenaCannabisBusinessPermitisissued.SuchtermsandconditionsshallbeinadditiontotherequirementsofthisChapter.City’sReservationofRights.TheCityreservestherighttorejectanyorallapplicationsforaCannabisBusinessPermit.Priortopermitissuance,theCitymaymodify,postpone,orcancelanyrequestforapplications,atanytimewithoutliability,obligation,orcommitmenttoanyparty,firm,ororganization,totheextentpermittedunderCalifornialaw.PersonssubmittingapplicationsassumetheriskthatalloranypartoftheCannabisBusinessPermitprogram,oranyparticularcategoryofpermitpotentiallyauthorizedunderthisChapter,maybecancelledatanytimepriortopermitissuance.TheCityfurtherreservestherighttorequestandobtainadditionalinformationfromanycandidatesubmittinganapplication.Inadditionto

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Theapplicationwasreceivedafterthedesignatedtimeanddateofthedeadline.Theapplicationdidnotcontaintherequiredelements,exhibits,orwasnotorganizedintherequiredformat.Theapplicationwasconsiderednotfullyresponsivetotherequestforapermitapplication,i.e.wassubstantiallyincomplete.123.13ProcedureGuidelinesandReviewCriteriatoEvaluateCannabisBusinessPermitApplications.(A)Byresolution,theCityCouncilshalladoptProcedureGuidelinesandReview (B)
(C)
(D)
(E)
(F)
(G)
123.14
CriteriafortheCity’sevaluationofCannabisBusinesspermitapplicationsandsubsequentissuance.TheProcedureGuidelinesshallprovidetheprocessforsolicitingapplicationsincludingtimeframes,limitations,requirements,forms,andrulesforcompletingapplications.TheReviewCriteriashallincludedetailedinstructionsonthemethodologytobeusedtoevaluateapplicationsonapoint,orotherevaluationsystem,tiedtoparticularsetsofcriteria.TheReviewCriteriashallbeusedtodeterminewhichcandidateswillbeeligibletoproceedtothefinalselectionprocessasdeterminedbyCityCouncilresolution.TheCityManagershallbeauthorizedtoprepareanynecessaryformsandadoptanynecessaryrulestoimplementtheProcedureGuidelinesandReviewCriteria.Atthetimeoffiling,eachapplicantshallpayanapplicationfeeestablishedbyresolutionoftheCityCounciltocoverallcostsincurredbytheCityintheapplicationprocess.Forapplicantswithtenormoreemployees,theapplicantshallattestthattheapplicantwillenterintoalaborpeaceagreementasdefinedinBusinessandProfessionsCodeSection26001(y)andwillabidebythetermsoftheagreement,andtheapplicantshallprovideacopythereoftotheCity.Forapplicantsthathavenotyetenteredintoalaborpeaceagreement,theapplicantshallprovideanotarizedstatementindicatingthatwithin30-daysofcannabispermitfromtheCity,theapplicantwillenterintoandabidebythelaborpeaceagreement.ExerciseofaCannabisBusinessPermit.

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 24 of 205 (A)ACannabisBusinessPermitshallbeexercisedwithintwelve(12)monthsofthefinalselectionprocess,asdefinedbytheProcedureGuidelineandReviewCriteria.ACannabisBusinessPermitshallbeconsideredexercisedshallbewhenanyofthefollowingoccur:(1)ACertificateofOccupancyhasbeenissued,(2)Thepermitteduse(s)hascommencedonthesite,and(3)ACityBuildingPermitorGradingPermitissecured,andconstructionlawfullycommenced.(B)FailuretoexerciseaCannabisBusinessPermitwithinthetimeframeestablishedinSection123.14(A)shallresultindenialoftheapplication.(C)TheCityManager,inhis/hersolediscretion,mayextendthetimeframeestablishedinSection123.14(A),ifhe/shedeterminesthattheapplicanthasmadeagoodfaithefforttoexercisetheCannabisBusinessPermitwithinthedefinedtimeframe.123.15AbandonmentofPermit.IftheCannabisBusinesshasnotbeeninregularandcontinuousoperationintheprecedingfour(4)monthsatthepermittedlocation,theCannabisBusinessPermitshallbeconsideredabandoned,unlessmitigatingcircumstanceoccurwhichwasbeyondthecontrolofthepermitteeandanextensionhasbeenauthorizedbytheCityManager.123.16ReapplyingforaCannabisBusinessPermit.Ifanapplicantisdeniedapermitduetoadisqualifyingfactorsincluding,butnotlimitedto,failingabackgroundcheckornotcomplyingwithanystate,orlocaljurisdictionsregulatoryrequirementsinwhichlegaloradministrativeactionhasbeentaken,anewapplicationmaynotbefiledbytheapplicantforone(1)yearfromthedateofthedenial.ThissectionshallnotapplytoanapprovedapplicantnotawardedapermitresultingfromtheCitynotselectingthemforoneofthepermitsintheapplicationprocess.123.17TermofaCannabisBusinessPermit.Allpermitsissuedundertheprovisionsofthischaptershallbeeffectiveforaperiodnottoexceedone(1)yearfromthedateofissuance.TheCityManagermayrenewapermitthroughtheproceduresidentifiedinSection123.18ofthisCode.123.18RenewalofCannabisBusinessPermits.(A)AnapplicationforrenewalofaCannabisBusinessPermitshallbefiledbytheCannabisBusinessPermitteeatleastsixty(60)calendardayspriortotheexpirationdateofthecurrentpermit.

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 25 of 205 (B)Therenewalapplicationshallcontainalltheinformationrequiredfornewapplications.(C)TheapplicantshallpayafeeinanamounttobesetbytheCityCounciltocoverthecostsofprocessingtherenewalpermitapplication,togetherwithanycostsincurredbytheCitytoadministertheprogramcreatedunderthisChapter.(D)AnapplicationforrenewalofaCannabisBusinessPermitmayberejectedifanyofthefollowingexists:(1)Theapplicationisfiledlessthansixty(60)daysbeforeitsexpirationorashortertimeperiodwhichshallbeatthediscretionoftheCityManager.(2)TheCannabisBusinessPermitissuspendedorrevokedatthetimeoftheapplication.(3)TheCannabisBusinesshasnotbeeninregularandcontinuousoperationinthefour(4)monthspriortotherenewalapplicationortheapprovedextensionofthedeadlinefromtheCityManager.(4)TheCannabisBusinesshasfailedtoconformtotherequirementsoftheCannabisBusinessPermitorthisChapteroranyregulationsadoptedpursuanttothisChapter.(5)ThepermitteefailsorisunabletorenewitsStateofCalifornialicense(6)lfthestatehasdetermined,basedonsubstantialevidence,thatthepermitteeorapplicantisinviolationoftherequirementsofthestaterulesandregulationsandthestatehasdeterminedthattheviolationisgroundsforterminationorrevocationoftheCannabisBusinessPermit.(7)ViolationofSection123.08ofthisCode.(E)TheCityManagerisauthorizedtomakealldecisionsconcerningtheissuanceofarenewalpermit.Inmakingthedecision,theCityManagerisauthorizedtoimposeadditionalconditionstoarenewalpermit,ifitisdeterminedtobenecessarytoensurecompliancewithstateorlocallawsandregulationsortopreservethepublichealth,safety,orwelfare.AppealsfromthedecisionoftheCityManagershallbehandledpursuanttothisChapter.(F)Ifarenewalapplicationisdenied,apersonmayfileanewapplicationpursuanttothisChapternotsoonerthanone(1)yearfromthedateofthedenial.123.19Suspension,RevocationorModificationofPermits.CannabisBusinessPermitsmaybesuspended,revokedormodifiedforanyviolationof

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 26 of 205 thisChapter,anystateorlocallaws,rules,and/oranystandards,policies,procedures,orregulationsadoptedpursuanttothisChapterrelatingtoCannabisBusinesses.AdecisionoftheCitytosuspend,revokeormodifyaCannabisPermitisappealableassetforthinthisChapter.123.20EffectofStateLicenseSuspension.SuspensionofalicenseissuedbytheStateofCalifornia,orbyanyofitsdepartmentsordivisions,shallimmediatelysuspendtheCannabisBusinessPermitoftheCannabisBusiness.IftheStateofCaliforniaoritsrespectivedepartmentordivisionreinstatesorreissuestheStatelicense,theCannabisBusinessmayseekreinstatementofitsCannabisBusinessPermitifthebusinesscandemonstratethatthegroundsforrevocationofthelicensebythestatenolongerexistorthattheunderlyingdeficiencyhasotherwisebeencured.AnyCannabisBusinessPermitteeshallinformtheCityofanysuspensionofastatelicense.123.21EffectofStateLicenseRevocationorTermination.RevocationorterminationofalicenseissuedbytheStateofCalifornia,orbyanyofitsdepartmentsordivisions,shallimmediatelyrevokeorterminatetheCannabisBusinessPermitoftheCannabisBusiness.AnyCannabisBusinessPermitteeshallinformtheCityofanyrevocationorterminationofastatelicense.123.22Appeals.Appealsrelatingtodenialofanapplication;torevoke,suspendormodifyapermit;todenyrenewalofanapplicationforapermit;ortoaddconditionstoapermitshallbeconductedasprescribedinthisChapter.123.23AppealsandContentsofAppeal(A)Withinten(10)calendardaysafterserviceofthenoticeofthedecisionoftheCitytodenyadvancementtothefinalselectionprocess;torevoke,suspendormodifyapermit;todenyarenewedapplicationforapermit;ortoaddconditionstoapermit,anapplicantorpermitteemayappealsuchactionbyfilingawrittenappealwiththeCityClerksettingforththereasonwhythedecisionwasnotproper.Forappealsofadenialofanapplicationpriortothefinaldecisionprocess,reasonsshallbestatedwithspecificityandshalladdresstheissuesoutlinedinSection123.24(A).Dateofserviceshallmeanthedatewhenanoticeorwrittendecisionwaspersonallydeliveredtotheapplicantorpermitteeorthedatewhenthenoticewascausedtobedeliveredbycertified,firstclassmail.Incasesinwhichthecitycanverifydeliveryofanoticetoanapplicantorinwhichanapplicantisdocumentedasrefusingdelivery,lackofreceiptofthenoticecannotformthebasisforanappeal.(B)TheNoticeofAppealshallbeinwritingandsignedbythepersonmakingthe

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 27 of 205 appeal(“Appellant”),ortheirlegalrepresentative,andshallcontainthefollowing:(1)Name,address,andtelephonenumberoftheappellant.(2)Specifydecisions,actions,oraparticularpartthereof,madethatarethesubjectoftheappeal.(3)IncludeatrueandcorrectcopyofthenoticeissuedbytheCityManagerforwhichtheappellantisappealing.(4)Statewithspecificitythereasonsandgroundsformakingtheappeal,including,butnotlimitedto,astatementoffactsuponwhichtheappealisbasedinsufficientdetailtoenabletheCityCouncil,oranyappointedhearingofficer,tounderstandthenatureofthecontroversy,thebasisoftheappeal,andthereliefrequested.(5)Alldocumentsorotherevidencepertinenttotheappealthattheappellantrequeststhehearingofficerorbodytoconsideratthehearing.(6)AnappealfeeasestablishedbyResolutionoftheCityCouncil(A)FailureoftheCityClerktoreceiveatimelyappealconstitutesawaiveroftherighttoappealthenoticeissuedbytheCityManager.Inthisevent,theCityManager'snoticeofrevocation,nonrenewal,orsuspensionshallbefinal.(B)IntheeventawrittenNoticeofAppealistimelyfiled,thenonrenewal,suspension,orrevocationshallnotbecomeeffectiveuntilafinaldecisionhasbeenrenderedandissuedbytheCityCouncilorappointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon-operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(C)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,theCannabisBusinessesPermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittenNoticeofAppeal.123.24AppointmentandScopeofHearingOfficerorBody.(A)DenialofApplicationPriortoFinalDecisionProcess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilResolution,willhearappealsthataddressthefollowingissues:(1)AnydeviationfromtheCity’spublishedProcedureGuidelinesandReviewCriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeoftheCity'sdecisionontheapplication.Examplesofappealabledeviations

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| ‘ |...l:r- . Iul uuol . I. .|‘I|| «
(2)
(3)
include,butarenotlimitedtoFailureonthepartoftheCitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;ii.FailureonthepartoftheCitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;iii.FailureonthepartoftheCitytocorrectlyapplytheReviewCriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.InformationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbytheCityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappealAllOtherAppeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilResolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(0)NotwithstandingSection123.24(A)(1),anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheProcedureGuidelinesandReviewCriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.123.25AppealHearingProcessandProceedings.(A)ReviewbyCityCouncil,CityManager,AppointedHearingOfficerorBody(1) (2)
AppellantswhofileatimelywrittenNoticeofAppealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilbyResolution.UponreceiptbytheCityClerkofatimely-filedNoticeofAppeal,theCityClerkshallforwardsuchappealtothehearingofficerwhoshallscheduleahearingwithinthirtydays(30)days.Intheeventsuchhearingcannotbeheardwithinthattimeperiodoramutuallyagreedupontimewiththeappellant,thentheCityClerkshallscheduletheappealtobeheardwithinforty-five(45)daysor

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asreasonablypossible.Theappe|lant(s)listedonthewrittenNoticeofAppealshallbenotifiedinwritingofthedate,time,andlocationofthehearingatleastten(10)daysbeforethedateofthehearing(“NoticeofAppealHearlng”).ArequestbyanappellantorbytheCitytocontinueahearingmustbesubmittedtotheCityClerkinwritingnolaterthanthree(3)businessdaysbeforethedatescheduledforthehearing.TheCityCouncil,CityManager,appointedhearingofficerorbodymaycontinueahearingforgoodcauseoronitsownmotion;however,innoeventmaythehearingbecontinuedformorethanthirty(30)calendardays,unlessthereisastipulationbyallpartiestodoso.Atthedate,timeandlocationsetforthintheNoticeofAppealHearing,theCityCouncil,CityManager,appointedHearingOfficerorbodyshallhearandconsiderthetestimonyoftheappellant(s),Citystaff,and/ortheirwitnesses,aswellasanydocumentaryevidenceproperlysubmittedforconsideration.Thefollowingrulesshallapplyattheappealhearing(1) (2)
(3)
(4)
(5)
(6)
Appealhearingsareinformal,andformalrulesofevidenceanddiscoverydonotapply.However,rulesofprivilegeshallbeapplicabletotheextenttheyarepermittedbylaw,andirrelevant,collateral,undue,andrepetitioustestimonymaybeexcluded.TheCitybearstheburdenofprooftoestablishthegroundsfornonrenewal,suspension,revocation,modificationofthepermit,oraddingconditionstothepermitbyapreponderanceofevidence.Appe|lant(s)beartheburdenofproofregardingdenialofanapplicationordenialofadvancementtothefinalselectionprocessestablishedbytheCityCouncil.TheissuanceoftheCity’snoticeconstitutesprimafacieevidenceofgroundsforthedenial,nonrenewal,suspensionorrevocation.ThehearingofficerorbodymayacceptandconsiderlateevidencenotsubmittedinitiallywiththeNoticeofAppealuponashowingbytheappellantofgoodcause.Thehearingofficerorbodyshalldeterminewhetheraparticularfactorsetoffactsamounttogoodcauseonacase-by—casebasis.Theappellantmaybringalanguageinterpretertothehearingattheirsoleexpense.TheCitymay,atitsdiscretion,recordthehearingbystenographerorcourtreporter,audiorecording,orvideorecording.IftheappellantrequestsfromtheCitythatacourtreporter,stenographer,orvideographerbeused,

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(E)
(F)
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123.26(A)
(B)
123.27(A)
appellantshallbearthecostsofsameandshalldepositsuchfeespriortocommencementoftheadministrativehearing.Iftheappellant,ortheirlegalrepresentative,failstoappearattheappealhearing,theCityCouncil,CityManager,appointedhearingofficerorbody,maycanceltheappealhearingandsendanoticethereoftotheappellantbycertified,firstclassmailtotheaddress(es)statedontheNoticeofAppeal.Acancellationofahearingduetonon-appearanceoftheappellantshallconstitutetheappellant’swaiveroftherighttoappealandafailuretoexhaustalladministrativeremedies.Insuchinstances,theCity’snoticeofdecisionisfinalandbinding.FinalDecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithintwenty(20)dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.IftheappellantisnottheowneroftherealpropertyinwhichtheCannabisBusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.FailureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbytheCitypursuanttothisChapter.ChangeinLocation;UpdatedApplicationForm.Anytimethebusinesslocationspecifiedintheregulatorypermitischanged,thepermitteeshallsubmitanupdatedapplicationformtotheCityManagerforapprovalpriortothechangeinlocation.TheprocessandthefeesfortheprocessingoftheapplicationformshallbethesameastheprocessandfeessetforthinSections123.18and123.27.Withinfifteen(15)calendardaysofanyotherchangeintheinformationprovidedintheupdatedapplicationformoranychangeinstatusofcompliancewiththeprovisionsofthisChapter,includinganychangeintheCannabisBusinessownershipormanagementmembers,theapplicantshallfileanupdatedapplicationformwiththeCityManagerforreviewalongwithanapplicationamendmentfee.TransferofCannabisBusinessPermit.TheownerofaCannabisBusinessPermitshallnottransferownershiporcontrol

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 31 of 205 ofthepermittoanotherpersonorentityunlessanduntilthetransfereeobtainsanamendmenttothepermitfromtheCityManagerstatingthatthetransfereeisnowthepermittee.SuchanamendmentmaybeobtainedonlyifthetransfereefilesanapplicationwiththeCityManagerinaccordancewiththeprovisionsofthisChapter(asthoughthetransfereewereapplyingforanoriginalCannabisBusinessPermit).Theproposedtransferee’sapplicationshallbeaccompaniedbyatransferfeeinanamountsetbyresolutionoftheCityCouncil(orifnotset,shallbethesameamountastheapplicationfee).Thetransferee’sapplicationwillbetreatedasanewapplication,andwillbeevaluatedaccordingtoproceduresadoptedbytheCityManager,pursuanttoSection123.43.(B)CannabisBusinessPermitsissuedthroughthegrantofatransferbytheCityManagershallbevalidforaperiodofoneyearbeginningonthedaytheCityManagerapprovesthetransferofthepermit.Beforethetransferee’spermitexpires,thetransfereeshallapplyforarenewalpermitandpaytheappropriatefeeinthemannerrequiredbythisChapter.(C)ACannabisBusinessPermitshallnotbetransferredwhentheCityhasnotifiedthepermitteeinwritingthatthepermithasbeenormaybesuspendedorrevoked.(D)AnyattempttotransferaCannabisBusinessPermiteitherdirectlyorindirectlyinviolationofthissectionisherebydeclaredaviolationofthepermitandthisChapter.Suchapurportedtransfershallbedeemedagroundforrevocationofthepermit.123.28CityBusinessLicense.Priortocommencingoperations,aCannabisBusinessshallobtainaCityoflndiobusinesslicense.123.29BuildingPermitsandInspection.Priortocommencingoperations,aCannabisBusinesspermitteeshallbesubjecttoamandatorybuildinginspectionandmustobtainallrequiredpermitsandapprovalswhichwouldotherwiseberequiredforanybusinessofthesamesizeandintensityoperatinginthatzone.Thisincludesbutisnotlimitedtoobtaininganyrequiredbuildingpermit(s),FireDepartmentapprovals,PoliceDepartmentapproval,CodeEnforcement,Planning,andCountyHealthDepartmentapprovals,andanyotherapplicablezoningandlandusepermit(s)andapprovals.123.30AuthorizationfromtheCommunityDevelopmentDirector.Priortocommencingoperations,aCannabisBusinessmustobtainauthorizationfromtheCommunityDevelopmentDirectorcertifyingthatthebusinessislocatedonasitethatmeetsalloftherequirementsofSections123.29,123.31and123.32ofthisCode.

