Redondo Beach City Council
September 5, 2023

Administrative
Report
N.2., File # 23-5948 Meeting Date: 5/16/2023
To: MAYOR AND CITY COUNCIL
From: ELIZABETH HAUSE, ASSISTANT TO THE CITY MANAGER

BRANDY FORBES, COMMUNITY DEVELOPMENT DIRECTOR
TITLE

DISCUSSION AND POSSIBLE ACTION ON THE PROPOSED CANNABIS LICENSING

APPLICATION PROCESS AND ASSOCIATED COST RECOVERY FEES

EXECUTIVE SUMMARY
On September 6, 2022 the City Council adopted cannabis regulatory ordinances for both inland and coastal areas of the City. The inland ordinance became effective 30 days after adoption, and the coastal ordinance became effective when it was certified by the California Coastal Commission on March 9, 2023. On November 8, 2022, the City Council adopted a resolution submitting to the City voters a ballot measure to establish a business tax on cannabis businesses. During the March 7, 2023 municipal election, voters passed Measure CT allowing the City to collect annual taxes from marijuana and hemp business operators at rates ranging from 3% to 9% of gross retail sales, and from 1% to 3% of gross sales on cultivation, distribution, manufacturing, and testing. A Resolution to codify the tax rates by type, will be returned for City Council consideration when the business license selection process is approved for initiation.

As part of the City’s ongoing effort to implement local cannabis regulations, the City Council approved an agreement with HdL Companies (HdL) to review the City’s draft cannabis regulatory ordinances and other cannabis-related procedural tasks, including assistance with the development of an application process for future cannabis permits. The contract with HdL was approved on June 21, 2022.

Since adoption of the cannabis regulatory Ordinances and passage of Measure CT, HdL has worked with staff to create a permit application process for cannabis businesses interested in operating in Redondo Beach. After extensive research into processes other cities have established and consideration of the regulations set forth by the City’s Ordinances, the attached draft Commercial Cannabis Business (CCB) licensing application guidelines (Guidelines) have been drafted and are ready for review. It is recommended that the City Council discuss the Guidelines and provide direction to staff on any proposed revisions or modifications.

Also for City Council consideration are two supplemental items that are complementary to the application process: 1) a resolution on process integrity guidelines that would ensure the proposal process is conducted impartially and without undue influence on City staff, and 2) an amendment to HdL’s contract to include assistance with various tasks during the cannabis application process, including initial review of applicant qualifications and interview coordination. It is staff’s

N.2., File # 23-5948 Meeting Date: 5/16/2023
recommendation that the City move forward with both items.

BACKGROUND
In order to analyze and identify the cannabis regulations appropriate for Redondo Beach, a Cannabis Steering Committee was appointed by the previous City Manager. The body was comprised of representatives from the law enforcement community, Redondo Beach Unified School District, Beach Cities Health District and other outside interest groups familiar with common best practices for commercial use regulations of cannabis, including storefront siting, taxation, delivery and development agreement options. The Cannabis Steering Committee met multiple times over several years, and on October 5, 2021 presented their recommendations to the City Council.

Based on those recommendations, City Council directed staff to begin preparing a draft ordinance designed to regulate commercial cannabis activity in the City. Per City Council direction, the Planning Commission reviewed the draft Cannabis Ordinances (inland and coastal) at a public hearing held on March 3, 2022. The Planning Commission provided several recommendations at the hearing, including that the City engage a consultant with experience advising the municipal regulation of the cannabis industry to assist in the review of the City’s draft Ordinance.

On May 10, 2022 the City Council considered the Planning Commission recommendations and provided direction to staff on the final preparation of the Ordinances. City Council, as part of that action, directed staff to prepare an agreement with HdL to review the City’s draft Cannabis Regulatory Ordinances and other cannabis-related procedural tasks, including preparation of a cannabis tax ordinance. The contract with HdL was approved at the June 21, 2022 City Council meeting.

HdL reviewed the City’s draft cannabis regulatory Ordinances and provided staff with recommendations and comments. The Ordinances were amended to include the Planning Commission recommendations as directed by City Council and the HdL recommendations supported by City staff. City Council adopted the Ordinances on September 6, 2022.

The contract with HdL also included the preparation of a cannabis business tax Ordinance as well as assistance with preparation of the subsequent ballot measure. At the September 20, 2022 meeting, City Council discussed the draft Cannabis Tax Ordinance and provided direction to staff to add changes and return to the Council with a completed resolution to add the Cannabis Taxation Ordinance as a ballot measure for the March 7, 2023 municipal election.

The public hearing to consider the Resolution for this action was opened on November 1, 2022. The City Council and the City Clerk requested revisions to the language in the Resolution and Ordinance, and, as such, the public hearing was continued to November 8, 2022 to incorporate City Council’s direction on the documents. On November 8, 2022, the Council adopted Resolution No. 2211-092 submitting to the City voters a ballot measure to establish a business tax on marijuana and hemp business operators.

The City’s municipal election was held on March 7, 2023, and voters approved Measure CT allowing the City to collect annual taxes from marijuana and hemp business operators at rates ranging from 3% to 9% of gross retail sales, and from 1% to 3% of gross sales on cultivation, distribution,

N.2., File # 23-5948 Meeting Date: 5/16/2023
3% to 9% of gross retail sales, and from 1% to 3% of gross sales on cultivation, distribution, manufacturing and testing. Since that time, HdL has worked with City staff to create a permit application process for cannabis businesses interested in operating in Redondo Beach. Below is an overview of the permit application process outlined in the attached Application Guidelines (Guidelines).

Permit Application Process
Application and Submittal Parameters
The Guidelines establish several general parameters CCB applicants must abide. Both a Zoning Verification Letter request and background check are required, and the only point of contact for questions from prospective applicants will be the assigned Assistant to the City Manager (ATCM).

The ATCM will also receive all CCB application packages. CCB application packages must be submitted in both hard copy and digital formats and can be submitted in person or by US Mail/common carrier service.

Once an application is submitted, it may not be amended by the applicant. That said, if, after initial review, there is minor information missing (e.g. missing signature, incorrect formatting, etc.), the applicant will be notified of the missing information and will be granted five business days to remedy the issue. Only the requested missing information will be considered - any additional documentation will not be accepted as part of the submittal.

Applicants possessing an ownership interest of ten percent (10%) or more in a CCB permit application are limited to submitting only one permit application. Additionally, the City will only accept a maximum of two application Zoning Verification Letters per property.

