RESOLUTION R2023-30
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MANTECA, STATE OF CALIFORNIA, AUTHORIZING AND
APPROVING THE APPLICATION AND SELECTION
PROCESS FOR CANNABIS RETAIL BUSINESS
PROGRAM PERMITS; FEE SCHEDULE; APPELLATE FEE
UNDER THE MANTECA MUNICIPAL CODE CHAPTER
5. 64 PER MANTECA MUNICIPAL CODE SECTIONS
5. 64. 230( B) AND 5. 64. 250( B)( 6); THE USE OF A HEARING
OFFICER FOR APPEALS UNDER MANTECA MUNICIPAL
CODE CHAPTER 5. 64 PER MANTECA MUNICIPAL CODE
SECTION 5. 64. 260(A)( 1); AND DETERMINING THAT THE
ADOPTION OF THE FEE SCHEDULE IS EXEMPT FROM
REVIEW UNDER CEQA PURSUANT TO CEQA
GUIDELINES SECTION 15061
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 21, 2021, the City Council adopted Ordinance No. 2021- 16 and added Chapter 5. 64 of the Manteca Municipal Code, governing the locations of storefront cannabis retail, non- storefront cannabis retail and cannabis delivery. The City Council also approved Ordinance No. 2021- 16 that regulates the operation of storefront cannabis retail, non- storefront cannabis retail and cannabis delivery in the City; and making a determination that the ordinance was exempt from review under CEQA pursuant to CEQA guidelines section 15061( b)( 3); and 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 February 18, 2023, the City of Manteca published a public hearing notice in the Manteca Bulletin, 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 March 7, 2023 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
R2023- 30 Page 1 of 17 March 7, 2023
ATTACHMENT 2
WHEREAS, pursuant to California Government Code Sections 66016 and 66018, the City Council has conducted and concluded a duly noticed public hearing on March 7, 2023, 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 Manteca 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; 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; and
WHEREAS, sections 5. 64. 230( B) and 5. 64. 250( B)( 6) set out that the City Council shall determine, subject to resolution, what the appellate fee shall be under Chapter
5. 64 for purposes of an appeal under that Chapter; and WHEREAS, consistent with other provisions of the Municipal Code that take into account staff time utilized to process an appeal, the City Council is electing that the City of Manteca set the appellate fee under Chapter 5. 64 of the Municipal Code at twothousand eight hundred and forty-four dollars ($ 2, 844) per each, individual appeal; and WHEREAS, sections 5. 64. 220 through 5. 64. 260 of Chapter 5. 64 set out the process and procedures to appeal a decision subject to Chapter 5. 64; and WHEREAS, section 5.64.260(A)( 1) sets out that the City Council shall determine, subject to resolution, what individual and/ or body shall hear an appeal under Chapter
5. 64; and
WHEREAS, section 5. 64. 260(A)( 1) permits for an outside hearing officer to serve as the appellate officer for purposes of an appeal under Chapter 5. 64; and R2023- 30 Page 2 of 17 March 7, 2023
ATTACHMENT 2
WHEREAS, the City Council is electing that the City of Manteca utilize an outside hearing officer to serve as the appellate officer for purposes of an appeal under Chapter
5. 64, and delegating the City Attorney or his/ her designee, to facilitate selecting a hearing officer for purposes of an appeal; and
WHEREAS, the City Council has considered all information related to this matter, as presented at the public meetings of the City Council identified herein, including any supporting reports by City Staff, and any information provided during public meetings.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Manteca, as follows:
1. The City Council hereby finds that the facts set forth in the recitals to this Resolution are true and correct, and establish the factual basis for the City Council' s adoption of this Resolution.
2. The Application Procedure Guidelines and Review Criteria for a Commercial Cannabis Business Permit ( Storefront Retail Applications) attached hereto as Exhibit " A".
3. The City Manager, or designee, is authorized to make nonsubstantive 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.
4. 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.
5. 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:
Fee Description Fee Amount
Application Fee 10, 368
Annual Regulatory Fee 24, 663
Appeal Process Fee 2, 844
Interview Fee ( only if selected for an interview 380
Application Renewal Fee 115
Background Investigation (Owner/Manager 300
R2023-30 Page 3 of 17 March 7, 2023
ATTACHMENT 2
Background Investigation Renewal ( Owner/Manager 100
Background Investigation ( Employee) 100
Bafc round Investigation Renewal ( Employee) 75
The City Council finds that the adoption of Application Procedure and Guidelines and Review Criteria and fees for the administration of the City of Manteca 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. 2021- 16 governing the locations of storefront cannabis retail, non- storefront cannabis retail and cannabis delivery. 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.
