SPECIAL CITY COUNCIL MEETING
CITY HALL, 291 N. MAIN STREET
PORTERVILLE, CALIFORNIA
MONDAY, OCTOBER 24, 2022, 6:00 PM
Pursuant to the provisions of Assembly Bill 361, signed into law by Governor Newsom on September 16, 2021, the City of Porterville is allowing for and encouraging electronic participation at City Council Meetings. Until further notice, Porterville City Council Meetings will be live streamed on YouTube at https://www.youtube.com/channel/UC5KuhSrNMNL9nwHJVtnJvvA Alternatively, this meeting will also be available via Zoom using the following information Topic: City of Porterville – City Council Meeting of Monday, October 24, 2022 Please use the following link below to join the webinar:
https://us06web.zoom.us/j/88298480900?pwd=clFoRlV4Vlh5RWNtWTdSN2lqVEc4Zz09 Or via Telephone: 1-669-900-6833 Webinar ID: 882 9848 0900 Passcode: 205258 Call to Order
Roll Call
Pledge of Allegiance Led by Council Member Weyhrauch
Invocation
ORAL COMMUNICATIONS
This is the opportunity to address the Council on any matter of interest, whether on the agenda or not. Unless additional time is authorized by the Council, all commentary shall be limited to three minutes.
SCHEDULED MATTERS
1. Cannabis Business Operating Permit For Retail Dispensary - Applicant Interviews Re: Conduct the interview process of qualified applicants for the City's Request for Proposals for Cannabis Business Operating Permit for Retail Dispensary.
ADJOURNMENT - to the meeting of November 1, 2022 at 5:30 p.m.
In compliance with the Americans with Disabilities Act and the California Ralph M. Brown Act, if you need special assistance to participate in this meeting, or to be able to access this agenda and documents in the agenda packet, please contact the Office of City Clerk at (559) 782-7464.
Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting and/or provision of an appropriate alternative format of the agenda and documents in the agenda packet.
Materials related to an item on this Agenda submitted to the City Council after distribution of the Agenda packet are available for public inspection during normal business hours at the Office of City Clerk, 291 North Main Street, Porterville, CA 93257, and on the City’s website at www.ci.porterville.ca.us.
Item No. 1.
CITY COUNCIL AGENDA – OCTOBER 24, 2022
SUBJECT: Cannabis Business Operating Permit For Retail Dispensary - Applicant Interviews
SOURCE: City Manager's Office
COMMENT:
At its meeting on October 4, 2022, the City Council authorized the scheduling of a Special Meeting for Monday, October 24, 2022, beginning at 6:00 P.M. to conduct the interviews of the qualified applicants to the Request for Proposals for wholly-local Cannabis Business Operating Permit for Retail Dispensary. At its meeting on October 18, 2022, the Council approved the recommendations of its Ad Hoc Committee (comprised of Council Members Tate and Weyhrauch) in regard to the interview process.
The order of interviews will be chosen via a random method (e.g. lottery). The number of interview participants is limited to not more than three people per application, and if participating virtually, the background(s) of the interviewees shall be plain, with no promotional, branding, or advertisement for the company in the backdrop.
The names of the applicants moving forward to the interview process, in alphabetical order, are as follows:
Bloom Farms
Main Street Apothecary
Uncle Green
Part 1 of the Interview
Applicants are expected to conduct a fifteen (15) minute uninterrupted narrated presentation. Presentations may include PowerPoint or similar formatted visual aid, which were required to be emailed to designated City staff by no later than 4:00 P.M. on Thursday, October 20, 2022. The visual aids and/or handouts are limited to a total of three pages, including: a one-page executive summary, and two pages of illustrations of the interior and exterior of the proposed business.
It is requested that the applicants focus on the following elements:
· Introduce the proposed business and explain the local ownership Item No. 1.
structure; describe the primary qualities of their business brand. · Identify all local and non-local representatives and managers · Describe the qualities that set their business apart from the rest · Describe the professional qualifications of all applicants, representatives, and managers
· Provide a three-year Pro-forma (projection) illustrating all projected start-up and general operating costs, estimated gross revenues and anticipated taxes to be generated.
· Describe their approach to operating a safe and successful cannabis business in the city of Porterville
· Describe their understanding of the City’s community benefits objectives
· Outline their proposed community benefits offering/ideas Part 2 of the interview
Fifteen (15) minutes is allotted to each applicant for the following questions from the Council, although individual Council Members may introduce additional questions for the applicants with the approval of the Council.
Applicants will have approximately three minutes to respond to each question.
1. Describe the applicants' local business experience outside the cannabis industry and local employee count, as well as experience with audited payroll.
2. Describe the applicants’ and local representatives’ experience inside the cannabis industry: what is your experience in the cannabis industry; who will be your cannabis supplier; and how do you (and will you) stay current and in compliance with all cannabis business legal requirements and avoid the corruption issues that have arisen in other jurisdictions?
3. Describe your prior experience with community benefits programs; and detail any proposed volunteer services, in-kind donations and/or Item No. 1.
charitable donations.
4. If you commence business in the City, where do you see your business in two years and in five years in terms of economic development?
Scoring of the interview
The City Council previously determined that the Council has a maximum of fifty (50) points to award per applicant, and that each Council Member has up to ten (10) points they may award for each presentation.
The Council may consider a proposed point scale based on the following (or may formulate an alternative basis for award/deduction of points):
1 to 4 Points: Applicant failed to adequately respond to Council’s questions 5 to 7 Points: Applicant’s response to Council’s questions met expectations 8 to 10 Points: Applicant’s response to Council’s questions was exceptional and far exceed expectations
Each Council Member shall provide their individual scores to the City Attorney via email at the conclusion of the interviews and no later than a half hour after the end of the meeting, with the result scores to be presented to the Council for consideration of award at its meeting on November 1, 2022.