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 32 of 205 123.31RighttoOccupyandtoUseProperty.PriortotheCity’sissuanceofaCannabisBusinessPermitpursuanttothisChapter,anypersonintendingtoopenandtooperateaCannabisBusinessshallfirstprovidesufficientevidenceofthelegalrighttooccupyandtousetheproposedlocation.Iftheproposedlocationwillbeleasedfromthepropertyowner,theapplicantshallberequiredtoprovideasignedandnotarizedstatementfromtheowneroftheproperty,acknowledgingthatthepropertyownerhasreadthisChapterandconsentstotheoperationoftheCannabisBusinessontheowner’sproperty.123.32LocationandDesignofCannabisBusinesses.(A)ACannabisBusinessmustmeetlanduseandbuildingstandardspursuanttoTitle15ofthisCode,including:(1) (2)(3)
ConformwiththeCity’sgeneralplan,anyapplicablespecificplan,masterplan,anddesignrequirements.ComplywithallapplicablezoningandrelateddevelopmentstandardsBeconstructedinamannerthatminimizesodorstosurroundinguses,andpromotesqualitydesignandconstruction,andconsistencywiththesurroundingproperties.(B)ACannabisBusinessmustmeetthefollowingrulesrelatingtoproximitytosensitiveuses:(1) (7)
123.33
Shallbenocloserthansixhundred(600)feetfromanyzonedparcelintheCitydesignatedasasensitiveuseunderSection123.32(B)(2)or250feetfromanychurchlocatedinaresidentialzone,thatisinexistenceatthetimethepermitisissued.ThedistanceshallbedeterminedbythehorizontaldistancemeasuredinastraightlinefromtheclosestpropertylineofthesensitiveusetotheclosestpropertylineofthelotonwhichtheCannabisBusinessistobelocated,withoutregardtointerveningstructures.Sensitiveusesinclude(a)Aschoolprovidinginstructioninkindergartenoranygrades1through12,(whetherpublic,private,orcharter,includingpre-school,transitionalkindergarten,andK-12).(b)(0)LimitationsonCity’sLiability.

AcommercialdaycarecenterlicensedbytheState,CountyorCityAYouthCenter.

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 33 of 205 Tothefullestextentpermittedbylaw,theCityofIndioshallnotassumeanyliabilitywhatsoeverwithrespecttohavingissuedaCannabisBusinessPermitpursuanttothisChapterorothen/viseapprovingtheoperationofanyCannabisBusiness.AsaconditiontotheapprovalofanyCannabisBusinessPermit,theapplicantshallberequiredtomeetallofthefollowingconditionspriortoreceivingtheCannabisBusinessPermit:(A) (B)
(C)
Executeanagreement,inaformapprovedbytheCityAttorney,agreeingtoindemnify,defend(atapp|icant’ssolecostandexpense),andholdtheCityoflndio,anditsofficers,officials,employees,representatives,andagents,harmless,fromanyandallclaims,losses,damages,injuries,liabilitiesorlosseswhichariseoutof,orwhichareinanywayrelatedto,theCity‘sissuanceoftheCannabisBusinessPermit,theCity’sdecisiontoapprovetheoperationoftheCannabisBusinessoractivity,theprocessusedbytheCityinmakingitsdecision,ortheallegedviolationofanyfederal,stateorlocallawsbytheCannabisBusinessoranyofitsofficers,employeesoragents.Maintaininsuranceatcoveragelimits,andwithconditionsthereondeterminednecessaryandappropriatefromtimetotimebytheCity’sRiskManager.ReimbursetheCityforallcostsandexpenses,includingbutnotlimitedtolegalfeesandcourtcosts,whichtheCitymayberequiredtopayasaresultofanylegalchallengerelatedtotheCity’sapprovaloftheapp|icant’sCannabisBusinessPermitorrelatedtotheCity’sapprovalofacannabisactivity.TheCity,atitssolediscretion,mayparticipateatitsownexpenseinthedefenseofanysuchaction,butsuchparticipationshallnotrelievetheapplicantofanyoftheobligationsimposedhereunder.123.34RecordsandRecordkeeping.(A)EachownerandoperatorofaCannabisBusinessshallmaintainaccuratebooksandrecordsinanelectronicformat,detailingalloftherevenuesandexpensesofthebusiness,andallofitsassetsandliabilitiesforaperiodnotlessthanseven(7)years.Onnolessthananannualbasis(atorbeforethetimeoftherenewalofaCannabisBusinessPermitissuedpursuanttothisChapter),oratanytimeuponreasonablerequestoftheCity,eachCannabisBusinessshallfileaswornstatementdetailingthenumberandamountofsalesbytheCannabisBusinessduringtheprevioustwelve-monthperiod(orshorterperiodbaseduponthetimingoftherequest),providedonaper-monthbasis.Thestatementshallalsoincludegrosssalesforeachmonth,andallapplicabletaxesand/orfeespaidorduetobepaid.Onanannualbasis,eachownerandoperatorshallsubmittotheCityafinancialauditofthebusiness'soperationsconductedbyanindependentcertifiedpublicaccountant.Eachpermitteeshallbesubjecttoaregulatorycompliancereviewandagrossreceiptsfinancialaudit,whereapplicable,asdeterminedbytheCity.

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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 34 of 205 (B)EachownerandoperatorofaCannabisBusinessshallmaintainacurrentregisterofthenamesandthecontactinformation(includingthename,address,andtelephonenumber)ofanyoneowningorholdinganinterestintheCannabisBusiness,andseparatelyofalltheofficers,managers,employees,agents,andvolunteerscurrentlyemployedorothen/viseengagedbytheCannabisBusiness.TheregisterrequiredbythisparagraphshallbeprovidedtotheCityManageruponrequest.(C)AllCannabisBusinessesshallmaintainaninventorycontrolandreportingsystemthataccuratelydocumentsthepresentlocation,amounts,anddescriptionsofallcannabisandcannabisproductsforallstagesofthegrowingandproductionormanufacturing,laboratorytestingprocessesuntilpurchaseassetforthintheMAUCRSA.123.35SecurityMeasures.(A)ACannabisBusinesspermitteeshallimplementsufficientsecuritymeasurestodeterandpreventtheunauthorizedentranceintoareascontainingcannabisorcannabisproductsandtodeterandpreventthetheftofcannabisorcannabisproductsattheCannabisBusiness.ExceptasmayotherwisebedeterminedbytheCityManager,thesesecuritymeasuresshallinclude,butshallnotbelimitedto,allofthefollowing:(1)Perimeterfencingandexteriorlightingsystems(includingmotionsensors)forafter-hourssecurityasapprovedbytheChiefofPoliceand/ortheCommunityDevelopmentDirectorwereapplicable.(2)PreventingindividualsfromremainingonthepremisesoftheCannabisBusinessiftheyarenotengaginginanactivitydirectlyrelatedtothepermittedoperationsoftheCannabisBusiness.Incasesinwhichtheindividualwillnotvoluntarilyleavethepremises,thecannabisemployeeshallcontactthePoliceDepartment.(3)EstablishinglimitedaccessareasaccessibleonlytoauthorizedCannabisBusinesspersonnel.(4)Installing24-hoursecuritysurveillancecamerasofatleasthigh-definition(HD)qualitytomonitorallentrancesandexitstoandfromthepremises,allinteriorspaceswithintheCannabisBusinesswhichareopenandaccessibletothepublic,allinteriorspaceswherecannabis,cash,orcurrency,isbeingstoredforanyperiodoftimeonaregularbasisandallinteriorspaceswherediversionofcannabiscouldreasonablyoccur.Allcamerasshallrecordincolor.Allexteriorcamerasshallbeinweather—proofenclosures,shallbelocatedsoastominimizethepossibilityofvandalism,andshallhavethecapabilitytoautomaticallyswitchtoblackandwhiteinlowlightconditions.TheCannabisBusinessshallberesponsibleforensuringthatthesecurity

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(7)
(8)
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surveillancecamera’sfootageisremotelyaccessiblebytheCityManager,andthatitiscompatiblewiththeCity’ssoftwareandhardware.Inaddition,ifrequired,remoteandreal-time,liveaccesstothevideofootagefromthecamerasshallbeprovidedtotheChiefofPoliceattheexpenseofthepermittee.Videorecordingsshallbemaintainedforaminimumofninety(90)daysandshallbemadeavailabletotheChiefofPoliceuponrequest.VideoshallbeofsufficientqualityforeffectiveprosecutionofanycrimefoundtohaveoccurredonthesiteoftheCannabisBusinessandshallbecapableofenlargementviaprojectionorothermeans.InternetProtocoladdressinformationshallbeprovidedtothePoliceDepartmentbytheCannabisBusiness,tofacilitateremotemonitoringofsecuritycamerasbytheDepartmentoritsdesignee.EachbusinessshallhavenetworksecurityprotocolsthatarecertifiedbyUnderwritersLaboratories.SensorsshallbeinstalledtodetectentryandexitfromallsecureareasandshallbemonitoredinrealtimebyasecuritycompanylicensedbytheStateofCaliforniaBureauofSecurityandInvestigativeServices.PanicbuttonsshallbeinstalledinallCannabisBusinesseswithdirectnotificationtothePoliceDepartmentdispatchandshallbeconfiguredtoimmediatelyalertdispatchforthePoliceDepartment.Havingaprofessionallyinstalled,maintained,andmonitoredrea|—timealarmsystembyasecuritycompanylicensedbytheStateofCaliforniaBureauofSecurityandInvestigativeServices.ThepermitteeshallberequiredtoobtainanalarmpermitfromthePoliceDepartment.Anysecuritymeasures,suchasbars,installedonthewindowsorthedoorsoftheCannabisBusinessshallbeinstalledonlyontheinteriorofthebuilding.Securitypersonnelshallbeon-site24hoursadayoralternativesecurityasauthorizedbytheCityManagerandmusthaveasecuritypatrolwhenclosed.SecuritypersonnelmustbelicensedbytheStateofCaliforniaBureauofSecurityandInvestigativeServicespersonnelandshallbesubjecttothepriorreviewandapprovaloftheCityManager,withsuchapprovalnottobeunreasonablywithheld.EachCannabisBusinessshallhavethecapabilitytoremainsecureduringapoweroutageandshallensurethatallaccessdoorsarenotsolelycontrolledbyanelectronicaccesspaneltoensurethatlocksarenotreleasedduringapoweroutage.EachCannabisBusinessshallhaveanaccountingsoftwaresysteminplacetoprovidepointofsaledataaswellasaudittrailsofbothproductandcash,whereapplicable.

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(12)EachCannabisBusinessshalldemonstratetotheChiefofPolice,CityManagerortheirdesignees,compliancewiththestate'strackandtracesystemforcannabisandcannabisproducts.(13)EachCannabisBusinessshallhaveaprofessionallyinstalledvideosurveillancesystem,accesscontrolandintrusionalarmsystemsdesignedtoprotecttheinventory,facility,andemployees.EachbusinessshallhavenetworksecurityprotocolsthatarecertifiedbyUndenrvritersLaboratories.(14)Exteriorvegetationshallbeplanted,alteredandmaintainedinafashionthatprecludesitsuseasahidingplaceforpersonsonthepremises.(15)Emergencyaccessandemergencyevacuationplansthatareincompliancewithstateandlocalfiresafetystandards.EachCannabisBusinessshallidentifyadesignatedsecurityrepresentative/liaisontotheCity,whoshallbereasonablyavailabletomeetwiththeCityManagerregardinganysecurityrelatedmeasuresand/oroperationalissues.Thedesignatedsecurityrepresentative/liaisonshall,onbehalfoftheCannabisBusiness,annuallymaintainacopyofthecurrentsecurityplanonthepremisesofthebusiness,topresenttotheCityManageruponrequestthatmeetsthefollowingrequirements:(1)ConfirmsthatadesignatedManagerwillbeondutyduringbusinesshoursandwillberesponsibleformonitoringthebehaviorofemployees.(2)IdentifiesallManagersoftheCannabisBusinessandtheircontactphonenumbers.(3)ConfirmsthatfirstaidsuppliesandoperationalfireextinguishersarelocatedintheserviceareasandtheManager'soffice.(4)Confirmsthatburglar,fire,andpanicalarmsareoperationalandmonitoredbyalicensedsecuritycompany24hoursaday,sevendaysaweek,andprovidescontactinformationforeachlicensedsecuritycompany.(5)Identifiesasufficientnumberoflicensed,interior,andexteriorsecuritypersonnelwhowillmonitorindividualsinsideandoutsidetheCannabisBusiness,theparkinglot,anyadjacentpropertyunderthebusiness’control,andensurethattheparkinglotisclearedofemployeesandtheirvehiclesone—ha|fhourafterclosing.AspartoftheapplicationandlicensingprocesseachCannabisBusinessshallhaveastorageandtransportationplan,whichdescribesindetailtheproceduresforsafelyandsecurelystoringandtransportingallcannabis,cannabisproducts,anyhazardousmaterialsthatmaybeusedbythebusiness,andanycurrency.

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TheCannabisBusinessshallcooperatewiththeCitywhenevertheCityManagermakesarequest,withorwithoutpriornotice,toinspectoraudittheeffectivenessofanysecurityplanorofanyotherrequirementofthisChapter.ACannabisBusinessshallnotifytheCityManagerwithintwenty-four(24)hoursafterdiscoveringanyofthefollowing:(1)Significantdiscrepanciesidentifiedduringinventory.ThelevelofsignificanceshallbedeterminedbytheregulationspromulgatedbytheCityManager.Diversion,theft,loss,oranycriminalactivityinvolvingtheCannabisBusinessoranyagentoremployeeoftheCannabisBusiness.(2) (a)Thelossorunauthorizedalterationofrecordsrelatedtocannabis,customersoremployeesoragentsoftheCannabisBusiness.(b)CompliancewiththeforegoingrequirementsshallbeverifiedbytheCityManagerpriortocommencingbusinessoperations.TheCityManagermaysupplementthesesecurityrequirementsonceoperationsbegin,subjecttoreviewbytheCityManagerifrequestedbythebusinessowner.

Anyotherbreachofsecurity.

FeesandCharges.NopersonmaycommenceorcontinueanycannabisactivityintheCity,withouttimelypayinginfullallfeesandchargesrequiredfortheoperationofaCannabisBusiness.FeesandchargesassociatedwiththeoperationofacannabisactivityshallbeestablishedbyresolutionoftheCityCouncilwhichmaybeamendedfromtimetotime.AllCannabisBusinessesauthorizedtooperateunderthisChaptershallpayallsales,use,businessandotherapplicabletaxes,andalllicense,permit,registration,andotherfeesrequiredunderfederal,state,andlocallaw.EachCannabisBusinessshallcooperatewiththeCitywithrespecttoanyrequesttoaudittheCannabisBusiness’booksandrecordsforthepurposeofverifyingcompliancewiththissection,includingbutnotlimitedtoaverificationoftheamountoftaxesorfeesrequiredtobepaidduringanyperiod.PriortooperatingintheCityandasaconditionofissuanceofapermit,theoperatorofeachcannabisfacilityshallenterintoanoperationaland/orcommunitybenefitagreementwiththeCitysettingforththetermsandconditionsunderwhichthecannabisfacilitywilloperatethatareinadditiontotherequirementsofthisChapter,including,butnotlimitedto,publicoutreachandeducation,communityservice,paymentoffeesandotherchargesasmutuallyagreed,andsuchothertermsand

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(C)
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conditionsthatwillprotectandpromotethepublichealth,safetyandwelfareGeneralOperatingRequirementsCannabisBusinessesmayoperateonlyduringthehoursspecifiedintheCannabisBusinessPermitissuedbytheCity.RestrictiononSalesandConsumption.Nopersonshallcauseorpermitthesale,dispensing,orconsumptionofalcoholicbeveragesortobaccoonoraboutthepremisesoftheCannabisBusiness.NocannabisorcannabisproductsorgraphicsdepictingcannabisorcannabisproductsshallbevisiblefromtheexteriorofanypropertyissuedaCannabisBusinessPermit,oronanyofthevehiclesownedorusedaspartoftheCannabisBusiness.Nooutdoorstorageofcannabisorcannabisproductsispermittedatanytime.ReportingandTrackingofProductandofGrossSales.EachCannabisBusinessshallhaveinplaceapoint-of-saleormanagementinventorytrackingsystemtotrackandreportonallaspectsoftheCannabisBusinessincluding,butnotlimitedto,suchmattersascannabistracking,inventorydata,grosssales(byweightandbysale)andotherinformationwhichmaybedeemednecessarybytheCity.TheCannabisBusinessshallensurethatsuchinformationiscompatiblewiththeCity‘srecord-keepingsystems.Inaddition,thesystemmusthavethecapabilitytoproducehistoricaltransactionaldataforreview.Furthermore,anysystemselectedmustbeapprovedandauthorizedbytheCityManagerpriortobeingusedbythepermittee.Allcannabisandcannabisproductssold,distributed,ormanufacturedshallbecultivated,manufactured,andtransportedbystatelicensedfacilitiesthatmaintainoperationsinfullconformancewiththeStateandlocalregulations.EmergencyContact.EachCannabisBusinessshallprovidetheCityManagerwiththename,telephonenumber(bothlandlineandmobile,ifavailable)ofanon-siteemployeeorownertowhomemergencynoticecanbeprovidedatanyhouroftheday.SignageandNotices(1)InadditiontotherequirementsothenNisesetforthinthissection,businessidentificationsignageforaCannabisBusinessshallconformtotherequirementsofChapter150BillboardsandSigns,including,butnotlimitedto,seekingtheissuanceofaCitysignpermit.NosignsplacedonthepremisesofaCannabisBusinessshallobstructanyentranceorexittothebuildingoranywindow.

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(3)
(4)
(5)
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EachentrancetoaCannabisBusinessshallbevisiblypostedwithaclearandlegiblenoticeindicatingthatsmoking,ingesting,orothenNiseconsumingcannabisonthepremisesorintheareasadjacenttotheCannabisBusinessisprohibited.Businessidentificationsignageshallbelimitedtothatneededforidentificationonlyandshallnotcontainanylogosorinformationthatidentifies,advertises,orliststheservicesortheproductsoffered.NoCannabisBusinessshalladvertisebyhavingapersonholdingasignandadvertisingthebusinesstopassersby,whethersuchpersonisonthepremisesoftheCannabisBusinessorelsewhereincluding,butnotlimitedto,thepublicright-of—way.Signageshallnotdepictanyimageofcannabisorcannabisproducts.Nobanners,flags,snipesigns,billboards,orotherprohibitedsignsmaybeusedatanytime.InaccordancewithstatelawandregulationsorasstipulatedintheCity’sCannabisBusinessPermit,holdersofaCannabisBusinessPermitshallagreethat,asanexpressandongoingconditionofpermitissuanceandsubsequentrenewal,theholderofthepermitshallbeprohibitedfromadvertisinganyCannabisBusinesslocatedinthecitylimitsutilizingabillboard(fixedormobile),busshelter,placard,aircraft,orothersimilarformsofadvertising.ThisparagraphisnotintendedtoplacelimitationsontheabilityofaCannabisBusinesstoadvertiseinotherlegallyauthorizedforms,includingontheinternet,inmagazines,orinothersimilarways.Minors.(1) (2)
(3)
Personsundertheageoftwenty-one(21)yearsshallnotbeallowedonthepremisesofaCannabisBusinessandshallnotbeallowedtoserveasadriverforamobiledeliveryservice.ItshallbeunlawfulandaviolationofthisChapterforanypersontoemployanypersonataCannabisBusinesswhoisnotatleasttwenty-one(21)yearsofage.TheentrancetotheCannabisBusinessshallbeclearlyandlegiblypostedwithanoticethatnopersonundertheageoftwenty-one(21)yearsofageispermittedtoenteruponthepremisesoftheCannabisBusiness.NotwithstandingSection123.37(h)(1),personsaged18to20yearsshallbeallowedonthepremisesofaCannabisBusinessiftheycanproduceaphysician’srecommendation.Inthatevent,suchpersonscanlawfullypurchasecannabisforthesolepurposeofaddressingthemedicalneedthatisthesubjectofthephysician’srecommendation.