7. The City elects that the appellate fee under Chapter 5. 64 of the Manteca Municipal Code, consistent with sections 5. 64. 230( B) and 5. 64.250( B)( 6), shall be two- thousand eight hundred and forty-four dollars ($ 2, 844).
8. The City elects that an outside hearing officer shall serve as the appellate officer for purposes of an appeal under Chapter 5. 64 of the Manteca Municipal Code.
9. The City delegates the authority to the City Attorney to select a hearing officer for purposes of an appeal under Chapter 5. 64.
10. Consistent with Government Code section 66017, this resolution shall take effect sixty ( 60) days after approval by the City Council.
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the City Council of the City of Manteca at a public meeting of said City Council held on the 7rh day of March, 2023, by the following vote:
AYES: Halford, Nuno, Morowit
NOES: Breitenbucher
ABSENT: None
R2023- 30 Page 4 of 17 March 7, 2023
ATTACHMENT 2
RECUSE: None
VICE MAYOR: s
Q - A
MIKE MOROWIT
Vice Mayor
ATTEST:
CAS NDRA CANDINI- TILTON
City Clerk
R2023- 30 Page 5 of 17 March 7, 2023
ATTACHMENT 2
i
t ( anteca
CITY MANAGER OFFICE
1001 West Center Street
V. hki e4 e.
Manteca CA 95337
Ph: ( 209 456- 8011
Email: mantecacannabis@manteca. gov
APPLICATION PROCEDURE GUIDELINES AND REVIEW CRITERIA
FOR A COMMERCIAL CANNABIS BUSINESS PERMIT
STOREFRONT RETAIL APPLICATIONS)
Application Period
OPENS — March 8, 2023
CLOSES — May 8, 2023
These Procedure Guidelines apply solely to Cannabis Retail Applications
NUMBER OF PERMITS
During this application period the City will be allowing up to three ( 3) cannabis Retail permits under this process, consistent with the City' s ordinance.
RETAIL BUSINESS
Retailer' shall have the same meaning as that contained in Section 26070( a)( 1) of the California Business and Professions Code.
CONTACT
If you have any questions or would like an update on the status of your application, please contact the City Manager' s Office at ( 209) 456- 8016 or by email at mantecacannabis@manteca. gov.
APPLICABLE REGULATIONS
Information regarding the Commercial Cannabis Business ( CCB) Permit Application process can be found on the City's website at https:// www.manteca. gov and includes the following:
Application Procedures Guidelines Financial Responsibility, Indemnity and and Review Criteria Consent to Inspection Terms Agreement City of Manteca Municipal Code ( MMC) Background Check Portal Link Title V, Chapter 5 ( Business Regulations) Commercial Cannabis Business ( CCB) City of Manteca Municipal Code ( MMC) Permit Application Title XVII ( Zoning Regulations)
Property Owner Consent/ Landlord Affidavit
To be considered for issuance of a Cannabis Business Permit, applications must be submitted to the City Manager' s Office located at the address listed on these procedures by the deadline.
Failure to follow the procedures detailed below will result in your application not being considered. These Procedure Guidelines and Review Criteria ( hereafter referred to as 1 ATTACHMENT 2
Procedures") constitute the application process and are adopted pursuant to the Manteca Municipal Code ( MMC) Chapter 5. 64. 130.
Applicants should monitor the City' s web page for any additional information, FAQs, or updates. It is the Applicant' s responsibility to stay informed ofthis information.
AMENDMENTS TO THE APPLICATION
Applicants will not be allowed to make amendments to their application or to supplement their application, except as follows: ( 1) as otherwise specifically permitted in these Procedures, ( 2) posted on the City' s website as a clarification update, or ( 3) as authorized in writing by the City Manager or his/ her designee.
City staff and/ or a 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 minor, but 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. The Applicant may be granted up to five ( 5) business days from the date of the email to submit the required supplemental information.
Should you receive an email from the City Manager' s Office, please confirm receipt of that email immediately, within twenty- four ( 24) hours. If the City does not receive confirmation from your primary contact within forty- eight ( 48) hours, the City may, but is not required to, make an attempt to notify the primary contact by phone in case the email was diverted the recipient' s spam folder. Please note, additional time, beyond the five ( 5) days to complete the curing process will not be provided. Applicants should monitor incoming and spam email carefully and regularly to ensure that communications regarding their Application are not missed.