RECOMMENDATION: That the City Council conduct the applicant interview process.
ATTACHMENTS: 1. Request for Proposals
Appropriated/Funded:
Review By:
Department Director:
John Lollis, City Manager
Final Approver: John Lollis, City Manager
City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 1 | Page
REQUEST FOR PROPOSALS
CANNABIS BUSINESS OPERATING PERMIT
FOR
RETAIL DISPENSARY
PREPARED BY:
COMMUNITY DEVELOPMENT DEPARTMENT
January 2022
APPROVED BY:
________________________
Jason Ridenour
Community Development Director
City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 2 | Page
I. BACKGROUND
On May 21, 2019, City Council adopted by ordinance, local regulations allowing commercial cannabis activities in Porterville, and identifying zoning districts. As part of the commercial cannabis regulatory framework, implementing regulations were approved by Ordinance 1853.
On February 2, 2021, the City Council gave first reading to Ordinances 1879 and 1880, and second reading on February 16, 2021, to increase the number of adult-use dispensary permits from two to three, allowing one additional cannabis adult-use dispensary business while maintaining a medical-only permit, in an effort to support a “wholly-locally owned” dispensary.
The City of Porterville (hereinafter referred to as “CITY”) is issuing this Request for Proposals (“RFP”) process for a “wholly local” retail dispensary business.
II. SUMMARY OF CANNABIS REQUEST FOR PROPOSALS
A retail dispensary permit is required for all activities for which State law requires a “Type 10,” or similar license, for the sale of Cannabis or Cannabis Products at a location open to the public.
Based on Porterville Municipal Code Chapter 15, Article VII, §15-87, the City may issue up to two (2) adult-use dispensary permits plus an additional permit per every 25,000 residents.
This RFP is for a “wholly-locally owned” adult use cannabis dispensary in the city of Porterville.
Local ownership (“wholly-locally owned”) is defined as an owner who currently resides and/or owns a business within Porterville’s Urban Area Boundary (UAB) as defined in the 2030 General Plan, for at least three years. If the applicant is an entity other than an individual, each and every member of the entity must meet the definition of local. The RFP may result in selected applicant securing eligibility to apply for a retail dispensary Cannabis Business Operator’s Permit (“CBOP”).
In order to apply for and be eligible to receive a CBOP, the applicant must have control over a physical location within the approved downtown districts or the Airport Industrial zone.
Receiving an award to apply for a CBOP does not constitute an entitlement approval.
All applicants whose proposals are accepted must thereafter enter into a Development Agreement, obtain a CBOP State license, apply for and obtain a City Cannabis permit and any other applicable regulatory approvals. The Development Agreement template is attached.
The RFP process will be in four parts as described herein. Applicants responding to the RFP are required to:
• Provide required background materials
• Submit a complete application package along with the Phase I required fee. Staff will review the application for completeness, and provide an opportunity for applicants to issue written questions.
• If it is determined the applicant meets the minimum requirements of Phase I review and has paid the Phase II required fee, the completed proposal will proceed forward to City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 3 | Page
Phase II.
• Selected applicant will enter into a Development Agreement between the City and the Business Owner and any other Responsible Parties
Instructions to applicants, RFP, and application forms may be inspected at City Hall, 29l N.
Main Street, Porterville, California. Applications and related forms may be inspected and electronically downloaded with no cost, at the Public Purchase website, https://www.publicpurchase.com. No copies of said documents will be provided by the City. All addenda and correspondence during the application process will be handled electronically through the Public Purchase website.
III. OVERVIEW OF THE APPLICATION PROCESS AND FEE STRUCTURE Background
Each applicant, prior to beginning the application process, must be able to show proof of ability to complete the Type 10 State requirements for background investigations (as defined by SB 94 §26057). There are two ways to ensure compliance:
1. Submit to the City background materials for the applicant and any “owner” as defined by SB 94 §26001 (al). Each applicant will also be required to submit to a DOJ/FBI criminal fingerprint check utilizing a Live Scan form provided by the City. Upon receiving the form, applicants must schedule and complete the Live Scan with the Porterville Police Department located at 350 N. D Street, Porterville, CA 93257.
Applicants are responsible for all fees associated with the Live Scan.
The Chief of Police (or his/her designee) will review each applicant’s Live Scan returns for disqualifying information. All Live Scan results will be forwarded to the Community Development Department to be attached to the Phase I application process, if no disqualifying information is found.
2. Alternatively, an applicant that has an existing Type 10 State issued license, and can provide evidence of successfully completing the background investigation required by the state, may provide this documentation to the City. This evidence may be subject to review by the Chief of Police (or his/her designee).
Phase I – Application Review
All applicants that successfully show completion of the criminal background investigation may submit a completed application, including (Attachment 1) and include the information outlined in this RFP. Submitted proposals must include the $750 fee.
This phase provides the opportunity to submit written questions prior to an official submittal of the proposal for Phase II. The purpose of this phase is for staff to assist in any questions requiring clarification, to confirm the appropriate zoning, evaluate the site plan and floor plan, and attest to completeness of the application. Staff’s review will be limited to objective items inasmuch as the application includes all applicable documents listed in subsection H.
City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 4 | Page
Phase II – Proposal Phase
Those applications deemed to meet the definition of “wholly locally owned” and complete, will advance to the second phase of the application process. Submitted proposals must include a $7,500 Phase II application fee. The applications will be reviewed and ranked according to the scoring rubric provided subsequently in Section VII of this RFP.