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(K)
OdorControl.OdorcontroldevicesandtechniquesshallbeincorporatedinallCannabisBusinessestoensurethatodorsfromcannabisarenotdetectableoff-site.CannabisBusinessesshallprovideasufficientodorabsorbingventilationandexhaustsystemsothatodorgeneratedinsidetheCannabisBusinessthatisdistinctivetoitsoperationisnotdetectedoutsideofthefacility,anywhereonadjacentpropertyorpublicrights—of-way,onorabouttheexteriororinteriorcommonareawalkways,hallways,breezeways,foyers,lobbyareas,oranyotherareasavailableforusebycommontenantsorthevisitingpublic,orwithinanyotherunitlocatedinsidethesamebuildingastheCannabisBusiness.Assuch,CannabisBusinessesmustinstallandmaintainthefollowingequipment,oranyotherequipmentwhichtheCommunityDevelopmentDirectororhis/herdesignee(s)determineisamoreeffectivemethodortechnology:(1)Anexhaustairfiltrationsystemwithodorcontrolthatpreventsinternalodorsfrombeingemittedexternally;(2)AnairsystemthatcreatesnegativeairpressurebetweentheCannabisBusiness’sinteriorandexterior,sothattheodorsgeneratedinsidetheCannabisBusinessarenotdetectableontheoutsideoftheCannabisBusiness.DisplayofPermitandCityBusinessLicense.TheoriginalcopyoftheCannabisBusinessPermitissuedbytheCitypursuanttothisChapterandtheCityissuedbusinesslicenseshallbepostedinsidetheCannabisBusinessinalocationreadilyvisibletothepublic.BackgroundCheck.PursuanttoCaliforniaPenalCodeSections11105(b)(11)and13300(b)(11),whichauthorizesCityauthoritiestoaccessstateandlocalsummarycriminalhistoryinformationforcannabisemployment,licensing,orcertificationpurposesandauthorizesaccesstofederallevelcriminalhistoryinformationbytransmittingfingerprintimagesandrelatedinformationtotheDepartmentofJusticetobetransmittedtotheFederalBureauofInvestigation,everypersonlistedasanownermustsubmitfingerprintsandotherinformationdeemednecessarybytheChiefofPoliceorhis/herdesignee(s)forabackgroundcheckbytheCityoflndioPoliceDepartment.PursuanttoCaliforniaPenalSections11105(b)(11)and13300(b)(11),whichrequiresthattherebearequirementorexclusionfromcannabisemployment,licensingorcertificationbasedonspecificcriminalconductonthepartofthesubjectoftherecord,nopersonshallbeissuedapermittooperateaCannabisBusinessunlesstheyhavefirstclearedthebackgroundcheck,asdeterminedbytheChiefofPoliceorhis/herdesignee(s),asrequiredbythissection.Afeeforthecostofthebackgroundinvestigation,whichshallbetheactualcosttotheCityoflndiotoconductthebackgroundinvestigationasitdeemsnecessaryandappropriate,shallbepaidatthetimetheapplicationforaCannabisBusinessPermitissubmitted.EvidenceofaconvictionofanyoftheoffensesenumeratedinBusinessandProfessionsCodeSection26057(b)(4),absentaCertificateofRehabilitation,shallbegroundsforimmediatedisqualificationofthe

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 41 of 205 (L)
(M)
(N)
123.38(A)
(B)
(C)
(D)
applicant.Loitering.Theownerand/oroperatorofaCannabisBusinessshallprohibitloiteringbypersonsoutsidethefacilitybothonthepremisesandwithinfifty(50)feetofthepremises.TheCannabisBusinessshallnotifythePoliceDepartmentifanyonecontinuestoloiteraroundthebuildingorpremisesafterallreasonableactionhasbeentakentoremovetheindividua|(s)andtheactionhasfailedtodosoinatimelymanner.PermitsandotherApprovals.PriortotheestablishmentofanyCannabisBusinessortheoperationofanysuchbusiness,thepersonintendingtoestablishaCannabisBusinessmustfirstobtainallapplicableplanning,zoning,building,andotherapplicablepermitsfromtherelevantgovernmentalagencywhichmaybeapplicabletothezoningdistrictinwhichsuchCannabisBusinessintendstoestablishandtooperatepursuanttoSection123.32andallapplicablerequirementsinthisChapter.Eachcannabisoperatorshallestablishminimumtrainingstandardsforallemployees.TheCityManagershallhavethediscretiontorequireothertrainingforthebusinessoperationsshouldtheCityidentifydeficienciesornon-complianceissueswithCityorstaterequirements.

OperatingRequirementsforStoreFrontRetailFacilities.NomorethanthenumberofcannabisretailersadoptedbyCouncilresolutionmayoperatewithintheCityatanyonetimeandshallbeissuedapermitbytheCity.Retailersshallverifytheageandallnecessarydocumentationofeachindividualtoensurethecustomerisnotundertheageofeighteen(18)years.Ifthepotentialcustomeris18to20yearsold,retailershallconfirmthecustomer’spossessionofavaliddoctor'srecommendationand/orHealthandSafetyCodeSection11362.71identificationcard(MedicalMarijuanaCard).Foradult-usepurchases,retailersshallverifythatallcustomersare21yearsofageorolderforthepurchaseofcannabisorcannabisproducts.Individualsmustshowtheirgovernment—issuedidentification,and,inthecaseofmedicalcannabisfacilities,theirphysician'srecommendation,oracannabiscardissuedpursuanttoHealthandSafetyCodeSection11362.71inordertogainaccessintotheretailer.Thegovernment-issuedidentificationand,ifapplicable,doctor’srecommendationorcannabiscardmustalsobeshownatthepoint-of—salestationatthetimeofpurchase.Doctorrecommendationsarenottobeobtainedorprovidedattheretaillocation.Uniformedlicensedsecuritypersonnelshallbeemployedtomonitorsiteactivity,controlloiteringandsiteaccess,andtoserveasavisualdeterrenttounlawful

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 42 of 205 (F)(G)
(H)
(l)
activities.SecuritypersonnelmaybeallowedtocarryfirearmsifauthorizedbytheChiefofPolice.Retailersmayhaveonlythatquantityofcannabisandcannabisproductstomeetthedailydemandreadilyavailableforsaleon-siteintheretailsalesareaoftheretailer.Additionalproductmaybestoredinasecured,lockedareatowhichcustomers,vendors,andvisitorsshallnothaveaccess.Allrestroomfacilitiesshallremainlockedandunderthecontrolofmanagement.PermittedStoreFrontRetailersareauthorizedtoconductcannabissalesbydelivery,pursuanttotherequirementssetforthinSection123.40.Retailersauthorizedtoconductretailactivitiesshallonlyservecustomerswhoarewithinthepermittedpremises,oratadeliveryaddressthatmeetstherequirementsofthisdivision.(1)Thesaleanddeliveryofcannabisgoodsshallnotoccurthroughapass-throughwindoworaslide-outtraytotheexteriorofthepremises.(2)Retailersshallnotoperateasorwithadrive-inordrive-throughatwhichcannabisgoodsaresoldtopersonswithinoraboutamotorvehicle.(3)Nocannabisgoodsshallbesoldand/ordeliveredbyanymeansormethodtoanypersonwithinamotorvehicle.(4)Allcannabisgoodssoldbyaretailbusinessshallbecontainedinchild-resistantpackaging.(5)Retailersshallrecordpoint—of-saleareasandareaswherecannabisgoodsaredisplayedforsaleonthevideosurveillancesystem.Ateachpoint-of-salelocation,cameraplacementmustallowfortherecordingofthefacialfeaturesofanypersonpurchasingorsellingcannabisgoods,oranypersonintheretailarea,withsufficientclaritytodetermineidentity.(6)Aretailpermitteewhoisengagedinretailsaleshallhireorcontractforsecuritypersonnelwhoareatleast21yearsofagetoprovidesecurityservicesforthepermittedretailpremises.AllsecuritypersonnelhiredorcontractedforbythepermitteeshallbelicensedbytheBureauofSecurityandInvestigativeServicesandshallcomplywithDivision3oftheBusinessandProfessionsCode.AccesstoRetailerPremises.(1)Accesstothepremisesofaretailpermitteeshallbelimitedtoindividualswhoareatleast21yearsofage.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 43 of 205 (2)NotwithstandingSection123.37(h)(1),individualswhoareatleast18yearsofageandinpossessionofavalidphysician’srecommendationshallbegrantedaccesstothepremisesofaretailpermitteeforthesolepurposeofpurchasingmedicinalcannabisconsistentwiththephysician'srecommendation.(I)AuthorizedSales.Aretailershallonlyselladult-usecannabisandadult-usecannabisproductstoindividualswhoareatleast21yearsofage.Aretailershallonlysellmedicinalcannabisormedicinalcannabisproductstoindividualswhoareatleast18yearsofage,butnotyet21,ifthoseindividualsareinpossessionofavalidphysician’srecommendation.Medicinalcannabissalestoindividuals21yearsofageandolderareunrestricted.(J)LimitedAccessAreas.Aretailershallestablishlimited-accessareasandpermitonlyauthorizedindividualstoenterthe|imited—accessareas.Authorizedindividualsincludeindividualsemployedbytheretaileraswellasanyoutsidevendors,contractors,orotherindividualsconductingbusinessthatrequiresaccesstothelimitedaccessarea.Allindividualsgrantedaccesstothelimitedaccessareashallbeatleast21yearsofage,andifnotemployedbytheretailer,shallbeescortedatalltimesbyanemployeeofthepermittee.Aretailershallmaintainalogofallindividualswhoarenotemployeeswhoaregrantedaccesstothelimitedaccessarea.TheselogsshallbemadeavailabletotheCityManager,ChiefofPolice,ortheirdesigneesuponrequest.(K)OperatinghoursoftheStoreFrontRetailerPermitshallbelimitedtothehoursof6:00a.m.through10:00p.m.,sevendaysaweek.(L)StoreFront/RetailSecurityRequirements.AllprovisionsincorporatedwithinSection123.35ofthisCode(SecurityMeasures),aredirectlyapplicabletoandbindingonallCannabisBusinesses,includingallStoreFront/Retailbusinesses.123.39OperatingRequirementsforNon-StoreFrontRetail(Delivery-Only)Facilities.(A)NomorethanthenumberofNon-StoreFrontRetailersadoptedbyCouncilresolutionmayoperatewithintheCityatanyonetimeandshallbeissuedapermitbytheCity.(B)Anon-storefrontretailerpermitteeshallbeauthorizedtoconductretailsalesexclusivelybydelivery.Thepermittedpremisesofanon-storefrontretailerpermitteeshallbeclosedtothepublic.(C)Anon-storefrontretailerpermitteeshallcomplywithalltherequirementsapplicabletoretailerpermittees,exceptforthoseprovisionsrelatedtopublicaccesstothepermittedpremisesandtheretailarea.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 44 of 205 (D)OperatinghoursoftheNon-StoreFrontRetailerPermitshallbelimitedtothehoursof9:00a.m.through9:00p.m.,sevendaysaweek.123.40StoreFrontandNon-StoreFrontRetailDeliveryRequirements.(A)Priortoprovidingcannabisgoodstoadeliverycustomer,operatorsarerequiredtoverifytheageandthenecessarydocumentationofeachcustomer.Theymustensurethatmedicalcustomersareatleasteighteen(18)yearsofageandverifythatthecustomerhasavaliddoctor’srecommendation.Inthecaseofadult-usecustomers,theymustverifythatthecustomerisatleasttwenty-one(21)yearsofage.Salesshallonlybemadetopersonsmatchingthesecriteria.(B)Retaildeliveryservicesshallbelimitedtothehoursof9:00a.m.through9:00p.m.,sevendaysaweek.(C)Priortocommencingdeliveryoperations,acannabisRetailerandcannabisNon-StoreFrontRetailershallprovidethefollowinginformationtotheCity:(1)Proofofownershipofthevehicleoravalidleaseforanyandallvehiclesthatwillbeusedtodelivercannabisorcannabisproducts.(2)Theyear,make,model,color,licenseplatenumber,andnumericalVehicleIdentificationNumber(VIN)foranyandallvehiclesthatwillbeusedtodelivercannabisgoods.(3)ProofofinsuranceasrequiredinSection123.33(b)foranyandallvehiclesbeingusedtodelivercannabisgoods.(4)ThepermitteeshallprovidetheCitywiththeinformationrequiredbythissectioninwritingforanynewvehiclethatwillbeusedtodelivercannabisgoodspriortousingthevehicletodelivercannabisgoods.(5)ThepermitteeshallprovidetheCitywithanychangestotheinformationrequiredbythissectioninwritingwithinthirty(30)calendardays.123.41OperatingRequirementsforOut-of-CityDeliveryServices.(A)A||CannabisBusinesseswhichconductdeliveriesintoorwithintheCityoflndioshallberequiredtoobtainapermitfromtheCityoflndioinordertoconductretailsalesregardlessofwhethertheyarelocatedintheCityoranotherlocaljurisdiction.(B)Priortocommencingoperations,acannabisout-of-Citydeliveryserviceshallcomplywiththefollowingrequirements:(1)ObtainfromtheCityapermitauthorizingthedeliveryofcannabisandcannabis

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 45 of 205 productswithintheCitylimitsAcopyofthispermitshallberetainedbyalldrivers.(2)TheretailbusinessoperatingthedeliveryserviceshallprovidetheCityManagerwithevidenceofavalidstateandlocallicenseforaCannabisBusinessonwhoseauthorizationthedeliveryserviceisperformingthedeliveryfunction.(3)TheretailbusinessoperatingthedeliveryserviceshallfurnishtotheCityManagertheyear,make,model,licenseplatenumber,andnumericalVehicleIdentificationNumber(VIN)foranyandallvehiclesthatwillbeusedtodelivercannabisgoods.(C)OperatinghoursoftheOut-of-CityDeliveryServiceshallbelimitedtothehoursof9:00a.m.through9:00p.m.,sevendaysaweek.123.42PermissibleDeliveryLocationsandCustomers.CannabisdeliverybusinessespermittedtoengageindeliveryofcannabisandcannabisproductsinsidetheCityoflndioaresubjecttothefollowingrequirements:(A)ApermittedCannabisBusinessshallnotdelivercannabisgoodstoanaddresslocatedonpubliclyownedlandoranyaddressonlandorinabuildingleasedbyapublicagency.(B)ApermittedCannabisBusinessshallcomplywithallrequirementsofstateandlocallawpertainingtotheCannabisBusinessPermitandallsubsequentpolicies,proceduresandregulationswhichmaybeamendedbytheCityManagerfromtimetoinordertoenforcethisChapter.(C)Anykiosk,i-Pad,tablet,smartphone,fixedlocationortechnologyplatform,whethermannedorunmanned,otherthanaretaillocationpermittedbythecity,thatfacilitates,directs,orassiststheretailsaleordeliveryofcannabisorcannabisproductsisprohibitedandshallbeaviolationofthisChapter.123.43PromulgationofRegulations,StandardsandOtherLegalDuties.(A)InadditiontoanyregulationsadoptedbytheCityCouncil,theCityManagerisauthorizedtoestablishadministrativelyanyadditionalrules,regulationsandstandardsgoverningtheissuance,denialorrenewalofCannabisBusinessPermits,theongoingoperationofCannabisBusinessesandtheCity‘soversight,orconcerninganyothersubjectdeterminedtobenecessarytocarryoutthepurposesofthisChapter.(B)RegulationsshallbepublishedontheCity’swebsite

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 46 of 205 (C)RegulationspromulgatedbytheCityManagershallbecomeeffectiveupondateofpublication.CannabisBusinessesshallberequiredtocomplywithallstateandlocallawsandregulations,includingbutnotlimitedtoanyrules,regulationsorstandardsadoptedbytheCityManager.123.44CommunityRelations.(A)EachCannabisBusinessshallprovidethename,telephonenumber,andemailaddressofacommunityrelationscontacttowhomnoticeofproblemsassociatedwiththeCannabisBusinesscanbeprovided.EachCannabisBusinessshallalsoprovidetheaboveinformationtoallbusinessesandresidenceslocatedwithinonehundred(100)feetoftheCannabisBusiness.(B)DuringthefirstyearofoperationpursuanttothisChapter,theowner,manager,andcommunityrelationsrepresentativefromeachCannabisBusinessholdingapermitissuedpursuanttothisChaptershallattendmeetingswiththeCityManager,andotherinterestedpartiesasdeemedappropriatebytheCityManager,todiscusscosts,benefits,andothercommunityissuesarisingasaresultofimplementationofthisChapter.Afterthefirstyearofoperation,theowner,manager,andcommunityrelationsrepresentativefromeachsuchCannabisBusinessshallmeetwiththeCityManagerwhenandasrequestedbytheCityManager.123.45FeesDeemedDebttotheCity.Theamountofanyfee,costorchargeimposedpursuanttothisChaptershallbedeemedadebttotheCitythatisrecoverableviaanauthorizedadministrativeprocessassetforthintheCityordinanceorinanycourtofcompetentjurisdiction.123.46PermitHolderResponsibleforViolations.ThepersontowhomapermitisissuedpursuanttothisChaptershallberesponsibleforallviolationsofthelawsoftheStateofCaliforniaoroftheregulationsand/ortheordinancesoftheCity,whethercommittedbythepermitteeoranyemployeeoragentofthepermittee,whichviolationsoccurinoraboutthepremisesoftheCannabisBusinesswhetherornotsaidviolationsoccurwithinthepermitholder’spresence.123.47InspectionandEnforcement.(A)TheCityManager,ordesigneechargedwithenforcingtheprovisionsoftheCityoflndioMunicipalCode,oranyprovisionthereof,mayenterthelocationofaCannabisBusinessatanytime,withoutnotice,andinspectthelocationofanyCannabisBusinessaswellasanyrecordingsandrecordsrequiredtobemaintainedpursuanttothisChapterorunderapplicableprovisionsofStatelaw.(B)ItisunlawfulforanypersonhavingresponsibilityovertheoperationofaCannabis

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 47 of 205 SECTION3.

SECTION4.