Required Documents
Below is a list of documents required for submittal (drafts are attached):
· Commercial Cannabis Business Permit Application (inclusive of responses to Appendix A) · Financial Responsibility, Indemnity and Consent to Inspection Terms Agreement · Agreement on Limitations of City’s Liability and Indemnification to City · Application Fee and Background Check fee(s)
· Property Owner Consent/Landlord Affidavit
· Zoning Verification Letter (ZVL)
Application Processing and Procedures
The application process occurs in four phases:

Phase I: Determination of Eligibility. During this phase, applications are reviewed for completeness and compliance. This is to ensure all required items outlined in the application have been submitted.

Applicants whose submittals are missing key sections (e.g., business plan) will be disqualified. There is no scoring of applications during this phase.

Phase II: Application Quality Assurance Review. During Phase II, the assigned ATCM (or HdL representative, if contracted for the work) will review and score each application using the following evaluation criteria identified in Appendix A of the Guidelines:

N.2., File # 23-5948 Meeting Date: 5/16/2023
· Business Plan (400 points)
· Labor and Employment Plan (400 points)
· Security Plan (400 points)
The ATCM (or HdL representative) will then determine how many applicants will be interviewed based upon the overall quantity and quality of applications received by the City.

Phase III: Interviews. 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 also identified in Appendix A of the Guidelines:
· Qualifications of Owners (400 Points)
· Neighborhood Compatibility (400 Points)
· Community Benefits and Investments Plan (400 Points)
· Proposed Site Plan (400 Points)
Once all interviews are completed, the Staff Selection Committee will calculate the scores of all applicants from Phase III to create a preliminary ranking. The ranking will be based solely upon the scores received through the Phase III interview process, with no consideration given to scores received during the Phase II Quality Assurance Review. The decision as to how many CCB applicants will advance to Phase IV will be determined by the ATCM based upon the overall quantity and quality of Applicants under consideration. CCB applicants selected to advance to Phase IV of the process will be required to undergo an additional background check conducted by the City’s Police Department.

Phase IV: City Council Interviews and Final Selection. During this phase, staff will present to the City Council the top applicants from the Phase III process. The City Council will interview the top applicants and make a final determination as to which applicant(s) will be awarded a CCB permit. In making this decision, the City Council has full discretion over what criteria to consider when evaluating applicants. After the City Council has made a determination as to which, if any, of the applicants will be awarded a CCB permit, the successful applicant(s) will enter into a Development Agreement with the City (as defined in Section 6-2.05 of the RBMC).

Appeals Process
Any applicant may appeal Phases I through III of the application process. This can be done by filing an appeal with the City Manager’s Office within ten (10) days of receiving the notice that they were not moved forward in the application process or not selected for permit issuance. Appeals must comply with the requirements of RBMC Section 1-4. Any decision made by the City Council during Phase IV regarding the award of a cannabis permit is final and is not subject to appeal.

Fees
Staff continues to work with HdL to complete a fee study and determine the appropriate staff time required to complete the application process and subsequent regulatory activities. A proposed fee schedule will be presented to Council for approval by resolution prior to initiation of the selection process. The following are fees staff propose the City collect as part of managing the CCB program and application process:

N.2., File # 23-5948 Meeting Date: 5/16/2023
· CCB Application Fee: This fee is designed to recover City expenses for the intake and processing of CCB applications, and will be based upon the estimated dedicated staff time, consultant fees and other expenses necessary to the CCB application process. · CCB Annual Regulatory Fee: City departments including the City Manager’s Office, Community Development, Financial Services and Police Departments will oversee the local cannabis industry and will need to carry out regulatory activities such as policy development, program management, public outreach and education, administrative enforcement, coordination with state agencies, public safety and other oversight activities. This fee will be a cost recovery for these activities.
· Appeal Process Fee: CCB applicants wishing to appeal an application denial will be charged a non-refundable fee to recover the City’s cost to administer the appeal process. · ZVL Fee: Cost recovery fee for the issuance of a ZVL by Community Development staff. · Criminal Background Investigation Fee: Chapter 6-2 of the RBMC requires that cannabis business owners complete a criminal background investigation as part of the CCB application process. A third-party consultant will be utilized to conduct initial criminal background investigations on behalf of the City, and this cost will be charged to the applicant.

Additional CCB Application Elements
A webpage will be created to provide all forms required for the application process, as well as a section dedicated to frequently asked questions. The URL for this webpage will be www.redondo.org/CCBApplication
As part of the CCB application process, each Owner as defined in RBMC Section 10-2.1626 must undergo a criminal history background check, which will be conducted through a third-party processor. As noted above, any CCB applicants selected to advance to Phase IV of the process will be required to undergo an additional background check conducted by the City’s Police Department.

A ZVL must be obtained by the CCB applicant as part of the application process - this letter is specific to the CCB applicant and location, and is separate and distinct from the standard zoning letter from the City. To secure this letter, an Applicant must make a written request to the Community Development Department via email to [email protected]. These will not be issued until the application process period has been initiated.

Supplemental Items for Consideration
In addition to City Council’s review of the CCB Application guidelines, staff is also seeking direction on the following:

Resolution for Process Integrity Guidelines
Passing a resolution to establish process integrity guidelines during the CCB application process would promote fairness, transparency and accountability and will help to build trust and confidence in the CCB application process. This Resolution would expressly forbid collusive activities among applicants, prohibit promotional outreach, hospitality or gifts to City staff or elected officials and reiterate communication parameters set by the CCB Guidelines. The CCB Guidelines, as written, already include a section on process integrity (see page 3), though City Council may wish to take this additional, separate action to emphasize the importance of process integrity. Resolution No. CC1003-294, adopted in 2010 during the procurement process for the City’s solid waste handling

N.2., File # 23-5948 Meeting Date: 5/16/2023
1003-294, adopted in 2010 during the procurement process for the City’s solid waste handling services contract, is attached for reference.

Amendment to HdL Contract
Considering the anticipated staff time required for the management of the CCB application process, staff requested HdL submit a proposal for assistance with certain phases and activities, including:
· Phase I Determination of Eligibility, as outlined in the Guidelines · Phase II Quality Assurance Review, as outlined in the Guidelines · Phase III Interview facilitation tasks, including scheduling and technical assistance when needed
· Final report on both application review and interview process, a document that will be shared with the Council and public prior to Council’s final determination.

HdL’s proposal is attached here and has an estimated cost of $92,500, though this amount could vary depending on the number of applications received and processed. The cost of these services would be added to the City’s CCB application processing fee and fully recovered.

In summary, this agenda item seeks Council’s discussion and possible action on three items:
· Review of the drafted CCB application process guidelines and direction on any revisions. · Direction on the preparation of a Resolution to establish process integrity guidelines. · Direction on the preparation of an amendment to HdL’s current contract to provide assistance during the City’s CCB application process.