Concerning the competitive portion of this RFP process, applicants with evaluation scores of 75% (37.5 points) or better may proceed to an oral interview with the Porterville City Council (see below). Following the oral interviews, the top-rated applicants, subject to the number of available permits at the time, may receive notice informing them of the right to apply for a state license CBOP. Such applicants must apply for a CBOP within 120 days of receipt of the notice. Once the number of available permits has been reached, the remaining qualified applicants may be placed on a waiting list in order of ranked evaluation scores that will be valid for two years from the date of the notice. If an applicant that has the right to apply for a CBOP fails to secure all of the required entitlements within the proposed schedule or within one year from the date of the conditional award letter, whichever is sooner, the next applicant on the waiting list may have the opportunity to apply for a CBOP. The City Manager may extend this one-year time deadline for good cause.
Phase III – Development Agreement
The successful applicants shall be required to negotiate and enter into a Development Agreement with the City. The Development Agreement will provide the successful applicant with certain vested rights to develop the property and use it for the purposes of a cannabis dispensary for a period of years regardless of intervening changes in land use regulations, in consideration of the imposition of conditions and the payment of certain fees.
IV. ADDITIONAL TERMS AND CONDITIONS
1. Nondiscrimination
The City will not discriminate against any interested individual, firm or applicant on the grounds of race, religious creed, color, national origin, ancestry, handicap, disability, marital status, pregnancy, sex, age, or sexual orientation.
2. City’s Right to Modify the RFP
The City reserves the right at its sole discretion to modify this RFP (including but not limited to the requirements and/or the selection criteria) should the City deem that it is in its best interests to do so. Any changes to the proposal requirements will be made by written addendum posted on the City’s website. The failure of an applicant to read any addenda shall have no effect on the validity of such modification.
3. City’s Right to Suspend or Cancel the RFP
The City reserves the right at its sole discretion to suspend or cancel this RFP in part or in its City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 5 | Page
entirety should the City deem that it is in the City’s best interests to do so.
4. City’s Right to Reject All Proposals
The City Council reserves the right, at its sole discretion, to reject all proposals, and/or not to award the right to apply for a CBOP to any applicant should the City deem that it is in its best interests to do so.
5. City’s Right to Extend RFP Deadlines
The City reserves the right to extend any of the deadlines listed in this RFP by written addenda should the City deem that it is in its best interests to do so.
6. Confidential Information. Sections of the RFP have been identified as confidential information (“Confidential”) and have been identified as such. The information shall be confidential, and shall not be subject to public inspection or disclosure except as may be required by federal, state or local law. Disclosure of information pursuant to this Section shall not be deemed a waiver of confidentiality by the applicant or any individual named in the application. The City shall not be responsible and shall incur no liability for the inadvertent or negligent disclosure of such information.
7. Cost of Proposals
All costs incurred during proposal preparation or in any way associated with the applicant’s preparations, submission, presentation or oral interview shall be the sole responsibility of the applicant.
8. Liability for Proposal Errors
Applicants are solely responsible for all errors and omissions contained in their proposals.
9. Permits and Licenses
Applicants, at their sole expense and at the appropriate time, shall obtain and maintain all appropriate permits, certificates and licenses including, but not limited to, a City business license, land use permit and CBOP which will be required in connection with their proposal.
10. Fees and Taxes
Cannabis businesses are responsible for paying all applicable fees and taxes, as well as any fees negotiated within the Development Agreement.
11. Commencement of Operation
All the requisite approvals to begin commencement of operations, including without limitation, obtaining a land use permit, business license, and operator’s permit, must be obtained within the applicant’s proposed schedule, or one (1) year from the date of the notice of the right to apply for a CBOP, whichever is sooner. The City Manager may extend this one-year time deadline for good cause.
City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 6 | Page
12. Revocation of Approvals
The applicant shall operate the establishment in such a manner as to preserve the public safety, health and welfare, to prevent the use from becoming a nuisance and operate the business in compliance with all laws, ordinances and regulations. In the event that this or any other condition of approval is violated, the City Council may modify or revoke the permit as provided in Section 601.10 of the Porterville Development Ordinance. Pursuant to Section 601.10(d) the City Council may revoke the permit if it makes any of the following findings:
• That approval was obtained by means of fraud or misrepresentation of a material fact;
• That the use in question has ceased to exist or has been suspended for one year or more;
• That there is or has been a violation of or failure to observe the terms or conditions of the permit or variance, or the use has been conducted in violation of the provisions of this ordinance, law or regulation; or • That the use to which the permit or variance applies has been conducted in a manner detrimental to the public safety, health and welfare or so as to be a nuisance.
13. Authority to Sell, Transfer or Assign License
The City requires that the individuals or entities that receive an award pursuant to the RFP shall be the individuals/entities owning and operating the businesses, and the City Council reserves the right to approve or deny any request to sell, transfer ownership or assign the CBOP license.
V. PROPOSED SCHEDULE
All applicants responding to the RFP must timely submit the following (Late submittals will be returned to the applicant unopened). Applicants failing to submit the foregoing items will be eliminated from the RFP process. The City reserves the right to alter the following schedule as necessary:
RFP Issued Monday, January 3, 2022
Written Questions from Applicants due Friday, January 14, 2022 Answers to Written Questions Issued Monday, January 24, 2022 Submit Final Application and documentation, and
$750 review fee due
Friday, February 4, 2022
by 4:00 PM
Staff review of applications and letters issued for
completeness and/or correctory notices
Friday, February 18, 2022
City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 7 | Page
Proposal, Complete/Corrected Application
and $7,500 fee due
Friday, February 25, 2022
by 4:00 PM
Third Party Independent Review Monday, March 28, 2022
Interviews with City Council Wednesday, April 20, 2022
Announcement of Selected Applicants TBD
VI. PROPOSAL REQUIREMENTS
Submitted proposals must include a $750 Phase I review fee and those subsequently wanting to enter the Phase II application pay the $7,500 fee. The following information in the ensuing order is required to be deemed a complete submittal. All information submitted to the City must be current. Applicants have a continuing duty to confirm that any requested information submitted previously as partof the submittals remains accurate, and notify the City immediately of any inaccuracies. Proposals, inclusive of all attachments, shall not exceed 250 pages.