Business,toimpede,obstruct,interferewith,orotherwisenottoallow,theCitytoconductaninspection,revieworcopyrecords,recordingsorotherdocumentsrequiredtobemaintainedbyaCannabisBusinessunderthisChapterorunderstateorlocallaw.Itisalsounlawfulforapersontoconceal,destroy,deface,damage,orfalsifyanyrecords,recordingsorotherdocumentsrequiredtobemaintainedbyaCannabisBusinessunderthisChapterorunderstateorlocallaw.(C)TheCityManager,ordesigneechargedwithenforcingtheprovisionsofthisChaptermayenterthelocationofaCannabisBusinessatanytimeduringthehoursofoperationandwithoutnoticetoobtainsamplesofthecannabistotestforpublicsafetypurposes.AnysamplesobtainedbytheCityoflndioshallbelogged,recorded,andmaintainedinaccordancewithestablishedproceduresbytheCityof|ndio’sCityManagerortheseregulations. 123.48Violationsdeclaredapublicnuisance.EachandeveryviolationoftheprovisionsofthisChapterconstitutesamisdemeanorandisherebydeemedunlawfulandapublicnuisance.TheCityreservestherighttopursueanyavailablelegalremedytoaddressviolationsofthisChapter.123.49NoVestedRightsNoperson(s)(includinganyApplicant,Owner,and/orPermittee)shallhaveanyvestedrightstoanypermit,right,and/orinterestunderthischapter,regardlessofwhethersuchperson(s)sold,distributed,and/orotherwiseengagedinactsrelatedtotheuseofCannabispriortotheadoptionoftheordinancecodifiedinthisChapter.”CEQA.TheCityCouncilfindsanddeterminesthatthisOrdinanceisnotsubjecttotheCaliforniaEnvironmentalQualityAct(“CEQA”)pursuanttotheStateCEQAGuidelinesSection15060(c)(3),becauseitisnotaprojectasdefinedbytheCEQAGuidelinesSection15378.AdoptionoftheOrdinancedoesnothavethepotentialforresultingineitheradirectphysicalchangeintheenvironmentorareasonablyforeseeableindirectphysicalchangeintheenvironmentasitisanordinancesettingforththeregulatoryprocessforcannabispermits.Severability.Ifanysection,subsection,subdivision,paragraph,sentence,clauseorphraseofthisordinanceoritsapplicationtoanypersonorcircumstance,isforanyreasonheldtobeinvalidorunenforceablebyacourtofcompetentjurisdiction,suchinvalidityorunenforceabilityshallnotaffectthevalidityorenforceabilityoftheremainingsections,subsections,subdivisions,paragraphs,sentences,clausesorphrasesofthisordinance,oritsapplicationtoanyotherpersonorcircumstance.TheCityCouncildeclaresthatitwouldhaveadoptedeachsection,subsection,subdivision,paragraph,sentence,clause,phrasehereof,irrespectiveofthefactthatanyoneormoresections,subsections,subdivisions,paragraphs,sentences,clausesorphraseshereofbedeclaredinvalidorunenforceable.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 48 of 205 SECTION5.TheCityClerkshallcertifytotheadoptionofthisOrdinanceandshallcausethesametobepublishedinthemannerprescribedbylaw.

PASSED,APPROVEDANDADOPTEDthis15‘dayofJu2022

W AYMOFERMONMAYO
ATTEST:

CYNTHIAHERNANCMCCICLERK

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 49 of 205

CERTIFICATION
I,SabdiSanchez,CityClerkAdministratoroftheCityoflndio,California,herebycertifythatOrdinanceNo.1780wasdulyandregularlyadoptedatameetingoftheCityCouncilofsaidCityatitsmeetingheldonthe1stdayofJune2022bythefollowingvote,towit:

AyesMiller,Holmes,RamosAmith,MayorProTemOrtizandMayorFermonNoesNone INWITNESSWHEREOF,IhavehereuntosetmyhandandaffixedtheofficialsealoftheCityoflndio,California,this1stdayofJune2022.

SA ,CMCityClerkAdminCityoflndioOF]
IA

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 50 of 205

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 51 of 205 RESOLUTION NO. 10313
A RESOLUTION OF THE CITY COUNCIL THE CITY OF IND1O9

CALIFORNIA DETERMINING THE NUMBER OF CANNABIS

STOREFRONT RETAIL BUSINESS PERMITS TO BE ISSUED IN THE

CITY AND DETERMINING THAT ESTABLISHMENT OF THE NUMBER

OF SAID PERMITS IS EXEMPT FROM REVIEW UNDER CEQA
PURSUANT TO CEQA GUIDELINES SECTION 15061( B)( 3)
WHEREAS, on June 27, 2017, the Medical and Adult Use Cannabis Regulation and Safety Act ( MAUCRSA) was signed into law, which provides a comprehensive regulatory framework for licensing, control, and taxation of medical and adult - use cannabis - related businesses in California; and,
WHEREAS, on December 6, 2017, the City Council adopted Ordinance No. 1726 establishing Sections 159.565 through 159. 568 of the Indio Municipal Code prohibiting commercial cannabis activity in the City; and,
WHEREAS, on May 18, 2022, the City Council adopted Ordinance No. 1779 amending Chapter 159 (zoning regulations) of the Indio Municipal Code to allow Cannabis Storefront Retailer and Cannabis Non - Storefront Retailer Businesses in commercial land use districts except for the neighborhood commercial zone, mixed use land use districts and on properties regulated by a specific plan or project master plan that permit commercial land uses excluding any properties designated as neighborhood commercial; amending the subchapter entitled Cannabis Activity ( 159. 565 et. seq.); and making a determination that the ordinance was exempt from review under CEQA pursuant to CEQA Guidelines section 15061( b)( 3); and,
WHEREAS, on May 18, 2022, the City Council adopted Ordinance No. 1780 adding a new Chapter 123 entitled cannabis business activities to Title XI, Business Regulations, of the Indio Municipal Code to regulate commercial cannabis uses in the city; and,
WHEREAS, Subsection 123. 10 ( C) of the Indio Municipal Code specifies that the number of each type of Cannabis Business that shall be permitted to operate in the City shall be established by resolution by the City Council; and, WHEREAS, Subsection 123. 10 ( D) of the Indio Municipal Code specifies that notwithstanding Section 123. 10 ( C), the total number of allowable Cannabis Storefront Retail permits established by City Council resolution shall be no more than one ( 1) permit for every fifteen thousand ( 15, 000) residents in the City of Indio, and no less than one ( 1) permit for every twenty- five thousand ( 25, 000) residents in the City of Indio and that the population of the City of Indio shall be based on the official census population estimate, as periodically updated by the US Department of Commerce, Census Bureau; and, WHEREAS, Subsection 123. 10 ( E) of the Indio Municipal Code specifies that each year following the City' s initial award of permits, if any, or at any time in the City Council' s

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 52 of 205 discretion, the City Council may reassess the number of Cannabis Business Permits which are authorized for issuance and make any changes by resolution; and, WHEREAS, Subsection 123. 10 ( F) of the Indio Municipal Code specifies that the City Council, at its sole discretion, may determine that the number and/ or types of Cannabis Business Permits should remain the same or be modified; and, WHEREAS, one ( 1) permit per 17,500 residents in the City of Indio would result in five ( 5) total number of allowable Cannabis Storefront Retail Business Program permits based on the current census population for the City of Indio of 90,416 persons ( Source:
2020 U. S. Census); and,
WHEREAS, the City Council has determined that the establishment of the establishment by resolution of the number of Cannabis Storefront Retail Business Permits to be issued in the City pursuant to Subsections 123. 10 (C) and 123. 10 ( D) of the Indio Municipal Code is in the interest of the public health, safety and welfare.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IND1O9
CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

Section 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Resolution are true and correct and are incorporated herein.

Section 2. The total number of permits to be issued in the City for the City' s Cannabis Business Permit Program shall be five ( 5) Storefront Retail permits based on the current official census population estimate by the US Department of Commerce, Census Bureau.

Section 3. The City Council finds that the determination of the number of permits to be issued in the City for the City's Cannabis Business Permit Program is exempt from the California Environmental Quality Act ( CEQA) pursuant to Section 15061( b)( 3) of the CEQA Guidelines. The City Council previously adopted Ordinance No. 1779 governing the locations of storefront cannabis retail, non - storefront cannabis retail and cannabis delivery. The City Council also approved Ordinance No. 1780 that regulates the operation of storefront cannabis retail, non - storefront cannabis retail and cannabis delivery in the City. The determination of the number of permits to be issued in the City for the City' s Cannabis Business Permit Program is covered by the common sense exemption in that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Accordingly, the City Council finds the adoption of said fees exempt from CEQA pursuant to Section 15061( b)(3) of the CEQA Guidelines. 2

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 53 of 205 Section 4. This Resolution shall take effect upon its adoption.

Section 5. The City Clerk shall certify to the passage, approval, and adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 20th day of July, 2022.

WAYMDNI
MAYOR
ATTEST:

CYNTHI ANDEZ, MC

CITY CLERK

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 54 of 205 00%

CERTIFICATION
I, Sabdi Sanchez, City Clerk Administrator of the City of Indio, California, hereby certify that Resolution No. 10313 was duly and regularly adopted at a meeting of the City Council held on the 20th day of July 2022 by the following vote, to wit:

Ayes: Holmes, Miller, Ramos Amith, Mayor Pro Tern Ortiz and Mayor Fermon Noes: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Indio, California, this 20th day of July 2022.

SAB NCHE MC
City Clerk Administrator
City of Indio O F
I C._J \ *
COUNTY
1

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 55 of 205 RESOLUTION NO. 10314
A RESOLUTION OF THE CITY COUNCIL THE CITY OF IND109

CALIFORNIA ESTABLISHING PROCEDURE GUIDELINES AND REVIEW

CRITERIA TO GOVERN THE APPLICATION AND SELECTION PROCESS

FOR CANNABIS STOREFRONT RETAIL PERMITS AND DETERMINING

THAT THE ADOPTION OF THESE PROCEDURE GUIDELINES AND

REVIEW CRITERIA IS EXEMPT FROM REVIEW UNDER CEQA
PURSUANT TO CEQA GUIDELINES SECTION 15061( B)( 3)
WHEREAS, on June 27, 2017, the Medical and Adult Use Cannabis Regulation and Safety Act ( MAUCRSA) was signed into law, which provides a comprehensive regulatory framework for licensing, control, and taxation of medical and adult - use cannabis - related businesses in California; and,
WHEREAS, on December 6, 2017, the City Council adopted Ordinance No. 1726 establishing Sections 159.565 through 159.568 of the Indio Municipal Code prohibiting commercial cannabis activity in the City; and,
WHEREAS, on May 18, 2022, the City Council adopted Ordinance No. 1779 amending Chapter 159 ( zoning regulations) of the Indio Municipal Code to allow Cannabis Storefront Retailer and Cannabis Non - Storefront Retailer Businesses in commercial land use districts except for the neighborhood commercial zone, mixed use land use districts and on properties regulated by a specific plan or project master plan that permit commercial land uses excluding any properties designated as neighborhood commercial; amending the subchapter entitled Cannabis Activity ( 159. 565 et. seq.); and making a determination that the ordinance was exempt from review under CEQA pursuant to CEQA guidelines section 15061( b)( 3); and,
WHEREAS, on May 18, 2022, the City Council adopted Ordinance No. 1780 adding a new Chapter 123 entitled cannabis business activities to Title XI, Business Regulations, of the Indio Municipal Code to regulate commercial cannabis uses in the city; and, WHEREAS, the City Council has determined that the adoption of Application Procedure and Guidelines and Review Criteria will assist the City in effectively and transparently administer the City' s Cannabis Business Permit Program and is in the public safety, interest and welfare of the City.
r NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF INDIO, CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

Section 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Resolution are true and correct and are incorporated herein.

Section 2. The Application Procedure Guidelines and Review Criteria for a Commercial Cannabis Business Permit ( Storefront Retail Applications) attached hereto as Exhibit " A" is hereby adopted.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 56 of 205 Section 3. The City Manager, or designee, is authorized to make non -substantive corrections, clarifications, and revisions to the Application Procedure and Guidelines and Review Criteria as deemed necessary to facilitate the orderly and efficient implementation of any cannabis storefront retail business permit application and selection process initiated or conducted by the City.

Section 4. The City Council finds that the adoption of Application Procedure and Guidelines and Review Criteria for the administration of the City of Indio Cannabis Business Permit Program is exempt from the California Environmental Quality Act ( CEQA) pursuant to Section 15061( b)(3) of the CEQA Guidelines. The City Council previously adopted Ordinance No. 1779 governing the locations of storefront cannabis retail, non -storefront cannabis retail and cannabis delivery. The City Council also approved Ordinance No. 1780 that regulates the operation of storefront cannabis retail, non - storefront cannabis retail and cannabis delivery in the City. The adoption of the Application Procedure and Guidelines and Review Criteria will allow the City to effectively and transparently administer the City' s Cannabis Business Permit Program. Therefore, the adoption of the Application Procedure and Guidelines and Review Criteria is covered by the common sense exemption in that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Accordingly, the City Council finds the adoption of said fees exempt from CEQA pursuant to Section 15061( b)(3) of the CEQA Guidelines.

Section 5. This Resolution shall take effect upon its adoption.

Section 6. The City Clerk shall certify to the passage, approval, and adoption of this Resolution.

PASSED, APPROVED AND ADOPTED this 201hday of July, 2022.

ATTEST:

CYNTHIA HERNANDEZ, CMC

CITY CLERK
WAYM99D FERM
MAYOR
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 57 of 205 EXHIBIT " A"

IIN D I
City of Indio
Community Development Department
100 Civic Center Mall
Indio, CA 92201
Phone: 760- 541- 4207
Email: cannabis@indio. org

APPLICATION PROCEDURE GUIDELINES AND REVIEW CRITERIA

FOR A COMMERCIAL CANNABIS BUSINESS PERMIT

STOREFRONT RETAIL APPLICATIONS)
Application Period
OPENS — SEPTEMBER 1, 2022
CLOSES — OCTOBER 6, 2022
These Procedure Guidelines apply solely to Cannabis Storefront Retail Applications

NUMBER OF PERMITS
During this application period the City will be allowing up to five ( 5) Cannabis Storefront Retail permits under this process.

RETAIL BUSINESS
Retailer" shall have the same meaning as that contained in Section 26070( a)( 1) of the California Business and Professions Code.

ORIENTATION " KICK OFF" MEETING
The City will hold a virtual Orientation " Kick Off' Meeting on August 9, 2022 from 1:30 p.m. to 3:00 p.m. and will be held in person at the Indio City Council Chambers, 150 Civic Center Mall, Indio, CA 92201 and virtually. Participants must pre -register for the Orientation Meeting, however, attendance at the Orientation Meeting is not required to apply for a Cannabis Business Permit. The registration link will be available on the City' s website at:
httos:// www. indio. org/ your government/ development services/ cannabis. htm

CONTACT
If you have any questions or would like an update on the status of your application, please contact the Community Development Department at 760- 541- 4207 or by email at cannabis@indio. org.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 58 of 205

APPLICABLE REGULATIONS
Information regarding the Commercial Cannabis Business ( CCB) Application process can be found on the City' s website at:
https:// www. indio. org/ your government/ development services/ cannabis. htm Information relevant to the CCB Application process includes the following:

Application Procedures Guidelines
and Review Criteria
City of Indio Municipal Code ( IMC)
Chapter 123 ( Business Regulations)
City of Indio Municipal Code ( IMC)
Chapter 159 (Zoning Regulations)
Property Owner Consent/ Landlord Affidavit
Financial Responsibility, Indemnity and
Consent to Inspection Terms Agreement
Background Check Portal Link
Commercial Cannabis Business ( CCB)
Permit Application
Cannabis website FAQ
To be considered for issuance of a Cannabis Business Permit, applications must be submitted via the online submittal portal to be found on the City's cannabis website by the deadline. There will be no exceptions. These Procedure Guidelines and Review Criteria ( hereafter referred to as Procedures") constitute the application process and are adopted pursuant to the Indio Municipal Code ( IMC) Chapter 123. 13.

Applicants should monitor the City' s web page for any additional information, FAQs, or updates.

It is the responsibility of the Applicant to stay informed of this information.

AMENDMENTS TO THE APPLICATION
Applicants will not be allowed to make amendments to their application or to supplement their application, except as otherwise specifically permitted in these Procedures, or posted on the City's website as a clarification update, or as authorized in writing by the City Manager or his/ her designee.

City staff and/ or the Consultant will conduct a preliminary evaluation of the applications for completeness.

Applications missing a major component ( for example, a Security Plan), will be rejected and the City will notify the Applicant by email that they have been disqualified.

For Applications missing essential information, ( for example, signatures/ dates on forms, proof of payment receipts, scanned pages in one of the scoring criteria documents, or incorrect formatting or organization of files), the primary contact will be notified by email that their application is found to be missing minor requirements. If this is the case, the Applicant may be granted five business days from the date of the email to submit the required supplemental information.

Should you receive an email from the City we ask that you confirm receipt of it immediately. If the City does not get confirmation from your primary contact within two days, it may, but is not required to, make an attempt to notify the primary contact by phone in case the email went into the recipient' s spam folder unnoticed. Please note additional time to complete the curing process will not be provided, and Applicants should monitor incoming and spam email carefully. r^
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 59 of 205 Furthermore, any additional information, other than what was requested to cure deficiencies, will not be considered. Finally, an Applicant will be notified if their application is incomplete or if there is any other reason for which they will not be moving forward in the application process.

LIMITATIONS ON MULTIPLE SUBMISSIONS
low, Applicants possessing an ownership interest of ten percent ( 10%), or more, in a retail cannabis permit application shall be limited to submitting only one application which includes retail during this application period. In addition, the City will only accept a maximum of two application Zoning Verification Letters ( ZVL) per property ( APN). Furthermore, without exception, only one retail Applicant will be issued a retail permit per location by the City Council.

CITY' S RESERVATION OF RIGHTS
The City reserves the right to reject any and/ or all applications, with or without cause or reason.

The City may modify, postpone, or cancel the request for a CCB permit without liability, obligation, or commitment to any person, party, firm, or organization. In addition, the City reserves the right to request and obtain additional information from any Applicant in order to conduct a complete review of the application or an investigation into the truthfulness of the statements set forth in the application or provided at any stage of the application process.

APPLICATION PROCESS
This application process is adopted pursuant to IMC Chapter 123. 13. Applicants are encouraged to review all information regarding the application process. Before submitting an application, Applicants should review the application in its entirety to ensure that it is complete and accurate. In addition, Applicants should regularly monitor the information regarding the Cannabis Business Permit application process on the City webpage for any additional information.

APPLICATION SUBMITTAL REQUIREMENTS
Applications must respond to all requirements outlined in the " Application Procedure and Review Criteria for a Commercial Cannabis Business Permit." Applicants must submit all required application materials together via the online submittal and payment portal to be found on the cannabis portion of the City' s website.

The application package must include all of the following documents with original signatures for each document ( where applicable).

1. Cannabis Business Permit Application;

2. Financial Responsibility, Indemnity and Consent to Inspection Terms Agreement;

3. Agreement on Limitations of City' s Liability and Indemnification to City;

4. Application fee and Background Check fee( s);

5. Property Owner Consent/ Landlord Affidavit;

6. Proof of Insurance or Letter of Insurability from the Insurance Company;

7. Proof of Capitalization;

8. Zoning Verification Letter.
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Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 60 of 205

ONLINE APPLICATION SUBMITTAL CONTENTS
All Applicants must submit one complete digital copy of the application package per the requirements as outlined in the below format. The entire application package must be received by the Community Development Department at the same time using the online submittal portal.

Please note that responses to the Evaluation Criteria, Sections A- G ( found in Appendix A of the Procedures) shall be limited to 200 pages, otherwise points will be deducted. Responses pertaining to Backgrounds, Proof of Capitalization, Zoning Verification Letter, Property Owner Consent/ Landlord Affidavit, and Business Owner Acknowledgement Form shall not be included in the 200- page limitation. Those responses should be saved in PDF files that are separate from the Evaluation Criteria ( see below). Applicant responses to the Evaluations Criteria ( Sections A- G) must be provided in the section order identified in Appendix A. Each section shall be clearly labeled, with responses provided in the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section will receive a deduction in points.

All materials must be submitted in a PDF format in the following order. Please submit the files in the correct format and organized correctly or your application may be rejected.

PDF File # 1 Cannabis Business Permit Application ( pages 1-3); Financial Responsibility, Indemnity and Consent to Inspection Terms Agreement ( pages F1-F3); Agreement on Limitations of City' s Liability and Indemnification to City ( pages F4- F6); and Property Owner Consent/ Landlord Affidavit. All copied documents shall display required signatures to be deemed complete.

PDF File # 2 Evaluation Criteria ( Responses to Sections A- G of Appendix A limited to 200 pages)
PDF File # 3 Background Check documentation ( All required documents for each owner).

Upon submission of the online background application, Applicants will receive an email confirmation. This confirmation needs to be printed, scanned, and included within PDF File # 3.