Furthermore, any additional information, other than what was requested to cure the minor deficiencies, will not be considered. Applicants will be notified if their Application is incomplete or if there is any other reason why they will not be moving forward in the Application process.
LIMITATIONS ON MULTIPLE SUBMISSIONS
Applicants possessing an ownership interest of ten percent ( 10%), or more, in a retail cannabis permit application shall be limited to submitting only one retail Application which includes retail during this application period. In addition, the City will only accept a maximum of one ( 1) Application per property ( APN). Without exception, City Council will only issue one retail permit per property (APN).
CITY' S RESERVATION OF RIGHTS
The City reserves the right to reject any application, with or without cause. 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 2 ATTACHMENT 2
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 MMC Chapter 5.64. 130. Review the information regarding the Application process and which documents you will need. Before submitting the Application, review it in its entirety to ensure the completeness and accuracy of the Application.
Review the information regarding the Cannabis Business Permit application process for a CCB on the City webpage provided on page one.
https:// IibrarV.gcode.us/ lib/ manteca ca/ pub/ municipal code/item/ title 5- chapter 5 64- 5 64 130
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 in one complete comprehensive application package.
Applications may be submitted by any of the following methods: in person, by U. S. Mail, or by common carrier delivery service ( e. g., FED EX, UPS, etc.). The complete application package must be submitted in a sealed envelope or box addressed as follows:
City Manager's Office
Attn: Cannabis Application Process
City of Manteca
1001 West Center Street
Manteca, CA 95337
The application package must include all the following documents with original (" wet") signatures for each document( where applicable):
1. Commercial 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; and
8. Zoning Research Letter.
FLASH DRIVE CONTENT
In addition to the above hard copies, all Applicants must submit a USB flash drive containing one complete digital copy of the application package per the requirements as outlined in the below format. The application package, including the flash drive and application fees, must be received by the City Manager' s Office at the same time and in the same sealed envelope or box 3 ATTACHMENT 2
as the hard copies submitted to the City Manager' s Office; Attn: Assistant City Manager— 1001 W. Center Street, Manteca, CA 95337.
Please note that responses to the Evaluation Criteria, Sections A- H ( found in Appendix A of the Procedures) shall be limited to 125 pages, otherwise points will be deducted. Responses pertaining to Backgrounds, Proof of Capitalization, Zoning Research Letter, Property Owner Consent/ Landlord Affidavit, and Business Owner Acknowledgement Form shall not be included in the 125- 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-H) 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 on a USB flash drive in a PDF format in the following files.
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- H of Appendix A limited to 125 pages, excluding Proof of Capitalization, which shall be included separately in PDF File# 4).
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 Research Letter (ZRL) 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 showing the location being insured in City of Manteca, 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 5. 64.060 ( L) must undergo a criminal history background check to demonstrate they meet the qualifications as outlined in MMC Chapters 5. 64. 080 and
5. 64. 380 ( K). Owners who do not meet the criminal history eligibility requirements of Chapter
5.64. 380 ( K) will be disqualified. The background form can be found online at:
4 ATTACHMENT 2
https:// hdlcompanies. formstack. com/ forms/ bc manteca 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 MMC Chapter 5. 64. 380 ( 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 RESEARCH LETTER ( ZRL)
As part of a complete application packet, an Applicant must obtain a Zoning Research Letter from the Development Services Department. To secure this letter, an Applicant must make a written request to the Development Services Department. The request should specify the intended use of the building and the proposed building location. Please advise the City if you or a tenant currently occupy the premises and what type of business activity is being conducted.
Development Services Office— 1215 W. Center Street, Ste 201, Manteca, CA 95337.
The issuance of a ZRL only indicates whether the site in the Application is located within a zone that allows for retail cannabis use and whether that location falls within a known sensitivity buffer. A ZRL 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. Furthermore, does it create an entitlement under either the Zoning or Building Code. A regulatory permit for a CCB is not 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 $10, 368. This amount will be charged against time spent P Yb CityY staff and the Consultant in reviewing9 Applications PP and administrating9 the Application process. Applicants may be required to pay additional amounts, as required, for the sole purpose of the City's completion of the Application review process. Payment must be made by a certified check, cashier' s check, or money order made payable to the City of Manteca. Please note the City will not accept cash or credit cards. Application fees are nonrefundable once the City begins reviewing the application.
A separate fee for the Zoning Research Letter( ZRL) of$ 219 per site. A Background Check Fee of 300 per owner I subject to a Live Scan P is also required. q Successful Applicants, PP will also be J Fee of up to $ 150 prior to obtaining the Commercial Cannabis Business Permit or at a time determined by the Police Chief.