1. Provide Evidence of Secured Location for the Cannabis Business. Evidence of a secured location for a cannabis business includes, but is not limited to: a real estate letter of intent (RELOI) to lease or purchase property from a party authorized to lease or sell such properly; a purchase agreement, a lease, an option to purchase, an option to lease or purchase property; or evidence of the applicant’s ownership of the property.
These terms are defined more specifically below:
Letters of interest of any kind are not acceptable. RELOIs, leases or options to lease or purchase must clearly and specifically state that the RELOI, lease, or option to lease or purchase is for the type of cannabis business listed in the proposal. The RELOI, lease, or option to lease must reflect that the applicant will have control of the property for a minimum of five (5) years. A month-to- month lease or rental agreement is not acceptable.
Real Estate Letter of Intent: A signed written term sheet, letter of intent, or exclusive negotiating agreement between two or more parties, including the applicant, to sell, lease, or sublease property, outlining the terms by which the applicant will have control of the property for two or more years. These terms may be further negotiated but must provide the basis for a proposed written agreement.
Purchase Agreement: A signed written agreement that a person will purchase a specific property and the owner cannot sell to anyone else unless the terms of the agreement are not fulfilled.
Lease: A signed written agreement that gives a lessee certain rights to use and occupy specific property for at least two years.
City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 8 | Page
Real Estate Purchase or Lease Option: A signed written agreement for the purchase or lease of specific real property by which the purchaser or lessee has the exclusive right to purchase or lease the property for at least two years.
Proof of Ownership: A written document, such as a deed, that shows that title to the real property is vested in the applicant.
2. Provide a Statement Confirming that the Cannabis Business Location is Outside of Buffer Zone for a School. State that the location secured for the cannabis business operations is outside of the buffer zone required by the State for schools. Furnish evidence supporting the foregoing statement. Any proposal located within the buffer zone for schools will automatically be disqualified.
3. Provide a Business Plan Summary and Statement of Qualifications. Confidential.
Describe the day-to-day operations of the dispensary, including a description of the cannabis-related products and/or services being sold, as well as any additional accessory services or related facilities. Provide a detailed list of all cannabis operations proposed to occur on the premises and their processes including, but not limited to, standard operation procedures, number of employees, training program, inventory and quality control procedures, lists of both recreational and medicinal products anticipated to be available, waste management plan, transportation and distribution of product processes, delivery processes, testing, quality control practices and procedures, visitor and vendor protocols, and the track and trace procedures and policies. Include a plan to hire local individuals.
The business plan should also include the statement of qualifications of the Cannabis Business Owner’s relative to the proposal, including experience running businesses similar to the one proposed, including cannabis and/or non-cannabis businesses.
CV/resumes may be attached as an exhibit to this Section of the proposal. “Cannabis Business Owner” means “Owner,” as defined in State law, including by regulation, in addition to any of the following:
a. Each person with an aggregate ownership interest of 20 percent or more in a person, as defined herein, who applies for a Permit or is a Cannabis Business Permittee, unless the interest is solely a security interest, lien, or encumbrance.
When an entity (not a natural person) has an aggregate ownership interest of 20 percent or more, then the chief executive officer and/or members of the board of directors of each entity shall be considered owners. b. The chief executive officer of a person, as defined herein, who applies for a Permit or is a Cannabis Business Permittee.
c. A member of the board of directors of a nonprofit of a person, as defined herein, who applies for a Permit or is a Cannabis Business Permittee. d. The trustee(s) and all persons that have control of the trust and/or a person, as City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 9 | Page
defined herein, who applies for a Permit or is a Cannabis Business Permittee that is held in trust.
e. Any person, as defined herein, who assumes responsibility for the Permit. f. Each person who participates in the direction, control, or management of person, as defined herein, who applies for a Permit or is a Cannabis Business Permittee.
Such an individual includes any of the following:
i. A general partner of a partnership.
ii. A non-member manager or managing member of a limited liability company.
iii. An officer or director of a corporation.
The business plan should include a local hire program demonstrating how they would hire locally. A local hire plan could address:
a. A minimum percentage of the business’ employment base hired locally. b. A recruitment plan for new hires, including outreach methods. c. The hourly wage of the lowest-paid employee.
d. Estimated number of full and part-time positions in years one through five. e. Available job pathways.
f. Describe any plans to train employees and promote lower-level employees.
4. Proposal Implementation. Confidential. Provide verifiable, detailed descriptions and other background information for any Cannabis Business Owner. Describe other resources, including financial resources, dedicated to implement this application.
5. Understanding and Approach. Provide a statement demonstrating the applicant’s understanding and approach to running the proposed cannabis business and how that approach will integrate the business into the community in which it is located.
6. Security Practices. Confidential. Applicants shall describe their approach to operational security including but not limited to:
• General security policies.
• Employee-specific policies and training.
• Discussion of transactional security, visitor security, third-party contractor security, and delivery security.
Applicants should address ingress and egress access, perimeter security, product security (at all hours), internal security measures for limited access areas, types of security systems (alarms, cameras, etc.), and security personnel to be employed. This City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 10 | Page
discussion must also include a description of how cannabis will be tracked and monitored to prevent diversion, such as by verifying the status of recommending physicians, if selling medicinal cannabis, and retaining copies of all written recommendations from recommending physicians when applicable. Applicants are encouraged to provide a sample written policy that has been developed.
Security plans shall not be made public, unless required by court action. Security plan details that could aid persons who wish to commit security violations shall be considered confidential and shall not be released to the public unless ordered by a court of law.