COORDINATION
The development of the CCB Application Guidelines was completed in coordination with the City Manager’s Office and HdL. The preparation of previous ordinances and resolutions were done in coordination with the City Manager’s Office, the City Attorney’s Office and HdL.

FISCAL IMPACT
The fiscal impact to the City for CCB application processing and management is unknown at this point, though the fee study will be completed soon. Preliminary estimates show an application fee between $12,000-$16,000 per applicant, and an annual regulatory fee within the same range for each CCB permittee - these estimates will change depending on Council direction pertaining to HdL’s scope of services as well as any variables identified in staff resource allocation. Staff will have proposed fee amounts for Council’s consideration within the next few weeks.

Notwithstanding the above variables, staff’s initial estimate is that each licensed site in Redondo Beach could provide $500,000 to $1,000,000 in additional annual General Fund cannabis business tax revenue, provided the City moves forward with the adoption of a regulatory ordinance and the recommended tax and/or developer agreement fees.

The preparation of the Ordinances, staff report and community input survey are within the workplan and annual budgets of the Community Development Department, City Manager’s Office and the City Attorney’s Office.

N.2., File # 23-5948 Meeting Date: 5/16/2023
APPROVED BY:

Mike Witzansky, City Manager

ATTACHMENTS

1. Draft CCB Application Guidelines

2. Draft CCB Permit Application Required Forms

3. Resolution No. CC-1003-294, March 16, 2010

4. HdL Proposal for CCB Application Process Assistance, April 28, 2023

5. Resolution No. CC-2211-092, November 8, 2022

6. Admin Report - City Council, November 8, 2022

7. Admin Report - City Council, November 1, 2022

8. Ordinance No. 3240-22 (Title 6 licensing), September 6, 2022

9. Ordinance No. 3241-22 (inland), September 6, 2022

10. Ordinance No. 3235-22 (coastal), September 6, 2022

11. Admin Report - City Council, August 16, 2022

12. Admin Report - City Council, August 2, 2022

13. Admin Report - City Council, July 19, 2022

14. Proof of Publication Public Hearing Notice, July 7, 2022

15. Proof of Publication Public Hearing Notice, August 6, 2022

16. HdL Review Matrix

17. Admin Report - City Council, May 10, 2022

18. City Council Presentation, May 10, 2022

19. Reso - Planning Commission No. 2022-03-PCR-02, March 3, 2022

20. Minutes - Planning Commission, March 3, 2022

21. Admin Report - Planning Commission, March 3, 2022

22. Planning Commission Presentation, March 3, 2022

1 City of Redondo Beach
City Manager’s Office
415 Diamond Street
Redondo Beach, CA 90277
Email: [email protected]
Phone: 310-318-0697

APPLICATION PROCEDURES, GUIDELINES AND REVIEW CRITERIA

FOR A COMMERCIAL CANNABIS BUSINESS PERMIT
(STOREFRONT RETAIL APPLICATIONS)
Application Period
OPENS – TBD
CLOSES – TBD

NUMBER OF PERMITS
During this application period the City will be allowing up to two (2) cannabis Retailer permits under this process.

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

CONTACT
If you have any questions or would like an update on the status of your application, please contact the City Manager’s Office by phone at 310-318-0697, or email at [email protected].

APPLICABLE REGULATIONS
Information regarding the Commercial Cannabis Business (CCB) application process can be found on the City’s website at https://www.redondo.org/ccbapplication and includes the following:
 Application Procedures, Guidelines
and Review Criteria for a
Commercial Cannabis Business
 Redondo Beach Municipal Code
Title 6, Chapter 6-2 (Commercial
Cannabis Activity)
 Property Owner Consent/
Landlord Affidavit
 Background Check Portal Link
 Financial Responsibility, Indemnity and
Consent to Inspection Terms Agreement
 CCB Permit Application
These Procedures, Guidelines and Review Criteria apply solely to Cannabis Retailer Applications
2  Redondo Beach Municipal Code Title 10,
Chapters 10-2 and 10-5 (Zoning
Regulations)
To be considered for issuance of a Commercial Cannabis Business Permit in Redondo Beach, applications must be submitted to the City Manager’s Office located at the address listed in the Application Procedures, Guidelines and Review Criteria by the deadline. There will be no exceptions. These Procedures, Guidelines and Review Criteria (hereafter referred to as “Procedures”) constitute the application process and are adopted pursuant to the Redondo Beach Municipal Code (RBMC) Section 6-2.03.

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

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

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

Upon close of the application period, the City or designee 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 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 Applicant’s primary contact will be notified by email that their application is found to be missing minor components. If this is the case, the Applicant may be granted five business days from the date of the email to submit the required supplemental information.

Please note, additional time to complete the curing process will not be provided. Applicants should monitor incoming and spam email carefully. Any additional information, other than what was requested to cure the minor deficiencies, will not be considered. Following the five-day supplemental application window, Applicants will be notified if their application is deemed incomplete or if there is any other reason for which 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 CCB permit application shall be limited to submitting only one Retailer application during this application period. In addition, the City will only accept a maximum of two application Zoning Verification Letters (ZVL) per property (APN). Furthermore, without exception, only one Retailer Applicant will be issued a CCB permit per location by the City Council.

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

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

INTEGRITY GUIDELINES
The following Integrity Guidelines (“Guidelines”) shall be operative from the start of the application period, until the completion of Phase IV: City Council Interviews and Final Selection.

Each applicant is individually and solely responsible for ensuring compliance with the Guidelines. This responsibility extends to the applicant’s employees, agents, consultants, lobbyists, affiliates, and all other parties or individuals engaged for purposes of developing or supporting the application.

1. Collusive activities among applicants are expressly forbidden and may result in immediate disqualification of any involved parties.

2. Applicants are prohibited from offering promotional outreach, hospitality, gifts, or other like activities directed toward City staff, elected or appointed officials, application reviewers, or consultant(s) hired by the City to assist with the application process (collectively referred to as “City Officials”).

3. All communication related to Phases II – IV cannabis application process with City Officials must be directed to the City designated contact, listed on page 1 of these Procedures. Any attempt to communicate with other City Officials regarding Phases II – IV of the Redondo Beach cannabis application process may result in disqualification of the application.

4. Notwithstanding the restrictions on communications set forth in bullet 3 above, nothing in this policy is intended to restrict or prohibit proposers from communicating with City staff and officials during interviews in Phase III or during an open and public City Council or Commission meeting.