SUBMITTAL DEADLINE
Applications and payment must be submitted to City Manager's Office on May 8, 2023 by 4:00 p. m. Late applications will not be accepted. Furthermore, an application may be rejected for the following reasons:
1. It is not responsive to this Commercial Cannabis Business Permit Application and the Application Procedure Guidelines for a Commercial Cannabis Business Permit.
2. The issuance of the Cannabis Business Permit for the proposed location does not 5 ATTACHMENT 2
comply with State law, MMC Title V, Chapter 5 ( Business Regulations) and/ or Title XVII Zoning Regulations).
APPLICATION REVIEW, SCORING, AND APPROVAL PROCESS
PHASE I: DETERMINATION OF ELIGIBILITY
During Phase I, 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 MMC Chapter 5. 64. 130. These Procedures may be amended as provided in MMC Chapter 5. 64. 450, 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, 300 points) During Phase Il, the City will review and score each application using a merit-based system.
Applicants will be scored and ranked 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)
Section D— Proposed Location ( 100 points)
The top ranked applicants from Phase Il, as determined by the City, may be eligible to advance to Phase III. The City Manager or his/ her designee will decide the number of Applicants to interview based on the number and quality of Applications received. 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 ( 2, 000 points)
During Phase III, a Staff Selection Committee designated by the City Manager will conduct a discretionary merit- based interview process. Applicants will be scored using the following evaluation criteria identified in in Appendix A:
Section E— Qualifications of Owners ( 400 Points)
Section F— Neighborhood Compatibility( 500 Points)
Section G— Community Benefits and Investments Plan ( 900 Points) Section H— Proposed Site Plan ( 200 Points)
Upon the completion of Phase III, the Staff Selection Committee will tabulate the scores of all Applicants PP from Phase III to create a PpreliminaryrY ranking. 9 The PpreliminaryrY ranking9 will determine who will be invited to participate in Phase IV. The ranking will be based upon the scores received through the Phase III discretionary 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. Should multiple Applicants from the same property ( APN) receive highest ranking during the Phase III interview process, only the top ranked Applicant from that property( APN) will be eligible to proceed to Phase IV. 6 ATTACHMENT 2
PHASE IV: CITY COUNCIL INTERVIEWS AND FINAL DECISION
Upon the completion of Phase III, the City Manager shall 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, the operator of each cannabis facility shall enter into a Community Benefit Agreement ( CBA) with the City. A condition of issuance of the regulatory permit shall be the Applicant' s entrance into the CBA with the City. The CBA shall set forth the terms and conditions under which the cannabis facility will operate. These terms are in addition to the requirements of MMC Section 5. 64. 370 ( 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.
Any community benefit( s) that an Applicant agrees to provide shall be included in the conditions under which the Applicant will operate with the City of Manteca' s approval. Upon successfully completed negotiations, the Applicant is then authorized to proceed to apply for any required land use permits, business license, and other required 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. Appeals shall comply with the requirements of MMC Chapters 5. 64. 220 through 5. 64. 260. Any decision made by the City Council regarding the award of 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. Further, it does not waive or remove the requirement( s) of applying for and receiving permits for all construction including: electrical, plumbing, fire, Development Services 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. The award of a CCB permit also does not guarantee that the plans submitted via the CCB application process meet the standards or requirements in MMC Title 17 and any other permit requirements from other City departments or agencies.
ATTACHMENT 2
APPENDIX A: EVALUATION CRITERIA
The City of Manteca 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 the appropriate remedy to prevent disclosure. If an Applicant contends any portion of its materials are not subject to the CPRA, it must seek the appropriate legal remedy no fewer than 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. Ultimately, independent of a judicial order, the City will make the decision as to whether or not a record is subject to the CPRA.
PHASE II EVALUATION
Important Instructions:
Evaluation Criteria identified in Sections A-C will be scored based upon an Applicant' s written response. The City may deduct points 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 outside the appropriate section will be deducted points.
Any commitments made by an Applicant during the evaluation process will become conditions under which the cannabis business must operate. The City may revoke or suspend or revoke an Applicant' s business license if the Applicant fails to meet the conditions imposed during the evaluation process.
SECTION A: BUSINESS PLAN ( 400 points)
1. Finances— Application shall include budgets 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 budgets must demonstrate that the Applicant has sufficient capital 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 also 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. ( Note: Proof of Capitalization should be submitted in a separate PDF file. See " Application Process" section for more information.)
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.