7. Local ownership: Local ownership (“wholly-locally owned”) is defined as an owner who currently resides and/or owns a business within Porterville’s Urban Area Boundary (UAB) as defined in the 2030 General Plan, for at least three years. If the applicant is an entity other than an individual, each and every member of the entity must meet the definition of local. The local owners must provide verifiable information regarding the number of years each owner has lived in, and/or owned a business in, Porterville’s Urban Area Boundary (UAB) as defined in the 2030 General Plan. Names are confidential, the composition of how the ownership meets the criterion is not. Provide verifiable information such as business license information, property tax bills, business name(s) and address(s), and the number of years each owner has lived in and/ or owned a business(s) in Porterville’s UAB.
8. Proposed schedule. Provide a schedule for opening the cannabis business. The schedule should include dates for the following:
a. Design review, if applicable
b. Signage approval, if applicable
c. Issuance of State license(s)
d. Land Use permit
e. Issuance of CBOP
f. Issuance of Building permit
g. Issuance of other regulatory permits (e.g., discharge permit, etc.) h. Completion of construction
i. Opening and commencement of operations
9. Community benefit: Describe the applicant’s proposed involvement in the City of Porterville, specific to downtown beautification projects, and plans to mitigate any nuisance and/or negative impacts. For further information, see Development Agreement template, attached.
10. Indemnification. The applicant must agree to indemnify the City as set forth in the attached Indemnification Agreement
VII. EVALUATION PROCESS
Applications (Proposals) must fully address the proposal requirements in V above and the City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 11 | Page
evaluation criteria and scoring rubric in VIII below, as well as provide complete submittals, references and data to verify qualifications. Proposals without sufficient data to provide a complete evaluation will be considered non-responsive.
All proposals will be reviewed for compliance with requirements including documented capability to operate a cannabis business in a satisfactory manner. Proposals will be evaluated in accordance with the criteria set forth below.
City shall employ a third party independent review to score written proposals.
The City Council reserves the right to invite those with a passing score to participate in an interview process to be defined at a future date. The interview includes the scoring of 50 potential points.
The City may make a conditional award to the applicant or applicants offering the most advantageous proposal after consideration of the evaluation criteria set forth below. The City will not be obligated to accept any given proposal, but will make the conditional award in the best interests of the City after all proposals have been evaluated.
VIII. EVALUATION CRITERIA Minimum Requirements
Phase I fee of $750 was paid and the CBOP complete application was submitted on or before the February 4, 2022, 4:00pm deadline Pass/Fail
RFP fee of $7,500 was paid and the response to the RFP was submitted on or before the February 25, 2020, 4:00pm deadline
Pass/Fail
Evidence of a secured location for the cannabis business Pass/Fail Evidence that the location is outside of cannabis buffer zones for schools Pass/Fail Evaluation Criteria
The table below is a scoring rubric to evaluate proposals received in response to the RFP. The responses will be scored on a zero to 50-point scale, excluding the interview. The applicant must receive a minimum of 75% (37.5 points) of the total possible points to proceed to the interview process.
Interviews will be scored on a zero to 50-point scale. The maximum points available, including the interview, is 100 points.
1. Local Ownership (defined by Porterville UAB) (Pass/Fail)
2. Business Operations Plan and Statement of Qualifications 15 Has applicant described how the commercial cannabis business day-to-day operations of the facility will function, including standard operating procedures? 5 Has the applicant provided a full description of the proposed business, including proposed staffing levels, products, product types, testing protocols, licensing requirements, etc., demonstrating how it will operate its business? 5 City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 12 | Page
Has the applicant provided resumes/CVs and other relevant materials, for and about primary and significant persons that will be responsible for implementing key portions of the proposed business?
5 3. Verifiable detailed description of persons and type of resources, including financial resources, committed to implement the proposal 15 Has the applicant submitted a financial statement, balance sheet, and tax returns that attest to its financial health and ability to finance and operate the proposed business?
5 Has the applicant committed to initial investment amounts and shown how it will reinvest in the business over time?
5 Does the applicant show that it is investing in equipment, technology and facilities that are appropriate for the nature of the business?
5 4. Summary of Security Practices 15
Has the applicant provided a full description of security policies including ingress and egress access, perimeter security, product security at all hours, product tracking, security systems and verification of the status of recommending physicians?
5 Has the applicant described employee-specific policies and training? 5 Has the applicant adequately described transactional security, visitor security, third-party contractor security and delivery security?
5 5. Proposed schedule 5
Does the schedule clearly provide realistic milestones for the following items? 3 a. Design review, if applicable
b. Signage approval, if applicable
c. Issuance of State license(s)
d. Issuance of CBOP/Land Use permit
e. Issuance of Building permit
f. Issuance of other regulatory permits
g. Completion of construction
h. Opening and commencement of operations
Does the schedule provide a detailed, comprehensive timeline for starting operations of the business?
2 Total 50
IX. SUBMITTAL INSTRUCTIONS
The proposal shall be signed by an individual(s) authorized to execute legal documents on behalf of the applicant. Failure to provide all required submittals may result in a proposal being found non-responsive and given no consideration.
Two (2) hard copies of the proposal and one electronic PDF version of the proposal ona flash drive shall be provided in a sealed envelope with a return address, including business name, no later than Friday, February 4, 2022 by 4:00pm for Phase I and Friday, February 25, 2022 City of Porterville
Request for Proposals for “Wholly Local” Cannabis Business Operating Permit 13 | Page
by 4:00pm for Phase II to the following address:
Community Development Department
Porterville City Hall
291 N. Main Street
Porterville, CA 93257
Attention: Community Development Director
Late proposals will not be considered and will be returned to the applicant unopened. The City assumes no responsibility for delays caused by delivery service. Postmarking by the due date will not substitute for actual timely receipt.