5. Any evidence which indicates an applicant has failed to comply with the Guidelines described in this document may result in that applicant’s disqualification. Any questions regarding the Guidelines shall be in writing and shall be transmitted by email to City designated contact,
This application process is adopted pursuant to RBMC Section 6-2.03. Review the information regarding the application process and which documents you will need. Before submitting your application, review your application in its entirety to ensure that it is complete and accurate.

Review all information regarding the application process for a CCB permit on the City webpage (link provided on page one).

APPLICATION SUBMITTAL REQUIREMENTS
Applications must respond to all requirements outlined in these Procedures. Applicants must submit all required application materials together in one complete comprehensive application package. This can be done in person, by U.S. Mail, or by common carrier delivery service (e.g.,

APPLICATION PROCESS
4 FED EX, UPS, etc.). The complete application package must be secured in an envelope or box addressed as follows:

City Manager’s Office
Attn: Cannabis Application Process
City of Redondo Beach
415 Diamond Street
Redondo Beach, CA 90277
The application package must include all of the following documents, with original 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. Zoning Verification 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.

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 Background Checks, Proof of Capitalization, Zoning Verification Letter, and Property Owner Consent/Landlord Affidavit will not be counted toward 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 Commercial Cannabis Business Permit Application (pages 1-4); 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).
5 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). See Appendix A, Section A(1) for more information.

PDF File #5 Zoning Verification Letter (ZVL) which shows the correct location, unit, space, or suite number in the building being used.

CRIMINAL BACKGROUND CHECK
Each Owner as defined in RBMC Section 10-2.1626 must undergo a criminal history background check to demonstrate they do not provide good cause for denial of a CCB permit.

Cause for denial of a CCB permit includes, but is not limited to, conditions identified in Section 26057 of the California Business and Professions Code. Applications with Owners who do not meet the criminal history eligibility requirements will be disqualified. The background form can be found online at:
https://hdlcompanies.formstack.com/forms/bc_redondo_beach The initial background check fee for each owner shall be $TBD. This process will be required to meet the minimum threshold qualifications pursuant to RBMC Section TBD.

In addition, CCB applicants selected to advance to Phase IV will be asked to submit to a Live Scan and to undergo additional screening as part of the background check as determined by the Chief of Police or designee. 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.

CANNABIS ZONING VERIFICATION LETTER (ZVL)
As part of a complete application packet, an Applicant must obtain a Cannabis Zoning Verification Letter from the Community Development Department. This letter is specific to the CCB, and is separate and distinct from the standard zoning letter from the City. To secure this letter, an Applicant must make a written request to the Community Development Department via [email protected] which should specify the intended use of the building, the proposed building location, and any non-compliance of the site with buffer requirements. The deadline to submit a request for a ZVL shall be one week prior to close of application period, or TBD. The City will not accept requests for a ZVL after this deadline.

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

FEES
All applicants will be required to submit a fee of $TBD. This amount will be charged against 6 time spent by City staff in reviewing applications and administrating the application process.

Applicants may be required to pay additional amounts, as required, for the sole purpose of the City’s completion of the application review process. Payment must be made by a certified check, cashier’s check or money order made payable to the City of Redondo Beach. Please note the City will not accept cash or credit cards and application fees are non-refundable once the City has begun reviewing the application.

A separate fee for the Cannabis Zoning Verification Letter (ZVL) of $TBD per site and a Background Check Fee of $TBD per owner, will also be required. For the successful Applicants, there will also be a Live Scan Fee of $TBD prior to obtaining the CCB permit or at a time determined by the Police Chief.

SUBMITTAL DEADLINE
Applications must be received by the TBD Department by 4:00 pm on TBD. Late applications will not be accepted. Furthermore, applications may be rejected for the following reasons:

1. It is not responsive to the CCB permit application and/or the Procedures.

2. The issuance of the CCB permit for the proposed location does not comply with State law, RBMC Title 6 (Business, Professions and Trades) and/or Title 10 (Planning and Zoning).

PHASE I: DETERMINATION OF ELIGIBILITY
Applications will be reviewed for completeness and compliance to meet the minimum submittal requirements. The determination of eligibility will be based on the criteria outlined in these Procedures, in accordance with RBMC Section 6-2.03. These Procedures may be amended in writing, for clarification to application submittal questions which will be posted in the FAQ section of the aforementioned webpage and shall go into full effect immediately upon being posted on the website.

PHASE II: APPLICATION QUALITY ASSURANCE REVIEW (1,250 points) During Phase II, 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)
The top applicants from Phase II, as determined by the City, may be eligible to advance to Phase III. The decision as to how many applicants will be interviewed will be determined by the City Manager or designee, based upon the overall quantity and quality of applications the City receives. Notice of the results of Phase II will be provided in writing via email to the primary contact listed on the application.

APPLICATION REVIEW, SCORING, AND APPROVAL PROCESS
7 PHASE III: INTERVIEWS (1,600 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 Appendix A:
• Section E – Qualifications of Owners (400 Points)
• Section F – Neighborhood Compatibility (400 Points)
• Section G – Community Benefits and Investments Plan (400 Points) • Section H – Proposed Site Plan (400 Points)
Upon the completion of Phase III, the Staff Selection Committee will tabulate the scores of all Applicants from Phase III to create a preliminary ranking which will form the basis for determining who will be invited to participate in Phase IV. The ranking will be based solely upon the scores received through the Phase III Interview process, and will not consider scores received during Phase II Quality Assurance Review. 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. The decision as to how many Applicants will advance to Phase IV will be determined by the City Manager or designee, based upon the overall quantity and quality of Applicants under consideration.

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

PHASE IV: CITY COUNCIL INTERVIEWS AND FINAL SELECTION
Upon the completion of Phase III, the City Manager or designee 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. In making this decision, the City Council has full discretion over what criteria to consider when evaluating Applicants, and shall not be limited to the specific Evaluation Criteria identified in Appendix A.

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.

The City Council may impose additional terms and conditions under which the cannabis facility may operate. City Council conditions may be in addition to the requirements of RBMC Chapter 6-2 including, but not limited to, minimum operating procedures to protect and promote the public health, safety and welfare of the community, customers, qualified patients, and primary caregivers.

The City Council reserves the right to award a lesser number of Commercial Cannabis Business Permits than the maximum allowed under the application process, or to award no permits at all.

Notice of the results of Phase IV will be provided in writing via email to the primary contact listed on the application.