D. A letter from a bank, credit union, or similar financial institution stating that the cannabis applicant has, or will be provided, access to banking services. 8 ATTACHMENT 2
2. Daily Operations — Application shall describe the day- to- day operations of the proposed Retail business. The day-to- day operations shall meet industry best practices. This shall include a description of at least the following:
A. Customer check- in procedures.
B. Location( s) and procedures for receiving deliveries during business hours.
C. The Point- of-Sale system ( including name) and how it will interface with the state' s mandated track and trace system. Identify the number of Point- of-Sales terminals in operation when the business is at full capacity.
D. The projected number of customers served per hour/ day.
E. The proposed product line, including brand names, and estimated percentage of sales of.flower and manufactured products.
F. How the Cannabis Business will conform to local and state laws. See MMC Chapters 5. 64. 400 and Title 17 as they pertain to retail establishments within the City of Manteca.
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 5. 64. 130 ( 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, at minimum, a Living Wage, as defined by the MIT Living Wage calculator( https:// Iivingwage. mit. edu/).
SECTION C: SECURITY PLAN ( 400 points)
1. Qualified Security Professional — The Application must include a security plan prepared by a 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 qualified professional standard to receive the appropriate points for each criterion in this section.
The Applicant must also submit the qualifications of the person( s) preparing the security to verity that they meet the qualified professional standards. 9 ATTACHMENT 2
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.
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 will be 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.
SECTION D: PROPOSED LOCATION ( 100 points)
Important Instructions:
Applicants are not required to provide a written response to the Evaluation Criteria identified in Section D. Section D will be scored based upon the applicant' s proposed location, identified in the Commercial Cannabis Business Permit Application.
Where applicable, distances will be measured using the City' s Geographic Information System.
1. Buffer Distances in Excess of Minimum Required — Proposed location exceeds the minimum sensitive- use buffer requirement established in the Manteca Municipal Code by an additional 50-feet, as measured from the closest property line of the proposed location to the closest property line of the closest sensitive- use. Additional points will be awarded to Applications that exceed the minimum buffer to the nearest sensitive- use by a greater distance than other Applicants.
2. Distance from Residential Zones — Proposed location maintains a minimum 50-foot distance from the closest property zoned residential ( R- 1, R- 2, R- 3, or R- E). Additional 10 ATTACHMENT 2
points will be awarded to Applications that exceed the 50-foot minimum by a greater distance than other Applicants.
PHASE III EVALUATION
Important Instructions:
During Phase III Interviews, Applicants will be asked questions related to Evaluation Criteria Sections E- H.
Due to the time limitation of interviews, Phase III questions will cover only a portion of the criteria identified within each Section E- H.
Scoring for Sections E- H will be based upon information conveyed verbally by Applicants, in response to the questions asked. Scoring for Section H may also consider photographs, site plans, and other visual depictions provided by Applicants.
All Applicants will be asked the same questions and be provided the same amount of time to respond.
Any commitment made by an Applicant during the Phase III Interview process may become a condition on the business permit, if issued, and may be incorporated as terms to the Community Benefit Agreement during Phase IV.
SECTION E: 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 Manteca.
3. Describe the involvement of the ownership team in the day-to-day operation and management of the proposed business.
SECTION F: NEIGHBORHOOD COMPATIBILITY PLAN ( 500 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 embrace 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.
ATTACHMENT 2
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.
SECTION G: COMMUNITY BENEFITS AND INVESTMENTS PLAN ( 900 points)
1. 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, communitybased organizations, civic organizations, or social services organizations (" Community Organizations"). Note: Applicants should not identify any specific Community Organization at this time, or provide commitment letter( s) from local Community Organizations in the Application submittal. This section is only intended to capture the overall commitment of Applicants to fund or support local community-based activity in general.
2. Identify the minimum wage that will be offered to employees of the proposed business, excluding tips and gratuities. If entry-level employees are salaried, the Applicant should divide the minimum annual salary by 2,087 hours to arrive at an hourly rate.
3. 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 annual gross receipts. Additionally, Applicants should describe a minimum fee payment that will be offered to the City, expressed as a flat dollar amount, should the business annual gross receipts fall below a minimum threshold.
SECTION H: PROPOSED SITE PLAN ( 200 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; E. Description of any businesses currently operating on the parcel ( if any), and any parcels directly adjacent to the existing site.
2. 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 fagade 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.
3. Describe how the proposed modifications and utilization of the site for cannabis retail activity will impact the public health, safety, welfare, environmental quality, and/ or quality of life in the surrounding area.
12 ATTACHMENT 2