PDF File # 4 Proof of Capitalization ( Appropriate bank statements, loan documents, promissory notes, financial and commitment letters)
PDF File # 5 Zoning Verification Letter (ZVL) which shows the correct location, unit, space, or suite number in the building being used. Proof of Insurance or a letter showing proof of insurability by a qualified insurance company which shows the location being insured in City of Indio, the type of activity being insured, and the name of the business being insured. Copies from another business location in another city owned by the Applicant will not be accepted.

CRIMINAL BACKGROUND CHECK
Each Owner as defined in Chapter 123. 06 ( N) must undergo a criminal history background check to demonstrate they do not provide "good cause' for denial per IMC Chapters 123.08 and 123. 37 ( K). Owners who do not meet the criminal history eligibility requirements of Chapter 123. 37 ( K) will be disqualified. The background form can be found online at:
https:// hdIcompanies. formstack. com/ forms/ bc indio
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 61 of 205 The initial background check fee for each owner shall be $ 300. 00. This process will be required to meet the minimum threshold qualifications pursuant to IMC Chapter 123.37 ( K).

In addition, each successful Applicant will be asked to submit to a Live Scan as part of the background check as determined by the Chief of Police. Prior to being issued a permit, the Applicant' s primary contact will be notified by email with the instructions on how to schedule the Live Scan appointment.

ZONING VERIFICATION LETTER ( ZVL)
As part of a complete application packet, an Applicant must obtain a Zoning Verification Letter from the Community Development Department. To secure this letter, an Applicant must make a written request to the Community Development Department which should specify the intended use of the building, and the proposed building location. Please advise the City if you currently occupy the premises or if there is a tenant currently occupying the premises and what type of business activity is being conducted.

The issuance of a ZVL does not constitute written evidence of permission given by the City or any of its officials to operate a cannabis business, nor does it establish a " permit" within the meaning of the Permit Streamlining Act, nor does it create an entitlement under the Zoning or Building Code. A regulatory permit for a CCB does not constitute a permit that runs with the land on which the cannabis business is established.

FEES
All Applicants will be required to submit a fee of $ 10, 856. This amount will be charged against time spent by City staff and the Consultant in reviewing applications and administrating the application process. Applicants may be required to pay additional amounts, as required, for the sole purpose of the City' s completion of the application review process. Payment must be made by credit card through the online payment portal, or by mail through a certified check, cashier' s check or money order made payable to the City of Indio. Please note that payment by credit card will include a separate processing fee. Applicants paying by certified check, cashier' s check or money order must submit payment by mail to the following address:

Community Development Department
Attn: Administrative Assistant
Indio City Hall
100 Civic Center Mall
Indio, CA 92201
ro*, Payments sent by mail shall clearly indicate which application is associated with the certified check, cashier' s check or money order, and must be postmarked no later than October 6, 2022.

The City will not accept payment by cash. Application fees are non- refundable once the City has begun reviewing the application.

A separate fee for the Zoning Verification Letter ( ZVL) of $ 452 per site and a Background Check Fee of $ 300 per owner, will also be required.
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 62 of 205

SUBMITTAL DEADLINE
Applications must be received by the Community Development Department by 4:00 p.m. on October 6, 2022. Late applications will not be accepted. Furthermore, an application may be rejected for the following reasons:

1. It is not responsive to this Cannabis Business Permit application and the Application Procedure Guidelines for a Commercial Cannabis Business Permit.

2. The issuance of the Cannabis Business
comply with State law, IMC Chapter 123
159 ( Zoning Regulations).

Permit for the proposed location does not
Business Regulations) and/ or IMC Chapter

APPLICATION REVIEW, SCORING, AND APPROVAL PROCESS
PHASE I: DETERMINATION OF ELIGIBILITY
Applications will be reviewed for completeness and compliance to meet the minimum submittal requirements. The determination of eligibility will be based on the criteria outlined in these Procedures, in accordance with IMC Chapter 123. 13. These Procedures may be amended as provided in IMC Chapter 123.43, in writing, for clarification to application submittal questions which will be posted in the FAQ section of the Cannabis Information webpage and shall go into full effect immediately upon being posted on the website.

PHASE II: APPLICATION EVALUATION AND REVIEW ( 1,200 points) During Phase II, the City' s consultant will review and score each application using a merit - based system. Applicants will be scored using the following evaluation criteria identified in Appendix A:

Section A — Business Plan ( 400 points)
Section B — Labor and Employment Plan ( 400 points)
Section C — Security Plan ( 400 points)
The top applicants, as determined by the City, which score a minimum of 90% or higher ( 1, 080 points) in Phase II may be eligible to advance to Phase III. The decision as to how many applicants will be interviewed will be determined by the quantity of applicants and the overall quality the City receives. Notice of the results of Phase II will be provided in writing via email to the primary contact listed on the application.

PHASE III: INTERVIEWS ( 1,600 points)
During Phase III, a Staff Selection Committee designated by the City Manager will conduct a merit -based interview process. Applicants will be scored using the following evaluation criteria identified in in Appendix A:

Section D - Qualifications of Owners ( 400 Points)
Section E - Neighborhood Compatibility ( 400 Points)
Section F - Community Benefits and Investments Plan ( 400 Points) Section G - Proposed Site Plan ( 400 Points)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 63 of 205 Upon the completion of Phase III, the Staff Selection Committee will tabulate the scores of all Applicants from Phase III to create a preliminary ranking which will form the basis for determining who will be invited to participate in Phase IV. The ranking will be based upon the scores received through the Phase III merit -based interview process. Should there be a tie in any scoring, the Staff Selection Committee shall force rank each of the Applicants who participated in Phase III, in order to establish an eligibility list.

Prior to the tabulation of scores, the City reserves the right to request and obtain additional information from any candidate, for purposes of clarifying or validating information provided during Phase III interviews. The City Manager may review the totality of the information received, including any additional information received, to determine which applicants are authorized to participate in Phase IV.

PHASE IV: CITY COUNCIL INTERVIEWS AND FINAL DECISION
Upon the completion of Phase III, the City Manager will present to the City Council the top Applicants from the Phase III process. The City Council will interview top Applicants and make a final determination as to which Applicant( s) will be awarded a CCB permit. Each Applicant should be prepared to conduct a brief presentation in order to be interviewed by the City Council. Further details as to date, time, place, and length of presentation will be provided prior to the City Council interviews.

After the City Council has made a determination as to who if any Applicants will be awarded a CCB permit and as a condition of issuance of the regulatory permit, the operator of each cannabis facility shall enter into a Community Benefit Agreement with the City setting forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of Chapter 123. 36 ( C), including, but not limited to community benefits such as public outreach and education, community service, payment of fees and other charges as mutually agreed, and such other terms and conditions that will protect and promote the public health, safety and welfare.

In addition, any community benefits that a commercial cannabis business agrees to provide shall be incorporated into the terms and conditions under which the commercial cannabis business will operate with the City of Indio' s approval, if and when a Community Benefit Agreement is executed. Upon successfully negotiations in this phase of the process the Applicant will then be authorized to proceed to apply for any required land use permits and a business license and related approvals.

Any Applicant wishing to appeal Phase I through Phase III of the Application Process may file an appeal with the City Clerk' s Office within ten ( 10) days of the Applicant receiving a notice that they will not move forward in the application process or be issued a permit. Such appeals shall comply with the requirements of IMC Chapters 123.22 through 123.25. Any decision made by the City Council to award or not to award a cannabis permit shall be final and shall not be subject to appeal.

NOTE: Being awarded a CCB permit does not constitute a land use entitlement and does not waive or remove the requirements of applying for and receiving permits for all construction including: electrical, plumbing, fire, Community Development Department permits or reviews, and any other permits, licenses, or reviews as deemed necessary by the relevant departments or governmental entities in charge of said permits. Nor does the award of a CCB permit 7

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 64 of 205 guarantee that the plans submitted via the CCB application process meet the standards or requirements in IMC Chapter 159 or as amended and any other permit requirements from other City departments or agencies.

APPENDIX A: EVALUATION CRITERIA
The City of Indio is a public agency subject to the California Public Records Act (" CPRA"). In the event a request for information under the CPRA seeks disclosure of application materials marked by Applicant as " Confidential Information," the City will make reasonable efforts to provide notice to the Applicant prior to such disclosure to allow Applicant to seek a protective order, injunctive relief, or other appropriate remedy. If Applicant contends any designated application materials are exempt from the CPRA and wishes to prevent disclosure, it is required, at its own cost, liability, and expense to obtain a protective order, injunctive relief or other appropriate remedy from a court having jurisdiction over the matter at least two ( 2) days before City' s deadline to respond to the CPRA request. If the Applicant fails to obtain such a remedy before the deadline for the City' s response to the CPRA request, the City will disclose the requested information and shall not be liable or responsible for such disclosure.

PHASE II EVALUATION
Important Instructions:

Evaluation Criteria identified in Sections A- C will be scored based upon Applicant response. Points may be deducted for responses that fail to meet State/local regulatory requirements, or best practices for the cannabis industry.

Applicant responses to the Evaluations Criteria must be provided in the same order identified in Sections A- C below. Each section shall be clearly labeled, with responses provided within the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section will receive a deduction in points.

Any commitments made by an Applicant during the evaluation process will become terms and conditions under which the cannabis business must operate. Applicants awarded a permit that fail to meet commitments made during the evaluation process may have their cannabis business license suspended or revoked by the City.

SECTION A: BUSINESS PLAN ( 400 points)

1. Finances — Application includes a budget for construction, operations, maintenance, compensation of employees, equipment, property lease, security equipment and staff, City fees, state fees, utility costs, product purchases and other anticipated contingency costs. The budget must demonstrate sufficient capital in place to pay startup costs and at least three months of operating costs, as well as a description of the sources and uses of funds. Application must address the following:

A. Proof of capitalization, in the form of documentation of cash or other liquid assets on hand, Letters of Credit or other equivalent assets.

B. A pro forma for at least three years of operations.

C. A schedule for beginning operation, including a narrative outlining any proposed construction and improvements and a timeline for completion.

2. Daily Operations — Application describes the day- to- day operations of the proposed Retail business, which meet industry best practices. This should include, at a minimum, a description of the following criteria:

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 65 of 205 A. Customer check -in procedures.

B. Location( s) and procedures for receiving deliveries during business hours.

C. The Point -of -Sale system ( including name) to be used and how it will interact with the state' s mandated track and trace system. Identify the number of Point -of - Sales terminals to be used when the business is at full capacity.

D. The number of customers to be served per hour/ day.

E. The proposed product line, including brand names, to be sold at the business, and estimate the percentage of sales of flower and manufactured products.

F. How the Cannabis Business will conform to local and state laws. See IMC Chapters 123.38 and 159 as they pertain to retail establishments in the City of Indio.

G. How cannabis and cannabis products will be tracked and monitored to prevent diversion.

H. The proposed waste management plan, including waste disposal locations, security measures, methods of rendering all waste unusable and unrecognizable, and the vendor in charge of disposal.

SECTION B: LABOR AND EMPLOYMENT PLAN ( 400 points)

1. Collective Bargaining — Application describes to what extent the cannabis business will recognize the collective bargaining rights of employees in accordance with MMC Chapter 123. 13 ( G).

2. Number of Employees — Application identifies the number of employees at initial opening, and the maximum number of employees when the business is at full capacity.

3. Employee Responsibilities — Application identifies all positions to be employed at the proposed business, and their responsibilities.

4. Employee Benefits — Application identifies the benefits provided to employees, including health care, vacation, and medical leave, to the degree they are offered as part of employment.

5. Living Wage — Application commits to offering employees a Living Wage, as defined by the MIT Living Wage calculator ( https: Hlivingwage. mit.edu/).

SECTION C: SECURITY PLAN ( 400 points)

1. Security Plan — The Application includes a security plan that has been prepared by a Ask qualified professional. The security plan can be prepared with in-house staff or a third - party security consultant, but must clearly demonstrate that it meets the professional standards requested to receive the appropriate points for each criterion in this section.

The qualifications of the person( s) preparing the security plan must be provided, for verification that they are able to meet these standards.

2. Premises Diagram — The Application includes a Premise Diagram in the Security Plan that meets the following requirements:

A. The diagram meets all of the standards identified in Department of Cannabis Control DCR Title 4, Division 19, § 15006 Premises Diagram. tJ

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 66 of 205 B. The diagram shows the boundaries of the property and the proposed location to be licensed, showing all dimensions, entrances and exits, interior partitions, walls, rooms, windows, and doorways, and includes a brief statement or description of the principal activity to be conducted therein.

C. The diagram shows and identifies commercial cannabis activities that will take place in each area of the premises and identifies all limited -access areas.

D. The diagram shows where all cameras are located and assigns a number to each camera for identification purposes.

E. If the proposed location consists of only a portion of a property, the diagram is labeled indicating which part of the property will be used for the licensed premises and what activities will be used for the remaining property.

3. Operational Security — The Application includes a description of operational security, including but not limited to general security for access/visitor control and inventory control.

4. Cash Handling — The Application includes a description of cash handling procedures, including the process for receiving, tracking, storing and transporting cash generated by the retail business.

5. Perimeter Security — The Application includes a description of perimeter security, exterior lighting, on -site security guards, proposed guard hours and their responsibilities.

6. Employee Training and Policies — The Application includes a description of employee training and general security policies.

PHASE III EVALUATION
SECTION D: QUALIFICATION OF OWNERS ( 400 points)

1. Describe the business owner' s prior experience in owning, managing, and operating a legally permitted or licensed retail cannabis business in the United States. For purposes of this section, owner shall mean the State definition of owner in the State Business and Professions Code Section 26001.

2. Describe your overall knowledge of the cannabis industry, including identification of how industry best practices and State regulations have been incorporated in existing/ prior legal businesses outside the City of Indio.

3. Describe the involvement of the ownership team in the day- to-day operation and management of the proposed business. Owner is defined based upon the State definition of owner, see Business and Professions Code Section 26001.

4. Describe to the extent to which the cannabis business will be a locally owned enterprise.

In order to qualify for this criteria, the owner( s) must have lived in the City of Indio for at least one year prior to June 1, 2022, and collectively own greater than 50% of the proposed cannabis business. Partial points will be awarded to owner( s) that have lived in the Coachella Valley for at least one year prior to June 1, 2022, and collectively own 10

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 67 of 205 greater than 50% of the proposed cannabis business. Please refer to the following map for guidance on what constitutes the Coachella Valley:
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SECTION E: NEIGHBORHOOD COMPATIBILITY PLAN ( 400 points)

1. Describe how the business will take proactive steps to avoid becoming a nuisance or having negative impacts on its neighbors or surrounding community. Additionally, describe how the business will react and respond to complaints specifically related to noise, light, odor, public consumption, loitering, littering, and vehicle and pedestrian traffic.

2. Describe any diversity and inclusion programs that will be developed as part of the business model which embraces a rich and diverse work force with a diverse set of perspectives, work and life experiences, as well as religious and cultural differences that provide equal opportunities for employee development.

3. Describe the policies that you would implement, and how you would enforce these policies, to ensure your cannabis products do not end up in the hands of underage youth.

4. Provide a 1,000-foot radius map/ aerial- photo of the proposed location, and a narrative description of the neighborhoods and/ or business corridors immediately surrounding the proposed location.
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 68 of 205 SECTION F: COMMUNITY BENEFITS AND INVESTMENTS PLAN ( 400 points) Describe the benefits that the business will provide to the local community, for example by directly aiding, participating in, or funding the work of local non -profits, community - based organizations, civic organizations, or social services organizations. Benefits may be in the form of volunteer services, monetary donations, financial support of City -sponsored activities or organizations, in -kind donations to charitable organizations and/ or any other incentives to help achieve the strategic policy goals of the City Council.

The Community Benefits and Investment Plan should also include a description of the direct fee that will be offered to the City, expressed as a percentage of gross receipts, which will sunset upon the establishment of a local cannabis business license tax.

SECTION G: PROPOSED SITE PLAN ( 400 points)

1. Provide the following information about the existing site:

A. Physical address;
B. Narrative description of the existing site,. including building( s), parking spaces, driveways, pedestrian sidewalks/ rights- of-way,
C. Photographs of the existing property and building( s); i. Note: Photographs of building interior are not required.

D. Description of how the site is currently being used;

2. Description of any businesses currently operating on the parcel ( if any), and any parcels directly adjacent to the existing site.

3. Provide the following information about the proposed site:

A. A site plan, drawn to scale, of the proposed business showing perimeter fencing, driveways, streets, property lines, buildings, parking areas, and outdoor areas.

B. A narrative description of proposed site improvements, including facade rehabilitation, building expansion, parking, landscaping, fencing, or other exterior site improvements;
i. Note: Descriptions of interior site improvements are not a requirement of this section.

C. Visual depictions of the proposed exterior of the cannabis business. 12

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 69 of 205

CERTIFICATION
I, Sabdi Sanchez, City Clerk Administrator of the City of Indio, California, hereby certify that Resolution No. 10314 was duly and regularly adopted at a meeting of the City Council held on the 20th day of July 2022 by the following vote, to wit:

Ayes: Holmes, Miller, Mayor Pro Tern Ortiz and Mayor Fermon Noes: None
Abstain: Ramos Amith
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Indio, California, this 20th day of July 2022.

SABDI ANCHEZ, CIVIC
City Clerk Administrator
City of Indio ^,
40 OAM- h 0
A G
OF lti"\
Ct) oN"T
1

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 70 of 205 RESOLUTION NO. 10315

A RESOLUTION OF THE CITY COUNCIL THE CITY OF INDIO,

CALIFORNIA ESTABLISHING AND ADOPTING A FEE SCHEDULE FOR

THE ADMINISTRATION OF THE CITY OF INDIO CANNABIS

STOREFRONT RETAIL BUSINESS PERMIT PROGRAM AND

DETERMINING THAT THE ADOPTION OF THE FEE SCHEDULE IS

EXEMPT FROM REVIEW UNDER CEQA PURSUANT TO CEQA
GUIDELINES SECTION 15061( B)( 3)
WHEREAS, on June 27, 2017, the Medical and Adult Use Cannabis Regulation and Safety Act ( MAUCRSA) was signed into law, which provides a comprehensive regulatory framework for licensing, control, and taxation of medical and adult - use cannabis - related businesses in California; and
WHEREAS, on December 6, 2017, the City Council adopted Ordinance No. 1726 establishing Sections 159.565 through 159. 568 of the Indio Municipal Code prohibiting commercial cannabis activity in the City; and
WHEREAS, on May 18, 2022, the City Council adopted Ordinance No. 1779 amending Chapter 159 (zoning regulations) of the Indio Municipal Code to allow Cannabis Storefront Retailer and Cannabis Non - Storefront Retailer Businesses in commercial land use districts except for the neighborhood commercial zone, mixed use land use districts and on properties regulated by a specific plan or project master plan that permit commercial land uses excluding any properties designated as neighborhood commercial; amending the subchapter entitled Cannabis Activity ( 159. 565 et. seq.); and making a determination that the ordinance was exempt from review under CEQA pursuant to CEQA guidelines section 15061( b)(3); and
WHEREAS, on May 18, 2022, the City Council adopted Ordinance No. 1780 adding a new Chapter 123 entitled cannabis business activities to Title XI, Business Regulations, of the Indio Municipal Code to regulate commercial cannabis uses in the city; and
WHEREAS, pursuant to the provisions of the California Constitution and the laws of the State of California, the City of Indio is authorized to adopt and implement rates, fees, and charges for municipal services; provided, however, that such rates, fees, and/ or charges do not exceed the estimated reasonable cost of providing such services; and WHEREAS, the City Council of the City of Indio has heretofore established various schedules of rates, fees, and charges for services provided by the City; and WHEREAS, California Government Code Section 66016 requires notice to be given and data made available at specified times prior to the adoption of increases in existing rates, fees, and charges, or the adoption of new rates, fees, and charges for use permits and building inspections sometime hereinafter at a public meeting of the City Council; and
1-

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 71 of 205 WHEREAS, California Government Code Section 66018 requires notice to be published in accordance with California Government Code Section 6062a and data made available concerning rates, fees, and charges prior to conducting a public hearing with respect to the adoption of increases in rates, fees, and charges, or the adoption of new rates, fees, and charges for which no other procedure is provided by law; and WHEREAS, on August 3, 2022, the City of Indio published a public hearing notice in the Desert Sun, a newspaper of record with respect to the adoption of new cannabis related rates, fees and charges; and,
WHEREAS, pursuant to California Government Code Section 66016, the City Council has held at least one public hearing on August 17, 2022 and received oral and written presentations there at with respect to the rates, fees and charges described herein prior to the adoption of this Resolution; and
WHEREAS, pursuant to California Government Code Section 66018, the City Council has conducted and concluded a duly noticed public hearing on August 17, 2022 with respect to the rates, fees, and charges prior to the adoption of this Resolution; and WHEREAS, City staff supported by a qualified consultant have analyzed the cost of providing permitting and other services related to the administration of the City's Cannabis Storefront Retail Business Permit Program; and WHEREAS, the City Council desires to establish fees associated with the review of applications for all cannabis businesses authorized by the City of Indio as set forth herein; and
WHEREAS, all legal prerequisites to the adoption of this Resolution have occurred; and
WHEREAS, the City Council has determined that the fee schedule for the administration of the City' s Cannabis Business Permit Program is reasonable in that the fees seek to recover the costs incurred by the City related to the permitting and other services for the administration of this Program.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF IND1O,
CALIFORNIA, HEREBY RESOLVES, FINDS AND DETERMINES AS FOLLOWS:

Section 1. The City Council hereby specifically finds that all of the facts set forth in the recitals of this Resolution are true and correct and are incorporated herein.