After the City Council has made a determination as to which, if any, Applicants may be awarded a CCB permit, Applicants shall enter into a Development Agreement with the City, pursuant to 8 Section 6-2.05 of the RBMC. The Development Agreement shall set forth the terms and conditions under which the cannabis facility will operate that are in addition to the requirements of RBMC Chapter 6-2. Applicants should be prepared to negotiate with the City Manager or designee directly regarding the final terms and conditions that will be memorialized in the Development Agreement including, but not limited to, the commitments made by Applicants in the written application. Upon successfully completed negotiations and execution of the Development Agreement, the Applicant is then authorized to apply for any required land use permits and other required approvals.

Any Applicant wishing to appeal Phases I through III of the application process may file an appeal with the City Manager’s Office within ten (10) days of the Applicant receiving a notice that they will not move forward in the application process or be issued a permit. Such appeals shall comply with the requirements of RBMC Section 1-4. 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 and does not waive or remove the requirements of applying for and receiving permits for all construction including: electrical, plumbing, fire, Community Development Department permits or reviews, and any other permits, licenses, or reviews as deemed necessary by the relevant departments or governmental entities in charge of said permits. Nor does the award of a CCB permit guarantee that the plans submitted via the application process meet the standards or requirements in RBMC Title 10 and any other permit requirements from other City departments or agencies.
9 APPENDIX A: EVALUATION CRITERIA
The City of Redondo Beach 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 may make reasonable efforts to provide notice to the Applicant prior to such disclosure to allow Applicant to seek a protective order, injunctive relief, or other appropriate remedy. If Applicant contends any designated application materials are exempt from the CPRA and wishes to prevent disclosure, it is required, at its own cost, liability, and expense to obtain a protective order, injunctive relief or other appropriate remedy from a court having jurisdiction over the matter at least two (2) days before City’s deadline to respond to the CPRA request. If the Applicant fails to obtain such a remedy before the deadline for the City’s response to the CPRA request, the City will disclose the requested information and shall not be liable or responsible for such disclosure.

PHASE II EVALUATION
Important Instructions:
• Evaluation Criteria identified in Sections A-C will be scored based upon Applicant written response. Points may be deducted for responses that fail to meet State/local regulatory requirements, or best practices for the cannabis industry. • Applicant responses to the Evaluations Criteria must be provided in the same order identified in Sections A-C below. Each section shall be clearly labeled, with responses provided within the appropriate section. Any response to Evaluation Criteria that is not placed within the appropriate section will receive a deduction in points. • Any commitments made by an Applicant during the evaluation process will become terms and conditions under which the cannabis business must operate. Applicants awarded a permit that fail to meet commitments made during the evaluation process may have their cannabis business license suspended or revoked by the City.

SECTION A: BUSINESS PLAN (400 points)

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

E. A description of how the business will remit cannabis business license tax payments to the City (e.g. check, cash, etc.). If paying in cash, describe the process that the business will follow to transport cash payments to City Hall. 10 2. Daily Operations – Application describes the day-to-day operations of the proposed Retailer, which meet industry best practices. This should include, at a minimum, a description of the following criteria:

A. Customer check-in procedures.

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

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

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

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

F. How the Cannabis Business will ensure ongoing conformance with local and state laws. See RBMC Chapter 6-2 and Title 10 as they pertain to Retailer establishments in the City of Redondo Beach.

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.

I. Customer education procedures, including a plan for educating customers regarding cannabis products, potency and effects, and variety. Include a description of how customer education will be incorporated into online ordering.

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 the Department of Cannabis Control (DCC) California Code of Regulations (CCR) Title 4, Division 19, §15002.

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 Training – Application describes the employee training program, including the following topics:

A. Differences in cannabis products.

B. Potency of cannabis products.

C. Customer service.

D. Laws governing personal cannabis use.

E. Addressing intoxicated and/or impaired customers.

5. Background Checks – Application explains process for conducting employee background checks during the hiring process.

6. Non-Discrimination – Application explains how business will promote and ensure local, State and Federal non-discrimination policies are followed. 11 SECTION C: SECURITY PLAN (400 points)

1. Qualified Security Professional – The application includes a security plan that has been 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 professional standards requested to receive the appropriate points for each criterion in this section. The qualifications of the person(s) preparing the security plan must be provided, for verification that they are able to meet these standards.

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

A. The diagram meets all of the standards identified in Department of Cannabis Control (DCC) California Code of Regulations (CCR) 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 is labeled indicating which part of the property will be used for the licensed premises and what activities will be used for the remaining property.

3. Operational Security – The application includes a description of operational security, including but not limited to general security for access/visitor control, inventory control, and receiving/securing wholesale deliveries.

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 Retailer, including armored vehicle pick up of cash deposits.

5. Delivery Handling – If retail delivery is proposed, the application includes employee security and safety procedures during deliveries, customer verification methods, cash and product storage on deliveries, and vehicle types to be used.

6. Perimeter Security – The application includes a description of perimeter security, exterior lighting, on-site security guards, proposed guard hours and their responsibilities.

7. Employee Training and Policies – The application includes a description of employee training on security policies and procedures, including product handling, burglary protocols, robbery protocols, and other potential hazards of the cannabis business. 12 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 for response. At the end of each Applicant response, the Staff Selection Committee may ask clarifying questions.
• 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 Development 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 cannabis Retailer 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 Redondo Beach.

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 (400 points)*

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

2. 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.

3. Describe the steps you have taken to get to know the Redondo Beach community.

Provide a detailed description of the neighborhood in which you are seeking to open a cannabis retail business, and how your business will contribute positively to the surrounding area.
13 4. Describe steps that the business will take to minimize any negative environmental impacts of the retail operation, including greenhouse gas emissions, vehicle miles travelled, excessive product packaging, energy and water utilization, and other impacts. *Note: During Phase III Interviews, the Staff Selection Committee reserves the right to ask questions related to Section C: Security Plan, and score applicant responses as part of Section F: Neighborhood Compatibility.

SECTION G: COMMUNITY BENEFITS AND INVESTMENTS PLAN (400 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. Describe the Applicant’s plans for local outreach to City of Redondo Beach residents for open positions, and any other actions proposed by the Applicant that are intended to benefit the local workforce and/or Applicant’s local employees.

3. 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.

4. Describe the benefits that will be provided to employees, including but not limited to health care, vacation, and medical leave, to the degree they are offered as part of employment.

5. Describe how the business will secure supplies and equipment from local sources.

SECTION H: PROPOSED SITE PLAN (400 points)

1. Provide the following information about the existing site:

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

D. Description of how the site is currently being used; 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. 14 B. A narrative description of proposed site improvements, including façade 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. A narrative description of the proposed ventilation, air purification, and fire prevention systems.