Any proposal received prior to the submittal date may be modified or withdrawn by written request from the applicant to the City up to the submittal deadline. Proposals, inclusive of all attachments, shall not exceed 250 pages.
X. QUESTIONS
For information concerning RFP procedures and regulations (i.e., submission deadline, required forms, etc.), interested parties shall request clarification electronically through the Public Purchase website.
Attachments
1. Commercial Cannabis Business Permit Application – Storefront Dispensary
2. Porterville Live Scan Application
3. Indemnification Agreement
4. Development Agreement Template
5. Cannabis Ordinances
CITY OF PORTERVILLE
Community Development Department
291 North Main Street, Porterville CA 93257
(559)782-7460
Commercial Cannabis Business Permit Application – Storefront Dispensary A. BusinessInformation
Business Name:
Property Address:
Assessor Parcel Number: Zoning Designation:
B. Business Type (Check all that apply)
Retailer Storefront (Adult-use) Retailer Storefront (Medical) Retailer Storefront (Adult-use and Medical)
*GR – Gross Receipts
C. Definitions
Applicant - The entity petitioning for the Cannabis Business Operator Permit.
Principal(s) - The individual members of the applicant team.
Primary Principal - An individual who has a 10% or greater ownership stake of the applicant business, which includes partners, officers, directors, and stockholders of every corporation, limited liability company, or general limited partnership that owns at least 10% of the stock, capital, profits, voting rights, or membership interest of the commercial cannabis business or that is one of the partners in the commercial cannabis business; the managers of the commercial cannabis business.
Operator - An applicant that has been licensed and conducts or conducted active cannabis operations.
Majority - A greater number; more than half. An equal number does not constitute a majority.
D. ApplicantInformation
Name of Primary Responsible Party Completing the Application:
Title: DOB:
Social Security No:
If applicant is a not for profit, corporation, partnership or other business entity, please identify:
Name of Business Entity:
Type of Ownership:
Federal Tax Id: Start Date:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email E. Additional Responsible Party Information
Name:
Title: DOB:
Social Security No:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email Please attach additional sheets if there are more than 2 Responsible Parties.
F. Information on Property Owner or Landlord
Name:
Mailing Address:
Primary Phone No: Alt. Phone No:
Email Address:
Preferred method of contact (check one) Mail Phone Email If the applicant is not the legal owner of the property, the application must be accompanied by a notarized Owner’s Statement of Consent to operate a commercial cannabis business on the property.
G. Related License Information
The applicant and/or responsible parties has been associated with a commercial cannabis business permit in the past 10 years.
Name:
City or County: Start Date: End Date:
Business Name: Business Type:
Please attach additional sheets if necessary.
H. Required Submissions (Please check the box for eachattachment) Please attach all applicable documents listed below as part of your application as they pertain to your business type. For any items that do not apply to your business type, please provide a brief explanation as to why they do not apply.
Business Operations Plan
• Business Plan: A plan describing how the commercial cannabis business will operate in accordance with City code, state law, and other applicable regulations. The business plan must include plans for handling cash and transporting cannabis and cannabis products to and from the site. The plan must include a description of the day-to-day operations of the facility including but not limited to standard operating procedures, number of employees, training program, inventory and quality control measures, lists of both recreational and medicinal products anticipated to be available (if applicable), waste management plan, delivery processes, testing, quality control practices and procedures, visitor and vendor protocols (logs, non-disclosures, etc.), and track Yes No (If yes, please provide the following information) and trace procedures and policies.
• Community Relations Plan: A plan describing who is designated as being responsible for outreach and communication with the surrounding community, including the neighborhood and businesses, and how the designee can be contacted.
• State Licenses: Copies of the state licenses relating to the commercial cannabis business licenses, the applicant holds (when available).
• Insurance: The applicant’s certificate of commercial general liability insurance and endorsements and certificates of all other insurance related to the operation of the cannabis business. • Budget: A copy of the applicant’s most recent annual budget for operations (If available) • Financial Capacity/Proof of Capitalization: Proof demonstrating sufficient capital is in place to pay startup costs and at least three months of operating costs. Proof of capitalization shall be in the form of financial information such as bank statements and balances, available loans and/or other sources of funding the enterprise, and/or documentation of cash or other liquid assets; and a Letter of Credit. • Products and Services: A list/description of the general products and services the business will provide. • Management Team: An organization chart with the name and role of each known member of the management team, including roles that are known but unfilled, resumes for each member of the management team, a discussion of the experience of the management team, and information concerning any special business or professional qualifications or licenses of the management team that would add to the number or quality of services that the facility would provide, especially in areas related to medicinal cannabis, such as scientific or health care fields
Education Plan: A plan describing the type of cannabis education and prevention efforts that will be provided by the business to the community.
Security Plan: The security plan must be prepared by a qualified professional. A detailed security plan must outline the measures that will be taken to ensure the safety of persons and property on the business site, including general security policies, employee-specific policies and training, discussion of transactional security, visitor security, third-party security, and delivery security. Applicants should address ingress and egress access, perimeter security, lobby and storage area security, product security (at all hours), internal security measures for limited access areas, type of security systems (alarms, cameras, etc.), and security personnel to be employed. Displayed items must be secured behind a counter, and only accessible in the presence of an employee. Video surveillance must be provided at all times in a manner and design approved by the Porterville Police Department, and stored for a period of at least 90 days, and accessible by the Department. Facilities shall have a burglar alarm, to include panic buttons located at the front lobby and retail areas. Alarm services must be provided/monitored by a third party alarm company, with notification to the Porterville Police Department. GPS data for delivery vehicles must be preserved for not less than 90 days and made available to the Porterville Police Department upon request. The discussion must also include a description of how cannabis will be tracked and monitored to prevent diversion, such as by verifying the status of recommending physicians and retaining copies of all written recommendations from recommending physicians when applicable.