Section 2. The City Council hereby finds and determines that based upon the data, information, analysis, oral and written documentation presented to the City Council concerning the rates, fees, and charges described hereto do not exceed the established reasonable cost of providing the service for which the rates, fees, or charges are levied.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 72 of 205 Section 3. The rates, fees, and charges set forth below, are hereby adopted and approved as the rates, fees, and charges for the services identified for each such rate, fee, and/or charge inclusive of the City's 3.64 percent technology fee:

Section 4. The City Council finds that the adoption of fees for the administration of the City of Indio Cannabis Business Permit Program is exempt from the California Environmental Quality Act ( CEQA) pursuant to Section 15061( b)( 3) of the CEQA Guidelines. The City Council previously adopted Ordinance No. 1779 governing the locations of storefront cannabis retail, non - storefront cannabis retail and cannabis delivery. The City Council also approved Ordinance No. 1780 that regulates the operation of storefront cannabis retail, non -storefront cannabis retail and cannabis delivery in the City. The adoption of the aforementioned fees will allow the City to recover reasonable and appropriate fees based on fee studies for the permitting and administration of the Cannabis Business Permit Program. Therefore, the adoption of said fees is covered by the common sense exemption in that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Accordingly, the City Council finds the adoption of said fees exempt from CEQA pursuant to Section 15061( b)( 3) of the CEQA Guidelines.
ro*
Section 5. This Resolution shall take effect upon its adoption.

Section 6. The City Clerk shall certify to the passage, approval, and adoption of this Resolution.
3

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 73 of 205

PASSED, APPROVED AND
ATTEST:

CYNTHIA HERNAADEZ, CMC

CITY CLERK
ADOPTE his
WAYM N[
MAYOK
August, 2022.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 74 of 205

CERTIFICATION
I, Sabdi Sanchez, City Clerk Administrator of the City of Indio, California, hereby certify that Resolution No. 10315 was duly and regularly adopted at a meeting of the City Council held on the 17th day of August 2022 by the following vote, to wit:

Ayes: Holmes, Miller, Ramos Amith, Mayor Pro Tern Ortiz and Mayor Fermon Noes: None
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Indio, California, this 17th day of August 2022.

SABDI SANCHEZ, CIVIC
City Clerk Administrator.

City of Indio
1

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 75 of 205

IIINIDIIO
httgsj/www.indie.org/departments/community-deveIogment-degartment/cannabis [email protected]
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takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023CNCVenture,LLCdbaSPARCc/0JatinderSingh81971IndioBoulevardIndio,CA92201RE:NotificationofIndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearJatinderSingh:TheCityofIndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,399points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25oftheIndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, BryanH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulations 9100CivicCenterMall,Indio,CA92201760-391-4000Indio-org @cityofindio

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=.'.||.___;:l_'E.'=';.‘:-":"£"'..."::"-.."':|:"!"E|Ein?-.'-T3.‘-'».""E appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 77 of 205 "-'-*"?*E-"-u"':_-_g="""£__.L':'-.:-.-:|~.n.1:_'‘-I-"'l'.'.-I".-:Z"..n-'.'fE':|.$3 :.-.=-.*::::':r_:«=&:.1*.:r.-.*-
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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshall‘notinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 78 of 205 httgs://www.indio.org/degartments/community-development-degartmentlcannabis [email protected]
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takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023CultureCClndio,Inc.dbaCultureCannabisClubcloDevonJulian1CorporateParkSuite112Irvine,CA92606RE:NotificationofCompletionoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearDevonJulian:TheCityiflndiowouldliketotakethisopportunitytocongratulateyouonsuccessfullycompletingPhaseIIIoftheCommercialCannabisBusinessPermitprocess.AttheconclusionoftheInterviewPhase,yourapplicationreceivedatotalscoreof1,528points.Yourscoreplacesyouasoneofthetopfive(5)applicationswhowillbeadvancingtoPhaseIVoftheapplicationprocess.YoumayviewthescoresforallapplicantsontheCity'scannabiswebpagelocatedatbeginningonMarch10,2023.DuringPhaseIV ,theCityManagerwillpresenttotheCityCouncilthetopApplicantsforthePhaseIIIprocess.EachapplicantwillbeallowedtomakeabriefpresentationtotheCityCouncilpriortoitsfinalawarddeterminationofaCityCommercialCannabisBusinesspermit.Furtherdetailsastodate,time,placeandlengthofyourpresentationwillbeprovidedinaseparatelettertofollow.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaselllresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailto Sincerely,
B MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterMall,Indio,CA92201{E760-391-4000Indio.org @cityofindio

AGENDA ITEM #3.1
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appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationa|businessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 80 of 205 :._:"'."".'p.:.‘.‘..'=..--..—-"'' '“"'=I-1'-"-'.a‘=l:h'_il-'l-??l?lt_ .5-*-IIE-"-:-.=:.='-..*.,:'..n-=5.--.*.-..5 -'"""""":".‘.-.."""..—..*$p In -r I '— "" '
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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 81 of 205 httgs://www.indio.org/deganmentslcommunity-develogment-depanment/cannabis [email protected]
.‘M
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023EverestGJN,LLCc/oManpreetKaurGill1421MartinLutherKingJr.DriveOxnard,CA93030RE:NotificationoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearManpreetKaurGill:TheCityoflndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,356points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, BryanH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterMall,Indio,CA92201760-391-4000Indi0.0rg @cityofindio

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 82 of 205 -I-I-I-I'I-:'-III-1.-I4--'—-IJIIIEI-I-I- _."'?n‘
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appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationa|businessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 83 of 205 -2'-.....*--=.':='.:.:-.'::¢I;:.'...m-.-..:...'.".#I-1.:p.II.;-'-nu-. I |
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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 84 of 205 hugs://vvww.indio.org/degartments/community-develogment-degartment/cannabis [email protected]
@W*W*‘9Er3Bryan
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023FargoFarms,LLCc/oDeanaTonantzinDeAzt|an80980VistaBonitaTrailLaQuinta,CA92253RE:NotificationoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearDeanaTonantzinDeAzt|an:TheCityoflndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,294points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, H.MontgomeryCityManagerBHM/khsAttachment:AppendixA——AppealRegulationscc:Fi|e 9100CivicCenterMall,Indio,CA922019.2760-391-4000Indio.org @cityofindiof Inlli

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 85 of 205 -- ..i-::':.'::—:.:'.=.-.-*--'--*'"-I.I-H-I-Ir H'-
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appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 86 of 205 :;‘:1EE ?§1"""""-""....-...|-._-_._'~:I|_?_-_-_li?."_':'-'.E.'?1 ?.."—"'Ea".'-':-_***-=.-1=..:.":—.‘:.‘-2::-='=«W
(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 87 of 205 https://www.indio.on?denartments/communitv-deve|opment-department/cannabis [email protected]
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takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023lndioCC,LLCdbaSensindiocloChristopherMartinez81350RiverlaneDriveIndio,CA92201RE:NotificationoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearChristopherMartinez:TheCityoflndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,401points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, BryanH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulations 9100CivicCenterMa||,Indio,CA92201760-391-4000Indio.org @<:ityofindi0

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 88 of 205 ?t? -I-Ilr;;_r.-?I—-T!
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1 II.. I""?"'-'—-'-l-I-I'-.'|E-.I'fI-I--I-I—- I I: If'|'H"'-'l-1-‘- appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon-operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 89 of 205 u' III -'-II—:-I-q I'H-'I-I'HZ"'l'."l'h-'I'-‘*“?£W¥.-|.|_| J-—-.I-.I-II-T .'b'.I-I-r
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 90 of 205 IlNlD||U|
httgs://www.indio.orgldegartments/comrnunity—develogmen:-degartmentlcannabis [email protected]
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takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023IndioGreenery,LLCc/oNaomiMorales43635CalleEsapdaLaQuinta,CA92253RE:NotificationofIndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearNaomiMorales:TheCityofIndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,196points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25oftheIndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix"A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, BryanMontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterMall,Indio,CA92201760-391-4000Indio.org @cityo?ndio

AGENDA ITEM #3.1
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appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationa|businessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 92 of 205 £E"l?'--'"“..'E'I"".:.E'%.I*._"‘-‘!i=E"""JFF-u.+.""' ?
1| I.—-.1-..-In -I- I-'|-I-a-'l-'I'-I'll-—-'I.£'I—I-'I I. I-'-I-I-1.1.-.-I'I-|'I"'I' 'jl'Ii-Zfuhh F'''''''-13-. rl-.|.l-|.||.I.:.—.—.l| I-I-I-r_:-?t -H I"'“-II I .E (E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.’(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 93 of 205

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https://www.indio.orq/departments/communitv-development-denartmentlcannabis cannabis@|ndio.org
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takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023lndioResponsible&CompliantRetail,LLCdbaEmbarclndiocloLaurenCarpenter1616WebsterStreetAlameda,CA94501RE:NotificationofCompletionoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearLaurenCarpenter:TheCityiflndiowouldliketotakethisopportunitytocongratulateyouonsuccessfullycompletingPhaseIIIoftheCommercialCannabisBusinessPermitprocess.AttheconclusionoftheInterviewPhase,yourapplicationreceivedatotalscoreof1,519points.Yourscoreplacesyouasoneofthetopfive(5)applicationswhowillbeadvancingtoPhaseIVoftheapplicationprocess.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.DuringPhaseIV ,theCityManagerwillpresenttotheCityCouncilthetopApplicantsforthePhaseIIIprocess.EachapplicantwillbeallowedtomakeabriefpresentationtotheCityCouncilpriortoitsfinalawarddeterminationofaCityCommercialCannabisBusinesspermit.Furtherdetailsastodate,time,placeandlengthofyourpresentationwillbeprovidedinaseparatelettertofollow.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A"attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailto Sincerely,
H.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulations 9100CivicCenterMill,Incilio,CA92201 @dtyO?ndiOf in’DV)760-391-4000=55;IndI0.org

AGENDA ITEM #3.1
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appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon-operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 95 of 205 i‘:*.'i.‘~:=':T'.i‘*.3:."-"-.'.'.-'E.. ."5-.=.+-""3.a.':.7::::*.'_:":.1:':i:I.';:.:=u'"'".=-tr. ...-..._M-5-' "Ir:=.E§'r;£w:.m'.:.-75-ya;Er-|.rjrI.-I——.-I.-I.-11-I'hh'fFl"I"I.

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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 96 of 205 hugs://www.indio.org/degartments/community-develogment-degartmentlcannabis [email protected]
3'ssr~**%w?
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023IndioWestCoastRetail,LLCdbaWestCoastCannabisClubc/oKennethChurchill42650MelaniePlacePalmDesert,CA92211RE:NotificationofCompletionofIndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearKennethChurchill:TheCityifIndiowouldliketotakethisopportunitytocongratulateyouonsuccessfullycompletingPhaseIIIoftheCommercialCannabisBusinessPermitprocess.AttheconclusionoftheInterviewPhase,yourapplicationreceivedatotalscoreof1,523points.Yourscoreplacesyouasoneofthetopfive(5)applicationswhowillbeadvancingtoPhaseIVoftheapplicationprocess.YoumayviewthescoresforallapplicantsontheCity'scannabiswebpagelocatedatbeginningonMarch10,2023.DuringPhaseIV ,theCityManagerwillpresenttotheCityCouncilthetopApplicantsforthePhaseIIIprocess.EachapplicantwillbeallowedtomakeabriefpresentationtotheCityCouncilpriortoitsfinalawarddeterminationofaCityCommercialCannabisBusinesspermit.Furtherdetailsastodate,time,placeandlengthofyourpresentationwillbeprovidedinaseparatelettertofollow.Sections123.22,123.23,123.24and123.25oftheIndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailto Sincerely,
BH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterMall,Indio,CA92201760-391-4000Indio.org @cityofindio

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 97 of 205 #1?‘-I.HTI HZ‘-:'IHI'L I"-VF-'-'-'
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£E‘“"“.;::;.::. ===-*="-*--=-'...a.."¥."""..'."".?rI'..Ei'.'=E'!iI"‘rr‘L"=E‘-=3‘:-la:H"'I ?'IuFIL|'I.E!"mi-.-I-jun -J. j " '-‘I’
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II-II-:1--:I-luul.:IuIIm.r.-III-'I'--"'F'|-I-I-I-‘IF- 1 '3-F-I-E1-?-U-II.-rH?u ?.l-'.:-lpI—— I I: ?H"—H3 ''I''-'- U appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationa|businessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 98 of 205 ".-:'3"".ri.*.'E.':.."'i'E'.'"*.".""'"":'-F‘
:.*.,-.-.:!_2-,_.-_=.-g%=m:ar.':.'..'=1'..=:..."'-31$." .::==._-1*.=.--73.1‘:r_':.':::_.'_'''_''"*
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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 99 of 205

IIINIDIIO
httgs://www.indie.org/degartrnents/community-develogment-department/cannabis [email protected]
$@w@7M§57g
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023NebrinaIndio,LLCc/oBrandonBanks1940BlakeStreet#201Denver,CO80202RE:NotificationofIndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearBrandonBanks:TheCityofIndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,405points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25oftheIndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, BryanH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterM-a‘||,In0io,CA92201 @CityO?ndiOf in3'3Q760-391-4000IndIo.org

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 100 of 205 j-I-I'rI1f—Eda ‘I-I-I-"'-Ir.l—.r.I I.-I.-I.-—I.r 1|;-I; HFf I '-E.-I-4'--I-H-I?rl-I-I-IIIla —-I.l—-r.-.p.|-|.q-I a.|.I.I-q-.IJ r I-?-?'|-I-—--"-I-I-'--rjfl'I-'j"—|'l'.-PI — IllI‘ --jlaq .|I.l|.I.j'h- -P13-El-EInihj-.'II' '-"-5'-In
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._p-.'=‘1I'I.‘.”:'I'."E':'i-r*F=1"—L'u“}a'i':f“£a‘h'-'1'.-5|‘! appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon-operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 101 of 205 &'.':z.""~r:“'
" ' ""."..-"L".'L=_"!h.'i'..."I..'|EEi&.+'J|.q.-.-:.+"“'a-'5"Flhllll-".'I'" (E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 102 of 205 https://www.indio.orq/departments/cornmunitvvdevelopmenhdepanmentlcannabis [email protected]
ewmw
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023OTClndio,LLCc/oSeanMaddocks23CorporatePlazaDrive#150NewportBeach,CA92660RE:NotificationofCompletionoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearSeanMaddocks:TheCityiflndiowouldliketotakethisopportunitytocongratulateyouonsuccessfullycompletingPhaseIIIoftheCommercialCannabisBusinessPermitprocess.AttheconclusionoftheInterviewPhase,yourapplicationreceivedatotalscoreof1,461points.Yourscoreplacesyouasoneofthetopfive(5)applicationswhowillbeadvancingtoPhaseIVoftheapplicationprocess.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.DuringPhaseIV ,theCityManagerwillpresenttotheCityCouncilthetopApplicantsforthePhaseIIIprocess.EachapplicantwillbeallowedtomakeabriefpresentationtotheCityCouncilpriortoitsfinalawarddeterminationofaCityCommercialCannabisBusinesspermit.Furtherdetailsastodate,time,placeandlengthofyourpresentationwillbeprovidedinaseparatelettertofollow.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailto Sincerely,
BryanH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterMall,Indio,CA92201760-391-4000Indio.org @cityofindio

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 103 of 205 -._.-"—'.‘E"...._-"'-'.'.".'-.E:'.|'..':l:'i.‘.-““*'*""‘ -I--I.-I-IJrH'I'hI -IJ'?i.-I ‘'33
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"_':r:='=::..""'::."g.."i::«==""'.-.-»'“'Ew II-—'I PHI‘- n=!131-. Ilb M I-I"I-'Ifiln?ll?I'|"'II'J'I'-I'|'|. I '-—-"'-'.""H'-'--i-fp-I-I.lI.r—J.—.l-J rl. 1-I-in--I-.F-l-'l|7u—II|i'i-I II-n-IrII'-'I--I'.'—-I.I'—.IJI'-....'E.‘."EI:l"E.1 =1‘H.‘-“-'-'.-'|'..'l'-=ir‘I.'-'-'1 appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationa|businessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 104 of 205 :,3=_5‘..-"F.§i=%‘F'...-...’*":'.'*:1‘:"'.."”£':‘f'='
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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 105 of 205

IINDIIO
hugs://wwwjndio.org/degartments/community-deveIogment-department/cannabis [email protected]
30°“MBryanH.
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023RDxCatalyst— lndio,LLCc/oDamianMartin6700PacificCoastHighwaySuite201LongBeach,CA90803RE:NotificationoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearDamianMartin:TheCityoflndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,440points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulations 9100CivicCenterMall,Indio,CA92201760-391-4000Indio.org @cityofindi0

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 106 of 205 IIII-I.l *'jIIhZ.IF“n_-I+H—
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appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon-operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathafadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 107 of 205 .:.:-=.-::g._:_j-;_::_1;.-.*.-:-5§!..~'-* '-*;_.__'-.'=~ I-I'|'l-I“:-IfI'.-I-I —|.—l-.__.._l_.,_..|m._.I:I|...:1.-.r:.~..%E'!i.l:I?; ’—"~'.*.‘.'.:-'."..'."'."'-'*'.-..'-*.L".i*'..E:."'*"-_-:.=I:-.a::- "
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AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 108 of 205 httgs://www.indio.org/degartmentslcommunity—develogment-deganmentlcannabis [email protected]
Mm
Bryan
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023ReeferMadness,LLCcloStevenWijatyk4693RamonRoadPalmSprings,CA92264RE:NotificationofIndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearStevenWijatyk:TheCityofIndioregretstoinformyouthatyourCommercialCannabisBusinessApplicationwillnotbeadvancingtoPhaseIVoftheapplicationprocess.AttheconclusionofthePhaseIIIinterviews,yourApplicationreceivedatotalscoreof1,333points,whichdoesnotplaceyouinthetopfive(5)applicationsbeingpresentedtoCityCouncil.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.Sections123.22,123.23,123.24and123.25oftheIndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailtoSincerely, MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulations 9100CivicCenterMall,Indio,CA92201760-391-4000Indio.org @<:ityofindio