D. Visual depictions of the proposed exterior of the cannabis business.

3. Describe how the proposed modifications and utilization of the site for cannabis Retailer activity will impact the public health, safety, welfare, environmental quality, and/or quality of life in the surrounding area.

COMMERCIAL CANNABIS

BUSINESS PERMIT

APPLICATION
(Cannabis Storefront Retailer)
City of Redondo Beach
TBD Department
415 Diamond Street
Redondo Beach, CA 90277
Phone: TBD
Email: TBD
REDONDO BEACH COMMERCIAL CANNABIS BUSINESS APPLICATION      Page 1 of 5

APPLICANT (ENTITY) INFORMATION
Applicant (Entity) Name: DBA: 
Physical Address:

Street City State Zip
Primary Contact: Title: 
Mailing Address: 
Street City State Zip
Phone Number: Email: 
HASANYINDIVIDUALINTHISAPPLICATIONAPPLIEDFORANYOTHERCANNABISPERMITINTHECITYOFREDONDOBEACH?܆YesտNo Indicate whether you are applying for Retail (Storefront) or Retail (Storefront with Delivery). տ Retail (Storefront) տ Retail (Storefront with Delivery) Business Formation: Describe how the business is organized. ܆ Sole Partnership տ Corporation տ SͲCorporation ܆ Limited Partnership տ Limited Liability Company տ Other (please describe):  

PROPOSED LOCATION
Property Owner Name:

Proposed Location
Address:

Street City State Zip
Phone Number: Email: 
Zoning Verification Letter (Please attach): ܆ Yes܆ No  Assessor’s Parcel Number (APN): Proposed Location Square Footage: 

APPLICATION SUBMITTAL CHECKLIST
Applications failing to submit any of the following will be deemed incomplete and will not move forward in the application process:
9 One (1) printed hard copy of a complete and signed Cannabis Business Permit Application form (Pages 1Ͳ4). 9 A signed Financial Responsibility, Indemnity and Consent to Inspect Terms Agreement form (Pages F1ͲF3). 9 A signed Limitations of City Liability and Indemnification to City form (Pages F4ͲF6). 9 Application Fee and Background Check Fee Payment.
9 A signed and notarized Property Owner Letter of Intent form. 9 Application Zoning Verification Letter (ZVL).
9 A USB flash drive containing all of the materials identified in the Application Procedure Guidelines and Review Criteria for a Commercial Cannabis Business Permit (Storefront Retail Applications).

REDONDO BEACH COMMERCIAL CANNABIS BUSINESS APPLICATION      Page 2 of 5

OWNER INFORMATION
OwnerInformationmustbecompletedbyallowners.PursuanttotheRedondoBeachMunicipalCode,“Owner”isdefinedas:

1. Apersonwithanaggregatedownershipinterestoftwenty(20%)ormoreintheentityapplyingforalicenseoralicensee,unlesssuchinterest issolelyinsecurity,lien,orencumbrance;

2. Thechiefexecutiveofficeroramemberoftheboardofdirectorsofanonprofitorganization;

3. Anindividualwhowillbeparticipatinginthedirection,control,ormanagementoftheentityapplyingforalicense;

4. Anypersonidentifiedorrequiredtobeidentifiedasan“owner”onanapplicationfiledwithanystateagency,whereintheapplicationrequests theprivilegetooperatethecannabisfacility.

Thetotalownershippercentageshouldequal100%.Ifanyindividual(s)own(s)lessthan20%,listthenumberofindividualswhoownlessthan20%and thetotalpercentageinordertoreach100%.Forexample,IfJohnDoeowns5%,JoeSmithowns12%,andMaryJonesowns9%stateatthebottomof thisformthatthreeindividualsown26%sothatthetotalwillequal100%onceyouindividuallyincludeallthosewhoown20%ormore.

I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %    
Owner Name: Title: 
Address:   
Street City State Zip
Background check information included as required? ܆ Yes܆No  Signature:  Date:  
I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %    
Owner Name: Title: 
Address:   
Street City State Zip
Background check information included as required? ܆ Yes܆No  Signature:  Date:  
I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %    
Owner Name: Title: 
Address:   
Street City State Zip
Background check information included as required? ܆ Yes܆No  Signature:  Date:  
I declare under the penalty of perjury that the information provided on this disclosure form is true and accurate to the best of my knowledge.

Ownership %    
Owner Name: Title: 
Address:   
Street City State Zip
Background check information included as required? ܆ Yes܆No  Signature:  Date:  
REDONDO BEACH COMMERCIAL CANNABIS BUSINESS APPLICATION      Page 3 of 5 AddmorepagesasnecessarytoaccommodateallCommercialCannabisBusinessOwners REDONDO BEACH COMMERCIAL CANNABIS BUSINESS APPLICATION      Page 4 of 5

SUPPORTING INFORMATION
List all fictitious business names the applicant is operating under including the address where each business is located:






Has the Applicant or any of its owners been the subject of any administrative action, including but not limited to suspension, denial, or revocation of a cannabis business license at any time in the previous seven (7) years? If so, please list and explain:






Is the Applicant or any of its owners currently involved in an application processin any other jurisdiction(s)?If so, which jurisdiction(s)? 





Does the applicant intend to store or use any hazardous chemicals onͲsite?If so, please list and explain:






Does the applicant intend to discharge any effluent into the City’s wastewater or storm water system?If so, please list and explain:







If applicable, provide a brief description of the proposed cannabis delivery service, including number of delivery vehicles, location of vehicle storage, and estimated size of delivery area.









REDONDO BEACH COMMERCIAL CANNABIS BUSINESS APPLICATION      Page 5 of 5 APPLICATIONCERTIFICATION
I hereby certify, under penalty of perjury, on behalf of myself and all owners, managers and supervisors identified in this application that the statements and information furnished in this application and the attached exhibits present the data and information required for this initial evaluation to the best of my ability, and that the facts, statements, and information presented are true and correct to the best ofmy knowledge and belief.I understand that amisrepresentation offactis cause forrejection ofthis application, denial of the permit, or revocation of a permit issued.

In addition, I understand that the filing of this application grants the City of Redondo Beach permission to reproduce submitted materials for distribution to staff, Commissions, Boards and City Council Members, and other Agencies to process the application.

Nothing in this consent, however, shall entitle any person to make use of the intellectual property in plans, exhibits, and photographs for any purpose unrelated to the City's consideration of this application.

Furthermore, by submitting this application, I understand and agree that any business resulting from an approval shall be maintained and operated in accordance with requirements of the City of Redondo Beach Municipal Code and State law.