Applicants are encouraged to provide a sample written policy that has been developed. Security plans shall not be made public, unless required by court action. Security plan details that could aid persons who wish to commit security violations shall be considered to be confidential and shall not be released to the public unless ordered by a court of law.
Lighting Plan: A detailed lighting plan showing existing and proposed exterior and interior lights that will provide adequate security lighting for the business site. The lighting plan shall be subject to review, adjustment and approval of all City Departments.
Site and Floor Plans: A dimensioned site plan of the business site, including all buildings, structures, driveways, parking lots, landscape areas and boundaries. Also provide dimensioned floor plans for each level of each building that makes up the business site, including the entrances, exits, and walls. The plans shall also include the following information about the site: current zoning, parking requirements, consistency with development standards for the zone and any applicable design guidelines, the new development planned for the site, and any other site development information. Entrances shall be unobstructed by tall landscaping or architectural features, and shall be visible from the public right of way and parking areas. The floor plan must provide for a front lobby that is completely separate and secured from the dispensary, for a separate secured storage room (which is illuminated and ventilated, and constructed of materials not easily compromised such as steel or concrete), and all requirements as required by State law. All facilities shall have a secured room within which all non-display cannabis merchandise is stored. The applicant must provide proof of ability to lease or purchase the property (Property Owner Affidavit). The plans provided must be to scale. The Retail Operation may be a component of a larger development proposal which can be described in this application.
Odor Control Plan: A detailed plan describing how the applicant will prevent all odors generated from the storage of cannabis from escaping from the buildings on the business site, such that the odor cannot be detected by a reasonable person of normal sensitivity outside the buildings.
Product Safety and Labeling: The applicant shall provide how the facility will ensure enhanced consumer safety by testing or confirming that testing has been certified for biological and chemical contaminants. The applicant must also submit a discussion regarding the product labeling standard to be employed and how they will be in compliance with state and local laws, regulations, and policies. The applicant must also provide information on product labeling sufficient to ensure that cannabis and edible products containing cannabis clearly identify the percentage level of delta-9 (trans) tetrahyrdacannabinol, cannabidiol, and cannabinol, and have adequate warnings.
Community Benefits: The applicant shall demonstrate to the satisfaction of the City of its intent to local hiring and community support. The applicant must provide a discussion of how it intends to provide the City and its residents with community benefits and mitigate any nuisance and/or negative impacts that the facility’s existence may create. Applicants must provide the City a description of how it plans to develop and implement a Community Benefits Program. Examples of benefits could include, but are not limited to, supporting or funding community programs, employment and job training programs, contributing to local substance abuse programs, funding foreclosure prevention programs, or other activities that benefit the local neighborhood as well as the City of Porterville. Such benefits and funding shall be set forth in a Development Agreement with the City.
Hiring and Employment Practices: The applicant must submit a description of their labor and employment practices. These policies and practices could include, but are not necessarily limited to a discussion of hiring plan, training and continuing education opportunities (introductory and ongoing) that will be provided, the provision of equal benefits and/or the execution of a declaration of non-discrimination, and, for an applicant with 20 or more employees, a statement that the applicant will enter into or demonstrate that it has already entered into and will abide by, a labor peace agreement.
I. CityAuthorization
I, the applicant, provide authorization and consent for the City Manager or his/her designee to seek verification of the information contained on this application.
J. Indemnification
I, the applicant, agree to the fullest extent permitted by law, any actions taken by a public officer or employee under the City of Porterville regulations for Commercial Cannabis Businesses, shall not become a personal liability of any public officer or employee of the City. To the maximum extent permitted by law, the permittee shall defend (with counsel acceptable to the City), indemnify and hold harmless the City of Porterville, the Porterville City Council, and its respective officials, officers, employees, representatives, agents and volunteers from any liability, damages, actions, claims, demands, litigations, loss (direct or indirect), causes of action, proceedings, or judgments (including legal costs, attorneys’ fees, expert witness or consultant fees, City Attorney or staff time, expenses or costs) against the City to attach, set aside, void or annul, any cannabis-related approvals and actions and strictly comply with the conditions under which such permit is granted, in any. The City may elect, in its sole discretion, to participate in the defense of said action and the permittee shall reimburse the City for its reasonable legal costs and attorneys’ fees.
K. Nonrefundable Filing Fee
I, the applicant, understand and accept that the nonrefundable filling fee must be submitted with the competed Commercial Cannabis Business Permit Application and will be retained by the City regardless of the out-come of the application review.
I, the applicant, understand that a completed and processed Request for Live Scan Service, State of California Form BCIA 8016, as determined by the City of Porterville, by a duly authorized business must be provided for the applicant and all interested parties. All applicable fees and charges are the responsibility of the applicants and interested parties.
L. Background – Request for Live Scan Services
M. Disqualification
• Application was received late
• Application is incomplete or inaccurate
• Facility does not meet City business licensing standards • More than one application is received for the same cannabis business type on one property (stacking of applications)
N. Applicant’s Certification
I agree to abide by and conform to the conditions of the permit and all provisions of the Porterville Municipal Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the approval of the Commercial Cannabis Business Permit shall, in no way, permit any activity contrary to the Porterville Municipal Code, or any activity which is in violation of any applicable law.
The information provided is genuine and not a sham, collusive, or made in the interest or on behalf of any party not therein named, and that the applicant has not directly or indirectly induced or solicited any other applicant to put in a sham proposal, or any other applicant to refrain from presenting information and that the prospective provider has not in any manner sought by collusion to secure an advantage.
The applicant has not paid or agreed to pay any fee of commission, or any other thing of value contingent upon the award of a permit or of any exclusive operating area, to any employee, official, or existing contracting consultant of the City of Porterville.