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 109 of 205 '.":.‘."'J."'.%:'ir'.-.-=1:-.’"I."-'""'-"
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?1."'E.'E.:-."'-E-.-"'-2!:-""1"-.'I'.."'.."n."‘1"='.:':"';"?'H'£.1'-u.'i| appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationalbusinessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 110 of 205 (E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 111 of 205 hugs:/Iwww.India.org/degartmems/community-development-degartment/cannabis [email protected]
takecenterstageSENTREGULARANDCERTIFIEDMAILMarch10,2023Shrynelndio,LLCc/oTakSato2001S.AlamedaStreetLosAngeles,CA90058RE:NotificationofCompletionoflndioCommercialCannabisBusinessPermitPhaseIIIApplicationReviewsDearTakSato:TheCityiflndiowouldliketotakethisopportunitytocongratulateyouonsuccessfullycompletingPhaseIIIoftheCommercialCannabisBusinessPermitprocess.AttheconclusionoftheInterviewPhase,yourapplicationreceivedatotalscoreof1,568points.Yourscoreplacesyouasoneofthetopfive(5)applicationswhowillbeadvancingtoPhaseIVoftheapplicationprocess.YoumayviewthescoresforallapplicantsontheCity’scannabiswebpagelocatedatbeginningonMarch10,2023.DuringPhaseIV ,theCityManagerwillpresenttotheCityCouncilthetopApplicantsforthePhaseIIIprocess.EachapplicantwillbeallowedtomakeabriefpresentationtotheCityCouncilpriortoitsfinalawarddeterminationofaCityCommercialCannabisBusinesspermit.Furtherdetailsastodate,time,placeandlengthofyourpresentationwillbeprovidedinaseparatelettertofollow.Sections123.22,123.23,123.24and123.25ofthelndioMunicipalCodespecifytheappealprocessesandproceduresintheeventthatyouwishtoappealthePhaseIIIresultspertainingtoyourapplication.PleaserefertoAppendix“A”attachedtothisletterfortheseSections.PleasenotethattheCityCouncilestablishedbyadoptionofResolutionNo.101315onAugust17,2022anappealfeeof$3,632.58thatmustbepaidatthetimeofappealsubmittal.IfyouhaveanyquestionsoradditionalinformationneedsregardingthePhaseIIIprocess,pleasesubmityourquestionsbyemailto Sincerely,
nH.MontgomeryCityManagerBHM/khsAttachment:AppendixA— AppealRegulationscc:Fi|e 9100CivicCenterM‘a‘||,In<?1io,CA92201 @Cityo?ndi0f in,a760-391-4000IndIo.org

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 112 of 205 3-11.;-j.I.p.-In 5H?*j—nwi I. IT“
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.1 I.-I.—I.-|..l -.|.l-I.- b"I'l'h'I"l'-‘E1-J‘bl-E ‘H--i.'|.'|b2-.— I‘ IJE—'I-'-'-"I-"H£1-' appointedhearingofficer.Noticesofappealnotservedinatimelymannerorservedbynon—operationa|businessshallnotservetoallowsuchbusinesstooperatependingappeal.(E)Ifnoappealistimelyfiledintheeventofadecisionofnonrenewal,thecannabisbusinessespermitshallexpireattheconclusionofthetermofthepermit.Ifnoappealistimelyfiledintheeventofadecisionsupportingsuspensionorrevocation,thesuspensionorrevocationshallbecomeeffectiveupontheexpirationoftheperiodforfilingawrittennoticeofappeal.(Ord.1780,passed6-1-22) (A)Denialofapplicationpriortofinaldecisionprocess.TheCityManager,oranappointedhearingofficer,assetforthbyCityCouncilresolution,willhearappealsthataddressthefollowingissues:(1)Anydeviationfromthecity'spublishedprocedureguidelinesandreviewcriteriathatadverselyaffectedtheapplicantbyalteringtheoutcomeofthecity'sdecisionontheapplication.Examplesofappealabledeviationsinclude,butarenotlimitedto:(a)Failureonthepartofthecitytoprovideappropriatenotificationregardingchangestotheapplicationprocessviawebsitepostingsand/oremailtotheapplicantpriortothetimetheapplicationwassubmitted;(b)Failureonthepartofthecitytoprovideanapplicantanequalopportunitytomodifyanapplicationwherethatopportunitywasprovidedtootherapplicants;(c)Failureonthepartofthecitytocorrectlyapplythereviewcriteria,asestablishedbyCityCouncilresolution,inreviewingtheapplication;(2)Anyappealbaseduponthissectionmustbesupportedbyapreponderanceoftheevidencethattheapplicantpresentedtherelevantinformationwithcompletenessandintheappropriatesectionoftheapplication.Informationpresentedintheapplicationthatisincompleteinnatureorthatisrelevanttoaquestionposedbythecityontheapplicationformbutappearsintheincorrectsection,evenifcomplete,maybegroundsforthedismissaloftheappeal.(B)Allotherappeals.TheCityCouncil,oranappointedhearingofficerorbody,assetforthbyCityCouncilresolution,shallhearappealsrelatingthedenialofarenewedapplication,revocation,suspensionormodificationapermit,oradditionofconditionstoapermit.(C)Notwithstandingdivision(A)(1)ofthissection,anapplicantthatiseligibletoparticipateinthefinalselectionprocess,assetforthintheprocedureguidelinesandreviewcriteria,butisnotselectedduringthefinalselectionprocess,shallnotbeeligibletoappealtheoutcomeoftheprocess.(Ord.1780,passed6-1-22) (A)ReviewbyCityCouncil,CityManager,appointedhearingofficerorbody.(1)AppellantswhofileatimelywrittennoticeofappealwillbeentitledtoanadministrativehearingbeforetheCityCouncil,CityManager,hearingofficerorbody,assetforthbytheCityCouncilby §123.24APPOINTMENTANDSCOPEOFHEARINGOFFICERORBODY .
§123.25APPEALHEARINGPROCESSANDPROCEEDINGS.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 113 of 205 _&~1?-"-3'_.‘"'.':'."_‘.':.-.'=-.".".'_'?.H-—h "'3?-'lrl--I 1-— I.

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(E)Finaldecision.Followingtheconclusionofthehearing,theCityCouncil,CityManager,appointedhearingofficerorbodyshallissueawrittendecisionwithin20dayswhich(i)determinesiftheactionappealedfromisaffirmedoroverturnedand(ii)specifiesthereasonsforthedecision.(F)ThewrittendecisionoftheCityCouncil,CityManager,appointedhearingofficerorbodyshallprovidethatitisfinalandconclusiveandissubjecttothetimelimitssetforthinCaliforniaCodeofCivilProcedureSection1094.6forjudicialreview.(G)Acopyofthewrittendecisionshallbeservedbycertified,firstclassmailontheappellant.Iftheappellantisnottheowneroftherealpropertyinwhichthecannabisbusinessislocated,orproposedtobelocated,acopyofthefinaldecisionmayalsobeservedonthepropertyownerbyfirstclassmailtotheaddressshownonthelastequalizedassessmentroll.Failureofapersontoreceiveaproperlyaddressedfinaldecisionshallnotinvalidateanyactionorproceedingbythecitypursuanttothischapter.(Ord.1780,passed6-1-22)

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 114 of 205

G. Ross Trindle, III
[email protected]
(951) 241-7338
3880 Lemon Street, Suite 520
Riverside, CA 92501
P (951) 241-7338
F (951) 300-0985

01414.0001/889643.1
May 11, 2023
VIA E-MAIL AND U.S. MAIL

Robert A. Bernheimer, Esq.

Robert A. Bernheimer, Inc.
45025 Manitou Drive
Indian Wells, CA 92210-9068
E-Mail: [email protected]
Kevin Snyder, AICP
Director of Community Development
City of Indio
100 Civic Center Mall
Indio, CA 92201
E-Mail: [email protected]
Re: CNC, LLC dba SPARC - Hearing Officer Decision and Opinion on Cannabis Business Permit Administrative Hearing Appeal

Dear Applicant and City of Indio:

On April 18, 2023, at 9:30 a.m., an administrative appeal hearing took place before the undersigned Hearing Officer, requested by CNC, LLC dba SPARC (“Applicant”), challenging the decision of the City of Indio to deny advancement of Applicant from Phase III (Interviews) to the final selection process of the City Council for possible issuance of a cannabis business permit, pursuant to Indio Municipal Code (“IMC”) 123.25(E). At the conclusion of the hearing, the matter was taken under submission.

Having duly considered the evidence, the undersigned Hearing Officer has reached a determination and this correspondence represents the final decision and opinion of the Hearing Officer regarding the appeal of Applicant.

Pursuant to IMC 123.25(F), this written decision is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure section 1094.6 for judicial review.

ADMINISTRATIVE APPEAL DECISION
The decision of the City of Indio to deny advancement of CNC, LLC dba SPARC to the final selection process of the City Council is: AFFIRMED.

HEARING OFFICER OPINION
I. Appointment of Hearing Officer
The undersigned hearing officer was appointed by the City Council pursuant to Resolution 10377.

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 115 of 205

Robert A. Bernheimer, Esq.

Kevin Snyder, AICP
May 11, 2023

01414.0001/889643.1
II. Timeliness of Appeal
On March 10, 2023, the City of Indio served “Notification of Indio Commercial Cannabis Permit Phase III Application Reviews.” (Exhibit 10). On March 20, 2023, Applicant submitted “Notice of Appeal – City of Indio Cannabis Business Permit Phase III.” (Exhibit 11). On March 21, 2023, Applicant paid the appeal fee of $3,632.58. (Exhibit 12).

Pursuant to IMC 123.23(A), any appeal of a decision to deny advancement to the final selection process must be made within ten calendar days after service of the notice of decision. The date of service means “the date when a notice or written decision was personally delivered to the applicant or permittee or the date when the notice was caused to be delivered by certified, first class mail.” (Ibid.).

Accordingly, Applicant’s Appeal is timely.

III. Scope of Appeal
Pursuant to IMC 123.24(A), an appeal of the denial of application prior to final decision process is limited to the following issues:
 Any deviation from the city’s published procedure guidelines and review criteria that adversely affected the applicant by altering the outcome of the city's decision on the application. Examples of appealable deviations include, but are not limited to:
 Failure on the part of the city to provide appropriate notification regarding changes to the application process via website postings and/or email to the applicant prior to the time the application was submitted;  Failure on the part of the city to provide an applicant an equal opportunity to modify an application where that opportunity was provided to other applicants;
 Failure on the part of the city to correctly apply the review criteria, as established by City Council resolution, in reviewing the application[.] IV. Standard of Review
Pursuant to IMC 123.25(C)(3), the “city’s notice constitutes prima facie evidence of [the] grounds for the denial . . .” Further, the Applicant “bear[s] the burden of proof regarding . . . denial of advancement to the final selection process established by the City Council.” Finally, pursuant to IMC 123.24(A)(2), any appeal regarding denial of application prior to the final

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 116 of 205

Robert A. Bernheimer, Esq.

Kevin Snyder, AICP
May 11, 2023

01414.0001/889643.1
decision process “must be supported by a preponderance of the evidence that the applicant presented relevant information with completeness and in the appropriate section of the application.” Further, “[i]nformation presented in the application that is incomplete in nature or that is relevant to a question posed by the city on the application form but appears in the incorrect section, even if complete, may be grounds for the dismissal of the appeal.” (Ibid.) Accordingly, in order to overturn the challenged decision, Applicant bears the burden of proof to demonstrate by a preponderance of the evidence that: (1) the application submitted included complete, relevant information, in the appropriate section; (2) at least one “deviation from the city’s published procedure guidelines and review criteria;” and (3) “that adversely affected the applicant by altering the outcome of the city’s decision on the application,” as set forth in IMC 123.24(A). All three elements must be supported, otherwise the challenged decision will be affirmed.

V. Basis of Written Appeal
Applicant appealed “the final scoring upon completion of Phase III Interview Process,” and “specifically question[ed] the outcome of the scoring as it relates to the Community Benefits and Investments Plan Fee.” Applicant also challenged “the decision to only present 5 applications to the Council.” (Exhibit 10, p. 1).

Arguing in support of overturning the decision, Applicant noted that “CNC scored in the top three (3) of applicants with a perfect score.” (Exhibit 10, p. 2). However, after the interview process of Phase III, “the ranking . . . dropped significantly,” which Applicant “attributed to the Community Benefits and Investments Plan Fee.” (Ibid.). Applicant received 40 out of 200 possible points for the subcategory. Further, if Applicant had received the full 200 points as all other applicants did, Applicant would have placed in the top 5, making Applicant eligible for consideration by the City Council for issuance of a cannabis business permit. (Ibid.).

Applicant stated that the score of 40/200 resulted from “either a clear misunderstanding of what this section of scoring relates to . . . or there is an error in processing.” (Ibid.). Additionally, Applicant argues that “this one category is not about the true qualifications of the project, team or application [but r]ather it seems to be an interim fee that might be paid until a cannabis tax is implemented by the city.” (Ibid.). Accordingly, Applicant argued that it should not be “penalized so dramatically that its clearly superior application in all other categories is destroyed by a category that will only be applied temporarily.” (Ibid.). Applicant asserts that it was “one of the most qualified applicants in this process.” (Ibid.).

Finally, Applicant challenged “the decision to present only 5 applicants to City Council for 5 possible Cannabis Business permits,” arguing that doing so “deprives the Council and the public of meaningful input into the selection process.” (Ibid.).

AGENDA ITEM #3.1
Award and Issuance of City of Indio Cannabis Storefront Retail Business ... Page 117 of 205

Robert A. Bernheimer, Esq.

Kevin Snyder, AICP
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Pursuant to IMC 123.23(A), appeals of a denial of an application prior to the final decision process must state the reasons for the appeal “with specificity and shall address the issues outlined in § 123.24(A).”
As a threshold matter, the Hearing Officer finds the written appeal in compliance with the requirements of the IMC as stated.

VI. Additional Documents Submitted as Evidence
Due to an administrative error, neither Applicant nor the City received the briefing schedule established by the Hearing Officer. After commencement of the administrative hearing, non- receipt of the briefing schedule was brought to the attention of the Hearing Officer by counsel for Applicant and confirmed by representatives of the City.

Thereafter, Applicant submitted additional written evidence, to wit, the attached Exhibits 1-7.

The City submitted additional written evidence, to wit, the attached Exhibits 8 and 9. Exhibit 10 comprises the written appeal of Applicant, and Exhibit 11 is appeal payment receipt, both submitted to the Hearing Officer prior to the administrative hearing. All Exhibits were accepted and considered by the Hearing Officer pursuant to IMC 123.25(C)(4); good cause existed for both parties on the basis of the administrative error that prevented transmittal of the briefing schedule.

Information, evidence, and argument on behalf of Applicant was provided by Robert A.

Bernheimer, Esq.

Information, evidence, and argument on behalf of the City was provided by Director of Community Development, Kevin Snyder, AICP, and Michael Eaton of HdL, the City’s contractor for administration of the cannabis business permit program.

Pursuant to IMC 123.25(C)(6), prior to scheduling of the administrative hearing, the City elected to record the proceedings via court reporter. The Hearing Officer accepted and considered a certified copy of the transcript of the proceedings in reaching the determination set forth herein.

VII. Applicant’s Arguments at the Administrative Hearing Applicant’s counsel raised three primary arguments at the administrative hearing to support overturning the City’s decision not to advance Applicant out of Phase III:

1. The Community Benefits Fee represents an illegal “tax” that should be invalidated and all scores in the category should be disregarded for all applicants. (Exhibit 2); and

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2. The City improperly divided the Community Benefits and Inves tments Plan from a single criterion worth 400 points, into two criteria worth 200 points each, and applied an unknown scoring metric correlated to percentages of direct payment based on gross receipts. (Transcript, 24:6-17; 38:9-15; 57:7-23); and

3. Applicant agreed in the oral interview to providing 8% of gr oss receipts, which should have entitled to them to the full 200 points. The initial attestation form (Exhibit 5), received edits from the Applicant because Applicant believed it would be penalized or disqualified for attesting to information potentially inconsistent with the submitted Application. (Transcript, 42:2-13; 58:9-22). Once the scoring issue for the direct payment portion of the Community Benefits and Investments Plan became apparent, Applicant submitted a “corrected”—and admittedly untimely—revised attestation for 8% of gross receipts. (Exhibit 4).

Applicant wishes to “stand by what we said in the oral interview process,” i.e., 8% of gross receipts. (Transcript, 42:21-24; 59:6-10; 63:9-16).

Applicant’s counsel submitted that IMC 123.24(A)(1)(c) encompasses all arguments as joint and separate bases for overturning the prior decision not to advance Applicant out of Phase III.

VIII. City’s Arguments at the Administrative Hearing
City’s argument focused on Applicant’s revisions to the attestation form. (Exhibit 5). Applicant struck “Community Benefit Fee of 8% of gross receipts,” included a narrative interlineation describing Applicant’s confusion, and made a modified commitment of “up to 8% of net profits, or a minimum of $30k annually.” Applicant then provided a calculation that 8% of net profits would “result in a direct cash contribution 1-3% of gross receipts annually.” (Ibid.).

City contends that Applicant’s changes to the attestation form supported the lower scoring for the “second half” of the Section F criteria, as the calculated change resulted in a contribution percentage of just over 1%. (Exhibit 8; Transcript, 18:21-19:18). Applicant’s counsel did not dispute the calculation based on net profits. (Transcript, 20:6-7).

Based on recommendations from the City Council on a desired direct payment amount of 5%- 6%, the City developed a scoring rubric of 40 points awarded for each percentage point of direct payment made above zero. (Transcript, 18:5-20). In other words, applicants who committed to at least 5% of gross revenues would receive all of the available points for the “second half” of the Section F criteria, totaling 200 points (or 100% of the available points). For every percentage point less, 40 points were taken away: 4% = 160 points; 3% = 120 points; 2% = 80 points; 1% = 40 points. (Transcript, 18:15-19:1). Thus, Applicant received 40 points based on the calculated contribution of 1%, which itself was derived from Applicant’s attestation—citing the

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Application—of “up to 8% of net profits, or a minimum of $30k annually.” (Transcript, 18:21- 19:1; Exhibit 5).

City admitted three key facts:

1. None of the applicants were informed of the splitting of Section F into two subcategories, with equal point values—200 each, totaling 400 points—until the scores were released, after ranking of the applications had occurred. (Transcript, 27:1-13; 38:7-15; 50:9-51:25; 53:7-15);

2. While the City did provide guidance on scoring,1 the scoring metric of 40 points for each percentage point of gross receipts contributed as the direct fee in Section F was not communicated to any applicant prior to score calculation and release of final scores. (Transcript, 25:19-26:13; 35:11-19); and

3. Applicant did commit verbally, during the interview, to providing “8%” in response to the question of how much, expressed as a percentage of gross revenue, the Applicant was willing to commit as a direct payment. (Transcript, 16:25-17:11; 41:1-17; 46:22-47:2; 62:3-14; Exhibit 9). The attestation form was prepared and populated by the City “to confirm the response of all of the applications . . . to make sure that the responses were accurate and that that’s what the applicant was committing to . . . during the interview [and] that they were to attest to.” (Transcript, 52:5-19).

In support of the decision to split Section F, the City testified that Section F as drafted had two paragraphs, which evinced the intent to have two components of equal value. (Transcript, 53:16- 25; 54:5-23). The City supported this position by referencing other scoring Sections, and noting that “all of the other sections were divided the same way.” (Transcript, 54:1-4).