Under penalty of perjury, I hereby declare that the information contained in within and submitted with the application is true, complete, and accurate. I understand that a misrepresentation of the facts is cause for rejection of this application, denial of a license or revocation of an issued license.I further authorize the City, its agents, and employees to seek verification of the information contained in the application.
  
Name Signature
  
Title Date
For details about the information required as part of the application process, see the Application Procedures & Guidelines, City of Redondo Beach Municipal Code Chapter 6Ͳ2, Chapter 10Ͳ2, Chapter 10Ͳ5, or any additionalrequirementsto complete the application process. All documents can be found online at www.redondo.org. For questions, please contact the TBD Department at TBD.

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City

F‐1

CITY OF REDONDO BEACH

COMMERCIAL CANNABIS BUSINESS LICENSE APPLICATION

FINANCIAL RESPONSIBILITY, INDEMNITY AND

CONSENT TO INSPECTION TERMS
(Must be completed by at least one owner)
Dated: _____________________, 2023
I hereby agree to the following terms:

1. I herewith pay the sum of $TBD for the application fee for the review and processing of an application for commercial cannabis business permit.

2. The entire fee amount paid to the City of Redondo Beach (“City”) is non‐refundable for any reason.

There is no guarantee  ‐  expressed or implied  ‐  that by submitting the application or paying the application fee that I will obtain any land use entitlements or a permit to operate a commercial cannabis business.

3. All costs incurred by the City in processing said application, including staff time, attorney’s fees, Consultant’s fees and overhead, shall be funded by me from the fees paid. This is my personal obligation and shall not be affected by sale or transfer of the property subject to the application, changes in business organization, or any other reason.

4. I acknowledge and agree to the defense, waiver, and indemnification obligations stated in the attached “Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties and Indemnification to City”, incorporated herein by reference.

5. The City will promptly notify the Applicant(s) and Owner(s) of any claim, action, or proceeding that is or may be subject to this Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. The City may, within its unlimited and sole discretion, participate in the defense of any such claim, action, orproceeding.

6. I will fund a deposit account (“Fund”) to reimburse the City’s cost, including attorney’s fees, to defend any claim, action, or proceeding that is or may be subject to the Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties, and Indemnification to City. In the event that any such claim, action, or proceeding is filed against the City, I shall within 30 days of the filing, deposit an initial sum of $10,000 to the Fund to reimburse my portion of the City defense costs, as determined by the City in its sole discretion. The Fund shall contain an amount necessary to cover three months’ worth of budgeted expenditures by the City relating to the City’s defense of the claim, action, or proceeding, including all time to appeal, or as long as expenditures made by the City relating to its defense remain unreimbursed, whichever is later. Once all remaining and outstanding reimbursements have been paid to the City by me, City shall return to me any remaining unused Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City

F‐2
portion of my deposit.

7. The City shall have the sole and absolute right to approve any and all counsel employed to defend the City. To the extent the City uses any of its resources to respond to such claim, action or proceeding, or to assist the defense, I will reimburse the City for those costs. Such resources include, but are not limited to, staff time, court costs, City Attorney’s time, or any other direct or indirect cost associated with responding to, or assisting in defense of, the claim, action, or proceedings.

8. I consent and expressly allow, authorize, and permit the City, all its departments, agents, and employees, to enter upon and inspect the subject property identified in my application, with or without prior notice, for the purposes of processing this application or inspection or  photographing for compliance with all laws, regulations, and conditions placed on land use approvals or the cannabis business permit. No additional permission or consent to enter upon the property is necessary or shall be required. By signing this agreement, I further certify and warrant I am authorized to, and hereby do, consent, and allow such inspections on my behalf and on the behalf of each and all Owners of the property and Applicants.

9. I understand that all materials submitted in connection with my application are public records subject to inspection and copying by members of the public. By filing an application, I agree that the public may inspect and copy these materials and the information contained therein, and that some or all of the materials may be posted on the City’s website. For any materials that may be subject to copyright protection, or which may be subject to Sections 5500.1 and 5536.4 of the California Business and Professions Code, by submitting such materials to the City I represent that I have the authority to grant, and hereby grant, the City permission to make the materials available to the public for inspection and copying, whether in hardcopy or electronic format.

In the event a request for information under the California Public Records Act seeks disclosure of application materials marked by me as “Confidential information,” the City may make reasonable efforts to provide notice to me prior to such disclosure to allow me to seek a protective order, injunctive relief, or other appropriate remedy. If I contend any designated application materials are exempt from the CPRA and wish to prevent disclosure, I agree that I am required, at my own, cost, liability, and expense to obtain a protective order, injunctive relief or other appropriate remedy from a court having jurisdiction over the matter at least two (2) days before City’s deadline to respond to the California Public Records Act request. I understand and acknowledge that if I fail to obtain such a remedy before the deadline for the City’s response to the request, the City will disclose the requested information and shall not be liable or responsible for such disclosure.

10. This Agreement shall constitute a separate agreement from any cannabis business permit approval, and that if the cannabis business permit, in part or in whole, is revoked, invalidated, rendered null or set aside by a court of competent jurisdiction, I agree to be bound by the terms of this Agreement, which shall survive such invalidation, nullification or setting aside.

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City

F‐3

11. This Agreement shall be construed and enforced in accordance with the laws of the State of California and in any legal action or other proceeding brought by either party to enforce or interpret this Agreement; the appropriate venue is the Los Angeles County Superior Court.

After review and consideration of all of the foregoing terms and conditions, I agree to be bound by and to fully and timely comply with all of the foregoing terms and conditions, and the attached “Agreement on Limitations of City’s Liability, and Certifications, Assurances Warranties and Indemnification to City”.

Applicant(s)/Owner(s):

Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Printed Name Signature
Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City

F‐4
Agreement on Limitations of City’s Liability, and
Certifications, Assurances, Warranties, and
Indemnification to City
(Must be completed by all owners)
A. WAIVER, RELEASE AND HOLD HARMLESS
I hereby waive, release, and hold harmless the City of Redondo Beach (“City”) and its Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to my application for a cannabis business permit, the issuance of the cannabis business permit, the process used by the City in making its decision, the enforcement of the conditions of the cannabis business permit, or the cannabis business’ operations.

I hereby waive, release and hold harmless the City and its Council, boards and commissions, officers, officials, employees, and agents from any and all actual and alleged claims, losses, damages, injuries, liabilities, costs (including attorney’s fees), suits or other expenses which arise out of, or which are in any way relate to: (1) any repeal or amendment of any provision of the Redondo Beach Municipal Code or Zoning Ordinance relating to commercial cannabis activity; or (2) any investigation, arrest or prosecution of me, or the cannabis business’ owners, operators, employees, clients or customers, for a violation of state or federal laws, rules or regulations relating to cannabis activities.