All costs of preparation or proposals including travel for any interviews scheduled shall be borne by the applicants.
All proposals become the property of the City of Porterville. The City reserves the right to reject any and all submittals; to request clarification of information submitted; to request additional information from competitors; and to waive any irregularity in the submission and review process. None of the materials submitted will be returned to the bidder.
Information or materials submitted in response to this application will be stored of file with the City of Porterville, and may be subject to the requirements of the California Public Records Act, or subject to public disclosure as ordered by a court of law. Proposed security plans shall be considered confidential.
The City reserves the right to request additional information not included in this application from any or all applicants.
The City reserves the right to contact references not provided in the submittals.
The City reserves the right to incorporate its standard agreement language into any contract resulting from this application.
The applicant understands that if selected to receive a permit by the City, applicant will be, in accord with City regulations, required to enter into a Development Agreement with the City containing additional terms and conditions for the development and operation of the business. Due to the unique nature of the subject business, a Development Agreement will be crafted to establish the terms and parameters within which the business may develop. If the applicant and City enter into a Development Agreement, the applicant will have five (5) years to operate a dispensary subject to the Agreement terms and conditions, the local regulations in effect at the time the Development Agreement was executed, and all applicable State law in effect at the time and as may be amended.
I certify under penalty of perjury under the laws of the State of California, that I have personal knowledge of the information contained in this application, that I am authorized to execute this application and all portions thereof, and that the information contained herein is true and correct.
Signature: Date:
The information contained on this document is subject to disclosure under the Public Records Act.
Applicants providing false or misleading information in the permitting process will result in rejection of the application and/or nullification or revocation of any issued permit. All commercial cannabis permits must be approved by the City Council. The City may attach conditions to the permit. A commercial cannabis permit may be denied if any of the following findings aremade:
(i) The application does not meet all requirements of the commercial cannabis ordinance; or (ii) Approval would very likely result in harm to public safety, health, or welfare; or (iii) Potential negative impacts of the use cannot be mitigated with conditions or through the ordinance requirements.
Applicants will be notified regarding application completeness
COMMERCIAL CANNABIS BUSINESS OPERATORS PERMIT APPLICATION PROPERTY OWNER’S STATEMENT OF CONSENT
If the applicant is not the owner of record of the subject site, the following Statement of Consent must be completed by the owner or the owner’s authorized representative, granting the applicant permission to apply for a cannabis business operator permit.
I, the undersigned legal owner of record, hereby grant permission to:
Applicant: Phone:
Mailing Address:
To operate a commercial cannabis business on the property described below. I agree to abide by and conform to the conditions of the permit and all provisions of the Porterville Municipal Code pertaining to the establishment and operation of the commercial cannabis business. I acknowledge that the approval of the Commercial Cannabis Business Permit shall, in no way, permit any activity contrary to the Porterville Municipal Code, or any activity which is in violation of any applicable law. I further understand that I am responsible for, and also subject to, enforcement actions regarding any violations and/or nuisance activity which may occur at this property if leasing the property to the applicant.
The subject property is located at:
Assessor’s Parcel Number:
Printed Name of Owner of Record:
Address of Owner of Record:
Phone: Email address:
Signature of Owner of Record: Date:
Attach:
Proof of possession of the premises and approval of use (deed, lease, lease assignment, agreement showing willingness to sell property if applicant obtains permit) Notary Use Only:
State of California
County of Tulare
On this, the day of , 20 , before me a notary public, the undersigned officer, personally appeared , known to me (or satisfactorily proven) to be the person whose name is subscribed to the within instrument, and acknowledged that he/she executed the same for the purpose therein contained.
I witness hereof, I hereunto set my hand and official seal.
Notary Public
CITY OF PORTERVILLE
INDEMNIFICATION AGREEMENT
Pursuant to Porterville Municipal Code Chapter 21, Section 601.02(b)(4), and to the fullest extent permitted by law, the “Applicant” (owner of the subject property; or an agent representing the owner, duly authorized to do so in writing by the owner, including, but not limited to, a person with a duly executed written contract or exclusive option to purchase the subject property or a lessee in possession of the subject property) hereby agrees to defend, indemnify and hold harmless the City of Porterville, its officers, attorneys, agents, and employees:
1. From any claims, actions, proceedings or liability of any nature (collectively referred to as proceeding) brought against the City or its officers, attorneys, agents or employees, to attack, set aside, void, or annul:
a. Any action or decision by City Staff, City Council or any other City entity related to the subject property.
b. Any action taken to provide related environmental clearance or decisions under the California Environmental Quality Act (CEQA) by City Staff, City Council or any other City entity concerning the subject property.
The indemnification is intended to include but not be limited to damages, fees, and/or costs awarded against the City, if any, and cost of suit, attorney’s fees, and other costs, liabilities and expenses incurred in connection with such proceeding whether incurred by the Applicant, the City, and/or the parties initiating or bringing such proceeding.
2. The Applicant hereby agrees to indemnify the City for all of the City’s costs, fees, and damages which the City incurs enforcing the indemnification provisions of this Agreement.
3. In the event of a proceeding, the City retains the right to approve counsel to defend the City, all significant decisions concerning the manner in which the defense is conducted, and any and all settlements, which approval shall not be reasonably withheld. The City has the right not to participate in the defense, except that the City agrees to cooperate with the applicant in the defense of the proceeding. If the City chooses its own counsel to defend the City, the fees and expenses of the counsel selected by the City shall be paid by the City. Notwithstanding the above, if the City Attorney’s office participates in the defense, all City Attorney fees and costs shall be paid by the Applicant.
4. The defense and indemnification of the City set forth herein shall remain in full force and effect throughout all stages of litigation including appeals of any lower court judgments rendered in the proceeding.
____________________________________
Print Name and Date
____________________________________
Signature (Owner or Legal Representative)