Further, the City concluded, based on the revised attestation form (Exhibit 5), “that there was a misunderstanding in the response [given in the interview] because they ultimately provided a nonresponse to the question [in the attestation]. They provided a response indicating that they were going to give 8 percent of net profit, not 8 percent of gross receipt,” per the amended attestation form. (Transcript, 47:8-16; Exhibit 5). Ultimately, the City argues, “the response provided during the interview was not consistent with the question asked and if there was

1 See: https://www.indio.org/home/showpublisheddocument/3669/638169825753230000 This document was referenced by the parties but not submitted as evidence. As there does not appear to be any dispute between the parties as to the existence or the content of the document, the document will be considered as part of the Hearing Officer opinion, sua sponte.

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confusion, it was clear they provided 8 percent of net profit. And the question was what percentage of gross receipt.” (Transcript, p. 47:23-48:2 IX. Analysis
A. The Scope of the Administrative Hearing and the Powers of the Hearing Officer Are Limited
Review of an administrative hearing determination, or a “quasi-judicial hearing,” is accomplished via Code of Civil Procedure section 1094.5. Specifically, Subsection (b) provides the scope of judicial review carried out by a reviewing court of a hearing officer’s final administrative order: (1) whether the hearing officer has proceeded without, or in excess of, jurisdiction; (2) whether there was a fair proceeding; and (3) whether there was an prejudicial abuse of discretion. “Abuse of discretion” is established if the hearing officer “has not proceeded in the manner required by law, the order is not supported by the findings, or the findings are not supported by the evidence.” (Cal. Civ. Proc. Code § 1094.5(b)). These provisions create a statutory right to a fair hearing before an impartial party. (Clark v. City of Hermosa Beach (1996) 48 Cal.App.4th 1152).

In fact, the due process clause of the California Constitution at Article 1 § 7, includes a liberty interest to be free from “arbitrary adjudicative procedures.” (People v. Ramirez (1979) 25 Cal.3d 260, 268-69; accord, Saleeby v. State Bar of California (1985) 39 Cal.3d 547, 563-64).

Further, administrative proceedings are distinguishable from legislative proceedings, where legislative actions formulate rules to be applied—for example, adoption of ordinances and amendments to municipal codes to regulate the issuance of cannabis business permits. (See, e.g., J.D. Patterson v. Central Coast Regional Coastal Zone Conserv. Comm’n (1976) 58 Cal.App.3d 833, 840). Legislative actions establish public policy and rules applicable to groups or types of property, while administrative hearings apply to individual properties or parties by application of established standards to individualized facts, in order to determine specific rights or to take specific actions under existing law. (Arnel Dev. Co. v. City of Costa Mesa (1980) 28 Cal.3d 511, 519; 20th Century Ins. Co. v. Garamendi (1994) 8 Cal.4th 216, 273; Mountain Defense League v. Board of Supervisors of San Diego County (1977) 55 Cal.App.3d 723, 729; Lindgren and Mattas, CEB Cal. Land Use Prac., § 1.49).

Ultimately, however, the findings made in an administrative hearing must be relevant to adopted applicable criteria in statutes or policies. (See, e.g. J.L. Thomas, Inc. v County of Los Angeles (1991) 232 Cal.App.3d 916 [finding adopted by planning commission to support denial of a use permit for an adult business did not address the criteria in the county code for approval of use permit, and that the decision to deny therefore came “as a complete non sequitur from the findings.”]).

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In this matter, the jurisdiction of the Hearing Officer is set by IMC 123.23(A) and 123.24(A)(1)—generally, pertaining to deviations from the City’s published procedure guidelines and review criteria that adversely affected the Applicant by altering the outcome of the City’s decision on the application. The plain language of IMC 123.24(A)(1) necessarily includes “published procedure guidelines and review criteria.” The City Council adopted Resolution no. 10314 establishing procedure guidelines and review criteria to govern the application and selection process for cannabis storefront retail permits.”2 Thus, the City’s compliance with the guidelines and criteria set forth in Resolution no. 10314 also falls within the scope of the administrative hearing. Resolution no. 10314 includes as Exhibit “A” twelve pages of guidelines and review criteria. (See also Exhibit 8, attached hereto).

B. Applicant’s Argument Regarding Constitutionality of the Comm unity Benefits Fee as a “Tax” is Beyond the Scope of the Administrative Hearing and the Jurisdiction of the Hearing Officer
Counsel for Applicant presented extensive oral and written argument, with accompanying legal authority, in support of the position that the City’s Community Benefits Fee constitutes an improper “tax.” (See Exhibit 2). When questioned by the Hearing Officer as to the authority of the Hearing Officer to render a judicial opinion invalidating the Community Benefits Fee as an illegal “tax” within the confines of an administrative hearing, counsel for Applicant cited IMC 123.24(A)(1)(c) as a basis. (Transcript, 39:10-40:20).

The Hearing Officer disagrees. The findings made in an administrative hearing must be relevant to adopted applicable criteria in statutes or policies. (See, e.g. J.L. Thomas, Inc. v County of Los Angeles (1991) 232 Cal.App.3d 916). Invalidation of the Community Benefits Fee as a purported illegal “tax” requires application of facts not within the scope of this appeal to case law and provisions of the California Constitution—the purview of a judicial officer sitting in a court of competent jurisdiction. Moreover, such questions are beyond the scope of the administrative appeal hearing established by the City Council, as set forth in the Indio Municipal Code, and is beyond the jurisdiction of the Hearing Officer established thereby.

Accordingly, the Hearing Officer declines to issue any opinion regarding the legality of the Community Benefits Fee.

2 See: https://www.indio.org/home/showpublisheddocument/2481/638005077609470000 This document was referenced by the parties but not submitted as evidence. As there does not appear to be any dispute between the parties as to the existence or the content of the document, the document will be considered as part of the Hearing Officer opinion, sua sponte.

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C. Applicant’s Argument Regarding the City Council’s Legislativ e Determinations Are Beyond the Scope of the Administrative Hearing and the Jurisdiction of the Hearing Officer
Though not raised during the administrative appeal hearing, Applicant raised in their written appeal a criticism of the City Council in only allowing five cannabis business permits. Further, Applicant argues that the Community Benefits and Investments Plan (See Exhibit 8) “is not about the true qualifications of the project, team or application [but r]ather it seems to be an interim fee that might be paid until a cannabis tax is implemented by the city.” (Exhibit 10).

Accordingly, Applicant argued that it should not be “penalized so dramatically that its clearly superior application in all other categories is destroyed by a category that will only be applied temporarily.” (Ibid.).

Again, legislative actions establish public policy, while administrative hearings apply established standards to individualized facts, in order to determine specific rights or to take specific actions under existing law. (Arnel Dev. Co. v. City of Costa Mesa (1980) 28 Cal.3d 511, 519; 20th Century Ins. Co. v. Garamendi (1994) 8 Cal.4th 216, 273; Mountain Defense League v. Board of Supervisors of San Diego County (1977) 55 Cal.App.3d 723, 729; Lindgren and Mattas, CEB Cal. Land Use Prac., § 1.49) Accordingly, second guessing the policy decisions of the City Council is beyond the scope of an administrative appeal, and beyond the power of the Hearing Officer to consider.

The Hearing Officer declines to issue any opinion regarding the legislatively established number of permits, and declines to issue any opinion regarding the basis or inclusion of Section F into the application guidelines and review criteria.

D. While the Division of Section F into Two Subcategories Each Worth 200 Points Deviated from the City’s Guidelines and Criteria, Such Deviation— Standing Alone—Was Not Adverse to Applicant.

Breaking up Section F into two subcategories constituted a “deviation from the city’s published procedure guidelines and review criteria.” Publication of the final scores was the first instance that any applicant could have become aware of the two subcategories and the division of the total 400 point value into equal 200 point totals.

The preponderance of the evidence demonstrates that this scoring process was not published and not provided for in any of the City’s application, procedure guidelines, or review criteria ahead of the interview. (Transcript, 51:14-25). The City confirmed that this break down of Section F was not communicated before the interview and scoring process, except as may have been inferred from Section F comprising two paragraphs. (Transcript, 51:4-13). The City argued that since Section F was composed of two paragraphs, that evinced the intent to score Section F not

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as one category worth 400 points, but as two subcategories worth 200 points each, with the direct fee payment as the second subcategory. (Transcript, 46:11-21; 48:9-14). The City also argued that other sections in the scoring criteria followed this same logic. (Transcript, 48:15-18).

However, the evidence does not support the City’s argument; comparing the guidelines with the interview questions shows this is not the case. Section D of the guidelines has four questions, worth a total of 400 points. Applying the City’s argument, each question under Section D should be worth 100 points. However, the interview questions breakdown Section D into two scoring categories, with one worth 300 points, and the second worth only 100 points. (Exhibit 9). And the interview questions do not ask for the same information requested in the guidelines. (Ibid.) Similarly, Section E of the guidelines has four questions and is worth a total of 400 points.

Again, applying the City’s argument, each question under Section E also should be worth 100 points. But the interview questions have Section E as one category, with three sub-questions, with no breakdown of points between them at all.

Tautologically, only Section F adheres to the City’s argument—and even that adherence is not exact as the interview question makes reference to a “negotiated Community Benefit Agreement” (Exhibit 9), while the guidelines do not. Accordingly, the breakdown of Section F into two subcategories each worth 200 points, represents “a deviation from the city’s published procedure guidelines and review criteria.”
However, the preponderance of the evidence does not demonstrate adverse impact to Applicant for this scoring breakdown. When asked about breaking up Section F into two subcategories each worth 200 points, Applicant could not indicate whether that decision resulted in a lower score. (Transcript, 27:13-28:1). Thus, it appears that breaking up the Section F criteria into two subcategories, each worth 200 points—not specified in any City-provided documents or information until release of the final scoring—constitutes a deviation from the City’s guidelines, ultimately such a deviation was not shown to be adverse to Applicant. Therefore, this deviation—standing alone—does not support overturning the City’s decision not to advance Applicant out of Phase III, and this challenged portion of the City’s determination is AFFIRMED.

E. The City’s Scoring Metric of Awarding 40 Points For Each Per centage Point Above Zero for the Direct Fee Payment Constitutes a Deviation from the City’s Guidelines and Criteria, But the Evidence is Unclear Whether Such Deviation Adversely Affected Applicant.

The City’s scoring of 40 points for each percentage point above zero of gross receipts for the direct fee payment was not provided for in any of the written materials, ordinances, or guidelines. While a direct payment of 5%-6% may have been discussed at a public meeting by

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the City Council (Transcript, 18:5-20), the incorporation of that scoring metric was not provided to Applicant or to any other applicant. Thus, while merely breaking up Section F into two subsections with separate point values apparently had no demonstrated impact on scoring, the applied scoring metric of points based on the percentage of the direct payment calculated, did.

Applicant received 40 points, calculated from the proformas included in the application, which provided net profits, and equaled approximately 1% of gross receipts. (Transcript, 18:21-19:1).

Per the City’s Interview Scoring Guidance, this is a “very poor/deficient” score. Qualitatively, 40 points purportedly demonstrates that providing 1% of gross receipts—as calculated by the City:
[D]emonstrates an approach which fails to meet any of the requirements and objectives of the City. The response has glaring weaknesses and is greatly deficient. The response demonstrates a misunderstanding of State and Local laws. The response
demonstrates an inability to operate a business in a regulated industry.

No City materials show any connection between the payment of a fee to the City and an applicant’s “misunderstanding of State and Local laws,” or the “inability to operate a business in a regulated industry.” Indeed, the direct fee payment will sunset once the City passes a cannabis tax, which demonstrates the ephemeral nature of the payment and disconnects it from the scoring guidelines. Applicant’s raised such criticisms in the context of questioning the City Council’s legislative decision to include the direct fee payment in Section F. (Exhibit 10). While it is beyond the jurisdiction of the Hearing Officer to question the thinking of the City Council in approve Section F, it is not beyond the Hearing Officer’s jurisdiction to question the methodology used to evaluate Applicant’s interview response to the interview question developed to score Section F.

Since the scoring methodology used by the City to calculate the awarded points was not provided to any applicant prior to its use, no applicant had notice as to how their response to the second interview question for Section F might affect their final score. Luckily for the other applicants, they provided a response of at least 5% of gross profits as they all received all 200 points for the second subcategory of Section F. But not knowing the scoring methodology ahead of time deprived all applicants of the ability to calibrate their applications and interview responses; for example, instead of committing to 8% of gross revenues, applicants could have committed only to 5%, had they known that no additional points would have been provided for the additional 3% above the maximum. Not providing the scoring methodology ahead of time allowed the City to obtain commitments that it might not have otherwise been able to obtain. This represents a significant deviation from the scoring guideline set forth in Section F.

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F. Regardless of the City’s Deviations and Any Associated Adver se Impacts, the Application Was Incomplete and Nonresponsive.

Despite the City’s deviations, the fact remains that Applicant’s application very clearly states that its direct fee payment was based on net profits, even though the guidelines at Section F clearly stated that the fee should be expressed as a percentage of gross receipts. Accordingly, the application did not present “relevant information with completeness,” one of the three required elements for overturning the City’s decision.

It is important to note that interview phase and use of the attestation form seem to contemplate incorporation of possible changes into the application. The attestation form modifies the written application to make the direct fee payment binding on the applicant. (Exhibits 4, 5). This provides the opportunity for an applicant to offer a different amount for the direct payment than what may have been specified in the application. If the City wanted to foreclose this possibility, it could have omitted the second question for Section F—or not broken up Section F into two subcategories in the first place. Or, the attestation could simply have required confirmation that the application would be binding on the applicant; it would not “confirm” information from the interview that could deviate from the application. Or, the interview question could have provided the scoring metric of 40 points for each percentage of gross receipts above zero. But, absent evidence to the contrary, it must be assumed that the City knew what it was doing when creating the application evaluation system; it must be assumed that the City understood the possibility that the interview responses could alter information provided in the application.

Indeed, if Applicant had not submitted a revised attestation form, very likely it would have received the points it believes are due to it now, and advanced to the final round. Both City and Applicant would have moved forward seemingly with the understanding of Applicant’s commitment of making a direct fee payment to the City based on 8% of gross receipts—despite language in the application indicating a direct fee payment based on net profits. In fact, a preponderance of the evidence shows: (1) for the direct fee payment, the interview question asked for a percentage of gross receipts (Exhibit 11); (2) Applicant orally responded “8%” to the question during the interview (Transcript, 42:21-24; 59:6-10); and (3) City initially understood Applicant agreed to provide 8% of gross receipts as its direct fee payment, as the attestation fee was pre-populated with that language by the City. (Exhibit 5.) But, with Applicant’s submission of the revised attestation form, confusion arose in the scoring process. City compared the revised attestation form to the application and discovered the source of the confusion: Applicant’s written response was based on net profits, not gross receipts. (Transcript, 47:1-14). City then concluded, reasonably, that Applicant likely meant 8% of net profits in response to the interview question, since that response was consistent with the written response to Section F in the application. (Ibid.) Instead of awarding no credit for providing an incomplete or nonresponse, the City calculated a percentage of gross receipts from Applicant’s

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net profits calculations—something that it had no obligation to do. Yet, Applicant’s score did not reach the necessary threshold to advance.

Critically, even if the City had not broken down Section F into two subcategories, and even if the City had not used the scoring methodology of 40 for every percentage point over zero, the preponderance of the evidence shows that Applicant’s written response to Section F was, in fact, not responsive at all. Applicant should have received no credit; nonetheless, the City still awarded Applicant some credit.

Finally, only after the extent of the error became apparent did Applicant submit an unaltered— and untimely—attestation form, agreeing to 8% of gross receipts. Unfortunately, this purported correction comes too late in the process, and it does not swing the preponderance of evidence in favor of Applicant. Since the application was not completed with relevant information, Applicant has not satisfied all three prongs required for a successful appeal. The decision of the City is AFFIRMED.

X. Conclusion
The Hearing Officer declines to issue an opinion on whether the direct fee payment constitutes a “tax” under California law as in excess of the Hearing Officer’s jurisdiction, and beyond the scope of this limited administrative appeal.

Similarly, the Hearing Officer declines to issue an opinion challenging the City Council’s thought process in adopting Section F as part of the evaluation criteria as in excess of the Hearing Officer’s jurisdiction, and beyond the scope of this limited administrative appeal.

The preponderance of the evidence shows that the City deviated from the published scoring guidelines by breaking up Section F, worth a total of 400 points, into two subcategories each worth 200 points, without notice to applicants. However, the deviation did not have an adverse impact on Applicant because Applicant could not provide evidence as to how its score was impacted by the deviation. In this regard, the decision of the City is AFFIRMED.

The preponderance of the evidence shows that the City deviated from the published scoring guidelines by awarding 40 points for each percentage of gross receipts above zero offered in response to the second subcategory of Section F without prior notice. The evidence is unclear whether the deviation had an adverse impact on Applicant because, had the scoring methodology been known, it is possible that all applicants—and not just Applicant, here—may have provided different responses, calibrated to the scoring methodology used. In turn, the final scoring of all applicants could vary wildly, making adverse impacts speculative at best. Regardless, the preponderance of the evidence shows that Applicant was not complete and responsive in its application since it indicated a direct fee payment expressed as a percentage of net profits, and

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not gross receipts, as Section F clearly required. Since the preponderance of the evidence does not support all three elements needed to overturn the City’s decision, that decision is AFFIRMED.

Respectfully submitted,

ALESHIRE & WYNDER, LLP

G. Ross Trindle, III
Partner

grt:GRT

Attachments: Exhibit 1 – Scoring Interview Chart
Exhibit 2 – Letter Brief of Applicant
Exhibit 3 – Current/Retallied Scoring Charts
Exhibit 4 – Applicant Attestation (April 2023)
Exhibit 5 – Applicant Attestation (February 2023)
Exhibit 6 – Applicant Scoring Models
Exhibit 7 – Excerpts of Applicant’s Application (pages 31-33) Exhibit 8 – City of Indio Scoring Guidelines, Section F Exhibit 9 – City of Indio Phase III Interview Questions Exhibit 10 – Notice of Appeal – City of Indio Cannabis Busine ss Permit Phase III Exhibit 11 – Receipt for Payment of Appeal Fee

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01414.0001/899788.1
G. Ross Trindle, III | gtrindle @awattorneys.com
p (951) 241 -7338 | d (951) 241 -7338 | awattorneys.com 3880 Lemon Street, Suite 520 | Riverside, CA 92501 June 14, 2023
VIA E-MAIL AND U.S. MAIL

Christopher Martinez
CEO
Indio CC, LLC dba SensIndio
81350 Riverlane Drive
Indio, CA 92201
E-Mail: [email protected]
Kevin Snyder, AICP
Director of Community Development
City of Indio
100 Civic Center Mall
Indio, CA 92201
E-Mail: [email protected]
Re: Indio CC, LLC dba SensIndio - Hearing Officer Decision and Opinion on Cannabis Business Permit Administrative Hearing Appeal

Dear Applicant and City of Indio::

On May 24, 2023, at 9:30 a.m., an administrative appeal hearing took place before the undersigned Hearing Officer, requested by Indio CC, LLC dba SensIndio (“Applicant”), challenging the decision of the City of Indio to deny advancement of Applicant from Phase III (Interviews) to the final selection process of the City Council for possible issuance of a cannabis business permit, pursuant to Indio Municipal Code (“IMC”) 123.25(E). At the conclusion of the hearing, the matter was taken under submission.

Having duly considered the evidence, the undersigned Hearing Officer has reached a determination and this correspondence represents the final decision and opinion of the Hearing Officer regarding the appeal of Applicant.

Pursuant to IMC 123.25(F), this writte n decision is final and conclusive and is subject to the time limits set forth in California Code of Civil Procedure section 1094.6 for judicial review.

ADMINISTRATIVE APPEAL DECISION
The decision of the City of Indio to deny advancement of Indio CC, LLC dba SensIndio to the final selection process of the City Council is: AFFIRMED.

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