B. AGREEMENT TO INDEMNIFY
I shall defend, indemnify, and hold harmless the City and its Council, boards and commissions, officers, officials, employees, and agents from and against any and all actual and alleged liabilities, demands, claims, losses, damages, injuries, actions or proceedings and costs and expenses incidental thereto (including costs of defense, settlement and attorney’s fees), which arise out of, or which are in any way related to i) the requested cannabis business permit and any land use entitlement related thereto, ii) the proceedings undertaken in connection with the approval, denial, or appeal of the requested cannabis business permit and any land use entitlement related thereto, iii) any subsequent approvals or licensing/permits relating to the requested cannabis business permit and any land use entitlement related thereto, iv) the processing of the requested cannabis business permit and any land use entitlement related thereto, v) any amendments to the approvals for the requested cannabis business permit and any land use entitlement related thereto, vi) the City’s approval, consideration, analysis, review, issuance, denial or appeal of the cannabis business permit; vii) the City’s approval, consideration, analysis, review, issuance, denial or appeal of any land use entitlement related thereto, viii) the City’s drafting, adoption and passage of an ordinance, and related resolutions, policies, rules and regulations, allowing for cannabis businesses, ix) the City’s drafting, adoption and passage of an ordinance, and related resolutions if necessary in the future regarding any zoning law amendment(s) related to my cannabis business, x) the operation of my cannabis business or activity, xi) the process used by the City in making its decision to approve, consider, analyze, review, issue, or deny, my cannabis business permit or any related land use entitlement, or the appeal of either, xii) City’s compliance or failure to comply with applicable laws and regulations or xiii) the alleged violation of any federal, state or local Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City

F‐5
laws by my cannabis business or any of its officers, employees or agents, except where such liability is caused by the sole negligence or willful misconduct of the City.

City may (but is not obligated to) defend such challenge as City, in its sole discretion, determines appropriate, all at applicant’s sole cost and expense. I shall bear any and all losses, damages, injuries, liabilities, costs, and expenses (including, without limitation, staff time and in-house attorney's fees on a fully-loaded basis, attorney’s fees for outside legal counsel, expert witness fees, court costs, and other litigation expenses) arising out of or related to any challenge (“Costs”), whether incurred by me, City, or awarded to any third party, and shall pay to the City upon demand any Costs incurred by the City.

C. OBLIGATIONS INDEPENDENT OF AWARD OF PERMIT, LICENSE, OR ENTITLEMENTS My obligations under this Agreement shall apply regardless of whether a cannabis business permit or any related permits or entitlements are issued.

D. OBLIGATIONS SURVIVE EXPIRATION OF PERMIT, LICENSE, OR ENTITLEMENTS My obligations under this Agreement shall survive the expiration of any cannabis business permit or related permit or entitlement issued by the City. No modification of the permit, other approval, change in applicable laws and regulations, or change in processing methods shall alter the applicant’s indemnity obligation.

E. PROSECUTION UNDER FEDERAL LAW
I understand that I, other applicants, owners, operators, employees, and members of the cannabis business may be subject to prosecution under Federal Laws.

Agreement of Limitations of City’s Liability, and Certifications, Assurances, Warranties, and Indemnification to City

F‐6
F. AUTHORIZED TO SIGN
The person(s) whose signature appears below is/(are) authorized to sign this Agreement on behalf of the business, applicant/permittee, and operators, and each of them, if more than one, has submitted this information and all attachments as required by the application process to obtain a cannabis permit from the City of Redondo Beach.

I declare under penalty of perjury that the information provided on this form is true and correct and do hereby apply for a permit pursuant to City of Redondo Beach Municipal Code, Chapter 6-2, and all other applicable sections of the Municipal Code.

Applicant Signature Printed Name and Title
Name of Business Entity Address of Permitted Location
Date
Applicant Signature Printed Name and Title
Name of Business Entity Address of Permitted Location
Date
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.

State of California
County of ______________
Subscribed and sworn to (or affirmed) before me on this _____ day of ____________________, 2023, by ____________________________________, proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me.

Signature ____________________________. (Seal)
City of Redondo Beach
TBD Department
415 Diamond Street
Redondo Beach, CA 90277
Phone: TBD
Email: TBD
PROPERTY OWNER CONSENT/LANDLORD AFFIDAVIT
Property Owner Consent/Landlord Affidavit is required for all Applications.  If the business owner is the same person/entity asthe property owner, the business owner must complete,sign and notarize the Property Owner Consent/Landlord Affidavit form.  If the property is owned by an entity, the entity owner must complete, sign, and notarize the Property Owner Consent/Landlord Affidavit.

I certify that I am/we are the record owner(s) of the property at:
____________________________________________________________________________________, Street City State Zip
and that the information filed is true and correct to the best of my (our) knowledge. I/We, as the owner(s) of the subject property, consent to the filing of this application and use of the property for the purposes described herein. I/We further consent and hereby authorize City representative(s) to enter upon my property for the purpose of examining and inspecting the property in preparation of any reports and/or required environmental review for the processing of the application(s) being filed.

BY MY SIGNATURE BELOW, I CERTIFY TO EACH OF THE FOLLOWING:

I am the property owner or am authorized to act on the property owner's behalf, and the information I have provided above is correct. I acknowledge that I have read and understand the information contained herein.

I acknowledge that the proposed commercial cannabis business ________________________________ Tenant (Corporation/LLC/Partnership/Sole Owner)
has the legal right to occupy the property, and consent to the business conducting the following commercial cannabis activity at the Property:

Retail (Storefront)
Retail (Non‐Storefront)
Retail (Storefront with Delivery)
I agree to comply with all applicable City Ordinances and State Laws relating to (MAUCRSA).

SIGNATURE OF PROPERTY OWNER(S):

PRINTED NAME OF PROPERTY OWNER(S) SIGNATURE OF PROPERTY OWNER(S)

PRINTED NAME OF PROPERTY OWNER(S) SIGNATURE OF PROPERTY OWNER(S) Subscribed and sworn to before me this         day of                        , 20     , proved to me on the basis of satisfactory evidence to be the person(s) who appeared before me _____________________________________. *NOTARIZATION REQUIRED.   This authorization form will not be valid without notarization. The authorization contained in this form automatically expires upon sale or transfer of title to the Property. Ifsale or transfer of the Property occurs prior to obtaining a businesslicense, the applicant must resubmit this notarized form with approval of the new legal owner(s) of the Property.  Property Owner authorization must be signed by all Property Owners of the property identified in the Application. Attach additional pages if necessary.

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document, to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.